EX-99.1 2 d268067dex991.htm EXHIBIT 99.1

Exhibit 99.1

Growing Forward

Credit Suisse Investor Meeting

December 12, 2011

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, 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 read in conjunction with “FORWARD-LOOKING STATEMENTS AND INFORMATION” and “RISK FACTORS” sections of CMS Energy’s and Consumers Energy’s Form 10-K for the year ended December 31 and as updated in subsequent 10-Qs. CMS Energy’s and Consumers Energy’s “FORWARD-LOOKING

STATEMENTS AND INFORMATION” and “RISK FACTORS” sections are incorporated herein by reference and discuss important factors that could cause CMS Energy’s and Consumers Energy’s results to differ materially from those anticipated in such statements. CMS Energy and Consumers Energy undertake no obligation to update any of the information presented herein to reflect facts, events or circumstances after the date hereof.

The presentation also includes non-GAAP measures when describing CMS Energy’s results of operations and financial performance. A reconciliation of each of these measures to the most directly comparable GAAP measure is included in the appendix and posted on our website at www.cmsenergy.com.

Reported earnings could vary because of several factors, such as legacy issues associated with prior asset sales. Because of those uncertainties, the company is not providing reported earnings guidance.

1 |

Investment Consideration . . . .

Dividend yield (4%) and EPS growth (5% to 7%) provide attractive total return

“Needed” Utility investment with transparent, long-term earnings growth Constructive regulatory environment and good energy law support Utility investment in Michigan

. . . . predictable,redictable, affordable, and sustainable.

2 |

CMS Business Model . . . .

Actual Results

(2006-2010)

$4.6 Billion Investment

NOLs in lieu of

Equity <3% Base Rates

7% OCF

& EPS

Growth

Future Outlook

(2012-2016)

$6.6 | Billion

Investment

NOLs in lieu of

Equity <2% Base

Rates

5%-7% OCF

& EPS

Growth

. . . . predictable and repeatable.

3 |

Plan Model Stronger than Most Peers . . . .

RESULTS –

Consistent Financial Performance

Risk Mitigation

Energy Law

Discipline

Strong liquidity

Enablers

Michigan Energy Law

Supportive regulation

O&M cost flat to down

Base rates < inflation

Sales recovery

Cash from NOLs

Needed Investment

. . . . with enablers and risk mitigation.

4 |

Recent Announcements . . . .

Continued, substantial environmental investments at five major coal-fired units

Create more than 2,000 construction jobs in Michigan

Provide significant emissions reductions

Cancellation of proposed clean coal plant project

Reduced customer demand for electricity

Surplus generating capacity in Midwest market

Lower natural gas prices

Update of air quality control plans

Existing and pending federal and state environmental regulations

Ongoing market conditions

Suspension of operations at the several smaller coal-fired units

. . . . didn’t change $6.6 billion investment plan.

5 |

ENABLER – 2012-2016 Capital Investment . . . .

$6.6 Billion

Renewables Distribution

$0.5 | $1.7

Reliability

$1.2

Generation

Smart Grid $0.5

$0.3

New Customers

$0.3

Environmental

$1.5 | Other

$0.6

. . . . “needed” (vsvs “wanted”) — grows rate base 5% to 7%.

6 |

INVESTMENT – $1.5 Billion Environmental . . .

Expenditures

2012 – 2016

(bils)

Air

NOx $0.1

SO2 0.7

Mercury 0.4

Water 0.1

Solid Waste 0.2

Total $1.5

Clean Air Standards

Cross-state Air Pollution Rule mandates SO2 and NOx reductions by January 2012

Plan in place to achieve compliance

Maximum Achievable Control Technology (MACT)

Largest five coal units planned to be controlled – 2,000 MW

Retirement or mothballing of smaller coal plants – 950 MW

. . . . to comply with state and federal laws and regulations.

7 |

Emission Reductions . . . .

Tons per Year Pounds per Year

(Mercury)

120,000 700

SO2

100,000 600

Mercury

500

80,000

400

60,000 NOx

300

40,000

200

20,000 100

0 0

1995 2000 2005 2010 2015 2020

SO2 NOx Mercury

reduced NOx 74% and SO2 67%.

8 |

INVESTMENT – Distribution . . . .

Electric—$1.0 billion

Reliability improvements

Capacity enhancements

Gas—$700 million

Capacity and deliverability

Pipeline integrity

. . . . essential investments to maintain safe and excellent service.

9

INVESTMENT – Reliability . . . .

Electric—$800 million

Strengthen circuits and substations

Replace poles

Upgrade Ludington Pumped Storage Plant

Gas—$400 million

Main replacement program

Enhance transmission and storage systems

. . . . reduces outages and improves customer satisfaction.

10

INVESTMENT – Renewable Energy Plans . . . .

Michigan energy law requires:

10% renewables by 2015

Purchase 50% and build 50%

Renewable energy surcharge reduced by $54 million annually; further reduction expected

Plan to invest about $500 million over next five years, primarily in wind power

$232 million, Lake Winds Energy Park under construction

. . . . at lower customer costs while maintaining investment.

11

INVESTMENT – Smart Grid Deployment .

$300 million next 5 years

Total project cost $750 million

Installation of 1.8 million electric meters

Deployment begins fall 2012 continuing through 2019

Utilizing SmartSynch cellular network

Most secure, flexible and scalable

Technology enables customers to manage energy use and

integrate new technology

Enterprise Applications

Work and Asset Management

Billing Customer Information Outage Management

MDM/MDUS

. . . . improves overall financial viability.

12

INVESTMENT – “Self Limited” . . . .

2012 – 2016 Plan Unrestrained

Pipe replacements $6.6 Billion

Pole replacements

New gas generation

Faster smart grid

$10 Billion

Customer rates <2% >4%

. . . . to maintain sustainable base rate increases at less than inflation.

13

ENABLER – Michigan Energy Law . . . .

2008 Law

Growth

Renewable energy plan

Energy optimization

Speed

File and implement ratemaking

Forward test year

Risk Mitigation

Retail open access cap

Decoupling

Regulation

John Quackenbush, Chairman Appointed: 9/15/11 Term Ends: 7/2/17 Republican

Orjiakor Isiogu, Commissioner Appointed: 9/9/07 Term Ends: 7/2/13 Democrat

Greg White, Commissioner Appointed: 12/4/09 Term Ends: 7/2/15 Independent

. . . . enables timely rate recovery and mitigates risks.

14

Regulatory Timeline

2008 2009 2010 2011 2012

Electric

2009 Filed Self-Imp Order Offsets

$214 M $179 M $139 M Renewables $(57)

DOE(23)

Order Total $(80)

2010 New 78% Filed Self-Imp $146 M

Energy $178 M $150 M

Law

2011 Filed Self- Decision

97%% $195 M Imp

Gas $118 M

2009 Filed Self-Imp Order

$114 M $89 M $66 M

2010 Filed Order Filed Self-

74% $55 M $31 M $49 M Imp Decision

2008 2009 2010 2011 2012

working well.

15 |

ENABLER – O&M Cost Control . . . .

Average Annual Increase a

7.5% Other O&M

Benefits, storms, low income

3.1% funding & uncollectibles

2.8%

4.4% 1.4%

1.4% 0.1%

2002-2006 _ 2007-2011 2012-2016

a Excluding energy optimization

Recent Cost Reductions

Fuel

Western coal – $250 million Base Rates and Surcharges

Benefit plans – $30 million

SAP system efficiencies –$40 million

Reduced workforce – $30 million

Reduced customer renewable energy surcharge – about $54 million

. . . . helps maintain “affordability” (creates headroom).

16

ENABLER – Intense Customer Focus . . . .

Productivity initiatives Customer value initiative Maximize energy optimization Improve system reliability Competitive rates

2012-2016 Estimated Annual

Average Base Rate Increases a

a Includes surcharges

Inflation

<2%

1.5%

Electric Gas

. . . . to maintain affordable and sustainable rates.

17

ENABLER – Electric Sales (weather adjusted) . . . .

Electric Sales Sales (year over year)

GWh 3 Year

40,000 Recovery

6% decline

35,000 2007 to 2009

30,000

25,000 2 Year

Recovery

7% decline

20,000 1979 to 1982

15,0000

1975 1979 1983 1987 1991 1995 1999 2003 2007 2012

Outlook

6%

2% 2%

2%

1.5%

1/2 %

2%

3%

6%

2006 2007 2008 2009 2010 2011 2012

Forecast Outlook

. . . . industrial at pre-recession level; total sales back in 2012.

18

Liquidity (as of 9/30/2011) . . . .

Availability

CMS Energy

5-year revolver—2016 $547 mils

Consumers Energy 40%

5-year revolver—2016 Market Cap

499

3-year revolver—2013 150

A/R Facility—2011 250

Cash 623

Parent Maturities

$250

$150

Prefunded

$50

$0

2011 2012 2013 2014

. . . . strong and conservative.

19

RESULTS – Operating Cash Flow Growth . . . .

Amount

(bils)

$ 2.5 Gross operating cash flow a

up $0.1 billion per year

2.0 | $1.8 $1.9

$1.7

$1.5 | $1.6 $1.6

1.5 | $1.3 Interest

1.0 | Working capital and taxes

Base Investment

0.5

0.0 | Investment choices

Cash flow before dividend

(0.5)

(1.0)

_ 2009 2010 2011 2012 2013 2014 2015

a Non-GAAP

. . . . supported by “desirable” investments.

20

RESULTS – EPS and Dividend Growth . . . .

8% CAGR 5%-7% Growth

$1.36

Actual a $1.26

Guidance $1.21 b $1.35

$1.25

1.08 | $1.20

0.96

0.90 | 1.00 0.84

$0.81 | 0.90 84¢

$0.80 | 0.85 0.80 58%

50¢ |

40% 68%

36¢ | Dividend

Increase

Annual dividend/share 20¢ 30%

Payout 25%

2003 2004 2005 2006 2007 2008 2009 2010 2011 Future

a Adjusted EPS (non-GAAP) excluding MTM in 2004-2006

b $1.25 excluding discontinued Exeter operations and accounting changes related to convertible debt and restricted stock

results from “needed” investment.

21 |

EPS Growth (5% to 7%) and Dividend Yield (4%) . . . .

Consistent

financial

performance

Fair and timely

regulation

Utility Customer

investment value

Safe, excellent operations

predictable,redictable, affordable, and sustainable.

22 |

Appendix

Consumers Capital Expenditures

Plan 2012-2016

2012 2013 2014 2015 2016 Total

(mils)(mils)(mils)(mils)(mils)(mils)

Electric

Distribution $ 198 $ 188 $ 196 $ 191 $ 193 $ 966

Generation 98 80 136 78 130 522

Environmental 268 349 320 356 260 1,553

New customers 31 31 35 39 40 176

Other 99 90 70 73 75 $ 407

Base capital $ 694 $ 738 $ 757 $ 737 $ 698 $ 3,624

Gas

Distribution $ 128 $ 143 $ 145 $ 145 $ 145 $ 706

New customers $ 29 $ 18 $ 20 $ 21 $ 22 $ 110

Other 51 46 47 39 40 223

Base capital $ 208 $ 207 $ 212 $ 205 $ 207 $ 1,039

Total base capital $ 902 $ 945 $ 969 $ 942 $ 905 $ 4,663

Investment choices:

Reliability $ 247 $ 235 $ 249 $ 209 $ 212 $ 1,152

Renewables 186 24 112 228 8 558

Smart Grid 61 51 53 54 47 266

Total choices $ 494 $ 310 $ 414 $ 491 $ 267 $ 1,976

Total Utility $ 1,396 $ 1,255 $ 1,383 $ 1,433 $ 1,172 $ 6,639

24 |

Risk Mitigation

Risk Mitigation

Economy Sluggish recovery or • Back-up liquidity

downturn • Customer focus

Capital Investments Regulatory recovery • Priority projects

• Regulatory alignment

Regulatory / Political ROA and customer rate • ROA “cap”

pressure • Rate increases < “inflation”

Commodities (prices) Regulatory alignment • Follow MPSC-approved plan

to ensure recovery

Capital Structure Interest rates • Maintain financial flexibility

• Prefund obligations

Shareowner Return Sustainable returns; • Risk management

interest rates • Consistent EPS performance

• Attractive dividend policy

CMS ranks among best at risk mitigation.

25 |

2011 and 2012 Sensitivities

Annual Impact

Sensitivity EPS OCF

(mils)

Sales (weather adjusted) a

Electric (37,395 Gwh) + 1% $ 0 + $20

Gas (287 Bcf) + 1 + 0.01 + 5

Gas prices (NYMEX) + 1.00 –+ 0.01 –+ 60

Uncollectible accounts (mils) + 5 –+ 0.01*

ROE (authorized)

Electric (10.7%) + 20 bps + 0.02 + 10

Gas (10.5%) + 20 + 0.01 + 4

_ Stock price (dilution) $1 share + 0.01 0

* | Less than 0.5¢ or $500,000

a Reflect 2011 sales forecast

partly mitigated.

26 |

Customer Rate Cases

U-16794 U-16855

Electric Gas

(mils)(mils)

Investment $149 $32

O&M (lower)(18)(4) 33

Low income assistance 14 19

Subtotal $145 $47

Sales 50 2

Total $195 $49

Offsets:

Renewables(57) -

$(80)

DOE(23) -

Net $115 $49

Customer base rate increases 1.6% 2.2%

Self implementation December March

recoverecover investment; reduce O&M.

27 |

ELECTRIC RATE CASE U-16794*

On June 10, 2011, Consumers Energy filed an application with the Michigan Public Service Commission seeking an increase in its electric generation and distribution rates based on a test year of 12 months ending September 2012. On November 15, 2011, the MPSC Staff filed their position, recommending a rate increase of $39 million with a 9.95% return on equity. The variance between Consumers’ filed position and the MPSC Staff’s filed position is detailed below. On November 17, the Company filed testimony that it intends to self-implement a $147 million rate increase on and after December 8 under the provisions of 2008 PA 286.

Item |  | Company (Mils) |  |  | MPSC Staff (Mils) |  |  | MPSC Staff B/(W) (Mils) |  |  | Explanation of Variance
1. |  | Rate Base |  | $ | 81 |  |  | $ | 60 |  |  | $ | (21 | ) |  | Environmental, reliability, other Capex: ($20) Return on clean coal plant: ($1)
2. |  | Depreciation/ Property Taxes |  |  | 70 |  |  |  | 18 |  |  |  | (52 | ) |  | New depreciation rates: ($28) Coal plant amortization: ($7) Federal income taxes, other: ($17)
3. |  | O&M |  |  | (4 | ) |  |  | (44 | ) |  |  | (40 | ) |  | Uncollectibles (LIHEAP): ($14) Forestry: ($12) Generation O&M, other: ($14)
4. |  | Rate of Return |  |  | (2 | ) |  |  | (45 | ) |  |  | (43 | ) |  | Lower return on equity: ($39) Lower debt cost: ($4)
5. |  | Sub-total |  | $ | 145 |  |  | $ | (11 | ) |  | $ | (156 | ) |  |
6. |  | Gross Margin |  |  | 50 |  |  |  | 50 |  |  |  | 0 |  |  |
7. |  | Total |  | $ | 195 |  |  | $ | 39 |  |  | $ | (156 | ) |  |

Ratemaking Capital Structure % |  | Existing (U-16191) |  |  | Consumers Filing |  |  | MPSC Staff Filing |
Long Term Debt |  |  | 40.63 | % |  |  | 39.39 | % |  |  | 39.39 | %
Short Term Debt |  |  | 1.51 |  |  |  | 1.75 |  |  |  | 1.75 |
Preferred Stock |  |  | 0.44 |  |  |  | 0.42 |  |  |  | 0.42 |
Common Equity |  |  | 41.59 |  |  |  | 42.07 | (1) |  |  | 42.07 |
Deferred FIT |  |  | 15.30 |  |  |  | 15.89 |  |  |  | 15.89 |
JDITC/Other |  |  | 0.53 |  |  |  | 0.48 |  |  |  | 0.48 |
|  |  | 100.00 | % |  |  | 100.00 | % |  |  | 100.00 | %
Rate Base and Return Percentage |  | Existing (U-16191) |  |  | Consumers Filing |  |  | MPSC Staff Filing |
Rate Base (billions) |  | $ | 6.87 |  |  | $ | 7.54 |  |  | $ | 7.31 |
Return on Rate Base |  |  | 6.98 | % |  |  | 6.92 | % |  |  | 6.55 | %
Return on Equity |  |  | 10.70 | % |  |  | 10.70 | % |  |  | 9.95 | %

(1) | Equivalent to 51.38% on a financial basis.

ELECTRIC RATE CASE SCHEDULE

Self-implementation Hearing |  | November 22, 2011
Rebuttal Testimony |  | December 2, 2011
Self-implementation Date |  | December 8, 2011
Cross of all Witnesses |  | December 13-22, 2011
Initial Briefs |  | January 24, 2012
Reply Briefs |  | February 14, 2012
Proposal for Decision |  | March 30, 2012 (target)

* | Electric Rate Case U-16794 can be accessed at the Michigan Public Service Commission’s website. http://efile.mpsc.cis.state.mi.us/efile/electric.html

28

GAS RATE CASE U-16855*

On September 2, 2011, Consumers Energy filed an application with the Michigan Public Service Commission seeking an increase in its gas delivery and transportation rates based on a 12 month ending December, 2012 test year. The request seeks authorization to implement an uncollectible accounts expense tracker as well as OPEB and Pension trackers. The proposed capital structure includes a 10.70% authorized return on equity. If approved, the request would add about $1.80 per month, or about 2.2%, to the typical residential customer’s average monthly bill. The $49 million revenue deficiency is detailed below.

Item |  | $ Millions |  | Explanation
1. |  | Investment |  | $22 |  | Net plant (reliability & safety, regulatory compliance, deliverability): $17 Working capital: $11 Taxes and AFUDC: $(6)
2. |  | Gross Margin |  | 2 |  | Sales mix: $(4) Reduced miscellaneous revenues: $6
3. |  | O&M |  | 15 |  | Uncollectible accounts expense (reduced LIHEAP funding): $19 Reduced benefits/increased productivity: $(14) Gas pipeline integrity and safety: $10
4. |  | Cost of Capital |  | 10 |  | Return on Equity (10.70% vs. 10.50%): $4 Other capitalization costs: $6
|  | Total |  | $49 |  |

Ratemaking Capital Structure |  | Existing (U-16418) |  |  | As Filed Percent of Total |  |  | Annual Cost |  |  | After-Tax Weighted Costs |
Long Term Debt |  |  | 41.12 | % |  |  | 39.58 | % |  |  | 5.83 | % |  |  | 2.31 | %
Short Term Debt |  |  | 2.36 |  |  |  | 2.20 |  |  |  | 3.91 |  |  |  | 0.10 |
Preferred Stock |  |  | 0.41 |  |  |  | 0.40 |  |  |  | 4.46 |  |  |  | 0.02 |
Common Equity |  |  | 40.10 |  |  |  | 41.55 | (1) |  |  | 10.70 |  |  |  | 4.45 |
Deferred Taxes |  |  | 15.50 |  |  |  | 15.80 |  |  |  | 0.00 |  |  |  | 0.00 |
JDITC/Other |  |  | 0.51 |  |  |  | 0.47 |  |  |  | 8.27 |  |  |  | 0.02 |
|  |  | 100.00 | % |  |  | 100.00 | % |  |  |  |  |  |  | 6.90 | %(2)

Rate Base and Return Percentage |  | Existing (U-16418) |  |  | As Filed |
Rate Base (billions) |  | $ | 2.86 |  |  | $ | 3.07 |
Return on Rate Base |  |  | 6.69 | % |  |  | 6.90 | %
Return on Equity |  |  | 10.50 | % |  |  | 10.70 | %

(1) | Equivalent to 50.96% on financial basis.

(2) | Equivalent to 9.76% pre-tax basis.

GAS RATE CASE SCHEDULE

Staff & Intervenors File Testimony |  | February 3, 2012
Rebuttal Testimony |  | February 21, 2012
Self-implementation Date |  | March 1, 2012
Cross of all Witnesses |  | March 12 through March 23
Initial Briefs |  | April 20, 2012
Reply Briefs |  | May 11, 2012
Proposal for Decision |  | June 22, 2012 (Target)
Commission Order |  | Not later than Friday, August 31, 2012

*Gas | Rate Case U-16855 can be accessed at the Michigan Public Service Commission’s website.

29

Consumers Energy’s Regulated Rate Base

Total Rate Base Present Rate Cases as Filed

$10.6 | Billion Electric Gas

(U-16794)(U-16855)

Rate base (bilsbils)) $7.5 $3.1

Gas

29%

Electric Equity ratio 42.07% 41.55%

71% Requested ROE 10.7 10.7

Authorized ROE 10.7 10.5

planned to grow 5% -7% annually over next five years.

30 |

Credit Ratings

CMS Energy Consumers Energy

(Senior Unsecured)(Senior Secured)

Moody’s Ba1/Stable A3/Stable

S&P BB+/Stable BBB+/Stable

Fitch BB+/Stable BBB+/Stable

31

Federal Tax Benefits

Net NOLs and Credits (bils)

$0.8 $0.8

$0.7

$0.5

$0.3

$0.2

2010 2011 2012 2013 2014 2015

Gross NOLs (bils) $1.4 $1.3 $1.2 $0.5 $0

.... offset need for equity (dilution) for five years!

32

Electric Customer Base Diversified . . . .

Hemlock Semiconductor

General Motors

State of Michigan

Meijer Incorporated

Nexteer Automotive Corporation

Packaging Corporation of America

Gerdau MacSteel

Denso International

Spectrum Health

City of Grand Rapids

Percent of 2010 electric gross margin is 2%

2010 Electric Gross Margin

Residential,

48%

Commercial,

31%

Other Autos, 4%

(including

ROA), 7% Industrial, 10%

$1.95 | Billion

Note: “Autos” includes 180 Business Partners identified by customer

account managers

“Autos” only 4% of gross margin.

33 |

MATURITY SCHEDULE OF CMS AND CECO LONG-TERM DEBT & PREFERRED SECURITIES

AS OF 10/31/2011

Reflects early redemption of $50MM CMS Senior Notes 10/31/11

F/V |  | S/U |  | Maturity or Call Date |  | Amount (000’s) |  |  | DEBT/ CO
SHORT-TERM DEBT:
F |  | U |  | SHORT-TERM |  | $ | 172,500 |  |  | 5.5% Convertible Sr Notes (CMS)
F |  | U |  | SHORT-TERM |  |  | 287,499 |  |  | 2.875% Convertible Sr Unsec Notes (CMS)
F |  | S |  | 02/15/12 |  |  | 300,000 |  |  | 5% Series L FMBs (CECo)
|  |  |  |  |  | $ | 759,999 |  |  |
LONG-TERM DEBT:
V |  | U |  | 01/15/13 |  | $ | 150,000 |  |  | Floating Rate Sr Notes (CMS)
F |  | S |  | 04/15/13 |  |  | 375,000 |  |  | 5.375% Series B FMBs (CECo)
|  |  |  |  |  | $ | 525,000 |  |  |
F |  | S |  | 02/15/14 |  | $ | 200,000 |  |  | 6% FMBs (CECo)
F |  | U |  | 05/15/14 |  |  | 250,000 |  |  | 2.75% Sr Notes (CMS)
|  |  |  |  |  | $ | 450,000 |  |  |
F |  | S |  | 03/15/15 |  | $ | 225,000 |  |  | 5% FMBs Series N (CECo)
F |  | U |  | 09/30/15 |  |  | 250,000 |  |  | 4.25% Sr Notes (CMS)
F |  | S |  | 10/15/15 |  |  | 50,000 |  |  | 2.60% FMBs (CECo)
F |  | U |  | 12/15/15 |  |  | 125,000 |  |  | 6.875% Sr Notes (CMS)
|  |  |  |  |  | $ | 650,000 |  |  |
F |  | S |  | 08/15/16 |  | $ | 350,000 |  |  | 5.5% Series M FMBs (CECo)
F |  | S |  | 02/15/17 |  |  | 250,000 |  |  | 5.15% FMBs (CECo)
F |  | U |  | 07/17/17 |  |  | 250,000 |  |  | 6.55% Sr Notes (CMS)
F |  | S |  | 10/15/17 |  |  | 100,000 |  |  | 3.21% FMBs (CECo)
F |  | U |  | 02/15/18 |  |  | 250,000 |  |  | 5.05% Sr Notes (CMS)
F |  | S |  | 03/01/18 |  |  | 180,000 |  |  | 6.875% Sr Notes (CECo)
V |  | S |  | 04/15/18 |  |  | 67,700 |  |  | VRDBs to replace PCRBs (CECo)
F |  | S |  | 09/15/18 |  |  | 250,000 |  |  | 5.65% FMBs (CECo)
F |  | S |  | 03/15/19 |  |  | 350,000 |  |  | 6.125% FMBs (CECo)
F |  | U |  | 06/15/19 |  |  | 300,000 |  |  | 8.75% Sr Notes (CMS)
F |  | S |  | 09/15/19 |  |  | 500,000 |  |  | 6.70% FMBs (CECo)
F |  | U |  | 02/01/20 |  |  | 300,000 |  |  | 6.25% Sr Notes (CMS)
F |  | S |  | 04/15/20 |  |  | 300,000 |  |  | 5.65% FMBs (CECo)
F |  | S |  | 10/15/20 |  |  | 100,000 |  |  | 3.77% FMBs (CECo)
F |  | S |  | 09/01/22 |  |  | 250,000 |  |  | 5.30% FMBs (CECo)
F |  | U |  | 07/15/27 |  |  | 28,667 |  |  | QUIPS 7.75%(CMS) Pref Sec
V |  | S |  | 04/01/35 |  |  | 35,000 |  |  | PCRBs (CECo)
F |  | S |  | 09/15/35 |  |  | 175,000 |  |  | 5.80% FMBs (CECo)
F |  | S |  | 09/01/40 |  |  | 50,000 |  |  | 6.17% FMBs (CECO)
F |  | S |  | 10/15/40 |  |  | 50,000 |  |  | 4.97% FMBs (CECo)
|  |  |  |  |  |  | 4,136,367 |  |  |
|  |  |  |  |  | $ | 6,521,366 |  |  | TOTAL
|  |  |  |  |  | $ | 6,492,699 |  |  | TOTAL EXCLUDING PREFERRED SECURITIES
Various Maturity Dates/No Maturity Date Available:
|  |  |  |  |  | $ | 171,456 |  |  | CECo Securitization Bonds after 10/20/11 payment
|  |  |  |  |  |  | 194,602 |  |  | CECo Capital lease rental commitments as of 09/30/11
|  |  |  |  |  |  | 421,975 |  |  | EnerBank Discount Brokered CDs as of 09/30/11 (CMS)
|  |  |  |  |  |  | (18,761 | ) |  | CMS Net unamortized discount as of 09/30/11
|  |  |  |  |  |  | (3,587 | ) |  | CECo Net unamortized discount as of 09/30/11
|  |  |  |  |  | $ | 7,287,050 |  |  | GRAND TOTAL

Status Codes: F-Fixed rate; V-Variable rate; S-Secured; U-Unsecured

34

|  | Consumers Electric Utility Financial & Operating Statistics

Years Ended December 31 |  | 2010 |  |  | 2009 |  |  | 2008 |  |  | 2007 |  |  | 2006 |
ELECTRIC REVENUE AND POWER COSTS (Millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | $ | 1,614 |  |  | $ | 1,387 |  |  | $ | 1,414 |  |  | $ | 1,326 |  |  | $ | 1,279 |
Commercial |  |  | 1,166 |  |  |  | 1,099 |  |  |  | 1,129 |  |  |  | 1,111 |  |  |  | 1,062 |
Industrial |  |  | 749 |  |  |  | 677 |  |  |  | 810 |  |  |  | 775 |  |  |  | 764 |
Other |  |  | 40 |  |  |  | 36 |  |  |  | 32 |  |  |  | 30 |  |  |  | 29 |
Total revenue from customers |  | $ | 3,569 |  |  | $ | 3,199 |  |  | $ | 3,385 |  |  | $ | 3,242 |  |  | $ | 3,134 |
Wholesale |  |  | 20 |  |  |  | 19 |  |  |  | 22 |  |  |  | 23 |  |  |  | 22 |
Intersystem |  |  | 99 |  |  |  | 94 |  |  |  | 113 |  |  |  | 92 |  |  |  | 45 |
Retail open access/direct access |  |  | 54 |  |  |  | 31 |  |  |  | 15 |  |  |  | 15 |  |  |  | 17 |
Miscellaneous |  |  | 60 |  |  |  | 64 |  |  |  | 59 |  |  |  | 71 |  |  |  | 84 |
Total electric utility revenue |  | $ | 3,802 |  |  | $ | 3,407 |  |  | $ | 3,594 |  |  | $ | 3,443 |  |  | $ | 3,302 |
Fuel for electric generation |  | $ | 520 |  |  | $ | 460 |  |  | $ | 483 |  |  | $ | 385 |  |  | $ | 436 |
Purchased and interchange power |  |  | 1,308 |  |  |  | 1,232 |  |  |  | 1,388 |  |  |  | 1,449 |  |  |  | 1,135 |
DEPRECIATION AND AMORTIZATION |  | $ | 450 |  |  | $ | 441 |  |  | $ | 438 |  |  | $ | 397 |  |  | $ | 380 |
OPERATING INCOME (Millions) |  | $ | 672 |  |  | $ | 488 |  |  | $ | 576 |  |  | $ | 413 |  |  | $ | 411 |
NET INCOME (Millions) |  | $ | 303 |  |  | $ | 194 |  |  | $ | 271 |  |  | $ | 196 |  |  | $ | 199 |
DELIVERIES (Million kWhs) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
System sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  |  | 12,968 |  |  |  | 12,386 |  |  |  | 12,854 |  |  |  | 13,206 |  |  |  | 12,975 |
Commercial |  |  | 11,026 |  |  |  | 11,211 |  |  |  | 11,969 |  |  |  | 12,384 |  |  |  | 12,199 |
Industrial |  |  | 9,061 |  |  |  | 9,290 |  |  |  | 10,563 |  |  |  | 11,153 |  |  |  | 11,143 |
Other |  |  | 235 |  |  |  | 230 |  |  |  | 225 |  |  |  | 231 |  |  |  | 227 |
Total sales to ultimate customers |  |  | 33,290 |  |  |  | 33,117 |  |  |  | 35,611 |  |  |  | 36,974 |  |  |  | 36,544 |
Wholesale |  |  | 325 |  |  |  | 328 |  |  |  | 333 |  |  |  | 496 |  |  |  | 498 |
Retail open access/direct access |  |  | 4,079 |  |  |  | 2,326 |  |  |  | 1,541 |  |  |  | 1,364 |  |  |  | 1,455 |
Intersystem |  |  | 1,394 |  |  |  | 1,277 |  |  |  | 1,176 |  |  |  | 1,329 |  |  |  | 814 |
Total electric system deliveries |  |  | 39,088 |  |  |  | 37,048 |  |  |  | 38,661 |  |  |  | 40,163 |  |  |  | 39,311 |
AVERAGE ELECTRIC REVENUE (¢/kWh) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  |  | 12.45 |  |  |  | 11.20 |  |  |  | 11.00 |  |  |  | 10.04 |  |  |  | 9.86 |
Commercial |  |  | 10.58 |  |  |  | 9.80 |  |  |  | 9.43 |  |  |  | 8.98 |  |  |  | 8.71 |
Industrial |  |  | 8.27 |  |  |  | 7.29 |  |  |  | 7.67 |  |  |  | 6.95 |  |  |  | 6.86 |
Other |  |  | 17.02 |  |  |  | 15.65 |  |  |  | 14.22 |  |  |  | 12.99 |  |  |  | 12.78 |
Total |  |  | 10.72 |  |  |  | 9.66 |  |  |  | 9.51 |  |  |  | 8.77 |  |  |  | 8.58 |
ELECTRIC CUSTOMERS BILLED (At December 31) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  |  | 1,569,183 |  |  |  | 1,566,980 |  |  |  | 1,584,752 |  |  |  | 1,575,386 |  |  |  | 1,570,113 |
Commercial |  |  | 210,380 |  |  |  | 210,223 |  |  |  | 208,931 |  |  |  | 211,365 |  |  |  | 211,718 |
Industrial |  |  | 8,881 |  |  |  | 8,770 |  |  |  | 8,505 |  |  |  | 8,619 |  |  |  | 8,638 |
Retail Open Access/Direct Access |  |  | 1,095 |  |  |  | 861 |  |  |  | 642 |  |  |  | 642 |  |  |  | 839 |
Other |  |  | 1,287 |  |  |  | 1,282 |  |  |  | 2,045 |  |  |  | 2,025 |  |  |  | 2,009 |
Total |  |  | 1,790,826 |  |  |  | 1,788,116 |  |  |  | 1,804,875 |  |  |  | 1,798,037 |  |  |  | 1,793,317 |
AUTHORIZED RETURN ON EQUITY |  |  | 10.70 | % |  |  | 10.70 | % |  |  | 10.70 | % |  |  | 11.15 | % |  |  | 11.15 | %
EARNED RETURN ON EQUITY-FINANCIAL |  |  | 10.6 | % |  |  | 6.4 | % 1 |  |  | 9.4 | % |  |  | 7.5 | % |  |  | 8.9 | %
RATE BASE (At December 31) ($ Millions) |  | $ | 6,815 |  |  | $ | 6,459 |  |  | $ | 6,175 |  |  | $ | 5,407 |  |  | $ | 5,088 |
COOLING DEGREE DAYS 2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Normal degree days in calendar year |  |  | 558 |  |  |  | 558 |  |  |  | 558 |  |  |  | 558 |  |  |  | 558 |
Actual degree days |  |  | 884 |  |  |  | 379 |  |  |  | 542 |  |  |  | 773 |  |  |  | 613 |
Percent warmer (colder) than normal |  |  | 4.0 |  |  |  | (1.6 | ) |  |  | (2.9 | ) |  |  | 38.5 |  |  |  | 9.9 |
Increase (decrease) from normal in: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Electric deliveries (millions of kWh) |  |  | 855 |  |  |  | (461 | ) |  |  | 146 |  |  |  | 736 |  |  |  | 118 |

| 1 | 9.1% excluding Big Rock Decommissioning refund

| 2 | 2009 Weather updated to align with 2010 methodology

CMS Energy Investor Relations |  | One Energy Plaza, Jackson, MI 49201 Tel. 517-788-2590 |  | http://www.cmsenergy.com

35

|  | Consumers Electric Utility Supplemental Operating Statistics

Years Ended December 31 |  | 2010 |  |  |  |  |  | 2009 |  |  |  |  |  | 2008 |  |  |  |  |  | 2007 |  |  |  |  |  | 2006 |  |  |  |
FUEL COST ($/MMBtu) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Coal |  |  | 2.51 |  |  |  |  |  |  |  | 2.37 |  |  |  |  |  |  |  | 2.01 |  |  |  |  |  |  |  | 2.04 |  |  |  |  |  |  |  | 2.09 |  |  |  |  |
Oil |  |  | 10.98 |  |  |  |  |  |  |  | 9.59 |  |  |  |  |  |  |  | 11.54 |  |  |  |  |  |  |  | 8.21 |  |  |  |  |  |  |  | 8.68 |  |  |  |  |
Gas |  |  | 5.57 |  |  |  |  |  |  |  | 6.57 |  |  |  |  |  |  |  | 10.94 |  |  |  |  |  |  |  | 10.29 |  |  |  |  |  |  |  | 8.92 |  |  |  |  |
Nuclear |  |  | 0.00 |  |  |  |  |  |  |  | 0.00 |  |  |  |  |  |  |  | 0.00 |  |  |  |  |  |  |  | 0.42 |  |  |  |  |  |  |  | 0.24 |  |  |  |  |
Weighted average for all fuels |  |  | 2.71 |  |  |  |  |  |  |  | 2.56 |  |  |  |  |  |  |  | 2.47 |  |  |  |  |  |  |  | 2.07 |  |  |  |  |  |  |  | 1.72 |  |  |  |  |
FUEL COST FOR GENERATION (%) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Coal |  |  | 88.2 |  |  |  |  |  |  |  | 90.6 |  |  |  |  |  |  |  | 81.0 |  |  |  |  |  |  |  | 97.9 |  |  |  |  |  |  |  | 88.2 |  |  |  |  |
Oil and gas |  |  | 3.3 |  |  |  |  |  |  |  | 2.5 |  |  |  |  |  |  |  | 4.1 |  |  |  |  |  |  |  | 9.1 |  |  |  |  |  |  |  | 6.7 |  |  |  |  |
Nuclear |  |  | 0.0 |  |  |  |  |  |  |  | 0.0 |  |  |  |  |  |  |  | 0.0 |  |  |  |  |  |  |  | 2.2 |  |  |  |  |  |  |  | 3.7 |  |  |  |  |
Combustion turbine |  |  | 8.4 |  |  |  |  |  |  |  | 6.8 |  |  |  |  |  |  |  | 14.6 |  |  |  |  |  |  |  | 0.9 |  |  |  |  |  |  |  | 0.8 |  |  |  |  |
Nox allowances |  |  | 0.1 |  |  |  |  |  |  |  | 0.1 |  |  |  |  |  |  |  | 0.3 |  |  |  |  |  |  |  | (10.2 | ) |  |  |  |  |  |  | 0.6 |  |  |  |  |
POWER GENERATED (Millions of kWhs) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Coal |  |  | 17,879 |  |  |  | 48.3 | % |  |  | 17,255 |  |  |  | 47.3 | % |  |  | 17,701 |  |  |  | 45.5 | % |  |  | 17,903 |  |  |  | 44.3 | % |  |  | 17,744 |  |  |  | 44.6 | %
Nuclear |  |  | 0 |  |  |  | 0.0 | % |  |  | 0 |  |  |  | 0.0 | % |  |  | 0 |  |  |  | 0.0 | % |  |  | 1,781 |  |  |  | 4.4 | % |  |  | 5,904 |  |  |  | 14.9 | %
Oil |  |  | 21 |  |  |  | 0.1 | % |  |  | 14 |  |  |  | 0.0 | % |  |  | 41 |  |  |  | 0.1 | % |  |  | 112 |  |  |  | 0.3 | % |  |  | 48 |  |  |  | 0.1 | %
Gas |  |  | 1,043 |  |  |  | 2.8 | % |  |  | 565 |  |  |  | 1.5 | % |  |  | 804 |  |  |  | 2.1 | % |  |  | 129 |  |  |  | 0.3 | % |  |  | 161 |  |  |  | 0.4 | %
Hydro |  |  | 365 |  |  |  | 1.0 | % |  |  | 466 |  |  |  | 1.3 | % |  |  | 454 |  |  |  | 1.2 | % |  |  | 416 |  |  |  | 1.0 | % |  |  | 485 |  |  |  | 1.2 | %
Net pumped storage (a) |  |  | (366 | ) |  |  | -1.0 | % |  |  | (303 | ) |  |  | -0.8 | % |  |  | (382 | ) |  |  | -1.0 | % |  |  | (478 | ) |  |  | -1.2 | % |  |  | (426 | ) |  |  | -1.1 | %
Total net generation |  |  | 18,942 |  |  |  | 51.2 | % |  |  | 17,997 |  |  |  | 49.4 | % |  |  | 18,618 |  |  |  | 47.8 | % |  |  | 19,863 |  |  |  | 49.2 | % |  |  | 23,916 |  |  |  | 60.2 | %
Purchased and interchange: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-utility generation |  |  | 12,003 |  |  |  | 32.4 | % |  |  | 11,538 |  |  |  | 31.6 | % |  |  | 13,643 |  |  |  | 35.1 | % |  |  | 12,502 |  |  |  | 31.0 | % |  |  | 8,594 |  |  |  | 21.6 | %
Net interchange power |  |  | 6,045 |  |  |  | 16.3 | % |  |  | 6,925 |  |  |  | 19.0 | % |  |  | 6,653 |  |  |  | 17.1 | % |  |  | 8,009 |  |  |  | 19.8 | % |  |  | 7,244 |  |  |  | 18.2 | %
Total net purchased and interchange power |  |  | 18,048 |  |  |  | 48.8 | % |  |  | 18,463 |  |  |  | 50.6 | % |  |  | 20,296 |  |  |  | 52.2 | % |  |  | 20,511 |  |  |  | 50.8 | % |  |  | 15,838 |  |  |  | 39.8 | %
Total net power supply |  |  | 36,990 |  |  |  | 100.0 | % |  |  | 36,460 |  |  |  | 100.0 | % |  |  | 38,914 |  |  |  | 100.0 | % |  |  | 40,374 |  |  |  | 100.0 | % |  |  | 39,754 |  |  |  | 100.0 | %
NET DEMONSTRATED CAPABILITY (MW) AT PEAK / POWER SOURCE (%) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Coal |  |  | 2,828 |  |  |  | 30.6 | % |  |  | 2,850 |  |  |  | 31.8 | % |  |  | 2,850 |  |  |  | 29.7 | % |  |  | 2,841 |  |  |  | 30.5 | % |  |  | 2,841 |  |  |  | 30.9 | %
Oil and gas |  |  | 1,814 |  |  |  | 19.6 | % |  |  | 1,814 |  |  |  | 20.3 | % |  |  | 1,997 |  |  |  | 29.7 | % |  |  | 1,459 |  |  |  | 15.7 | % |  |  | 1,459 |  |  |  | 15.8 | %
Nuclear |  |  | 0 |  |  |  | 0.0 | % |  |  | 0 |  |  |  | 0.0 | % |  |  | 0 |  |  |  | 0.0 | % |  |  | 0 |  |  |  | 0.0 | % |  |  | 778 |  |  |  | 0.0 | %
Combustion turbine |  |  | 517 |  |  |  | 5.6 | % |  |  | 661 |  |  |  | 7.4 | % |  |  | 661 |  |  |  | 6.9 | % |  |  | 345 |  |  |  | 3.7 | % |  |  | 345 |  |  |  | 3.7 | %
Hydro |  |  | 74 |  |  |  | 0.8 | % |  |  | 74 |  |  |  | 0.8 | % |  |  | 73 |  |  |  | 0.8 | % |  |  | 73 |  |  |  | 0.8 | % |  |  | 74 |  |  |  | 0.8 | %
Pumped storage |  |  | 955 |  |  |  | 10.3 | % |  |  | 955 |  |  |  | 10.7 | % |  |  | 955 |  |  |  | 10.0 | % |  |  | 955 |  |  |  | 10.3 | % |  |  | 955 |  |  |  | 10.4 | %
Total owned generation |  |  | 6,188 |  |  |  | 66.9 | % |  |  | 6,354 |  |  |  | 71.0 | % |  |  | 6,536 |  |  |  | 68.2 | % |  |  | 5,673 |  |  |  | 61.0 | % |  |  | 6,452 |  |  |  | 70.1 | %
Plus P&I power capability |  |  | 3,058 |  |  |  | 33.1 | % |  |  | 2,600 |  |  |  | 29.0 | % |  |  | 3,050 |  |  |  | 31.8 | % |  |  | 3,627 |  |  |  | 39.0 | % |  |  | 2,756 |  |  |  | 29.9 | %
Total owned and P&I |  |  | 9,246 |  |  |  | 100.0 | % |  |  | 8,954 |  |  |  | 100.0 | % |  |  | 9,586 |  |  |  | 100.0 | % |  |  | 9,300 |  |  |  | 100.0 | % |  |  | 9,208 |  |  |  | 100.0 | %
Peak load (MW) (b) |  |  | 8,190 |  |  |  |  |  |  |  | 7,421 |  |  |  |  |  |  |  | 7,488 |  |  |  |  |  |  |  | 8,183 |  |  |  |  |  |  |  | 8,657 |  |  |  |  |
Reserve capacity (%) |  |  | 11.0 |  |  |  |  |  |  |  | 17.0 |  |  |  |  |  |  |  | 22.0 |  |  |  |  |  |  |  | 12.0 |  |  |  |  |  |  |  | 6.0 |  |  |  |  |
Nameplate generating capacity (MW) at peak |  |  | 6,784 |  |  |  |  |  |  |  | 6,784 |  |  |  |  |  |  |  | 6,784 |  |  |  |  |  |  |  | 6,784 |  |  |  |  |  |  |  | 6,784 |  |  |  |  |
Load factor (b) |  |  | 55.3 |  |  |  |  |  |  |  | 55.9 |  |  |  |  |  |  |  | 59.2 |  |  |  |  |  |  |  | 56.3 |  |  |  |  |  |  |  | 52.4 |  |  |  |  |
Heat rate-average Btu of fuel per net kWh generated |  |  | 10,132 |  |  |  |  |  |  |  | 10,072 |  |  |  |  |  |  |  | 10,201 |  |  |  |  |  |  |  | 10,198 |  |  |  |  |  |  |  | 10,123 |  |  |  |  |

(a) | Consumers’ portion of the Ludington pumped storage facility.

(b) | Excluding Retail Open Access loads.

CMS Energy Investor Relations |  | One Energy Plaza, Jackson, MI 49201 Tel. 517-788-2590 |  | http://www.cmsenergy.com

36

|  | Consumers Gas Utility Financial & Operating Statistics

|  | 2010 |  |  | 2009 |  |  | 2008 |  |  | 2007 |  |  | 2006 |
GAS REVENUE AND COST OF GAS ($ Millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | $ | 1,677 |  |  | $ | 1,808 |  |  | $ | 1,971 |  |  | $ | 1,823 |  |  | $ | 1,646 |
Commercial |  |  | 449 |  |  |  | 511 |  |  |  | 598 |  |  |  | 552 |  |  |  | 498 |
Industrial |  |  | 88 |  |  |  | 101 |  |  |  | 124 |  |  |  | 113 |  |  |  | 111 |
Other |  |  | 3 |  |  |  | 3 |  |  |  | 5 |  |  |  | 6 |  |  |  | 4 |
Total sales revenue |  | $ | 2,217 |  |  | $ | 2,423 |  |  | $ | 2,698 |  |  | $ | 2,494 |  |  | $ | 2,259 |
Transportation fees |  |  | 53 |  |  |  | 48 |  |  |  | 45 |  |  |  | 44 |  |  |  | 40 |
Miscellaneous |  |  | 84 |  |  |  | 85 |  |  |  | 84 |  |  |  | 83 |  |  |  | 75 |
Total gas utility revenue |  | $ | 2,354 |  |  | $ | 2,556 |  |  | $ | 2,827 |  |  | $ | 2,621 |  |  | $ | 2,374 |
Cost of gas sold |  |  | 1,516 |  |  |  | 1,778 |  |  |  | 2,079 |  |  |  | 1,918 |  |  |  | 1,770 |
Gas utility revenue net of cost of gas |  | $ | 838 |  |  | $ | 778 |  |  | $ | 748 |  |  | $ | 703 |  |  | $ | 604 |
DEPRECIATION, DEPLETION AND AMORTIZATION |  | $ | 122 |  |  | $ | 118 |  |  | $ | 136 |  |  | $ | 127 |  |  | $ | 122 |
OPERATING INCOME |  | $ | 252 |  |  | $ | 201 |  |  | $ | 190 |  |  | $ | 170 |  |  | $ | 113 |
NET INCOME |  | $ | 127 |  |  | $ | 96 |  |  | $ | 89 |  |  | $ | 87 |  |  | $ | 37 |
SALES AND DELIVERIES (Bcf) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  |  | 152 |  |  |  | 163 |  |  |  | 171 |  |  |  | 167 |  |  |  | 154 |
Commercial |  |  | 47 |  |  |  | 52 |  |  |  | 57 |  |  |  | 55 |  |  |  | 50 |
Industrial |  |  | 10 |  |  |  | 11 |  |  |  | 12 |  |  |  | 12 |  |  |  | 12 |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total gas sales (1) |  |  | 209 |  |  |  | 226 |  |  |  | 240 |  |  |  | 234 |  |  |  | 216 |
Gas transportation deliveries |  |  | 108 |  |  |  | 93 |  |  |  | 98 |  |  |  | 107 |  |  |  | 92 |
Total gas sales and transportation deliveries |  |  | 317 |  |  |  | 319 |  |  |  | 338 |  |  |  | 341 |  |  |  | 308 |
GAS CUSTOMERS BILLED (at December 31) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  |  | 1,576,520 |  |  |  | 1,574,246 |  |  |  | 1,577,863 |  |  |  | 1,580,586 |  |  |  | 1,584,666 |
Commercial |  |  | 117,860 |  |  |  | 118,199 |  |  |  | 118,870 |  |  |  | 119,703 |  |  |  | 119,936 |
Industrial |  |  | 6,938 |  |  |  | 7,073 |  |  |  | 6,961 |  |  |  | 7,014 |  |  |  | 6,982 |
Transportation |  |  | 3,005 |  |  |  | 2,725 |  |  |  | 2,507 |  |  |  | 2,495 |  |  |  | 2,483 |
Total customers |  |  | 1,704,323 |  |  |  | 1,702,243 |  |  |  | 1,706,201 |  |  |  | 1,709,798 |  |  |  | 1,714,067 |
AVERAGE GAS REVENUE ($ per Mcf) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | $ | 11.03 |  |  | $ | 11.09 |  |  | $ | 11.53 |  |  | $ | 10.93 |  |  | $ | 10.70 |
Commercial |  |  | 9.59 |  |  |  | 9.83 |  |  |  | 10.49 |  |  |  | 10.09 |  |  |  | 9.87 |
Industrial |  |  | 9.17 |  |  |  | 9.18 |  |  |  | 10.33 |  |  |  | 9.62 |  |  |  | 9.45 |
Transportation (2) |  |  | 0.82 |  |  |  | 0.82 |  |  |  | 0.70 |  |  |  | 0.68 |  |  |  | 0.61 |
GAS SUPPLY (MMcf) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gas Cost Recovery |  |  | 170,575 |  |  |  | 206,866 |  |  |  | 208,296 |  |  |  | 216,843 |  |  |  | 207,223 |
Gas Customer Choice |  |  | 38,806 |  |  |  | 31,498 |  |  |  | 24,177 |  |  |  | 19,520 |  |  |  | 15,915 |
Total |  |  | 209,381 |  |  |  | 238,364 |  |  |  | 232,473 |  |  |  | 236,363 |  |  |  | 223,138 |
AVERAGE COST OF GAS SOLD ($ per Mcf) (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gas Cost Recovery |  | $ | 6.73 |  |  | $ | 7.66 |  |  | $ | 8.36 |  |  | $ | 7.91 |  |  | $ | 8.03 |
Gas Customer Choice |  |  | 7.27 |  |  |  | 7.98 |  |  |  | 9.99 |  |  |  | 9.79 |  |  |  | 8.94 |
AUTHORIZED RETURN ON EQUITY |  |  | 10.55 | % |  |  | 10.55 | % |  |  | 10.55 | % |  |  | 10.75 | % |  |  | 11.0 | %
RATE BASE (at December 31) ($ Millions) |  | $ | 2,867 |  |  | $ | 2,778 |  |  | $ | 2,638 |  |  | $ | 2,444 |  |  | $ | 2,446 |
EARNED RETURN ON EQUITY-FINANCIAL |  |  | 10.9 | % |  |  | 9.9 | % 4 |  |  | 9.2 | % |  |  | 9.2 | % |  |  | 4.4 | %
HEATING DEGREE DAYS (5) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Normal degree days in calendar year |  |  | 7,098 |  |  |  | 7,098 |  |  |  | 7,098 |  |  |  | 7,098 |  |  |  | 7,098 |
Actual degree days |  |  | 6,314 |  |  |  | 6,815 |  |  |  | 6,917 |  |  |  | 6,561 |  |  |  | 6,119 |
Percent colder (warmer) than normal |  |  | 4.0 |  |  |  | (1.6 | ) |  |  | (2.6 | ) |  |  | (7.6 | ) |  |  | (13.8 | )
Increase (decrease) from normal in: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gas deliveries (Bcf) |  |  | (6.4 | ) |  |  | 4.8 |  |  |  | 4.1 |  |  |  | (6.3 | ) |  |  | (30.2 | )

(1) | Includes Gas Customer Choice sales.

(2) | Average gas revenue for transportation excludes amounts related to MCV and off-system transportation.

(3) | Includes pipeline transportation charges.

(4) | Rate is reflective of exceptionally warm weather

(5) | 2009 Weather updated to align with 2010 methodology

CMS Energy Investor Relations |  | One Energy Plaza, Jackson, MI 49201 Tel. 517-788-2590 |  | http://www.cmsenergy.com

37

|  | Independent Power Production Asset List

No. Project Name |  | Gross Capacity MW |  |  | CMS MW |  |  | Primary Fuel Type |  | Location |  | In-Service Date |  | Capacity Under Long- Term Contract
Projects in Operation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (%)
*1 Craven |  |  | 50 |  |  |  | 25 |  |  | Biomass |  | N. Carolina |  | 1990 |  | 100
*2 Dearborn Industrial Generation |  |  | 710 |  |  |  | 710 |  |  | Natural Gas |  | Michigan |  | 2001 |  | 37
3 Filer City |  |  | 73 |  |  |  | 36 |  |  | Coal |  | Michigan |  | 1990 |  | 100
*4 Genesee |  |  | 40 |  |  |  | 20 |  |  | Biomass |  | Michigan |  | 1996 |  | 100
*5 Grayling |  |  | 38 |  |  |  | 19 |  |  | Biomass |  | Michigan |  | 1992 |  | 100
*6 Michigan Power |  |  | 224 |  |  |  | 224 |  |  | Natural Gas |  | Michigan |  | 1999 |  | 49
Projects in Operation |  |  | 1,135 |  |  |  | 1,034 |  |  |  |  |  |  |  |  |

* | Operated by CMS Energy

As of May 2011

CMS Energy Investor Relations |  | One Energy Plaza, Jackson, MI 49201 Tel. 517-788-2590 |  | http://www.cmsenergy.com

38

GAAP Reconciliation

CMS Energy

Reconciliation of Gross Operating Cash Flow to GAAP Operating Activities

(unaudited)

(mils)

|  | 2009 |  |  | 2010 |  |  | 2011 |  |  | 2012 |  |  | 2013 |  |  | 2014 |  |  | 2015 |
Consumers Operating Income + Depreciation & Amortization |  | $ | 1,248 |  |  | $ | 1,498 |  |  | $ | 1,530 |  |  | $ | 1,601 |  |  | $ | 1,657 |  |  | $ | 1,757 |  |  | $ | 1,872 |
Enterprises Project Cash Flows |  |  | 16 |  |  |  | 39 |  |  |  | 25 |  |  |  | 35 |  |  |  | 47 |  |  |  | 47 |  |  |  | 46 |
Gross Operating Cash Flow |  | $ | 1,264 |  |  | $ | 1,537 |  |  | $ | 1,555 |  |  | $ | 1,636 |  |  | $ | 1,704 |  |  | $ | 1,804 |  |  | $ | 1,918 |
Other operating activities including taxes, interest payments and working capital |  |  | (416 | ) |  |  | (578 | ) |  |  | (310 | ) |  |  | (406 | ) |  |  | (472 | ) |  |  | (439 | ) |  |  | (835 | )
Net cash provided by operating activities |  | $ | 848 |  |  | $ | 959 |  |  | $ | 1,170 |  |  | $ | 1,230 |  |  | $ | 1,232 |  |  | $ | 1,365 |  |  | $ | 1,083 |

2009-15 OCF

CMS ENERGY CORPORATION

Earnings Per Share By Year GAAP Reconciliation

(Unaudited)

|  | 2003 |  |  | 2004 |  |  | 2005 |  |  | 2006 |  |  | 2007 |  |  | 2008 |  |  | 2009 |  |  | 2010 |
Reported earnings (loss) per share - GAAP |  | ($ | 0.30 | ) |  | $ | 0.64 |  |  | ($ | 0.44 | ) |  | ($ | 0.41 | ) |  | ($ | 1.02 | ) |  | $ | 1.20 |  |  | $ | 0.91 |  |  | $ | 1.28 |
After-tax items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Electric and gas utility |  |  | 0.21 |  |  |  | (0.39 | ) |  |  | — |  |  |  | — |  |  |  | (0.07 | ) |  |  | 0.05 |  |  |  | 0.33 |  |  |  | 0.03 |
Enterprises |  |  | 0.74 |  |  |  | 0.62 |  |  |  | 0.04 |  |  |  | (0.02 | ) |  |  | 1.25 |  |  |  | (0.02 | ) |  |  | 0.09 |  |  |  | (0.03 | )
Corporate interest and other |  |  | 0.16 |  |  |  | (0.03 | ) |  |  | 0.04 |  |  |  | 0.27 |  |  |  | (0.32 | ) |  |  | (0.02 | ) |  |  | 0.01 |  |  |  | * |
Discontinued operations (income) loss |  |  | (0.16 | ) |  |  | 0.02 |  |  |  | (0.07 | ) |  |  | (0.03 | ) |  |  | 0.40 |  |  |  | (* | ) |  |  | (0.08 | ) |  |  | 0.08 |
Asset impairment charges, net |  |  | — |  |  |  | — |  |  |  | 1.82 |  |  |  | 0.76 |  |  |  | 0.60 |  |  |  | — |  |  |  | — |  |  |  | — |
Cumulative accounting changes |  |  | 0.16 |  |  |  | 0.01 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Adjusted earnings per share, including MTM - non-GAAP |  | $ | 0.81 |  |  | $ | 0.87 |  |  | $ | 1.39 |  |  | $ | 0.57 |  |  | $ | 0.84 |  |  | $ | 1.21 | (a) |  | $ | 1.26 |  |  | $ | 1.36 |
Mark-to-market impacts |  |  |  |  |  |  | 0.03 |  |  |  | (0.43 | ) |  |  | 0.51 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted earnings per share, excluding MTM - non-GAAP |  |  | NA |  |  | $ | 0.90 |  |  | $ | 0.96 |  |  | $ | 1.08 |  |  |  | NA |  |  |  | NA |  |  |  | NA |  |  |  | NA |

* | Less than $500 thousand or $0.01 per share.

(a) | $1.25 excluding discontinued Exeter operations and accounting changes related to convertible debt and restricted stock.

2003-10 EPS