CMS Energy CEO Patti Poppe will depart the Michigan-based electric and natural gas utility to become CEO of California’s besieged PG&E Corp., the companies announced Wednesday morning.

Poppe will step down Dec. 1 after four years as CMS’ president and CEO and six more years in various other leadership positions at the company. She will replace PG&E’s interim CEO, William Smith, on Jan. 4. Poppe will join the boards of directors at PG&E and Pacific Gas and Electric; Smith will remain on both boards following her arrival.

CMS’ executive vice president of operations, Garrick Rochow, will succeed Poppe.

“Since 2011, I have considered CMS Energy as my home and my co-workers as my family, and I will miss everyone immensely,” Poppe said in a press release. “Garrick is a world-class leader and will continue to deliver on the triple bottom line of people, planet and prosperity, as we have for many years now.”

“I am honored to have the opportunity to lead a company with amazing co-workers who make a difference every day for our customers, investors and the communities we serve,” Rochow said in the release. “I look forward to continuing our strong operational and financial performance while creating an environment that keeps our customers and co-workers safe, reflects our culture and is inclusive and respectful of everyone.”

“You can count on CMS Energy to have consistent and predictable performance because of our strong succession planning and the quality of our executive team. I wish Patti the best of luck,” said John Russell, chairman of CMS’ board.

Challenges Ahead in California

Poppe recognized that she faces a daunting task in becoming the fourth CEO in three years to take the helm of California’s largest utility. PG&E has been dogged in recent years by bankruptcy, devastating wildfires and mishandled power shutoffs that left 2 million residents in the dark in 2019. It surfaced from bankruptcy in June, but not before giving wildfire victims a 22% equity stake in the company under a settlement. (See PG&E Trying to Move Forward from Bankruptcy.)

“PG&E has the privilege of powering one of the world’s largest economies and the opportunity to help lead the state’s clean energy future. It also faces significant challenges. I am eager to get to know the PG&E team and to join in the critical work of strengthening PG&E for California’s next generation and earning back the community’s trust,” she said.

PG&E said its board appointed Poppe “following a broad national search that looked at candidates both inside and outside of the utility and energy industries.”

“Patti is an exceptional leader with the experience, drive and character to lead PG&E through its next chapter. She knows the utility industry top to bottom and has a deep understanding of what it takes to provide safe, reliable, affordable and clean energy to millions of customers,” PG&E Chairman Robert Flexon said in a statement. “We all recognize that PG&E must continue to improve, adapt and become more resilient to the changing climate. As the leader of Michigan’s largest utility, Patti has embraced technology and put the company on a course to achieving its ambitious clean energy goals while maintaining steady and safe performance, prioritizing customer service and advancing workplace equity.”

The news had a contrasting effect on the companies’ respective stocks Wednesday morning. PG&E shares perked up, but CMS shares drooped.

Smith said he had “every confidence Patti will hit the ground running and lead PG&E forward.”

“She is incredibly smart, knows the operations side of this business, and brings to her work curiosity, dedication and warmth. These qualities will serve her well as she brings PG&E into the future. I look forward to introducing Patti to our talented workforce, welcoming her to California and working closely with her in the years ahead,” he said.

Poppe has been uncharacteristically candid about her pivot from supporting coal to embracing environmentally friendly energy. (See Consumers Energy Accelerates Zero-carbon Target.) Under her watch, CMS subsidiary Consumers Energy accelerated its target to achieve net-zero carbon emissions from 2050 to 2040, putting the utility on track to achieve that goal a decade earlier than most of its peers in the industry.

She often invokes her grandchildren in comments about the importance of combating climate change, expressing hope that she will be able to tell them that climate change is something people used to worry over.