Hull Street Energy has reached an agreement to buy Consumers Energy’s 13 hydroelectric dams in Michigan, which have a combined capacity of 132MW.
The transaction, announced Tuesday, will be carried out through Confluence Hydro, a newly formed subsidiary of Hull Street Energy that will own and manage the facilities. Current Consumers Energy hydro employees will be offered equivalent roles with Confluence Hydro.
“Safety has always been foundational to everything we do,” said Ed Quinn, chief executive officer of Confluence Hydro. “With decades of experience operating hydro facilities, we are committed to preserving and modernizing these important resources to maximize their contribution to the grid. We deeply admire and respect the Consumers Energy team and the culture of safety and operational excellence they have built. We see extraordinary opportunity to leverage our combined strengths to build a best-in-class hydro company – one that protects communities, supports employees, mitigates risk, and delivers reliable, clean energy for the future.”
Under the agreement, Confluence Hydro will supply power from the facilities to Consumers Energy under a 30-year contract. The company will also pursue renewal of the dams’ federal licenses, which begin expiring in 2034.
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
“We believe a sale of the dams is the best path forward for our customers,” said Sri Maddipati, Consumers Energy’s president of electric supply. “This sale balances two important needs, to lower costs for Consumers Energy’s customers while continuing to care for communities that depend on the dams. After numerous conversations with community members over the last three years to gather insights and feedback, we are confident this sale will preserve the reservoirs that hold the key to economic, recreational and community benefits at each of the dams.”
The deal is subject to state and federal regulatory approval and is expected to close within 12 to 18 months. Company officials said they have briefed employees and affected communities and plan additional meetings in the coming months.
Legal advisers on the transaction for Hull Street Energy included McGuireWoods LLP, Rock Creek Energy Group LLP, Varnum LLP, and Potomac Law Group PLLC.
