EX-99.1 2 k46940exv99w1.htm EX-99.1 EX-99.1
Edison Electric Institute 43rd Annual Financial Conference November 11, 2007 David W. Joos President and Chief Executive Officer Thomas J. Webb Executive Vice President and Chief Financial Officer 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" each found in the MANAGEMENT'S DISCUSSION AND ANALYSIS sections of CMS Energy's Form 10-K and Consumers Energy's Form 10-K each for the Year Ended December 31, 2007 and as updated in CMS Energy's and Consumers Energy's Forms 10-Q for the Quarters Ended March 31, 2008, June 30, 2008 and September 30, 2008. 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 2008 reported earnings to be about the same as adjusted earnings. Reported earnings could vary because of the effect of asset sales, unrealized losses on nonqualified retirement plan investments or other factors. CMS Energy is not providing reported earnings guidance reconciliation because of the uncertainties associated with those factors.

 

Consistent financial performance Fair and timely regulation Utility investment Customer value Safe, excellent operations Growing Forward

 

What's Top of Mind? Financial markets and economy Sales and uncollectibles Pension funding Capital spending plans Earnings growth 2008 adjusted EPS guidance confirmed at $1.20.

 

Energy Legislation Bills balance need for regulatory certainty with customer interests. File and implement ratemaking with forward test year Cap on choice Rate deskewing Certificate of Necessity Renewables Energy efficiency

 

Regulatory Update Gas Rate Case U-15506 Seeking $91 million base rate increase; 11% ROE Staff recommends $36 million; 10.45% ROE Major differences: Amount (mils) Sales assumption $10 Energy efficiency program (recovered elsewhere) 9 Lower ROE 8 Lower working capital (gas prices) 7 Lower incomes taxes 6 Miscellaneous revenues 6 Other 9 Total $55 Briefs due November 18 Plan to file Electric Rate Case in November.

 

2009-13 (mils) Base capital $ 3,800 Choices in Plan Coal plant $ 1,150 AMI 700 Renewables/energy efficiency 375 Electric reliability and other 400 Gas compression/pipelines 250 Total Choices in Plan $ 2,875 Total Capital 2009-13 $ 6,675 Investment plan maximizes customer value and provides 6%-8% EPS growth with or without coal plant. 8% Utility Growth Investment Plan Rate Base Bils $ Present Rate Base 2007 2008 2009 2010 2011 2012 2013 Average Rate Base (bils) $8.7 $9.1 $9.9 $10.6 $11.6 $12.8 4 5 6 7 8 9 10 11 12 13 2008 2009 2010 2011 2012 2031 Coal plant AMI Renewables/energy efficiency Electric reliability and other Gas compression/pipelines Environmental Customer growth Maintenance Depreciation

 

Nation Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb- 09 Mar-09 CMS Working ... 2007 2008 2009 ... to stay ahead of the curve. Monoline collapse (11/07) Credit and stock market implosion (9/15) CMS Completed $130 million Monoline loans (3/08) Closed (9/12): $350 million FMBs $150 million RCA Drew Parent RCA $420 million (10/10) Cash conservation Be flexible Financing Investment Subprime explosion (10/07) Start exit of Monoline exposure ?

 

Liquidity Outlook Twenty-one banks committed to credit facilities of $1.2 billion, with only one bank (after consolidations) having 10%. $1.3 Amount (bils) $ $1.0 Gas Inventory Gas Inventory Credit Facilities Revolvers AR Program Cash 2008 2009 2010 Maturities (mils) Utility - - $200 - $150 - - $308 - - Parent - - - - - - - - $300 - Gas Inventory 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 Oct Dec Mar Jun Sep Dec Mar Jun Sep Dec

 

Sales Trend (Weather Adjusted) Electric Planning for recession in 2009. Cash Flow Risks and Recovery 2009 1975 1986 1997 2008 7% Decline over three years ('79 -'82 recession) Prior Outlook Plan Plan w/o HSC +2% 0% -3% 0 2009 (mils) Economy-related Risks Lower sales margin (net of relief) (20) $ Pension contribution (160) Credit (pre-payments) and other (20) Economy-related risks (200) $ Further Recovery Actions Delay capex 180 $ Reduce working capital 10 Reduce O&M 10 Recovery actions 200 $ 15,000 20,000 25,000 30,000 35,000 40,000 GWh

 

Retirement Plans Exposure 2008 2009 Qualified Plan EPS $ - $ - Cash flow (mils) Base Plan $ (50) Incremental plan (160) Total $(210) Memo: Minimum required contribution $ (70) Nonqualified Plan EPS $(0.03) $ - Cash flow (mils) - - Exposure Qualified plan exposure from asset decline offset by lower liability associated with higher discount rates. 12/7/2007 1/8/2008 2/8/2008 3/8/2008 4/8/2008 5/8/2008 6/8/2008 7/8/2008 8/8/2008 9/8/2008 Unqualified 1068 1014 996 989 1009 1013 957 939 926 854 Qualified 62 58 56 56 55 59 54 54 54 49 60 Market $160 Million 75% target $13 Million Millions $ Qualified Plan Nonqualified Plan Equity Portion $210 Million 40 800

 

2008 Adjusted (non-GAAP) Guidance Despite economic turmoil, ongoing results on track to meet full year adjusted EPS guidance of $1.20. $1.17 with unrealized loss on nonqualified plan $1.20 $1.20 11¢ (11)¢ (4)¢ 4¢ 3¢ (3)¢ Target Sales & Rates Storms & Uncollectibles SAP Launch Resource Conservation Plan Taxes, Interest & Other Cost 2008

 

2008 Sensitivities EPS Cash Flow (mils) Sales Electric sales change 200 Gwh (.5%) +/- 2¢ +/- $8 Gas sales change 4 Bcf (1.3%) +/- 2 +/- 8 Uncollectibles up 10% (from $38 million) (1) (4) Cash conservation * + 20 _ _ _ _ *less than 0.5¢

 

Liquidity and Business Strategy Protect near-term liquidity Access capital market in good windows - be flexible Accelerate Consumers FMB Replace CMS convertibles Extend and add revolver capacity Continue strong risk management Implement cash conservation Act now Be ready to go Stay ahead of curve.

 

What Makes CMS Different? Recent State legislation provides framework for growth Diversified investment opportunities boost rate base and EPS Competitive customer rates Solid liquidity position, no need to issue equity in near term NOL and AMT credits add value Predictable track record 6% - 8% EPS growth with a growing dividend provides attractive return.

 

Appendix

 

2008 Third Quarter EPS By Business Segment Results Adjusted third quarter 2008 EPS up 20¢ from 2007. By Business Segment Appendix 2008 2007 Reported -- (GAAP) 34¢ 34¢ Less: Assets sold (4)¢ (25)¢ Legacy legal cost and other - 4 Unrealized loss on nonqualified plan 3 - Subtotal (1)¢ (21)¢ Adjusted (non-GAAP) 33¢ 13¢ First Call Estimate 26¢ September year-to-date 95¢ 64¢ Adjusted EPS Utility 40¢ Enterprises 2 Interest & other (9) Company 33¢

 

2008 Third Quarter Adjusted (non-GAAP) EPS Utility Enterprises + Parent 15¢ 5¢ Rate increase 29¢ Sales - Weather (4) - Economy (4) Cost and other (10) Total 11¢ Restructuring benefits continue to flow to bottom line. with unrealized loss on nonqualified plan GAAP 34¢ 34¢ Appendix 30¢ 13¢ 11¢ 4¢ 33¢ 3¢ 2¢ Resource Conservation Plan - 1¢ 2007 Equity & Return MCV Reg Out Interest Overhead & Other 2008

 

Debt Maturity Profile Millions $ Cash & Credit Facilities $1,190 $1,155 $1,050 Parent 550 615 600 Utility 640 540 450 Backup capacity to cover Parent debt refinancing in place, if not needed for possible convertible tender. Convertibles Convertibles CMS Energy Consumers Energy $300 Appendix $350 $308 $300 $375 $200 $225 $350 $250 $498 $655 $588 $350 $140 $125 $250 $150 $150 $300 0 100 200 300 400 500 600 700 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 and Beyond

 

2008 Cash Flow (non-GAAP) Forecast CMS Energy Parent Consumers Energy $235 _ _ _ _ _ a Includes other _ _ _ _ _ b Includes cost of removal and capital leases Liquidity strong, counterparty gross exposure $10 million. Appendix Cash at year end 2007 136 $ Sources Consumers Energy dividends/tax sharing 370 $ Enterprises 20 Sources 390 $ Uses Interest and preferred dividends (135) $ Overhead and Federal tax payments (20) DIG settlement (275) Uses a (425) $ Cash flow (35) $ Financing and Dividends New issues 154 $ Retirements (150) Net short-term financing 525 Common dividends (80) Financing and dividends 449 $ Cash at year end 2008 550 $ Bank Facility ($550) available - $ Amount (mils) Cash at year end 2007 195 $ Sources Operating (depreciation $565) 1,310 $ Other working capital (decom refund $250) (490) Sources 820 $ Uses Interest and preferred dividends (195) $ Capital expenditures b (840) Dividends/tax sharing to CMS $(70) (370) Uses (1,405) $ Cash flow (585) $ Financing New issues (100% complete) 690 $ Retirements (505) Net short-term financing (A/R $325) 250 Financing 435 $ Cash at year end 2008 45 $ Bank Facility ($650) available 520 $ Amount (mils)

 

2008 Financial Targets Target Adjusted (non-GAAP) EPS: without unrealized loss on nonqualified plan $1.20 ? with unrealized loss on nonqualified plan 1.17 Free cash flow before capex and dividends (mils) 400 ? Capital structure (year-end) FFO/Average debt 16% ? Parent debt (bils) a $1.7 ? Utility equity ratio b 49% ? Dividend (30% payout) 36¢ ? _ _ _ _ _ a Net of cash b Excludes securitization and Palisades financing obligation Continue to project long-term EPS growth at 6% - 8%. Appendix

 

GAAP Reconciliation

 

CMS Energy Corporation
Earnings By Quarter and Year GAAP Reconciliation
(Unaudited)
                                                     
    (In millions, except per share amounts)
    2007
                 
    1Q   2Q   3Q     Sept YTD     4Q   Dec YTD
                 
 
                                                    
Reported net income (loss) — GAAP
     ($215 )   $ 33     $ 82         ($100 )       ($127 )     ($227 )
             
After-tax items:
                                                    
Electric and gas utility
     4       —       —         4         —       4  
Enterprises
     49       19       (10 )       58         222       280  
Corporate interest and other
     (81 )     32       9         (40 )       (38 )     (78 )
Discontinued operations (income) loss
     178       (91 )     —         87         2       89  
Asset impairment charges, net
     157       25       (49 )       133         —       133  
             
Adjusted income — non-GAAP
   $ 92     $ 18     $ 32       $ 142       $ 59     $ 201  
             
 
                                                    
Average shares outstanding, basic
     221.5       222.6       223.0         222.4         223.4       222.6  
Average shares outstanding, diluted
     221.5       222.6       241.3         222.4         223.4       222.6  
 
                                                    
             
Reported earnings (loss) per share — GAAP
     ($0.97 )   $ 0.15     $ 0.34         ($0.45 )       ($0.57 )     ($1.02 )
             
After-tax items:
                                                    
Electric and gas utility
     0.01       —       —         0.02         —       (0.07 )
Enterprises
     0.23       0.08       (0.04 )       0.26         0.99       1.25  
Corporate interest and other
     (0.36 )     0.15       0.03         (0.18 )       (0.17 )     (0.32 )
Discontinued operations (income) loss
     0.80       (0.41 )     —         0.39         0.01       0.40  
Asset impairment charges, net
     0.71       0.11       (0.20 )       0.60         —       0.60  
             
Adjusted earnings per share — non-GAAP
   $ 0.42     $ 0.08     $ 0.13       $ 0.64       $ 0.26     $ 0.84  
             
                                     
    (In millions, except per share amounts)            
    2008  
             
    1Q   2Q   3Q     Sept YTD  
             
 
                                    
Reported net income — GAAP
   $ 103     $ 46     $ 79       $ 228    
         
After-tax items:
                                    
Electric and gas utility
     —       1       6         7    
Enterprises
     *       (4 )     (* )       (4 )  
Corporate interest and other
     —       —       (6 )       (6 )  
Discontinued operations (income) loss
     (* )     1       (1 )       *    
         
Adjusted income — non-GAAP
   $ 103     $ 44     $ 78       $ 225    
         
 
                                    
Average shares outstanding, basic
     223.5       223.7       224.1         223.7    
Average shares outstanding, diluted
     236.6       239.1       234.3         236.3    
 
                                    
         
Reported earnings per share — GAAP
   $ 0.44     $ 0.19     $ 0.34       $ 0.96    
         
After-tax items:
                                    
Electric and gas utility
     —       0.01       0.02         0.03    
Enterprises
     *       (0.02 )     0.01         (0.01 )  
Corporate interest and other
     —       —       (0.03 )       (0.03 )  
Discontinued operations (income) loss
     (* )     0.01       (0.01 )       *    
         
Adjusted earnings per share — non-GAAP
   $ 0.44     $ 0.19     $ 0.33       $ 0.95    
         
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.

A-1

 

CMS ENERGY CORPORATION
Earnings Segment Results GAAP Reconciliation
(Unaudited)
                                 
    Three Months Ended     Nine Months Ended  
September 30   2008     2007     2008     2007  
 
 
                                
Electric Utility
                                
Reported
   $ 0.46     $ 0.28     $ 0.98     $ 0.71  
Unrealized Investment Loss
     0.01       —       0.01       —  
Asset Sales Loss and Other, net
     —       —       0.01       0.01  
 
                        
Adjusted
   $ 0.47     $ 0.28     $ 1.00     $ 0.72  
 
                        
 
                                
Gas Utility
                                
Reported
   $ (0.08 )   $ (0.03 )   $ 0.19     $ 0.24  
Unrealized Investment Loss
     0.01       —       0.01       —  
Asset Sales Loss and Other, net
     —       —       —       0.01  
 
                        
Adjusted
   $ (0.07 )   $ (0.03 )   $ 0.20     $ 0.25  
 
                        
 
                                
Enterprises
                                
Reported
   $ 0.01     $ 0.24     $ 0.05     $ (0.78 )
Unrealized Investment Loss
     0.01       —       0.01       —  
Asset Impairment Charges, net of insurance recoveries
     —       (0.20 )     —       0.55  
Asset Sales (Gain) Loss and Other, net
     —       (0.04 )     (0.02 )     0.26  
 
                        
Adjusted
   $ 0.02     $ *     $ 0.04     $ 0.03  
 
                        
 
                                
Corporate Interest and Other
                                
Reported
   $ (0.06 )   $ (0.15 )   $ (0.26 )   $ (0.23 )
Asset Impairment Charges, net of insurance recoveries
     —       —       —       0.05  
Asset Sales (Gain) Loss and Other, net
     (0.03 )     0.03       (0.03 )     (0.18 )
 
                        
Adjusted
   $ (0.09 )   $ (0.12 )   $ (0.29 )   $ (0.36 )
 
                        
 
                                
Discontinued Operations
                                
Reported
   $ 0.01     $ —     $ —     $ (0.39 )
Discontinued Operations (Gain) Loss
     (0.01 )     —       —       0.39  
 
                        
Adjusted
   $ —     $ —     $ —     $ —  
 
                        
 
                                
Totals
                                
Reported
   $ 0.34     $ 0.34     $ 0.96     $ (0.45 )
Discontinued Operations (Gain) Loss
     (0.01 )     —       —       0.39  
Unrealized Investment Loss
     0.03       —       0.03       —  
Asset Impairment Charges, net of insurance recoveries
     —       (0.20 )     —       0.60  
Asset Sales (Gain) Loss and Other, net
     (0.03 )     (0.01 )     (0.04 )     0.10  
 
                        
Adjusted
   $ 0.33     $ 0.13     $ 0.95     $ 0.64  
 
                        
 
                                
Average Common Shares Outstanding — Diluted (in millions)
     234.3       241.3       236.3       222.4  
 
                        
 
*   Less than $0.01 per share.

A-2

 

Consumers Energy
2008 Forecasted Cash Flow GAAP Reconciliation (in millions) (unaudited)
                                                                             
            Reclassifications From Sources and Uses to Statement of Cash Flows      
Presentation Sources and Uses     Tax     Interest     Accts/Rec     Capital     Securitization     Preferred     Common     Consolidated Statements of Cash Flows
    non-GAAP     Sharing     Payments     Financing     Lease Pymts     Debt Pymts     Dividends     Dividends     GAAP      
Description   Amount     Operating     as Operating     as Operating     as Financing     as Financing     as Financing     as Financing     Amount     Description
Cash at year end 2007
   $ 195     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ 195     Cash at year end 2007
 
                                                                            
Sources
                                                                            
Operating
   $ 1,310     $ (70 )   $ (193 )   $ 250     $ 18     $ 32     $ —     $ —     $ 1,347      
Other working capital
     (490 )     —       —       —       —       —       —       —       (490 )   Net cash provided by
 
                                                          
Sources
   $ 820     $ (70 )   $ (193 )   $ 250     $ 18     $ 32     $ —     $ —     $ 857     operating activities
 
                                                                            
Uses
                                                                            
Interest and preferred dividends
   $ (195 )   $ —     $ 193     $ —     $ —     $ —     $ 2     $ —     $ —      
Capital expenditures
     (840 )     —       —       —       —       —       —       —       (840 )    
Dividends/tax sharing to CMS
     (370 )     70       —       —       —       —       —       300       —     Net cash provided by
 
                                                          
Uses
   $ (1,405 )   $ 70     $ 193     $ —     $ —     $ —     $ 2     $ 300     $ (840 )   investing activities
 
                                                                            
 
                                                          
Cash flow
   $ (585 )   $ —     $ —     $ 250     $ 18     $ 32     $ 2     $ 300     $ 17     Cash flow from operating
 
                                                                           and investing activities
Financing
                                                                            
New Issues
   $ 690     $ —     $ —     $ (250 )           $ —     $ (2 )   $ —     $ 438      
Retirements
     (505 )     —       —       —       (18 )     (32 )     —       (300 )     (855 )    
Net short-term financing
     250       —       —       —       —       —       —       —       250     Net cash provided by
 
                                                          
Financing
   $ 435     $ —     $ —     $ (250 )   $ (18 )   $ (32 )   $ (2 )   $ (300 )   $ (167 )   financing activities
 
                                                                            
 
                                                          
Net change in cash
   $ (150 )   $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ (150 )   Net change in cash
 
                                                                            
 
                                                          
Cash at year end 2008
   $ 45     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ 45     Cash at year end 2008
 
                                                          

A-3

 

CMS Energy Parent
2008 Forecasted Cash Flow GAAP Reconciliation (in millions) (unaudited)
                                                                     
            Reclassifications From Sources and Uses to Statement of Cash Flows      
Presentation Sources and Uses     Interest     Overheads &     DIG     Other     Preferred     Cash From     Consolidated Statements of Cash Flows
    non-GAAP     Payments     Tax Payments     Settlement     Uses (a)     Dividends     Consolidated     GAAP      
Description   Amount     as Operating     as Operating     as Operating     as Operating     as Financing     Companies     Amount     Description
Cash at year end 2007
   $ 136     $ —     $ —     $ —     $ —     $ —     $ 17     $ 153     Cash at year end 2007
 
                                                                    
Sources
                                                                    
Consumers Energy dividends/tax sharing
   $ 370     $ (124 )   $ (20 )   $ —     $ —     $ —     $ —     $ 226      
Enterprises
     20       —       —       (275 )     5       —       5       (245 )   Net cash provided by
 
                                                    
Sources
   $ 390     $ (124 )   $ (20 )   $ (275 )   $ 5     $ —     $ 5     $ (19 )   operating activities
 
                                                                    
Uses
                                                                    
Interest and preferred dividends
   $ (135 )   $ 124     $ —     $ —     $ —     $ 11     $ —     $ —      
Overhead and Federal tax payments
     (20 )     —       20       —       —       —       —       —      
DIG settlement
     (275 )     —       —       275       (5 )     —       (26 )     (31 )   Net cash provided by
 
                                                    
Uses (a)
   $ (425 )   $ 124     $ 20     $ 275     $ (5 )   $ 11     $ (26 )   $ (26 )   investing activities
 
                                                                    
 
                                                    
Cash flow
   $ (35 )   $ —     $ —     $ —     $ —     $ 11     $ (21 )   $ (45 )   Cash flow from operating
 
                                                                   and investing activities
Financing and dividends
                                                                    
New Issues
   $ 154     $ —     $ —     $ —     $ —     $ (11 )   $ 26     $ 169      
Retirements
     (150 )     —       —       —       —       —       —       (150 )    
Net short-term financing
     525       —       —       —       —       —       —       525      
Common dividend
     (80 )     —       —       —       —       —       —       (80 )   Net cash provided by
 
                                                    
Financing
   $ 449     $ —     $ —     $ —     $ —     $ (11 )   $ 26     $ 464     financing activities
 
                                                                    
 
                                                    
Net change in cash
   $ 414     $ —     $ —     $ —     $ —     $ —     $ 5     $ 419     Net change in cash
 
                                                                    
 
                                                    
Cash at year end 2008
   $ 550     $ —     $ —     $ —     $ —     $ —     $ 22     $ 572     Cash at year end 2008
 
                                                    
 
(a)    Includes other

A-4

 

Consolidated CMS Energy
2008 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      
    Consumers     CMS Parent     Common Dividend     Infusions to     Consolidated Statements of Cash Flows
Description   Amount     Amount     as Financing     Consumers     Amount     Description
Cash at year end 2007
  $ 195     $ 153     $ —     $ —     $ 348     Cash at year end 2007
 
                                        
Net cash provided by
operating activities
  $ 857     $ (19 )   $ (300 )   $ —     $ 538     Net cash provided by
operating activities
 
                                        
Net cash provided by
investing activities
    (840 )     (26 )     —       —       (866 )   Net cash provided by
investing activities
 
                                        
 
                                 
Cash flow from operating and investing activities
  $ 17     $ (45 )   $ (300 )   $ —     $ (328 )   Cash flow from operating and investing activities
 
                                        
Net cash provided by
financing activities
  $ (167 )   $ 464     $ 300     $ —     $ 597     Net cash provided by
financing activities
 
                                        
 
                               
Net change in cash
  $ (150 )   $ 419     $ —     $ —     $ 269     Net change in cash
 
                                        
 
                               
Cash at year end 2008
  $ 45     $ 572     $ —     $ —     $ 617     Cash at year end 2008
 
                                 

A-5

 

CMS Energy
2008 Forecasted Free Cash Flow GAAP Reconciliation
(unaudited)
             
    Amount      
    (mils)      
 
            
Statement of cash flows
            
 
            
Operating activities
   $ 538      
Investing activities
     (866 )    
 
            
 
          
Cash flow from operating and investing activities
   $ (328 )   SCF changes
 
          
 
            
Adjustments to reconcile free cash flow
            
Reclassify financing activities as operating
           
Capital lease payments
   $ (18 )    
Securitization debt retirements
     (32 )    
Preferred dividend payments
     (13 )    
 
            
Reclassify operating activities as financing Accounts receivable financing
     (250 )    
 
            
Reclassify Consolidating Cash
     21      
 
          
 
            
Total free cash flow before dividends
   $ (620 )   Free cash flow changes
 
          
 
            
Addback capex
            
Consumers Energy
     841      
Enterprises
     4      
 
            
Rounding
     —      
 
            
 
          
Free cash flow before dividends and capex
   $ 225      
 
          

A-6