Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CONSUMERS ENERGY CO | d312142d8k.htm |
Exhibit 99.1
Morgan Stanley Utilities Conference
March 8, 2012
Foote Hydro 1918
Zeeland 2007
Lake Winds 2012
This presentation is made as of the date hereof and 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” sections of CMS Energy’s and Consumers Energy’s Form 10-K for the year ended December 31 and as updated in subsequent 10-Qs. 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. CMS Energy and Consumers Energy undertake no obligation to update any of the information presented herein to reflect facts, events or circumstances after the date hereof.
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.
Reported earnings could vary because of several factors, such as legacy issues associated with prior asset sales. Because of those uncertainties, the company is not providing reported earnings guidance.
2
Business Model . . . .
RESULTS –Consistent Financial Performance
Investment
Risk Mitigation
Enablers
Michigan Energy Law
Supportive regulation
Customer focus Self-Imposed
O&M cost flat to down Limits
Base rates < inflation
Sales recovery
Non-Utility improvements
Cash from NOLs
. . . . drivesrives strong performance.
3
SELF-IMPOSED LIMIT – Capital Investment . . . .
2012 – 2016 Plan Unrestrained $6.6 Billion $10 Billion
$6.6 Billion
• Pipe replacements
• Pole replacements
• New gas generation
• Faster smart grid
$10 Billion
>4%
Customer rates <2%
. . . . holdsolds down customer base rate increases.
4
SELF-IMPOSED LIMIT – Capital Investment . . . .
2012 – 2016 Plan Unrestrained $6.6 Billion $10 Billion
Renewables Distribution
$0.5 $1.7
Reliability
$1.2 Pipes &
Poles
Smart Grid
Smart Grid
$0.3 Generation
Generation
$0.5
Environmental Other
$1.5 $0.6
Customer rates <2%
>4%
. . . . mixix may change.
5
ENABLER – O&M Cost Control . . . .
7.5%
3.3%
-4% -1%
Average Customer Rates 2002-2006 2007-2011 2012 2012-2016
Electric
Base a 1% 3% 1% 1%
Fuel & Purchased Power 2 4 2 3
Gas
Base a 2% 2% 2% 2%
_ Commodity 14(4)(5)(3)
a Includes surcharges
. . . . holds down rates and facilitates better system reliability.
6
ENABLER – Sales Recovery . . . .
Electric Salesa Electric Salesa vs Prior
GWh Up 5%
40,000 2010 to 2012
6% decline
35,000 2007 to 2009
30,000
25,000 Up 9%
1983 &1984
7% decline
20,000 1979 to 1982
15,0000
1975 1979 1983 1987 1991 1995 1999 2003 2007 20112012
Years
+2.1% +2.2%
+1.7%
+1.3%
-0.7% +5%
-2.0%
-3.0%
-6%
2006 2007 2008 2009 2010 2011 2012
a Weather adjusted
. . . . adds rate “headroom”.
7
ENABLER – Enterprises & EnerBank . . . .
Summary Enterprises and EnerBank
2012 Operating
EPS a Cash Flow a
(mils)
Utility
Electric $1.34
Gas 0.52
Total Utility $1.86 $1,329
vs 2011 +6%
Enterprises .04 18
vs 2011 +100%
EnerBank .04 +33% 15
vs 2011 +19%
Interest and other(0.39)(112)
vs 2011 -5%
Total Company $1.52-$1.55 $1,250
_ Better vs 2011 +7%
a Non-GAAP; segments’ EPS at higher end of guidance
Michigan Power
(Livingston) Grayling
Filer City Genesee
EnerBank HQ
Michigan Power DIG
(Kalamazoo
Renewables River)
Other Craven
Ownership Gross
Plant Fuel Interest Capacity
(MW)
Craven Wood 50% 50
DIG/MI Power Natural gas 100 934
Filer City Coal 50 73
Genesee Wood 50 40
Grayling Wood 50 38
. . . . provide growth without capital.
8
RISK MITIGATION . . . .
Risk Mitigation
Economy Sluggish recovery or • Customer focus
downturn • Back-up liquidity
Capital Investments Regulatory recovery • Priority projects
• Regulatory alignment
Regulatory / Political ROA and customer • ROA “cap”
rate pressure • Base rate increases <
“inflation”
Commodities (prices) Regulatory • Follow MPSC-approved plan
alignment to ensure recovery
Capital Structure Interest rates • Maintain flexibility
• Thick liquidity
• Prefund obligations
Shareowner Return Sustainable returns; • Risk management
interest rates • Consistent EPS performance
• Attractive dividend policy
. . . customerustomer focus key.
9
Liquidity (as of 12/30/11) . . . .
Availability Parent Debt Strategy
$1.6 Billion
CMS Energy
5-year revolver—2016 $547 mils
29%
Market Cap
Consumers Energy
5-year revolver—2016 499
3-year revolver—2013 150
A/R Facility—2012 250
Cash 161
• Thick liquidity – 2x peers
• Pre-funding
• Robust backup plan
. . . . strongtrong and conservative.
10
2012 Sensitivities . . . .
Annual Impact
Sensitivity EPS OCF
(mils)
Sales (weather adjusted) a
• Electric (37,395 Gwh) + 1% $0.05 + $20
• Gas (287 Bcf) + 1 + 0.01 + 5
Gas prices (NYMEX) + 1.00 –+ 0.01 –+ 60
Uncollectible accounts (mils) + 5 –+ 0.01*
ROE (authorized)
• Electric (10.7%) + 20 bps + 0.02 + 10
• Gas (10.5%) + 20 + 0.01 + 4
_ Stock price (dilution) $1 share + 0.01 0
* Less than 0.5¢ or $500,000
a Reflect 2011 sales forecast
. . . . partly mitigated.
11
RESULTS – Operating Cash Flow Growth . . . .
Amount
(bils)
$ 2.5
Gross operating cash flowa
up $0.1 billion per year $2.1
$2.0
2.0 $1.9
$1.8
$1.7
$1.5 $1.6
1.5 Interest
Working capital and taxes
1.0
Base Investment
0.5
Investment choices
0.0
Cash flow before dividend
(0.5)
2010 2011 2012 2013 2014 2015 2016
NOLs _ & _ Credits _ $0.8 $0.8 $0.7 $0.5 $0.3 $0.2 $0.1
a Non-GAAP
12
Michigan Energy Law . . . .
2008 Law Regulation
Growth
• Renewable energy plan
• Energy optimization
Speed
• File and implement ratemaking
• Forward test year
Risk Mitigation
• Retail open access cap
• Decoupling
John Quackenbush, Chairman Appointed: 9/15/11 Term Ends: 7/2/17 Republican
Orjiakor Isiogu, Commissioner Appointed: 9/9/07 Term Ends: 7/2/13 Democrat
Greg White, Commissioner Appointed: 12/4/09 Term Ends: 7/2/15 Independent
. . . . enables timely rate recovery and mitigates risks.
13
Rate Case Timeline
2008 2009 2010 2011 2012
ELECTRIC Offsets
Filed Filed Filed Renewables $(57)
$214 M $178 M $195 M DOE(23)
Increase Increase Increase Total $(80)
Self- Final Self- Final Self-
implement Order implement Order implement
$179 M $139 M $150 M $146 M $118 M
New Decision
Energy 78% 97%%
Law
GAS Filed Filed Filed
$114 M 74% $55 M $49 M
Increase Increase Increase
Self- Final Final Self-
implement Order Order implement Decision
$89 M $66 M $31 M $23 M
2008 2009 2010 2011 2012
Frequent and streamlined rate case strategy continues.
14
Ongoing Regulatory Strategy . . . .
• Michigan investment
• Base rate increases at or below rate of inflation
• Rate “offset tactics”
• Maximize communication and alignment
. . . . balances customer interests and investor certainty.
15
Strategic Enhancements
• Process improvement
– Limiting “issues”
– Focus on important items
• Customer Value Initiative
– Performance based rates
• Reduce volatility
– Decoupling mechanisms
– Capital Investment tracker
– Expenses (UAs, Storms, Benefits)
Plan execution drives results.
16
RESULTS– EPS a and Dividend Growth . . . .
EPS Dividend
$1.55
$1.52 7%
5%
$1.45
$1.36
$1.26
$1.21 b
$1.08
$0.96
$0.90
$0.84
$0.81
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Future
a Adjusted EPS (non-GAAP) excluding MTM in 2004-2006
b $1.25 excluding discontinued Exeter operations and accounting changes related to
convertible debt and restricted stock
14% 96¢
84¢
27%
32% 66¢
39% 50¢
36¢
80%
20¢
0
2006 2007 2008 2009 2010 2011 2012
Payout 0% 25% 30% 40% 49% 58% 62%
. . . . providerovide strong TSR.
17
Total Shareowner Return . . . .
Investment Considerations TSR up 9% to 11%
• Predictable and visible earnings growth
• Affordable, sustainable rates
– Customer focus
– Needed investment
– Regulatory support
• Strong risk mitigation
Dividend Yield
EPS Growth
. . . . upp 9% to 11%.
18
APPENDIX
Capital Expenditures
Plan 2012-2016
2012 2013 2014 2015 2016 Total
(mils) (mils) (mils) (mils) (mils) (mils)
Electric
Distribution $ 198 $ 188 $ 196 $ 191 $ 193 $ 966
Generation 101 79 136 78 130 524
New customers 31 31 35 40 39 176
Other 93 84 70 73 75 $ 395
Base capital $ 423 $ 382 $ 437 $ 382 $ 437 $ 2,061
Gas
Distribution $ 130 $ 144 $ 145 $ 145 $ 145 $ 709
New customers $ 29 $ 18 $ 20 $ 21 $ 22 $ 110
Other 56 52 47 39 40 234
Base capital $ 215 $ 214 $ 212 $ 205 $ 207 $ 1,053
Total base capital $ 638 $ 596 $ 649 $ 587 $ 644 $ 3,114
Investment choices:
Environmental $ 268 $ 349 $ 320 $ 356 $ 260 $ 1,553
Reliability 250 236 249 209 212 1,156
Renewables 186 24 112 228 8 558
Smart Grid 61 51 53 54 47 266
Total choices $ 765 $ 660 $ 734 $ 847 $ 527 $ 3,533
Total Utility $ 1,403 $ 1,256 $ 1,383 $ 1,434 $ 1,171 $ 6,647
20
Credit Ratings
CMS Energy Consumers Energy
(Senior Unsecured) (Senior Secured)
Moody’s Ba1/Stable A3/Stable
S&P BB+/Stable BBB+/Stable
Fitch BB+/Stable A-Stable
21
GAAP RECONCILIATION
CMS ENERGY CORPORATION
Earnings Per Share By Year GAAP Reconciliation
(Unaudited)
| 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | ||||||||||||||||||||||||||||
| Reported earnings (loss) per share - GAAP |
($ | 0.30 | ) | $ | 0.64 | ($ | 0.44 | ) | ($ | 0.41 | ) | ($ | 1.02 | ) | $ | 1.20 | $ | 0.91 | $ | 1.28 | $ | 1.58 | ||||||||||||||
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| After-tax items: |
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| Electric and gas utility |
0.21 | (0.39 | ) | — | — | (0.07 | ) | 0.05 | 0.33 | 0.03 | 0.00 | |||||||||||||||||||||||||
| Enterprises |
0.74 | 0.62 | 0.04 | (0.02 | ) | 1.25 | (0.02 | ) | 0.09 | (0.03 | ) | (0.11 | ) | |||||||||||||||||||||||
| Corporate interest and other |
0.16 | (0.03 | ) | 0.04 | 0.27 | (0.32 | ) | (0.02 | ) | 0.01 | * | (0.01 | ) | |||||||||||||||||||||||
| Discontinued operations (income) loss |
(0.16 | ) | 0.02 | (0.07 | ) | (0.03 | ) | 0.40 | (* | ) | (0.08 | ) | 0.08 | (0.01 | ) | |||||||||||||||||||||
| Asset impairment charges, net |
— | — | 1.82 | 0.76 | 0.60 | — | — | — | — | |||||||||||||||||||||||||||
| Cumulative accounting changes |
0.16 | 0.01 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
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| Adjusted earnings per share, including MTM - non-GAAP |
$ | 0.81 | $ | 0.87 | $ | 1.39 | $ | 0.57 | $ | 0.84 | $ | 1.21 | (a) | $ | 1.26 | $ | 1.36 | $ | 1.45 | |||||||||||||||||
| Mark-to-market impacts |
0.03 | (0.43 | ) | 0.51 | ||||||||||||||||||||||||||||||||
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| Adjusted earnings per share, excluding MTM - non-GAAP |
NA | $ | 0.90 | $ | 0.96 | $ | 1.08 | NA | NA | NA | NA | NA | ||||||||||||||||||||||||
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| * | Less than $500 thousand or $0.01 per share. |
| (a) | $1.25 excluding discontinued Exeter operations and accounting changes related to convertible debt and restricted stock. |
2003-11 EPS
CMS ENERGY CORPORATION
Earnings By Quarter and Year GAAP Reconciliation
(Unaudited)
| (In millions, except per share amounts) | 2010 | |||||||||||||||||||
| 1Q | 2Q | 3Q | 4Q | YTD Dec | ||||||||||||||||
| Reported net income - GAAP |
$ | 85 | $ | 80 | $ | 134 | $ | 25 | $ | 324 | ||||||||||
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| After-tax items: |
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| Electric and gas utility |
6 | * | — | — | 6 | |||||||||||||||
| Enterprises |
1 | (31 | ) | (2 | ) | 24 | (8 | ) | ||||||||||||
| Corporate interest and other |
* | * | — | * | * | |||||||||||||||
| Discontinued operations loss |
1 | 16 | * | 6 | 23 | |||||||||||||||
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| Adjusted income - non-GAAP |
$ | 93 | $ | 65 | $ | 132 | $ | 55 | $ | 345 | ||||||||||
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| Average shares outstanding, basic |
228.0 | 228.2 | 229.0 | 240.7 | 231.5 | |||||||||||||||
| Average shares outstanding, diluted |
246.5 | 247.6 | 254.7 | 258.4 | 252.9 | |||||||||||||||
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| Reported earnings per share - GAAP |
$ | 0.34 | $ | 0.32 | $ | 0.53 | $ | 0.09 | $ | 1.28 | ||||||||||
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| After-tax items: |
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| Electric and gas utility |
0.03 | * | — | — | 0.03 | |||||||||||||||
| Enterprises |
* | (0.13 | ) | (0.01 | ) | 0.10 | (0.03 | ) | ||||||||||||
| Corporate interest and other |
* | * | — | * | * | |||||||||||||||
| Discontinued operations loss |
0.01 | 0.07 | * | 0.02 | 0.08 | |||||||||||||||
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| Adjusted earnings per share - non-GAAP |
$ | 0.38 | $ | 0.26 | $ | 0.52 | $ | 0.21 | $ | 1.36 | ||||||||||
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| (In millions, except per share amounts) | 2011 | |||||||||||||||||||
| 1Q | 2Q | 3Q | 4Q | YTD Dec | ||||||||||||||||
| Reported net income - GAAP |
$ | 135 | $ | 100 | $ | 139 | $ | 41 | $ | 415 | ||||||||||
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| After-tax items: |
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| Electric and gas utility |
— | — | — | — | — | |||||||||||||||
| Enterprises |
* | (28 | ) | * | 1 | (27 | ) | |||||||||||||
| Corporate interest and other |
— | (4 | ) | — | * | (4 | ) | |||||||||||||
| Discontinued operations income |
(2 | ) | * | * | * | (2 | ) | |||||||||||||
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| Adjusted income - non-GAAP |
$ | 133 | $ | 68 | $ | 139 | $ | 42 | $ | 382 | ||||||||||
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| Average shares outstanding, basic |
250.0 | 250.3 | 251.3 | 251.7 | 250.8 | |||||||||||||||
| Average shares outstanding, diluted |
261.7 | 261.9 | 263.9 | 265.5 | 263.4 | |||||||||||||||
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| Reported earnings per share - GAAP |
$ | 0.52 | $ | 0.38 | $ | 0.53 | $ | 0.15 | $ | 1.58 | ||||||||||
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| After-tax items: |
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| Electric and gas utility |
— | — | — | — | — | |||||||||||||||
| Enterprises |
* | (0.11 | ) | * | * | (0.11 | ) | |||||||||||||
| Corporate interest and other |
— | (0.01 | ) | — | * | (0.01 | ) | |||||||||||||
| Discontinued operations income |
(0.01 | ) | * | * | * | (0.01 | ) | |||||||||||||
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| Adjusted earnings per share - non-GAAP |
$ | 0.51 | $ | 0.26 | $ | 0.53 | $ | 0.15 | $ | 1.45 | ||||||||||
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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. |
2011 A-1
CMS Energy Corporation
Earnings Segment Results GAAP Reconciliation
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31 |
2011 | 2010 | 2011 | 2010 | ||||||||||||
| Electric Utility |
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| Reported |
$ | 0.09 | $ | 0.08 | $ | 1.27 | $ | 1.20 | ||||||||
| Downsizing Program |
— | — | — | 0.02 | ||||||||||||
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| Adjusted |
$ | 0.09 | $ | 0.08 | $ | 1.27 | $ | 1.22 | ||||||||
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| Gas Utility |
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| Reported |
$ | 0.16 | $ | 0.22 | $ | 0.49 | $ | 0.50 | ||||||||
| Downsizing Program |
— | — | — | 0.01 | ||||||||||||
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| Adjusted |
$ | 0.16 | $ | 0.22 | $ | 0.49 | $ | 0.51 | ||||||||
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| Enterprises |
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| Reported |
$ | (0.01 | ) | $ | (0.07 | ) | $ | 0.13 | $ | 0.14 | ||||||
| Tax Changes |
— | — | (0.11 | ) | — | |||||||||||
| Asset Sales (Gains) Losses and Other |
* | 0.10 | * | (0.03 | ) | |||||||||||
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| Adjusted |
$ | (0.01 | ) | $ | 0.03 | $ | 0.02 | $ | 0.11 | |||||||
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| Corporate Interest and Other |
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| Reported |
$ | (0.09 | ) | $ | (0.12 | ) | $ | (0.32 | ) | $ | (0.48 | ) | ||||
| Tax Changes |
— | — | (0.01 | ) | — | |||||||||||
| Asset Sales Gains and Other |
* | * | * | * | ||||||||||||
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| Adjusted |
$ | (0.09 | ) | $ | (0.12 | ) | $ | (0.33 | ) | $ | (0.48 | ) | ||||
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| Discontinued Operations |
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| Reported |
$ | * | $ | (0.02 | ) | $ | 0.01 | $ | (0.08 | ) | ||||||
| Discontinued Operations (Income) Loss |
(* | ) | 0.02 | (0.01 | ) | 0.08 | ||||||||||
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| Adjusted |
$ | — | $ | — | $ | — | $ | — | ||||||||
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| Totals |
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| Reported |
$ | 0.15 | $ | 0.09 | $ | 1.58 | $ | 1.28 | ||||||||
| Discontinued Operations (Income) Loss |
(* | ) | 0.02 | (0.01 | ) | 0.08 | ||||||||||
| Downsizing Program |
— | — | — | 0.03 | ||||||||||||
| Tax Changes |
— | — | (0.12 | ) | — | |||||||||||
| Asset Sales (Gains) Losses and Other |
* | 0.10 | * | (0.03 | ) | |||||||||||
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| Adjusted |
$ | 0.15 | $ | 0.21 | $ | 1.45 | $ | 1.36 | ||||||||
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| Average Common Shares Outstanding - Diluted (in millions) |
265.5 | 258.4 | 263.4 | 252.9 | ||||||||||||
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| * | Less than $0.01 per share. |
2011 A-2
Consumers Energy
2011 Cash Flow GAAP Reconciliation (in millions) (unaudited)
| Reclassifications From Sources and Uses to Statement of Cash Flows | Consolidated Statements of Cash Flows | |||||||||||||||||||||||||||||||||||||
| Presentation Sources and Uses |
Tax Sharing Operating |
Interest Payments as Operating |
Other Working Capital as Investing |
Capital Lease Pymts as Financing |
Securitization Debt Pymts as Financing |
Preferred Dividends as Financing |
Common Dividends as Financing |
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| Description |
non-GAAP Amount |
GAAP Amount |
Description | |||||||||||||||||||||||||||||||||||
| Cash at year end 2010 |
$ | 71 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 71 | Cash at year end 2010 | |||||||||||||||||||
| Sources |
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| Operating |
$ | 1,527 | ||||||||||||||||||||||||||||||||||||
| Other working |
219 | |||||||||||||||||||||||||||||||||||||
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| Sources |
$ | 1,746 | $ | 23 | $ | (231 | ) | $ | (276 | ) | $ | 24 | $ | 37 | $ | — | $ | — | $ | 1,323 | Net cash provided by operating activities | |||||||||||||||||
| Uses |
||||||||||||||||||||||||||||||||||||||
| Interest and |
$ | (233 | ) | |||||||||||||||||||||||||||||||||||
| Pension Contribution |
(242 | ) | — | |||||||||||||||||||||||||||||||||||
| Capital expenditures |
(985 | ) | — | |||||||||||||||||||||||||||||||||||
| Dividends/tax |
(351 | ) | ||||||||||||||||||||||||||||||||||||
|
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|
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|
|
|
|
|
|
|
|||||||||||||||||||||
| Uses |
$ | (1,811 | ) | $ | (23 | ) | $ | 231 | $ | 276 | $ | — | $ | — | $ | 2 | $ | 374 | $ | (951 | ) | Net cash provided by investing activities | ||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Cash flow |
$ | (65 | ) | $ | — | $ | — | $ | — | $ | 24 | $ | 37 | $ | 2 | $ | 374 | $ | 372 | Cash flow from operating and investing activities | ||||||||||||||||||
| Financing |
||||||||||||||||||||||||||||||||||||||
| Equity |
$ | 125 | ||||||||||||||||||||||||||||||||||||
| New Issues |
— | |||||||||||||||||||||||||||||||||||||
| Retirements |
— | |||||||||||||||||||||||||||||||||||||
| Net short-term |
(46 | ) | ||||||||||||||||||||||||||||||||||||
|
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|
|||||||||||||||||||||
| Financing |
$ | 79 | $ | — | $ | — | $ | — | $ | (24 | ) | $ | (37 | ) | $ | (2 | ) | $ | (374 | ) | $ | (358 | ) | Net cash provided by financing activities | ||||||||||||||
|
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|
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|
|
|
|
|||||||||||||||||||||
| Net change |
$ | 14 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 14 | Net change in cash | |||||||||||||||||||
|
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|
|||||||||||||||||||||
| Cash at year end 2011 |
$ | 85 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 85 | Cash at year end 2011 | |||||||||||||||||||
|
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|||||||||||||||||||||
2011 A-3
CMS Energy Parent
2011 Cash Flow GAAP Reconciliation (in millions) (unaudited)
| Reclassifications From Sources and Uses to Statement of Cash Flows | ||||||||||||||||||||||||||||||||||
| Presentation Sources and Uses |
Interest Payments as Operating |
Overheads & Tax Payments as Operating |
Other Uses (a) as Operating |
Financing as Operating and Investing |
Other and Rounding |
Cash
From Consolidated Companies |
Consolidated Statements of Cash Flows | |||||||||||||||||||||||||||
| Description |
non-GAAP Amount |
GAAP Amount |
Description | |||||||||||||||||||||||||||||||
| Cash at year end 2010 |
$ | 163 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 13 | $ | 176 | Cash at year end 2010 | |||||||||||||||||
| Sources |
||||||||||||||||||||||||||||||||||
| Consumers Energy dividends/tax sharing |
$ | 351 | ||||||||||||||||||||||||||||||||
| Enterprises |
24 | — | — | |||||||||||||||||||||||||||||||
|
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|
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|
|
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|
|||||||||||||||||||
| Sources |
$ | 375 | $ | (127 | ) | $ | (23 | ) | $ | (7 | ) | $ | (9 | ) | $ | — | $ | 11 | $ | 220 | Net cash provided by operating activities | |||||||||||||
| Uses |
||||||||||||||||||||||||||||||||||
| Interest and preferred dividends |
$ | (127 | ) | |||||||||||||||||||||||||||||||
| Overhead and Federal tax payments |
(23 | ) | ||||||||||||||||||||||||||||||||
| Equity infusions |
(125 | ) | ||||||||||||||||||||||||||||||||
| Pension contribution |
(8 | ) | ||||||||||||||||||||||||||||||||
|
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|
|
|
|
|
|
|||||||||||||||||||
| Uses (a) |
$ | (283 | ) | $ | 127 | $ | 23 | $ | 7 | $ | (4 | ) | $ | — | $ | (102 | ) | $ | (232 | ) | Net cash provided by investing activities | |||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Cash flow |
$ | 92 | $ | — | $ | — | $ | — | $ | (13 | ) | $ | — | $ | (91 | ) | $ | (12 | ) | Cash flow from operating and investing activities | ||||||||||||||
| Financing and dividends |
||||||||||||||||||||||||||||||||||
| New Issues |
$ | 250 | ||||||||||||||||||||||||||||||||
| Retirements |
(262 | ) | ||||||||||||||||||||||||||||||||
| Equity programs (DRP, continuous equity) |
29 | |||||||||||||||||||||||||||||||||
| Net short-term financing & other |
(5 | ) | ||||||||||||||||||||||||||||||||
| Common dividend |
(211 | ) | ||||||||||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Financing |
$ | (199 | ) | $ | — | $ | — | $ | — | $ | 13 | $ | (2 | ) | $ | 98 | $ | (90 | ) | Net cash provided by financing activities | ||||||||||||||
|
|
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|
|
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|
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|
|
|
|
|
|
|
|||||||||||||||||||
| Net change in cash |
$ | (107 | ) | $ | — | $ | — | $ | — | $ | — | $ | (2 | ) | $ | 7 | $ | (102 | ) | |||||||||||||||
| Change in Cash and Cash Equivalents |
— | — | — | — | — | 2 | — | 2 | ||||||||||||||||||||||||||
|
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|
|
|
|||||||||||||||||||
| Cash at year end 2011 |
$ | 56 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 20 | $ | 76 | Cash at year end 2011 | |||||||||||||||||
|
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|
|
|||||||||||||||||||
| (a) | Includes other and roundings |
2011 A-4
Consolidated CMS Energy
2011 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 Common Dividend as Financing |
Equity Infusions to Consumers |
||||||||||||||||||||
| Consumers Amount |
CMS Parent Amount |
Consolidated Statements of Cash Flows | ||||||||||||||||||||
| Description |
Amount | Description | ||||||||||||||||||||
| Cash at year end 2010 |
$ | 71 | $ | 176 | $ | — | $ | — | $ | 247 | Cash at year end 2010 | |||||||||||
| Net cash provided by operating activities |
$ | 1,323 | $ | 220 | $ | (374 | ) | $ | — | $ | 1,169 | Net cash provided by operating activities | ||||||||||
| Net cash provided by investing activities |
(951 | ) | (232 | ) | — | 125 | (1,058 | ) | Net cash provided by investing activities | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Cash flow from operating and investing activities |
$ | 372 | $ | (12 | ) | $ | (374 | ) | $ | 125 | $ | 111 | Cash flow from operating and investing activities | |||||||||
| Net cash provided by financing activities |
$ | (358 | ) | $ | (90 | ) | $ | 374 | $ | (125 | ) | $ | (199 | ) | Net cash provided by financing activities | |||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net change in cash |
$ | 14 | $ | (102 | ) | $ | — | $ | — | $ | (88 | ) | Net change in cash | |||||||||
| Change in Cash and Cash Equivalents |
— | 2 | — | — | 2 | Decrease (Increase) in Cash and Cash Equivalents | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Cash at year end 2011 |
$ | 85 | $ | 76 | $ | — | $ | — | $ | 161 | Cash at year end 2011 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2011 A-5
CMS Energy
Reconciliation of Gross Operating Cash Flow to GAAP Operating Activities
(unaudited)
(mils)
| 2004 | 2005 | 2006 | 2007 | 2008 | Five Year Average |
|||||||||||||||||||
| Utility Operating Income + Depreciation & Amortization |
$ | 1,022 | $ | 899 | $ | 1,021 | $ | 1,085 | $ | 1,317 | $ | 1,069 | ||||||||||||
| Enterprises Project Cash Flows |
131 | 294 | 154 | (30 | ) | 28 | 115 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Gross Operating Cash Flow |
$ | 1,153 | $ | 1,193 | $ | 1,175 | $ | 1,055 | $ | 1,345 | $ | 1,184 | ||||||||||||
| Other operating activies including taxes, interest payments and working capital |
(800 | ) | (595 | ) | (487 | ) | (1,032 | ) | (788 | ) | (740 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net cash provided by operating activites |
$ | 353 | $ | 598 | $ | 688 | $ | 23 | $ | 557 | $ | 444 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2004-2008 OCF
Consumers Energy
2012 Forecasted Cash Flow GAAP Reconciliation (in millions) (unaudited)
| Reclassifications From Sources and Uses to Statement of Cash Flows | ||||||||||||||||||||||||||||||||||||||
| Presentation Sources and Uses |
Tax Sharing Operating |
Interest Payments as Operating |
Other Working Capital as Investing |
Capital Lease Pymts as Financing |
Securitization Debt Pymts as Financing |
Preferred Dividends as Financing |
Common Dividends as Financing |
Consolidated Statements of Cash Flows | ||||||||||||||||||||||||||||||
| Description |
non-GAAP Amount |
GAAP Amount |
Description | |||||||||||||||||||||||||||||||||||
| Cash at year end 2011 |
$ | 85 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 85 | Cash at year end 2011 | |||||||||||||||||||
| Sources |
||||||||||||||||||||||||||||||||||||||
| Operating |
$ | 1,645 | ||||||||||||||||||||||||||||||||||||
| Other working capital |
(50 | ) | Net cash provided by operating activities | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Sources |
$ | 1,595 | $ | (105 | ) | $ | (233 | ) | $ | 9 | $ | 30 | $ | 39 | $ | — | $ | — | $ | 1,335 | ||||||||||||||||||
| Uses |
||||||||||||||||||||||||||||||||||||||
| Interest and preferred dividends |
$ | (235 | ) | |||||||||||||||||||||||||||||||||||
| Capital expenditures |
(1,400 | ) | ||||||||||||||||||||||||||||||||||||
| Dividends/tax sharing to CMS |
(500 | ) | Net cash provided by | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Uses |
$ | (2,135 | ) | $ | 105 | $ | 233 | $ | (9 | ) | $ | — | $ | — | $ | 2 | $ | 395 | $ | (1,409 | ) | investing activities | ||||||||||||||||
| Cash flow from | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Cash flow |
$ | (540 | ) | $ | — | $ | — | $ | — | $ | 30 | $ | 39 | $ | 2 | $ | 395 | $ | (74 | ) | operating and | |||||||||||||||||
| investing activities | ||||||||||||||||||||||||||||||||||||||
| Financing |
||||||||||||||||||||||||||||||||||||||
| Equity |
$ | 150 | ||||||||||||||||||||||||||||||||||||
| New Issues |
350 | |||||||||||||||||||||||||||||||||||||
| Retirements |
(300 | ) | ||||||||||||||||||||||||||||||||||||
| Net short-term financing & other |
280 | Net cash provided by financing activities | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Financing |
$ | 480 | $ | — | $ | — | $ | — | $ | (30 | ) | $ | (39 | ) | $ | (2 | ) | $ | (395 | ) | $ | 14 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Net change in cash |
$ | (60 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (60 | ) | Net change in cash | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Cash at year end 2012 |
$ | 25 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 25 | Cash at year end 2012 | |||||||||||||||||||
|
|
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
2012 B-1
CMS Energy Parent
2012 Forecasted Cash Flow GAAP Reconciliation (in millions) (unaudited)
| Reclassifications From Sources and Uses to Statement of Cash Flows | ||||||||||||||||||||||||||||||
| Presentation Sources and Uses |
Interest Payments as Operating |
Overheads & Tax Payments as Operating |
Other Uses (a) as Operating |
Financing as Operating |
Cash From Consolidated Companies |
Consolidated Statements of Cash Flows | ||||||||||||||||||||||||
| Description |
non-GAAP Amount |
GAAP Amount |
Description | |||||||||||||||||||||||||||
| Cash at year end 2011 |
$ | 56 | $ | — | $ | — | $ | — | $ | — | $ | 20 | $ | 76 | Cash at year end 2011 | |||||||||||||||
| Sources |
||||||||||||||||||||||||||||||
| Consumers Energy dividends/tax sharing |
$ | 500 | ||||||||||||||||||||||||||||
| Enterprises |
25 | Net cash provided by operating activities | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Sources |
$ | 525 | $ | (130 | ) | $ | (15 | ) | $ | (48 | ) | $ | (35 | ) | $ | 15 | $ | 312 | ||||||||||||
| Uses |
||||||||||||||||||||||||||||||
| Interest and preferred dividends |
$ | (130 | ) | |||||||||||||||||||||||||||
| Overhead and Federal tax payments |
(15 | ) | ||||||||||||||||||||||||||||
| Equity infusions |
(150 | ) | Net cash provided by investing activities | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Uses (a) |
$ | (355 | ) | $ | 130 | $ | 15 | $ | 48 | $ | — | $ | (141 | ) | $ | (303 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Cash flow |
$ | 170 | $ | — | $ | — | $ | — | $ | (35 | ) | $ | (126 | ) | $ | 9 | Cash flow from operating and investing activities | |||||||||||||
| Financing and dividends |
||||||||||||||||||||||||||||||
| New Issues |
$ | 480 | ||||||||||||||||||||||||||||
| Retirements |
(405 | ) | ||||||||||||||||||||||||||||
| Equity programs (DRP, continuous equity) |
30 | |||||||||||||||||||||||||||||
| Net short-term financing & other |
(1 | ) | ||||||||||||||||||||||||||||
| Common dividend |
(250 | ) | Net cash provided by | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Financing |
$ | (146 | ) | $ | — | $ | — | $ | — | $ | 35 | $ | 155 | $ | 44 | financing activities | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net change in cash |
$ | 24 | $ | — | $ | — | $ | — | $ | — | $ | 29 | $ | 53 | Net change in cash | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Cash at year end 2012 |
$ | 80 | $ | — | $ | — | $ | — | $ | — | $ | 49 | $ | 129 | Cash at year end 2012 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (a) | Includes other and roundings |
2012-B2
Consolidated CMS Energy
2012 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 Common Dividend as Financing |
Consumers Preferred Dividend as Operating |
Equity Infusions to Consumers |
|||||||||||||||||||||||
| Consumers Amount |
CMS
Parent Amount |
Consolidated Statements of Cash Flows | ||||||||||||||||||||||||
| Description |
Amount | Description | ||||||||||||||||||||||||
| Cash at year end 2011 |
$ | 85 | $ | 76 | $ | — | $ | — | $ | — | $ | 161 | Cash at year end 2011 | |||||||||||||
| Net cash provided by operating activities |
$ | 1,335 | $ | 312 | $ | (395 | ) | $ | (2 | ) | $ | — | $ | 1,250 | Net cash provided by operating activities | |||||||||||
| Net cash provided by investing activities |
(1,409 | ) | (303 | ) | — | — | 150 | (1,562 | ) | Net cash provided by investing activities | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Cash flow from |
$ | (74 | ) | $ | 9 | $ | (395 | ) | $ | (2 | ) | $ | 150 | $ | (312 | ) | Cash flow from | |||||||||
| operating and |
operating and | |||||||||||||||||||||||||
| investing activities |
investing activities | |||||||||||||||||||||||||
| Net cash provided by financing activities |
$ | 14 | $ | 44 | $ | 395 | $ | 2 | $ | (150 | ) | $ | 305 | Net cash provided by financing activities | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net change in cash |
$ | (60 | ) | $ | 53 | $ | — | $ | — | $ | — | $ | (7 | ) | Net change in cash | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Cash at year end 2012 |
$ | 25 | $ | 129 | $ | — | $ | — | $ | — | $ | 154 | Cash at year end 2012 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
2012 B-3