Consumers Energy asks state, federal regulators to approve sale of 13 hydroelectric dams – WWMT

Report on the Transfer of Hydroelectric Assets and Alignment with Sustainable Development Goals

Introduction and Transaction Overview

Consumers Energy has initiated the regulatory process for the sale of its 13 hydroelectric dams to Confluence Hydro. The request for approval has been submitted to the Michigan Public Service Commission (MPSC) and the Federal Energy Regulatory Commission (FERC). This strategic transfer of assets is designed to ensure the long-term viability of these facilities while aligning with key sustainable development objectives.

The dams are critical infrastructure located along five Michigan rivers:

• Au Sable River
• Grand River
• Kalamazoo River
• Manistee River
• Muskegon River

Contribution to SDG 7: Affordable and Clean Energy

This transaction directly supports Sustainable Development Goal 7 by ensuring the continued operation of significant clean energy infrastructure. If approved, Confluence Hydro will operate the dams under a 30-year agreement to sell the energy, capacity, and renewable energy credits generated back to Consumers Energy. This partnership guarantees a stable supply of renewable hydroelectric power, contributing to a sustainable energy mix and advancing the goal of affordable and clean energy for all.

Upholding SDG 8: Decent Work and Economic Growth

In alignment with SDG 8, the sale prioritizes local economic stability and decent work. Confluence Hydro has committed to extending employment offers to the current workforce operating the dams, ensuring job security and a just transition for skilled workers. Furthermore, the continued operation of the dams is projected to maintain economic and recreational benefits for the surrounding communities, fostering sustained and inclusive local economic growth.

Advancing SDG 9 and SDG 13: Sustainable Infrastructure and Climate Action

The transfer of ownership to a specialized operator, Confluence Hydro, represents an investment in resilient and sustainable infrastructure (SDG 9). Confluence Hydro’s commitment to seeking future federal relicensing for each facility indicates a long-term strategy for maintaining and potentially upgrading this critical infrastructure. By ensuring these hydroelectric facilities continue to generate power, the agreement actively supports climate action (SDG 13) by displacing fossil fuel-based energy sources and reducing greenhouse gas emissions.

Fostering SDG 11 and SDG 17: Sustainable Communities and Partnerships

This initiative exemplifies a multi-stakeholder partnership for sustainable development (SDG 17), involving private energy companies and state and federal regulators. To promote inclusive and sustainable communities (SDG 11), Consumers Energy and Confluence Hydro are engaging in a series of public meetings to provide transparency and gather community input. The schedule for these community meetings is as follows:

• Nov. 19: Calkins Bridge Dam, Allegan High School, Allegan, MI
• Nov. 20: Weber Dam, Muir Village Office, Muir, MI
• Dec. 1: Alcona and Mio Dams, Mio High School, Mio, MI
• Dec. 2: Foote, Cooke, Loud, and Five Channel Dams, Shoreline Players Theatre, Oscoda, MI
• Dec. 15: Hodenpyl and Tippy Dams, Crystal Mountain Resort, Thompsonville, MI
• Dec. 16: Hardy, Croton and Rogers Dams, Eisler Center, Ferris State University, Big Rapids, MI

Regulatory Timeline

The comprehensive regulatory approval process is anticipated to take between 12 and 18 months to complete.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy: The article focuses on the sale and continued operation of 13 hydroelectric dams, which are a source of renewable and clean energy. It also mentions the goal of reducing long-term costs for customers, touching upon the “affordable” aspect of this goal.
• SDG 8: Decent Work and Economic Growth: The article addresses this goal by highlighting the economic benefits for local communities and ensuring job security for the dams’ current employees.
• SDG 9: Industry, Innovation, and Infrastructure: The hydroelectric dams represent a key piece of sustainable energy infrastructure. The sale ensures their continued operation, maintenance, and future relicensing, which aligns with developing and maintaining reliable and sustainable infrastructure.
• SDG 17: Partnerships for the Goals: The entire process described involves a partnership between two private companies (Consumers Energy and Confluence Hydro), overseen by public regulatory bodies (MPSC and FERC), and includes engagement with civil society through community meetings.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   • The article discusses a 30-year agreement for the continued operation of 13 hydroelectric dams. This ensures that a source of renewable energy will remain active, contributing to the overall share of renewable energy in Michigan’s energy mix.
2. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men…
   • The article explicitly states that “Confluence Hydro is extending offers to current employees of Consumers Energy’s hydroelectric operations to continue working for them,” directly addressing the goal of maintaining employment and ensuring job continuity for the existing workforce.
3. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development and human well-being.
   • The sale ensures the 13 dams will “continue to operate safely.” Furthermore, Confluence Hydro’s plan to “seek federal relicensing for each facility in the future” points to long-term investment in maintaining and upgrading this sustainable energy infrastructure.
4. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships…
   • The article details a partnership between two private entities, Consumers Energy and Confluence Hydro. This partnership is subject to approval by public regulatory commissions (MPSC and FERC). Additionally, the planned “Community meetings” demonstrate engagement with civil society to update people on the process.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• For Target 7.2: The article mentions the production of “energy, capacity and renewable energy credits” from the 13 dams. The quantity of these credits and the total energy produced would serve as direct indicators of the contribution to the renewable energy share.
• For Target 8.5: An implied indicator is the number or percentage of current employees who are retained by Confluence Hydro. The article states that offers are being extended, so the acceptance rate of these offers would measure progress towards this target.
• For Target 9.1: The number of dams (13) that continue to operate safely is a primary indicator. The successful federal relicensing of these facilities in the future would be another key indicator of investment in sustainable infrastructure.
• For Target 17.17: The successful execution of the purchase agreement between the two companies, pending regulatory approval, is an indicator of a public-private partnership. The number of community meetings held (six are listed) is a quantifiable indicator of civil society engagement.

4. Table of SDGs, Targets, and Indicators

Source: wwmt.com