Ann Arbor group to begin collecting signatures in effort to establish city-owned electric utility

An organization made up of Ann Arbor residents pushing for a publicly owned, 100% renewable energy utility on Friday announced the launch of a ballot effort that, if approved, would put the city on track to developing its own energy service.

In a press release, Ann Arbor Public Power said it would kick off its petition drive on Jan. 31 for an initiative that would require the city to establish a governance structure for a municipal utility – if approved by voters.

The group aims to collect 6,500 signatures to place the matter on the November ballot. Under the proposed charter amendment, elections for the public utility governing board would be held in 2028.

Ann Arbor currently receives electrical service from DTE Energy, one of the state’s largest energy companies.

“We believe that Ann Arbor is ready to begin the process of replacing DTE,” Ann Arbor Public Power President Sean Higgins said in a statement. “A not-for-profit, democratically governed city utility can reinvest profits into upgrading the local grid instead of enriching shareholders, while keeping rates affordable and developing local renewable energy.”

Higgins criticized DTE for its plans to continue the buildout of fossil fuel plants despite the state’s laws requiring companies to provide energy from 100% clean sources by 2040.

The company has also been subject to frequent criticism due to high energy rates and poor reliability.

In an email, DTE Spokesperson Ryan Lowry argued that the proposal would carry a risk of high-costs, pointing to an analysis it commissioned from Charles River Associates which determined that Ann Arbor residents could see a 30-40% increase in retail energy rates if the city proceeds with the plan, while a takeover of DTE’s assets could cost $1 billion upfront and an additional $1 billion over the next 20 years.

A previous study commissioned by the city found a takeover of DTE’s electrical distribution infrastructure could cost anywhere from $281 million to $1.15 billion, MLive reported.

However, Ann Arbor for Public Power emphasized that the approval of this charter amendment would not authorize the city to take ownership of DTE’s assets in the area, which would require a separate vote. The proposal at hand would only create a governing structure, the group said in a press release, arguing it would cost taxpayers “almost nothing.”

Lowry said “DTE remains focused on continuing to improve reliability, supporting Ann Arbor’s clean energy goals, and keeping bills as low as possible,” telling Michigan Advance that DTE customers in Ann Arbor experienced a nearly 90% improvement in time spent without power between 2023 and 2024, and continued to see significant improvements based on preliminary data from 2025.

Ann Arbor for Public Power will host its kickoff celebration Saturday, January 31 from 3-5 p.m. at Clonlara School, where it will offer free food and signature collection training alongside hosting speakers and a Q&A session.

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This article, “Ann Arbor group to begin collecting signatures in effort to establish city-owned electric utility,” has been republished from the Michigan Advance under Creative Commons license CC BY-NC-ND 4.0.