June 2026 Newsletter
DTE continues to pour millions into its disinformation campaign via its local front group, which is flooding the internet with ads and our neighborhoods with paid canvassers. They’re delivering a simple message of fear: Replacing DTE will cost the city and its taxpayers $1 billion and raise rates 30-40%. That was the conclusion of the DTE-funded Charles River Associates Ann Arbor municipalization study, which we've rebutted point by point.
Here’s the truth.
What will it cost?
$300 million at most. The city’s phase 1 study, by 5Lakes Energy, put the value of DTE’s physical assets at $130 million. Adding goodwill and the value of the franchise raised that number to $195 million. The study also considered stranded costs. Stranded assets refer to excess DTE generation capacity if Ann Arbor leaves the system, and stranded costs represent the amount we might owe DTE to make up for that excess generation. But given massive new data center load demand, DTE will be scrambling for new capacity well into the next decade – not trying to sell idle generation. The Federal Energy Regulatory Commission (FERC) must consider these facts; thus, we expect stranded costs to be negligible. In 2005, Winter Park, Florida, a city of 31,000 (roughly one-fourth Ann Arbor’s size) bought its grid from Florida Power at a total cost of $42 million, stranded costs included. Allowing for inflation and recent DTE upgrades, $300 million is a conservative high-end cost estimate for Ann Arbor. A properly designed phase 2 feasibility study would provide a close cost estimate and future rate schedule. Then the community can decide if municipalization is right for Ann Arbor.
This is the most up-to-date and accurate information out there; and DTE is well aware that the most likely scenarios imply huge cost savings for Ann Arborites. That’s why they’re flooding the city with fear-based false messaging.
How long will it take?
We envision a vote to begin condemnation proceedings around 2029, although it could happen any time. Such cases typically take 12-18 months. An appeal could take another year. So we should have public power here by 2032—if the city chooses that path.
What are the benefits?
Clean electricity. Our dying planet can’t afford DTE’s dirty power (67% fossil fuels, only 9% wind and solar in 2025). Our entire state is held hostage. The DTE PAC is Michigan’s second highest campaign donor, buying lawmakers on both sides of the aisle. That’s why we Michiganders cannot have rooftop solar net metering, community solar, or community choice aggregation. It’s also one reason our state lawmakers granted huge tax breaks for data centers, which are driving DTE profits even higher while sabotaging the state’s climate goals. Ann Arbor breaking free would set an example for other communities to follow.
Rate relief. Our sky-high electric rates keep rising. In April DTE applied for yet another rate hike, just two months after the last one went into effect. We’ve endured five separate DTE rate hikes since 2020, totaling over $1 billion in new annual revenue for our monopoly utility. Meanwhile, DTE last year turned a $1.5 billion profit, and paid out almost $900 million in shareholder dividends. While we can’t guarantee lower rates on day one of public power, the status quo is unjust and unsustainable, and public power will inarguably save the city billions over the coming decades.
A muni can do better. A municipal electric utility (muni) doesn’t have profits or dividends. Surpluses are reinvested in the community – in system upgrades and maintenance, rate relief, clean power generation, and more. The community sets utility rates. There are already 41 munis in Michigan, including Holland, Lansing, Chelsea, Grand Haven, Wyandotte, and Bay City, all of which provide more reliable power more affordably than DTE.
Compatible with the SEU. The city’s sustainable energy utility (SEU), approved by voters in 2024, is an opt-in utility that supplements DTE power with city- owned rooftop solar and battery storage, billing ratepayers separately. It is advancing the necessary transition to distributed energy, but can only meet a small fraction of the city’s electric demand. In fact, DTE has endorsed the SEU , because it’s not a threat to its business model. Municipalization is: hence the millions DTE has spent against it. The 5Lakes study recommended both paths be pursued: “We see development of a SEU as consistent with, and advantageous to, the longer term development of an MEU [municipal electric utility].”.
Our ballot proposal.
This City Charter amendment would set elections for 2028 for five muni board seats, one from each city ward. Four other board members would then be appointed by City Council. This would cost the city almost nothing – a small fraction of a staff member’s time to support board meetings. But it’s an important first step.
If you have more questions, please email us at contact@annarborpublicpower.org.
