Consumers Energy Company · NYSE:CMS/PB
Consumers Energy — Corporate Update (August 2022)
29 slides from Consumers Energy's corporate update, Aug 31, 2022
Slide 1: A Community Conversation About Calkins Bridge (Allegan) Dam
A Community Conversation About Calkins Bridge (Allegan) Dam Elizabeth Riggs and Maggie Pallone, Public Sector Consultants Marianne Walter and Derek Nofz, Consumers Energy August 31, 2022 PUBLICSECTORCONSULTANTS.COM PUBLICSECTORCONSULTANTS.COM
Slide 2: Conversation Objectives
Conversation Objectives • Share information about the development of Consumers Energy’s long-term hydro strategy • Gain community-wide understanding about the process and future scenarios • Gather input on community factors that should be accounted for in the strategy PUBLICSECTORCONSULTANTS.COM 2
Slide 3: Overview of Consumers Energy River Hydro Strategy
Overview of Consumers Energy River Hydro Strategy August 2022 PUBLICSECTORCONSULTANTS.COM
Slide 4: CE River Hydro History
CE River Hydro History Owned more than 90 river hydro assets Typically, small multiple-use assets that supported a local community Generation advances and exhaustion of prudent locations stopped expansion 70+ assets sold or retired between 1940 and 1970 due to asset value (customer value vs. cost)
Slide 5: River Hydro Fleet Details
River Hydro Fleet Details Average Plant FERC License Dam Capacity (MWs) MW/day Commissioned Expiration Date Rogers 6.75 2.66 1906 6/30/2034 Hardy 31.5 11.87 1931 6/30/2034 Croton 8.85 3.79 1907 6/30/2034 Hodenpyl 17 5.57 1925 6/30/2034 Tippy 20.1 7.13 1918 6/30/2034 Calkins Bridge 2.55 1.52 1935 3/3
Slide 6: Regulatory Agencies
Regulatory Agencies • Michigan Public Service Commission • Federal Energy Regulatory Commission (FERC) • Division of Hydropower Administrative and Compliance (DHAC) • Michigan Department of Environment, Great Lakes, and Energy (EGLE) • Michigan Department of Natural Resources (DNR) • U.S. Fish and W
Slide 7: Detailed Review
Detailed Review Safety Complying with regulations Cost of operation Environment Community Recreation 1
Slide 8: Safety
Safety Satisfactory Condition with FERC FERC Inspections Owner’s Dam Safety Program Public Safety 1
Slide 9: Complying with Regulations
Complying with Regulations Division of Hydropower Administration and Compliance FERC Licensing Process • Integrated Licensing Plan Dam Safety and Inspections • Updated Regulations in 2022 1
Slide 10: Cost of Operation (Fleet)
Cost of Operation (Fleet) Benefit of CE River Hydros: Total average value = $12.9M/year 250 200 Cost of River Hydros: Dollars (Millions) Capital Investment 150 Average $165M Operations and maintenance = $12.6M/year 100 • Funding for internal/external labor to 50 Operations & Maintenance Expense oper
Slide 11: Calkins Bridge Dam Cost
Calkins Bridge Dam Cost Actual Forecasted Actual Capital Forecasted O&M Costs O&M Costs Costs Capital Costs 2017-2021 2023-2027 2017-2021 2023-2027 Calkins Bridge $4.72M $5.34M $3.92M $4.59M Roof Replacement Project Forecast (2024-2025): $1.05M Unit 1 Wicket Gate Project Forecast (2023-2024): $2.05M
Slide 12: Environment
Environment River sediment Water quality A downstream barrier (invasive species) Known environmental superfund site River downstream of dam is key sturgeon spawning area 1
Slide 13: Community
Community Allegan Dam Road Bridge 1,659-acre Lake Allegan Desirable, large lake lots Here for feedback 1
Slide 14: Recreation
Recreation Approximately 6,000 annual recreational visitors Two boat launches Downstream fishing access Neighboring Allegan State Game Area recreational opportunities 1
Slide 15: Future Scenarios
Future Scenarios • Relicense the dam, meeting all the new regulatory requirements, and continue to generate power • Surrender the license and sell the dam to a third-party owner, who could maintain the dam structure and impoundment • Remove the dam and return the river to its natural state • Replace
Slide 16: Relicensing—Integrated Licensing Process
Relicensing—Integrated Licensing Process • Relicensing is handled through FERC • Examples of issues the applicant will and takes approximately five years need to study are: • The process involves the general public, - Water quality and other nongovernmental organizations, tribal, environmental issue
Slide 17: Surrendering the FERC License
Surrendering the FERC License • Consumers may choose to no longer generate power and not relicense the facility. This process would require them to file a request with FERC to surrender their license • Without power generation, Consumers could look to alternative options for the dam: - Transfer owne
Slide 18: Removal of a Dam
Removal of a Dam • The process for removing a dam is regulated by state and federal agencies. When considering a dam removal, the applicant and regulators consider: - Benefits of the dam and the impoundment (preventing the movement of aquatic invasives, sediment control, historical significance, tra
Slide 19: Transferring Ownership
Transferring Ownership • Example: Four Lakes Task Force—four dams located on the Tittabawassee River in Midland and Gladwin Counties • Ownership was transferred from a private party to the Four Lakes Task Force, which oversees the Special Assessment District (SAD) on behalf of the counties • Countie
Slide 20: Replacing the Dam
Replacing the Dam • When a full removal of the dam does not meet the needs of the community, regulators, and/or dam owners, dams sometimes can be replaced with an in-river structure. These options may include: - Modifications to the current dam - Replacing the dam with a different dam structure (e.g
Slide 21: Engagement Process and Plan Development Timeline
Engagement Process and Plan Development Timeline • August–October 2022: Pre-strategy development community engagement - Community meetings around each dam - Website launched - Survey of property owners located within 100 feet of Consumers’ property lines • 2023: Long-term hydro strategy is developed
Slide 22: Community Input
Community Input PUBLICSECTORCONSULTANTS.COM 26
Slide 23: Community Input
Community Input What is this community's relationship to the river, the dam, and its impoundment? PUBLICSECTORCONSULTANTS.COM 27
Slide 24: Community Input
Community Input How would that relationship change if the dam was retired and removed? PUBLICSECTORCONSULTANTS.COM 28
Slide 25: Community Input
Community Input Does the information presented this evening change your opinion on the dam and its future? PUBLICSECTORCONSULTANTS.COM 29
Slide 26: Community Input
Community Input What factors do you believe Consumers Energy should prioritize when determining the future of the dam? • Safety • Regulations compliance • Community • Operations costs • Environment • Recreation PUBLICSECTORCONSULTANTS.COM 30
Slide 27: Community Input
Community Input What would Consumers Energy need to do to make you feel their decision is sound? PUBLICSECTORCONSULTANTS.COM 31
Slide 28: For more information, please visit www.consumersenergy.com/hydrofuture
For more information, please visit www.consumersenergy.com/hydrofuture PUBLICSECTORCONSULTANTS.COM 32
Slide 29: Public Sector Consultants
UN PUBLIC SECTOR CONSULTANTS Consumers Ener