Over three-quarters of more than 750 submissions received by the council oppose a potential sale of the company, an informal count shows.
At the heart of debate is whether the infrastructure company is best kept for the long term or if an investment fund worth hundreds of millions of dollars would be a more useful asset.
Opponents of a sale include a former mayor and a former city council chief financial officer.
Supporters include mana whenua.
Council-owned Dunedin City Holdings Ltd concluded the case for a sale was compelling and now was a good time to realise a price premium.
A hearing about the issue starts today.
Aurora delivers electricity to more than 200,000 residents in Dunedin, Queenstown Lakes and Central Otago.
Former Dunedin mayor Aaron Hawkins said in his written submission it could be the most significant sale of city assets since the late 1990s.
Mr Hawkins wanted the city council to keep the company.
"Council has an obligation to make decisions in the best long-term interests of the city", he said.
Former city council chief financial officer Grant McKenzie said the company was growing in value.
It could also continue to pay interest costs associated with upgrading and developing the lines network and still increase its profit, he said.
"As Aurora is in a regulated environment, it is guaranteed to get a return on every dollar it invests into its asset base."
Mr McKenzie, now Allied Press chief executive but submitting as a ratepayer, said "if the city did decide to sell, it could effectively be selling the asset at the worst time".
Te Rūnaka o Ōtākou strongly supported advancing towards a sale.
Reasons included improving economic sustainability for the city and minimising future rates increases.
Aurora was capital-intensive and had provided minimal dividends to the council, the rūnaka said.
The fund could enable investment to support the long-term future of Dunedin, it said.
Grant Craig said it was "a good time to diversify away from unprofitable council-owned businesses".
Ruth Houghton said releasing funds by selling Aurora would establish a better investment base.
Careys Bay resident Mary Furnari found it "curious and troubling" selling Aurora had not been a 2022 election campaign issue.
"I do not believe the short-term gain by selling Aurora is worth the long-term loss of an essential asset."
Rochelle Golding said Aurora was "the goose with the golden egg".
"We simply cannot sell this asset from under our children and grandchildren’s feet."
Daniel Osland said he was "sad to think we’re headed back to the 1980s and all the bad outcomes that eventuated from all those short-sighted decisions".
"Don’t do this."
Graeme Jeffery said he had warned about 25 years ago huge expenditure was needed to bring the network up to standard and "this would lead to a push for privatisation".
"Such an important sale of a strategic asset should be an election issue and not one that has been drawn up by the vested interests on the council boards", he said.
Queenstown Lakes District Council strategy and policy general manager Michelle Morss said the council did not have a preferred option regarding the proposed sale.
However, the council asked for "the specific challenges the district faces with regard to capacity of supply, appetite for rapid decarbonisation and need for resilience be taken into account and given profile during the sale process if it proceeds".
The hearing is due to conclude on Thursday.
The proposal
The Dunedin City Council is considering selling Aurora Energy and using the proceeds to:
1. Repay Aurora debt, forecast to be $576 million by mid-2025.
2. Establish a diversified investment fund to generate income for the council.
