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Sustainable Energy Utility seeks staff and small operating budget as grants wind down
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Summary
SEU director said the utility has been grant‑funded to date (ICLEI LIFT $250k; $5M state; $10.8M DOE geothermal) but most grants end in FY27; SEU will collect modest pilot revenue and seeks two FTEs and startup operating funds to scale installations.
The city's Sustainable Energy Utility (SEU) is moving from startup grants toward pilot earned revenue and will need operating capacity to scale, the department told council.
Sharsana Lewinsky (introduced by the CFO) said the SEU has relied on three primary grants to date: roughly $250,000 from ICLEI LIFT for startup work, $5,000,000 from the Michigan Department of Labor and Economic Opportunity for initial administration and pilot capital, and a $10.8 million Department of Energy award to support geothermal systems in the Bryant neighborhood. The DOE grant requires a 50% local match on eligible expenditures.
Lewinsky said most grants will end in FY27 (one at end of April, another in October, with the geothermal grant continuing but only covering part of needs). SEU pilot installations planned for Bryant this summer will generate modest earned revenue but not enough to sustain operations. To transition toward scale, staff requested two recurring FTEs (an operations manager and an outreach/engagement position) and a small operations budget for municipal service charges, staffing and basic office needs.
Lewinsky said the SEU will leverage existing city IT and asset management systems where practical and will present pilot rates to council at an upcoming work session. She emphasized the aim to grow quickly to reach self‑sustaining scale while continuing to seek grants and philanthropic support for expansion.
Council asked for timing and rate details; the director said rates and regulatory terms will be brought forward in April.
