Consumers plans to spend $20.0 billion on capital expenditures through 2029, with $14.8 billion over the next five years dedicated to electric distribution systems and gas infrastructure upgrades, and $5.2 billion allocated to clean generation resources like wind, solar, and hydroelectric. This significant investment aims to enhance safety, reliability, and support clean energy transformation.

The company's Clean Energy Plan aims to end coal use in owned generation by 2025, 15 years ahead of schedule. Proposed updates to the renewable energy plan include adding up to 9,000 MW of solar and 2,800 MW of wind energy resources, alongside co-located battery storage, to meet Michigan's increased renewable energy standard of 50% by 2030 and 60% by 2035.

Consumers updated its Transportation Electrification Plan, targeting over 1,500 new fast-charging locations and aiming to serve one million electric vehicles in Michigan by 2030. This initiative, coupled with a new workplace EV charging program, positions the company to capitalize on growing EV adoption and support grid modernization.

Consumers secured an annual electric rate increase of $176 million, effective April 2025, and has a pending gas rate increase application for $248 million. These approvals, based on authorized returns on equity (9.90% for electric, 10.25% requested for gas), demonstrate effective regulatory engagement to support ongoing investments and cost recovery.

In response to the MPSC Distribution System Audit, Consumers filed a response in November 2024, committing to improving electric reliability and safety. The company also filed an ex parte application in April 2025 to defer approximately $100 million in service restoration costs incurred from severe storms, demonstrating a proactive approach to operational challenges.

CMS Energy and Consumers have significantly reduced their carbon footprint, decreasing coal-based electric supply by 23 percentage points since 2015 and achieving over 30% reduction in CO2 emissions since 2005. They also reduced methane emissions by nearly 30% since 2012, showcasing consistent progress on stated environmental objectives.

In January 2025, the Sixth Circuit Court of Appeals found Michigan's local clearing requirement discriminatory against interstate commerce and remanded the case. While Consumers believes the requirement is the only means to secure reliable energy, an unfavorable final outcome could significantly impact the utility's ability to ensure reliable supply and potentially increase costs.

Consumers and DTE Electric are engaged in ongoing litigation against TAES and Toshiba for defective work on the Ludington plant, with Consumers' share of damages estimated at approximately $350 million. Although costs are deferred as a regulatory asset, an unfavorable outcome in this litigation could have a material adverse effect on financial condition and results of operations.

The EPA's proposed amendments in December 2024 to new source performance standards for stationary combustion turbines to lower NOx emissions may impact future gas-fueled, simple-cycle turbine projects. While Consumers is monitoring the rulemaking, it could necessitate additional investments or changes to future generation plans.

As a regulated electric and gas utility in Michigan, Consumers operates within a framework that allows for cost recovery through MPSC-approved rates. This regulatory environment provides a stable revenue base and limits direct competition, with electric deliveries under the Retail Open Access (ROA) program capped at 10% and serving fewer than 300 customers.

Consumers' Reliability Roadmap and Clean Energy Plan involve significant capital expenditures ($20.0 billion through 2029) to improve electric distribution, gas infrastructure, and transition to clean energy. These investments are designed to enhance public safety, increase reliability, and maintain affordability, which are key competitive differentiators in a regulated market.

Michigan law allows electric customers to choose alternative electric suppliers, but Consumers' electric deliveries under the ROA program remain at the 10% cap with a very limited customer base. This indicates that while competition exists, it has not significantly eroded Consumers' core market share, suggesting a strong competitive hold.

Total operating expenses for CMS Energy increased to $1,953 million in Q1 2025 from $1,764 million in Q1 2024. This rise was driven by higher fuel for electric generation ($217M vs $156M), purchased power ($380M vs $314M), and increased depreciation and amortization ($388M vs $368M), reflecting higher capital spending and inflationary pressures.

CMS Energy and Consumers continue to utilize the 'CE Way,' a lean operating system, to improve safety, quality, cost, delivery, and employee morale. This systematic approach supports ongoing efforts in supply chain optimization, information and control system efficiencies, and workforce productivity enhancements, contributing to long-term operational gains.

Consumers has reduced methane emissions from its natural gas delivery system by nearly 30% since 2012, aiming for net-zero by 2030 through accelerated pipe replacement and infrastructure rehabilitation. This demonstrates strong operational efficiency in managing environmental impact and aligns with sustainability goals.

Consumers is investing heavily in grid modernization as part of its Reliability Roadmap, with planned capital expenditures of $7 billion through 2028. This includes the installation of nearly 3,000 line sensors, 100 automatic transfer reclosers, and 1,200 iron utility poles, demonstrating a commitment to leveraging technology for improved electric reliability and outage prevention.

The company is expanding its customer programs, including demand response, energy efficiency, and conservation voltage reduction initiatives. These programs help customers use less energy and reduce demand during critical peak times, showcasing innovation in demand-side management and energy waste reduction.

Consumers is evaluating and monitoring newer technologies such as biofuels, geothermal, synthetic methane, and carbon capture sequestration systems to determine their role in achieving long-term net-zero goals. This indicates a forward-looking approach to innovation beyond traditional renewable sources.

Consumers plans $20.0 billion in capital expenditures through 2029, with $14.8 billion over the next five years for electric distribution and gas infrastructure, and $5.2 billion for clean generation. This allocation reflects a clear strategic prioritization towards enhancing safety, reliability, and advancing environmental stewardship, aligning with the company's Clean Energy Plan.

CMS Energy's proceeds from debt issuance significantly increased to $1,200 million in Q1 2025 from $599 million in Q1 2024, indicating reliance on debt markets to fund its robust capital plan. Despite this, the company's debt-to-capital ratio of 0.54 to 1.0 remains well within the covenant limit of 0.70 to 1.0, demonstrating prudent capital structure management.

CMS Energy declared common stock dividends of $163 million in Q1 2025, a slight increase from $154 million in Q1 2024, with a consistent dividend per common share of $0.5425. This indicates a stable and growing return to shareholders, supported by the company's financial performance and cash flow generation.

CMS Energy and Consumers have significantly reduced their carbon footprint, decreasing coal-based electric supply by 23 percentage points since 2015. They have reduced CO2 emissions from owned generation by over 30% since 2005 and methane emissions by nearly 30% since 2012, demonstrating strong commitment and progress towards their net-zero goals.

The company has set a goal of net-zero methane emissions from its natural gas delivery system by 2030 and a net-zero greenhouse gas emissions target for the entire business by 2050, with an interim goal of reducing customer emissions by 25% by 2035. These ambitious targets are supported by concrete plans including infrastructure upgrades and renewable natural gas.

Consumers launched a Clean Energy Workforce Development Program for building trades and a new workplace electric vehicle charging program, aiming to equip over 500 workplaces by 2030. These initiatives highlight the 'People' element of their triple bottom line, focusing on community benefits, job creation, and customer value.

Michigan's 2023 Energy Law significantly raises the renewable energy standard to 50% by 2030 and 60% by 2035, and sets a clean energy standard of 80% by 2035 and 100% by 2040. This legislative support provides a clear framework and incentives for Consumers' ongoing clean energy investments and strategic direction.

Consumers expects weather-normalized electric deliveries to increase over the next five years, reflecting strong growth in electric demand, partially offset by energy waste reduction programs. The filing specifically notes Michigan's economic conditions, including data center expansion, as a key driver for this increased demand.

The company acknowledges that inflationary pressures and tariffs could impact supply chain availability and pricing for its operations. While steps are being taken to mitigate these impacts, these macroeconomic factors represent an ongoing challenge to maintaining affordability and project costs.