Vote No on
Ann Arbor
Proposal E

Ann Arbor’s Sustainable Future - In November 2024, Ann Arbor voters approved an innovative Sustainable Energy Utility. The SEU is already delivering clean, reliable power in the Bryant neighborhood and city staff anticipates expanding city-wide in 2027. Voter approval of a new MEU could derail the good work of the SEU and divert critical financial resources and staff time. A 2024 University of Michigan research project found a Sustainable Energy Utility had the highest potential to lower prices, increase reliability, lower pollution and benefit underserved communities. Why spend billions investing in antiquated systems of the past when we should invest in the energy systems of the future?

Ann Arbor’s Financial Stability - A 2023 Energy Options Analysis conducted by the City of Ann Arbor found that the cost of acquiring DTE’s distribution assets - excluding substations - was between $281 million to $1.15 billion. Further study (estimated cost $1.7 million) would be needed to refine those estimates, but the true costs to the City would be determined in court.

Boulder, Colorado spent 10 years and $30 million pursuing municipalization (taxing themselves to fund the effort) and ultimately decided to quit the legal battle. If Ann Arbor prevailed in a similar legal effort, in addition to paying for the transmission assets, the new Municipal Energy Utility would still need to spend an estimated $95,360,000 on the development of ten new substations and $19,175,000 on new transmission lines to connect the substations to the ITC transmission system.‍ Improving the reliability and securing new green energy would be additional. Charting a course without new funding and any understanding of the true costs is reckless. Ann Arbor taxpayers will fund this effort and ratepayers will pay the debt.

Impacts to our Neighbors - One of Ann Arbor’s core guiding principles is equity. Pursuing municipalization has real costs and real tradeoffs. Ann Arbor’s City budget is finite. Prioritizing a fight for municipalization when we have other important community priorities and the social safety net is being decimated by the federal government means Ann Arbor will have fewer resources for the most vulnerable in our community at a time when we need them most.

If Ann Arbor were to take over DTE’s assets, DTE would no longer pay property taxes. In 2026, DTE contributed $8.5 million dollars in property tax revenue to our local institutions, including $2.9 million dollars to the Ann Arbor Public Schools, $2 million dollars to the City of Ann Arbor, $917,000 to Washtenaw County, and $534,000 to AAATA. Holding corporations accountable should not require the public to be left holding the bill.