Voters in Ann Arbor, Michigan, reject measure for municipal electric utility

Voters in Ann Arbor, Michigan, narrowly rejected a ballot initiative Nov. 3 that would have required the city council to establish a municipal electric utility.

Opposition to the initiative, Proposal E, garnered 50.6% of the total votes, according to Michigan's secretary of state. If it had passed, the city, which is served by the investor-owned utility DTE Energy, would have to establish a municipal electric utility and a nine-member board to oversee it.

The city council opposed the initiative, stating that the effort could cost over $1 billion. During an Oct. 5 meeting, the council directed the city attorney to challenge the initiative's legality if it passed.

Proponents disputed that figure and said the measure would not require the city to purchase DTE assets. If it passed, the initiative could have set the stage for other Michigan cities to pursue leaving investor-owned utilities to address electricity bills, reliability and clean energy goals.

In August, the Detroit City Council voted to explore different ways to diversify its energy sources and reduce its reliance on DTE after a tornado left thousands without power for several days.