Momentum continues to shift in the debate over the future of Consumers Energy's 13 hydroelectric dams. In a significant development, Michigan Attorney General Dana Nessel has withdrawn her conditional support for the utility's proposed sale of the aging facilities to Confluence Hydro LLC, citing unresolved concerns about financial liability and public safety.
The decision adds to growing opposition from regulators, conservation organizations, and river advocates who question whether the proposed transaction adequately protects Michigan residents and the state's waterways.
Why the Attorney General Changed Her Position
When Consumers Energy announced the proposed sale in 2025, the company argued that transferring ownership of the dams would reduce long-term costs while ensuring the facilities continued operating safely. Under the agreement, Consumers Energy would sell the dams and hydroelectric plants to Confluence Hydro for $1 and then purchase the electricity generated by those facilities through a 30-year contract.
Attorney General Nessel initially offered conditional support but said those conditions were necessary to protect Michigan taxpayers and utility customers. After Consumers Energy declined to accept those safeguards, she concluded the proposal no longer serves the public interest.
Among her biggest concerns is the possibility that Michigan residents could ultimately bear the financial burden if a dam fails or if the new owner is unable to meet its long-term maintenance and repair obligations.
Questions Remain About Long-Term Protection
Consumers Energy later proposed establishing a $275 million Hydro Safety Fund to help address future infrastructure needs. However, Nessel argued the fund would be built over three decades rather than funded immediately, potentially leaving insufficient resources available if a major repair or emergency occurred early in the agreement.
Her decision follows an earlier recommendation from an administrative law judge, who also concluded the proposed sale was not in the best interest of ratepayers.
What Happens if the Sale Falls Through?
Consumers Energy has stated that if regulators reject the proposal, it may move forward with decommissioning the dams. While that possibility has raised concerns among some waterfront property owners, many river restoration advocates note that decommissioning does not automatically mean every impoundment disappears overnight.
In many cases, dam removal is a carefully planned process that restores natural river flow, improves fish passage, reduces long-term maintenance costs, and enhances paddling opportunities while improving public safety.
Why This Matters to Michigan Paddlers
For kayakers, anglers, and outdoor enthusiasts, this debate is about much more than electricity generation. The future of these aging dams will influence river access, fish habitat, water quality, recreation, and the overall health of Michigan's waterways for generations.
Many aging dams across the state have exceeded their intended lifespan, making decisions about their future increasingly important for both communities and river ecosystems.
The Michigan Public Service Commission will make the final decision on the proposed sale. Whatever the outcome, it is likely to shape the future of Michigan's rivers for decades to come.
Stay Connected
Michigan Watshed Watch will continue following this story and other issues affecting Michigan's rivers, paddling destinations, dam removals, and conservation efforts.
To learn more about river advocacy and upcoming paddling events, visit the West Michigan Kayaking Club at https://www.westmichigankayakingclub.online or join the club's Facebook community at https://www.facebook.com/share/g/1EyCJdDPEo/?mibextid=wwXIfr.
Wild Rivers.Rugged Trails.Real Adventure.
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