Michigan Commission Postpones Verdict on Consumers Energy Dam Sale


Michigan Public Service Commission Halts Decision on Consumers Energy's Dam Sale
The Michigan Public Service Commission (MPSC) has temporarily stalled its decision regarding the controversial sale of hydroelectric dams owned by Consumers Energy. This unexpected delay comes on the heels of a previous determination made by an administrative law judge, who advised against the sale on public interest grounds.
In a ruling issued in June, Administrative Law Judge James Varchetti concluded that divesting the dams to a private equity firm would not benefit the public. Nonetheless, Consumers Energy has since attempted to modify its sale proposal, a move that has faced pushback from various stakeholders who contend that the case's reopening is improper.
On the day the commission was expected to make a conclusive ruling, Consumers Energy announced a voluntary extension of 60 days, aimed at allowing further dialogue between itself and Confluence Hydro, the potential purchaser. The utility company stated, “This provides time for Consumers Energy and Confluence Hydro to work with parties in the regulatory case to address concerns some have raised.”
Representing the opposition is attorney Howard Learner from the Environmental Law and Policy Center, who has expressed doubt regarding the commission's decision to delay. “There’s a principle of administrative law of finality,” he noted, insisting that the commission should fulfill its obligation to render a final verdict. He added, “We’re going into the negotiations in good faith, but if the negotiations aren’t going anywhere, it’s the commission’s responsibility to issue a final decision.”
Despite the surrounding controversy, Consumers Energy remains hopeful about the outcome of the proposed sale. The company has pointed out that it enjoys substantial support from communities that depend on the dams for their energy needs. They are dedicated to reaching a “collaborative solution” that would extend the operational lifespan of the dams for an additional three decades.
The MPSC has opted not to comment further on the ongoing deliberations.

