Consumers seeks last-minute delay of decision on Michigan dam sales

Days before state regulators are set rule on Consumers Energy’s dam sale proposal, the utility wants more time to negotiate
The request comes after Gov. Gretchen Whitmer and an administrative law judge recommended denying the sale
Utility critics said the time for negotiations has passed

Consumers Energy is asking for more time to win over critics of its plan to sell 13 aging Michigan dams to a private equity firm, just days before state utility regulators were set to rule on the deal.

After spending months rejecting critics’ calls to add safeguards in the proposed deal, company officials on Tuesday said they are willing to negotiate with those critics.

In a filing with the Michigan Public Service Commission, company lawyer Bret Totoraitis asked commissioners to delay by up to 60 days a final order in the case. A decision had been expected on Thursday.

More time would give Consumers and critics “an opportunity to resolve the issues in this case cooperatively,” he wrote.

One sale critic described the request as a last-gasp effort to salvage a bad deal and urged public service commissioners to make a decision this week.

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“Consumers obviously thinks that they’re not going to win,” said Howard Learner, CEO of the Environmental Law & Policy Center, which represents several river advocacy groups opposing the sale. The company “could have made a settlement request to the parties at a much earlier time, but explicitly refused to do so.”

The plea comes after an administrative law judge and Gov. Gretchen Whitmer both urged commissioners to reject the sale, arguing it’s too risky for Michigan ratepayers and the public.

The dams in the Kalamazoo, Grand, Muskegon, Manistee and Au Sable rivers are some of the oldest and biggest in Michigan.

Opponents fear they could fall into disrepair and become a burden to taxpayers if they are sold to Confluence Hydro, a subsidiary of Maryland-based private equity firm Hull Street Energy.

Consumers has proposed selling the dams to Confluence for $1 apiece and inking a 30-year contract that would obligate ratepayers to buy back the dams’ power at double the market price plus a $270 million cut for Consumers.

Utility officials argue the sale-and-buyback plan is cheaper than keeping or demolishing the dams, while critics question that math and say they fear Confluence will pocket the proceeds without reinvesting in dam maintenance.

The 13 century-old structures collectively need hundreds of millions of dollars in maintenance and upgrades.

Consumers had previously pushed for a swift decision from the state and spent months describing the proposed sale as non-negotiable.

Map of Michigan showing the locations of 13 Consumers Energy hydroelectric dams. The dams are grouped along five rivers: Hodenpyl and Tippy on the Manistee River; Mio, Alcona, Cooke, Foote, Five Channels and Loud on the Au Sable River; Hardy, Rogers and Croton on the Muskegon River; Webber on the Grand River; and Calkins Bridge on the Kalamazoo River. The graphic notes that Consumers Energy is considering whether to sell the dams and keep their impoundments or remove them.

Reached by Bridge Michigan on Tuesday, Michigan Public Service Commission spokesperson Matt Helms declined to comment on the request for a delay.

In a statement, Consumers hydropower chief Adam Monroe called the request “great news for anyone who cares about our dams and the Michigan communities that depend on them.”

“We look forward to engaging with others to find solutions that demonstrate these dams will continue to operate safely and responsibly for years to come,” Monroe said.

Consumers spokesperson Brian Wheeler said the company is now open to unspecified conditions on the sale.

He left open the possibility for another extension request.

When reviewing utility proposals like the dam sale, public service commissioners typically review the record developed during months of formal court-like proceedings overseen by an administrative law judge, using that evidence to decide how to rule.

This is Consumers’ second attempt to rally new support for the deal after formal proceedings have ended.

In July, company officials alerted commissioners that rather than pocketing a $270 million ratepayer-funded payout from the sale, they are now willing to put the money into a fund that the state could access if the dams are not maintained.

Critics said that amounts to ratepayers subsidizing costs that should be the new owner’s responsibility.

The time for negotiations is over, said Learner, the lawyer for sale opponents.

“It’s too late,” he said. “Consumers refused to negotiate throughout the entire case, sat on its hands. That should not now be somehow excused on the very eve of the commission’s decision.”

Michigan’s beautiful, troubled rivers

Michigan has more than 76,000 miles of rivers, creeks and streams. Prized for their beauty and bounty, the rivers are also facing challenges. Many are heavily polluted and the future of others is in question as dams age with limited oversight. Bridge Michigan is spending 2026 exploring the troubles and opportunities of Michigan’s rivers. Catch up:

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