Consumers Energy, the principal subsidiary of CMS Energy (CMS), upgraded its natural gas facilities near Dewitt, Michigan. It has spent around $15 million to install a new 2.1 mile 20-inch natural gas line. The company has also set up a new system station near Dewitt and renovated the Lansing and Dewitt city gate stations, which checks gas line pressure in the region.
This move is a part of the “Growing Forward” initiative, under which Consumers Energy plans to invest in excess of $6 billion over the next five years in its utility operations. This will ensure reliable and cost-efficient gas supply to around 1.7 million customers in Lower Peninsula, Michigan and cope with growing energy needs of the region. Consumers Energy has one of the largest underground natural gas storage facilities in the U.S.
Shares of CMS Energy closed at $13.36 on Thursday, trading at 11.02X trailing 12-month EPS. We presently have Neutral recommendation for the company.
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