Michigan Residents: Support Dam Safety and Affordable Energy

While not all Michigan residents live near one, almost all will be negatively impacted if Consumer’s Energy is allowed to sell all 13 of its hydropower dams in the state. A sale would increase rates, limit government oversight over rates, and increase the risk of mismanagement and dam failure. You can help! Urge the Michigan Public Service Commission to oppose the sale of the dams to an out-of-state private equity company. As of July 7th, public comment remains open, but can close at any time.

Talking Points, Tips, and Comment Instructions

Use Freshwater Future’s guide to write your comment - read ALL instructions below to ensure your voice is heard!

1. 1. The MPSC will likely only consider comments that are unique and personalized. Use the Talking Points below to create your own message. 
   2. Include any personal experiences or opinions on the impacts of rising electricity rates and/or dam safety. 
   3. All comments are public - do not include information you wish to remain private.
   4. Please be sure to include the case number with your submission: Case U-21985

Suggested Talking Points:

We recommend including a general opening sentence opposing the project and three to four of the talking points. 

General Concerns:

• The Commission should oppose the sale of 13 hydropower dams because it increases the risk of harm to public safety, river systems, and customer affordability.
• I urge you to oppose Consumer Energy’s request to sell 13 dams for $1 each to a Maryland energy company, which will result in increased energy costs for ratepayers, legitimate concerns about long-term maintenance and management of the dam infrastructure.
• The Michigan Natural Resources Commission, a public, appointed body, unanimously passed a resolution that opposes the dam sale due to concerns of reduced government oversight and how the proposed owner can make money off of dams that Consumer’s Energy deems unprofitable.

Safety Concerns:

• Consumer’s Energy misleadingly claims that the sale will allow them and the customers to avoid costly repairs and demolitions despite the fact that these aging structures require immense care, money, and maintenance to ensure public safety.
• Past dam failures are catastrophic to surrounding communities and taxpayers end up on the hook for the cost. The proposed owner has already stated their intention to break up all 13 dams into separate companies, indicating their intent to limit financial and legal responsibility in the event of a failure.

Affordability Concerns:

• These dams do not currently generate profit for Consumer’s Energy, but the sale would bring in around $270 million in new profits at the expense of ratepayers, costing ratepayers about $1,800 more per person. (link)
• Because the potential buyer cannot access the cost-recovery mechanisms that are currently available to Consumers Energy, this worryingly eliminates the incentive to make long-term investments in the dams.
• Consumers Energy plans on buying the same power it is currently generating with the dams for 3 times the cost, shifting an immense burden onto rate-payers while eliminating the role of MPSC regulating rates
• Although the proposed buyer, a private equity firm, claims that they have no intention of selling the dams, they have record of owning dams for only short periods, selling them shortly after acquisition
• Consumer’s Energy plans to repurpose tens of millions of pre-paid ratepayer dollars. Instead of using the funds for dam decommissioning, the company is using it for employee bonuses and legal and consulting fees (link)

How to Submit Comments?

You have three choices for submitting comments.  We encourage people to submit comments as soon as possible, as the MPSC has not shared when the docket will close.

Online Docket: Type into a box or upload a PDF attachment  - submit HERE

Email: Be sure to include the Case number (Case U-21985) in the subject line  - mpscedockets@michigan.gov

U.S. mail:

Michigan Public Service Commission  

Attn: Executive Secretary  

7109 W. Saginaw Hwy.  

Lansing, MI 48917