CMS Energy

Consumers Energy enjoys a state‑sanctioned monopoly in its service territory, protected by regulation and the massive capital required to replicate networks.

Component view and weights: Efficient scale 90 (50 percent weight) given the natural‑monopoly grid and gas network that would be uneconomic to duplicate; Intangibles/regulatory 80 (25 percent) reflecting a constructive but scrutinizing MPSC, forward‑looking test years, and proven recovery mechanisms; Switching costs 70 (15 percent) as customers cannot practically switch delivery providers though retail choice exists at the margin for generation; Cost advantage 65 (10 percent) due to economies of scale in procurement and system operations; Network effects 20 (0 percent weight for utilities).

Weighted result approximates mid‑80s. Moat durability is underpinned by long‑dated rate‑base growth to ~39.4 billion by 2029 and coal retirement by 2025, yet can erode if regulators materially lower allowed returns or if policy sharply limits cost recovery.