Wisconsin — In a decades-long effort to restore the Pine River in Florence County, a new settlement agreement has been reached between the Michigan Department of Natural Resources and WE Energies. WE Energies will permanently cease electric generating activities at the Pine Project as of July 1, 2038. River Alliance of Wisconsin has served as an ex officio party to the agreement in order to advocate for the health of rivers in the Menominee River Basin.
“While we are grateful to the Michigan DNR and Michigan Attorney General for litigating this case, litigation should not have been necessary because this dam should have been removed in 2025 as stipulated in the 1997 Wilderness Shores Settlement Agreement,” noted River Alliance Executive Director Allison Werner. “Hydroelectric dams may generate power, but they also make profit for private electric companies through the use of the rivers that belong to all of us. Because of this settlement, the Pine River may be restored to its free-flowing and wild and scenic condition.”
Agreement “a model for the nation”
In a press release in 2000, River Alliance provided this explanation of the Pine Dam Project: “This dam is slated for removal through a landmark federal hydropower relicensing agreement in the Menominee River Basin. The agreement has been called “a model for the nation” by Interior Secretary Bruce Babbitt. Wisconsin Electric has agreed to remove the 43-foot high Pine Dam when its license expires in 25 years. Removal of this dam will restore this state-designated wild river to free-flowing conditions, including uncovering two eight-foot and one 12-foot waterfall. In addition, a half-mile of rapids and high-quality trout habitat will be restored. The River Alliance was the lead citizen group in Wisconsin involved in this unprecedented relicensing process.”
Next steps for the settlement agreement
2038 feels like a long time from now, but in just four years (2028) WE Energies will need to initiate the license surrender process consistent with the Wilderness Shores Settlement Agreement. This process includes a detailed decommissioning plan with a surrender application to the Federal Energy Regulatory Commission (FERC) for the Pine Dam, located in Florence, Wisconsin, by 2032 and to cease hydropower generation and remove the dam no sooner than July 1, 2038. This settlement enforces the intent of the Wilderness Shores Settlement Agreement for removal of Pine Dam, albeit at a later date.
Breakwater Falls: wild & scenic rivers may benefit tourism
River Alliance will continue to work with all of the parties involved to ensure the new settlement is followed. This extended timeframe gives Florence County time to plan for the changes and opportunities dam removal can bring to the local economy. For many years, local advocates have proposed showcasing the Pine River and its waterfalls as a tourist destination. The section between the rapids above LaSalle
Falls to the end of the gorge rapids below the triple drops of Breakwater Falls is the single most dramatic stretch of river topography in the entire Midwest. It is an incredible jewel, a unique, spectacular natural wonder featuring six waterfalls, two rock-walled gorges, and five sets of major rapids. We encourage the community to see the free-flowing river as an aesthetic and economic asset and spend this time strategically planning for the future.
Background on the Wilderness Shores Settlement Agreement and Timeline of Events
– The Wilderness Shores Settlement Agreement (WSSA) was signed on February 10, 1997, after negotiations began in July 1994. The parties to the settlement included WE Energies, the U.S. Fish and Wildlife Service, National Park Service, Michigan DNR, Wisconsin DNR, River Alliance of Wisconsin, and the Michigan Hydro Relicensing Coalition (MHRC).
– At the time of the WSSA, WE Energies operated thirteen hydroelectric projects in the Menominee River Basin, located in northeastern Wisconsin and the Upper Peninsula of Michigan; the WSSA concerned eight of these projects.
– Under Section 8.3 of the WSSA, WE agreed to remove the Pine Dam in 2025 as part of the overall mitigation for unavoidable impacts from future operation of the eight hydropower projects.
– A consultation process was supposed to begin in 2020 with the resources agencies that are party to the WSSA (U.S. Fish and Wildlife Service, National Park Service, Michigan DNR, and Wisconsin DNR).
– River Alliance, the MHRC, and Florence County are ex officio members of the Settlement Implementation Team (WSIT). The implementation team’s responsibility is to “review consultations” on all plans, studies, reports, and submissions relating to the work that is required under the terms of the settlement agreement.
– In 2017, WE Energies solicited an opinion from Wisconsin DNR about operating the dam beyond 2025. This interaction was three years prior to the WSSA-stipulated consultation process and did not properly include all of the other resource agencies and ex officio members to the WSSA.
– Negotiations, including a dispute resolution process, took place for several years with no agreement reached between the parties.
– In 2019, WE Energies requested a license extension from FERC. In a split opinion, a panel of three commissioners granted an extension until 2040. The FERC opinion stated, “…the parties to the settlement retain the ability to seek to enforce the terms of the agreement in court…”
– Michigan DNR filed a lawsuit against WE Energies in 2021 for breaching the WSSA. WE Energies tried to get the case dismissed and moved to a different county. Both the trial court and subsequent court of appeals denied both of these motions.
– On September 20, 2024, Michigan DNR and WE Energies settled the case, with WE Energies agreeing to permanently cease electric generating activities at the Pine Project as of July 1, 2038.
Given this history, River Alliance, MHRC, and the resource agencies must remain vigilant to ensure that the terms of this 2024 settlement agreement are fully implemented. This timeline and release can also be found at wisconsinrivers.org/pine-dam-settlement-2024.
