0000201533-95-000105.txt : 19950918 0000201533-95-000105.hdr.sgml : 19950918 ACCESSION NUMBER: 0000201533-95-000105 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950911 ITEM INFORMATION: Other events FILED AS OF DATE: 19950915 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONSUMERS POWER CO CENTRAL INDEX KEY: 0000201533 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 380442310 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05611 FILM NUMBER: 95574314 BUSINESS ADDRESS: STREET 1: 212 W MICHIGAN AVE CITY: JACKSON STATE: MI ZIP: 49201 BUSINESS PHONE: 5177881030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CMS ENERGY CORP CENTRAL INDEX KEY: 0000811156 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 382726431 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09513 FILM NUMBER: 95574315 BUSINESS ADDRESS: STREET 1: FAIRLANE PLZ SOUTH STE 1100 STREET 2: 330 TOWN CENTER DR CITY: DEARBORN STATE: MI ZIP: 48126 BUSINESS PHONE: 3134369261 MAIL ADDRESS: STREET 1: FAIRLANE PLAZA SOUTH, SUITE 1100 STREET 2: 330 TOWN CENTER DRIVE CITY: DEARBORN STATE: MI ZIP: 48126 8-K 1 ITEM 5. ELECTRIC RATE CASE PROCEEDINGS -------------------------------------------------------------------------- FORM 8-K CURRENT REPORT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) September 11, 1995 Registrant; State of IRS Employer Commission Incorporation; Address; and Identification File Number Telephone Number No 1-9513 CMS ENERGY CORPORATION 38-2726431 (A Michigan Corporation) Fairlane Plaza South, Suite 1100 330 Town Center Drive Dearborn, Michigan 48126 (313) 436-9261 1-5611 CONSUMERS POWER COMPANY 38-0442310 (A Michigan Corporation) 212 West Michigan Avenue Jackson, Michigan 49201 (517) 788-1030 -------------------------------------------------------------------------- ITEM 5. OTHER EVENTS. Electric Rate Case Proceedings On September 11, 1995, CMS Energy Corporation issued a press release announcing a settlement agreement reached September 8, 1995 between its utility subsidiary, Consumers Power Company ("Consumers"), and the staff of the Michigan Public Service Commission ("MPSC") regarding several outstanding rate proceedings. This agreement resolves several major regulatory issues, eliminates major uncertainties and provides Consumers the tools to operate in today's competitive environment. Specifically, the agreement: - resolves the current electric rate case and provides for $49.9 million increase; - eliminates rate subsidization by large industrial customers; - provides for cost recovery of the 325 MW of uncommitted Midland Cogeneration Venture capacity; - implements provisions for incentive ratemaking; - resolves the Special Competitive Services and depreciation rate cases; - implements a limited direct access program; - enables Consumers to negotiate rates for certain large retail customers; and - accelerates recovery of nuclear plant investment. To expedite the case and consider the proposed settlement agreement, on September 14, 1995 the MPSC ordered the parties to file testimony in support or opposition of the proposed settlement agreement by September 29, 1995, file rebuttal testimony by October 5, 1995, commence cross-examination by October 9, 1995, file briefs by October 30, 1995, and file reply briefs by November 6, 1995. A copy of the press release and a more detailed description of the settlement are included as exhibits to the report. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized. CMS ENERGY CORPORATION Dated: September 15, 1995 By: /s/ S Kinnie Smith, Jr ---------------------------- S. Kinnie Smith, Jr. Vice Chairman of the Board and General Counsel CONSUMERS POWER COMPANY Dated: September 15, 1995 By: /s/ S Kinnie Smith, Jr ---------------------------- S. Kinnie Smith, Jr. Vice Chairman of the Board EXHIBIT INDEX Exhibit Number ------- 99(a) Press Release of CMS Energy, dated September 11, 1995. 99(b) Description of Consumers Power Company Global Settlement with MPSC Staff. EX-99 2 EXHIBIT 99(A) PRESS RELEASE DATED 9/11/95 EXHIBIT 99(a) Exhibit 99(a) CMS ENERGY NEWS Contact: Kelly M. Farr (313) 436-9253 DEARBORN, Mich., September 11, 1995 - CMS Energy Corporation (NYSE:CMS) today announced that its utility subsidiary, Consumers Power Company, and the staff of the Michigan Public Service Commission (MPSC) jointly filed a settlement that would resolve a number of issues in several pending cases: a current electric rate case, a special competitive service case and a depreciation case. The settlement is subject to review and approval by the MPSC, which is expected to begin considering the settlement this month. CMS Energy Corporation is a $41 billion (sales), $8 billion (asset) international energy company with businesses engaged in electric and natural gas utility operations; independent power production; natural gas pipeline and storage; gas and electric marketing; and oil and gas exploration and production. CMS Energy Corporation's principal subsidiary is Consumers Power Company, Michigan's largest utility and the nation's fourth largest gas and electric utility. EX-99 3 EXHIBIT 99(B) DESC. OF CONSUMERS SETTLEMENT EXHIBIT 99(b) Exhibit 99(b) Consumers Power Company Global Settlement With MPSC Staff On September 8, 1995 Consumers Power Company (CPCo) and the staff of the Michigan Public Service Commission (MPSC) filed a settlement agreement at the MPSC regarding several outstanding rate proceedings. A summary of the major components of the settlement agreement follow: ELECTRIC RATE CASE * Base rate increase of $49.9 million effective upon approval of the settlement agreement by the MPSC. * Substantial reduction of residential rate subsidy by large industrial rate class, resulting in $35 million (4.3%) reduction in these rates. * Future annual base rate increases will be determined by the company subject to verification by the MPSC through 2000, (excluding nuclear decommissioning surcharges). These increases are limited to the percentage change in the Detroit Consumers Price Index (CPI) minus one percent. * Fuel and purchased power cost recovery to continue under current provisions or any subsequent mechanism that may be adopted. MCV COST RECOVERY * Cost recovery approval for 325 MW of MCV contract capacity, in addition to the 915 MW already approved by the MPSC, granted beginning January 1, 1996. * Initial average capacity charge of 2.86 cents per kWh, escalating to 3.62 cents per kWh in 2004 and thereafter as shown in the table below. SPECIAL COMPETITIVE SERVICES RATE AND DIRECT ACCESS SERVICE * Qualifying retail customers (those with maximum demand of at least 3 MW) can purchase generation services from any independent power producer or qualifying facility located in Michigan (excludes investor owned utilities, co-ops, municipal utilities and existing customer generation.) * CPCo can enter into contracts with these qualifying retail customers at negotiated rates; however, CPCo cannot request rate recovery for any discounts prior to January 1, 2000. * Load under the direct access service and negotiated rate contracts limited to a total of 650 MW. * CPCo to receive a direct access service charge equal to 1.1 cents per kWh and a replacement power charge of at least the cost of replacement power plus 1.1 cents per kWh. * Direct access service to be available through at least December 31, 2000. DEPRECIATION RATE CASE * Overall annual depreciation expense unchanged for electric and common utility plant, while implementing depreciation rate changes for individual accounts and groups. * Increase in depreciation reserve balances of $86.6 million for Palisades Nuclear Plant and $7.0 million for Big Rock Nuclear Plant and decrease of $93.6 million for Transmission Plant. * Record $18 million of annual Steam Production Plant depreciation expense in the nuclear plant depreciation reserve (Palisades - $13 million; Big Rock Point - $5 million). Composite Capacity Charges for the 325 MW of MCV Power Covered by the Settlement Agreement (in cents/kWh) Average On-Peak Off-Peak 1996 2.89 2.969 2.821 1997 3.17 3.267 3.104 1998 3.23 3.328 3.162 1999 3.29 3.390 3.220 2000 3.35 3.452 3.279 2001 3.42 3.520 3.344 2002 3.49 3.588 3.409 2003 3.55 3.657 3.474 2004 and 3.62 3.725 3.539 thereafter