CMS Energy Corporation (CMS): Business Model Canvas [Dec-2025 Updated]

You're trying to map out exactly how CMS Energy Corporation is making money right now, especially with that massive clean energy pivot and the new data center demand hitting Michigan. Honestly, it's a classic regulated utility balancing act, but with a modern twist. We're looking at a model underpinned by a 9.90% allowed Return on Equity, funding a $20 billion capital plan through 2029, all while promising net-zero by 2040 and attracting big new loads like that 1 GW data center business. This canvas breaks down precisely how CMS Energy manages its 1.8 million electric and gas customers, navigates the MPSC (Michigan Public Service Commission), and turns essential infrastructure into predictable investor returns; check out the nine building blocks below to see the whole picture.

CMS Energy Corporation (CMS) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships that power CMS Energy Corporation's strategy, especially as they push hard on the Clean Energy Transformation. These aren't just vendor lists; these are the entities that directly enable or constrain major financial and operational moves.

The regulatory partnership with the Michigan Public Service Commission (MPSC) is foundational for Consumers Energy, the principal subsidiary. Constructive regulatory outcomes in 2025 directly impact the capital structure and investment recovery. For instance, in the electric rate case decided in March 2025, MPSC staff supported about 75% of the revised ask and 90% of the capital ask in the pending rate case. Furthermore, the gas rate case received a constructive order approving approximately 75% of the final ask and 95% of infrastructure investments.

A key environmental partnership involves Ashcor USA Inc. for coal ash repurposing, marking a significant step in the transition away from coal, which saw the retirement of the J.H. Campbell Generating Complex units in May 2025. This agreement, announced in January 2025, is set to transform 60 years of impounded coal ash into a cement substitute, with operations planned to start by January 1, 2027, lasting for about two decades. The resulting material can substitute up to 30% of traditional Portland cement.

Through its subsidiary NorthStar Clean Energy, CMS Energy Corporation partners with large industrial customers via Power Purchase Agreements (PPAs) to meet decarbonization goals. NorthStar Clean Energy recently secured up to USD 334 million in financing for two Michigan solar projects totaling 250 MW (a 200 MW Branch solar project and a 50 MW Genesee solar farm). As of November 2025, NorthStar owns and operates over 2 GW of power capacity across the US, with a pipeline exceeding 1 GW. Specific operational capacity includes 318 MW of wind, 64 MW of biomass, and 195 MW of solar. A notable past PPA involved General Motors purchasing approximately 600 megawatts of renewable energy.

Workforce development and safety rely on relationships with labor unions. As of the third quarter of 2025, CMS Energy employees are (44% unionized).

Financial stability is supported by financial institutions for planned capital needs. For 2025, CMS Energy planned new debt issuances totaling $1,270 million, with $1,000 million already issued year-to-date. As of March 31, 2025, the company held $16.26 billion in long-term debt. Separately, Consumers Energy launched a cash tender offer for debt securities totaling $125 million in June 2025.

Here's a quick look at the scale of some of these key external relationships:

The renewable portfolio supported by these partnerships is growing:

• NorthStar Clean Energy owned capacity: over 2 GW across US.
• NorthStar Renewables Pipeline: exceeds 1 GW.
• NorthStar Capacity Breakdown: 318 MW wind, 64 MW biomass.
• J.H. Campbell Coal Capacity Retired: nearly 1,500 megawatts.
• CMS Energy Long-Term Debt: $16.26 billion as of March 31, 2025.

Finance: draft 13-week cash view by Friday.

CMS Energy Corporation (CMS) - Canvas Business Model: Key Activities

You're looking at the core operational engine of CMS Energy Corporation, which is all about executing massive, regulated infrastructure plans while navigating the energy transition. Honestly, the key activities here are capital deployment and regulatory navigation-they drive everything.

The $20 billion utility capital investment plan for the period spanning 2025-2029 is central to CMS Energy's strategy. This spending is designed to enhance operational resiliency and support clean power production, aiming for an 8% annual rate base growth over the period.

Here's a quick breakdown of how that $20 billion capital expenditure (capex) budget is allocated across the utility segments for 2025 through 2029:

This investment is projected to grow the rate base from $26.2 billion at the end of 2024 to $39.4 billion by 2029. Plus, CMS Energy is already looking beyond that, with officials indicating an additional $20 billion or more could be added for the 2030-2045 period.

Managing regulatory rate cases is a constant, critical activity that directly impacts cost recovery and investment funding. Constructive regulatory outcomes are key catalysts for CMS Energy's growth narrative.

Recent regulatory achievements include:

• Finalized regulatory orders in both renewable and gas rate cases during the third quarter of 2025.
• A constructive outcome in the electric rate case in March 2025, which supports investments in the electric Reliability Roadmap.
• The Gas Rate Case U-21806 final order on September 30, 2025, authorized a gas base rate increase of $157 million effective November 1, 2025, based on a 9.8% ROE.
• The electric rate case relief contributed $0.28 per share of positive variance to the adjusted net income for the first nine months of 2025.

CMS Energy is actively developing and constructing new solar and wind generation to meet Michigan's energy laws and its own clean energy goals. The company plans to invest $5.2 billion in renewable energy resources, including wind, solar, and hydroelectric generation, between 2025 and 2029. The long-term goal is aggressive:

The company is also phasing out older assets, planning to retire the J.H. Cambell coal-fired unit in 2025, which helps meet the goal of ending coal-fueled generation that same year. New construction includes the 360 MW Sunfish Solar 2 project, targeting completion by Q2 2026, and other key projects like the 200 MW Branch Solar development.

Ensuring safe natural gas storage and delivery involves maintaining a vast pipeline network and strategic purchasing. Consumers Energy maintains approximately 30,000 miles of natural gas pipeline in total. This breaks down into over 27,000 miles of distribution pipeline and 2,500 miles of transmission pipeline.

Key operational facts for the gas system include:

• The Natural Gas Delivery Plan is a 10-year, $12 billion roadmap for infrastructure upgrades.
• The company aims to achieve net zero methane emissions for its natural gas delivery systems by 2030.
• CMS Energy purchases gas in summer months to store it, which helps avoid higher winter prices and market volatility.
• The storage system provides more than 50% of the gas supply during winter, increasing to 80% on the coldest days.

For the electric side, while the exact total mileage wasn't found, maintenance activities are substantial. In 2024, Consumers Energy cleared trees along 7,000 miles of electric lines. Underground lines currently represent about 15 percent of all Consumers Energy electric lines, with a plan to bury over 1,000 miles of line in the next five years, subject to approval.

The company is focused on reliability, with plans to deploy nearly 3,000 line sensors and 100 automatic transfer reclosers as part of the 2025-2029 capex plan.

CMS Energy Corporation (CMS) - Canvas Business Model: Key Resources

You're looking at the core assets that power CMS Energy Corporation's entire operation. These aren't just line items on a balance sheet; they are the physical and regulatory foundations that let the company operate and grow. Honestly, for a regulated utility, the infrastructure itself is the biggest moat.

The regulated utility infrastructure and rate base form the bedrock. As of late 2025, the utility segment is what drives the majority of earnings, with over 95% coming from regulated utility operations in 2024. The rate base, which is the value of assets on which the utility is allowed to earn a return, was reported at $26.2B in 2024, with a plan to grow this to an estimated $39.4B by 2029, targeting an 8% annual growth rate for the rate base over that period. You saw a specific electric rate base of $14.86B authorized in the final order for Electric Rate Case U-21585 as of March 21, 2025.

The geographic advantage is significant: CMS Energy Corporation holds an exclusive service territory across Michigan's Lower Peninsula through its Consumers Energy subsidiary. This means they are the sole provider for a massive customer base. They serve 6.8 million of Michigan's residents, which is most of the population in the Lower Peninsula. Specifically, they provide electric service to 1.9 million customers and natural gas service to 1.8 million customers across this footprint.

For the gas side, a critical resource is the substantial storage capability. CMS Energy Corporation maintains 309 bcf of natural gas storage capacity. This lets them manage supply economically, buying gas when it's cheap and storing it for peak winter demand.

The company's clean energy arm, NorthStar Clean Energy, brings a separate, growing set of independent power assets to the table. This portfolio is key to meeting the state's decarbonization goals and securing new, large industrial load contracts. NorthStar Clean Energy owns and operates over 2 GW of power capacity nationwide as of early 2025, with a development pipeline exceeding 1 GW.

Here's a quick look at the breakdown of NorthStar Clean Energy's operating assets, which are a mix of renewables and thermal generation:

The total generation capacity managed by Consumers Energy is also a core resource. The total supply is cited at 8,600 MW of generation capacity. For the electric utility specifically, the capacity figure was noted as 9,853 MW in one filing, showing the scale of the system they manage to serve their customers.

You can see how these physical and regulatory assets combine to create a powerful resource base:

• Regulated Footprint: Serving 6.8 million residents in Michigan's Lower Peninsula.
• Gas Storage: 309 bcf capacity for supply balancing.
• Electric Capacity: Total supply of 8,600 MW across the system.
• Renewable Platform: NorthStar owns and operates over 2 GW of capacity.
• Regulatory Support: Authorized 9.9% Return on Equity (ROE) in a recent electric rate case.

Finance: draft a sensitivity analysis on the impact of achieving the 8% annual rate base growth target on 2027 projected equity returns by next Tuesday.

CMS Energy Corporation (CMS) - Canvas Business Model: Value Propositions

You're looking at the core promises CMS Energy Corporation (CMS) makes to its stakeholders-the things that keep customers, regulators, and investors aligned with their strategy. Honestly, for a regulated utility, the value proposition is a tightrope walk between service quality, environmental goals, and financial discipline. Here's the breakdown based on their late 2025 positioning.

Safe, reliable, and affordable energy service

CMS Energy Corporation (CMS) centers its service value on the triple bottom line: people, planet, and prosperity. They explicitly state their commitment to delivering energy that is safe, reliable, and affordable to their customers in Michigan.

The proof points for reliability are rooted in recent performance and future investment:

• In 2024, customers received the best electric reliability over the past 20 years.
• CMS Energy Corporation (CMS) has a 10-yr Electric Reliability Roadmap in place.
• The utility has a $20 billion utility capital investment plan spanning 2025-2029 across electric and gas utilities.
• Of that total investment, 68% is directed toward electric utility investments, which fortifies the grid.

Affordability is key, especially when balancing massive capital needs. Here's a snapshot of the financial framework supporting this:

Commitment to net-zero carbon emissions by 2040

CMS Energy Corporation (CMS) is leading the Clean Energy Transformation, with specific, legally mandated targets for its electric business. The natural gas side has a slightly longer horizon for full net-zero GHG emissions.

The electric utility's primary environmental value proposition is:

• Goal to achieve 100% Clean Energy for the electric side by 2040, as established in Michigan's 2023 Energy Law.
• The 2024 Renewable Energy Plan targets 60% renewable energy by 2035.

For the entire business, including gas operations, the commitment extends further:

• Net-zero greenhouse gas emissions across the entire operation by 2050.
• Interim goal to help customers reduce Scope 3 emissions by 25% by 2035 from 2020 levels.
• Net zero methane emissions from the natural gas delivery system targeted by 2030.

Economic development, attracting 1 GW data center load

A major driver of near-term growth is securing large industrial load, particularly from data centers. CMS Energy Corporation (CMS) is actively pursuing a significant pipeline of this demand, which helps spread fixed grid costs.

You've definitely seen the headlines about the data center activity; it's a huge part of their growth story outside of organic sales increases. Here are the hard numbers they are working with:

• CMS Energy Corporation (CMS) has a major agreement to supply a new data center expected to add up to 1 gigawatt (GW) of incremental load.
• They are pursuing a total pipeline of 9 gigawatts (GW) of data center and other large industrial load.
• The expected ramp-up for the newly signed 1 GW data center load is anticipated to start showing up in the latter portion of the 5-year plan, potentially around 2029 or 2030.

To manage this, Michigan regulators approved specific terms for large customers (100 megawatts (MW) or greater) to ensure existing customers aren't left holding the bag:

This demand supports their long-term sales outlook, which is estimated at 2% to 3% annually before the new data center load is fully realized.

Predictable returns for investors via regulated model

CMS Energy Corporation (CMS) touts its history of consistent financial delivery, which is a direct benefit of operating in a constructive regulatory jurisdiction. This predictability is a core part of the investment thesis.

You can see this track record clearly:

• CMS Energy Corporation (CMS) has met its adjusted earnings guidance for each of the past 17 years.
• The full-year 2025 adjusted EPS guidance is set at $3.54 to $3.60 per share, with management expressing confidence toward the high end.
• Adjusted EPS for the first six months of 2025 was $1.73 per share.

The regulated structure underpins this stability, aiming for premium total shareholder return through growth and dividends.

Improved electric reliability through grid modernization

The value here is the investment in infrastructure renewal to ensure the grid can handle modern demands, including extreme weather and new large loads. This is directly funded through the capital plan.

The modernization efforts are backed by significant capital allocation:

• The 2025-2029 capital program includes over $20 billion in utility investments.
• This investment is designed to modernize electric and gas systems and support the Clean Energy Transformation.
• CMS Energy Corporation (CMS) is executing on its 5-year Electric Reliability Roadmap to build a more resilient grid.

Finance: draft 13-week cash view by Friday.

CMS Energy Corporation (CMS) - Canvas Business Model: Customer Relationships

You're looking at how CMS Energy Corporation, primarily through its subsidiary Consumers Energy, manages its relationship with the millions of Michigan residents and businesses it serves under a regulated monopoly structure. This relationship is a balancing act between mandated service, customer-driven clean energy goals, and maintaining affordability.

Regulated monopoly service relationship

As a regulated utility, CMS Energy Corporation's primary relationship is defined by its service territory obligations. Consumers Energy provides electricity and/or natural gas to about 6.8 million of Michigan's 10 million residents. This scale means the relationship is broad, but the service terms are set by the Michigan Public Service Commission (MPSC).

The company is actively managing large, high-demand customers, particularly data centers. The MPSC approved an amended tariff for data centers and similar very large electric customers with a minimum service threshold of 100 megawatts (MW), or aggregated loads of 100 MW with individual sites of 20 MW or more. To give you context on the current customer mix, Consumers Energy currently has only one customer larger than 100 MW on its system. The company connected approximately 450 megawatts year-to-date as of October 2025, out of a planned 900 megawatts in the current 5-year plan, with an additional approximately 100 megawatts under signed contracts.

Here's a quick look at the scale of large customer growth:

Customer-centric programs like energy waste reduction

CMS Energy Corporation emphasizes energy waste reduction (EWR) as a key way to keep bills affordable and meet clean energy goals. The utility's EWR programs have delivered an impressive $7.3 billion in customer savings since 2009. This focus is recognized externally; Michigan utilities' energy efficiency programs ranked No. 1 in the nation by the American Council for an Energy-Efficient Economy's 2025 State Energy Efficiency Scorecard. The company also offers voluntary clean energy options for customers.

The relationship extends to tailored programs:

• The MI Clean Air program has >770 residential and business customers enrolled.
• Solar Gardens has 4.5 MW subscribed capacity, with a new 2.5 MW site expected to break ground in Q2 2025, and is ~99% subscribed, serving about 2.5K customers.
• The low-income renewable energy program, launched in 2025, currently serves over 3,300 customers.
• The MI Sunrise component of Solar Gardens serves 50 customers, designed to aid income-qualified customers.

Digital self-service via online portals and mobile apps

CMS Energy Corporation has placed customer experience at the center of its new organizational structure, effective July 1, 2025, by appointing a Senior Vice President, Chief Customer and Growth Officer to oversee Customer Operations and Customer Experience. While specific adoption numbers for digital channels aren't explicitly detailed here, the organizational focus signals a commitment to improving digital interaction points for customers.

You can expect the digital relationship to be supported by:

• A dedicated leadership role focused on Customer Experience.
• Continued investment in infrastructure modernization to support reliable service delivery.
• A focus on making services accessible, which often means robust online and mobile functionality.

Community engagement and bill assistance programs

Affordability and community support are concrete parts of the relationship, especially for income-qualified customers. In August 2025, Consumers Energy committed $2 million to help thousands of customers offset past due summer energy bills, distributed via partners like The Heat and Warmth Fund (THAW) and The Salvation Army. This followed a $5 million contribution earlier in the year to assist with winter bills. For context on past support, in 2024, Consumers Energy helped over 137,000 Michiganders obtain nearly $69 million from various sources to pay energy costs. Furthermore, new State Emergency Relief (SER) caps for customers at 150% of the Federal Poverty Level (FPL) are $600 for electric/gas and $900 for all-electric households as of October 2025.

The company is actively engaging communities through structured initiatives. The Energizing Equity community series, launched in January 2025, consists of quarterly, in-person engagements in cities like Flint, Jackson, Kalamazoo, and Grand Rapids. The company also previously invested more than $1 million in targeted initiatives in Flint in 2023 to improve quality of life and reduce bills in disadvantaged communities.

Dedicated account managers for large commercial/industrial clients

For your largest customers, the relationship shifts to dedicated management, especially given the complex tariff structures for new large loads like data centers. The new organizational structure includes a focus on Sales under the Chief Customer and Growth Officer, which would naturally encompass managing these high-value, high-load industrial relationships. The recent MPSC approval of the data center tariff is a direct outcome of managing this specific customer segment's needs while protecting other ratepayers from subsidy risk. The company is working to connect approximately 450 megawatts year-to-date, indicating active management of large commercial/industrial connections. The relationship here is highly contractual, involving exit fees and collateral requirements for customers exceeding the 100 MW threshold.

Finance: draft 13-week cash view by Friday.

CMS Energy Corporation (CMS) - Canvas Business Model: Channels

You're looking at how CMS Energy Corporation (CMS) physically connects its energy supply to its customers across Michigan, which is the core of its distribution channels.

Electric transmission and distribution grid

The electric utility channel, primarily Consumers Energy, serves a massive footprint across the state. The company is heavily investing in this channel, with 68% of its $20 billion capital allocation plan for 2025-2029 directed toward electric utility investments, targeting an 8% annual rate base growth.

Here's a snapshot of the physical assets used to deliver power:

CMS Energy, through NorthStar Clean Energy, is also expanding its generation capacity to feed this grid, with a goal to add nearly 9,000 megawatts of solar and 2,800 megawatts of wind over the next two decades.

Natural gas transmission and distribution pipeline network

The natural gas delivery channel is equally extensive, moving gas for heating and other uses. Planned capital spending for the gas utility unit over 2025-2029 is approximately $6.3 billion.

The pipeline network details are:

• Natural Gas Customers Served: Nearly 1.8 million customers.
• Natural Gas Service Area: 54 of the 68 counties in Michigan's Lower Peninsula.
• Natural Gas Transmission Lines: 2,392 miles.
• Natural Gas Distribution Mains: 28,065 miles.
• Gas Storage Fields: 15.

The company maintains one of the largest underground natural gas storage capacities in the country, helping it purchase and store gas economically during warmer months for winter use.

Customer service call centers and field crews

CMS Energy Corporation's principal business, Consumers Energy, provides electricity and/or natural gas to 6.8 million of Michigan's 10 million residents across all 68 Lower Peninsula counties. While specific call center volumes aren't public, the scale of the customer base implies significant operational traffic for field crews and support staff.

The total customer base breakdown is:

• Total Residents Served by Consumers Energy: 6.8 million out of 10 million Michigan residents.
• Electric Customers: 1.8 million.
• Natural Gas Customers: Nearly 1.8 million.

The company is focused on reliability improvements, which directly impacts the work of field crews, supported by capital investment in grid modernization.

Direct power purchase agreements (PPAs) for enterprises

The Enterprises segment, through NorthStar Clean Energy, engages in independent power production and marketing, which involves securing long-term agreements that act as channels for revenue and capacity delivery. Consumers Energy has structured utility power purchase agreements with favorable terms and secured a safe harbor pipeline through 2029.

Growth in this area is significant, with a new data center agreement announced that is expected to add up to 1 gigawatt of load growth in their service territory. Furthermore, the company is accelerating storage deployment, with over 925 MW already under contract or in development.

Digital channels for billing and outage reporting

Digital interaction is a key channel for customer management, though specific billing or outage reporting statistics aren't detailed here. CMS Energy routinely posts important information on its website, considering the Investor Relations section, www.cmsenergy.com/investor-relations, a channel of distribution.

Digital and strategic alignment points include:

• Investor Information Channel: www.cmsenergy.com/investor-relations.
• Renewable Energy Customer Programs: Voluntary programs are offered to customers.
• Regulatory Support: The company received approval for 95% of infrastructure investments in a recent gas rate case.

The company is also working toward a 100% clean energy mandate by 2040.

CMS Energy Corporation (CMS) - Canvas Business Model: Customer Segments

CMS Energy Corporation, primarily through its subsidiary Consumers Energy Company, targets the vast majority of Michigan's Lower Peninsula population for its utility services.

The service territory covers all 68 Lower Peninsula counties, providing natural gas and electricity to approximately 6.8 million of Michigan's 10 million residents.

Here is a breakdown of the utility customer base as of mid-2025 data:

The customer base is strategically diversified across residential, commercial, and industrial users, which helps manage risk, especially given the regional economic focus.

• Residential customers form the core base for both electric and gas services.
• Commercial customers include small to medium businesses across the service territory.
• Diversified industrial customers contribute to the overall margin, though the auto sector, including tier I & II suppliers, represents only about 2% of total gross margin as of Q1 2025.
• The Top 10 largest customers combined account for approximately 2.5% of the total gross margin.
• Large-load growth customers represent a significant near-term opportunity, highlighted by an agreement with a new data center expected to add up to 1 gigawatt of load growth.

The company's capital investment plan of $20 billion across electric and gas utilities from 2025-2029 is designed to support this diverse customer base while driving rate base growth of approximately 8% annually.

CMS Energy Corporation (CMS) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive CMS Energy Corporation's operations, which are heavily weighted toward long-term asset investment and regulated utility costs. Here's the quick math on what's hitting the bottom line as of late 2025.

Heavy capital expenditures (CapEx) for infrastructure renewal

CMS Energy Corporation is executing a massive, multi-year investment program. The utility capital investment plan for the years 2025 through 2029 is set at $20 billion, which is an increase of $3 billion from the prior 2024-2028 plan. This signals a sustained, high level of spending on grid modernization, including the Reliability Roadmap initiatives like burying wires and installing sensors. For a snapshot of the ongoing commitment, capital expenditures (PPE purchases) in the third quarter of 2025 were approximately $0.9 billion.

Fuel and purchased power expenses

These costs are directly tied to serving customers and are subject to commodity price fluctuations, though often mitigated by regulatory pass-through mechanisms. For the third quarter of 2025, the costs were significant:

• Fuel for electric generation was $113 million.
• Purchased and interchange power totaled $490 million for the quarter.
• Purchased power from related parties was $21 million in the third quarter of 2025.

Operations and Maintenance (O&M) costs, including vegetation management

The day-to-day running of the electric and gas systems requires substantial spending on maintenance. While specific figures for vegetation management aren't itemized separately in the latest releases, the broader category gives you a sense of the scale. Maintenance and other operating expenses for the electric utility segment alone in the third quarter of 2025 were $388 million.

Here is a look at some key quarterly operating expenses for the electric and gas utility segments for the third quarter of 2025 (in Millions of USD):

Interest expense on debt financing for the rate base

Financing the massive asset base requires significant debt, and the associated interest is a major cost component, much of which is recoverable through rates. Interest on long-term debt for CMS Energy Corporation in the third quarter of 2025 amounted to $135 million. Also included in total interest charges for that quarter were $10 million in interest expense related to related parties.

Regulatory compliance and depreciation expenses

Depreciation reflects the cost recovery for the utility's physical assets. For the electric utility in the third quarter of 2025, depreciation and amortization was $274 million. Regulatory compliance costs are embedded across several line items, including general taxes, which were $104 million for the electric utility in Q3 2025. Constructive regulatory outcomes, like the electric rate case outcome in March 2025, are key to ensuring these costs are covered in the revenue stream. The company reaffirmed its long-term adjusted EPS growth target of 6 to 8 percent, with confidence toward the high end, which depends on recovering these costs.

For context on the company's overall financial performance supporting these costs, the reaffirmed 2025 adjusted earnings guidance is $3.56 to $3.60 per share.

Finance: draft 13-week cash view by Friday.

CMS Energy Corporation (CMS) - Canvas Business Model: Revenue Streams

You're looking at the core ways CMS Energy Corporation brings in money, which is heavily weighted toward its regulated utility operations in Michigan. The revenue streams are quite predictable, which is typical for a regulated utility, but they are also supplemented by non-regulated clean energy ventures.

The primary revenue drivers come from the regulated utility, Consumers Energy, which serves a massive customer base across the state.

• Regulated electric utility sales to approximately 1.9 million electricity customers.
• Regulated natural gas utility sales to approximately 1.8 million natural gas customers.

For the first quarter of 2025, the utility segments showed growth driven by rate increases and sales volume. Here's a look at the operating revenue for the three months ended March 31, 2025:

The overall revenue picture for CMS Energy Corporation as of the twelve months ending September 30, 2025, was $8.295B, marking a 10.96% increase year-over-year.

A key component of the regulated utility revenue is the allowed rate of return on its investments. The allowed Return on Equity (ROE), recently approved by the Michigan Public Service Commission (MPSC) for the rate case effective April 4, 2025, stands at 9.90%.

The non-regulated side, NorthStar Clean Energy, is focused on renewable energy development. While this segment represents a growth area, its revenue stream can be lumpy or result in losses depending on project timing and operations. For instance, for the three months ended March 31, 2025, the NorthStar Clean Energy segment reported a net loss of $18 million, down from a net income of $31 million in the same period of 2024.

Furthermore, CMS Energy Corporation is actively seeking to increase its authorized revenue base through regulatory filings. Consumers Energy filed an application with the MPSC on June 2, 2025, seeking an increase in its electric generation and distribution rates totaling $460 million. This request is based on a test year ending April 30, 2027, and includes a proposed overall rate of return based on a 10.25% authorized return on equity.

You can see the components of that $460 million request:

• Investment-related recovery: $194 million
• Operations & Maintenance (O&M) recovery: $158 million
• Cost of Capital adjustments (ROE 10.25% vs. Authorized 9.90%): $31 million component
• Deferral Surcharge: $24 million

Finance: draft 13-week cash view by Friday.