LANSING, Mich. — State regulators would need to consider the ability and intent of a hydroelectric dam buyer to protect the public under Sen. Jon Bumstead’s legislation approved on Thursday by the Senate Energy and Environment Committee.

“Michigan is home to about 100 hydroelectric dams, many of which are aging and are routinely in need of repairs and updates. Taxpayers deserve assurance that any new owner of one of these structures in our state has both the financial means and intent to operate it in a safe and efficient manner,” said Bumstead, R-Norton Shores. “This reform prioritizes the safety and well-being of Michigan families and their property. While the regulation of hydroelectric facilities is under the purview of the federal government, the state does play an important role in approving the sale and transfer of these facilities.

“With the Midland-area dam failures still fresh in our minds, this legislation will ensure that critical insights into the financial ability of a new owner to operate and properly maintain a hydroelectric dam are part of the conversation when this infrastructure changes hands.”

Hydroelectric dams are regulated by the federal government. However, the Michigan Public Service Commission (MPSC) must approve the sale or transfer of assets owned by a regulated utility.

Senate Bill 627 would require the MPSC to consider certain financial criteria when reviewing the sale, acquisition or transfer of hydroelectric facilities.

Under the bill, the MPSC would have to evaluate if the acquiring entity demonstrates the financial ability and intent to:

• Provide and conduct sufficient maintenance to maintain safety and operation.
• Address any damages resulting from complete structural failure.
• Decommission or remove the facility as necessary.

SB 627 now heads to the full Senate for consideration.

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