LANSING, Mich. (Michigan News Source) — Consumers Energy’s plan to hand off 13 aging hydroelectric dams for $1 each comes with a pricey catch: the utility now says it will pay nearly twice its normal rate to buy the power back.

New filings with state and federal regulators reveal Consumers struck a 30-year agreement to purchase electricity from Maryland-based Confluence Hydro at $160 per megawatt-hour, with automatic increases each year. That’s a steep premium for hydro facilities that currently supply just 1% of the company’s power and already operate at a loss.

MORE NEWS: Two Dearborn Men Charged in Alleged ‘Pumpkin Day’ Terrorism Plot

Consumers argues the math still works.

“It allows Consumers Energy to transfer substantial future operational and environmental liabilities and risk to Confluence,” Sri Maddipati, the company’s head of electric supply, said.

Fisheries groups and some conservation advocates say the arrangement simply shifts risk, not cost.

“I don’t understand how it can be better for customers if we just transfer liabilities to a different company, but we’re still paying too much,” Bryan Burroughs, executive director of Trout Unlimited, said. Burroughs favors removing the dams to restore natural rivers, according to Bridge Michigan.

Others fear a repeat of Michigan’s 2020 Midland dam failures, when a private owner’s neglect triggered catastrophic flooding—and taxpayers picked up the tab.

In fact, that fear has bipartisan lawmakers moving fast. On Oct. 31, a new bill was introduced in Lansing that would require state regulators to vet dam buyers’ financial stability before deals like this move ahead.

MORE NEWS: Michigan Congressman’s Office Gets ‘Chalked’ by Climate Crusaders

“We can’t just let them sell it for a dollar, give it away, whatever, without the protections that are needed,” Sen. Rosemary Bayer (D-Keego Harbor) said.

The sale still needs the blessing of both the Michigan Public Service Commission and the Federal Energy Regulatory Commission. If approved, Confluence will take over operations, keep reservoirs intact, and offer jobs to the roughly 55 Consumers employees working in hydro today.

Consumers expects final approval in late 2026 or early 2027.

For now, the company insists the $1 sale—and the pricey buy-back—is the cheapest way to keep the lights on and rivers in check.