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File #: 21-2261    Version: 1 Name: 1/3/22 Energy Commission Resolution on Municipal Sustainable Energy Utility
Type: Report or Communication Status: Filed
File created: 1/3/2022 In control: City Council
On agenda: 1/3/2022 Final action: 1/3/2022
Enactment date: Enactment #:
Title: Energy Commission Resolution Recommending Ann Arbor City Council Authorize a Municipal Utility Feasibility Study and Initiate Work Towards Creation of a Municipal Sustainable Energy Utility (SEU)
Title
Energy Commission Resolution Recommending Ann Arbor City Council Authorize a Municipal Utility Feasibility Study and Initiate Work Towards Creation of a Municipal Sustainable Energy Utility (SEU)
Body
WHEREAS, City Council on November 4, 2019 approved a resolution declaring a climate emergency and setting a goal of achieving a just transition to community-wide carbon neutrality by 2030 (R-19-498);

WHEREAS, City Council at its June 1, 2020 meeting approved the Living A2ZERO Ann Arbor Carbon Neutrality Plan (R-20-193), incorporating the 2030 goal;

WHEREAS, The generation of electricity accounts for roughly 40 percent of Ann Arbor's 1.8 million metric tons of annual greenhouse gas emissions;

WHEREAS, The vast majority of this electricity is purchased from DTE Energy, which holds the franchise to serve Ann Arbor;

WHEREAS, In 2020 DTE generated 70% of its electricity by burning fossil fuels, mainly coal;

WHEREAS, DTE's continued long-term reliance on fossil fuel combustion to generate electricity, as reflected in their Integrated Resource Plan (IRP), is incompatible with Ann Arbor's official carbon neutrality goals;

WHEREAS, To help support the transition to clean energy and evaluate energy-related options for achieving Ann Arbor's clean energy goal, the Energy and Environmental Commissions recommended, and City Council adopted, Core Criteria and Principles for Achieving Ann Arbor's Renewable Energy Goals, including: reducing greenhouse gas emissions; ensuring projects are additional; grounding actions in equity; enhancing resilience; maximizing local generation; acting fast; finding solutions that are scalable and transferable; and implementing cost effective solutions;

WHEREAS, The Energy Commission has been exploring multiple pathways to achieve the City's clean energy, equity, and climate action goals;

WHEREAS, One possible pathway that necessitates further research is the creation of a municipal electric utility;
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