City of Ann Arbor - File #: 22-1380

• File #: 22-1380
• Version: 1
• Name: 9/6/22 Resolution to Approve an Agreement with 5 Lakes Energy, LLC to Complete a Feasibility Study Regarding Creation of a Traditional Municipal Electric Utility and an Evaluation of Other Energy Pathways to Achieve the City’s Clean Energy Goals, Along wi
• Type: Resolution
• Status: Passed
• File created: 9/6/2022
• In control: City Council
• On agenda: 9/6/2022
• Final action: 9/6/2022
• Enactment date: 9/6/2022
• Enactment #: R-22-294
• Title: Resolution to Approve a Professional Services Agreement with 5 Lakes Energy, LLC to Complete a Feasibility Study Regarding Creation of a Traditional Municipal Electric Utility and an Evaluation of Other Energy Pathways to Achieve the City's Clean Energy Goals, Along with Initiation of Next Steps to Advance a Local Municipal Sustainable Energy Utility (SEU) ($458,797) (8 Votes Required)

Date	Ver.	Action By	Action	Result
9/6/2022	1	City Council	Approved	Pass

Title
Resolution to Approve a Professional Services Agreement with 5 Lakes Energy, LLC to Complete a Feasibility Study Regarding Creation of a Traditional Municipal Electric Utility and an Evaluation of Other Energy Pathways to Achieve the City's Clean Energy Goals, Along with Initiation of Next Steps to Advance a Local Municipal Sustainable Energy Utility (SEU) ($458,797) (8 Votes Required)
Memorandum
On January 18th, 2022, Ann Arbor City Council requested that the City Administrator, via R-22-017, create an RFP to formally study the technical, legal, and financial viability of multiple?potential pathways?the City could take to meet its A2ZERO energy-related emissions reduction, clean energy, and equity?goals and how well each pathways aligns with Council's adopted: 1) goal of community-wide carbon neutrality by 2030; 2) A2ZERO plan and its three principles of equity, sustainability, and transformation; 3) Energy Criteria and Principles; 4) goal of achieving a just transition, where relevant, for workers in the fossil fuel industry.

Council also requested that this RFP identify a qualified firm to conduct a detailed technical and financial analysis, including a rate analysis, related to the feasibility of creating a traditional municipal electric utility that replaces DTE and that such study includes elements such as: a direct engineering assessment of local DTE infrastructure; a preliminary asset valuation; an estimate of acquisition costs and related costs, as well as annual operations and maintenance expenses; total revenue estimates; identification of debt financing sources, amounts and schedules; estimates to purchase and install clean energy to power the utility with 100% renewable energy; and the modeling of future DTE rates against the potential municipal electric utility rates.

Resolution R-22-017 also requested that staff continue exploring the feasibility of creating a local Ann Arbor Sustainable Energy Utility by undertaking a series of activiti...