CMS Energy(CMS) - 2025 Q4 - Annual Report

Financial Performance - CMS Energy's consolidated operating revenue was $8.5 billion in 2025, up from $7.5 billion in 2024 and 2023[44] - Consumers' consolidated operating revenue was $8.1 billion in 2025, compared to $7.2 billion in 2024 and 2023[47] - Consumers' electric utility operations generated operating revenue of $5.6 billion in 2025, an increase from $5.1 billion in 2024 and $4.7 billion in 2023[52] - Consumers' gas utility operations generated operating revenue of $2.5 billion in 2025, an increase from $2.1 billion in 2024 and $2.4 billion in 2023[81] - NorthStar Clean Energy's operating revenue was $408 million in 2025, compared to $316 million in 2024 and $297 million in 2023[97] Customer Base and Deliveries - In 2025, Consumers served 1.9 million electric customers and 1.8 million gas customers in Michigan's Lower Peninsula[49] - Consumers' electric deliveries were 37 billion kWh in 2025, with net bundled sales of 34 billion kWh[56] - Deliveries of natural gas through Consumers' network totaled 396 Bcf in 2025, up from 362 Bcf in 2024, with 46% of winter gas supplied from storage[85] Renewable Energy and Emissions Goals - Consumers plans to achieve 60% renewable energy by 2035 and 100% clean energy by 2040, with updates to its Renewable Energy Plan including up to 9,000 MW of solar and 4,000 MW of wind resources[65] - Consumers aims for net-zero methane emissions from its natural gas delivery system by 2030, targeting an 80% reduction from 2012 levels[88] - Consumers has set a goal to reduce customer greenhouse gas emissions by 25% by 2035, with a ten-year investment plan to achieve this[89] - Michigan's 2023 Energy Law mandates a renewable energy standard of 50% by 2030 and 60% by 2035, with a clean energy standard of 80% by 2035 and 100% by 2040[109] - Consumers plans to reduce methane emissions from its natural gas delivery system by about 80% from 2012 levels by 2030[112] Generation Capacity and Resources - In 2025, 41% of Consumers' electric supply was generated by natural gas, producing 14,661 GWh of electricity[70] - Consumers purchased the Covert Generating Station in 2023, adding 1,200 MW of nameplate capacity[64] - Consumers plans to retire coal-fueled generating units totaling 1,922 MW of nameplate capacity, including the D.E. Karn and J.H. Campbell units[63] - In 2025, 20% of Consumers' electric supply was generated by coal-fueled units, producing 7,320 GWh of electricity, with 3,608 GWh supplied to MISO to comply with emergency orders[76] Financial Commitments and Risks - Consumers has future commitments to purchase capacity and energy under long-term PPAs estimated to total $17.0 billion from 2026 through 2060, with annual payments ranging from $0.9 billion to $1.0 billion for the next five years[73] - CMS Energy's fixed-rate financing potential loss in fair value is projected to be $792 million for 2025 and $717 million for 2024[398] - Consumers' fixed-rate financing potential loss in fair value is estimated at $535 million for 2025 and $543 million for 2024[398] - CMS Energy and Consumers are exposed to market risks including interest rates, commodity prices, and investment security prices[395] - A hypothetical adverse change in market rates or prices of 10 percent could lead to potential losses exceeding the amounts shown in sensitivity analyses[396] Workforce and Diversity - CMS Energy and Consumers recorded an OSHA recordable incident rate of 2.34 in 2025, with a target serious injury incidence rate of 0.037 for 2026[124] - The diversity, equity, and inclusion index score for CMS Energy and Consumers was 75% for the year ended December 31, 2025[127] - At December 31, 2025, unions represented 44% of CMS Energy's employees and 45% of Consumers' employees[123] - Consumers' workforce composition includes 26% female employees and 13% racially or ethnically diverse employees as of December 31, 2025[128] Future Plans and Strategies - Consumers plans to file energy storage plans by 2029 to achieve a statewide target of 2,500 MW[109] - Consumers' firm gas transportation contracts are expected to provide 34% of total forecasted gas supply requirements for 2026[95] - Fewer than 300 of Consumers' electric customers purchased electric generation service under the ROA program, which is capped at 10% of Consumers' sales[79] - CMS Energy and Consumers utilize a combination of fixed-rate and variable-rate debt instruments to manage interest-rate risk[397] - The company has established policies and procedures for entering into risk management contracts under the direction of an executive oversight committee[395]