Consumers Energy to Sell Aging Hydroelectric Dams for $270M

The utility says the deal will save customers money, but critics argue it's a sweetheart arrangement with a private equity firm.

Apr. 9, 2026 at 1:03pm

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A photorealistic studio still life featuring a collection of sleek, polished metal and concrete geometric shapes, conceptually representing the abstract financial and strategic elements of the Consumers Energy hydroelectric dam sale.A private equity firm's acquisition of Consumers Energy's aging hydroelectric dams raises concerns about the long-term costs for Michigan ratepayers.Jackson Today

Consumers Energy, Michigan's largest utility, has announced plans to sell a fleet of aging and costly hydroelectric dams to a private equity firm for $270 million. The utility says the deal will save customers money in the long run by allowing them to purchase the power generated by the dams at above-market rates. However, critics argue the arrangement is a sweetheart deal that will ultimately cost ratepayers more.

Why it matters

The sale of the hydroelectric dams represents a broader trend of utilities offloading aging energy infrastructure to private investors, often at the expense of ratepayers. While Consumers Energy claims the deal will save customers money, consumer advocates argue the utility is prioritizing profits over the public interest.

The details

Under the proposed deal, Consumers Energy will sell 13 hydroelectric dams located across Michigan to a private equity firm. The utility will then purchase the power generated by the dams at rates higher than the current market price. Consumers Energy says this arrangement will save customers $5 million annually, but critics contend the deal is structured to benefit the private equity firm at the expense of ratepayers.

  • Consumers Energy announced the proposed sale on April 9, 2026.
  • The sale is expected to be finalized by the end of 2026, pending regulatory approval.

The players

Consumers Energy

Michigan's largest utility, providing electricity and natural gas to 6.8 million customers across the state.

Private Equity Firm

The unidentified private equity firm that has agreed to purchase Consumers Energy's fleet of hydroelectric dams.

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What they’re saying

“This deal will save our customers money in the long run and represents the best option for Michigan.”

— Patti Poppe, CEO, Consumers Energy

“This is a sweetheart deal that prioritizes profits over the public interest. Ratepayers will end up paying more in the long run.”

— Tom Redmond, Consumer Advocate

What’s next

The proposed sale of the hydroelectric dams must be approved by state regulators before it can be finalized.

The takeaway

The Consumers Energy deal highlights the ongoing tension between utilities, private investors, and consumer advocates over the ownership and operation of aging energy infrastructure. While the utility claims the arrangement will save customers money, critics argue it is a short-sighted move that will ultimately cost ratepayers more in the long run.