Top of Mind Why Invest Investment Upsides Partners Regulatory Passion to Improve BMO 10th Annual Utilities & Pipeline Conference December 2, 2014 Ludington Pumped Storage Ray Compressor Jackson Gas PlantStation Cross Winds…
UPSIDES -- Capacity Opportunities . . . . Further Capacity Growth Over Next Ten Years Upside MW 11,000 Not in plan 10,000 1,200 MW PPAs Expire PPA 8,600 MW 1,240 MW 580 PPA 2,600 780 MW 7,500 capacity Owned 30% 8,820 800…
UPSIDES -- Capacity Price Increases . . . . Today Future Scenarios Recent Contracts (mils) (mils) +50 55 Nine-year 250 MW energy contract at 4.06 Capacity to Consumers 35 25 MW/2015 at 2.32 +30 50 MW/2016 at 4.36 Upside:…
UPSIDES -- 2014 Reinvestment Helps Customers . . . . Adjusted EPS (non-GAAP) 2014 +18 Third Quarter EPS Weather (Electric) (6) +15 Reinvestment (5) Total Change (11) +9 Good First Nine Months EPS Choices Weather (Gas) 16…
UPSIDES -- Trend of O&M Cost Savings . . . . O&M Trend vs Peers Future Savings 2018 vs 2013 0 50% (mils) 6% per year 0 Peers Fuel mix - 25 0 2% per year Benefits - 75 0 Less Expensive New - 75 0 Inflation -25% Hires & Lower…
PARTNERS -- Michigan Energy Law Update . . . . Adaptability No updates expected until Reliability early 2015 Affordability Environmental protection 10% renewables by 2015 Energy efficiency standards File-and-implement…
PARTNERS -- Election Results . . . . Governors Race State Senate Democrats Republicans Michigans Comeback Continues 38 Governor Rick Snyder (R) 11/-1 27/+1 State House Eliminated state deficit; balanced four budgets a Democrats…
REGULATORY -- Electric Rate Case Investment . . . . Win-Win Rate Case Key Features New A) New rate design Investment Offsets Jackson (Big users competitive) Plant Cost of Removal Service 2001 Smart Energy Improvements Request…
REGULATORY -- New Electric Rate Design . . . . Residential Commercial Industrial Energy Intensive 2.5% -0.7% -1.3% -3.2% -3.4% -4.7% -5.0% -4.8% -4.8% -9.8% -15.0% -20.0% Base Rate Fuel Recovery Net Reduction . . . .…
PASSION TO IMPROVE -- CMS Energy . . . . Future Shines Bright Substantial Future Growth 3.50 EPS a +5% to +7% Past Next 5 Dividend Performance Years Capex (bils) 6.3 7.5 (2009-2014) Capacity Op +7% O&M Reductions (7)% (10)%…
Appendix
2015 Gas Rate Case . . . . Overview Residential Gas Customer Cost Amount Amount (per day) (Mils) 3.00 Projected 9% Capital Investment 144 decrease Cost & Other (56) 2.44 Request 88 2.24 2016-2017 Investment 2.00 Recovery Mechanism…
Consumers Appears . . . . Carbon Tonnage Reduction Million Tons of CO2 (Preliminary) 25 2005 Baseline 23 21 Clean Power Plan 19 Implied EPA Target 17 Consumers Energy Projected 15 emission level 13 2014 2020 2025 2029…
Generation Strategy: New Supply Sources . . . . Levelized cost of new build (/kWh) New Build 25 Consumers Energy Sources 22 20 15 15 12 11 Back 10 10 -up 8 7 6 Back 7 6 -up 6 9 5.5 5 5 5 Cross Winds 6 Big 5…
Operating Cash Flow Growth . . . . Amount Up 0.5 Billion (bils) Gross operating cash flowa 2.5 up 0.1 billion per year 2.3 2.2 2.1 2.0 2.0 1.9 Interest, working 1.8 1.7 capital and taxes 1.55 1.5 1.45 Pct of Market Cap (as…
GAAP Reconciliation
Earnings Per Share By Year GAAP Reconciliation (Unaudited) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Reported earnings (loss) per share - GAAP (0.30) 0.64 (0.44) (0.41) (1.02) 1.20 0.91 1.28 1.58 1.42 1.66 After-tax…
CMS Energy Reconciliation of Gross Operating Cash Flow to GAAP Operating Activities (unaudited) (mils) 2013 2014 2015 2016 2017 2018 2019 Consumers Operating Income + Depreciation & Amortization 1,740 1,810 1,877 1,959 2,065…
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