U.S. Markets close in 4 hrs 55 mins

CMS Energy's (CMS) Arm Gets Approval for Clean Energy Plan

Zacks Equity Research

CMS Energy Corporation CMS announced that its subsidiary Consumers Energy Company has received approval from state regulators to go ahead with the Clean Energy Plan. The primary objective of this plan is to lower carbon emissions from electricity generation by focusing more on renewable and other clean sources.

By 2023, the company is determined to retire two of its coal-fired plants, more than a decade ahead of schedule, and add 5,000 megawatts (MW) of solar energy through competitive bidding.

CMS Energy’s Renewable Focus

CMS Energy has been extremely focused on lowering carbon emissions from the electricity generation process. The company lowered carbon emissions by more than 35% from 2005 till Dec 31, 2018. In addition, it lowered the usage of coal by 16% since 2015.

The approval from the Michigan Public Service Commission is in sync with its aim of reducing pollution. This permission will enable Consumers Energy to lower carbon emissions by more than 90% and meet customers' future electricity needs via 90% clean energy resources within 2040.

Utilities’ Focus on Renewables

Despite President Trump’s decision to walk away from the Paris Agreement and the new U.S. administration’s efforts to promote increasing usage of coal, coal generation is dropping in the United States. The decreasing domestic demand for coal from utility operators and declining coal export volumes are the primary reasons behind the same.

Per a recent release from The U.S. Energy Information Administration (“EIA”), production of electricity from renewable sources in the United States surpassed electricity generation from coal sources in April and May 2019.

As more utilities are coming forward with plans to lower emissions by increasing the usage of renewables and cutting down on coal consumption, we expect that renewable sources will continue to strengthen its position in the energy generation mix in the United States.

NextEra Energy NEE, Xcel Energy XEL and Dominion Energy D, among others, have made elaborate plans to add more renewable energy in their generation portfolio and lower emission levels.

Price Performance

In the past 12 months, shares of CMS Energy have surged 35.6% compared with the industry’s 21.5% rally.


Zacks Rank

CMS Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Xcel Energy Inc. (XEL) : Free Stock Analysis Report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
CMS Energy Corporation (CMS) : Free Stock Analysis Report
Dominion Energy Inc. (D) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research