CMS Energy Corporation (CMS) Earnings Call Transcript & Summary

Good morning. I'm Garrick Rochow, President and CEO. Thank you for joining us at the 2021 Annual Shareholders' Meeting for CMS Energy and Consumers Energy. It's an honor to be here and represent these great companies. As the new CEO, I'm humbled to lead a corporation that has been serving for over 130 years, with 8,500 coworkers and many great retirees. Our coworkers continue to perform with a heart of service that is unparalleled by other utilities in the industry. 2020 was a unique year in many ways, but our team continued to deliver. 2021 is off to a great start, and I remain confident in both our strategy and our ability to execute on that strategy. Today, I'm proud to share our commitment to excellence. We continue to be grounded in our purpose: world-class performance, delivering hometown service. We measure our triple bottom line through people, planet and profit. The best thing about our company is our people, and not only the people who show up today, but the people who have gone before us to create a legacy of distinction. We operate in a world-class way with a hometown touch because we serve our friends, families and neighbors. We also recognize that this is more than electric or gas. This is light, heat and the quality of life that our customers have come to know and expect. Our investment thesis has stood the test of time and delivered for all our stakeholders, year in and year out. It has allowed us to deliver consistent, industry-leading financial performance and is rooted in these items: our infrastructure, smart and thoughtful customer investments and improving the services we offer. Affordability. We continue to enhance service and maintain affordability through the use of the CE Way, our regulatory and legislative construct, which is recognized as top tier, a strong and healthy balance sheet that supports customer investments over our diversified service area, the great state of Michigan. And last, but certainly not least, our commitment to lead the clean energy transformation. We have never served our customers better. Our customer service performance is ranked first quartile among all companies, not just utilities. We also celebrate best-ever employee engagement and empowerment. Our coworkers show up with a heart of service every day to serve our customers and communities, whether it shows up in our giving or by putting a pull-up in your yard, we are steadfast in our performance. We were recently named Forbes' #1 utility company for America's Best Employers for Diversity, and our volunteer efforts continue to demonstrate our commitment to our communities. I'd be remiss if I didn't recognize our union and our workforce who have continued to work safely in the field, plants, control rooms and remote offices throughout the pandemic, providing for one of our safest years on record. Our care for the planet began well before it was a trend. We are recognized by Barron's 100, Sustainalytics and MSCI as a sustainable and top-tier ESG company. That shows up through our renewable energy investments and customer programs like energy efficiency, demand response and electric vehicles. We have aggressive, industry-leading decarbonization commitments of net-zero carbon by 2040 and net-zero methane by 2030 and a growing renewable portfolio and carbon reduction plan that support our clean energy transformation. We will continue to lead the clean energy transformation with support from our 5-year $13.2 billion capital investment plan, which translates to 7% annual rate base growth and focuses on enhancing the safety and reliability of our system as we move toward net-zero carbon and methane emissions. In fact, 40% of our plan directly supports our clean energy transformation and includes our renewable generation, electric distribution investments to support this generation, grid modernization as well as programs like our gas main and service replacement programs. These thoughtful customer-focused investments, along with our industry-leading lean operating system, the CE Way, lead to consistent financial performance. Through the CE Way, we have also continued to improve reliability, reduce waste and deliver a better customer experience. At CMS Energy, we wake up every day to get after it. We deliver for our customers in all conditions: rain, snow, sleet, wind. We never quit. And for you, our shareholders, we never quit. In all conditions, we have delivered 18 years of consistent industry-leading financial performance. My coworkers are the backbone of our great companies and a true testament to how we succeed year after year. There is no place I'd rather be than with the amazing team I work with every day. I remain confident in both the present and the bright future at CMS Energy and Consumers Energy. Thank you, and stay safe.