Generation Capacity and Renewable Energy - Consumers acquired a 1,200-MW natural gas-fueled generating unit in May 2023, enhancing its generation capacity[69] - Consumers purchased the Covert Generating Facility, a natural gas-fueled unit with 1,200 MW capacity, in May 2023[110] - Consumers aims to add nearly 8,000 MW of solar generation by 2040[110] - Consumers plans to deploy battery storage beginning in 2024, with 75 MW of energy storage by 2027 and an additional 475 MW by 2040[189] - Consumers will purchase 100 MW of renewable capacity, energy, and RECs from a 149-MW solar generating facility to be constructed in Calhoun County, Michigan, targeted to be operational in 2024[193] - Consumers has completed the purchase and construction of wind generation projects totaling 517 MW, with an additional 201 MW project expected to be operational in Q4 2023[218] - Consumers entered into a build transfer agreement for a 309-MW solar generating facility, targeted to be operational in 2025[219] Emissions Reduction and Environmental Goals - Consumers has reduced sulfur dioxide and particulate matter emissions by over 90% and NOx emissions by over 80% since 2005[108] - Mercury emissions have been reduced by nearly 90% since tracking began in 2007[108] - Consumers plans to end coal-fueled generation by 2025, 15 years earlier than initially planned[110] - Consumers aims to achieve at least 50% combined renewable energy and energy waste reduction by 2030[112] - Consumers plans to reduce methane emissions by 80% by 2030 and achieve net-zero methane emissions from its natural gas delivery system by 2030[113] - Consumers targets net-zero greenhouse gas emissions for the entire business by 2050, with an interim goal of reducing customer emissions by 20% by 2030[115] - Consumers expects to meet 90% of its customers' needs with clean energy sources by 2040[137] - Consumers' Clean Energy Plan aims to achieve net-zero carbon emissions from its electric business by 2040, with ongoing progress in renewable energy and customer programs[212] Financial Performance and Capital Expenditures - Net income available to common stockholders for the three months ended June 30, 2023 increased to $147 million from $140 million in 2022, driven by rate increases and higher renewable capital spending[150] - For the six months ended June 30, 2023, net income available to common stockholders decreased to $217 million from $307 million in 2022, primarily due to unfavorable weather and sales mix[150] - CMS Energy's net income available to common stockholders for the three months ended June 30, 2023 was $195 million, up from $145 million in 2022, and for the six months ended June 30, 2023, net income was $397 million, down from $496 million in 2022[169] - Consumers plans to spend $15.5 billion in capital expenditures from 2023 through 2027, including $12.4 billion on gas infrastructure and electric distribution systems[120][121] - Consumers paid $305 million in dividends on its common stock to CMS Energy during the six months ended June 30, 2023[184] - CMS Energy had $406 million of consolidated cash and cash equivalents at June 30, 2023, including $17 million of restricted cash and cash equivalents[203] - Consumers had $116 million of consolidated cash and cash equivalents at June 30, 2023, including $17 million of restricted cash and cash equivalents[203] Risk Management and Regulatory Challenges - CMS Energy and Consumers manage risks related to commodity prices, including electricity, natural gas, and coal[82] - The company is transitioning from LIBOR to SOFR, which may impact interest rate expenses[96] - The company faces potential regulatory challenges related to environmental matters and permitting decisions[95] - CMS Energy and Consumers are implementing strategies to hedge risks related to energy commodity prices and interest rates[84] - Consumers filed an application with the MPSC in May 2023 seeking a $216 million rate increase, including a $207 million annual rate increase based on a 10.25% authorized return on equity[167] - Consumers estimates its share of the total liability for known CERCLA sites to be between $3 million and $8 million, with a recorded liability of $3 million as of June 30, 2023[239] - Consumers has a regulatory asset of $103 million related to MGP site remediation costs, with costs deferred and recovered over a ten-year period[243] Operational Efficiency and Customer Programs - CMS Energy and Consumers focus on energy waste reduction through efficiency and demand-side conservation initiatives[70] - Consumers reduced water usage by over 750 million gallons in 2022, aiming for a total reduction of 1.5 billion gallons by 2026[139] - Consumers expects weather-normalized electric deliveries to remain relatively stable over the next five years compared to 2022, reflecting energy waste reduction programs and modest growth in electric demand[195] - Electric deliveries under the ROA program were at the 10% limit, with fewer than 300 (0.02%) of Consumers' 1.9 million electric customers participating[221] - Consumers implemented retention incentive programs costing $32 million for D.E. Karn and an estimated $50 million for J.H. Campbell, with $16 million recognized in 2023[225] Financial Instruments and Credit Facilities - CMS Energy has forward sales contracts with an aggregate sales price of $441 million, maturing through December 2024, and intends to settle them by delivering shares of its common stock[209] - Consumers issued $1.525 billion in first mortgage bonds during the six months ended June 30, 2023, with various interest rates and maturity dates[250] - Consumers renewed a short-term credit agreement with CMS Energy, allowing borrowing up to $500 million, with no outstanding borrowings as of June 30, 2023[261] - Under the supplier financing program, trade payables recorded were $23 million at June 30, 2023, compared to less than $1 million at December 31, 2022[262] - The supplier financing program requires payment of confirmed invoices within 60 days, with no collateral or fees provided by Consumers[262] Cash Flow and Working Capital - CMS Energy's net cash provided by operating activities for the six months ended June 30, 2023 was $1,705 million, up from $1,059 million in 2022, driven by favorable changes in core working capital[156] - Consumers' net cash provided by operating activities for the six months ended June 30, 2023 was $1,759 million, up from $1,159 million in 2022, primarily due to higher collections and lower gas purchase prices[156] - At June 30, 2023, CMS Energy had $529 million available under its revolving credit facility, while Consumers had $1.3 billion available under its revolving credit facilities[186] Customer Deliveries and Sales - Deliveries to end-use customers for the three months ended June 30, 2023 were 49 bcf, down from 51 bcf in 2022, and for the six months ended June 30, 2023, deliveries were 168 bcf, down from 191 bcf in 2022[152] - Deliveries to end-use customers for the three months ended June 30, 2023 were 8.9 billion kWh, a decrease from 9.1 billion kWh in 2022[172] - For the six months ended June 30, 2023, deliveries to end-use customers were 17.7 billion kWh, down from 18.3 billion kWh in 2022[172] Clean Energy Plan and Renewable Energy Targets - Under the Clean Energy Plan, Consumers expects to meet 90% of its customers' needs with clean energy sources by 2040, with renewable energy capacity levels forecasted at 30% in 2025, 43% in 2030, and 61% in 2040[189] - Consumers plans to acquire up to 700 MW of capacity through PPAs, with up to 500 MW from dispatchable sources, starting in 2025[214][216] Other Financial and Operational Metrics - NorthStar Clean Energy's net income for the three months ended June 30, 2023 was $3 million, down from $7 million in 2022, and for the six months ended June 30, 2023, net income was $10 million, down from $15 million in 2022[154] - Level 2 inputs include observable market-based inputs such as quoted prices for similar assets or liabilities in active or inactive markets[263]

CMS Energy Corporation (NYSE:CMS) Q1 2023 Earnings Conference Call April 27, 2023 9:00 AM ET Company Participants Sri Maddipati - Treasurer and VP, Finance and IR Garrick Rochow - President and CEO Rejji Hayes - EVP and CFO Conference Call Participants Jeremy Tonet - JPMorgan Julien Dumoulin-Smith - Bank of America Shar Pourreza - Guggenheim Partners Durgesh Chopra - Evercore David Arcaro - Morgan Stanley Michael Sullivan - Wolfe Research Andrew Weisel - Scotiabank Alex Mortimer - Mizuho Ross Fowler - UBS ...

While Consumers cannot predict the outcome of changes in U.S. policy or of other legislative, executive, or regulatory initiatives involving the potential regulation or reporting of greenhouse gases, it intends to move forward with its Clean Energy Plan, its present net-zero goals, and its emphasis on reliable and resilient supply. Litigation, international treaties, executive orders, federal laws and regulations (including regulations by the EPA), and state laws and regulations, if enacted or ratified, cou ...

SOFR Secured overnight financing rate calculated and published by the Federal Reserve Bank of New York and selected as the recommended alternative to replace LIBOR for dollar-denominated financial contracts by the Alternative Reference Rates Committee TAES Toshiba America Energy Systems Corporation, a non-affiliated company TCJA Tax Cuts and Jobs Act of 2017 Term SOFR The rate per annum that is a forward-looking term rate based on SOFR T.E.S. Filer City T.E.S. Filer City Station Limited Partnership, a VIE i ...

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $2.89 for 2022, at the high end of guidance, and raised 2023 adjusted EPS guidance to a range of $3.06 to $3.12 from $3.05 to $3.11 [89][118] - The total utility customer investment plan was increased by $1.2 billion to $15.5 billion through 2027, reflecting a commitment to growth and infrastructure [90][152] - The company achieved $58 million in savings in 2022 through cost management initiatives [88] Business Line Data and Key Metrics Changes - Residential load was down about 1%, while commercial load was up over 1.5%, and industrial load, excluding one large low-margin customer, was up over 2.5% [1][2] - The company anticipates flat to slightly up load growth in 2023, with residential continuing to recover as people return to work [2][3] Market Data and Key Metrics Changes - The company noted robust economic development opportunities in Michigan, driven by the Chips and Science Act and the Inflation Reduction Act, which are expected to enhance load growth in the future [3][4] - Michigan was recognized as a top state for planned battery plant capacity, indicating strong market potential for energy-intensive businesses [87] Company Strategy and Development Direction - The company is focused on a clean energy transformation, with plans to exit coal generation by 2025 and a commitment to reduce its carbon footprint by over 60% [105][121] - The company is leveraging regulatory mechanisms to support infrastructure investments and customer benefits, including a $22 million voluntary refund mechanism [88][106] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2023 outlook, citing a strong regulatory environment and a disciplined approach to cost management [110][124] - The company plans to continue its focus on energy efficiency and demand response programs, which are expected to provide additional earnings [91][139] Other Important Information - The company plans to resume its at-the-market equity issuance program in the amount of up to $350 million per year from 2025 through 2027 [115][150] - The company successfully settled $55 million of equity forward contracts and opportunistically priced approximately $440 million of equity forward contracts at favorable rates [95][117] Q&A Session Summary Question: What are the impacts of the IRA on the plan? - The IRA is expected to provide additional benefits for customers, with an estimated $60 million in annual savings by 2026 due to the production tax credit [128] Question: Can you comment on the CapEx update now including Covert? - The updated plan includes Covert and a significant tranche of renewables, with a focus on maintaining a strong regulatory backdrop [127] Question: What is the anticipated load growth in the latest outlook? - The company is assuming about 0.25% load growth on a blended basis, with residential down slightly and commercial and industrial up [72][56]

CMS ENERGY Leading the CLEAN ENERGY TRANSFORMATION Environmental, Social & Governance November 2022 This presentation is made as of the date hereof and contains "forward-looking statements" as defined in Rule 3b-6 of the Securities Exchange Act of 1934, Rule 175 of the Securities Act of 1933, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. All forward-looking statements should be considered in the context of the risk and other factors detailed from time t ...

CMS ENERGY Leading the CLEAN ENERGY TRANSFORMATION Environmental, Social & Governance November 2022 This presentation is made as of the date hereof and contains "forward-looking statements" as defined in Rule 3b-6 of the Securities Exchange Act of 1934, Rule 175 of the Securities Act of 1933, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. All forward-looking statements should be considered in the context of the risk and other factors detailed from time t ...

CMS Energy Corporation (NYSE:CMS) Q3 2022 Earnings Conference Call October 27, 2022 9:30 AM ET Company Participants Sri Maddipati - Treasurer and Vice President, Finance & Investor Relations Garrick Rochow - President & Chief Executive Officer Rejji Hayes - Executive Vice President & Chief Financial Officer Conference Call Participants Insoo Kim - Goldman Sachs Shar Pourreza - Guggenheim Partners Jeremy Tonet - JPMorgan Julien Dumoulin-Smith - Bank of America David Arcaro - Morgan Stanley Travis Miller - Mo ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to_____ | --- | --- | --- | |----------------------------|------------------------------------------------------------------------------------ ...

Financial Performance & Outlook - CMS Energy's Q2 2022 adjusted EPS was $0.53, exceeding expectations[14] - The company's adjusted EPS guidance for 2022 is $2.85 - $2.89, indicating premium growth[14] - The annual dividend per share (DPS) is $1.84, a 10¢ increase compared to 2021[14] - CMS Energy projects an adjusted EPS growth of +6% to +8% and a DPS growth of +6% to +8%[6, 15] - The 5-year capital plan is $14.3 billion, excluding IRP upside[15] Clean Energy Transformation - CMS Energy is committed to exiting coal by 2025[13] - The company plans to add 8 GW of solar and >0.5 GW of battery storage by 2040[13] - By 2040, the company plans to add >0.5 GW of battery storage[13] Regulatory Environment & Financial Stability - Michigan's regulatory environment is considered top-tier, supporting timely recovery of investments and constructive ROEs[7, 9, 10] - Consumers Energy plans to issue $800 million in First Mortgage Bonds in 2022[23] - The company has >$2.5 billion in net liquidity[24] Cost Savings & Risk Mitigation - CMS Energy has identified >$200 million in future cost savings through productivity initiatives[65] - The company is de-risking inflationary pressures through various measures, including Campbell coal unit retirements (>$90 million adj O&M savings)[44, 69]