What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-02-11 compared with 2024-02-08 · 96 added, 119 removed, 396 unchanged (35% of the section changed)

7 unchanged sentences

Consumers’ consolidated operations account for the substantial majority of CMS Energy’s total assets, income, and operating revenue.

CMS Energy’s consolidated operating revenue was $7.5 billion in 2023, $8.6 billion in 2022, and $7.3 billion in 2021.

CMS Energy’s consolidated operating revenue was $7.5 billion in 2024 and 2023, and $8.6 billion in 2022.

For further information about operating revenue, income, and assets and liabilities attributable to all of CMS Energy’s business segments and operations, see Item 8.

4 unchanged sentences

It provides electricity and/or natural gas to 6.8 million of Michigan’s 10 million residents.

Consumers’ rates and certain other aspects of its business are subject to the jurisdiction of the MPSC and FERC, as well as to NERC reliability standards, as described in Item 1.

Business—CMS Energy and Consumers Regulation.

Consumers’ consolidated operating revenue was $7.2 billion in 2023, $8.2 billion in 2022, and $7.0 billion in 2021.

Consumers’ rates and certain other aspects of its business are subject to the jurisdiction of the MPSC and FERC, as well as to NERC reliability standards, as described in CMS Energy and Consumers Regulation.

Consumers’ consolidated operating revenue was $7.2 billion in 2024 and 2023, and $8.2 billion in 2022.

For further information about operating revenue, income, and assets and liabilities attributable to Consumers’ electric and gas utility operations, see Item 8.

2 unchanged sentences

Almost all of Consumers’ properties are subject to the lien of its First Mortgage Bond Indenture.

For additional information on Consumers’ properties, see Item 1.

Business—Business Segments—Consumers Electric Utility—Electric Utility Properties and Business Segments—Consumers Gas Utility—Gas Utility Properties.

For additional information on Consumers’ properties, see Business Segments—Consumers Electric Utility—Electric Utility Properties and Consumers Gas Utility—Gas Utility Properties.

In 2024, Consumers served 1.9 million electric customers and 1.8 million gas customers in Michigan’s Lower Peninsula.

2 unchanged sentences

Gas service territory

Combination electric and

gas service territory

• Electric generation and battery storage facilities

Combination electric and gas service territory

CMS Energy and Consumers—The Triple Bottom Line

For information regarding CMS Energy’s and Consumers’ purpose and impact on the “triple bottom line” of people, planet, and profit, see Item 7.

For information regarding CMS Energy’s and Consumers’ purpose and impact on the “triple bottom line” of people, planet, and prosperity, see Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations—Executive Overview.

6 unchanged sentences

Consumers’ electric utility operations are not dependent on a single customer, or even a few customers, and the loss of any one or even a few of Consumers’ largest customers is not reasonably likely to have a material adverse effect on Consumers’ financial condition.

In 2023, Consumers’ electric deliveries were 36 billion kWh, which included ROA deliveries of three billion kWh, resulting in net bundled sales of 33 billion kWh.

In 2024, Consumers’ electric deliveries were 37 billion kWh, which included ROA deliveries of four billion kWh, resulting in net bundled sales of 33 billion kWh.

In 2023, Consumers’ electric deliveries were 36 billion kWh, which included ROA deliveries of three billion kWh, resulting in net bundled sales of 33 billion kWh.

4 unchanged sentences

For the 2023-2024 winter season, Consumers’ peak demand was 5,594 MW, which included ROA demand of 410 MW.

As required by MISO reserve margin requirements, Consumers owns or controls, through long-term PPAs and short-term capacity purchases, all of the capacity required to supply its projected firm peak load and necessary reserve margin for summer 2024.

As required by MISO reserve margin requirements, Consumers owns or controls, through long-term PPAs, short-term capacity purchases, and auction capacity purchases, all of the capacity required to supply its projected firm peak load and necessary reserve margin for summer 2025.

Electric Utility Properties:

9 unchanged sentences

• 1,098 substations with an aggregate transformer capacity of 28 million kVA

• four battery facilities with storage capacity of ten MWh

Consumers is interconnected to the interstate high-voltage electric transmission system owned by METC and operated by MISO.

2 unchanged sentences

Consumers’ Clean Energy Plan details its strategy to meet customers’ long-term energy needs.

The Clean Energy Plan was most recently revised and approved by

the MPSC in June 2022.

Under Michigan’s integrated resource planning process, Consumers is required to file proposed updates to its Clean Energy Plan before or in 2027;

these updates will outline a path to meeting the requirements of the 2023 Energy Law that was enacted in Michigan in November 2023.

Consumers’ Clean Energy Plan provides the foundation for its goal to achieve net-zero carbon emissions from its electric business by 2040.

This goal includes not only emissions from owned generation, but also emissions from the generation of power purchased through long-term PPAs and from the MISO energy market.

Consumers expects to meet 90 percent of its customers’ needs with clean energy sources by 2040 through execution of its Clean Energy Plan, which calls for replacing its coal-fueled generation predominantly with investment in renewable energy.

New technologies and carbon offset measures including, but not limited to, carbon sequestration, methane emission capture, forest preservation, and reforestation may be used to close the gap to achieving net-zero carbon emissions.

In accordance with its Clean Energy Plan, Consumers retired the D.E.

The Clean Energy Plan was most recently revised and approved by the MPSC in 2022.

Under Michigan’s integrated resource planning process, Consumers will file updates

to its Clean Energy Plan in 2026.

Together with updates to its renewable energy plan that Consumers filed in November 2024, these updated plans will serve as Consumers’ blueprint to meeting the requirements of the 2023 Energy Law that was enacted in Michigan in November 2023.

Under its Clean Energy Plan, Consumers will eliminate the use of coal in owned generation in 2025.

Specifically, Consumers retired the D.E.

Karn coal-fueled generating units in June 2023 and plans to retire the J.H.

Campbell coal-fueled generating units in 2025.

In order to continue providing controllable sources of electricity to customers while expanding its investment in renewable energy, Consumers purchased the Covert Generating Station, a natural gas-fueled generating facility, in May 2023.

For further information on Consumers’ progress towards its net-zero carbon emissions goal, see Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations—Executive Overview.

Consumers has also contracted to purchase 400 MW of capacity from battery storage facilities, which will be located in Michigan’s Lower Peninsula and are expected to be operational by 2027.

In November 2024, Consumers filed updates to its renewable energy plan, proposing an addition of up to 9,000 MW of both purchased and owned solar energy resources and up to 2,800 MW of new, competitively bid wind capacity.

These actions will enable Consumers to achieve 60 percent renewable energy by 2035 and 100 percent clean energy by 2040.

For further information on Consumers’ progress towards reducing carbon emissions and towards meeting the requirements of the 2023 Energy Law, see Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations—Executive Overview and Outlook—Consumers Electric Utility Outlook and Uncertainties.

Presented in the following table are details about Consumers’ 2024 electric generation and supply mix:

7 unchanged sentences

1 Unit, 1980 791 5,214

Karn 1 & 2 – Essexville 4

2 Units, 1959-1961 — 599

Oil/Gas steam generation

19 unchanged sentences

Solar Gardens – Allendale, Cadillac, and Kalamazoo 2016-2021 5 7

Battery storage capacity

Batteries – Grand Rapids, Cadillac, Kalamazoo, and Standish 4 Units, 2021-2022 3 —

Total owned generation 7,016 24,947

13 unchanged sentences

1 With the exception of wind and solar generation, the amount represents generation capacity during the summer months (planning year 2024 capacity as reported to MISO and limited by interconnection service limits).

For wind and solar generation, the amount represents installed capacity during the summer months, except for Heartland Farms Wind Project, which began operation in December 2023.

For wind and solar generation, the amount represents installed capacity during the summer months.

2 Consumers plans to retire these generating units in 2025.

1 unchanged sentence

Campbell 3 unit, net of the 6.69‑percent ownership interest of the Michigan Public Power Agency and Wolverine Power Supply Cooperative, Inc, each a non ‑ affiliated company.

4 Consumers retired these generating units in June 2023.

4 Represents Consumers’ 51‑percent share of the capacity of Ludington.

2 unchanged sentences

The pumped-storage facility consumes electricity to pump water during off-peak hours for storage in order to generate electricity later during peak‑demand hours.

7 Consumers completed the purchase of this facility in May 2023.

6 Represents purchases under long-term PPAs.

1 unchanged sentence

Financial Statements and Supplementary Data—Notes to the Consolidated Financial Statements—Note 3, Contingencies and Commitments—Contractual Commitments.

10 Represents purchases from the MISO energy market.

8 Represents the net amount of generation offered to and purchased from the MISO energy market.

Presented in the following table are the sources of Consumers’ electric supply for the last three years:

12 unchanged sentences

Nuclear generation 3

— 2,692 6,901

Net interchange power 4

6 unchanged sentences

3 Represents purchases from a nuclear generating facility that closed in May 2022.

4 Represents purchases from the MISO energy market.

4 Represents the net amount of generation offered to and purchased from the MISO energy market.

During 2024, 42 percent of the electric energy Consumers provided to customers was generated by its natural gas‑fueled generating units, which burned 107 Bcf of natural gas and produced a combined total of 14,856 GWh of electricity.

In order to obtain the gas it needs for electric generation fuel, Consumers’ electric utility purchases gas from the market near the time of consumption, at prices that allow it to compete in the electric wholesale market.

For the Covert Generating Station and Jackson and Zeeland plants, Consumers utilizes an agent that owns firm transportation rights to each plant to purchase gas from the market and transport the gas to the facilities.

For units 3 & 4 of D.E.

Karn, Consumers holds gas transportation contracts to transport to the plant gas that Consumers or an agent purchase from the market.

During 2024, Consumers acquired 29 percent of the electricity it provided to customers through long-term PPAs and the MISO energy market.

Consumers offers its generation into the MISO energy market on a day-ahead and real-time basis and bids for power in the market to serve the demand of its customers.

Consumers is a net purchaser of power and supplements its generation capability with purchases from the MISO energy market.

Consumers supplements its generation capability with purchases from the MISO energy market.

At December 31, 2024, Consumers had future commitments to purchase capacity and energy under long-term PPAs with various generating plants.

These contracts require monthly capacity payments based on the plants’ availability or deliverability.

The payments for 2024 through 2048 are estimated to total $7.2 billion and, for each of the next five years, range from $0.7 billion to $0.8 billion annually.

These amounts may vary depending on plant availability and fuel costs.

The payments for 2025 through 2047 are estimated to total $7.0 billion and, for each of the next five years, $0.7 billion annually.

These amounts may vary depending

on plant availability and fuel costs.

For further information about Consumers’ future capacity and energy purchase obligations, see Item 7.

1 unchanged sentence

Financial Statements and Supplementary Data—Notes to the Consolidated Financial Statements—Note 3, Contingencies and Commitments—Contractual Commitments.

During 2023, 33 percent of the energy Consumers provided to customers was generated by its natural gas‑fueled generating units, which burned 83 bcf of natural gas and produced a combined total of 11,221 GWh of electricity.

For units 3 & 4 of D.E.

Karn, Consumers holds gas transportation contracts to transport to the plant gas that Consumers or an agent purchase from the market.

During 2023, 20 percent of the energy Consumers provided to customers was generated by its coal-fueled generating units, which burned four million tons of coal and produced a combined total of 6,884 GWh of electricity.

During 2024, 22 percent of the electric energy Consumers provided to customers was generated by its coal-fueled generating units, which burned four million tons of coal and produced a combined total of 7,932 GWh of electricity.

In order to obtain the coal it needs, Consumers enters into physical coal supply contracts.

At December 31, 2023, Consumers had future commitments to purchase coal during 2024 and 2025;

At December 31, 2024, Consumers had future commitments to purchase coal during 2025 until the retirement of its last coal generating unit;

payment obligations under these contracts totaled $24 million.

Most of Consumers’ rail-supplied coal contracts have fixed prices, although some contain market-based pricing.

At December 31, 2023, Consumers had 77 percent of its 2024 expected coal requirements under contract, as well as a 67 ‑ day supply of coal on hand.

At December 31, 2024, Consumers had 100 percent of its remaining 2025 expected coal requirements under contract, as well as a 20 ‑ day supply of coal on hand.

In conjunction with its coal supply contracts, Consumers leases a fleet of railcars and has transportation contracts with various companies to provide rail services for delivery of purchased coal to Consumers’ generating facilities.

12 unchanged sentences

Consumers addresses this competition in various ways, including:

• aggressively controlling operating, maintenance, and fuel costs and passing savings on to customers

• aggressively controlling operating, maintenance, power supply, and fuel costs and passing savings on to customers

• providing renewable energy options and energy waste reduction programs

27 unchanged sentences

Gas Utility Supply:

In 2023, Consumers purchased 85 percent of the gas it delivered from U.S.

In 2024, Consumers purchased 85 percent of the gas it delivered to its full-service sales customers.

The remaining 15 percent was purchased from authorized GCC suppliers and delivered by Consumers to customers in the GCC program.

22 unchanged sentences

Gaylord, Michigan 100 Natural gas 134 20

Paulding County, Ohio 100 Wind 100 279

Paulding County, Ohio 2

100 Wind 100 270

Comstock, Michigan 100 Natural gas 76 245

Delta Township, Michigan 100 Solar 24 39

Phillips, Wisconsin 100 Solar 3 4

Delta Township, Michigan 2

100 Solar 24 40

Phillips, Wisconsin 3

100 Solar 3 4

Paulding County, Ohio 100 Solar and storage 3 —

8 unchanged sentences

The amount of capacity relating to CMS Energy’s ownership interest was 1,658 MW and net generation relating to CMS Energy’s ownership interest was 7,883 GWh at December 31, 2024.

2 This project began operations in October 2023.

2 NorthStar Clean Energy has entered into an agreement to sell a noncontrolling interest in this plant in 2025.

3 NorthStar Clean Energy has entered into an agreement to sell this plant in 2025.

The operating revenue from independent power production was $69 million in 2024, $64 million in 2023, and $58 million in 2022.

Energy Resource Management:

CMS ERM purchases and sells energy commodities in support of CMS Energy’s generating facilities with a focus on optimizing CMS Energy’s independent power production portfolio.

In 2023, CMS ERM marketed two bcf of natural gas and 6,828 GWh of electricity.

CMS ERM purchases and sells energy commodities in support of NorthStar Clean Energy’s generating facilities with a focus on optimizing the independent power production portfolio.

In 2024, CMS ERM marketed one Bcf of natural gas and 7,475 GWh of electricity.

Electricity marketed by CMS ERM was generated by independent power production of NorthStar Clean Energy and by unrelated third parties.

1 unchanged sentence

NorthStar Clean Energy Competition:

NorthStar Clean Energy competes with other independent power producers.

The needs of this market are driven by electric demand and the generation available.

NorthStar Clean Energy competes with other energy developers, energy retailers, and independent power producers.

The needs of this market are driven by current electric demand and available generation, as well as projections of future electric demand and available generation.

CMS Energy and Consumers Regulation

8 unchanged sentences

FERC regulates certain aspects of Consumers’ electric business, including, but not limited to, compliance with FERC accounting rules, wholesale electric and transmission rates, operation of licensed hydroelectric generating plants, corporate mergers and the sale and purchase of certain assets, issuance of securities, and conduct among affiliates.

FERC also regulates the tariff rules and procedures administered by MISO and other independent system operators/regional transmission organizations, including wholesale electric markets and interconnection of new generating facilities to the transmission system.

FERC also regulates the tariff rules and procedures administered by MISO and other independent system operators/regional transmission organizations, including rules governing wholesale electric markets and interconnection of new generating facilities to the transmission system.

FERC, in connection with NERC and with regional reliability organizations, also regulates generation and transmission owners and operators, load-serving entities, and others with regard to reliability of the bulk power system.

18 unchanged sentences

In November 2023, Michigan enacted the 2023 Energy Law, which among other things:

• raises the renewable energy standard from the present 15-percent requirement to 50 percent by 2030 and 60 percent by 2035;

renewable energy generated anywhere within MISO may be applied to meeting this standard, with certain limitations

• sets a clean energy standard of 80 percent by 2035 and 100 percent by 2040;

• raised the renewable energy standard from the present 15 ‑ percent requirement to 50 percent by 2030 and 60 percent by 2035;

renewable energy generated anywhere within MISO can be applied to meeting this standard, with certain limitations

• set a clean energy standard of 80 percent by 2035 and 100 percent by 2040;

low- or zero-carbon emitting resources, such as nuclear generation and natural gas generation coupled with carbon capture, are considered clean energy sources under this standard

• authorizes the MPSC to grant extensions of the clean energy or renewable energy standards deadlines if compliance is not practically feasible, would be excessively costly to customers, or would cause reliability issues

• increases the energy waste reduction requirement for electric utilities to achieve annual reductions in customers’ electricity use from the present one-percent reduction requirement to 1.5 percent beginning in 2026;

beyond this requirement, the law sets a goal of a two-percent reduction and requires that such goal be incorporated into in an electric utility’s integrated resource plan modeling scenarios

• increases the energy waste reduction requirement for gas utilities to achieve annual reductions in customers’ gas use from the present 0.75-percent reduction requirement to 0.875 percent beginning in 2026

• enhances existing incentives for energy efficiency programs and returns earned on competitively bid PPAs

• creates a new energy storage standard that requires electric utilities to file plans by 2029 to obtain new energy storage that will contribute to a Michigan target of 2,500 MW based on their pro rata share

• expands the statutory cap on distributed generation resources to ten percent

• expands the MPSC’s scope of considerations in integrated resource plans to include affordability, greenhouse gas emissions, environmental justice considerations, the effects on human health, and other environmental concerns

• provides the MPSC siting authority over large renewable energy projects

Consumers is required to file updates to its amended renewable energy plan before or in 2025 and its Clean Energy Plan before or in 2027.

Together, these updated plans will outline a path to meeting the requirements of the 2023 Energy Law by focusing on increasing the generation of renewable energy, deploying energy storage, helping customers use less energy, and offering demand response programs to reduce demand during critical peak times.

• authorized the MPSC to grant extensions of the clean energy or renewable energy standards deadlines if compliance is not practically feasible, would be excessively costly to customers, or would cause reliability issues

• increased the energy waste reduction requirement for electric utilities to achieve annual reductions in customers’ electricity use from the present one‑percent reduction requirement to 1.5 percent beginning in 2026;

beyond this requirement, the law set a goal of a two‑percent reduction and required that such goal be incorporated in an electric utility’s integrated resource plan modeling scenarios

• increased the energy waste reduction requirement for gas utilities to achieve annual reductions in customers’ gas use from the present 0.75‑percent reduction requirement to 0.875 percent beginning in 2026

• enhanced existing incentives for energy efficiency programs and returns earned on new clean or renewable PPAs

• created a new energy storage standard that requires electric utilities to file plans by 2029 to obtain new energy storage that will contribute to a Michigan target of 2,500 MW based on their pro rata share

• expanded the statutory cap on distributed generation resources to ten percent

• expanded the MPSC’s scope of considerations in integrated resource plans to include affordability, greenhouse gas emissions, environmental justice considerations, the effects on human health, and other environmental concerns

• provided the MPSC siting authority over large renewable energy projects

Consumers filed updates to its renewable energy plan in November 2024 and plans to file updates to its Clean Energy Plan in 2026.

Together, these updated plans will serve as Consumers’ blueprint to meeting the requirements of the 2023 Energy Law by focusing on increasing the generation of renewable energy, deploying energy storage, helping customers use less energy, and offering demand response programs to reduce demand during critical peak times.

CMS Energy and Consumers Environmental Strategy and Compliance

1 unchanged sentence

this commitment extends beyond compliance with applicable laws and regulations.

Consumers’ Clean Energy Plan details its strategy to meet customers’ long-term energy needs and provides the foundation for its goal to achieve net-zero carbon emissions from its electric business by 2040.

This goal includes not only emissions from owned generation, but also emissions from the generation of power purchased through long-term PPAs and from the MISO energy market.

Under its Clean Energy Plan, Consumers will eliminate the use of coal-fueled generation in 2025 and currently forecasts renewable energy capacity levels of over 60 percent in 2040.

For additional information on Consumers’ Clean Energy Plan, see Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations—Outlook—Consumers Electric Utility Outlook and Uncertainties.

In addition to Consumers’ efforts to reduce the electric utility’s carbon footprint, it is also making efforts to reduce the gas utility’s methane footprint.

Consumers’ Clean Energy Plan details its long-term strategy for delivering safe, reliable, affordable, clean, and equitable energy to its customers.

While Consumers’ existing Clean Energy Plan, established under Michigan’s integrated resource planning process, provides a path towards meeting the requirements of the 2023 Energy Law, Consumers will file updates to the plan in 2026 to expand and solidify that path.

Additionally, Consumers filed updates to its renewable energy plan in November 2024 to propose plans to meet the increased renewable energy standard.

Together, these plans will enable Consumers to achieve 60 percent renewable energy by 2035 and 100 percent clean energy by 2040 and will also contribute to Consumers’ achievement of its net-zero emissions goals.

Under its Methane Reduction Plan, Consumers has set a goal of net-zero methane emissions from its natural gas delivery system by 2030.

10 unchanged sentences

For example, Consumers has conducted an environmental justice analysis to help understand the environmental impacts of its clean energy transformation.

Similarly, Consumers is using an environmental justice screening tool provided by the State of Michigan in the planning of improvements to the electric distribution system, including prioritizing investments in more vulnerable communities.

Similarly, Consumers is using an environmental justice screening tool provided by the State of Michigan in the planning of improvements to the electric and gas distribution system, including prioritizing investments in more vulnerable communities.

A core tenet of environmental justice is inviting the input of the stakeholders in the local communities where CMS Energy and Consumers operate and invest.

4 unchanged sentences

Risk Factors, Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations—Outlook, and Item 8.

Management’s Discussion and Analysis of Financial Condition and Results of

Operations—Outlook, and Item 8.

Financial Statements and Supplementary Data—Notes to the Consolidated Financial Statements—Note 3, Contingencies and Commitments.

26 unchanged sentences

The UWUA and USW agreements expire in 2025.

The safety of employees, customers, and the general public is a priority of CMS Energy and Consumers.

The safety of co-workers, customers, and the general public is a priority of CMS Energy and Consumers.

Accordingly, CMS Energy and Consumers have worked to integrate a set of safety principles into their business operations and culture.

3 unchanged sentences

The target recordable incident rate for 2025 is 1.00, which, if achieved, would place Consumers within the first quartile of its EEI peer group.

Over the last ten years, Consumers’ OSHA recordable incident rate has decreased by 20 percent.

High-risk injuries encompass all recordable and non-recordable incidents with the potential for serious injury or fatality.

In 2023, the companies recorded ten high-risk injuries, achieving their goal of less than 20 high-risk injuries.

Within the utility industry, there is strong competition for rare, high-demand talent, including those related to renewable energy generation, technology, and data analytics.

In 2024, the companies recorded 11 high-risk injuries, achieving their goal of less than 13 high-risk injuries.

Within the utility industry, there is strong competition for rare, high-demand talent, including those related to electric line work, renewable energy generation, technology, and data analytics.

In order to address this competition and to be able to meet their human capital needs, CMS Energy and Consumers provide compensation and benefits that are competitive with industry peers.

Furthermore, CMS Energy and Consumers have developed a comprehensive talent strategy, the People Strategy, to attract, develop, and retain highly skilled employees.

Furthermore, CMS Energy and Consumers have developed a comprehensive talent strategy, the People Strategy, to attract, develop, and retain highly skilled co-workers.

The strategy focuses on three areas, which are summarized below.

5 unchanged sentences

To measure progress toward a breakthrough employee experience, CMS Energy and Consumers assess engagement, empowerment, and diversity, equity, and inclusion efforts using the companies’ culture index.

For the year ended December 31, 2023, the companies attained a score of 61 percent positive sentiment for engagement, 48 percent positive sentiment for empowerment, and 65 percent positive sentiment for diversity, equity, and inclusion.

CMS Energy and Consumers aim to enhance these scores by two percentage points year over year.

For the year ended December 31, 2024, the companies attained scores of:

◦ 72 percent positive sentiment for engagement, up 11 percentage points from 2023

◦ 65 percent positive sentiment for empowerment, up 17 percentage points from 2023

◦ 73 percent positive sentiment for diversity, equity, and inclusion, up eight percentage points from 2023

CMS Energy and Consumers aim to continuously improve these scores every year.

• Building Skill Sets at Scale:

With an overarching goal of ensuring employees have the right skills to succeed, CMS Energy and Consumers measure progress in this area through achievement of workforce planning and hiring milestones and through a first-time skill attainment index to evaluate the effectiveness of training.

With an overarching goal of ensuring co-workers have the right skills to succeed, CMS Energy and Consumers measure progress in this area through achievement of workforce planning and hiring milestones and through a first-time skill attainment index to evaluate the effectiveness of training.

CMS Energy and Consumers develop skill sets in co ‑ workers through a variety of means, including union apprenticeship programs and yearly trainings for newly required skills.

In 2023, CMS Energy and Consumers launched two new leadership development programs for mid-level and front-line leaders.

This talent strategy allows CMS Energy and Consumers to shape employees’ experience and enable leaders to coach and develop co ‑ workers, source talent, and anticipate and adjust to changing skill sets in the business environment.

This talent strategy allows CMS Energy and Consumers to shape co-workers’ experience and enable leaders to coach and develop co ‑ workers, source talent, and anticipate and adjust to changing skill sets in the business environment.

Diversity, Equity, and Inclusion

As a part of their People Strategy, CMS Energy and Consumers also employ a comprehensive diversity, equity, and inclusion strategy designed to embed diversity, equity, and inclusion into all aspects of their business.

This is done through embedding standards for diversity, equity, and inclusion into all company processes and ensuring these standards are incorporated into all employee experiences.

As a part of their People Strategy, CMS Energy and Consumers employ a broad and holistic diversity, equity, and inclusion strategy focused on embracing differences.

The strategy is aimed at integrating principles of equity and inclusion into every process and co ‑ worker experience.

To measure their success, CMS Energy and Consumers utilize select questions in the annual engagement survey to create a diversity, equity, and inclusion index.

9 unchanged sentences

Co ‑ workers are also empowered to engage in business employee resource groups and events that encourage candid conversations around diversity, equity, and inclusion.

These activities enhance personal growth, build stronger connections among co-workers, and contribute to a more inclusive workplace.

There are seven business employee resource groups available to all co ‑ workers;

2 unchanged sentences

• the Minority Advisory Panel, promoting a culture of diversity and inclusion among all racial and ethnic minorities through education, leadership, development, and networking

• the Veteran’s Advisory Panel, supporting former and active military personnel and assisting in recruiting and retaining veterans through career development

• GEN-ERGY, a multigenerational group designed to bridge the gap of learning, networking, and mentoring across the generations of the workforce

• the Veterans Advisory Panel, supporting former and active military personnel and assisting in recruiting and retaining veterans through career development

• Genergy, a multigenerational group designed to bridge the gap of learning, networking, and mentoring across the generations of the workforce

• the Pride Alliance of Consumers Energy, promoting an inclusive environment that is safe, supportive, and respectful for lesbian, gay, bi-sexual, and transgender persons and allies

• capABLE, aimed at removing barriers and creating pathways to meaningful work for employees of all abilities

• Capable, aimed at removing barriers and creating pathways to meaningful work for co-workers of all abilities

• Interfaith, a space for co ‑ workers of all backgrounds to gather and celebrate their unique beliefs, creating an environment of understanding and respect for all faiths, religions, and spiritual beliefs, including those with no faith affiliation

5 unchanged sentences

Executive Vice President 1/2020 – 12/2020

Senior Vice President 7/2016 – 1/2020

President, CEO, and Director 12/2020 – Present

Executive Vice President 1/2020 – 12/2020

Senior Vice President 7/2016 – 1/2020

NorthStar Clean Energy

4 unchanged sentences

NorthStar Clean Energy

Executive Vice President, CFO, and Director 5/2017 – Present

Executive Vice President, CFO, and Director 5/2017 – 6/2024

Chairman of the Board and Director 10/2018 – 10/2021

3 unchanged sentences

Vice President 11/2018 – 2/2022

Hendrian (age 55)

Senior Vice President 4/2017 – Present

Name, Age, Position(s) Period

Hofmeister (age 48)

2 unchanged sentences

NorthStar Clean Energy

Senior Vice President 9/2017 – Present

Senior Vice President 9/2017 – 6/2024

Name, Age, Position(s) Period

Johnson (age 46)

Senior Vice President and General Counsel 5/2019 – Present

Vice President and Deputy General Counsel 4/2016 – 5/2019

Senior Vice President and General Counsel 5/2019 – Present

Vice President and Deputy General Counsel 4/2016 – 5/2019

NorthStar Clean Energy

Senior Vice President, General Counsel, and Director 4/2019 – Present

Vice President and General Counsel 10/2018 – 4/2019

Senior Vice President, General Counsel, and Director 4/2019 – 6/2024

Senior Vice President and General Counsel 8/2018 – 6/2020

Venkat Dhenuvakonda Rao (age 53)

Senior Vice President 9/2016 – Present

NorthStar Clean Energy

Director 11/2017 – Present

Senior Vice President 9/2016 – Present

Rich (age 49)

Senior Vice President and Chief Customer Officer 8/2019 – Present

Senior Vice President and Chief Information Officer 7/2016 – 8/2019

Senior Vice President and Chief Customer Officer 8/2019 – Present

Senior Vice President and Chief Information Officer 7/2016 – 8/2019

LeeRoy Wells, Jr.

2 unchanged sentences

Vice President 8/2017 – 12/2020

Name, Age, Position(s) Period

McIntosh (age 49)

6 unchanged sentences

NorthStar Clean Energy

Vice President, Controller, and CAO 9/2021 – Present

Vice President, CAO, and Director 6/2024 – Present

Vice President, Controller, and CAO 9/2021 – 6/2024

Vice President and Controller 6/2021 – 9/2021

17 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business