LANSING, Mich., (WPBN/WGTU) — Consumers Energy announced today that it has signed a purchase agreement to sell 13 hydroelectric dams along five Michigan rivers to Confluence Hydro for $1 each.
The announcement was made during a virtual news conference.
Srikanth Maddipati, Consumers Energy’s President of Electric Supply, said, “These dams have been generating power for our customers for 100 years on average and have been a central part of their communities. We value that history and the many people who have worked for our company to keep these dams operating safely for Michigan. However, we face the need to start looking at these dams’ futures for a couple of reasons. One, they do cost significantly more to operate than other energy sources and two, their federal licenses start expiring in less than a decade.”
As part of the agreement, Consumers Energy will buy back some of the energy generated from the dams for 30 years.
The decision to sell the dams and keep them operational followed extensive research and community engagement.
Angela Thompkins, Consumers Energy Vice President of External Affairs, said, “In 2022 we initiated community meetings near each dam to explain our intentions and give people a voice in the process. We performed an economic impact study providing valuable information about the economic, recreational, and cultural impact that the dams have on the affected communities and we invited community members to be a part of our prosperity.”
Thompkins added that it was clear the communities wanted the dams to remain in place and that Confluence Hydro was the perfect buyer.
Ed Quinn, Chief Executive Director of Confluence Hydro, said, “Over the past decade, we have built a team led by energy industry executives who successfully upgraded and operated more than 60 hydro facilities and dozens of other power plants.”
The sale is subject to approval from state and federal regulators, which is expected to take between 12 and 18 months.