JACKSON, MI (WNWN/WTVB) – Consumers Energy announced on Wednesday they will be issuing a request for proposal to explore the possibility of selling its 13 hydroelectric facilities.
According to a news release from Consumers, the energy provider continues to evaluate the future of the dams and considers all options to safely maintain the dam reservoirs.
The announcement comes after a series of public meetings with community members and local leaders about the dams’ future were held by Consumers.
Based on community feedback, Consumers Energy has decided to explore all options to safely maintain the reservoirs – the lakes created by the dams — while reducing costs for Consumers Energy’s customers.
Consumer’s Energy vice president Norm Kapala says, “After numerous conversations over the past year, it is clear the reservoirs are important for economic and recreational opportunities in these communities across Michigan. But we also know that the current model for financing our hydroelectric power operations requires customers to pay more than nine times for the cost of energy compared to other sources of generation. Today’s announcement is an initial step we need to take to learn more about what selling the facilities might look like. If we choose to move forward and sell these facilities, our intention is to minimize the cost burden for customers while keeping the recreational and economic benefits for our communities. No final decision has been made, and we continue to explore all options.”
Consumers Energy’s 30 to 40-year federal operating licenses on the Muskegon, Manistee, Grand, Kalamazoo and Au Sable rivers are set to expire beginning in 2034 through 2041.
Consumers Energy’s 13 dams together produce less than 1 percent of energy used by the energy provider’s nearly 2 million customers, and they are several times more expensive than other energy sources. Another series of public community meetings will be held later this summer and fall.
