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United States Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2005
OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from __________ to __________

Commission File Registrant; State of Incorporation; IRS Employer
Number Address and Telephone Number Identification No.
--------------- ------------------------------------ ------------------
333-47938 Consumers Funding LLC 38-3575109
A Delaware limited liability company
One Energy Plaza
Jackson, Michigan 49201
(517) 788-0250

Securities registered pursuant to Section 12 (b) of the Act: None.

Securities registered pursuant to Section 12 (g) of the Act: None.

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that
the Registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. YES [X] NO [ ]

Indicate by check mark whether the registrant is an accelerated filer (as
defined in rule 12b-2 of the Exchange Act). YES [ ] NO [X]

Consumers Funding LLC meets the conditions set forth in General
Instruction H(1)(a) and (b) of the Form 10-Q and is, therefore filing this
Form 10-Q with the reduced disclosure format. In accordance with
Instruction H, Part I, Item 2 has been reduced and Parts III, Items 2, 3
and 4 have been omitted.

The aggregate market value of the voting and non-voting common equity held
by non-affiliates of the Registrant: None.



CONSUMERS FUNDING LLC
FORM 10-Q QUARTERLY REPORT TO
THE SECURITIES AND EXCHANGE COMMISSION
FOR THE QUARTER ENDED MARCH 31, 2005
TABLE OF CONTENTS



Page
----

PART I: Financial Information

1. Management's Narrative Analysis of Results of Operations.............................. 3

2. Financial Statements and Supplementary Data
Statements of Income.............................................................. 5
Balance Sheets.................................................................... 6
Statements of Cash Flows.......................................................... 7
Statements of Member's Equity..................................................... 8
Notes to Financial Statements..................................................... 9

PART II: Other Information

3. Item 1. Legal Proceedings ............................................................ 13
Item 5. Other Information ............................................................ 13
Item 6. Exhibits, and Reports on Form 8-K............................................. 13
Item 7A. Quantitative and Qualitative Disclosures About Market Risk................... 13
Signatures............................................................................ 14
Exhibit Index......................................................................... 15


2



CONSUMERS FUNDING LLC

MANAGEMENT'S NARRATIVE ANALYSIS
OF RESULTS OF OPERATION

This Management's Narrative Analysis (MNA) of the results of operations of
Consumers Funding LLC (Consumers Funding) is an abbreviated format pursuant to
Instruction H of Form 10-Q. The MNA refers to Consumers Funding's Notes to
Financial Statements and should be read in conjunction with such Financial
Statements and Notes.

This Form 10-Q and other written and oral statements from Consumers Funding
contain forward-looking statements as defined by the Private Securities
Litigation Reform Act of 1995. Consumers Funding's intention with the use of
words such as "may," "could," "anticipates," "believes," "estimates," "expects,"
"intends," "plans," and other similar words is to identify forward-looking
statements that involve risk and uncertainty. Consumers Funding designed this
discussion of potential risks and uncertainties to highlight important factors
that may impact its business and financial outlook. Consumers Funding has no
obligation to update or revise forward-looking statements regardless of whether
new information, future events or any other factors affect the information
contained in the statements. These forward-looking statements are subject to
various factors that could cause Consumers Funding's actual results to differ
materially from the results anticipated in these statements.

Consumers Funding, a Delaware limited liability company, whose sole member is
Consumers Energy Company (Consumers), was formed by Consumers on October 11,
2000. Consumers is an electric and gas utility and is a wholly owned subsidiary
of CMS Energy Corporation. Consumers Funding was organized for the purposes of
purchasing and owning securitization property (see below), issuing
securitization bonds, pledging its interest in securitization property and other
collateral to the trustee to collateralize the securitization bonds, and
performing activities that are necessary, suitable or convenient to accomplish
these purposes.

On November 8, 2001, Consumers Funding issued $468.6 million of securitization
bonds. Consumers Funding used the proceeds from the securitization bond issuance
to purchase securitization property from Consumers. As discussed in Note 1 to
the Financial Statements, securitization property represents the irrevocable
right of Consumers to collect a nonbypassable securitization charge
(Securitization Charge) from customers in accordance with a financing order
issued by the Michigan Public Service Commission (MPSC). The securitization
property, which is classified as a securitization receivable, along with
earnings on cash deposited with the trustee, resulted in Consumers Funding
recording interest income of $5.1 million for the three months ended March 31,
2005, and $5.5 million for the three months ended March 31, 2004. Interest
expense associated with the securitization bonds totaled $5.1 million for the
three months ended March 31, 2005, and $5.5 million for the three months ended
March 31, 2004.

Consumers, as servicer, began billing a Securitization Charge to electric
customers beginning with its December 2001 billing cycle, totaling $.001427 per
kilowatt-hour, per customer, per billing cycle. In the servicing agreement
between Consumers Funding and Consumers, Consumers is required to remit its
Securitization Charge collections to the trustee each business day. Under the
servicing agreement, Consumers is required to request periodic Securitization
Charge adjustments from the MPSC. The request for an adjustment must be
submitted at least 45 days before the adjustment may take place. Adjustments
will be made annually, and then quarterly beginning approximately one year
before the expected final payment date of the last maturing class of
securitization bonds. Adjustments to the Securitization Charge are based, among
other things, on actual Securitization Charge revenue collections and updated
assumptions by Consumers as to projected future deliveries of electricity to
customers.

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On October 15, 2004, Consumers submitted a request to the MPSC for its annual
adjustment. The approved adjustment revised the Securitization Charge to
$.001311 per kilowatt-hour, per customer, per billing cycle, effective December
1, 2004.

For the three months ended March 31, 2005, operating revenues totaled $5.4
million, a decrease of approximately $0.4 million versus the same period in
2004. Included in the $5.4 million is $5.1 million of interest income and
approximately $0.3 million of other operating revenue. The decrease in total
operating revenues for the three-month period primarily reflects lower interest
income associated with the reduction in the securitization receivable from
Consumers Energy.

For the three months ended March 31, 2005, Consumers Funding incurred $5.4
million of operating expenses, a decrease of approximately $0.4 million versus
the same period in 2004. Included in the $5.4 million is $5.1 million of
interest expense and approximately $0.3 million of servicing, administration and
other expenses. The decrease in operating expenses for the three-month period is
primarily the result of reduced debt levels.

4



CONSUMERS FUNDING LLC
STATEMENTS OF INCOME
(UNAUDITED)



THREE MONTHS ENDED
MARCH 31 2005 2004
- -------- --------------------
In Thousands

OPERATING REVENUES

Interest Income - Consumers Energy $ 5,088 $ 5,471
Other Operating Revenue - Consumers Energy 264 282
Other Operating Revenue 15 7
------- -------

Total Operating Revenues 5,367 5,760
------- -------
OPERATING EXPENSES

Interest Expense 5,088 5,471
Service Fee - Consumers Energy 244 262
Administration Fee - Consumers Energy 20 20
Other 15 7
------- -------

Total Operating Expenses 5,367 5,760
------- -------

NET INCOME $ - $ -
======= =======


The accompanying notes are an integral part of these statements.

5



CONSUMERS FUNDING LLC
BALANCE SHEETS



MARCH 31 DECEMBER 31
2005 2004
(UNAUDITED) (AUDITED)
-----------------------------
In Thousands

ASSETS

CURRENT ASSETS

Restricted Cash $ 17,067 $ 16,991
Securitization Receivable - Consumers 27,395 28,218
---------- ----------
Total Current Assets 44,462 45,209

NON-CURRENT ASSETS

Securitization Receivable - Consumers 353,338 359,813
---------- ----------
Total Non-current Assets 353,338 359,813
---------- ----------

TOTAL ASSETS $ 397,800 $ 405,022
========== ==========

LIABILITIES AND MEMBER'S EQUITY

CURRENT LIABILITIES
Securitization Bonds Payable $ 28,870 $ 28,646
Accounts Payable - Consumers 286 313
Accounts Payable - Other 18 16
Interest Payable 4,021 4,099
---------- ----------
Total Current Liabilities 33,195 33,074
---------- ----------

NON-CURRENT LIABILITIES

Securitization Bonds Payable 362,262 369,605
---------- ----------
Total Non-current Liabilities 362,262 369,605
---------- ----------

MEMBER'S EQUITY

Total Member's Equity 2,343 2,343
---------- ----------

TOTAL LIABILITIES AND MEMBER'S EQUITY $ 397,800 $ 405,022
========== ==========


The accompanying notes are an integral part of these statements.

6



CONSUMERS FUNDING LLC
STATEMENTS OF CASH FLOWS
(UNAUDITED)



THREE MONTHS ENDED
MARCH 31 2005 2004
- -------- -------------------------
In Thousands

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income $ - $ -

Changes in Current Assets and Liabilities:
Interest Payable (77) 43
Accounts Payable - Consumers Energy (27) (13)
Accounts Payable - Other 2 -
--------- ----------

NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES (102) 30

CASH FLOWS FROM INVESTING ACTIVITIES

Restricted Cash (76) (327)
Reduction of Securitization Receivable 7,298 7,219
--------- ----------

NET CASH PROVIDED BY INVESTING ACTIVITIES 7,222 6,892

CASH FLOWS FROM FINANCING ACTIVITIES

Payment of Securitization Bonds Principal (7,120) (6,922)
--------- ----------

NET CASH (USED IN) FINANCING ACTIVITIES (7,120) (6,922)

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS - -

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD - -
--------- ----------

CASH AND CASH EQUIVALENTS, END OF PERIOD $ - $ -
========= ==========


The accompanying notes are an integral part of these statements.

7



CONSUMERS FUNDING LLC
STATEMENTS OF MEMBER'S EQUITY
(UNAUDITED)



THREE MONTHS ENDED
MARCH 31 2005 2004
- -------- ----------------------
In Thousands

BALANCE AT BEGINNING OF PERIOD $ 2,343 $ 2,343

Add:
Net Income - -
--------- ----------

BALANCE AT END OF PERIOD $ 2,343 $ 2,343
========= ==========


The accompanying notes are an integral part of these statements.

8


CONSUMERS FUNDING LLC

NOTES TO FINANCIAL STATEMENTS

1. ORGANIZATION AND NATURE OF OPERATIONS

Consumers Funding, a Delaware limited liability company, whose sole member is
Consumers, was formed by Consumers on October 11, 2000. On January 22, 2001,
Consumers completed a $1,000 equity contribution to Consumers Funding. Consumers
is an electric and gas utility and is a wholly owned subsidiary of CMS Energy
Corporation. Consumers Funding was organized for the purposes of purchasing and
owning securitization property (see below), issuing securitization bonds,
pledging its interest in securitization property and other collateral to the
trustee to collateralize the securitization bonds, and performing activities
that are necessary, suitable or convenient to accomplish these purposes.

Securitization property represents the irrevocable right of Consumers, or its
successor or assignee, to collect a nonbypassable Securitization Charge from
customers in accordance with an October 24, 2000 MPSC Financing Order (MPSC
Financing Order). As modified by rehearing on January 4, 2001, the MPSC
Financing Order authorizes the Securitization Charge to be sufficient to recover
$468.6 million aggregate principal amount of securitization bonds, plus an
amount sufficient to provide for any credit enhancement, to fund any reserves
and to pay interest, redemption premiums, if any, servicing fees and other
expenses relating to the securitization bonds. For financial reporting purposes,
the purchase of the securitization property has been accounted for as a
financing arrangement by Consumers Funding in the amount of $468.6 million.
Accordingly, Consumers Funding has classified the purchase of securitization
property as a securitization receivable from Consumers in the financial
statements.

Consumers Funding's organizational documents require it to operate in a manner
so that it would not be consolidated into the bankruptcy estate of Consumers in
the event Consumers becomes subject to a bankruptcy proceeding. Consumers and
Consumers Funding have agreed that in the event of Consumers' bankruptcy, the
parties will treat the transfer of the securitization property to Consumers
Funding as a true sale. The securitization bonds are treated as debt obligations
of Consumers Funding. For financial reporting, Federal income tax and State of
Michigan and franchise tax purposes, the transfer of securitization property to
Consumers Funding is treated as part of a financing arrangement and not as a
sale. Furthermore, the results of operations of Consumers Funding are
consolidated with Consumers' financial statements for financial and income tax
reporting purposes.

Consumers Funding is legally separate from Consumers. The assets and income of
Consumers Funding, including without limitation, the securitization property,
are not available to creditors of Consumers or CMS Energy Corporation.

On November 8, 2001, Consumers Funding issued $468.6 million of securitization
bonds, Series 2001-1, in six different classes. Consumers Funding used the
proceeds to fund the purchase of securitization property from Consumers. The
principal amount of the securitization bonds, interest, fees and required
overcollateralization for the securitization bonds, will be recovered through
Securitization Charges collected from electric retail customers taking delivery
of electricity from Consumers or its successor based on MPSC approved rate
schedules and as permitted by contracts between Consumers and certain specific
customers.

Consumers, as servicer, collects Securitization Charges from its customers and
deposits collections daily into the General Subaccount held by the trustee, The
Bank of New York. The trustee is required to use these funds to make principal
and interest payments on the securitization bonds and to pay certain fees and
expenses of Consumers Funding.

Consumers Funding has no employees. Under the servicing agreement with
Consumers, Consumers is required to manage and administer the securitization
property and to collect Securitization Charges on

9


Consumers Funding's behalf. Consumers receives a monthly servicing fee of one
twelfth times 0.25 percent of the principal amount of securitization bonds
outstanding as of the payment date. The servicing agreement also requires
Consumers to file annual Securitization Charge adjustment requests with the
MPSC. These Securitization Charge adjustment requests are based on actual
Securitization Charge revenue collections and Consumers' updated assumptions as
to projected future deliveries of electricity to customers, expected
delinquencies and write-offs, future payments and expenses relating to
securitization property and the securitization bonds, any deficiency in the
Capital or Overcollateralization Subaccounts and any amounts on deposit in the
Reserve Subaccount.

2. SIGNIFICANT ACCOUNTING POLICIES

USE OF ESTIMATES

The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions. These estimates and assumptions affect the reported amount of
revenues, expenses, assets, and liabilities and disclosure of contingencies.
Actual results could differ from these estimates.

INCOME TAXES

Consumers Funding has elected not to be taxed as a corporation for Federal
income tax purposes. Consumers Funding is treated as a division of Consumers,
and accordingly, will not be treated as a separate taxable entity.

RESTRICTED CASH

The trustee has established the following subaccounts for the securitization
bonds.

GENERAL SUBACCOUNT: The General Subaccount is comprised of Securitization Charge
collections and interest earned from short-term investments. These amounts
accumulate until the trustee pays principal, interest, service and
administration fees and other expenses. The General Subaccount totaled $12.3
million at March 31, 2005 and $12.4 million at December 31, 2004. These funds
are used by the trustee for the scheduled payments of principal and interest to
bondholders and to pay expenses of Consumers Funding.

RESERVE SUBACCOUNT: The Reserve Subaccount includes any Securitization Charge
collections in excess of the amounts required in the General,
Overcollateralization and Capital Subaccounts. The trustee will draw funds from
this subaccount if the General Subaccount is insufficient to make scheduled
payments. The Reserve Subaccount totaled approximately $1.8 million at March 31,
2005 and $1.7 million at December 31, 2004.

OVERCOLLATERALIZATION SUBACCOUNT: On each payment date, the trustee will deposit
in the Overcollateralization Subaccount a predetermined, specified amount so
that the account balance ultimately reaches the required amount of $2.3 million,
which represents 0.5 percent of the initial outstanding principal balance of the
securitization bonds. If amounts available in the General Subaccount and the
Reserve Subaccount are not sufficient on any payment date to make scheduled
payments to the securitization bondholders and to pay the required expenses,
fees and charges, the trustee will draw on the amounts in the
Overcollateralization Subaccount to make those payments. The
Overcollateralization Subaccount totaled approximately $0.6 million at March 31,
2005 and $0.5 million at December 31, 2004.

CAPITAL SUBACCOUNT: The Capital Subaccount was established on November 8, 2001.
Consumers deposited $2.3 million into the Capital Subaccount, an amount equal to
0.5 percent of the initial principal balance of the securitization bonds. If
amounts available in the General Subaccount, the Reserve Subaccount and the
Overcollateralization Subaccount are not sufficient on any payment date to make
scheduled payments of principal and interest to the securitization bondholders
and to pay the expenses, fees and charges of Consumers

10


Funding, the trustee will draw on amounts in the Capital Subaccount to make
those payments. The Capital Subaccount contained a balance of $2.4 million at
March 31, 2005 and $2.4 million at December 31, 2004.

3. LONG-TERM DEBT

On November 8, 2001, Consumers Funding issued $468.6 million of securitization
bonds, in six classes at interest rates ranging from 2.59 percent to 5.76
percent. Consumers Funding used the proceeds from the securitization bonds to
purchase securitization property from Consumers. As of March 31, 2005, Consumers
Funding has retired all of the class A-1 securitization bonds and $51.5 million
of the class A-2 securitization bonds in accordance with the bond amortization
schedule.

Scheduled maturities and interest rates for the remaining securitization bonds
at March 31, 2005 are as follows:



Expected
Principal Final Final
Bond Balance Payment Maturity
Class Rate (in thousands) Date Date
- ------------------ ---- -------------- ---------------- ----------------

A-2 3.80% $ 32,540 April 20, 2006 April 20, 2008
A-3 4.55% 31,000 April 20, 2007 April 20, 2009
A-4 4.98% 95,000 April 20, 2010 April 20, 2012
A-5 5.43% 117,000 April 20, 2013 April 20, 2015
A-6 5.76% 115,592 October 20, 2015 October 20, 2016
--------

Total $391,132
Current Maturities (28,870)
--------
Long-Term Debt $362,262
========


The amortization schedule for the securitization bonds provided for an initial
payment to bondholders on July 20, 2002 and then quarterly thereafter. The
following table provides the expected principal retirement of the securitization
bonds during the remainder of 2005, the next five calendar years, and
thereafter:



Principal
Retirement
Year (in thousands)
- ---------- --------------

2005 $ 21,527
2006 29,591
2007 30,763
2008 32,130
2009 33,589
2010 35,152
Thereafter 208,380
--------
Total Debt $391,132
========


As scheduled, on April 20, 2005, $7.1 million of class A-2 securitization bonds
were retired.

11


4. FAIR VALUE OF FINANCIAL INSTRUMENTS

Restricted cash is on deposit with the trustee and, by definition, is carried at
its fair value. Consumers Funding had a financial asset (representing its
securitization receivable from Consumers) with an estimated fair value of $392
million at March 31, 2005 and $407 million at December 31, 2004 compared to the
carrying amounts of $381 million at March 31, 2005 and $388 million at December
31, 2004. Consumers Funding had a financial liability (representing the
securitization bonds) with an estimated fair value of $403 million at March 31,
2005 and $417 million at December 31, 2004 compared to carrying amounts of $391
million at March 31, 2005 and $398 million at December 31, 2004. The fair values
of Consumers Funding's financial instruments are based on quoted market (ask)
prices for the securitization bonds (as quoted on the Bloomberg system).

5. SIGNIFICANT AGREEMENTS AND RELATED PARTY TRANSACTIONS

Consumers Funding has a securitization receivable with Consumers in the amount
of approximately $381 million as of March 31, 2005, and $388 million as of
December 31, 2004. Consumers Funding recognized interest income totaling $5.1
million for the three months ended March 31, 2005, and $5.5 million for the
three months ended March 31, 2004. In addition, Consumers Funding recognized
other operating revenue from Consumers totaling approximately $0.3 million for
the three months ended March 31, 2005, and approximately $0.3 million for the
three months ended March 31, 2004.

Under the servicing and administration agreements, Consumers is required to
manage and administer the securitization property of Consumers Funding, and to
collect the Securitization Charge on Consumers Funding's behalf. Consumers
Funding pays Consumers a servicing fee (see Note 1) and an annual administrative
fee. These fees are payable to Consumers on each scheduled quarterly payment
date. Consumers Funding recorded expenses relating to these fees totaling
approximately $0.3 million for the three months ended March 31, 2005, and
approximately $0.3 million for the three months ended March 31, 2004.

12


CONSUMERS FUNDING LLC

PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits.

See Exhibit Index that appears following the Signature page to
this report.

(b) Reports on Form 8-K:

None

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

None.

13


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

CONSUMERS FUNDING LLC

By: /s/ Laura L. Mountcastle Date: May 3, 2005
-------------------------
Laura L. Mountcastle
President, Chief Executive Officer,
Chief Financial Officer and Treasurer

By: /s/ Glenn P. Barba Date: May 3, 2005
-------------------------
Glenn P. Barba
Vice President and Controller

14


INDEX TO EXHIBITS

EXHIBIT NO. DESCRIPTION
- ----------- -----------
10(a) Monthly Servicer's Certificate dated February 15, 2005

10(b) Monthly Servicer's Certificate dated March 14, 2005

10(c) Monthly Servicer's Certificate dated April 18, 2005

10(d) Quarterly Servicer's Certificate dated April 18, 2005

31 Consumers Funding LLC's certification pursuant to Section
302 of the Sarbanes-Oxley Act of 2002

32 Consumers Funding LLC's certification pursuant to Section
906 of the Sarbanes-Oxley Act of 2002


15