Title
An Ordinance to Amend Section 2:413 (Rate Schedules) to Chapter 35 (Sustainable Energy Utility) of Title II (Utilities and Services) of the Code of the City of Ann Arbor (ORD-26-26)
Memorandum
The Ann Arbor Sustainable Energy Utility (“A2SEU”) Director recommends adoption of the attached ordinance.
In May 2026, Council adopted ORD-26-13 which established the A2SEU’s first rates and charges for two initial pilot services. One of those pilots was the Bryant Solar and Battery Storage Pilot, offering service to residents exclusively in the Bryant neighborhood, with assets funded by grants from the Michigan Public Service Commission and Michigan Department of Labor and Economic Opportunity.
Since then, more than eighty Bryant neighborhood customers have signed up for service under that pilot rate. With approximately 260 eligible households, this reflects an impressive 30% adoption rate.
After months of extensive communication, most or all residents in Bryant who want service have had ample opportunity to learn about the A2SEU; new enrollments are slowing down. In late August, the A2SEU sent mailers to remaining eligible households to indicate a final deadline to sign up for the pilot of September 30, 2026. We continue to receive additional interest from residents there, and will continue to serve Bryant residents as they come to us to request service as long as funding remains available. At the same time, we are preparing to expand service outside of the neighborhood.
Current grant funding is sufficient to serve an estimated 100 or more households (including the 80 already served or in the queue in Bryant), and the A2SEU continues to seek additional grant sources. We propose amending the pilot rate to allow it to serve participants outside the immediate Bryant neighborhood, with equivalent service and rates as currently offered in the Bryant neighborhood. This will allow us to use current or future grant funds to offer service to other eligible customers.
Eligibility under this pilot will be limited by availability of grant dollars, and any eligibility requirements (such as income or geography) imposed by current or future grant terms.
Budget/Fiscal Impact: Expanding the geographic area in which grant-funded service installations may be provided will enable the A2SEU to fully utilize grant funds received to date, as well as potential future grant funding. Depending on the number of customers who enroll and the timing of their enrollment, the A2SEU may need to expand its operations and adjust rates accordingly. The expansion is anticipated to generate up to $12,000.00 in additional revenue to offset increased operational costs in FY 2028.
Staff
Prepared by: Shoshannah Lenski, Sustainable Energy Utility Executive Director
Reviewed by: Valerie Jackson, Assistant City Attorney
Reviewed by: Marti Praschan, Chief Financial Officer
Approved by: Milton Dohoney Jr., City Administrator
Body
(See Attached Ordinance)