CMS ENERGY CORPORATION

Schedule I - Condensed Financial Information of Registrant

CMS Energy - Parent Company

Condensed Statements of Income


	In Millions

Years Ended December 31	2011			2010			2009


Operating Expenses
Other operating expenses	$	(9)		$	(6)		$	(10)
General taxes		6			-			-

Total operating expenses		(3)			(6)			(10)


Operating Loss		(3	)		(6	)		(10	)

Other Income (Expense)
Equity earnings of subsidiaries		510			464			310
Interest income		1			1			-
Other income (expense)		(5)			(8)			12

Total other income		506			457			322


Interest Charges
Interest on long-term debt		143			147			124
Interest on preferred securities		-			-			8
Intercompany interest expense and other		6			4			8

Total interest charges		149			151			140


Income Before Income Taxes		354			300			172
Income Tax Benefit		(61)			(50)			(57)


Income From Continuing Operations		415			350			229
Loss From Discontinued Operations		-			(10)			-


Net Income		415			340			229
Charge for Deferred Issuance Costs on Preferred Stock		-			8			-
Preferred Stock Dividends		-			8			11


Net Income Available to Common Stockholders	$	415		$	324		$	218

The accompanying condensed notes are an integral part of these statements.

CMS ENERGY CORPORATION

Schedule I - Condensed Financial Information of Registrant

CMS Energy - Parent Company

Statements of Cash Flows


	In Millions

Years Ended December 31	2011		2010		2009


Cash Flows from Operating Activities
Net income	$	415	$	340	$	229
Adjustments to reconcile net income to net cash provided by operating activities
Equity earnings of subsidiaries		(510)		(464)		(310)
Dividends received from subsidiaries		474		358		340
Increase in accounts receivable		(1)		-		(2)
Increase (decrease) in accounts payable		-		(16)		16
Change in other assets and liabilities		(71)		117		7

Net cash provided by operating activities		307		335		280


Cash Flows from Investing Activities
Investment in subsidiaries		(125)		(250)		(100)

Net cash used in investing activities		(125)		(250)		(100)


Cash Flows from Financing Activities
Proceeds from issuance of senior notes		375		800		718
Issuance of common stock		29		8		9
Retirement of senior notes		(376)		(396)		(788)
Payment of common stock dividends		(211)		(154)		(114)
Payment of preferred stock dividends		-		(8)		(11)
Debt issuance costs and financing fees		(6)		(11)		(5)
Redemption of preferred stock		-		(239)		(4)
Increase (decrease) in notes payable		7		(85)		15

Net cash used in financing activities		(182)		(85)		(180)


Net Change in Cash and Cash Equivalents	$	-	$	-	$	-

Cash and Cash Equivalents, Beginning of Period	$	-	$	-	$	-

Cash and Cash Equivalents, End of Period	$	-	$	-	$	-

The accompanying condensed 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	2011		2010


Current Assets
Notes and accrued interest receivable	$	1	$	1
Accounts receivable, including intercompany and related parties		6		5
Accrued taxes		16		-
Deferred income taxes		3		13

Total current assets		26		19


Plant, Property, and Equipment
Plant, property, and equipment		16		16
Less accumulated depreciation		(16)		(16)

Total plant, property, and equipment		-		-


Other Non-current Assets
Deferred income taxes		367		372
Investment in subsidiaries		5,096		4,941
Other investment – SERP		23		19
Other		28		27

Total other non-current assets		5,514		5,359


Total Assets	$	5,540	$	5,378

The accompanying condensed notes are an integral part of these statements.

LIABILITIES AND EQUITY


	In Millions

December 31	2011			2010


Current Liabilities
Current portion of long-term debt	$	398		$	437
Accounts and notes payable, including intercompany and related parties		163			156
Accrued interest, including intercompany		28			27
Accrued taxes		-			81
Other		5			5

Total current liabilities		594			706


Non-Current Liabilities
Long-term debt		1,875			1,848
Related Party		34			34
Unamortized Discount		(17	)		(28)
Postretirement benefits		24			23
Other noncurrent liabilities		2			2

Total non-current liabilities		1,918			1,879


Equity
Common stockholders' equity		3,028			2,793


Total Liabilities and Equity	$	5,540		$	5,378

CMS ENERGY CORPORATION

Schedule I – Condensed Financial Information of Registrant

CMS Energy – Parent Company

Notes to 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 Part II, Item 8 of this Form 10-K for the year ended December 31, 2011.

2: Guarantees

CMS Energy has issued guarantees with a maximum potential obligation of $112 million on behalf of some of its wholly owned subsidiaries. CMS Energy's maximum potential obligation consists primarily of payment obligations to third parties under commodity purchase and swap agreements at CMS ERM and to the DOE for non-payment by Consumers Energy 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.