The City of Ann Arbor has a new 10-year deal with DTE to replace its gas franchise agreement with a new heating franchise. Negotiators say it’s the first in the nation to include climate and carbon reduction goals.
The franchise agreement was up for renewal in two years, but the city wanted changes that would align with Ann Arbor’s A2Zero goals.
Office of Sustainability and Innovations Director Missy Stults says DTE has also agreed to bid on the geothermal system planned for the Bryant neighborhood and a second system if the city decides to build a one.
“So, they would be beside us if we select them as our bidder to finance those projects, to install those projects and to learn how those projects function, which is critical, because it means the utility is going to learn about geothermal at scale.”
Stults says it’s hoped the program will be so successful, DTE will be able to expand the use of geothermal across its service area.
The City Council is expected to give final approval to the new franchise agreement later this month.
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