Cms Energy Corporation · NYSE:CMS
Cms Energy — Investor Presentation (September 2014)
17 slides from Cms Energy's investor presentation, Sep 7, 2014
Slide 1: CMS Autumn Meeting
Content 1-2 How it Works 3 Upsides 4-5 Partners 6-7 Investment CMS Autumn Meeting September 7, 2014 Ludington Pumped Storage Jackson Gas Plant Cross Winds Energy Park Fourth largest in the world Lowest acquisition cost ever #1 in renewables in the Great Lakes area
Slide 2: Forward-looking statements disclaimer
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 3: Perspective: Just the Facts about Consumers Energy
JUST THE FACTS ABOUT CONSUMERS ENERGY: Founded: 1886 in Jackson, still home to the corporate headquarters. Employees: 7,410 in 2013 — plus 7,500 contractors. 2013 Operating revenue: $6.6 billion. CONSUMERS ENERGY: Is Michigan's largest utility and nation's fourth largest combination utility. Operate
Slide 4: How It Works -- Near Term
HOW IT WORKS -- Near Term . . . . A A Competitive Rates B Elections B C C Energy Law Update D Investment & EPS Growth D Ten-year Conservative Plan Big Upsides, not in plan . . . . steps ahead. 1
Slide 5: Consumers Energy Works to Serve You
CONSUMERS ENERGY WORKS TO SERVE YOU Our goal Is to provide reliable, affordable energy for Michigan. National Average Electric Rates ¢ per kWh Hilal Source: March 20114 Consumers Energy Ratas Dapsrtmant snd Energy informstin Agancy National Average Natural Gas Rates 7 $ per Met 1B /S)2 ia} ee) 8 Sou
Slide 6: How It Works -- Regulation & Self-Initiated Steps
HOW IT WORKS -- Regulation & Self-Initiated Steps . . . . Industrial Electric Rate House Bill 5476 (vs Midwest Average) Consumers higher than • Signed into law on June 17th, 2014 Midwest peer avg 30% • Directs MPSC to develop cost of service allocation and rate design methods 20% Self-initiate
Slide 7: Working each day to make sure customers get the most for their money
We're working each day to make sure customers get the most for thelr money. Total O&M Costs 2006-2013 2006 Electric: Utility Peer Average Conenetny Ftc 2013 Electric! Unity Peer average Consumers Energy First Quartile Average 2006 Gas Utdity Peer average Consumers Energy First Quartile Average KEY P
Slide 8: Upsides -- O&M Cost Control
UPSIDES -- O&M Cost Control . . . . Average Annual O&M Change Continuous Cost Reductions +6% Peers -3%a Actual/Plan (exc Amount 2013 major storms) (mils) -2%a $1,050 +2% +2% +5% Peers Peers Peers +6% +5% CMS CMS CMS CMS CMS -8% -1% -2% -2%a -2% -8% -3%a Upside? _____ Plan a -8% Before reinvestment 2
Slide 9: Community Engagement
Committed to increase spendinig | with Michigan-based suppliers by $1 BILLION over five years through the state's Pure Michigan “Business Cannect initiative. Through May 2014, awarded $859 MILLION in contracts with Michigan job providers, MICHIGAN'S SECOND LEADING INVESTOR. Donated $8 MILLION to Mic
Slide 10: Partners -- Michigan Governor's Race
PARTNERS -- Michigan Governor’s Race . . . . Rick Snyder Republican, Incumbent Mark Schauer Democrat, Challenger On Energy… Campaign Issues On ROA … • Education As Senate Democratic Leader, • Jobs “Choice creates a lot of Mark played a key role in the challenges and problems, successful passage of t
Slide 11: Meeting Michigan's Energy Needs
MEETING MICHIGAN’S-. Promoting a balanced Supporting a regulated and clean energy electric market that portfolio to help provides long-term assure reliability and price stability for affordability. That customers and the includes more natural certainty we need to gas, wind energy and make significan
Slide 12: Partners -- Michigan Energy Law
PARTNERS -- Michigan Energy Law . . . . • Adaptability • Reliability Update • Affordability • Environmental protection • Gov. signed new • 10% renewables rate design bill by 2015 • Senate workgroup • Energy efficiency formed to study standards 2015 Energy Law • File-and-implement improvements • Hist
Slide 13: Investing $15 Billion over the next years
investing $15 BILLION over the next 10 years in areas such as reliability, renewable energy, environmental quality and energy efficiency.
Slide 14: Investment -- Ten-Year Plan Expanding
INVESTMENT -- Ten-Year Plan Expanding . . . . 2013-2022 Opportunity Level 10-Year Plan Amount (bils) Generation capacity • PPA replacement $1.7 $20+ Billion • ROA return $15Billion $15 Billion Higher renewables Gas conversions & expansion .3 1.0 Electric reliability 2.0 Total Opportunities $5.0 Upsi
Slide 15: Electric capacity by fuel source and Ludington renovations
Percentage of Consumers Energy's total electric capacity by fuel source. 119% Pumped < Natural Gas Storage SN 309 896 Nuclear 0 —l 896 Renewables *~ (nominal) G6 Oil 3% Energy Optimizatior 1ginterruptibles ote Purchases Soures: Centuries Energy anergy suroly cbarations $800 MILLION in renovations at
Slide 16: Investment -- Capacity Opportunities
INVESTMENT -- Capacity Opportunities . . . . Ten-year Capacity Growth Further MW 11,000 Not in plan Upside 10,000 900 PPA’s Expire MW PPA ~8,600 MW 1,240 MW 580 PPA 2,600 780 MW 7,500 capacity Owned ~30% 8,820 ~800 MW 410 MW Owned Shortfall 6,000 540 MW 5,000 Today Jackson Plant ROA Palisades PPA MC
Slide 17: Thank you for your support