Garrick Rochow
President and Chief Executive Officer at CMS Energy
Thanks, Sri. And thank you, everyone, for joining us today. I'm pleased with the results for the quarter and the path to year-end. But before I get into specifics, I want to start with our simple investment thesis, which continues to stay on the test of time. You've seen this in our calls and meetings and you've seen the results, it works. This is where we put our words into action. We remain firmly to leading the clean energy transformation.
As I mentioned on the Q2 call, the approval of our IRP was a proof point, evidence that we have a clear pathway supported by the regulatory construct to deliver on our leading clean energy commitment. Our investment thesis is fueled by our commitment to eliminate waste, driven by the CE Way. I put us up against anyone in our ability to take cost out. This year, we are on track to take $50 million of O&M waste out of the business. The CE Way is critical to delivering our operational and financial performance and keeping our service affordable for our customers.
Another critical element is our top-tier regulatory backdrop in Michigan. In Q2, we not only delivered our IRP, but we settled our gas rate case. And in this quarter, we received constructive feedback on our pending electric rate case, further evidence of the health of the Michigan regulatory environment. A key part of our investment thesis, which we don't talk about enough, is our diverse and attractive service territory. I'm excited about both the pace and impact of new growth in Michigan.
Just this month, our governor announced that Goshen, a global electric vehicle battery manufacturer selected Michigan for its U.S. expansion over many other states, highlighting another example of onshoring manufacturing within the state. This project is expected to add over 2,000 jobs and provide $2.4 billion of investment. In August, President Biden joined Governor Whitmer at Hemlock Semiconductor headquartered here in the heart of our service territory. Together, they announced an executive directive to guide the implementation of the CHIPS Act, which will boost domestic chip production and bolster Michigan's leadership in the semiconductor industry.
Let me put that into perspective. Hemlock is one of the largest polysilicon manufacturers in the world. Nearly one-third of the world's chips are made from polysilicon produced at that facility right here in Michigan. In September, Hemlock announced plans to grow its operation. The project is expected to add 170 jobs and $375 million of investment in the state. Ground has already been broken on the expansion.
Also the expansion of SK Siltron, now in operation, a semiconductor wafer manufacturer, bringing 150 jobs and over $300 million of investment to the state. These are highlights over the quarter. From the map on the slide, you can see we've secured over 80 agreements year-to-date, which translates to roughly 200 megawatts of new or expanding load in our service territory. This growth is bolstered by collaborative and innovative economic development efforts, supported by competitive rates for energy-intensive customers and robust policy, which are working and continue to drive growth.
Our work with the Governor's office, the legislature, the Michigan Economic Development Corporation and the commission has made it possible for Michigan to not only compete, but win investment and new jobs. These economic tailwinds are just a few of many we've seen and continue to see across Michigan that will help attract more business, grow industrial, commercial and residential load, and ultimately provide long-term bill relief for all our customers.
Our strong commitment to decarbonize both our gas and electric systems is a key differentiator with CMS Energy. The recently passed inflation Reduction Act is another catalyst for our clean energy transformation, supporting deployment of renewables and lowering costs for our customers. We see a lot of benefit in this new legislation. The extension of tax credits for both wind and solar provide economic certainty and lowers cost for our robust renewal backlog within our IRP, which includes 8 gigawatts of solar as well as the remaining 200 megawatts of wind, we are constructing to meet Michigan's renewable portfolio standard.
Production tax credits for solar projects will drive cost competitiveness for utility-owned projects versus PPAs. As we build scale, this cost competitiveness has enabled us to own in rate base a greater portion of future IRP solar investments. The investment tax credit for storage will lower cost and provide greater flexibility as we're able to site storage strategically across the grid. Our IRP includes 75 megawatts of battery storage beginning in 2024 and could accelerate or increase the 550 megawatts of battery storage through 2040.
These tax advantages reduce the cost of new solar roughly 15%, providing annual cost savings of $60 million versus our plan. Also, with the use of tax deductions and credit, we do not expect a material impact in the alternative minimum tax through the remainder of the decade. All of this helps our customers with more savings. It's a supports our commitment to grow Michigan. It drives the transformation to clean energy and our growing voluntary green pricing program. Bottom line, this legislation is a great tailwind across the board.
Now let's get into the numbers. Year-to-date, we've delivered $2.29 of adjusted earnings per share and remain ahead of plan. With confidence in this year, we're raising the bottom end of our guidance to $2.87 to $2.89 per share from $2.85 to $2.89 per share. For 2023, we are initiating our full year preliminary guidance of $3. 05 to $3.11 per share, which reflects 6% to 8% growth off the midpoint of our revised 2022 guidance, and we expect to be toward the high end of that range. And remember, we always rebase our guidance of actual compounding our growth. This brings you a higher quality of earnings and differentiates us from others in the sector. Our long-term dividend growth remains at 6% to 8%, with a targeted payout ratio of about 60% over time.
We'll provide you with an update on our guidance as well as a refresh of our five-year capital plan on the Q4 call early next year. Lastly, we are confident in both our outlook and our ability to deliver our financial and operational target for the remainder of the year, which brings me to my last slide. In a few weeks, Michigan will have elections across the state. New people will join the legislature. We'll also see the results of the race for governor. Whatever the outcome, we will work effectively as we have for decades with whoever holds off it. You've heard us say it before, we deliver regardless of conditions, nearly two decades of industry-leading financial performance. You can count on CMS Energy on that.
Now, I'll turn the call over to Rejji to offer additional detail.