Consumers Energy says it's continuing negotiations with a potential buyer or buyers for a possible sale of its 13 hydroelectric dams.
The utility says it's losing money on the dams, due to necessary annual upgrades, and a sale appears to be the best path forward for its customers. The plan involves the utility selling the dams for $1 each, and entering into a long-term contract to buy the electricity the dams produce.
Mio Lake homeowner Mark Wilsey said he was "cautiously optimistic," about the announcement. Wilsey started a Facebook group, "Save the Dams," when Consumers first said it was looking to either demolish or offload them.
Wilsey said demolishing the dams would mean scores of homeowners like himself losing precious water views and boat access, as well as the risk that private drinking water wells could dry up.
"Pontoon clubs and associations, canoe rentals, boat rentals, all of those businesses will be affected," he added.
He said the top concern for many, if there is a sale, is to make sure the new owner has the financial means and expertise to maintain the dams properly.
That's especially true in the wake of the May 2020 collapse of the Edenville and Sanford dams on the Tittabawassee River after unusually heavy rains. Poor management by the Edenville dam owner was cited as one of the primary causes of the local catastrophe. The dam failures emptied out two lakes.
Wilsey said Consumers Energy has been a good corporate neighbor over the years.
"We would hope that any new owner would follow in those footsteps," he said. "It's not just the water itself, but Consumers also owns thousands of acres of land surrounding the lakes. That land would be part of the deal, as we understand it. And we want to see that land continue to be well managed as well as the water."
But another group, the Michigan Hydro Relicensing Coalition, remains adamantly opposed to Consumers either selling or demolishing the dams.
The coalition includes five nonprofits: Michigan United Conservation Clubs (MUCC), the Michigan Council of Trout Unlimited, the Great Lakes Council of Fly Fishers International, Anglers of the Au Sable, and Michigan Steelhead and Salmon Fishermen’s Association.
The group said Consumers Energy can seek cost-recovery for upgrades to the dams in rate hikes approved by state regulators. But a new owner wouldn't be able to do that, so it would likely have little incentive to keep the dams in good repair, as that would cut into any profits that might be possible from operating the dams.
"Consumers has owned these hydropower projects for 100-plus years and the projects are woven into the economic and social fabric of these communities," the coalition said in a statement. "Consumers has extracted financial gain and needs to be a good neighbor, not walking away through a sale."
Coalition member Anglers of the Au Sable issued its own, even blunter statement. Consumers Energy owns six hydroelectric dams along the Au Sable River.
"The Anglers of the Au Sable considers a sale of the dams on the Au Sable to be the worst possible outcome for the river and for the communities and the economies that depend on it. Dam transfers are a proven risk in this state. Considering the age and lifespan of the dams on the Au Sable, a sale should not have been on the table."
For its part, Consumers Energy said a final determination hasn't been made yet.
"Negotiations are in progress, although we need to be clear we have not reached a final decision. This process is very complex and covers a significant amount of detail, and we owe it to our coworkers, communities, and customers to take the time to make the best decision. Once a decision is made this year, we will communicate to stakeholders."
Consumers Energy is among Michigan Public's corporate sponsors.
