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Michigan neighbors learn about $13 sale of hydroelectric dams as approval process continues

Confluence Hydro and Consumers Energy address neighbor concerns about Webber Dam operations
Michigan neighbors learn more about $13 sale of hydroelectric dams as approval process continues
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MUIR, Mich. — Neighbors across Michigan are learning more about Consumers Energy's sale of 13 hydroelectric dams to Confluence Hydro for just $13, one dollar each.

The sale was announced two months ago as the companies now work through the approval process. They are awaiting approval from both the Federal Energy Regulatory Commission and Michigan Public Service Commission. They are 60 days into what could be a 12-18 month process.

Thursday night, the conversation focused on the Webber Dam in Ionia County.

Joe Pline's family has owned land near the Webber Dam on the Grand River since 1950. It shares a property line with the dam.

He, along with dozens of other neighbors, attended a community conversation Thursday night in Muir. He has a vested interest in what might change after Consumers sold the dam to Confluence Hydro in September. The future of the dam has been on his and his neighborhood's mind for a while.

The four main concerns Consumers and Confluence have encountered through their conversations are outdoor recreation, healthy river habitat, property values and taxes, and continuing safe operations and maintenance.

You might think cost is a factor, but the impact on rates is negligible. Officials explained that rates will incrementally increase by 1/15 of a penny because of the sale.

Pline says these meetings have a much different tone than Consumer's first meetings a couple years ago when it announced they were exploring a sale.

"People came in ready to fight them. Nine out of 10 people came in saying, 'This dam is being torn out,'" Pline said.

But that's not the case.

"We're here to revitalize and get ready for relicensing," a Confluence official said during the meeting.

According to both Confluence Hydro and Consumers, the transition will be seamless.

"One day, these dams will be operated by Consumers Energy. The next day they'll be operated by Confluence Hydro, and really, the public will not see any kind of change," said Adam Monroe, Executive Director of Hydro Generation at Consumers Energy.

Monroe is one of the Consumers employees who will transition to working for Confluence, an offer extended to current employees working directly on site at the Webber Dam.

He said, "I've been part of our river hydro organization for almost 20 years, and just really looking to be able to continue to do the job I do today, and continuing the legacy of these hydros."

The sale agreement ties the companies together for 30 years as Consumers will now buy back the energy produced and distribute to customers.

Confluence has reviewed Consumers' existing capital improvement plan and the future steps it would have taken to improve the dam. Confluence officials say overall the dam is in very good condition and their intent is to continue to operate.

The company touts its assets across the country, including 47 other hydroelectric facilities, but it has sold a number of dams it has purchased in the last decade. When asked about its future plans for the dam once it takes over, makes improvements and files for re-licensing, Confluence provided assurance about its long-term commitment.

"The way that the sale was structured, is predicated on a 30-year power purchase agreement that incentivizes us here at Confluence Hydro to make the investments in these facilities so that they can be re-licensed," said Natalie Joubert, Vice President for External Affairs and Policy at Confluence Hydro. "Re-licensing can be like a decade plus process, and those conversations are many, many years away, but we really are invested to be here for the long term."

Officials ended Thursday night's meeting saying there may be radio silence for a while as they wait on the approval process but say they are open to continuing the conversation. More information can be found here.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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