Consumers Energy selling 13 hydroelectric dams along Michigan rivers

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The Hardy Dam along the Muskegon River. Photo courtesy of Consumers Energy. 

(FOX 2) - Consumers Energy is selling its 13 hydroelectric dams following a lengthy review process about whether the utility should refurbish the structures themselves, decommission them, or sell them.

The sales agreement is with Confluence Hydro, a subsidiary of a Maryland-based investment company called Hull Street Energy, which will keep the dams up and running for the next 30 years.

In exchange for purchasing the dams, they'll sell the power to Consumers Energy, which will pass it on to customers.

Big picture view:

One of Michigan's largest energy providers is selling its dams that are located along five major rivers throughout the Lower Peninsula. 

The decision to sell came after a three-year process of surveying communities that surround the 13 dams while assessing the most cost-effective measure for customers.

The dams are located along the Au Sable River, the Manistee River, the Muskegon River, the Kalamazoo River, and the Grand River. The dams generate close to a hundred megawatts of power. 

"We're confident this is the best decision for our customers," said Sri Maddipati, president of electric supply at Consumers.

Dig deeper:

Announced during a Tuesday meeting, the company said the sales agreement was worth $13 - $1 per dam with a power purchase agreement. In exchange for purchasing the dams and operating them for the next 30 years, Confluence will sell the power back to Consumers Energy.

The 55 employees that operate Consumers' 13 dams will be offered positions with Confluence, once the sales agreement is approved.

Both the Michigan Public Service Commission and the Federal Energy Regulatory Commission must green light the sale before it can go forward. The regulatory process is expected to take between 12 and 18 months. Until its complete, Consumers Energy will continue operating the dams.

Hull Street Energy currently owns 47 dams around North America. 

The company will be tasked with renewing the dam's operating licenses, which expire in 2034. 

What they're saying:

"Safety has always been foundational to everything we do," said Ed Quinn, Chief Executive Officer of Confluence Hydro. "With decades of experience operating hydro facilities, we are committed to preserving and modernizing these important resources to maximize their contribution to the grid. We deeply admire and respect the Consumers Energy team and the culture of safety and operational excellence they have built."