Schedule I - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2012

Schedule I - Condensed Financial Information of Registrant [Abtract]

Schedule I - Condensed Financial Information of Registrant

CMS Energy Corporation

Schedule I – Condensed Financial Information of Registrant

CMS Energy – Parent Company

Condensed Statements of Income

In Millions
Years Ended December 31	2012			2011			2010
Operating Expenses
Other operating expenses		$	(8)		$	(9)		$	(6)
General taxes			-			6			-
Total operating expenses			(8)			(3)			(6)
Operating Loss			(8)			(3)			(6)
Other Income (Expense)
Equity earnings of subsidiaries			477			510			464
Interest income			1			1			1
Other expense			(5)			(5)			(8)
Total other income			473			506			457
Interest Charges
Interest on long-term debt			140			143			147
Intercompany interest expense and other			5			6			4
Total interest charges			145			149			151
Income Before Income Taxes			320			354			300
Income Tax Benefit			(62)			(61)			(50)
Income From Continuing Operations			382			415			350
Loss From Discontinued Operations			-			-			(10)
Net Income			382			415			340
Charge for Deferred Issuance Costs on Preferred Stock			-			-			8
Preferred Stock Dividends			-			-			8
Net Income Available to Common Stockholders		$	382		$	415		$	324
The accompanying notes are an integral part of these statements.

CMS Energy Corporation

Schedule I – Condensed Financial Information of Registrant

CMS Energy – Parent Company

Condensed Statements of Cash Flows

In Millions
Years Ended December 31	2012			2011			2010
Cash Flows from Operating Activities
Net income		$	382		$	415		$	340
Adjustments to reconcile net income to net cash provided by    operating activities
Equity earnings of subsidiaries			(477)			(510)			(464)
Dividends received from subsidiaries			401			474			358
Cash provided by (used in) changes in assets and liabilities
Accounts and notes receivable			2			(1)			-
Accounts payable			-			-			(16)
Other current and non-current assets and liabilities			(30)			(71)			117
Net cash provided by operating activities			278			307			335
Cash Flows from Investing Activities
Investment in subsidiaries			(151)			(125)			(250)
Net cash used in investing activities			(151)			(125)			(250)
Cash Flows from Financing Activities
Proceeds from issuance of long-term debt			575			375			800
Issuance of common stock			30			29			8
Retirement of long-term debt			(463)			(376)			(396)
Payment of common stock dividends			(252)			(211)			(154)
Payment of preferred stock dividends			-			-			(8)
Redemption of preferred stock			-			-			(239)
Debt issuance costs and financing fees			(4)			(6)			(11)
Increase (decrease) in notes payable			(11)			7			(85)
Net cash used in financing activities			(125)			(182)			(85)
Net Increase in Cash and Cash Equivalents			2			-			-
Cash and Cash Equivalents, Beginning of Period			-			-			-
Cash and Cash Equivalents, End of Period		$	2		$	-		$	-
The accompanying notes are an integral part of these statements.

CMS Energy Corporation

Schedule I – Condensed Financial Information of Registrant

CMS Energy – Parent Company

Condensed Balance Sheets

ASSETS
In Millions
December 31	2012			2011
Current Assets
Cash and cash equivalents		$	2		$	-
Notes and accrued interest receivable			1			1
Accounts receivable, including intercompany and related parties			4			6
Accrued taxes			7			16
Deferred income taxes			3			3
Total current assets			17			26
Plant, Property, and Equipment
Plant, property, and equipment, gross			16			16
Less accumulated depreciation and amortization			16			16
Total plant, property, and equipment			-			-
Other Non-current Assets
Deferred income taxes			392			367
Investments in subsidiaries			5,312			5,096
Other investments – DB SERP			24			23
Other			26			28
Total other non-current assets			5,754			5,514
Total Assets		$	5,771		$	5,540

LIABILITIES AND EQUITY
In Millions
December 31	2012			2011
Current Liabilities
Current portion of long-term debt		$	172		$	398
Accounts and notes payable, including intercompany and related parties			152			163
Accrued interest, including intercompany			30			28
Other current liabilities			5			5
Total current liabilities			359			594
Non-current Liabilities
Long-term debt			2,205			1,875
Notes payable – related party			-			34
Unamortized discount			(13)			(17)
Postretirement benefits			24			24
Other non-current liabilities			2			2
Total non-current liabilities			2,218			1,918
Equity
Common stockholders equity			3,194			3,028
Total Liabilities and Equity		$	5,771		$	5,540
The accompanying notes are an integral part of these statements.

CMSEnergy Corporation

ScheduleI – Condensed Financial Information of Registrant

CMSEnergy – Parent Company

Notes to the Condensed Financial Statements

1: Basis of Presentation

CMSEnergy’s condensed financial statements have been prepared on a parent-only basis.  In accordance with Rule12-04 of Regulation S-X, these parent-only financial statements do not include all of the information and notes required by GAAP for annual financial statements, and therefore these parent-only financial statements and other information included should be read in conjunction with CMSEnergy’s audited consolidated financial statements contained within Item8. Financial Statements and Supplementary Data.

2: Guarantees

CMS Energy has issued guarantees with a maximum potential obligation of $165million on behalf of some of its wholly owned subsidiaries.  CMSEnergy’s maximum potential obligation consists primarily of payment obligations to third parties under commodity purchase and swap agreements at CMSERM and to the DOE for non-payment by Consumers in relation to the DOE settlement.  The expiry dates of these guarantees vary, depending upon contractual provisions or upon the statute of limitations under the relevant governing law.