ALLEGAN, Mich. — Consumers Energy started a series of town halls Tuesday to discuss its hydro fleet.
At the meeting, a new study was released. It reveals that it's going take $1.4 billion to relicense all 13 of Consumers' dams.
The Calkins Bridge Dam is one of the many in West Michigan with an uncertain future.
"I boat. We swim. And it's, it's a great place. It's a great place to call home," President of Lake Allegan Association Coco Soodek said.
Soodek lives on Allegan Lake and has for more than a decade. She's among more than a hundred people hearing what Consumers Energy's plan is for the future of the Calkins Bridge Dam and the lake.
"We're very happy to hear that one of their [Consumers Energy's] primary objectives is now to whatever they're going to do. They're going to save the lake. They're going to find a solution that will ensure that the lake stays around for the long term," Soodek added.
A year ago, the utility company announced four potential plans for its dams:
- Tear them down
- Relicense them
- Sell them
- Put up an alternative structure at the sites
Now, a year later, the energy provider says it will issue a request for proposal to sell all 13 locations. The company has explained that the fleet of dams operates at a $152 million loss.
"At the end of the day, it is our responsibility to remove an asset if we put it in. So, if we can't find partnership from external sources or from the community down the road to maintain the future existence of an impoundment, it would be our responsibility to remove the asset," Consumers Energy Executive Director of Community Engagement Josh Burgett said.
At Tuesday's meeting at Allegan High School, Public Sector Consultants— a third-party research firm— announced feedback it got from the Allegan community.
The study shows out of all the town hall meetings last year, the Allegan community showed the most interest in keeping the lake.
"As Consumers made that announcement last year, it became an absolute, was an existential crisis, and I can't tell you how many hundreds of people rose up and said, 'we are going to save this lake,'" Soodek said.
The study shows more than passion. It's also getting to the numbers. The cost to decommission the entire fleet is nearly $600 million.
According to the study, when it comes to rate increases, it would cost residential customers around $43 more per year should Consumers relicense its hydro fleet.
Consumers Energy River Hydro Strategy 2023 Community Meetings - Calkins Bridge Dam by WXMI on Scribd
Hydropower is nine times more expensive than other forms of power, and makes up just more than one percent of the total energy to Consumers customers.
"The primary reason— that it's more expensive to operate hydro— was because of the capital costs that go into making these, these facilities safe," Burgett said. "If we continue operations, you're going to pay more for this generating asset. For every megawatt we get of hydro, we can get it cheaper with wind or solar."
At this point, the request for the sale proposal is for all 13 facilities, but Consumers says it could be open to individual sales. Consumers Energy says it's still committed to working with communities.
"We absolutely are trying to keep the lake here. That is what we want to try to accomplish. It may not include us operating the hydro," Burgett said.
"We are very confident that we're going to keep Lake Allegan forever," Soodek said.
Consumers Energy plans to host an online town hall on September 12. In-person town halls are also scheduled for September 18 for the Croton and Hardy dams.
