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Consumers Energy

A Michigan investor-owned utility supplying electricity and natural gas to residential, commercial, and industrial customers.

Last updated August 31, 2026

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Overview

Consumers Energy is an investor-owned electric and natural-gas utility headquartered in Jackson, Michigan. It is the principal operating subsidiary of CMS Energy and serves approximately 6.7 million people through electric and gas operations. Its electric service territory covers all 68 counties in Michigan’s Lower Peninsula, while its natural-gas business serves more than 1.7 million customers through a distribution and transmission network extending across the state. The company traces its origins to Jackson Electric Light Works, established in 1886 by William A. Foote, Samuel Jarvis, and James B. Foote. A succession of acquisitions and combinations involving local electric, gas, and street-railway businesses expanded the enterprise. It was incorporated as Consumers Power Company in 1910 and later became part of Commonwealth & Southern Corporation, a multistate utility holding company. Following the breakup of Commonwealth & Southern in 1946, Consumers Power again operated as an independent utility. It reincorporated in Michigan in 1968 and retained Jackson as its headquarters. Consumers developed a diversified generation portfolio during the twentieth century. It operated Big Rock Point, Michigan’s first nuclear power station, from 1962 until 1997, and previously owned Palisades Nuclear Generating Station. The company also participated in the development of the Midland nuclear project, a major undertaking that was abandoned after construction delays, cost escalation, regulatory changes following the Three Mile Island accident, and structural concerns. The site was converted into the Midland Cogeneration Venture, a natural-gas-fired cogeneration facility that began commercial production in 1991. The conversion helped restore the company’s financial and operational position after the nuclear project’s cancellation. The corporate brand changed from Consumers Power to Consumers Energy in 1997. Since then, its business has increasingly combined traditional regulated utility operations with energy-efficiency programs, renewable generation, grid investment, electric-vehicle infrastructure, and replacement generation for retiring coal units. Its portfolio includes hydroelectric facilities, wind farms, natural-gas plants, peaking units, and part ownership of the Ludington Pumped Storage Plant with DTE Energy. The company also operates extensive electricity distribution infrastructure and a large natural-gas pipeline system. Consumers Energy launched broad electric and natural-gas efficiency programs in 2009, offering rebates and incentives to households and businesses. It later announced plans to retire coal generation, initially targeting completion by 2040 and subsequently accelerating the retirement schedule. Its clean-energy strategy has included wind projects such as Lake Winds Energy Park and Cross Winds Energy Park, along with storage, smart-grid initiatives, and electric-vehicle charging programs. In 2018, the company announced an ambition to reach 40 percent renewable power by 2040 and net-zero carbon emissions by 2040. The company has also maintained a substantial role in Michigan civic and economic life through charitable giving, employee volunteering, customer-assistance programs, and support for nonprofit organizations. At the same time, its political spending and participation in corporate advocacy organizations have drawn scrutiny, including criticism over contributions to Citizens for Energizing Michigan’s Economy. Consumers Energy remains a regulated utility whose core activities are the generation, purchase, transmission-related coordination, distribution, and retail sale of electricity, together with the purchase, storage, transportation, and retail distribution of natural gas.

History

Consumers Energy began in 1886 as Jackson Electric Light Works, created to provide electric lighting in downtown Jackson, Michigan. William A. Foote, Samuel Jarvis, and James B. Foote were associated with the venture. Through later acquisitions and mergers involving local electric, gas, and street-railway companies, the business expanded beyond its original lighting role. It was incorporated as Consumers Power Company in Maine in 1910. Consumers Power subsequently became part of Commonwealth & Southern Corporation, a utility holding company with operations in multiple states. Commonwealth & Southern was dissolved in 1946, after which Consumers Power operated independently. The company reincorporated in Michigan in 1968 and continued to be headquartered in Jackson. Nuclear power became an important part of its mid-century development. Consumers operated Big Rock Point Nuclear Power Plant near Charlevoix from 1962 to 1997. It also built Palisades Nuclear Generating Station near South Haven, later selling the facility to Entergy. A separate nuclear project in Midland, developed in connection with Dow Chemical, suffered construction delays, rising costs, extensive redesign requirements after the Three Mile Island accident, and concerns about settling containment structures and foundation cracks. Dow cancelled its contract and the project was abandoned in 1984. The investment placed severe financial pressure on Consumers Power. Rather than leave the Midland site unused, Consumers Power formed a partnership with eight other companies to convert the facility into a natural-gas-fired cogeneration plant. Conversion began in 1986, and the Midland Cogeneration Venture started producing power in 1991. The project demonstrated a successful transition from an abandoned nuclear construction project to a major gas-fired generating resource. The company adopted the Consumers Energy name in 1997. Its later history has been shaped by regulated distribution operations, generation portfolio changes, and environmental policy. Consumers divested its transmission system to the Michigan Electric Transmission Company, now associated with ITC Holdings, while retaining certain sub-transmission and distribution assets. Its generation fleet has included hydroelectric stations, coal plants, natural-gas facilities, nuclear generation, wind projects, and shared ownership of the Ludington Pumped Storage Plant. Beginning in 2009, Consumers Energy expanded customer energy-efficiency programs offering rebates and incentives for homes and businesses. The company later developed Lake Winds Energy Park and Cross Winds Energy Park and reported increasing renewable generation. In 2018 it announced plans to retire coal generation and target a larger renewable share, subsequently bringing forward the planned coal-exit timetable. It has also invested in natural-gas replacement capacity, electric-vehicle charging, smart charging, and grid modernization. Consumers Energy provides electricity throughout Michigan’s Lower Peninsula and natural gas through a large pipeline and distribution network. Its civic activities include charitable contributions, customer assistance through PeopleCare, nonprofit grants, and employee and retiree volunteering. Its political and advocacy activities have also attracted criticism, particularly contributions to Citizens for Energizing Michigan’s Economy, an organization described as a dark-money group. In 2018, the Michigan Public Service Commission ordered the company to stop contributions to that organization for two years. Garrick J. Rochow became president and chief executive of CMS Energy and Consumers Energy in December 2020.

  • 2024

    Karn coal units 1 and 2 close

    [1]

    The coal-fired units were retired while other Karn units continued operating on natural gas and fuel oil.

  • 2022

    Palisades Nuclear Generating Station shuts down

    [1]

    The Palisades nuclear facility, previously owned by Consumers Energy, shut down in May.

  • 2020

    Garrick Rochow becomes chief executive

    [1]

    Garrick J. Rochow assumed the president and CEO role for CMS Energy and Consumers Energy.

  • 2018

    Coal retirement and renewable-energy strategy announced

    [1]

    Consumers Energy announced coal-retirement plans and a target of 40 percent renewable power by 2040.

  • 2011

    Lake Winds Energy Park approved

    [1]

    Approval was received for a 100-megawatt wind project in Mason County.

  • 1997

    Consumers Power adopts Consumers Energy name

    [1]

    The company changed its operating brand to Consumers Energy.

  • 1991

    Midland Cogeneration Venture begins production

    [1]

    The converted Midland site began producing power as a natural-gas cogeneration facility.

  • 1984

    Midland nuclear project is abandoned

    [1]

    The troubled Midland nuclear construction project was abandoned after delays, redesigns, structural concerns, and the cancellation of Dow Chemical’s contract.

  • 1962

    Big Rock Point begins operation

    [1]

    Consumers began operating Big Rock Point, Michigan’s first nuclear power plant.

  • 1946

    Consumers Power becomes independent

    [1]

    The dissolution of Commonwealth & Southern left Consumers Power operating independently.

Products and positioning

Regulated electric and natural-gas utility with a Michigan-focused clean-energy transition strategy.

  • Utility service · 1886

    Electricity service

    Consumers Energy generates, purchases, distributes, and retails electricity to customers throughout all 68 counties of Michigan’s Lower Peninsula. Its supply portfolio has included hydroelectric, nuclear, coal, natural-gas, wind, and pumped-storage resources. The business also manages distribution infrastructure and related customer programs, including efficiency incentives, renewable-energy initiatives, reliability work, and support for electric-vehicle charging.

  • Utility service

    Natural gas service

    The company distributes natural gas to more than 1.7 million residential and business customers in Michigan. Consumers Energy purchases the gas supplied to customers and moves it through a transmission and distribution system exceeding 27,000 miles. The business includes gas delivery, storage, infrastructure maintenance, customer service, and energy-efficiency assistance.

  • Energy generation · 2011

    Renewable energy

    Consumers Energy’s renewable portfolio includes wind generation and a long-running hydroelectric system. The company operates or owns interests in Michigan renewable assets and has pursued additional wind capacity as part of its plan to reduce dependence on coal and increase the renewable share of electricity supply.

  • Customer program · 2009

    Energy-efficiency programs

    Since 2009, Consumers Energy has offered electric and natural-gas efficiency programs for homes and businesses. These programs use rebates, incentives, and advice to encourage lower energy consumption and more efficient equipment. They form part of the company’s customer-service and demand-management strategy.

  • Customer assistance

    PeopleCare

    PeopleCare is a Consumers Energy assistance initiative supporting customers facing energy-bill hardship. The program has provided bill credits and related assistance through company contributions and charitable support.

  • Energy technology · 2018

    Electric-vehicle smart charging

    In partnership with General Motors, Consumers Energy tested smart-charging approaches designed to defer vehicle charging until nighttime off-peak periods. The company also committed funding to encourage the development of electric-vehicle charging stations across Michigan.

Controversies

  • 2018

    Political advocacy contributions to Citizens for Energizing Michigan’s Economy

    The company faced criticism over contributions to Citizens for Energizing Michigan’s Economy, characterized in the reference material as a dark-money advocacy organization that opposed some renewable-energy policies and supported utility-friendly politicians. The Michigan Public Service Commission ordered Consumers Energy to stop contributions to the organization for two years.

  • 2013

    Fine following fatal gas explosions

    Consumers Energy was fined $1.4 million over its role in two gas explosions that killed three people. The episode raised safety and oversight concerns surrounding the company’s gas operations.

Read more

Marketing campaigns

  • 2018General Motors smart-charging partnership

    Michigan

    Consumers Energy and General Motors worked on technology that could shift electric-vehicle charging to off-peak nighttime hours, alongside support for charging-station development.

    Outcome. Created a pilot and infrastructure-development framework for managed EV charging.

  • 2018Michigan International Speedway sponsorship

    Michigan · United States

    Consumers Energy became title sponsor of the August Monster Energy NASCAR Cup Series race at Michigan International Speedway.

    Outcome. Expanded public-facing brand visibility through sports sponsorship.

  • 2013PeopleCare assistance and philanthropy

    Michigan

    The company continued its PeopleCare customer-assistance work and broader nonprofit giving. It received the Salvation Army’s William Booth Award for philanthropic leadership.

    Outcome. The program continued as part of the company’s community-support activities.

  • 2009Electric and natural-gas efficiency programs

    Michigan

    Consumers Energy introduced broad customer programs using rebates and incentives to promote energy efficiency in homes and businesses.

    Outcome. Established a continuing customer-efficiency platform.

Brand decisions

  • 2023

    Acquire Covert Generation StationM&A

    Background

    The company pursued additional dispatchable generation capacity during its transition away from coal.

    Action taken

    Consumers Energy completed the purchase of the Covert Generation Station in Van Buren County, Michigan.

    Aftermath

    The acquisition added a plant with stated capacity of approximately 1,176 megawatts.

  • 2018

    Commit to coal retirement and increased renewable generationGeneration change

    Background

    Changing energy policy, environmental expectations, and the economics of coal generation encouraged a shift toward renewable and natural-gas resources.

    Action taken

    Consumers Energy announced plans to retire coal-burning plants, initially targeting completion by 2040, and stated that renewable power could reach 40 percent by that year.

    Aftermath

    The retirement schedule was subsequently accelerated, with the reference material indicating a goal of closing all coal plants by 2025, subject to the status of individual facilities and units.

  • 2018

    Develop managed electric-vehicle chargingProduct launch

    Background

    Growth in electric vehicles created an opportunity to manage additional electricity demand and direct charging toward lower-demand periods.

    Action taken

    Consumers Energy partnered with General Motors to test smart charging and committed $7.5 million to encourage charging-station development in Michigan.

    Aftermath

    The initiative positioned the utility as a participant in Michigan’s emerging EV-infrastructure ecosystem.

    Charging-station development investment. $7.5 million (2018)

  • 2016

    Acquire the DPC Juniper power plantM&A

    Background

    Consumers Energy sought additional natural-gas generation capacity as its fleet evolved.

    Action taken

    The company completed the purchase of the DPC Juniper plant in Jackson, Michigan, and renamed it Jackson Generation Station.

    Aftermath

    The facility added approximately 540 megawatts of natural-gas generation capacity.

  • 1997

    Adopt the Consumers Energy brandStrategy

    Background

    The company’s historic Consumers Power identity no longer fully reflected its broader energy-service and gas-distribution activities.

    Action taken

    The company changed its name and operating brand to Consumers Energy.

    Aftermath

    Consumers Energy became the continuing customer-facing brand under CMS Energy.

  • 1985

    Convert the Midland nuclear project into a gas cogeneration plantStrategy

    Background

    The Midland nuclear project had encountered major construction, regulatory, cost, and structural problems and had been abandoned after Dow Chemical cancelled its contract.

    Action taken

    Consumers Power formed a partnership with eight other companies to convert the unfinished facility into a natural-gas-fired cogeneration plant.

    Aftermath

    The Midland Cogeneration Venture began producing power in 1991 and became an important operational and reputational recovery for the company.

    Conversion cost. $500 million (1986-1991)

Recent events

  • 2024

    Consumers Energy closes coal units at Karn generating station[1]

    Other

    Coal-fired units 1 and 2 at the D.E. Karn Generating Station were closed, leaving natural-gas and fuel-oil units 3 and 4 in operation.

  • 2020

    Garrick Rochow becomes president and CEO[1]

    Leadership change

    After 17 years with the company, Garrick J. Rochow assumed leadership of CMS Energy and Consumers Energy.

  • 2018

    Consumers Energy announces accelerated coal retirement strategy[1]

    Regulation

    The company announced plans to retire coal-burning plants and increase renewable generation, later accelerating the coal-retirement timetable.

  • 2018

    Consumers Energy and General Motors develop smart EV charging[1]

    Campaign · Product launch

    The companies partnered on charging technology intended to shift electric-vehicle charging toward nighttime, off-peak hours, while Consumers Energy supported development of charging stations in Michigan.

  • 2018

    Consumers Energy becomes Michigan International Speedway race sponsor[1]

    Campaign

    Consumers Energy became title sponsor of the August Monster Energy NASCAR Cup Series race at Michigan International Speedway.

  • 2014

    Consumers Energy announces Cross Winds Energy Park[1]

    Product launch

    The company announced a second Michigan wind farm in Tuscola County, with an announced investment of $250 million.

  • 2011

    Consumers Energy receives approval for Lake Winds Energy Park[1]

    Product launch

    The utility received approval to establish a 100-megawatt wind facility in Mason County, Michigan.

  • 2009

    Consumers Energy launches broad energy-efficiency programs[1]

    Campaign

    The utility introduced comprehensive electric and natural-gas efficiency programs featuring customer rebates and incentives.

  • 1997

    Consumers Energy changes corporate name from Consumers Power[1]

    Other

    The company adopted the Consumers Energy name as its business expanded beyond its historic electric-power identity.

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