Who wants to buy 13 hydroelectric dams? Well, that's exactly what Consumers Energy is trying to figure out.
The company plans to issue requests for proposals (RFPs) Feb. 15 for 13 dams along the Au Sable, Manistee, Muskegon, Grand and Kalamazoo rivers.
Norm Kapala, Consumers' vice president of generation operations, said no final decision has been made yet as to the future of the dams, nor have the possibilities been ranked.
Selling them is just one option that would allow communities to retain their reservoirs, Kapala said.
"We want to see what kind of proposals make sense, on an economic basis, that someone would be interested in purchasing these, whether it's all 13 river-hydros, or if there are one or two with a different value," Kapala said.
The dams, which are expensive to maintain, only contribute around 1% to Consumers' energy profile.
The company hasn't set a price tag on the dams, and Kapala said they're really "worth what someone's willing to pay."
"[The RFP process] is for us to gain insight on how different entities are going [to] interpret the value of the 13 river-hydros and what they would need in order to make this transaction, if we choose to put them up for sale," Kapala said.
The bidding process is slated to conclude by the end of the year. Afterwards, Kapala said the company will decide if selling the dams is the way forward, or if it's "proven not to be a viable option."
Consumers is still evaluating other options like removing the dams or renewing their operating licenses that are set to expire in next decade. Kapala said it may take 2-6 years before the company makes a decision.
"We've heard our communities loud and clear that they want their impoundments, the ponds to stay," Kapala said. "That is our goal: to find a solution that keeps rates affordable for our customers and if possible, we keep the reservoirs for the communities."
The deadline to submit a bid is March 15.
Editor's note: In the interest of transparency, we note that Consumers Energy is a financial supporter of WCMU.
