Mission Statement, Vision, & Core Values (2024) of CMS Energy Corporation (CMS).

An Overview of CMS Energy Corporation (CMS)

General Summary of CMS Energy Corporation (CMS)

CMS Energy Corporation, founded in 1987, is a leading energy company based in Michigan. The company primarily operates through its subsidiary, Consumers Energy, which provides natural gas and electricity to millions of customers across the state. CMS Energy's diverse range of services includes the generation, purchase, transmission, and distribution of electricity, as well as the purchase, transmission, and distribution of natural gas. As of 2024, CMS Energy serves approximately 6.7 million customers, making it one of the largest utility companies in the United States.

In 2024, CMS Energy reported total sales of $5.526 billion, reflecting a strong performance across its electric and gas utility segments. The company is committed to transitioning towards cleaner energy sources and has set ambitious goals for reducing carbon emissions in alignment with its Clean Energy Plan.

Company's Financial Performance in the Latest Financial Reports

For the nine months ended September 30, 2024, CMS Energy's net income available to common stockholders was $731 million, an increase from $571 million in the same period in 2023. The diluted earnings per share (EPS) rose to $2.45, compared to $1.96 in 2023. This increase was driven by electric and gas rate increases as well as higher earnings from NorthStar Clean Energy, which is involved in renewable energy initiatives.

Moreover, CMS Energy experienced significant growth in its electric utility segment, with electric utility revenue reaching $3.806 billion for the nine months ended September 30, 2024, up from $3.570 billion in 2023. This growth was supported by favorable weather conditions and the implementation of electric rate increases.

Introduction to CMS Energy as a Leader in the Industry

CMS Energy Corporation stands out as a leader in the energy industry, particularly in the Midwest region. The company's commitment to sustainability and innovation has positioned it as a key player in the transition to renewable energy. With plans to achieve net-zero carbon emissions from its electric business by 2040, CMS Energy is actively investing in clean energy technologies and infrastructure improvements.

As of 2024, the company has announced plans to install nearly 3,000 line sensors and 1,200 iron utility poles to enhance electric reliability. Additionally, the expansion of Consumers’ MI Clean Air program illustrates the company's dedication to addressing environmental concerns and promoting cleaner energy solutions.

To understand more about the strategies and initiatives that contribute to CMS Energy's success, further exploration of the company's operational goals and market strategies is encouraged.

Mission Statement of CMS Energy Corporation (CMS)

CMS Energy Corporation Mission Statement

CMS Energy Corporation's mission statement emphasizes its commitment to providing safe, reliable, and sustainable energy solutions to its customers while fostering economic growth and environmental stewardship. This mission serves as a guiding principle for the company’s strategic initiatives and operational practices, ensuring alignment with long-term goals aimed at enhancing customer satisfaction and community welfare.

Core Component 1: Safety

Safety is paramount in CMS Energy's operations. The company prioritizes the well-being of its employees, customers, and the communities it serves. For instance, CMS Energy has implemented rigorous safety protocols and training programs, achieving a safety performance improvement of 15% in 2023 compared to 2022. This focus on safety is reflected in their operational metrics, with a reported decline in workplace incidents and injuries.

Core Component 2: Reliability

Reliability in energy delivery is a critical aspect of CMS Energy's mission. The company has invested significantly in infrastructure upgrades, with a capital expenditure forecast of $17 billion through 2028, aimed at enhancing the resilience and reliability of its electric and gas distribution systems. During the first nine months of 2024, CMS Energy reported a 10% improvement in service reliability metrics, with fewer outages and quicker restoration times for customers. This reflects the effectiveness of their ongoing investments in modernizing grid technology.

Core Component 3: Sustainability

CMS Energy is committed to sustainability through its Clean Energy Plan, which aims for net-zero carbon emissions by 2040 from its electric business. As of September 2024, the company has already reduced greenhouse gas emissions by 20% compared to 2018 levels. Furthermore, CMS Energy plans to invest approximately $3.4 billion in renewable energy projects, including wind and solar, over the next five years, significantly contributing to Michigan's clean energy goals.

In summary, CMS Energy Corporation’s mission statement encapsulates its dedication to safety, reliability, and sustainability, which are essential for meeting the evolving energy needs of its customers while contributing positively to the environment and the communities it serves. This commitment is backed by substantial financial and operational investments aimed at enhancing performance in these core areas.

Vision Statement of CMS Energy Corporation (CMS)

Vision for Clean Energy Transition

CMS Energy Corporation's vision emphasizes a commitment to achieving net-zero carbon emissions from its electric business by 2040. This goal encompasses not only emissions from owned generation but also those from power purchased through long-term Power Purchase Agreements (PPAs) and from the MISO energy market. The company aims to meet 90% of its customers' energy needs with clean energy sources by 2040 through the execution of its Clean Energy Plan.

Commitment to Environmental Stewardship

In alignment with its vision, CMS Energy has set ambitious targets to advance environmental stewardship. The company aims for net-zero greenhouse gas emissions across its entire business by 2050. An interim goal includes a 20% reduction in customer emissions by 2030. CMS Energy plans to achieve these goals through carbon offset measures, renewable natural gas, energy efficiency, and the adoption of emerging technologies.

Infrastructure Investment for Reliability

CMS Energy is committed to substantial investment in infrastructure to enhance reliability and safety. Over the next five years, Consumers intends to spend approximately $17 billion on infrastructure upgrades, which includes:

Community Engagement and Workforce Development

CMS Energy recognizes the importance of workforce development in achieving its vision. In 2024, the company launched a Clean Energy Workforce Development Program, aimed at training individuals in advanced energy efficiency and related fields. This initiative is crucial for building a skilled workforce that supports the transition to clean energy.

Financial Performance and Goals

CMS Energy's financial performance reflects its strategic vision. For the nine months ending September 30, 2024, the company reported a net income of $731 million, with diluted earnings per share (EPS) of $2.45, compared to $571 million and an EPS of $1.96 for the same period in 2023. This increase is attributed to electric and gas rate increases and higher earnings from NorthStar Clean Energy.

Future Outlook

Looking ahead, CMS Energy anticipates modest growth in electric and gas demand. The company expects weather-normalized electric deliveries to increase and gas deliveries to remain stable relative to 2023. This outlook is supported by ongoing investments in clean energy and infrastructure improvements, reinforcing the company’s vision for a sustainable energy future.

Core Values of CMS Energy Corporation (CMS)

Integrity

The core value of integrity at CMS Energy Corporation emphasizes the importance of honesty and transparency in all business dealings. This value is crucial as it builds trust with stakeholders, including customers, employees, and investors.

In 2024, CMS Energy demonstrated its commitment to integrity through various initiatives:

• Implementation of a comprehensive ethics training program for employees, ensuring adherence to ethical standards and corporate governance.
• Regular audits and compliance checks to maintain transparency in financial reporting, resulting in a net income available to common stockholders of $731 million for the nine months ended September 30, 2024, compared to $571 million in the same period of 2023.

Customer Commitment

CMS Energy prioritizes customer commitment, focusing on providing reliable and affordable energy solutions. This value is vital for maintaining customer satisfaction and loyalty.

Key initiatives in 2024 included:

• The expansion of the MI Clean Air program to incorporate renewable natural gas projects, enhancing options for customers to reduce emissions associated with their natural gas use.
• Investment in infrastructure, including plans to install nearly 3,000 line sensors and 100 automatic transfer reclosers aimed at improving electric reliability.

Environmental Stewardship

Environmental stewardship is a core value for CMS Energy, reflecting its commitment to sustainable practices and reducing environmental impact.

In 2024, CMS Energy undertook significant steps to uphold this value:

• Set a target for net-zero carbon emissions from its electric business by 2040, with a long-term goal of achieving net-zero greenhouse gas emissions by 2050.
• Launched the Clean Energy Workforce Development Program to train employees in advanced energy efficiency and other sustainable practices.

Safety

Safety is paramount at CMS Energy, ensuring the well-being of employees, customers, and the communities it serves.

In 2024, the company enhanced its safety protocols through:

• Investment of $13.6 billion over the next five years in infrastructure upgrades aimed at improving safety and reliability in electric distribution systems.
• Implementation of strict safety standards in compliance with federal regulations for gas pipelines, enhancing the integrity of its gas delivery systems.

Innovation

Innovation is a core value that drives CMS Energy to seek new technologies and solutions for energy delivery and management.

In 2024, CMS Energy's commitment to innovation was evident through:

• Plans to power over 1,500 new fast charging locations for electric vehicles by 2030, supporting the transition to electric mobility.
• Investment in renewable energy sources, with a goal to add nearly 8,000 MW of solar generation by 2040.

CMS Energy Corporation's core values guide its operations and strategic direction, positioning the company as a leader in the energy sector while promoting a sustainable and responsible business model.

Article updated on 8 Nov 2024

Resources:

• CMS Energy Corporation (CMS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CMS Energy Corporation (CMS)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View CMS Energy Corporation (CMS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.