Frequently Asked Questions

General Questions

  • Public power is community ownership and operation of a municipal electric utility (MEU) or electric cooperative. There are over 2,000 municipal electric utilities in the country; in fact, 42 municipal electric utilities already exist in Michigan, including Lansing, Traverse City, Holland and Chelsea [2].

  • Ann Arbor for Public Power, or A2P2, is a 501(c)(4) grassroots nonprofit committed to achieving our community goal of 100% renewable power by creating a municipal electric utility for all of Ann Arbor, Michigan. 

    Climate change was a significant factor in the 2020 establishment of A2P2: the local private monopoly utility, DTE Energy, is one of the dirtiest major utilities in the country, producing almost 40% of its electricity from coal. [1]. A2P2’s goal is to enable a reliable supply of 100% renewable power for Ann Arbor’s residences, institutions, and businesses by the year 2030, which is in line with the city’s A2Zero goal. Once Ann Arbor controls its own electric grid, it will no longer be forced to buy DTE’s dirty energy and can contract for, and encourage the creation of, renewable power.

    Local energy resources should be publicly owned. Municipal electric utilities, which are abundant in Michigan, help ensure that the full benefits of energy distribution systems accrue to the people who use them. An Ann Arbor municipal electric utility would be guided by the principles of ratepayer equity, service reliability, energy efficiency, grid modernization, fiscal responsibility, a just transition for workers, and public accountability.

  • The Sustainable Energy Utility (SEU) is managed by the city’s Office of Sustainability and Innovations [3]. The SEU is a limited, opt-in, subscription-based utility that will supplement DTE Energy’s electricity with city-owned residential rooftop solar and potentially other renewable energy sources. 

    According to the first feasibility study commissioned by the city, rooftop and other solar from the SEU could account for 15% of the energy needs of the city by 2030. If ultimately achieved, that would be an excellent start, but 15% is not enough. [11] A full municipal energy utility (MEU) would acquire and operate the local DTE grid, including distribution lines and substations. Importantly, Ann Arbor would also gain the ability to purchase our own electricity on the wholesale market, where we could choose 100% renewable sources. For more detail on electricity purchasing, see “Municipality Questions” below. The full municipal utility could work in tandem with the SEU to meet its A2Zero goal of powering the city’s electric grid with 100% renewable energy by 2030.

Municipality Questions

  • The municipal electric utility would be overseen by a nine-member board of five elected and four appointed members, and operated by professional engineers, managers and technicians, similar to other Michigan municipal utilities.

  • Virtually all utilities in Michigan  are connected to the same regional transmission grid: the Midcontinent Independent System Operator (MISO) [4]. Michigan municipal electric utilities contract through MISO and other brokers for electricity. The Ann Arbor MEU would negotiate such power purchase agreements for the entire city. Switching the city to renewable energy sources is critical to meeting the city’s goal of 100% renewable power by 2030.

  • A municipal electric utility would not require taxpayer subsidy. Instead, Ann Arbor would issue bonds to acquire DTE’s assets. Our electricity bills would service these bonds, fund utility operations, and finance infrastructure upgrades, instead of those dollars leaving the community in the form of corporate profits and shareholder dividends.

    The city will likely incur one-time legal costs to overcome DTE opposition to municipalization. These costs are an investment in long-term local control of our electricity distribution. Based on the experience of other communities, rates could rise or fall slightly in the short term, but over time would certainly result in rates that are lower than the private utility would charge.

  • No one can guarantee that Ann Arbor MEU rates will be lower than current DTE rates, but rates should grow more slowly over time than with business as usual. DTE applies for rate increases almost continuously, but Michigan municipal electric utility customers enjoy lower and more stable rates. Compare Chelsea and Holland (roughly 12 cents/KWh) to investor-owned utilities DTE and Consumers (21 cents/KWh)[5-7]. An Ann Arbor MEU would not raise rates to boost shareholder profits. In 2024, DTE Energy paid out roughly $900 million dollars in shareholder dividends [8], while the Ann Arbor municipal electric utility, of course, would pay $0.

  • Acquiring DTE’s mostly antiquated local grid is a necessary first step. Hired professional staff would work on upgrading the system and improving reliability—as opposed to leaving it in the hands of DTE, who allowed it to become flimsy in the first place. DTE line workers and other union members would be hired for the appropriate positions. The MEU’s surpluses would be invested in these upgrades, not exported in the form of corporate profits.

Ballot Initiative Questions

  • A2P2 is seeking voter approval for the creation of the board of the future municipal electric utility. The proposal will cost the taxpayer almost nothing (minimal costs for supporting board meetings) and will establish the municipal energy utility governance structure. This will lay the necessary groundwork for the eventual acquisition of DTE’s local assets, which would require a three-fifths majority vote in a future city referendum.

  • No, but this is an important step to an eventual operating municipal electric utility.

  • The main responsibility of the board will be oversight of the public power utility. Prior to acquisition of the local grid, activities will mainly encompass planning and strategy.

Logistics Questions

  • Assuming voter approval of a future referendum, DTE would be legally compelled to sell to the city, under Michigan eminent domain law.

  • DTE would likely employ every legal tool at its disposal to contest a condemnation proceeding, but the case’s eventual terms and timing would be determined by a Circuit Court judge. Based on past experience, the case would be heard and adjudicated within a few years at most.

  • A phase 2 feasibility study would place a well-informed valuation on the entire electrical distribution infrastructure in Ann Arbor including poles, wires, transformers and substations. That study and valuation would be “exhibit A” in the city’s case.

  • The City of Ann Arbor would own the power infrastructure, which would be overseen by a democratically elected board with expert appointee members. The city infrastructure would be operated by professional staff, and will remain connected to the regional transmission grid.

Other Questions

  • Installing solar panels is commendable. But not everyone can afford that, much less a battery or generator. DTE has the slowest time to restore power after an outage in the state [9]. Private electric utilities, in exchange for monopoly status, have an obligation to provide reliable power. Municipal electric utilities across Michigan have fewer power outages and shorter outage times [9].

  • A municipal electric utility will make our power grid more renewable, reliable, and eventually affordable for everyone in our community. In Michigan, municipal utilities are more affordable and have shorter power outages than DTE. Dumping DTE is necessary to reach A2Zero climate goals. In 2024, DTE’s electricity came from 41% coal, 26% natural gas, 19% nuclear, and only 12% wind and solar power [10]. Instead, our community has the opportunity to create a municipal utility, and to decide for ourselves where our electricity comes from.

  • Ann Arbor for Public Power has a broad membership, including legal, environmental, and public policy experts. The future municipal utility will by led a fully qualified executive director and employ professional staff and field workers. It can tap into the expertise and resources of the Michigan Public Power Agency and Michigan Municipal Electric Association, which provide group purchasing, grid management, wholesale market access and other services to the state’s municipal utilities. The campaign is backed by local elected officials including County Commissioner (and mayoral candidate) Yousef Rabhi, State Rep Jason Morgan, and State Senator Jeff Irwin.

  • Sign up for the email newsletter to learn more, keep up with the campaign, and be notified of upcoming events. Become a member or volunteer today!

References

  1. Ceres, Benchmarking Air Emissions of the 100 Largest Electric Power Producers in the United States, 2023

  2. American Public Power Association, Public Power in Michigan

  3. Ann Arbor Office of Sustainability and Innovations, Ann Arbor’s Sustainable Energy Utility (SEU)

  4. Midcontinent Independent System Operator (MISO), Meet MISO: MISO Fact Sheet

  5. State of Michigan, Comparison of Average Rates for MPSC-regulated Electric Utilities in Michigan, 2025 

  6. Holland Board of Public Works, Residential Rates, July 2025

  7. City of Chelsea, Utility Rates and City Services Fee Schedule, 2025

  8. DTE Energy, 2024 annual report (10-K), Securities and Exchange Commission.

  9. U.S. Energy Information Administration, Annual Electric Power Industry Report, 2023.

  10. DTE Energy, Fuel Mix, Dec. 2024