Great News about the Sale of the Dams in Michigan!
As the summer issue of Fly Fisher was going to press we received word that the Administrative Law Judge hearing the evidence has rejected Consumers Energy’s proposed sale of the 13 hydro dams to an out-of-state private equity firm.
On June 10th, Michigan Administrative Law Judge James Varchetti issued his decision recommending that the Michigan Public Service Commission (MPSC) reject Consumers Energy’s proposed sale of 13 hydroelectric dams on five iconic Michigan rivers -- Au Sable, Grand, Kalamazoo, Manistee and Muskegon Rivers – to Confluence Hydro, LLC, owned by Hull Street Energy, a private equity firm. Judge Varchetti concluded after applying the statutory legal standards to the extensive expert testimony and financial and other documents in the evidentiary record, and the legal briefs, that the Michigan Public Servcie Commission should “reject” the proposed dams sale stating the the sale “is not in the interests of public policy or the public interest.”
Howard Learner, Lead Attorney and Executive Director of the Environmental Law & Policy Center, said:
“The Michigan PSC’s Administrative Law Judge got it right in the Proposed Final Decision. The proposed dam transaction is not in the public interest and should be rejected by the Commission. Michigan is facing two crises – energy affordability, and flooding risks to dam safety. Consumers Energy’s proposed dam sale to a private equity firm would make both worse. The proposed sale would worsen energy affordability by forcing ratepayers to pay hundreds of millions of dollars in higher charges on their electricity bills to make up for the unfair and imbalanced proposed deal. The proposed sale to an out-of-state private equity firm would put the rivers and dam safety more at risk.
Dave Peterson, Conservation Chair of the Great Lakes Council of Fly Fishers International, said:
“The Great Lakes Council of Fly Fishers International applauds Judge Varchetti’s recommendation that Consumers’ proposal to sell its thirteen hydro dams to Hull Street Energy be wholly rejected. Throughout the deliberations, the Environmental Law and Policy Center’s legal team and witnesses presented a clear and compelling case against the sale. The Judge’s recommendation will help protect and preserve some of Michigan’s most treasured rivers and the angling and recreational opportunities they provide.”
The Public Service Commission will now consider the Judge’s recommendations and issue their final decision in September, 2026.