Table 1 Overview Key strengths Key risks Monopolistic, vertically integrated electric utility and gas distribution utility operations. Lack of operating diversity; dependent on Michigan regulators to sustain its credit quality. Favorable regulatory construct in Michigan. A 2024 third-party audit that indicated below-average system reliability. Large customer base of 1.9 million electric and 1.8 million gas customers. Negative discretionary cash flow, reflecting robust capital spending and external funding needs. Largely contracted nature of independent power producer operations through the next four years. Susceptibility to adverse weather events, including winter storms and convective storms. Exposure to cyclical commercial and industrial customers, which account for 45%-50% of electric utility revenues and 20%-25% of gas utility revenues. The Michigan Public Service Commission (MPSC) approved
