Q2 2025 CMS Energy Corp Earnings Call

July 31, 2025

<unk> Energy's website in the Investor Relations section. This call is being recorded after the presentation. We will conduct a question and answer session and instructions will be provided at that time, if at any time during the conference you need to reach an operator, Please press star followed by zero or.

In the Investor Relations section. This call is being recorded after the presentation. We will conduct a question and answer session and instructions will be provided at that time, if at any time during the conference you need to reach an operator, Please press star followed by zero.

Just a reminder, that there will be a rebroadcast of this conference call today, beginning at 12 P. M. Eastern time running through August 7th.

This presentation is also being webcast and is available on CMS Energy's website in the Investor Relations section.

At this time I would like to turn the call over to Mr. Jason Sure Treasurer, and Vice President of Investor Relations.

At this time I would like to turn the call over to Mr. Jason <unk>, Treasurer, and Vice President of Investor Relations.

Welcome to HS Sinclair corporations second quarter 2025 conference call and webcast hosting the call. Today is Timo Chief Executive Officer of HS. HF Sinclair,

Thank you Sam.

Morning, everyone and thank you for joining us today.

Good morning, everyone and thank you for joining us today.

With me are Eric Roche, our President and Chief Executive Officer, and Reggie Hayes Executive Vice President and Chief Financial Officer.

This presentation contains forward looking statements, which are subject to risks and uncertainties.

This presentation contains forward looking statements, which are subject to risks and uncertainties. Please.

Please refer to our SEC filings for more information regarding the risks and other factors that could cause our actual results to differ materially.

He is joined by atnas at 10 of Chief Financial Officer, Steve LED better EVP of commercial value of pmpa, ezp of operations, and met Choice SVP of lubricants and Specialties. At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions. Following the presentation. If you would like to ask a question during that time, please press star on your please, please press star, and then 1 on your touch phone,

This presentation also includes non-GAAP measures reconciliations of these measures to the most directly comparable GAAP measures are included in the appendix and posted on our website.

And now I'll turn the call over to Gary.

Thank you, Jason and thank you everyone for joining us today.

Our investment thesis robust and solid continued our track record of industry leading results.

You know this and you've seen the results it delivers.

EAD. If, at any point your question had been answered. You may remove your cell from the queue by pressing the pound key. If you should require operator assistance, please press star zero. We ask that you leave your questions to 1 question and 1, follow-up. Additionally, we ask that you pick up your handset to allow optimal sound quality and please note that this conference is being recorded. It is now my pleasure to turn the floor over to Craig Perry, vice president investor relations. Craig, I may now go ahead, please.

As I've said before Michigan is open for business today.

Today I am pleased to announce we have reached an agreement with a new data center, which is expected to add up to one gigawatt of load.

Thank you Ellie. Good morning everyone and welcome to HF Sinclair. Corporation's second, quarter, 2025 earnings call this morning, may I please announcing results for the quarter ending June 30th 2025.

Slowed as incremental to our plan and part of the nine gigawatt pipeline that we have been working to locate in our service area.

If you would like a copy of the earnings press release, you may find it on our website at hsn.com.

We expect this load early ramp to start to show up in the latter portion of the five year plan.

We continue to see positive momentum with data centers within the nine gigawatt gigawatt pipeline and expect additional progress once we finalize the data center tariff.

before we leave with remarks, please note the Safe Harbor disclosure statement in today's press release in summary, it says, statements made regarding management expectations, judgments or predictions are forward-looking statements,

We continue to see positive momentum with data centers within the nine gigawatt gigawatt pipeline and expect additional progress once we finalize the data center tariff.

In addition to low growth from data centers, Michigan is on the move Grand Rapids, The heart of our electric service territory was recently ranked the number one city on the rise in the U S by Linkedin, highlighting their diverse industries from tech insurance manufacturing and health care.

these statements are intended to be covered under the Safe Harbor. Provisions of Federal Security laws. There are many factors that could cause results to differ from expectations including those noted in our SEC filings.

In addition to low growth from data centers in Michigan is on the move Grand Rapids, The heart of our electric service territory was recently ranked the number one city on the rise in the U S by Linkedin, highlighting their diverse industries from tech insurance manufacturing and health care.

This area is growing nicely, bringing jobs and people to the state.

The call also may include discussion of non-GAAP measures. Please see the earnings press release for reconciliations to GAAP financial measures. Also, please note that any time-sensitive information provided on today's call may no longer be accurate at the time of any webcast, replay, or rereading of the transcript. And with that, I'll turn the call over to Tim.

Good morning everyone. Thank you for joining our call.

And once again CNBC ranked Michigan is the top 10 best state for doing business.

And we are seeing it as I shared in Q1, we continue to see strong housing starts alterations as well as upgrades and relocations all signs of positive growth among residential and commercial customers.

All of this drives our long term annual sales growth estimates of 2% to 3%.

All of this drives our long term annual sales growth estimates of 2% to 3% and remember this is before this new data center is fully online.

And remember this is before this new data center is fully online.

We're excited about and committed to Michigan's future prosperity, we're prepared and ready to serve its growing energy needs.

On this next slide I want to connect a few dots, which highlight the investment opportunities, we see above and beyond our five year plan.

On this next slide I want to connect a few dots, which highlight the investment opportunities, we see above and beyond our five year plan in.

And specifically I want to share some early insight into our upcoming integrated resource plan filing.

Let me start here.

A long runway of customer investments is great, but isn't sustainable if your customers cannot afford them. So I like starting with customer affordability, what we know to be true is that growing demand like I shared on the previous slide enables longer term cost savings for our customers as our load growth we can expect.

The long runway of customer investments is great, but isn't sustainable if your customers cannot afford them. So I like starting with customer affordability, what we know to be true is that growing demand like I shared on the previous slide enables longer term cost savings for our customers as our low growth we can expect.

Or we can spread fixed cost over a larger customer base.

Or we can spread fixed costs over a larger customer base.

A win for all.

Add to it our ability to realize savings through the CE way.

<unk> cost saving opportunities and our energy waste reduction program that we have multiple ways to keep bills affordable for our customers.

<unk> cost saving opportunities and our energy waste reduction program, but we have multiple ways to keep bills affordable for our customers.

It is our strong focus on these cost saving opportunities the key bills affordable, both gas and electric and allow us to make needed customer investments.

And there are many customer investment opportunities greater than $25 billion above and beyond our five year plan.

Now we've talked previously about the investments needed in our electric grid was drive resiliency and reliability for our customers through our electric reliability roadmap.

Now we've talked previously about the investments needed in our electric grid, which drive resiliency and reliability for our customers through our electric reliability roadmap.

In addition, we have important investments clearly articulated in our renewable energy plan or RFP to meet Michigan's clean energy law.

And today I want to highlight our integrated resource plan or <unk>, which we will file in mid 2026.

We are still preparing for this filing.

But getting a clearer picture on what will be required for the future.

As I mentioned, we are building renewables required by the law and included in the our EP, which provide energy but limited capacity.

Our ERP will primarily address capacity.

Our IRB will primarily address capacity.

When we model it 2% to 3% sales growth that we are realizing the need to replace plant's existing capacity that will retire over the next five to seven years and the need to replace a large PPA that will expire in 2030, the model points, two additional storage and gas capacity.

When we model the 2% to 3% sales growth that we are realizing the need to replace plant's existing capacity that will retire over the next five to seven years and the need to replace a large PPA that will expire in 2030, the model points to additional storage and gas capacity.

We anticipate needing to build more storage than the amount required by the 2023 energy law.

We currently see this as a mix of owned and Ppas with the financial compensation mechanism.

And of course, we'll take advantage of supported tax credits for storage.

We also anticipate new gas capacity.

At multiple locations and we are well into the planning and preparations to realize this need.

Our first cut it looks like an additional $5 billion of opportunity outside the five year plan.

But limited capacity.

But understand that this is an early number and could be higher.

Our IRP will primarily address capacity.

But understand that this is an early number and could be higher.

We'll continue to keep you updated as a preparation continues prior to this filing of this important ERP.

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Okay.

As I've shared before CMS has a long history of working effectively with all administrations and I continue to be proud of our agility as a federal environment continues to evolve.

When we model the 2 to 3% sales growth, that we are realizing the need to replace plants. Existing capacity that will retire over the next 5 to 7 years and the need to replace a large PPA that will expire in 2030. The model points to additional storage and gas capacity.

We anticipate needing to build more storage than the amount required by the 2023 energy law.

Let's start with the one big Beautiful Bill Act and how it impacts the utility.

We currently see this as a mix of owned and ppas with the financial compensation mechanism.

As we understand the provisions today, our renewable projects within the five year financial plan are well positioned to meet timelines and requirements to receive full production and investment tax credits as well as transferability through 2029.

And of course, we'll take advantage of supported tax credits for storage.

We also anticipate new gas capacity.

at multiple locations and we are well into the planning and preparations to realize this need

These derisk $4 $5 billion of capital the renewable portion of the five year plan at the utility.

Our first cut looks like an additional 5 billion dollars of opportunity outside the 5-year plan.

Also ensures full transferability of the tax credits, which Rajiv will summarize in a moment.

But understand that this is an early number and could be higher.

This puts us well on track for the 2030 renewable requirement in Michigan Energy law in a way that maintains affordability for our customers.

We'll continue to keep you updated as preparation continues prior to the filing of this important IRP.

And recall that to the degree we see affordability concerns post 2029.

We have options with them a lot to mitigate costs, including outer state Ppas, where capacity factors, maybe higher or an extension to the compliance period.

We have options within the law to mitigate costs, including out of state Ppas, where capacity factors, maybe higher or an extension to the compliance period.

As I've shared before, CMS has a long history of working effectively with all administrations, and I continue to be proud of our agility as a federal environment continues to evolve. Let's start with one big, beautiful bill act and how it impacts the utility.

At a minimum we're seeing cost savings on self build projects through good lean engineering.

To further take cost out for our customers.

They do further take cost out for our customers.

Now, let me address Northstar.

Again this business makes up approximately 5% of the earnings mix sort of small with a majority of the growth at Dearborn, industrial generation or dig with energy and capacity sales.

Again this business makes up approximately 5% of the earnings mix sort of small with a majority of the growth at Dearborn industrial generation or dig with energy and capacity sales the.

As we understand the provisions today, our renewable projects within the 5 year. Financial plan are well positioned to meet timelines and requirements to receive full production and investment tax credits as well as transferability through 2029.

These de-risk $4.5 billion of capital. The renewable portion of the 5-year plan at the utility.

The renewables portion of the business is very small where we typically complete one to two solar projects a year with utility like returns are better.

The renewables portion of the business is very small where it typically complete one to two solar projects a year with utility like returns are better.

It also ensures full transferability of the tax credits, which Reggie will summarize in a moment.

At North Star, our renewable projects are safe Harbor through 2027 with some options in 2028.

At Northstar, our renewable projects are safe harbor through 2027 with some options in 2028.

This puts us well on track for the 2030 renewable. Requirement in Michigan's energy law in a way that maintains affordability for our customers.

And recall that to the degree. We see affordability, concerns post 2029.

Many of these projects are already contracted with off takers material secured and a solid plan to execute include.

Including strong contractual language.

We have options within the law to mitigate costs including out of-state ppas where capacity factors may be higher or an extension to the compliance period.

As we move forward, we'll continue to evaluate the need for capital across the business as we always do we'll.

While being mindful of the return on those investments.

At a minimum, we're seeing cost savings on self-build projects through good lean engineering. The CEA to further take costs out for our customers.

In light of the passage of the one that big beautiful Bill and subsequent executive order, we're using a sharp pencil in the five year planning process, which is well underway.

In light of the passage of the one that big beautiful Bill in subsequent executive order, we're using a sharp pencil in the five year planning process, which is well underway.

Now, let me address Northstar.

Includes growing value at dig and re contracting both energy and capacity as both markets continue to be strong.

Again, this business makes up approximately 5% of the earnings mix. So it is small with the majority of the growth at Dearborn industrial generation or dig with energy and capacity sales.

And your ability and willingness to shift capital to utility investments that benefit our customers.

The Renewables portion of the business is very small where it typically complete 1 to 2, solar projects, a year with utility like returns are better.

Shifting to the Federal Power Act 90 day emergency order in May were ordered by the department of energy or D. O E to continue to operate our J Campbell coal facility.

Shifting to the Federal Power Act 90 day emergency order in May we were ordered by the department of energy or D. O E to continue to operate our GH Campbell coal facility.

At Northstar our renewable projects are safe harbor through 2027. We have some options in 2028.

We are complying with that order and dispatching into MISO.

We are also currently reviewing our maintenance and investment plans for.

Many of these projects are already contracted with off-takers material, secured in a solid plan to execute, including strong, contractual language.

The facility should we see a push for longer term use.

As we move forward, we'll continue to evaluate the need for Capital across the business as we always do.

Keep in mind, the OEM order provides for cost recovery we.

Keep in mind, the order provides for cost recovery we.

Well, being mindful of the return on those Investments.

And we have filed a request with FERC for recovery from all MISO, north and central customers.

We have filed a request with FERC recovery from all MISO, north and central customers.

Who are served and benefit from the supply resource.

In light of the passage of the 1, big beautiful bill in subsequent. Executive order, we're using a sharp pencil in the 5-year planning process, which is well underway.

We expect a positive outcome from this proceeding there will be good for all stakeholders.

Finally, our minimal exposure to the auto industry diverse supply chain and continued focus on moving to U S based suppliers further limits potential tariff impacts.

This includes growing value at dig and recontracting both energy and capacity as both markets continue to be strong.

And the ability and willingness to shift Capital to utility Investments that benefit our customers.

Call much of the exposure is related to capital equipment, which means any impact would be spread over the life of the asset and with minimal impact to earnings and customer rates to date, we've only experienced about $250000 and increases.

Recall much of the exposure as it related to capital equipment, which means any impact would be spread over the life of the asset and with minimal impact to earnings and customer rates to date, we've only experienced about $250000 and increases.

Shifting to the federal power act 90-day emergency order in may we were ordered by the department of energy or doe to continue to operate our JH Campbell coal facility.

We are complying with that order and dispatching into my myself.

Again I appreciate the team's efforts on multiple fronts to continue to position <unk> for success and what is the dynamic federal environment.

We're also currently reviewing our maintenance and investment plans.

Again I appreciate the team's efforts on multiple fronts to continue to position <unk> for success and what is the dynamic federal environment.

For the facility. Should we see a push for longer term use?

Keep in mind, the Doe's order provides for cost recovery.

Let's take a moment to highlight Michigan's constructive regulatory environment.

Last month, the commission approved the first ever storm deferral at the utility a new precedent for Michigan.

We have filed requests with FERC for recovery from all MSO North and Central customers who are served and benefited from this supply resource.

Last month, the commission approved the first ever storm deferral at the utility a new precedent for Michigan.

We expect a positive outcome from this proceeding. That will be good for all stakeholders.

Speaks to our performance during the March and April ice storms.

Speaks to our performance during the March and April ice storms and the constructive nature of this commission.

And the constructive nature of this commission.

Well this isn't a unique aspect in the utility sector. It was noted as a best practice by Liberty consulting in the third party distribution audit and was approved by the commission.

This isn't a unique aspect in the utility sector. It was noted as a best practice by Liberty consulting in the third party distribution audit and was approved by the commission in a timely fashion.

Further limits. Potential tariff impacts

Finally fashion.

This is a great step to strengthen an already strong regulatory environment in the state.

We continue to be supportive of the Liberty audit of our distribution system. It was commissioned by the PSC and the results point directly to the important investments needed to improve reliability for our customers and bolsters. The game plan, we laid out in our reliability road map.

Recall much of the exposure is related to Capital Equipment, which means any impact would be spread over the life of the asset with minimal impact to earnings and customer rates to date. We've only experienced about 250,000 increases

Again, I appreciate the team's efforts on multiple fronts to continue to position, CMS energy for success. And what is a dynamic Federal environment?

We'll continue to read the audit findings in the future rate cases.

Want to take a moment to highlight Michigan's constructive regulatory environment.

<unk> rate cases.

Now jumping to the rate cases on the electric side. Our current rate case filing is larger than what you've seen from us in the past at a $460 million revenue increase and is well aligned to significantly improve reliability for our customers through additional capital investments and O&M.

Last month, the commission approved. The first ever storm deferral at the utility, a new precedent for Michigan. It speaks to our performance during the March and April ice storms and the constructive nature of this Commission.

Including vegetation management.

Frame this case from an affordability perspective if.

To frame this case from an affordability perspective.

Well, this isn't a unique aspect in the utility sector. It was noted as a best practice by Liberty Consulting, in the third-party distribution audit and was approved by the Commission in a timely fashion.

If we were to achieve 100%.

The rate case ask our electric residential electric bills will continue to be below the national average.

This is a great step to strengthen an already strong regulatory environment in the state.

In our gas case, we saw very constructive recommendation from the staff supporting approximately 80% of our revised <expletive> and about 95% of our capital.

In our gas case, we saw very constructive recommendation from the staff.

<unk> approximately 80% of our revised <expletive> and about 95% of our capital.

And while we're always open to settlement, we're confident in the investments we need to make in the core.

Quality of our case and comfortable going the distance to a fully adjudicated order.

For our longer term filings, we expect an order in our renewable energy plan or RTP by mid September.

<unk> will further define our renewable investments and feeds into our integrated resource plan that we'll file in mid 2026.

Now, jumping to the rate cases on the electric side, our current rate case filing is larger than what you've seen from us in the past at a 460 million Revenue. Increase, and is, well, aligned to significantly improve reliability for our customers, through additional Capital Investments and onm, including vegetation management

We are making important investments for our customers in the future of our growing state and we continue to see constructive outcomes time and time again.

We are making important investments for our customers and the future of our growing state and we continue to see constructive outcomes time and time again.

To frame this case from an affordability perspective.

if we were to achieve 100%,

Finally, I'd like to take a moment to welcome our New Commissioner Shaquille Meyers, who was appointed earlier this month by the Governor.

Of the rate case asked our electric our residential, electric bills will continue to be below the national average.

In our gas case, we saw very constructive recommendation from the staff.

Commissioner Myers has an impressive background. She was a member of the Governor's Senior leadership team and previously led speaker of the House, Joe Tate's office as his chief of staff. She understands the importance of economic development to bring good paying jobs to Michigan.

Commissioner Myers has an impressive background. She was a member of the Governor's Senior leadership team and previously led speaker of the house, Joe tastes office as his chief of staff.

Supporting Approximately 80% of our revised as and about 95% of our capital.

Understand the importance of economic development to bring good paying jobs to Michigan.

And while we're always open to settlement, we're confident in the Investments we need to make and the quality of our case and comfortable going the distance to a fully adjudicated order.

Played an instrumental role in the development of the 2023 energy law.

We look forward to working with Commissioner Meyers and the rest of the commission and staff as we have in the past to reach constructive regulatory outcomes.

Okay.

Now onto the financials for the quarter.

For our longer term filings, we expect an order in our renewable energy, plan or rep. By mid-september, our ra will further Define our renewable Investments and feeds into our integrated resource plan that will file in mid 2026.

We are in a strong position heading into the second half of the year for.

For the first half we reported adjusted earnings per share of $1 73.

We are making important Investments for our customers in the future of our growing State. And we continue to see constructive outcomes time and time again.

Well ahead of our budget and where we had planned to be.

According to our full year guidance.

<unk> has delivered strong performance, particularly in Q2 on all fronts regulatory operations and financial.

Finally, I'd like to take a moment to welcome our new commissioner shaquila Myers who is appointed earlier this month by the governor.

Therefore, we remain confident in this year's guidance and long term outlook and are reaffirming all our financial objectives.

Commissioner Myers has an impressive background, she was a member of the governor's, senior leadership team. And previously LED Speaker of the House, Joe Tate's office as his chief of staff.

Our full year guidance remains at $3 54 to $3 60 per share with continued confidence towards the high end.

Our full year guidance remains at $3 54 to $3 60 per share with continued confidence toward the high end.

She understands the importance of economic development to bring good-paying jobs to Michigan and played an instrumental role in the development of the 2023 energy law.

Longer term, we continue guide toward the high end of our adjusted EPS growth range of 6% to 8%.

we look forward to working with commissioner Myers and the rest of the commission and staff, as we have in the past to reach constructive regulatory outcomes,

With that I'll hand, the call over to Reggie.

Thank you Derek and good morning, everyone.

On slide nine you'll see our standard waterfall chart, which illustrates the key drivers impacting our financial performance for the first six months of 2025 and our year to go expectations for clarification purposes. All of the variance analysis here and are in comparison to 2024, both on a year to date and a year to go basis.

Now, on to the financials for the quarter. We are in a strong position heading into the second half of the year.

For the first half, we reported adjusted earnings per share of 1.73. Well, ahead of our budget and where we had planned to be according to our full year guidance.

In summary through the first half of 2025, we delivered adjusted net income of $518 million or $1 73 per share, which compares favorably to the same period in 2024, largely due to the absence of unfavorable weather from the prior year and continued constructive regulatory outcomes.

The team has delivered strong performance, particularly in Q2 on all fronts, regulatory operations, and Financial.

Therefore we remain confident in this year's guidance and long-term Outlook and are reaffirming all our financial objectives.

Our full year, guidance remains at $3.54 to $3.60 per share with continued confidence toward the high end.

To elaborate on the topline impact of weather favorable weather in the second quarter largely in the month of June coupled with a relatively normal winter in Q1 provided an aggregate benefit of 32 cents per share of positive variance and it's worth noting that.

Longer term. We continue guide toward the high end of our adjusted EPS growth range of 6 to 8%.

With that, I'll hand the call over to Reggie.

Thank you Garrick and good morning everyone.

The weather outlook in our service territory remains quite good for the balance of the summer.

But the weather outlook in our service territory remains quite good for the balance of the summer.

Rate relief net of investment related expenses resulted in <unk> per share of positive variance due to constructive outcomes achieved in our electric rate order earlier in the year and our gas rate case settlement in the second half of 2024.

Of 2025, and our year to go expectations.

for clarification purposes, all of the variants analyses here in are in comparison to 2024 both on a year-to-date and a year ago basis

Moving on to cost trends Youll notice in the third bar on the left hand side of the chart <unk> per share of negative variance versus the comparable period in 2024.

Moving on to cost trends Youll notice in the third bar on the left hand side of the chart <unk> <unk> per share of negative variance versus the comparable period in 2024.

Due in large part to increased vegetation management in accordance with our electrical liability roadmap.

Due in large part to increased vegetation management in accordance with our electric reliability Road map.

In summary through the first half of 2025, we delivered adjusted, net income of 518 million, or 1.73 cents per share, which compares favorably to the same period in 2024. Largely due to the absence of unfavorable weather from the prior year and continued construction of regulatory outcomes.

What's less visible and that bar on the chart, but still quite meaningful as a favorable impact of the aforementioned service restoration expense deferrals granted by the commission in June which enabled us to establish a regulatory asset on the balance sheet for the substantial costs incurred during the March April storm.

Much less visible and that bar on the chart, but still quite meaningful as a favorable impact of the aforementioned service restoration expense deferrals granted by the commission in June which enabled us to established a regulatory asset on the balance sheet for the substantial cost incurred during the March April storm this timely and supportive action by the commission.

To elaborate on the top line impact of whether favorable weather in the second quarter, largely in the month of June. Coupled with a relatively normal winter in q1 provided. An aggregate benefit of 32 cents per share of positive variance and it's worth noting.

This timely and supportive action by the commission is not only a testament to the historic nature of the storm and our storm and our strong restoration efforts.

The weather outlook in our service territory remains quite good for the balance of the summer.

<unk> is not only a testament to the historic nature of the storm and our storm and our strong restoration efforts.

It's also worth repeating the constructive nature of the Michigan regulatory environment.

But it's also worth repeating that.

The constructive nature of the Michigan regulatory environment.

Rounding out the first six months of the year Youll note a negative variance of 27 per share highlighted in a catch all bucket in the middle of the chart the <unk>.

Rounding out the first six months of the year Youll note a negative variance of 27 per share highlighted in a catch all bucket in the middle of the chart. The primary drivers of the negative variance was related to the planned outage of our Dearborn industrial facility, which I'm pleased to report is fully operational and expect it to deliver normalized earnings.

Rate relief, net of investment-related expenses, resulted in 9 cents per share of positive variance due to constructive outcomes achieved in our electric rate order earlier in the year and our gas rate case settlement. In the second half of 2024,

Primary drivers of the negative variance was related to the planned outage of our Dearborn industrial facility, which I'm pleased to report is fully operational and expect it to deliver normalized earnings for the remainder of the year and.

Moving on to cost Trends, you'll notice in the third bar, on the left hand, side of the chart 4 cents, per share of negative variance versus a comparable period in 2024.

due in large, part to increase vegetation Management in accordance with our electric reliability road map,

For the remainder of the year in addition.

In addition, we anticipate backend weighted tax benefits from select renewable projects at Northstar other.

We anticipate backend weighted tax benefits from select renewable projects at Northstar other.

Other notable drivers in this category include the impact of parent financing activities, thus far in 2025, and slightly lower electric and gas non weather sales volumes.

Looking ahead as always.

We plan for normal weather, which equates to <unk> 11 per share positive variance for the remainder of the year given the absence of the mild temperatures experienced in the fourth quarter of 2024.

What's less visible in that bar on the chart but still quite meaningful is a favorable impact of the aforementioned service. Restoration expense deferral, granted by the Commission in June which enabled us to establish break asset on the balance sheet for the substantial costs incurred, during the March April storm, this timely and supportive action. By the commission, is not only a testament to the historic nature of the storm and our storm rest and our strong restoration efforts.

But it's also worth repeating.

From a regulatory perspective, worsening 18 cents per share of positive variance, which is largely driven by the aforementioned electric rate order received from the commission earlier this year and the expectation of a constructive outcome in our pending gas rate case.

The constructive nature of the Michigan Regulatory environment.

Closing out the glide path for the remainder of the year as noted during our Q1 call we anticipate lower.

<unk> expense at the utility driven by the usual cost performance fueled by the CE way, which we're estimating at <unk> <unk> per share of positive variance.

<unk> expense at the utility driven by the usual cost performance fueled by the CE way, which were estimated at <unk> <unk> per share of positive variance.

Rounding out the first 6 Months of the Year, you'll note a negative variance of 27 cents per share. Highlighted in the catch-all bucket in the middle of the chart. The primary drivers of the negative variance were related to the planned outage of our Dearborn industrial facility which I'm pleased to report is fully operational and expected to deliver normalized earnings for the remainder of the year.

In addition, we anticipate back-end weighted tax benefits from select renewable projects at Northstar.

Lastly in the penultimate bar on the right hand side of the chart. You will note an estimated range of 14 to 20 <unk> per share of negative variance, which largely consists of the absence of select onetime countermeasures from 2024, and the usual conservative assumptions around weather normalized sales inherent financings among other.

Lastly in the penultimate bar on the right hand side of the chart Youll note an estimated range of 14 to <unk> 20 per share of negative variance, which largely consists of the absence of select onetime countermeasures from 2024, and the usual conservative assumptions around weather normalized sales inherent financings among other.

Other notable drivers in this category include the impact of current financing activities thus far in 2025 and slightly lower electric, and gas, non-weather sales volumes.

Looking ahead as always.

Items, given our strong year to date performance, particularly in the second quarter, we remain confident in our ability to deliver on our full year financial objectives to the benefit of all stakeholders.

We plan for normal weather, which equates to 11 cents per share, positive variance of remainder, of of the Year, given the absence of the mild temperatures experienced in the fourth quarter of 2024.

Moving on to credit quality is worth it is worth noting that Moody's.

Reaffirmed our credit ratings in May as noted at the bottom of the table on slide 10, and we are currently working through the review process with S&P.

From a regulatory perspective, we're seeing 18 cents per share of positive variance, which is largely driven by the forementioned electric rate order received from the commission earlier this year. And the expectation of a constructive outcome in our pending gas rate case,

Longer term, we'll continue to target solid investment grade credit ratings, and we'll manage our key credit metrics accordingly, as we balance the needs of the business.

Closing out the Glide path of the remainder of the year as noted during our q1 call. We anticipate lower onm expense at the utility driven by the usual cost performance fueled by the CEO, which were estimating at 1 cent per share of positive variance.

Slide 11 offers an update to our funding needs in 2025 at the utility and at the parent with two quarters under our belt in 2025 I'm pleased to report that we've completed the vast majority of our financing plans for the year and as you'd expect we're busy evaluating alternatives for our remaining funding needs at the parent.

Slide 11 offers an update to our funding needs in 2025 at the utility and at the parent with two quarters under our belt in 2025 I'm pleased to report that we've completed the vast majority of our financing plan for the year and as you would expect we're busy evaluating alternatives for our remaining funding needs at the parent.

To that end, it's worth noting that we have executed 40 equity contracts of approximately $350 million, thus derisking roughly 70% of our planned equity needs for the year.

Lastly in the penultimate bar, on the right hand side of the chart, you'll note an estimated range of 14 to 20 cents per share of negative variance, which largely consists of the absence of Select 1-time counter measures from 2024 and the usual conservative assumptions around whether normalized sales and parent, financing among other items, you are our strong year to date performance. Particularly in the second quarter will remain confident in our ability to deliver on our full year for

Financial objectives to the benefit of all stakeholders.

Lastly, we continue to see strong appetite in the bilateral market for tax credit transfers and are on track to complete our planned monetization for the year longer term, we will continue to utilize this funding vehicle as a source of liquidity while available.

Lastly, we continue to see strong appetite in the bilateral market for tax credit transfers and are on track to complete our planned monetization for the year longer term will continue to utilize this funding vehicle as a source of liquidity while available.

Moving on to credit quality is worth. It is worth noting that Moody's

Reaffirmed our credit ratings in May as noted at the bottom of the table on. Slide, 10, and we are currently working through the review process with S&P.

To that end as Garrett noted based on the expected in service dates of our renewable project pipeline as well as the construction status on projects in the outer years of our plan, we are well positioned to execute on approximately $700 million of.

To that end as Derek noted based on the expected in service dates of our renewable project pipeline as well as the construction status on projects in the outer years of our plan, we are well positioned to execute on approximately $700 million.

Longer term will continue to Target solid investment grade credit ratings and will manage our key credit metrics accordingly, as we balance, the needs of the business.

Tax credit transfers and our five year plan.

A tax credit transfers and our five year plan.

As I've said before our approach to our financing plan is similar to how we run the business, we plan conservatively and capitalize on opportunities as they arise. This approach has been tried and true here and in Europe and has enabled us to deliver on our operational and financial objectives irrespective of the circumstances to the bell.

As I've said before our approach to our financing plan is similar to how we run the business, we plan conservatively and capitalize on opportunities as they arise. This approach has been tried and true year in in Europe and has enabled us to deliver on our operational and financial objectives irrespective of the circumstances to the.

Slide 11 offers an update to our funding needs in 2025 with the utility and at the parent with 2 quarters under our belt in 2025, and please report that we have completed. The vast majority of our financing plan for the year and as you'd expect we're busy, evaluating alternatives for our remaining funding needs at the parents.

<unk> of our customers and investors and this year is no different and with that I'll hand, it back to Gary for his final remarks before the Q&A session.

<unk> of our customers and investors and this year is no different and with that I'll hand, it back to Gary for his final remarks before the Q&A session. Thank.

To that end. It's worth noting that we have executed, 40 Equity, contracts of approximately 350 million dollars. Thus do you risking roughly 70% of our planned Equity needs of the year?

Rajiv.

Thanks Randy.

We've had a great quarter, and we are well positioned to deliver on the full year.

Lastly, we continue to see strong appetite in the bilateral market for tax credit transfers and are on track to complete our planned. Monetization for the year. Longer term will continue to utilize this funding vehicle as a source of liquidity while available.

But I'm even more excited about is how this team continues to deliver great outcomes for our customers and investors. The data Center agreement is a big win influx progress in our growth as well as the opportunity to invest in new renewable and thermal resources.

To that end. As Garrick noted based on the expected inservice, dates of our renewable project pipeline as well as a construction status on projects in the outer years of our plan. We are well positioned to execute on approximately 700 million dollars of tax credit transfers in our 5-year plan.

It is an exciting time in this industry and CMS energy is.

It is exciting time in this industry and CMS energy is well positioned.

He is well positioned.

With that said please.

With that said.

These open the lines for Q&A.

As I've said before our approach to our financing plan is similar to how we run the business. We plan conservatively and capitalize on opportunities as they arise.

Please open the lines for Q&A.

Thank you very much Eric.

A question and answer session will be conducted electronically. If you would like to ask a question. Please do so by pressing the star key followed by a number one on your Touchtone telephone.

The question and answer session will be conducted electronically. If you would like to ask a question. Please do so by pressing the star key followed by a number one on your Touchtone telephone if you're using a speaker function. Please make sure you pick up your headset.

Using a speaker function. Please make sure you pick up your headset will proceed in the order that you signal us and we'll take as many questions as time permits. If you do find that your question hop out said you may remove yourself from the queue by pressing star followed by number two on your Touchtone telephone.

This approach has been tried and true year in and year out and has enabled us to deliver on our operational and financial objectives, irrespective of the circumstances to the benefit of our customers and investors. And this year is no different. And with that, I'll hand it back to Gary for his final remarks before the Q&A session.

Thanks Reggie.

And the order that you signal us and we'll take as many questions as time permits. If you do find that your question have balance that you may remove yourself from the queue by pressing star followed by number two on your Touchtone telephone.

We'll pause for just a second while we registered the questions.

And our first question is from Julien Dumoulin Smith of Jefferies. Please go ahead.

We've had a great quarter and we are well positioned to deliver on the full year from even more excited about is how this team continues to deliver great outcomes for our customers and investors. The data center agreement is a big win in Flex progress, in our growth, as well as the opportunity to invest in new, renewable and thermal resources.

Hey, good morning team. Thank you very much and a nice progress again.

Morning, Tim Hey, Julien good morning.

Hey, Julien good morning.

It is exciting time in this industry and CMS energy is well, positioned.

Hey, good.

Thank you.

Okay.

With that Seb, please open the lines for Q&A.

I'm looking forward to Youre going to video Julien.

I'm looking forward to the video Julien.

Looking forward to the next video.

Dave.

You better believe it we got aware another rally cap.

With that said I am I wanted to kind of thinking a rally.

With that said I.

I wanted to kind of sticking a rally how about this gigawatt that you announced this morning, I just would love to get a little bit more details here I mean, how do you think about the ramp and the load.

This gigawatt that you announced this morning, I, just would love to get a little bit more details here I mean, how do you think about the ramp and the load.

You said, it's sort of the end of your outlook can you elaborate a little bit more specifically and then also can you elaborate a little bit more about how that fits into your resource mix I know that this is somewhat dynamic itself, but can you elaborate at least preliminarily and how youre thinking about it and when you say, it's ramping up in the back half of the plan.

Thank you very much. Carrick, the question and answer session will be conducted electronically, if you would like to ask a question, please do so by pressing the star key followed by a number 1 on your touchtone telephone, if you're using a speaker function, please make sure you pick up your headset. What proceeded in the order that you signal us? And we'll take as many questions as time. Permits, if you do find that your question has been answered. You may remove yourself from the queue by pressing star. Followed by number 2 on your touchtone telephone

We'll pause for just a second while we register the questions.

When do you get to that gigawatt I mean is it just a few hundred megawatts towards the back of the plant just give us a little bit more if you can and I appreciate it.

When do you get to that gigawatt I mean is it just a few hundred megawatts towards the backend of the plant just give us a little bit more if you can and I appreciate it.

And our first question is from Julian Dolan Smith at Jeffrey's, please go ahead.

We're excited about the opportunity here. It seems does a nice job of converting part of the snake nine gigawatt pipeline. So we have agreement in place and the counterparty has put a significant amount of money or capital into the into this agreement and that is really to secure.

We're excited about that.

The unity here it seems does a nice job of converting part of the snake nine gigawatt pipeline. So we have agreement in place and the counterparty has put a significant amount of money or capital into the into this agreement and that is really to secure.

Hey, good morning team. Thank you very much and a nice progress again. Good morning to you. Hey, Julia. Hey guys. Good morning. Hey,

I'm looking forward to the next video, Julian.

I was gonna say, I'm looking forward to the next video. Joined

Materials and equipment and be able to do final design work and so again nice progress from that perspective, but from a ramp perspective, those conversations continue with the counterparty.

And specifically, it's in 29 or 30, and then we're also looking at that ramp rate alright, and so that's kind of the framing. So that we will see early ramp early early megawatts show up in that 2029 or 2030 time frame.

And specifically, it's in 29 or 30, and then we're also looking at that ramp rate alright, and so that's kind of the framing. So that's we'll see early ramp early early megawatt show up in that 2029 or 2030 timeframe.

And then how fast is still being determined.

Then how fast is still being determined.

You better believe it, we got to wear another rally cap. Um, with that said, uh I am I wanted to cut speaking of rally um how about this gigawatt that you announced this morning? I just would love to get a little bit more details here. I mean how do you think about the ramp and the load um you said it's sort of the end of your outlook, can you elaborate a little bit more specifically? And then also can you elaborate a little bit more about how this fits into your resource mix? I know that this is somewhat Dynamic itself but can you elaborate at least preliminarily and how you're thinking about it and when you say, it's ramping up in the back half of the plan like

The discussions with the Counterparties. So that gives you a little a little flavor of that now you talked about the resource mix and just just to give you a little.

When do you get to that gigawatt? I mean, is it just a few hundred megawatts towards the back of the plan? Just give us a little bit more if you can and I appreciate it.

How we are thinking about this I love. The fact that that ramp is in that 29 30 into the into the next decade that gives us a ton of flexibility from a resource perspective, and so remember I'm a little long from a capacity perspective, that's a good starting point I'm still building capacity today, even though I'm long and building capacity because I have a renewable energy law, So I'm building renewables.

How we're thinking about this I love. The fact that that ramp is in that 29 30 into the into the next decade that gives us a ton of flexibility from a resource perspective, and so remember I'm a little long from a capacity perspective, that's a good starting point I'm still building capacity today, even though I'm long and building capacity because they have a renewable energy law, So I'm building renewables.

Now those have limited capacity, but I'm also build storage like that's already underway, we're doing that as well as well a few a few ppas on storage as well within STM and then hopefully you heard in my comment this.

Willingness and preparations to build out gas capacity now what I talked about was specifically the 2% to 3% load growth. So this would be incremental to plan, but hopefully hear some flexibility to build out gas and I would just say we are well into the preparation phases for for gas capacity build out. So that's helpful. That's kind of the mix.

And we're excited about the opportunity here at teams. Did a nice job of converting, part of the snake 9 gigawatt pipeline. So we have agreement in place and uh, the counterparty has put a significant amount of money or Capital into the, into the agreement. And that is really to secure uh, materials and equipment and be able to do final design work. And so again, nice progress uh from that perspective, but from a ramp perspective, those conversations continue with the the counterparty and specifically its in 29 or 30. And then we're also looking at that ramp rate, all right? And so that's so that's the megawatt show up in that 2029 or 2030 time frame. And then how fast is still being determined uh, and, and the discussions with the counterparty. So that gives you a little a little flavor of that.

<unk> will supply resources that will that will serve serve this customer.

The supply of resources that will that will serve a.

Serve this customer.

Awesome and then if I can just follow up quickly here at nine gigawatt number on the pipeline side. How are you seeing that evolved here I mean, I think it's flat quarter over quarter and again this does that.

Awesome and then if I can just follow up quickly here at nine gigawatt number on the pipeline side, how you're seeing that evolve here I mean, I think it's flat quarter over quarter and again I suppose.

And this in this modern day and age I'm curious on how youre seeing it evolve and specifically you said that you were to see any of that materialize would it be kind of tail end of the period or beyond at this point, just given what youre seeing on ramp rates for other customer contracts.

In this modern day and age I'm curious on how youre seeing it evolve and specifically the extent to which you were to see any of that materialize would it be.

Kind of tail end of the period or beyond at this point, just given what youre seeing on ramp rates for other customer contracts.

That night.

Gigawatt pipeline.

Continues to fill what I'd put it as conservative if you look at some of our other public documents you would see a larger pipeline, we feel confident in the nine and I've talked about that being a gradient. There are some customers within that pipeline, where we continue to exchange and terms and conditions and red lines and and one of the next stage gates specific.

Continues to fill and that's what I put it as conservative if you look at some of our other public documents you would see a larger pipeline, we feel confident in the nine and I've talked about that being a gradient. There are some customers within that pipeline, where we continue to exchange terms and conditions and red lines and and one of the next stage gates specifics.

Is this data center tariff and so I would expect that additional customers could convert once we have that data center tariff in place.

Was specifically the 2 to 3% low growth. So this would be incremental the plan, but hopefully here's some flexibility to build out gas and I would just say we're well into the preparation phases for, for gas capacity buildout. So that's how we'll that's kind of the mix of Supply resources that will that will serve, uh, serve this customer.

Awesome. And if I can just follow up,

So we can see continue to see good progress with that pipeline I'll also make a note we haven't talked about we've been talking a lot about data centers, there's good manufacturing base in there as well.

So we can see continue to see good progress with that pipeline I'll also make a note we haven't talked about we've been talking a lot about data centers. That's a good manufacturing base in there as well.

There's over 200 customers 200 customers that are non data centers that are a part of that overall large.

There's over 200 customers 200 customers that are non data centers that are a part of that.

Overall large.

Growth potential and so again I Miss things in Michigan looks strong and look good for the future.

Quickly here that 9 gigawatt number on the pipeline side. How are you seeing that evolve here? I mean, I think it's it's it's it's flat quarter and quarter and again I suppose that's in this in this modern day and age. I'm, I'm curious on how you're seeing it evolve and specifically speak to what you were to see any of it. Uh, materialize, would it be, you know, kind of tail end of the period or Beyond at this point, just giving what you're seeing on on ramp rights for, for other customer contracts.

Growth potential and so again Miss things in Michigan look strong and look good for the future.

Yeah.

Awesome, guys San Phan Alright.

Awesome guys C F N alright.

Yeah. Thanks Julien.

Yes, that's right.

Our next question is from Nicholas Campanella from Barclays. Please go ahead.

Hey, good morning, Nick Thanks for the time good morning.

I just wanted to I wanted to pick up where you left off there and just be a little bit more clear on how the the one gigawatt of new data center customer interacts with the <unk> 5 billion of Capex upside in the IRT is it just.

I just wanted to I wanted to pick up where you left off there and just be a little bit more clear on how the the one gigawatt of new data center customer interacts with the 5 billion of Capex upside in the ERP is it just.

Like is there is there like a tipping point, where if you do like another gigawatt, then you'd go back and revise that 5 billion number.

Like is there is there like a tipping point, where if you do like another gigawatt and you'd go back and revise that 5 billion number.

Let N be. That 9 gigawatt pipeline continues to fill is what I put it. It's it's conservative. If you look at some of our other public documents, you would see a larger pipeline, we feel confident in the 9, uh, and I've talked about that being a gradient. There are some customers within that pipeline where we continue to exchange, terms and conditions, and red lines. And, and 1 of the next stage, Gates specifically, is this data center tariff and so I would expect that additional customers could convert once we have that data center tariff in place and so, we can see continue to see good progress with that pipeline. I also make a note, we haven't talked much. We've been talking a lot about data centers, there's a good manufacturing base in there as well.

Whereas the point at which you would look at higher than two years to 3% long term sales outlook if that makes sense.

Whereas the point at which you look at higher than two years to 3% long term sales outlook if that makes sense.

Yes, let me broaden your question a bit as well so when I think.

Um, there's there's over 200 customers, 200, customers that are non data centers that are a part of that, you know, overall large, uh, growth potential. And so, again, if things in Michigan, look, strong and uh, look good for the future,

Well of course do another capital update in the Q4 call and there are several things that I'd say about that we'll update the grid numbers the reliability resiliency piece and the economic development projects will fall into that so you'll see that grow.

Of course doing other capital update in the Q4 call and there are several things that I would say about that we'll update the grid numbers the reliability resiliency piece and the economic development projects will fall into that so you'll see that grow.

Awesome, guys. See you soon. All right.

Yep, thank you.

We'll have you or a P. It'll be approved by that time, and so youll see the renewables and that'll be a big piece of that five year plan as well and here's the thing about that renewables piece that I want to point out is that what we're seeing with the passage of the.

We will have your RVP it'll be accrued by that time, and so youll see the renewables and that'll be a big piece of that five year plan as well and here's the thing about that renewables piece that I want to point out is that what we're seeing with the passage of the.

Our next question is from Nicholas Campanella from Barclays. Please go ahead.

The Big Beautiful Bill Act is that there are more developers that are pulling projects forward and that gives us an opportunity to build transfer arrangements. It allows us to do maybe some ppas and some with the financial compensation mechanism and so that might grow a little bit, particularly in the near term for the utility and then theyre going to be some dollars for this ERP now.

Hey morning Nick. Thanks for the time morning. Hey, I just wanted to I wanted to pick up where you left off there and um just be a little bit more clear on how the, the 1 gigawatts of new data center customer interacts with the 5 billion of capex upside in the IRP, is it just

We've got a balance that right because we're going to file an <unk> in 2026 takes from 10 months to get a rate case approval that puts in 'twenty 'twenty seven, but we have to run some things in parallel.

We've got a balance that right because we're going to file an <unk> in 2026 takes from 10 months to get a rate case approval that puts in 2027, but we'll have to run some things in parallel.

Like is there is there like a tipping point where if you do like another gigawatt then you'd go back and revive that 5 billion number and just where, where is the point in which you? You look at a higher than 2 to 3%, long-term sales Outlook if that makes sense.

That because to be able to build out the capacity we need for the future.

Because to be able to build out the capacity we need for the future. We're gonna have to move in that direction. So you'll see some of that sprinkled into the into the plan going forward now to get to your question that $5 billion plus is really what we need to to deliver today with 2% to 3% sales growth was realizing.

Gonna have to move in that direction. So you'll see some of that sprinkled into the into the plan going forward now to get to your question that $5 billion plus is really what we need to to deliver today with 2% to 3% sales growth was realized in the retirement of some plants replacement of a large PPA.

Yeah, let me broaden your question a bit as well. So, when I think we'll do, we'll, of course, do another Capital update in the Q4 call and there are several things that I see about that. We'll update the grid number, the reliability, resiliency piece, and the economic development projects will fall into that. So you'll see that grow. Uh, we'll have the rep, it'll be approved by that time. And so you'll see the Renewables

The retirement of some plants replacement of a large PPA.

And that'll be a big piece of that 5-year plan as well. And here's the thing about that renewable space that I want to point out is that what we're seeing with the passage of the

Gigawatt is incremental so we'd have to adjust that number up and so again, let us play that out in the Q4 call as well as in other filings and you'll see that again.

Get woven into future.

Capital plans.

Excellent excellent okay, that's very clear.

And then just how do you feel about the gas case at this point and the ability to potentially settle that I know that we've been looking at a little bit more kind of a litigated full distance outcomes on the electric side, but wanted to just take your temperature on the gas.

And then just how do you feel about the gas case at this point and the ability to potentially settle that I know that we've been.

Looking at a little bit more kind of a litigated full distance outcomes on the electric side, but wanted to just take your temperature on the gas.

We're in a great great spot right now.

When I say, great spot, 80% of the revised as 95% of our capitals improve that's a great case from a quality perspective, it's the right investments to make in the state and we continue to be open to settlement.

August we should have a PFD on it.

Hear hear me out here, we're in a good spot and so uncomfortable going to fully adjudicated order.

But you can hear me out here.

In a good spot and so uncomfortable go into fully adjudicated order.

Yeah.

of the big beautiful bill act is that there are more developers that are pulling projects forward and that gets an opportunity to build transfer Arrangements. It allows us to do, maybe some ppas and some with the financial compensation mechanism and so that might grow a little bit particularly in the near term for the utility and then they're going to be some dollars for this P. Now we've got a balance that, right? Because we're going to file an IRP in 2026, take some 10 months to get a rate case approval, that puts it in 2027, but we're going to have to run some things in parallel in that because to be able to build out the capacity, we need for the future. Uh we're going to have to move in that direction. So you'll see some of that sprinkled into the into the plan going forward. Now to get to your question that 5 billion dollars plus is really what we need to the to deliver today with the 2 to 3% sales growth with realizing the retirement of some plants or placement of a large PPA. This get is income out. We have to play that out in the the Q4 call as well as another

Great and then if I could squeeze one more in just really appreciate the financing update Reggie it seems like Youre executing 25 as planned.

Great and then if I could squeeze one more and just really appreciate the financing update Reggie it seems like Youre executing 25 as planned.

Filing and you'll see that uh get woven into future Capital plans.

How are you kind of thinking about 2006, and whether there's an opportunity to kind of derisk the equity and 26 and is that something that you'd be open to.

Yeah I appreciate the question Nick the quick answer is that as we look at the second half funding needs. We have for 2025, we will also take into account funding needs. We have in the front half of 2026, and if there are opportunities to pull ahead some of those financing needs and efficient transaction. This year we may.

Yeah I appreciate the question Nick the quick answer is that as we looked at the second half funding needs. We have for 2025, we will also take into account funding needs. We have in the front half of 2026, and if there are opportunities to pull ahead some of those financing needs and efficient transaction. This year we may.

Excellent. Excellent. Okay, that's that's very clear. Um and then just how do you feel about the gas case at this point in the the ability to potentially settle that you know I know that we've been looking at a little bit more kind of litigated uh full distance outcomes on the electric side. The wanted to take your temperature on the gas. Thanks.

To do that so we're keeping all options on the table as you would expect them.

Look to do that so we're keeping all options on the table as you would expect them.

The funding environment remains quite good so again, we're going to keep as much flexibility as possible.

Okay. Thanks, so much.

Okay.

August. We should have a PFD on it. Uh, but hear me out here. We're in a good spot, and so I'm comfortable going to a fully adjudicated order.

Thank you at this time there are no further questions in the queue I'll hand back to Mr. Gary Michel for any closing remarks.

Thank you.

This time there are no further questions in the queue I'll hand back to Mr. Gary Michel for any closing remarks.

Thanks.

I'd like to thank you for joining us today I look forward to seeing you on the road take care and stay safe.

Right. And then if I could squeeze 1 more in just um, really appreciate the financing update. Reggie seems like you're executing 25 as planned. Um, just, how are you kind of thinking about 26 and whether there's an opportunity to kind of de-risk, the equity in 26? And is that something that you'd be open to thanks?

This concludes today's CMS energy Q2, 2025 cool. Thank you very much for joining.

Yeah, appreciate the question Nick. The quick answer is that uh as we look at the second half funding needs, we have for 2025. We will also uh, take into account funding needs. We have in the front half of 2026 and if there are opportunities, to pull ahead, some of those financing needs in an efficient transaction this year, we we may look to do that. So we're keeping all options on the table as you'd expect and uh, the the funding environment remains quite good. So uh again we're going to keep as much flexibility as possible.

Okay, thanks so much.

Thank you. At this time. There are no further questions in the queue. I'll hand back to Mr. Garrett myself, any closing remarks,

Thanks Seb.

I'd like to thank you for joining us today. I look forward to seeing you on the road. Take care and stay safe.

This concludes today's CMS energy, Q2, 2025 call. Thank you very much for joining.

Q2 2025 CMS Energy Corp Earnings Call

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