Schedule I – Condensed Financial Information of Registrant

CMS Energy—Parent Company

Condensed Statements of Income



In Millions
Years Ended December 31	2017			2016			2015

Operating Expenses
Other operating expenses		$	(9)		$	(14)		$	(8)
Total operating expenses			(9)			(14)			(8)

Operating Loss			(9)			(14)			(8)

Other Income (Expense)
Equity earnings of subsidiaries			633			660			625
Nonoperating retirement benefits, net			(1)			(1)			(1)
Interest income			1			1			1
Other income			2			-			-
Other expense			(31)			(19)			(9)
Total other income			604			641			616

Interest Charges
Interest on long-term debt			143			150			134
Intercompany interest expense and other			3			1			3
Total interest charges			146			151			137

Income Before Income Taxes			449			476			471
Income Tax Benefit			(11)			(75)			(52)

Net Income Available to Common Stockholders		$	460		$	551		$	523

The accompanying notes are an integral part of these statements.

Schedule I – Condensed Financial Information of Registrant (Continued)

CMS Energy—Parent Company

Condensed Statements of Cash Flows



In Millions
Years Ended December 31	2017			2016			2015

Cash Flows from Operating Activities
Net cash provided by operating activities		$	433		$	422		$	209

Cash Flows from Investing Activities
Investment in subsidiaries			(447)			(275)			(150)
Net cash used in investing activities			(447)			(275)			(150)

Cash Flows from Financing Activities
Proceeds from issuance of debt			799			603			349
Issuance of common stock			83			72			43
Retirement of long-term debt			(425)			(530)			(100)
Debt prepayment costs			(18)			(18)			-
Payment of dividends on common stock			(375)			(345)			(320)
Debt issuance costs and financing fees			(3)			(5)			(3)
Change in notes payable			(47)			76			(28)
Net cash provided by (used in) financing activities			14			(147)			(59)

Net Increase in Cash and Cash Equivalents, Including Restricted Amounts			-			-			-
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period			-			-			-

Cash and Cash Equivalents, Including Restricted Amounts, End of Period		$	-		$	-		$	-

The accompanying notes are an integral part of these statements.

Schedule I – Condensed Financial Information of Registrant (Continued)

CMS Energy—Parent Company

Condensed Balance Sheets



ASSETS
In Millions
December 31	2017			2016

Current Assets
Notes and accrued interest receivable		$	5		$	2
Accounts receivable, including intercompany and related parties			7			7
Federal income tax receivable			77			-
Accrued taxes			57			51
Prepayments and other current assets			1			1
Total current assets			147			61

Other Non-current Assets
Notes receivable			-			3
Deferred income taxes			269			366
Investments in subsidiaries			7,202			6,674
Other investments – DB SERP			25			26
Other			2			4
Total other non-current assets			7,498			7,073

Total Assets		$	7,645		$	7,134



LIABILITIES AND EQUITY
In Millions
December 31	2017			2016

Current Liabilities
Current portion of long-term debt		$	225		$	-
Accounts and notes payable, including intercompany and related parties			87			141
Accrued interest, including intercompany			34			28
Other current liabilities			5			10
Total current liabilities			351			179

Non-current Liabilities
Long-term debt			2,830			2,678
Postretirement benefits			21			21
Other non-current liabilities			2			3
Total non-current liabilities			2,853			2,702

Equity
Common stockholders’ equity			4,441			4,253

Total Liabilities and Equity		$	7,645		$	7,134

The accompanying notes are an integral part of these statements.

Schedule I – Condensed Financial Information of Registrant (Continued)

CMS Energy—Parent Company

Notes to the Condensed Financial Statements

1:Basis of Presentation

CMS Energy’s condensed financial statements have been prepared on a parent-only basis. In accordance with Rule 12‑04 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 CMS Energy’s audited consolidated financial statements contained within Item 8. Financial Statements and Supplementary Data.

2:Guarantees

CMS Energy has issued guarantees with a maximum potential obligation of $334 million on behalf of some of its wholly owned subsidiaries and related parties. CMS Energy’s maximum potential obligation consists primarily of potential payments:

to third parties under certain commodity purchase and swap agreements entered into with CMS ERM

to third parties in support of non‑recourse revenue bonds issued by Genesee

to the MDEQ on behalf of CMS Land and CMS Capital, for environmental remediation obligations at Bay Harbor

to the U.S. Department of Energy on behalf of Consumers, in connection with Consumers’ 2011 settlement agreement with the U.S. Department of Energy regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers

The expiry dates of these guarantees vary, depending upon contractual provisions or upon the statute of limitations under the relevant governing law.