Michigan regulators have given Consumers Energy until December to negotiate a settlement over the proposed sale of 13 hydroelectric dams. For Newaygo County, the stakes include tourism, waterfront property values, small businesses and the future of two major recreational reservoirs.

NEWAYGO COUNTY — The future of Hardy and Croton dams, two major economic and recreational assets along the Muskegon River, remains uncertain after the Michigan Public Service Commission on November 5 granted Consumers Energy another extension to negotiate the controversial sale of its hydroelectric dams.

The decision gives Consumers Energy and other parties additional time to resolve disagreements over a proposed sale to Confluence Hydro, a company backed by Maryland-based private equity firm Hull Street Energy.

The MPSC’s decision in Case U-21985 establishes a December 9 deadline for filing a settlement agreement. If no settlement is filed, regulators plan to issue a final decision December 17.

The Commission warned that this would be the final extension granted solely at Consumers Energy’s request. Another extension would require a joint request from a majority of the parties involved.

What’s At Stake For Newaygo County?

Hardy and Croton dams create reservoirs that support a substantial recreational economy in western Michigan.

Hardy Pond attracts campers, boaters, anglers and mountain bikers, while Croton Pond supports waterfront homes, fishing, boating and seasonal tourism.

Those activities generate business for campgrounds, restaurants, marinas, retailers and other local establishments.

The economic concerns were highlighted in an October 27 news conference featuring residents and local officials who support preserving the reservoirs.

James Ward, founder of the Hardy Pond Preservation Alliance, told the Detroit Free Press that Hardy Pond supports approximately 2,000 campsites at seven campgrounds, more than 450 docks and recreational activity associated with the Dragon Trail mountain biking system.

Ward also cited 100,000 mountain bikers using the trail, a figure MITechNews has not independently verified.

Supporters fear that removing the dams and draining their reservoirs would damage tourism, property values and local businesses.

But rejection of the sale would not automatically mean the dams would be removed. Decommissioning would require additional regulatory reviews and decisions.

Consumers Wants To Sell 13 Dams

Consumers Energy proposes selling 13 hydroelectric dams along five Michigan rivers to Confluence Hydro.

The facilities have a combined generating capacity of approximately 132 megawatts.

Under the proposed arrangement, Confluence would operate the dams and sell their electricity back to Consumers Energy under a 30-year power purchase agreement.

According to the MPSC case filings, the agreement involves above-market electricity prices intended to help finance future maintenance and improvements.

That raises questions about the financial consequences for Consumers Energy customers, including whether the proposed transaction would ultimately cost ratepayers more than other options.

Consumers Energy maintains that transferring ownership would provide a more economical way to preserve the hydroelectric facilities than continuing to operate them itself.

Dam Safety Remains A Major Issue

The proposed sale has encountered opposition from state officials and environmental organizations concerned about the long-term financial resources available to maintain the aging structures.

Hardy Dam is particularly important because of its spillway capacity and the potential consequences of major flooding.

As previously reported by Bridge Michigan, Consumers Energy sought to delay a major spillway improvement project while pursuing the sale.

Consumers has implemented seasonal reservoir drawdowns and other measures intended to reduce flood risks while longer-term improvements remain unresolved.

The company and Confluence have proposed a $270 million hydro safety fund intended to provide financial protection against unforeseen safety problems.

Critics have questioned whether the proposed financial protections are sufficient.

For Newaygo County, the debate involves two potentially competing concerns: preserving the reservoirs that support the local economy and ensuring the dams remain safe and financially sustainable for decades.

December Decision Could Determine Next Steps

Consumers Energy filed its latest request for additional time on November 3, saying negotiations could produce a settlement addressing concerns raised by participants in the case.

The MPSC agreed to allow those discussions to continue but established a firm timetable.

Key dates:

  • December 9, 2026, at 5 p.m.: Deadline to file a settlement agreement.
  • December 17, 2026: Expected final MPSC order if no settlement is filed, unless a majority of parties jointly request another extension.

The Commission has not approved the sale.

For residents and businesses around Hardy and Croton ponds, the approaching decision could shape the future of two reservoirs that have been part of Newaygo County’s recreational and economic landscape for generations.

MITechNews will continue investigating the proposed dam sale, including its potential effects on tourism, waterfront property values, local tax revenues, dam safety and electricity customers. Upcoming reports will include interviews with local officials, business owners and other stakeholders.