With Dams Pending Sale, What Comes Next For Lake Allegan?

The fate of Lake Allegan, along with several other recreational lakes across Michigan, has been in limbo for three years.

With the latest update from Consumers Energy, residents are finally getting a glimpse at what the future of "lake life" might look like.

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I have been following this dam saga as it has unfolded, not only as an Allegan native but as someone who frequents Lake Allegan every summer. My family owns property including a boat slip on Lake Allegan so to me summertime means spending a day on the pontoon enjoying the sun, snacks, cold beverages, and maybe even a couple rounds of Euchre on the boat.

Fun Fact: Kalamazoo native and Nashville singer-songwriter Ryan Hurd proposed to ex-wife Maren Morris on Lake Allegan and also filmed the music video for Love in a Bar there with her.

After Consumers Energy announced plans to retire the dams in Allegan and 12 other locations along the Au Sable, Kalamazoo, Muskegon, Grand, and Manistee Rivers in Michigan, residents of affected lakeside communities grew fearful for the future of their recreational lakes and the lifestyles built around them-- including my family!

So many families have spent generations making memories at the lake and losing it would be detrimental to not only property value but also the revenue created from recreation, as well as Allegan residents' quality of life.

Now, it sounds like it finally have our answer:

On September 9, 2025, FOX 2 Detroit reported that Consumers Energy will sell 13 hydroelectric dams (including the one at Lake Allegan) to Confluence Hydro, a Maryland-based company that will operate and maintain the dams for the next 30 years once the sale is finalized:

 In exchange for purchasing the dams and operating them for the next 30 years, Confluence will sell the power back to Consumers Energy...The regulatory process is expected to take between 12 and 18 months. Until its complete, Consumers Energy will continue operating the dams.

On paper, lakeside residents across Michigan might consider this a win. So why doesn’t it feel like one?

Are we just slapping another band-aid on aging infrastructure or will Confluence actually invest in the dams? In this economy, that feels unlikely. And frankly, there’s something a little icky about adding yet another middleman between energy production and the people who rely on it. Especially considering a new report claiming Michigan suffers the longest power outages in the nation.