11/06/2026
FOR IMMEDIATE RELEASE
June 11, 2026
Contact:
Judith Nemes
(773) 892-7494
[email protected]
Michigan Administrative Law Judge Rejects Consumers Energy’s Proposed Sale of 13 Hydro Dams to Out-of-State Private Equity Firm
“The Judge’s Proposed Final Decision is well reasoned, will help protect ratepayers against unfair utility charges, avoid more risks to dam safety, and preserve Michigan’s treasured rivers and recreational opportunities.”
Lansing, MI. – On June 10th, Michigan Administrative Law Judge James Varchetti issued a Proposed Final Decision (PFD) 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 based in Maryland. ALJ 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 MPSC should “reject” the proposed dams sale and the related overpriced 30-year Power Purchase Agreement and that the proposed transaction “is not in the interests of public policy or the public interest.”
In the 312-page Proposed Final Decision, Judge Varchetti concluded that multiple elements of the proposed transaction were not in the best interests of ratepayers, the rivers, dam safety and the state of Michigan. The PFD states that “the evidence indicates that Confluence faces meaningful financial and operational risks that call into question its financial ability to safely own and operate these facilities over the long term.”
The PFD also explains that Confluence provided no assurances in the proposed transaction that would prevent the private equity group from, in turn, selling the dams to another owner. The PFD also explains that the state of Michigan and its taxpayers could end up bearing future costs of owning and operating the dams if Confluence declares bankruptcy on any or all of the 13 dams that would be placed into 13 separate LLCs.
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.
“People of goodwill should be able to sit down together and reach reasonable solutions to this dam situation instead of offloading the properties to an out-of-state private equity firm with a reputation of flipping dams to new buyers within a few years of purchasing them.”
Bryan Burroughs, Executive Director of Michigan Trout Unlimited, said:
“Michigan Trout Unlimited is thrilled with the full-throated rejection of the proposed sale in today’s proposed final decision. We have been working towards a reasonable end-of-life for these dams for decades. This decision helps clear the path for that continued effort.”
Bob Stuber, Executive Director of the Michigan Hydro Relicensing Coalition, said:
“The Michigan Hydro Relicensing Coalition is pleased that the Michigan Public Service Commission Administrative Law Judge fully considered the evidentiary record in its conclusion that this proposed sale is not in the public interest nor good for the future of Michigan rivers.”
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.”
Tom Baird, Board member of Anglers of the Au Sable, said:
“We’re extremely pleased with the judge’s proposed decision today. The mighty Au Sable River is the crown jewel of Michigan’s cold-water resources and hosts six of the 13 dams. Today’s decisions keeps those dams in safe hands and in a position for responsible stewardship going forward.”
