In an unusual action — or inaction — the Michigan Public Service Commission did not issue an anticipated final decision this week on whether to allow or block Consumers Energy's proposed sale of its hydroelectric dams.
That’s after administrative law judge James Varchetti ruled in June that Consumers’ sale of its aging dams to a private equity firm is not in the public interest.
The commission’s inaction leaves the case in temporary limbo.
After the administrative law judge’s decision, Consumers Energy filed proposed modifications to the sale terms. Intervenors filed objections to those modifications, saying arguments in the case could not be renewed in that way.
Then, on Thursday — the day expected for the commission’s final order — Consumers Energy announced it was “voluntarily extending the timetable for a decision on the sale of our 13 dams for another 60 days."
"This provides time for Consumers Energy and Confluence Hydro [the proposed purchaser] to work with parties in the regulatory case to address concerns some have raised," the utility said.
Howard Learner, an attorney with the Environmental Law and Policy Center, represents a group of opponents of the sale.
He said they'll attend the negotiations, even though he believes the commission doing the wrong thing.
“There's a principle of administrative law of finality,” Learner said. “The commission should exercise its legal responsibilities to decide this case. We're going into the negotiations in good faith, but if the negotiations aren't going anywhere, it's the commission's responsibility to issue a final decision.”
In a statement, Consumers Energy said it is now focused on working with parties in the regulatory case to address concerns and reach a “collaborative solution.”
“There’s widespread support for the sale of our dams to Confluence Hydro statewide and particularly in the communities that depend on them,” the statement continued. “We’re hopeful we will now make progress toward an outcome that keeps the dams in place for another 30 years.”
The Michigan Public Service Commission declined comment on the controversy.
Editor's note: Consumers Energy is among Michigan Public's corporate sponsors.
