Hull Street Energy, an investment firm focused on energy infrastructure, has reached an agreement to acquire thirteen hydroelectric dams currently operated by Consumers Energy in the state of Michigan. These facilities, with a combined installed capacity of 132 megawatts, will be transferred to a newly formed subsidiary, Confluence Hydro, which will manage the assets over the long term.
A 30-year structured transaction
As part of the deal, Confluence Hydro commits to supplying electricity from the facilities to Consumers Energy customers over a 30-year period. This contractual arrangement is intended to ensure uninterrupted service for end users while enabling Consumers Energy to lower operating costs. The company also plans to apply for the renewal of the dams’ federal operating licences, some of which are set to expire beginning in 2034.
Staff integration and operational continuity
All personnel currently employed by Consumers Energy at these sites will be offered transfers to Confluence Hydro, with retention of position and equivalent conditions. This measure aims to ensure a smooth operational transition and maintain existing safety standards. Confluence Hydro Chief Executive Officer Ed Quinn reiterated that safety remains a core operational priority for the group.
Expanding a growing hydro portfolio
With this acquisition, Hull Street Energy is expanding its hydro portfolio across North America. The company has already acquired and operated 47 hydroelectric assets over the past decade. It plans to allocate significant capital to upgrade the newly acquired sites, while preserving their economic and recreational roles within local communities.
Regulatory approvals pending
Completion of the transaction remains subject to approvals by both state and federal regulators. The process is expected to take approximately 12 to 18 months. Meanwhile, Confluence Hydro plans to hold a series of meetings with local stakeholders to present its strategy and incorporate feedback from the affected communities.
