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City’s SEU proposes Bryant pilot rates: seasonal $75/$25 residential plan and $14/kW municipal charge

Ann Arbor City Council (work session) · April 28, 2026

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Summary

The Sustainable Energy Utility presented value‑based pilot rates for Bryant neighborhood households (seasonal $75 Apr–Sep, $25 Oct–Mar; fixed through 06/30/2030) and recommended municipal asset charges roughly $14 per kilowatt per month to support operations and growth.

Shashana Linsky, director of the Sustainable Energy Utility (SEU), presented pilot rate proposals and modeling used to set them. Linsky said the SEU is taking a “value‑based” approach for these early pilots — charging residents a rate tied to the projected energy‑bill savings from solar plus a capacity‑based charge rather than immediate cost‑of‑service rates that would overburden early customers. “We have our first 11 residents who have officially signed on the dotted line, to join the SEU,” Linsky said, noting enrollment is underway.

For the Bryant neighborhood pilot the SEU modeled a standard system (4.5 kW solar, 15 kWh battery) sized to fit about 200 households and support 100–150 installations with grant capital. The modeling showed most households would expect gross avoided DTE bill savings of about $600–$1,000 per year from the solar generation. Based on that distribution the SEU recommended seasonal billing that averages roughly $600 per year: $75 per month April–September and $25 per month October–March, which Linsky said better matches seasonal production and eases monthly cash‑flow for households.

The SEU will fix those pilot rates until 06/30/2030; customers may terminate service without penalty after that date. Linsky emphasized the value of included battery backup for resilience and noted batteries are programmed to charge prior to storms to preserve outage readiness.

For municipal, grant‑funded systems the SEU calculated an annual value (roughly $177,000) based on avoided DTE purchases (1,100,000 kWh/year at roughly $0.16/kWh) and derived a capacity‑based charge equal to about $14 per kilowatt per month for ~1,000 kW of installed capacity. Linsky said the municipal charges are intended to provide value‑based revenue to the SEU while avoiding penalizing municipal facilities that would otherwise benefit from solar.

Councilors asked about DTE interconnection limits, transferability of the rate guarantee on home sales, and whether the pilot rates would eventually convert to cost‑of‑service rates as the utility scales; Linsky and consultants from Exeter Associates and Ricardo said the SEU expects to shift toward cost‑based rates as scale and data allow.