Consumers Energy, the major subsidiary of CMS Energy Corporation (CMS) in line with its focus to boost green energy has begun accepting applications from business customers interested in developing their own renewable energy sources. Applications will be due on or before September 28, 2011.
Consumers Energy had previously contracted to purchase 2,000 kilowatts of power from customers that installed photovoltaic solar panels at their homes or businesses. The utility’s current solicitation is seeking applications for an additional 250 kilowatts of photovoltaic solar installations located at commercial or industrial customers’ businesses.
The development is part of the company’s Experimental Advanced Renewable Program. The program provides for the long-term purchase of renewable energy generated by solar energy systems erected on properties and owned by the company’s electric customers. The focus comes from the company’s commitment to meet Michigan’s 10% renewable energy standard.
CMS Energy’s regulated electric power operations in Michigan generate a relatively stable earnings stream. Thus growth prospects look robust for CMS Energy in a constructive regulatory environment along with steady recovery in the Michigan economy.
CMS Energy is making substantial investments in renewable energy, environmental quality, energy efficiency and other areas to continue to provide customers with safe, reliable and affordable service.
Consumers Energy is moving forward with its renewable energy plan to procure 10% of the power provided to its 1.8 million customers from Michigan renewable energy projects by 2015, as required by the state’s energy reform law.
The company already is the largest supplier of renewable energy in Michigan. As of now 5% of the power supplied to its 1.8 million electric customers comes from renewable sources. Going forward the company plans to invest more than $6 billion in its utility operations through 2015, making it one of the largest investors in Michigan.
We maintain our Neutral rating on CMS Energy. The quantitative Zacks #3 Rank (short-term Hold rating) for the company indicates no directional pressure on the shares over the near term. In the near term we would advise investors to focus on its Zacks #2 Rank (short-term Buy rating) peers like Consolidated Edison Inc. (ED) and The Empire District Electric Company (EDE).
