Consumers Energy, the major subsidiary of CMS Energy (CMS), requested approval from the Michigan Public Service Commission for six new renewable energy projects to be owned and operated by third parties. Consumers Energy’s move is in line with the recent rush of utilities to join the green wagon. The rush has been precipitated by the American Clean Energy and Security Act. The act stipulates stringent caps against carbon dioxide emissions.
The American Clean Energy and Security Act mandates that by fiscal 2015, all utilities will have to source 10% of their power supply from service state based renewable energy sources.
Consumers Energy through the six new projects added a total of 65,000MWh of renewable energy annually for a period of 20 years. As of now almost 4% of Consumers Energy’s sources are Michigan-based renewable sources, including wind, biomass, hydro, landfill gas and anaerobic digestion. This makes Consumers Energy the largest renewable energy supplier in the Michigan.
CMS Energy is a diversified energy company operating in the United States and around the world. The company’s two principal subsidiaries are Consumers Energy and CMS Enterprises. Consumers Energy is a public utility that provides natural gas or electricity to residents in Michigan’s Lower Peninsula. CMS Enterprises, through its subsidiaries, is engaged in several domestic and international diversified energy businesses.
We maintain our market Neutral recommendation on the shares.
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