Consumers Energy Selling All of its Hydro Dams For $13

Consumers Energy is selling all 13 of its hydroelectric dams in Michigan for $1 a piece. Consumers claims it's to lower costs for customers, but when will prices go down?

Maintaining a hydroelectric dam is expensive, so why would another company take on such a project knowing the overhead could cost millions, if not billions to repair and maintain?

Hydroelectric Dams

A hydroelectric dam generates electricity by storing water in a reservoir, and then releasing it through turbines, which spin generators to produce power. They also provide other benefits, such as flood control, irrigation, water supply, and recreation.

Due to a dam's size and complexity, labor costs, and the need for ongoing repairs and replacements of equipment, hydropower remains one of the most cost-effective ways to generate electricity in the long term because if its lifespan and lack of fuel costs.

High upfront construction costs are unavoidable, and the total cost of maintaining and repairing the 13 dams Consumer Energy is selling could cost millions. Perhaps Consumers aims to offset costs by selling each dam for $1.

Read More: Michigan Rules on Destroying Beaver Dams

Consumers Energy Sells Dams For $13 In Major Move

According to FOX 17, Consumers Energy is selling its 13 hydroelectric dams to Confluence Hydro, which is owned by Hull Street Energy. Hull Street Energy is buying each dam for $1 and agreed to a 30-year deal to supply power to Consumers.

The dams acquired by Hull Street Energy will include:

• Au Sable River - The Alcona, Cooke, Five Channels, and Mio dams
• Grand River - Webber Dam
• Kalamazoo River - Calkins Bridge Dam
• Manistee River - The Hodenpyl and Tippy dams.
• Muskegon River - Croton and Hardy dams

Hull Street Energy is an investment firm that has operated nearly 50 hydroelectric dams across the country will now add 13 to more to its list. The company buys and sells its hydro dams and uses them as tax shelters to balance the income from other investments.

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All of the current Consumers Energy hydro dam employees are expected to be offered jobs with Confluence Hydro once state and federal regulators approve the deal. We will have to wait for a year to two to see if Consumers lowers energy rates for its customers.

👇BELOW: 15 Michigan Dams To Check Out👇