Form 8-K CMS ENERGY CORP For: Dec 08 Filed by: CONSUMERS ENERGY CO
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) December 8, 2016
Commission |
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Registrant; State of Incorporation; |
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IRS Employer |
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1-9513 |
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CMS ENERGY CORPORATION |
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38-2726431 |
1-5611 |
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CONSUMERS ENERGY COMPANY |
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38-0442310 |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01. Regulation FD Disclosure.
On December 8, 2016, CMS Energy Corporations (CMS Energy) raised its 2016 adjusted earnings per share guidance to $2.02, indicating expected performance at the high end of its plan to grow earnings per share at 6% to 7%.
CMS Energy is holding a webcast to discuss on December 8, 2016 at 8:30 AM EST and a copy of the presentation is furnished as Exhibit 99.1 to this report. A webcast of the presentation will be available on the CMS Energy website, www.cmsenergy.com.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
Investors and others should note that CMS Energy routinely posts important information on its website and considers the Investor Relations section, www.cmsenergy.com/investor-relations, a channel of distribution.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 CMS Energy presentation dated December 8, 2016
This Form 8-K contains forward-looking statements as defined in Rule 3b-6 of the Securities Exchange Act of 1934, Rule 175 of the Securities Act of 1933, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. All forward-looking statements should be considered in the context of the risk and other factors detailed from time to time in CMS Energys and Consumers Energy Companys (Consumers) Securities and Exchange Commission filings. Forward-looking statements should be read in conjunction with FORWARD-LOOKING STATEMENTS AND INFORMATION and RISK FACTORS sections of CMS Energys Form 10-K and Consumers Form 10-K, each for the year ended December 31, 2015, and as updated in CMS Energys and Consumers Forms 10-Q. CMS Energys and Consumers FORWARD-LOOKING STATEMENTS AND INFORMATION and RISK FACTORS sections are incorporated herein by reference and discuss important factors that could cause CMS Energys and Consumers results to differ materially from those anticipated in such statements.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
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CMS ENERGY CORPORATION |
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Dated: December 8, 2016 |
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/s/ Thomas J. Webb |
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Thomas J. Webb |
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Executive Vice President and |
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Chief Financial Officer |
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CONSUMERS ENERGY COMPANY |
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Dated: December 8, 2016 |
By: |
/s/ Thomas J. Webb |
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Thomas J. Webb |
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Executive Vice President and |
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Chief Financial Officer |
Exhibit 99.1
Future Capacity and Capex Update December 8, 2016 Palisades Gas Pipeline
This presentation is made as of the date hereof and contains forward-looking statements as defined in Rule 3b-6 of the Securities Exchange Act of 1934, Rule 175 of the Securities Act of 1933, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. All forward-looking statements should be considered in the context of the risk and other factors detailed from time to time in CMS Energys and Consumers Energys Securities and Exchange Commission filings. Forward-looking statements should be read in conjunction with FORWARD-LOOKING STATEMENTS AND INFORMATION and RISK FACTORS sections of CMS Energys and Consumers Energys Form 10-K for the year ended December 31, 2015 and as updated in subsequent 10-Qs. CMS Energys and Consumers Energys FORWARD-LOOKING STATEMENTS AND INFORMATION and RISK FACTORS sections are incorporated herein by reference and discuss important factors that could cause CMS Energys and Consumers Energys 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 Energys 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 historical financial results on both a reported (GAAP) and adjusted (non-GAAP) basis and provides forward-looking guidance on an adjusted basis. Adjustments could include items such as, discontinued operations, asset sales, impairments, restructuring costs, regulatory items from prior years, or other items. Management views adjusted earnings as a key measure of the companys present operating financial performance and uses adjusted earnings for external communications with analysts and investors. Internall y, the company uses adjusted earnings to measure and assess performance. Because the company is not able to estimate the impact of specific line items, which have the potential to significantly impact, favorably or unfavorably, the companys reported earnings in future periods, the company is not providing reported earnings guidance nor is it providing a reconciliation for the comparable future period earnings. The adjusted earnings should be considered supplemental information to assist in fully understanding our business results, rather than as a substitute for the reported earnings. Investors and others should note that CMS Energy routinely posts important information on its website and considers the Investor Relations section, www.cmsenergy.com/investor-relations, a channel of distribution. 1
2 Palisades PPA Termination . . . . Early PPA termination Benefits customers Good for investors . . . . mutually beneficial. Palisades
Early Termination of Palisades PPA . . . . Key PPA Contract price-to-Cost (mils) $450 Points ~$45 mil per year Customer Savings 400 350 300 250 Replacement 200 Cost 150 100 a 2018 2019 2020 2021 2022 _ _ _ _ _ a Contract expires April 11, 2022. Amounts shown on the chart on annualized basis. 3 . . . . is beneficial to customers AND investors. Consumers rket Ma PPA to terminate in 2018 (vs 2022) Savings shared with owner, and our customers (50/50) Contingent on MPSC approval Securitization of termination payment
Replacement Includes . . . . Palisades Replacement Plan Energy efficiency Demand 2015 Apr 2016 Dec 2015 2016 2017 2018 2025 Apr/Aug 2016 4 . . . . flexible capacity options without big bets. #2 Ludington Pumped Storage (73 MW) Jackson Gas Plant (540 MW) Solar/Wind #4 Ludington Pumped Storage (73 MW) Apple Blossom Wind Farm (100 MW) response Renewables DIG New gas capacity Classic 7 Retires (950 MW) Palisades (778 MW) Announced MCV (1240 MW)
Increasing Capital Investment by $1 billion . . . . 2016 - 2025 $17 billion 2018 - 2027 $18 billion Incremental Capex Gas main replacement Future Opportunities Supply replacement Electric Infrastructure & Maintenance Gas Infrastructure & Maintenance Electric Infrastructure & Maintenance Gas Infrastructure & Maintenance Electric Distribution & Reliability Electric Distribution & Reliability New Generation New Generation Gas Additions Palisades Replacement Environmental Environmental 5 . . . . with even more opportunity ahead. More gas infrastructure More renewables PPA replacement
a EPS Guidance . . . . $2.02 +7% EPS a +7% Average growth per year $1.77 $1.87 $1.99 $1.66 $1.78 $1.66 $1.55 Not in Plan $1.45 Updated Law Big Bets $1.55 _ _ _ _ _ a Adjusted EPS (non-GAAP) 6 . . . . raised to top end. $2.10 $1.89$2.00 +6% $1.85 $1.73 $1.63 $1.36$1.44$1.52 Capex Opportunities $1.35Original guidance 0 2010201120122013201420152016
Consistent Growth Through . . . . CAGR EPS Recession 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 7 7% to 6% 8% Cold winter Mild summer Hot summer Warm winter Mild summer Cold winter Summer-less Hot summer Hot summer Warm winter Mild summer Polar vortex Cold Feb. Warm . Winter Warm Dec Governor (D) Governor (R) Commission (D) Commission (D) Commission (R) Commission (I) Whipple Joos Russell Poppe . . . . recessions, adverse weather, and leadership changes. a _ _ _ _ _ a Adjusted EPS (non-GAAP) 7% Recession Dividend Weather Help Hurt
GAAP Reconciliation
CMS ENERGY CORPORATION Earnings Per Share By Year GAAP Reconciliation (Unaudited) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Reported earnings (los s ) per s hare - GAAP ($0.30) $0.64 ($0.44) ($0.41) ($1.02) $1.20 $0.91 $1.28 $1.58 $1.42 $1.66 $1.74 $1.89 Pretax items : Electric and gas utility Tax impact Enterpris es Tax impact Corporate interes t and other Tax impact Dis continued operations (income) los s , net As s et impairment charges Tax impact Cumulative accounting changes Tax impact 0.32 (0.11) 0.93 (0.19) 0.25 (0.09) (0.16) - - 0.25 (0.09) (0.60) 0.21 0.97 (0.35) (0.06) 0.03 0.02 - - 0.02 (0.01) - - 0.06 (0.02) 0.06 (0.02) (0.07) 2.80 (0.98) - - - - (0.12) 0.10 0.45 (0.18) (0.03) 1.07 (0.31) - - (0.06) (0.01) 1.67 (0.42) 0.17 (0.49) 0.40 0.93 (0.33) - - 0.08 (0.03) (0.02) * 0.01 (0.03) (*) - - - - 0.55 (0.22) 0.14 (0.05) 0.01 (*) (0.08) - - - - 0.05 (0.02) (0.05) 0.02 * (*) 0.08 - - - - - - * (0.11) - (0.01) (0.01) - - - - 0.27 (0.10) (0.01) * * (*) (0.03) - - - - - - * (*) * (*) * - - - - - - 0.05 (0.02) * (*) (*) - - - - - - * (*) * (*) (*) - - - - Adjus ted earnings per s hare, including MTM - non-GAAP Mark-to-market Tax impact $0.81 $0.87 0.04 (0.01) $1.39 (0.65) 0.22 $0.57 0.80 (0.29) $0.84 $1.21 (a) $1.26 $1.36 $1.45 $1.55 $1.66 $1.77 $1.89 Adjus ted earnings per s hare, excluding MTM - non-GAAP NA $0.90 $0.96 $1.08 NA NA NA NA NA NA NA NA NA * Less t han $0.01 per share. (a) $1.25 excluding discont inued Exet er operat ions and account ing changes relat ed t o convert ible debt and rest rict ed st ock. 9
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