Breaking Down Consumers Energy Company Financial Health: Key Insights for Investors

As Michigan's largest energy provider and a subsidiary of CMS Energy with roots reaching back to 1886, Consumers Energy powers the everyday lives of 6.7 million residents across all 68 counties of the Lower Peninsula while pursuing a bold strategy-summed up in its mission of 'World‑Class Performance Delivering Hometown Service'-to combine industry‑leading reliability, safety and affordability with deep community ties; the company's vision to lead Michigan's clean energy transformation commits to zero‑coal and net‑zero carbon outcomes and targets meeting 90% of customers' energy needs with clean resources well ahead of scientific timelines, complemented by a pledge to double spending with diverse suppliers by 2024 and a culture rooted in Caring, Empowered, Deliberate, Agility and Ownership that drives investments in renewables, efficiency programs and local stakeholder engagement.

Consumers Energy Company (CMS-PB) Intro

• Service footprint: 6.7 million residents across all 68 Lower Peninsula counties.
• Corporate heritage: Founded 1886; headquartered in Jackson, MI.
• Corporate alignment: Subsidiary of CMS Energy.

Mission

• Provide safe, reliable, clean, and competitively priced energy to enhance Michigan communities' quality of life.
• Proactively engage customers and stakeholders to solve energy challenges and expand access.

Vision

• Be the region's trusted energy partner, leading the transition to clean energy while maintaining affordability and reliability.
• Meet 90% of customers' energy needs through clean resources a decade ahead of scientific recommendations.

Core Values

• Safety - protect employees, customers, and communities.
• Integrity - transparent governance and ethical decision-making.
• Customer Focus - reliable service and fair pricing.
• Stewardship - environmental responsibility and a commitment to eliminating coal usage.
• Inclusion & Economic Opportunity - expand diverse-supplier engagement and community investments.

Strategic Environmental & Community Targets

• Eliminate coal usage from generation operations (company target).
• Achieve net-zero carbon emissions (company target).
• Deliver 90% of customer energy from clean resources well ahead of baseline scientific recommendations.
• Double spend with diverse suppliers by 2024 to foster innovation and economic prosperity for underrepresented businesses.
• Active local engagement with stakeholders across Michigan to address energy-related needs and economic development.

Consumers Energy Company (CMS-PB) - Overview

• World-Class Performance: commitment to industry-leading reliability, safety, and efficiency targets across generation and distribution.
• Delivering Hometown Service: focus on local engagement, customer-focused programs, rapid outage response, and community investments.
• Strategic alignment: mission drives capital allocation to clean energy, grid modernization, resilience and customer affordability initiatives.

• Decarbonization: achieve net-zero greenhouse gas emissions for electric generation by 2040 and eliminate coal-fired generation fleet in line with announced timelines.
• Reliability & resilience: modernize the grid with advanced metering, distribution automation and targeted undergrounding to reduce outage minutes and improve storm response.
• Customer-centric innovation: expand customer programs for energy efficiency, demand response, low-income assistance and distributed energy resources.

• Safety: zero-harm workplace initiatives, contractor standards, and public safety outreach.
• Integrity: transparent regulatory filings, customer protections, and ethical business practices.
• Stewardship: long-term investment in infrastructure and the environment, including land, water and emissions stewardship.
• Community: targeted philanthropic giving, volunteer programs, and local hiring/prioritization.

• Capital projects: sustained annual investments to improve reliability indices (SAIDI/SAIFI reductions), modernize substations, and harden distribution assets.
• Clean energy procurement: utility-scale solar, energy storage procurement, and long-term renewable PPAs to meet emissions timelines.
• Customer programs: expanded energy-efficiency rebates, low-income weatherization, and distributed generation interconnection upgrades.
• Community engagement: grant programs, local workforce development and school partnerships emphasizing Michigan communities.

Consumers Energy Company (CMS-PB) - Mission Statement

• Provide safe, affordable, and reliable electricity and natural gas service to Michigan households and businesses.
• Lead Michigan's clean energy transformation by eliminating coal-fired generation, expanding renewable resources, and achieving net‑zero carbon operations.
• Invest in grid modernization and energy efficiency programs to improve resiliency and customer choice.
• Support local communities and economic development through workforce investment and equitable access to clean energy benefits.

• Zero-coal: complete elimination of coal-fired generation from the energy portfolio (target operational milestone reached by mid‑2020s).
• Net-zero carbon: enterprise-level commitment to achieve net‑zero carbon emissions (company target horizon: 2040).
• Renewable expansion: aggressive procurement, development, and contracting of solar and wind resources to replace retiring thermal capacity and meet customer demand for clean energy.
• Energy efficiency: scalable programs that reduce customer consumption and defer infrastructure investments while lowering overall emissions.

• Grid modernization: targeted investments in distribution automation, advanced metering, and resilience projects to reduce outage duration and integrate distributed energy resources.
• Renewable procurement: long-term power purchase agreements and utility-scale builds to increase renewable penetration and replace retired fossil capacity.
• Energy efficiency & demand management: incentives and programs for residential, commercial, and industrial customers to lower peak load and total system demand.
• Community and workforce initiatives: training, equitable access to clean energy programs, and partnerships to ensure benefits reach disadvantaged communities.

Consumers Energy Company (CMS-PB) Vision Statement

• Caring - Prioritizing employee, customer, and community well‑being through safety programs, customer assistance, and community partnerships.
• Empowered - Enabling frontline and engineering teams with authority and resources to make data‑driven decisions and innovate in service delivery.
• Deliberate - Applying rigorous planning, risk assessment, and stakeholder engagement to align investments with long‑term goals.
• Agility - Rapidly adapting to regulatory change, emerging technologies (e.g., distributed energy resources, grid‐edge solutions), and customer needs.
• Ownership - Embedding personal accountability across operations to improve reliability, reduce outages, and drive performance.

• Caring: expanded customer assistance, targeted storm response plans, and community grants to support resiliency.
• Empowered: decentralized decision frameworks for line crews and call centers, faster outage restoration, and pilot programs for employees to propose efficiency or safety improvements.
• Deliberate: multi‑year integrated resource plans (IRPs), stakeholder engagement cycles, and rigorous capital prioritization to balance affordability and decarbonization.
• Agility: accelerated interconnection processes for distributed generation, adoption of advanced distribution management systems, and flexible procurement strategies.
• Ownership: performance metrics tied to reliability, safety, and customer satisfaction; clear accountability for project delivery and operational outcomes.