Title
Resolution to Authorize City Staff to Perform the Preliminary Work Necessary to Put the Question of the Acquisition of DTE Electric Company's Assets to a Vote of the People and Prepare for Litigation Should the Voters Authorize Such Acquisition
Staff
Prepared by: Valerie Jackson, Assistant City Attorney
Reviewed by: Atleen Kaur, City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, DTE Electric Company ("DTE Electric") holds a Foote Act franchise to provide electric utility services in the City of Ann Arbor, which is not revocable by the City and has no stated termination date;
Whereas, In January 2022, City Council requested that the City Administrator commission a study regarding the technical, legal, and financial viability of multiple potential pathways for the City to meet its A2ZERO energy-related goals, and that such study include an analysis of the feasibility of creating a traditional municipal electric utility ("MEU") to replace DTE Electric and become the sole electric utility provider in the City ("Phase 1 Feasibility Study");
Whereas, In September 2022, the City retained the team of 5 Lakes Energy, LLC; SunStore Energy, LLC; Potomac Law Group, PLLC; and NewGen Strategies and Solutions, LLC ("5 Lakes Team") to complete such study;
Whereas, In October 2023, the City made publicly available the report produced by the 5 Lakes Team, "100% Renewable Energy Options Analysis Technical Report," which included the findings of its Phase 1 Feasibility Study ("Phase 1 Report");
Whereas, The Phase 1 Report indicated that the book value of DTE Electric's assets within the City could be estimated with "rough accuracy," but "the methodology that would be used by a court or regulatory body for setting an acquisition price is less clear, because municipalization processes are uncommon nationally and have no recent precedent in Michigan;"
Whereas, Due in large part to the uncertainty regarding the methodology for setting an ...
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