Consumers Energy said Nov. 3 that Michigan regulators now have until Dec. 17, 2026, rather than Nov. 9, to rule on a proposed sale of 13 dams, allowing more time for settlement talks.
The dams sit on the Au Sable, Grand, Kalamazoo, Manistee and Muskegon rivers. Under the proposal, Confluence Hydro, an affiliate of Hull Street Energy, would assume ownership and related liabilities, while Consumers Energy would buy their electricity under a 30-year power purchase agreement, or PPA.
The proposed transfer payment is $13 overall, equal to $1 for each dam. The power contract would begin at $160 per megawatt-hour, with a 2.5% annual increase. Consumers Energy estimates the deal would save customers about $500 million compared with decommissioning and says it would provide an incentive to keep the dams in place.
In a June proposal for decision, administrative law judge James M. Varchetti said the record left unresolved how the sale and contract would affect rates compared with other options. He recommended rejecting the PPA and said the evidence did not establish that the arrangement was the lowest-cost option. Varchetti also raised concern that future dam liabilities could eventually fall to the state or taxpayers. The Michigan Public Service Commission (MPSC) has final authority in the case.
Four parties had challenged the prospects for a settlement before the latest deadline change. In an Oct. 6 filing, the Michigan Department of Natural Resources, the Michigan attorney general, the Association of Businesses Advocating Tariff Equity and the Michigan Hydro Relicensing Coalition said they did not think an agreement was possible and asked the MPSC to decide that month.
Consumers Energy's application was filed in MPSC Case U-21985 on Oct. 31, 2025. Chris Fultz, the company's senior vice president of electric supply, said it was seeking a constructive agreement. Consumers Energy said settlement work was continuing and identified Dec. 17, 2026, as the next decision deadline.
