ANN ARBOR — Ann Arbor officials are preparing to take the next step to consider a takeover of DTE Energy in the city, a question that could go before city voters in 2026.
The city already went through one round of study, finding it could cost anywhere from $281 million to $1.15 billion to acquire DTE’s electrical distribution assets in Ann Arbor through condemnation, and it could take years of litigation.
City leaders say more information is needed before the community decides whether to go down that road in the pursuit of cleaner and more reliable energy.
To that end, city staff presented City Council with a $1.7 million contract with NewGen Strategies and Solutions LLC on Monday, Jan. 6, to launch a phase-two study further exploring the costs of full municipalization of the local energy grid.
Council already budgeted $2 million for the work, but decided to temporarily hold off on voting on the contract Monday after hearing concerns from members of Washtenaw County citizens group Ann Arbor for Public Power, which has advocated for getting rid of DTE.
The group’s leaders say the study is an important next step, but they’re worried without revisions to the contract it wouldn’t provide satisfactory answers and it could confuse voters in 2026 if there’s still a wide range of possible costs, allowing opponents to latch onto high-end estimates.
“Our fear has been that, were this study to continue, we would find ourselves in an incredibly difficult position in 2026,” the group stated in an email. “Essentially, we would have to campaign on a ballot question for public power without city-backed expert testimony on crucial legal questions, leaving the door open for an $800M range in the estimated cost of dumping DTE.”
Mayor Christopher Taylor said the city has been contemplating its energy future for a long time and he’s excited about the prospect of the study moving forward. The contract is postponed until council’s administration committee decides it’s ready to come back.
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