CMS Energy Focused On Low-Risk, Low-Volatility Strategies

Deutsche Bank had a meeting with CMS Energy Corporation (NYSE: CMS) recently, during which the company focused on its low-risk, low-volatility strategy, as well as rate base growth opportunities.

“In terms of additional rate base growth opportunities, one key area could be installing environmental controls on several older coal plants ($1B-$2B), which is not currently part of the plan as CMS awaits certainty on EPA regulations,” Deutsche Bank writes. “They also believe some additional gas system requirements could drive additional spending, depending on any regulations that result from the San Bruno explosion.”

Deutsche Bank added that it believes that CMS has a large number of potential growth projects, but is managing its capital plans to keep customer rates lower and to support the higher dividend payout without the need for new equity.

CMS Energy currently trades at $18.63.