CMS Energy and Consumers Energy Report Financial and Operational Updates in 10-Q Filing

CMS Energy Corporation and its subsidiary, Consumers Energy Company, reported significant financial and operational developments in their recent 10-Q filing for the nine months ending September 30, 2024. CMS Energy's net income available to common stockholders reached $731 million, translating to diluted earnings per share (EPS) of $2.45, a notable increase from $571 million and $1.96 per share in the same period of 2023. This growth was driven by electric and gas rate increases and improved earnings from NorthStar Clean Energy, despite challenges from higher interest charges and increased depreciation and property taxes.

Consumers Energy's operational performance showed a rise in electric deliveries, with 28.0 billion kWh reported for the nine months ended September 30, 2024, compared to 27.5 billion kWh in the prior year. However, gas deliveries decreased to 186 Bcf from 198 Bcf year-over-year. The company has initiated a Clean Energy Workforce Development Program and a targeted undergrounding pilot program to enhance service reliability.

Strategically, Consumers Energy filed a Reliability Roadmap in September 2023, outlining a five-year plan with proposed capital expenditures of $7 billion, significantly higher than the previous plan. This roadmap aims to improve electric distribution and grid reliability, with maintenance and operating spending projected at $1.7 billion over the next five years. In May 2024, Consumers filed for a $325 million rate increase to support these investments, later revised to $277 million in October 2024.

In terms of environmental initiatives, Consumers Energy has committed to eliminating coal use in its generation by 2025, a move accelerated by the 2023 Energy Law mandating a renewable energy standard of 50% by 2030. The company plans to add nearly 8,000 MW of solar generation by 2040 and has already reduced carbon dioxide emissions from owned generation by nearly 40% since 2005.

Financially, Consumers Energy paid $544 million in dividends to CMS Energy during the nine months ended September 30, 2024. The company also recorded a regulatory liability of $110 million related to the sale of its unregulated ASP business, which generated $124 million in proceeds and a $110 million gain.

As of September 30, 2024, CMS Energy had consolidated cash and cash equivalents of $467 million, while Consumers Energy reported $403 million. Both companies maintained compliance with their financial covenants, with CMS Energy's debt to capital ratio at 0.57 and Consumers at 0.51.