Consumers Energy contemplates selling of its hydroelectric facilities

A request for proposal (RFP) is pending from Consumers Electric of Michigan that would explore the sale of 13 of its hydroelectric facilities in a cost-saving pursuit.

Licenses for the dams in question will begin to expire in 11 years, starting in 2034 and running through 2041. These licenses run on 30-40 year operating periods. While this means there is still plenty of time before change would be necessary, Consumers added that the dams together produce less than 1 percent of energy used by its nearly 2 million customers, and at times cost more to maintain than other energy sources.

“After numerous conversations over the past year, it is clear the reservoirs are important for economic and recreational opportunities in these communities across Michigan,” Norm Kapala, Consumers Energy’s vice president of generation operations, said. “But we also know that the current model for financing our hydroelectric power operations requires customers to pay more than nine times for the cost of energy compared to other sources of generation.”

The pending RFP follows a series of public meetings held last year regarding the dams’ future. As a result, the company will also explore ways to safely maintain the dam reservoirs while cutting costs for customers.

“Today’s announcement is an initial step we need to take to learn more about what selling the facilities might look like,” Kapala said. “If we choose to move forward and sell these facilities, our intention is to minimize the cost burden for customers while keeping the recreational and economic benefits for our communities. No final decision has been made, and we continue to explore all options.”

Another series of public community meetings will likely follow later this summer and fall, focused more on what potential sale of the dams would bring and other options for the sites.