ANN ARBOR, Mich. — A citizen-led push to take Ann Arbor, Mich., off DTE Energy’s grid reaches voters in November as Proposal E, but the measure faces opposition from City Council and the utility itself.
If voters approve, Proposal E would change the City Charter to create an Ann Arbor Municipal Electric Utility Board charged with studying, then preparing to acquire assets and set up a city-run utility.
The effort grew out of the city’s 2019 commitment to eliminate Ann Arbor’s carbon emissions by 2030 and has become a symbol of frustration with rising energy prices and power outages.
On Oct. 5, City Council adopted a resolution opposing the measure. The resolution says Proposal E includes no tax, millage or other dedicated source of funding, and that buying DTE’s local distribution system could cost more than $1 billion. It also notes the city has no budgeted utility staff, billing system or equipment to run an electric utility.
DTE has said a takeover would cost the city nearly $1 billion on day one and points to its five-year, $270 million plan to modernize the local system. A DTE-backed opposition coalition has a $1.8 million war chest, according to county campaign finance reports.
Ann Arbor would be the first Michigan community to leave another utility’s territory to form its own. The state’s 40 municipal electric utilities are all more than a century old.
