I am very pleased with the results and continue to see us well positioned for the full year and in the long term. Recently on the electric side, staff filed their position in our pending rate case supporting approximately 75% of our revised and approximately 90% of our capital ask. As shared in previous quarterly calls, we continue to see strong economic growth in Michigan. As I highlighted in the Q2 call, we have an agreement with the data center and continue to see growth with manufacturing as well as a robust pipeline.
Year to date we have connected approximately 450 MW of the planned 900 MW of industrial growth in our five-year plan. This growth is coming from new projects, expansion from existing customers in the areas of food processing, aerospace and defense, and advanced manufacturing. These products bring jobs and supply chains, home starts, and commercial opportunities to the state and create further visibility to our 2%-3% forecasted annual sales growth over the next five years. You'll note we continue to move projects into and along the pipeline, bolstering our confidence in additional growth from data centers and other diverse industries.
You'll also see other large data centers in the final and advanced stages of development, which speaks to the robust nature of our pipeline. I continue to be confident and excited about the growth coming to our service territory. The data center and manufacturing pipeline is robust and advancing, and we are well equipped to serve and meet their needs as they advance. As a result of more load growth, we're focused on resource adequacy and the Clean Energy Law, which means more renewables, battery storage, and natural gas generation to meet growing demand.
| Metric | Period | Current guidance |
|---|---|---|
| Weather (normal-weather assumption) | Remaining three months of 2025 | Plan for normal weather ($0.15 per share positive variance) |
| Regulatory / rate relief | Remaining three months of 2025 | Constructive gas rate order effective November 1 ($0.03 per share positive variance) |
| Cost (vegetation management + supplemental spending) | Remaining three months of 2025 | Ongoing vegetation management and supplemental operational/customer spending ($0.06 per share negative variance) |
| Catch-all (one-time countermeasures / NorthStar) | Remaining three months of 2025 | Absence of one-time countermeasures partially offset by NorthStar renewable milestones ($0.05-$0.09 per share negative variance) |
| Metric | YoY | Note |
|---|---|---|
| Adjusted net income / EPS (nine months) | $797 million / $2.66 per share, favorable versus first nine months of 2024 | Higher rate relief net of investment costs and favorable weather-related sales from a warm Michigan summer. |
| Weather-related sales (year-to-date) | $0.37 per share positive | Warm summer in Michigan. |
| Rate relief net of investment costs (year-to-date) | $0.28 per share positive | Constructive March electric rate order and residual benefits of last year's gas rate case settlement. |
| Operating costs (year-to-date) | $0.04 per share negative | Increased vegetation management expense from higher spending approved in the March electric rate order and the reliability roadmap. |
| Catch-all category (year-to-date) | $0.42 per share negative | Planned DIG outage, timing of NorthStar renewable projects, and higher parent financing costs. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Data center / large-load pipeline | One agreement discussed in Q2 | Three large data centers in final stages (up to 2 GW); the Q2 opportunity is up to 1 GW beginning early 2030; large load tariff order expected November 7 | Advancing |
| Renewable Energy Plan | Pending | Final order approving additional 8 GW solar and 2.8 GW wind through 2035, a key input to the mid-2026 IRP | Approved |
| Capital plan / backlog | $20 billion five-year plan | $20 billion plan with over $25 billion of additional opportunity knocking on the door; expects to dip into all three buckets in the Q4 plan refresh | Growing |
| Economic development / load growth | n/a | ~450 MW of planned 900 MW connected year-to-date plus ~100 MW newly signed; supports 2%-3% annual sales growth | On track |
| Campbell plant | n/a | Operating under Department of Energy orders with costs treated as a regulatory asset, shared across nine MISO North/Central states; Michigan customers to be refunded | Cost recovery path established |