Title
An Ordinance to Amend Sections 2:402, 2:408, and 2:410 and to Add 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
Memorandum
The Ann Arbor Sustainable Energy Utility ("A2SEU") Director recommends adoption of the attached ordinance for two key purposes:
First, as the A2SEU has progressed toward implementation, staff has identified some language in Chapter 35 that requires minor updating to remove inconsistencies with the recently adopted A2SEU Regulations and/or to better align with language recommended by the City Attorney's Office for use in operations. This includes updates to definitions, clarification regarding the ability of the City, or departments thereof, to provide funding to the A2SEU, and cleanup of language regarding conditions of service.
Second, the A2SEU is on track to launch pilot operations in FY27, which means it intends to begin charging rates to customers as early as July 1, 2026. The A2SEU Director is authorized to recommend rates and charges to City Council, and City Council has the authority to fix rates. This ordinance would fix rates for the first two pilot classes of A2SEU customers.
The two initial pilots for which rates are recommended today, include:
(1) Bryant Solar and Battery Storage Pilot: Solar + battery storage service to be offered to residential customers in the Bryant Neighborhood, with assets funded by grants from the Michigan Public Service Commission and Michigan Department of Labor and Economic Opportunity.
(2) Municipal Solar and Battery Storage Pilot: Solar or solar + battery storage service provided to City departments through grant-funded assets transferred to the A2SEU by the City, or departments thereof.
In late 2025, through a competitive RFP process, the A2SEU selected an expert consulting team to help develop rates. Over the past five months, City staff and these consultants have engaged in a comprehensi...
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