Michigan regulators to decide on sale of 13 dams by Dec. 17

Consumers Energy announced that Michigan regulators have until December 17, 2026, to rule on a proposed sale of 13 dams, extending the previous November 9 deadline to allow more time for settlement talks, according to EconoTimes.

The dams involved in the proposal are located on the Au Sable, Grand, Kalamazoo, Manistee, and Muskegon rivers. Under the plan, Confluence Hydro, an affiliate of Hull Street Energy, would take ownership and liabilities of the dams, while Consumers Energy would purchase electricity under a 30-year power purchase agreement (PPA).

The sale price is $13 total, equating to $1 per dam. The power contract would start at $160 per megawatt-hour with a 2.5% annual increase. Consumers Energy estimates this deal would save customers about $500 million compared to decommissioning the dams and would incentivize keeping the dams operational.

However, an administrative law judge previously recommended rejecting the PPA, citing unresolved questions about how the sale and contract would affect rates relative to other options. The judge also expressed concerns that future liabilities from the dams might eventually become the responsibility of the state or taxpayers.

The Michigan Public Service Commission holds the final authority on the case, which has faced challenges from four parties.

What we're watching: The commission's decision by December 17 will determine the future ownership and operation of these dams and their impact on customer rates and state liabilities.