Ann Arbor has moved to stop voters from deciding Proposal E, filing suit to have the measure declared illegal just as opponents pour money into the campaign to keep the city from taking control of its power supply.
Ann Arbor Sues to Block Prop E Vote
The lawsuit, filed Monday in Washtenaw County Circuit Court by four city attorneys and two lawyers from Dykema, asks Judge Patrick Conlin to rule the proposal unconstitutional and “of no effect” before or after the Nov. 3 election. The city argues the measure, which would replace DTE Energy’s electric utility with a city-run grid, exceeds what citizen-initiated ballot proposals can do under the city charter and would improperly create a new public utility board with powers already held by city government.
Sentiment Indicators
Economically, the case is about far more than procedure. A successful public takeover of the electric system would put Ann Arbor on a path toward a utility transition that the city’s own critics say could cost anywhere from $281 million to $1.15 billion, according to a 2023 study cited by opponents. That price tag is the core of the political fight: whether the city should risk a potentially massive acquisition and transition cost for the chance to control rates, grid planning and decarbonization on its own terms.
The legal challenge also gives investors and utility watchers a clearer read on the balance of forces behind municipalization efforts. DTE has already contributed $1.8 million to the Ann Arbor Responsible Energy Coalition, which says it has spent more than $1.7 million this cycle and still has more than $200,000 left. The International Brotherhood of Electrical Workers Local 17 and Edison Electric Institute have also added money to the anti-Prop E effort, underlining how investor-owned utilities and their labor allies view the proposal as a precedent risk.
Supporters of Prop E are far outmatched financially. Ann Arbor for Public Power has raised just over $60,000, including donations from state Sen. Jeff Irwin and Washtenaw County Sheriff Alyshia Dyer, and has spent almost $50,000. The group says the measure is only an initial step toward a city utility, not an immediate upheaval of city operations as the lawsuit suggests. Its backers point to more than 5,300 voter signatures to get the measure on the ballot, arguing the city is trying to discredit the proposal rather than debate it.
The fight now shifts to the court as much as the ballot box. If the judge takes the case before Election Day, the ruling could determine whether Ann Arbor voters are allowed to weigh in on one of the city’s most consequential infrastructure questions. If the case lingers, the measure may still go to voters, but the legal cloud would likely complicate any eventual transition, keep pressure on city finances and preserve uncertainty for DTE, its ratepayers and competing public-power campaigns watching for a precedent.
| Entity | Gains | Losses |
|---|---|---|
| Ann Arbor city government | ▲Blocks charter challenge | ▼Faces public backlash |
| DTE Energy | ▲Avoids municipal takeover risk | ▼Pays for opposition campaign |
| Prop E supporters | ▲Raise public awareness | ▼Outspent on campaign |
| City voters | ▲Get legal clarity if ruled pre-election | ▼Face delayed policy decision |
