Michigan Attorney Dana Nessel wants state regulators to reject Consumers Energy’s proposed sale of its fleet of aging hydroelectric dams to a private company. In northern Michigan, that includes the Hodenpyl and Tippy dams on the Manistee River.
Alongside environmental groups who oppose the sale, Nessel said their attempts to renegotiate the terms over cost and safety concerns failed this month.
This story is made possible through a partnership between Interlochen Public Radio and Grist, a nonprofit environmental media organization.
“The conversations are going nowhere,” Nessel told Interlochen Public Radio. “Consumers has basically said what we often hear from the utilities: My way or the highway, and their way could be very, very dangerous for the people of this state.”
Consumers Energy wants to sell its 13 hydroelectric dams along rivers in Michigan to the private company Confluence Hydro for $1 each, and signed a purchase agreement last year that needs approval from the Michigan Public Service Commission, or the MPSC.
Consumers Energy said the sale is the cheapest option for ratepayers while preserving dams and reservoirs that mean a lot to communities.
In response to questions about Nessel’s position, Consumers Energy spokesperson Brian Wheeler said she “is deliberately seeking to disrupt this process.”
“If she wants to focus on protecting Michigan customers and seeking a positive outcome for communities who depend on these dams, she should focus on negotiating in good faith instead of chasing headlines,” Wheeler said.
Consumers Energy asked the MPSC to extend the decision timeline, two days before the initial Sept. 10 deadline, because “there may be an opportunity for the parties to reach a constructive solution.”
But groups opposing the sale said after several attempts, a settlement is not possible in this case because the parties “remain far apart on fundamental issues.”
Nessel said they proposed changes to the sale terms like holding Confluence Hydro’s parent company Hull Street Energy liable for all costs of operation, maintenance and any eventual decommissioning led by itself or a future owner.
Without those changes, Nessel worries about who would pay for potential dam failure.
“There is no reason at all that this sale should go through and have the taxpayers at the end of the day potentially have to pick up the tab in the event that something goes wrong,” she said.
This summer, Michigan Attorney General Dana Nessel reversed her original, conditional support for the sale after an administrative law judge recommended that the MPSC reject the “highly problematic” deal.
Consumers officials maintain the sale is a good deal because the alternative would be to charge ratepayers billions of dollars to repair or demolish the unprofitable dams.
“Consumers Energy and Confluence Hydro have gone to bat for our customers and the communities we serve, and we remain committed to collaborating with stakeholders in this case to address their concerns and provide the best outcome for Michigan,” Wheeler with Consumers Energy said.
Nessel said the trend of putting critical dams, roads or bridges under private ownership in Michigan is concerning. This spring, flooding across the state pushed numerous dams in the state to dangerous levels, including the Cheboygan Dam where ownership is split between the state and a private owner.
It prompted movement on bipartisan legislation around dam safety reform which would increase state oversight, inspections and create a dam safety fund. The bill inched closer to passing the Michigan Legislature this month and now awaits Gov. Gretchen Whitmer’s signature.
“The more infrastructure that can be actually owned by the government, the better off,” she said. “The only responsibility will be to keep people safe and to keep that infrastructure maintained, and not just how much money you can make off of it.”
