Ann Arbor for Public Power, a group that supports municipalization efforts in Ann Arbor, Mich., on Jan. 17 released a proposal for a phase two municipalization feasibility study.
“It’s critical for the city to follow through on its consultant’s phase 1 recommendation to proceed with a second study,” said Ann Arbor For Public Power President Greg Woodring.
In September 2023, consulting firm 5Lakes Energy delivered a report, “City of Ann Arbor 100% Renewable Energy Options Analysis.”
Among its conclusions was the following: “We suggest that the city authorize a Phase 2 Feasibility Study to characterize more precisely the costs and risks of the MEU [Municipal Electric Utility] approach.”
A major purpose of a phase 2 study would be to arrive at an accurate valuation of investor-owned DTE’s local distribution assets, Ann Arbor For Public Power said.
The city, with such a valuation, could begin the legal process of condemnation, should it decide on that course of action, according to the group.
The study would also include more detailed modeling of rates, costs and legal contingencies to help the city make that decision.
In addition to these models, Ann Arbor For Public Power is proposing incorporating renewables, which were not studied in phase 1.
The study would model solar installations, battery storage and energy efficiency programs the utility would undertake to help achieve the city’s goal of 100% renewable power.
The study would also estimate the cost of upgrading Ann Arbor’s electricity grid to the standard of Michigan’s existing public utilities and to regional norms, the group said.
For a copy of the A2P2 feasibility study proposal, click here.
APPA offers a variety of resources on its website related to municipalization.