Yahoo Finance CMS Energy's (CMS) Arm Proposes to Go Coal-Free by 2025
CMS Energy Corp.’s CMS subsidiary, Consumers Energy, recently revealed its accelerated proposal to end coal usage for electricity generation by 2025. The proposal, if sanctioned by the Michigan Public Service Commission, would make the company one of the first utilities in the United States to go coal-free by 2025.
This plan reflects an impressive upgrade from Consumer Energy’s earlier estimate to achieve net-zero carbon emissions by 2040.
Details of the Proposal
Consumers Energy proposes to install nearly 8,000 megawatts (MW) of solar energy to power Michigan's homes and businesses by 2040. The plan will also allow the company’s generation portfolio to use 90% clean energy resources by 2040, along with speedy closure of three coal-fired units at the Campbell generating complex near Holland.
In this updated proposal, Consumers Energy has also revealed its plan to buy four existing natural gas-fired power plants in Michigan, which would further boost the company’s contribution toward a greener environment.
Consumers Energy believes that through the aforementioned clean energy initiatives, its customers will be able to save $650 million through 2040, compared with its existing renewables plan.
Utilities & Zero Carbon-Emission Plans
Per the latest forecast made by the U.S. Energy Information Administration (EIA), electricity generation from renewable energy sources is expected to rise from 20% in 2020 to 22% in 2021, with utilities’ pledge to rapidly reduce carbon emission from their generating fleet being a notable catalyst. We believe the accelerated coal-free plan announced by Consumers Energy is part of that pledge.
Notably, like CMS Energy, there are other utilities that are taking initiatives to accelerate their net zero carbon emission efforts. For instance, in September 2019, DTE Energy DTE announced a net zero carbon emission goal by 2050 for DTE Electric. In June 2020, DTE Energy took another major step in building a cleaner energy future for Michigan. The company expanded its net zero carbon emission goal to include DTE Gas as well.
In June, Duke Energy DUK submitted a petition for operating license renewal of its largest nuclear station, Oconee, for an additional 20 years. This license renewal application reflects a step forward on Duke Energy’s part toward achieving its zero-carbon emission target by 2050.
Another utility, Xcel Energy XEL recently announced that it has achieved more than 50% of the carbon neutrality target. To achieve its zero-carbon emission target by 2050, the company aims to promote the usage of electric vehicles in its service territories and thereby provide power to 1.5 million electric vehicles by 2030.
Price Performance & Zacks Rank
CMS Energy, a Zacks Rank #3 (Hold) company, has gained 2% in the past year compared with the industry’s 8.1% growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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