10-21-2025 4:34pm

Consumers Energy to Sell Its 13 Michigan Hydroelectric Dams for $13

Libby Williams Contributor

Consumers Energy is in the process of selling its 13 Michigan hydroelectric dams for a combined price of $13. The reason given is the dams, which were built between 1906 and 1935, are becoming increasingly too costly for them to remain profitable. The dams require expensive maintenance, and it is estimated that re-licensing all 13 dams would cost $1.4 billion.

This transaction is part of Consumers Energy's strategy to reduce costs for customers by exiting the expensive hydropower business. The sale, which is expected to be finalized within 12 to 18 months, involves a 30-year power purchase agreement, ensuring Consumers Energy can still buy the power produced.

The new owners, Confluence Hydro, are an affiliate of Hull Street Energy. The new owners plan to upgrade and maintain the facilities ton ensure safe operations and continue generating clean energy. The sale aims to maintain the dams' operational and recreational benefits (like fishing and hiking) for communities.

Consumer Energy has reached out to local communities for the past few years to discuss the future of the dams. The deal will include a transfer of employment to Confluence Hydro, which ensures that current dam workers are offered positions.

Environmental groups are advocating for removal of the dams due to ecological concerns including damage to fish habitats and increasing water temperatures. Many locals express the desire to keep the properties for aesthetic reasons such as the lake views, property values, and amenities.

The deal still needs approval from the Federal Energy Regulatory Commission (FERC) and the Michigan Public Service Commission (MPSC) before being final.