State Agencies Question Consumers Energy's Dam Sale Plan

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Consumers Energy is facing pushback from multiple state agencies over its plan to sell its collection of 13 hydroelectric dams to a Maryland-based private equity firm for $13 million. The state's Attorney General's office, Department of Natural Resources, and Michigan Public Service Commission have all submitted filings questioning the cost-effectiveness of the deal or outright opposing the plan. Consumers argues the private equity firm has the capital resources to bring the aging dams into compliance, but regulators want more proof this is the best option.

Why it matters

The sale of Consumers Energy's hydroelectric dams to a private equity firm is a significant move that could impact electricity rates and the long-term maintenance of critical infrastructure. State agencies are scrutinizing the deal to ensure it is in the best interest of Michigan ratepayers and the environment.

The details

Consumers Energy announced late last year that it plans to sell its 13 hydroelectric dams to a Maryland-based private equity firm. The private equity firm would then sell the electricity generated by the dams back to Consumers Energy under a 30-year contract. Consumers argues this would be more cost-effective than the company repairing and operating the aging dams itself. However, the Attorney General's office, Department of Natural Resources, and Michigan Public Service Commission have all raised concerns about the deal, questioning whether it is truly the most cost-effective option and voicing opposition. The MPSC, which has final say on the decision, is expected to rule on the plan in the coming weeks or months.

• Consumers Energy announced the dam sale plan in late 2025.
• State agencies have submitted filings questioning or opposing the plan in early 2026.

What’s next

The Michigan Public Service Commission is expected to rule on Consumers Energy's dam sale plan in the coming weeks or months.