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Released February 22, 2024 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--CMS Energy Corporation (NYSE:CMS) (Jackson, Michigan), which operates an electric and gas utility and a clean energy business, on February 1 told investors it was increasing its five-year capital spending program $1.5 billion, to $17 billion, over the 2024-2028 period.
In an earnings call, Garrick Rochow, president and chief executive at CMS Energy, noted that the company's utility unit, Consumers Energy, had retired coal-fired generation, acquired the 1,200-megawatt (MW) Covert natural-gas fired generating station in Michigan and brought online a 201-MW windfarm called Heartland.
The company also increased its dividend when it announced earnings.
Rochow added that about 40% of the company's five-year planned investment program "supports renewable generation, grid modernization and main and service replacement on (its) gas business, which are critical as we lead the clean energy transformation. The plan also includes an increased investment in the electric distribution system to improve reliability and resiliency for our customers."
"This thoughtful (energy) transition ensures customer reliability as we move our portfolio from coal to clean," he added.
Over the 2024-2028 period, CMS Energy plans to invest about $3.4 billion in its clean energy generation business, approximately $7.3 billion in its electric distribution operations and roughly $6.3 billion in its gas utility business. Roughly 63% of the $17 billion capital spend will go to the company's electricity business, with the remaining 37% to its gas utility business.
Click on the image at right to see a table listing CMS Energy's proposed capital spend by year and business unit.
The Consumers Energy unit closed its J.H. Campbell Generating Station at the start of 2024, and it plans to dismantle and demolish that facility over the next several years.
Industrial Info is tracking five active capital projects involving CMS Energy or its subsidiaries that are scheduled to kick off construction between January 2024 and December 2028. Those projects have a total investment value (TIV) of about $854 million. The projects include decommissioning and demolition of the three generators at the 1,445-MW Campbell complex. Units 1 and 2 began operating in the early 1960s, and Unit 3 began operating in 1980. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a list of all CMS capital project reports.
About 18% of Consumers Energy's generating capacity was fired by coal in 2021, according to the utility. Renewables, by contrast, accounted for about 14% of the utility's generating capacity that year.
Looking ahead to 2025, Consumers Energy will be out of the coal-fired generation business, about 15 years earlier than originally planned. Renewables will account for about 30% of generating capacity. Natural gas, which accounted for about 26% of the utility's generation in 2021, will grow to 31% in 2025, but shrink after that to about 10% in 2040. The remainder are nuclear, fuel oil/gas, energy storage and purchases from the market. Percentages vary from year to year. Renewables are expected to grow steadily to 2040.
Click on the image at right to see Consumers Energy's electric generating capacity by fuel, from 2021 to 2040.
On the investor call, Rochow detailed changes to Michigan's energy policies. Effective this June, Michigan toughened its renewable portfolio standard to 60% by 2035, up from 15% by 2021. By 2040, according to the state's new Clean Energy Standard, all electricity shall be generated by "clean" resources, which includes renewables, nuclear, and natural gas outfitted with carbon capture, utilization and use (CCUS). Previously, Michigan did not have a clean energy standard.
The state's new energy law, enacted last year but effective this June, also set a goal of 800 MW of battery energy storage by 2030, up sharply from the prior goal of 550 MW by 2040.
For calendar year 2023, CMS Energy earned $877 million on revenue of $7.5 billion. Although revenue declined about $1.1 billion compared to 2022, year-over-year net earnings available to stockholders increased $50 million on a generally accepted accounting principle (GAAP) basis.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
In an earnings call, Garrick Rochow, president and chief executive at CMS Energy, noted that the company's utility unit, Consumers Energy, had retired coal-fired generation, acquired the 1,200-megawatt (MW) Covert natural-gas fired generating station in Michigan and brought online a 201-MW windfarm called Heartland.
The company also increased its dividend when it announced earnings.
Rochow added that about 40% of the company's five-year planned investment program "supports renewable generation, grid modernization and main and service replacement on (its) gas business, which are critical as we lead the clean energy transformation. The plan also includes an increased investment in the electric distribution system to improve reliability and resiliency for our customers."
"This thoughtful (energy) transition ensures customer reliability as we move our portfolio from coal to clean," he added.
Over the 2024-2028 period, CMS Energy plans to invest about $3.4 billion in its clean energy generation business, approximately $7.3 billion in its electric distribution operations and roughly $6.3 billion in its gas utility business. Roughly 63% of the $17 billion capital spend will go to the company's electricity business, with the remaining 37% to its gas utility business.
The Consumers Energy unit closed its J.H. Campbell Generating Station at the start of 2024, and it plans to dismantle and demolish that facility over the next several years.
Industrial Info is tracking five active capital projects involving CMS Energy or its subsidiaries that are scheduled to kick off construction between January 2024 and December 2028. Those projects have a total investment value (TIV) of about $854 million. The projects include decommissioning and demolition of the three generators at the 1,445-MW Campbell complex. Units 1 and 2 began operating in the early 1960s, and Unit 3 began operating in 1980. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a list of all CMS capital project reports.
About 18% of Consumers Energy's generating capacity was fired by coal in 2021, according to the utility. Renewables, by contrast, accounted for about 14% of the utility's generating capacity that year.
Looking ahead to 2025, Consumers Energy will be out of the coal-fired generation business, about 15 years earlier than originally planned. Renewables will account for about 30% of generating capacity. Natural gas, which accounted for about 26% of the utility's generation in 2021, will grow to 31% in 2025, but shrink after that to about 10% in 2040. The remainder are nuclear, fuel oil/gas, energy storage and purchases from the market. Percentages vary from year to year. Renewables are expected to grow steadily to 2040.
On the investor call, Rochow detailed changes to Michigan's energy policies. Effective this June, Michigan toughened its renewable portfolio standard to 60% by 2035, up from 15% by 2021. By 2040, according to the state's new Clean Energy Standard, all electricity shall be generated by "clean" resources, which includes renewables, nuclear, and natural gas outfitted with carbon capture, utilization and use (CCUS). Previously, Michigan did not have a clean energy standard.
The state's new energy law, enacted last year but effective this June, also set a goal of 800 MW of battery energy storage by 2030, up sharply from the prior goal of 550 MW by 2040.
For calendar year 2023, CMS Energy earned $877 million on revenue of $7.5 billion. Although revenue declined about $1.1 billion compared to 2022, year-over-year net earnings available to stockholders increased $50 million on a generally accepted accounting principle (GAAP) basis.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
