Council approves first reading of new DTE gas franchise and climate agreement; two‑year work plan included

City Council approved first reading of a new heating franchise and an accompanying agreement with DTE Gas that, according to negotiators, is designed to align certain gas utility practices with the city’s climate and electrification objectives. The motion was moved by Council Member Iyer and seconded by Council Member Cornell and was adopted on first reading; second reading will occur at the next council meeting.

Council negotiators and staff described the package as notable because it pairs the franchise contract with a standing “agreement regarding climate action” that establishes a two‑year work planning cadence and annual reporting. Negotiators said the agreement commits DTE to fund targeted energy waste reduction programs that include rental housing support for landlords and tenants, and to bring funding and a bid to the Bryant shared geothermal project (and to bid on a second geothermal project) if the projects are financially viable. The franchise also includes provisions for coordination on dig‑once policies, quarterly planning meetings, improved data sharing for benchmarking and commercial/multifamily energy reporting, and a workforce development component to support a just transition for affected workers.

Council members praised staff and outside counsel for achieving language they said had not been seen in other municipalities. Council Member Iyer said the agreement creates “tools to gather data, engage the public, and hold DTE accountable.” Staff emphasized the franchise is a 10‑year, non‑automatic renewal term (to 02/1935, given the prior agreement’s expiration timing) and that key work items will be reconsidered every two years at the negotiating table. The recorded first‑reading action does not itself change operational programs; it begins a contract cycle that will be completed at second reading.