Consumers Energy Extends Deadline for Hydroelectric Dam Sale
Consumers Energy is negotiating a December deadline with Michigan regulators to sell 13 hydroelectric dams to Confluence Hydro amid safety and cost concerns.
The Michigan Public Service Commission has granted Consumers Energy a final extension until December 9, 2026, to reach a settlement with critics regarding the proposed sale of 13 hydroelectric dams. If no agreement is reached, the commission will issue a final ruling by December 17. The utility company originally sought a deadline of December 17 for the approval process, moving it from early November to allow more time for negotiations.
Under the proposal, Consumers Energy would sell the century-old dams, located on five rivers, to Confluence Hydro—a subsidiary of the private equity firm Hull Street Energy—for one dollar each. Confluence Hydro would operate the dams for 30 years and sell the generated electricity back to Consumers Energy at an initial rate of $160 per megawatt hour with annual increases of 2.5 percent. Consumers Energy claims the deal will save customers approximately $500 million compared to the cost of decommissioning the structures.
Opponents, including Governor Gretchen Whitmer and Attorney General Dana Nessel, argue the deal is too risky and expensive, with some estimates placing the cost to ratepayers at $3.4 billion. Nessel and environmental groups warn that private equity ownership lacks necessary financial safeguards, which could lead to neglected maintenance and catastrophic dam failures, potentially leaving taxpayers to cover the resulting public safety costs.
