The Muskegon feeds into the Lake Michigan which is thus upstream of Niagara Falls and a lot of hydro power generation. Granted we are not talking about a huge amount of energy, but it is one of many costs that are not being compensated.
Compare the amount of water they're taking out per day (576,000 gallons) to amount of water that goes over Niagara Falls in a day (about 54,345,600,000 gallons).
In the short term perhaps, but it's not going to take that long to hit 10,000$ worth of energy and again that's just one of many uses of this water which as far as I can tell is uncompensated.