This week, Consumers Energy announced it was giving the Michigan Public Service Commission more time to decide whether to approve the sale of 13 hydroelectric dams to Confluence Hydro, a private equity-owned firm created last year to manage the dams and purchase the energy they generate. This moves the deadline from November 9th to December 17th and marks the second time the deadline has been extended.
In August, Governor Gretchen Whitmer recommended the MPSC reject the deal, calling private dam ownership risky and stating the proposed deal lacked sufficient safeguards.
In July, Consumers proposed a $270 million Hydro Safety Fund addressing unforeseen safety issues should Confluence takes ownership. Shareholders would financially support the fund, and the state would administer it.
The 13 dams are all located on the Au Sable, Grand, Kalamazoo, Manistee and Muskegon Rivers.
Consumers says customers would save about $500 million should the deal go through, compared to the cost of decommissioning the dams and draining the reservoirs.
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