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Consumers Energy proposes $270 million safety fund as regulators review hydroelectric dam deal

Five Channels Dam in Oscoda Township
Five Channels Dam in Oscoda Township

Regulators are scrutinizing a hydro-electric deal involving 13 Michigan dams, five major rivers and a multi-million-dollar safety fund

Consumers Energy signed a purchase agreement in September 2025 to sell 13 hydroelectric dams along five Michigan rivers to Confluence Hydro. The sale aims to reduce long-term costs for Consumers customers. Confluence would provide power generated by the dams to Consumers customers for the next 30 years.

While state and federal regulators continue reviewing the sale, Consumers has proposed a $270 million Hydro Safety Fund addressing unforeseen safety issues when Confluence takes ownership. Shareholders would financially support the fund, money that would otherwise have been retained from the sale. The state would administer the fund.

According to a GQR survey of 600 Michigan residents, 63% of those polled supported selling the dams, with 60% saying they have a favorable view of the dams and 77% stating it’s their preferred energy source.

Should the sale be denied, Consumers says it will decommission the dams, remove them and drain the reservoirs, significantly changing waterfront areas.

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Dave joined WGVU Public Media in November of 2023 after eighteen years as a Michigan Association of Broadcasters Emmy-nominated photojournalist and editor at Grand Rapids' WOOD TV8 and three years at WEYI TV25 in Flint, Michigan. As a General Assignment Reporter, Dave covers daily news and community events all over West Michigan.
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