In an unusual move, Michigan Attorney General Dana Nessel has reversed her original, conditional support for Consumers Energy's plan to sell its 13 aging hydroelectric dams in the state.
In a filing with the Michigan Public Service Commission, Nessel said the utility had made it clear it would not accept any conditions for its proposed sale of the dams to Confluence Hydro, and for that reason, she deemed the sale not in the best interest of the utility's customers.
In September 2025, Consumers Energy reached an agreement with Confluence to sell the hydroelectric plants and dams to the company for a nominal $1, transferring ownership, maintenance, and electricity production to the buyer. As part of the agreement, Consumers Energy would buy the electricity from Confluence for the next 30 years.
The utility said the "decision will reduce long-term costs for Consumers Energy customers, ensure the dams will continue to operate safely and provide economic and recreational benefits for nearby communities."
But Nessel said there are numerous issues that are not addressed by the sale terms. She said one of the conditions she would require in order to support the deal would be making sure the state of Michigan and customers would be held harmless in the event of a dam failure, or the new company's potential bankruptcy.
The AG's filing comes after an administrative law judge decided that the sale was not in the best interest of ratepayers, and after Consumers Energy then offered to establish a $275 million "Hydro Safety Fund."
But Nessel noted that the payments to the fund would be made in installments over a 30 year period—and thus there could potentially not be enough to repair a failing dam, for example, if that were to occur early in the fund's establishment.
Consumers Energy has said it may decommission the plants and dams if the sale does not go through. Some of the artificial lakes created by the dams have numerous waterfront homes on the shorelines.
Bob Stuber is President of the Michigan Hydro Relicensing Coalition, a coalition of five statewide, nonprofit conservation groups with an interest in the protection and enhancement of aquatic resources.
"The Coalition feels that Consumers has wielded the term decommissioning with the spectre of fear, meaning that it automatically means a dried up impoundment," Stuber said in an email to Michigan Public. "It’s not a one size fits all when it comes to the process and end product of decommissioning."
Stuber said decommissioning could take a number of forms, including individual property owners approving a special assessment to take over the dams.
Consumers Energy responded to Nessel's filing in a statement.
“We're disappointed the Attorney General isn't joining us in taking a stand for Michigan communities and the customers we serve, especially when the Attorney General’s own expert witness agreed selling the dams would save customers money. The sale of our dams to Confluence Hydro will continue their legacy of safe, affordable operations that neighbors and all of our customers can count on. As we stated in numerous regulatory filings and community meetings, the sale of our hydro fleet remains the most affordable path forward for customers. Our proposal is also carefully designed to ensure the continued safe operations of these facilities for years to come. We look forward to the Michigan Public Service Commission giving a fair, impartial review of our filing, which is good for Michigan.”
The Michigan Public Service Commission will make the final decision on the proposed hydroelectric sale.
Editor's note: Consumers Energy is among Michigan Public's corporate sponsors.
