EX-99.1 2 k49307exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
Growing Forward 2010 Citi Power, Gas, Coal & Alternative Energy Conference June 8, 2010 John G. Russell President & Chief Executive Officer

 

This presentation contains "forward-looking statements" as defined in Rule 3b-6 of the Securities Exchange Act of 1934, as amended, Rule 175 of the Securities Act of 1933, as amended, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. They should be read in conjunction with "FORWARD-LOOKING STATEMENTS AND INFORMATION" and "RISK FACTORS" sections of CMS Energy's and Consumers Energy's Form 10-K for the year ended December 31 and as updated in subsequent 10-Qs. CMS Energy's and Consumers Energy's "FORWARD-LOOKING STATEMENTS AND INFORMATION" and "RISK FACTORS" sections are incorporated herein by reference and discuss important factors that could cause CMS Energy's and Consumers Energy's results to differ materially from those anticipated in such statements. The presentation also includes non-GAAP measures when describing CMS Energy's results of operations and financial performance. A reconciliation of each of these measures to the most directly comparable GAAP measure is included in the appendix and posted on our website at www.cmsenergy.com. CMS Energy expects 2010 reported earnings to be about the same as adjusted earnings. Reported earnings could vary because of several factors. CMS Energy is not providing reported earnings guidance reconciliation because of the uncertainties associated with those factors.

 

Consumers Energy Fourth largest combination utility in the U.S. 1.8 million electric and 1.7 million gas customers 9,500 MW of owned and purchased generation capacity (summer) 935 MW Zeeland acquisition 307 Bcf of gas storage capacity including 142 Bcf of working storage Ludington Pumped Storage B C Cobb J H Campbell D E Karn J C Weadock J R Whiting Mio Alcona Cooke Foote Loud 5 Channels Hodenpyl Tippy Rogers Hardy Croton Webber Allegan Electric Gas Combination Zeeland Overview Territory Investment growth balances responsible rate increases and healthy capital structure with attractive earnings growth.

 

Electric Sales Trends (weather adjusted) . . . . 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 August Plan 22145 23722 24572 25237 25707 24533 24875 23916 24893 26051 26305 26977 27928 29143 29623 29894 30325 30877 31868 33177 34465 34622 35462 36355 37234 37463 37301 37792 37746 38017 37586 38372 38098 37339 36123 36958 Revised Potential 37339 36000 Electric Sales Year-to-Year Comparison 0 (7)% Decline over three years ('79 -'82 recession) 2008 2009 -2% -3% . . . . industrial sales showing signs of turnaround. 2010 +2% 2009 2010 2008 2009 2010 Industrial Sales -0.11 0.12 -0.04 -0.06 0.08 Total Sales -0.04 0.02 -0.02 -0.03 0.02 First Quarter Full Year

 

Economic Indicators -- Autos U.S. auto production up 62% through May 1.

 

Long-term Strategy Consistent financial performance Fair and timely regulation Utility investment Customer value Safe, excellent operations Consistent financial performance

 

Performance 2006 Baseline 2007 2008 2009 safety incidents 6.1 7 4.5 3.2 47% improvement from 2006. Employee Safety Moved into 1st quartile from 2008. Cost Management - 2009 Recordable Incident Rate FPL Nicor Xcel E.ON CMS Energy Puget Dominion WE Allegheny Alliant First Energy PG&E Ameren SCANA Berkshire Hathaway PPL NiSource PSE&G DTE National Grid Integrys Northeast Util 1.3 1.5 1.5 1.6 2 2.1 2.154 2.214 2.285 2.333 2.334 2.35 2.5 2.51 2.6 2.7 2.833 2.833 3.071 3.345 3.416 3.475 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile Source: Oliver Wyman Benchmarking Study (July 2009) Consumers Energy Movement from 2008 Study

 

Reliability 2006 Baseline 2007 2008 2009 customer minutes 337 274 275 249 26% improvement from 2006. Distribution 39% improvement from 2006. Generation Customer Minutes 2006 Baseline 2007 2008 2009 EFOR 0.09 0.063 0.055 0.055 Equivalent Forced Outage Rate

 

Balanced Energy Plan Diverse and balanced plan 935 MW natural gas plant purchased in 2008 Energy efficiency reduction of 5.5% by 2015 Incentive achieved in 2009 - $6 million 10% Renewable portfolio standard by 2015 New clean coal plant (deferred)

 

Clean Coal Plant Deferral Defer new clean coal plant beyond 2017 launch schedule. 830 MW New clean coal plant deferred Three primary drivers Lower customer demand Lower gas prices Excess capacity in market New investment plan Growing Forward Strategy and Balanced Energy Initiative unchanged Earnings guidance unchanged

 

What's Changed? Peak Demand Long-Term Gas Prices EGAA Current Outlook 2009 9398 8384 2010 9513 8443 2011 9700 8577 2012 9783 8772 2013 9819 8924 2014 9889 9022 2015 10014 9161 2016 10076 9295 2017 10099 9378 2018 10123 9484 2019 10143 9571 2020 10160 9631 2021 10177 9667 2022 10192 9719 2023 10209 9808 2024 10229 9883 2025 10249 9937 2026 10272 9973 2027 10296 10026 2028 10320 10077 2029 10345 10125 2030 10376 10174 2031 10222 2032 10268 2033 10313 2034 10376 2035 10417 2036 10458 2037 10500 2038 10521 2039 10542 2040 10563 MW 0 Present Outlook Air Permit Peak demand down 700 MWs by 2017; "shale" gas lower price. 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 EGAA 9.03475 7.091 7.862 8.013 7.951 7.933 8.48 9.02 9.563 9.997 10.473 11.058 11.788 12.541 13.474 14.344 15.011 15.788 Current Outlook 9.03475 3.99 4.26 5.21 5.65 5.95 6.25 6.57 6.94 7.32 7.7 7.99 8.23 8.48 8.75 8.98 9.18 9.46 Henry Hub Actuals 1.532583333 1.797666667 2.143333333 1.900583333 1.635583333 2.590833333 2.58725 2.10825 2.267833333 3.885666667 4.272666667 3.221166667 5.387916667 6.137583333 8.615666667 7.226333333 6.86025 9.03475 3.99 MMBtu $ Present Outlook (down 33%) Air Permit Actual

 

Capacity Fuel Mix (2018) With New Coal Plant New Plan With or without new coal plant projected fuel mix balanced.

 

Renewables - Build Lake Winds Energy Park Cross Winds Energy Park Michigan energy law renewables requirements 10 percent energy, 500 MW of new capacity by 2015 Purchase 50 percent and build 50 percent MPSC approved Renewable Plan (May 2009) Annual surcharge in place (Sept 2009) Lake Winds Energy Park 2012 - 100 MW "build" Cross Winds Energy Park 500 MW potential First wind farm construction authorized; PPAs underway.

 

New Investment Plan Utility Investment Drives . . . . . . . . EPS growth at responsible rates. Investment 2010-14 (mils) Base capital $ 4,390 Choices in Plan Renewables $ 900 Smart Grid 650 Gas compression and pipelines 250 Electric generation 250 Electric reliability and other environmental 800 Total Choices in Plan $ 2,850 Total Capital 2010-14 $ 7,240 2008 2009 2010 2011 2012 2013 2014 Depreciation 7.851 8.729 9.2 8.814 8.482 7.999 7.577 7.077 Maintenance 0.583 1.162 1.753 2.342 2.951 Customer growth 0.055 0.112 0.171 0.234 0.301 Environmental 0.106 0.238 0.418 0.685 0.988 Electric generation 0 0 0.031 0.114 0.208 Gas compression and pipelines 0.076 0.155 0.217 0.252 0.275 Energy optimization 0 0.025 0.083 0.15 0.219 Electric reliability and other environmental 0.059 0.168 0.339 0.539 0.737 Smart Grid 0.056 0.144 0.232 0.385 0.578 Renewables 0.02 0.066 0.216 0.416 0.7 6%-8% Bils $ Present Rate Base 2009 2010 2011 2012 2013 2014 Average Rate Base (bils) $9.8 $10.5 $11.4 $12.5 $13.8 0 Rate Base

 

Electricity Cost / Disposable Income Highest 25 States - 3.1% - 5.4% Source: Moody's Global Infrastructure - U.S. Regulated Electric Utilities - July 2009 Michigan among the lowest 10 states in terms of electricity cost. State % National Average CO 1.8 UT 2.1 MN 2.3 NM 2.3 WA 2.3 WY 2.4 NH 2.4 ID 2.4 MI 2.4 CA 2.6 IL 2.6 WI 2.6 KS 2.7 RI 2.7 NE 2.7 AK 2.7 OR 2.8 MT 2.8 ND 2.9 DC 2.9 NJ 2.9 IA 2.9 SD 3 MA 3 VT 3 VA 3.1 OH 3.1 WV 3.1 ME 3.1 IN 3.2 MS 3.2 MD 3.4 PA 3.4 NY 3.6 NV 3.7 OK 3.7 GA 3.8 KY 3.9 CT 3.9 DE 4 AZ 4 AR 4.1 HI 4.2 NC 4.2 SC 4.3 TN 4.4 FL 4.9 AL 4.9 LA 5 TX 5.2 MS 5.4 National Average 3.4% Lowest 25 States - 1.8% - 3.0% Lowest 10 States 1.8% - 2.6%

 

Regulatory Timeline Second year under new, comprehensive Michigan energy law. 2009 2010 2010 2010 2010 2010 2010 2010 2010 2011 Fourth Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter Fourth Quarter First Quarter Gas Rate Case U-15986 Self-implemented $89 M Self-implemented $89 M Final Order May $66 M Electric General Rate Case U-16191 Filed $178 M Filed $178 M Self-implement July Final Order January Big Rock Point U-15611 $85 M refund $85 M refund $85 M refund $85 M refund "Show Cause" U-16113 (forestry and O&M in 2007) MPSC Staff $27 M refund ALJ PFD "no refund" MPSC Staff $27 M refund ALJ PFD "no refund" Electric Decoupling Reconciliation U-15645 File "Cushion"

 

Key Takeaways . . . . . . . . continued track record of strong results. CMS Adjusted EPS (non-GAAP) Potential a _ _ _ _ _ a Excluding MTM in 2004-2006 b $1.25 excluding discontinued Exeter operations and accounting changes related to convertible debt and restricted stock Dividend Annual ¢/share Payout 25% 30% 2003 2004 2005 2006 2007 2008 2009 2010 Future Actual 0.81 0.9 0.96 1.08 0.84 1.21 1.26 Guidance 0.8 0.85 0.9 1 0.8 1.2 1.25 1.35 1.45 1.45 8% Growth 6%-8% Growth $1.21b $1.20 $1.25 $1.35 40% 44% 60¢ $1.26 Actual Guidance Utility investment - visible: EPS growth of 6%-8% annually Operating cash flow growth of ^$100 million annually NOLs - avoid new equity near term Regulatory framework -- constructive Risks -- mitigated Dividend payout ratio -- growing

 

GAAP Reconciliation

 

CMS Energy
Earnings Reconciliation By Quarter and Year
December 31
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
                                         
    Unaudited Quarters
(millions, except per share amounts)   1Q03   2Q03   3Q03   4Q03   FY 2003
 
Reported net income
   $ 82     $ (65 )   $ (69 )   $ 8     $ (44 )
 
After-tax items:
                                        
Electric and gas utility other
                             30       30  
Enterprises other
     5       7       62       37       111  
Corporate other
     1               19       4       24  
Discontinued operations
     (31 )     53       (2 )     (43 )     (23 )
Cumulative accounting changes
     24                               24  
 
Ongoing earnings (non-GAAP)
   $ 81     $ (5 )   $ 10     $ 36     $ 122  
   
 
                                        
Average shares outstanding, basic
     144.1       144.1       152.2       161.1       150.4  
 
                                        
Average shares outstanding, diluted
     165.0       144.1       152.2       161.1       150.4  
 
                                        
 
Reported earnings per share
   $ 0.52     $ (0.45 )   $ (0.46 )   $ 0.05     $ (0.30 )
 
After-tax items
                                        
Electric and gas utility other
                             0.19       0.21  
Enterprises other
     0.03       0.05       0.41       0.23       0.74  
Corporate other
                     0.12       0.02       0.16  
Discontinued operations
     (0.19 )     0.37       (0.01 )     (0.27 )     (0.16 )
Cumulative accounting changes
     0.14                               0.16  
 
Ongoing earnings per share (non-GAAP)
   $ 0.50     $ (0.03 )   $ 0.06     $ 0.22     $ 0.81  
   
 
Note:   Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.
2003 A-1

 

 

CMS Energy
Earnings Reconciliation By Quarter and Year
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
                                         
    Unaudited     31-Dec  
(millions, except per share amounts)   1Q04*     2Q04     3Q04     4Q04     FY 2004  
       
Reported net income — GAAP
   $ (9 )   $ 16     $ 56     $ 47     $ 110  
       
After-tax items:
                                        
Electric and gas utility other
                             (67 )     (67 )
Enterprises other
     88               (29 )     48       107  
Corporate other
     (7 )             (1 )     1       (7 )
Discontinued operations
     2               (8 )     10       4  
Cumulative accounting changes
     2                               2  
       
Adjusted earnings, including MTM
   $ 76     $ 16     $ 18     $ 39     $ 149  
Mark-to-market impacts
   NM       (13 )     9       9       5  
       
Adjusted earnings, excluding MTM
   $ 76     $ 3     $ 27     $ 48     $ 154  
       
 
                                        
Average shares outstanding, basic
     161.1       161.2       161.5       190.2       168.6  
 
                                        
Average shares outstanding, diluted
     161.1       164.2       165.0       194.0       172.1  
 
                                        
       
Reported earnings per share — GAAP
   $ (0.06 )   $ 0.10     $ 0.34     $ 0.24     $ 0.64  
After-tax items
                                        
Electric and gas utility other
                             (0.35 )     (0.39 )
Enterprises other
     0.56               (0.17 )     0.25       0.62  
Corporate other
     (0.05 )             (0.01 )     0.01       (0.03 )
Discontinued operations
     0.01               (0.05 )     0.05       0.02  
Cumulative accounting changes
     0.01                               0.01  
       
 
                                        
Adjusted earnings per share, including MTM
   $ 0.47     $ 0.10     $ 0.11     $ 0.20     $ 0.87  
Mark-to-market impacts
   NM       (0.08 )     0.06       0.05       0.03  
       
 
                                        
Adjusted earnings per share, excluding MTM
   $ 0.47     $ 0.02     $ 0.17     $ 0.25     $ 0.90  
       
 
Note:    Year-to-date & full-year EPS may not equal sum of quarters due to share count differences.
 
*   Quarterly amounts differ from amounts previously reported due to accelerating the measurement date on our benefit plans by one month and the remeasurement of our post retirement obligation.
 
NM:    Not meaningful.
2004 A-1

 

 

CMS Energy
Earnings Reconciliation By Quarter and Year
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
                                         
    Unaudited     31-Dec  
(millions, except per share amounts)   1Q05     2Q05     3Q05     4Q05     FY 2005  
       
Reported net income — GAAP
   $ 150     $ 27     $ (265 )   $ (6 )   $ (94 )
       
After-tax items:
                                        
Electric and gas utility other
                                        
Enterprises other
     (2 )     (1 )     (1 )     13       9  
Corporate other
             1               8       9  
Discontinued operations
                             (14 )     (14 )
Asset impairment
                     385               385  
       
Adjusted earnings, including MTM
  $ 148     $ 27     $ 119     $ 1     $ 295  
Mark-to-market impacts
     (75 )     19       (75 )     40       (91 )
       
Adjusted earnings, excluding MTM
   $ 73     $ 46     $ 44     $ 41     $ 204  
       
 
                                        
Average shares outstanding, basic
     195.3       217.9       219.6       218.5       211.8  
 
                                        
Average shares outstanding, diluted
     206.3       228.9       219.6       218.5       211.8  
 
                                        
       
 
                                        
Reported earnings per share — GAAP
   $ 0.74     $ 0.12     $ (1.21 )   $ (0.03 )   $ (0.44 )
       
After-tax items
                                        
Electric and gas utility other
                                        
Enterprises other
     (0.01 )   NM   NM     0.06       0.04  
Corporate other
           NM             0.03       0.04  
Discontinued operations
                             (0.06 )     (0.07 )
Asset impairment
                     1.75               1.82  
       
Adjusted earnings per share, including
                                        
MTM
   $ 0.73     $ 0.12     $ 0.54     $ 0.00     $ 1.39  
Mark-to-market impacts
     (0.36 )     0.08       (0.34 )     0.19       (0.43 )
       
Adjusted earnings per share, excluding MTM
   $ 0.37     $ 0.20     $ 0.20     $ 0.19     $ 0.96  
       
 
Note:    Year-to-date & full-year EPS may not equal sum of quarters due to share count differences.
2005 A-1

 

 

CMS Energy
Earnings Reconciliation By Quarter and Year
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
                                         
    Unaudited      
    2006   2006
(In millions, except per share amounts)   1Q     2Q     3Q     4Q     Dec YTD  
     
Reported net income — GAAP
   $ (27 )   $ 72     $ (103 )   $ (32 )   $ (90 )
     
After-tax items:
                                        
Electric and gas utility other
     —       —       —       —       —  
Enterprises other
     —       —       (29 )     25       (4 )
Corporate interest and other
     2       (15 )     4       82       73  
Discontinued operations (gain)
     (1 )     (2 )     (1 )     (2 )     (6 )
Asset impairment charges
     —       —       169       —       169  
     
Adjusted earnings, including MTM
   $ (26 )   $ 55     $ 40     $ 73     $ 142  
Mark-to-market impacts
     74       21       30       (13 )     112  
     
Adjusted earnings, excluding MTM
   $ 48     $ 76     $ 70     $ 60     $ 254  
     
 
                                        
Average shares outstanding, basic
     219.1       219.6       220.1       220.6       219.9  
Average shares outstanding, diluted
     219.1       229.6       220.1       220.6       219.9  
     
 
                                        
Reported earnings per share — GAAP
   $ (0.12 )   $ 0.31     $ (0.47 )   $ (0.15 )   $ (0.41 )
     
After-tax items
                                        
Electric and gas utility other
     —       —       —       —       —  
Enterprises other
     —       —       (0.13 )     0.11       (0.02 )
Corporate other
     0.01       (0.07 )     0.02       0.38       0.27  
Discontinued operations
     (0.01 )     (0.01 )     —       (0.01 )     (0.03 )
Asset impairment charges
     —       —       0.76       —       0.76  
     
Adjusted earnings per share, including MTM
   $ (0.12 )   $ 0.23     $ 0.18     $ 0.33     $ 0.57  
Mark-to-market impacts
     0.34       0.10       0.13       (0.06 )     0.51  
     
Adjusted earnings per share, excluding MTM
   $ 0.22     $ 0.33     $ 0.31     $ 0.27     $ 1.08  
     
Note: Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.
2006 A-1

 

 

CMS Energy Corporation
Earnings By Quarter and Year GAAP Reconciliation
(Unaudited)
                                         
    (In millions, except per share amounts)
    2007
    1Q   2Q   3Q   4Q   Dec YTD
     
 
                                        
Reported net income (loss) — GAAP
     ($215 )   $ 33     $ 82       ($127 )     ($227 )
 
After-tax items:
                                        
Electric and gas utility
     4       —       —       —       4  
Enterprises
     49       19       (10 )     222       280  
Corporate interest and other
     (81 )     32       9       (38 )     (78 )
Discontinued operations (income) loss
     178       (91 )     —       2       89  
Asset impairment charges, net
     157       25       (49 )     —       133  
 
Adjusted income — non-GAAP
   $ 92     $ 18     $ 32     $ 59     $ 201  
 
 
                                        
Average shares outstanding, basic
     221.5       222.6       223.0       223.4       222.6  
Average shares outstanding, diluted
     221.5       222.6       241.3       223.4       222.6  
 
                                        
 
Reported earnings (loss) per share — GAAP
     ($0.97 )   $ 0.15     $ 0.34       ($0.57 )     ($1.02 )
 
After-tax items:
                                        
Electric and gas utility
     0.01       —       —       —       (0.07 )
Enterprises
     0.23       0.08       (0.04 )     0.99       1.25  
Corporate interest and other
     (0.36 )     0.15       0.03       (0.17 )     (0.32 )
Discontinued operations (income) loss
     0.80       (0.41 )     —       0.01       0.40  
Asset impairment charges, net
     0.71       0.11       (0.20 )     —       0.60  
 
Adjusted earnings per share — non-GAAP
   $ 0.42     $ 0.08     $ 0.13     $ 0.26     $ 0.84  
 
                                         
            (In millions, except per share amounts)
    2008
    1Q   2Q   3Q   4Q   Dec YTD
     
Reported net income — GAAP
   $ 103     $ 46     $ 79     $ 61     $ 289  
 
After-tax items:
                                        
Electric and gas utility
     —       1       6       5       12  
Enterprises
     *       (4 )     (* )     1       (3 )
Corporate interest and other
     —       —       (6 )     1       (5 )
Discontinued operations (income) loss
     (* )     1       (1 )     *       *  
 
Adjusted income — non-GAAP
   $ 103     $ 44     $ 78     $ 68     $ 293  
 
 
                                        
Average shares outstanding, basic
     223.5       223.7       224.1       224.5       223.9  
Average shares outstanding, diluted
     236.6       239.1       234.3       226.6       234.8  
 
                                        
 
Reported earnings per share — GAAP
   $ 0.44     $ 0.19     $ 0.34     $ 0.27     $ 1.23  
 
After-tax items:
                                        
Electric and gas utility
     —       0.01       0.02       0.03       0.05  
Enterprises
     *       (0.02 )     0.01       *       (0.01 )
Corporate interest and other
     —       —       (0.03 )     *       (0.02 )
Discontinued operations (income) loss
     (* )     0.01       (0.01 )     *       *  
 
Adjusted earnings per share — non-GAAP (a)
   $ 0.44     $ 0.19     $ 0.33     $ 0.30     $ 1.25  
 
(a)   Including discontinued Exeter operations and accounting changes related to convertible debt and restricted stock, adjusted earnings per share was $0.43, $0.17, $0.32, $0.30, and $1.21, respectively.
 
Note:   Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.
 
*   Less than $500 thousand or $0.01 per share.
2008 A-1

 

 

CMS ENERGY CORPORATION
Earnings Segment Results GAAP Reconciliation
(Unaudited)
                                 
    Three Months Ended     Twelve Months Ended  
December 31   2008     2007     2008     2007  
 
 
                                
Electric Utility
                                
Reported
   $ 0.17     $ 0.17     $ 1.16     $ 0.88  
Dilution Impact
     —       —       —       (0.06 )
Unrealized Investment Loss
     0.02       —       0.03       —  
Asset Sales Loss and Other, net
     —       —       *       0.01  
 
                        
Adjusted
   $ 0.19     $ 0.17     $ 1.19     $ 0.83  
 
                        
 
                                
Gas Utility
                              
Reported
   $ 0.19     $ 0.15     $ 0.38     $ 0.39  
Dilution Impact
     —       —       —       (0.03 )
Unrealized Investment Loss
     0.01       —       0.02       —  
Asset Sales Loss and Other, net
     —       —       —       0.01  
 
                        
Adjusted
   $ 0.20     $ 0.15     $ 0.40     $ 0.37  
 
                        
 
                                
Enterprises
                                
Reported
   $ 0.01     $ (0.97 )   $ 0.06     $ (1.75 )
Unrealized Investment Loss
     *       —       0.01       —  
Asset Impairment Charges, net of insurance recoveries
     —       —       —       0.55  
Asset Sales (Gain) Loss and Other, net
     —       0.99       (0.02 )     1.25  
 
                        
Adjusted
   $ 0.01     $ 0.02     $ 0.05     $ 0.05  
 
                        
 
                                
Corporate Interest and Other
                                
Reported
   $ (0.10 )   $ 0.09     $ (0.37 )   $ (0.14 )
Dilution Impact
     —       —       —       0.03  
Unrealized Investment Loss
     *       —       0.01       —  
Asset Impairment Charges, net of insurance recoveries
     —       —       —       0.05  
Asset Sales Gain and Other, net
     —       (0.17 )     (0.03 )     (0.35 )
 
                        
Adjusted
   $ (0.10 )   $ (0.08 )   $ (0.39 )   $ (0.41 )
 
                        
 
                                
Discontinued Operations
                                
Reported
   $ —     $ (0.01 )   $ —     $ (0.40 )
Discontinued Operations Loss
     —     $ 0.01       —       0.40  
 
                        
Adjusted
   $ —     $ —     $ —     $ —  
 
                        
 
                                
Totals
                                
Reported
   $ 0.27     $ (0.57 )   $ 1.23     $ (1.02 )
Discontinued Operations Loss
     —       0.01       —       0.40  
Dilution Impact
     —       —       —       (0.06 )
Unrealized Investment Loss
     0.03       —       0.07       —  
Asset Impairment Charges, net of insurance recoveries
     —       —       —       0.60  
Asset Sales (Gain) Loss and Other, net
     —       0.82       (0.05 )     0.92  
 
                        
Adjusted
   $ 0.30     $ 0.26     $ 1.25 (a)    $ 0.84  
 
                        
Average Common Shares Outstanding — Diluted (in millions)
     226.6       223.4       234.8       222.6  
 
                        
 
(a)   $1.21 including discontinued Exeter operations and accounting changes related to convertible debt and restricted stock.
 
*   Less than $0.01 per share.
2008 A-2

 

 

CMS Energy Corporation
Earnings By Quarter and Year GAAP Reconciliation
(Unaudited)
                                         
(In millions, except per share amounts)   2008
    1Q   2Q   3Q   4Q   Dec YTD
     
 
                                        
Reported net income — GAAP
   $ 102     $ 44     $ 78     $ 60     $ 284  
 
After-tax items:
                                        
Electric and gas utility
     —       1       6       5       12  
Enterprises
     *       (4 )     *       1       (3 )
Corporate interest and other
     —       —       (6 )     1       (5 )
Discontinued operations (income) loss
     (1 )     1       (1 )     *       (1 )
 
Adjusted income — non-GAAP
   $ 101     $ 42     $ 77     $ 67     $ 287  
 
 
                                        
Average shares outstanding, basic
     225.2       225.4       225.8       226.3       225.7  
Average shares outstanding, diluted
     237.6       240.6       236.3       228.1       236.2  
 
                                        
 
Reported earnings per share — GAAP
   $ 0.43     $ 0.18     $ 0.33     $ 0.26     $ 1.20  
 
After-tax items:
                                        
Electric and gas utility
     —       0.01       0.02       0.03       0.05  
Enterprises
     *       (0.02 )     0.01       0.01       (0.02 )
Corporate interest and other
     —       —       (0.03 )     *       (0.02 )
Discontinued operations (income) loss
     (* )     —       (0.01 )     *       (* )
 
Adjusted earnings per share — non-GAAP (a)
   $ 0.43     $ 0.17     $ 0.32     $ 0.30     $ 1.21  
 
                                         
(In millions, except per share amounts)   2009
    1Q   2Q   3Q   4Q   Dec YTD
     
 
                                        
Reported net income — GAAP
   $ 70     $ 75     $ 67     $ 6     $ 218  
 
After-tax items:
                                        
Electric and gas utility
     —       —       —       79       79  
Enterprises
     *       16       2       4       22  
Corporate interest and other
     *       1       1       (1 )     1  
Discontinued operations (income) loss
     1       (25 )     1       3       (20 )
 
Adjusted income — non-GAAP
   $ 71     $ 67     $ 71     $ 91     $ 300  
 
 
                                        
Average shares outstanding, basic
     226.6       226.9       227.3       227.8       227.2  
Average shares outstanding, diluted
     233.2       234.6       238.5       243.0       237.9  
 
                                        
 
Reported earnings per share — GAAP
   $ 0.30     $ 0.32     $ 0.28     $ 0.02     $ 0.91  
 
After-tax items:
                                        
Electric and gas utility
     —       —       —       0.33       0.33  
Enterprises
     *       0.07       0.01       0.02       0.09  
Corporate interest and other
     *       *       *       (* )     0.01  
Discontinued operations (income) loss
     0.01       (0.11 )     0.01       0.01       (0.08 )
 
Adjusted earnings per share — non-GAAP
   $ 0.31     $ 0.28     $ 0.30     $ 0.38     $ 1.26  
 
 
Note:    Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.
 
*   Less than $500 thousand or $0.01 per share.
 
(a)   Excluding discontinued Exeter operations and accounting changes related to convertible debt and restricted stock, adjusted earnings per per share was $0.44, $0.19, $0.33, $0.30, and $1.25, respectively.
2009 A-1

 

 

CMS Energy Corporation
Earnings Segment Results GAAP Reconciliation
(Unaudited)
                                 
    Three Months Ended     Twelve Months Ended  
December 31   2009     2008     2009     2008  
 
 
Electric Utility
                                
Reported
   $ (0.10 )   $ 0.17     $ 0.82     $ 1.16  
Unrealized Investment Loss
     —       0.01       —       0.03  
Asset Sales Loss and Other, net
     0.33       —       0.33       *  
 
                        
Adjusted
   $ 0.23     $ 0.18     $ 1.15     $ 1.19  
 
                        
 
                                
Gas Utility
                                
Reported
   $ 0.18     $ 0.19     $ 0.41     $ 0.38  
Unrealized Investment Loss
     —       0.01       —       0.02  
 
                        
Adjusted
   $ 0.18     $ 0.20     $ 0.41     $ 0.40  
 
                        
 
                                
Enterprises
                                
Reported
   $ (* )   $ *     $ (0.03 )   $ 0.06  
Unrealized Investment Loss
     —       *       —       0.01  
Asset Sales (Gain) Loss and Other, net
     0.02       0.01       0.09       (0.03 )
 
                        
Adjusted
   $ 0.02     $ 0.01     $ 0.06     $ 0.04  
 
                        
 
                                
Corporate Interest and Other
                                
Reported
   $ (0.05 )   $ (0.10 )   $ (0.37 )   $ (0.40 )
Unrealized Investment Loss
     —       0.01       —       0.01  
Asset Sales (Gain) Loss and Other, net
     (* )     *       0.01       (0.03 )
 
                        
Adjusted
   $ (0.05 )   $ (0.09 )   $ (0.36 )   $ (0.42 )
 
                        
 
                                
Discontinued Operations
                                
Reported
   $ (0.01 )   $ (* )   $ 0.08     $ *  
Discontinued Operations (Income) Loss
     0.01       *       (0.08 )     (* )
 
                        
Adjusted
   $ —     $ —     $ —     $ —  
 
                        
 
                                
Totals
                                
Reported
   $ 0.02     $ 0.26     $ 0.91     $ 1.20  
Discontinued Operations (Income) Loss
     0.01       *       (0.08 )     (* )
Unrealized Investment Loss
     —       0.03       —       0.07  
Asset Sales (Gain) Loss and Other, net
     0.35       0.01       0.43       (0.06 )
 
                        
Adjusted
   $ 0.38     $ 0.30     $ 1.26     $ 1.21 (a)
 
                        
 
                                
Average Common Shares Outstanding — Diluted (in millions)
     243.0       228.1       237.9       236.2  
 
                        
 
*   Less than $0.01 per share.
 
(a)   $1.25 excluding discontinued Exeter operations and accounting changes related to convertible debt and restricted stock.
2009 A-2

 

 

Consumers Energy
Gross Margin Reconciliation
December 31, 2009
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
in millions (unaudited)
                         
Year Ended December 31, 2009   Electric utility   Gas utility   Consolidated
 
Reported Operating Revenue — GAAP
   $ 3,407     $ 2,556     $ 5,963  
Less intersystem sales, net
     94       —       94  
 
Adjusted Operating Revenue — non-GAAP
   $ 3,313     $ 2,556     $ 5,869  
 
                        
Energy costs:
                        
Fuel for electric generation
     460       —       460  
Purchased and interchange power
     1,151       —       1,151  
Purchased power — related parties
     81       —       81  
Cost of gas
     —       1,778       1,778  
     
 
                        
Gross margin — non-GAAP
   $ 1,621     $ 778     $ 2,399  
 
                        
Other operating and maintenance expenses
     646       399       1,045  
Depreciation and amortization
     441       118       559  
General taxes
     149       60       209  
Loss (gain) on asset sales, net
     (9 )     —       (9 )
 
Total Operating Expenses
   $ 2,919     $ 2,355     $ 5,274  
 
                        
Adjusted Operating Income — non-GAAP
   $ 394     $ 201     $ 595  
Plus intersystem sales, net
     94       —       94  
 
Reported Operating Income — GAAP
   $ 488     $ 201     $ 689  
 
2009 A-3

 

 

CMS ENERGY CORPORATION
Earnings By Quarter and Year GAAP Reconciliation
(Unaudited)
                                         
(In millions, except per share amounts)   2009
    1Q   2Q   3Q   4Q   Dec YTD
     
 
                                        
Reported net income — GAAP
   $ 70     $ 75     $ 67     $ 6     $ 218  
 
After-tax items:
                                        
Electric and gas utility
     —       —       —       79       79  
Enterprises
     *       16       2       4       22  
Corporate interest and other
     *       1       1       (1 )     1  
Discontinued operations (income) loss
     1       (25 )     1       3       (20 )
 
Adjusted income — non-GAAP
   $ 71     $ 67     $ 71     $ 91     $ 300  
 
 
                                        
Average shares outstanding, basic
     226.6       226.9       227.3       227.8       227.2  
Average shares outstanding, diluted
     233.2       234.6       238.5       243.0       237.9  
 
                                        
 
Reported earnings per share — GAAP
   $ 0.30     $ 0.32     $ 0.28     $ 0.02     $ 0.91  
 
After-tax items:
                                        
Electric and gas utility
     —       —       —       0.33       0.33  
Enterprises
     *       0.07       0.01       0.02       0.09  
Corporate interest and other
     *       *       *       (* )     0.01  
Discontinued operations (income) loss
     0.01       (0.11 )     0.01       0.01       (0.08 )
 
Adjusted earnings per share — non-GAAP
   $ 0.31     $ 0.28     $ 0.30     $ 0.38     $ 1.26  
 
         
(In millions, except per share amounts)   2010
    1Q
 
        
Reported net income — GAAP
   $ 85  
 
After-tax items:
        
Electric and gas utility
     6  
Enterprises
     1  
Corporate interest and other
     *  
Discontinued operations loss
     1  
 
Adjusted income — non-GAAP
   $ 93  
 
 
        
Average shares outstanding, basic
     228.0  
Average shares outstanding, diluted
     246.5  
 
        
 
Reported earnings per share — GAAP
   $ 0.34  
 
After-tax items:
        
Electric and gas utility
     0.03  
Enterprises
     *  
Corporate interest and other
     *  
Discontinued operations loss
     0.01  
 
Adjusted earnings per share — non-GAAP
   $ 0.38  
 
 
Note:    Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.
 
*   Less than $500 thousand or $0.01 per share.
2010 A-1

 

 

CMS Energy Corporation
Earnings Segment Results GAAP Reconciliation
(Unaudited)
                 
    Three Months Ended  
March 31   2010     2009  
 
 
                
Electric Utility
                
Reported
   $ 0.16     $ 0.17  
Downsizing Program and Other
     0.02       —  
 
            
Adjusted
   $ 0.18     $ 0.17  
 
            
 
                
Gas Utility
                
Reported
   $ 0.27     $ 0.25  
Downsizing Program and Other
     0.01       —  
 
            
Adjusted
   $ 0.28     $ 0.25  
 
            
 
                
Enterprises
                
Reported
   $ 0.04     $ 0.01  
Downsizing Program and Other
     *       *  
 
            
Adjusted
   $ 0.04     $ 0.01  
 
            
 
                
Corporate Interest and Other
                
Reported
   $ (0.12 )   $ (0.12 )
Downsizing Program and Other
     *       *  
 
            
Adjusted
   $ (0.12 )   $ (0.12 )
 
            
 
                
Discontinued Operations
                
Reported
   $ (0.01 )   $ (0.01 )
Discontinued Operations Loss
     0.01       0.01  
 
            
Adjusted
   $ —     $ —  
 
            
 
                
Totals
                
Reported
   $ 0.34     $ 0.30  
Discontinued Operations Loss
     0.01       0.01  
Downsizing Program and Other
     0.03       *  
 
            
Adjusted
   $ 0.38     $ 0.31  
 
            
 
                
Average Common Shares Outstanding — Diluted (in millions)
     246.5       233.2  
 
            
 
*   Less than $0.01 per share.
2010 A-2

 

 

Appendix

 

(CMS ENERGY LOGO)
ELECTRIC RATE CASE U-16191*
On January 22, 2010, Consumers Energy filed an application with the Michigan Public Service Commission seeking an increase in its electric generation and distribution rates based on a June 2011 test year. The request seeks authority to recover new investment in system reliability, environmental compliance and technology enhancements. These investments are part of the Company’s Growing Forward strategy which calls for investing more than $6 billion in utility operations over the next five years. The proposed overall rate of return is based on an 11.0% authorized return on equity. If approved, the request would increase customer rates by an average of 5.2%. The $178 million request is detailed below.
             
Item   $ Millions     Explanation
1. O&M
   $ 49     Generation reliability and environmental: $25
 
           Technology: $24
 
2. Gross Margin
     5     Reduced third-party revenues; lower sales will be addressed in sales decoupling mechanism.
 
3. Investment
     106     Net plant (distribution and generation reliability,
 
           environmental and technology): $72
 
           Working capital: $29
 
           Depreciation and property taxes: $21
 
           DOE Liability: ($5)
 
           Taxes, AFUDC, and other: ($11)
 
4. Cost of Capital
     18     Higher return on equity (11% vs. 10.7%): $12
          Other capitalization costs: $6
 
          
Total
   $ 178      
 
          
                                 
Ratemaking   Existing   As Filed           After-Tax
Capital Structure   (U-15645)   Percent of Total   Annual Cost   Weighted Costs
Long Term Debt
     44.80 %     41.77 %     5.92 %     2.47 %
Short Term Debt
     0.78       1.51       3.96       0.06  
Preferred Stock
     0.48       0.44       4.46       0.02  
Common Equity
     40.51       41.49 (1)     11.00       4.56  
Deferred FIT
     12.80       14.26       0.00       0.00  
JDITC/Other
     0.63       0.53       8.50       0.05  
 
                                
 
     100.00 %     100.00 %             7.16 %(2)
 
                                
                 
    Existing    
Rate Base and Return   (U-15645)   As Filed
Rate Base ($ billions)
   $ 6.16     $ 6.97  
Return on Rate Base
     6.98 %     7.16 %
Return on Equity
     10.70 %     11.00 %
 
(1)   Equivalent to 49.57% on a financial basis.
 
(2)   Equivalent to 10.10% pre-tax basis.
ELECTRIC RATE CASE SCHEDULE
     
Staff & Intervenors File Testimony
  June 10, 2010
Consumers Files Self-implementation Rates
  June 28, 2010
Rebuttal Testimony
  July 1, 2010
Motions to Strike Testimony
  July 8, 2010
Replies to Motions to Strike
  July 13, 2010
Self-implementation Under PA 286
  July 22, 2010
Cross of all Witnesses
  July 15-28, 2010
Initial Briefs
  August 26, 2010
Reply Briefs
  September 16, 2010
Proposal for Decision
  November 1, 2010
Commission Order
  By January 21, 2011
 
*   Electric Rate Case U-16191 can be accessed at the Michigan Public Service Commission’s website.
http://efile.mpsc.cis.state.mi.us/efile/electric.html

 

(CMS ENERGY LOGO)
GAS RATE CASE U-15986*
On May 17, 2010, the Michigan Public Service Commission (MPSC) issued its final order in Consumers Energy’s Gas Rate Case U-15986, authorizing Consumers to increase its base gas rates by $66 million annually with an authorized ROE of 10.55%. The MPSC approved a sales decoupling mechanism, but did not approve trackers for uncollectibles expense or pension and OPEB expenses. On November 19, 2009, the Company self implemented an $89 million annual rate increase. As a result of the final order, the $23 million annual reduction will be refunded to customers later this year. Compared to rates that were implemented last November, the revenue decrease will reduce the residential class rates by 1.2%. A typical residential customer’s average monthly winter bill will be reduced by about $1 per month.
                             
    Company     MPSC            
    Self     Final     B/W Than      
Item   Implement     Order     Self Implement     Explanation of Variance
    (mils)     (mils)     (mils)      
 
                            
1. O&M
   $ 17     $ 13     $ (4 )   Uncollectible accounts expense: $(4)
 
                           Standard retirement units:$7
 
                           Corporate: $(3); outside services
 
                           Manufactured gas plant (MGP) amortization: $(4)
 
                           (shift from O&M to capital)
 
                            
2. Sales
     41       28       (13 )   Higher throughput: $(11); (283 Bcf vs. 272 Bcf)
 
                           Miscellaneous revenues: $(2)
 
                            
3. Investment
     23       27       4     Net Plant: $(2); (reduced AMI investment)
 
                           Depreciation expense and taxes: $2
 
                           MGP amortization: $4
 
                            
4. Cost of Capital
     8       (2 )     (10 )   Lower return on equity: $(8); (10.55% vs. 11.00%)
 
                           Lower debt costs: $(2)
 
                            
 
                      
Total
   $ 89     $ 66     $ (23 )    
 
                      
                         
Ratemaking   Existing   Company Self   MPSC
Capital Structure   (U-15506)   Implement   Final Order
Long Term Debt
     42.71 %     43.43 %     43.58 %
Short Term Debt
     0.66       0.58       0.59  
Preferred Stock
     0.49       0.46       0.46  
Common Equity
     41.78       41.07 (1)     40.78 (2)
Deferred Taxes
     12.94       13.17       13.30  
JDITC/Other
     1.42       1.29       1.29  
 
                        
 
     100.00 %     100.00 %     100.00 %
 
                        
                         
Rate Base and Return   Existing   Company   MPSC
Percentage   (U-15506)   Self Implement   Final Order
Rate Base ($ billions)
   $ 2.52     $ 2.76     $ 2.74  
Return on Rate Base
     7.03 %     7.28 %     7.02 %
Return on Equity
     10.55 %     11.00 %     10.55 %
 
(1)   Equivalent to 48.34% on a financial basis.
 
(2)   Equivalent to 48.07% on a financial basis.
*Gas Rate Case U-15986 can be accessed at the Michigan Public Service Commission’s website.
http://efile.mpsc.cis.state.mi.us/efile/gas.html

 

Federal Tax Benefits Appendix 3 Year-End Actual Estimate 2009 2010 2011 2012 (bils) (bils) (bils) (bils) Gross NOL carry forwards $ 1.3 $ .7 $ .2 $ 0 Net NOL cash benefit at 35% $ .5 $ .2 $ .1 0 Credit carry forwards .3 .3 .3 .2 Remaining cash benefit $ .8 $ .5 $ .4 $.2

 

Sales Decoupling (Residential) First Quarter Approved Rate Case Actual Decoupling Surcharge Average monthly sales per customer (kWh) 745 - 723 = (22) Number of customers (mils) 1.6 x 1.6 Average margin per kWh 6¢ x 6¢ Number of months x 3 Surcharge (mils) = $6 First Quarter electric sales lower than rate case levels - resulting in a surcharge. Appendix 4

 

Sales and Decoupling ? Appendix 5

 

Retail Open Access Retail Open Access Higher ROA load reduced EPS by about 5¢ in the First Quarter of 2010. First Quarter Second Quarter Third Quarter Fourth Quarter First Quarter 4 5.2 6.1 8.4 10 10 10 10 10 10 % of Total 2010 2009 10% First Quarter Second Quarter Third Quarter Fourth Quarter First Quarter 3185 3160 3204 2865 2607 "Bundled" Customer Demand a MW 2010 2009 (5)¢ Cap _ _ _ _ _ a Industrial and commercial 4% Appendix 6

 

MATURITY SCHEDULE OF CMS AND CECO LONG-TERM DEBT & PREFERRED SECURITIES
AS OF 04/30/2010
Reflects 4/15/10 payment of $644K of IQ Notes survivors’ option puts (CECo) and reclassing of 8.5% Sr Notes (CMS) to current
                     
        Maturity   Amount      
F/V   S/U   or Call Date   (000’s)     DEBT/ CO
SHORT-TERM DEBT:            
                   
 
F   S   05/15/10   $ 250,000    
4% FMBs (CECo)
F   S   06/15/10     30,000    
3.375% Fixed PCRBs (CECo)
F   S   06/15/10     27,900    
4.25% PCRBs (CECo)
F   U   08/01/10     67,291    
7.75% Sr Unsec Notes (CMS)
F   U   04/15/11     213,653    
8.5% Sr Notes (CMS)
F   U   SHORT-TERM     139,730    
*3.375% Convertible Sr Notes Put Date (CMS)
                 
 
            $ 728,574    
 
                   
 
LONG-TERM DEBT:            
                   
 
F   U   12/01/11   $ 287,500    
*2.875% Convertible Sr Unsec Notes Put Date (CMS)
                 
 
              287,500    
 
F   U   02/01/12   $ 150,000    
6.3% Senior Notes (CMS)
F   S   02/15/12     300,000    
5% Series L FMBs (CECo)
                 
 
            $ 450,000    
 
V   U   01/15/13   $ 150,000    
Floating Rate Sr Notes (CMS)
F   S   04/15/13     375,000    
5.375% Series B FMBs (CECo)
                 
 
            $ 525,000    
 
F   S   02/15/14     200,000    
6% FMBs (CECo)
F   U   06/15/14     172,500    
5.5% Convertible Sr Notes Put Date (CMS)
F   S   03/15/15     225,000    
5% FMBs Series N (CECo)
F   U   12/15/15     125,000    
6.875% Sr Notes (CMS)
F   S   08/15/16     350,000    
5.5% Series M FMBs (CECo)
F   S   02/15/17     250,000    
5.15% FMBs (CECo)
F   U   07/17/17     250,000    
6.55% Sr Notes (CMS)
F   S   03/01/18     180,000    
6.875% Sr Notes (CECo)
V   S   04/15/18     67,700    
VRDBs to replace PCRBs (CECo)
F   S   09/15/18     250,000    
5.65% FMBs (CECo)
F   S   03/15/19     350,000    
6.125% FMBs (CECo)
F   U   06/15/19     300,000    
8.75% Sr Notes (CMS)
F   S   09/15/19     500,000    
6.70% FMBs (CECo)
F   U   2/1/2020     300,000    
6.25% Sr Notes (CMS)
F   S   04/15/20     300,000    
5.65% FMBs (CECo)
F   U   07/15/27     28,667    
QUIPS 7.75%(CMS) Pref Sec
V   S   04/01/35     35,000    
PCRBs (CECo)
F   S   04/15/35     137,239    
5.65% FMBs IQ Notes (CECo)
F   S   09/15/35     175,000    
5.80% FMBs (CECo)
                 
 
            $ 4,196,106    
 
            $ 6,187,180    
SUBTOTAL
                 
 
                   
 
            $ 6,158,513    
SUBTOTAL EXCLUDING PREFERRED SECURITIES
                 
 
                   
 
        Various Maturity Dates/No Maturity Date Available:
            $ 226,176    
CECo Securitization Bonds (Long-Term & Short-Term) after 04/20/10 payment  
              227,118    
CECo Capital lease rental commitments (Long-Term & Short-Term) as of 03/31/10  
              162,860    
CECo DOE Liability as of 04/30/10
              239,698    
EnerBank (Long-Term & Short-Term) Discount Brokered CDs as of 03/31/10 (CMS)
              (36,048 )  
CMS Net unamortized discount as of 03/31/10
              (4,727 )  
CECo Net unamortized discount as of 03/31/10
                 
 
                   
 
            $ 7,002,256    
GRAND TOTAL INCLUDING CMS ENERGY, CONSUMERS & OTHER CMS ENTERPRISES SUBSIDIARIES, INCLUDING PREFERRED SECURITIES  
 
*   — Date that issue can be put to the Company is used instead of maturity date
     Status Codes: F-Fixed rate; V-Variable rate; S-Secured; U-Unsecured

 

Fact Sheets

 

     
(CMS ENERGY LOGO)
  Consumers Electric Utility
Financial & Operating Statistics
                                         
Years Ended December 31   2009     2008     2007     2006     2005  
 
ELECTRIC REVENUE AND POWER COSTS (Millions)
                                        
Residential
   $ 1,387     $ 1,414     $ 1,326     $ 1,279     $ 1,069  
Commercial
     1,099       1,129       1,111       1,062       878  
Industrial
     677       810       775       764       553  
Other
     36       32       30       29       26  
 
Total revenue from customers
   $ 3,199     $ 3,385     $ 3,242     $ 3,134     $ 2,526  
Wholesale
     19       22       23       22       18  
Intersystem
     94       113       92       45       46  
Retail open access/direct access
     31       15       15       17       28  
Miscellaneous
     64       59       71       84       83  
 
Total electric utility revenue
   $ 3,407     $ 3,594     $ 3,443     $ 3,302     $ 2,701  
 
Fuel for electric generation
   $ 460     $ 483     $ 385     $ 436     $ 464  
Purchased and interchange power
     1,232       1,388       1,449       1,135       818  
 
DEPRECIATION AND AMORTIZATION
   $ 441     $ 438     $ 397     $ 380     $ 292  
 
OPERATING INCOME (Millions)
   $ 488     $ 576     $ 413     $ 411     $ 342  
 
NET INCOME (Millions)
   $ 194     $ 271     $ 196     $ 199     $ 153  
 
DELIVERIES (Million kWhs)
                                        
System sales
                                        
Residential
     12,386       12,854       13,206       12,975       13,286  
Commercial
     11,211       11,969       12,384       12,199       11,221  
Industrial
     9,290       10,563       11,153       11,143       9,685  
Other
     230       225       231       227       229  
 
Total sales to ultimate customers
     33,117       35,611       36,974       36,544       34,421  
Wholesale
     328       333       496       498       468  
Retail open access/direct access
     2,326       1,541       1,364       1,455       4,056  
Intersystem
     1,277       1,176       1,329       814       3,624  
 
Total electric system deliveries
     37,048       38,661       40,163       39,311       42,569  
 
AVERAGE ELECTRIC REVENUE (¢/kWh)
                                        
Residential
     11.20       11.00       10.04       9.86       8.05  
Commerical
     9.80       9.43       8.98       8.71       7.82  
Industrial
     7.29       7.67       6.95       6.86       5.70  
Other
     15.65       14.22       12.99       12.78       11.45  
 
Total
     9.66       9.51       8.77       8.58       7.34  
 
ELECTRIC CUSTOMERS BILLED (At December 31)
                                        
Residential
     1,566,980       1,584,752       1,575,386       1,570,113       1,565,601  
Commercial
     210,223       208,931       211,365       211,718       211,273  
Industrial
     8,770       8,505       8,619       8,638       8,595  
Retail Open Access/Direct Access
     861       642       642       839       1,307  
Other
     1,282       2,045       2,025       2,009       1,972  
 
Total
     1,788,116       1,804,875       1,798,037       1,793,317       1,788,748  
 
AUTHORIZED RETURN ON EQUITY
     10.70 %     10.70 %     11.15 %     11.15 %     11.15 %
 
EARNED RETURN ON EQUITY-FINANCIAL
     6.4% 1     9.4 %     7.5 %     8.9 %     8.0 %
 
RATE BASE (At December 31) ($ Millions)
   $ 6,549     $ 6,175     $ 5,407     $ 5,088     $ 4,839  
 
COOLING DEGREE DAYS
                                        
Normal degree days in calendar year
     558       558       558       558       558  
Actual degree days
     379       542       773       613       916  
Percent warmer (colder) than normal
     (32.1 )     (2.9 )     38.5       9.9       64.2  
Increase (decrease) from normal in:
                                        
Electric deliveries (millions of kWh)
     (461 )     146       736       118       1,359  
EPS
   $ (0.09 )   $ 0.02     $ 0.09     $ 0.01     $ 0.14  
 
 
1   9.1% excluding Big Rock Decommissioning refund
         
CMS Energy Investor Relations   One Energy Plaza, Jackson, MI 49201 Tel. 517-788-2590   http://www.cmsenergy.com

 

     
(CMS ENERGY LOGO)
  Consumers Electric Utility
Supplemental Operating Statistics
                                                                                 
Years Ended December 31   2009           2008           2007           2006           2005        
 
FUEL COST ($/MMBtu)
                                                                                
Coal
     2.37               2.01               2.04               2.09               1.78          
Oil
     9.59               11.54               8.21               8.68               5.98          
Gas
     6.57               10.94               10.29               8.92               9.76          
Nuclear
     0.00               0.00               0.42               0.24               0.34          
Weighted average for all fuels
     2.56               2.47               2.07               1.72               1.64          
 
FUEL COST FOR GENERATION (%)
                                                                                
Coal
     90.6               81.0               97.9               88.2               76.6          
Oil and gas
     2.5               4.1               9.1               6.7               14.4          
Nuclear
     0.0               0.0               2.2               3.7               5.4          
Combustion turbine
     6.8               14.6               0.9               0.8               1.8          
Nox allowances
     0.1               0.3               (10.2 )             0.6               1.8          
 
POWER GENERATED (Millions of kWhs)
                                                                                
Coal
     17,255       47.3 %     17,701       45.5 %     17,903       44.3 %     17,744       44.6 %     19,711       65.8 %
Nuclear
     0       0.0 %     0       0.0 %     1,781       4.4 %     5,904       14.9 %     6,636       18.7 %
Oil
     14       0.0 %     41       0.1 %     112       0.3 %     48       0.1 %     225       0.7 %
Gas
     565       1.5 %     804       2.1 %     129       0.3 %     161       0.4 %     356       0.1 %
Hydro
     466       1.3 %     454       1.2 %     416       1.0 %     485       1.2 %     387       1.6 %
Net pumped storage (a)
     (303 )     -0.8 %     (382 )     -1.0 %     (478 )     -1.2 %     (426 )     -1.1 %     (516 )     -1.9 %
 
Total net generation
     17,997       49.4 %     18,618       47.8 %     19,863       49.2 %     23,916       60.2 %     26,799       84.9 %
 
Purchased and interchange:
                                                                                
Non-utility generation
     11,538       31.6 %     13,643       35.1 %     12,502       31.0 %     8,594       21.6 %     8,999       3.6 %
Net interchange power
     6,925       19.0 %     6,653       17.1 %     8,009       19.8 %     7,244       18.2 %     1,772       11.5 %
 
Total net purchased and interchange power
     18,463       50.6 %     20,296       52.2 %     20,511       50.8 %     15,838       39.8 %     10,771       15.1 %
 
Total net power supply
     36,460       100.0 %     38,914       100.0 %     40,374       100.0 %     39,754       100.0 %     37,570       100.0 %
 
NET DEMONSTRATED CAPABILITY (MW) AT PEAK / POWER SOURCE (%)                                                                        
Coal
     2,850       31.8 %     2,850       29.7 %     2,841       30.5 %     2,841       30.9 %     2,837       31.8 %
Oil and gas
     1,814       20.3 %     1,997       29.7 %     1,459       15.7 %     1,459       15.8 %     1,459       16.4 %
Nuclear
     0       0.0 %     0       0.0 %     0       0.0 %     778       0.0 %     778       0.0 %
Combustion turbine
     661       7.4 %     661       6.9 %     345       3.7 %     345       3.7 %     332       3.9 %
Hydro
     74       0.8 %     73       0.8 %     73       0.8 %     74       0.8 %     74       0.8 %
Pumped storage
     955       10.7 %     955       10.0 %     955       10.3 %     955       10.4 %     955       10.7 %
 
Total owned generation
     6,354       71.0 %     6,536       68.2 %     5,673       61.0 %     6,452       70.1 %     6,435       72.2 %
 
Plus P&I power capability
     2,600       29.0 %     3,050       31.8 %     3,627       39.0 %     2,756       29.9 %     2,516       27.8 %
 
Total owned and P&I
     8,954       100.0 %     9,586       100.0 %     9,300       100.0 %     9,208       100.0 %     8,951       100.0 %
 
Peak load (MW) (b)
     7,421               7,488               8,183               8,657               7,845          
Reserve capacity (%)
     17.0               22.0               12.0               6.0               12.4          
Nameplate generating capacity (MW) at peak
     6,784               6,784               6,784               6,784               6,784          
Load factor (b)
     55.9               59.2               56.3               52.4               54.7          
Heat rate-average Btu of fuel per net kWh generated
     9,522               10,201               10,198               10,123               10,088          
 
(a)   Consumers’ portion of the Ludington pumped storage facility.
 
(b)   Excluding Retail Open Access loads.
         
CMS Energy Investor Relations   One Energy Plaza, Jackson, MI 49201 Tel. 517-788-2590   http://www.cmsenergy.com

 

     
(CMS ENERGY)
  Consumers Gas Utility
Financial & Operating Statistics
                                         
    2009     2008     2007     2006     2005  
 
GAS REVENUE AND COST OF GAS ($ Millions)
                                        
Residential
   $ 1,808     $ 1,971     $ 1,823     $ 1,646     $ 1,742  
Commercial
     511       598       552       498       510  
Industrial
     101       124       113       111       116  
Other
     3       5       6       4       9  
 
Total sales revenue
   $ 2,423     $ 2,698     $ 2,494     $ 2,259     $ 2,377  
Transportation fees
     48       45       44       40       43  
Miscellaneous
     85       84       83       75       63  
 
Total gas utility revenue
   $ 2,556     $ 2,827     $ 2,621     $ 2,374     $ 2,483  
Cost of gas sold
     1,778       2,079       1,918       1,770       1,844  
 
Gas utility revenue net of cost of gas
   $ 778     $ 748     $ 703     $ 604     $ 639  
 
DEPRECIATION, DEPLETION AND AMORTIZATION
   $ 118     $ 136     $ 127     $ 122     $ 117  
 
OPERATING INCOME
   $ 201     $ 190     $ 170     $ 113     $ 151  
 
NET INCOME
   $ 96     $ 89     $ 87     $ 37     $ 48  
 
SALES AND DELIVERIES (Bcf)
                                        
Residential
     163       171       167       154       176  
Commercial
     52       57       55       50       57  
Industrial
     11       12       12       12       13  
Other
     —       —       —       —       1  
 
Total gas sales (1)
     226       240       234       216       247  
Gas transportation deliveries
     93       98       107       92       103  
 
Total gas sales and transportation deliveries
     319       338       341       308       350  
 
GAS CUSTOMERS BILLED (at December 31)
                                        
Residential
     1,574,246       1,577,863       1,580,586       1,584,666       1,577,358  
Commercial
     118,199       118,870       119,703       119,936       121,314  
Industrial
     7,073       6,961       7,014       6,982       7,081  
Transportation
     2,725       2,507       2,495       2,483       2,567  
 
Total customers
     1,702,243       1,706,201       1,709,798       1,714,067       1,708,320  
 
AVERAGE GAS REVENUE ($ per Mcf)
                                        
Residential
   $ 11.09     $ 11.53     $ 10.93     $ 10.70     $ 9.89  
Commercial
     9.83       10.49       10.09       9.87       8.96  
Industrial
     9.18       10.33       9.62       9.45       8.68  
Transportation (2)
     0.82       0.70       0.68       0.61       0.61  
 
GAS SUPPLY (MMcf)
                                        
Gas Cost Recovery
     206,866       208,296       216,843       207,223       236,978  
Gas Customer Choice
     31,498       24,177       19,520       15,915       13,989  
 
Total
     238,364       232,473       236,363       223,138       250,967  
 
AVERAGE COST OF GAS SOLD ($ per Mcf) (3)
                                        
Gas Cost Recovery
   $ 7.66     $ 8.36     $ 7.91     $ 8.03     $ 7.47  
Gas Customer Choice
     7.98       9.99       9.79       8.94       6.75  
 
AUTHORIZED RETURN ON EQUITY
     10.6 %     10.55 %     10.75 %     11.0 %     11.4 %
 
RATE BASE (at December 31) ($ Millions)
   $ 2,778     $ 2,638     $ 2,444     $ 2,446     $ 2,226  
 
EARNED RETURN ON EQUITY-FINANCIAL
     9.9% 4     9.2 %     9.2 %     4.4 %     7.0 %
 
HEATING DEGREE DAYS
                                        
Normal degree days in calendar year
     7,098       7,098       7,098       7,098       7,098  
Actual degree days
     6,815       6,917       6,561       6,119       6,557  
Percent colder (warmer) than normal
     (4.0 )     (2.6 )     (7.6 )     (13.8 )     (7.6 )
Increase (decrease) from normal in:
                                        
Gas deliveries (Bcf)
     (0.9 )     4.1       (6.3 )     (30.2 )     (7.4 )
EPS
   $ (0.01 )   $ 0.02     $ (0.03 )   $ (0.12 )   $ (0.03 )
 
 
(1)   Includes Gas Customer Choice sales.
 
(2)   Average gas revenue for transportation excludes amounts related to MCV and off-system transportation.
 
(3)   Includes pipeline transportation charges.
 
(4)   Rate is reflective of exceptionally warm weather
         
CMS Energy Investor Relations   One Energy Plaza, Jackson, MI 49201 Tel. 517-788-2590   http://www.cmsenergy.com

 

     
(CMS LOGO)
  Independent Power Production
Asset List
                                         
    Gross           Primary               Percentage of Gross
    Capacity   CMS   Fuel       In-Service   Capacity Under Long-
No. Project Name   MW   MW   Type   Location   Date   Term Contract
                        (%)
Projects in Operation:
                                        
* 1 Craven
     50       25     Biomass   N. Carolina     1990       0  
* 2 DIG
     710       710     Natural Gas   Michigan     2001       92  
* 3 Exeter
     31       31     Tires   Connecticut     1991       0  
* 4 Filer City
     73       37     Coal/Wood Waste   Michigan     1990       100  
* 5 Genesee
     38       19     Biomass   Michigan     1996       100  
* 6 Grayling
     40       20     Biomass   Michigan     1992       100  
* 7 Honey Lake
     36       13     Biomass   California     1989       100  
* 8 Michigan Power
     224       224     Natural Gas   Michigan     1999       0  
 
 
                                        
Projects in Operation
     1,202       1,079                          
                         
 
*   Operated by CMS Energy
As of March 2010
(CMS LOGO)
         
CMS Energy Investor Relations   One Energy Plaza, Jackson, MI 49201 Tel. 517-788-2590   http://www.cmsenergy.com