Michigan Regulators Draft Resolution Opposing Consumers Energy Dam Sale

Adapted from reporting by Laura Herberg and Kelly House
Additional reporting and commentary by Brad Young, founder, West Michigan Kayaking Club

Michigan's fish and wildlife regulators are adding their voices to the growing opposition to Consumers Energy's proposed sale of 13 aging hydroelectric dams to an out-of-state private equity firm. Following a presentation from critics during a recent meeting, members of the Michigan Natural Resources Commission (NRC) discussed introducing a resolution formally opposing the transaction, citing concerns that Michigan taxpayers could ultimately be left responsible for maintaining—or removing—deteriorating dams.

"We don't have a vote, but we have a voice," Commissioner Brandon Fewins said while announcing his intention to introduce the resolution.

Opposition Continues to Grow

The NRC's proposed action adds to an expanding coalition of opponents that includes Michigan Public Service Commission staff, Michigan Attorney General Dana Nessel, environmental organizations, consumer advocates, and local recreation groups. Critics argue the proposed agreement fails to adequately protect the public by ensuring the new owners have the financial resources to safely operate and maintain the aging infrastructure.

Among the organizations advocating for a different approach is the West Michigan Kayaking Club, whose members have long supported removing obsolete dams to restore healthier rivers, improve fish passage, and enhance public safety.

"A Matter of When They Will Fail"

Brad Young, founder of the West Michigan Kayaking Club, said many of the dams have significantly exceeded their intended service life and now pose increasing risks to both communities and Michigan's river ecosystems.

"These dams have outlived their expected lifespan—many by more than 20 years. They need to be removed to protect the health of our rivers and the safety of the communities downstream. It's no longer a question of if they will fail, but when."

The West Michigan Kayaking Club works to promote safe paddling, river conservation, and public education while advocating for the restoration of Michigan's waterways. The organization hosts paddling events, cleanups, and educational programs throughout the year.

To learn more about the club or become involved, visit https://www.westmichigankayakingclub.online or join the West Michigan Kayaking Club Facebook Group at https://www.facebook.com/share/g/1EyCJdDPEo/?mibextid=wwXIfr.

The Proposal at the Center of the Debate

Consumers Energy plans to sell its 13 hydroelectric dams to Confluence Hydro LLC, a subsidiary of Maryland-based private equity firm Hull Street Energy. Under the proposal, Consumers would then purchase the electricity generated by the facilities through long-term agreements at approximately twice current market rates—a commitment critics estimate could cost customers roughly $1.25 billion over the life of the contracts.

Opponents are particularly concerned that Confluence Hydro intends to place each dam into a separate limited liability company (LLC). They argue the ownership structure could shield the parent company from financial responsibility if individual entities become insolvent, potentially leaving taxpayers responsible for dam failures, costly repairs, or decommissioning. Many have cited the catastrophic 2020 Midland-area dam failures as a reminder of the risks associated with aging infrastructure.

Consumers Energy maintains the sale represents the most cost-effective path forward. Company officials have warned that if regulators reject the agreement, the utility would move to decommission all 13 dams, eliminating reservoirs that many surrounding communities use for boating, fishing, and other recreational activities.

Michigan Department of Natural Resources Director Scott Bowen echoed concerns about long-term liability, warning that the state could ultimately inherit responsibility for deteriorating infrastructure if private owners abandon the facilities. The department already manages more than 200 small dams and faces significant maintenance challenges maintaining its existing inventory.

Looking Ahead

As the Michigan Public Service Commission and the Federal Energy Regulatory Commission continue reviewing the proposal, debate over the future of the dams remains intense. Conservationists, local communities, anglers, paddlers, and outdoor recreation advocates continue to argue that removing obsolete dams would improve public safety, restore natural river ecosystems, enhance fish passage, improve water quality, and create healthier waterways for future generations.

For many advocates, the discussion extends beyond the sale itself. They believe it presents an opportunity to rethink the future of Michigan's rivers by prioritizing ecological restoration, community safety, and long-term stewardship over continued investment in aging infrastructure.