By Gari Voss
Conversations and possible fate regarding Consumers Energy’s 13 hydroelectric dams that are spread across Michigan continue. Community meetings began during 2022 when community members came together several times to examine the condition of the dams and alternatives for the future.
The relicensing process is neither simple nor inexpensive. Questions arose whether to replace the aging plants, remove the plants completely, or transfer ownership to another entity.
To ensure that a plant is safe, Consumers had to conduct a thorough examination that included the plant plus the fate of people living upstream and downstream of the facility. In the end, the feasibility and cost of operating a plant had to meet state and federal regulations.
But any decision required going into each community to review the situation, the condition of the dam and hydro plant, the cost of operation and upgrades, and alternatives for the future. The conversations had to include the impact on the community beyond the dam. In the case of Calkins Bridge Dam, the conversation included property owners around Lake Allegan, the Allegan Game Forest, and the City of Allegan.
Consumers held multiple meetings with the Allegan Lake community and with leaders in the Allegan area. One of the final presentations demonstrated the expenses to prepare the Calkins Dam for renewal.
Because the license of the dam does not expire before 2034, a quick decision did not seem necessary, but for those currently owning property and living on Lake Allegan, time is ticking too quickly. The lake provides recreation for motorized and nonmotorized “vehicles”. Some hunters and fishermen want to save the dam while other conservationists want to bring the river back to its original banks.
The question becomes whether, or not, the dam produces enough electricity to match the millions of dollars expected to restore it to a level for the licensing bureau.
Though communities had been told that Consumers would make a decision by March 2025, Brian Wheeler, a spokesperson for Consumers, recently explained that the decision would probably not happen this year.
There was an RFP (Request for Proposals) published in February 2024. Fifty parties voiced interest and a number submitted viable proposals. Wheeler stressed that vetting each prospective buyer takes time, especially when considering the safety of each plan.
In September 2024, Media Specialist Trisha Bloembergen stressed that during the vetting process, Consumers has been hoping for one buyer that would take ownership of all 13 dams.
“Our RFP was structured to solicit marketing interest in transferring the current licenses for continued operations, while allowing any interested parties to propose other scenarios,” Bloembergen said. “While it is true that we would not have a say in the future of the impoundments if the licenses were transferred, we can anticipate other scenarios that will only be considered if transferring a current license for continued operation is not cost-effective, and other solutions to maintain the impoundments are unsuccessful.
“Hopefully, the two-stage evaluation and bidding process will be completed by the end of 2025,” added Bloembergen. “As we consider bids and potential buyers, safety records and financial assurance will be our top considerations.”
In September 2024, Consumers Energy was in line to receive over $770 million in federal funding toward the hydroelectric plants. This grant money along with $749 million in loans made possible from the U.S. Army Corps of Engineers would keep improvement of the dams out of the ratepayers’ pockets. The question that could not be answered by Consumers’ spokespeople was whether, or not, the freezing of funds by the Trump administration took these funding sources off the board.
As time marches on, Consumers is still looking at all possibilities, and Lake Allegan residents can continue enjoying the recreational value of their properties.
