Consumers Energy seeks approval to sell 13 hydroelectric dams – WLNS 6 News

Report on the Proposed Sale of Hydroelectric Dams by Consumers Energy

Executive Summary

Consumers Energy has initiated the regulatory process for the sale of 13 hydroelectric dams to Confluence Hydro, an affiliate of Hull Street Energy. This transaction is positioned to advance several United Nations Sustainable Development Goals (SDGs) by ensuring the long-term viability of clean energy infrastructure, promoting economic stability, and fostering community benefits. The sale requires approval from both state and federal regulatory bodies.

Transaction Overview and Regulatory Process

An agreement was reached in September for the transfer of ownership and operation of 13 hydroelectric facilities. The proposed sale is a strategic initiative aimed at securing the future of these assets while contributing to a sustainable energy landscape.

Parties Involved

• Seller: Consumers Energy
• Buyer: Confluence Hydro, an affiliate of Hull Street Energy, a firm specializing in the ownership and operation of power generation facilities, including 47 hydroelectric plants.

Regulatory Approval

Formal requests for approval have been submitted to the following regulatory commissions, marking the initial step in the divestiture process:

1. Michigan Public Service Commission (MPSC)
2. Federal Energy Regulatory Commission (FERC)

Alignment with Sustainable Development Goals (SDGs)

The proposed sale and continued operation of the dams under new ownership directly support key SDG targets.

SDG 7: Affordable and Clean Energy

The transaction is fundamentally aligned with ensuring access to affordable, reliable, sustainable, and modern energy for all.

• The agreement guarantees the continued operation of the dams, which serve as a vital source of renewable, clean energy.
• Under a 30-year contract, Confluence Hydro will sell energy capacity and renewable energy credits back to Consumers Energy, supporting Michigan’s clean energy targets.
• The sale is projected to reduce long-term costs for energy customers, addressing the affordability component of SDG 7.

SDG 8: Decent Work and Economic Growth

The agreement includes provisions that promote sustained, inclusive, and sustainable economic growth and decent work.

• All current hydro operations employees will be offered employment with Confluence Hydro, ensuring job security and a seamless transition of skilled labor.
• The continued operation of the dams is cited as a source of ongoing economic benefits for the surrounding communities.

SDG 9: Industry, Innovation, and Infrastructure

This initiative represents an investment in resilient and sustainable infrastructure.

• The sale transfers stewardship of critical energy infrastructure to a specialized operator, Hull Street Energy, ensuring its continued safe and efficient operation.
• Confluence Hydro is actively seeking to renew the dams’ federal operating licenses, which are set to expire beginning in 2034, signaling a long-term commitment to maintaining this vital infrastructure.

SDG 11: Sustainable Cities and Communities

The plan emphasizes the role of the dams in supporting local communities.

• The continued operation ensures that the dams will provide significant recreational benefits for nearby communities, contributing to the well-being and quality of life of residents.

SDG 17: Partnerships for the Goals

The transaction exemplifies a multi-stakeholder partnership to achieve sustainable development.

• The agreement between Consumers Energy and Confluence Hydro, contingent on approval from state (MPSC) and federal (FERC) agencies, demonstrates a collaborative public-private approach to advancing sustainable energy policy.

Stakeholder Engagement and Future Outlook

To ensure transparency and community involvement, Consumers Energy and Confluence Hydro will conduct six community meetings between November 19 and mid-December. These sessions will provide updates on the sale and its implications, reinforcing the commitment to community partnership throughout the transition. Further information regarding the sale has been made available to the public online.

1. SDGs Addressed in the Article

• SDG 7: Affordable and Clean Energy

  The article focuses on the sale of 13 hydroelectric dams, which are a source of clean, renewable energy. The agreement ensures that Confluence Hydro will sell “energy capacity and renewable energy credits back to Consumers Energy,” directly supporting the continuation of clean energy generation. Furthermore, a stated goal of the sale is to “reduce long-term costs for customers,” which aligns with the “affordable” aspect of this goal.

• SDG 8: Decent Work and Economic Growth

  The article addresses job security by stating that “Current hydro operations employees have been notified of the sale and are being offered jobs with Confluence Hydro.” This action aims to maintain stable employment during the transition. The continued operation of the dams is also said to provide “economic and recreational benefits for nearby communities,” contributing to local economic stability.

• SDG 9: Industry, Innovation, and Infrastructure

  This goal is relevant as the article deals with critical energy infrastructure—the hydroelectric dams. The sale is intended to ensure that the dams will “continue to operate safely,” highlighting the importance of maintaining resilient and reliable infrastructure. The investment by Hull Street Energy, a firm specializing in power generation, implies a commitment to the long-term operational integrity of these facilities.

• SDG 17: Partnerships for the Goals

  The entire arrangement described is a multi-stakeholder partnership. It involves a public-private partnership between Consumers Energy and Confluence Hydro (an affiliate of Hull Street Energy). It also involves public regulatory bodies, namely the Michigan Public Service Commission (MPSC) and the Federal Energy Regulatory Commission (FERC), whose approval is required. The plan to host “six community meetings” also incorporates civil society partnership.

2. Specific Targets Identified

1. Target 7.2: Increase substantially the share of renewable energy in the global energy mix.

   The sale ensures the continued operation of 13 hydroelectric dams, which contribute to the renewable energy supply. The agreement for Confluence Hydro to sell “renewable energy credits back to Consumers Energy” directly supports this target by keeping renewable energy capacity active and accounted for in the energy mix.

2. Target 8.5: Achieve full and productive employment and decent work for all.

   The article directly connects to this target by mentioning the proactive measure to secure employment for the existing workforce. The statement that employees are “being offered jobs with Confluence Hydro” is a clear effort to prevent job losses and ensure a smooth transition, thereby supporting decent work and stable employment.

3. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure.

   The focus on ensuring the dams “operate safely” and the renewal of their “federal operating licenses” are directly related to maintaining reliable and resilient energy infrastructure. The transfer of ownership to a specialized firm is positioned as a way to guarantee the long-term viability and safety of these assets.

4. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships.

   The article details a partnership between a utility company (Consumers Energy) and a private investment firm (Hull Street Energy). This collaboration requires approval from public regulatory commissions (MPSC and FERC) and includes engagement with local communities through meetings, embodying the multi-stakeholder approach promoted by this target.

3. Indicators Mentioned or Implied

• Implied Indicator for Target 7.2:

  The article implies progress can be measured by the amount of renewable energy capacity (in MW) maintained in operation through the sale and the volume of renewable energy credits sold back to Consumers Energy. These serve as direct measures of the contribution to the renewable energy share.

• Implied Indicator for Target 8.5:

  An implied indicator is the employee retention rate following the acquisition. The success of the commitment to offer jobs can be measured by the number or percentage of employees who accept the offer and continue their employment with Confluence Hydro.

• Implied Indicator for Target 9.1:

  Progress towards this target can be measured by the successful renewal of the dams’ federal operating licenses, which are set to expire. This renewal would officially certify the dams as safe and reliable infrastructure. Additionally, investment in maintenance and safety upgrades would be another key indicator.

• Implied Indicator for Target 17.17:

  A direct indicator is the successful regulatory approval of the sale by both the MPSC and FERC. Another is the number of community engagement events held, which the article specifies as “six community meetings.”

4. Summary Table of SDGs, Targets, and Indicators

Source: wlns.com