Cms Energy Corporation · NYSE:CMS
Cms Energy — Non-Deal Roadshow (September 2008)
17 slides from Cms Energy's roadshow presentation, Sep 18, 2008
Slide 1: Growing Forward Bank of America Roadshow September 2008
Growing Forward Bank of America Roadshow September 2008 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: Improved CMS Profile
Improved CMS Profile Predictability restored; risk reduced Exited international businesses Sold MCV and Palisades Solid liquidity; NOLs and AMT credits add value Growth opportunities $6.4 billion investment (2008-2012) Need for new base load generation Healthy utility capital structure Responsible r
Slide 4: Consumers Energy Overview
Consumers Energy Overview Excellent operations Customer value Investment Responsible rate increases Healthy capital structure Fair and timely regulation Consistent strong financial performance Ludington Pumped Storage B C Cobb J H Campbell D E Karn J C Weadock J R Whiting Mio Alcona Cooke Foote Loud
Slide 5: Michigan Economy
Michigan Economy Top Ten Customers New Growth Electric demand increased 1% per year over last 10 years. Electric Gas Combination Hemlock Semiconductor Kaiser Aluminum Corporation MPI Research Spartan Motors, Inc. United Solar Ovonic
Slide 6: Customer Value - Fuel Mix
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 7: Customer Value - Prices
Customer Value - Prices 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East 20.4 27.4 90 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec MISO (Mo Avg) 38.6 59.48 47.06 49.08 49.11 53.08 44.78 58.15 41.83 50.61 42.7 48.29 CE Mo Avg 34.86 37.28 39.14 40.14 45.07
Slide 8: Customer Value - Commodities
Customer Value - Commodities Natural gas 89% contracted for 2008-2009 heating season 88% fixed price Coal 100% of 2008 and 92% of 2009 contracted or hedged Multi-year transportation contracts in place Electric 100% of 2008 supply requirement in place 98% of 2009 contracted or hedged Commodity requir
Slide 9: Balanced Energy Initiative
Balanced Energy Initiative 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Existing Fleet with Retirements 7841 7841 7841 7841 7841 7841 7030 7030 7030 6702 6702 6702 6702 6702 6702 6702 6702 Existing Renewables 284 284 284 284 284 284 284 284 284 284 284 284 284
Slide 10: Investment Approach
Investment Approach Utility investment provides customer benefits: O&M cost reductions Fuel cost reduction Reliability improvement Efficiency increases and customer value Reductions provide headroom for rate base and equity growth Fair and timely rate relief key to achieving plan $6.4 billion invest
Slide 11: Utility Investment Plan
2007 2008 2009 2010 2011 2012 Depreciation 7.534 7.173 6.785 6.366 5.918 5.436 4.926 Maintenance 0.429 0.866 1.413 1.937 2.444 2.911 Customer growth 0.091 0.173 0.258 0.344 0.433 0.525 Environmental 0.107 0.215 0.278 0.368 0.517 0.669 Gas compression/pipelines 0 0.018 0.087 0.171 0.217 0.232 Electri
Slide 12: Energy Legislation
Energy Legislation PA141 Reform - HB 5524 Addresses electric choice, file and use, rate deskewing, and certificate of need process RPS and Energy Efficiency - SB 213 Address RPS standards and energy efficiency Bills have been sent to conference committee to resolve differences Broad support from Mic
Slide 13: Regulatory Update
Regulatory Update Closed filings MCV Settlement U-15320 - June 2008 Electric Rate Case U-15245 - June 2008 Recent filings Gas Rate Case U-15506 Seeking $91 million base rate increase; 11% ROE Staff recommends $36 million; 10.45% ROE Upcoming filings Electric Rate Case
Slide 14: Enterprises Assets
Enterprises Assets Kalamazoo River Craven Exeter Filer City Livingston Grayling Genesee DIG Investments focused on U.S. renewables. Renewables - 939 Gross MWs Other - 224 Gross MWs
Slide 15: Liquidity - September 15, 2008
Liquidity - September 15, 2008 Adequate liquidity at Parent and Utility. _ _ _ _ _ a Includes proceeds from $350 million FMB offering
Slide 16: Debt Maturity Profile
Debt Maturity Profile a Millions $ _ _ _ _ _ a Excludes Palisades financing obligation, securitization bonds, capital leases, DOE liability and CMS Enterprises 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 and Beyond 2021 2022 2023 2024 2025 & Beyond 2026 2027 2028 2029 2030 2031
Slide 17: Long-term Objectives
Consistent financial performance Fair and timely regulation Utility investment Customer value Safe, excellent operations 16 Long-term Objectives