Cms Energy Corporation · NYSE:CMS
Cms Energy — Investor Presentation (January 2009)
14 slides from Cms Energy's investor presentation, Jan 12, 2009
Slide 1: Growing Forward Investor Meetings
Growing Forward Investor Meetings January 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: Growing Forward
Consistent financial performance Fair and timely regulation Utility investment Customer value Safe, excellent operations Growing Forward
Slide 4: What's Top of Mind?
What's Top of Mind? Economy and financial markets Sales and uncollectibles Pension funding Energy legislation Capital spending plans
Slide 5: Working to stay ahead of the curve
Nation 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 CMS Working ... 2007 2008 2009 .... to stay ahead of the curve. Monoline collapse (11/07) Credit and stock market implosion (9/15) CMS Completed $130 million Monoline
Slide 6: Sales Trend (Weather Adjusted)
Sales Trend (Weather Adjusted) Electric In November 2008, planned for recession in 2009. "Autos" Share of Business 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 August Pla
Slide 7: Liquidity and Business Strategy
Liquidity and Business Strategy Protect near-term liquidity Access capital market in good windows - be flexible Accelerate Consumers FMBs Extend and add revolver capacity Continue strong risk management Implement cash conservation Act early Be ready to go with more Stay ahead of curve.
Slide 8: Energy Legislation
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
Slide 9: Timeline for Renewable Energy and Energy Optimization Plans
Timeline for Renewable Energy and Energy Optimization Plans February 2009 May 2009 MPSC approve or reject December 2008 MPSC ordered implementation of Clean, Renewable, and Efficient Energy Act MPSC created wind energy resource zone board File: Renewable Energy Plan Energy Optimization Plan August 2
Slide 10: Recent Regulatory Developments
Recent Regulatory Developments Electric Rate Case U-15645 Primary factors: Amount (mils) Higher rate base ($700 million) $100 O&M inflation, system reliability, uncollectibles 50 Lower sales 50 Cost of capital (11% ROE) 14 Total $214 Proposed uncollectibles and sales trackers Gas Rate Case U-15506 S
Slide 11: 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 Regulatory Timeline November December April May June September November Electric Rate Case U-15645 Filed Staff and intervenors file Rebuttals Self implement Cross examinatio
Slide 12: 8% Utility Growth Investment Plan
2009-13 (mils) Base capital $ 3,800 Choices in Plan Coal plant $ 1,150 AMI 700 Renewables/energy efficiency 375 Electric reliability and other 400 Gas compression/pipelines 250 Total Choices in Plan $ 2,875 Total Capital 2009-13 $ 6,675 2008 2009 2010 2011 2012 2031 Depreciation 7.851 8.684 8.267 7.
Slide 13: What Makes CMS Different?
What Makes CMS Different? Recent State legislation provides framework for growth Diversified investment opportunities boost rate base and EPS Solid liquidity position, no need to issue equity in near term NOL and AMT credits add value Track record of predictability
Slide 14: Appendix
Appendix