Cms Energy Corporation · NYSE:CMS
Cms Energy — Non-Deal Roadshow (August 2009)
25 slides from Cms Energy's roadshow presentation, Aug 17, 2009
Slide 1: Growing Forward Investor Meetings
Growing Forward Investor Meetings August 17-18, 2009 Thomas J. Webb Executive Vice President and Chief Financial Officer
Slide 2: Forward-looking statements
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
Slide 3: Long-term Objectives
Consistent financial performance Fair and timely regulation Utility investment Customer value Safe, excellent operations 2 Long-term Objectives
Slide 4: Consumers Energy
Consumers Energy Fourth largest combination utility in the U.S. 1.8 million electric and 1.7 million gas customers 9,500 MW of owned and purchased generation capacity (summer) 935 MW Zeeland acquisition 800 MW new coal plant construction 307 Bcf of gas storage capacity including 142 Bcf of working s
Slide 5: Regulatory Timeline
Regulatory Timeline 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 November February April May June September November May Electric Rate Case U-15645 Filed Staff and intervenors file Rebuttals Self implemented $179 mil C
Slide 6: Michigan Energy Legislation
Michigan Energy Legislation Bills balance need for regulatory certainty with customer interests. File and implement ratemaking with forward test year Cap on choice - 10% of load Rate deskewing - over 5 years Certificate of Necessity Renewables - 10% by 2015 Energy efficiency - sales reduction target
Slide 7: Michigan Legislation at Work
Michigan Legislation at Work Renewable Energy Plan 10% by 2015 $1.2 billion investment by 2017 Energy Optimization Plans 5.5% electric; 3.85% gas by 2015 $508 million program Electric Rate Case Final order expected November 2009 Gas Rate Case Filed May 22 Major Initiatives Status Michigan Energy Leg
Slide 8: 2009 Gas Rate Case
2009 Gas Rate Case ... Amount (mils) Capital Investment Recovery $40 Sales 41 O&M 25 Cost of Capital 8 Total Request $114 Rate Base (bils) $2.9 Equity Ratio 48% Return on Equity 11% Decoupling mechanism Uncollectible accounts tracker Pension tracker .... filed May 22; self implementation planned for
Slide 9: Balanced Energy Plan Summary
Balanced Energy Plan Summary Extensive analysis of alternatives and risks Diverse and balanced plan Meets 10% renewable portfolio standard by 2015 Meets energy efficiency target of 5.5% by 2015 Includes demand management programs Purchase of Zeeland natural gas plant Build new clean coal facility Re
Slide 10: Renewable Energy Plan
Renewable Energy Plan . . . . Add 900 MW of wind power 50 percent build / 50 percent power purchase agreement 48,000 acres under lease Balanced approach 10 percent from renewables by 2015 Capital investment $1.2 billion by 2017 Surcharge September 2009 .. . . . approved by MPSC on May 26.
Slide 11: Energy Optimization Plan
Energy Optimization Plan . . . . Six-year plan: 2009-2014 Residential programs focused on Efficient products Weatherization Appliance recycling Early education Business programs focused on Lighting upgrades Operational changes to improve energy efficiency Custom programs for large users Reductions b
Slide 12: Sales and Employment
Sales and Employment Electric Sales (weather adjusted) Sales decline similar to recession in early 1980s; successes are happening across the state. GM and New "Green" Initiatives 2009 1975 1986 1997 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1
Slide 13: 2009 Electric Sales Outlook
2009 Electric Sales Outlook (weather-adjusted) Forecasted Sales Y-O-Y Industrial Sales by Quarter We expect the pace of the industrial and commercial sales decline to slow in the Second Half; with residential sales still falling modestly. _ _ _ _ a Includes other First Second Third Fourth Prior Guid
Slide 14: Uncollectible Accounts
Uncollectible Accounts An "auto-wide" bankruptcy would have an incremental "one time write off" impact. "Auto-wide" Bankruptcy Exposure _ _ _ _ a Excluding companies in bankruptcy Utility Uncollectible Accounts Millions $ 2006 2007 2008 2009 Forecast Net Charge-offs 27.4 29.6 41.5 44.5 Bankruptcies
Slide 15: 7% Utility Growth Rate Base
2008 2009 2010 2011 2012 2031 Depreciation 7.851 8.729 8.486 7.922 7.592 7.123 6.597 Maintenance 0.574 1.132 1.644 2.117 2.616 Customer growth 0.077 0.156 0.244 0.337 0.431 Environmental 0.057 0.19 0.341 0.501 0.797 Zeeland plant 0.481 0.481 0.481 0.481 0.481 Gas compression and pipelines 0.064 0.14
Slide 16: What Makes CMS Different?
What Makes CMS Different? Recent State energy legislation provides framework for growth Diversified Utility investment opportunities boost rate base and EPS Timely regulation minimizes recovery lag Diversified customer base mitigates auto exposure Solid liquidity position NOL and AMT credits add val
Slide 17: Appendix
Appendix
Slide 18: Tax Sharing
Tax Sharing Year-End Actual Estimate 2008 2009 2010 (bils) (bils) (bils) Gross NOL carry forwards $ 1.3 $ 1.0 $ .5 Net NOL cash benefit at 35% $ .4 $ .3 $ .2 Credit carry forwards .3 .3 .3 Remaining cash benefit $ .7 $ .6 $ .5 Appendix 1
Slide 19: Electric Customer Base
Electric Customer Base Diversified . . . . Hemlock Semiconductor General Motors Delphi Corporation Pfizer Incorporated Meijer Incorporated State of Michigan Quanex Corporation Packaging Corporation of America Dow Corning Corporation Denso International Percent of 2008 electric gross margin is 3% Top
Slide 20: Customer Value
Customer Value Coal MCV Gas Nuclear Renewables Pumped Storage Oil Purchases 2008 0.32 0.13 0.23 0.08 0.03 0.1 0.05 0.06 Consumers Energy Coal Gas Nuclear Renewables Pumped Storage Oil Purchases 2006 0.52 0.26 0.08 0.01 0.02 0.06 0.05 9,600 MW MISO 125,000 MW Capacity Fuel Mix -- 2008 Diversified fue
Slide 21: Recent Financing
Recent Financing Amount at July 31 (mils) Cash $ 699 Bank Facilities ($1,200) 895 Accounts Receivable Facility ($250) 72 Total liquidity $1,666 2009 2010 2011 2012 2013 East 0 67 213 150 150 West 233 87 Total Liquidity Parent Maturities (Aug vs Jan) Liquidity position strengthened; refinancing risks
Slide 22: Consumers Electric Utility Financial & Operating Statistics
Consumers Electric Utility Financial & Operating Statistics CMS Energy Investor Relations One Energy Plaza, Jackson, MI 49201 Tel. 517-788-2590 http://www.cmsenergy.com Appendix-7
Slide 23: Consumers Electric Utility Supplemental Operating Statistics
Consumers Electric Utility Supplemental Operating Statistics CMS Energy Investor Relations One Energy Plaza, Jackson, MI 49201 Tel. 517-788-2590 http://www.cmsenergy.com Appendix-8
Slide 24: Consumers Gas Utility Financial & Operating Statistics
Consumers Gas Utility Financial & Operating Statistics CMS Energy Investor Relations One Energy Plaza, Jackson, MI 49201 Tel. 517-788-2590 http://www.cmsenergy.com Appendix-9
Slide 25: Independent Power Production Asset List
Independent Power Production Asset List CMS Energy Investor Relations One Energy Plaza, Jackson, MI 49201 Tel. 517-788-2590 http://www.cmsenergy.com Honey Lake Craven Exeter Filer City Michigan Power - Kalamazoo River Michigan Power - Livingston Grayling Genesee DIG Renewables - 975 Gross MWs Other