Ross Carlo's questions to CMS Energy Corp (CMS) leadership • Q3 2024
Question
Ross Carlo of Bank of America asked how the state's 2.5-gigawatt storage target could be affected by potential shifts in federal battery tax credits. He also inquired about the strategy for NorthStar's open capacity positions, asking if CMS would wait for MISO auction results before securing more bilateral contracts.
Answer
President and CEO Garrick Rochow explained that storage needs will be detailed in the 2026 Integrated Resource Plan (IRP), which will consider any changes to tax incentives. EVP and CFO Rejji Hayes added that a full repeal of the IRA seems like a low-probability event, given its benefits to many states, but Michigan's clean energy law would still mandate compliance regardless. Regarding NorthStar, Rochow stated their strategy is to de-risk earnings by layering in bilateral contracts over time rather than trying to time the market or wait for auction outcomes.