Consumers Energy Sells Hydroelectric Dams to Confluence Hydro

Why this matters: This move ensures the continued operation of hydroelectric dams, providing stable energy generation and preserving community benefits while reducing costs for Consumers Energy customers.

Consumers Energy initiated a process in 2022 to determine the future of its hydroelectric dams, considering options to sell, remove, or continue operating them. Community meetings and economic impact studies played a significant role in the decision-making process. Stakeholders emphasized the importance of the dams for recreational activities like fishing and hiking, as well as their contribution to the local economy.

The agreement with Confluence Hydro includes a 30-year PPA, incentivizing the new owner to maintain and operate the dams. This arrangement ensures revenue stability for Confluence Hydro and provides the resources needed for necessary investments. The regulatory process for the license transfer and sale is expected to take 12-18 months, with a final sale anticipated in late 2026 or early 2027.

Confluence Hydro specializes in the power sector and has a track record of upgrading and operating hydroelectric facilities. The company is committed to safety, community engagement, and investing in the modernization of the dams to meet rigorous licensing standards.

Selling the dams is more cost-effective than decommissioning or re-licensing them, reducing long-term costs for customers.

Confluence Hydro will retain all existing Consumers Energy employees who work at the dams.

Confluence Hydro will keep the facilities in operation for at least the next 30 years.

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