-----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, HbU6UzNwyA8H45B2kL04AnHIrAeflkVeFGqA6c1kvFnpzVU4QQ5vwI+R942Q2CAG aMh+eTjDnE+MG3gernD7Pw== 0000950124-04-002124.txt : 20040507 0000950124-04-002124.hdr.sgml : 20040507 20040507091321 ACCESSION NUMBER: 0000950124-04-002124 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20040331 FILED AS OF DATE: 20040507 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: 04786970 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 k84971e10vq.txt QUARTERLY REPORT FOR PERIOD ENDED MARCH 31, 2004 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 March 31, 2004 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 March 31, 2004 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 Item 7A. Quantitative and Qualitative Disclosures About Market Risk..................................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 contain forward-looking statements as defined in Rule 3b-6 of the Securities Exchange Act of 1934, as amended and Rule 175 of the Securities Act of 1933, as amended. Consumers Funding's intention with the use of words such as "may," "could," "anticipates," "believes," "estimates," "expects," "intends," "plans," and other similar words is to identify forward-looking statements that involve risk and uncertainty. Consumers Funding designed this discussion of potential risks and uncertainties to highlight important factors that may impact its business and financial outlook. 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 the statements. 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 these statements. 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 $5.5 million and $5.6 million of interest income for the three months ended March 31, 2004 and 2003, respectively. Interest expense associated with the securitization bonds totaled $5.5 million and $5.6 million for the three months ended March 31, 2004 and 2003, 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. The initial 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 was 3 $0.001328 per kilowatt-hour, per customer, per billing cycle. On October 16, 2003, Consumers submitted a request to the MPSC for its annual adjustment and it was approved on November 25, 2003. The approved adjustment revised the Securitization Charge to $.001299, effective with the December 2003 billing cycle. For the three months ended March 31, 2004, operating revenues totaled $5.8 million, a decrease of approximately $0.1 million compared to 2003. Included in the $5.8 million is $5.5 million of interest income and approximately $0.3 million 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 three months ended March 31, 2004, Consumers Funding incurred $5.8 million of operating expenses, a decrease of approximately $0.1 million compared to 2003. Included in the $5.8 million is $5.5 million of interest expense and approximately $0.3 million of servicing, administration and other expenses. The decrease in operating expenses for the three-month period is primarily the result of reduced debt levels. 4 CONSUMERS FUNDING LLC STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED ------------------- MARCH 31 2004 2003 -------- -------- In Thousands OPERATING REVENUES Interest Income - Consumers Energy ....... $ 5,471 $ 5,619 Other Operating Revenue - Consumers Energy 282 299 Other Operating Revenue .................. 7 17 -------- -------- Total Operating Revenues ..................... 5,760 5,935 -------- -------- OPERATING EXPENSES Interest Expense ......................... 5,471 5,619 Service Fee - Consumers Energy ........... 262 279 Administration Fee - Consumers Energy .... 20 20 Other .................................... 7 17 -------- -------- Total Operating Expenses ..................... 5,760 5,935 -------- -------- NET INCOME ................................... $ -- $ -- ======== ========
The accompanying notes are an integral part of these statements. 5 CONSUMERS FUNDING LLC BALANCE SHEETS (UNAUDITED)
MARCH 31 DEC. 31 MARCH 31 2004 2003 2003 (UNAUDITED) (UNAUDITED) ---------- ---------- ---------- In Thousands ASSETS CURRENT ASSETS Restricted Cash ............................ $ 17,372 $ 17,045 $ 17,619 Securitization Receivable - Consumers Energy 27,261 27,361 26,431 ---------- ---------- ---------- Total Current Assets ....................... 44,633 44,406 44,050 NON-CURRENT ASSETS Securitization Receivable - Consumers Energy 381,340 388,459 409,323 ---------- ---------- ---------- Total Non-current Assets ................... 381,340 388,459 409,323 ---------- ---------- ---------- TOTAL ASSETS ................................. $ 425,973 $ 432,865 $ 453,373 ========== ========== ========== LIABILITIES AND MEMBER'S EQUITY CURRENT LIABILITIES Securitization Bonds Payable ............... $ 27,983 $ 27,786 $ 27,168 Accounts Payable - Consumers Energy ........ 292 305 306 Accounts Payable - Other ................... 32 32 17 Interest Payable ........................... 4,191 4,148 4,423 ---------- ---------- ---------- Total Current Liabilities .................. 32,498 32,271 31,914 NON-CURRENT LIABILITIES Securitization Bonds Payable ............... 391,132 398,251 419,116 ---------- ---------- ---------- Total Non-current Liabilities .............. 391,132 398,251 419,116 ---------- ---------- ---------- MEMBER'S EQUITY Total Member's Equity ..................... 2,343 2,343 2,343 ---------- ---------- ---------- TOTAL LIABILITIES AND MEMBER'S EQUITY ........ $ 425,973 $ 432,865 $ 453,373 ========== ========== ==========
The accompanying notes are an integral part of these statements. 6 CONSUMERS FUNDING LLC STATEMENTS OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED ------------------------ MARCH 31 2004 2003 ---------- ---------- In Thousands CASH FLOWS FROM OPERATING ACTIVITIES Net Income ......................................... $ -- $ -- Changes in Current Assets and Liabilities: Interest Payable ................................... 43 (34) Accounts Payable - Consumers Energy ................ (13) (8) Accounts Payable - Other ........................... -- 15 ---------- ---------- NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES 30 (27) CASH FLOWS FROM INVESTING ACTIVITIES Restricted Cash .................................... (327) (208) Reduction of Securitization Receivable ............. 7,219 6,893 ---------- ---------- NET CASH PROVIDED BY INVESTING ACTIVITIES .......... 6,892 6,685 CASH FLOWS FROM FINANCING ACTIVITIES Payment of Securitization Bonds Principal .......... (6,922) (6,658) ---------- ---------- NET CASH (USED IN) FINANCING ACTIVITIES ............ (6,922) (6,658) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS -- -- CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD ..... -- -- ---------- ---------- CASH AND CASH EQUIVALENTS, END OF PERIOD ........... $ -- $ -- ========== ==========
The accompanying notes are an integral part of these statements. 7 CONSUMERS FUNDING LLC STATEMENTS OF MEMBER'S EQUITY (UNAUDITED)
THREE MONTHS ENDED ---------------------- MARCH 31 2004 2003 ---------- ---------- In Thousands BALANCE AT BEGINNING OF PERIOD $ 2,343 $ 2,343 Add: Net Income ................. -- -- ---------- ---------- BALANCE AT END OF PERIOD ..... $ 2,343 $ 2,343 ========== ==========
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 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' financial statements 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. 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 March 31, 2004 and March 31, 2003, the General Subaccount totaled $12.2 million and $11.9 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 March 31, 2004, and March 31, 2003, the Reserve Subaccount totaled approximately $2.5 million and $3.1 million 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 March 31, 2004 and March 31, 2003, the Overcollateralization Subaccount totaled approximately $0.4 million and $0.2 million, 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 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 March 31, 2004 and March 31, 2003, the Capital Subaccount contained a balance of $2.3 million. 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 March 31, 2004, Consumers Funding has retired all of the class A-1 securitization bonds and $23.5 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 March 31, 2004 are as follows:
Expected Principal Final Final Bond Balance Payment Maturity Class Rate (in thousands) Date Date - ----------------------------------------------------------------------------------------------------------- A-2 3.80% $ 60,523 April 20, 2006 April 20, 2008 A-3 4.55% 31,000 April 20, 2007 April 20, 2009 A-4 4.98% 95,000 April 20, 2010 April 20, 2012 A-5 5.43% 117,000 April 20, 2013 April 20, 2015 A-6 5.76% 115,592 October 20, 2015 October 20, 2016 --------- Total $ 419,115 Current Maturities (27,983) --------- Long-Term Debt $ 391,132 =========
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 remainder of 2004, the next five calendar years, and thereafter (in thousands).
Principal Retirement Year (in thousands) - ---- -------------- 2004 $ 20,864 2005 28,646 2006 29,591 2007 30,763 2008 32,130 2009 33,589 Thereafter 243,532 -------- Total Debt $419,115 ========
As scheduled, on April 20, 2004, $6.9 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 March 31, 2004, and 2003, Consumers Funding had a financial asset (representing its securitization receivable from Consumers) of approximately $409 million and $436 million, respectively, and financial liabilities (representing the securitization bonds) with a cost basis of approximately $419 million and $446 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 $409 million and $436 million, as of March 31, 2004 and March 31, 2003, respectively. Accordingly, Consumers Funding recognized interest income totaling $5.5 million and $5.6 million for the three months ended March 31, 2004 and 2003, respectively. In addition, Consumers Funding recognized other operating revenue from Consumers totaling approximately $0.3 million for the three months ended March 31, 2004, and approximately $0.3 million for the comparable period in 2003. 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 March 31, 2004 and 2003, Consumers Funding has recorded total expenses related to these fees of approximately $0.3 million. 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 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 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: May 7, 2004 ------------------------ Laura L. Mountcastle President, Chief Executive Officer, Chief Financial Officer and Treasurer By: /s/ Glenn P. Barba Date: May 7, 2004 ------------------ Glenn P. Barba Chief Accounting Officer and Controller 14 INDEX TO EXHIBITS ---------------
EXHIBIT NO. DESCRIPTION - ----------- ----------- 10(a) Monthly Servicer's Certificate dated February 18, 2004 10(b) Monthly Servicer's Certificate dated March 15, 2004 10(c) Monthly Servicer's Certificate dated April 19, 2004 10(d) Quarterly Servicer's Certificate dated April 19, 2004 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) 2 k84971exv10wxay.txt MONTHLY SERVICER'S CERTIFICATE DATED 02/18/2004 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: January 2004
CURRENT BILLING MONTH 1/7/2004 - 2/3/2004 COLLECTION CURVE 100% STANDARD BILLING FOR PRIOR BILLING MONTH Residential Total Billed $148,274,205 Residential SECURITIZATION CHARGE (SC) Billed $ 1,466,846 0.989% Commercial Total Billed $ 82,613,454 Commercial SECURITIZATION CHARGE (SC) Billed $ 1,336,170 1.617% Industrial Total Billed $ 47,103,935 Industrial SECURITIZATION CHARGE (SC) Billed $ 1,312,848 2.787% YTD NET WRITE-OFFS AS A % OF BILLED REVENUE Non-Residential Customer Net Write-offs 0.090% Residential Customer Net Write-offs 0.620% Total Net Write-offs 0.330% AGGREGATE SC COLLECTIONS TOTAL SC REMITTED FOR BILLING MONTH Residential Class SC Collected $ 1,357,760 Commercial Class SC Collected $ 1,238,488 Industrial Class SC Collected $ 1,290,396 Total SC Collected $ 3,886,644 Aggregate SC Remittances for January 2004 BILLING MONTH $ 3,886,644 Aggregate SC Remittances for February 2004 BILLING MONTH $ 0 Aggregate SC Remittances for March 2004 BILLING MONTH $ 0 TOTAL CURRENT SC REMITTANCES $ 3,886,644
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CURRENT BILLING MONTH 1/7/2004 - 2/3/2004 COLLECTION CURVE 100% CALCULATED SC COLLECTED AMOUNT RESIDENTIAL A-1 Residential SC Collected $ 1,293,364 A-3 Residential T.O.D. SC Collected $ 5,570 A-4 Alternate Residence SC Collected $ 30,039 A-5 Residential Farm/Life Support SC Collected $ 28,787 TOTAL RESIDENTIAL SC COLLECTED $ 1,357,760 COMMERCIAL B-1 General Primary (041) SC Collected $ 23,456 B-General Secondary (010) SC Collected $ 226,088 C- General Secondary (011) SC Collected $ 442,991 D-General Primary (018) SC Collected $ 274,123 F-Primary High Load Factor (032) SC Collected $ 42,787 GH-General Service Heating (013) SC Collected $ 5,781 H- Water Heating Service (014) SC Collected $ 639 L-1 General Energy-Only Street Lighting SC Collected $ 3,149 L-2 General Service (Cust Owned) St Light SC Collected $ 3,234 L-3 General Service (Co Owned) St Light SC Collected $ 16,786 L-4 General Service Outdoor Lighting Commercial SC Collected $ 2,203 PS-1 General Secondary Public Pumping SC Collected $ 6,971 PS-2 General Primary Public Pumping SC Collected $ 7,354 PS-3 General Optional Primary Public Pumping SC Collected $ 47,693 R-1 General Secondary Resale SC Collected $ 2 R-2 General Secondary Resale SC Collected $ 1,018 R-3 General Primary Resale SC Collected $ 25,421 ROA-P Retail Open Access Primary (110) SC Collected $ 77,784 ROA-S Retail Open Access Secondary Com SC Collected $ 15,406 SC - Special Contract Commercial SC Collected $ 1,949 SPEC Grand Rapids Special Contract SC Collected $ 3,145 UR-General Unmetered SC Collected $ 10,508 TOTAL COMMERCIAL SC COLLECTED $ 1,238,488 INDUSTRIAL B-1 General Primary (042) SC Collected $ 16,055 B-General Secondary (020) SC Collected $ 30,528 C- General Secondary (021) SC Collected $ 65,399 CG-Cogeneration/Small Power Production Purchase SC Collected $ 352 D-General Primary (028) SC Collected $ 486,245 F-Primary High Load Factor (033) SC Collected $ 80,308 GH-General Service Heating (023) SC Collected $ 71 GMD General Motors SC Collected $ 55,274 GMF General Motors SC Collected $ 104,733 GMF-1 General Motors SC Collected $ 12,870 GMJ-1 General Motors SC Collected $ 6,845
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CURRENT BILLING MONTH 1/7/2004 - 2/3/2004 COLLECTION CURVE 100% H- Water Heating Service (024) SC Collected $ 0 I-General Primary Interruptible (034) SC Collected $ 3,360 J-1General Alternative Electric Metal Melting SC Collected $ 22,254 J-General Primary Electric Furnace (037) SC Collected $ 5,305 L-4 General Service Outdoor Lighting Industrial SC Collected $ 124 R-3 General Primary Resale (027) SC Collected $ 109 ROA-P Retail Open Access Primary (111) SC Collected $ 311,555 ROA-S Retail Open Access Secondary Ind SC Collected $ 1,965 SC - Special Contract Industrial SC Collected $ 87,044 TOTAL INDUSTRIAL SC COLLECTED $ 1,290,396 TOTAL SC COLLECTED $ 3,886,644
Executed as of this 18th day of February 2004. 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.(B) 3 k84971exv10wxby.txt MONTHLY SERVICER'S CERTIFICATE DATED 03/15/2004 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: February 2004
CURRENT BILLING MONTH 2/4/2004 - 3/3/2004 COLLECTION CURVE 100% STANDARD BILLING FOR PRIOR BILLING MONTH Residential Total Billed $182,702,523 Residential SECURITIZATION CHARGE (SC) Billed $ 1,653,433 0.905% Commercial Total Billed $ 90,940,545 Commercial SECURITIZATION CHARGE (SC) Billed $ 1,417,470 1.559% Industrial Total Billed $ 45,501,424 Industrial SECURITIZATION CHARGE (SC) Billed $ 1,249,652 2.746% YTD NET WRITE-OFFS AS A % OF BILLED REVENUE Non-Residential Customer Net Write-offs 0.070% Residential Customer Net Write-offs 0.470% Total Net Write-offs 0.250% AGGREGATE SC COLLECTIONS TOTAL SC REMITTED FOR BILLING MONTH Residential Class SC Collected $ 1,606,075 Commercial Class SC Collected $ 1,482,557 Industrial Class SC Collected $ 1,476,622 Total SC Collected $ 4,565,254 Aggregate SC Remittances for January 2004 BILLING MONTH $ 3,886,644 Aggregate SC Remittances for February 2004 BILLING MONTH $ 4,565,254 Aggregate SC Remittances for March 2004 BILLING MONTH $ 0 TOTAL CURRENT SC REMITTANCES $ 8,451,898
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CURRENT BILLING MONTH 2/4/2004 - 3/3/2004 COLLECTION CURVE 100% CALCULATED SC COLLECTED AMOUNT RESIDENTIAL A-1 Residential SC Collected $ 1,529,423 A-3 Residential T.O.D. SC Collected $ 7,090 A-4 Alternate Residence SC Collected $ 36,556 A-5 Residential Farm/Life Support SC Collected $ 33,006 TOTAL RESIDENTIAL SC COLLECTED $ 1,606,075 COMMERCIAL B-1 General Primary (041) SC Collected $ 24,856 B-General Secondary (010) SC Collected $ 267,670 C- General Secondary (011) SC Collected $ 541,167 D-General Primary (018) SC Collected $ 328,959 F-Primary High Load Factor (032) SC Collected $ 49,952 GH-General Service Heating (013) SC Collected $ 8,288 H- Water Heating Service (014) SC Collected $ 684 L-1 General Energy-Only Street Lighting SC Collected $ 3,064 L-2 General Service (Cust Owned) St Light SC Collected $ 3,110 L-3 General Service (Co Owned) St Light SC Collected $ 15,682 L-4 General Service Outdoor Lighting Commercial SC Collected $ 2,006 PS-1 General Secondary Public Pumping SC Collected $ 7,846 PS-2 General Primary Public Pumping SC Collected $ 8,692 PS-3 General Optional Primary Public Pumping SC Collected $ 38,585 R-1 General Secondary Resale SC Collected $ 2 R-2 General Secondary Resale SC Collected $ 951 R-3 General Primary Resale SC Collected $ 29,428 ROA-P Retail Open Access Primary (110) SC Collected $ 102,005 ROA-S Retail Open Access Secondary Com SC Collected $ 34,583 SC - Special Contract Commercial SC Collected $ 1,750 SPEC Grand Rapids Special Contract SC Collected $ 3,586 UR-General Unmetered SC Collected $ 9,691 TOTAL COMMERCIAL SC COLLECTED $ 1,482,557 INDUSTRIAL B-1 General Primary (042) SC Collected $ 18,874 B-General Secondary (020) SC Collected $ 34,125 C- General Secondary (021) SC Collected $ 74,987 CG-Cogeneration/Small Power Production Purchase SC Collected $ 3,674 D-General Primary (028) SC Collected $ 521,410 F-Primary High Load Factor (033) SC Collected $ 136,410 GH-General Service Heating (023) SC Collected $ 97 GMD General Motors SC Collected $ 56,812 GMF General Motors SC Collected $ 108,455 GMF-1 General Motors SC Collected $ 10,847 GMJ-1 General Motors SC Collected $ 7,529
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CURRENT BILLING MONTH 2/4/2004 - 3/3/2004 COLLECTION CURVE 100% H- Water Heating Service (024) SC Collected $ 1 I-General Primary Interruptible (034) SC Collected $ 3,663 J-1General Alternative Electric Metal Melting SC Collected $ 32,199 J-General Primary Electric Furnace (037) SC Collected $ 6,590 L-4 General Service Outdoor Lighting Industrial SC Collected $ 111 R-3 General Primary Resale (027) SC Collected $ 16 ROA-P Retail Open Access Primary (111) SC Collected $ 341,261 ROA-S Retail Open Access Secondary Ind SC Collected $ 3,026 SC - Special Contract Industrial SC Collected $ 116,535 TOTAL INDUSTRIAL SC COLLECTED $ 1,476,622 TOTAL SC COLLECTED $ 4,565,254
Executed as of this 15th day of March 2004. 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) 4 k84971exv10wxcy.txt MONTHLY SERVICER'S CERTIFICATE DATED 04/19/2004 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: March 2004
CURRENT BILLING MONTH 3/4/2004 - 4/1/2004 COLLECTION CURVE 100% STANDARD BILLING FOR PRIOR BILLING MONTH Residential Total Billed $179,054,778 Residential SECURITIZATION CHARGE (SC) Billed $ 1,474,893 0.824% Commercial Total Billed $ 97,390,163 Commercial SECURITIZATION CHARGE (SC) Billed $ 1,399,196 1.437% Industrial Total Billed $ 46,820,580 Industrial SECURITIZATION CHARGE (SC) Billed $ 1,300,467 2.778% YTD NET WRITE-OFFS AS A % OF BILLED REVENUE Non-Residential Customer Net Write-offs 0.100% Residential Customer Net Write-offs 0.470% Total Net Write-offs 0.260% AGGREGATE SC COLLECTIONS TOTAL SC REMITTED FOR BILLING MONTH Residential Class SC Collected $ 1,356,402 Commercial Class SC Collected $ 1,242,574 Industrial Class SC Collected $ 1,267,904 Total SC Collected $ 3,866,880 Aggregate SC Remittances for January 2004 BILLING MONTH $ 3,886,644 Aggregate SC Remittances for February 2004 BILLING MONTH $ 4,565,254 Aggregate SC Remittances for March 2004 BILLING MONTH $ 3,866,880 TOTAL CURRENT SC REMITTANCES $ 12,318,778
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CURRENT BILLING MONTH 3/4/2004 - 4/1/2004 COLLECTION CURVE 100% CALCULATED SC COLLECTED AMOUNT RESIDENTIAL A-1 Residential SC Collected $ 1,287,167 A-3 Residential T.O.D. SC Collected $ 5,933 A-4 Alternate Residence SC Collected $ 32,996 A-5 Residential Farm/Life Support SC Collected $ 30,306 TOTAL RESIDENTIAL SC COLLECTED $ 1,356,402 COMMERCIAL B-1 General Primary (041) SC Collected $ 21,746 B-General Secondary (010) SC Collected $ 239,039 C- General Secondary (011) SC Collected $ 417,435 D-General Primary (018) SC Collected $ 262,903 F-Primary High Load Factor (032) SC Collected $ 47,170 GH-General Service Heating (013) SC Collected $ 7,889 H- Water Heating Service (014) SC Collected $ 585 L-1 General Energy-Only Street Lighting SC Collected $ 2,486 L-2 General Service (Cust Owned) St Light SC Collected $ 2,596 L-3 General Service (Co Owned) St Light SC Collected $ 13,046 L-4 General Service Outdoor Lighting Commercial SC Collected $ 1,637 PS-1 General Secondary Public Pumping SC Collected $ 7,004 PS-2 General Primary Public Pumping SC Collected $ 6,423 PS-3 General Optional Primary Public Pumping SC Collected $ 40,967 R-1 General Secondary Resale SC Collected $ 2 R-2 General Secondary Resale SC Collected $ 1,022 R-3 General Primary Resale SC Collected $ 25,554 ROA-P Retail Open Access Primary (110) SC Collected $ 102,036 ROA-S Retail Open Access Secondary Com SC Collected $ 27,371 SC - Special Contract Commercial SC Collected $ 1,773 SPEC Grand Rapids Special Contract SC Collected $ 2,969 UR-General Unmetered SC Collected $ 10,921 TOTAL COMMERCIAL SC COLLECTED $ 1,242,574 INDUSTRIAL B-1 General Primary (042) SC Collected $ 15,802 B-General Secondary (020) SC Collected $ 31,112 C- General Secondary (021) SC Collected $ 67,508 CG-Cogeneration/Small Power Production Purchase SC Collected $ 58 D-General Primary (028) SC Collected $ 467,520 F-Primary High Load Factor (033) SC Collected $ 73,387 GH-General Service Heating (023) SC Collected $ 73 GMD General Motors SC Collected $ 56,509 GMF General Motors SC Collected $ 94,795 GMJ-1 General Motors SC Collected $ 7,503 H- Water Heating Service (024) SC Collected $ 1
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CURRENT BILLING MONTH 3/4/2004 - 4/1/2004 COLLECTION CURVE 100% I-General Primary Interruptible (034) SC Collected $ 3,310 J-1General Alternative Electric Metal Melting SC Collected $ 34,319 J-General Primary Electric Furnace (037) SC Collected $ 5,669 L-4 General Service Outdoor Lighting Industrial SC Collected $ 100 R-3 General Primary Resale (027) SC Collected $ 78 ROA-P Retail Open Access Primary (111) SC Collected $ 290,807 ROA-S Retail Open Access Secondary Ind SC Collected $ 3,927 SC - Special Contract Industrial SC Collected $ 115,426 TOTAL INDUSTRIAL SC COLLECTED $ 1,267,904 TOTAL SC COLLECTED $ 3,866,880
Executed as of this 19th day of April 2004. CONSUMERS ENERGY COMPANY AS SERVICER /s/ Laura L. Mountcastle ------------------------------------------------ Laura L. Mountcastle, Chief Executive Officer, President, Chief Financial Officer & Treasurer CC: Consumers Funding LLC One Energy Plaza Jackson, Mi 49201 Page 3 of 3 EX-10.(D) 5 k84971exv10wxdy.txt QUARTERLY SERVICER'S CERTIFICATE DATED 04/19/2004 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: January 2004, February 2004, March 2004 Payment Date: April 20, 2004 1. COLLECTIONS ALLOCABLE AND AGGREGATE AMOUNTS AVAILABLE FOR THE CURRENT PAYMENT DATE: i. Remittances for the January 2004 Collection Period $3,886,644.00 ii. Remittances for the February 2004 Collection Period $4,565,254.00 iii. Remittances for the March 2004 Collection Period $3,866,880.00 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 $26,575.29 ix. Net Earnings on Capital Subaccount $5,362.59 x. Net Earnings on Overcollateralization Subaccount $795.20 xi. Net Earnings on Reserve Subaccount $5,513.95 --------------- GENERAL SUBACCOUNT BALANCE $12,357,025.03 xii. Reserve Subaccount Balance $2,465,221.93 xiii. Overcollateralization Subaccount Balance $376,547.14 xiv. Capital Subaccount Balance (less $100K) $2,242,960.00 xv. Capital Reserve Subaccount Balance $100,000.00 --------------- xvi. COLLECTION ACCOUNT BALANCE $17,541,754.10 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 $60,523,311.52 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 $419,115,311.52 viii. Reserve Subaccount Balance $2,465,221.93 ix. Overcollateralization Subaccount Balance $376,547.14 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 $53,595,934.22 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 $412,187,934.22 viii. Required Class A-1 Coupon (2.59% per annum rate) $0.00 ix. Required Class A-2 Coupon (3.80% per annum rate) $574,971.46
Page 2 of 5 x. Required Class A-3 Coupon (4.55% per annum rate) $352,625.00 xi. Required Class A-4 Coupon (4.98% 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 $261,947.07 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) $10,462.59 VI. QUARTERLY INTEREST $5,363,146.26 1. Class A-1 Bond Coupon Payment $0.00 2. Class A-2 Bond Coupon Payment $574,971.46 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 $6,927,377.30 1. Class A-1 Bond Principal Payment $0.00 2. Class A-2 Bond Principal Payment $6,927,377.30 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 $5,362.59 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 $53,595,934.22 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 $412,187,934.22 viii. Reserve Subaccount Balance $2,190,362.58 ix. Overcollateralization Subaccount Balance $418,385.71 x. Capital Subaccount Balance $2,242,960.00 xi. Capital Reserve Subaccount Balance $100,000.00
Page 3 of 5 6. SUBACCOUNT DRAWS AS OF CURRENT PAYMENT DATE (IF APPLICABLE, PURSUANT TO SECTION 8.02 OF THE INDENTURE): i. Reserve Subaccount $274,859.35 ii. Overcollateralization Subaccount $0.00 iii. Capital Subaccount $0.00 iv. Capital Reserve Subaccount $0.00 ----- V. TOTAL DRAWS $274,859.35 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 19th day of April, 2004. Consumers Energy Company, as Servicer by: /s/ Laura L Mountcastle ------------------- Laura L. Mountcastle Chief Executive Officer, President, Chief Financial Officer and Treasurer Page 4 of 5 EX-31 6 k84971exv31.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: May 7, 2004 By /s/ Laura L. Mountcastle ------------------------- Laura L. Mountcastle President, Chief Executive Officer, Chief Financial Officer and Treasurer 16 EX-32 7 k84971exv32.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 March 31, 2004 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: May 7, 2004 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 Section18 of the Securities Exchange Act of 1934, as amended. 17 -----END PRIVACY-ENHANCED MESSAGE-----