Core Insights - NorthStar Clean Energy has launched the Newport Solar project, a 180 MW initiative aimed at providing renewable electricity for General Motors' facilities in the MISO territory, highlighting a commitment to renewable energy solutions and a low carbon future [1][3] - The Newport Solar project is part of General Motors' strategy to reduce Scope 2 energy emissions globally, which includes sourcing renewable electricity and enhancing energy efficiency [3][4] Project Details - The Newport Solar facility is expected to generate approximately 410,000 megawatt-hours of renewable energy annually, equivalent to the electricity needs of over 30,000 Arkansas homes [4] - Under a 15-year renewable energy purchase agreement, the renewable energy credits from this facility will have an environmental impact comparable to planting nearly 5 million trees [4] Company Background - NorthStar Clean Energy operates over 1,500 megawatts of generating capacity across the U.S., with a development pipeline of 1 gigawatt of renewable energy [5] - The company plans to convert its coal-fired power plant into a 60 MW biomass-fueled facility capable of capturing 500,000 tons of CO2 annually, marking a significant step in bioenergy with carbon capture and storage (BECCS) projects in the U.S. [5]

Core Viewpoint - Therma Bright Inc. has received a positive notification from the U.S. Department of Health and Human Services' Centers for Medicare and Medicaid Services (CMS) regarding the pending permanent CPT® and HCPCS codes for its Venowave VW5 device, which is expected to enhance market opportunities for the company and its stakeholders [2][3][4]. Group 1: Company Update - The CMS is anticipated to provide permanent CPT® and HCPCS codes for the Venowave VW5 device in the coming days, which will cover ten health-related and CMS reimbursable indications [3][4]. - The ten indications include prevention and management of deep vein thrombosis (DVT), treatment of lymphedema, and enhancement of blood circulation, among others [4]. - The CDC estimates that over 900,000 U.S. citizens are affected by DVT and pulmonary embolism (PE) annually, indicating a significant market need for the Venowave device [4]. Group 2: Market Potential - The global market for deep vein thrombosis is projected to reach USD $1.26 billion by 2028 and USD $1.554 billion by 2032, highlighting substantial growth potential for Therma Bright's offerings [4]. - The anticipated CMS codes are expected to create a favorable environment for the company, its customers, and reseller partners, enhancing overall market presence [4]. Group 3: Leadership Statement - The CEO of Therma Bright expressed optimism regarding the upcoming confirmation from CMS and plans to announce the details of the permanent codes immediately upon receipt [5].

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $1.63 for the first half of 2024, an increase of $0.18 compared to the same period in 2023, primarily driven by constructive outcomes in electric and gas rate cases [87][90] - Full year guidance remains at $3.29 to $3.35 per share, with confidence towards the high end of the range [87] - The company anticipates a positive variance of $0.20 per share for the remaining half of the year based on normal weather conditions [94] Business Line Data and Key Metrics Changes - The company experienced a slight decline in commercial and industrial weather-adjusted volumes, with commercial down about 1% and industrial down about 2% compared to the previous year [28][29] - Despite the decline, residential sales were slightly up by 0.1%, indicating mixed performance across customer classes [30] Market Data and Key Metrics Changes - There is strong interest in manufacturing and data centers in Michigan, with a notable 230-megawatt data center project moving forward regardless of legislative changes [6][21] - The company is seeing economic growth in Michigan, which is expected to positively impact its renewable energy plan [12][58] Company Strategy and Development Direction - The company emphasizes a commitment to affordable bills for customers while making significant investments in infrastructure, with a focus on renewable energy and energy waste reduction programs [80][84] - The regulatory environment in Michigan is described as strong and supportive, with mechanisms in place for financial recovery and energy efficiency incentives [79][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on financial objectives despite challenges such as adverse weather conditions and storm impacts [90][96] - The company is optimistic about the economic development activity in Michigan, which is expected to drive higher demand and necessitate additional renewable energy resources [58][66] Other Important Information - The company plans to issue approximately $675 million in debt in the second half of the year, an increase from the previously estimated $500 million, to rebalance its capital structure [97] - The performance-based ratemaking framework is still under constructive dialogue, with implementation expected to be several rate cases away [54][56] Q&A Session Summary Question: Thoughts on opportunity to service data centers and legislation impact - Management noted strong interest in data centers in Michigan, with ongoing projects not contingent on legislation [21] Question: Demand trends and CMS positioning for upside - Management indicated that additional upside is expected from the energy law and financial compensation mechanisms, with filings planned for 2026 [10][11] Question: Update on electric rate case and settlement opportunities - Management expressed confidence in the electric rate case, highlighting the complexity and the number of interested parties involved [14][15] Question: Commentary on C&I weather-adjusted volumes and near-term outlook - Management acknowledged a pullback in C&I volumes but emphasized that overall conditions remain favorable when adjusted for energy waste reduction [28][30] Question: Update on performance-based ratemaking - Management confirmed ongoing constructive dialogue regarding performance-based ratemaking metrics, with implementation expected in the next couple of years [54][56] Question: Trends in electric demand versus 2021 IRP - Management stated that electric demand is trending higher than the 2021 IRP, driven by economic development activity [58]

Part I—Financial Information [Item 1. Financial Statements](index=15&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for CMS Energy Corporation and its subsidiary, Consumers Energy Company, for the quarterly period ended June 30, 2024 [CMS Energy Consolidated Financial Statements (Unaudited)](index=46&type=section&id=CMS%20Energy%20Consolidated%20Financial%20Statements%20%28Unaudited%29) Presents the consolidated financial performance and position of CMS Energy Corporation, with net income increasing to $480 million for the six months ended June 30, 2024 CMS Energy Consolidated Statement of Income Highlights (Six Months Ended June 30) | Indicator | 2024 (In Millions) | 2023 (In Millions) | Change (In Millions) | | :--- | :--- | :--- | :--- | | Operating Revenue | $3,783 | $3,839 | $(56) | | Operating Income | $695 | $558 | $137 | | Net Income Available to Common Stockholders | $480 | $397 | $83 | | Diluted Earnings Per Share | $1.61 | $1.36 | $0.25 | CMS Energy Consolidated Balance Sheet Highlights (As of) | Indicator | June 30, 2024 (In Millions) | December 31, 2023 (In Millions) | | :--- | :--- | :--- | | Total Assets | $34,355 | $33,517 | | Total Liabilities | $25,814 | $25,392 | | Total Equity | $8,541 | $8,125 | [Consumers Consolidated Financial Statements (Unaudited)](index=54&type=section&id=Consumers%20Consolidated%20Financial%20Statements%20%28Unaudited%29) Details the consolidated financial performance and position for Consumers Energy Company, with net income reaching $452 million for the six months ended June 30, 2024 Consumers Consolidated Statement of Income Highlights (Six Months Ended June 30) | Indicator | 2024 (In Millions) | 2023 (In Millions) | Change (In Millions) | | :--- | :--- | :--- | :--- | | Operating Revenue | $3,630 | $3,695 | $(65) | | Operating Income | $698 | $576 | $122 | | Net Income Available to Common Stockholder | $452 | $398 | $54 | Consumers Consolidated Balance Sheet Highlights (As of) | Indicator | June 30, 2024 (In Millions) | December 31, 2023 (In Millions) | | :--- | :--- | :--- | | Total Assets | $32,718 | $31,852 | | Total Liabilities | $21,825 | $21,052 | | Total Equity | $10,893 | $10,800 | [Notes to the Unaudited Consolidated Financial Statements](index=61&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies and specific events affecting financial statements, including regulatory matters and contingencies - In March 2024, the MPSC authorized an annual electric rate increase of **$92 million** for Consumers, based on a **9.9%** authorized return on equity, effective March 15, 2024[273](index=273&type=chunk) - Consumers estimates its liability for known CERCLA sites to be between **$3 million** and **$8 million**, with a recorded liability of **$3 million** as of June 30, 2024[277](index=277&type=chunk) - In April 2024, Consumers sold its unregulated Appliance Service Plan (ASP) business for **$124 million**, resulting in a **$110 million** gain. This gain will be shared with customers through rate offsets and bill credits as approved by the MPSC[410](index=410&type=chunk)[428](index=428&type=chunk) - In April 2024, Consumers sold renewable energy tax credits generated in 2023 for **$37 million** and entered an agreement in June 2024 to sell 2024 credits for **$51 million**[176](index=176&type=chunk)[578](index=578&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=14&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's perspective on financial condition and operations, covering strategy, segment results, liquidity, and future outlook [Executive Overview](index=14&type=section&id=Executive%20Overview) The company's strategy is guided by the 'Triple Bottom Line' of people, planet, and profit, with key initiatives like the Clean Energy Plan - The company's purpose is to achieve world-class performance delivering hometown service, measured by the 'triple bottom line' of **people, planet, and profit**[96](index=96&type=chunk) - Consumers' Clean Energy Plan aims to end coal use by **2025**, add nearly **8,000 MW** of solar by **2040**, and achieve **net-zero carbon emissions** from its electric business by **2040**[105](index=105&type=chunk)[109](index=109&type=chunk)[126](index=126&type=chunk) - The Reliability Roadmap outlines a five-year, **$7 billion** capital expenditure plan to improve the electric distribution system, an increase of **$3 billion** from the previous plan[86](index=86&type=chunk)[101](index=101&type=chunk) - The 2023 Michigan Energy Law mandates a renewable energy standard of **50% by 2030** and **60% by 2035**, and a clean energy standard of **100% by 2040**[104](index=104&type=chunk)[126](index=126&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) CMS Energy's net income increased to $480 million for the six months ended June 30, 2024, driven by rate increases and NorthStar Clean Energy earnings CMS Energy Net Income Change by Segment (Six Months Ended June 30, 2024 vs 2023) | Segment | 2024 Net Income (Millions) | 2023 Net Income (Millions) | Change (Millions) | | :--- | :--- | :--- | :--- | | Electric utility | $267 | $217 | $50 | | Gas utility | $184 | $177 | $7 | | NorthStar Clean Energy | $47 | $10 | $37 | | Corporate interest and other | $(18) | $(7) | $(11) | | **Total** | **$480** | **$397** | **$83** | - Key drivers for the six-month net income increase were electric rate increases (**+$103 million**), gas rate increases (**+$56 million**), and higher NorthStar Clean Energy earnings (**+$37 million**). These were partially offset by higher interest charges (**-$43 million**) and higher income tax expense (**-$30 million**)[122](index=122&type=chunk) [Cash Position, Investing, and Financing](index=28&type=section&id=Cash%20Position%2C%20Investing%2C%20and%20Financing) Net cash from operating activities was $1.66 billion for the first six months of 2024, with investing activities decreasing due to a prior year acquisition CMS Energy Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2024 (In Millions) | 2023 (In Millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,663 | $1,705 | | Net cash used in investing activities | $(1,246) | $(2,079) | | Net cash provided by financing activities | $124 | $598 | - The decrease in cash used for investing activities was mainly due to the absence of the **$810 million** purchase of the Covert Generating Station in 2023[152](index=152&type=chunk) [Capital Resources and Liquidity](index=31&type=section&id=Capital%20Resources%20and%20Liquidity) The company maintains sufficient liquidity through operating cash flows and capital markets access, with substantial available credit facilities - At June 30, 2024, available liquidity under revolving credit facilities was **$521 million** for CMS Energy, **$1.3 billion** for Consumers, and **$45 million** for NorthStar Clean Energy[178](index=178&type=chunk) Debt to Capital Covenant Compliance (as of June 30, 2024) | Entity | Covenant Limit | Actual Ratio | | :--- | :--- | :--- | | CMS Energy, parent only | < 0.70 to 1.0 | 0.57 to 1.0 | | NorthStar Clean Energy | < 0.50 to 1.0 | 0.13 to 1.0 | | Consumers | < 0.65 to 1.0 | 0.50 to 1.0 | [Outlook](index=32&type=section&id=Outlook) The company's outlook is shaped by its Clean Energy Plan, regulatory proceedings, and environmental regulations, including coal unit retirements and solar deployment - The Clean Energy Plan includes retiring the J.H. Campbell coal units (**1,407 MW**) in **2025** and adding nearly **8,000 MW** of solar generation by **2040**[185](index=185&type=chunk) - In May 2024, Consumers filed for a **$325 million** electric rate increase to recover costs for distribution system reliability and clean energy investments[157](index=157&type=chunk)[462](index=462&type=chunk) - In July 2024, the MPSC approved a settlement for a **$35 million** annual gas rate increase, effective October 1, 2024[139](index=139&type=chunk)[373](index=373&type=chunk) - Consumers is managing environmental compliance, including new EPA rules on Coal Combustion Residuals (CCRs) and greenhouse gas emissions, with expected capital expenditures of **$240 million** from **2024-2028** for environmental compliance[238](index=238&type=chunk)[464](index=464&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=86&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section confirms no material changes to the company's market risk exposures as previously disclosed in the 2023 Annual Report on Form 10-K - There have been **no material changes** to market risk as previously disclosed in the 2023 Form 10-K[503](index=503&type=chunk) [Item 4. Controls and Procedures](index=86&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2024, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of the end of the reporting period, the CEOs and CFOs of both CMS Energy and Consumers concluded that their respective disclosure controls and procedures are **effective**[413](index=413&type=chunk)[430](index=430&type=chunk) - **No changes** in internal control over financial reporting occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the internal controls[414](index=414&type=chunk)[429](index=429&type=chunk) Part II—Other Information [Item 1. Legal Proceedings](index=87&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to the Notes to the Unaudited Consolidated Financial Statements for information on material legal proceedings, including regulatory matters and contingencies - Information regarding material legal proceedings is provided in Part I, Item 1, Notes to the Unaudited Consolidated Financial Statements, specifically Note 1 (Regulatory Matters) and Note 2 (Contingencies and Commitments)[431](index=431&type=chunk) [Item 1A. Risk Factors](index=87&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K - There have been **no material changes** to the Risk Factors as previously disclosed in the 2023 Form 10-K[432](index=432&type=chunk)[504](index=504&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=87&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's repurchases of equity securities, primarily for tax withholding obligations on vested stock awards during the quarter ended June 30, 2024 Issuer Repurchases of Equity Securities (Q2 2024) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2024 | 81 | $59.98 | | May 2024 | 320 | $61.32 | | June 2024 | 0 | N/A | | **Total** | **401** | **$61.05** | - All repurchased shares were to satisfy minimum statutory income tax withholding obligations for vested shares under the Performance Incentive Stock Plan[505](index=505&type=chunk) [Item 3. Defaults Upon Senior Securities](index=88&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - **None**[417](index=417&type=chunk)[434](index=434&type=chunk) [Item 4. Mine Safety Disclosures](index=88&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - **Not applicable**[435](index=435&type=chunk) [Item 5. Other Information](index=88&type=section&id=Item%205.%20Other%20Information) The company reported no other information required to be disclosed in this item - **None**[416](index=416&type=chunk)[477](index=477&type=chunk) [Item 6. Exhibits](index=89&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including required CEO and CFO certifications and Inline XBRL documents - Exhibits include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act for both CMS Energy and Consumers[437](index=437&type=chunk) - Inline XBRL Instance, Schema, Calculation, Definition, Labels, and Presentation Linkbase documents are included as exhibits[437](index=437&type=chunk)

CMS Energy Corporation (CMS) reported second-quarter 2024 adjusted earnings per share (EPS) of 66 cents, which beat the Zacks Consensus Estimate of 63 cents by 4.8%. The bottom line, however, declined 12% from 75 cents reported in the prior-year quarter. Operating revenues totaled $1.61 billion, which lagged the Zacks Consensus Estimate of $1.69 billion by 5%. The top line, however, increased 3.3% on a year-over-year basis. Interest charges totaled $173 million, up 8.1% from that recorded a year ago. As of ...

CMS Energy (CMS) came out with quarterly earnings of $0.66 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for nonrecurring items. Over the last four quarters, the company has surpassed consensus EPS estimates three times. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the e ...

| --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------------------|-------|-------|------------------------|-------|-------------------------| | | | | Six Months \n6/30/24 | Ended | In Millions \n6/30/23 | | Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts | | $ | 248 | $ | 182 | | Net cash provided by operating activities Net cash used in investing activities | | | 1,663 (1,246) | | 1,705 (2,079) | | Cash ...

CMS Energy reaffirmed its 2024 adjusted earnings guidance of $3.29 to $3.35 per share (*See below for important information about non-GAAP measures) and long-term adjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end. "We are on track to deliver our full year earnings guidance after a strong first half of the year prioritizing investments in our electric and gas systems to deliver value for customers," said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy. ...

Core Viewpoint - The Zacks Utilities sector is expected to report a 6% year-over-year increase in second-quarter 2024 earnings, driven by planned investments, cost-saving initiatives, new electric and gas rates, and the adoption of new technologies to enhance service reliability [11]. Group 1: Earnings Expectations - Companies such as CMS Energy Corporation, Edison International, DTE Energy, and PG&E Corporation are set to report second-quarter earnings on July 25, providing insights into the utilities sector's performance [2]. - The Zacks model indicates that a positive Earnings ESP and a Zacks Rank of 3 or better are essential for increasing the odds of an earnings beat [6]. - CMS Energy is predicted to achieve an earnings beat with an Earnings ESP of +0.39% and a Zacks Rank of 2 [7]. - Edison International is also expected to report an earnings beat with an Earnings ESP of +0.66% and a Zacks Rank of 2 [15]. - DTE Energy's earnings outlook is less favorable, with an Earnings ESP of +2.81% and a Zacks Rank of 4 [16]. - PG&E Corporation's earnings are anticipated to benefit from reduced non-fuel operation and maintenance expenses, alongside rising demand from electric vehicles (EVs) and data centers [10]. Group 2: Operational Improvements - Utilities are making prudent capital expenditures that lower operating, fuel, and maintenance costs, benefiting customers through reduced utility expenses [3]. - The sector is focused on enhancing infrastructure resilience against extreme weather and transitioning to cost-effective renewable energy sources [12]. - Investments in digital technology and data-driven decision-making are improving overall operations and efficiency [3]. Group 3: Market Conditions - Warmer-than-normal weather during the second quarter is expected to positively impact utilities' performance [5]. - The high interest rate environment in the U.S. has not worsened for capital-intensive utility operators, as the Federal Reserve has not increased the benchmark rate since July 2023 [13]. Group 4: Clean Energy Initiatives - Many utility companies are committed to achieving 100% clean energy and zero-emission targets, reducing reliance on coal and increasing the use of renewable energy sources [4]. - Utilities are building large battery storage units to support renewable energy projects, ensuring electricity availability even during non-productive hours [12].

Group 1 - CMS Energy's Board of Directors has declared a quarterly dividend of 51.50 cents per share on the company's common stock [3][4] - The dividend is payable on August 30, 2024, to shareholders of record on August 2, 2024 [1][3] - CMS Energy is primarily engaged in the energy sector, with Consumers Energy as its main business and also operates independent power generation businesses [4]