Press Release

MI Conservation Groups File Expert Testimony Opposing Consumers Energy’s Proposed Dams Sale to Private Equity Firm

“Michigan must act now to stop this sale and protect the rivers that define our natural heritage”

On Monday February 9, the Michigan Hydro Relicensing Coalition et al filed witness testimonies from seven expert witnesses and seven “local river witnesses” before the Michigan Public Service Commission (MPSC) expressing a myriad of concerns over the detrimental impact likely to result from Consumers Energy’s proposed $13 sale of 13 hydroelectric dams along five rivers in the state to Maryland-based Hull Street Energy Partners. (Case U-21985)

The witnesses raised important concerns regarding future liability of the dams falling on the State, access to public lands, water quality and Consumers’ incomplete assessment of dam removal. Testimony was submitted to the MPSC by the Environmental Law & Policy Center (ELPC), which represents the conservation groups.

The five groups ELPC represents include: the Michigan Hydroelectric Relicensing Coalition (MHRC), Great Lakes Council of Fly Fishers International, Anglers of the Au Sable, Michigan Trout Unlimited, and Michigan Steelhead and Salmon Fishermen’s Association (MSSFA).

The expert witness testimonies outline a range of arguments related to the detrimental impact of private ownership on Consumers’ fleet of dams, including the lack of incentive for the buyer to properly operate and maintain the dams, the lack of oversight once the dams change hands to a private entity, and potential ecological and natural resource impacts related to fisheries and water quality.

The expert witnesses are:

Douglas Jester, Consultant at 5 Lakes Energy;

Marty Melchior, Principal at Interfluve;

Tom Lyon, Professor, University of Michigan;

Gene Wedoff, Retired Federal Bankruptcy Judge;

Ben Scuderi, Lead Economist at Southwick Associates;

Ralph Haefner, Retired USGS Hydrologist;

Paul Seelback, Retired Professor, University of Michigan;

The thirteen dams in the proposed sale are in five rivers throughout Michigan, including the Au Sable, Manistee, Muskegon, Grand, and Kalamazoo Rivers. These rivers are highly valued among anglers. The Au Sable River is known for world-class trout fishing. It is the premier groundwater-fed cold-water stream in Michigan, drawing anglers from throughout the state and the Midwest. Additionally, the Manistee and Muskegon host the most visited migratory fisheries for steelhead and salmon in the state.

Residents and visitors across Michigan depend on healthy ecosystems and enjoy beautiful river views, so there are broad concerns about the future risks of selling the dams.

Howard A. Learner, Executive Director of the Environmental Law & Policy Center, and lead attorney for the five Michigan-based Conservation Groups, said:

“Five leading Michigan conservation groups are making the expert witness supported policy, economic, business and environmental case why the Michigan Public Service Commission should reject this misguided proposed sale of 13 hydro dams to an out-of-state private equity firm that will cost ratepayers hundreds of millions of dollars in higher charges on their electricity bills.

“Michigan is unfortunately suffering damages and risks from private equity-type owners with the Edenville and Sanford dam breaches near Midland, and the Au Train dam bankruptcy situation near Munising. The Michigan Commission should recognize and learn the lessons from those consequences. The proposed dam sale here will worsen energy affordability and increase environmental risks. ELPC attorneys are proud to represent these leading Michigan conservation groups working to protect five iconic rivers that Michiganders use and enjoy for outdoor recreation and that are central to ‘Pure Michigan’.”

Bob Stuber, Executive Director of Michigan Hydro Relicensing Coalition, said:

“Consumers has publicly acknowledged that these hydropower projects are economically marginal, so it begs the question: if Consumers is challenged to turn a profit from these projects, how will a private equity firm be able to do it? Remember the Boyce Hydro Ltd bankruptcy after the Tittabawassee River Edenville and Sanford catastrophic dam failures? Who footed the $200+ million bill? The taxpayers. The MPSC should not allow Consumers Energy to move forward with an out-of-state private equity shell game on our most treasured rivers.”

Bryan Burroughs, Executive Director of Michigan Trout Unlimited, said:

“We let this happen once with Midland Dams – shame on them. We let it happen twice with Au Train Dam – shame on them. If we invite this to happen 13 more times at our state’s largest dams, then it’s shame on us. Michigan Trout Unlimited’s primary concern is seeing the natural resource impairment to our nationally-unique cold-water rivers finally stop. Michigan must also learn from past mistakes and stop letting Michiganders and our outdoors get hurt by this corporate profit and liability game of musical chairs.”

Josh Greenberg, President of the Anglers of the Au Sable, said:

“The Anglers of the Au Sable oppose the sale of the Consumers Energy century-old dams to an out-of-state private equity firm that has an established and clear track record of buying and selling dams, but not of long-term operation. This proposed sale would put the Au Sable at immediate risk with threats of future sales, lack of funds for eventual decommission, and an uncertain long-term strategy for safe and unified operation. The MPSC should reject this sale not only because of future threats, but what has been learned from past dam failures in Michigan.”

Dave Peterson, Conservation Chair of Great Lakes Council of Fly Fishers International, said:

“Consumer’s proposed sale of these 13 dams endangers the future of five of Michigan’s most treasured rivers, renowned for their world-class trout fishing and thriving runs of salmon, steelhead, and other native species. Transferring ownership of the dams to an out-of-state private equity firm would strip Michigan citizens of the power to ensure proper maintenance, environmental stewardship, or responsible decommissioning. Such a move risks irreparable harm to ecosystems, recreation opportunities, and local communities that depend on these iconic waterways. Michigan must act now to stop this sale and protect the rivers that define our natural heritage.”

Alan Douville, President of Michigan Steelhead and Salmon Fishermen’s Association, said:

“MSSFA represents anglers and conservation-minded Michiganders across the state who rely on healthy rivers, stable aquatic ecosystems, and safe water infrastructure. Consumers Energy’s proposed sale of its 13 hydroelectric dams to Hull Street Energy poses dam safety issues under private ownership using 13 separate LLCs, water quality degradation affecting cold-water fisheries, higher electric rates, and potential failure to maintain or eventually decommission aging infrastructure.”

 

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