-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Bwrl3HjBMNEFHJShCHRECIFOm+Shrf8M5C6wtmXa7JQy2bqLgKXOL9cUEsjMZqL9 RVRYPgILuhcubu1/uB62yA== 0000950124-03-002761.txt : 20030814 0000950124-03-002761.hdr.sgml : 20030814 20030814110157 ACCESSION NUMBER: 0000950124-03-002761 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20030814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONSUMERS FUNDING LLC CENTRAL INDEX KEY: 0001126128 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-47938 FILM NUMBER: 03844183 BUSINESS ADDRESS: STREET 1: 212 W. MICHIGAN AVE CITY: JACKSON STATE: MI ZIP: 49201 MAIL ADDRESS: STREET 1: 212 W. MICHIGAN AVE CITY: JACKSON STATE: MI ZIP: 49201 10-Q 1 k78825e10vq.txt QUARTERLY REPORT FOR PERIOD ENDED JUNE 30, 2003 United States Securities and Exchange Commission Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2003 OR [_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________
Commission File Registrant; State of Incorporation; IRS Employer Number Address and Telephone Number Identification No. -------------------- ---------------------------------------- --------------------- 333-47938 Consumers Funding LLC 38-3575109 A Delaware limited liability company One Energy Plaza Jackson, Michigan 49201 (517) 788-0250
Securities registered pursuant to Section 12 (b) of the Act: None. Securities registered pursuant to Section 12 (g) of the Act: None. Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] NO [ ] Indicate by check mark whether the registrant is an accelerated filer (as defined in rule 12b-2 of the Exchange Act). YES [ ] NO [X] Consumers Funding LLC meets the conditions set forth in General Instruction H(1)(a) and (b) of the Form 10-Q and is, therefore filing this Form 10-Q with the reduced disclosure format. In accordance with Instruction H, Part I, Item 2 has been reduced and Parts III, Items 2, 3 and 4 have been omitted. The aggregate market value of the voting and non-voting common equity held by non-affiliates of the Registrant: None. CONSUMERS FUNDING, LLC FORM 10-Q QUARTERLY REPORT TO THE SECURITIES AND EXCHANGE COMMISSION FOR THE QUARTER ENDED JUNE 30, 2003 TABLE OF CONTENTS Page PART I: Financial Information 1. Management's Narrative Analysis of Results of Operations................3 2. Financial Statements and Supplementary Data Statements of Income................................................5 Balance Sheets......................................................6 Statements of Cash Flows............................................7 Statements of Member's Equity.......................................8 Notes to Financial Statements.......................................9 PART II: Other Information 3. Item 1. Legal Proceedings ..............................................13 Item 5. Other Information ..............................................13 Item 6. Exhibits and Reports on Form 8-K................................13 Signatures..............................................................14 Exhibit Index...........................................................15 2 CONSUMERS FUNDING LLC MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATION This Management's Narrative Analysis (MNA) of the results of operation of Consumers Funding LLC (Consumers Funding) is an abbreviated format pursuant to Instruction H of Form 10-Q. The MNA refers to Consumers Funding's Notes to Financial Statements and should be read in conjunction with such Financial Statements and Notes. This Form 10-Q and other written and oral statements from Consumers Funding may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to various factors that could cause Consumers Funding's actual results to differ materially from the results anticipated in such statements. Consumers Funding has no obligation to update or revise forward-looking statements regardless of whether new information, future events or any other factors affect the information contained in such statements. Consumers Funding does, however, discuss certain risk factors, uncertainties and assumptions in this MNA, and in various public filings it periodically makes with the Securities and Exchange Commission. Consumers Funding designed this discussion of potential risks and uncertainties, which is by no means comprehensive, to highlight important factors that may impact Consumers Funding's outlook. Consumers Funding, a Delaware limited liability company, whose sole member is Consumers Energy Company (Consumers), was formed by Consumers on October 11, 2000. Consumers is an electric and gas utility and is a wholly owned subsidiary of CMS Energy Corporation. Consumers Funding was organized for the sole purpose of purchasing and owning securitization property (see below), issuing securitization bonds, pledging its interest in securitization property and other collateral to the trustee to collateralize the securitization bonds, and performing activities that are necessary, suitable or convenient to accomplish these purposes. On November 8, 2001, Consumers Funding issued $468.6 million of securitization bonds. Consumers Funding used the proceeds from the securitization bond issuance to purchase securitization property from Consumers. As discussed in Note 1 to the Financial Statements, securitization property represents the irrevocable right of Consumers to collect a nonbypassable securitization charge (Securitization Charge) from customers in accordance with a financing order issued by the Michigan Public Service Commission (MPSC). In 2003, the securitization property, which is classified as a securitization receivable, along with earnings on cash deposited with the trustee, resulted in Consumers Funding recording $5.6 million and $5.8 million of interest income for the three months ended June 30, 2003 and 2002, respectively. Interest income for the six months ended June 30, 2003 and 2002 totaled $11.2 million and $11.5 million, respectively. Interest expense associated with the securitization bonds totaled $5.5 million and $5.8 million for the three months ended June 30, 2003 and 2002, respectively. Interest expense for the six months ended June 30, 2003 and 2002 totaled $11.2 million and $11.5 million, respectively. Consumers, as servicer, began billing a Securitization Charge to electric customers beginning with its December 2001 billing cycle, totaling $.001427 per kilowatt-hour, per customer, per billing cycle. A request for adjustment was submitted on October 15, 2002 and approval by the MPSC was granted on November 7, 2002. The new surcharge became effective with the December 2002 billing cycle and is $0.001328 per kilowatt-hour, per customer, per billing cycle. In the servicing agreement between Consumers Funding and Consumers, Consumers is required to remit its Securitization Charge collections to the trustee each business day. Under the servicing agreement, Consumers is required to request periodic Securitization Charge adjustments from the MPSC. The request for an adjustment must be submitted at least 45 days before the adjustment may take place. Adjustments will be made annually, and then quarterly beginning approximately one year before the expected final payment date of the last maturing class of securitization bonds. Adjustments to the Securitization Charge are based, among other things, on actual Securitization Charge 3 revenue collections and updated assumptions by Consumers as to projected future deliveries of electricity to customers. For the three months ended June 30, 2003, Consumers Funding collected $5.9 million in surcharge revenues, a decrease of approximately $300,000 compared to 2002. Included in the $5.9 million is $5.6 million of interest income and approximately $300,000 of other operating income. The decrease in surcharge revenues for the three-month period is primarily the result of the reduced Securitization Charge mentioned above. For the six months ended June 30, 2003, Consumers Funding collected $11.8 million in surcharge revenues, a decrease of approximately $500,000 compared to 2002. Included in the $11.8 million is $11.2 million of interest income and approximately $600,000 of other operating income. The decrease in surcharge revenues for the six-month period is primarily the result of the reduced Securitization Charge mentioned above. For the three months ended June 30, 2003, Consumers Funding incurred $5.9 million of operating expenses, a decrease of approximately $300,000 compared to 2002. Included in the $5.9 million is $5.6 million of interest expense and approximately $300,000 of servicing, administration and other expenses. The decrease in operating expenses for the three-month period is primarily the result of reduced debt levels. For the six months ended June 30, 2003, Consumers Funding incurred $11.8 million of operating expenses, a decrease of $500,000 compared to 2002. Included in the $11.8 million is $11.2 million of interest expense and approximately $600,000 of servicing, administration and other expenses. The decrease in operating expenses for the six-month period is primarily the result of reduced debt levels. 4 CONSUMERS FUNDING LLC STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 2003 2002 2003 2002 - ------------------------------------------------------------------------------------------------------------------------ In Thousands OPERATING REVENUES Interest Income -- Consumers Energy $ 5,547 $5,665 $ 11,166 $11,395 Interest Income - 112 - 137 Other Operating Revenue -- Consumers Energy 295 412 594 747 Other Operating Revenue 19 5 35 5 ---------------------------------------------------------- Total Operating Revenues 5,861 6,194 11,795 12,284 - ------------------------------------------------------------------------------------------------------------------------ OPERATING EXPENSES Interest Expense 5,547 5,754 11,166 11,509 Service Fee -- Consumers Energy 275 388 554 703 Administration Fee -- Consumers Energy 20 24 40 44 Other 19 16 35 16 ---------------------------------------------------------- Total Operating Expenses 5,861 6,182 11,795 12,272 - ------------------------------------------------------------------------------------------------------------------------ NET INCOME $ - $12 $ - $12 - ------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these statements. 5 CONSUMERS FUNDING LLC BALANCE SHEETS
ASSETS JUNE 30 DEC. 31 JUNE 30 2003 2002 2002 (UNAUDITED) (UNAUDITED) - ---------------------------------------------------------------------------------------------------- In Thousands CURRENT ASSETS Restricted Cash $ 16,762 $ 17,411 $ 27,859 Securitization Receivable -- Consumers Energy 27,475 26,402 19,290 --------------------------------------------- Total Current Assets 44,237 43,813 47,149 NON-CURRENT ASSETS Securitization Receivable -- Consumers Energy 402,396 416,245 439,587 --------------------------------------------- Total Non-current Assets 402,396 416,245 439,587 - ---------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 446,633 $ 460,058 $ 486,736 ==================================================================================================== LIABILITIES AND MEMBER'S EQUITY CURRENT LIABILITIES Securitization Bonds Payable $ 27,399 $ 26,905 29,005 Accounts Payable -- Consumers Energy 309 314 887 Accounts Payable -- Other 34 2 4 Interest Payable 4,360 4,457 14,898 --------------------------------------------- Total Current Liabilities 32,102 31,678 44,794 - ---------------------------------------------------------------------------------------------------- NON-CURRENT LIABILITIES Securitization Bonds Payable 412,188 426,037 439,587 --------------------------------------------- Total Non-current Liabilities 412,188 426,037 439,587 - ---------------------------------------------------------------------------------------------------- MEMBER'S EQUITY Total Member's Equity 2,343 2,343 2,355 --------------------------------------------- TOTAL LIABILITIES AND MEMBER'S EQUITY $ 446,633 $ 460,058 $ 486,736 ====================================================================================================
The accompanying notes are an integral part of these Balance Sheets. 6 CONSUMERS FUNDING LLC STATEMENTS OF CASH FLOWS (UNAUDITED)
SIX MONTHS ENDED JUNE 30 2003 2002 - ----------------------------------------------------------------------------------------------- In Thousands CASH FLOWS FROM OPERATING ACTIVITIES Net income $ - $ 12 Changes in Current Assets and Liabilities: Interest Receivable -- Consumers Energy - 2,257 Interest Payable (97) 11,509 Accounts Payable -- Consumers Energy (5) 758 Accounts Payable -- Other 32 4 ---------------------------- NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES (70) 14,540 - ------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Reduction of Securitization Receivable 12,776 9,715 ---------------------------- NET CASH PROVIDED BY INVESTING ACTIVITIES 12,776 9,715 - ----------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Securitization Bonds Payable (13,355) - ---------------------------- NET CASH USED IN FINANCING ACTIVITIES (13,355) - - ----------------------------------------------------------------------------------------------- NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (649) 24,255 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 17,411 3,604 ---------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 16,762 $ 27,859 ===============================================================================================
The accompanying notes are an integral part of these statements. 7 CONSUMERS FUNDING LLC STATEMENTS OF MEMBER'S EQUITY (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 2003 2002 2003 2002 - ---------------------------------------------------------------------------------------------------------------- In Thousands BALANCE AT BEGINNING OF PERIOD $ 2,343 $ 2,343 $ 2,343 $ 2,343 Add: Net Income - 12 - 12 ------------------------------------------------------ BALANCE AT END OF PERIOD $ 2,343 $ 2,355 $ 2,343 $ 2,355 ======================================================
The accompanying notes are an integral part of these statements. 8 CONSUMERS FUNDING LLC NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION AND NATURE OF OPERATIONS Consumers Funding, a Delaware limited liability company, whose sole member is Consumers, was formed by Consumers on October 11, 2000. On January 22, 2001, Consumers completed a $1,000 equity contribution to Consumers Funding. Consumers is an electric and gas utility and is a wholly owned subsidiary of CMS Energy Corporation. Consumers Funding was organized for the sole purpose of purchasing and owning securitization property (see below), issuing securitization bonds, pledging its interest in securitization property and other collateral to the trustee to collateralize the securitization bonds, and performing activities that are necessary, suitable or convenient to accomplish these purposes. Securitization property represents the irrevocable right of Consumers, or its successor or assignee, to collect a nonbypassable Securitization Charge from customers in accordance with an October 24, 2000 MPSC Financing Order (MPSC Financing Order). As modified by rehearing on January 4, 2001, the MPSC Financing Order authorizes the Securitization Charge to be sufficient to recover $468.6 million aggregate principal amount of securitization bonds, plus an amount sufficient to provide for any credit enhancement, to fund any reserves and to pay interest, redemption premiums, if any, servicing fees and other expenses relating to the securitization bonds. For financial reporting purposes, the purchase of the securitization property has been accounted for as a financing arrangement by Consumers Funding in the amount of $468.6 million. Accordingly, Consumers Funding has classified the purchase of securitization property as a securitization receivable from Consumers in the financial statements. Consumers Funding's organizational documents require it to operate in a manner so that it would not be consolidated into the bankruptcy estate of Consumers in the event Consumers becomes subject to a bankruptcy proceeding. Consumers and Consumers Funding have agreed that in the event of Consumers' bankruptcy, the parties will treat the transfer of the securitization property to Consumers Funding as a true sale. The securitization bonds are treated as debt obligations of Consumers Funding. For financial reporting, Federal income tax and State of Michigan income and franchise tax purposes, the transfer of securitization property to Consumers Funding is treated as part of a financing arrangement and not as a sale. Furthermore, the results of operations of Consumers Funding are consolidated with Consumers for financial and income tax reporting purposes. Consumers Funding is legally separate from Consumers. The assets and income of Consumers Funding, including without limitation, the securitization property, are not available to creditors of Consumers or CMS Energy Corporation. On November 8, 2001, Consumers Funding issued $468.6 million of securitization bonds, Series 2001-1, in six different classes. Consumers Funding used the proceeds to fund the purchase of securitization property from Consumers. The principal amount of the securitization bonds, interest, fees and required overcollateralization for the securitization bonds, will be recovered through Securitization Charges collected from electric retail customers taking delivery of electricity from Consumers or its successor based on MPSC approved rate schedules and as permitted by contracts between Consumers and certain specific customers. Consumers, as servicer, collects Securitization Charges from its customers and deposits collections daily into the General Subaccount held by the trustee (The Bank of New York). The trustee is required to use these funds to make principal and interest payments on the securitization bonds and to pay certain fees and expenses of Consumers Funding. Consumers Funding has no employees. Under the servicing agreement with Consumers, Consumers is required to manage and administer the securitization property and to collect Securitization Charges on Consumers Funding's behalf. Consumers receives a monthly servicing fee of one twelfth times 0.25 percent 9 of the principal amount of securitization bonds outstanding as of the payment date. The servicing agreement also requires Consumers to file annual Securitization Charge adjustment requests with the MPSC. These Securitization Charge adjustment requests are based on actual Securitization Charge revenue collections and Consumers' updated assumptions as to projected future deliveries of electricity to customers, expected delinquencies and write-offs, future payments and expenses relating to securitization property and the securitization bonds, any deficiency in the Capital or Overcollateralization Subaccounts and any amounts on deposit in the Reserve Subaccount. 2. SIGNIFICANT ACCOUNTING POLICIES USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect the reported amount of revenues, expenses, assets, and liabilities and disclosure of contingencies. Actual results could differ from these estimates. INCOME TAXES Consumers Funding has elected not to be taxed as a corporation for Federal income tax purposes. Consumers Funding is treated as a division of Consumers, and accordingly, will not be treated as a separate taxable entity. Consumers and its subsidiaries file a consolidated federal income tax return with CMS Energy. Income taxes are generally allocated based on each company's separate taxable income. As of June 30, 2003 and 2002, Consumers Funding had no tax related payables or receivables. RESTRICTED CASH The trustee has established the following subaccounts for the securitization bonds. GENERAL SUBACCOUNT: The General Subaccount is comprised of Securitization Charge collections and interest earned from short-term investments. These amounts accumulate until the trustee pays principal, interest, service and administration fees and other expenses. At June 30, 2003, and June 30, 2002, the General Subaccount totaled $11.3 million and $25.5 million, respectively. These funds are used by the trustee for the scheduled payments of principal and interest to bondholders and to pay expenses of Consumers Funding. RESERVE SUBACCOUNT: The Reserve Subaccount includes any Securitization Charge collections in excess of the amounts required in the General, Overcollateralization and Capital Subaccounts. The trustee will draw funds from this subaccount if the General Subaccount is insufficient to make scheduled payments. At June 30, 2003, the Reserve Subaccount totaled approximately $2.9 million. There was no balance in the Reserve Subaccount at June 30, 2002. OVERCOLLATERALIZATION SUBACCOUNT: On each payment date, the trustee will deposit in the Overcollateralization Subaccount a predetermined, specified amount so that the account balance ultimately reaches the required amount of $2.3 million, which represents 0.5 percent of the initial outstanding principal balance of the securitization bonds. If amounts available in the General Subaccount and the Reserve Subaccount are not sufficient on any payment date to make scheduled payments to the securitization bondholders and to pay the required expenses, fees and charges, the trustee will draw on the amounts in the Overcollateralization Subaccount to make those payments. At June 30, 2003, the Overcollateralization Subaccount totaled approximately $253,000. There was no balance in the Overcollateralization Subaccount at June 30, 2002. CAPITAL SUBACCOUNT: The Capital Subaccount was established on November 8, 2001. Consumers deposited $2.3 million into the Capital Subaccount, an amount equal to 0.5 percent of the initial principal balance of the securitization bonds. If amounts available in the General Subaccount, the Reserve Subaccount and the Overcollateralization Subaccount are not sufficient on any payment date to make scheduled payments of principal and interest to the securitization bondholders and to pay the expenses, fees and charges of Consumers 10 Funding, the trustee will draw on amounts in the Capital Subaccount to make those payments. At June 30, 2003, and June 30, 2002, the Capital Subaccount contained a balance of $2.3 million and $2.4 million, respectively. 3. LONG-TERM DEBT On November 8, 2001, Consumers Funding issued $468.6 million of securitization bonds, in six classes at interest rates ranging from 2.59 percent to 5.76 percent. Consumers Funding used the proceeds from the securitization bonds to purchase securitization property from Consumers. As scheduled, as of June 30, 2003, Consumers Funding has retired $29 million of the class A-1 and A-2 securitization bonds. As scheduled, on July 21, 2003, approximately $6.0 million of securitization bonds were also retired. Scheduled maturities and interest rates for the remaining securitization bonds at June 30, 2003 are as follows:
Expected Principal Final Final Bond Balance Payment Maturity Class Rate (in thousands) Date Date -------------------------------------------------------------------------------------- A-2 3.80% 80,995 4/20/2006 4/20/2008 A-3 4.55% 31,000 4/20/2007 4/20/2009 A-4 4.98% 95,000 4/20/2010 4/20/2012 A-5 5.43% 117,000 4/20/2013 4/20/2015 A-6 5.76% 115,592 10/20/2015 10/20/2016 ------- Total $439,587 Current Maturities (27,399) -------- Long-Term Debt $412,188 ========
The amortization schedule for the securitization bonds provided for an initial payment to bondholders on July 20, 2002 and then quarterly thereafter. The following table provides the expected principal retirement of the securitization bonds over the next five calendar years (in thousands).
Principal Year Retirement ---- ---------- 2003 26,905 2004 27,786 2005 28,646 2006 29,591 2007 30,763
4. FAIR VALUE OF FINANCIAL INSTRUMENTS Restricted cash is on deposit with the trustee and, by definition, is carried at its fair value. At June 30, 2003, and 2002, Consumers Funding had a financial asset (representing its securitization receivable from Consumers) of approximately $430 million and $459 million, respectively, and financial liabilities (representing the securitization bonds) with a cost basis of approximately $440 million and $469 million respectively. The securitization receivable and securitization bonds are carried at cost, which approximates fair value. Fair value is estimated based on quoted market prices, or, in the absence of specific market prices, on quoted market prices of similar investments or other valuation techniques. 11 5. SIGNIFICANT AGREEMENTS AND RELATED PARTY TRANSACTIONS Consumers Funding has a securitization receivable with Consumers in the amount of approximately $430 million and $467 million, as of June 30, 2003, and June 30, 2002, respectively. Accordingly, Consumers Funding recognized interest income totaling $5.6 million and $5.7 million for the three months ended June 30, 2003, and 2002, respectively. In addition, Consumers Funding recognized other operating income from Consumers totaling approximately $300,000 for the three months ended June 30, 2003, and approximately $400,000 for the comparable time period in 2002. For the six months ended June 30, 2003, and 2002, Consumers Funding recognized interest income totaling $11.2 and $11.4 million, respectively. In addition, Consumers Funding recognized other operating income from Consumers totaling approximately $600,000 for the six months ended June 30, 2003, and approximately $700,000 for the comparable time period in 2002. Consumers Funding has a securitization payable with Consumers in the amount of approximately $300,000 and $900,000, as of June 30, 2003 and June 30, 2002, respectively. Under the servicing and administration agreements, Consumers is required to manage and administer the securitization property of Consumers Funding, and to collect the Securitization Charge on Consumers Funding's behalf. Consumers Funding pays Consumers a servicing fee (see Note 1) and an annual administrative fee. These fees are payable to Consumers on each scheduled quarterly payment date beginning July 20, 2002. For the three months ended June 30, 2003, Consumers Funding has recorded total expenses associated with these fees of approximately $300,000, and approximately $400,000 for the comparable time period in 2002. For the six months ended June 30, 2003, Consumers Funding has recorded total expenses associated with these fees of approximately $600,000, and approximately $700,000 for the comparable time period in 2002. 12 CONSUMERS FUNDING LLC PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS NONE. ITEM 5. OTHER INFORMATION NONE. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits. See Exhibit Index that appears following the Signature page to this report. (b) Reports on Form 8-K: None 13 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CONSUMERS FUNDING LLC By: /s/Laura L. Mountcastle Date: August 14, 2003 ---------------------------- Laura L. Mountcastle President, Chief Executive Officer, Chief Financial Officer and Treasurer By: /s/Glenn P. Barba Date: August 14, 2003 ---------------------- Glenn P. Barba Chief Accounting Officer and Controller 14 INDEX TO EXHIBITS EXHIBIT NO. DESCRIPTION -------- ----------------------------------------------------- 10(a) Monthly Servicer's Certificate dated May 20, 2003 10(b) Monthly Servicer's Certificate dated June 19, 2003 10(c) Monthly Servicer's Certificate dated July 18, 2003 10(d) Quarterly Servicer's Certificate dated July 18, 2003 31 Consumers Funding, LLC's certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 32 Consumers Funding, LLC's certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 15 EX-10.(A) 3 k78825exv10wxay.txt MONTHLY SERVICER'S CERTIFICATE DATED MAY 20, 2003 EXHIBIT 10(a) MONTHLY SERVICER'S CERTIFICATE CONSUMERS FUNDING LLC $468,592,000 SECURITIZATION BONDS, SERIES 2001-1 Pursuant to Section 3.05 of the Servicing Agreement dated as of November 8, 2001 (the "Consumers Servicing Agreement") between Consumers Energy Company, as Servicer and Consumers Funding LLC, as Issuer, the Servicer does hereby certify as follows: Capitalized terms used in the Monthly Servicer's Certificate (the "Monthly Certificate") have their respective meanings as set forth in the Servicing Agreement. References herein to certain sections and subsections are references to the respective sections of the Servicing Agreement. Current BILLING MONTH: April 2003
CURRENT BILLING MONTH 4/3/2003 - 5/2/2003 COLLECTION CURVE 100% STANDARD BILLING FOR PRIOR BILLING MONTH Residential Total Billed $141,706,662 Residential SECURITIZATION CHARGE (SC) Billed $1,371,144 0.968% Commercial Total Billed $81,247,895 Commercial SECURITIZATION CHARGE (SC) Billed $1,276,841 1.572% Industrial Total Billed $47,931,754 Industrial SECURITIZATION CHARGE (SC) Billed $1,315,051 2.744% YTD NET WRITE-OFFS AS A % OF BILLED REVENUE - ------------------------------------------- Non-Residential Customer Net Write-offs 0.190% Residential Customer Net Write-offs 0.420% Total Net Write-offs 0.290% AGGREGATE SC COLLECTIONS TOTAL SC REMITTED FOR BILLING MONTH Residential Class SC Collected $1,282,056 Commercial Class SC Collected $1,274,845 Industrial Class SC Collected $1,486,701 Total SC Collected $4,043,602 Aggregate SC Remittances for April 2003 BILLING MONTH $4,043,602 Aggregate SC Remittances for May 2003 BILLING MONTH $0 Aggregate SC Remittances for June 2003 BILLING MONTH $0 TOTAL CURRENT SC REMITTANCES $4,043,602
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CURRENT BILLING MONTH 4/3/2003 - 5/2/2003 COLLECTION CURVE 100% CALCULATED SC COLLECTED AMOUNT ------------------------------ RESIDENTIAL ----------- A-1 Residential SC Collected $1,215,800 A-3 Residential T.O.D. SC Collected $6,108 A-4 Alternate Residence SC Collected $31,573 A-5 Residential Farm/Life Support SC Collected $28,575 TOTAL RESIDENTIAL SC COLLECTED $1,282,056 COMMERCIAL ---------- B-1 General Primary (041) SC Collected $21,246 B- General Secondary (010) SC Collected $228,462 C- General Secondary (011) SC Collected $468,181 D- General Primary (018) SC Collected $296,872 F- Primary High Load Factor (032) SC Collected $46,063 GH- General Service Heating (013) SC Collected $7,036 H- Water Heating Service (014) SC Collected $562 L-1 General Energy-Only Street Lighting SC Collected $2,319 L-2 General Service (Cust Owned) St Light SC Collected $2,568 L-3 General Service (Co Owned) St Light SC Collected $13,215 L-4 General Service Outdoor Lighting Commercial SC Collected $1,729 PS-1 General Secondary Public Pumping SC Collected $6,703 PS-2 General Primary Public Pumping SC Collected $8,954 PS-3 General Optional Primary Public Pumping SC Collected $40,741 R-1 General Secondary Resale SC Collected $36 R-2 General Secondary Resale SC Collected $972 R-3 General Primary Resale SC Collected $29,756 ROA-P Retail Open Access Primary (110) SC Collected $73,185 ROA-S Retail Open Access Secondary Com SC Collected $11,397 SC - Special Contract Commercial SC Collected $1,904 SPEC Grand Rapids Special Contract SC Collected $2,838 UR- General Unmetered SC Collected $10,106 TOTAL COMMERCIAL SC COLLECTED $1,274,845 INDUSTRIAL ---------- B-1 General Primary (042) SC Collected $15,959 B- General Secondary (020) SC Collected $33,351 C- General Secondary (021) SC Collected $76,452 CG- Cogeneration/Small Power Production Purchase SC Collected $1,684 D- General Primary (028) SC Collected $570,851 F- Primary High Load Factor (033) SC Collected $77,561 GH- General Service Heating (023) SC Collected $57 GMD General Motors SC Collected $64,878 GMF General Motors SC Collected $126,971 GMF-1 General Motors SC Collected $14,619 GMJ-1 General Motors SC Collected $9,269
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CURRENT BILLING MONTH 4/3/2003 - 5/2/2003 COLLECTION CURVE 100% H- Water Heating Service (024) SC Collected $2 I- General Primary Interruptible (034) SC Collected $5,088 J-1 General Alternative Electric Metal Melting SC Collected $38,015 J- General Primary Electric Furnace (037) SC Collected $8,696 L-4 General Service Outdoor Lighting Industrial SC Collected $111 ROA-P Retail Open Access Primary (111) SC Collected $202,787 ROA-S Retail Open Access Secondary Ind SC Collected $1,472 SC - Special Contract Industrial SC Collected $238,878 TOTAL INDUSTRIAL SC COLLECTED $1,486,701 TOTAL SC COLLECTED $4,043,602
Executed as of this 20th day of May 2003. CONSUMERS ENERGY COMPANY AS SERVICER -------------------------------- Glenn Barba, Vice President, Controller and Chief Accounting Officer CC: Consumers Funding LLC One Energy Plaza Jackson, Mi 49201 Page 3 of 3 EX-10.(B) 4 k78825exv10wxby.txt MONTHLY SERVICER'S CERTIFICATE DATED JUNE 19, 2003 EXHIBIT 10(b) MONTHLY SERVICER'S CERTIFICATE CONSUMERS FUNDING LLC $468,592,000 SECURITIZATION BONDS, SERIES 2001-1 Pursuant to Section 3.05 of the Servicing Agreement dated as of November 8, 2001 (the "Consumers Servicing Agreement") between Consumers Energy Company, as Servicer and Consumers Funding LLC, as Issuer, the Servicer does hereby certify as follows: Capitalized terms used in the Monthly Servicer's Certificate (the "Monthly Certificate") have their respective meanings as set forth in the Servicing Agreement. References herein to certain sections and subsections are references to the respective sections of the Servicing Agreement. Current BILLING MONTH: May 2003
CURRENT BILLING MONTH 5/5/2003 - 6/3/2003 COLLECTION CURVE 100% STANDARD BILLING FOR PRIOR BILLING MONTH Residential Total Billed $119,154,903 Residential SECURITIZATION CHARGE (SC) Billed $1,226,672 1.029% Commercial Total Billed $76,576,776 Commercial SECURITIZATION CHARGE (SC) Billed $1,261,668 1.648% Industrial Total Billed $47,458,121 Industrial SECURITIZATION CHARGE (SC) Billed $1,328,364 2.799% YTD NET WRITE-OFFS AS A % OF BILLED REVENUE Non-Residential Customer Net Write-offs 0.170% Residential Customer Net Write-offs 0.410% Total Net Write-offs 0.270% AGGREGATE SC COLLECTIONS TOTAL SC REMITTED FOR BILLING MONTH Residential Class SC Collected $1,196,733 Commercial Class SC Collected $1,200,223 Industrial Class SC Collected $1,342,795 Total SC Collected $3,739,751 Aggregate SC Remittances for April 2003 BILLING MONTH $4,043,602 Aggregate SC Remittances for May 2003 BILLING MONTH $3,739,751 Aggregate SC Remittances for June 2003 BILLING MONTH $0 TOTAL CURRENT SC REMITTANCES $7,783,353
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CURRENT BILLING MONTH 5/5/2003 - 6/3/2003 COLLECTION CURVE 100% CALCULATED SC COLLECTED AMOUNT ------------------------------ RESIDENTIAL ----------- A-1 Residential SC Collected $1,138,144 A-3 Residential T.O.D. SC Collected $4,813 A-4 Alternate Residence SC Collected $27,339 A-5 Residential Farm/Life Support SC Collected $26,437 TOTAL RESIDENTIAL SC COLLECTED $1,196,733 COMMERCIAL B-1 General Primary (041) SC Collected $18,452 B- General Secondary (010) SC Collected $218,068 C- General Secondary (011) SC Collected $460,506 D- General Primary (18) SC Collected $260,318 F- Primary High Load Factor (032) SC Collected $40,267 GH- General Service Heating (013) SC Collected $5,255 H- Water Heating Service (014) SC Collected $606 L-1 General Energy-Only Street Lighting SC Collected $1,949 L-2 General Service (Cust Owned) St Light SC Collected $2,081 L-3 General Service (Co Owned) St Light SC Collected $10,732 L-4 General Service Outdoor Lighting Commercial SC Collected $1,508 PS-1 General Secondary Public Pumping SC Collected $6,748 PS-2 General Primary Public Pumping SC Collected $7,453 PS-3 General Optional Primary Public Pumping SC Collected $39,034 R-1 General Secondary Resale SC Collected $47 R-2 General Secondary Resale SC Collected $904 R-3 General Primary Resale SC Collected $28,750 ROA-P Retail Open Access Primary (110) SC Collected $72,904 ROA-S Retail Open Access Secondary Com SC Collected $11,092 SC - Special Contract Commercial SC Collected $1,929 SPEC Grand Rapids Special Contract SC Collected $2,544 UR- General Unmetered SC Collected $9,076 TOTAL COMMERCIAL SC COLLECTED $1,200,223 INDUSTRIAL B-1 General Primary (042) SC Collected $14,574 B- General Secondary (020) SC Collected $33,155 C- General Secondary (021) SC Collected $63,929 CG- Cogeneration/Small Power Production Purchase SC Collected $2,609 D- General Primary (028) SC Collected $545,085 F- Primary High Load Factor (033) SC Collected $57,300 GH- General Service Heating (023) SC Collected $56 GMD General Motors SC Collected $55,620 GMF General Motors SC Collected $125,437 GMF-1 General Motors SC Collected $14,717 GMJ-1 General Motors SC Collected $10,447
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CURRENT BILLING MONTH 5/5/2003 - 6/3/2003 COLLECTION CURVE 100% H- Water Heating Service (024) SC Collected $0 I- General Primary Interruptible (034) SC Collected $390 J-1 General Alternative Electric Metal Melting SC Collected $54,190 J- General Primary Electric Furnace (037) SC Collected $3,857 L-4 General Service Outdoor Lighting Industrial SC Collected $87 ROA-P Retail Open Access Primary (111) SC Collected $202,439 ROA-S Retail Open Access Secondary Ind SC Collected $1,231 SC - Special Contract Industrial SC Collected $157,672 TOTAL INDUSTRIAL SC COLLECTED $1,342,795 TOTAL SC COLLECTED $3,739,751
Executed as of this 19th day of June 2003. CONSUMERS ENERGY COMPANY AS SERVICER --------------------------------------- Glenn Barba, Vice President, Controller and Chief Accounting Officer CC: Consumers Funding LLC One Energy Plaza Jackson, Mi 49201 Page 3 of 3 EX-10.(C) 5 k78825exv10wxcy.txt MONTHLY SERVICER'S CERTIFICATE DATED JULY 18, 2003 EXHIBIT 10(c) MONTHLY SERVICER'S CERTIFICATE CONSUMERS FUNDING LLC $468,592,000 SECURITIZATION BONDS, SERIES 2001-1 Pursuant to Section 3.05 of the Servicing Agreement dated as of November 8, 2001 (the "Consumers Servicing Agreement") between Consumers Energy Company, as Servicer and Consumers Funding LLC, as Issuer, the Servicer does hereby certify as follows: Capitalized terms used in the Monthly Servicer's Certificate (the "Monthly Certificate") have their respective meanings as set forth in the Servicing Agreement. References herein to certain sections and subsections are references to the respective sections of the Servicing Agreement. Current BILLING MONTH: June 2003
CURRENT BILLING MONTH 6/4/2003 - 7/2/2003 COLLECTION CURVE 100% STANDARD BILLING FOR PRIOR BILLING MONTH Residential Total Billed $98,895,762 Residential SECURITIZATION CHARGE (SC) Billed $1,141,944 1.155% Commercial Total Billed $74,192,434 Commercial SECURITIZATION CHARGE (SC) Billed $1,250,007 1.685% Industrial Total Billed $47,585,824 Industrial SECURITIZATION CHARGE (SC) Billed $1,352,427 2.842% YTD NET WRITE-OFFS AS A % OF BILLED REVENUE ------------------------------------------- Non-Residential Customer Net Write-offs 0.180% Residential Customer Net Write-offs 0.420% Total Net Write-offs 0.280% AGGREGATE SC COLLECTIONS TOTAL SC REMITTED FOR BILLING MONTH Residential Class SC Collected $1,203,753 Commercial Class SC Collected $1,223,871 Industrial Class SC Collected $1,373,503 Total SC Collected $3,801,127 Aggregate SC Remittances for April 2003 BILLING MONTH $4,043,602 Aggregate SC Remittances for May 2003 BILLING MONTH $3,739,751 Aggregate SC Remittances for June 2003 BILLING MONTH $3,801,127 TOTAL CURRENT SC REMITTANCES $11,584,480
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CURRENT BILLING MONTH 6/4/2003 - 7/2/2003 COLLECTION CURVE 100% CALCULATED SC COLLECTED AMOUNT ------------------------------ RESIDENTIAL ----------- A-1 Residential SC Collected $1,146,180 A-3 Residential T.O.D. SC Collected $4,142 A-4 Alternate Residence SC Collected $27,766 A-5 Residential Farm/Life Support SC Collected $25,665 TOTAL RESIDENTIAL SC COLLECTED $1,203,753 COMMERCIAL ---------- B-1 General Primary (041) SC Collected $18,094 B- General Secondary (010) SC Collected $216,833 C- General Secondary (011) SC Collected $460,381 D- General Primary (018) SC Collected $281,926 F- Primary High Load Factor (032) SC Collected $41,976 GH- General Service Heating (013) SC Collected $3,839 H- Water Heating Service (014) SC Collected $611 L-1 General Energy-Only Street Lighting SC Collected $1,743 L-2 General Service (Cust Owned) St Light SC Collected $1,956 L-3 General Service (Co Owned) St Light SC Collected $9,886 L-4 General Service Outdoor Lighting Commercial SC Collected $1,377 PS-1 General Secondary Public Pumping SC Collected $6,865 PS-2 General Primary Public Pumping SC Collected $5,393 PS-3 General Optional Primary Public Pumping SC Collected $39,544 R-1 General Secondary Resale SC Collected $52 R-2 General Secondary Resale SC Collected $832 R-3 General Primary Resale SC Collected $30,537 ROA-P Retail Open Access Primary (110) SC Collected $75,619 ROA-S Retail Open Access Secondary Com SC Collected $10,838 SC - Special Contract Commercial SC Collected $1,888 SPEC Grand Rapids Special Contract SC Collected $2,587 UR- General Unmetered SC Collected $11,094 TOTAL COMMERCIAL SC COLLECTED $1,223,871 INDUSTRIAL ---------- B-1 General Primary (042) SC Collected $14,911 B- General Secondary (020) SC Collected $32,009 C- General Secondary (021) SC Collected $69,508 CG- Cogeneration/Small Power Production Purchase SC Collected $5,600 D- General Primary (028) SC Collected $514,251 F- Primary High Load Factor (033) SC Collected $83,114 GH- General Service Heating (023) SC Collected $31 GMD General Motors SC Collected $63,471 GMF General Motors SC Collected $126,669 GMF-1 General Motors SC Collected $13,990 GMJ-1 General Motors SC Collected $8,439
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CURRENT BILLING MONTH 6/4/2003 - 7/2/2003 COLLECTION CURVE 100% H- Water Heating Service (024) SC Collected $0 I- General Primary Interruptible (034) SC Collected $0 J-1 General Alternative Electric Metal Melting SC Collected $7,858 J- General Primary Electric Furnace (037) SC Collected $6,368 L-4 General Service Outdoor Lighting Industrial SC Collected $75 ROA-P Retail Open Access Primary (111) SC Collected $296,399 ROA-S Retail Open Access Secondary Ind SC Collected $1,732 SC - Special Contract Industrial SC Collected $129,078 TOTAL INDUSTRIAL SC COLLECTED $1,373,503 TOTAL SC COLLECTED $3,801,127
Executed as of this 18th day of July 2003. CONSUMERS ENERGY COMPANY AS SERVICER --------------------------------------- Glenn P. Barba, Vice President, Controller and Chief Accounting Officer CC: Consumers Funding LLC One Energy Plaza Jackson, Mi 49201 Page 3 of 3 EX-10.(D) 6 k78825exv10wxdy.txt QUARTERLY SERVICER'S CERTIFICATE DATED 7/18/2003 EXHIBIT 10(d) Quarterly Servicer's Certificate Consumers Funding LLC $468,592,000 Securitization Bonds, Series 2001-1 Pursuant to Section 3.05 of the Servicing Agreement dated as of November 8, 2001 (the "Consumers Servicing Agreement") between Consumers Energy Company, as Servicer and Consumers Funding LLC, as Issuer, the Servicer does hereby certify as follows: Capitalized terms used in the Quarterly Servicer's Certificate (the "Quarterly Certificate") have their respective meanings as set forth in the Agreement. References herein to certain sections and subsections are references to the respective sections of the Agreement. Billing Periods: April 2003, May 2003, June 2003 Payment Date: July 21, 2003
1. COLLECTIONS ALLOCABLE AND AGGREGATE AMOUNTS AVAILABLE FOR THE CURRENT PAYMENT DATE: i. Remittances for the April 2003 Collection Period $4,043,602.00 ii. Remittances for the May 2003 Collection Period $3,739,751.00 iii. Remittances for the June 2003 Collection Period $3,801,127.00 iv. Remittances for the Collection Period $0.00 v. Remittances for the Collection Period $0.00 vi. Remittances for the Collection Period $0.00 vii. Remittances for the Collection Period $0.00 viii. Net Earnings on Collection Account $16,269.83 ix. Net Earnings on Capital Subaccount $6,570.74 x. Net Earnings on Overcollateralization Subaccount $640.58 xi. Net Earnings on Reserve Subaccount $8,515.83 -------------- GENERAL SUBACCOUNT BALANCE $11,616,476.98 xii. Reserve Subaccount Balance $2,916,748.02 xiii. Overcollateralization Subaccount Balance $251,031.43 xiv. Capital Subaccount Balance (less $100K) $2,242,960.00 xv. Capital Reserve Subaccount Balance $100,000.00 -------------- xvi. COLLECTION ACCOUNT BALANCE $17,127,216.43 2. OUTSTANDING PRINCIPAL BALANCE AND COLLECTION ACCOUNT BALANCE AS OF PRIOR PAYMENT DATE: i. Class A-1 Principal Balance $0.00 ii. Class A-2 Principal Balance $80,995,212.15 iii. Class A-3 Principal Balance $31,000,000.00 iv. Class A-4 Principal Balance $95,000,000.00 v. Class A-5 Principal Balance $117,000,000.00 vi. Class A-6 Principal Balance $115,592,000.00 --------------- VII. SECURITIZATION BOND PRINCIPAL BALANCE $439,587,212.15 viii. Reserve Subaccount Balance $2,916,748.02 ix. Overcollateralization Subaccount Balance $251,031.43 x. Capital Subaccount Balance $2,242,960.00 xi. Capital Reserve Subaccount Balance $100,000.00 3. REQUIRED FUNDING/PAYMENTS AS OF CURRENT PAYMENT DATE: i. Projected Class A-1 Bond Balance $0.00 ii. Projected Class A-2 Bond Balance $74,960,820.10 iii. Projected Class A-3 Bond Balance $31,000,000.00 iv. Projected Class A-4 Bond Balance $95,000,000.00 v. Projected Class A-5 Bond Balance $117,000,000.00 vi. Projected Class A-6 Bond Balance $115,592,000.00 --------------- VII. PROJECTED SECURITIZATION BOND BALANCE $433,552,820.10 viii. Required Class A-1 Coupon (2.59% per annum rate) $0.00 ix. Required Class A-2 Coupon (3.80% per annum rate) $769,454.52
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x. Required Class A-3 Coupon (4.55% per annum rate) $352,625.00 xi. Required Class A-4 Coupon (4.92% per annum rate) $1,182,750.00 xii. Required Class A-5 Coupon (5.43% per annum rate) $1,588,275.00 xiii. Required Class A-6 Coupon (5.76% per annum rate) $1,664,524.80 xiv. Required Overcollateralization Funding $41,838.57 xv. Required Capital Subaccount Funding $0.00 4. ALLOCATION OF REMITTANCES AS OF CURRENT PAYMENT DATE PURSUANT TO 8.02 OF THE INDENTURE: i. Bond Trustee Fees and Expenses $0.00 ii. Servicing Fee $274,741.00 iii. Cumulative Monthly Administration Fee during Relevant Quarter $20,000.00 iv. Independent Managers Fee $1,750.00 v. Operating Expenses (subject to cap of $100,000/quarter) $16,640.00 VI. QUARTERLY INTEREST $5,557,629.32 1. Class A-1 Bond Coupon Payment $0.00 2. Class A-2 Bond Coupon Payment $769,454.52 3. Class A-3 Bond Coupon Payment $352,625.00 4. Class A-4 Bond Coupon Payment $1,182,750.00 5. Class A-5 Bond Coupon Payment $1,588,275.00 6. Class A-6 Bond Coupon Payment $1,664,524.80 vii. Principal Due and Payable as a Result of Event of Default or on Final Maturity Date $0.00 VIII. QUARTERLY PRINCIPAL $6,034,392.05 1. Class A-1 Bond Principal Payment $0.00 2. Class A-2 Bond Principal Payment $6,034,392.05 3. Class A-3 Bond Principal Payment $0.00 4. Class A-4 Bond Principal Payment $0.00 5. Class A-5 Bond Principal Payment $0.00 6. Class A-6 Bond Principal Payment $0.00 ix. Operating Expenses (in excess of $100,000) $0.00 x. Funding of Capital Subaccount (to required level) $0.00 xi. Funding of Overcollateralization Subaccount (to required level) $41,838.57 xii. Net Earnings on Capital Subaccount Released to Issuer $6,570.74 xiii. Deposits to Reserve Subaccount $0.00 xiv. Released to Issuer upon Series Retirement: Collection Account $0.00 5. OUTSTANDING PRINCIPAL BALANCE AND COLLECTION ACCOUNT BALANCE AS OF CURRENT PAYMENT DATE: (AFTER GIVING EFFECT TO PAYMENTS TO BE MADE ON SUCH PAYMENT DATE): i. Class A-1 Principal Balance $0.00 ii. Class A-2 Principal Balance $74,960,820.10 iii. Class A-3 Principal Balance $31,000,000.00 iv. Class A-4 Principal Balance $95,000,000.00 v. Class A-5 Principal Balance $117,000,000.00 vi. Class A-6 Principal Balance $115,592,000.00 VII. SECURITIZATION BOND PRINCIPAL BALANCE $433,552,820.10 viii. Reserve Subaccount Balance $2,579,663.33 ix. Overcollateralization Subaccount Balance $292,870.00 x. Capital Subaccount Balance $2,242,960.00 xi. Capital Reserve Subaccount Balance $100,000.00
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6. SUBACCOUNT DRAWS AS OF CURRENT PAYMENT DATE (IF APPLICABLE, PURSUANT TO SECTION 8.02 OF THE INDENTURE): i. Reserve Subaccount $337,084.69 ii. Overcollateralization Subaccount $0.00 iii. Capital Subaccount $0.00 iv. Capital Reserve Subaccount $0.00 ----------- V. TOTAL DRAWS $337,084.69 7. SHORTFALLS IN INTEREST AND PRINCIPAL PAYMENTS AS OF CURRENT PAYMENT DATE: I. QUARTERLY INTEREST $0.00 1. Class A-1 Bond Coupon Payment $0.00 2. Class A-2 Bond Coupon Payment $0.00 3. Class A-3 Bond Coupon Payment $0.00 4. Class A-4 Bond Coupon Payment $0.00 5. Class A-5 Bond Coupon Payment $0.00 6. Class A-6 Bond Coupon Payment $0.00 II. QUARTERLY PRINCIPAL $0.00 1. Class A-1 Bond Principal Payment $0.00 2. Class A-2 Bond Principal Payment $0.00 3. Class A-3 Bond Principal Payment $0.00 4. Class A-4 Bond Principal Payment $0.00 5. Class A-5 Bond Principal Payment $0.00 6. Class A-6 Bond Principal Payment $0.00 8. SHORTFALLS IN REQUIRED SUBACCOUNT LEVELS AS OF CURRENT PAYMENT DATE: i. Overcollateralization Subaccount $0.00 ii. Capital Subaccount $0.00
IN WITNESS HEREOF, the undersigned has duly executed and delivered this Quarterly Servicer's Certificate this 18th day of July, 2003. Consumers Energy Company, as Servicer by: _______________________ Glenn P. Barba Vice President, Controller and Chief Accounting Officer Page 3 of 3 EX-31 7 k78825exv31.txt CERTIFICATION PURSUANT TO SECTION 302 Exhibit 31 CERTIFICATION OF LAURA L. MOUNTCASTLE I, Laura L. Mountcastle, certify that: 5. I have reviewed this quarterly report on Form 10-Q of Consumers Funding LLC; 6. To the best of my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 7. To the best of my knowledge, the financial statements included in this quarterly report provide the financial information required to be provided to the trustee under the governing documents of Consumers Funding LLC; and 8. Consumers Energy, as Servicer under the Securitization bonds, has complied with its servicing obligations and minimum servicing standards. Date: August 14, 2003 By /s/ Laura L. Mountcastle --------------------------- Laura L. Mountcastle President, Chief Executive Officer, Chief Financial Officer and Treasurer 16 EX-32 8 k78825exv32.txt CERTIFICATION PURSUANT TO SECTION 906 Exhibit 32 CERTIFICATION OF CEO AND CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report on Form 10-Q of Consumers Funding LLC (the "Company") for the quarterly period ended June 30, 2003 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Laura L. Mountcastle, as President, Chief Executive Officer, Chief Financial Officer and Treasurer, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of her knowledge: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. /s/ Laura L. Mountcastle - ----------------------------- Name: Laura L. Mountcastle Title: President, Chief Executive Officer, Chief Financial Officer and Treasurer Date: August 14, 2003 This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. 17 -----END PRIVACY-ENHANCED MESSAGE-----