Private Equity Firm to Acquire Consumers Energy's 13 Michigan Dams for $13

Consumers Energy has announced plans to sell its 13 hydroelectric dams in Michigan to Maryland-based private equity firm Hull Street Energy for a total of $13.

 

These dams, constructed between 1906 and 1935, have become increasingly costly to maintain, producing less than 1% of the company's electricity at nine times the cost of other energy sources.

 

Local communities have expressed concerns about the potential risks associated with private ownership of these aging infrastructures.

 

Past incidents, such as the 2020 dam failures in mid-Michigan that caused $200 million in damage, highlight the importance of proper maintenance and oversight.

 

Critics argue that private owners may lack the financial resources or incentives to invest in necessary repairs, potentially endangering downstream communities.

 

Consumers Energy has stated that the sale aims to reduce costs for customers while maintaining the recreational and economic benefits the dams provide to local areas.

 

However, the Michigan Hydro Relicensing Coalition opposes the sale, citing concerns over future capital investments and the economic viability of the dams under private ownership.

 

As the sale progresses, it is crucial for regulatory bodies to ensure that the new owners are capable of maintaining the dams safely and responsibly to prevent potential disasters.