CMS Energy (CMS) risk factors: FY2025 10-K

1. CMS Energy depends on dividends from its subsidiaries to meet its debt service obligations.
2. CMS Energy has indebtedness that could limit its financial flexibility and its ability to meet its debt service obligations.
3. CMS Energy and Consumers have financing needs and could be unable to obtain bank financing or access the capital markets.
4. Market performance and other changes could decrease the value of employee benefit plan assets, which then could require substantial funding.
5. Changes to ROA could have a material adverse effect on CMS Energy’s and Consumers’ businesses.
6. The creation of utilities by municipalities in Consumers’ service territory, or the impairment of Consumers’ franchise rights to serve customers in municipalities, could have a material adverse effect on CMS Energy’s and Consumers’ businesses.
7. Distributed energy resources could have a material adverse effect on CMS Energy’s and Consumers’ businesses.
8. CMS Energy and Consumers are subject to rate regulation, which could have a material adverse effect on financial results.
9. Utility regulation, state or federal legislation, regulation, and compliance could have a material adverse effect on CMS Energy’s and Consumers’ businesses.reworded
10. CMS Energy and Consumers have announced ambitious plans to reduce their impact on climate change and increase the reliability of their electric distribution system. Achieving these plans depends on numerous factors, many of which are outside of their control.
11. Changes in taxation as well as the inherent difficulty in quantifying potential tax effects of business decisions could negatively impact CMS Energy and Consumers.
12. CMS Energy and its subsidiaries, including Consumers, must comply with the Dodd-Frank Act and its related regulations.
13. CMS Energy and Consumers could incur substantial costs to comply with environmental requirements.
14. CMS Energy’s and Consumers’ businesses could be affected adversely by any delay in meeting environmental requirements.
15. CMS Energy and Consumers expect to incur additional substantial costs related to environmental remediation of former sites.
16. There are risks associated with Consumers’ substantial capital investment program planned for the next five years.
17. CMS Energy and Consumers could be affected adversely by legacy litigation and retained liabilities.
18. Consumers is exposed to risks related to general economic conditions in its service territories.
19. Consumers is exposed to changes in customer usage that could impact financial results.
20. CMS Energy’s and Consumers’ energy sales and operations are affected by seasonal factors and varying weather conditions from year to year.
21. Demand for electricity associated with data center expansion could have a material effect on CMS Energy and Consumers.
22. CMS Energy and Consumers are subject to information security risks, risks of unauthorized access to their systems, and technology failures.
23. CMS Energy’s and Consumers’ businesses have liability risks.
24. CMS Energy and Consumers are subject to risks that are beyond their control, including but not limited to natural disasters, civil unrest, terrorist attacks and related acts of war, cyber incidents, vandalism, and other catastrophic events.Cybersecurity
25. Energy risk management strategies might not be effective in managing fuel and electricity pricing risks, which could result in unanticipated liabilities to CMS Energy and Consumers or increased volatility in their earnings.
26. CMS Energy and Consumers might not be able to obtain an adequate supply of natural gas or coal, which could limit their ability to operate electric generation facilities or serve Consumers’ natural gas customers.
27. Unplanned outages or maintenance could be costly for CMS Energy or Consumers.
28. CMS Energy and Consumers are exposed to counterparty risk.
29. CMS Energy and Consumers are exposed to significant reputational risks.
30. A work interruption or other union actions could adversely affect CMS Energy and Consumers.reworded
31. Failure to attract and retain an appropriately qualified workforce could adversely impact CMS Energy’s and Consumers’ results of operations.

Read these in Item 1A · See the changes