Slide 1: CMS Energy Investor Handout, August 30, 2015
Exhibit 99.1 CMS August Ludington Ray Cross Future Peers +7%/year Last Next a) Fourth #1 #2 Consistent, Adjusted LDC inCompressor 75renewable Autumn ENERGY LISTED =Winds Years Shines Years largest 30, 3% in Pumped gas 2015 Sustainable /year EPS Energy Bright in Meeting NYSE® storage sales (non-GAAP)
Slide 2: CMS Energy Toronto Investor Meetings, September 2-3, 2015
CMS Toronto September Ludington Ray Cross Future Peers +7%/year Last Next a) Fourth #1 #2 Consistent, Adjusted LDC inCompressor 75renewable ENERGY LISTED =Winds Years Shines Years largest 3% Investor in Pumped 2-3, gas Sustainable /year EPS Energy Bright in NYSE® storage 2015 sales (non-GAAP) the Me
Slide 3: Forward-looking statements and non-GAAP information
This relevant from STATEMENTS 10-Qs. important obligation The comparable CMS adjusted regulatory Investors of 2 distribution. presentation presentation time ENERGY Energy CMS legal basis. and factors to items GAAP time Energy’s update provides others decisions. Management AND from also that is inmea
Slide 4: Top reasons to own CMS Energy
Top CMS 1 2 4 5 .– 3 .CMS Improvement Restores Improves •More . EPA Senator Representative PA MISO . of business ENERGY 169 Mind positioned upside Clean Zone full (cost Nofs industrial . model .Power to regulatory .to 7of .introduced ten-year capacity 2008 well Nesbitt service) isPlan rate deliverin
Slide 5: Simple, sustainable investment growth model
1/2(drives ROA Simple, CMS Plan -Capital O&M Sales .No Opportunity INVESTMENT .Rate 4 ENERGY investment cost Perhaps growth “block” Surcharges . . drives increasereductions Unique at- or equity and sustainable -2CMS -1 SELF-FUNDED below 2return pts /EPSShort-term Growth growth) Long-term 1inflation
Slide 6: Capex opportunity: $15.5 billion over ten years
Capex CMS $10.7 Opportunity 2015-2024 2005-2014 $15.5 $20 Organic +30% 27% Environ. New Smart Environmental Electric Generation Renewables Grid Gas Growth EPS .– 5 .Peers CMS . .+ Infrastructure Infrastucture with Modernization Generation ENERGY bil Energy Opportunity Up 7%/yr 4Reliability Maintenan
Slide 7: Cost savings: electric O&M vs peers
CMS Electric (2014 Peer Consumers Source: O&M 2014 (mils) Attrition Productivity “Pole Smart Eliminate Mortality Service Net Percent .FAST 6 . . .Savings Average better & ENERGY Top” over START! (mils) Meters Cost Upgrades Savings 2015 Annual SNL, $-35 Tables Waste than 2006) Hardening Performance S
Slide 8: Conservative sales growth outlook
CMS Our GDP 7 1./Weather Sales Grand 2. % Building Population aUnemployment b Annual 2% 1% Conservative 6% Total Industrial Grand Annualized . Service .c2010-20142010®2013 Growth ENERGY Rapids Electric Rapids Permits planned2011®2014 Territorya numbers .Michigan . (6/15) Sales . b.15+28% normalized
Slide 9: No typical rate base growth model
No Typical < Rate -1% CMS 6% R .0 8 .ate 6% 5% . “Block .6% under Base ENERGY Model utility Growth CMS Equity” w/Model NOLs growth Dilution Dilution w/omodel NOLs EPSfor Growth five years!
Slide 10: Electric rates improving relative to national averages
Electric CMS 20 National Residential -20 (17)% 30 Worse Rates Industrial Midwest Better 2013 .-30 9 . .% . affordable 2014 26% ENERGY Rates &(13)% Policy Rates Customer Fuel Avg Rates rates 2015 Bills bills &&(13)% could Flat Act improving Fuel for well 2016 Prices 169 residential eliminate below Pl
Slide 11: Michigan energy law and policy
Michigan CMS Sen. “Retail 3-year Efficiency .Renewables 10 . . . builds Nofs ENERGY capacity Open Energy Gov. 1% off IRP Access” yr the Snyder requirement, process waste Law 2008 Keep .Rep. reduction .law, . . “cap” Nesbitt adding “onethrough way Keep growth door” “cap” 2018 opportunities. No End El
Slide 12: EPS growth of 7% a year through recessions and weather
CMS 7% +5% Recession 2003 Hurt Help We Cold Governor .Commission 11 . . .work CAGR consistent to winter 2004 Energy +7%/year with (D) Recession 2005 Mild (D) ..Governor anyone .growth .2006 New summer . 2007 and Commission through (R)Hot in2008 any summer recession, condition 2009 (D)2010 Warm Commi
Slide 13: Why CMS Energy: future performance 10-year record
Why Future Sustainable EPS +7% aLast Past Investment Capacity O&M .Adjusted . . Performance Sales 12 Energy 7anext /year Invest Reduction $2.50 Years Shines Op! 10EPS Growth .Conservative (bils) Future inNext Policy +5% Bright CMS (non-GAAP) (2006-2014) (2010-2014) Next to 5even Growth Years Energy?
Slide 14: Appendix
Appendix
Slide 15: Constructive Michigan regulation
Constructive CMS John Commission Chairman Sally July Norm Term Newly Tier 1 2 3 4 5 .Barclays 14 .6920 8. .Michigan 12, is Quackenbush Talberg Ends: ENERGY Saari State appointed! supported 2019 Research, July Ranking (R) Regulation (I) ranked 2,by2021 2017 (R), 2015 a#1quality .state . . . Commissio
Slide 16: Capacity diversity evolving to cleaner generation
Capacity CMS Nuclear Oil Renewables Pumped .Gas 15 . . .6% 31% evolving ENERGY Coal Purchases 8% Storage Diversity. GasGas 9% 3% 34% 37% to Coal cleaner 32% 11% 3%. . 41% 2014 2005 Oil . generation 6% Renewables Pumped Nuclear while Storage 8% 10%becoming 12% 2017 Coal more24% cost competitive.
Slide 17: Capacity and energy prices
Was + Energy $5 $15 $35 $40 Capacity New 250 Recent Long-term Near-term .Upside: 16 . $25 . .MW (mils) adding Business –Capacity $55 $50 Capacity & price at=> = Energy Now $5.75 $4.00 Energy value more $4.50 $3.30 ($(mils) per kW and per $65 toPrice our kWm per kWm energy Future “DIG” Increases. mon
Slide 18: PPA opportunity for customer-owned gas capacity
PPA Peers 5% 10% 30% Opportunity $2 Amount PPAs New .Annual 17 . .Bil . vs more Gas (2,000 $(650) CMS Investment Owned Customer (mils) Build capacity Today 2,000 MW)Capacity 650 Impact CMS Create MW investment, Future zero Uniquewithout Opportunity increasing for. .bills. . . CMS ENERGY
Slide 19: ROA potential: one-way door
ROA Potential 800 “One-Way Today $150 Opportunity 0.02% (~300 Could .Build 18 . . .MW more million (800 Decision new customers) lower Future of Return customers capacity generation MW) Door” rates subsidy Creates Decision 4% investment, oncapacity, for ROA Unique everyone funded without Opportunity
Slide 20: Clean power: Michigan CO2 emission outlook
Clean Lbs Consumers Retire State Projected 2 .0 19.014 . .CO2 positioned of 2015 Power 950 Michigan (per outlook MW 2016 Energy Plan. MWh) well coal 2017 with Target .2005 .for 2500 . 2018 CMS 20% compliance. Baseline (Preliminary 2019 renewables ENERGY 2020 2021 -- investment Emission 2022 2023 Rat
Slide 21: Electric and gas rate cases
2 .1./2.$85 Rate Gas $21 Investment $64 Electric Date May (mils) 2014 June Dec. .20 years (mils) Cases. 2013 2015 Step Stay fair . since Track Amount out Settlement last $89 order! Self-implement Order andCost . -- Record . CMS of expected timely. Capital, ENERGY 110 Upgrades, & Other Filed 7/17
Slide 22: Customer satisfaction continues to improve
Customer CMS 1st Electric #3 Gas 2nd 3rd 4th 2010 .Residential . .1st Quartile .Quartile Quartile continues 2012 ENERGY Quartile Satisfaction 2014 Business #4 #6toPresent #9 improve . . Rank . .rapidly. 201621
Slide 23: Investment capex catch-up versus peers
Investment Capex > “Catch-up” 2005 CMS Peers 2 a0 ----- .Source: .003 Based $1.5 . . creating -Energy 2004 ENERGY Peers (bils) per 2014 10K; onyear 2005 December “Catch-up” Capex 11 2015 $1.8 an CMS actual 15opportunity 2006 One -as 10% 2024 amounts a31, 2007 of Percent . 16% .first 2014 . .2008 for
Slide 24: Rate base, depreciation and investment drive EPS growth
10.014 Rate +6% 2 0 Depreciation 2015 Investment Gas Smart Environmental New Electric .Plan .Years . Infrastructure drives Investment Base Generation /year -2015 Energy 2024 Reliability Maintenance of(bils) Growth 2016 EPS Growth Amount 0.4 0.9 $20 growth $15.5 2017 1.1 & .2.3 . Maintenance (bils) .
Slide 25: Adjusted EPS guidance and reinvestment
Adjusted 2014 DIG Forestry Donations Weather 13¢ Natural Cost Total Flex 2015 O&M Alt. Plant +7% Contributions January Guidance .+5% . . .financing AND outage Items & -17¢ O&M $(18) 13¢ outage “Reinvestment” choices Other Offsets March 12¢ (5) EPS & provides $20 Reinvestment $(8) 5other 5(non-GAAP)
Slide 26: O&M down, smarter
O&M 2006 $1.1 $1.0 Down $0.9 Smarter Coal Productivity/Attrition “Pole .Productivity/Smart . . . provide bil to 2014 Top” Cost 7%Gas Down Inflation benefit or 2018 Hardening Reductions Switching more 2%/yr 10% plans =2% “headroom” Energy (Zeeland) (Jackson) . . . . CMS forENERGY more capital investm
Slide 27: MISO capacity shortfall and upside
MISO 2016 Annual June CMS Lower Source: ----- New Impact More .Creates . . . shortfall 2014 2015 Build capacity Forecasted & upside Zone Demand MISO upside MISO DTE-3,000 -1,300 7toexpected Purchase to Capacity Survey pressure $15.5 meet Shortfall billion shortfall to IPPs .in. be (MW) .capacity . 1
Slide 28: Operating cash flow growth
Operating Amount Up (0.9) (0.4) 0.1 0.6 1.1 1.6 2.1 $2.6 Gross $1.8 $1.55 Cash aInvestment ----- 2014 NOLs .$0.7 .Non-GAAP . $0.6 . up $1.9 $0.7 2015 flow Interest, operating &$0.6 Billion (bils) Credits $2.1 $0.5 Cash before 2016 billion working $2.2 $0.3 Flow cash 2017 $0.7 dividend $2.3 $0.2 orfl
Slide 29: Generation strategy: levelized cost of new sources
Generation Levelized New 25 Consumers 5¢ Zeeland Back C 0 .Gas .ombined .6¢ . price= combined Build -up 5¢ 7¢ 6¢ cost Cycle $3.00 Strategy: Energy 8¢ Cross of cycle 6¢Gas $4.50 new 11¢ Winds Sources New gas Plant build 10¢ $6.00 is9¢ Supply 7¢ the Wind (¢/kWh) Big W/ 12¢ most 5Coal tax Sources 5.5¢
Slide 30: GAAP Reconciliation
GAAP Reconciliation
Slide 31: CMS Energy earnings reconciliation (unaudited)
CMS Earnings 2003 (Unaudited) Reported After-tax Electric Enterprises Corporate Discontinued Asset Cumulative Mark-to-market 0.03 Adjusted NA * (a) 30Less $1.25 $0.90 (0.43) 2004 ENERGY impairment than and Per excluding earnings items: $0.96 interest 2005 0.51 0.74 $500 accounting gas Share operatio
Slide 32: Reconciliation of gross operating cash flow to GAAP
(unaudited) CMS Reconciliation (mils)ENERGYof Gross Operating Cash Flow to GAAP Operating Activities Energy 2014 2015 2016 2017 2018 2019 2020 Consumers Operating Income + Depreciation & Amortization $1,813 $1,920 $2,027 $2,145 $2,266 $2,401 $2,515 Enterprises Project Cash Flows 20 20 40 58 62 67 71
Slide 33: Investor information and contacts
Customer Electric 1st 2nd 3rd CUSTOMERS 4th 2010 Residential Adjusted 2016 2014 DIG Forestry Donations Weather 13¢ Natural Cost Total Flex INVESTORS 2015 O&M Alt. Plant +7% Contributions Guidance …. INVESTOR Investor One Phil Travis CMS www.cmsenergy.com OUR OUTPERFORMED 12 Capex Self-funded Conserv
Slide 34: B % Policy could
CMS Actual 7% $1.21 Adjusted Int’l 20¢ Dividend Gross 2009 Self-funded Gas CapEx Environmental % -CMS -Peers Base 11 < 2006 O&M $1.1 a5% End New2% of 15 /year 36¢ Infrastructure 1%Sale Peers Generation Mkt Rates Electric (Ind. 2008 File Keep Energy 2010 2014 Energy <$1.26 OCF Cost No 10% Efficiency