Consumers Energy Tells State Commission: Sale of 13 Hydroelectric Dams Is Best Option for Michigan

Consumers Energy officials told a state commission today that selling 13 hydroelectric dams remains the best option for Michigan, supporting local communities and offering the lowest long-term cost for customers.

“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.”

Blumenstock joined representatives from Confluence Hydro, the dams’ buyer, in speaking before the Michigan Natural Resources Commission today. Their presentation follows outreach to communities across the state since Consumers Energy and Confluence Hydro announced the sale in September.

State and federal regulators are reviewing the sale. Once approved, Confluence Hydro will sell energy from the dams to Consumers Energy under a 30-year contract and will start the process to relicense them.

“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.”

Both Consumers Energy and Confluence Hydro are making the sale transition seamless for communities. The dams’ operations will remain the same, nearby land will remain part of their footprint and Confluence Hydro will be a partner to communities that look to the dams for economic and recreational benefits.

Consumers Energy has been looking at the dams’ future for over four years, and input from neighbors in public meetings and conversations with community groups has been critical. We will keep working together to promote local prosperity and honor our long-term commitment to the communities around the dams.

“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.

Consumers Energy officials have shared in public filings that other options – including removing them altogether – are significantly more expensive for Michigan 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 is Michigan’s largest energy provider, providing natural gas and/or electricity to 6.8 million of the state’s 10 million residents in all 68 Lower Peninsula counties. We are committed to delivering reliable and affordable energy to our customers 24/7. Learn more at ConsumersEnergy.com.

Image from Consumers Energy.