JACKSON, MI (WKZO AM/FM) – Consumers Energy today announced it has signed a purchase agreement to sell its 13 hydroelectric dams along five Michigan rivers, including the Calkins Bridge dam on the Kalamazoo River in Allegan County.
The company says the decision will reduce long-term costs for their electric customers, ensure the dams will continue to operate safely and provide economic and recreational benefits for nearby communities.
Consumers Energy has agreed to sell the facilities for $1 each to Confluence Hydro, a wholly owned subsidiary of Hull Street Energy, an investment firm with experience owning, operating and investing capital in power generation assets across North America, including 47 hydroelectric facilities.
The sale will need approval from state and federal regulators and could take 12 to 18 months. Under the agreement’s terms, Confluence Hydro will sell back power to Consumers Energy from the facilities for 30 years.
“Safety has always been foundational to everything we do,” said Ed Quinn, Chief Executive Officer of Confluence Hydro. “With decades of experience operating hydro facilities, we are committed to preserving and modernizing these important resources to maximize their contribution to the grid. We deeply admire and respect the Consumers Energy team and the culture of safety and operational excellence they have built. We see extraordinary opportunity to leverage our combined strengths to build a best-in-class hydro company – one that protects communities, supports employees, mitigates risk, and delivers reliable, clean energy for the future.”
The sale will need approval from state and federal regulators and could take place in approximately 12 to 18 months. Under the agreement’s terms, Confluence Hydro will enter into a contract with Consumers Energy to provide power from the facilities for 30 years.
Consumers Energy Tuesday notified its hydro operations employees of the sale. They will be offered jobs with Confluence Hydro. Consumers Energy will continue to own and operate the dams until the sale is complete.
Consumers Energy today also informed community members and will schedule meetings with each of the affected communities around each dam for this summer and fall. More details are at ConsumersEnergy.com/hydrofuture.
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