Consumers Energy Seeks Sale of 13 Hydroelectric Dams with 30-Year Power Deal

CMSCMS

Consumers Energy told the Michigan Natural Resources Commission that selling its 13 hydroelectric dams to Confluence Hydro will deliver the lowest long-term cost for its 6.8 million customers and maintain safe, reliable operations under a 30-year power purchase contract. State and federal regulators are now reviewing the deal.

1. Sale Details

Consumers Energy presented to the Michigan Natural Resources Commission that selling 13 hydroelectric dams to Confluence Hydro offers the lowest long-term cost for customers while ensuring continued safe and reliable operations. The move follows four years of community outreach and evaluation of alternatives deemed more expensive.

2. Power Purchase Contract

As part of the transaction, Confluence Hydro will relicense the dams and supply electricity back to Consumers Energy under a 30-year power purchase agreement, securing long-term energy availability at predictable costs and allowing Consumers Energy to redeploy capital.

3. Community Impact and Regulatory Review

The agreement preserves dam operations, existing reservoir footprints and public amenities such as trails and habitat. State and federal regulators are reviewing the sale, with final approval required before Confluence Hydro can assume operations and begin licensure processes.

Sources

ZF