By Mark Constance
NORTHERN MICHIGAN – Consumers Energy announced today it has signed a purchase agreement to sell its 13 hydroelectric dams on five Michigan rivers to Confluence Hydro, an affiliate of Hull Street Energy, LLC.
The decision is expected to lower long-term costs for customers while ensuring the dams continue to operate safely and provide economic and recreational benefits to nearby communities.
The pending sale is expected to be completed in early 2027. Sale price is $13 or $1 per dam. Consumers will buy power from the new company.
“We believe a sale of the dams is the best path forward for our customers. This sale balances two important needs, to lower costs for Consumers Energy’s customers while continuing to care for communities that depend on the dams,” said Sri Maddipati, Consumers Energy’s president of electric supply.
“After numerous conversations with community members over the last three years to gather insights and feedback, we are confident this sale will preserve the reservoirs that hold the key to economic, recreational and community benefits at each of the dams.”
Consumers Energy will sell the facilities to Confluence Hydro, a wholly owned subsidiary of Hull Street Energy. Hull Street Energy owns and operates 47 hydroelectric facilities across North America and has extensive experience investing in power generation assets.
“With decades of experience operating hydro facilities, we are committed to preserving and modernizing these important resources to maximize their contribution to the grid,” said Ed Quinn, chief cxecutive officer of Confluence Hydro
“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 transaction requires state and federal regulatory approval and could close in 12 to 18 months. Under the agreement, Confluence Hydro will supply power to Consumers Energy for 30 years. The company also plans to seek approval to renew the dams’ federal operating licenses, which begin expiring in 2034.
This purchase agreement follows a three-year review by Consumers Energy to evaluate options for the century-old dams, including sale, decommissioning, or retaining them in its portfolio.
Jean Kang, Consumers Energy’s vice president of generation operations, said Hull Street Energy’s record with other dams and commitment to safety made them the right fit.
“Consumers Energy’s dams are a small part of our business, less than 1%, and our resources are best spent on needed investments in electric and natural gas reliability,” Kang said. “A buyer who has a focus on river hydro generation is better equipped to invest in these resources.”
Parks along the river course, including Old Orchard Park in Iosco County, are expected to stay intact.
Angela Tompkins, president of external affairs said communication with stakeholders across the state was part of the solution.
“We performed an economic impact study … about the economic, recreational, and cultural impacts that the dams have on their respective communities, and we invited community members to be a part of our prosperity group … That feedback was incredibly important. 
We heard loud and clear (that) a majority of our neighbors want the dams to stay in place, generating energy safely,” she said.
“They see in value the importance these dams have on the communities to provide recreational activities like fishing, hiking, and other important community activities. 
Our announcement today reflects input from these communities that we probably serve.”
Consumers Energy has informed 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 transaction is finalized.
The company also notified community members today and will schedule meetings with each affected community this summer and fall. Updates will be posted at ConsumersEnergy.com/hydrofuture.
For more information, visit ConsumersEnergy.com.
