EX-99.1 2 d387960dex991.htm CMS ENERGY HANDOUT DATED JULY 31, 2012

Investor Meetings

July 31, 2012

Zeeland 2007

Foote Hydro 1918

Lake Winds 2012

Foote Hydro 1918 Lake Winds 2012

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.

CMS Energy provides financial results on both a reported (Generally Accepted Accounting Principles) and adjusted (non-GAAP) basis. Management views adjusted earnings as a key measure of the company’s present operating financial performance, unaffected by discontinued operations, asset sales, impairments, regulatory items from prior years, or other items. Certain of these items have the potential to impact, favorably or unfavorably, the company’s reported earnings in 2012. The company is not able to estimate the impact of these matters and is not providing reported earnings guidance.

2 |

Business Model Strong (5% to 7% growth) . . . .

Financial

– Use NOLs to Eliminate Need for “Block” Equity

– Grow Operating Cash Flow and EPS 5% - 7%

Consistent financial performance

Fair and timely regulation

Utility Customer investment value

Safe, excellent operations

Business

– Invest in Utility

• Create Jobs

• Enhance Customer Value

• Improve Environment

• Reduce O&M

– Base Rate

Increases Inflation

. . . . and sustainable with moderate rate increases inflation.

3 |

EPS a and Dividend Growth . . . .

EPS

$1.55

$1.52 7%

5%

$1.45

$1.36

$1.26

$1.21 b

$1.08

$0.96

$0.90

$0.84

$0.81

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 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

Dividend

14% 96¢

84¢

27%

32% 66¢

39% 50¢

36¢

80%

20¢

0

2006 2007 2008 2009 2010 2011 2012

Payout 0% 25% 30% 40% 49% 58% 62%

. . . . provide strong TSR.

4 |

Operating Cash Flow Growth

Amount

(bils)

$ 2.5

Gross operating cash flowa

up $0.1 billion per year $2.1

$2.0

2.0 $1.9

$1.8

$1.7

$1.5 $1.6

1.5 Interest

Working capital and taxes

1.0

Base Investment

0.5

Investment choices

0

Cash flow before dividend

(0.5)

2010 2011 2012 2013 2014 2015 2016

NOLs & Credits $0.8 $0.8 $0.7 $0.5 $0.3 $0.2 $0.1

–––––

a Non-GAAP

5 |

Total Shareowner Return . . . .

Investment Considerations

• Predictable and visible earnings growth

• Affordable, sustainable rates

– Customer focus

– Needed investment

– Regulatory support

• Strong risk mitigation

TSR up 9% to 11%

Dividend Yield

EPS Growth

. . . . up 9% to 11%.

6 |

Capital Investment . . . .

Rate Base

Bils

$ 15

14

13

12 5%-7%

11

10

9

8 | Reliability/Deliverability

Renewables

7 | Smart Grid

Environmental

6 | Base capital

Depreciation

5 |

2011 2012 2013 2014 2015 2016

Average

Rate

Base (bils) $10.9 $11.5 $12.3 $13.2 $14.0

Utility Investment

2012-16

(bils)

Base capital $3.1

Investment Choices

Reliability/deliverability $1.2

Renewables 0.5

Smart Grid 0.3

Environmental 1.5

Total Choices $3.5

Total Capital 2012-16 $6.6

....grows rate base.

7 |

$1.5 Billion Environmental Investment . . . .

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 – stayed

– Already achieving compliance

• Mercury and Air Toxics Standard (MATS)

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

– Retirement or mothballing of smaller coal plants – 950 MW

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

8 |

Renewable Energy Investment Plans . . . .

• Michigan energy law requires:

– 10% renewables by 2015

– Purchase 50% and build 50%

– 20-year levelized surcharge

• Renewable energy surcharge reduced by $57 million annually

• Plan to invest about $0.5 billion over next five years

• $235 million, Lake Winds Energy Park under construction

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

9

Balanced Generation – Capacity Fuel Mix

Present

Renewables

4%

Pumped Storage

11%

Coal

Oil 35%

8%

Nuclear

9% Zeeland

(10%)

Gas

33%

2016

Renewables

9%

Coal

Pumped Storage 23%

11%

Purchases

12%

Zeeland

Oil (9%) Gas

7% Nuclear 30%

8%

10

Capacity Position

MW 9,500

8,500 7,500 6,500 5,500 0

Installed Capacity Excl Classic 7 Classic 7

Peak Demand with 11% Reserve Margin Peak Demand with 18% Reserve Margin

Up to 1,500 MW Shortfall

2012 2013 2014 2015 2016 2017

11

Capital Investment “Self Limited” . . . .

2012 – 2016 Plan

Opportunity Level

$6.6 Billion

• Faster smart grid

• Pipe replacements

• Pole replacements

• New gas generation

$10 Billion

Customer rates <2%

>4%

. . . . holdsolds down customer base rate increases.

12

Customer Rate Competitiveness . . . .

Rate Competiveness

Electric Gas

3%

Inflation

1% <1%

Base & Surcharges (2)%

Fuel

2013-2017 2013-2017

Rate Reduction Actions

• Renewable surcharge down 85%

• Headcount – down 7%

• Health care sharing at 70/30

• Labor agreements

• Productivity up 35%

• Western coal at 97%

• O&M cost down 4% in

2012

. . . . important to the Company.

13

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

Rate Case Timeline

2008 2009 2010 2011 2012

ELECTRIC

Filed Filed Filed

$214 M $178 M $195 M

Increase Increase Increase

Self- Final Self- Final Self- Final

implement Order implement Order implement Order

$179 M $139 M $150 M $146 M $118 M $118 M

New

Energy 78% 97% 100%

Law

GAS Filed Filed Filed

$114 M 74% $55 M $49 M 70%

Increase Increase Increase

Final

implement Self- Order Final Order Self- Final

$89 M $66 M Settled implement Order

$31 M $23 M Settled

$16 M

2008 2009 2010 2011 2012

Frequent and streamlined rate case strategy continues.

15

Electric Rate Case Final Order U-16794 . . . .

Amount

(mils)

Self implemented – December 8 $118 a

10.3% vs 10.7% ROE (20)

Lower environmental & other (6)

Clean coal plant recovery (2/3) 6

Higher depreciation 20

Final Order – June 7 $118

Rate base (bils) $7.4

Equity ratio – financial 51.38%

– regulatory 42.07

a Limited to 60% of $195 mil request

Highlights

• Approved Smart Grid deployment

• Lowered O&M $38 million

• Capital investment 111% of increase

• Adopted Company’s sales forecast –reset ROA sales at 10%

. . . . keepseeps Plan on track.

16

Michigan Legislative Proposals . . . .

Seven Ballot Proposals

• Require a 25% renewable portfolio standard by 2025

• Repeal state emergency financial manager

• Allow construction of eight new casinos

• Enshrine collective bargaining in constitution

• Allow home health care workers to unionize

• Stop the new international bridge

• Require a two-thirds vote to raise taxes

Retail Open Access Cap

• House Bill 5503, by Rep. Mike Shirkey: Estimated 38% cap by 2016

• House Bill 5733, by Rep. Ken Horn: Returns to full regulation

The bills will “sit side by side on a shelf.”

Representative Ken Horn, Chairman of the House Energy & Technology Committee

. . . . are costly to customers.

17

Second Quarter Summary

• Second Quarter adjusted EPS (non-GAAP) 40¢; up 14¢ from 2011

• Reaffirm full year adjusted EPS (non-GAAP) guidance of $1.52—$1.55

• MPSC approved electric and gas rate cases

• Operations – systems performed well in heat

• June daily peak load record of 8,672 MW

– All-time peak load record of 9,110 MW, July 17; up 2% from previous record

• Michigan economy

18

2012 Second Quarter EPS

Results By Business Segment

2012 2011

Adjusted

Reported - - (GAAP) 37¢ 38 ¢ (non-GAAP)

EPS

Less:

Restructuring 3¢-¢ Utility 47¢

Discontinued ops & other-(12) Enterprises -

Subtotal 3¢ (12)¢ Interest & other (7)

Adjusted (non-GAAP) 40¢ 26 ¢ Company 40¢

14¢

Weather adjusted 37¢

First Call Estimate 38¢

Year-to-date 77¢ 77¢

. . . . benefited from strong performance and warm weather.

19

Second Quarter EPS (non-GAAP) . . . .

Utility Enterprises + Parent

14¢ 0¢

7¢ | 40¢

4¢ |

3¢ |

26¢

Sales

2011 Weather & Sales Cost & Other Rate Changes & Cost & Other 2012

Decoupling

. . . . performance solid.

20

CMS Manages its Work

Adjusted EPS +13¢

• Increased tree trimming 2¢

• Generating plant maintenance 3

• System hardening 3+

Total reinvestment 8¢+

Customer

Hot Reinvestment

Summer

$1.52- $1.52-

$1.55 Warm $1.55

Recovery

Winter

• Lower financing & benefit costs 4¢

• Lower overhead 4

• Efficiencies & other 5

Total recovery 13¢

-13¢

March 31 July 23

. . . . to maximize results for customers and investors.

21

Response to Weather Extremes

2012 EPS Weather Impact First Quarter

13¢ • Recovery actions EPS

Normal 10¢ –Lower financing & benefit costs 4¢

Weather –Lower overhead 4

3¢ | –Efficiencies & other 5¢

Total recovery 13¢

Rest of Year

• System improvements EPS

–Tree trimming 2¢

-13¢ –Generating plant maintenance 3

First Second July 1-23 –System hardening 3+

Quarter Quarter Total reinvestment 8¢+

focus on delivering for customers and owners.

22

2012 Adjusted EPS (non-GAAP)

First Half Second Half

0¢ 10¢

$1.55

to

19¢ $1.52

$1.45 Sales 13¢

(8)¢ | (1)¢

Weather 1¢

(14)¢ |

YTD YTD

July 2012 weather 10¢

$0.77 Sales growth 5

2011 weather & other 4

Total 19¢ 0.77

2011 Weather & Sales Cost & Other Rate Changes & Weather & Sales Reliability & Rates & Cost 2012

Decoupling Reinvestment

strong with reinvestment opportunities.

23

Michigan’s Economy Recovering . . . .

Unemployment Improvements

16%

Michigan 14%

14

U.S.

12

10%

10

8 |

8%

6 |

4 |

2 |

0

2006 2007 2008 2009 2010 2011 2012

Source: Bureau of Labor Statistics

U.S. Auto Sales

In Millions

17.4

14.2

13.0

11.8

10.6

2005 2009 2010 2011 2012F

Source: Wardsauto; J.D. Power and LMC Automotive

. . . . quicker than anticipated.

24

Sales Recovery . . . .

Electric Sales a

GWh Up 5%

40,000 2010 to 2012

6% decline

35,000 2007 to 2009

30,000

25,000 Up 9%

1983 & 1984

7% decline

20,000 1979 to 1982

15,0000

1975 1979 1983 1987 1991 1995 1999 2003 2007 2012

a Weather adjusted

Electric Salesa vs Prior Years

+8%

Before EO

+3%

+2.1% 2.4% 2.4%

+2%

+1.7%

+1.3%

+5%

-0.7% First

Half

2012

-2.0% Resid +0.6%

Comm +1.1

-3.0% Indust +7.5

Total +3.0

-6%

2006 2007 2008 2009 2010 2011 2012

. . . . adds rate “headroom”.

25

Liquidity (as of 6/30/12) . . . .

Availability

$1.6 Billion

CMS Energy

5-year revolver - 2016 $523 mils

32%

Market Cap a

Consumers Energy

5-year revolver - 2016 497

5-year revolver - 2017 150

A/R Facility - 2012 250

Cash 187

a As of 3/31/12, comparing 18% for peers

Parent Debt Strategy

Thicker liquidity than peers Pre-funding Robust backup plan

. . . . strong and conservative.

26

2012 Cash Flow Forecast (non-GAAP)

CMS Energy Parent

Amount

(mils)

Cash at year end 2011 $ 56

Sources

Consumers Energy dividend and tax sharing $ 445

Enterprises 15

Sources $ 460

Uses

Interest and preferred dividend $ (125)

Overhead and Federal tax payments (15)

Equity infusion (150)

Pension contribution 0

Uses a $ (340)

Cash flow $ 120

Financing and Dividend

New issues (complete) $ 480

Retirements (404)

Equity programs (DRP, continuous equity) 30

Net short-term financing & other (2)

Common dividend (250)

Financing $ (146)

Cash at year end 2012 $ 30

Bank Facility ($550) available $ 547

a Includes other

Consumers Energy

Amount

(mils)

Cash at year end 2011 $ 85

Sources

Operating (depreciation & amortization $595) $ 1,640

Other working capital (55)

Sources $ 1,585

Uses

Interest and preferred dividend $ (225)

Capital expenditures b (1,425)

Dividend and tax sharing $(45) from CMS (445)

Pension contribution 0

Uses $ (2,095)

Cash flow $ (510)

Financing

Equity $ 150

New issues 1,075

Retirements (1,025)

Net short-term financing & other 250

Financing $ 450

Cash at year end 2012 $ 25

Bank Facility ($650) available $ 629

AR Facility ($250) available $ -

b Includes cost of removal and capital leases 27

2012 Sensitivities

Annual Impact

Sensitivity EPS OCF

(mils)

Sales a

•Electric (38,154 Gwh) + 1% + $0.05 + $20

•Gas (283 Bcf) + 1 + 0.01 + 5

Gas prices (NYMEX) + 1.00 * –+15

Uncollectible accounts (mils) + 5 –+ 0.01 *

ROE (authorized)

•Electric (10.3%) + 20 bps + 0.02 + 10

•Gas (10.3%) + 20 + 0.01 + 4

onn strong performance.

* | Less than 0.5¢ or $500,000

a Reflect 2012 sales forecast; weather adjusted

28

2012 Financial Targets

2012

Target

Adjusted EPS a $1.52 - $1.55

Gross operating cash flow (bils) a 1.7

Capital structure (year-end)

– FFO/Average debt 18%

– Parent debt b (bils) 2.3

– Utility equity ratio c 50%

a Non-GAAP

b Net of cash

c Financial, excluding securitization and Palisades financing obligation

Status

. . . . on Plan; tenth year of track record.

29

APPENDIX

Days Per Year with Temperatures at 90 or Warmer

At NWS Grand Rapids Weather Station

40

Annual Count 37 2012 Dates

May 20: 90 July 5: 101

Rolling 30 Year Average May 28: 91 July 6: 104

35 June 10: 91 July 7: 99

June 15: 90 July 12: 90

June 16: 92 July 13: 94

June 18: 92 July 14: 94

30 June 19: 93 July 15: 91

June 20: 93 July 16: 97

June 27: 90 July 17: 99 26

June 28: 97 July 18: 91

25 July 1: 91 July 22: 91

July 2: 96 July 23: 94

Days 21 July 3: 96 21

of 20 19 19 July 4: 99

t

17

Coun 15 15

15 14 14 10.1 14

12 12 Avg

11 11 11

10 9 9

8 | 8 8

7 | 7

6 | 6 6

5 | 5 5 5 5 5

5 | 4 4 4 3 3

2 | 2 2

1 | 1

0

1970 1971 1972 1973 1974 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 2010 2011 2012

31

Peak Load Comparison

• New All-Time Peak

– 9,110 MW on July 17, 2012 (unofficial)

– 8,930 MW on July 21, 2011

– 8,883 MW on August 1, 2006

System Peak Load, 20 Year History

10,000

9,500

9,000

8,500

8,000

7,500

7,000

6,500

6,000

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

6,226

6,502

7,167

7,285

7,398

7,643

7,705

8,190

7,158

7,315

7,549

8,347

8,171

8,474

8,883

8,391

7,741

8,930

7,984

9,110

200 MW increase over average of 2006/2011 peaks.

32

System Performance Comparison

System Peak Load and Customer Interruptions

Customer Interrupted Non-Storm

Customer Interrupted

Peak Load (MW)

Peak Load (MW)

9,500 9,400 9,300 9,200 9,100 9,000 8,900 8,800 8,700 8,600 8,500 8,400 8,300

25,000

8,883

8,930

12,000

9,110

9,300

30,000 25,000 20,000 15,000 10,000 5,000 0

2006 2011 2012

Year

Higher load, fewer customers out. Reaping the benefits of system investment.

33

Company Workforce

Headcount

8,039 7%

7,822

7,727

7,500

2009 2010 2011 2012E

reducededuced 3% in 2012; 7% since 2009.

34

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 101 79 136 78 130 524

New customers 31 31 35 40 39 176

Other 93 84 70 73 75 $ 395

Base capital $ 423 $ 382 $ 437 $ 382 $ 437 $ 2,061

Gas

Distribution $ 130 $ 144 $ 145 $ 145 $ 145 $ 709

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

Other 56 52 47 39 40 234

Base capital $ 215 $ 214 $ 212 $ 205 $ 207 $ 1,053

Total base capital $ 638 $ 596 $ 649 $ 587 $ 644 $ 3,114

Investment choices:

Environmental $ 268 $ 349 $ 320 $ 356 $ 260 $ 1,553

Reliability 250 236 249 209 212 1,156

Renewables 186 24 112 228 8 558

Smart Grid 61 51 53 54 47 266

Total choices $ 765 $ 660 $ 734 $ 847 $ 527 $ 3,533

Total Utility $ 1,403 $ 1,256 $ 1,383 $ 1,434 $ 1,171 $ 6,647

35

Federal Tax Benefits

Net NOLs and Credits

$0.8

$0.7

$0.5

$0.3

$0.2

$0.1

2011 2012 2013 2014 2015 2016

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

“Block” Equity 0 0 0 0 0 0

No need for equity (dilution) through 2016.

36

Credit Ratings

S&P/Fitch Scale Moody’s S&P Fitch Moody’s

Consumers

A- A3 Secured

BBB+ Baa1 Target

BBB Baa2

BBB- Baa3

BB+ Ba1

CMS

BB+ Ba1 Unsecured

BB Ba2 Target

BB- Ba3

B+ B1

B B2

B- B3

Outlook Positive Stable Positive

Present

2002

reflect growing confidence in Company’s performance and plans.

37

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

AS OF 06/30/12

Reflects early redemption 06/08/12 of $375MM FMBs maturing 04/15/13 & additional borrowing ($10MM) against Barclay Revolver (CMS)

Maturity Amount

F/V S/U or Call Date (000’s) DEBT/ CO

SHORT-TERM DEBT:

F U SHORT-TERM $ 172,500 5.5% Convertible Sr Notes (Next Put Date 06/15/14) (CMS)

V U 07/16/12 150,000 Floating Rate Sr Notes (CMS) Early Redempt Dt

$ 322,500

LONG-TERM DEBT:

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

V S 03/31/16 $ 25,000 Barclay Revolver (CMS)

F S 08/15/16 350,000 5.5% Series M FMBs (CECo)

V U 12/15/16 30,000 $180MM Term Loan (CMS)

$ 405,000

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 U 03/15/22 300,000 5.05% Sr Notes (CMS)

F S 05/15/22 375,000 2.85% FMBs (CECo)

F S 09/01/22 250,000 5.30% FMBs (CECo)

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)

$ 4,432,700

$ 6,260,200 SUBTOTAL

Various Maturity Dates/No Maturity Date Available:

$ 152,322 CECo Securitization Bonds after 04/20/12 payment

178,731 CECo Capital lease rental commitments as of 06/30/12

458,218 EnerBank Discount Brokered CDs as of 06/30/12 (CMS)

(15,034) CMS Net unamortized discount as of 06/30/12

(2,931) CECo Net unamortized discount as of 06/30/12

$ 7,031,507 TOTAL

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

38

Consumers Electric Utility

Financial & Operating Statistics

Years Ended December 31 2011 2010 2009 2008 2007

ELECTRIC REVENUE AND POWER COSTS ($ Millions)

Residential $1,678 $1,614 $1,387 $1,414 $1,326

Commercial 1,197 1,166 1,099 1,129 1,111

Industrial 784 749 677 810 775

Other 39 40 36 32 30

Total revenue from customers $3,698 $3,569 $3,199 $3,385 $3,242

Wholesale 21 20 19 22 23

Intersystem 43 99 94 113 92

Retail open access/direct access 91 54 31 15 15

Miscellaneous 60 60 64 59 71

Total electric utility revenue $3,913 $3,802 $3,407 $3,594 $3,443

Fuel for electric generation $559 $520 $460 $483 $385

Purchased and interchange pow er 1,348 1,308 1,232 1,388 1,449

DEPRECIATION AND AMORTIZATION $412 $450 $441 $438 $397

OPERATING INCOME $712 $672 $488 $576 $413

NET INCOME $333 $303 $194 $271 $196

DELIVERIES (Million kWhs)

System sales

Residential 12,931 12,968 12,386 12,854 13,206

Commercial 10,903 11,026 11,211 11,969 12,384

Industrial 9,544 9,061 9,290 10,563 11,153

Other 224 235 230 225 231

Total sales to ultimate customers 33,602 33,290 33,117 35,611 36,974

Wholesale 332 325 328 333 496

Retail open access/direct access 3,901 4,079 2,326 1,541 1,364

Intersystem 1,349 1,394 1,277 1,176 1,329

Total electric system deliveries 39,184 39,088 37,048 38,661 40,163

AVERAGE ELECTRIC REVENUE (¢ per kWh)

Residential 12.98 12.45 11.20 11.00 10.04

Commerical 10.98 10.58 9.80 9.43 8.98

Industrial 8.21 8.27 7.29 7.67 6.95

Other 17.41 17.02 15.65 14.22 12.99

Total 11.01 10.72 9.66 9.51 8.77

ELECTRIC CUSTOMERS BILLED (At December 31)

Residential 1,571,319 1,569,183 1,566,980 1,584,752 1,575,386

Commercial 207,490 210,380 210,223 208,931 211,365

Industrial 8,691 8,881 8,770 8,505 8,619

Retail Open Access/Direct Access 1,078 1,095 861 642 642

Other 1,300 1,287 1,282 2,045 2,025

Total 1,789,878 1,790,826 1,788,116 1,804,875 1,798,037

AUTHORIZED RETURN ON EQUITY 10.70% 10.70% 10.70% 10.70% 11.15%

EARNED RETURN ON EQUITY-FINANCIAL 11.00% 10.60% 6.40%1 9.40% 7.50%

RATE BASE ($ Millions) $7,442 $6,815 $6,459 $6,175 $5,407

COOLING DEGREE DAYS 2

Normal degree days in calendar year 584 571 578 579 545

Actual degree days 767 884 379 542 773

Warmer (colder) than normal (%) 31 55 (34) (6) 42

Increase (decrease) from normal in:

Electric deliveries (millions of kWh) 513 855 (461) 146 736

1 | 9.1% excluding Big Rock Decommissioning refund

2 | CDD base 65 degrees, Lansing w eather station, normal equals average of preceding 15 year time period

CMS Energy Investor Relations One Energy Plaza Jackson, MI 49201 517-788-2590 www.cmsenergy.com

39

Consumers Electric Utility

Financial & Operating Statistics

Years Ended December 31 2011 2010 2009 2008 2007

FUEL COST ($ per MMBtu)

Coal 2.94 2.51 2.37 2.01 2.04

Oil 18.55 10.98 9.59 11.54 8.21

Gas 4.95 5.57 6.57 10.94 10.29

Nuclear 0.00 0.00 0.00 0.00 0.42

Weighted average for all fuels 3.18 2.71 2.56 2.47 2.07

FUEL COST FOR GENERATION (%)

Coal 83.5 88.2 90.6 81.0 97.9

Oil 2.1 3.3 2.5 4.1 9.1

Gas 14.3 8.4 6.8 14.6 0.9

Nuclear 0.0 0.0 0.0 0.0 2.2

Nox allow ances 0.1 0.1 0.1 0.3 (10.1)

POWER GENERATED (Millions of kWhs)

Coal 15,468 17,879 17,255 17,701 17,903

Oil 7 21 14 41 112

Gas 1,912 1,043 565 804 129

Nuclear 0 0 0 0 1,781

Renew able energy (hydro) 425 365 466 454 416

Net pumped storage 1 (365) (366) (303) (382) (478)

Total net generation 17,447 18,942 17,997 18,618 19,863

Purchased and interchange:

Non-utility generation 12,674 12,003 11,538 13,643 12,502

Net interchange pow er 6,825 6,045 6,925 6,653 8,009

Total net purchased and interchange pow er 19,499 18,048 18,463 20,296 20,511

Total net pow er supply 36,946 36,990 36,460 38,914 40,374

POWER GENERATED (%)

Total net generation 47.2 51.2 49.4 47.8 49.2

Non-utility generation 34.3 32.4 31.6 35.1 31.0

Net interchange pow er 18.5 16.3 19.0 17.1 19.8

Total net purchased and interchange pow er 52.8 48.8 50.6 52.2 50.8

Total net pow er supply 100.0 100.0 100.0 100.0 100.0

NET DEMONSTRATED CAPABILITY AT PEAK (M W)

Coal 2,823 2,828 2,850 2,850 2,841

Oil and gas 1,810 1,814 1,814 1,997 1,459

Combustion turbine 465 517 661 661 345

Nuclear 0 0 0 0 0

Renew able energy (hydro) 77 74 74 73 73

Pumped storage 955 955 955 955 955

Total ow ned generation 6,130 6,188 6,354 6,536 5,673

P&I pow er capability 2,458 3,058 2,600 3,050 3,627

Total ow ned and P&I 8,588 9,246 8,954 9,586 9,300

NET DEMONSTRATED CAPABILITY AT PEAK (%)

Total ow ned generation 71.4 66.9 71.0 68.2 61.0

P&I pow er capability 28.6 33.1 29.0 31.8 39.0

Total ow ned and P&I 100.0 100.0 100.0 100.0 100.0

Peak load (MW) 2 8,930 8,190 7,756 7,705 8,391

Reserve capacity (%) 4 11 17 22 12

Nameplate generating capacity (MW) at peak 6,784 6,784 6,784 6,784 6,784

Load factor (%) 3 50.8 55.3 55.9 59.2 56.3

Heat rate-average Btu of fuel per net kWh generated 10,214 10,132 10,072 10,201 10,198

1 | Consumers’ portion of the Ludington pumped storage facility

2 | Includes Retail Open Access customers

3 | Includes bundled service customers

CMS Energy Investor Relations One Energy Plaza Jackson, MI 49201 517-788-2590 www.cmsenergy.com

40

Consumers Gas Utility

Financial & Operating Statistics

Years Ended December 31 2011 2010 2009 2008 2007

GAS REVENUE AND COST OF GAS ($ Millions)

Residential $1,655 $1,677 $1,808 $1,971 $1,823

Commercial 438 449 511 598 552

Industrial 89 88 101 124 113

Other 3 3 3 5 6

Total sales revenue $2,185 $2,217 $2,423 $2,698 $2,494

Transportation fees 60 53 48 45 44

Miscellaneous 95 84 85 84 83

Total gas utility revenue $2,340 $2,354 $2,556 $2,827 $2,621

Cost of gas sold 1,438 1,516 1,778 2,079 1,918

Gas utility revenue net of cost of gas $902 $838 $778 $748 $703

DEPRECIATION, DEPLETION AND AMORTIZATION $130 $122 $118 $136 $127

OPERATING INCOME $272 $252 $201 $190 $170

NET INCOME $130 $127 $96 $89 $87

SALES AND DELIVERIES (Bcf)

Residential 157 152 163 171 167

Commercial 50 47 52 57 55

Industrial 11 10 11 12 12

Other ———-

Total gas sales 1 218 209 226 240 234

Gas transportation deliveries 119 108 93 98 107

Total gas sales and transportation deliveries 337 317 319 338 341

GAS CUSTOMERS BILLED (at December 31)

Residential 1,579,835 1,576,520 1,574,246 1,577,863 1,580,586

Commercial 118,215 117,860 118,199 118,870 119,703

Industrial 6,721 6,938 7,073 6,961 7,014

Transportation 3,179 3,005 2,725 2,507 2,495

Total customers 1,707,950 1,704,323 1,702,243 1,706,201 1,709,798

AVERAGE GAS REVENUE ($ per Mcf)

Residential $10.54 $11.03 $11.09 $11.53 $10.93

Commercial 8.76 9.59 9.83 10.49 10.09

Industrial 8.09 9.17 9.18 10.33 9.62

Transportation 2 0.82 0.82 0.82 0.70 0.68

GAS SUPPLY (MMcf)

Gas Cost Recovery 188,177 170,575 206,866 208,296 216,843

Gas Customer Choice 48,224 38,806 31,498 24,177 19,520

Total 236,401 209,381 238,364 232,473 236,363

WORKING GAS STORAGE CAPACITY (Bcf) 142 142 142 142 143

AVERAGE COST OF GAS SOLD ($ per Mcf) 3

Gas Cost Recovery $6.02 $6.73 $7.66 $8.36 $7.91

Gas Customer Choice 6.30 7.27 7.98 9.99 9.79

AUTHORIZED RETURN ON EQUITY 10.50% 10.55% 10.55% 10.55% 10.75%

EARNED RETURN ON EQUITY-FINANCIAL 10.50% 10.90% 9.90% 9.20% 9.20%

RATE BASE ($ Millions) $3,110 $2,867 $2,778 $2,638 $2,444

HEATING DEGREE DAYS 4

Normal degree days in calendar year 6,678 6,731 6,732 6,741 6,767

Actual degree days 6,606 6,305 6,913 6,965 6,548

Colder (w armer) than normal (%) (1.1) (6.3) 2.7 3.3 (3.2)

Increase (decrease) from normal in:

Gas deliveries (Bcf) (0.4) (6.4) 4.8 4.1 (6.3)

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 | HDD base 65 degrees, seven w eather station average, normal equals average of preceding 15 year time period

CMS Energy Investor Relations One Energy Plaza Jackson, MI 49201 517-788-2590 www.cmsenergy.com

41

Enterprises & EnerBank

Independent Power Production

Capacity

Ownership Gross In-Service Under LT

Plant Fuel Interest Capacity Year Contract State

Craven Wood 50% 50 1990 100% NC

DIG Natural Gas 100 710 2001 20 MI

Filer City Coal 50 73 1990 100 MI

Genesee Wood 50 40 1996 100 MI

Grayling Wood 50 38 1992 100 MI

MI Power Natural Gas 100 224 1999 59 MI

Net MW Owned by CMS 1,035

Michigan Power

(Livingston) Grayling

Filer City Genesee

EnerBank HQ

Michigan Power DIG

Renewables (Kalamazoo

River)

Other

Craven

CMS Energy Investor Relations One Energy Plaza Jackson, MI 49201 517-788-2590 www.cmsenergy.com

42

GAAP RECONCILIATION

CMS ENERGY CORPORATION

Earnings Per Share By Year GAAP Reconciliation

(Unaudited)

|  | 2003 |  |  | 2004 |  |  | 2005 |  |  | 2006 |  |  | 2007 |  |  | 2008 |  |  | 2009 |  |  | 2010 |  |  | 2011 |
Reported earnings (loss) per share - GAAP |  |  | ($0.30 | ) |  | $ | 0.64 |  |  |  | ($0.44 | ) |  |  | ($0.41 | ) |  |  | ($1.02 | ) |  | $ | 1.20 |  |  | $ | 0.91 |  |  | $ | 1.28 |  |  | $ | 1.58 |
After-tax items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Electric and gas utility |  |  | 0.21 |  |  |  | (0.39 | ) |  |  | — |  |  |  | — |  |  |  | (0.07 | ) |  |  | 0.05 |  |  |  | 0.33 |  |  |  | 0.03 |  |  |  | 0.00 |
Enterprises |  |  | 0.74 |  |  |  | 0.62 |  |  |  | 0.04 |  |  |  | (0.02 | ) |  |  | 1.25 |  |  |  | (0.02 | ) |  |  | 0.09 |  |  |  | (0.03 | ) |  |  | (0.11 | )
Corporate interest and other |  |  | 0.16 |  |  |  | (0.03 | ) |  |  | 0.04 |  |  |  | 0.27 |  |  |  | (0.32 | ) |  |  | (0.02 | ) |  |  | 0.01 |  |  |  | * |  |  |  | (0.01 | )
Discontinued operations (income) loss |  |  | (0.16 | ) |  |  | 0.02 |  |  |  | (0.07 | ) |  |  | (0.03 | ) |  |  | 0.40 |  |  |  | (*) |  |  |  | (0.08 | ) |  |  | 0.08 |  |  |  | (0.01 | )
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 |  |  | $ | 1.45 |
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 |  |  |  | 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.

2003-11 EPS

CMS ENERGY CORPORATION

Earnings By Quarter and Year GAAP Reconciliation

(Unaudited)

(In millions, except per share amounts) |  | 2011 |
|  | 1Q |  |  | 2Q |  |  | 3Q |  |  | 4Q |  |  | YTD Dec |
Reported net income - GAAP |  | $ | 135 |  |  | $ | 100 |  |  | $ | 139 |  |  | $ | 41 |  |  | $ | 415 |
After-tax items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Electric and gas utility |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Enterprises |  |  | * |  |  |  | (28 | ) |  |  | * |  |  |  | 1 |  |  |  | (27 | )
Corporate interest and other |  |  | — |  |  |  | (4 | ) |  |  | — |  |  |  | * |  |  |  | (4 | )
Discontinued operations income |  |  | (2 | ) |  |  | * |  |  |  | * |  |  |  | * |  |  |  | (2 | )
Adjusted income - non-GAAP |  | $ | 133 |  |  | $ | 68 |  |  | $ | 139 |  |  | $ | 42 |  |  | $ | 382 |
Average shares outstanding, basic |  |  | 250.0 |  |  |  | 250.3 |  |  |  | 251.3 |  |  |  | 251.7 |  |  |  | 250.8 |
Average shares outstanding, diluted |  |  | 261.7 |  |  |  | 261.9 |  |  |  | 263.9 |  |  |  | 265.5 |  |  |  | 263.4 |
Reported earnings per share - GAAP |  | $ | 0.52 |  |  | $ | 0.38 |  |  | $ | 0.53 |  |  | $ | 0.15 |  |  | $ | 1.58 |
After-tax items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Electric and gas utility |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Enterprises |  |  | * |  |  |  | (0.11 | ) |  |  | * |  |  |  | * |  |  |  | (0.11 | )
Corporate interest and other |  |  | — |  |  |  | (0.01 | ) |  |  | — |  |  |  | * |  |  |  | (0.01 | )
Discontinued operations income |  |  | (0.01 | ) |  |  | * |  |  |  | * |  |  |  | * |  |  |  | (0.01 | )
Adjusted earnings per share - non-GAAP |  | $ | 0.51 |  |  | $ | 0.26 |  |  | $ | 0.53 |  |  | $ | 0.15 |  |  | $ | 1.45 |

(In millions, except per share amounts) |  | 2012 |
|  | 1Q |  |  | 2Q |
Reported net income - GAAP |  | $ | 67 |  |  | $ | 100 |
After-tax items: |  |  |  |  |  |  |  |
Electric and gas utility |  |  | 36 |  |  |  | 7 |
Enterprises |  |  | 1 |  |  |  | 1 |
Corporate interest and other |  |  | — |  |  |  | — |
Discontinued operations income |  |  | (7 | ) |  |  | * |
Adjusted income - non-GAAP |  | $ | 97 |  |  | $ | 108 |
Average shares outstanding, basic |  |  | 255.6 |  |  |  | 261.2 |
Average shares outstanding, diluted |  |  | 266.9 |  |  |  | 268.2 |
Reported earnings per share - GAAP |  | $ | 0.25 |  |  | $ | 0.37 |
After-tax items: |  |  |  |  |  |  |  |
Electric and gas utility |  |  | 0.14 |  |  |  | 0.03 |
Enterprises |  |  | 0.01 |  |  |  | * |
Corporate interest and other |  |  | — |  |  |  | — |
Discontinued operations income |  |  | (0.03 | ) |  |  | * |
Adjusted earnings per share - non-GAAP |  | $ | 0.37 |  |  | $ | 0.40 |

Note: Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.

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

2012 A-1

CMS Energy Corporation

Earnings Segment Results GAAP Reconciliation

(Unaudited)

|  | Three Months Ended |  |  | Six Months Ended |
June 30 |  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
Electric Utility |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Reported |  | $ | 0.41 |  |  | $ | 0.32 |  |  | $ | 0.49 |  |  | $ | 0.57 |
Electric Decoupling Court Order |  |  | — |  |  |  | — |  |  |  | 0.14 |  |  |  | — |
Downsizing Program |  |  | 0.02 |  |  |  | — |  |  |  | 0.02 |  |  |  | — |
Adjusted |  | $ | 0.43 |  |  | $ | 0.32 |  |  | $ | 0.65 |  |  | $ | 0.57 |
Gas Utility |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Reported |  | $ | 0.03 |  |  | $ | 0.02 |  |  | $ | 0.24 |  |  | $ | 0.36 |
Downsizing Program |  |  | 0.01 |  |  |  | — |  |  |  | 0.01 |  |  |  | — |
Adjusted |  | $ | 0.04 |  |  | $ | 0.02 |  |  | $ | 0.25 |  |  | $ | 0.36 |
Enterprises |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Reported |  | $ | — |  |  | $ | 0.11 |  |  | $ | 0.01 |  |  | $ | 0.12 |
Downsizing Program |  |  | * |  |  |  | — |  |  |  | * |  |  |  | — |
Restructuring Costs |  |  | * |  |  |  | — |  |  |  | 0.01 |  |  |  | — |
Tax Changes |  |  | — |  |  |  | (0.11 | ) |  |  | — |  |  |  | (0.11 | )
Asset Sales Gains and Other |  |  | — |  |  |  | * |  |  |  | — |  |  |  | * |
Adjusted |  | $ | — |  |  | $ | * |  |  | $ | 0.02 |  |  | $ | 0.01 |
Corporate Interest and Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Reported |  | $ | (0.07 | ) |  | $ | (0.07 | ) |  | $ | (0.15 | ) |  | $ | (0.16 | )
Tax Changes |  |  | — |  |  |  | (0.01 | ) |  |  | — |  |  |  | (0.01 | )
Adjusted |  | $ | (0.07 | ) |  | $ | (0.08 | ) |  | $ | (0.15 | ) |  | $ | (0.17 | )
Discontinued Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Reported |  | $ | * |  |  | $ | * |  |  | $ | 0.03 |  |  | $ | 0.01 |
Discontinued Operations Income |  |  | * |  |  |  | * |  |  |  | (0.03 | ) |  |  | (0.01 | )
Adjusted |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Totals |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Reported |  | $ | 0.37 |  |  | $ | 0.38 |  |  | $ | 0.62 |  |  | $ | 0.90 |
Discontinued Operations Income |  |  | * |  |  |  | * |  |  |  | (0.03 | ) |  |  | (0.01 | )
Electric Decoupling Court Order |  |  | — |  |  |  | — |  |  |  | 0.14 |  |  |  | — |
Downsizing Program |  |  | 0.03 |  |  |  | — |  |  |  | 0.03 |  |  |  | — |
Restructuring Costs |  |  | * |  |  |  | — |  |  |  | 0.01 |  |  |  | — |
Tax Changes |  |  | — |  |  |  | (0.12 | ) |  |  | — |  |  |  | (0.12 | )
Asset Sales Gains and Other |  |  | — |  |  |  | * |  |  |  | — |  |  |  | * |
Adjusted |  | $ | 0.40 |  |  | $ | 0.26 |  |  | $ | 0.77 |  |  | $ | 0.77 |
Average Common Shares Outstanding - Diluted (in millions) |  |  | 268.2 |  |  |  | 261.9 |  |  |  | 267.7 |  |  |  | 261.5 |

* | Less than $0.01 per share.

2012 A-2

Consumers Energy

2012 Forecasted Cash Flow GAAP Reconciliation (in millions) (unaudited)

|  |  |  |  | Reclassifications From Sources and Uses to Statement of Cash Flows |  |  |  |  |  |
Presentation Sources and Uses |  |  | Tax Sharing Operating |  |  | Interest Payments as Operating |  |  | Premium on Early Debt Retirement As Operating |  |  | Other Working Capital as Investing |  |  | Capital Lease Pymts as Financing |  |  | Securitization Debt Pymts as Financing |  |  | Preferred Dividends as Financing |  |  | Common Dividends as Financing |  |  | Consolidated Statements of Cash Flows
Description |  | non-GAAP Amount |  |  |  |  |  |  |  |  |  |  | GAAP Amount |  |  | Description
Cash at year end 2011 |  | $ | 85 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 85 |  |  | Cash at year end 2011
Sources |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating |  | $ | 1,640 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other working capital |  |  | (55 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Net cash provided by operating activities
Sources |  | $ | 1,585 |  |  | $ | (45 | ) |  | $ | (223 | ) |  | $ | (15 | ) |  | $ | 9 |  |  | $ | 30 |  |  | $ | 39 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,380 |  |  |
Uses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest and preferred dividends |  | $ | (225 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  |  | (1,425 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dividends/tax sharing to CMS |  |  | (445 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Net cash provided by investing activities
Uses |  | $ | (2,095 | ) |  | $ | 45 |  |  | $ | 223 |  |  | $ | — |  |  | $ | (9 | ) |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | 400 |  |  | $ | (1,434 | ) |  | Cash flow from operating and investing activities
Cash flow |  | $ | (510 | ) |  | $ | — |  |  | $ | — |  |  | $ | (15 | ) |  | $ | — |  |  | $ | 30 |  |  | $ | 39 |  |  | $ | 2 |  |  | $ | 400 |  |  | $ | (54 | ) |  |
Financing |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity |  | $ | 150 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
New Issues |  |  | 1,075 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retirements |  |  | (1,025 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net short-term financing & other |  |  | 250 |  |  |  |  |  |  |  |  |  |  |  | 15 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Net cash provided by financing activities
Financing |  | $ | 450 |  |  | $ | — |  |  | $ | — |  |  | $ | 15 |  |  | $ | — |  |  | $ | (30 | ) |  | $ | (39 | ) |  | $ | (2 | ) |  | $ | (400 | ) |  | $ | (6 | ) |  |
Net change in cash |  | $ | (60 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (60 | ) |  | Net change in cash
Cash at year end 2012 |  | $ | 25 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 25 |  |  | Cash at year end 2012

2012 B-1

CMS Energy Parent

2012 Forecasted Cash Flow GAAP Reconciliation (in millions) (unaudited)

|  |  | Reclassifications From Sources and Uses to Statement of Cash Flows |  |  |
Presentation Sources and Uses |  |  | Interest Payments as Operating |  |  | Overheads & Tax Payments as Operating |  |  | Other Uses (a) as Operating |  |  | Financing as Operating |  |  | Cash From Consolidated Companies |  |  | Consolidated Statements of Cash Flows
Description |  | non-GAAP Amount |  |  |  |  |  |  |  | GAAP Amount |  |  | Description
Cash at year end 2011 |  | $ | 56 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 20 |  |  | $ | 76 |  |  | Cash at year end 2011
Sources |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumers Energy dividends/tax sharing |  | $ | 445 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Enterprises |  |  | 15 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Net cash provided by operating activities
Sources |  | $ | 460 |  |  | $ | (125 | ) |  | $ | (15 | ) |  | $ | (41 | ) |  | $ | (35 | ) |  | $ | 8 |  |  | $ | 252 |  |  |
Uses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest and preferred dividends |  | $ | (125 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Overhead and Federal tax payments |  |  | (15 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity infusions |  |  | (150 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Net cash provided by investing activities
Uses (a) |  | $ | (340 | ) |  | $ | 125 |  |  | $ | 15 |  |  | $ | 41 |  |  | $ | — |  |  | $ | (141 | ) |  | $ | (300 | ) |  | Cash flow from operating and investing activities
Cash flow |  | $ | 120 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (35 | ) |  | $ | (133 | ) |  | $ | (48 | ) |  |
Financing and dividends |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
New Issues |  | $ | 480 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retirements |  |  | (404 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity programs (DRP, continuous equity) |  |  | 30 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net short-term financing & other |  |  | (2 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common dividend |  |  | (250 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Net cash provided by financing activities
Financing |  | $ | (146 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 35 |  |  | $ | 155 |  |  | $ | 44 |  |  |
Net change in cash |  | $ | (26 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 22 |  |  | $ | (4 | ) |  | Net change in cash
Cash at year end 2012 |  | $ | 30 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 42 |  |  | $ | 72 |  |  | Cash at year end 2012

(a) | Includes other and roundings

2012-B-2

Consolidated CMS Energy

2012 Forecasted Consolidation of Consumers Energy and CMS Energy Parent Statements of Cash Flow (in millions) (unaudited)

|  |  | Eliminations/Reclassifications to Arrive at the Consolidated Statement of Cash Flows |  |  |
Statements of Cash Flows |  |  | Consumers Common Dividend as Financing |  |  | Consumers Preferred Dividend as Operating |  |  | Equity Infusions to Consumers |  |  | Consolidated Statements of Cash Flows
Description |  | Consumers Amount |  |  | CMS Parent Amount |  |  |  |  |  | Amount |  |  | Description
Cash at year end 2011 |  | $ | 85 |  |  | $ | 76 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 161 |  |  | Cash at year end 2011
Net cash provided by operating activities |  | $ | 1,380 |  |  | $ | 252 |  |  | $ | (400 | ) |  | $ | (2 | ) |  | $ | — |  |  | $ | 1,230 |  |  | Net cash provided by operating activities
Net cash provided by investing activities |  |  | (1,434 | ) |  |  | (300 | ) |  |  | — |  |  |  | — |  |  |  | 150 |  |  |  | (1,584 | ) |  | Net cash provided by investing activities
Cash flow from operating and investing activities |  | $ | (54 | ) |  | $ | (48 | ) |  | $ | (400 | ) |  | $ | (2 | ) |  | $ | 150 |  |  | $ | (354 | ) |  | Cash flow from operating and investing activities
Net cash provided by financing activities |  | $ | (6 | ) |  | $ | 44 |  |  | $ | 400 |  |  | $ | 2 |  |  | $ | (150 | ) |  | $ | 290 |  |  | Net cash provided by financing activities
Net change in cash |  | $ | (60 | ) |  | $ | (4 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (64 | ) |  | Net change in cash
Cash at year end 2012 |  | $ | 25 |  |  | $ | 72 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 97 |  |  | Cash at year end 2012

2012 B-3

CMS Energy

2012 Reconciliation of Gross Operating Cash Flow to GAAP Operating Activities

(unaudited)

(mils)

|  | 2012 |
Consumers Operating Income + Depreciation & Amortization |  | $ | 1,640 | (a)
Enterprises Project Cash Flows |  |  | 15 |
Gross Operating Cash Flow |  | $ | 1,655 |
Other operating activities including taxes, interest payments and working capital |  |  | (425 | )
Net cash provided by operating activities |  | $ | 1,230 |

(a) | Excludes impact of $59 million electric decoupling write off

2012 B-4

CMS Energy

Reconciliation of Gross Operating Cash Flow to GAAP Operating Activities

(unaudited)

(mils)

|  | 2009 |  |  | 2010 |  |  | 2011 |  |  | 2012 |  |  | 2013 |  |  | 2014 |  |  | 2015 |  |  | 2016 |
Consumers Operating Income + Depreciation & Amortization |  | $ | 1,248 |  |  | $ | 1,498 |  |  | $ | 1,527 |  |  | $ | 1,640 | (a) |  | $ | 1,735 |  |  | $ | 1,860 |  |  | $ | 1,977 |  |  | $ | 2,051 |
Enterprises Project Cash Flows |  |  | 16 |  |  |  | 39 |  |  |  | 24 |  |  |  | 15 |  |  |  | 27 |  |  |  | 33 |  |  |  | 35 |  |  |  | 35 |
Gross Operating Cash Flow |  | $ | 1,264 |  |  | $ | 1,537 |  |  | $ | 1,551 |  |  | $ | 1,655 |  |  | $ | 1,762 |  |  | $ | 1,893 |  |  | $ | 2,012 |  |  | $ | 2,086 |
Other operating activities including taxes, interest payments and working capital |  |  | (416 | ) |  |  | (578 | ) |  |  | (382 | ) |  |  | (425 | ) |  |  | (412 | ) |  |  | (443 | ) |  |  | (757 | ) |  |  | (776 | )
Net cash provided by operating activities |  | $ | 848 |  |  | $ | 959 |  |  | $ | 1,169 |  |  | $ | 1,230 |  |  | $ | 1,350 |  |  | $ | 1,450 |  |  | $ | 1,255 |  |  | $ | 1,310 |

(a) | Excludes impact of $59 million electric decoupling write off

2009-16 OCF