10-QPeriod: Q1 FY2022

CMS ENERGY CORP Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 3, 2022For Securities:CMSCMS-PCCMSACMSCCMSD

Summary

CMS Energy Corporation (CMS) reported a slight increase in net income available to common stockholders for the first quarter of 2022 compared to the same period in 2021, reaching $351 million, or $1.21 per diluted share, up from $349 million in Q1 2021. This performance was primarily driven by higher electric and gas sales due to favorable weather, though partially offset by increased operating expenses. The company continues to execute its long-term "CE Way" operational model focused on safety, quality, cost, delivery, and employee morale, while balancing its "triple bottom line" of people, planet, and profit. Significant strategic initiatives are underway, particularly concerning Consumers Energy's Clean Energy Plan. A key development is the proposed settlement agreement for the 2021 Integrated Resource Plan (IRP), which, if approved by the Michigan Public Service Commission (MPSC), would accelerate the retirement of coal-fueled generation to 2025 and significantly increase investments in renewable energy, including substantial solar generation capacity. The company also reaffirmed its commitment to net-zero emissions goals for both its electric and gas businesses, highlighting a strong focus on environmental sustainability alongside financial performance. Capital investments remain robust, with plans for approximately $25 billion over the next ten years, primarily focused on infrastructure upgrades and clean energy projects.

Financial Statements
Beta
Revenue$2.37B
Operating Expenses$1.92B
Operating Income$456.00M
Interest Expense$121.00M
Net Income$353.00M
EPS (Basic)$1.21
EPS (Diluted)$1.21
Shares Outstanding (Basic)289.30M
Shares Outstanding (Diluted)289.90M

Key Highlights

  • 1Net income available to common stockholders was $351 million for Q1 2022, a slight increase from $349 million in Q1 2021. Diluted EPS remained stable at $1.21.
  • 2Favorable weather conditions contributed to increased electric and gas sales, driving revenue growth in the utility segments.
  • 3A significant development is the proposed settlement agreement for Consumers Energy's 2021 Integrated Resource Plan (IRP), which aims to accelerate the retirement of coal-fueled generation to 2025 and expand renewable energy investments.
  • 4The company is making substantial capital investments, planning approximately $25 billion over the next ten years, focused on infrastructure upgrades and clean energy projects.
  • 5CMS Energy is committed to ambitious environmental goals, including net-zero carbon emissions from its electric business by 2040 and net-zero greenhouse gas emissions for its entire natural gas system by 2050.
  • 6The 'CE Way' operational model continues to be leveraged for cost reductions and efficiency improvements across the organization.
  • 7The company is actively managing regulatory matters, including pending rate increase requests for both its electric ($272 million) and gas ($233 million) utilities.

Frequently Asked Questions

For the first quarter of 2022, CMS Energy reported a net income available to common stockholders of $351 million, or $1.21 per diluted share, a slight increase from $349 million, or $1.21 per diluted share, in the first quarter of 2021. This growth was mainly due to higher electric and gas sales driven by favorable weather, partially offset by increased operating expenses.

CMS Energy, through its subsidiary Consumers Energy, is advancing its Clean Energy Plan. A crucial element is the proposed settlement agreement for the 2021 Integrated Resource Plan (IRP). If approved by the MPSC, this plan will accelerate the retirement of coal-fueled generation by 2025 and significantly increase investments in renewable energy, particularly solar generation, aiming for net-zero carbon emissions in its electric business by 2040.

CMS Energy plans to invest approximately $25 billion over the next ten years, with a significant portion dedicated to infrastructure upgrades and replacements for both gas and electric systems, as well as substantial investments in new clean generation, including wind and solar resources. These investments are prioritized based on safety, reliability, affordability, and environmental stewardship.

Consumers Energy has filed for rate increases for both its electric utility ($272 million requested) and gas utility ($233 million revised request). These filings aim to recover investments in infrastructure, clean energy, and system reliability. The company is actively engaged with the Michigan Public Service Commission (MPSC) on these and other regulatory proceedings, including the ongoing IRP settlement approval.