U-3A-2/A 1 u3a2cons-amendtxt.txt AMENDED U-3A-2 CONSUMERS File No. 69-333 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT #1 TO FORM U-3A-2 STATEMENT BY HOLDING COMPANY CLAIMING EXEMPTION UNDER RULE U-3A-2 FROM THE PROVISIONS OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 _______________________________________________ TO BE FILED ANNUALLY PRIOR TO JUNE 7, 2002 _______________________________________________ CONSUMERS ENERGY COMPANY (Name of Company) hereby files with the Securities and Exchange Commission, pursuant to Rule 2, its statement claiming exemption as a holding company from the provisions of the Public Utility Holding Company Act of 1935, and submits the following information: JUNE 7, 2002
1. Name, state of organization, location and nature of business of claimant and every subsidiary thereof, other than any exempt wholesale generator (EWG) or foreign utility company in which claimant directly or indirectly holds an interest. Consumers Energy Company Address: 212 West Michigan Avenue, Jackson, Michigan 49201 Consumers Energy Company is a Michigan corporation engaged in the generation, purchase, distribution and sale of electricity, and in the purchase, storage, transmission, distribution and sale of natural gas, in the lower peninsula of the state of Michigan. 1. CMS Engineering Co. Address: 212 West Michigan Avenue, Jackson, Michigan 49201 CMS Engineering Company is a Michigan corporation engaged in offering design, engineering, project management and related construction services to natural gas utilities, natural gas exploration and production companies, and other energy businesses. 2. CMS Midland Holdings Company Address: 212 West Michigan Avenue, Jackson, Michigan 49201 CMS Midland Holdings Company is a Michigan corporation involved as a Limited Partner in the First Midland Limited Partnership, a Delaware limited partnership, which leases assets to the Midland Cogeneration Venture Limited Partnership, a Michigan limited partnership. 3. CMS Midland, Inc. Address: 212 West Michigan Avenue, Jackson, Michigan 49201 CMS Midland, Inc. is as Michigan corporation engaged as a 49% General Partner in the Midland Cogeneration Venture Limited Partnership, a Michigan limited partnership. 4. Consumers Campus Holdings, LLC Address: 212 West Michigan Avenue, Jackson, Michigan 49201 Consumers Campus Holdings, LLC is a Michigan limited liability company formed for the purpose of being the lessee in the synthetic lease financing of the new Consumers Energy Company office building to be located in downtown Jackson, Michigan.
5. Consumers EnergyGuard Services, Inc. Address: 212 West Michigan Avenue, Jackson, Michigan 49201 Consumers EnergyGuard Services, Inc., is a Michigan corporation formed for the purpose of marketing EnergyGuard, a residential bill payment insurance product to Consumers' residential customers. 6. Consumers Funding LLC Address: 212 West Michigan Avenue, Jackson, Michigan 49201 Consumers Funding LLC is a Delaware limited liability company formed for the purpose of acting as assignee of property transferred by Consumers and issuer of securitization bonds. 7. Consumers Nuclear Services, LLC Address: 212 West Michigan Avenue, Jackson, Michigan 49201 Consumers Nuclear Services, LLC is a Michigan limited liability company formed for the purpose of holding the 20% member interest in Nuclear Management LLC. 7.1 Nuclear Management Company, LLC (20%) Address: 700 First Street, Hudson, Wisconsin 54016 Nuclear Management Company, LLC is a Wisconsin limited liability company formed to achieve enhanced reliability and continued safe operation, to pursue overall excellence in nuclear power operations, as well as to identify efficiencies in the provision of operating services to nuclear facilities. 8. Consumers Receivables Funding, LLC Address: 212 West Michigan Avenue, Jackson, Michigan 49201 Consumers Receivables Funding, LLC is a Delaware limited liability company formed to buy certain accounts receivables from Consumers Energy Company and sell them to a third party. 9. ES Services Company Address: 212 West Michigan Avenue, Jackson, Michigan 49201 ES Services Company is a Michigan corporation formed for the purpose of offering design, engineering, project management and related services primarily to electric utilities and generation facilities.
10. MEC Development Corp. Address: 212 West Michigan Avenue, Jackson, Michigan 49201 MEC Development Corp. is a Michigan corporation that previously held assets transferred to and holder of certain bonds issued by the Midland Cogeneration Venture Limited Partnership, a Michigan limited partnership. 11. Michigan Electric Transmission Company Address: 212 West Michigan Avenue, Jackson, Michigan 49201 Michigan Electric Transmission Company is a Michigan corporation formed for the purpose of owning electric transmission facilities acquired from Consumers. It was merged with and into Michigan Electric Transmission Company LLC (a Michigan limited liability company) on April 30, 2002, immediately sold to Michigan Transmission Limited Holding Partner. 12. Michigan Gas Storage Company Address: 212 West Michigan Avenue, Jackson, Michigan 49201 Michigan Gas Storage Company is a Michigan corporation and a natural gas company within the meaning of the Natural Gas Act engaged in the interstate transportation and storage of gas for a number of customers including Consumers. 13. Consumers Parnall Holdings, LLC Address: 212 West Michigan Avenue, Jackson, Michigan 49201 Consumers Parnall Holdings, LLC is a Michigan limited liability corporation formed for the purpose of holding the interest of CEC Investments I, Inc. and related to the Parnall Road building pending a purchase of the title to the land by Consumers. 14. Consumers Power Company Financing I Address: 212 West Michigan Avenue, Jackson, Michigan 49201 Consumers Power Company Financing I is a Delaware Trust established to issue Trust Preferred Securities.
15. Consumers Energy Company Financing II Address: 212 West Michigan Avenue, Jackson, Michigan 49201 Consumers Energy Company Financing II is a Delaware Trust established to issue Trust Preferred Securities. 16. Consumers Energy Company Financing III Address: 212 West Michigan Avenue, Jackson, Michigan 49201 Consumers Energy Company Financing III is a Delaware Trust established to issue Trust Preferred Securities. 17. Consumers Energy Company Financing IV Address: 212 West Michigan Avenue, Jackson, Michigan 49201 Consumers Energy Company Financing IV is a Delaware Trust established to issue Trust Preferred Securities. 18. Consumers Energy Company Financing V Address: 212 West Michigan Avenue, Jackson, Michigan 49201 Consumers Energy Company Financing V is a Delaware Trust established to issue Trust Preferred Securities.
2. A brief description of the properties of claimant and each of its subsidiary public utility companies used for the generation, transmission and distribution of electric energy for sale, or for the production, transmission and distribution of natural or manufactured gas, indicating the location of principal generating plants, transmission lines, producing fields, gas manufacturing plants, and electric and gas distribution facilities, including all such properties which are outside the State in which claimant and its subsidiaries are organized and all transmission or pipelines which deliver or receive electric energy or gas at the borders of such State. ---------------------------------------------------------------------------------------------------------------------------------- Claimant's subsidiary Consumers is a public utility. Its property and facilities used for the above-described purposes are located within the State of Michigan and are described below. (1) Electric Properties Consumers' electric generation is supplied by the following plants: 2001 2001 Summer Net Demonstrated Size and Year Capability (kWhs) Net Generation Name and Location (Michigan) Entering Service (Thousands of kWhs) Coal Generation J H Campbell 1&2 - West Olive 2 Units, 1962-1967 615,000 3,654,739 J H Campbell 3 - West Olive 1 Unit, 1980 765,140(a) 5,612,688 D E Karn - Essexville 2 Units, 1959-1961 515,000 3,611,668 B C Cobb - Muskegon 2 Units, 1956-1957 316,000 2,029,002 J R Whiting - Erie 3 Units, 1952-1953 326,000 2,119,458 J C Weadock - Essexville 2 Units, 1955-1958 310,000 2,175,729 Total Coal Generation 2,847,140 19,203,284 Oil/Gas Generation B C Cobb - Muskegon 3 Units, 1999-2000 183,000 58,328 D E Karn - Essexville 2 Units, 1975-1977 1,276,000 928,427 Total Oil/Gas Generation 1,459,000 986,755 Hydroelectric Conventional Hydro Generation 13 Plants, 1907-1949 73,540 422,576 Ludington Pumped Storage 6 Units, 1973 954,700(b) (553,135)(c) Total Hydroelectric 1,028,240 (130,559) Nuclear Generation
Palisades - South Haven 1 Unit, 1971 760,000 2,325,720 Total Nuclear Generation 760,000 2,325,720 Gas/Oil Combustion Turbine Generation 8 Plants, 1966-1999 346,800(d) 14,711 Total Gas/Oil Combustion Turbine 346,800 14,711 Total owned generation 6,441,180 22,399,911 Purchased and Interchange Power Capacity 1,644,180(e) TOTAL 8,085,360 (a) Represents Consumers' share of the capacity of the J H Campbell 3, net of 6.69 percent (ownership interests of the Michigan Public Power Agency and Wolverine Power Supply Cooperative, Inc.). (b) Represents Consumers' share of the capacity of Ludington. Consumers and Detroit Edison have 51 percent and 49 percent undivided ownership, respectively, in the plant. (c) Represents Consumers' share of net pumped storage generation. This facility electrically pumps water during off-peak hours for storage to later generate electricity during peak-demand hours. (d) Includes 1.8 MW of distributed generation. (e) Includes 1,240 MW of purchased contract capacity from the MCV Facility. Electric subtransmission and distribution lines are located on or under public highways, streets, alleys or lands, except where they are located on or under easements or other rights. Consumers owns 340 miles of high voltage distribution radial lines. The subtransmission system consists of 4,152 structural miles of overhead lines and 16 subsurface miles of underground lines. The distribution system consists of 54,380 structural miles of overhead lines and 7,801 subsurface miles of underground lines. Consumers owns substations having an aggregate transformer capacity of 28,868,000 kilovoltamperes. On April 1, 2001, Consumers transferred its investment in electric transmission lines and substations to a wholly owned subsidiary, Michigan Electric Transmission Company (METC) and on May 1,
2002 sold the entire electric transmission system to an independent third party. The transmission system consists of 4,288 structural miles of overhead lines. METC owned substations having an aggregate transformer capacity of 12,015,660 kilovoltamperes. Consumers is interconnected with certain Michigan and neighboring utilities. Consumers owns the land and rights-of-way and METC owns the non-land assets which connect with the electric transmission lines that deliver electric energy at or near the Michigan state border to: Indiana & Michigan Electric Company at the following interconnection points: Palisades-Cook No. 1, Palisades-Cook No. 2, Argenta-Robinson Park and Argenta-Twin Branch; and Northern Indiana Public Service Company at the following interconnection point: Barton Lake-Batavia.
(2) Gas Properties Consumers' gas distribution and transmission system consists of 24,746 miles of distribution mains and 1,099 miles of transmission lines throughout Michigan's lower peninsula. It owns and operates six compressor stations with a total of 113,680 installed horsepower. Consumers has 11 gas storage fields located across Michigan with an aggregate storage capacity of 221.3 bcf. Michigan Gas Storage's transmission system consists of 521 miles of pipelines within Michigan's lower peninsula. It owns and operates two compressor stations with a total of 53,500 installed horsepower. Michigan Gas Storage has three gas storage fields located in Osceola, Clare and Missaukee counties of Michigan with an aggregate storage capacity of 109.5 bcf. In November 2001, Michigan Gas storage filed an application with the Federal Energy Regulatory Commission for a declaration of exemption from provisions of the National Gas Act. Upon approval of the application, it is intended that Michigan Gas Storage and its facilities would be merged into Consumers Energy Company. -------------------------------------------------------------------------------------------------------------------------------- 3. The following information for the last calendar year with respect to claimant and each of its subsidiary public utility companies: -------------------------------------------------------------------------------------------------------------------------------- ELECTRIC ENERGY (a) Number of kWh of electric energy sold (at retail or wholesale). kWh Total Electric Energy Sold 38,934,189,814 (b) Number of kWh of electric energy distributed at retail outside Michigan. kWh Total Electric Energy Distributed Outside of the State of Michigan 0 (c) Number of kWh of electric energy sold at wholesale outside Michigan or at Michigan's state line. kWh Total Electric Energy Sold at Wholesale Outside 1,922,071,000
the State of Michigan or at Michigan's State Line. (d) Number of kWh of electric energy purchased outside Michigan or at Michigan's state line. kWh Total Electric Energy Purchased Outside of Michigan 6,932,983,000 NATURAL GAS CMS Energy information reports for natural gas, as it does not deal with or in manufactured gas. (a) Number of Mcf of natural gas distributed at retail. Mcf Total Natural Gas Distributed at Retail 230,729,000 (b) Number of Mcf of natural gas distributed at retail outside Michigan. Mcf Total Natural Gas Distributed at Retail 0 Outside the State of Michigan (c) Number of Mcf of natural gas sold at wholesale outside Michigan or at Michigan's state line. Mcf Total Natural Gas Sold at Wholesale Outside Michigan or at 0 Michigan's State Line. (d) Number of Mcf of natural gas purchased outside Michigan. Mcf Total Natural Gas Purchased Outside of Michigan 239,839,000
4. The following information for the reporting period with respect to claimant and each interest it holds directly or indirectly in an EWG or a foreign utility company, stating monetary amounts in United States dollars: (a) Name, location, business address and description of the facilities used by the EWG or foreign utility company for the generation, transmission and distribution of electric energy for sale or for the distribution at retail of natural or manufactured gas; NONE (b) Name of each system company that holds an interest in such EWG or foreign utility company; and description of the interest held; NONE (c) Type and amount of the capital invested, directly or indirectly, by the holding company claiming exemption; any direct or indirect guarantee of the security of the EWG or foreign utility company by the holding company claiming exemption; and any debt or other financial obligation for which there is recourse, directly or indirectly, to the holding company claiming exemption or another system company, other than the EWG or foreign utility company; NONE (d) Capitalization and earnings of the EWG or foreign utility company during the reporting period; and NONE (e) Identify any service, sales or construction contract(s) between the EWG or foreign utility company and a system company, and describe the services to be rendered or goods sold and fees or revenues under such agreement(s). NONE Exhibit A-1 Consolidating statement of income and surplus of Claimant and its subsidiary companies for the calendar year 2001, together with a consolidating balance sheet of Claimant and its subsidiary companies as of the close of such calendar year. Exhibit B- Not Applicable
The above-named Claimant has caused this statement to be duly executed on its behalf by its authorized officer on this 7th day of June, 2002. CONSUMERS ENERGY COMPANY A Michigan corporation [CORPORATE SEAL] By: /s/David A. Mikelonis . David A. Mikelonis Senior Vice President and General Counsel ATTEST: /s/Michael D. VanHemert Michael D. VanHemert Assistant Secretary Name, title, and address of officer to whom notices and correspondence concerning this Statement should be addressed: David A. Mikelonis Senior Vice President and General Counsel Consumers Energy Company 2123 West Michigan Avenue Jackson, Michigan 49201
EXHIBIT A A consolidating statement of income and surplus of Consumers Energy Company and its subsidiary companies for the last calendar year, together with a consolidating balance sheet of Consumers Energy Company and its subsidiary companies as of the close of such calendar year is attached. CONSUMERS ENERGY COMPANY Consolidating Statement of Income For the Year Ended December 31, 2001 (In Millions) Michigan CMS Consumers Electric Midland CMS Energy Transmission Consumers Holdings Midland Company Company Funding LLC Company Inc. Operating Revenue Electric $2,649 $82 $0 $0 $0 Gas 1,337 0 0 0 0 Other (1) 0 0 14 24 ---------------- --------------- -------------- ------------ ---------- ---------------- --------------- -------------- ------------ ---------- Total operating revenue 3,985 82 0 14 24 ---------------- --------------- -------------- ------------ ---------- ---------------- --------------- -------------- ------------ ---------- Operating Expenses Fuel for electric generation 330 0 0 0 0 Purchased power - related parties 604 0 0 0 0 Purchased and interchange Power 476 0 0 0 0 Cost of gas sold 707 0 0 0 0 Cost of gas sold- related parties 143 0 0 0 0 Loss on power purchases agreement- MCV Partnership 126 0 0 0 0 Other 621 27 0 0 0 Maintenance 199 10 0 0 0 Depreciation, depletion and amortization 328 8 0 0 2 General Taxes 181 4 0 0 0 ---------------- --------------- -------------- ------------ ---------- ---------------- --------------- -------------- ------------ ---------- Total operating expenses 3,715 49 0 0 2 ---------------- --------------- -------------- ------------ ---------- ---------------- --------------- -------------- ------------ ---------- Pretax Operating Income 270 33 0 14 22 ---------------- --------------- -------------- ------------ ---------- ---------------- --------------- -------------- ------------ ---------- Other Income (Deductions) Dividends and interest From affiliates 7 1 3 0 1 Accretion expense (10) 0 0 0 0 Other, net 56 0 0 0 0 ---------------- --------------- -------------- ------------ ---------- Total other income (deductions) 53 1 3 0 1 ---------------- --------------- -------------- ------------ ---------- ---------------- --------------- -------------- ------------ ---------- Interest Charges Interest on long-term debt 148 0 3 0 0 Other interest 88 0 0 0 0 Capitalized interest (6) 0 0 0 0 ---------------- --------------- -------------- ------------ ---------- ---------------- --------------- -------------- ------------ ---------- Net interest charges 230 0 3 0 0 ---------------- --------------- -------------- ------------ ---------- ---------------- --------------- -------------- ------------ ---------- Net Income (Loss) Before Income Taxes 93 34 0 14 23 Income Taxes 24 12 0 3 8 ---------------- --------------- -------------- ------------ ---------- ---------------- --------------- -------------- ------------ ---------- Net Income (Loss) Before Cumulative Effect of Change in Accounting 69 22 0 11 15 Principle Cumulative Effect of Change in Accounting for Derivative (11) 0 0 0 0 Instruments ---------------- --------------- -------------- ------------ ---------- ---------------- --------------- -------------- ------------ ---------- 58 22 0 11 15 Preferred Stock Dividends 2 0 0 0 0 Preferred Stock Distribution 0 0 0 0 0 ---------------- --------------- -------------- ------------ ----------
Michigan CMS Consumers Electric Midland CMS Energy Transmission Consumers Holdings Midland Company Company Funding LLC Company Inc. Net Income (Loss) Available To Common Stockholder 56 22 0 11 15 Dividends on Common Stock 190 0 0 0 0 ---------------- --------------- -------------- ------------ ---------- ---------------- --------------- -------------- ------------ ---------- Net Income (Loss) After Common Dividends $(134) $22 $0 $11 $15 ---------------- --------------- -------------- ------------ ----------
CONSUMERS ENERGY COMPANY Consolidating Statement of Income For the Year Ended December 31, 2001 (Continued) (In Millions) ES Consumers Consumers Consumers Consumers Services CMS MEC Power Energy Energy Energy Company Engineering Development Company Company Company Company (1) Company (2) Corporation Financing I Financing Financing III Financing (3) II IV Operating Revenue Electric $0 $0 $0 $0 $0 $0 $0 Gas 0 0 0 0 0 0 0 Other 5 1 0 0 0 0 0 ---------- -------------- --------------- -------------- ------------ --------------- ------------ ---------- -------------- --------------- -------------- ------------ --------------- ------------ Total operating revenue 5 1 0 0 0 0 0 ---------- -------------- --------------- -------------- ------------ --------------- ------------ ---------- -------------- --------------- -------------- ------------ --------------- ------------ Operating Expenses Fuel for electric generation 0 0 0 0 0 0 0 Purchased power - Related parties 0 0 0 0 0 0 0 Purchased and interchange Power 0 0 0 0 0 0 0 Cost of gas sold 0 0 0 0 0 0 0 Cost of gas sold- 0 0 0 0 0 0 0 Related parties Loss on power purchases agreement- MCV Partnership 0 0 0 0 0 0 0 Other 5 1 0 0 0 0 0 Maintenance 0 0 0 0 0 0 0 Depreciation, depletion and amortization 0 0 0 0 0 0 0 General Taxes 0 0 0 0 0 0 0 ---------- -------------- --------------- -------------- ------------ --------------- ------------ ---------- -------------- --------------- -------------- ------------ --------------- ------------ Total operating expenses 5 1 0 0 0 0 0 ---------- -------------- --------------- -------------- ------------ --------------- ------------ ---------- -------------- --------------- -------------- ------------ --------------- ------------ Pretax Operating Income 0 0 0 0 0 0 0 ---------- -------------- --------------- -------------- ------------ --------------- ------------ ---------- -------------- --------------- -------------- ------------ --------------- ------------ Other Income (Deductions) 0 0 0 0 0 0 0 Dividends and interest from affiliates 0 0 0 9 10 17 6 Accretion expense 0 0 0 0 0 0 0 Other, net 0 0 0 0 0 0 0 ---------- -------------- --------------- -------------- ------------ --------------- ------------ Total other income (deductions) 0 0 0 9 10 17 6 ---------- -------------- --------------- -------------- ------------ --------------- ------------ ---------- -------------- --------------- -------------- ------------ --------------- ------------ Interest Charges Interest on long-term debt 0 0 0 0 0 0 0 Other interest 0 0 0 0 0 0 0 Capitalized interest 0 0 0 0 0 0 0 ---------- -------------- --------------- -------------- ------------ --------------- ------------ ---------- -------------- --------------- -------------- ------------ --------------- ------------ Net interest charges 0 0 0 0 0 0 0 ---------- -------------- --------------- -------------- ------------ --------------- ------------ ---------- -------------- --------------- -------------- ------------ --------------- ------------ Net Income (Loss) Before Income Taxes 0 0 0 9 10 17 6 Income Taxes 0 0 0 0 0 0 0 ---------- -------------- --------------- -------------- ------------ --------------- ------------ ---------- -------------- --------------- -------------- ------------ --------------- ------------ Net Income (Loss) Before Cumulative Effect of Change in Accounting 0 0 0 9 10 17 6 Principle Cumulative Effect of Change in Accounting for Derivative 0 0 0 0 0 0 0 Instruments ---------- -------------- --------------- -------------- ------------ --------------- ------------
ES Consumers Consumers Consumers Consumers Services CMS MEC Power Energy Energy Energy Company Engineering Development Company Company Company Company (1) Company (2) Corporation Financing I Financing Financing Financing (3) II III IV Net Income (Loss) 0 0 0 9 10 17 6 Preferred Stock Dividends 0 0 0 0 0 0 0 Preferred Stock Distribution 0 0 0 9 10 16 6 ---------- -------------- --------------- -------------- ------------ ------------ ---------- ---------- -------------- --------------- -------------- ------------ ------------ ---------- Net Income (Loss) Available To Common Stockholder 0 0 0 0 0 1 0 Dividends on Common Stock 0 0 0 0 0 1 0 ---------- -------------- --------------- -------------- ------------ ------------ ---------- ---------- -------------- --------------- -------------- ------------ ------------ ---------- Net Income (Loss) After Common Dividends $0 $0 $0 $0 $0 $0 $0 ---------- -------------- --------------- -------------- ------------ ------------ ---------- (1) Net Income (Loss) After Common Dividends, not rounded to millions, is $22,868 (2) Net Income (Loss) After Common Dividends, not rounded to millions, is $(2,113) (3) Net Income (L0ss) After Common Dividends, not rounded to millions, is $(10)
CONSUMERS ENERGY COMPANY Consolidating Statement of Income For the Year Ended December 31, 2001 (Continued) (In Millions) Consumers Consumers InterCompany Consumers Energy Consumers Parnall Eliminations Energy Guard Nuclear Michigan Gas Holdings, Company Services Services, LLC Storage Company LLC (6) Consol. (4) (5) Operating Revenue Electric $0 $0 $0 $0 $(98) $2,633 Gas 0 0 21 0 (20) 1,338 Other 0 0 0 0 0 43 ------------ ---------------- ----------------- ------------ ------------ --------------- ------------ ---------------- ----------------- ------------ ------------ --------------- Total operating revenue 0 0 21 0 (118) 4,014 ------------ ---------------- ----------------- ------------ ------------ --------------- ------------ ---------------- ----------------- ------------ ------------ --------------- Operating Expenses Fuel for electric generation 0 0 0 0 0 330 Purchased power - Related parties 0 0 0 0 (61) 543 Purchased and interchange Power 0 0 0 0 0 476 Cost of gas sold 0 0 0 0 0 707 Cost of gas sold- Related parties 0 0 0 0 (20) 123 Loss on power purchases agreement- MCV Partnership 0 0 0 0 0 126 Other 0 0 9 0 (28) 635 Maintenance 0 0 3 0 (9) 203 Depreciation, depletion and amortization 0 0 1 0 0 339 General Taxes 0 0 2 0 0 187 ------------ ---------------- ----------------- ------------ ------------ --------------- ------------ ---------------- ----------------- ------------ ------------ --------------- Total operating expenses 0 0 15 0 (118) 3,669 ------------ ---------------- ----------------- ------------ ------------ --------------- ------------ ---------------- ----------------- ------------ ------------ --------------- Pretax Operating Income 0 0 6 0 0 345 ------------ ---------------- ----------------- ------------ ------------ --------------- ------------ ---------------- ----------------- ------------ ------------ --------------- Other Income (Deductions) 0 0 0 0 Dividends and interest from affiliates 0 0 0 0 (48) 6 Accretion expense 0 0 0 0 0 (10) Other, net 0 0 0 0 (51) 5 ------------ ---------------- ----------------- ------------ ------------ --------------- ------------ ---------------- ----------------- ------------ ------------ --------------- Total other income (deductions) 0 0 0 0 (99) 1 ------------ ---------------- ----------------- ------------ ------------ --------------- ------------ ---------------- ----------------- ------------ ------------ --------------- Interest Charges Interest on long-term debt 0 0 0 0 0 151 Other interest 0 0 0 0 (47) 41 Capitalized interest 0 0 0 0 0 (6) ------------ ---------------- ----------------- ------------ ------------ --------------- ------------ ---------------- ----------------- ------------ ------------ --------------- Net interest charges 0 0 0 0 (47) 186 ------------ ---------------- ----------------- ------------ ------------ --------------- ------------ ---------------- ----------------- ------------ ------------ --------------- Net Income (Loss) Before Income 0 0 6 0 (52) 160 Taxes Income Taxes 0 0 2 0 0 49 ------------ ---------------- ----------------- ------------ ------------ --------------- ------------ ---------------- ----------------- ------------ ------------ --------------- Net Income (Loss) Before Cumulative Effect of Change in Accounting 0 0 4 0 (52) 111 Principle Cumulative Effect of Change in Accounting for Derivative 0 0 0 0 0 (11) Instruments ------------ ---------------- ----------------- ------------ ------------ --------------- ------------ ---------------- ----------------- ------------ ------------ --------------- Net Income (Loss) 0 0 4 0 (52) 100 Preferred Stock Dividends 0 0 0 0 0 2 Preferred Stock Distribution 0 0 0 0 0 41 ------------ ---------------- ----------------- ------------ ------------ ---------------
Consumers Consumers InterCompany Consumers Energy Consumers Parnall Eliminations Energy Guard Nuclear Michigan Gas Holdings, Company Services Services, LLC Storage Company LLC (6) Consol. (4) (5) Net Income (Loss) Available To Common Stockholder 0 0 4 0 (52) 57 Dividends on Common Stock 0 0 0 0 (1) 190 ------------ ---------------- ----------------- ------------ ------------ --------------- ------------ ---------------- ----------------- ------------ ------------ --------------- Net Income (Loss) After Common Dividends $0 $0 $4 $0 $(51) $(133) ------------ ---------------- ----------------- ------------ ------------ --------------- ------------ ---------------- ----------------- ------------ ------------ --------------- (4) Net Income (Loss) After Common Dividends, not rounded to millions, is $(17,472) (5) Net Income (Loss) After Common Dividends, not rounded to millions, is $71,553 (6) Net Income (Loss) After Common Dividends, not rounded to millions, is $78,135
CONSUMERS ENERGY COMPANY Consolidating Balance Sheet Assets December 31, 2001 (In Millions) Michigan CMS Consumers Electric Midland CMS Energy Transmission Consumers Holdings Midland Company Company Funding LLC Company Inc. Plant (At original cost) Electric $7,211 $450 $0 $0 $0 Gas 2,475 0 0 0 0 Other 17 0 0 0 0 ------------ ------------- ----------------- ---------- ---------- ------------ ------------- ----------------- ---------- ---------- 9,703 450 0 0 0 Less accumulated depreciation, depletion and amortization 5,656 219 0 0 0 ------------ ------------- ----------------- ---------- ---------- ------------ ------------- ----------------- ---------- ---------- 4,047 231 0 0 0 Construction work-in-progress 429 29 0 0 0 ------------ ------------- ----------------- ---------- ---------- ------------ ------------- ----------------- ---------- ---------- 4,476 260 0 0 0 ------------ ------------- ----------------- ---------- ---------- ------------ ------------- ----------------- ---------- ---------- Investments Stock of affiliates 744 0 0 0 0 First Midland Limited Partnership 0 0 0 253 0 Midland Cogeneration Venture Limited Partnership 0 0 0 0 300 ------------ ------------- ----------------- ---------- ---------- ------------ ------------- ----------------- ---------- ---------- 744 0 0 253 300 ------------ ------------- ----------------- ---------- ---------- ------------ ------------- ----------------- ---------- ---------- Current Assets Cash and temporary cash Investments 6 0 4 0 2 Accounts receivable and accrued revenue 115 17 0 0 0 Accounts receivable - related parties 46 27 1 0 0 Notes receivable - related parties 0 0 16 0 10 Inventories at average cost - Gas in underground storage 569 0 0 0 0 Materials and supplies 63 6 0 0 0 Generating plant fuel stock 52 0 0 0 0 Prepaid property taxes 144 0 0 0 0 Regulatory assets 19 0 0 0 0 Other 4 10 0 0 0 ------------ ------------- ----------------- ---------- ---------- ------------ ------------- ----------------- ---------- ---------- 1,018 60 21 0 12 ------------ ------------- ----------------- ---------- ---------- ------------ ------------- ----------------- ---------- ---------- Non-current Assets Regulatory Assets Securitization costs 717 0 0 0 0 Postretirement benefits 206 0 0 0 0 Abandoned Midland project 12 0 0 0 0 Other 167 0 0 0 0 Nuclear decommissioning trust funds 581 0 0 0 0 Long-term notes receivables - related parties 0 0 453 0 0 Other 175 0 0 0 0 ------------ ------------- ----------------- ---------- ---------- ------------ ------------- ----------------- ---------- ---------- 1,858 0 453 0 0 ------------ ------------- ----------------- ---------- ---------- ------------ ------------- ----------------- ---------- ---------- Total Assets $8,096 $320 $474 $253 $312 -------------- ------------ ----------------- ---------- ----------
CONSUMERS ENERGY COMPANY Consolidating Balance Sheet Assets December 31, 2001 Continued (In Millions) MEC Consumers Consumers Consumers Consumers ES Development Power Energy Energy Energy Services CMS Corporation Company Company Company Company Company Engineering (2) Financing I Financing Financing Financing (1) II III IV Plant (At original cost) Electric $0 $0 $0 $0 $0 $0 $0 Gas 0 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 ---------- -------------- ------------ ------------ ------------ ------------- ------------ ---------- -------------- ------------ ------------ ------------ ------------- ------------ 0 0 0 0 0 0 0 Less accumulated depreciation, depletion and amortization 0 0 0 0 0 0 0 ---------- -------------- ------------ ------------ ------------ ------------- ------------ ---------- -------------- ------------ ------------ ------------ ------------- ------------ 0 0 0 0 0 0 0 Construction work-in-progress 0 0 0 ---------- -------------- ------------ ------------ ------------ ------------- ------------ ---------- -------------- ------------ ------------ ------------ ------------- ------------ 0 0 0 0 0 0 0 ---------- -------------- ------------ ------------ ------------ ------------- ------------ ---------- -------------- ------------ ------------ ------------ ------------- ------------ Investments Stock of affiliates 0 0 0 0 0 0 0 First Midland Limited Partnership 0 0 0 0 0 0 0 Midland Cogeneration Venture Limited 0 0 0 0 0 0 0 Partnership ---------- -------------- ------------ ------------ ------------ ------------- ------------ ---------- -------------- ------------ ------------ ------------ ------------- ------------ 0 0 0 0 0 0 0 ---------- -------------- ------------ ------------ ------------ ------------- ------------ ---------- -------------- ------------ ------------ ------------ ------------- ------------ Current Assets Cash and temporary cash Investments 1 0 0 0 0 0 0 Accounts receivable and accrued revenue 0 0 0 0 0 0 0 Accounts receivable - related parties 1 0 0 0 0 0 0 Notes receivable - related parties 0 0 0 0 0 0 0 Inventories at average cost- Gas in underground storage 0 0 0 0 0 0 0 Materials and supplies 0 0 0 0 0 0 0 Generating plant fuel stock 0 0 0 0 0 0 0 Regulatory assets 0 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 ---------- -------------- ------------ ------------ ------------ ------------- ------------ ---------- -------------- ------------ ------------ ------------ ------------- ------------ 2 0 0 0 0 0 0 ---------- -------------- ------------ ------------ ------------ ------------- ------------ ---------- -------------- ------------ ------------ ------------ ------------- ------------ Non-current Assets Regulatory Assets Securitization costs 0 0 0 0 0 0 0 Postretirement benefits 0 0 0 0 0 0 0 Abandoned Midland project 0 0 0 0 0 0 0 Other 0 0 0 0 0 0 0
MEC Consumers Consumers Consumers Consumers ES Development Power Energy Energy Energy Services CMS Corporation Company Company Company Company Company Engineering (2) Financing I Financing Financing Financing (1) II III IV Nuclear decommissioning trust funds 0 0 0 0 0 0 0 Long-term notes receivables- related parties 0 0 0 103 124 180 124 Other 0 0 0 0 0 0 0 ---------- -------------- ------------ ------------ ------------ ------------- ------------ ---------- -------------- ------------ ------------ ------------ ------------- ------------ 0 0 0 103 124 180 129 ---------- -------------- ------------ ------------ ------------ ------------- ------------ ---------- -------------- ------------ ------------ ------------ ------------- ------------ Total Assets $2 $0 $0 $103 $124 $180 $129 ------------ -------------- ------------ ------------ ---------- --------------- ---------- (1) Total Assets, not rounded to millions, is $316,385 (2) Total Assets, not rounded to millions, is $985
CONSUMERS ENERGY COMPANY Consolidating Balance Sheet Assets December 31, 2001 Continued (In Millions) Consumers Consumers InterCompany Consumers Energy Consumers Michigan Parnall Eliminations Energy Guard Nuclear Gas Holdings, Company Services Services, LLC Storage LLC Consol. (3) Company Plant (At original cost) Electric $0 $0 $0 $0 $0 $7,661 Gas 0 0 118 0 0 2,593 Other 0 0 0 6 0 23 ------------ -------------- ------------ ------------ ------------ ------------- ------------ -------------- ------------ ------------ ------------ ------------- 0 0 118 6 0 10,277 Less accumulated depreciation, depletion and amortization 0 0 59 0 0 5,934 ------------ -------------- ------------ ------------ ------------ ------------- ------------ -------------- ------------ ------------ ------------ ------------- 0 0 59 6 0 4,343 Construction work-in-progress 0 0 6 0 0 464 ------------ -------------- ------------ ------------ ------------ ------------- ------------ -------------- ------------ ------------ ------------ ------------- 0 0 65 6 0 4,807 ------------ -------------- ------------ ------------ ------------ ------------- ------------ -------------- ------------ ------------ ------------ ------------- Investments Stock of affiliates 0 2 0 0 (687) 59 First Midland Limited Partnership 0 0 0 0 0 253 Midland Cogeneration Venture Limited 0 0 0 0 0 300 Partnership ------------ -------------- ------------ ------------ ------------ ------------- ------------ -------------- ------------ ------------ ------------ ------------- 0 2 0 0 (687) 612 ------------ -------------- ------------ ------------ ------------ ------------- Current Assets Cash and temporary cash Investments 0 0 3 0 0 16 Accounts receivable and accrued revenue 0 0 0 0 (7) 125 Accounts receivable - related parties 0 0 2 0 (60) 17 Notes receivable - related parties 0 0 0 0 (26) 0 Inventories at average cost- Gas in underground storage 0 0 0 0 0 569 Materials and supplies 0 0 0 0 0 69 Generating plant fuel stock 0 0 0 0 0 52 Prepaid property taxes 0 0 0 0 0 144 Regulatory assets 0 0 0 0 0 19 Other 0 0 0 0 0 14 ------------ -------------- ------------ ------------ ------------ ------------- ------------ -------------- ------------ ------------ ------------ ------------- 0 0 5 0 (93) 1,025 ------------ -------------- ------------ ------------ ------------ ------------- ------------ -------------- ------------ ------------ ------------ ------------- Non-current Assets Regulatory Assets Securitization costs 0 0 0 0 0 717 Postretirement benefits 0 0 3 0 0 209 Abandoned Midland project 0 0 0 0 0 12 Other 0 0 0 0 0 167 Nuclear decommissioning trust funds 0 0 0 0 0 581 Long-term notes receivables- related parties 0 0 0 0 (989) 0 Other 0 0 1 0 0 176 ------------ -------------- ------------ ------------ ------------ ------------- ------------ -------------- ------------ ------------ ------------ ------------- 0 0 4 0 (989) 1,862 ------------ -------------- ------------ ------------ ------------ ------------- ------------ -------------- ------------ ------------ ------------ ------------- Total Assets $0 $2 $74 $6 $(1,769) $8,306 ------------ -------------- ------------ ------------ ------------ ------------- ------------ -------------- ------------ ------------ ------------ ------------- (3) Total Assets, not rounded to millions, is $69,786
CONSUMERS ENERGY COMPANY Consolidating Balance Sheet - Equity and Liabilities December 31, 2001 (In Millions) Michigan CMS CMS Consumers Electric Consumers Midland CMS ES Engineering Energy Transmission Funding LLC Holdings Midland Services Company (1) Company Company Company Inc. Company Capitalization Common Stockholders' Equity Common stock $841 $0 $0 $0 $0 $0 $0 Paid-in-capital 633 198 2 54 168 1 0 Revaluation capital 5 0 0 0 (8) 0 0 Retained earnings 372 22 0 35 137 0 0 ------------ ------------- ------------- --------- ---------- ---------- ------------ ------------ ------------- ------------- --------- ---------- ---------- ------------ 1,851 220 2 89 297 1 0 Preferred stock 44 0 0 0 0 0 0 Company-obligated mandatorily redeemable preferred securities of subsidiaries 0 0 0 0 0 0 0 Long-term debt 2,018 0 453 0 0 0 0 Intercompany long-term notes payable 989 0 0 0 0 0 0 Non-current portion of capital leases 56 0 0 0 0 ------------ ------------- ------------- --------- ---------- ---------- ------------ ------------ ------------- ------------- --------- ---------- ---------- ------------ 4,958 220 455 89 297 1 0 ------------ ------------- ------------- --------- ---------- ---------- ------------ ------------ ------------- ------------- --------- ---------- ---------- ------------ Current Liabilities Current portion of long-term debt and capital leases 240 0 16 0 0 0 0 Notes Payable 416 0 0 0 0 0 0 Intercompany notes payable 26 0 0 0 0 0 0 Accounts payable 293 0 0 0 0 0 0 Accrued taxes 213 11 0 4 (8) 0 0 Accounts payable - related Parties 117 18 0 0 0 Deferred income taxes 12 0 0 0 0 1 0 Other 256 0 3 0 0 0 0 ------------ ------------- ------------- --------- ---------- ---------- ------------ ------------ ------------- ------------- --------- ---------- ---------- ------------ 1,573 29 19 4 (8) 1 0 ------------ ------------- ------------- --------- ---------- ---------- ------------ ------------ ------------- ------------- --------- ---------- ---------- ------------ Non-current Liabilities Deferred income taxes 530 42 0 146 22 0 0 Postretirement benefits 276 0 0 0 0 0 0 Regulatory liabilities for income taxes, net 276 0 0 0 0 0 0 Power purchase agreement - MCV Partnership 169 0 0 0 0 0 0 Deferred investment tax credit 87 0 0 14 1 0 0 Other 227 29 0 0 0 ------------ ------------- ------------- --------- ---------- ---------- ------------ ------------ ------------- ------------- --------- ---------- ---------- ------------ 1,565 71 0 160 23 0 0 ------------ ------------- ------------- --------- ---------- ---------- ------------ Total Stockholders' Equity and Liabilities $8,096 $320 $474 $253 $312 2 0 ------------ ------------- ------------- --------- ---------- ---------- ------------ (1) Total Stockholders' Equity and Liabilities, not rounded to millions, is $316,385
CONSUMERS ENERGY COMPANY Consolidating Balance Sheet - Equity and Liabilities December 31, 2001 (In Millions) MEC Consumers Consumers Consumers Consumers Consumers Development Power Energy Energy Energy Energy Corporation Company Company Company Company Guard (2) Financing I Financing Financing Financing Services II III IV (3) Capitalization Common Stockholders' Equity Common stock $0 3 $4 $5 $4 $0 Paid-in-capital 0 0 0 0 0 0 Revaluation capital 0 Retained earnings 0 0 0 0 0 0 ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------ 0 3 4 5 4 0 Preferred stock 0 0 0 0 0 0 Company-obligated mandatorily redeemable preferred securities of 0 100 120 175 125 0 subsidiaries Long-term debt 0 0 00 0 0 0 Intercompany long-term notes payable 0 0 0 0 0 0 Non-current portion of 0 0 0 0 0 capital leases ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------ 0 103 124 180 129 0 ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------ Current Liabilities Current portion of long-term debt and capital leases 0 0 0 0 0 0 Notes Payable 0 0 0 0 0 0 Intercompany notes payable 0 0 0 0 0 0 Accounts payable 0 0 0 0 0 0 Accrued taxes 0 0 0 0 0 0 Accounts payable - related Parties 0 0 0 Deferred income taxes 0 0 0 0 0 0 Other 0 0 0 0 0 0 ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------ 0 0 0 0 0 0 ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------ Non-current Liabilities Deferred income taxes 0 0 0 0 0 0 Postretirement benefits 0 0 0 0 0 0 Regulatory liabilities for income taxes, net 0 0 0 0 0 0 Power purchase agreement - MCV Partnership 0 0 0 0 0 0 Deferred investment tax 0 0 0 0 0 0 credit Other 0 0 0 0 0 0 ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------ 0 0 0 0 0 0 ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------ Total Stockholders' Equity and Liabilities 0 103 124 180 129 0 ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------ ------------ (2) Total Stockholders' Equity and Liabilities, not rounded to millions, is $985 (3) Total Stockholders' Equity and Liabilities, not rounded to millions, is $69,786
CONSUMERS ENERGY COMPANY Consolidating Balance Sheet - Equity and Liabilities December 31, 2001 (In Millions) Consumers Michigan Consumers InterCompany Consumers Nuclear Gas Parnall Eliminations Energy Services, LLC Storage Holdings, Company Company LLC Consol. Capitalization Common Stockholders' Equity Common stock $0 $15 $0 $(31) $841 Paid-in-capital 2 0 4 (430) 632 Revaluation capital 0 0 7 4 Retained earnings 0 40 (233) 373 --------------- ------------ ------------ ------------ ------------ --------------- ------------ ------------ ------------ ------------ 2 55 4 (687) 1,850 Preferred stock 0 44 Company-obligated mandatorily redeemable preferred securities of 0 0 0 520 subsidiaries Long-term debt 0 0 1 0 2,472 Intercompany long-term notes payable 0 0 (989) 0 Non-current portion of 0 0 0 56 capital leases --------------- ------------ ------------ ------------ ------------ --------------- ------------ ------------ ------------ ------------ 2 55 5 (1,676) 4,942 --------------- ------------ ------------ ------------ ------------ --------------- ------------ ------------ ------------ ------------ Current Liabilities Current portion of long-term debt and capital leases 0 0 1 0 257 Notes Payable 0 0 0 0 416 Intercompany notes payable 0 0 0 (26) 0 Accounts payable 0 5 0 (7) 291 Accrued taxes 0 (1) 0 0 219 Accounts payable - related 4 Parties 0 0 0 (60) 80 Deferred income taxes 0 0 0 0 12 Other 0 1 0 0 260 --------------- ------------ ------------ ------------ ------------ --------------- ------------ ------------ ------------ ------------ 0 9 1 (93) 1,535 --------------- ------------ ------------ ------------ ------------ --------------- ------------ ------------ ------------ ------------ Non-current Liabilities Deferred income taxes 0 7 0 0 747 Postretirement benefits 0 3 0 0 279 Regulatory liabilities for income taxes, net 0 0 0 0 276 Power purchase agreement - MCV Partnership 0 0 0 0 169 Deferred investment tax 0 0 0 0 102 credit Other 0 0 0 0 256 --------------- ------------ ------------ ------------ ------------ --------------- ------------ ------------ ------------ ------------ 0 10 0 0 1,829 --------------- ------------ ------------ ------------ ------------ --------------- ------------ ------------ ------------ ------------ Total Stockholders' Equity and Liabilities $2 $74 $6 $(1,769) $8,306 --------------- ------------ ------------ ------------ ------------ --------------- ------------ ------------ ------------ ------------
CONSUMERS ENERGY COMPANY Consolidating Statement of Retained Earnings December 31, 2001 (In Millions) Michigan CMS Consumers Electric Midland CMS Energy Transmission Consumers Holdings Midland Company Company Funding LLC Company Inc. Balance at January 1, 2001 $506 $0 $0 $24 $122 Net Income (Loss) 58 22 0 11 15 Less Dividends Paid Common Stock 190 0 0 0 0 Preferred Stock 2 0 0 0 0 Preferred Securities Distributions 0 0 0 0 0 ------------ --------------- -------------- ------------ ------------ ------------ --------------- -------------- ------------ ------------ 192 0 0 0 0 ------------ --------------- -------------- ------------ ------------ ------------ --------------- -------------- ------------ ------------ Balance at December 31, 2001 $372 $22 $0 $35 $137 ------------ --------------- -------------- ------------ ------------
CONSUMERS ENERGY COMPANY Consolidating Statement of Retained Earnings December 31, 2001 Continued (In Millions) Consumers Consumers Consumers Consumers CMS MEC Power Energy Energy Energy ES Engineering Development Company Company Company Company Services Company (2) Corporation Financing I Financing Financing III Financing Company (1) (3) II IV Balance at January 1, 2001 0 0 0 0 0 0 0 Net Income (Loss) 0 0 0 9 10 17 6 Less Dividends Paid Common Stock 0 0 0 0 0 1 0 Preferred Stock 0 0 0 0 0 0 0 Preferred Securities Distributions 0 0 0 9 10 16 6 ------------ --------------- -------------- ------------ ------------ --------------- ------------ ------------ --------------- -------------- ------------ ------------ --------------- ------------ 0 0 0 9 10 17 6 ------------ --------------- -------------- ------------ ------------ --------------- ------------ ------------ --------------- -------------- ------------ ------------ --------------- ------------ Balance at December 31, 2001 $0 $0 $0 $0 $0 $0 $0 ------------ --------------- -------------- ------------ ------------ --------------- ------------ (1) Balance at December 31, 2001, not rounded to millions, is $ (27,274) (2) Balance at December 31, 2001, not rounded to millions, is $122,326 (3) Balance at December 31, 2001, not rounded to millions, is $(5,401)
CONSUMERS ENERGY COMPANY Consolidating Statement of Retained Earnings December 31, 2001 Continued (In Millions) Consumers Consumers Consumers Consumers Energy Nuclear Michigan Gas Parnall Energy Guard Services, LLC Storage Holdings, Intercompany Company Services (5) Company LLC (6) Eliminations Consol. (4) Balance at January 1, 2001 0 0 36 0 $(182) $506 Net Income (Loss) 0 0 4 9 (52) 100 Less Dividends Paid Common Stock 0 0 0 0 (1) 190 Preferred Stock 0 0 0 0 0 2 Preferred Securities Distributions 0 0 0 9 0 41 ------------ --------------- -------------- ------------ -------------- ------------- ------------ --------------- -------------- ------------ -------------- ------------- 0 0 0 9 (1) 233 ------------ --------------- -------------- ------------ -------------- ------------- ------------ --------------- -------------- ------------ -------------- ------------- Balance at December 31, 2001 $0 $0 $40 $0 $(233) $373 ------------ --------------- -------------- ------------ -------------- ------------- ------------ --------------- -------------- ------------ -------------- ------------- (4) Balance at December 31, 2001, not rounded to millions, is $(52,319) (5) Balance at December 31, 2001, not rounded to millions, is $71,553 (6) Balance at December 31, 2001, not rounded to millions, is $78,135