MICHIGAN – Consumers Energy and Confluence Hydro provided an update to the sale of Consumers Energy’s 13 hydroelectric dams on Tuesday in a press release.

According to the release, Consumers Energy is offering a new $270 million Hydro Safety Fund to support Michigan communities in case of unforeseen safety issues after Confluence Hydro takes ownership, and Confluence Hydro is providing other commitments.

The proposed fund supplements other existing measures that will enable continued safe operations of the dams under Confluence Hydro, the release stated. These measures include a long-term power purchase agreement that provides Confluence Hydro with steady revenue to invest in the dams. The existing Consumers Energy hydro workforce will transition to Confluence Hydro. The fund is among the updates that both companies are offering to state regulators to address public questions about the sale.

“Consumers Energy has found an experienced, responsible and safe new owner for these dams in Confluence Hydro. This safety fund directly addresses concerns some have raised about the future of the dams,” Chris Fultz, Consumers Energy’s senior vice president of electric supply, said in the release. “We have heard and understand these concerns, and this filing reflects our commitment to demonstrating good faith and accountability.”

The Michigan Public Service Commission is reviewing the proposed sale, according to Consumers Energy. If the sale is not approved, Consumers Energy will decommission the dams. This would include removing the dams and draining the reservoirs, which would alter the waterfront landscape as it exists today.

Consumers Energy conducted a survey of 600 Michigan residents and found 63% of Michigan residents support selling the dams. That support increases to 67% for voters living in counties with a Consumers Energy dam.

According to the release, updates that Confluence Hydro and Consumers Energy offered to the case include the following:

– Consumers Energy will provide up to $270 million in shareholder dollars to create a Hydro Safety Fund to help protect the state in case of long-term safety issues that may unexpectedly arise with the dams. The company would provide shareholder dollars that it would otherwise receive from the sale to the State of Michigan. The state would administer the fund.

– Confluence Hydro will institute a community engagement plan focused on conversations with local communities and will provide a robust suite of related recreational and conservation programs.

– Confluence Hydro will also commit not to reduce land in forthcoming relicensing processes unless doing so serves public interests and is informed by thorough stakeholder consultation.

“Since announcing the sale last year, Confluence Hydro has participated in a series of public meetings and met with dozens of community leaders and policymakers. Time and again, residents shared how valuable these dams and their recreational and conservation benefits are to local communities,” Jillian Lawrence, chief operating officer of Confluence Hydro, said in the release. “We’re excited to continue the legacy of these dams and maintain the high standards for community engagement and public access that Consumers Energy has set.”

The new updates reinforce strong support across Michigan for the dams’ sale, including resolutions of support from local governments and organizations, the release stated. Those include Oscoda Township, Develop Iosco, Iosco County, Wexford County, Allegan County, and Allegan Township.

The GQR survey, conducted May 23 to 28, also found that 60% of participants say they have favorable views of the dams. A majority of the respondents, 77%, said dams are their preferred energy source.

“At a time when many issues are polarized along partisan and demographic lines, the dam sale between Consumers Energy and Confluence Hydro stands out for its broad support,” John Barry, senior associate at GQR, said in the release. “Michiganders want to preserve dams that provide clean, renewable energy, support local communities, and create opportunities for recreation.”

According to Consumers Energy, GQR conducted the survey through phone calls and texts to 600 Michigan residents, with an additional oversample of 200 registered voters in nine counties with hydroelectric dams including Alcona, Allegan, Ionia, Iosco, Manistee, Mecosta, Newaygo, Oscoda, and Wexford.