#USA #Consumers Energy #Bethesda, Maryland #Hull Street Energy #Hydro Power

Hull Street Energy Expands Hydropower Portfolio

In a significant move towards enhancing clean energy production, Hull Street Energy, LLC (HSE), an investment firm focused on the energy transition, recently announced a major acquisition that will boost its hydro portfolio. The firm has signed an agreement to purchase Consumers Energy's hydropower assets, which include 13 dams located throughout Michigan, yielding a combined installed capacity of 132 megawatts.

HSE has a commendable track record, having successfully acquired and managed 47 hydroelectric facilities across North America over the past decade. With this new acquisition, Hull Street Energy intends to leverage its rich experience and robust capital resources to update and enhance these facilities, ensuring they continue to provide reliable and clean energy to Michigan's residents. The firm also aims to promote economic development and recreational opportunities in the communities surrounding these projects.

As part of this acquisition, HSE has formed a new subsidiary named Confluence Hydro, which will oversee the ownership and management of these assets alongside any future hydroelectric acquisitions. Confluence Hydro plans to retain existing Consumers Energy hydro employees, offering them equivalent roles to minimize disruption and maintain operational continuity while prioritizing safety standards.

Ed Quinn, the Chief Executive Officer of Confluence Hydro, emphasized the firm's commitment to safety and operational excellence, stating, "Safety has always been foundational to everything we do. We have decades of experience and are dedicated to modernizing these essential resources to maximize our contribution to the energy grid." He expressed admiration for the Consumers Energy team's established culture of safety, highlighting the collaborative potential between both teams to create a leading hydropower company.

The agreement establishes a 30-year contract between Confluence Hydro and Consumers Energy to supply power generated by the newly acquired dams. This strategic relationship is designed to optimize performance while meeting both companies' goals for community service and sustainable energy development. Furthermore, Confluence Hydro plans to initiate the renewal process for federal operating licenses for the dams, which are projected to expire starting in 2034, ensuring that hydroelectric power delivery remains uninterrupted for local communities.

Sri Maddipati, Consumers Energy's president of electric supply, commented on the sale's strategic advantages, asserting that it would lower customer costs while providing continued support for the communities relying on these facilities. "After engaging with community members over the past three years, we believe this sale represents the best path forward for our customers and the local economy," he said.

Moving forward, this transaction requires approval from both state and federal regulatory bodies, and is expected to finalize within a timeframe of 12 to 18 months. Confluence Hydro is dedicated to holding discussions with impacted stakeholders, including community members and employees, to share their vision and listen to feedback in the coming months, underscoring their commitment to maintaining community relations throughout the transition.

As a private equity firm based in Bethesda, Maryland, Hull Street Energy specializes in investing in the power sector as it evolves towards carbon neutrality. This acquisition represents not just a strategic investment for HSE, but a critical step in advancing sustainable energy solutions in Michigan and beyond. With forward-thinking management and a clear commitment to community well-being, Hull Street Energy is poised to make a lasting impact in the renewable energy landscape.

For more information about Hull Street Energy and its initiatives, visit www.hullstreetenergy.com.