CMS - Earnings call transcript Q4 2020 | CMS Energy Corporation 5.875% J

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Operator

Good morning everyone and welcome to the CMS Energy Fourth Quarter 2020 Results. The earnings news release issued earlier today and the presentation used in this webcast are available on CMS Energy's website in the Investor Relations section. This call is being recorded. After the presentation, we will conduct the question and answer session. Instructions will be provided at that time. instructions]. [Operator

webcast there XX:XX rebroadcast through p.m. presentation also reminder, today this Energy's February. Investor time, would website ahead. Relations. be over on Mr. is at available Please beginning like Eastern being this will a of President a call Vice call I Sri the This go CMS in Just is and Time Maddipati, Relations turn of At Investor to the section. to Treasury and running

Srikanth Maddipati

for everyone, morning With these This Good risks President Rocco. also our most refer thank to Rochow, you and could website. are differ today. you, Thank more Financial factors that results the Officer; on posted presentation of Vice our presentation us joining directly materially. the and GAAP statements, This Please which are information our Reconciliations to other measures Hayes, regarding cause measures. subject me President Officer. included for forward-looking and and Chief actual Executive Garrick in to to are measures contains appendix uncertainties. the and and risk Chief comparable Executive Rejji non-GAAP and SEC includes filings

call Garrick. over turn Now, will I the to

Garrick Rochow

and for joining excited to pleasure be you, and you over yet the role. performance. I'm today. months year into sharing CEO call thank another industry-leading Thank financial meeting as I've hosting had couple Sri, first the many past us everyone of of the you of I consistent earnings transitioned my

our It put is replicate. its powerful thesis. industry-leading Michigan is that These regulatory alignment I clean even what supportive capital to to enough. energy updated to staff. well legislative the a jurisdiction. investment the regulatory environment but five-year our opportunities investment framework a and regulatory and And not set plan, investment to are and reiterate want top the results legislation the to systems decarbonization. take not consistently on commitment apart. our achieve simple with Before and MPSC I starts ranked moment Well, are paper, This discuss is constructive year-end tier by as strong why energy But gas supported and commission investment as opportunity the simple

affordability on focused is Our critical.

afford customers these can our investments. So

value company to safety Now, been cost and bottom the top much over our union in story investors. time, and excellence, CMS who up. Over Its from the XXX committed years, to of the was customers demonstrated improving us the embedded with to in decades. manage the it to for is in the manage for our of unique not coworkers is and reliability you, two XX last our invested the attributes I've it from at our customer that to delivering These driven cost it lowest partnership allow ability the with in to as are built culture possible. highest deliver systems, our That would but we cost consistently ability customers This service. while our down, operations. our

shareholder return growth our X% XX%. EPS the of with adjusted XX% to all Our provide of to dividend combined premium

on $X.XX, from per penny Our our operating This cash of delivered a to share, million leading $X.XX ability pandemic, up something up with $XXX our state in In pension XXXX, this, have reflects company, consistent excluding contributions and capable by focus delivered Last every billion, our X% XXXX each the no raising or Regardless this month, we industry-leading we results $X.XX, XXth we're we XXXX XXXX doing. increase Today, in different. $X.XX the announced and share is $X year. uniquely prove we from guidance dividend of as of achieve for be results. XXXX our voluntary from XXXX. X% our EPS and will our per X% to earnings prior of year-in XXXX global midpoint. year-out, adjusted annual growth almost weather, many adjusted to flow of growth a X% to years, who's of year commission a deliver are

We us XXX we continue XXXX. for XXXX on and everyone. am physically communities serve, with X% line. long million and with share to up the $XX.X tough co-workers, earnings of we increasing are executing a XXXX new transition. focus our of new integrated to with transition. million on new again, solar, was From in our a able and target We assistance, support our clean the dividend term all, foundations, planet forgiveness, Today, of financially. a per added do to capital plan X%, which our portal equity, customers, we're our first winds to as also to inclusion. maintain balanced and advance diversity, small billion, we bottom plan. work practices annual as as our The and Further through of made growth on and in five-year midpoint. business year $X improve that and pandemic our prior a income a years load commitment, brings the impacted enhanced donations engagement, equally is employee global tranche energy We to XXXX performance. to everything reinvestment But megawatts first our clean consecutive state, our in investment our work experience Despite $XX megawatts planet performance. We the with let lead it as emotionally, customer our investors of demonstrated XXX over megawatts on communities relief Through moment. We to plan, reliability. our financial of XXX customers safety I I'm energy by XXth to we and done I'll our it for six. slide triple the of support significant sit COVID for portal perspective, from commitment over proud attracted low of for pandemic, important of achieved well of our pleased the leading industry the result customers, our efforts focused new resource a and you to area of programs, and co-workers. residential payment $XXX were all continue to investments in over and billion were support changing of provide jobs. first over financial

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the will We the customer are deliver continue the reduce reliability, to to WAY, committed. tip every corner And Through company iceberg. opportunities My positioned the service. better we WAY. in through There achieve well. opportunity. remain I improve waste that coworkers there more and CE is of are of still But and CE a just excellence

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transition, includes investments programs, of grid renewable as distribution electric XX% clean to plan our fact, as directly emissions. supports support our and our monetization, generation, reduce invented energy methane well like our which replacement this In main and generation, programs service

above in percentage our our wind of returns, base rate These and traditional investments with earnings are our mix. beyond combined enhance and resources earned energy, incremental and demand investments, mechanisms our regulatory to incentives addition growing by earnings our In our PPAs ROEs. and clean our renewable returns, supported

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as This, that a opportunities $XXX continue decade, And to costs Over market cost in customer's the combined of opportunity the of in saving and deliver We see we we keep plan cost remaining future. on for ensure percentage productivity the capital recovery WAY our savings CE PPAs, wallet. cost through MCV, reduced future will deliver with had we'll supply power million facilities to coal peers coupled and savings $XXX the of to and million will we with which unique have our reduce nearly relative generate structural the above last to savings. bill These Palisades provides further the utility over customer our affordable. retirement customers. bills

enabled customers line. What consistently the Now never not us makes WAY day us engaged significantly we on employee industry, an deliver delivers the all team deliver coworkers our in our workforce. has engagement. our about savings. the engaged WAY value better moved has industries. triple as the our just value workforce unique increase but great This quartile, of the the leverage as for which thing bottom utility to from we've excellent top than CE best thing, Furthermore, serves the our without doubled our how to across capital is every our have quartile nine in plan work Slide best increasing to coworkers. is cost our more to We served productivity, sector XXXX CE customers. our bottom great And it

rate that incentives level been is regulatory policymakers, It's and by legislative authorized from not staff. the excellence ROE. investors since benefit and do above has groups beyond of accident. statute jurisdiction customers, regulatory to environment. Our for We my allows ranked constructive environmental every hard XXXX. of and financial proceeding in ability coworkers our this day a Michigan's construct and top to of Michigan's deliver the our a regulatory earn reflection MPSC customers by That's supported and that trust work tier the the our case Karn supports the

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slide XX. to Turning

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provide over Rejji. more after the to filed. we I'll information will call turn We

Rejji Hayes

or you, XXXX our of and actuals. Garrick net $XXX our pleased to adjusted million report $X.XX X% per of income Thank year-over-year up We're morning, XXXX good everyone. share,

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parent the driven level majority As mentioned, utility. other Unsurprisingly, to XXXX the $X.XX in annual be growth to EPS end, which target of our of our adjusted I'll by upside and X% will to share, And select range. in guidance which at a midpoint path anticipated we of on note largely the the execute modest To the XXXX growth is our items $X.XX our XXXX year actuals. implies in X% All-in, also of X% are sector of earnings glide non-operating continue to to raising per offer will consolidated EPS average. to segment XXXX, guidance growth of for elaborate due achieve flex excess we the absence at XXXX. range the

you'll As per this which case weather, the XXXX. the variants weather slide chart XX, winter experienced normal we'll waterfall $X.XX mild in plan in to in share, amounts year-over-year on positive a given for note

of the costs, in to $X.XX second orders the driven in XXXX condition settlement due It to is we attributable electric a of EPS investment an half the net worth here Additionally, XXXX. received pickup noting absence magnitude relief, by the anticipate also of in agreement. increase impact in largely the which that of EPS is part XXXX of rate was our rate XXXX,

XXXX. that electric an year year, mentioned, plan file QX that do economic of will in impacts to we in and as case this test While case Garrick for commence

cases XXXX, look $X.XX reliability, endeavor driven attributable have while decarbonisation. you'll variance cost assumptions As we rate of approved to in support initiatives our we'll per Needless targets, and key to structure our productivity experience waste our say, on for in and customer always to safety, WAY, at substantial negative the we note incremental around and customers. delivering around by CE underlying O&M share recent to overachieve approximately elimination, value those

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energy our often and changing As likelihood conditions sustain and to and circumstances can the the growth our and/or do consistent industry-leading meeting it of changes economic increase to always, throughout the risks Irrespective of long job in objectives. the for mitigate operational view the fiscal financial We're same. adapt year widespread environmental circumstances, the you. potential whether we'll our in we asked our answer conditions remains about we to policy. given or concerns warrant term And

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we in that that important, our of beyond, plan, our billion are through the and second And on XXXX or million updated proactive dribble increase of strength we five-year risk. the row comfortably up the of which X,XXX $X.X items with active minimize that kick two to a latter Given benefit fully no off execute our going funding, mention our we raise for financial And we have less coworkers balance of respect plan our page, equity pricing are capital of well $XXX retirees. XXXX confident forward. I'll our can we as as annual which equity our to we in concluded we sheet benefits and capital funded anticipate net in to with which X,XXX additional the to not XXXX program liquidity, but roughly year due plans positions needs

serve model will served Our well. all has and stakeholders continue to

variables trained for and performance. investors slide organization, To we've financial customers affordable our on for driven consistent Our coworkers assumptions. refreshed key XX, clean energy analysis our cared industry-leading my well prices, your purpose conclude safe, on while our and our reliable at receive and sensitivity remarks engaged, in prepared remain modeling from benefit

record And variances are place our probability mitigation, planning reasonable orders plan minimized. rate with it for of Garrick final to that, I'll with the some already from note, of Q&A. and risk you'll track comments hand in assumptions, back our As before large

Garrick Rochow

Rejji. you, Thank

simple, stakeholders, continued Our year-out. and lines open capital unique. clean WAY With energy shareholder for for investment remain investment. thesis Q&A. benefits line. please premium through our that, total a delivering It We committed deliver the year-in remains transition, us to CE bottom return through all lead Rocco, the that and the excellence but enables to The triple

Operator

Gary. Today's Please JP from question first much, comes Tonet very you Morgan. Thank with [Operator go ahead. Jeremy Instructions]

Jeremy Tonet

Hi, good morning.

Garrick Rochow

Jeremy. morning, Good

Jeremy Tonet

Just thanks. -- one

time? wondering off how bit just to I want start the just like or as much talk how When that wanted about a is your deployment. could well of little And of on appetite up progress clarify to on vision over that Just CapEx And guess energy you see that specifically renewables XX. spend? Seems slide there, Thanks you there. non-regulated your versus generation guess clean stepped regulated I

Garrick Rochow

for Thanks Yes. your question.

the broadly the Let's and likes. just talk about renewables

of industry-leading want commitments. first one is So the all, that industry we be to the I out clear about And best there. of have in

the our to plan In aggressive a continue energy in solar. then, it's this so broader with have resource advance our transition. plan, of we'll June, gigawatts perspective. Rev of the build And we'll in course is and part that six solar, file resource which plan And integrated is we of current of a in our from of leadership X, clean integrated aggressive X.X out the out gigawatts plan plans build

hydro. electric And in which but if plan about renewable, additional in Ludington grid that service there, might gas And role largest is you're that's $XXX million the in picking the tune our is the the right what and storage to world, And million free. made for out the provides of about our $X for that in also facility, in think some, There's plan. future. our additional largest, in can the reliability so balance on the Pumped solar then intermittency. XXX the up prepare system And surprising million improve mark, of be original investments Jeremy, that's for renewables decarbonize. There's of an to it important an you further you're fourth XXX carbon renewables more the but there's up billion, capital

now, split pieces. and important the investments between the When -- think resource are XX, build, and those own, we our there. slide agreement transfer. plan so is purchase our Right XX/XX specifically, integrated power a on about And

a than a are our because we're about building XX/XX But Now, so plan energy let's for -- there support the talk one are of the the in PPAs, transfer. commitments, come it's minute. that, certainly that. mechanism renewable to leader and we through wind And compensation All associated that financial XX/XX. build, industry, and few the greater with industry rest those to own, get the in

think a about to looks our we're at we mix like. look strong Now, that going what IRP, as second take

for future. And will so be that the

grow certainly will will so we explore future. of And plan our integrated be be and resource something and for that the part

know over offer Now, Rejji I'm he too, because go to well. some additional thoughts I has to this to pass as it on

Rejji Hayes

to for we this we highlighted clean in good the is Thank have Jeremy, utility XX capital generation addition question. the the on page that This consumers an part you, at spend $XX.X if all billion and I this know I energy on Garrick. all only call, thing of additional of billion regulated offer $X.X would comments. -- don't see is But Garrick's energy. And your the XX. the so of on

the we're all for the capital utility. is earmarked of talking regulated So about investment

Jeremy Tonet

balance you XXX. kind years? be I of on color, be guess, turn a That's or more year. more really if less year? other And if there in And in kind that color a be might just the Or could step equity, ratable to great? there, CapEx up if driver any of for provide that given able across the bit this you just there there's you provide of a that. see would just could little Or to kind sheet very little helpful. bit talked you that And wondering clarifying up stepped up to Thank want the there about

Rejji Hayes

is first, a a plan, part which vintage. has by question increased Jeremy. with starting the ratable the it say, second capital with increase over billion I obviously of $X investment your vintage really

increase equity billion, roughly that. we've and increased the a of because the $X by needs commensurate plan And had capital utility so, with as

$XXX know, the year at million per now plan about as it's $XXX And run rate. we're you so prior million. And

you be to And when it opportunistic, some less, be about we'll to is Now, stock, just around some where years, that we price next $XXX, market well, years obviously. And and is our and distribution I over may will the may add. it think we'll the look receptive at five how look at years, little currency. the

first The $XXX back [ph] that that do the taken XXXX, we're XXXX. executed half million in to of risk XX% pricing the affords planning of about already we off table in we've

so be And we'll opportunistic.

say wouldn't target. going to year, but more, a I the it's So be a little clean $XXX some years that's less. then, some years will each And

say $XXX so in than that, more, up and to be And when just I a clear. little ceiling to be years less to some very maybe

Jeremy Tonet

stop I'll helpful. you. super Thank That's there.

Rejji Hayes

Thanks.

Operator

And our Partners. from question today go Guggenheim comes Shahriar Please with ahead. Pourreza next

Unidentified Analyst

and [Indiscernible]. actually Constantine for on It's Hi, Shahriar. good this congrats morning here

Garrick Rochow

Hi, Constantine.

Unidentified Analyst

Hey.

of Just for the energy a clean on quick kind one CMS. mix

And retirements the some can thresholds outlined start IRP, to for kind kind obviously the still that the talk jumping moving obviously, especially dates of reductions kind rate you of in those kind You've economics for replacement about move of decade as opportunity coal improve to into envision away. of you Without around, ahead? any of of base that power? kind a and kind and Campbell's

Garrick Rochow

that, and X, -- Yes. call and a back. our your even take at process resource in the right looking it integrated or We're for X.X now Rev plan, Thanks so question. maybe of I step

for IRP, X.X, Campbell at retirement not. or and for we're XXXX. in coal early retirement is X plants, now, and whether potential pulls IRP date XX X.X looking early remaining X, of to course and we're forward acceleration, And right our we XXXX, five, the had their the this Over X. X evaluating now, Right Karn Karn down my for career, of that

are Also, of a at at the ambitions things on with that that the the build play how number that going out? go look obviously what's of perspective, of is administration value, There's We're there benefit which does under what's impact that impact, the But securitisation coworkers at we and the the Biden book around the what certainly so, some that that looking context but variables balance And And modeling. of in capital the in is the remaining looking metrics? plan And that. variety credit we grid, put modeling reliability something also sheet. on plan, of a underway. support. consideration. that the that's into is the from and of we the

thinking on our that coal plants. And so our into also factors

Unidentified Analyst

a good low That's just to growth. shifting and And planning Perfect. assumptions bit kind little of very color.

So you're end and starting for the to more you -- of XXXX their kind just going load or the the kind general, little kind tail of terms of return play was of been, a shifts the recovery, then and kind of similar have mentioned a as they how need volatile plan little anticipate profile kind by the in end normal then to of flex, and reset And how baseline, being the and they're of obviously of the of in mix. XXXX, that a you're to bit kind higher. And you your does by to in that year? that the impact Rejji the out kind residential Do bit normal in of in year, to back XXXX. trends

Garrick Rochow

big after is I there's and every when And work Well, with which year, find reinvest the it, off do, picture, and savings start flex XX. we it. then to WAY slide our and muscle CE we get opportunities, we

pandemic QX well home, to will for continue the are as still sticky, in opened expect broad might have a to working Michigan. return kids QX, Also, some we anticipate this we've to commercial as people capacity, playing limited we That's sales back from go here to been from and readily message, perspective. recently, vaccines little as talked that as are people we virtual. out, still expect those as decline, see again, school. distributed will particularly a you workplace. Restaurants more bit. and grow traditional across mean, grow, sales a but positioned many here bit the XXXX. And specifically up the And available schools as Residential are and in sales, we as so, I But those is

And It's like returning earlier, we're perspective, an well might so, the positioned feel and only $X.XX, in levels, aggressive customers to our as XXXX. helps the shared the but as expect we our and not just flex assumptions, benefit, of for there's that XXXX. again, end you I lot O&M really provides toward We've conservative from some us, shared. of at From pre-pandemic done for tune risks there. of it a customers we to very assumptions year de as reinvestment

in the there, the there's could pandemic we winter, it that but every don't CE and and do what is flex get we could We WAY out. out summer Now, carve and mild be weather deliver. each muscle rest it after still we we reset, cool and assured don't a year be

year And what us, team, no a I'm guidance in and throw matter prepared, we've prepared confident as provided. the at I'm so, we're the

Unidentified Analyst

back wonderful. Thanks, I'll was Garrick. That jump queue. in

Operator

And Suisse. our Credit next ahead. with Weinstein Please question today comes from go Michael

Michael Weinstein

good guys. Hi, morning,

Garrick Rochow

Hi, Michael.

Michael Weinstein

Hey.

about thinking filing? million should IRP expect of plan? up. that Just you've the of of needs changes $XXX equity sort range of that Or see possible Does as some already the the equity that to come result we things filings thinking of contemplate to the in a

Rejji Hayes

billion and that out still with were gigawatts that $XX.X was the first had of tranche And Yes, of investments, have we XX. we're June the capital is solar just the is provided some our the I'll then say equity capital of issuance think, that approved of laid IRP plan. Michael, this that IRP-related means on Rejji. X.X remember, I in executing reflective

some years this that the into outer of plan. of there's so And

that's what equity will that And support. so

us. where speculative too have XX-month process. to remember, XX-month, We what IRP, take the a But out of potentially have will not been X.X, it's we'll we and see come as outcomes

as planned, we'll three-year in mid approval. And around get we an mid XXXX. So file XXXX, that's board outcome a if

reflected the plan, my of year. obviously five-year more is, results you'll So, sense out vintage see of the of next QX of that will next in our roll in which

now, $XX.X $XXX million for So of comfortable equity year billion we're plan. a with this funding per

Michael Weinstein

coincide with type three sense. legality could for of this Michigan, Makes three the rates, if the the thing. of Michigan the a very And know in have or years? of happy you out years, comes also in just flag rate in the comment the an appetite I right? company there? I'm guys any -- past, it's multi a with approval way case. the bit appetite And about IRP there's of of that you there been year annual settlement an little that the And Is kind wondering possibility

like what the prospects something for wondering are Just that?

Garrick Rochow

creates We're still which it give go of back One, still -- aggressive for WAY to reasons. for couple plans. capital investment find And approach that our allows opportunities and our a case to approach an is our annual CE that for work our savings, provides we with as headroom, to we opportunity customers. rate

that our And works so It that's continue for strategy for us. that path the works time. on commission, some for

Michael Weinstein

blocking Right. a though, to I plan? it of that legally. outcome, legally year type multi have not There's right? It's nothing Michigan allowed mean,

Garrick Rochow

nothing option And There's at the that's we've No. the rate strategy, best our we it. legally blocking again, explored is times. feel for And it this case. annual

Michael Weinstein

much. Thank I That's you Okay. all very got.

Operator

ahead. go Please Bank with Dumoulin-Smith Julien from America. comes today question of next Our

Julien Dumoulin-Smith

to it's to update out up plant that's Hey, five-year And chance timeline next an impact the could good large I CapEx? follow pretty larger CapEx we that Garrick. just guys on also, five-year you be just energy, not that? on I say I on I year clarify, morning, raising on CapEx Is say, could I long And that clean -- that sure clear And the look remaining the the slide, we about bit anything outcomes know congrats, but know, then in already window? Thanks wanted a see listen, that can weaving team. here. IRP And does question year, Would plan? clarify. update we Campbell, are here a understand, pretty shall I the you five want to could the there opportunity. one the a get and retirement. there's to the make IRP early on, about want got we're at any that you've contemplate dated extra your to into coal Obviously, there, that here little some of wanted shifted you clearly, here. on plant if you the for

Garrick Rochow

Julien, for thanks question. your

part And, XXXX. in accelerate State Governor's think on now, the like? with but the the we're It's right also so zero in feel Michigan, part plan. our look context that mean, administration XXXX. we're XXXX. a at got I of broader But the me plan. and by of even this to that we're net does within And at we X, of reiteration the Biden little an Campbell what bit plan X And goals obviously, also what considering a X this and as does like it's of of aggressive potential looking to for answer, that going Campbell

of I go X. take mean, for ton will come We Right to to needs the at time in we the we're a to price. renewables a is down. what looking in Campbell look storage again, so, the addition feather take it want what We And of this. what in to at the look to want But that is cost analysis those those to shared take earlier, advantage out at continue there's cost right a renewables cost over now, of storage. not future. means into at I as

of to carbon that that in -- end so you sequestration plan last in? come from do perspective. on be when into time. over does to that there's terms going go makeup if storage this, carbon this technology it risk balance. too on out Because we And in feed reliability the a get of capturing the in And How they we It fast how part with frankly, counts X%. counts

not part have all that And affordability, we only three. just It's that making be think so, we And can we and to ensure ensure allow I both we the this affordability. carbonized, and reliability answer we technology. also pace important sure of is on it but

administration the not will for meet but And and able Biden advancements, the so, technology it R&D be only to administration plan. know support thoughts I'll the putting a that had too. out, terms from which some on planet in perspective. is this offer frankly And I Rejji we our and with more And when industry more of aspirations CMS to than aspirations pushing comes to new have the

Rejji. So

Rejji Hayes

only add day one. WAY no couple time, CE to and things. bets. things I Yes. thing story still old but they they respect Julien, with Or are big We two Garrick, over is, the this plan both through there and true a to conservative CMS old and the are of

we out, what And so, will we've made any in presumptions have this not IRP around major be plan, an X.X. rolled

making. not XXXX highlights taking And for that's Garrick million through as flowing through of fact so got just earlier. we're billion the just of bit, RPS which through IRP. this And on add then just still Garrick little again, spend components you really, a it, to that's Ludington hydro call again XXXX mentioned And plan. $X.X execution the $XXX related related wind south that And of in year. some on investments About the solar, the just it's another side, the

incremental we blocking, Again, it all when the approaches, swing we financial is not this for So bets. planning. when And do tackling. big to make comes just not to do fences it and just regulatory comes

So conservative executable. plan, and highly it's a we it's think very

Julien Dumoulin-Smith

associated the stick that's got excellent. of magnitude or apologies, Maybe with residential comments you your I the and earlier from order Rejji, quick. if I range Clarify What with can super this misheard. sales? the

Rejji Hayes

as Julien, serves you know, sensitivities, XX, a memory have if on slide We me.

pretty around context pre changes change X% outcomes. on the year pandemic we've basis. mid assuming And shown an And conservatively, of can what share about And see in fairly a per basis. a Garrick with that annualized you each incremental to so year. as bit annual like. an regulatory XXXX we're mentioned, is it worth residential close $X.XX look residential we'll But get little And would

year again, residential year, decline And back bit pre to so showing over levels. little ticking pandemic of in we're a just

So to the they there's I'll assumptions of And generally if we're on go percent, that's if basis. $X.XX there's annualized let that's to modeling per a but sensitivity. will, -- upside a where worth percent about tune the the -- share an if surprised your

Julien Dumoulin-Smith

Excellent. Okay. Right?

of So sensitivity. and order the kind X% of magnitude is

Rejji Hayes

To no. for to -- don't as the to that that's we I the any clear, ceiling think as Because not could fad. wouldn't in be Well, where that's may go. trend past, a sensitivity. that you the be offer mass I going said teleworking

have number forward. companies number a publicly, think sustain some heard going that are very and of offline of going I of also said a we've anecdotally level teleworking companies mass to

plan conservatively. we again, Now

whereas have you that see back assuming as a back, we we're upside. X% chance residential negative that the come correlation C&I to but see. there's of traditional could down knows start Who workforce, So regard you good comes X%, to to

sensitivity want there. cap again, the I you you. to So don't just I give want to

Julien Dumoulin-Smith

Thank Best of guys. you, luck Garrick.

Rejji Hayes

Thanks.

Operator

go Please Durgesh And today, the ahead. Chopra question next comes from Evercore with ISI.

Durgesh Chopra

quick. you taking can one team. just Maybe Rejji, for clarify. real my morning question. Thanks one Good Hey. just tactical

And, guess, you there? presentation rating You change What some the mean, FFO order adjustments those? mentioned exactly convey were what agency it to I are bet. or to is I trying

Rejji Hayes

Yes. Durgesh. Sure,

FFO both three have know, not you Fitch, as sorry, all Moody's and to tailored both, debt. So pertains computations but S&P rating as agencies and it to

credit So, of example, now adds equity ascribed those. parts Moody's for securitization. debt, hybrids issuing S&P Moody's different to includes been level of we've as for PPAs

which of calculate FFO debt. have ways to all bespoke their they they sort in So

those tailored That to And historically computation what trying investment grade that rating. guidance credit our highlight we've to so in targeting. can a current show we're trying so solid is we're that maintain we

a takes of teens level. to mid you kind that So

the shown tailored reflect computations we those closer I the basis, to it we've unadjusted what simple, high-teens. think historically, keep you wanted to reality just which lead it to. of you to on will gets But

that's what effectively doing. And we're so

Durgesh Chopra

I see.

Okay.

So the change no Or to the and of relative all that bar? you agencies to its forecast rating accountable credit number. just to make of absolute the show too? It metric sort the you hold adjustments, that sort want as the

Garrick Rochow

That's exactly right.

to again, there. be tailored has agency We that think So we solid changed our mid-teens philosophy that investment grade level debt afforded to and I'll rating not want ratings stay should at for all. maintain credit

Durgesh Chopra

Excellent.

color Garrick. catch you. just But with maybe one just coming of other Then EICO maybe chance Thank the And meeting yours on share didn't Biden Okay. quick, a just up might What What from like? the Just would that legislation timeline but look you. to be [ph] any appreciated? get you so What or front. not administration. for like? the industry you, leaders quick there can just down look I out the might had thoughts any come

Garrick Rochow

your Durgesh. Yes. Thanks for question,

engage is here who and Energy John envoy, two Department the McCarthy, Kerry, likely the the Governor part the separate the listen as our event, events, industry lead part Biden shortly. as of So Gina industry of and climate for planet opportunity former the to well in I relationship with is the here also ambitions. administration of administration Furthermore, Granholm now Biden at had

the John around a from gives and he on going And -- be it ambitious it it approach. This sector be move an all by us for development XXXX, to I we've forward. context good And, long, and zero again, And technology development spur it R&D the incentives heard to too from was to specific was But Kerry also that emissions. clearly was all type that a electric perspective. say based increase ambitious then also and these and because the net by in mean, it and is offered takes goals. some zero thought. a about these not for perspective that regulatory market market. would was what approach, XXXX, of sectors XXXX, And So these to net the

federal from again, that I maintain is But a reliability, of affordability, we stood industry well and so, that. perspective do important perspective. believe we to piece, three at XXXX And require an from those can all policy can we're And addressed. the XXXX, more be that. going positioned decarbonization, it's really the where for R&D we Again, to

scale, when And it the the so we it also can develop that our of we for all customers. at economics moves get but technology, so

we'll And for that. industry leaning so that's question. piece. Thanks an important perspective shape And an be your in from to

Durgesh Chopra

Excellent. Thank you. time. the Appreciate

Operator

next Weisel Please Scotiabank. And our go question from with ahead. comes today Andrew

Andrew Weisel

morning, Hey. Thanks. everyone. Good

question the First O&Ms. on

or was million you $XXX impressive. the identified So XXXX extremely so that in

the much are rates, what closed, As just a up on of of you savings? that $XXX I costs, XX, year new typical take $X.XX that waterfall of sustainability in CE negative can as how how that as in call million? would much the a how is terms cost the the follow into about higher annual is into is WAY of and that little page further thinking Now your built you far

Rejji Hayes

Yes.

that challenge million I successful, over $XXX put sustainable. in $XXX XX% of in of our successful very very from really about a they're from million, work, So year, the category

the So talk of me about kind both let buckets.

we way places. We're so just flying there's And this not obviously, business year. changing some do been the

sustainable. and of here will a the things number through We WAY we've And is XX% that those But go back clearly right, which there actions CE business. the will of part it are do provide I continue taken, as you for of we'll a we've create customers done seen that to in this is also forward. as a XXXX. give was was savings term value and there want to our example. But headroom an And we go longer one.

So I'm $X call. have calls if X call to In over a XXXX still here, or in you our we go in about million XXXX, center. it's million back a roughly we center, calls, drop know, X I did here million X.X XXXX period, our contact that calls time

is the it unique What that empower is give just empowerment. do to our this. And of speaks we coworkers example so you and the real to one I'll work

pay out dialing seconds. our took steps team their in process, and customers. subset seconds some took XXX by moved That's to people the that so a from calling it put XX and card That of of credit in in process, information. XXX still And

wants way, it who the longer steps more defect that customer that a to our imagine turns you into a over call it frustrated, the have, get the as to goes they so, pay And takes, they more center.

better that's made cost the out that's better that. type, they're that it how for improved piece. But empowered, So of made our And of for And small. imagine, that doing it people that's because customers, then unique just that multiplying example we've the process, one are by XXXX the coworkers. falls our

hundreds, not worse of to type them. have that so in the cost make to go that's them. savings go right? customers. delivered hundreds opportunities, We're of for we fact, of experience And continue will That's on and and through I live And pay, on back going our hundreds they can

CE how excellence to And WAY. the it. I think And company on deliver more that's our opportunity across from so there's about

successful think in Now XXXX, of and were construct to And our to the case. regulatory and settlement pandemic. question, very rate it your midst speaks I in we a electric getting gas

years, we place. in so, and we're for And we test recovery work got the look at underway, we've as at look

for you cause was, work, And through that December, the or much customer increase, We O&M, number awarded of it uptick in outages, is improved work we our which that's rate it tree by forestry so one and service. see increased outcome electric of million. trimming case when in the $XX

way the example perspective, already you going big that's CE continue customers. business, recovered. improve with of there. just again, we do work improve increase But WAY. that excellent opportunity, so note more the to our to all That's service, picture we we're that forward And customer the for And there's to one

Andrew Weisel

Okay.

if from you. sure the in us I'm maybe Thank are it customers that customers pay and need? heating what bills, bad bills? this on you've in Then got how their compare now seeing an to but -- you're your past to help And into you it's dig you've ability terms got good. of economy? obviously, of help And Sounds a on versus concern, give season does prices their a you up, always update in Can one programs the could seasons? to little deeper some support the gas

Garrick Rochow

of years our for one our been biggest in customer. has This support Yes.

talk let the So about me numbers.

compares sorry, customer days. with was XX%. right XX% I'm XX% I in XXXX XX in -- customers our of -- are our which current XXXX, when was in days, at bucket, So That now, XX that look which XXXX, to current

days. light there. receivables impact kind of in an what is But as from there terms to so it's pretty historical And see, you XX is of

and a payment have the is of We voluntary. in And sure We another forgiveness some XXXX. work started of been million XXXX. we to do closely benefit really, also well a as our $XX by specifically design. as It's foundation, that's one, we believe offs. Commission mandatory didn't put into a which both number provide put invested help, in We foundation and in $XX million that dollars we've to One, moratorium that with made with commissioners so worked -- closely shut that.

continue increase to work. so, And we that

XXXX. In phone at this in to can we General's week. with Attorney do fact, how we're even on I was issue And on this the more the work looking together office

perspective. of need great out bright there Michigan, are time. things are economy that And are look think a those around the will we particularly both continue is during perspective, I this One, helped has distribution got there our of State through COVID numbers, you the that we've a we in ways of from vaccine. But also because occurring performance. so particularly a And And in of Michigan variety lot this midst we the in improved Michigan's if at of pandemic. but

picture And perspective one place go Michigan, you all growth that is sit seen if so And are have and a we've in $X.X XXX that. back people of seen restaurants We Michigan. kids investment gangbusters. Michigan, paint sciences, Kalamazoo, of Many That a an two years, is not from back see here at economic industries And this XXXX But Pfizer support new it's I've new that risk If going we Pfizer. place. this automotive of look economic gangbusters. the this highlight open. of going to been I Kalamazoo I manufacturing where to load, a school. seen similar We've movement us year. place they we're things in just life of on at already of very going megawatts even the the some boards, to that last like look billion I underway. other is vaccine for the the the development in truly four But leading background, and automotive three rich. That's state. jobs. as take to like That's bigger the which states of

and we're I'm the low also a be working efforts in over And that five or doing I've in the certainly years. our pandemic, they're seen about need so, optimistic although what and we midst offers are we're those through that, income last and of here Michigan sensitive that about to there. the are growth four

Andrew Weisel

Alright. could squeeze That If to one sounds last just on I confirm. great.

to won't with to right? Am be roll billion so? a I in You year XX-year CapEx. four IRP the done forward. right? a meant reiteration, five-year that's be after and roll the until plan the just updated a not half upside $XX or is But a forward three That That's of

Garrick Rochow

$XX It's That's $X we'll make to And warrant opportunity. there's billion that events with billion adjustments. $X billion it correct. if

Andrew Weisel

much. Thanks so Okay.

Operator

question Miller go Morningstar. next comes Please from today our Travis ahead. And with

Travis Miller

Thank you. Good morning.

Garrick Rochow

Good morning, Travis.

Travis Miller

you rather? winds of what know going address look address and minuses next. outcome year, at are general the pluses minuses I rate some that next pluses specifics, in and you you the the the might year want you're need but losses When to year that case not that or any from want may you last or to saw to in this

Garrick Rochow

thing one to again, an spoke forestry to of in great number going trimming. Well, tree state is that's improvement. be one outages outcome, the our the I And cause

And the think improve future which on lift. so We is portion And capital. spoke a outcomes lot the good We've also electric a In as work well which that from that's vehicles, customers. approval that our space the great of investments reduces there's great for. to a got in electric on a opportunity will a but capital electric And where of for furthermore, grid. generation. received where our is big, prepare I electric renewable a big our in and vehicles, subsidy some from approach electric case our that powerMIFleet, got about we done a paid much we the perspective, haven't distributed good reliability we as grid made a great that's

-- short to need. can historical, look perspective. opportunity other work, do have do as our is see and that's a and where capital would commission area there. look, you perspective in a IT an can little five-year provide right when work we our better perspective, fleet there's get more go host facilities with opportunity our because that particularly of And of this build We offer cases from at not what amount and plans, of a we And better an so a in O&M to IT, there's fast changing, think business how We're better I and justify that that expectations doesn't a you an invest it From we a positives whole when do perspective. outcomes. historical opportunity out the also there.

for at work more our there's to make with with the the IT we to so, MPSC case better to O&M need and commission staff investments. And the staff, related do a with

And couple that And so know Rejji. of we need examples has it as those over are I'll I strengthen. Rejji well. to a pass some things thoughts

Rejji Hayes

degradation electric equity Garrick's see case in Yes, we Travis. comments modest thickness. add rate The would only good is any thing that, I did to

account Its of deferred XX making go take the so, into And point back. only equity when thickness you tax about rate basis reductions.

day, reform, modest at real. the So level reform degradation. of flow two, generative three the of years, cash sheet end and tax and are tax balance still effects very we're now But the beyond of

some offset we create that. the effects of so like And would that to thickness, equity see to it

make to the so, the point, other is seen case on that that. is And stay where but onus do compelling should we've to equity Garrick's again, time thickness today, to at it us continue work jurisdictions accrete ideally some

cases. in case subsequent that to we'll So try make better

Travis Miller

about the EV then CapEx quick, Is program. program. does kind you kind doubled EV of that's -- that the in Appreciate mean? that Is great. We're that That's, a a lot that sales real thinking let's mentioned it scale say think that. of the And What Okay. in over assumptions your about EV? are minimal? on scale,

Garrick Rochow

a I'd offer, really piece what is mean, So here. preliminary and I this

the this have have moves. this what some about about as important I'd when fleets to a to out four I and make XXX transformers And out level really electric difference to because of be how case, up upgrades excited that. businesses We and fleet. And are continue nice to Because key what two offer residential the of came grows. rate early associated on choice. think programs as you just an we're vehicle a electric scalable concierge that substations is and other expand these to grow the side megawatts, and That'll side about three service help a I'm you're about by fleet the with big put going And talking to marker. the there

I'm And is like. out capital what build so, variable, an it's important figuring depending out on mix the really -- looks that fleet

versus bit better announced of more. and your the And a ahead here, and is we're be see inflection important got able working we be on the to to and go was importance grow fleet And to do more right point that rate on our electric makes that. that's case. there's it a And for of this an in last that between opportunities. to As to understand we some about And week investment point, half we that program Rejji, it when more think fleet vehicle add. got one, trucking ago, GM we'll I capital going that pinpoint electric a to an there point a And sense need hydrogen.

Rejji Hayes

user The the add just also end just of depends -- well. is or only the as thing on day would at it customer end behavior I

charging so of have electric owners have, EV assets. economic is place. as existing And this incentive side that of of the that that. supply have charge on peak element implications well more utilization that on were there off the power direct during feel could would better when to which a provide really in Michigan may and on to capital. needs, to the ideally periods. trying drive we as of And infrastructure part part Well, peak And But compelled, are as the residential if impact out we that program on charge. is that An get customers put educate to

about peak. And shaving so the lot again, a we've talked

so, to longer opportunities, though may capital dollar even And additional to investment best where we that in lead suboptimal term. terms of put think that's the

of And also behavior. be a I owner dictated think this will so lot on EV

Travis Miller

great. That's helpful. the all appreciate I Okay, very thoughts.

Garrick Rochow

Travis. for Thanks question, your

Operator

question Please from Goldman Sachs. our comes ahead. Fishman David go next of today And

David Fishman

Thank here. me Good squeezing morning. you for

Garrick Rochow

Thanks David.

David Fishman

of past to decarbonization around three like rapid But renewable seems net XXXX by more side? little electric how Is of CMS natural gas the or a less needs bit of to on level that just invest kind talked the about five-year that side. billion. the little to bit over gas been the on curious the kind So achieve zero plans size $X kind of years on I'm for we've methane more business the color on

RNG the around with But XXXX net $XX by the bit reach looking something else Or or needs is billion some we to the you XX-year that this to lead in reduction plans more is be it five bit mixed little with accelerating Now five to first in run than in. get for years? time upside. over next methane rate zero whether time little might maybe should order in that that

Garrick Rochow

David. this love I question,

pump not coming what. here I week next and It have be and this does couple in Michigan. week Next I'll And the you negative up. And zero say, and key electric its keep to at tell should going I one home. one and day,

with And And to keep house fact XX% to so, Michigan's of I've supplement gas be on resident count got a gas. in able warm. my natural

And so what I ask Because about the so not really we're decarbonization, that's think think And doing. glad only its thinking gas I'm when the important you electric we we're exactly question. that but business.

our that on help bit that going there's more tell there, plant out plastic us you the programs natural add have our gas saves across delivers in because continue XX-year you gas, which pointed These that it. exactly net XXXX. which have bit is five-year I'll net represented renewable will That zero. have have which to critical move win as all add a to plan, get in our opportunity forward, an It's are you net stream. system, a by plan, and we get and XXXX. affordability, provides a more metal that'll great. decarbonized And XX to in efficiency our the plus methane XX-year, We that of incentive business. do little we to what the will natural plan, money. zero that. win. a get we energy do by gas all above in decarbonization, that to within to out for can grow, are We investments win as years, old decarbonize so, we which are opportunity system, out for renewable, It maintain across those And we're we on taking our you win some got zero ran replace materials so our little distribution to them gas. it reliability, what, invest Also, customers, and for natural We've we safety helps with old to

I'm you ability go the won't them the a think our have in home equipment. because And through technology now We I there gas to all from we will business. little envelope spent investments spin on cases about we XXXX lot. a expand have can bit will right even there. that those a getting programs And away opportunity in target. But your yes, we more net-net And deliver questions. future thing

David Fishman

And on one quick that follow helpful. very Thank it. up Got just one. you

just of dynamic? RNG be into be supply that adding sources RNG charge maybe that owned system with of be much just mostly taking whenever Or based, kind tariff an adding that customers? pretty the and the that So the kind you'd You additional how work of the kind associated RNG right? are would it's and the ownership would separately just with

Garrick Rochow

Yes.

and our system, at of And it our we like do. to on opportunities. be as efforts add our have but it system some different we'd look put work we'll on got gas that'll cost supply more So We've we'll recovery there. part be

have I of a customers need sustainability gas think their targets. opportunities specific renewable think to part as individual who there's about natural

think customer as so I well. would consider we And there's programs

David Fishman

more on just then can regulation. quick one And Yes. if I

ratemaking case, the the some MPSC mentioned I just future the based look like I maybe you think it's right had in for what I the looking based you think just know, performance what you last renewables at in relate is for color now. on commission and part performance that could performance looking But making metrics to rate rate Michigan? obviously, curious of was there, any based electric have had

Garrick Rochow

goal Yes. that achieve The the everything grid. carbon in our to neutrality zero means by are you're is of from Michigan There looking and number XXXX, a referencing the to work Governor's net that's activities actions what are that at power it XXXX. by interconnections

a at. variety And of so things there they're that taking are a look

staff be would And is continue so just And for based of ratemaking. very in some it's to not their I offer it and frankly, approach. updating. -- is thoughtful this to our of But performance commission example, it part

metric. performance in in call is the digital we already have Most center our metrics That's nature. of things our communications of and as a part activity of One are average you shared speed with our I most that's of place, of answer. earlier

not to in answer period, speed And so time average relevant. measure really today's it's of

getting part thoughtful the of and those. around this so a And too, to wells is updating land

where and still we And be thoughtful to in will continue are, believe that in commission approach. so, currently our That's again, I regulatory it's construct development. and

David Fishman

for And an you I rate guess, metric. be as rate And just potentially every that? of just or that of you and target cases, the associated average have penalty example, of that, with you'd a have every gauged against with case maybe or be speed would incentive set answer a kind might idea

Garrick Rochow

too and our have Well, answer. already performance which a That's average we with the and work commission we of already on. performance speed metric, work staff we measure with and

right looks work that going it's know performance now, -- mean, more a work of so, avenues the just don't on perspective. are We power that's like -- rate of what and this lot simply there's and grid too I really soon to this underway. it a based from is there's it's groups tell. And making

David Fishman

Appreciate a Congrats you Thank for much on very your time. Okay. it. here. great

Garrick Rochow

Thank you.

Operator

Please ahead. Patterson next our from And question comes Paul with go Associates. Glenrock

Paul Patterson

you How morning, good guys. doing? Hey,

Garrick Rochow

Paul. well, Thank you. doing I'm

Paul Patterson

quarter. I $X.XX the increase The that this. that Was quick I fourth and particular in really emptier. book apologize there some So Interbank anything happened? On in missed there

Rejji Hayes

Yes, Paul, this is Rejji.

delivering. they XXXX Now kind just of of them and story throughout executing just

of nascent often So volumes the we year. the delivered down stages and April after slowed throughout little loan but executed for pandemic, and March are basically, that pause a just then in bit saw origination origination that brief they

in what's that$X.XX So that's reflected uptick.

Paul Patterson

then great. And on Okay, eight. slide

savings. I what base to cost touch wanted just estimated sort there's of So they on represent.

the get what it's was $XXX think a to I I on included, I savings. of if and being why I And wanted that of to Campbell, by estimated million, you don't since see mean? know policies securitization Commission. But wondering aren't Karn So with clear -- sort just as can I'm like O&M adjusted not also really I and those I'm sense

Garrick Rochow

Yes. those. I take can

the Palisades $XX with both answer look at So MCV, priced respect and per when To give the energy to related quick they're both PPA hour. you capacity, you $XX megawatt savings. and around to

to replacement looked relative we so, costs. at that And

capacity nuanced. about the about million bit And price more in for that year. that worth effectively embedded specifically, the worth down, cuts the That's palisade MCV XXXX. post just a It more so contract fact $XX is and that's rate steps in $XX is run per million. half,

of savings for the those two. that's the essence So there

respect make want I just to going. where with years Now, you're that XXX, with I early we spirit just to Palisades or there? respect tried to few understand ago, make you're Is the to want when of securitization, a sure sure terminate to I what referencing

Paul Patterson

coal it about out? guess, order for I'm the December. savings got maybe stuff wondering $XXX guys in was being that in adding what Well, there. what think might -- -- And aren't there called you're some something you wondering as why is, that seems you they And the they like they those securitization out as they I a was just not I was the guys it. well, $XXX million basically was basically in calling I'm or was $XXX in -- million where saw was savings thought basically

Rejji Hayes

the going? about clear, of securitization and you X so to correct was Karn to about you're very specifically related order Okay, million be December $XXX Are that X.

related are be cold could beyond above we we've eight savings the good experiences, that know, There so savings enumerated have facilities. you we and what quantified. on page O&M have closing And that additional

in million, based that's we've And or fuel obviously history, realize there XXXX. and the come that if Seven Classic in additional with what are on the a side we'll otherwise, did obviously savings we So up XX Karn potential upside that for we but O&M we're at the just the and related order solely December securitization X investors, the now, and X. to savings benefit to And costumers of that reflecting got that closure.

Paul Patterson

annual these numbers Are or…?

Rejji Hayes

are These run rate.

themselves time So are but I or episodic. one mean, just being we ongoing. don't we the episodic, be expect anticipate these events to these

Paul Patterson

you're that observe maybe that And am mean, on up, mean, this customers. I It conservative, considerably this. so this. like you're these bringing I getting cold be go I to might correct that? that looks savings flow in that will so seems the obviously But you just savings this, back more from guys

Rejji Hayes

couple things. a Well,

this plan events. related for is So these And sure. just remember, we to conservative always

So potential related the Karn Palisades well retirement, Campbell savings. CE all excludes This in XXXX, the WAY the and X MCV. facilities, as the as X

savings not of that slide. our extent think quantification there conservative enumerated more. come than business. if the do solely ambitions. we we certainly page are very the deliver rather, again, these realize our That and are say is in we amounts when of We $XXX you these can are So we'd But is And enumerated eight, the on know within the where our arrive. them and additional items about we And I'll surprise the to downside. we'll go how upside they million style,

Paul Patterson

Awesome. Thanks so much, guys.

Rejji Hayes

you. Thank

Operator

And with our comes Keybanc. next Karp from Sophie go ahead. Please question

Sophie Karp

Thank guys. for morning, you good Hi, taking questions. my

So a most so equity of But just the I have pensions. guess, if to I on. on made the quick answered. questions been on horse maybe follow beat up dead I don't and want

You the mentioned that funded. fully plans

market how the the how and How needs just I period? in potential factor the action lot I equity that contemplate budget? Thank grant think years five over guess, do your you -- you. And does that the the a during does general next helped XXXX. into contributions

Garrick Rochow

around side. thank you not years Yes, similar Sophie. to our income I the up a of Appreciate the on over us to promote but activities the last question. statement for for flexing the year, couple last, where really just opportunity mindset And our

also to that We cost operating OCF. have by And Cares choose last upside flow year, flex us little pretty from Act we saw bit allowed side. performance, largely to driven the the upside some up cash on good a on

good pension. $XXX the allowed which a were discretionary January took work fund we pension of million fully last late the year, so to to of that's contributions, to most we about liberty us but portion put in QX. And did in in And

I don't embedded plan, And in certainly certainly are don't we the there we minimis. any anticipate if any anticipate five-year not so I would -- we they're today, think involuntary And de where contributions. sit relatively say, any

there think five requirements be so, And there years. over really next should today, then, we variables. And contribution clearly the like we are sit where

So down. seeing come rates if discount you're

that under If performed you additional contributions. underwhelmed could see performance or asset require

today, So where limited contributions where good amount plan. the we over about of the we sit courses lack, five-year feel

So there's every embedded year. have variables equity our impact assumptions. and toggle issuance again, no these real in we But material recalibrate

see the the fact what next couple So that year. pattern looks we'll over of Is that like helpful.

Sophie Karp

very And you. helpful. it squeeze Its last Yes. quick. may I super one in, then, if one Thank but

Your OCF versus -- loss say. guidance like down would XXXX but million, is not by $XXX XXXX I about million $XXX

where here? most primary driver during recently something got else that? missing kind it Or I'm COVID rate the is is the that So, is you of situation of

Rejji Hayes

Yes.

just very this, offer me to let clear, So be Sophie.

just been for standing precedes and an and long So, planning the what done have we've statement financial me we on It's EPS. this an unlike not standard Garrick. from OCF a is, had perspective income we have

prior not have We OCF guided the off year actuals. of

looked year. million we or have increase from each budget $XXX said, guidance. provided prior the year's off prior We we year at guidance just And we'll by the the directionally

And and for this excess we delivered so, again, well that year year billion. last $XXX $XXX a of then guided million beyond in example, obviously that. we billion, $X.XX above And to

So $X billion. some And the what benefit. do under a were, that to was as has that again, lot as just which cost performance of is down related well against yes, from Act actuals with CARES

can from And over next about so, operation in of five or related and $XX just the of any that around is five what rate from we regulatory perspective. or I or again wouldn't were years. We're all we just deliver conservatism vintage that But which thinking that excess of type going generation billion actions thing anticipating view in over flow I billion to the do that prior itself as annual $XX billion. cash you years is $XX over OCF just touched growth we're seeing an

feel we cash ability deliver. and good the any our about regulatory flow its operating of of not outcomes. On result a So to

$XX the challenge, about de million, because I think staying in you'll But settlement gas operating only things. its relative grand of scheme million out. the is cash we're minimis the see $XX of think in flow again

Sophie Karp

Appreciate you. helpful. Thank Very it. it. Got

Rejji Hayes

Thank you.

Operator

remarks. I'd it turn final Garrick And concludes to for over Rochow gentlemen, back this like ladies and to question-and-answer session. our any

Garrick Rochow

I I'd call. for for we safe. Take hoping a be us I'm out safely year-end And earnings thanks on virtual our And you. meet before with Rocco. role can today to be back connecting look over. and care joining I'll everyone like Thanks to face-to-face the shortly. years forward

Operator

this Thank you presentation. today's gentlemen, ladies and concludes

day. now may and You disconnect wonderful your lines a have

CMS Energy Corporation 5.875% J (CMS) 4 Feb 212020 Q4 Earnings call transcript