ANN ARBOR — It could cost Ann Arbor anywhere from $281 million to $1.15 billion to take over DTE Energy’s distribution system and business in the city, according to a new study. And that’s excluding some big substation costs.
The city has released a long-awaited feasibility study report looking at options to achieve the city’s energy goals, which include getting to 100% renewable power by 2030.
The new report explores options ranging from forming a municipal power company to fully replace DTE locally to the alternative of forming a sustainable energy utility to supplement DTE service with city investments in renewable energy.
The not-surprising large price tag associated with a takeover of DTE’s assets in the city — which Ann Arbor taxpayers would have to agree to fund and could involve a legal battle — has caused city officials to express some reluctance about going that route. But they have been enthusiastic about the SEU idea.
The particulars of going either way are expected to be discussed when City Council meets at city hall at 7 p.m. Tuesday, Sept. 26, for a special work session to talk through the new report with Missy Stults, the city’s sustainability director.
Council voted in September 2022 to contract with 5 Lakes Energy LLC to go forward with the roughly $500,000 feasibility study, so it’s been over a year in the making.
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