-----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, F6A2/YDlbp6lI8x/2Egb/h4dw5skj1arWyi40lrjcjHEWcG1YO+uJ9UeQHRa/CXd 1L26INkTk6+szC3IIwslRQ== 0000950124-03-003570.txt : 20031112 0000950124-03-003570.hdr.sgml : 20031111 20031112095300 ACCESSION NUMBER: 0000950124-03-003570 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20030930 FILED AS OF DATE: 20031112 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: 03991136 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 k80596e10vq.txt QUARTERLY REPORT FOR PERIOD END SEPTEMBER 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 September 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 SEPTEMBER 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 operations 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 purposes 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). The securitization property, which is classified as a securitization receivable, along with earnings on cash deposited with the trustee, resulted in Consumers Funding recording $5.4 million and $5.7 million of interest income for the three months ended September 30, 2003 and 2002, respectively. Interest income for the nine months ended September 30, 2003 and 2002 totaled $16.6 million and $17.2 million, respectively. Interest expense associated with the securitization bonds totaled $5.4 million and $5.7 million for the three months ended September 30, 2003 and 2002, respectively. Interest expense for the nine months ended September 30, 2003 and 2002 totaled $16.6 million and $17.2 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. 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 revenue collections and updated assumptions by Consumers as to projected future deliveries of electricity to customers. 3 A request for annual adjustment was submitted on October 15, 2002 and approved by the MPSC 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. On October 15, 2003, Consumers submitted a request to the MPSC for its annual adjustment. If approved, the adjustment will revise the Securitization Charge to $.001299, effective December 1, 2003. For the three months ended September 30, 2003, operating revenues totaled $5.7 million, a decrease of approximately $300,000 compared to 2002. Included in the $5.7 million is $5.4 million of interest income and approximately $300,000 of other operating revenue. The decrease in total operating revenues for the three-month period primarily reflects lower interest income associated with the reduction in the securitization receivable from Consumers Energy. For the nine months ended September 30, 2003, operating revenues totaled $17.5 million, a decrease of approximately $800,000 compared to 2002. Included in the $17.5 million is $16.6 million of interest income and approximately $900,000 of other operating revenue. The decrease in total operating revenues for the nine-month period primarily reflects lower interest income associated with the reduction in the securitization receivable from Consumers Energy. For the three months ended September 30, 2003, Consumers Funding incurred $5.7 million of operating expenses, a decrease of approximately $300,000 compared to 2002. Included in the $5.7 million is $5.4 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 nine months ended September 30, 2003, Consumers Funding incurred $17.5 million of operating expenses, a decrease of approximately $800,000 compared to 2002. Included in the $17.5 million is $16.6 million of interest expense and approximately $900,000 of servicing, administration and other expenses. The decrease in operating expenses for the nine-month period is primarily the result of reduced debt levels. 4 CONSUMERS FUNDING LLC STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 2003 2002 2003 2002 - -------------------------------------------------------------------------------------- In Thousands OPERATING REVENUES Interest Income - Consumers Energy $ 5,427 $ 5,678 $16,593 $17,072 Interest Income - 40 - 177 Other Operating Revenue - Consumers Energy 291 308 885 1,055 Other Operating Revenue 7 2 42 8 ------------------------------------- Total Operating Revenues 5,725 6,028 17,520 18,312 ------------------------------------- OPERATING EXPENSES Interest Expense 5,427 5,711 16,593 17,220 Service Fee - Consumers Energy 271 288 825 991 Administration Fee - Consumers Energy 20 20 60 64 Other 7 2 42 19 ------------------------------------- Total Operating Expenses 5,725 6,021 17,520 18,294 ------------------------------------- NET INCOME $ - $ 7 $ - $ 18 =====================================
The accompanying notes are an integral part of these statements. 5 CONSUMERS FUNDING LLC BALANCE SHEETS
SEPT. 30 DEC. 31 SEPT. 30 2003 2002 2002 (UNAUDITED) (UNAUDITED) - ---------------------------------------------------------------------------------------------------------------- In Thousands ASSETS CURRENT ASSETS Restricted Cash $ 17,837 $ 17,411 $ 17,422 Securitization Receivable - Consumers Energy 26,437 26,402 26,231 ------------------------------------------ Total Current Assets 44,274 43,813 43,653 NON-CURRENT ASSETS Securitization Receivable - Consumers Energy 396,170 416,245 423,761 ------------------------------------------ Total Non-current Assets 396,170 416,245 423,761 ------------------------------------------ TOTAL ASSETS $ 440,444 $ 460,058 $ 467,414 ========================================= LIABILITIES AND MEMBER'S EQUITY CURRENT LIABILITIES Securitization Bonds Payable $ 27,590 $ 26,905 $ 26,694 Accounts Payable - Consumers Energy 286 314 308 Accounts Payable - Other 33 2 2 Interest Payable 4,229 4,457 4,496 ------------------------------------------ Total Current Liabilities 32,138 31,678 31,500 ------------------------------------------ NON-CURRENT LIABILITIES Securitization Bonds Payable 405,963 426,037 433,553 ------------------------------------------ Total Non-current Liabilities 405,963 426,037 433,553 ------------------------------------------ MEMBER'S EQUITY Total Member's Equity 2,343 2,343 2,361 ------------------------------------------ TOTAL LIABILITIES AND MEMBER'S EQUITY $ 440,444 $ 460,058 $ 467,414 ==========================================
The accompanying notes are an integral part of these statements. 6 CONSUMERS FUNDING LLC STATEMENTS OF CASH FLOWS (UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30 2003 2002 - ---------------------------------------------------------------------------- In Thousands CASH FLOWS FROM OPERATING ACTIVITIES Net income $ - $ 18 Changes in Current Assets and Liabilities: Interest Receivable - Consumers Energy - 2,257 Interest Payable (228) 1,107 Accounts Payable - Consumers Energy (28) 179 Accounts Payable - Other 31 2 -------------------- NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES (225) 3,563 -------------------- CASH FLOWS FROM INVESTING ACTIVITIES Reduction of Securitization Receivable 20,040 18,600 -------------------- NET CASH PROVIDED BY INVESTING ACTIVITIES 20,040 18,600 -------------------- CASH FLOWS FROM FINANCING ACTIVITIES Securitization Bonds Payable (19,389) (8,345) -------------------- NET CASH USED IN FINANCING ACTIVITIES (19,389) (8,345) -------------------- NET INCREASE IN CASH AND CASH EQUIVALENTS 426 13,818 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 17,411 3,604 -------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 17,837 $ 17,422 ====================
7 The accompanying notes are an integral part of these statements. CONSUMERS FUNDING LLC STATEMENTS OF MEMBER'S EQUITY (UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 2003 2002 2003 2002 - --------------------------------------------------------------------------------------------------- In Thousands BALANCE AT BEGINNING OF PERIOD $ 2,343 $ 2,354 $ 2,343 $ 2,343 Add: Net Income - 7 - 18 ------------------------------------------- BALANCE AT END OF PERIOD $ 2,343 $ 2,361 $ 2,343 $ 2,361 ===========================================
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 purposes 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 9 Consumers Funding's behalf. Consumers receives a monthly servicing fee of one twelfth times 0.25 percent 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. 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 September 30, 2003 and September 30, 2002, the General Subaccount totaled $12.6 million and $14.6 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 September 30, 2003, and September 30, 2002, the Reserve Subaccount totaled approximately $2.6 million and approximately $463,000, respectively. 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 September 30, 2003 and September 30, 2002, the Overcollateralization Subaccount totaled approximately $296,000 and $126,000, respectively. 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 10 principal and interest to the securitization bondholders and to pay the expenses, fees and charges of Consumers Funding, the trustee will draw on amounts in the Capital Subaccount to make those payments. At September 30, 2003 and September 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 of September 30, 2003, Consumers Funding has retired all of the class A-1 securitization bonds and $9.1 million of the class A-2 securitization bonds in accordance with the bond amortization schedule. Scheduled maturities and interest rates for the remaining securitization bonds at September 30, 2003 are as follows:
Expected Principal Final Final Bond Balance Payment Maturity Class Rate (in thousands) Date Date ------------------------------------------------------------------ A-2 3.80% $ 74,961 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 $ 433,553 Current Maturities (27,590) ----------- Long-Term Debt $ 405,963 ===========
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 during the fourth quarter of 2003, the next five calendar years, and thereafter (in thousands).
Principal Year Retirement - ---------------- --------- 4th Quarter 2003 $ 7,516 2004 27,786 2005 28,646 2006 29,591 2007 30,763 2008 32,130 Thereafter 277,121 ---------- Total Debt $ 433,553
As scheduled, on October 20, 2003, $7.5 million of securitization bonds were retired. 11 4. FAIR VALUE OF FINANCIAL INSTRUMENTS Restricted cash is on deposit with the trustee and, by definition, is carried at its fair value. At September 30, 2003, and 2002, Consumers Funding had a financial asset (representing its securitization receivable from Consumers) of approximately $423 million and $450 million, respectively, and financial liabilities (representing the securitization bonds) with a cost basis of approximately $434 million and $460 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. 5. SIGNIFICANT AGREEMENTS AND RELATED PARTY TRANSACTIONS Consumers Funding has a securitization receivable with Consumers in the amount of approximately $423 million and $450 million, as of September 30, 2003 and September 30, 2002, respectively. Accordingly, Consumers Funding recognized interest income totaling $5.4 million and $5.7 million for the three months ended September 30, 2003 and 2002, respectively. In addition, Consumers Funding recognized other operating revenue from Consumers totaling approximately $300,000 for the three months ended September 30, 2003, and approximately $300,000 for the comparable period in 2002. For the nine months ended September 30, 2003 and 2002, Consumers Funding recognized interest income from Consumers totaling $16.6 million and $17.1 million, respectively. In addition, Consumers Funding recognized other operating revenue from Consumers totaling approximately $900,000 for the nine months ended September 30, 2003 and approximately $1.1 million for the comparable period in 2002. 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 September 30, 2003 and 2002, Consumers Funding has recorded total expenses and an associated payable to Consumers related to these fees of approximately $300,000. For the nine months ended September 30, 2003, Consumers Funding has recorded total expenses associated with these fees of approximately $900,000 and approximately $1.1 million for the comparable 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: November 12, 2003 --------------------------------------- Laura L. Mountcastle President, Chief Executive Officer, Chief Financial Officer and Treasurer By: /s/Glenn P. Barba Date: November 12, 2003 --------------------------------------- Glenn P. Barba Chief Accounting Officer and Controller 14 INDEX TO EXHIBITS EXHIBIT NO. DESCRIPTION - ------- --------------------------------------------------------------------- 10(a) Monthly Servicer's Certificate dated August 20, 2003 10(b) Monthly Servicer's Certificate dated September 19, 2003 10(c) Monthly Servicer's Certificate dated October 20, 2003 10(d) Quarterly Servicer's Certificate dated October 20, 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 k80596exv10wxay.txt MONTHLY SERVICER'S CERTIFICATE AUGUST 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: July 2003
CURRENT BILLING MONTH 7/3/2003 - 8/1/2003 COLLECTION CURVE 100% STANDARD BILLING FOR PRIOR BILLING MONTH Residential Total Billed $94,642,672 Residential SECURITIZATION CHARGE (SC) Billed $ 1,168,583 1.235% Commercial Total Billed $73,889,117 Commercial SECURITIZATION CHARGE (SC) Billed $ 1,286,441 1.741% Industrial Total Billed $47,243,275 Industrial SECURITIZATION CHARGE (SC) Billed $ 1,363,629 2.886% YTD NET WRITE-OFFS AS A % OF BILLED REVENUE Non-Residential Customer Net Write-offs 0.170% Residential Customer Net Write-offs 0.400% Total Net Write-offs 0.270% AGGREGATE SC COLLECTIONS TOTAL SC REMITTED FOR BILLING MONTH Residential Class SC Collected $ 1,311,688 Commercial Class SC Collected $ 1,364,164 Industrial Class SC Collected $ 1,395,320 Total SC Collected $ 4,071,172 Aggregate SC Remittances for July 2003 BILLING MONTH $ 4,071,172 Aggregate SC Remittances for August 2003 BILLING MONTH $ 0 Aggregate SC Remittances for September 2003 BILLING MONTH $ 0 TOTAL CURRENT SC REMITTANCES $ 4,071,172
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CURRENT BILLING MONTH 7/3/2003 - 8/1/2003 COLLECTION CURVE 100% CALCULATED SC COLLECTED AMOUNT RESIDENTIAL A-1 Residential SC Collected $1,247,573 A-3 Residential T.O.D. SC Collected $ 4,153 A-4 Alternate Residence SC Collected $ 32,744 A-5 Residential Farm/Life Support SC Collected $ 27,218 TOTAL RESIDENTIAL SC COLLECTED $1,311,688 COMMERCIAL B-1 General Primary (041) SC Collected $ 20,928 B-General Secondary (010) SC Collected $ 240,884 C- General Secondary (011) SC Collected $ 487,482 D-General Primary (018) SC Collected $ 332,587 F-Primary High Load Factor (032) SC Collected $ 49,998 GH-General Service Heating (013) SC Collected $ 3,396 H- Water Heating Service (014) SC Collected $ 653 L-1 General Energy-Only Street Lighting SC Collected $ 1,523 L-2 General Service (Cust Owned) St Light SC Collected $ 1,575 L-3 General Service (Co Owned) St Light SC Collected $ 7,688 L-4 General Service Outdoor Lighting Commercial SC Collected $ 1,012 PS-1 General Secondary Public Pumping SC Collected $ 6,523 PS-2 General Primary Public Pumping SC Collected $ 12,377 PS-3 General Optional Primary Public Pumping SC Collected $ 46,688 R-1 General Secondary Resale SC Collected $ 136 R-2 General Secondary Resale SC Collected $ 945 R-3 General Primary Resale SC Collected $ 31,943 ROA-P Retail Open Access Primary (110) SC Collected $ 92,322 ROA-S Retail Open Access Secondary Com SC Collected $ 9,251 SC - Special Contract Commercial SC Collected $ 2,276 SPEC Grand Rapids Special Contract SC Collected $ 2,333 UR-General Unmetered SC Collected $ 11,644 TOTAL COMMERCIAL SC COLLECTED $1,364,164 INDUSTRIAL B-1 General Primary (042) SC Collected $ 17,139 B-General Secondary (020) SC Collected $ 33,522 C- General Secondary (021) SC Collected $ 74,038 CG-Cogeneration/Small Power Production Purchase SC Collected $ 1,274 D-General Primary (028) SC Collected $ 577,524 F-Primary High Load Factor (033) SC Collected $ 78,809 GH-General Service Heating (023) SC Collected $ 31 GMD General Motors SC Collected $ 73,671 GMF General Motors SC Collected $ 124,882 GMF-1 General Motors SC Collected $ 13,058 GMJ-1 General Motors SC Collected $ 9,378
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CURRENT BILLING MONTH 7/3/2003 - 8/1/2003 COLLECTION CURVE 100% H- Water Heating Service (024) SC Collected $ 0 I-General Primary Interruptible (034) SC Collected $ 0 J-1General Alternative Electric Metal Melting SC Collected $ 31,491 J-General Primary Electric Furnace (037) SC Collected $ 5,780 L-4 General Service Outdoor Lighting Industrial SC Collected $ 61 ROA-P Retail Open Access Primary (111) SC Collected $ 221,049 ROA-S Retail Open Access Secondary Ind SC Collected $ 1,455 SC - Special Contract Industrial SC Collected $ 132,158 TOTAL INDUSTRIAL SC COLLECTED $1,395,320 TOTAL SC COLLECTED $4,071,172
Executed as of this 20th day of August 2003. CONSUMERS ENERGY COMPANY AS SERVICER /s/ Laura L. Mountcastle ------------------------------------- Laura L. Mountcastle, Vice President CC: Consumers Funding LLC One Energy Plaza Jackson, Mi 49201 Page 3 of 3 EX-10.(B) 4 k80596exv10wxby.txt MONTHLY SERVICER'S CERTIFICATE SEPTEMBER 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: August 2003
CURRENT BILLING MONTH 8/4/2003 - 9/2/2003 COLLECTION CURVE 100% STANDARD BILLING FOR PRIOR BILLING MONTH Residential Total Billed $111,106,385 Residential SECURITIZATION CHARGE (SC) Billed $ 1,487,887 1.339% Commercial Total Billed $ 84,577,190 Commercial SECURITIZATION CHARGE (SC) Billed $ 1,489,049 1.761% Industrial Total Billed $ 47,832,756 Industrial SECURITIZATION CHARGE (SC) Billed $ 1,366,600 2.857% YTD NET WRITE-OFFS AS A % OF BILLED REVENUE Non-Residential Customer Net Write-offs 0.160% Residential Customer Net Write-offs 0.410% Total Net Write-offs 0.260% AGGREGATE SC COLLECTIONS TOTAL SC REMITTED FOR BILLING MONTH Residential Class SC Collected $ 1,533,953 Commercial Class SC Collected $ 1,442,311 Industrial Class SC Collected $ 1,340,044 Total SC Collected $ 4,316,308 Aggregate SC Remittances for July 2003 BILLING MONTH $ 4,071,172 Aggregate SC Remittances for August 2003 BILLING MONTH $ 4,316,308 Aggregate SC Remittances for September 2003 BILLING MONTH $ 0 TOTAL CURRENT SC REMITTANCES $ 8,387,480
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CURRENT BILLING MONTH 8/4/2003 - 9/2/2003 COLLECTION CURVE 100% CALCULATED SC COLLECTED AMOUNT RESIDENTIAL A-1 Residential SC Collected $1,458,755 A-3 Residential T.O.D. SC Collected $ 4,089 A-4 Alternate Residence SC Collected $ 41,917 A-5 Residential Farm/Life Support SC Collected $ 29,192 TOTAL RESIDENTIAL SC COLLECTED $1,533,953 COMMERCIAL B-1 General Primary (041) SC Collected $ 22,569 B-General Secondary (010) SC Collected $ 286,516 C- General Secondary (011) SC Collected $ 534,135 D-General Primary (018) SC Collected $ 317,866 F-Primary High Load Factor (032) SC Collected $ 47,017 GH-General Service Heating (013) SC Collected $ 4,064 H- Water Heating Service (014) SC Collected $ 717 L-1 General Energy-Only Street Lighting SC Collected $ 1,619 L-2 General Service (Cust Owned) St Light SC Collected $ 1,744 L-3 General Service (Co Owned) St Light SC Collected $ 8,962 L-4 General Service Outdoor Lighting Commercial SC Collected $ 1,219 PS-1 General Secondary Public Pumping SC Collected $ 7,381 PS-2 General Primary Public Pumping SC Collected $ 11,181 PS-3 General Optional Primary Public Pumping SC Collected $ 44,087 R-1 General Secondary Resale SC Collected $ 120 R-2 General Secondary Resale SC Collected $ 805 R-3 General Primary Resale SC Collected $ 32,611 ROA-P Retail Open Access Primary (110) SC Collected $ 95,707 ROA-S Retail Open Access Secondary Com SC Collected $ 9,822 SC - Special Contract Commercial SC Collected $ 2,294 SPEC Grand Rapids Special Contract SC Collected $ 2,701 UR-General Unmetered SC Collected $ 9,174 TOTAL COMMERCIAL SC COLLECTED $1,442,311 INDUSTRIAL B-1 General Primary (042) SC Collected $ 19,248 B-General Secondary (020) SC Collected $ 35,003 C- General Secondary (021) SC Collected $ 75,154 CG-Cogeneration/Small Power Production Purchase SC Collected $ 4,572 D-General Primary (028) SC Collected $ 525,446 F-Primary High Load Factor (033) SC Collected $ 80,469 GH-General Service Heating (023) SC Collected $ 24 GMD General Motors SC Collected $ 55,701 GMF General Motors SC Collected $ 109,057 GMF-1 General Motors SC Collected $ 10,091 GMJ-1 General Motors SC Collected $ 6,380
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CURRENT BILLING MONTH 8/4/2003 - 9/2/2003 COLLECTION CURVE 100% H- Water Heating Service (024) SC Collected $ 0 I-General Primary Interruptible (034) SC Collected $ 0 J-1General Alternative Electric Metal Melting SC Collected $ 30,644 J-General Primary Electric Furnace (037) SC Collected $ 5,290 L-4 General Service Outdoor Lighting Industrial SC Collected $ 72 ROA-P Retail Open Access Primary (111) SC Collected $ 249,541 ROA-S Retail Open Access Secondary Ind SC Collected $ 1,415 SC - Special Contract Industrial SC Collected $ 131,937 TOTAL INDUSTRIAL SC COLLECTED $1,340,044 TOTAL SC COLLECTED $4,316,308
Executed as of this 19th day of September 2003. CONSUMERS ENERGY COMPANY AS SERVICER /s/ Glenn P. Barba ------------------------------------------ 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.(C) 5 k80596exv10wxcy.txt MONTHLY SERVICER'S CERTIFICATE OCTOBER 20, 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: September 2003
CURRENT BILLING MONTH 9/3/2003 - 10/1/2003 COLLECTION CURVE 100% STANDARD BILLING FOR PRIOR BILLING MONTH Residential Total Billed $113,229,557 Residential SECURITIZATION CHARGE (SC) Billed $ 1,516,528 1.339% Commercial Total Billed $ 79,955,161 Commercial SECURITIZATION CHARGE (SC) Billed $ 1,439,206 1.800% Industrial Total Billed $ 48,182,251 Industrial SECURITIZATION CHARGE (SC) Billed $ 1,348,634 2.799% YTD NET WRITE-OFFS AS A % OF BILLED REVENUE Non-Residential Customer Net Write-offs 0.160% Residential Customer Net Write-offs 0.410% Total Net Write-offs 0.260% AGGREGATE SC COLLECTIONS TOTAL SC REMITTED FOR BILLING MONTH Residential Class SC Collected $ 1,642,418 Commercial Class SC Collected $ 1,499,040 Industrial Class SC Collected $ 1,343,858 Total SC Collected $ 4,485,316 Aggregate SC Remittances for July 2003 BILLING MONTH $ 4,071,172 Aggregate SC Remittances for August 2003 BILLING MONTH $ 4,316,308 Aggregate SC Remittances for September 2003 BILLING MONTH $ 4,485,316 TOTAL CURRENT SC REMITTANCES $ 12,872,796
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CURRENT BILLING MONTH 9/3/2003 - 10/1/2003 COLLECTION CURVE 100% CALCULATED SC COLLECTED AMOUNT RESIDENTIAL A-1 Residential SC Collected $ 1,561,351 A-3 Residential T.O.D. SC Collected $ 4,528 A-4 Alternate Residence SC Collected $ 45,213 A-5 Residential Farm/Life Support SC Collected $ 31,326 TOTAL RESIDENTIAL SC COLLECTED $ 1,642,418 COMMERCIAL B-1 General Primary (041) SC Collected $ 25,224 B-General Secondary (010) SC Collected $ 298,514 C-General Secondary (011) SC Collected $ 550,041 D-General Primary (018) SC Collected $ 322,280 F-Primary High Load Factor (032) SC Collected $ 49,920 GH-General Service Heating (013) SC Collected $ 4,368 H- Water Heating Service (014) SC Collected $ 744 L-1 General Energy-Only Street Lighting SC Collected $ 1,764 L-2 General Service (Cust Owned) St Light SC Collected $ 2,070 L-3 General Service (Co Owned) St Light SC Collected $ 10,742 L-4 General Service Outdoor Lighting Commercial SC Collected $ 1,450 PS-1 General Secondary Public Pumping SC Collected $ 7,259 PS-2 General Primary Public Pumping SC Collected $ 10,400 PS-3 General Optional Primary Public Pumping SC Collected $ 47,663 R-1 General Secondary Resale SC Collected $ 68 R-2 General Secondary Resale SC Collected $ 1,308 R-3 General Primary Resale SC Collected $ 31,345 ROA-P Retail Open Access Primary (110) SC Collected $ 106,388 ROA-S Retail Open Access Secondary Com SC Collected $ 11,712 SC - Special Contract Commercial SC Collected $ 2,385 SPEC Grand Rapids Special Contract SC Collected $ 2,555 UR-General Unmetered SC Collected $ 10,840 TOTAL COMMERCIAL SC COLLECTED $ 1,499,040 INDUSTRIAL B-1 General Primary (042) SC Collected $ 16,223 B-General Secondary (020) SC Collected $ 38,331 C- General Secondary (021) SC Collected $ 77,761 CG-Cogeneration/Small Power Production Purchase SC Collected $ 5,792 D-General Primary (028) SC Collected $ 540,115 F-Primary High Load Factor (033) SC Collected $ 83,873 GH-General Service Heating (023) SC Collected $ 31 GMD General Motors SC Collected $ 40,804 GMF General Motors SC Collected $ 105,829 GMF-1 General Motors SC Collected $ 12,024 GMJ-1 General Motors SC Collected $ 6,628
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CURRENT BILLING MONTH 9/3/2003 - 10/1/2003 COLLECTION CURVE 100% H- Water Heating Service (024) SC Collected $ 0 I-General Primary Interruptible (034) SC Collected $ 0 J-1General Alternative Electric Metal Melting SC Collected $ 27,026 J-General Primary Electric Furnace (037) SC Collected $ 4,261 L-4 General Service Outdoor Lighting Industrial SC Collected $ 83 ROA-P Retail Open Access Primary (111) SC Collected $ 255,264 ROA-S Retail Open Access Secondary Ind SC Collected $ 2,422 SC - Special Contract Industrial SC Collected $ 127,391 TOTAL INDUSTRIAL SC COLLECTED $ 1,343,858 TOTAL SC COLLECTED $ 4,485,316
Executed as of this 20th day of October 2003. CONSUMERS ENERGY COMPANY AS SERVICER /s/ Glenn P. Barba ------------------------ 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 k80596exv10wxdy.txt QUARTERLY SERVICER'S CERTIFICATE OCTOBER 20, 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: July 2003, August 2003, September 2003 Payment Date: October 20, 2003 1. COLLECTIONS ALLOCABLE AND AGGREGATE AMOUNTS AVAILABLE FOR THE CURRENT PAYMENT DATE: i. Remittances for the July 2003 Collection Period $ 4,071,172.00 ii. Remittances for the August 2003 Collection Period $ 4,316,308.00 iii. Remittances for the September 2003 Collection Period $ 4,485,316.00 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 $ 28,240.19 ix. Net Earnings on Capital Subaccount $ 5,907.55 x. Net Earnings on Overcollateralization Subaccount $ 676.09 xi. Net Earnings on Reserve Subaccount $ 7,022.89 --------------- GENERAL SUBACCOUNT BALANCE $ 12,914,642.72 xii. Reserve Subaccount Balance $ 2,579,663.33 xiii. Overcollateralization Subaccount Balance $ 292,870.00 xiv. Capital Subaccount Balance (less $100K) $ 2,242,960.00 xv. Capital Reserve Subaccount Balance $ 100,000.00 --------------- xvi. COLLECTION ACCOUNT BALANCE $ 18,130,136.05 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 $ 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 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 $ 67,445,198.06 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 $426,037,198.06 viii. Required Class A-1 Coupon (2.59% per annum rate) $ 0.00 ix. Required Class A-2 Coupon (3.80% per annum rate) $ 712,127.79
Page 1 of 3 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 $ 270,969.50 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) $ 5,358.67 vi. QUARTERLY INTEREST $ 5,500,302.59 1. Class A-1 Bond Coupon Payment $ 0.00 2. Class A-2 Bond Coupon Payment $ 712,127.79 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 $ 7,515,622.04 1. Class A-1 Bond Principal Payment $ 0.00 2. Class A-2 Bond Principal Payment $ 7,515,622.04 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 $ 5,907.55 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 $ 67,445,198.06 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 $426,037,198.06 viii. Reserve Subaccount Balance $ 2,132,557.13 ix. Overcollateralization Subaccount Balance $ 334,708.57 x. Capital Subaccount Balance $ 2,242,960.00 xi. Capital Reserve Subaccount Balance $ 100,000.00
Page 2 Of 3 6. SUBACCOUNT DRAWS AS OF CURRENT PAYMENT DATE (IF APPLICABLE, PURSUANT TO SECTION 8.02 OF THE INDENTURE): i. Reserve Subaccount $ 447,106.20 ii. Overcollateralization Subaccount $ 0.00 iii. Capital Subaccount $ 0.00 iv. Capital Reserve Subaccount $ 0.00 --------------- v. TOTAL DRAWS $ 447,106.20 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 20th day of October, 2003. Consumers Energy Company, as Servicer by: /s/ Glenn P. Barba ------------------ Glenn P. Barba Vice President, Controller and Chief Accounting Officer Page 3 of 3 EX-31 7 k80596exv31.txt CERTIFICATION PURSUANT TO SECTION 302 Exhibit 31 CERTIFICATION OF LAURA L. MOUNTCASTLE I, Laura L. Mountcastle, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Consumers Funding LLC; 2. 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; 3. 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 4. Consumers Energy, as Servicer under the Securitization bonds, has complied with its servicing obligations and minimum servicing standards. Date: November 12, 2003 By /s/ Laura L. Mountcastle --------------------------- Laura L. Mountcastle President, Chief Executive Officer, Chief Financial Officer and Treasurer 16 EX-32 8 k80596exv32.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 September 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: November 12, 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-----