Consumers Energy told state regulators in Michigan, US, that selling 13 hydroelectric dams remains the best option for the state, citing lower long-term costs and continued support for local communities.
The company presented its case on 8 April to the Michigan Natural Resources Commission, alongside representatives from buyer Confluence Hydro. The sale was first announced in September and is under review by state and federal regulators.
“Consumers Energy has spent over a century operating our dams safely, reliably and affordably. Selling the dams ensures we build on their past to power Michigan’s future,” said Rick Blumenstock, Consumers Energy’s executive director of electric supply engineering. “Not only does their sale ensure they continue safe, reliable operations, but it’s the lowest-cost choice for our customers and it keeps the reservoirs that are vital to local communities.”
If approved, Confluence Hydro will operate the dams and sell electricity back to Consumers Energy under a 30-year agreement. The company will also begin the process of renewing federal licences for the facilities.
“Confluence Hydro sees tremendous potential in these dams and their ability to power Michigan’s future for generations to come,” said Jillian Lawrence, Confluence Hydro’s chief operating officer. “We have the tools and experience necessary to invest in these dams and ensure they continue to operate safely.”
Consumers Energy said operations at the dams will not change after the sale. Land surrounding the facilities will remain in place, and the new owner will work with local communities that rely on the dams for recreation and economic activity.
The utility said it has been reviewing the future of the dams for more than four years and has gathered input from residents and community groups.
“One thing that came out over and over during community meetings is the positive aspects of the dams – whether it’s trails, hiking and camping, tax revenue for local communities, or the habitat for bats at the Tippy Dam,” said Adam Monroe, Consumers Energy’s executive director of hydro operations.
The company added that alternative options, including removing the dams, would cost significantly more for customers.
“We appreciate the opportunity to explain why this sale is best for Michigan and hope people will see why we’re excited to start a new chapter with Confluence Hydro,” Monroe said.
Consumers Energy supplies electricity and natural gas to 6.8 million people across Michigan’s Lower Peninsula.
The dams are located along five Michigan rivers and are:
- Au Sable River: Mio, Alcona, Loud, Foote, Cooke, and Five Channels dams
- Muskegon River: Rogers, Hardy, and Croton dams
- Manistee River: Hodenpyl and Tippy dams
- Grand River: Webber dam
- Kalamazoo River: The Calkins Bridge dam
