CMS Energy Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>CMS Energy Corp. filed its Q1 2024 10-Q report, detailing financial performance and capital expenditures.</b>

AI Summary

CMS ENERGY CORP (CMS-PC) filed a Quarterly Report (10-Q) with the SEC on April 25, 2024. CMS Energy Corp. filed its quarterly report (10-Q) for the period ending March 31, 2024. The filing includes financial data for Consumers Energy Company, a subsidiary. Key financial instruments mentioned include common stock, preferred stock, and various subordinated notes. The report details purchases of electricity and oil/gas for the first quarter of 2024 and 2023. Capital expenditures for ongoing projects are also reported for the first quarters of 2024 and 2023.

Why It Matters

For investors and stakeholders tracking CMS ENERGY CORP, this filing contains several important signals. This 10-Q provides investors with the latest financial snapshot of CMS Energy and its subsidiary, Consumers Energy, enabling informed investment decisions. The detailed breakdown of financial instruments and operational costs offers transparency into the company's financial health and strategic investments.

Risk Assessment

Risk Level: medium — CMS ENERGY CORP shows moderate risk based on this filing. The filing is a standard quarterly report, indicating ongoing operational and financial reporting, but lacks specific forward-looking statements or significant deviations that would suggest immediate high risk.

Analyst Insight

Monitor future filings for trends in revenue, net income, and capital expenditures to assess the company's growth trajectory and financial stability.

Key Numbers

• 2024-03-31 — Report Period End Date (Conformed period of report)
• 2024-04-25 — Filing Date (Filed as of date)
• 2024-01-01 — Quarter Start Date (Reporting period start date)
• 2023-01-01 — Prior Year Quarter Start Date (Prior year reporting period start date)

Key Players & Entities

• CMS ENERGY CORP (company) — Filer name
• CONSUMERS ENERGY CO (company) — Subsidiary name
• MI (location) — State of incorporation
• ONE ENERGY PLAZA (location) — Business address street
• JACKSON (location) — Business address city
• 49201 (location) — Business address zip
• 5177880550 (phone) — Business phone number
• 19920703 (date) — Date of former company name change

FAQ

Industry Context

CMS Energy Corporation operates as a public utility company, primarily engaged in the generation and distribution of electricity and natural gas.

Regulatory Implications

The filing is a Form 10-Q, a standard quarterly report required by the SEC for publicly traded companies to provide updates on their financial condition.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management's discussion and analysis.
2. Compare Q1 2024 financial metrics against Q1 2023 to identify year-over-year performance changes.
3. Analyze the notes to the financial statements for any specific disclosures regarding debt, equity, or contingent liabilities.

Key Dates

• 2024-03-31: Quarterly Period End — Marks the end of the reporting period for the 10-Q filing.
• 2024-04-25: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, providing the first quarterly update of the year.

Key Financial Figures

• $0.01 — CMS Energy Corporation Common Stock , $0.01 par value CMS New York Stock Exchange
• $100 — rgy Company Cumulative Preferred Stock, $100 par value: $4.50 Series CMS-PB New York
• $4.50 — lative Preferred Stock, $100 par value: $4.50 Series CMS-PB New York Stock Exchange
• $10 — nergy Company: Consumers Common Stock, $10 par value, privately held by CMS Energy

Filing Documents

• cms-20240331.htm (10-Q) — 1941KB
• cms10q20240331_ex31-1.htm (EX-31.1) — 10KB
• cms10q20240331_ex31-2.htm (EX-31.2) — 10KB
• cms10q20240331_ex31-3.htm (EX-31.3) — 10KB
• cms10q20240331_ex31-4.htm (EX-31.4) — 10KB
• cms10q20240331_ex32-1.htm (EX-32.1) — 7KB
• cms10q20240331_ex32-2.htm (EX-32.2) — 8KB
• cms-20240331_g1.jpg (GRAPHIC) — 53KB
• cms-20240331_g2.jpg (GRAPHIC) — 186KB
• cms-20240331_g3.jpg (GRAPHIC) — 100KB
• cms-20240331_g4.jpg (GRAPHIC) — 118KB
• cms-20240331_g5.jpg (GRAPHIC) — 57KB
• cms-20240331_g6.jpg (GRAPHIC) — 48KB
• 0000811156-24-000084.txt (&nbsp;) — 13029KB
• cms-20240331.xsd (EX-101.SCH) — 57KB
• cms-20240331_cal.xml (EX-101.CAL) — 100KB
• cms-20240331_def.xml (EX-101.DEF) — 550KB
• cms-20240331_lab.xml (EX-101.LAB) — 601KB
• cms-20240331_pre.xml (EX-101.PRE) — 598KB
• cms-20240331_htm.xml (XML) — 2506KB

Forward-looking Statements and Information

Forward-looking Statements and Information 9

—Financial Information

Part I—Financial Information 13 Item 1.

Financial Statements

Financial Statements 13 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 79 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 79 Item 4.

Controls and Procedures

Controls and Procedures 79

—Other Information

Part II—Other Information 80 Item 1.

Legal Proceedings

Legal Proceedings 80 Item 1A.

Risk Factors

Risk Factors 80 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 80 Item 3. Defaults Upon Senior Securities 80 Item 4. Mine Safety Disclosures 81 Item 5 . Other Information 81 Item 6. Exhibits 83

Signatures

Signatures 85 1 Table of Contents Glossary Certain terms used in the text and financial statements are defined below. 2023 Form 10K Each of CMS Energy's and Consumers' Annual Report on Form 10K for the year ended December 31, 2023 2023 Energy Law Michigan's Public Acts 229, 230, 231, 233, 234, and 235 of 2023 3G Third generation technology 4G Fourth generation technology ABATE Association of Businesses Advocating Tariff Equity Aviator Wind Aviator Wind Holdings, LLC, a VIE in which Aviator Wind Equity Holdings holds a Class B membership interest Aviator Wind Equity Holdings Aviator Wind Equity Holdings, LLC, a VIE in which Grand River Wind, LLC, a wholly owned subsidiary of NorthStar Clean Energy, has a 51percent interest Bay Harbor A residential/commercial real estate area located near Petoskey, Michigan, in which CMS Energy sold its interest in 2002 bcf Billion cubic feet CCR Coal combustion residual CEO Chief Executive Officer CERCLA Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended 2 Table of Contents CFO Chief Financial Officer Clean Air Act Federal Clean Air Act of 1963, as amended Clean Energy Plan Consumers' long-term strategy for delivering clean, reliable, resilient, and affordable energy to its customers; this plan was originally outlined and approved in Consumers' 2018 integrated resource plan and subsequently updated and approved through its 2021 integrated resource plan Clean Water Act Federal Water Pollution Control Act of 1972, as amended CMS Energy CMS Energy Corporation and its consolidated subsidiaries, unless otherwise noted; the parent of Consumers and NorthStar Clean Energy CMS Land CMS Land Company, a wholly owned subsidiary of CMS Capital, L.L.C., a wholly owned subsidiary of CMS Energy Consumers Consumers Energy Company and its consolidated subsidiaries, unless otherwise noted; a wholly owned subsidiary of CMS Energy Consumers 2014

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations MGP Manufactured gas plant 5 Table of Contents Migratory Bird Treaty Act Migratory Bird Treaty Act of 1918, as amended MISO Midcontinent Independent System Operator, Inc. mothball To place a generating unit into a state of extended reserve shutdown in which the unit is inactive and unavailable for service for a specified period, during which the unit can be brought back into service after receiving appropriate notification and completing any necessary maintenance or other work; generation owners in MISO must request approval to mothball a unit, and MISO then evaluates the request for reliability impacts MPSC Michigan Public Service Commission MW Megawatt, a unit of power equal to one million watts NAAQS National Ambient Air Quality Standards Natural Gas Act Natural Gas Act of 1938 Newport Solar Holdings Newport Solar Holdings III, LLC, a VIE in which Newport Solar Equity Holdings LLC, a wholly owned subsidiary of Grand River Solar, LLC, a wholly owned subsidiary of NorthStar Clean Energy, holds a Class B membership interest NorthStar Clean Energy NorthStar Clean Energy Company, a wholly owned subsidiary of CMS Energy, formerly known as CMS Enterprises Company NOx Nitrogen oxides NPDES National Pollutant Discharge Elimination System, a permit system for regulating point sources of pollution under the Clean Water Act NREPA Part 201 of Michigan's Natural Resources and Environmental Protection Act of 1994, as amended 6 Table of Contents NWO Holdco NWO Holdco, L.L.C., a VIE in which NWO Holdco I, LLC, a wholly owned subsidiary of Grand River Wind, LLC, a wholly owned subsidiary of NorthStar Clean Energy, holds a Class B membership interest OPEB Other post-employment benefits OPEB Plan Postretirement health care and life insurance plans of CMS Energy and Consumers, including certain present and former affiliates and subsidiaries P

Forward-looking Statements and Information

Forward-looking Statements and Information This Form 10Q and other CMS Energy and Consumers disclosures may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. The use of "anticipates," "assumes," "believes," "could," "estimates," "expects," "forecasts," "goals," "guidance," "intends," "may," "might," "objectives," "plans," "possible," "potential," "predicts," "projects," "seeks," "should," "targets," "will," and other similar words is intended to identify forward-looking statements that involve risk and uncertainty. This discussion of potential risks and uncertainties is designed to highlight important factors that may impact CMS Energy's and Consumers' businesses and financial outlook. CMS Energy and Consumers have no obligation to update or revise forward-looking statements regardless of whether new information, future events, or any other factors affect the information contained in the statements. These forward-looking statements are subject to various factors that could cause CMS Energy's and Consumers' actual results to differ materially from the results anticipated in these statements. These factors include, but are not limited to, the following, all of which are potentially significant: the impact and effect of recent events, such as worsening trade relations, geopolitical tensions, war, acts of terrorism, and the responses to these events, and related economic disruptions including, but not limited to, inflation, energy price volatility, and supply chain disruptions the impact of new regulation by the MPSC, FERC, and other applicable governmental proceedings and regulations, including any associated impact on electric or gas rates or rate structures 9 Table of Contents potentially adverse regulatory treatment, effects of a failure to receive timely regulatory orders that are or could come before the MPSC, FERC, or other governmental authorities, or effects of a government shutdown changes in the pe

—Financial Information

Part I—Financial Information

Financial Statements

Item 1. Financial Statements Index to Financial Statements

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 CMS Energy Consolidated Financial Statements (Unaudited) 42 Consolidated Statements of Income (Unaudited) 42 Consolidated Statements of Comprehensive Income (Unaudited) 43 Consolidated Statements of Cash Flows (Unaudited) 45 Consolidated Balance Sheets (Unaudited) 46 Consolidated Statements of Changes in Equity (Unaudited) 48 Consumers Consolidated Financial Statements (Unaudited) 50 Consolidated Statements of Income (Unaudited) 50 Consolidated Statements of Comprehensive Income (Unaudited) 51 Consolidated Statements of Cash Flows (Unaudited) 53 Consolidated Balance Sheets (Unaudited) 54 Consolidated Statements of Changes in Equity (Unaudited) 56 Notes to the Unaudited Consolidated Financial Statements 57 1: Regulatory Matters 57 2: Contingencies and Commitments 58 3: Financings and Capitalization 62 4: Fair Value Measurements 64 5: Financial Instruments 66 6: Retirement Benefits 67 7: Income Taxes 68 8: Earnings Per Share—CMS Energy 69 9: Revenue 70 10: Reportable Segments 73 11: Variable Interest Entities 76 12: Exit Activities 78 13 Table of Contents CMS Energy Corporation Consumers Energy Company

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations This MD&A is a combined report of CMS Energy and Consumers. Executive Overview CMS Energy is an energy company operating primarily in Michigan. It is the parent holding company of several subsidiaries, including Consumers, an electric and gas utility, and NorthStar Clean Energy, primarily a domestic independent power producer and marketer. Consumers' electric utility operations include the generation, purchase, distribution, and sale of electricity, and Consumers' gas utility operations include the purchase, transmission, storage, distribution, and sale of natural gas. Consumers' customer base consists of a mix of primarily residential, commercial, and diversified industrial customers. NorthStar Clean Energy, through its subsidiaries and equity investments, is engaged in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production. CMS Energy and Consumers manage their businesses by the nature of services each provides. CMS Energy operates principally in three business segments: electric utility; gas utility; and NorthStar Clean Energy, its nonutility operations and investments. Consumers operates principally in two business segments: electric utility and gas utility. CMS Energy's and Consumers' businesses are affected primarily by: regulation and regulatory matters economic conditions weather energy commodity prices interest rates their securities' credit ratings The Triple Bottom Line CMS Energy's and Consumers' purpose is to achieve world class performance while delivering hometown service. In support of this purpose, CMS Energy and Consumers employ the "CE Way," a lean operating model designed to improve safety, quality, cost, delivery, and employee morale. CMS Energy and Consumers measure their progress toward the purpose by considering th

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