Lower risk regulated electric generation and distribution and gas distribution operations contribute the vast majority of the company's operations. Modest exposure to higher-risk non-utility operations including unregulated merchant generation and a bank. Above-average management of regulatory risk compared to peers. Limited geographic and regulatory diversity, with operations concentrated in Michigan. Service territory with average economic growth. Large electric and natural gas customer base. We assess the company's financial measures using our medial volatility table, reflecting the company's lower-risk regulated electric and gas utility operations and its effective management of regulatory risk. Financial measures consistently reflect the lower end of the range for its financial risk profile category; Elevated capital spending. Negative discretionary cash flow, indicating the need for external funds.
