Consumers Energy Defends Customer Protections for Data Centers Against Challenge from Attorney General

Rhea-AI Summary

Consumers Energy (NYSE:CMS) said Dec. 11, 2025 it is opposing an Attorney General petition that seeks rehearing of a Nov. 6 MPSC order establishing customer safeguards for energy‑intensive businesses such as data centers. The company said the order sets guidelines for new large customers, requires them to pay full cost of service, and applies a tariff to any customer using at least 100 megawatts. Consumers Energy noted it currently serves nearly 2 million homes and businesses and provides energy to 6.8 million Michigan residents. The company plans to file an updated Energy Supply Plan next year covering gas, renewables, and battery storage to serve projected growth.

Positive

• MPSC order creates tariff framework for ≥100 MW customers
• Company will update Energy Supply Plan in 2026 covering gas, renewables, storage
• Consumers serves nearly 2 million homes and businesses

Negative

• Attorney General filed rehearing petition that could undo MPSC protections
• Regulatory uncertainty around the Nov. 6 order could affect large‑customer recruitment

Key Figures

Customer count nearly 2 million homes and businesses Consumers Energy service territory

Residents served 6.8 million residents Consumers Energy customer base in Michigan

State population 10 million residents Michigan population reference in release

Service area 68 counties Lower Peninsula counties served

Data center threshold 100 megawatts Minimum load for new data center tariff applicability

Large-load customers 1 customer > 100 MW Existing Consumers Energy customer above threshold

Market Reality Check

$70.01 Last Close

Volume Volume 1,778,442 is below the 20-day average of 2,008,832, suggesting no unusual trading ahead of this regulatory headline. normal

Technical Shares trade below the 200-day MA, with price at $70.01 versus MA(200) at $72.21.

Peers on Argus

CMS slipped 0.6% while regulated electric peers were mixed: CNP -1.13%, FE -1.11%, PPL -1.07%, DTE -0.08%, but EIX gained 1.59%, indicating the move was not a clear sector-wide trade.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 09	Customer assistance	Positive	-0.1%	Expanded senior assistance programs and bill protections ahead of winter.
Nov 14	Preferred dividend	Neutral	+0.0%	Declared quarterly dividend on 4.200% Cumulative Redeemable Perpetual Preferred.
Nov 14	Preferred dividend	Neutral	+0.0%	Declared quarterly dividend on $4.50 preferred stock series CMS_pb.
Nov 04	Convertible notes pricing	Neutral	+0.6%	Priced upsized $850M 3.125% convertible senior notes due 2031.
Nov 03	Convertible notes offering	Neutral	-1.4%	Announced proposed $750M convertible senior notes due 2031 offering.

Pattern Detected

Recent CMS headlines on customer programs, preferred dividends, and convertible notes have produced modest moves within roughly +/-1.5%, suggesting news flow has not driven outsized volatility.

Recent Company History

Over the last few months, CMS issued a series of routine and financing-related updates. In November 2025, it announced and then priced convertible senior notes due 2031, with muted share moves. Preferred stock dividends declared on Nov. 14, 2025 also saw minimal reaction. A customer assistance announcement on Dec. 9, 2025 similarly coincided with a small price change. Today’s regulatory-focused news fits this pattern of incremental, operational updates.

Market Pulse Summary

This announcement centers on the regulatory framework for data centers and other large-load users, stressing that customers using at least 100 megawatts should pay their full costs and support system fixed costs. It underscores Consumers Energy’s duty to serve nearly 2 million customers and plans to update its Energy Supply Plan using natural gas, renewables, and battery storage. Investors may track future MPSC actions and large-load customer additions under this tariff.

Key Terms

tariff financial

"Consumers Energy's tariff for data centers and other large-load users would apply"

A tariff is a tax charged by a government on goods as they cross a border, like a toll on a highway for imported products. For investors, tariffs matter because they raise costs for companies that buy or sell goods internationally, can squeeze profit margins, change competitive balance, and prompt firms to move suppliers or raise prices — all of which can affect revenues, costs and stock valuations.

battery storage technical

"enough energy from natural gas, renewable resources and battery storage to serve"

Battery storage is a system that stores electricity in large rechargeable batteries so power can be used later, like a reusable fuel tank for the grid. Investors care because it smooths out when energy is available vs. when it’s needed, can lower costs, create new revenue from selling stored power at peak times, and reduce reliance on unpredictable energy sources, affecting utility and clean-energy company valuations.

megawatts technical

"apply to any customer that uses at least 100 megawatts"

A megawatt is a measure of electrical power equal to one million watts, describing how much electricity a plant or device can generate or use at a single moment. Investors use megawatts to compare the size and earning potential of energy projects—larger capacity usually means more electricity to sell—much like comparing the horsepower of engines to judge how much work they can do. Knowing megawatts helps assess scale, revenue potential, and grid impact of energy assets.

AI-generated analysis. Not financial advice.

Company Supports Responsible Economic Growth for Michigan

JACKSON, Mich., Dec. 11, 2025 /PRNewswire/ -- Consumers Energy is standing up for Michigan and responsible economic growth in our state. The company is opposing a legal challenge from the state Attorney General that would undo new protections for customers as Michigan attracts data centers and other large businesses.

Attorney General Dana Nessel this week filed a petition asking the Michigan Public Service Commission for a rehearing of its Nov. 6 order that set up new customer safeguards for energy-intensive businesses. The MPSC order set guidelines for energy use of new data centers and large businesses, ensuring they pay their way and help reduce cost pressure for all customers.

"The attorney general's challenge has no merit," said Kelly Hall, Consumers Energy's senior vice president of regulatory and legal affairs. "The MPSC's order last month creates a useful framework as Michigan grows and attracts new jobs and tax revenue for local communities."

"It is unfortunate the Attorney General is taking an anti-investment position to oppose economic growth opportunities these customers will create," said Lauren Snyder, Consumers Energy's senior vice president and chief customer and growth officer. "When businesses grow, families have more choices -- better jobs, stronger schools, and thriving communities where people want to live and stay."

Consumers Energy has a legal duty to serve all customers in its territory, providing energy today to nearly 2 million homes and businesses. Those customers benefit from new large customers, which will pay their full cost of service and a portion of the system's fixed costs that existing customers otherwise would pay in full.

The company next year will file its updated Energy Supply Plan, ensuring it has enough energy from natural gas, renewable resources and battery storage to serve projected business growth and meet our state's growing needs.

Under the new MPSC order, Consumers Energy's tariff for data centers and other large-load users would apply to any customer that uses at least 100 megawatts. Consumers Energy today has only one customer larger than 100 MW, which it serves under a special rate established by the Legislature.

"Consumers Energy intends to work hard to continue to attract new businesses, including data centers, to our state, in a way that benefits everyone and fuels Michigan's economic growth," Hall said. "We sincerely hope the Attorney General will reconsider and drop her challenge to the MPSC's good work."

Consumers Energy is Michigan's largest energy provider, providing natural gas and/or electricity to 6.8 million of the state's 10 million residents in all 68 Lower Peninsula counties. We are committed to delivering reliable and affordable energy to our customers 24/7.

Learn more at ConsumersEnergy.com.

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SOURCE Consumers Energy

FAQ

What did Consumers Energy announce on Dec. 11, 2025 about the Attorney General challenge to MPSC rules (CMS)?

Consumers Energy said it is opposing an Attorney General petition seeking rehearing of the Nov. 6 MPSC order that sets customer safeguards for data centers and large energy users.

What is the MPSC rule for data centers that Consumers Energy referenced (CMS)?

Under the Nov. 6 order, Consumers Energy's tariff would apply to any customer using at least 100 megawatts and requires large users to pay full cost of service.

How many customers and residents does Consumers Energy serve in Michigan (CMS)?

Consumers Energy provides energy to nearly 2 million homes and businesses and to 6.8 million Michigan residents.

Will Consumers Energy change its energy planning after the MPSC order (CMS)?

Yes; the company said it will file an updated Energy Supply Plan next year to cover natural gas, renewables, and battery storage for projected growth.

How many current customers exceed the 100 MW threshold for the new tariff (CMS)?

Consumers Energy stated it currently has only one customer larger than 100 MW, served under a special legislative rate.