Ann Arbor voters weigh $1 billion cost of public power

Ann Arbor residents will vote on a measure to create a public electric utility during the midterm election cycle.

The proposal, known as Proposal E, seeks to establish a nine-member board responsible for operating a city-owned power grid and setting electricity rates. If approved, the city would become the first in Michigan to transition from a private provider to a public utility.

Brian Geiringer, executive director of Ann Arbor for Public Power, stated that local control would lower bills and improve grid reliability. He noted that the new structure would replace the current provider, DTE. Geiringer emphasized the accountability offered by the new board, explaining that residents could directly complain to city hall if they had issues with their service.

The measure does not immediately authorize the purchase of DTE’s assets, but supporters say an acquisition is necessary to build the public grid. The cost of that purchase is the primary source of debate among voters. Conan Smith, president and CEO of the Michigan Environmental Council, said conservative estimates for the transition range from $180 million to $1 billion.

Smith argues that the funds required for a full acquisition would be better directed toward the city’s Sustainable Energy Utility. Voters approved that separate initiative in 2024 to help the city manage its own power. Smith contends that Proposal E would derail the current effort and shift focus away from immediate renewable energy projects. He stated, “We already have a municipal structure. What this proposal would do is derail that effort and focus our energy and attention on acquiring DTE’s infrastructure.”

If Proposal E passes, the implementation process will take several years. The city council would appoint four of the nine board members. The remaining five seats would be filled by voters in the 2028 general election.