EX-99.1 2 k49607exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
Barclays Capital Energy/Power Conference September 15, 2010 Thomas J. Webb Executive Vice President and CFO Growing Forward

 

This presentation contains "forward-looking statements" as defined in Rule 3b-6 of the Securities Exchange Act of 1934, as amended, Rule 175 of the Securities Act of 1933, as amended, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. They should be read in conjunction with "FORWARD-LOOKING STATEMENTS AND INFORMATION" and "RISK FACTORS" sections of CMS Energy's and Consumers Energy's Form 10-K for the year ended December 31 and as updated in subsequent 10-Qs. CMS Energy's and Consumers Energy's "FORWARD-LOOKING STATEMENTS AND INFORMATION" and "RISK FACTORS" sections are incorporated herein by reference and discuss important factors that could cause CMS Energy's and Consumers Energy's results to differ materially from those anticipated in such statements. The presentation also includes non-GAAP measures when describing CMS Energy's results of operations and financial performance. A reconciliation of each of these measures to the most directly comparable GAAP measure is included in the appendix and posted on our website at www.cmsenergy.com. CMS Energy expects 2010 reported earnings to be about the same as adjusted earnings. Reported earnings could vary because of several factors. CMS Energy is not providing reported earnings guidance reconciliation because of the uncertainties associated with those factors.

 

Consumers Energy Transformation . . . . Raised common dividend 40% Reduced five-year investment plan to $6.4 billion Filed new Gas Rate Case requesting $55 million increase Completed Utility financing requirements Ludington Pumped Storage B C Cobb J H Campbell D E Karn J C Weadock J R Whiting Mio Alcona Cooke Foote Loud 5 Channels Hodenpyl Tippy Rogers Hardy Croton Webber Allegan Electric Gas Combination Recent Highlights Territory . . . . back to Utility complete; investment plan strong. Zeeland Plant

 

Regulatory Timeline . . . . . . . . well into second year under new, comprehensive Michigan energy law. "Cushion" 2009 2010 2010 2010 2010 2010 2010 2010 2010 2010 2011 Fourth Quarter First Quarter First Quarter First Quarter Second Quarter Third Quarter Fourth Quarter Fourth Quarter First Quarter 2009 & 2010 Gas Rate Cases U-15986 & U-16418 Self-implemented $89 M Final Order $66 M Filed $55 M Self implement 2010 Electric General Rate Case U-16191 Filed $178 M Filed $178 M Filed $178 M MPSC Staff $90 M Self-implemented $150 M Final Order Final Order Big Rock Point U-15611 $85 M refund $85 M refund $85 M refund $85 M refund $85 M refund 2009 Electric Rate Case U-15645 $16 M refund Electric Decoupling Reconciliation U-15645 File

 

Electric Sales Trend (weather adjusted) . . . . First Second Third Fourth First Second Second Half Industrial Sales -0.1 -0.12 -0.04 0.03 0.12 0.12 0.04 Total Sales 0.01 0.02 0.04 0.03 -0.01 Industrial Sales . . . . continues to improve in our service territory, led by industrial customers. Total 2009 2010 Year over Year Comparison by Quarter First Second Third Fourth First Second Second Half Total sales -0.04 -0.06 -0.03 0.01 0.02 0.04 0.01 Total Sales 0.01 0.02 0.04 0.03 -0.01 2009 2010 Forecast Forecast

 

Plan Increases Certainty . . . . . . . . for shareowners, with stronger dividend yield in projected "TSR" mix. New Plan 2011-2015 Prior Plan Investment (bils) $6.4 $7.2 EPS annual growth Dividend yield Projected Total Shareholder Return (TSR) 5% - 7% 5 10% - 12% 6% - 8% 4 10% - 12% Operating cash flow growth (mils) ^ $100 >$100 Avoided new common equity Five years Few years Parent debt net of cash (bils) $1.8 $1.7 $1.8 $1.6 Customer rate increases (excluding fuel) 2% 3% _ _ _ _ _ a At a $17 stock price a

 

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 History 0.81 0.9 0.96 1.08 0.84 1.21 1.26 2009 Plan 1.35 1.43 1.5 1.58 1.68 1.77 Earnings Per Share (adjusted non-GAAP) . . . . New Plan (5% - 7% Growth) (2010-15) Prior Plan (6% - 8% Growth) (2010-15) . . . . growth track record continues. 2003 - 2009 8% Growth Dividend Annual ¢/share _ _ _ _ _ a $1.25 excluding discontinued Exeter operations and accounting changes related to convertible debt and restricted stock b Pre increase b

 

Operating Cash Flow Growth . . . . . . . . driven by investment growth. 2008 2009 2010 2011 2012 2013 2014 2015 CF after Capex -598 39 -22 20 -76 -31 -326 -144 73 160 220 325 479 384 497 271 CF after dividends 756 726 790 676 814 898 1032 987 CF after working capital 81 113 137 166 184 210 230 250 CF after interest 698 44 138 165 82 141 278 452 Operating cash flow 335 362 355 379 400 417 456 505 Amount (bils) $ Operating cash flow a up $0.1 billion per year $1.9 Interest Working capital and taxes Base Investment $1.3 $1.6 $1.7 $1.8 $1.5 $2.0 Cash flow before dividend Investment choices _ _ _ _ _ a Non-GAAP Prior Plan

 

Need for New Common Equity . . . . . . . . deferred through Plan period. 2011 2012 2013 2014 New Common Equity Old Plan 0 Add New Plan 0 0 0 0 Remaining Tax Cash Benefits (bils) $0.4 $0.3 $0.2 $0.1 Cash Flow Better/(Worse) than Old Plan $0.1 $0.2 $0.3 $0.2

 

CMS Cash Flow and Liquidity . . . . . . . . strong relative to peers. Available Liquidity b as a Percentage of Market Cap (at 7-20) 2010E-2011E Cash Flow as a Percentage of Market Cap (at 7-20) 0.06 -0.04 -0.04 -0.07 -0.08 -0.11 -0.12 -0.12 CMS -0.13 Source: JPMorgan _ _ _ _ _ a Top quartile for 2007-2009 actuals a Peer median: -16.6% 0.55 0.544 0.534 CMS 0.432 Peer median: 22% _ _ _ _ _ b As of March 31, 2010 Q1 Q2 Q3 Q4

 

Electric Rate Increases (average annual) . . . . . . . . moderated for customers - down from prior years and prior plan. 2007-2009 2010-2015 Fuel (including CO2) 4 3 Base 3 2 1 7% 5% New Fuel Base 6% Prior

 

Investment Timing . . . . . . . . optimized to include best projects. Renewables Smart Grid Environmental Maintenance Customer Growth Energy Optimization Electric Reliability and Other Gas Compression and Pipeline 0.7 0.3 1.4 2.7 0.3 0.4 0.4 0.2 2011-2015 Investment Plan $6.4 Billion 2011 2012 2013 2014 2015 1 1.3 1.3 1.5 1.3 Investment Plan by Year $6.4 Billion

 

Renewables Smart Grid Environmental Maintenance Customer Growth Energy Optimization Electric Reliability and Other Gas Compression and Pipeline 0.7 0.3 1.4 2.7 0.3 0.4 0.4 0.2 2011-2015 Investment Plan Renewable Energy Plans . . . . . . . . increase renewables from 4% to 8% in 2012. ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ Existing Renewable Facilities Proposed Company-owned Wind Facilities New Power Purchase Agreements (243 MW) ^ Cross Winds Energy Park Lake Winds Energy Park 100 MW 2012

 

Renewables Smart Grid Environmental Maintenance Customer Growth Energy Optimization Electric Reliability and Other Gas Compression and Pipeline 0.7 0.3 1.4 2.7 0.3 0.4 0.4 0.2 Revised Smart Grid Deployment . . . . Total project cost $750 million; down from $920 million Meter deployment begins late 2011; nearly one year earlier Removed deployment of gas only meters Minimize upfront IT system cost by installing only basic functionality Expanded functions installed later Improved ability to scale plan . . . . improves overall financial viability. 2011-2015 Investment Plan Billing Customer Information Outage Management Work and Asset Management Enterprise Applications MDM/MDUS

 

Renewables Smart Grid Environmental Maintenance Customer Growth Energy Optimization Electric Reliability and Other Gas Compression and Pipeline 0.7 0.3 1.4 2.7 0.3 0.4 0.4 0.2 Environmental Expenditures . . . . . . . . recovered costs in customer rates. Select catalytic reduction Spray dry absorbers Fabric filters 2011-2015 Investment Plan

 

Renewables Smart Grid Environmental Maintenance Customer Growth Energy Optimization Electric Reliability and Other Gas Compression and Pipeline 0.7 0.3 1.4 2.7 0.3 0.4 0.4 0.2 Maintenance Expenditures . . . . . . . . necessary to meet customer demand. Maintain electric distribution lines, substations, and transformers Replace aging electric distribution equipment Pipeline inspection and replacement Maintain gas storage fields capacity 2011-2015 Investment Plan

 

New Investment Plan . . . . reduces risk. 2008 2009 2010 2011 2012 2013 2014 2015 Depreciation 7.851 8.729 9.2 9.7 9.196 8.65 8.164 7.661 7.169 Maintenance 0.55 1.049 1.554 2.107 2.691 Customer growth 0.057 0.116 0.179 0.246 0.317 Environmental 0.125 0.311 0.598 0.941 1.294 Gas compression and pipelines 0.07 0.125 0.153 0.167 0.18 Smart Grid 0.052 0.121 0.196 0.259 0.329 Energy optimization 0.028 0.093 0.168 0.244 0.32 Electric reliability and other environmental 0.073 0.156 0.254 0.351 0.438 Renewables 0.045 0.175 0.331 0.52 0.656 5%-7% Bils $ Present Rate Base 2010 2011 2012 2013 2014 2015 Average Rate Base (bils) $10.2 $10.8 $11.6 $12.5 $13.4 0 Rate Base 2011 - 2015 Capital Investment . . . . Five-Year Plan (bils) Prior Plan (2010-14) $ 7.2 "Coal" deferred $ - 1.0 Smart Grid rollout - 0.4 Renewables accelerated + 0.1 Distribution + 0.2 Generation & Plan period + 0.3 Change $ - 0.8 New Plan (2011-15) $ 6.4 ?

 

Risk Mitigation through 2008 Energy Law Supply Renewable energy plan Energy optimization Retail open access cap Certificate of Necessity process Ratemaking File and implement ratemaking Forward test year Decoupling Uncollectibles tracker ? ? ? ? ? ? Law Implementation ? ? ? N/A ? ? Law mitigated several key risks. Implementation underway. ? ? ? ?

 

Utility Risk Mitigation . . . . . . . . enhanced with decoupling and new electric "UA" tracker. Electric Gas Not Tracked Revenue 0.61 0.37 0.02 $6.1 Billion a Sales E&G Not Tracked 21% PSCR GCR E&G tracked East 33 28 36 3 PSCR 33% GCR 28% Electric & Gas Not Tracked 36% $5.5 Billion a Cost Electric & Gas Tracked 3% _ _ _ _ _ a Estimated 2010

 

Plan Solidly . . . . 2010 Target Adjusted EPS a $1.35 Operating cash flow a (bils) 1.4 Capital structure (year-end) FFO / Average debt 16% Parent debt (bils) b $1.8 Utility equity ratio c 48% Dividend + 40% Long Term EPS growth 5% - 7% Operating cash flow growth a (mils) ^$100 per year _ _ _ _ _ a Non-GAAP b Net of cash c Financial, excluding securitization and Palisades financing obligation . . . . on track. ? ? ? ? ?

 

Key Takeaways . . . . . . . . continued track record of strong results. Utility investment - visible: EPS growth of 5%-7% annually Operating cash flow growth of ^$100 million annually NOLs - avoid new equity Regulatory framework -- constructive Risks -- mitigated Total Shareowner Return: EPS 5% - 7% Dividend 5 TSR 10% - 12%

 

Appendix

 

(GRAPHIC)
ELECTRIC RATE CASE U-16191*
On January 22, 2010, Consumers Energy filed an application with the Michigan Public Service Commission seeking an increase of $178 million in its electric generation and distribution rates based on a test year of 12 months ending June 2011. On June 10, 2010, the MPSC staff filed a recommendation of $90 million based on a 10.35% ROE. The Staff suggested that its recommendation be adjusted upward by $25 million if the Company’s requested economic development sales tracker is not adopted by the Commission. The Staff also suggested that cap ex placed in service in 2011 be deferred for future recovery, rather than included in customer rates at this time. The Company plans to self implement a rate increase of $150 million, and filed a tariff sheet supporting this increase on July 13. The Commission approved the Company’s request and the self implemented rate increase will become effective on July 22, 2010. Below is a comparison of the Company’s self implemented amount to the MPSC Staff’s filed position.
                             
    Company             Company      
    Self     MPSC     B/(W)      
    Implement     Staff     Staff      
Item   (Mils)     (Mils)     (Mils)     Remarks
1.O&M
   $ 21     $ 25     $ (4 )   Corporate restructuring: ($18) O&M savings
 
                           Technology: $8 Staff update for 2009
 
                           Corporate: $4 NEIL refund
 
                           DOE Liability Interest: $2
 
                            
2. Gross Margin
     5       4       1     Miscellaneous revenues
 
                            
3. Investment
     106       80       26     Net Plant: $25 2011 Capex
 
                           Working Capital: $6
 
                           Depreciation expense: $6
 
                           Taxes: ($5)
 
                           AFUDC: ($6)
 
                            
4. Cost of Capital
     18       (19 )     37     Return on equity (11% vs 10.35%): $30
 
                           Capital structure: $9 Increased deferred taxes
 
                           Debt costs: ($2)
 
                      
Total
   $ 150     $ 90     $ 60      
 
                      
                         
Ratemaking   Existing   Consumers   MPSC
Capital Structure %   (U-15645)   Filing   Staff Filing
Long Term Debt
     44.80 %     41.77 %     40.62 %
Short Term Debt
     0.78       1.51       1.51  
Preferred Stock
     0.48       0.44       0.44  
Common Equity
     40.51 (1)     41.49 (2)     41.59 (3)
Deferred FIT
     12.80       14.26       15.30  
JDITC/Other
     0.63       0.53       0.54  
 
                        
 
     100.00 %     100.00 %     100.00 %
 
                        
 
(1)   Equivalent to 47.23% on a financial basis
 
(2)   Equivalent to 49.57% on a financial basis
 
(3)   Equivalent to 50.32% on a financial basis
                         
Rate Base and Return   Existing   Consumers   MPSC
Percentage   (U-15645)   Self Implement   Staff Filing
Rate Base ($ billions)
   $ 6.16     $ 6.97     $ 6.69  
Return on Rate Base
     6.98 %     7.16 %     6.83 %
Return on Equity
     10.70 %     11.00 %     10.35 %
ELECTRIC RATE CASE SCHEDULE
     
Self Implement Rate Increase – $150 million
  July 22, 2010
Cross of all Witnesses
  July 15 – 28, 2010
Initial Briefs
  August 26, 2010
Reply Briefs
  September 16, 2010
Proposal for Decision
  No PFD – Commission will read the record.
Decision
  By January 20, 2011 (expected in fourth quarter)
 
*   Electric Rate Case U-16191 can be accessed at the Michigan Public Service Commission’s website. http://efile.mpsc.cis.state.mi.us/efile/electric.html
Appendix-1

 

 

(GRAPHIC)
GAS RATE CASE U-16418*
On August 13, 2010, Consumers Energy filed an application with the Michigan Public Service Commission seeking an increase in its gas delivery and transportation rates based on a 2011 test year. The Company requests an authorized ROE of 11%, and proposes a full decoupling mechanism, including weather. If approved, this request would add about $2.95 per month, or about 3.4%, to the typical residential customer’s average monthly bill. The $55 million revenue deficiency is detailed below.
             
Item   $ Millions     Explanation
1. O&M
   $ 16     Gas operations expense: $13
 
           Lost & unaccounted for and company use gas: $3
 
            
2. Margin
     4     Miscellaneous revenues
 
            
3. Investment
     30     Net plant: $19
 
           Working capital: $(2)
 
           Depreciation and property taxes: $10
 
           Taxes, AFUDC and other: $3
 
            
4. Cost of Capital
     5     Return on equity: $8 (11.00% vs 10.55%)
 
           Capital structure and lower debt costs: $(3)
 
          
Total
   $ 55      
 
          
                                 
Ratemaking   Existing   As Filed           After-Tax
Capital Structure   (U-15986)   Percent of Total   Annual Cost   Weighted Costs
Long Term Debt
     43.58 %     41.86 %     5.95 %     2.49 %
Short Term Debt
     0.59       1.82       3.46       0.06  
Preferred Stock
     0.46       0.42       4.46       0.02  
Common Equity
     40.78       40.51 (1)     11.00       4.46  
Deferred Taxes
     13.30       14.33       0.00       0.00  
JDITC/Other
     1.29       1.06       6.67       0.07  
 
                                
 
     100.00 %     100.00 %             7.10 %
 
                                
                 
    Existing    
Rate Base and Return Percentage   (U-15986)   As Filed
Rate Base ($ billions)
   $ 2.74     $ 2.90  
Return on Rate Base
     7.02 %     7.10 %
Return on Equity
     10.55 %     11.00 %
 
(1)   Equivalent to 48.93% on financial basis.
 
*   Gas Rate Case U-16418 can be accessed at the Michigan Public Service Commission’s website. http://efile.mpsc.cis.state.mi.us/efile/gas.html
Appendix-2

 

 

Electric Customer Base Diversified . . . . Hemlock Semiconductor General Motors Pfizer Incorporated Meijer Incorporated Delphi Corporation State of Michigan WalMart Stores Dow Corning Corporation Packaging Corporation of America Spartan Stores Percent of 2009 electric gross margin is 4% Top Ten Customers Residential Commercial Autos Industrial Other (including ROA) 0.46 0.33 0.02 0.12 0.07 $1.6 Billion . . . . "Autos" only 2% of gross margin. 2009 Electric Gross Margin Appendix-3

 

Capacity Fuel Mix - 2009 Consumers Energy Coal Gas Nuclear Renewables Pumped Storage Oil Purchases Other 2009 0.5 0.25 0.08 0.03 0.02 0.05 0.04 0.03 Midwest ISO Diversified fuel mix minimizes risk and optimizes cost. Coal Gas Nuclear Renewables Pumped Storage Oil Purchases 2009 0.34 0.34 0.09 0.03 0.11 0.08 0.01 Appendix-4

 

Uncollectible Writeoffs Trend . . . . . . . . expected to subside in 2010. Millions $ 2006 2007 2008 2009 2010 Forecast Net of Tracker 47 51 Net Charge-offs 27.4 29.6 41.5 43 46 Bankruptcies 3 2.6 4.1 10 6 Net of Tracker $30 $32 $46 $47 $51 (Electric and Gas Businesses) Appendix-5

 

2010 Sensitivities . . . . _ _ _ _ _ a Decoupled excluding weather * Less than 0.5¢ or $500,000 . . . . mitigated by decoupling and electric "UA" tracker. Annual Impact (w/trackers) Annual Impact (w/trackers) Annual Impact (w/trackers) Sensitivity EPS FCF (mils) Sales (weather adjusted) Electric (36,900 Gwh) Gas (282.1 Bcf) + 1% + 3% Decoupled + $0.04 a + $15 + 15 Gas prices + $0.50 * 15 Uncollectible accounts - gas (mils) + $5 0.01 5 ROE Electric Gas + 50 bps + 50 bps + 0.06 + 0.02 + 25 + 10 Stock price (dilution) + $1 share 0.01 0 + + + + Appendix-6

 

MATURITY SCHEDULE OF CMS AND CECO LONG-TERM DEBT & PREFERRED SECURITIES
AS OF 07/31/2010
Reflects 7/15/10 payment of $563K of IQ Notes survivors’ option puts (CECo)
                         
        Maturity     Amount      
F/V   S/U   or Call Date     (000’s)     DEBT/ CO
SHORT-TERM DEBT:            
 
                        
F
   U     08/01/10     $ 67,291     7.75% Sr Unsec Notes (CMS)
F
   U     04/15/11       213,653     8.5% Sr Notes (CMS)
F
   U     SHORT-TERM     139,730     *3.375% Convertible Sr Notes (Next Put Date 07/15/13) (CMS)
 
                      
 
               $ 420,674      
 
                        
LONG-TERM DEBT:            
F
   U     12/01/11     $ 287,500     *2.875% Convertible Sr Unsec Notes Put Date (CMS)
 
                      
 
               $ 287,500      
F
   U     02/01/12     $ 150,000     6.3% Senior Notes (CMS)
F
   S     02/15/12       300,000     5% Series L FMBs (CECo)
 
                      
 
               $ 450,000      
V
   U     01/15/13     $ 150,000     Floating Rate Sr Notes (CMS)
F
   S     04/15/13       375,000     5.375% Series B FMBs (CECo)
 
                      
 
               $ 525,000      
F
   S     02/15/14     $ 200,000     6% FMBs (CECo)
F
   U     06/15/14       172,500     5.5% Convertible Sr Notes Put Date (CMS)
F
   S     03/15/15       225,000     5% FMBs Series N (CECo)
F
   U     12/15/15       125,000     6.875% Sr Notes (CMS)
F
   S     08/15/16       350,000     5.5% Series M FMBs (CECo)
F
   S     02/15/17       250,000     5.15% FMBs (CECo)
F
   U     07/17/17       250,000     6.55% Sr Notes (CMS)
F
   S     03/01/18       180,000     6.875% Sr Notes (CECo)
V
   S     04/15/18       67,700     VRDBs to replace PCRBs (CECo)
F
   S     09/15/18       250,000     5.65% FMBs (CECo)
F
   S     03/15/19       350,000     6.125% FMBs (CECo)
F
   U     06/15/19       300,000     8.75% Sr Notes (CMS)
F
   S     09/15/19       500,000     6.70% FMBs (CECo)
F
   U     2/1/2020       300,000     6.25% Sr Notes (CMS)
F
   S     04/15/20       300,000     5.65% FMBs (CECo)
F
   U     07/15/27       28,667     QUIPS 7.75%(CMS) Pref Sec
V
   S     04/01/35       35,000     PCRBs (CECo)
F
   S     04/15/35       136,676     5.65% FMBs IQ Notes (CECo)
F
   S     09/15/35       175,000     5.80% FMBs (CECo)
 
                      
 
               $ 4,195,543      
 
                      
 
               $ 5,878,717     TOTAL
 
                      
 
                        
 
               $ 5,850,050     TOTAL EXCLUDING PREFERRED SECURITIES
 
                      
 
                        
 
         Various Maturity Dates/No Maturity Date Available:
 
               $ 218,085     CECo Securitization Bonds (Long-Term & Short-Term) after 07/20/10 payment
 
                 220,977     CECo Capital lease rental commitments (Long-Term & Short-Term) as of 06/30/10
 
                 162,922     CECo DOE Liability as of 07/31/10
 
                 280,040     EnerBank (Long-Term & Short-Term) Discount Brokered CDs as of 06/30/10 (CMS)
 
                 (33,090 )   CMS Net unamortized discount as of 06/30/10
 
                 (4,512 )   CECo Net unamortized discount as of 06/30/10
 
                      
 
                        
 
               $ 6,723,137     GRAND TOTAL
 
                      
 
* —    Date that issue can be put to the Company is used instead of maturity date
            Status Codes: F-Fixed rate; V-Variable rate; S-Secured; U-Unsecured
Appendix-7

 

 

GAAP Reconciliation

 

CMS Energy
Earnings Reconciliation By Quarter and Year
December 31
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
                                         
    Unaudited Quarters  
(millions, except per share amounts)   1Q03     2Q03     3Q03     4Q03     FY 2003  
 
Reported net income
   $ 82     $ (65 )   $ (69 )   $ 8     $ (44 )
 
After-tax items:
                                        
Electric and gas utility other
                             30       30  
Enterprises other
     5       7       62       37       111  
Corporate other
     1               19       4       24  
Discontinued operations
     (31 )     53       (2 )     (43 )     (23 )
Cumulative accounting changes
     24                               24  
 
Ongoing earnings (non-GAAP)
   $ 81     $ (5 )   $ 10     $ 36     $ 122  
 
 
                                        
Average shares outstanding, basic
     144.1       144.1       152.2       161.1       150.4  
 
                                        
Average shares outstanding, diluted
     165.0       144.1       152.2       161.1       150.4  
 
                                        
 
Reported earnings per share
   $ 0.52     $ (0.45 )   $ (0.46 )   $ 0.05     $ (0.30 )
 
After-tax items
                                        
Electric and gas utility other
                             0.19       0.21  
Enterprises other
     0.03       0.05       0.41       0.23       0.74  
Corporate other
                     0.12       0.02       0.16  
Discontinued operations
     (0.19 )     0.37       (0.01 )     (0.27 )     (0.16 )
Cumulative accounting changes
     0.14                               0.16  
 
Ongoing earnings per share (non-GAAP)
   $ 0.50     $ (0.03 )   $ 0.06     $ 0.22     $ 0.81  
 
Note:   Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.

2003 A-1

 

 

CMS Energy
Earnings Reconciliation By Quarter and Year
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
                                         
    Unaudited     31-Dec  
(millions, except per share amounts)   1Q04*     2Q04     3Q04     4Q04     FY 2004  
       
Reported net income — GAAP
   $ (9 )   $ 16     $ 56     $ 47     $ 110  
       
After-tax items:
                                        
Electric and gas utility other
                             (67 )     (67 )
Enterprises other
     88               (29 )     48       107  
Corporate other
     (7 )             (1 )     1       (7 )
Discontinued operations
     2               (8 )     10       4  
Cumulative accounting changes
     2                               2  
       
Adjusted earnings, including M-T-M
   $ 76     $ 16     $ 18     $ 39     $ 149  
Mark-to-market impacts
   NM       (13 )     9       9       5  
       
Adjusted earnings, excluding M-T-M
   $ 76     $ 3     $ 27     $ 48     $ 154  
       
 
                                        
Average shares outstanding, basic
     161.1       161.2       161.5       190.2       168.6  
 
                                        
Average shares outstanding, diluted
     161.1       164.2       165.0       194.0       172.1  
 
                                        
       
Reported earnings per share — GAAP
   $ (0.06 )   $ 0.10     $ 0.34     $ 0.24     $ 0.64  
       
After-tax items
                                        
Electric and gas utility other
                             (0.35 )     (0.39 )
Enterprises other
     0.56               (0.17 )     0.25       0.62  
Corporate other
     (0.05 )             (0.01 )     0.01       (0.03 )
Discontinued operations
     0.01               (0.05 )     0.05       0.02  
Cumulative accounting changes
     0.01                               0.01  
       
 
                                        
Adjusted earnings per share, including M-T-M
   $ 0.47     $ 0.10     $ 0.11     $ 0.20     $ 0.87  
Mark-to-market impacts
   NM       (0.08 )     0.06       0.05       0.03  
       
 
                                        
Adjusted earnings per share, excluding M-T-M
   $ 0.47     $ 0.02     $ 0.17     $ 0.25     $ 0.90  
       
Note:   Year-to-date & full-year EPS may not equal sum of quarters due to share count differences.
 
*   Quarterly amounts differ from amounts previously reported due to accelerating the measurement date on our benefit plans by one month and the remeasurement of our post retirement obligation.
 
NM:   Not meaningful.

2004 A-1

 

 

CMS Energy
Earnings Reconciliation By Quarter and Year
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
                                         
    Unaudited     31-Dec  
(millions, except per share amounts)   1Q05     2Q05     3Q05     4Q05     FY 2005  
       
Reported net income — GAAP
   $ 150     $ 27     $ (265 )   $ (6 )   $ (94 )
       
After-tax items:
                                        
Electric and gas utility other
                                        
Enterprises other
     (2 )     (1 )     (1 )     13       9  
Corporate other
             1               8       9  
Discontinued operations
                             (14 )     (14 )
Asset impairment
                     385               385  
       
Adjusted earnings, including M-T-M
   $ 148     $ 27     $ 119     $ 1     $ 295  
Mark-to-market impacts
     (75 )     19       (75 )     40       (91 )
       
Adjusted earnings, excluding M-T-M
   $ 73     $ 46     $ 44     $ 41     $ 204  
       
 
                                        
Average shares outstanding, basic
     195.3       217.9       219.6       218.5       211.8  
 
                                        
Average shares outstanding, diluted
     206.3       228.9       219.6       218.5       211.8  
 
                                        
       
Reported earnings per share — GAAP
   $ 0.74     $ 0.12     $ (1.21 )   $ (0.03 )   $ (0.44 )
       
After-tax items
                                        
Electric and gas utility other
                                        
Enterprises other
     (0.01 )   NM   NM     0.06       0.04  
Corporate other
           NM             0.03       0.04  
Discontinued operations
                             (0.06 )     (0.07 )
Asset impairment
                     1.75               1.82  
       
Adjusted earnings per share, including M-T-M
   $ 0.73     $ 0.12     $ 0.54     $ 0.00     $ 1.39  
Mark-to-market impacts
     (0.36 )     0.08       (0.34 )     0.19       (0.43 )
       
Adjusted earnings per share, excluding M-T-M
   $ 0.37     $ 0.20     $ 0.20     $ 0.19     $ 0.96  
       
Note: Year-to-date & full-year EPS may not equal sum of quarters due to share count differences.

2005 A-1

 

 

CMS Energy
Earnings Reconciliation By Quarter and Year
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
                                         
    Unaudited        
    2006     2006  
(In millions, except per share amounts)   1Q     2Q     3Q     4Q     Dec YTD  
       
Reported net income — GAAP
   $ (27 )   $ 72     $ (103 )   $ (32 )   $ (90 )
       
After-tax items:
                                        
Electric and gas utility other
     —       —       —       —       —  
Enterprises other
     —       —       (29 )     25       (4 )
Corporate interest and other
     2       (15 )     4       82       73  
Discontinued operations (gain)
     (1 )     (2 )     (1 )     (2 )     (6 )
Asset impairment charges
     —       —       169       —       169  
       
Adjusted earnings, including MTM
   $ (26 )   $ 55     $ 40     $ 73     $ 142  
Mark-to-market impacts
     74       21       30       (13 )     112  
       
Adjusted earnings, excluding MTM
   $ 48     $ 76     $ 70     $ 60     $ 254  
       
 
                                        
Average shares outstanding, basic
     219.1       219.6       220.1       220.6       219.9  
Average shares outstanding, diluted
     219.1       229.6       220.1       220.6       219.9  
 
                                        
       
Reported earnings per share — GAAP
   $ (0.12 )   $ 0.31     $ (0.47 )   $ (0.15 )   $ (0.41 )
       
After-tax items
                                        
Electric and gas utility other
     —       —       —       —       —  
Enterprises other
     —       —       (0.13 )     0.11       (0.02 )
Corporate other
     0.01       (0.07 )     0.02       0.38       0.27  
Discontinued operations
     (0.01 )     (0.01 )     —       (0.01 )     (0.03 )
Asset impairment charges
     —       —       0.76       —       0.76  
       
Adjusted earnings per share, including MTM
   $ (0.12 )   $ 0.23     $ 0.18     $ 0.33     $ 0.57  
Mark-to-market impacts
     0.34       0.10       0.13       (0.06 )     0.51  
       
Adjusted earnings per share, excluding MTM
   $ 0.22     $ 0.33     $ 0.31     $ 0.27     $ 1.08  
       
Note:   Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.
 
NM:   Not Meaningful.
2006 A-1

 

 

CMS Energy Corporation
Earnings By Quarter and Year GAAP Reconciliation
(Unaudited)
                                         
    (In millions, except per share amounts)
    2007
    1Q   2Q   3Q   4Q   Dec YTD
     
 
                                        
Reported net income (loss) — GAAP
     ($215 )   $ 33     $ 82       ($127 )     ($227 )
 
After-tax items:
                                        
Electric and gas utility
     4       —       —       —       4  
Enterprises
     49       19       (10 )     222       280  
Corporate interest and other
     (81 )     32       9       (38 )     (78 )
Discontinued operations (income) loss
     178       (91 )     —       2       89  
Asset impairment charges, net
     157       25       (49 )     —       133  
 
Adjusted income — non-GAAP
   $ 92     $ 18     $ 32     $ 59     $ 201  
 
 
                                        
Average shares outstanding, basic
     221.5       222.6       223.0       223.4       222.6  
Average shares outstanding, diluted
     221.5       222.6       241.3       223.4       222.6  
 
                                        
 
Reported earnings (loss) per share — GAAP
     ($0.97 )   $ 0.15     $ 0.34       ($0.57 )     ($1.02 )
 
After-tax items:
                                        
Electric and gas utility
     0.01       —       —       —       (0.07 )
Enterprises
     0.23       0.08       (0.04 )     0.99       1.25  
Corporate interest and other
     (0.36 )     0.15       0.03       (0.17 )     (0.32 )
Discontinued operations (income) loss
     0.80       (0.41 )     —       0.01       0.40  
Asset impairment charges, net
     0.71       0.11       (0.20 )     —       0.60  
 
Adjusted earnings per share — non-GAAP
   $ 0.42     $ 0.08     $ 0.13     $ 0.26     $ 0.84  
 
                                         
    (In millions, except per share amounts)
    2008
    1Q   2Q   3Q   4Q   Dec YTD
     
 
                                        
Reported net income — GAAP
   $ 103     $ 46     $ 79     $ 61     $ 289  
 
After-tax items:
                                        
Electric and gas utility
     —       1       6       5       12  
Enterprises
     *       (4 )     (* )     1       (3 )
Corporate interest and other
     —       —       (6 )     1       (5 )
Discontinued operations (income) loss
     (* )     1       (1 )     *       *  
 
Adjusted income — non-GAAP
   $ 103     $ 44     $ 78     $ 68     $ 293  
 
 
                                        
Average shares outstanding, basic
     223.5       223.7       224.1       224.5       223.9  
Average shares outstanding, diluted
     236.6       239.1       234.3       226.6       234.8  
 
                                        
 
Reported earnings per share — GAAP
   $ 0.44     $ 0.19     $ 0.34     $ 0.27     $ 1.23  
 
After-tax items:
                                        
Electric and gas utility
     —       0.01       0.02       0.03       0.05  
Enterprises
     *       (0.02 )     0.01       *       (0.01 )
Corporate interest and other
     —       —       (0.03 )     *       (0.02 )
Discontinued operations (income) loss
     (* )     0.01       (0.01 )     *       *  
 
Adjusted earnings per share — non-GAAP
   $ 0.44     $ 0.19     $ 0.33     $ 0.30     $ 1.25  
 
Note:   Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.
 
*   Less than $500 thousand or $0.01 per share.
2008 A-1

 

 

CMS Energy Corporation
Earnings By Quarter and Year GAAP Reconciliation
(Unaudited)
                                         
(In millions, except per share amounts)   2009  
    1Q     2Q     3Q     4Q     Dec YTD  
     
 
Reported net income — GAAP
   $ 70     $ 75     $ 67     $ 6     $ 218  
 
After-tax items:
                                        
Electric and gas utility
     —       —       —       79       79  
Enterprises
     *       16       2       4       22  
Corporate interest and other
     *       1       1       (1 )     1  
Discontinued operations (income) loss
     1       (25 )     1       3       (20 )
 
Adjusted income — non-GAAP
   $ 71     $ 67     $ 71     $ 91     $ 300  
 
 
                                        
Average shares outstanding, basic
     226.6       226.9       227.3       227.8       227.2  
Average shares outstanding, diluted
     233.2       234.6       238.5       243.0       237.9  
 
                                        
 
Reported earnings per share — GAAP
   $ 0.30     $ 0.32     $ 0.28     $ 0.02     $ 0.91  
 
After-tax items:
                                        
Electric and gas utility
     —       —       —       0.33       0.33  
Enterprises
     *       0.07       0.01       0.02       0.09  
Corporate interest and other
     *       *       *       (* )     0.01  
Discontinued operations (income) loss
     0.01       (0.11 )     0.01       0.01       (0.08 )
 
Adjusted earnings per share — non-GAAP
   $ 0.31     $ 0.28     $ 0.30     $ 0.38     $ 1.26  
 
Note:   Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.
 
*   Less than $500 thousand or $0.01 per share.

2009 A-1

 

 

Consumers Energy
2009 Cash Flow GAAP Reconciliation (in millions) (unaudited)
                                                                                             
            Reclassifications From Sources and Uses to Statement of Cash Flows        
Presentation Sources and Uses     Tax     Interest     Pension     Accts/Rec     Capital     Securitization     Operating     Preferred     Common     Consolidated Statements of Cash Flows
    non-GAAP     Sharing     Payments     Contribution     Financing     Lease Pymts     Debt Pymts     Activites     Dividends     Dividends     GAAP      
Description   Amount     Operating     as Operating     as Operating     as Operating     as Financing     as Financing     as Investing     as Financing     as Financing     Amount     Description
Cash at year end 2008
   $ 69     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ 69     Cash at year end 2008
 
                                                                                            
Sources
                                                                                            
Operating
   $ 1,315     $ (82 )   $ (224 )   $ —     $ —     $ 23     $ 34     $ (35 )   $ —     $ —     $ 1,031      
Other working capital
     210       —       —       (199 )     (120 )     —       —       —       —       —       (109 )   Net cash provided by operating activities
 
                                                                      
Sources
   $ 1,525     $ (82 )   $ (224 )   $ (199 )   $ (120 )   $ 23     $ 34     $ (35 )   $ —     $ —     $ 922      
 
                                                                                            
Uses
                                                                                            
Interest and preferred dividends
   $ (226 )   $ —     $ 224     $ —     $ —     $ —     $ —     $ 35     $ 2     $ —     $ 35      
Pension Contribution
     (199 )     —       —       199       —       —       —       —       —       —       —      
Capital expenditures
     (885 )     —       —       —       —       —       —       —       —       —       (885 )    
Dividends/tax sharing to CMS
     (367 )     82       —       —       —       —       —       —       —       285       —     Net cash provided by investing activities
 
                                                                      
Uses
   $ (1,677 )   $ 82     $ 224     $ 199     $ —     $ —     $ —     $ 35     $ 2     $ 285     $ (850 )    
 
                                                                      
 
                                                                                            
Cash flow
   $ (152 )   $ —     $ —     $ —     $ (120 )   $ 23     $ 34     $ —     $ 2     $ 285     $ 72     Cash flow from operating and investing activities
 
                                                                                            
Financing
                                                                                            
Equity
   $ 100     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ (2 )   $ —     $ 98      
New Issues
     500       —       —       —       —       —       —       —       —       —       500      
Retirements
     (353 )     —       —       —       —       (23 )     (34 )     —       —       (285 )     (695 )    
Other
     (5 )     —       —       —       —       —       —       —       —       —       (5 )    
Net short-term financing
     (120 )     —       —       —       120       —       —       —       —       —       —     Net cash provided by financing activities
 
                                                                      
Financing
   $ 122     $ —     $ —     $ —     $ 120     $ (23 )   $ (34 )   $ —     $ (2 )   $ (285 )   $ (102 )    
 
                                                                      
 
                                                                                            
Net change in cash
   $ (30 )   $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ (30 )   Net change in cash
 
                                                                      
 
                                                                                            
Cash at year end 2009
   $ 39     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ 39     Cash at year end 2009
 
                                                                      
2009 A-2

 

 

CMS Energy Parent
2009 Cash Flow GAAP Reconciliation (in millions) (unaudited)
                                                                     
            Reclassifications From Sources and Uses to Statement of Cash Flows        
Presentation Sources and Uses     Interest     Overheads &     Other     Preferred     Pref Stk     Cash From     Consolidated Statements of Cash Flows
    non-GAAP     Payments     Tax Payments     Uses (a)     Dividends     Retirement     Consolidated     GAAP      
Description   Amount     as Operating     as Operating     as Operating     as Financing     as Operating     Companies     Amount     Description
Cash at year end 2008
   $ 117     $ —     $ —     $ —     $ —     $ —     $ 21     $ 138     Cash at year end 2008
 
                                                                    
Sources
                                                                    
Consumers Energy dividends/tax sharing
   $ 367     $ (125 )   $ (19 )   $ —     $ —     $ (7 )   $ —     $ 216      
Enterprises
     16       —       —       (34 )     —       —       13       (5 )    
 
                                                    
Sources
   $ 383     $ (125 )   $ (19 )   $ (34 )   $ —     $ (7 )   $ 13     $ 211     Net cash provided by operating activities
 
                                                                    
Uses
                                                                    
Interest and preferred dividends
   $ (136 )   $ 125     $ —     $ —     $ 11     $ —     $ —     $ —      
Overhead and Federal tax payments
     (19 )     —       19       —       —       —       —       —      
Pension Contributions
     (7 )     —       —       7       —       —       —       —      
Equity infusions
     (100 )     —       —       27       —       —       (82 )     (155 )    
 
                                                    
Uses (a)
   $ (292 )   $ 125     $ 19     $ 34     $ 11     $ —     $ (82 )   $ (185 )   Net cash provided by investing activities
 
                                                    
 
                                                                    
Cash flow
   $ 91     $ —     $ —     $ —     $ 11     $ (7 )   $ (69 )   $ 26     Cash flow from operating and investing activities
 
                                                                    
Financing and dividends
                                                                    
New Issues
   $ 473     $ —     $ —     $ —     $ (11 )   $ 7     $ 71     $ 540      
Retirements
     (473 )     —       —       —       —       —       —       (473 )    
Net short-term financing
     (80 )     —       —       —       —       —       —       (80 )    
Other
     8       —       —       —       —       —       —       8      
Common dividend
     (113 )     —       —       —       —       —       —       (113 )    
 
                                                    
Financing
   $ (185 )   $ —     $ —     $ —     $ (11 )   $ 7     $ 71     $ (118 )   Net cash provided by financing activities
 
                                                    
 
                                                                    
Net change in cash
   $ (94 )   $ —     $ —     $ —     $ —     $ —     $ 2     $ (92 )   Net change in cash
 
                                                                    
Changes in Cash included in asset held for sale
   $ —     $ —     $ —     $ —     $ —     $ —     $ 5     $ 5     Changes in Cash included in asset held for sale
 
                                                    
 
                                                                    
Cash at year end 2009
   $ 23     $ —     $ —     $ —     $ —     $ —     $ 28     $ 51     Cash at year end 2009
 
                                                    
 
(a)   Includes other and roundings
2009 A-3

 

 

Consolidated CMS Energy
2009 Consolidation of Consumers Energy and CMS Energy Parent Statements of Cash Flow (in millions) (unaudited)
                                             
                    Eliminations/Reclassifications        
                    to Arrive at the Consolidated        
                    Statement of Cash Flows        
Statements of Cash Flows     Consumers     Equity        
    Consumers     CMS Parent     Common Dividend     Infusions to     Consolidated Statements of Cash Flows
Description   Amount     Amount     as Financing     Consumers     Amount     Description
Cash at year end 2008
   $ 69     $ 138     $ —     $ —     $ 207     Cash at year end 2008
 
                                            
Net cash provided by operating activities
   $ 922     $ 211     $ (285 )   $ —     $ 848     Net cash provided by operating activities
 
                                            
Net cash provided by investing activities
     (850 )     (185 )     —       100       (935 )   Net cash provided by investing activities
 
                                            
 
                                
Cash flow from operating and investing activities
   $ 72     $ 26     $ (285 )   $ 100     $ (87 )   Cash flow from operating and investing activities
 
                                            
Net cash provided by financing activities
   $ (102 )   $ (118 )   $ 285     $ (100 )   $ (35 )   Net cash provided by financing activities
 
                                            
 
                                
Net change in cash
   $ (30 )   $ (92 )   $ —     $ —     $ (122 )   Net change in cash
 
                                            
Changes in Cash included in asset held for sale
   $ —     $ 5     $ —     $ —     $ 5     Changes in Cash included in asset held for sale
 
                                            
 
                                
Cash at year end 2009
   $ 39     $ 51     $ —     $ —     $ 90     Cash at year end 2009
 
                                

2009 A-4

 

 

CMS Energy
Reconciliation of 2009 Operating Cash Flow Target to GAAP Operating Activities
(unaudited)
                 
    Amount          
    (mils)          
 
                
Consumers Operating (Consumers PTOI + Depreciation)
   $ 1,315          
Enterprises (Project Cash Flows)
     16          
 
              
Operating Cash Flow
   $ 1,331     non-GAAP
 
                
Other operating activies including taxes, interest payments and working capital
     (483 )        
 
                
 
            
Net cash provided by operating activites
   $ 848     GAAP
 
              

2009 A-5

 

 

Consumers Energy
2010 Forecasted Cash Flow GAAP Reconciliation (in millions) (unaudited)
                                                                                     
            Reclassifications From Sources and Uses to Statement of Cash Flows     Consolidated
Presentation Sources and Uses     Tax     Interest     Pension     Accts/Rec     Capital     Securitization     Preferred     Common     Statements of Cash Flows
    non-GAAP     Sharing     Payments     Contribution     Financing     Lease Pymts     Debt Pymts     Dividends     Dividends     GAAP      
Description   Amount     Operating     as Operating     as Operating     as Operating     as Financing     as Financing     as Financing     as Financing     Amount     Description
Cash at year end 2009
   $ 39     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ 39     Cash at year end 2009
 
                                                                                    
Sources
                                                                                    
Operating
   $ 1,450     $ (235 )   $ (221 )   $ —     $ —     $ 23     $ 35     $ —     $ —     $ 1,052      
Other working capital
     (135 )     —       —       (97 )     (50 )     —       —       —       —       (282 )    
 
                                                                
Sources
   $ 1,315     $ (235 )   $ (221 )   $ (97 )   $ (50 )   $ 23     $ 35     $ —     $ —     $ 770     Net cash provided by operating activities
 
                                                                                    
Uses
                                                                                    
Interest and preferred dividends
   $ (223 )   $ —     $ 221     $ —     $ —     $ —     $ —     $ 2     $ —     $ —      
Pension Contribution
     (97 )     —       —       97       —       —       —       —       —       —      
Capital expenditures
     (1,010 )     —       —       —       —       —       —       —       —       (1,010 )    
Dividends/tax sharing to CMS
     (570 )     235       —       —       —       —       —       —       335       —      
 
                                                                
Uses
   $ (1,900 )   $ 235     $ 221     $ 97     $ —     $ —     $ —     $ 2     $ 335     $ (1,010 )   Net cash provided by investing activities
 
                                                                
 
Cash flow
   $ (585 )   $ —     $ —     $ —     $ (50 )   $ 23     $ 35     $ 2     $ 335     $ (240 )   Cash flow from operating and investing activities
Financing
                                                                                    
Equity
   $ 250     $ —     $ —     $ —     $ —     $ —     $ —     $ (2 )   $ —     $ 248      
New Issues
     550       —       —       —       —       —       —       —       —       550      
Retirements
     (310 )     —       —       —       —       (23 )     (35 )     —       (335 )     (703 )    
Net short-term financing & other
     81       —       —       —       50       —       —       —       —       131      
 
                                                                
Financing
   $ 571     $ —     $ —     $ —     $ 50     $ (23 )   $ (35 )   $ (2 )   $ (335 )   $ 226     Net cash provided by financing activities
 
                                                                                    
 
                                                                
Net change in cash
   $ (14 )   $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ (14 )   Net change in cash
 
                                                                                    
 
                                                                
Cash at year end 2010
   $ 25     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ 25     Cash at year end 2010
 
                                                              

2010 A-1

 

 

CMS Energy Parent
2010 Forecasted Cash Flow GAAP Reconciliation (in millions) (unaudited)
                                                             
            Reclassifications From Sources and Uses to Statement of Cash Flows        
                                                    Consolidated
Presentation Sources and Uses     Interest     Overheads &     Other     Preferred     Cash From     Statements of Cash Flows
    non-GAAP     Payments     Tax Payments     Uses (a)     Dividends     Consolidated     GAAP      
Description   Amount     as Operating     as Operating     as Operating     as Financing     Companies     Amount     Description
Cash at year end 2009
   $ 23     $ —     $ —     $ —     $ —     $ 28     $ 51     Cash at year end 2009
 
                                                            
Sources
                                                            
Consumers Energy dividends/tax sharing
   $ 570     $ (124 )   $ (30 )   $ —     $ —     $ —     $ 416      
Enterprises
     35                                               35      
Insurance settlement
     50       —       —       (45 )     —       5       10      
 
                                              
Sources
   $ 655     $ (124 )   $ (30 )   $ (45 )   $ —     $ 5     $ 461     Net cash provided by operating activities
 
Uses
                                                            
Interest and preferred dividends
   $ (135 )   $ 124     $ —     $ —     $ 11     $ —     $ —      
Overhead and Federal tax payments
     (30 )     —       30       —       —       —       —      
Pension Contributions
     (3 )     —       —       3       —       —       —      
Equity infusions
     (250 )     —       —       42       —       (48 )     (256 )    
 
                                              
Uses (a)
   $ (460 )   $ 124     $ 30     $ 45     $ 11     $ (48 )   $ (298 )   Net cash provided by investing activities
 
 
                                              
Cash flow
   $ 195     $ —     $ —     $ —     $ 11     $ (43 )   $ 163     Cash flow from operating and investing activities
 
                                                            
Financing and dividends
                                                            
New Issues
   $ 300     $ —     $ —     $ —     $ (11 )   $ 26     $ 315      
Retirements
     (80 )     —       —       —       —       —       (80 )    
Net short-term financing & other
     (21 )     —       —       —       —       —       (21 )    
Common dividend
     (137 )     —       —       —       —       —       (137 )    
 
                                              
Financing
   $ 62     $ —     $ —     $ —     $ (11 )   $ 26     $ 77     Net cash provided by financing activities
 
 
                                              
Net change in cash
   $ 257     $ —     $ —     $ —     $ —     $ (17 )   $ 240     Net change in cash
 
 
                                              
Cash at year end 2010
   $ 280     $ —     $ —     $ —     $ —     $ 11     $ 291     Cash at year end 2010
 
                                              
 
(a)   Includes other and roundings

2010 A-2

 

 

Consolidated CMS Energy
2010 Forecasted Consolidation of Consumers Energy and CMS Energy Parent Statements of Cash Flow (in millions) (unaudited)
                                             
                    Eliminations/Reclassifications        
                    to Arrive at the Consolidated        
                    Statement of Cash Flows        
Statements of Cash Flows     Consumers     Equity     Consolidated Statements
    Consumers     CMS Parent     Common Dividend     Infusions to     of Cash Flows
Description   Amount     Amount     as Financing     Consumers     Amount     Description
Cash at year end 2009
   $ 39     $ 51     $ —     $ —     $ 90     Cash at year end 2009
 
                                            
Net cash provided by operating activities
   $ 770     $ 461     $ (335 )   $ —     $ 896     Net cash provided by operating activities
 
                                            
Net cash provided by investing activities
     (1,010 )     (298 )     —       250       (1,058 )   Net cash provided by investing activities
 
                                  
 
Cash flow from operating and investing activities
   $ (240 )   $ 163     $ (335 )   $ 250     $ (162 )   Cash flow from operating and investing activities
 
                                            
Net cash provided by financing activities
   $ 226     $ 77     $ 335     $ (250 )   $ 388     Net cash provided by financing activities
 
                                            
 
                                  
Net change in cash
   $ (14 )   $ 240     $ —     $ —     $ 226     Net change in cash
 
                                            
 
                                  
Cash at year end 2010
   $ 25     $ 291     $ —     $ —     $ 316     Cash at year end 2010
 
                                  

2010 A-3

 

 

CMS Energy
Reconciliation of 2010 Operating Cash Flow Target to GAAP Operating Activities
(unaudited)
             
    Amount      
    (mils)      
 
            
Consumers Operating (Consumers PTOI + Depreciation)
  $ 1,450      
Enterprises (Project Cash Flows)
    35      
 
           
Operating Cash Flow
  $ 1,485     non-GAAP
 
            
Other operating activies including taxes, interest payments and working capital
    (589 )    
 
            
 
           
Net cash provided by operating activites
  $ 896     GAAP
 
           

2010 A-4