Cms Energy Corporation · NYSE:CMS
Cms Energy — Investor Presentation (September 2014)
18 slides from Cms Energy's investor presentation, Sep 5, 2014
Slide 1: CMS Autumn Meeting September 7, 2014
CMS Autumn Meeting September 7, 2014 Content 1-2 How it Works 3 Upsides 4-5 Partners 6-7 Investment
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
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Slide 4: Founded 1886 in Jackson; Consumers Energy overview
Founded: 1886 in Jackson, stl ome to the comport headquarters. Employees: 7410 n 2013 ~ plus 7.500 contractors. 2013 Operate revere: $66 titlen. ‘CONSUMERS ENERGY: Ss clon age tty nd aro pt combination ity. Operates and maintlns more than 26,000 mes of {3 dstbuion pipeline and 65,000 mle feet drbtio
Slide 5: How it Works -- Near Term steps ahead
HOW IT WORKS -- Near Term . . . . . . . . steps ahead. Investment & EPS Growth Ten-year Conservative Plan Big Upsides, not in plan Competitive Rates Elections A B C D Energy Law Update 1 D C B A
Slide 6: National Average Electric Rates; Key Performance Indicators
National Average Electric Rates KEY PERFORMANCE INDICATORS ™ RELIABILITY We know you need power to keep your homes and businesses running ‘smoothly. And the compary’s ‘early $400 milton investment in abilty over the past fve years resulted in some 100,000 fewer ‘customer interruptions in 2013 “ompat
Slide 7: How it Works -- Regulation & Self-Initiated Steps
HOW IT WORKS -- Regulation & Self-Initiated Steps . . . . Self-initiated Rate design, regulatory ROA Policy, legislation Consumers higher than Midwest peer avg Below Midwest peers . . . . being taken to maintain competitive bills & improve industrial rates. House Bill 5476 Industrial Electric Rate
Slide 8: Total O&M Costs; Controlling Costs
Total O&M Costs 2006-2013 nsec Dv CaM mine prevent 2013 baa econ a pot ond New nrg dy ora tine te et Be ey KEY PERFORMANCE INDICATORS CONTROLLING COSTS mary businesses these days, wore
Slide 9: Upsides -- O&M Cost Control
UPSIDES -- O&M Cost Control . . . . . . . . allows us to make customer-focused investments. Average Annual O&M Change +6% -2% -2% _ _ _ _ _ a -8% Before reinvestment +2% Peers Peers CMS CMS Peers -1% Upside? _ _ _ _ _ a O&M change excluding 2013 major storms Amount (mils) 2012 2013 2014 Cost reducti
Slide 10: Community Engagement
COMMUNITY ENGAGEMENT ‘Comers Energy provide the restive egy nod eourcerto make oureiie 30 renee end oes “Werden comet song ons sedealing up orn ts do the ard eek naan he states rest lato. Ato income eter py tt ecg ‘Many tines, then lot go ase. Bat hey Ulpet Consumer ergy, wale pups for ign ‘Committe
Slide 11: Partners -- Michigan Governor's Race
PARTNERS -- Michigan Governor’s Race . . . . . . . . focus on non-energy issues. Mark Schauer Democrat, Challenger Campaign Issues Education Jobs Roads Detroit On Energy “Choice creates a lot of challenges and problems, essentially trying to arbitrage markets.” -Governor Rick Snyder 4 Rick Snyder Re
Slide 12: Meeting Michigan's Energy Needs
MEETING MICHIGAN’S:. RE.ENERGY NEEDS *~ < Wee a ‘ - e . ‘
Slide 13: Partners -- Michigan Energy Law
PARTNERS -- Michigan Energy Law . . . . Historical test year 12-18 months regulatory lag No cap on ROA 10% renewables by 2015 Energy efficiency standards File-and-implement 10% ROA cap Adaptability Reliability Affordability Environmental protection Before 2008 TODAY 2015 Improvements . . . . builds
Slide 14: 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 15: Investment -- Ten-Year Plan
INVESTMENT -- Ten-Year Plan Expanding . . . . . . . . driving long-term growth, while keeping base rates below inflation. 2013-2022 10-Year Plan Opportunity Level $15 Billion $15 Billion X Rate Base 5%-7% Customer base rates <2 >4 $20+ Billion Opportunity Amount (bils) Generation capacity PPA repl
Slide 16: Recent investments: gas plant, pumped storage, smart meters
Purchased a $155 MILLION, 540-megawatt natural gas- fueled electric generating lant in Jackson, $800 MILLION in renatons at the Ladingon Punped Storage plant. Continuing 3 $750 MILLION {investment for smart meter ‘deployment throughout the state,
Slide 17: Investment -- Capacity Opportunities
INVESTMENT -- Capacity Opportunities . . . . . . . . emerging with replacement not yet in plan. Ten-year Capacity Growth ~800 MW 1,240 MW MW PPA 2,600 capacity ~30% ~8,600 MW 540 MW 410 MW Shortfall Owned 6,000 780 MW 900 MW Potential for ~3,000 MW of owned capacity 2,000 MW 11,000 Further Upside PP
Slide 18: [LOGO]
[LOGO]