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Consumers Energy, the principal subsidiary of $CMS, reached agreement with $ETR for early termination of its contract to purchase power from the Palisades nuclear plant. Regulatory approval of the agreement is expected to lower customer costs by as much as $172MM, as well as drive additional investment by Consumers Energy.
$ETR said it plans to operate Palisades Power Plant in Covert, until 2022, under the Power Purchase Agreement with Consumers Energy, an arm of $CMS. The impact of the decision on free cash flow is expected to be positive, $100MM to $150MM compared to the PPA amendment with Consumers Energy. Earlier, $ETR decided to close Palisades on Oct 1, 2018.
Consumers Energy, principal subsidiary of $CMS, has announced that LeeRoy Wells, currently ED of Electric Systems Operations and Maintenance, will be named VP of Operations Support, effective Aug 16, 2017. He will be responsible for the company’s supply chain, corporate safety and health, fleet, facilities, and real estate departments.
$CMS said Brandon J. Hofmeister will succeed David Mengebier as SVP of Governmental, Regulatory & Public Affairs, effective July 1, 2017. David Mengebier is named SVP & Senior Policy Adviser. Mr. Mengebier will serve as an adviser until his retirement on November 1, 2017. Lauren Youngdahl Snyder has been named VP of Customer Experience.
$CMS plans to spend a total of $75MM to complete 40 improvement projects and replace 67 miles of pipe with plastic and steel in various project areas. Consumers Energy is also investing $120MM in its natural gas system in 2017 at Michigan, and another $183MM in pipeline integrity this year.
$CMS said that on CapEx and O&M, the customer's price makes up CapEx, O&M and fuel. Therefore, looking at the total cost for customers, $CMS believes there is big opportunity to further reduce O&M as it has a good track record to do so. $CMS is seeing lots of runway there, mainly with the implementation of technology advancement like smart meters.
$CMS said that on the investment recovery mechanism (IRM), the appetite in the state is that as $CMS works with the commission further on multi-year plans, it makes it a lot easier for the commission to agree to a multi-year IRM. $CMS has one in its gas structure today & its enhanced infrastructure replacement program is about $75MM annual program.
$CMS and Consumers Energy appointed Thomas Webb as Vice Chairman, after 15 years as EVP and CFO. Webb also announced plans to retire Nov. 1, 2017. In his role as Vice Chairman, he will be responsible for duties determined by CEO Patricia Poppe. Rejji Hayes will succeed Webb as EVP and CFO on May 1, 2017.
$CMS reaffirmed its guidance for 2017 adjusted earnings of $2.14 to $2.18 per share or 6 to 8% annual adjusted EPS growth. In the quarter, the company continued investment in electric and renewable energy infrastructure to reduce system risk and increase capacity.
Integrated energy company $CMS reported a leap in 1Q17 earnings, helped by higher operating income and lower expenses. Net income jumped 21.34% to $199MM or $0.71 per share from $164MM or $0.59 per share a year ago. Operating revenue increased 1.55% to $1.82Bil from $1.80Bil.
Consumers Energy, the principal subsidiary of $CMS, filed a request with the Michigan Public Service Commission seeking approval to have Forsite Development acquire the two sites. It is expected the sites will be demolished within 2 years of the transaction being finalized, pending a positive outcome with the MPSC review.
$CMS raised its FY17 guidance adjusted earnings to $2.14-2.18 per share. It has increased its adjusted per share guidance to 6-8% in FY17. The company also increased its projected spending on capital expenditure over the next 10 years from $17-18Bil.
$CMS said its long-term business plan calls for 6-8% annual earnings growth and its quarterly common stock dividend has increased 10 cents, or nearly 38%, in the last 5 years. The company expects to continue to increase its dividend as it execute strategy and increase its earnings.