CMS Energy(US:CMS)2023-02-02 19:03Financial 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]