Cms Energy Corporation · NYSE:CMS
Cms Energy — Investor Day (October 2013)
76 slides from Cms Energy's investor day presentation, Oct 24, 2013
Slide 1: Investor Meeting
Investor Meeting Grand Rapids, Michigan October 24, 2013 Cross Winds Energy Park Consumers Smart Energy Program Gas Combined Cycle Plant
Slide 2: Agenda
Agenda • The Future - A View from the CEO 3:00-4:30 John Russell • Insights – CFO Perspective Tom Webb • Your Operating Management – Driving Results • Electric Generation & Energy Supply Dennis Dobbs • Smart Energy Patti Poppe • Pipeline Replacement & Safety Garrick Rochow • Electric Distribution Da
Slide 3: John Russell, President & CEO
CMS ENERGY John Russell J President & CEO if eo es
Slide 4: Welcome Grand Rapids
Welcome Grand Rapids • #2 Largest city in Michigan • 1,000,000 people • #1 City in the US to raise a family (Forbes, April 2012) • #2 Job growth for a US metro area since 2010 (CareerBuilder, September 2013) • #4 Best city in the US to find a job (Forbes, April 2013) JGR 1
Slide 5: Agenda
Agenda • The Future - A View from the CEO 3:00-4:30 John Russell • Insights – CFO Perspective Tom Webb • Your Operating Management – Driving Results • Electric Generation & Energy Supply Dennis Dobbs • Smart Energy Patti Poppe • Pipeline Replacement & Safety Garrick Rochow • Electric Distribution Da
Slide 6: Forward-looking statements
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, Rule 175 of the Securities Act of 1933, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. All f
Slide 7: 2013 EPS
2013 EPS a . . . . 2013 First Nine Months Full Year EPS $1.29 $1.65 - $1.66 Better/(Worse) Than • Plan +5¢ +1¢ to 2¢ • 2012 (2) +7% 2013 Target Adjusted EPS (non-GAAP) $1.63 - $1.66 5% - 7% Operating cash flow (bils) $1.3 Dividend payout ratio ≈ 62% Customer base rate increases < 2% FFO/Average debt
Slide 8: 2013 EPS Guidance
2013 EPS a Guidance . . . . $2.00 Original guidance 7% $1.66 $1.65 $1.55 $1.66 $1.45 $1.55 $1.63 $1.52 $1.36 $1.44 $1.35 2010 2011 2012 2013 2014 Beyond _____ a Adjusted EPS (non-GAAP) . . . . raised to the high end of the range to 7%. JGR 5
Slide 9: Vision: Best in Class, Best Value
Vision Best in Class Best Value Proud to Wear the Colors JGR 6
Slide 10: CMS Strategy
CMS Strategy . . . . Consistent financial performance Fair and timely regulation Utility Customer investment value Safe, excellent operations . . . . dynamic, data driven, breakthrough performance. JGR 7
Slide 11: Customer Focus: Excellent Operations - Safety
Customer Focus: Excellent Operations . . . . Safety Incidents • First quartile 258 performance 207 59% • 59% improvement 160 since 2009 119 107 • $8 million savings last two years 2009 2010 2011 2012 2013 Target . . . . begin with safety. JGR 8
Slide 12: Customer Focus: Excellent Operations - Headcount
Customer Focus: Excellent Operations . . . . Headcount 7,800 • 9% reduction since 2009 7,600 9% 7,400 • Recent VSP 7,200 programs have 7,100 helped • New hires are two- thirds the cost 2009 2010 2011 2012 2013 Separations 500 500 500 ~400 New Hires 300 300 300 ~300 . . . . through natural attrition,
Slide 13: Customer Focus: Excellent Operations - Productivity
Customer Focus: Excellent Operations . . . . Cumulative Productivity • 41% improvement 25% since 2006 • Planning 25% over 41% next 5 years • $10 million in savings per year U.S. Productivity = 11% 2006 - 2012 2013 - 2017 Target . . . . enhance productivity and reduce costs. JGR 10
Slide 14: Customer Focus: Excellent Operations - Employee Engagement
Customer Focus: Excellent Operations . . . . Employee Engagement • First quartile Most Admired Companies Best Places to Work performance 74% 72% 61% • Engagement scores at levels of most admired companies • Target to maintain high level of Electric & Gas Utilities High Performers CMS Energy engageme
Slide 15: Visible Investment: Rate Base Growth
Visible Investment: Rate Base Growth . . . . Amount (bils) $ 20 $18 Capital Investment “Checklist” Gas Electric $15 Add Customer Value 15 $6 Reduce O&M Costs $4 $11 Reduce Fuel Costs 10 $3 Mandated by State or $12 Federal Regulators 5 $11 $8 0 2012 2017 2022 Base Rate Increases <2% <2% . . .
Slide 16: Visible Investment: Customer-Driven
Visible Investment: Customer-Driven . . . . Clean Power Capacity Reliability Infrastructure $3 Billion $2 Billion $3.5 Billion $4 Billion Environmental New gas generation Consumers Smart Energy Gas distribution Renewable energy Ludington Pumped Storage Main replacements Propane switching Gas convers
Slide 17: Visible Investment: Gas Infrastructure
Visible Investment: Gas Infrastructure . . . . Gas System Investment Amount • #4 largest gas utility (bils) $ 2.5 $2.4 $2.2 • 27,000 miles of distribution mains 2.0 • 24,000 miles of service pipe 1.5 $1.4 • 1,700 miles of transmission lines 1.0 • 300 bcf gas storage 0.5 0.0 2008 - 2012 2013 - 2017 2
Slide 18: Visible Investment: Transmission
Visible Investment: Transmission . . . . • Exited transmission in 2002 • Recent developments • ReliabilityFirst Corporation interpretation • FERC orders • Opportunity to reclassify and register as transmission owner / operator . . . . opportunity; better for our customers. JGR 15
Slide 19: Five-Year Financial Plan
Five-Year Financial Plan . . . . 2014-2018 2013-2017 Plan Plan Capital Investment (bils) $7.0 $6.5 O&M cost (annual increase %) -2% Less than 1% Customer base rate increases 1% (E) 1% (E) (excluding fuel) 2 (G) 1 (G) Return on Equity 10.3% 10.3% EPS annual growth 5% - 7% 5% - 7% Dividend yield 4 4
Slide 20: 2014 EPS Guidance
2014 EPS a Guidance . . . . $2.00 Original guidance 7% $1.78 $1.78 5% $1.66 $1.73 $1.73 $1.65 $1.55 $1.66 $1.45 $1.55 $1.63 $1.52 $1.36 $1.44 $1.35 2010 2011 2012 2013 2014 Beyond _____ a Adjusted EPS (non-GAAP) . . . . of $1.73 to $1.78; up 5% to 7%. JGR 17
Slide 21: Long-Term EPS Guidance
Long-Term EPS a Guidance . . . . $2.00 Original guidance 7% $1.78 5% $1.66 $1.73 $1.65 $1.55 $1.66 $1.45 $1.55 $1.63 $1.52 $1.36 $1.44 $1.35 2010 2011 2012 2013 2014 Beyond _____ a Adjusted EPS (non-GAAP) . . . . continues track record of 5% to 7% “real” growth. JGR 18
Slide 22: View of the Future
View of the Future . . . . • Capital investment in utility $15 billion • EPS and OCF growth 1–2 pts > peers • Competitive payout ratio (60%-70%) Consistent financial performance • Continuous cost improvement • Base rates at or below the “rate of Fair and timely inflation” regulation • Constructive r
Slide 23: Tom Webb, Executive Vice President & CFO
Tom Webb Executive Vice President & CFO
Slide 24: CMS EPS Growth
CMS EPS a Growth . . . . EPS Index CMS Average = 7.5% 5% to 7% Guidance Range 0 Peer = 3.5% International sale recovered in 2008 2003 _____ 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Future a Adjusted EPS (non-GAAP) . . . . actual performance stronger. TJW 1
Slide 25: CMS EPS Cumulative Growth
CMS EPS Cumulative Growth . . . . One Three Five Nine Year Year Year Year CMS Energy 7% 23% 85% 91% Note: Annual Dividend Yield 4 4 3 2 Peers – S&P 500/ 1 10 7 36 MidCap 400 Utilities Note: Annual Dividend Yield 4 4 4 4 _____ Source: Bloomberg, periods ending 12/31/2012 . . . . at the very high end
Slide 26: CMS Energy Model
CMS Energy MODEL . . . . RESULTS Consistent Predictable Investment Self-Imposed Limits • Ten Year - $15 Billion • Small, bite size projects • Sustainable Base Rates < 2% Inflation • None “bet the company” • Investment “Needed Not Wanted” Enablers • Plan Sales Growth Conservatively • O&M Down 2%/Year
Slide 27: Capital Investment Plan
Capital Investment Plan . . . . Major Projects Capital Investment Amount Karn/Weadock Generating Complex, (bils) Environmental Compliance $8.0 $7.3 Ludington Pumped Cross Winds Energy Park Storage Plant, $7.0 Reliability & Capacity New Gas Thetford Natural Plant Gas-Fired Plant Consumers Smart $6.5
Slide 28: Need New Gas Plant
Need New Gas Plant . . . . Customers Investors • Capacity needed Unaffected: • Seek best deal • Flexible 10-year, $15 billion capex plan • Build or buy Thetford Build Air permit CON filed CON granted granted July 12 July 26 April 8 Alternative – Asset Purchase RFP issued September 30 Today . . . . p
Slide 29: Capital Investment Plan: Five-Year
Capital Investment Plan . . . . 2013 – 2017 Opportunity Level Five-Year Plan Faster Smart Energy <$7 Billion Pipe & pole replacement $10 Billion Distribution More gas generation Customer base rates <2% >4% X . . . . at sustainable and affordable pace, in low-risk, “bite size” projects. TJW 6
Slide 30: Capital Investment Plan: 10-Year
Capital Investment Plan . . . . 2013-2022 Opportunity Level 10-Year Plan New generation capacity • PPA replacement $15Billion $15 Billion • ROA customer return Post-2015 renewables $18 Billion More gas storage More gas conversions Transmission Faster pole & pipe replacement Customer base rates <2% >
Slide 31: Long-Term Capital Investment
Long-Term Capital Investment . . . . Amount (bils) CMS $1.6 1.4 $1.5 Peer Average 1.2 1.0 Amount 0.8 (bils) 0.6 First five years $ 7 Next five years 8 0.4 Ten years $15 0.2 Average ≈ $1.5 0.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 _____ a
Slide 32: Capital Investment Visibility
Capital Investment Visibility . . . . Amount (bils) $1.8 $5 $7 $8 1.6 New Generation: 1.4 PPA’s Expire New Generation 1.2 Environmental Gas 1.0 Gas 0.8 Smart Energy Electric Reliability 0.6 0.4 Maintenance 0.2 0.0 2008 - 2012 2013 - 2017 2018 - 2022 . . . . clear for next ten years – needed, not jus
Slide 33: Michigan Economy Performance
Michigan Economy Performance . . . . Gross Domestic Product – 2010 through 2012 WA MT ND 5th 8.1 6.7 31.0 MN Best 8.2 ME OR ID SD WI 11% 2.7 4.7 VT NH 13.8 WY 5.9 2.1 NY MI 8.2 6.1 (3.5) IA NE 11.0 6.6 MA 6.6 7.4 7.9 IL PA NV 5.9 IN OH CT RI UT CO 5.9 NJ 2.9 KS MO 12.3 7.3 1.0 2.4 8.7 6.2 MD 3.1 7.3
Slide 34: Economic Growth in Consumers Territory
Economic Growth in Consumers Territory . . . . Examples of New Business Economic Indicators Electric Grand Gas Rapids Michigan U.S Combination Unemployment 6% 9% 7% August 2013 Jobs (non-farm payrolls) 5 2 2 8-2012 thru 8-2013 GDP (real) 2010 thru 2012 14 11 7 Population 2010 Census 2 0 2 Eco-Bio Pl
Slide 35: Trend of O&M Cost Savings
Trend of O&M Cost Savings . . . . Percent Change 25%0 0 Inflation 0 0 -21% Cost 0 Reductions 0 Prior Plan 0 -9% 0 Accelerated Cost Reductions -6% 0 New Plan 0 -15% -25% 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Lines smoothed for illustrative purposes . . . . . accelerated; funding investm
Slide 36: Continuous Cost Reduction
Continuous Cost Reduction . . . . 2012 over 2006 Electric Non-fuel How – One Example O&M Cost Headcount 7,600 7,200 $100k Each 600 Peer Average up 6% $60k 1,000 Each -0.4% Consumers 2010 2012 _____ Source: SNL data service People Productivity = $64 Million . . . . . part of CMS mindset. TJW 13
Slide 37: Continuous Cost Reduction: Future Savings
Continuous Cost Reduction . . . . Future Savings How – Two Examples 2017 vs 2012 Fuel Mix MW Employees (mils) 2013-14 Build Wind Farms + 200 +4 • Fuel mix $25 2016 Retire Coal - 900 - 300 2016 Add GCC + 700 + 20 • Benefits 75 Total 0 - 276 • Less Expensive New 75 Future Savings (mils) $25 Hires & Lo
Slide 38: Customer Rates - Working With MPSC
Customer Rates – Working With MPSC To Be . . . . 2013-2017 Cost Reductions Annual Average Base Rate Increasesa • Eliminate 2014 base rate 2% Inflation increases: • Electric ~1% • Gas ~1% • Eliminated renewable surcharge • Eliminated rate skewing Electric Gas • Lowered summer block a Includes surchar
Slide 39: Operating Cash Flow Grows $0.5 Billion
Operating Cash Flow Grows $0.5 Billion . . . . Amount (bils) Up $0.5 Gross operating cash flowa Billion $ 2.5 up $0.1 billion per year $2.2 $2.1 2.0 $1.9 $2.0 $1.7 $1.8 $1.6 1.5 Interest $1.5 Working capital $1.4 $1.3 and taxes 1.0 Investment 0.5 0.0 _____ a Non-GAAP Cash flow before dividend (0.5)
Slide 40: CMS Mindset
CMS Mindset . . . . Adjusted EPS (non-GAAP) 2013 +13¢ 2012 2012 Hot Summer 2013 Cold Winter & Reinvested +7% Cost Savings earlier Guidance 2012 2012 Warm Cost Winter Saving -13¢ . . . . deliver for customers AND investors. TJW 17
Slide 41: Mindset
Mindset . . . . 10-Year Actual $1.65-$1.66 7% CAGR $1.78 5% - 7% Peers 4% $1.73 $1.55 $1.45 $1.36 b $1.26 $1.21 6% $1.02 5% - 7% $1.08 14% 96¢ $0.96 $0.90 27% 84¢ $0.81 Int’l Sale $0.84 32% 66¢ 39% 50¢ 80% 36¢ 20¢ 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Future Dividend Payout 0%
Slide 42: Electric Generation & Energy Supply
Electric Generation & Energy Supply Dennis Dobbs Vice President Generation Engineering & Services
Slide 43: Energy Resource Strategy
Energy Resource Strategy Best Energy Choice for Our Customers Premium Investment Opportunities Continuous Environmental Improvements To be the Preferred Energy Provider for our Customers DDD 1
Slide 44: Major Generation Investments
Major Generation Investments Over 6 GWs of Generation Assets Karn/Weadock Generating Complex Generation Reliability Ludington Pumped New Capacity $750M Storage Plant $900M Cross Winds Energy Park Environmental Controls $950M Campbell Generating Plant Thetford Natural Gas-Fired Plant Investing $2.6 B
Slide 45: Capacity Diversity
Capacity Diversity MW Employees 2006 Sold Palisades - 800 - 650 2009 Purchased Zeeland GCC + 930 + 22 2013-14 Build Wind Farms + 205 +4 2016 Suspend Operation of Coal Units - 900 - 300 2016 Add Gas Combined Cycle + 700 + 20 Total +135 -904 Nuclear Nuclear Oil Oil 8% 9% 6% Coal 6% Demand Coal 33% Dem
Slide 46: Projected CO2 Intensity
Projected CO2 Intensity 2,500 Existing Coal 2,000 Range for Potential Regulation on Existing Sources Pounds of CO2 per MWh 1,500 Consumers Energy Projected CO2 Intensity 1,000 Natural Gas Combined Cycle 500 0 Nuclear, Wind & Solar 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Posi
Slide 47: Consumers Energy's Long-Term Capacity Forecast
Consumers Energy’s Long-Term Capacity Forecast 10,000 9,000 8,000 Capacity Shortfall MW Classic 7 7,000 Suspended Palisades PPA Termination 6,000 MCV PPA Termination 5,000 0 CE Portfolio Smart Energy, EO, Interruptibles Total Peak Demand Plus Reserves Net Peak Demand Plus Reserves DDD 5
Slide 48: Thetford Combined Cycle Plant
Thetford Combined Cycle Plant 700 MW Combined Cycle Plant $750M Investment 2017 Commercial Operation Date 230-acre Site DDD 6
Slide 49: Timeline
Timeline Major Contracts to be Signed COD Nov 18 June 1 Air Permit Submitted CON Application and Approved Process 2012 Q1 Q2 Q3 Q4 2013 Q1 Q2 Q3 Q4 2014 2015 2016 2017 File Rate Completed 1st Asset Complete 2nd Asset Case Capacity RPF Capacity RFP Jan 2015 Rate Case Order on Purchase Jan 2016 Q1 Q2
Slide 50: Energy Resource Strategy
Energy Resource Strategy Best Energy Choice for Our Customers Premium Investment Opportunities Continuous Environmental Improvements To be the Preferred Energy Provider for our Customers DDD 8
Slide 51: State of the Business Smart Energy
State of the Business Smart Energy Patti Poppe Vice President Customer Experience & Operations
Slide 52: Snapshot
Snapshot • Deliberate pace of program • Cellular solution (point to point network) • 130,000 smart meters installed • 99% meter read rate 2 4 • Realization of operational benefits 1 3 You are here Total of ~1.8 million electric meters; ~600,000 gas modules. PKP 1
Slide 53: Smart energy timeline
Smart energy timeline 2011 2012 2013 2014 2015 2016 … 2019 • Capital investment is Cellular solution selected Meter deployment launched flexible Billing capability added • O&M Cost Control Enhanced operations Gas billing & theft Direct load & dynamic pricing Hardware 1.8 M Meters 0 Meters 53 K Meter
Slide 54: Re-introduction to the customer
Re-introduction to the customer 3 2 4 INSTALLATION EXPERIENCE CUSTOMER DEDICATED CALL COMMUNICATION CENTER 1 5 OUTREACH WEB PORTAL EVENTS Net promoter score increase: 40% Opt-out rate: < 1% PKP 3
Slide 55: Platform for future investment
Platform for future investment • Commitment to financial goals • New smart “Grid” investments • Platform for future investments in new products and services • Additional smart meter investments for gas only customers PKP 4
Slide 56: Pipeline Replacement & Safety
Pipeline Replacement & Safety Garrick Rochow Vice President of Energy Delivery
Slide 57: Consumers Energy Gas System
Consumers Energy Gas System Gas service area • Among the largest systems Transmission line in the country Compressor stations • Increased pipeline Storage fields regulation Interconnects • Continued growth into the future One of largest gas systems in the country – outstanding investment opportuniti
Slide 58: Gas Program Investments
Gas Program Investments Annual Gas Capital Investment Company Gas Cost $500 ($ Millions) $10 0% 44% $425 $8.41 -14% -10% -20% $400 $400 $8 -26% -20% $7.23 $6.76 -35% -30% $300 $6.20 $6 -44% -40% $234 $5.51 % Change -48% $/Mcf $200 -50% $4.51 $146 $4.34 $4 -60% $100 -70% $ $2 -80% -90% $0 -100% 2008
Slide 59: Risk Reduction as Investments Increase
Distribution Risk Reduction as Investments Increase • Infrastructure Replacement Plan 300 • Replacing cast iron and bare steel pipe 250 • Public Service $ Millions Commission approved 200 • Investment potential 2014 – 2018 average 150 $96MM per year 100 2010 2011 2012 2013 2014 2015 Investment Rel
Slide 60: Distribution Main Replacement
Distribution Main Replacement Miles • ~ 50% of our natural gas leaks occur in ~10% of 110 112 our system (2,900 miles) • Reduces leaks 40 • Reduces operating costs 70 43 12 70 27 10 42 31 17 2011 2012 2013* 2014* Cast Iron Uncoated Steel * Forecast Reducing operating costs through investments. GJR 4
Slide 61: Transmission and Compression
Transmission and Compression Gas service area Transmission pipeline system Complete Under Construction Proposed Ray Compressor Station Completed $175 Million St. Clair Compressor Station Proposed $ 72 Million West Oakland Pipeline Completed $104 Million White Pigeon Compressor Station Southwest Mich
Slide 62: Transmission & Compression
Transmission & Compression Southwest Michigan Pipeline •$120MM •24.1 miles, 36” diameter •Existing second line rights Pipe arriving •Public Service Commission approved •Reduced supply risk •Reduced compression costs •Supports purchasing strategy Existing right-of-way Investments improve customer val
Slide 63: Gas New Business Service Installs
Gas New Business Service Installs •Propane to natural gas New Business •Customer savings ~$1,500 2,631 per year 1,365 •5 year plan ~ 15,000 customers who will switch 284 Potential – 85,000 •Investment potential 147 6,864 7,887 2014 – 2018 average 5,209 4,393 $45MM per year 2010 2011 2012 2013 Fo
Slide 64: Summary - Investing in the Future
Summary - Investing in the Future • One of the largest gas systems in the country • Reducing risk • Committed to O&M reduction • Contributing to financial targets • Poised for continued growth Outstanding investment opportunities. GJR 8
Slide 65: Electric Transmission & Distribution
Electric Transmission & Distribution Dan Malone Senior Vice President of Distribution & Customer Operations
Slide 66: Today's Electric Distribution System
Today’s Electric Distribution System • 1.8 million electric customers • 40 billion kWHrs per year • 9,006 MW all time peak • ~ 65,500 miles low voltage distribution (LVD) • ~ 4,400 miles high voltage distribution (HVD) Providing safe and reliable energy. DJM 1
Slide 67: Electric Distribution Capital Investment
Electric Distribution Capital Investment DCO Electric Capital Investment $500 Annual Averages ($ Millions) $450 $400 $329 $309 $300 $234 $200 $100 $ 2005-2007 2008-2012 2013-2017 2013-2017 Fcst/Plan Avg. 2018-2022 2018-2022 Average ACTUAL Average ACTUAL Average Average Average Capacity Reliability D
Slide 68: Peak Load & System Performance
Peak Load & System Performance Electric Performance Electric Capital Investment 10,000 30,000 $400 25,000 $328 $335 8,930 9,006 9,000 8,883 $299 $297 $300 Customers Interrupted $283 20,000 Peak Load (MW) $243 $ Millions $216 8,000 12,000 $200 9,300 10,000 7,000 $100 6,000 - 2006 2011 2012 Peak Load
Slide 69: Move into Transmission
Move into Transmission • Consumers Energy exited the transmission business in 2002 • Planning to register as Transmission Owner/Operator by 2016 • Opportunity to reclassify some assets • Customers and shareholders benefits Positions Consumers Energy for potential future growth in an adjacent busines
Slide 70: Norplas - New Customer Acquisition
Norplas – New Customer Acquisition • New industrial customer - 4.8 MW • Competition with neighboring utility • Met customer requirements • Project completion – 2013 • Full Revenue - $4MM More competitive. DJM 5
Slide 71: Distribution Productivity Improvements
Distribution Productivity Improvements Headcount Productivity 58% 4,806 4,382 10% $42MM average savings 2009 2010 2011 2012 2009 2010 2011 2012 • Cost Savings Predictable work plans and productive field resources contribute to financial success as well as improving satisfaction • Make & Meet Commi
Slide 72: Productivity - Headquarters Reduction
Productivity – Headquarters Reduction +50 Local 35 Local Headquarters Headquarters in 2010 by 2016 65% increase in home-site reporting. DJM 7
Slide 73: Making and Meeting Requirements
Making and Meeting Requirements • 50% of 1.2 million orders • Awareness & expectations • Customer driven work • Resource utilization • Short cycle • Customer communication 100% 100% 100% 100% BTG 95% 83% 77% 40% 40% 22% 2011 2012 2013 YTD 2011 2012 2013 YTD Offered Completed More reliable to custome
Slide 74: Summary
Summary •Consistent 5% - 7% EPS growth Customer Value Fair and Timely Regulation Investments Improved Operations •Growth and investment Gas Pipeline Replacement Smart Energy Transmission and Distribution Productivity and Efficiency Reliability, customer value, and productivity improv
Slide 75: Wrap-Up
CMS ENERGY Wrap-Up
Slide 76: Key Takeaways
Key Takeaways . . . . EPS a Growth $2.00 7% 7% 5% +7% Core Fundamentals 5% +7% +7% Visible Investment +8% +12% Cost Controls +12% +4% Target 5% - 7% +11% +7% Actual = 7% Plan Conservatively Supportive Regulatory Target 6% - 8% Actual EPS = 8% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012