CMS - Earnings call transcript Q3 2024 | CMS Energy Corporation 5.875% J

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Operator

Good morning, everyone, and welcome to the CMS Energy 2024 Third Quarter 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. [Operator Instructions] Just a reminder, there will be a rebroadcast of this conference call today, beginning at 12:00 p.m. Eastern Time running through November 7. call being the is time, Investor like turn also Energy's on I is to in Mr. website Relations the presentation webcast available and CMS would This to over section. At this Shore, and President Investor of Jason Relations. Treasurer Vice

Jason Shore

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

Garrick Rochow

and today, confidence more X% EPS want providing to to industry-leading decades walk differentiators and as financial Jason, and thank we simple us But and CMS lengthen of Energy, investment to than powerful strengthen Energy, This thesis. CMS all investment with you, year-over-year coupled I X% disciplined execution, our apart X for our through offer delivered performance. us in everyone, model, the for through At We we growth. deliver today. stakeholders. Typically, but that our I at joining thesis. sets continue has X do visibility you, that Thank industry

our ensures providing customers, in is clean, law First, coal and investors. Michigan's move right legislation our law. the our have certainty best flexibility for agreement, Clean the investments either utilize to we from what us Energy is planet power place the to great energy. This the It purchase a it in doing to assets customers. own renewable make need for the And to we for or gives

it on unique Now storage aware purchase earning then and here's investment agreement. No what's this a can of X% in lot battery tailwind. providing we an state a a add provision. to I'm very There new we lower law agreements, for important compensation customers in other more is law, can provides has efficiency. power which this options And And work Michigan mechanism a power ability assets, the Michigan for that energy. our power on utilize our of or flexibility approximately purchase above-market outside requirements it replace cost financial this we outdated do is and renewable little of incentive plan, for agreements increased energy X-year strong Furthermore, believe ensures for to that both customers. affordable costs with purchase for customers. keeps provides affordably existing which ownership us The the in within allows and and

REP assets by beyond additional state. meet the and Plan, Integrated above Our our the clean filing the we'll as needed energy and Michigan's Plan, show will XXXX our well Energy detail the needed achieve clean demand assets sales law. month will next as renewable in growth renewable Resource and plans to XX-year Renewable investments targets file or energy set This that increasing to

to As customers. for provides find It law shared energy flexibility our most all energy the I Michigan's stakeholders. clean before, for great cost-effective is clean the need we

which of the following to to now the a cost in Service our this compared in we versus it This the great the with of when Public in of the XX% move our laid also These to through Practices decade our were to Michigan out the do I we plan some commitment continues in we years, reliability. plan, have highlight actions system speeds The X-year the cost. Michigan's mitigation the the have want needed by electric [indiscernible], and strategic customers to and very customers, change. to do second we improve I story. and prepare electrify. investments details item the reliability of Storm road customer climate out our Best customer our billion This will the investments of customer over $X quartile Power of proud outage, investments for map. the our because electric second we our I'm seeing This X plan for does and end proactively or investments. reactively, lays file service, comprehensive distribution activity. reliability means last particularly is events. our to at a on can based highest will recorded billions performance the more replaced wind vastness first level east economy for needed of to PEI, to targeted resiliency we grid, to Liberty for frequent are to and more Institute, Audit, investments highlights plan aligned learning improves investments Research Better more to to This investing proactively and a decades when with reliability machine extreme utilities deliberate with one the Mississippi Electric and the making from weather. It of work, build automation are reactively. our importance also in those it underground And our grid We plan which outcomes performance storm comprehensive recent lower long-term means more pleased an Commission versus wires. speed than XX% a wildfire as bolster system expect, serious is restoration Midwest the and plans benefit weather improve the distribution is have supported customers it of better up dollars system, these our and poles technology and means these we begin short efforts in term am been XX,XXX lower and peers needed And more it designed in system comprehensive of

The service true and make area. our today growth is is are third renaissance industry about sales centers. excited The underway brought seeing the want point I in Michigan. big in of nice data by tailwind I'm economic the we to the across story development encouraged

reduction adding We more of are to engaged seeing unique and XXX the because but to aerospace my examples to this seeing we're in to centers. is -- are happy examples: state and has several size for significant and $XXX to for realizing. Two jobs and integration job nearly slide X,XXX updated in up nearly renaissance This in Saab in benefit brings Michigan investing manufacturing X,XXX and defense about an of diversified work But chips the growth million bringing assembly new diversified manufacturing speak and growth. where Michigan. state better state. same, the We the there And megawatts growing. see, are highlight opinion, in Over businesses XX to data love signed months is among investment and talk acts. is the and expansion by our commercial bolstered expanding Michigan, we'd like and story manufacturing contracts we different. attributes growth, recently new growth we and state. sort supply residential in greater plans chains, the new inflation and onshoring, to that a we it the to the Corning, Saab facility. starts jobs, activity, is housing And growth. the many,

is of Our with our which economic or to promising continues state, to in XX% pipeline load development look looking gigawatts of to manufacturing. expand X over move either

As the are the I mentioned territory. earlier, we will state our plan based our our in our conservatively see are economic on strong development tailwind we service to renewable win updated when work experiencing. businesses every in our We reflect and honored and forecast value business, energy hard growth customers' low investing day

calendar a So let's regulatory the year. look take the for at

financial That starting our rate the next However, As probably the for Storm investments the the fully us that were navigate our given the in goes of Gas I in shared quarter we known Alex the positions December the quality the for electric rate constructive effective do are This customers. best XXXX. mechanism. I the If XXXX. out gas saying mechanism want for March investments important of the go recovery support case for October point storm for we our the get recovery we electric of in and filing a to outcomes file year. the in our the improve constructive as case that without rate the and in and saw require year, further we last settlement. rates to our related to last this and order the for to adjudicated case, well are X, with order making to the outcome Audit continuation regulatory we go wildfire quarter, process, by that customers We of expect great plan rate March nature approved we a investment may position it underground know in current are we mitigation outlined our case saw gas In where full proactive -- in of order staff. are we of our distance, are customers. we reliability confident the Liberty

Now let's on spend a results. the moment

rate outcomes we period and versus months, adjusted in largely driven share in X same earnings $X.XX, of first XXXX, the cases. electric reported constructive the the $X.XX gas up For per by our

our all $X.XX objectives, confidence confidence Given this the financial of range end. $X.XX high year's the are toward including share reaffirming to we in guidance per with continued our year,

X% call, and for the important I'll of the positioned of we refresh differentiates financial the our remember initiating at And always XXXX reflecting years, in like call. to plans are toward end XXXX actuals growth. Rejji. previous others to be like year's high QX we'll a compounding the call on X% done With we sector. provide higher over range. are This guidance off our our X-year We that, is a and that this on rebase $X.XX brings us capital you full earnings the It that QX in of year of to hand midpoint $X.XX well quality to range, off to per from just guidance we've the share our and growth

Rejji Hayes

key you, our our expectations. and performance which illustrates for first good everyone. months Slide We morning, of see On Garrick, financial year-to-go and Thank drivers our X, waterfall standard the impacting you'll X XXXX. the chart,

variance September. The we both basis. the of investment XXXX, and of XXXX, income year-to-go or of higher delivered net purposes, -- warm through are performance to the $X.XX first weather to of largely a year a tune $X.XX in thus $X.XX the the per third compares to adjusted half all X relief, weather which comparison versus the In electric offset strong on at rate the a favorable summary, herein analysis $XXX more share largely for months of quarter year-to-date to share, of solid third than NorthStar. first quarter third mild million offered From the perspective, clarification business due costs and the net favorably per in the per weather positive For a of quarter, year-to-date. year, due equating share prior weather the variance to to experienced

of rate performance to lower residual weather impacted was territory sizable driven our restoration constructive outcomes our mentioned, of key service of As cost of per service by in gas a year's costs, received on year-to-date in that resulted perspective, drivers positive order performance case benefits $X.XX the achieved the one despite net financial a settlement. on rate rate our relief, due expense system share early last year-to-date electric From of in August. largely investment March our variance

regard Our part our large in favorable been efforts. has fueled in cost by this response efficiencies in variance storm

of system approximately cost even restoration efforts $X.XX to by system, last uses customers value response with increased though achievements than example volume Way, outages in prior decreased lean while to in operating sources the storm and less the variance the more That tools restoring And CE the Quite faster our the fact, the the rate productivity of restoration the of a positive catch-all period you'll another per of our day. the simply, lean deliver XX%, driving our expense, variance the year, are coupled per of These and XX% versus factors. daily the has here XXXX. year. by operating workforce in our comparable highlighted customers is operational were share business. over of performance of all per primary note essence positive just our the other interruption at XXXX Way. every X has bucket middle In cost first at favorability a The the months in year, Rounding of provided NorthStar tax-related to solid the $X.XX benefit upside the among period with chart. of performance related share in versus in resources comparable out this business, throughout service CE the

Looking of $X.XX variance mild for of the to our gas a given plan regulatory variance, experienced remaining positive ahead, commission the which largely in which constructive aforementioned the by received we'll X, rate XXXX. From share October equates on as normal Garrick and perspective, from per for positive effect X share the settlement, year, last in of order the approved noted. always, the the we per into weather, temperatures months X months realize year recently $X.XX went earlier rate this achieved electric case outcome driven as of

categories deliver side, negative aggregate, right-hand you'll around per assumptions to among the investors. In have XXXX, year, consists negative expenses. -- nonutility items. the of large of $X.XX side, per part of premia well such objectives out of cost in benefit remain the from bar funding penultimate X select conservative that these insurance the variance. In and glide to the additional largely of negative we cost share in the above anticipate customers the note select the financial the we budgeted to as countermeasures and of summary, Closing share performance for trended to $X.XX months onetime a our path majority On to for for $X.XX variance the year assumptions due XXXX of of variance, IT-related last remaining which absence on other year levels and positioned equate significant on the remainder support

As we share toward our $X.XX high full per to reaffirming year range guidance $X.XX with the a per of continued are such, bias share end.

Moving to from XX, sheet. credit balance we recently S&P August. ratings the on Slide On highlight our in reaffirmed

as to to preserve We the debt to FFO ratings our consolidated from guidance rating continue per investment-grade mid-teens credit solid basis long-standing planning on a period our agencies. target over

remain generation and predictable investors. operating maintaining and a solid we focused which, flow customers a with strong benefit position, on As the always, cash coupled financial of our investment-grade to ratings regulatory construct supportive supports

with relatively Slide to for rebalance I'm structure capital that levels at the the Moving the planned of plan XX. increase the on all pricing and need utility outcomes bring see worth is XXXX the for remainder modest and report we planned and our pleased of beyond. ahead year XXXX a leaves to of a financing schedule, regulatory on at some recent to us our our issuance. to financings It at plan financing attractive year given we should to which also favorable ahead of cost-efficient with completed rate-making liquidity to the attention the in we've our to I'll pull that accordance needs. financings ample opportunity noting your remain opportunistic

financial and This capitalize we enabled plan has As is arise. has approach We I've out true approach our year they said tried us our investors, this before our financing I'll the back year in different. And of to and how that, business. to before, circumstances to of deliver remarks conservatively is been his similar run it plan customers irrespective on for and final to Garrick and and with opportunities the and Q&A objectives, as on the no our the benefit year to operational session. hand and

Garrick Rochow

continue we Rejji. beyond this in lines CMS you, of important open the With performance. please investments outlook maintaining We for affordability. that, make our simple our year and while consistent industry-leading and Q&A. on and strong to as over decades confident thesis Thank the our Harry, customer in investment X remain system financial necessary Energy execute

Operator

Our from Shar first Partners. with is question of line Pourreza Instructions] [Operator the Guggenheim

Shahriar Pourreza

seeing Do data obviously data Michigan favorable is emerge of Rapids doing of some has and to of kind sort And to a the with proposals onboard to to ahead? on kind the to grid interesting demand, Grand of of environment center new a new Garrick, there, mentioning seen structure as degree, are you it move on exact. obviously, started Ohio, the have coming the just, some ground? back the acquisitions hyperscalers need forth some out lag? center with everyone tariff So of We've lot existing customers land an capacity you be sort of of kind you there. What that do a interconnection

question, but about So how you big a do think those?

Garrick Rochow

have you of data here that's we in electric your territory, is Rapids to specifically Grand our for serve. fiber our infrastructure territory, great centers able temperate the be the and is service and -- referenced in service Michigan the your really infrastructure point place The Michigan. to and been a to investment and question point climate,

for manufacturing load. lines closely other And and with ramp-up time and centers their work so to the we meet customers data

And a that's I growth my there's up or highlighted makes been locate to manufacturing, remarks, manufacturing as in of really center here. so prepared lot that us advantageous data a shown

just what show energy well, lose seen in other law, true plan exciting will they I renewable a lot guess is, clean We've also don't renewables growing path the And too, conversation going so too, this just our question show seen that's from and they by on up attractive the about But is clean our I highlight, standard see our tariff. energy to as to that customers. That's where XXXX, is in to renaissance. would to manufacturing center want look Michigan. then And there when the the we've to what's energy, serve growth. up energy thing I clean data opportunities which of a the to my really the -- that the can components.

residential working data for collaboratively our centers. data structure data move see our to of rate are is already another what we call would with that customers if serve, cost needed ensure subsidizing left That's to are not centers reflection the better we've filed commission recall, You'll a we ex-parte the to filing GPD centers rate. type and the to

Shahriar Pourreza

Garrick? Got Any timing it. on that,

Garrick Rochow

We filing to would we I mean, make expect parte I like ex has already the that progress. continue approved. been said,

position of from take months cost next X commission. the over service perspective. with We'll continue I place expect year. would work in we're And a the so to a that to a there good to

Shahriar Pourreza

base the then just supported this lastly, your in cutting plan? audits your CapEx Or And Perfect. to billion from and commitment DSP Or of some distribution Okay. resiliency takeaways just it to year. better the by is you outages to the identified terms you're storm would incorporate the into update current does audit? move incremental look recommendations inform you the to from $X.X plan?

Garrick Rochow

work that that of the call we enhance Liberty -- to in This capital was provide reliability and was supportive. completed trimming cost. the company you a prepared performing the it service to balanced audit at is able to the better we do, that support and as can my mean, lower the Audit because the share, free -- that context and continue remarks, the need investments of be I that to and was that really in see could work do we

do So better service, lower reactively. cost when proactively things versus we

plan, so audit a Liberty And plan. billion that's plan, And billion comprehensive that's and And plan to $X.X that it plan. remind of that you, incorporated X-year billion and we'll in is our very capital the take results, look into we the deliberate and focus. $X we'll I'll capital have that incorporate $X

work that Service capital And more there Commission of and staff so there's commission. Public course, in, of opportunity the with support of the to

Operator

today with Jeremy JPMorgan. the Tonet line question is of next Our from

Jeremy Tonet

guess, if DIG, start on site everything a walk seeing their off, on more, bit capacity given us could that you the Just wanted generation we're I needs to needs. through

trajectory forward? Just you I think contracts how about, going rolling off guess, and the there with

Garrick Rochow

mix. throughout expectations. to form, generation. we markets financial markets, and an And a our we piece, of perspective. the It's the an expect I'd continues NorthStar contracts to of the and strength be they and to But and part perform our need But or big well. energy operational what and are important is to both time, course, small and plan piece frankly, DIG continue capacity perform, that. get doing, from the Dearborn and business, continue of exactly industrial we earnings that those and to that's both they're mix see in them expect I'll to securing bilateral they And above a

overall so X% story, great And around a it's X% be EPS a tailwind we in -- and to growth. to expectations our continue

Rejji Hayes

good just I a Jeremy, provide to to comments. this we've add Jeremy, a is of is All Rejji. would financial more bit been lens Garrick's

margin know, open good As a XX% the our years we've outer you plan. to XX% of had in

that we'll provide we're an update you in have as even And in perspective. contracts our so around capacity we we've at more And what X-year realized pricing continue as market. open a reverse know, in we which and a next always the bring capacity we'll do of in our inquiry margin. that new from year And historically excess bilateral call, on well at QX to will plan, levels see levels price

increase. $X and And so seeing per We're handles usually around $X.XX we're now X month. kilowatt X reverse to in

So And demand opportunity. nice real with X really being the on unsurprisingly, supply of seeing reduced still robust retirements we're just the tactical and pressure a upward it's through curve. just in because Zone

we soon. that So abate any reason see anytime should don't why

Garrick Rochow

And one well. outages too, it's not as the you, maintain Jeremy, I'll there. do system linear out We remind to have thing

that's So as piece we through the long-term go important particularly remember, to plan. an

Jeremy Tonet

just of lifting you general, opportunities get I'm forecast we're but front talk about myself the check I kind how even seeing there. just thinking wanted double some But higher to CAGR see of think in lengthening expecting of That EPS expected strengthening And you. sense. guys some you about expectation. far incremental in ahead maybe the wondering and long-term to makes growth there. Right. given your and don't just peers about too this want sales of

Garrick Rochow

this Let as those what tailwinds sure going want to And and visibility have. to differentiators, comments, me confidence. offer we well. that's give to instill into those I'm some And provided Rejji we is to and jump

earnings. years, expect I strengthen confidence after about that to off or what time lengthen industry-leading continue quality But actuals, we've expect is we XX time to now what that's want deliver compounding better and years. we X% investors financial That's ability then EPS year And and of gives our you growth. to our performance, investors That's be what to That's that which again. have inspect. and industry-leading a X% We what consistent the deliver. clear, we

And just this get again strengthen this and of I some year, tailwinds, the in how our insights exactly and to some as confidence expect. offer -- just our providing want But by to delivering doing and it Rejji, idea we in commentary can on year some so you momentum I'm certainly, those investors we after sure walk what well.

Rejji Hayes

Jeremy, new to a with in pending methane business, to FEMSA. we lab, system, opportunity investment to coming continue the all infrastructure I spend in would and growth, Garrick will the benefit long-term prepared add opportunities and to drive on talk side, about through whether and And out keep when of the again, then great which and that remarks, but in on the the Garrick's the of you and/or customers gas resiliency comments walked our PPAs of capital harden opportunities improve PPAs that's going is decades of capital think in reliability to energy opportunity, in be investors. the much law, investments call, of there's that to this made distribution investment his significant it safe of the regs didn't investment electric decades what still reduce it's be emissions components detail continue earning particularly on to future context the financial in from to that's of level and the as about through

benefits to -- create investment lot and that a upward fruition. when so opportunity side, enable other you will the to the come to demand pressure to on among of facilitate the headroom And and alluded that investment that

X% deliver And that path many compounding so glide actuals. on of for really we X% off to nice a years, to see differentiated growth

And good disclosure, our so when to Garrick's comments. feel QX lengthen we ahead X-year to we strengthen of still update our plan, and ability to about but we're that growth not get very our going and that's

Operator

Our next question from of be Carlo Bank Ross line the of with today America. will

Unknown Analyst

all from the another CMS. one we've come on expect as to solid quarter, Congratulations

couple a questions. just of So

of I cost think -- change this do target just about versus of level of credit what's that does you that sort X.X federal level battery How the is lot at the a storage state. you've after contextualize on the Or in support for talked going next gigawatts going about tax Or the the think do forward? that week, investment change? how could shift? potentially there at is you of state

Garrick Rochow

well tranche in but And for demand as result there of then have -- then the we terms One development need, additional me there's that e.That X up that range XXXX. integrated what assets was here the around file is plan, we show in some X. our renewable XXXX energy assets the plan, assets. mechanisms will That's tranches And renewable the growth, XX supply Let type economic renewable consider out we've of renewable date. as XX% resource of of I'd I to will call the energy as it that see as of really offer additional the XXXX November we'll build the lay will seen. X that meeting XX% standard a and growth it renewable that of energy which for both assets off foundation

the what quite certainly the will nice benefit more even do or more as of to is legislation. So additional there our There integrated In there's a part nice that incentives to where than things I get pathway that. selection play need that's components. nice process. plan. That's the to the those of but look will that's maybe at That's bit That's certainty of and at the where tailwind. storage a process be law, will capacity important work, is look we'll that tax of on anticipate supply. piece a storage a play in where degree, reliability look some started in out of we to XXXX out with in mix. at the the the of going that we be But that resource reference where referenced system, in there's storage

helpful. that's hopefully, So

Rejji Hayes

I've of a drawn Yes. sorry. my been slower little comments. [indiscernible] couple Ross, a

like you're Or sounded I talked alluding The implications I of the about of credits. of your week, that IRA repeal me. the would thrust next a just it part pardon only the to question? and of and second So when you the on thing that it? did tax potential add, Is miss

Unknown Analyst

Yes. Yes.

Just pushing kind that state incentives the are contextualize where versus that as this. -- that of we can

Rejji Hayes

Yes.

I outcome as week. on speculate to So or not dare the wager next

I is, sizable that, I probability. also place, hypothesize the the But repeal reality that the that's of think in it's there's to -- a IRA. remains fool's Because passed. of too the other you errand just even legislation. red the a take to one, I heard repeal But getting accrued and to the IRA to from way could see want state that that XX% states difficult reality about think low I benefited of of still you you the from the think call. suggested our red who a day pretty have a significantly did one think if the have it a states. red I CEOs number of stat a need that legislation do benefits

legislation. accruing towards from about off-line sense really an there'll is remote to significant discussion again, concentrated but I again, states. to if so think, which make I significant to, real enough, probability saw a Wave probably perspective would and benefits repeal whether those be go And undo fairly a you all economic think the nationally, I even more still Red still it think red

to that again, and the with wanted to to even at with in said, comply to might we have law a low comments, if comply have Michigan. still albeit law, it it be probability cost. did really you the a still happen, that we of higher event. But sort take Garrick's fruition, So probability still into come remote again, I if think And it's

Unknown Analyst

of sense. little a question capacity Yes. next had, kind VRR to of the on PJM Makes I Star auctions. Jeremy's adopted Perfect. The the changes and just mean, back question around curve. of I bit has lot North MISO a sort

also that at X So least next go like would certainly, mirror it higher that in year's seems at PJM. happen capacity [indiscernible] what will

that better a sort clears further I'm you So positions open you on timing so on Like how you some trying down what the some that auction idea? until to these of do work off you have of out, out out of through. figure closing just see capacity hold

Garrick Rochow

Dig to the mechanism that's a has higher for sometimes are process the price us. lower at the than a time. certainly, there over going it's future. point Our And to That's in where where but been derisking little times a little a might just layer at we a than these point with really that's strike strike future. price

And taking of and earnings that of source we've derisks bilateral predictable really minimum contracts kind It over by becomes just so or in layer approach. time. these a had

Operator

Julien of line the from is with Jefferies. today question Dumoulin-Smith next The

Julien Dumoulin-Smith

So minus that to the ]. talked this it about a -- had X which [ that waterfall quarter, pretty you of number $X.XX going. keep extent -- Thinking big that last slide, you the let's guys plus in cost swing in was

that's impact remarks, trying speak a there insurance your on in in I Can forward as just a wildfire intra and on? mentioned pieces. the well going prepared what You you going a there mean understand pull insurance? IT. big exactly is what's that's are Is impacting to little year. bit there I'm timing

Rejji Hayes

Yes, Julien, bit a question, that. on I let Rejji. more little me the appreciate provide color and it's

and we category. of of so track way. throughout And not line through year course We ahead the going that year, number items have and budget a And expectations have items of of -- line across a those every for cost good into obviously track cost-related the the in budgeted year. levels the some we

So higher than budget.

as and we to fund of anticipate the just the sufficient so that And we'll cases, at that. And we sort we countermeasure reduction of times There think are and get end initiatives. we the categories have at will QX, levels year. cost cost through CE offset that to other those some Way in largely countermeasures don't

sorry, as at we levels the I cost countermeasures level differently, as have said that us to contingency end of categories enough weather those anticipate to help And than the have a so well we of fund QX given year. being that

little just We ahead And that trending a budget. costs. had Insurance funding IT-related so we're one those of was were example. costs

is levels others. have with prior liabilities are we also some in one are that assets at Another that EV that higher year our regulatory programs associated are amortizing the or and

budgeted And trending of and just dogs so hodgepodge ahead that levels. it's were a cats of

our big in in there. that's what the And see year-to-go QX we're QX that that's you funding we Is And where why were that so expectations increase versus really call. helpful?

Julien Dumoulin-Smith

Yes.

some into So holding do realize them so, basically it on forward. to you you you off the back you have of pull been XXXX, said funding ability that would have differently, so

Rejji Hayes

and costs call budgeted. the wouldn't X in we I we'll have the excess Yes, months derisk. these trying are To in now we've that the them year a be have of we're seen that right to clear, pull ahead. we not are what incurring actuals first of in These that expectations XXXX are of costs

more some contingency estimates and And cost of countermeasures, applying so that star point to end through good year. the of we're fund contingency weather the that accumulated in and old-fashioned, September outperformance for just those just we've the applying

these forecast cost those and seeing XXXX just funding we're just So to reality updating basically our the economic are categories. reflect across

Operator

line the with question Miller Morningstar. next of Our is from Travis

Travis Miller

-- on number times, on touched of REP, but up. that a you've anticipating the going So growth the this couple sales

to this process, of were But run you from enough data centers not that through did much manufacturing growth of you're sales mentioned weeks. those or the kind in that too As REP next terms you the able what on the is and in visibility you to more this see to something you again, in going front we for that storage and other process, of for type going we of of in stuff couple terms some as the have through XX/X IRP? on -- look will of perhaps incorporate, Can loads technologies. some to touched renewable be

Garrick Rochow

energy Integrated me which solar the start we'll is for more. built as XXXX some the X and explain answer with but of Plan, of part calls out really remember renewable In you'll Resource short the let plan, foundation we've that well. base gigawatts the or yes, is as The renewables

foundation. So that's the

piece by by XXXX not us The did XX% get IRP to the XX% XXXX the will XXXX. -- number renewables or first

a So to with have that to through FCM, be will that constructed an will there's PPA or have renewables some happen. That's X. tranche

tranche because development. result as specifically sales expected of additional is The second economic a there's

it years, over around have we And so as and have well. so have we to to But it. forecast visibility certainty do that out we XX

terms or in meet well. renewable the contracts So that reflection have is we that we to and numbers. not signed -- hypothetical have yes, of answer what's of of directly, state around. -- are a as to This visibility some around, question assets also the pipeline we high to power items these drive again, purchase coming have or confidence It's so that. need additional That will agreements

to file down, I at of solar make then, talk And EEI and to if about of as we we'll that. it will continue mix So you a course, be more that expect follow up. that that wind of that details

that's part one. So

just And The with that is I Plan energy. also deals Renewable second part remember, IRP. the would Energy

with deal you have of the to with have reliability You to do the supply. capacity,

sales have show also plan up to You the integrated as in the opportunity That will growth. resource accommodate additional well.

I the So compensation where opportunities assets, with X tailwinds of ownership of it's through of to on mechanisms mechanism. energy X or financial we'll our again, behalf assume those deliver customers. see PPA -- investments a clean

Rejji Hayes

our development page. Ford. got some you plan, X-year page, of Slide or would there's our on these seen Garrick add All rest presentation spoke is X Goshen the so Travis, I in this from this Only on the prepared additive look The in listed I an economic is his of see plant. X you raft X we've today, and opportunities and we've remarks, a can left-hand are our the of side those perspective. to of to think of current And Rejji. at are in if that

And in are that that to not months. still So that the opportunities in to that coming are some going pretty of in we're crumbs high offers fruition to quite you coming additional likely the some seeing. will tell yet the bread be as opportunities the I probability we're plan

opportunity so a there's rolled that since plan. we seen year's we've lot X-year out And of last already

this stale. that's so And at point, well

And so our update in REP. you'll again, see that

also You the X-year roll that as see in addition in IRP, noted. plan the year it next we in to Garrick out QX

Slide talking forward you So months. on And again, X today. coming about opportunities we're in more the get to some visibility looking

Travis Miller

different kind putting of the on regulatory the detail. that for one Okay. for then regulators Liberty get more or approval before for or in additional you audit, mechanism some the I side, appreciate some subject. in operating That's CapEx to anticipate to great. costs? potential would you of metrics performance And meet all on The kind me put

Garrick Rochow

additional reliability address better service proactively offering plan. the cost. to lower plan, investments again Liberty take X-year findings of our audit capital for we'll that enhance anticipate which our customers and will, I into weave for course, opportunities reliability and them that provide

that's will has this of into -- tree expect or woven work. So commission a as the And taken and that I will that the Liberty that reliability actions there of maintenance anticipate of the as be audit. is well additional performance-based we've part trimming the operation one as it. already part ratemaking be on focused commission plan

anticipate and important that up making of and and well. investments. we that's I them work improvement it in holds work. we're I so And making woven do these us to from as performance just important reliability seeing terms to now don't into good this continue think need

Operator

with is question the Research. Wolfe next of Michael Sullivan from Our line

Michael Sullivan

us you're this it fair your base actually be in and recollection to X% -- case now, a that like then just about been today? not of in the be is and about characterization? it's shift coming flat think new have talked of a to all the excited what's is you and RP. what's efficiency you're asked big sounds couple times for going conservative energy but growth, Is I kind of to level REP X% set change? kind historically going My of less growth reflected is kind pretty load but And some load

Rejji Hayes

question. Thanks Rejji. the it's for Michael,

always rolled rate you're waste current right, And our out year, had inclusive X.X% energy just electric in of is annual X-year to growth a we quarter compound plan basis. of this set, growth load number X-year fourth reduction. the level So that that on about

And could that as think so about X.X%. gross if about And you X.X% of up, that energy growth. you again, efficiency, wanted net to

more rolled you'll of a the year And the weeks. loan on about that kick another we plan again, We the filing in later. that the get at in between from IRP significant growth expect sorry, out then pressure rate can, publicize IRP REP, quarter the in the filing pretty Plan, fourth on color Energy embedded obviously, next in upward in coming X-year the the Renewable that, we'll And -- assumptions growth get year. we'll that

so material also We But the what plan as we're guilty conservatively, rate And a of is to seeing see upward because in again, proceedings. reflect you do this reality want charged. our do should pretty component pressure. remember,

on not to We -- those being try to moving the And comments, not across the if industrial momentum state, and assumptions. so but try to Garrick's seen really some whether in when incorporate we to that forward. really see, something incorporate signed try you coming pressure again, speculate signed And it's it's close we've or plan. to we effectively load upward That's put do those will centers, not to they're growth plan we'll data in our fruition. companies,

this we're again, pressure cut. But from on conservative is you'll that see upward in So next historical the perspective. takeaway here growth estimates that our

Michael Sullivan

Okay.

And shifting to it. to case, So conservative. significant I also electric upward the over got pressure, kind but there. I just wanted level set of just then

mechanism adjudicate of specifically? sounds where because mainly this for? go that? to you And of are to is asking are going probably a this first respect because kind is specifically staff what like the it for storm And you storm that on around So the with

Garrick Rochow

a in moment. numbers the through walk will Rejji

it can Let prepared staff's in shared the can out I by that at do that distribution of service. reliability. I We number supported position as offer lower would proving have and as our we that reactively. But that, versus we're know focused remarks, cost, things in a starting And saying have, investments left And SaaS that some plan, been me We're proactively say, there table. a doing on start our we just X-year better constructive point. there's for out customers on a by been my position. improving are do

to we're customers. is which referenced, the as to you service focused which storm recovery distribution better addition in mechanism, well. offer for But referenced our so in those And Liberty investments also audit also the on

going is we a also customers. on we a order. can us doing service. of That push component there's to with It's a. investments -- to things of have those than into the where to so going are is so adjudicated at improve remind are But advocacy Mike staff our settlement. have everybody, I'll And to make to an from continue bit I'm share just currently at. behalf open to to it's be But which more where have Rejji, may just

Rejji Hayes

a above expense restoration investors put customers. in the our Michael, the We're X-year memory mechanics a in with of essentially And if pending our rate or of that take proposing structure. similar storm is we're me, there's case. of tracker a proposing to restoration the below trying service the share in where is serves in true-up DTA and restoration equivalent expense for XX% embedded mechanism level the service of event rate case. what's our average

incurred restoration we be shareholders. had rates example, $XXX a specific $XXX which a you million would of of in year and million if expense give to absorbed in service of that by million we actuals, numerical So $XX

a flowing have asset hurt in we'd date. our million regulatory $XX and a of $XX recover through that established we P&L later would million at be would So

assume you fund level so of would would if way, customers numbers so And the it. on. commensurate portion saw and go other a the regulatory And we liability that of

And investors years lot below the so see of expense that, for of alignment we've service it's -- incentives as we last because years with well several like the a actual it, last provides a and in between have good the several embedded restoration we mechanism counting. over P&L our in and seen and the now that customers been rates of volatility will limit levels

and time offline to need spend on And it more if be. the of spirit have that so that's

Garrick Rochow

just ROE, $XXX And equity our at to ratio. XX.XX% numbers, at staff million rebuttal offer XX.X% is XX.XX% a equity some $XXX million at position, And our X.X% ratio. at ROE, we're

the there revised of difference of the little sure, company. as just I Michael, wanted make So bit had to a cost of position capital well. But you

Michael Sullivan

That's color. Okay. great

structure staff than looking quick, they're just are different it on real they storm what just you though, or outright a specifically against for the Just

Garrick Rochow

not of expected They're but it, supportive, not that. but again, we supportive

commission it anticipate And we like on. the to recovery this investment the require like mechanism, Just the had mechanism commission. in some to will to go weigh

that. a that, to if order. again, it's a go if go surprise likely not full ask going it's we're so after to we're to we to And going And

Operator

Our next Scotiabank. question is Andrew from the of Weisel line with

Andrew Weisel

settlement. deal guess that? is were if would appreciate that I was detail to I it the there a be what about going to where a be made, guess be happens. I also to for I there. the Or window relevant

Garrick Rochow

that We're now. window Yes. in

the order us. up window to of really for and -- final as so opportunity And a

sure always can again, mean said in settlement. customers so -- look, for and we'll things we and couple into aware place full to our this the just There's stakeholders, call that. good make everyone If may I've a -- work that a in And be. that's we'll force for case before. that to we us is want and calls make just on I'm things to look I a all open of of order,

Andrew Weisel

Yes. Understood.

policy question. tools a New often are

So understand I completely. that

the to that. be understand Number ask always business question The on usual about. There's a of patient a X qualitatively, one, wanted the into other just going be there's numbers. lot REP. I to it but update, ask you've to things around the going as CapEx about spending But got update. to I I the sounds we'll things have wanted like

to of the and demand million centers pieces about think dollar be in manufacturing bigger about we've seen and You sort we -- per step what should rule up given we equity talked equity got a an that spending increase needs in And there, stuff thumb all is, got reliability meaningfully be beyond. $XXX a should from so, the data than should incremental incremental of upside a in 'XX at that of previously how might getting got You CapEx? audit around to you've per I'm with mentioned. the reliability How if I'm financing years? going plus electric that? about think Liberty year in road map just about you've a change there guessing of recent I what this bias growth

Garrick Rochow

come the result approval in of I as call approval Rejji and this the of we of team or I'll a that remind to of tag this energy you want IRP. renewable the one, that described plan but tailwinds many

it file year, so we'll although months. November And fast-forward XX this in of

commission So it's in the that. going be to where with at QX is we of see late XXXX before

And early part the call in wouldn't you'd play so in that our to of and which expect of the until for 'XX. QX same then cycle good start at some work 'XX. out end XXXX up I the IRP, And would then of XXXX, have show

X to turn offer there's these different over see I the that tailwinds some So go in but time Clearly, they it as to over over up additional years. some tranches Rejji color. points But time. here, show at I'll

Rejji Hayes

that's fourth right, about governors. and talked work Can the pacing we mean Andrew. balance we've our we this comment. capital and Yes, the feasibility. and governor those when the operational sheet affordability I to an the plan, think done governors exactly our prepare remain is I But at point get Garrick's

contracts, opportunities, signed interconnect we it time to of we takes these for time or the facility data And the a opportunities for center. so commission just build-out REP for to manufacturing the Yes, the but materialize. a review load while

materialize, pacing dictate to capital which bring of load this when is investment to those effectively will opportunities. fund the capital So the certainly opportunity able additional all be going and see we'll in

will the But for X-year we've see really at CapEx that's billion the pressure provided point. So fourth $XX in governor this point. you number sure this at upward

we've it to stated, the as you terms from that good in will a and growth with share the vintage. base up as With will XXXX. run about think you come to then bump, capital but equity in be obviously the into rate I'll next plan I million said earnings about equity, before but plan material the and So said have growth the as doubt, you good see might sensitivity of current starting pacing incremental $XX and equity needs. the and incremental we billion And feel without what very you that's pretty respect that a rate next going underlying $XXX no you know, year, and for drive capital

utility, of thumb true CapEx rule general common it time. at $X.XX around is some that every to of we $X.XX dollar tried with and has As usually invest of for been we and the equity, fund for a

business. over interesting flow obviously, the the things. that what's few and and in of seen sensitivity Now terms to year I'll X last, X say, been years continue forward-looking it's by construct just driven is downward the needs, cash in rate because generate One, to that of substantial really pressure we the equity of Michigan. the test we've a

generated over vintage our So a $XX.X of cash give plan billion billion. period example, is aggregate. operating current $XX.X capital I'll X-year X-year about flow of $XX of an billion This in prior

We expect cumulative of operating flow billion cash over generation, $XX.X vintage vintage.

So billion of vintage increased almost over $X vintage.

And so metrics that's Number the of effectively That's big ability another just generation. then that's two, through the cash helping good our monetize us flow and layer new equity afforded and another to driver capital IRA, credits fund offering liquidity to tax of a liquidity to plan. of one. our just source

par first did we be. did also the that to helpful better better we dispositions, discount of was than we and that's planned, than tranche year, this and So $XX meaning levels thought our about it would at million

is more feel plan do say And we so then over broken like us the I record doing that I -- when a last I of And is, time. just one conservatively. anticipate this

we're hybrids a get or it's as the so equity going but credit at no known Those for level equity the we're from know, company, we're notes been we've so with subordinated in issue credit, debt XX% at the greater past. assuming and Moody's, straight you now. debt to now And issue to of holding

at on sensitivity And debt level pricing can what a an improve over our opportunity credit then obviously, pressure types to accretive are do comparable plan. pricing creates that's accretive in to time, if for also because see and our of we we that securities that so EPS to downward if to those we start see hybrids plan, put assumptions

the to create for those capital plan. minimize so needs the all equity in our as And we really X-year us opportunities increase

Andrew Weisel

Okay. That's extremely helpful details there.

on should it? but should upside the IRP Is CapEx though, clear related to related be to demand and or so just a numbers we fair and to expect development. way to we numbers, reliability REP the expect So maybe that put the not economic to CapEx

Rejji Hayes

Yes.

that You see PPAs a opportunities of to year, little the full the won't going earn the forward. I'm mid And is the Andrew, you certainly so with qualifying comment on other effective assume we'll associated and reason additional PPAs start REP. bit, this magnitude

layer We'll every start some investment capital see for opportunities in outer to we'll so probably And to start doing every associated energy renewables plan. in PPAs because that the years we're opportunity year of scale year. with the of renewable plan the

see you'll associated starting of plan. opportunities But so law, resiliency. comment that with our you until and energy and in XXXX of weaved definitely in the And again, lumpier reliability your won't some you'll vintage really see X-year see the the

Operator

of Storozynski And line with Seaport. Instructions] our [Operator for we'll Angie to move question, next the

Angie Storozynski

have I question. just so one

mean, right to or be offer look the much hyperscaler, if So current I that cetera. imports how could dispatches at that right spare own in capacity the have is you generation how much customer your now? versus the But mean, I now? megawatts I just imports were assets, much MISO self your me of supply when stack you industrial from I I it debating from the I'm et understand on of of system, like an grid. And how

Garrick Rochow

things. Well, assets. of XXXX from was as and PPAs both built was us also well this couple our owned and Resource to here of And Plan, were as talk assets kept me and the some both perspective. MISO XXXX, you the additional In approved, Integrated was available acquired some facility and the when gigawatts. capacity part Covertgenerating bit One, We wind since solar, out a let we've there like. from offer meantime, then settlement. a as assets, mix X.X renewable that the we'll little a After about we the we along

look put position a we've we those basis it up on we them to an to adjust with resource that's And as growth. we've been flexibility a accommodate able because every renewable been able some needed long so in on the we where the reminder, a And the additional have and X plan, both accommodate but renewable growth. plan resource pull and energy to integrated plan to a then plan can as lot X energy mechanisms, years sales actually and in those at -- X the be integrated of

to is immediately. That's up. them with because have working The manufacturing. third hyperscalers piece and going on And come with want not when they they all these plans ramp with they're to also true

And may 'XX, XXXX, but ramp-up so starting need XX. in they out doesn't a their XXXX, to load get full

that a the we of there's we right. customers work And so make to get that sure with lot do

Michigan to demand make and there's nicely in stack the of And up so the grow lot we a supply can we flexibility have match state. and sure

through leverage we mix, PPAs to XX-ish, market. as that able at you those in XX%, off total we through self-generated. do is be have rest PPAs our X% if about MISO that Remember as the act well energy or Now and it's do to mix. And look purchase both either capacity that. then And

Angie Storozynski

initial I'm like care data to center, just facility would would power, So I megawatts or speed probably debating big availability it But if me. about to myself, I'm cite industrial of a matter to were I again, this again, right? the probably --

you're you even right saying So long are now. tower

capacity allocate could XX say, that a such next, is you even, user? So months, to there the say, spare

Garrick Rochow

full and as is to Switch, example. [indiscernible] by name distribution be Michigan, able in to QX, press that work deliver the answer well do is couldn't electric transmission infrastructure, both load want We're data short do infrastructure by talked about We're the the customers expanding a XXX ensuring an with megawatts. be but just center to to the I'll today, it that. in hit to partner you with able in as that. And our we we supply. They which up existing XXXX. able closely company. we we have the yes. The And real give is

XXXX. well in the right the schedule. I ramp-up match we Corning we manufacturing, our as the closely of again, gives to a hyperscalers of that We're gave first the that. so to with them other now. work on low example to by you quarter And Corning And down constructing as up little nature other prepared of my out ability wants entertain deliver substation or remarks.

that. small from They But again That We a over megawatts. to go up ramp is will megawatts quarter want XX of up. amount deliver they to a year. XX,

that so we company. along with And that pace

Michigan on real how those So grow of our idea examples, in and grow just we with and are to work you gives the X customers an work service territory. going state in real

Angie Storozynski

those a mean, gig this say, combined if big is -- would Would probably you site, you a you cycle well, How comfortable comfortable there, something from of have obviously, to is like big do accommodating. accommodating gas bonds like I do risk smaller feel think think you large a what And sites? like large that about big is eventual there sort a very the loads of prefer be require very I perspective, built. X projects? mean, to capacity? Or that? let's that

Garrick Rochow

lot we're renaissance. centers onshoring. growth manufacturing all state. welcome than Michigan. we in with We customers, work -- sites, create mean mean, We're large I of constructive doing for nothing in a there's a those the is better It as for And we've well. data a got jobs. create to open I sites, stakeholders truly opportunity certainly And small

load. gigawatt doesn't And away back so from we -- a it don't

of years. on that across Some we their are need provide when on match mix. -- should of side. do my We've ramp-up business, sites. are again, that this multiple with And in doing working it's to those those and really, say, site, schedule started to one and company that for some I out XXX used supply -- be the I supply/demand on been business the I

to get be we and I So entity, do to the do loader what with And the we success. able within that as have a this. construct mechanisms that's

Angie Storozynski

like And just those contracts. do the look example, the load at this take-or-pay actually we you for you, make materializes that when how And ensure if investments, happen? you actually How they make will that companies, ensure do like load sure. to power have

Garrick Rochow

my got from in shared -- rate cost of a State making of model. it's a as earlier is of service Michigan. a it good operate. also, contractually, I we That's remarks, how design but perspective, sure the we've in One

able makes if centers and additional construct putting residential with other aren't ensure data further that see as staff that commission that or that closely subsidizing the And aren't centers. to customers we're the there's data rate commission shared, to subsidizing compact the for so with customers sure And working I to be or work. bill

Operator

the will line Anthony Mizuho. next with Our question of Crowdell from be

Anthony Crowdell

apologize. I

up the I IRP, low on the the get low the [indiscernible] on up-to-date think update. the Will Mike drills file most is growth. call you it's just of fourth question, we Sullivan's quarter when that to when

Rejji Hayes

also -- -- will you plan a Rejji. you renewable energy get we'll Yes, weeks, and coming we will forecast will also load so months on is first our load this that the and the supporting as Anthony, update that have do. file we'll the the in in plan quarter a later, growth that's XXXX out quarter update roll always of few a call X-year we fourth

years from perspective. about from of you'll see noted a update So then, get comments, growth in a year bites IRP filing. Garrick of a X.X the maybe load as couple his the cherry our of context in And also growth a you'll load earlier

process we'll up I would again, pressure an accrete and beyond certainly it of So certainly will estimate for said low on go have that. iterative likely That disclosure. X.X%. I current earlier, expect And as upward

you coming sharing to and the those months. forward looking So with weeks in

Anthony Crowdell

now one XX% the the maybe spent. about of to Great. questions, the of financing just of I needs lastly, you earlier And every for think how dollar then the talked amount Also, equity company. XX%

company You also transferability could going for what we years? the over mentioned instrumental. the X were tax be to assume credits next Has quantified

Rejji Hayes

you execution should to expect $X.X that increase renewable the number that of But time the again, latest that's just I our is I'll to number the accrete. over billion. what number and little embedded X-year the also So ownership of anticipation on in based have Anthony, allow guide we more plan, to over quality and a

has that fourth we I'll QX helpful? on so doesn't billion if And and this our provide over quarter call $X.X again, be that surprised Is to on number number, current our an provide plan and revised plan as continue And X-year X aggregate a next update year, I'd increase. of in years.

Operator

the in queue questions further this no have time. at We

So I call to closing would hand like the Rochow Garrick Mr. remarks. to any for now over back

Garrick Rochow

safe. for look and to And us today. I stay you joining take Harry. care I'd Thanks, to seeing you like thank forward at EEI,

Operator

for concludes We today's participation. everyone thank conference. your This

CMS Energy Corporation 5.875% J (CMS) 31 Oct 242024 Q3 Earnings call transcript