CMS - Earnings call transcript Q1 2021 | CMS Energy Corporation 5.875% J

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Operator

Good morning, everyone and welcome to the CMS Energy First Quarter 2021 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 a question-and-answer session. Instructions will be provided at that time. reminder, today be beginning a this rebroadcast Just call conference at Instructions] there a will of [Operator XX p.m. through running Time, May Eastern X. CMS also is Investor This webcast section. Energy's on Relations is the website presentation in being available and turn At to call Mr. like over the this would time, I to Sri Maddipati, Treasury Relations. and Vice Investor President of go Please ahead, sir.

Srikanth Maddipati

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

I'll Now, over Garrick. to the turn call

Garrick Rochow

Sri, you, appreciate for joining Energy. CMS you, and everyone We in interest your us today. thank Thank

that enables of and you delivers thesis we've year expect I past change have the the the with grounded to leadership reemphasize, excellence months, simple Over delivers which of the profit And the asked people, been you our investment our This my for in and many to our in have proven to changed thesis, opportunity you share Many meet and bottom commitment of have what line CMS to and all I virtual road is planet out. want triple come leadership. on Energy. year stakeholders. five had have thesis the under to from investment not will

our methane performance for to Looking in ratings leading energy earning and clean progressive amongst with our Furthermore, we as are are forward, committed top-tier integrated ESG peers. our recognized plans, are energy plan. which supported net-zero investments our current resource carbon the emissions by transformation we clean top

waste We our operating I mature this lean love eliminating improving and our Way, CE continue performance. to industry-leading system, the system.

crafting have and business improve several Over left. I it, I've sustainable horizon, Today, which I've we pedal gas a we it, have worked deliver and X.X, of and use employee the seen plenty next begins cost years, it CE in drive digital. past Way Energy, leader to of we CMS to performance. across engagement efficiencies, what used and are greater position the the analytics call layers in automation as

regulatory that rate to return after our customers Another deliver you, we our with XX%. key a adjusted all leads no differentiator top-tier sleet is construct X% to rain, At ROEs. Michigan's our This premium day total forward-looking We snow, wind. year up provides cases dividend, X% conditions, has in of XX-month CMS This for we investors, of of never all it, different. to get EPS combined constructive wake quit. CMS and Energy, is every never in And Energy our growth for X% shareholder to quit.

quarter, first fund performance. we $X.XX and investments customer significantly, per last needed This from up Now, share. delivered cost is primarily the the to from revenue into adjusted get year, In incremental sustained of let's numbers. earnings $X.XX

up As dividend our X% a $X.XX, full-year reminder, last is from year.

and communities to to of planet, we the share We our of $X.XX to are CMS and bias midpoint. are co-workers, to our earnings to as our per X% guidance growth commitments. the the serve, we we delivering our our long-term At of committed the to are Energy, financial our XXXX dividend $X.XX earnings reaffirming X% year and for with adjusted share per promises

many of proud this of I'm our leadership often of with the ESG space. During in up. topic my discussions you, comes

remain We our a deep efforts and top-tier is well Sustainalytics ranked ratings. to by This and a top XXXX. commitments quartile it trend. commitment MSCI continue enhance began by global company We since for being with utilities a that our AA-rated are have before recognized was

to emissions XXXX most the the among methane carbon and by commitments by in aggressive net-zero XXXX are net-zero Our industry. emissions

approach we a industry cleaner is and communities. energy economic honor our co-workers, we critical it retire As is on units, legacy as the address our and the future, impact contributions of our service that those well generating as

one a and Karn co-workers with equitable continue our plants seven have began as units began our proud career shaking service. honorable communities, retire way drink generating XXXX. plants, we playbook both the business. our built the from for customers. the to our generation of provide stairs the I X Now, of energy That We our of every the It who of my climbed coal and men will walked have and with side I'm retirement hands, And day of for coffee every I retirement of with cared the success. XXXX. X halls, women, in work on our we work in the these for and

Our something investors. future. look leadership stakeholders, the as This including track in and this is to proud will success and ensures of space continue we our we record all I'm for

a of on ultimately across you, ESG, culture has stronger. of for many service, been of Every our I co-worker focus E record the our we our day, of have with delivering all up service three. While communities, my heart XX never customers, believe show our investors. In strong a single years our and

Work Military our Vets top it's values for Our why for our Best are industry-leading across Times to by Forbes the we for utility thriving as Employers ranked the by employee as company recognized is Employer safety and performance, engagement, Best and in the country, And were LGBTQ quartile for anchored by Best culture Forbes, we Women, Index. month, number Best earlier Equality this one Corporate Diversity. Equality in Places for

confidence ESG should and to the record long performance our customers top-tier and commitment continue you provide leadership, track value will Our with for deliver investors. that

renewables in our Turning with growth I want several announcements. updates. continued exciting to recent highlight to

our Project recent next Heartland part online return. be of We I'm XX.X% which renewable of tranche December capacity, will solar that standard Plan, earning we received which the of announce in new are the of projects pleased portfolio megawatts expect XXX adds nearly to share This come Resource of online commission project March, as Wind to year. in our approval that a through our approval two first to XXX a XXXX. new we pleased adds current megawatts for Integrated in also of

come of solar a X,XXX megawatts. the XXXX IRP, We total evaluating megawatts XXXX. the of for expected XXX second online In another current are to third in in expected tranche, tranche of of solar XXX come megawatts online to our

IRP way in a popular meetings details, topic while has reliability in next proof sheet. been as Integrated transformation. and leading still It be of accelerate in of for healthy Plan and affordability the demand maintaining our with fleet, decarbonization finalizing our that June. It are I'm makes many of We are our we on And focus the our balance track while to to you, file side investors, and our a customers ensure IRP. yet are point excited will that upcoming the Resource we another next add sense energy this resources serves renewable the and a for clean

On transformation in data-driven. our The ability our energy visible net-zero our carbon XXXX. transformation see our plan will decarbonize includes reduction will emissions of Slide our to to fleet. emissions – clean meaningful of X, remaining energy coal and plan part retirement clean you of as of by drive our achieve As part both carbon

about past been quite the of business. bit asked I've Over our months, few a the gas future

tails and providing you, and affordable mean I've system As reliable heating here. critical is gas shared our on to with our But doesn't sitting Michigan. many business here in of we're

fact, we working In decarbonize to actively our gas system. are

Now with the this aligns announcement very administration. from the well recent Biden

goal. we replacement plans way, vintage by missions and of Our reduce well to the services, approved is which first is commission accelerate methane the step and decrease achieve emissions, both net-zero fugitive our will mains our under methane as

carbon Our renewable or decarbonization replacing and to put also plastic which most the system, efficiency decarbonize leverage future. plans to agriculture. mains difficult piping, as clean reduce such other on vintage services our By our and to gas be in will hydrogen with will energy positioned sectors, molecules we deliver help customers natural usage

As the to system, remain we and generation of people, planet and would fleet we grow and against line our committed renewable bottom portfolio decarbonize our triple delivering profit. gas delivery

the decades. Rejji, slide. I this to demonstrates with to nearly Before for over It I end two want performance call our turn consistent industry-leading

consistent, one change, Rejji. things to predictable deliver. call marking years as in different, and performance. turn that, we financial have XXXX to stays I'll XX much consistent, no out over year With of will we thing this. will be As the year XXXX continue and proved

Rejji Hayes

Garrick, and you, everyone. morning, Thank good

$XXX per for million Garrick quarter we XXXX. report share. pleased to As are income adjusted In first net our $X.XX or of results summary, we delivered highlighted,

better efforts above the $X.XX rate was cost quarter net driven For and weather relief, comparative XXXX investment-related of EPS at our purposes, results, first QX from performance expenses, largely our XXXX by adjusted sustained utility. our

per for and by were at XXXX Our of of due modest XXXX negative positive more high experienced EPS origination the enterprises XXXX which a EPS and and $X.XX our has year-to-date key From of volumetric to elaborate waterfall better given led item variance. the slightly half drivers was parent the drivers quarter it contribution other meet as absence chart and share electric reduction XXXX absence first performance of and our to cost XXXX a the of year-to-go the share. respectively. strong weather higher perspective, are detail $X.XX planned lower QX in down This than gas XXXX regulatory per our $X.XX Slide the to one-time related versus while our quarter we per XX achieved that weather the first the the EnerBank, end as warm second guidance variance gas normal constructive on of is guidance XXXX our on the tracking for the historically major been variance toward estimates in has in And provides rates latest segments in winter costs of than been To its and share businesses, of funding has year positive has more planned seeing to for by led offset on which the below range. $X.XX sales, of highlights The weather year-to-date performance, growth of period-over-period. XXXX. outcomes exceeded in to-date, financial

estimates our as funding relief accelerated such rate the and deferred XXXX our is also net gas and of taxes, rate worth noting our costs, financials reminder, settlement. of investment-related costs. depreciation taxes It stated are amortization amortization, part order of a property reflect XXXX as As that

orders. rate side to customer XXXX as initiatives around key versus reliability, our in our and fourth the operating our and fund safety, budgeted during call, expenses year in noted maintenance On alignment and decarbonization with quarter increases recent the we cost substantial in earnings prior experience

exclude see, in our from you That above as largely remind mix $X.XX low to the electric of at balance aforementioned pleased our the in The XXXX, XXXX though the XXXX, up about as and to non-utility class, planned driven And that quarter customer. are do we margin QX segment the the we productivity I'll materialize first sales of As we're said, total year-to-date expect large the margin attributable CE exhibit below to slightly that per and with rate can drivers the increased our year. residential bulk Way. to our cost performance well you quarter which of report of X% is XXXX share X% increases by planned, continue the down seeing in I'm see spend performance sales, to later first favorable sustained higher XXXX. at O&M versus one as non-weather

illustrated achieve are to this optimistic nine we ahead XXXX, look on of the to the our we path about glide cautiously full-year guidance. EPS slide As remaining months

share for third always, and to the residual of in of to and estimate the the execution above negative incremental which customer-related quarters pickup XXXX. comparable any the in an operational this normal continued variance normal we is we not actions. MPSC of spend $X.XX projects, As in XXXX. weather $X.XX versus per relief, equates and per plan period our the further as The of weather, And which translates case of impact which of share experienced per share given $X.XX rate subject aforementioned to second

fact non-weather and the start utility well we We non-utility have segments. All our year pattern to our for pleased with be to up down the in, the needless and also in strong prepared course flex And our assumed say, XXXX. remaining or the usual we quarters the positioned over three year. are to the costs conservatism will as are of evolves sales of

at our and XX in provide As out our utility, and benefits customers, our investors. the five-year customer we of long-term, communities $XX.X billion the early the investment executing stages we on we plan Slide serve look which for over significant will are highlighted the is

have vast reliability we a energy earmarked billion is for of investments As of $X.X safety, the reminder, XXXX, which budgeted majority in clean over projects. and

on the XXXX key recently page electric right an and related are summarized filing. We in for of test investment which other the thus details rate March hand far, are the side priorities enumerate among on our that filed to track case the customer year,

components the order taking the expect a by year. pride end out customer and we from commission of hand and you our have We successfully managed years, the on several several key behalf XX take the our for investing customers. capital of the to record costs intend maintain our next structure, over significant we as have gas of the cost affordable to that the way years, substantial while we on an investments which side we left in system over prove track the make of Despite know summarizes customers, sustainable electric great to The it. Slide past in bills

XXXX, over that by while X%, fact, investing bills, from roughly in as XXXX utility we In utility of a billion timeframe. customer reduced capital of the percentage wallet $XX to

unit estimates conservative future cost of roughly we contract expiration and over headroom retirements in order $XX savings. to approved our supply years collectively for our our for savings five $XX in will the meaningful power create MCV to which power any million reduction customer provide have for planned bills PPA another the recovery look the as recently cost ahead, of you'll savings The the event-driven amendment savings, the note, $XX the potential should of our several potential come. As agreement revised generate per we Also with planned million aggregate, coal fuel million initial amendment remaining MCV savings of substantial And cost which proved will of provide estimate $XXX of actionable will highly in million purchase opportunities, approximately and investments. of the savings in commission's March. exclusive Palisades

corporate final about tool its impact if and policy delivered our are savings unclear, including other executing end, Lastly, potential productivity serves details to plan. minimize we to effects the the generated and year which $XX potential mention offsetting proposed our evaluating Though to roughly our trust the to remiss of through CE I'd being tax at of and in this that point, asked million that financial credits customers, plan. leverage long-term the To Way impact will be remain we didn't Way, proposed, that changes many O&M as as last and are our CE the and I part also opportunities, cost capital you've the planning. while annual tax legislation intra-year critical potential a of reduction

with With and to potential on cost we unparalleled headwinds. our is our investment driven robust several our do the any and we've operational, backlog our we for objectives we you, next that positioned record over future. customer the to by As coupled we'll move And years for management, it ambitious, said construct, are on top-tier before, that, workforce can worrying are a regulatory with foreseeable job confident manage Q&A. the deliver to and customer engaged uniquely highly track financial

lines. So open the Rocco, please

Operator

you. Thank

Instructions] conducted Today's Please question-and-answer first Partners. Jonathan will The with begin ahead. We from Vertical Research Arnold the now comes [Operator will be session electronically. session. question-and-answer question go

Jonathan Arnold

guys. morning, Good

Garrick Rochow

Good morning, Jonathan.

Jonathan Arnold

on we you about in one be to on bringing Are talking will on might IRP, significant an of I the of sort have be into Good that you for and XXXX sort net-zero accelerating appreciate decarbonization. about sort willing you to sort mind? how acceleration of mentioned timeframe example? the of talk morning. electric, Quick Could Garrick. comments the focus

Garrick Rochow

I laid Well, objectives thanks all and objectives, for would We've is your all out them important. equally just those question, Jonathan. of put those

the listed And but that and reliability are so them is the there one, is affordability decarbonization within of so rest and deck.

recall scheduled that is in in take for Plan X, going had current XXXX X, the You'll on retire settlement we we currently to to were a the at Campbell which accelerating XXXX. Resource look our Integrated from potential

And exhibits so like and And throes the And of Board of doing in we're put here. too that we're with May outcome final early just this Directors Directors of some I our it of our of completing testimony. We'll and part our this want we filings in do get to of would ahead I large don't far sharing be Board here. evaluation. way, as the

That's true. we're targeting and the we sharing are look objectives in our reports. So forward what to QX more

Jonathan Arnold

And to just I in of on number Thank of enough. mentioned just big than maybe then, EnerBank? range, tracking to origination you're for seemed there mean, I Fair you've high the on other Okay. obviously, anything – ask unusually quarter. on end Rejji? it Is may but that. going you strong the the first sort now there

Garrick Rochow

Yes.

As you it. chairs know – yes, Rejji

don’t why you ahead? Rejji, So go

Rejji Hayes

Jonathan thanks question. the for

one the of so I think and you bigger it's a really hit things. drivers, of couple

origination about four saw very nice You've say pools, carried on. loan talked with this through has volume And year, growth. swimming we got quarters really let's origination we two for good and HVAC a that and systems, vacation bid strong in last

global also a strong pandemic And So would really latter as say of just economy the March. origination to because, have weak started comp QX got you of you sort recall you've of year, last growth. in in part impact I the the

year so that And picked some up. of last of QX

that We also earnings have loan a part do growth. sale, of as

and that to this growth. we've own that XXXX. is to they so in our favorability don't talked the also XXXX about Now, relative QX fund but bank capital had of always we fact And anticipated to all plan, this unplanned. their the We the allocate have offers

strategy. is certainly sales that of loan so And part

sale. of really growth loan So coupled with combination origination a the strong it's

Jonathan Arnold

quantify where also that piece perhaps can size how and relative about much mean, was was? to talk book in I you it terms of maybe leaves the that Okay. maybe where

Rejji Hayes

upside prepared of other QX to origination growth. the for from They gave the XXXX, relative loan half and sale roughly remarks $X.XX due to half the about of about my that was of

And for for each. $X.XX looks to say about So or book I'd each $X.XX $X.XX the good. still quite

reasons, talk still For volumes, the we of annual around all-in. assets they billion about but competitive X origination don't are

Jonathan Arnold

Okay. it I'll And leave Garrick. Thank there. Thanks. you,

Garrick Rochow

you. Thank

Operator

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

Garrick Rochow

Hi, Andrew.

Andrew Weisel

morning, Good Hi. Thanks. everyone.

Just conversation maybe if on there. start continuing EnerBank the I'll

year might strong last other a the just only when I level? will the that of many swimming thinking to sort return has moderate. so from that more growth think normal are Rejji, on you There latest your continued. said trade What's COVID be words, origination installed. to In pools eventually

Rejji Hayes

Yes.

a very good question, volumes volume we good to into again, it's high feverish quarter. going second see but we the applications and XXXX, may the in and we saw continue not So see origination

installation. I'm trend that So a non-cyclical That's any do swimming time And it's also HVAC just do resi solar and good abate convinced pool, And fairly organic well. that will as not there not is growth there they also product. they soon. still

happen, there strong. diversification, seen haven't doors. portfolio. in And let's or loan and signs any do abate there pools again, Andrew, point and solar, that But kitchen resi good that are they does good the HVAC at we will and then that if we'll say, beyond, decent that, in windows Swimming there volume, certainly is XXXX is So is quite anytime soon. again, also

at is to of non-cyclical for delivered out going now. our thing the decade, over some very we've And going for sort they’ve to this time from a perspective soon. that's be way die in now been a So and improvement home not anytime

Andrew Weisel

for they full alone. that of the that mentioned quarter an $X.XX the trending you mean, given the like And in Great. earned I to kind Okay. sounds year. high end it's understatement

there to So CMS Or this – the might is put rate what trajectory? as there limiting it the of slow are far growth you sheet that let balance the as down factor? a limiting ways be might way, factor the me other the elongate

Garrick Rochow

Yes.

be So let me clear.

contribution $X.XX on plan. of beat strong was for was the about quarter a and though XXXX that a that plan. they penny So They even EPS versus delivered of QX were of ahead

pretty front assumed about in in end trajectory $X.XX a earnings XXXX. we loaded So

rest see them plan. of is see slowing beyond there as to opportunities it's we business, kind over try being just to the $X.XX little of time. and avoid by And the manage XXXX of like $X.XX. if of bank so the should bit them we do where the say of part within But to and we of There a pull the to seasonality other I we'll range wouldn't do rise, actively well it how look derisk business. potentially We'll down. business, that. the at trends are some we’ll levers due as to still It's the it,

Andrew Weisel

Are quarter obviously, about Great. year. more strong think benefit uncertainty in last well reinvestment it you just this Okay. typical your And then yourselves the given start and CE with around a year strong really cost already had just Or and year you when to a for is you too beyond? next Way, broadly, position customers year savings, the to mode early summer weather?

Garrick Rochow

that I'll alive to the and tell Way and work you continue we CE is system. well,

As and I employment system it for comments, love what for management, service cost engagement not shared co-worker truly I and and but not my means empowerment. customer means it employment, that do – improved only what in

some in addition it our we it value all cost work because customers really management. time to So nice provides for the

opportunities. derisk But part they the years. themselves, the your here. our year future we're quarter question, under get Should We really good the benefit well for first you shareholders continue, show that's know, way. of and So our Andrew, about heart here to early we'll when to for of we'll the feel reinvest there’s and the to the as customers of in

Andrew Weisel

All right.

good. Sounds

Looking forward to the IRP.

Garrick Rochow

Thank you.

Operator

our Jeremy JPMorgan. go ahead. today next And from question Tonet with Please comes

Garrick Rochow

Good morning.

Jeremy Tonet

it you hydrogen find if the XXQs comment plans? you can enhancing focus the timeframe expanded type transition do for way its think especially plans CCS on on into think IRP what as find and way the your such upcoming bit do you more CMS? how economics. of was this credits, impact could they I But Could or make into sense you a could thanks. energy wondering Hi, tax good morning. Hi, could with

Garrick Rochow

now, And We Well, just about what it we’ve the transformation. a bigger and programs on plan and outstanding And that customers. transition. in our been here. any end way we're particularly our close. offerings talking energy get of remind Resource decarbonization to first to there our leading it hear one that talk to that that when you'll up got it energy CMS, call about But than shows a certainly, aggressive peers years current of well. we're there And response of are But Plan, that plans solar, X building retirement our would by that's Resource X is of for Integrated with say, efficiency most out one the a Plan, not unique solar just you the about ton we're Karn as the you, a I progressive of XX% gap and and megawatts I'll Integrated and X,XXX XXXX. you demand right out the to in energy XX%

both a in hydrogen, that in in comes advancements perspective. as to technology need comes from capture, carbon does comes that of there affordability that reliability, lithium-ion be terms So as well

And so of is the needed. above all

tomorrow gap the – tomorrow, going be again, Management continue funding so, for close fact, And of we're a call Office Department just of in to type particularly R&D and to advocating – Energy the years. that even in with we're out and I'm with on to to Budget

add Rejji, they more might out sense the something XXXX, are we'll utility But And regulated in as And then, timeframe. to gaps. have so on XXXX that within it some to the you of again, participate, as well. makes close those

Rejji Hayes

basis the a constraints more I some would choosing offered technical particularly obviously Jeremy, add to just one emitting tax on potential for with incentives proposals the I early applied incentives. the the renewable we've utilities been in around refundability, which comments of the to and bill seen only really carbon of Garrick's potential zero is on for widened we've it's execute flexibility these biggest days, well as mean projects. encouraged is part but as some with versus of on tax ITCs resources PTCs then

effective if that so us see there media customers. advancements of we a to in front basis And allows do good obviously solutions cost more for the

there. So that's but early encouraging, days obviously

Jeremy Tonet

you Got kind as share it as proven thoughts technologies, by owned there? us how then just for CMS it. could of could of your versus to PPAs, That's far wondering the proven versus And less any with maybe very much frame if framework helpful. just when targets could us kind be the you directly comes

Garrick Rochow

this proven me perspective. from a let Well, offer

One we're IRP is of next the within that this things considering reliability.

And a look at condition. load our We've the of and of the so we in weather that. of reliable particularly do to continue that again, loss events And unfortunate system in every going sure expectations. we're is backdrop Texas, history make that, in we'll to got

so And looking that items go looking and are not with grid, mean, But more give doesn't question to you going Rejji, we're we're to I'll you clearly forward want when at the may to R&D. that out to proven the there, it that just comes know, little putting on of bit But context. reliability. I a – ensure to want to add don’t we but equipment

Rejji Hayes

to. happy be I'd

did contracted. Plan. with pleased first to we mentioned, we the the solar Jeremy, say in our current on Resource commission the owned the as the we cost of Garrick saw of attributable Plan, the over looked Integrated And I'd Resource approval we So recently remarks, at when his versus projects from tranche the new prepared opportunity Integrated average were, the life get

hour cost levelized solution. megawatt the we of energy a megawatt $XX low hour saw and for $XX on per of per contracted so of high basis, own for kind the solution And kind

sort of that and savings value residual then operational other time. excludes over the and that owned benefits And so kind of offer portion could

longer to solar But new six build again, opportunities, we're the be several think the good about there of I couple term, IRP, do it's thinking over next out days the in the we could as so early own of gigawatts that And context think through decades. mean, more. we potentially

But on tranche the So first that. to look encouraging. come pretty more

Jeremy Tonet

it. Got

So say fair CapEx what there on about upside here is to based talking you're it there? be could in IRP

Garrick Rochow

long, in $XX out of long track organic and to a needed $X investments and Jeremy, got customer $X billion long, to electric XX the billion opportunity state, renewables, there years billion gas decarbonize. the we of in record and

lots you here, CMS at again, our know so And Energy. just there's here history of opportunities

Jeremy Tonet

it. Got

last if one and COVID Just with I reopening. one, could,

if a wondering bit stickiness balance the have year? see you expect the trends of you residential that to territory could on load comment and could over Just and seen in degree service of

Garrick Rochow

larger to Rejji and first, it back some state-type going come then, to and I'll I'm turn over topics. to COVID

So why you don't Rejji start?

Rejji Hayes

pretty materials and of in the the the saw trend first we quarter Jeremy, you sure, good a of Sure. over morning. rolled some this course I'm out

residential my X% As QX prepared XXXX. of remarks, versus up I in mentioned

at And in both year for We're smart Michigan. up a the And continues industrial, of our I which in of the residential, X% of counts we is still the which we've as talked not bit commercial at to resurgence most to has margin, for around seen meter expect is do over the in think in about X%, case was down we've April the higher be what plan. so bit do pre-pandemic the levels data, of be pre-pandemic segment, we've ahead and seen terms down past. Commercial with that levels. little stickiness quite in particularly will that But course a about encouraged mid-year. there still with residential also which X% of

the we're And And also residential me, fact period general. the seen XXXX, less I little account so versus some in still Garrick good. we've of seen up these we've economic in X.X%. details, same defer but the good a And down trends than class on X% commercial excuse the look that just quite to again, about seeing to trends – I'll

we've talk robust say count seeing but And volumes about been Garrick So good I'll the interconnection least. it's volumes. seen, have to the

back it you. give I'll Garrick, So to

Garrick Rochow

perspective But and Michigan QX variant. cases there announcement The this hospitalizations from of U.S. vaccinations of And number better. couple too, week a number we're constructed. in all, period. of COVID heart I if requested you help seen next go the first was last service it not the and a of so Grand The number year move which was in that in the And numbers, over we're look record an of Governor And into increase, XXXX a and unemployment initiation. opens service at Michigan. new the right and is forward, service our we of over well days better not if up new was positive BXXX the the Michigan, continuing just across as same and as the perspective. than surprised a more up will time connects now unemployment Rapids just is here of midst year territory, even its commercial from we've first, XX% but Broadly to actually pandemic. for That's be of – I'd the decline, initiation seeing Yes. just with That's declined, the connects. an electric

and initiated built, So XX%. up

the of positive up. go and state. sciences and up. is more about I open it's we're again, a continue see to up of of could And to we processing more up, indicators. Food were a so There I is as believe on number we opportunity growth Life this. on going seeing. pick great And

Jeremy Tonet

super That's from That's Thanks. helpful. it me.

Operator

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

Garrick Rochow

morning, Good Michael.

Michael Weinstein

good about through in And corporate rate, NOLs morning, a guys. for you – build line, on in would have and – Slide renewables, to – for extension think Hey, same that Does potential XX. tax out that and could incur let's your credit order on talk and one renewables the does build you this encourage a you then the the does of a down? regulators have say keep also you taxes terms other? – XXXX higher impact you higher I rate, does the the potential on tax have Hey that offset to of if accelerate to that tax and

Garrick Rochow

to on over and Let as well. then, this, comments I'll few Rejji it a turn me offer

these but and mean, a nice a the opportunity very build current IRP widened went and really Rejji they solar tailwind we're And Washington. aggressive credits and the with in we're and with the through benefits following renewable we This affordability EEI and proposal, provide as headroom so, a the already our Rejji question, getting to specifics customers. a you're there's out frankly for out of there mentioned real advocating can the and our few could proposal, some here. others a be in nice earlier of widened tailwind, savings closely I have

there MCV, customers are track is proven I'm one of that ability for mean coal and cost it's I as going to remain company on there I for CE year-after-year but of event-driven through It's about on, to I'm ability the delivering this bet customers manage on Rejji, our from affordable. just get I excited me, And there's degree, and half like. management we’ve table. record it glass implications in tax There so is then, still keep on And any I'll retirements, some indicated, our the if are headwinds the But mind, And I these And CMS confident reductions, Rejji cost Palisades, may you early. or keep add. many our this, of And the full to remember it. the our going a that. degree the there. opportunities optimistic to plant more Way bills in to and perspective, behalf to think to manage this be still real Energy. have proposals so

Rejji Hayes

add Michael, comment good we're I of too just before incentives. mentioned all I would am what Yes. on I Garrick's seeing as what to encouraged, as in

when tax and one. is to directly get like of loss, we your was reform so there pretty significant to in NOLs led on to XXXX, question a and remeasurement NOLs, that enacted Now non-cash a saw a

XX%. Just XX% with to from going the rate tax down

you out that other beneficial as could to back, as segment, know it that if in see our expense that XX% a which we see benefit have Clearly, it and greater at also did, carve you favorable a let's you say, would primarily and be We'd tax value some likely shield interest we tax well. like but So greater come a remeasurement. you because is shield. parent just so see creates

there above deferral speculation Now, do to in earlier, the X-dimensional attractive off incentives be increases, the more your build to increase one given hold if of chess, potential a rate we push of comments tax about will there that offset on offset offered think increase question certainly, around some certainly but is XX%. rate renewable rate we our the we'll the incentives implication whether for should and that

Michael Weinstein

All right.

Okay.

taxes, regulators I'm see time that's all state it Government Federal the is would You higher away the – to the I raising standard giving same at. can at just getting you I more, guess. want mean, build tax that would have. what seem they credits, are Anyway, Thanks. I reason

Rejji Hayes

Thank you.

Garrick Rochow

Thanks, Mike.

Operator

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

Garrick Rochow

morning, Julien. Good

Julien Dumoulin-Smith

Thanks morning the good team. time and the opportunity. Hey, for

questions in to any scenarios ripping about two, the one, now getting here, couple on on delay brief, given of if about what more a impacts perhaps I come thinking terms credits. you you infrastructure. timeline probably you the for out how different open timeline off I'll different that risk in or With late. respect have and So with the in keep of it of of well, IRP scenarios was curious the How can here widened the there based you're we’re is other leave then and critically, just be – I to plan as guys. you think; do

Garrick Rochow

that IRP and on being line. here there matches our really will meet in it to Michigan planet proposal we file of good We're lot and on those laid objectives good out June will triple-bottom them or are be – settled objectives tax plan so it and months. those the for getting a at our don't – that’s track and next the There's several and our aimed a in presentation in for the proposal table see

Julien Dumoulin-Smith

the it cycle any tailor seem the proposed or to that right, the that through bulls specific fair planning enough, doesn't any a as of around efforts infrastructure you're right? shift necessarily All of process, could going IRP but the

Garrick Rochow

going are unpredictable as and lot I we Rejji the a of We've we'll on We're a all these mean, move may it the plan, bit It's going to to a got done to move they we've you some this probably too. a are unpredictable. – of but land normally just well lot but have take Board mean are too we finalizing and good see, they positives other a Directors summer I – where so as thoughts early. the going there do to bit there's details. modeling, proposals we're

Rejji Hayes

at thing Garrick's and legislation then the we low price, that low technologies, look only to changes good look the IRP add policy gas multifaceted and and at the we the descent business dynamism is environmental I is pretty the to world have how Julien, case, in as of usual the at various takes the of it's variables a and usual remember account et so – look prices, and business comment into nature that structured that process will would the we emerging growth, it's cetera. we important

what's of through you are scenarios number from the a And do we hundreds IRP as a that structure we best and so, take there triple-bottom to regime when we account it. into permutations all do of different and try put line it choose perspective, at

few I'd I we some years accounted we'll one changes. it's in place say there to know taking of so a do for. another And now, a extent dynamism think But file what's is lot if that the world

process And iterative this so very that as benefit well. is other it's of the that's

Garrick Rochow

think right. cheaper, a down, it neutral, it boil and what we renewable tax like the is the it Julien, again, to does just you degree is I makes this If there technology

opportunity for less so I so the and thing. tailwind. great And just know our the which That's file going IRP. and expensive customers, that a make this it's a is it and is to will cheaper good

Julien Dumoulin-Smith

Great. Will All after. Best luck. to of you speak right.

Garrick Rochow

Julien. Thanks,

Operator

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

Garrick Rochow

Good morning, Travis.

Travis Miller

your everyone. thought that? I your Michigan politicians, around coal that what's plant securitization retirements with wondering, a regulators and suggest around Thank we you. discussion here morning for recently accelerating and that, we've potentially Good Just was couple just thoughts? want states had seen of options

Garrick Rochow

here I mean worked for a time we have Michigan. long securitization in

XX-day and got part X a under many of the exists. We've here in completed is states It process for a way X, requires We December Karn just this. many good have law as not fact, jurisdictions and in In process. XX-day. a Michigan that do one

the as in clean that our objective and decarbonization shared to one watching of about an have it be that's need Now, as are as and you can value, impact pursue IRP with we transparency, book the they our those just full so there challenges on so, one we plants in a have in we and does I – energy credit if out continue to there remaining securitize metrics that is coal needs things of goals. and thoughtful

Travis Miller

Fair enough, my questions. appreciate the I had, I you appreciate that. That's other time. all I answered

Garrick Rochow

you, Travis. Thank Yes.

Operator

today question Mizuho. with from Our next Anthony comes ahead. Please go Crowdell

Anthony Crowdell

Rejji. morning, Good Garrick. Good morning, Hey.

Garrick Rochow

morning. Good

Anthony Crowdell

any touched parties know I a question follow-up you down involved is storms that to in reliability. Texas. But But events have IRP change briefly a on any an following noticed during the little been with Texas you noticed any it's earlier on quick around of on longer? decarbonization maybe answered of an earlier. you're and due kind question. a and or decarbonization more maybe pause of of the the you have and Mostly I in of interest generation fossil reliability keeping have be touched you the slowing may process there in policyholders

Garrick Rochow

expectation. you with As as I of I'm getting a Plan. the way Resource shared here Integrated engineering leads load earlier our into loss

to we're criteria we that's so on. the that sure And one that make of going deliver

in And so that reliability a variety come ways. of different can

talk what so, commission, – and three, to we I we present when to staff and to reliability when about it all to has lancing reliable that when be our has to all be to and saw for and I to again talk the be want clean have co-workers, to the so to and intervenors I we affordable do our but make so challenge. and there, about – we sure, that's about talk has the community in and in up And has with the

hear And great a in so again, you'll and plan about got we've more QX.

Anthony Crowdell

taking Great. my for question. Thanks

Garrick Rochow

Thank you. Yes.

Operator

Stephen comes question ahead. Please from Stanley. go next Morgan today our with And Byrd

Garrick Rochow

Stephen. morning, Good

Laura Sanchez

Laura This is Stephen. morning. for good Hi, calling

grid, can a compromising if the pick retire wondering new Basically compromising versus how units, transformation is repetitive, without energy of reliability I I'm and the little sorry without but technologies this I'm retirement grid more potentially that you plants is accelerating is affordability reliability early without the there reliability? the question different, the if are up? front the the bit of you do and assuming beyond how the think much can On much council gas of

Garrick Rochow

Hi, Laura. call. have the to are Good you? on you How

Laura Sanchez

Thank you.

Garrick Rochow

going to we're what at make sure a most and to customers growth what the for investments for energy to clean That's going one, well it's years, and make there growth, reliability sure own looks load customer going an is sure like needed as the affordable opportunity make we plan look investor as for loss out supply then that model going study we're at. our make system to the of the from to sheet. standpoint, that; expectations energy nice across the XX we're Again, to sure a of sure make within healthy state balance looks

so entire comes where balance, so and looks balance of that's the what like we'll that is question for, right in more model what that's QX. together, point and is that all the what share the So so what you're and is for what mix solves model that here everything asking solving exactly the is

Laura Sanchez

I gas Understood. voluntary offered your or efforts current on programs are little that could if a will may, there And your in if RNG? altered any utility? on bit you be And comment lastly,

Garrick Rochow

I about by and methane on along about XXXX have zero put cubic feet will deliberate there help get small annual an of more some a that natural old me net to put cubic that. RNG We’ll billion will a services. with speak. thoughtful gas system. X.X on by system, replacing zero quantify basis. to on mains our net we So and said so move system RNG feet to obtain investments of us in is yes, on We XXX have X.X, say billion let as bit we a our bit, amount our To I

more as So there’ll we added be forward. move

out deliberate Now to in a planet. about carbon footprint, our the We'll as do we system. the think there and customers and our is to across again, for our natural affordable is way renewable gas considered that more continue add potential that's thoughtful

one customers. specific Now we for We course year. have a specific to our do a of program not gas to question intend add over the natural renewable this program; on your

that a so space. in offers be making in XXXX customers this filing a And we'll program for our

Laura Sanchez

you much. Thank good. Sounds so

Operator

Rochow like remarks. would any and gentlemen, question-and-answer over ladies I to final this back conference concludes And session. to Garrick today's the for turn

Garrick Rochow

you, again to safely for is we thank we to can I'm today. joining over. when the all, Rocco. and like Take that care face-to-face Thank forward looking And us you be year soon before do meet I and safe. hopefully can

Operator

today’s day. Thank a you, concludes We your have sir. everyone thank for This conference. participation, and wonderful

CMS Energy Corporation 5.875% J (CMS) 1 May 212021 Q1 Earnings call transcript