Michigan Groups Urge Regulators to Block $13 Dam Sale as Safety and Bankruptcy Fears Mount
Updated
Updated · POLITICO · May 11
Michigan Groups Urge Regulators to Block $13 Dam Sale as Safety and Bankruptcy Fears Mount
1 articles · Updated · POLITICO · May 11
Michigan anglers, conservation groups and the state Department of Natural Resources are pressing regulators to reject Consumers Energy’s plan to sell 13 hydroelectric dams to Confluence Hydro for $1 each.
Opponents say Confluence’s plan to place each dam in a separate LLC could let unprofitable sites go bankrupt, leaving aging structures as safety hazards without a parent-company guarantee.
Consumers says the sale is the only realistic way to keep the century-old dams running, arguing Confluence would invest more than $1 billion for federal relicensing while dismantling the dams would cost about $1.7 billion.
The dispute also turns on economics: the dams produce just 1% of Consumers’ renewable generation, yet critics also object to a power purchase agreement that would buy the electricity back at above-market prices.
The Michigan fight reflects a broader national strain on old dam infrastructure: U.S. dams average 65 years old, and about 15% of 17,000 high-hazard dams are rated in poor or unsatisfactory condition.
Faced with aging dams, should Michigan be selling to private equity or restoring its rivers for good?
A private firm is buying 13 dams for $1 each. What is the real cost for Michigan if they fail?