Cms Energy Corporation · NYSE:CMS
Cms Energy — Barclays CEO Energy/Power Conference 2009
24 slides from Cms Energy's conference presentation, Sep 10, 2009
Slide 1: Growing Forward
Growing Forward Barclays CEO Energy/Power Conference September 9-10, 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: Consistent financial performance and utility investment
Consistent financial performance Fair and timely regulation Utility investment Customer value Safe, excellent operations 2
Slide 4: Consumers Energy
Consumers Energy Diversified investment Affordable to customers Healthy capital structure Attractive earnings growth Investment required or strongly desired Timely recovery Ludington Pumped Storage B C Cobb J H Campbell D E Karn J C Weadock J R Whiting Mio Alcona Cooke Foote Loud 5 Channels Hodenpyl
Slide 5: Utility Investment Plan 2009-2013
Utility Investment Plan - 2009-2013 base 1 base 2 base 3 Clean Coal Plant AMI Renewables Electric Reliability and Other Gas Compression and Pipeline 2.55 0.436 0.963 0.53 0.62 0.31 0.55 0.34 $6.3 Billion investment program diversified. Base Capital 63% Maintenance 41% Customer Growth 7% Clean Air 15
Slide 6: Electric Sales
Sales Electric Sales (weather adjusted) Sales decline similar to recession in early 1980s; new businesses emerging. 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 1995 1996 1997 1998 1999 2000 200
Slide 7: 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 8: Weather: normal vs actual high temperatures
Normal High Actual High 6/1/2009 75 76 1 6/2/2009 75 62 -13 6/3/2009 75 66 -9 6/4/2009 75 69 -6 6/5/2009 76 75 -1 6/6/2009 76 71 -5 6/7/2009 76 76 0 6/8/2009 77 74 -3 6/9/2009 77 68 -9 6/10/2009 77 74 -3 6/11/2009 77 66 -11 6/12/2009 77 75 -2 6/13/2009 78 69 -9 6/14/2009 78 78 0 6/15/2009 78 79 1 6/
Slide 9: Michigan Energy Legislation
Michigan Energy Legislation Bills balance need for regulatory certainty with customer interests. File and implement ratemaking with forward test year Rate deskewing - over 5 years Cap on choice - 10% of load Certificate of Necessity Renewables - 10% by 2015 Energy efficiency - sales reduction target
Slide 10: 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 11: Electric Rate Case
Electric Rate Case filed (November 2008) Self Implemented Amount (May 2009) Staff Position + Errors Staff Position (April 2009) 197 179 179 138 138 111 111 18 41 27 Electric Rate Case Revised Staff Position (May 2009) Staff Position + Adjustments Self Implement (May 2009) Millions $ Sales $11 Rate B
Slide 12: Rate base growth and investment
2008 2009 2010 2011 2012 2013 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 13: 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 14: What Makes CMS Different?
What Makes CMS Different? 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 avoid need for
Slide 15: Appendix
Appendix
Slide 16: 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 17: 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 18: 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 19: 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 20: Recent Financing
Recent Financing Amount at August 31 (mils) Cash $ 351 Bank Facilities ($1,200) 792 Accounts Receivable Facility ($250) 53 Total liquidity $1,196 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 ris
Slide 21: 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-8
Slide 22: 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-9
Slide 23: 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-10
Slide 24: 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
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