Think of CMS Energy as the **Comcast or Spectrum for electricity and natural gas** services across a large part of Michigan.

Alternatively, it's like **AT&T for Michigan's electric and natural gas grid**, managing the infrastructure and supply of essential power and gas.

• Sale of Electricity: CMS Energy generates, transmits, and distributes electricity to approximately 1.9 million residential, commercial, and industrial customers in Michigan.
• Sale of Natural Gas: The company purchases, transmits, stores, and distributes natural gas to around 1.8 million residential, commercial, and industrial customers in Michigan.

CMS Energy (symbol: CMS) primarily serves individuals and businesses as a utility provider. It does not sell primarily to a few other companies. The company serves the following categories of customers:

• Residential customers
• Commercial customers
• Diversified industrial customers

Garrick J. Rochow, President and Chief Executive Officer

Garrick J. Rochow was appointed President and Chief Executive Officer of CMS Energy and its principal subsidiary, Consumers Energy, in December 2020. He joined Consumers Energy in 2003 and has held various leadership positions, including executive vice president of operations, vice president of customer experience, rates and regulation and quality and chief customer officer, and vice president of energy delivery. Rochow began his utility career as an environmental lead at the Holland Board of Public Works.

Rejji P. Hayes, Executive Vice President and Chief Financial Officer

Rejji P. Hayes has served as Executive Vice President and Chief Financial Officer of CMS Energy and Consumers Energy since 2017. He is responsible for treasury, tax, investor relations, accounting, financial planning & analysis, internal audit services, supply chain, fleet, facilities, and mergers & acquisitions. Prior to joining CMS Energy, Hayes served as executive vice president and chief financial officer of ITC Holdings Corp., a publicly traded electric transmission utility, where he co-led the strategic review that resulted in the sale of ITC to Fortis, Inc. He also held strategy and financial leadership roles for Exelon Corporation, Lazard Freres & Co., and Banc of America Securities. Hayes serves as chair of the audit committee for Fortive Corporation (NYSE: FTV).

Tonya L. Berry, Executive Vice President and Chief Operating Officer

Tonya L. Berry was named Executive Vice President and Chief Operating Officer of CMS Energy and Consumers Energy in 2025. In this role, she oversees the company's electric supply, electric distribution, and natural gas delivery business units. Previously, Berry was Senior Vice President of Transformation and Engineering for CMS Energy and Consumers Energy.

Shaun M. Johnson, Senior Vice President and General Counsel

Shaun M. Johnson was appointed Senior Vice President and General Counsel of CMS Energy and Consumers Energy, effective May 16, 2019. He leads the company's legal team and has overall responsibility for corporate secretary activities, corporate records, and compliance. Johnson previously served as vice president and deputy general counsel.

LeeRoy Wells, Jr., SVP and President of Gas Delivery, Consumers Energy Company

LeeRoy Wells, Jr. was named SVP and President of Gas Delivery of Consumers Energy Company in 2025. He oversees the company's natural gas delivery business unit, including its operations and engineering, and the enterprise-wide safety strategy. Wells joined Consumers Energy in 2006 and has held various leadership positions, including senior vice president of operations, vice president of gas operations, and vice president of operations support.

The key risks to CMS Energy (symbol: CMS) include:

1. Regulatory and Legal Risks: As a regulated utility, CMS Energy's operations, financial performance, and strategic initiatives are significantly influenced by regulatory decisions and legal frameworks. Key risks include the potential for regulatory bodies to delay or not approve desired rate increases, Integrated Resource Plans (IRPs), or proposed returns on equity (ROE). Unfavorable outcomes in rate cases or changes in regulatory policies can directly impact the company's ability to recover costs for investments in infrastructure and clean energy projects, affecting revenue and profitability.

2. Energy Transition and Environmental Compliance Risks: CMS Energy is undertaking a substantial energy transformation, aiming to end coal usage by 2025 and significantly expand its renewable energy capacity. This transition presents risks such as the potential for regulatory bodies to delay or disapprove aspects of its IRPs, challenges in acquiring sufficient generation capacity due to supply chain bottlenecks, and the considerable costs associated with environmental compliance. These costs include managing and closing coal ash disposal facilities and adhering to tightening carbon emission rules.

3. Operational Risks (including Severe Weather and Cybersecurity): The company faces inherent operational risks critical to maintaining reliable service. These include increased exposure to severe weather events, which can lead to significant costs for storm recovery and grid resilience measures. Additionally, the threat of cyberattacks and other operational disruptions remains a constant concern, requiring robust cybersecurity measures to protect assets, customer data, and ensure service continuity. Supply chain disruptions and inflationary pressures can also impact the timely and on-budget delivery of essential projects.

• The increasing adoption of distributed generation, such as rooftop solar panels combined with battery storage, allows customers to generate and store their own electricity, reducing their reliance on the traditional utility grid and impacting the volume of electricity purchased from CMS Energy.
• The growing trend towards the electrification of heating and appliances (e.g., heat pumps replacing natural gas furnaces, induction cooktops) poses a long-term threat to the natural gas utility segment by reducing demand for natural gas.

The addressable markets for CMS Energy's main products and services in Michigan are as follows:

• Electric Utility Services: The total revenue for electric utilities in Michigan for the year ended December 31, 2024, was approximately $30.3 billion. This represents the addressable market for electricity generation, purchase, transmission, distribution, and sale in Michigan.
• Gas Utility Services: The total retail sales revenue for gas utilities in Michigan for the year ended December 31, 2024, was approximately $3.98 billion. This constitutes the addressable market for the purchase, transmission, storage, distribution, and sale of natural gas in Michigan.
• Enterprises (Independent Power Production and Marketing, including Renewable Generation): While a specific annual market size in monetary terms for this segment is not readily available, the renewable energy sector in Michigan represents a significant and growing addressable market. Total solar investment in the state has reached $4 billion. Michigan's regulated electric utilities had over 7,500 megawatts (MW) of renewable capacity at the end of 2024, with projections to reach more than 8,300 MW by the end of 2025. Furthermore, the state's renewable energy capacity is expected to expand to 17,800 MW by 2030, driven by requirements for electric providers to meet a 50% renewable portfolio by 2030 and 60% by 2035. Michigan is also poised for a significant surge in solar power, with over 3,600 new MW scheduled to come online by 2028, the largest amount of any state in the Midwest Independent System Operator (MISO) region. The energy storage market in Michigan is also slated for exponential growth, with a procurement mandate of 2,500 MW by 2030.

CMS Energy (symbol: CMS) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and underlying factors:

1. Accelerated Capital Investment and Rate Base Growth: CMS Energy has significantly increased its five-year (2026-2030) utility capital investment plan to $24 billion, a $4 billion increase from the previous plan. This substantial investment is directed towards infrastructure modernization, system reliability, and clean energy generation across its electric and gas utility segments. These investments are projected to drive a compound annual growth rate (CAGR) of 10.5% in the rate base through 2030, excluding contributions from new data centers, directly supporting revenue generation through regulated returns on these assets.
2. Renewable Energy Expansion: The company's approved 20-year Renewable Energy Plan (REP) is a significant growth driver, aiming to add approximately 8 gigawatts (GW) of solar and 2.8 GW of wind capacity, with updated plans outlining up to 9 GW of purchased and owned solar resources and as much as 4 GW of new wind capacity over the next two decades. This plan represents an estimated $14 billion of capital investment through 2045. The NorthStar Clean Energy segment is expected to contribute to adjusted earnings per share (EPS) in 2026 through favorable capacity contract pricing and the completion of renewable projects, directly increasing revenue from clean energy generation.
3. Constructive Regulatory Outcomes and Rate Relief: CMS Energy operates within a stable and supportive regulatory environment in Michigan. Positive regulatory outcomes and rate relief are anticipated to be ongoing contributors to revenue growth. Management has highlighted that recent performance has been bolstered by constructive regulatory results. Expected rate case orders, such as the electric rate case (U-21870) in March 2026 and the gas rate case (U-21981) in October 2026, are poised to provide sustained revenue streams through approved rate adjustments and cost recovery mechanisms.
4. Growth from Large Load Customers: The company anticipates significant future revenue contributions from an expanding base of large load customers, particularly data centers and other industrial clients. CMS Energy has reported that commercial terms for its first data center are largely finalized, with potential online operation by 2028, and discussions for a second data center are in advanced stages. The addition of such large industrial loads requires substantial investment in distribution and supply, which will translate into increased electricity sales and associated revenue.
5. Energy Efficiency Program and Financial Compensation Mechanism (FCM) Incentives: Revenue growth will also be supported by incentives derived from energy efficiency programs and the Financial Compensation Mechanism (FCM). Energy efficiency programs are expected to generate approximately $65 million per year in incentive benefits, enhanced by recent energy law changes. The FCM is projected to provide nearly $50 million in incentives by the end of the decade, contributing to the company's overall financial performance and revenue through approved mechanisms designed to promote energy conservation and infrastructure investment.

Share Issuance

• CMS Energy issued $1 billion from a convertible offering in November 2025.
• The company plans approximately $700 million in equity issuance for 2026.
• CMS Energy had planned to issue up to $500 million in equity for 2025, which was completed.

Outbound Investments

• Consumers Energy, CMS Energy's subsidiary, acquired three wind projects totaling 517 MW of nameplate capacity since 2020.

Capital Expenditures

• CMS Energy has a planned capital expenditure of approximately $24 billion for the 2026-2030 period, which is an increase of $4 billion from the previous 2025-2029 plan.
• The $20 billion capital plan for 2025-2029 was allocated with $8.5 billion for electric distribution, $6.3 billion for gas utility infrastructure, and $5.2 billion for clean energy generation.
• Long-term capital investment opportunities of over $25 billion are projected through 2035, with $10 billion for electric reliability improvements and $10 billion for renewable energy development.