ANN ARBOR, MI — As Ann Arbor considers looking into creating its own public electric utility, Detroit-based private utility company DTE Energy is hoping the city decides against it.
The company would prefer the city continue to partner with DTE to meet the city’s energy goals, said Micah Ragland, DTE’s corporate communications director.
“DTE Energy is partnering with the city of Ann Arbor on several important initiatives designed to help improve electric service reliability, increase clean energy generation and reduce greenhouse gas emissions,” the company said in a statement Ragland relayed via email Monday night, Aug. 23.
“We are working with city officials on our efforts to modernize the grid, ramp up deployment of electric vehicle charging stations and support the thousands of Washtenaw County residents and businesses that are accelerating renewable energy development in Michigan through their participation in DTE’s MIGreenPower program. This work complements a $20 million investment we are making in the Bucker Substation Circuit to help the city meet its needs for future load growth.”
Power outages lead to renewed talks of creating public electric utility for Ann Arbor
DTE has not had a formal dialogue with Ann Arbor leaders on any proposals related to creating a municipal-owned utility, the company said in the statement.
“As we continue to help drive Michigan’s clean energy transformation, we will advocate for and implement inclusive solutions designed to generate more wind and solar energy while also maintaining our focus on reliability and affordability for all customers,” the statement concluded.
Prolonged power outages following recent storms have some local officials once again talking about the idea of creating a community-owned, nonprofit electric utility to give the city more control over its energy future.
Council Member Elizabeth Nelson, D-4th Ward, is sponsoring a resolution on City Council’s Sept. 7 agenda to further explore the idea, saying thousands of Ann Arbor residents recently experienced an extended power outage and want a more reliable and environmentally sustainable energy utility that would be more accountable to local needs.
The resolution would direct the city’s Energy Commission to further consider the idea of launching a feasibility study at its Sept. 14 meeting and make a recommendation for council to consider Sept. 20.
Under the city’s A2Zero carbon-neutrality plan, Ann Arbor has ambitious goals to move away from coal and natural gas, electrify buildings and cars, and power the entire community with 100% renewable energy by 2030.
Ann Arbor’s plan involves purchasing 100% renewable energy from alternative energy providers on behalf of all residents, businesses and other entities in the city through a mechanism known as community choice aggregation, which city officials hope to convince state lawmakers to allow in Michigan.
DTE Energy raises concerns about Ann Arbor’s plan for 100% renewable energy
DTE marketing director Henry Decker raised concerns about that last year, speaking out as City Council adopted the A2Zero plan. Community choice aggregation, which is allowed in some states, would require the state to deregulate electric markets and DTE does not support it, he said.
“We believe the city can achieve 100% renewables through other programs,” Decker said.
Public power utilities already exist in over 40 municipalities in Michigan.
A grassroots group called Ann Arbor for Public Power is lobbying the city to move away from DTE, an investor-owned, for-profit company. The group argues the city could charge more affordable energy rates and have control over the source of power, moving away from fossil fuels, which still account for a majority of DTE’s energy portfolio.
DTE’s fuel mix used to supply electricity in 2020 was about 50% coal, 21% nuclear, 17% natural gas, 0.26% oil, 0.26% hydroelectric and 11.6% renewable fuels, according to the company. That includes 9.75% wind, 1.2% biomass, 0.25% solar, 0.2% biofuel, 0.12% wood and 0.04% solid waste incineration.
DTE has a goal to cut carbon emissions in half by 2030 and by 80% by 2040, retiring coal plants and investing more in renewable energy and natural gas, and a goal to reach net-zero carbon emissions by 2050.
By 2023, DTE plans to increase solar energy generation nearly 10 times with nearly 2.2 million additional solar panels, the company’s website states, indicating its portfolio should include more than 11 million solar panels by 2040.
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How they voted: Ann Arbor City Council vote breakdown for August 2021
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