2014 Year End Results and 2015 Outlook January 29, 2015...Ludington Pumped Storage Ray Compressor...

Fourth largest in the world #1 LDC in gas storage #2 in renewable sales in the Great Lakes area

Cross Winds Energy Park Ludington Pumped Storage Ray Compressor Station

2014 Year End Results and 2015 Outlook

January 29, 2015

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 Energy’s and Consumers Energy’s 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 Energy’s and Consumers Energy’s Form 10-K for the year ended

December 31, 2013 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 historical financial results on both a reported (Generally Accepted Accounting Principles) and adjusted

(non-GAAP) basis and provides forward-looking guidance on an adjusted 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. These items have the potential to impact, favorably or

unfavorably, the company's reported earnings in future periods.

Investors and others should note that CMS Energy and Consumers Energy post important financial information using the

investor relations section of the CMS Energy website, www.cmsenergy.com and Securities and Exchange Commission filings.

1

http://www.cmsenergy.com/

http://www.cmsenergy.com/

2

Agenda

Overview John Russell

President & CEO

Results & Outlook Tom Webb

Executive VP & CFO

2014 Results

Operational Results

Legislative Update

2015 Guidance & Priorities

2014 & 2015 Outlook

Rate Case Update

Long-term Plan

Investment & Capacity

Upsides

3

Financial Results & Outlook . . . .

. . . . 12th consecutive year of consistent financial performance.

_ _ _ _ _

a Non-GAAP

Up From

2014 Results Amount Prior Year

• EPSa $1.77 +7%

• Operating cash flow $1.45B +$100M

2015 Outlook

• EPSa guidance $1.86 to $1.89 +5% to +7%

• Annual dividend $1.16 +7%

• Payout ratio 62%

Settled gas rate case at $45 million, 10.3% ROE

Achieved 10% renewable plan, one year early

Competitive customer rates

Improved residential customer satisfaction, first quartile

Record year of Utility investment, $1.7 billion!

4

2014 Operational Results . . . .

. . . . add customer value and deliver financial results for shareowners.

Smart Energy Program

Improving customer satisfaction

Gas Distribution

Adding customer value

Southwest Michigan Pipeline

Increasing gas capacity

Cross Winds

Protecting the environment

5

Breakthrough Thinking, Next 10 Years . . . .

. . . . provides continuously improving sustainable results!

Capital

Investments

Capacity

Opportunities

Operational

Excellence

Comprehensive

Energy Policy

Adaptable over the long-

term (15 to 20 years)

Could add 3,000 MWs of

owned generation

$15.5 billion visible plan

with no “big bets”

First-quartile cost

performance

Customer Satisfaction . . . .

Electric

1st Quartile

2nd Quartile

4th Quartile

2010 2012 2014 2016

3rd Quartile

. . . . continues to improve rapidly.

Gas

1st Quartile

2nd Quartile

4th Quartile

3rd Quartile

2010 2012 2014 2016 Present

Rank

Present

Rank

Residential Business Residential Business

#6

#3

#2

#10

6

7

Experienced Policy Makers . . . .

. . . . provide stability.

John Quackenbush (R),

Chairman

Term Ends: July 2, 2017

Greg White (I)

Term Ends: July 2, 2015

Sally Talberg (I)

Term Ends:

July 2, 2019

Commission

Powering Michigan’s

Comeback

Governor Rick Snyder

Energy Committee Chairs

Senator

Mike Nofs

House Rep.

Aric Nesbitt

Consistent

Leadership!

• Governor Snyder names

energy a top priority during

State of the State address

• Forms an energy agency

• March special energy message

Michigan Energy Law Update . . . .

• Historical test

year

• 12-18 months

regulatory lag

• No cap on ROA

• 10% renewables by 2015

• Energy efficiency standards

• File-and-implement

• 10% ROA cap

• Adaptability

• Reliability

• Affordability

• Environmental protection

Before 2008 TODAY 2015 Improvements

. . . . builds on 2008 Law! 8

Update

2015 Energy Timeline

9

2015 EPS Guidance . . . .

$1.36

$1.45

$1.55

2010 2011 2012 2013 2014 2015 Future

. . . . builds on high end of growth.

_ _ _ _ _

a Adjusted EPS (non-GAAP)

$2

$1.66

$1.35

$1.44

$1.55

$1.52

$1.66

$1.63

EPS

0

a

$1.77

a

$1.86

+5%

$1.78

$1.73

Original guidance

+7% Average growth per year +7%

+5%

$1.89

+7%

$1.89

$1.85

Maintain leadership position in safety,

Continue “best-in-class” operational and cost performance,

Maintain top quartile employee engagement,

Continue customer satisfaction improvements,

Partner for constructive energy policy,

10

2015 Priorities . . . .

. . . . deliver consistent, predictable financial growth.

AND

11

2014 EPS . . . .

. . . . stronger than plan.

By Business Segment Results

+11¢

Reported -- (GAAP) $1.66

Excludes:

Legacy costs & other *

Adjusted (non-GAAP) $1.66

_ _ _ _ _ * Less than 0.5¢ per share

EPS

Utility

Enterprises

Interest & other

CMS Energy

Above 2013

$1.74

$1.77

2014 2013

$2.05

0.03

(0.31)

$1.77

+7%

0.03

12

2014 Adjusted EPS (non-GAAP) . . . .

$1.66

. . . . growth +7% over 2013, high end of guidance.

2013 Cost Savings Rate Changes O&M Weather & Sales O&M Reinvestment& Other

2014

$1.77 +7%

30¢ 8¢

(15)¢

4¢

2014 Weather 18¢

Abs ‘13 Weather (15)

Sales 1

Total 4¢

2013 2014

(16)¢

Investment

13

2014 Reinvestment Helped Customers . . . .

. . . . AND provided sustainable growth for investors.

2014

Adjusted EPS

(non-GAAP)

Guidance

+9¢

+18¢

+15¢

January March 31 June 30 September 30 December

$1.77 +7%

+4¢

Full Year vs Budget Amount (mils)

Weather $80

Cost savings 21

Reinvestment & Other (86)

Total Change $15

EPS +3¢

High End

of Guidance

14

2014 Financial Targets . . . .

Adjusted EPS (non-GAAP)

Operating cash flow (bils)

Dividend payout ratio

Customer base rate increases

FFO/Average debt

Capital investment (bils)

. . . . completing 12th year of consistent, strong performance.

Target

$1.73 - $1.78

+5% to +7%

$1.45

< 1%

18%

Actual

$1.77 +7%

$1.45

< 1%

18%

≈ 62%

$1.6

61%

$1.7

15

2015 Adjusted EPS (non-GAAP) . . . .

2014 Weather & Sales Absence of 2014Reinvestments

Rate Changes Investment & Other 2015

. . . . growth up 5% to 7% over 2014.

$1.86 -$1.89

+5% to +7%

$1.77

(16)¢

20¢

23¢

(15)¢ – (18)¢

2014 2015

Ahead

Complete

16

2015 Gas and Electric Rate Cases . . . .

2016 2015 2014

Filed

$88 M

7/01

. . . . primarily for investment recovery with large O&M offsets.

ELECTRIC

GAS

Our View

Our View

Filed

$163 M

12/05

Securitization

Surcharge Ends

$80 M

2016 2015 2014

Jackson Plant in

rate base

Investment recovery

and cost reductions

New Rate Design

A)

B)

C)

Settled

$45 M

Final

Order

New

Rate

Design

Jackson Plant

Classic 7

Decommissioned

Self-implement

B)

C)

A)

Settled $45 million

10.3% ROE

A)

B)

17

Electric Customer Prices . . . .

. . . . competitive for residential and improving for industrial customers.

-20

-10

0

10

20

2013 2014 2015 2016

Residential Bills Industrial Rates

(12)% (14)%

(19)%

(13)%

National Avg

%

Better

Worse

Rates

Rates &

Fuel

Rates &

Design

-30

-20

-10

0

10

20

30

2013 2014 2015 2016

26%

21%

13%

Midwest Avg

%

7%

Better

Worse

Rates &

Fuel

Rates &

Design

3%

(5)% Policy or

market might

eliminate gap

Plus

18

2015 Sensitivities . . . .

_ _ _ _ _

a Reflect 2015 sales forecast; weather adjusted

2015 Impact

Status Sensitivity EPS OCF

Sales a

• Electric (37,847 GWh)

• Gas (294.1 Bcf)

+ 1%

+ 5

+ $0.05

+ 0.07

+ $ 20

+ 30

Gas prices (NYMEX) + 50¢ 0 55

ROE (authorized)

• Electric (10.3%)

• Gas (10.3%)

+ 10 bps

+ 10

+ 0.01

+ < 0.01

+ 5

+ 2

Interest Rates +100 bps < 0.01

0

– +

. . . . reflect strong risk mitigation.

– +

– +

– +

(mils)

19

2015 Financial Targets . . . .

Adjusted EPS (non-GAAP)

Operating cash flow (mils)

Dividend payout ratio

Customer price decreases

Electric

Gas

FFO/Average debt

Capital investment (bils)

. . . . 13th year of transparent, consistent, strong performance.

Target

$1.86 - $1.89

+5% to +7%

$1,550

~(3)%

18%

> 62%

$1.6

Focus

Consistent, high-

end performance

No “big bets”

Good value

Self-funded growth

Competitive

Organic

~(3)%

20

Plan . . . .

. . . . building on past performance for even brighter future.

Sustainable Future Growth

Investment (bils)

O&M Reductions

Sales Growth

Energy Policy

Future Shines Bright

$6.4

(10)%

+1%

$7.6

(7)%

+½ %

Past

Performance Next 5

Years

Improved

Law

(2010-2014)

(2006-2014)

(2010-2014)

2008

Law

Last 12 Years Next 10 Years

+7%

+5% to +7%

_ _ _ _ _

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

$3.50

Dividend EPS

a

25%

Avg.

~ +4% yield

+9% to +11%

Annual Return

Plan Visible Capex . . . .

. . . . with no “big bets” over ten years!

2015-2024

21

2005-2014 $10.7B $15.5B

Electric

Maintenance Electric

Maintenance

Smart Energy

Gas

Infrastructure

New

Generation

Electric Reliability

Gas

Infrastructure

Smart Energy

Environmental

New

Generation

Environmental

Up +83%

Up +168%

Electric Reliability

O&M Cost Control . . . .

. . . . at peer leading pace.

2006-2013 2012 2013 2014 2015

Peers Actual/Plan

+6%

Peers Peers

+2%

Peers

CMS CMS CMS CMS CMS

-3%

Average Annual O&M Change

CMS +1%

Excluding

Catastrophic

December

Storm

+2%

22

Peers

Actual/Plan

-3% -3%

-1%

-2%

0

0

0

0

0

0

0

0

0

0

0

2006 2007 2008 2009 2010 2011 2012 2013

23

Trend of O&M Cost Savings . . . .

. . . . accelerated; funding investment and reducing risk.

50%

-25

Lines smoothed for illustrative purposes

O&M Trend vs Peers

2014 2018

Actual Plan

Future Savings

2018 vs 2013

(mils)

•Fuel mix $ - 25

•Benefits - 75

•Lower Headcount & Less

Expensive New Hires

- 75

•Smart Meters - 25

•New work +100

2018 below 2013 $-100

Peers

CMS

~6% per year

0

Inflation

-7%

-17%

-10%

~2% per year

-25%

-7%

Cumulative savings -10%

Plan Sales Growth . . . .

. . . . conservatively.

Annual Electric Salesa In the News

24

2008-2009Recession

2010-2013Recovery

2014 2015 Future

-5.0%

-2.5%

5.0%

1.0%

8.7%

2.8% 3.0%

1.0%

Industrial

Total

_ _ _ _ _ a Weather normalized vs. prior year

0.5%

2.0%

Conservative

2016 - 2019

“Kent County [Grand Rapids] leads nation’s

largest counties in post-recession

employment gains”

-- Grand Rapids Press

“Kent County [Grand Rapids] unemployment

rate at 3.5%” -- Wood TV 8

“Michigan unemployment rate drops to 6.3

percent, lowest since November 2002”

-- Michigan Economic Development Corp.

25

Operating Cash Flow Growth . . . .

(0.5)

0.0

0.5

1.0

1.5

2.0

2.5

2014 2015 2016 2017 2018 2019

Amount

(bils)

$

Investment

Cash flow before dividend _ _ _ _ _

a Non-GAAP

NOLs & Credits $0.7 $0.7 $0.5 $0.4 $0.3 $0.2

. . . . up $½ billion or 30% over five years!

$2.2

Interest, working capital and taxes

$1.8

$2.4

$1.55

Pct of Market Cap (as of Dec. 2014)

Cap Inv OCF

CMS 13% 15%

Peers 14 12

16% 15%

Up $0.5 Billion

$2.0 $2.1

$1.9

Gross operating cash flowa up $0.1 billion per year

Plan . . . .

. . . . provides consistent “no excuse” growth, without resets.

$0.81

_ _ _ _ _

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

Int’l Sale

b

Dividend Payout 0% 25% 30% 40% 49% 58% 62% 62% 61% 60%-70%

32%

27%

14%

39%

80%

6%

Peers 4%

6%

Dividend EPS $1.66

$1.16

10-Year Actual

7% CAGR

$1.77

26

20¢

36¢

50¢

66¢

84¢

96¢ $1.02

$0.90 $0.96

$1.08

$0.84

$1.21 $1.26

$1.36 $1.45

$1.55

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Future

a

$1.08

$1.89

$1.86

7%

• Greater capital investment, PPA’s, other

• 2015 Energy Law improvements

• Higher sales, improving economy

• Further cost reductions, “way of life”

• Increasing capacity prices

27

Upsides Not in Plan . . . .

. . . . add financial and operational flexibility.

Upside Ten-Year Capex Plan . . . .

. . . . excludes $5 billion of solid growth opportunities.

2015-2024

10-Year Plan

Opportunity Level

X

Rate Base up 5% to 7%

Customer

base rates <2 >4

28

Billion $15.5 $20+ Billion

$3.0

Amount (bils)

Generation capacity Gas conversions & expansion 1.0 Grid modernization 1.0

Total Opportunities $5.0

Upside?

Upside Capacity Opportunities . . . .

. . . . emerging incrementally with replacements not yet in plan!

5,000

7,500

10,000

Today Jackson PlantReplaces

Classic Seven

ROACustomers

Return?

Palisades PPAExpires 2022

MCV PPAExpires 2025

Future MISO Zone 7Shortage

~800 MW

1,240 MW

MW

PPA

2,600

capacity

~30%

~8,600 MW

540 MW

410 MW

Shortfall Owned

6,000

780 MW

1,200

MW

3,000 MW

11,000

Upside

Owned

8,820

PPA

580

Not in plan

Capacity Growth Over Next Ten Years

29

PPA’s Expire

Lower customer bills

2015 2022 2025 2016 201X

Upside Capacity Price Increases . . . .

. . . . could add value to the 700 MW “DIG” plant.

$0.50 $2.00 $4.50 $7.50Capacity

price ($ kW per

month)

Was (mils)

Future Scenarios (mils)

$55

$35

Recent Contracts

• Nine-year 250 MW

“energy” contract at $4.06

• Capacity to Consumers

• 25 MW/2015 at $2.32

• 50 MW/2016 at $4.36

<

Upside:

Capacity and energy

contracts layered

in over time

30

(CONE)

Now (mils)

+$40

+$20

$15

≈

$5

(Market) (Market)

31

Upside . . . .

. . . . future is brighter than past.

• More capital investment -- 30% opportunity

• 2015 Energy Law improvements

• Higher sales

• Better cost reduction

• Increasing capacity prices

32

CMS Energy . . . .

. . . . building on past performance for even brighter future.

Sustainable Future Growth

Investment (bils)

O&M Reductions

Sales Growth

Energy Policy

Future Shines Bright

$6.4

(10)%

+1%

$7.6

(7)%

+½ %

Past

Performance Next 5

Years

Improved

Law

(2010-2014)

(2006-2014)

(2010-2014)

2008

Law

Last 12 Years Next 10 Years

+7%

+5% to +7%

_ _ _ _ _

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

$3.50

Dividend EPS

a

25%

Avg.

~ +4% yield

+9% to +11%

Annual Return

Conservative

Conservative

Capacity Op!

Appendix

34

Credit Ratings . . . .

. . . . show continuous improvement.

•Consistent

Performance

•Less Risk

•Customer Focus

•Constructive

Regulation

•Good Energy

Policy

Reflects

Present

Prior

2002

Scale

S&P /

Fitch Moody’s

S&P

(Dec. ‘14)

Moody’s

(Jan. ‘14)

Fitch

(Feb. ‘14)

A+ A1

A A2

A- A3

BBB+ Baa1

BBB Baa2

BBB- Baa3

BB+ Ba1

BBB Baa2

BBB- Baa3

BB+ Ba1

BB Ba2

BB- Ba3

B+ B1

B B2

B- B3

Outlook Stable Stable Stable

Consumers Secured

CMS Unsecured

35

2015 Guidance . . . .

. . . . building on high end, actual 2013 performance.

Adjusted EPS

(non-GAAP)

• Utility

• Electric $1.50 - $1.52

• Gas 0.59 - 0.60

Total Utility $2.09 - $2.12

• Enterprises 0.04

• Parent and other (0.27)

Total EPS $1.86 - $1.89 +5% to +7%

• Operating cash flow (GAAP) (mils) $1,550

36

2014 Cash Flow (non-GAAP)

CMS Energy Parent

Cash at year end 2013 116$

Sources

Consumers Energy dividend and tax sharing 687$

Enterprises 20

Sources 707$

Uses

Interest and preferred dividend (138)$

Overhead and Federal tax payments (10)

Equity infusion (315)

Pension contribution 0

Uses a

(458)$

Cash flow 249$

Financing and Dividend

New issues 550$

Retirements (547)

DRP, continuous equity 43

Net short-term financing & other (21)

Common dividend (295)

Financing (270)$


Bank Facility ($550) available 547$

Amount(mils)

Consumers Energy

_ _ _ _ _ a Includes other

_ _ _ _ _ b Includes cost of removal and capital leases


Sources

Operating (depreciation & amortization $678) 1,813$

Other working capital (35)

Sources 1,778$

Uses


Capital expenditures b

(1,691)

Dividend and tax sharing $(228) to CMS (687)


Uses (2,604)$

Cash flow (826)$

Financing

Equity 315$

New issues (includes securitization bonds) 878

Retirements (177)

Net short-term financing & other (137)

Financing 879$



AR Facility ($250) available 250$

Amount(mils)

37

2015 Cash Flow Forecast (non-GAAP)

CMS Energy Parent


Sources

Consumers Energy dividend and tax sharing 315$

Enterprises 25

Sources 340$

Uses



Equity infusion (150)


Uses a

(295)$

Cash flow 45$

Financing and Dividend

New issues 150$

Retirements -

DRP, continuous equity 45

Net short-term financing & other 10

Common dividend (320)

Financing (115)$



Amount(mils)

Consumers Energy

_ _ _ _ _ a Includes other

_ _ _ _ _ b Includes cost of removal and capital leases


Sources

Operating (depreciation & amortization $675) 1,885$

Other working capital (175)

Sources 1,710$

Uses


Capital expenditures b

(1,585)

Dividend and tax sharing $(150) from CMS (315)


Uses (2,135)$

Cash flow (425)$

Financing

Equity 150$

New issues (includes securitization bonds) 250

Retirements (50)

Net short-term financing & other 29

Financing 379$



AR Facility ($250) available 250$

Amount(mils)

GAAP Reconciliation

39

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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 $1.74

After-tax items:

Electric and gas utility 0.21 (0.39) - - (0.07) 0.05 0.33 0.03 - 0.17 - -

Enterprises 0.74 0.62 0.04 (0.02) 1.25 (0.02) 0.09 (0.03) (0.11) (0.01) * 0.03

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) (0.03) * (*)

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 $1.55 $1.66 $1.77

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 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.

CMS ENERGY CORPORATION

Earnings Per Share By Year GAAP Reconciliation

(Unaudited)

40

(In Millions, Except Per Share Amounts)

1Q 2Q 3Q 4Q YTD Dec

Reported net income - GAAP $144 $80 $126 $102 $452

After-tax items:

Electric and gas utility - - - - -

Enterprises * * - (*) *

Corporate interest and other - * * * *

Discontinued operations loss * * * * *

Adjusted income - non-GAAP $144 $80 $126 $102 $452

Average shares outstanding, basic 263.6 264.5 264.8 265.1 264.5

Average shares outstanding, diluted 270.9 272.2 272.0 272.3 271.9

Reported earnings per share - GAAP $0.53 $0.29 $0.46 $0.37 $1.66

After-tax items:


Enterprises * * - (*) *

Corporate interest and other - * * * *

Discontinued operations loss * * * * *

Adjusted earnings per share - non-GAAP $0.53 $0.29 $0.46 $0.37 $1.66

(In Millions, Except Per Share Amounts)

1Q 2Q 3Q 4Q YTD Dec

Reported net income - GAAP $204 $83 $94 $96 $477

After-tax items:


Enterprises - * 9 * 9

Corporate interest and other * * * * *

Discontinued operations (income) loss (*) * * * (*)

Adjusted income - non-GAAP $204 $83 $103 $96 $486

Average shares outstanding, basic 266.1 268.0 274.0 274.1 270.6

Average shares outstanding, diluted 273.0 274.6 274.7 275.0 274.6

Reported earnings per share - GAAP $0.75 $0.30 $0.34 $0.35 $1.74

After-tax items:


Enterprises - * 0.03 * 0.03

Corporate interest and other * * * * *

Discontinued operations (income) loss (*) * * * (*)

Adjusted earnings per share - non-GAAP $0.75 $0.30 $0.37 $0.35 $1.77

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.


Earnings By Quarter and Year GAAP Reconciliation

(Unaudited)

2013

2014

41

December 31 2014 2013 2014 2013

Electric Utility

Reported 0.21$ 0.18$ 1.40$ 1.33$

Restructuring Costs and Other - - - -

Adjusted 0.21$ 0.18$ 1.40$ 1.33$

Gas Utility

Reported 0.21$ 0.26$ 0.65$ 0.62$

Restructuring Costs and Other - - - -

Adjusted 0.21$ 0.26$ 0.65$ 0.62$

Enterprises

Reported 0.01$ $ * $ (*) 0.01$

Restructuring Costs and Other * (*) 0.03 *

Adjusted 0.01$ -$ 0.03$ 0.01$

Corporate Interest and Other

Reported (0.08)$ (0.07)$ (0.31)$ (0.30)$

Restructuring Costs and Other * * * *

Adjusted (0.08)$ (0.07)$ (0.31)$ (0.30)$

Discontinued Operations

Reported $ (*) $ (*) $ * $ (*)

Discontinued Operations (Income) Loss * * (*) *

Adjusted -$ -$ -$ -$

Totals

Reported 0.35$ 0.37$ 1.74$ 1.66$

Discontinued Operations (Income) Loss * * (*) *

Restructuring Costs and Other * * 0.03 *

Adjusted 0.35$ 0.37$ 1.77$ 1.66$

Average Common Shares Outstanding - Diluted (in millions) 275.0 272.3 274.6 271.9

* Less than $0.01 per share.

Three Months Ended Twelve Months Ended


Earnings Segment Results GAAP Reconciliation

(Unaudited)

42

Interest/ Capital Common

Tax Other Financing Other Working Lease Pymts Securitization and Preferred

non-GAAP Sharing Payments Capital and Other Debt Pymts Dividends GAAP

Amount Operating as Operating as Investing as Financing as Financing as Financing Amount Description

Cash at year end 2013 18$ -$ -$ -$ -$ -$ -$ 18$ Cash at year end 2013

Sources

Operating (dep & amort $678) 1,813$

Other working capital (35) Net cash provided by

Sources 1,778$ (228)$ (244)$ (37)$ 10$ 59$ -$ 1,338$ operating activities

Uses

Interest and preferred dividends (226)$

Capital expenditures a (1,691)

Dividends/tax sharing to CMS (687)

Pension Contribution - - Net cash used in

Uses (2,604)$ 228$ 227$ 37$ -$ -$ 459$ (1,653)$ investing activities

Cash flow from

Cash flow (826)$ -$ (17)$ -$ 10$ 59$ 459$ (315)$ operating and

investing activities

Financing

Equity 315$

New Issues 878

Retirements (177)

Net short-term financing & other (137) - 17 Net cash provided

Financing 879$ -$ 17$ -$ (10)$ (59)$ (459)$ 368$ by financing activities

Net change in cash 53$ -$ -$ -$ -$ -$ -$ 53$ Net change in cash


a Includes cost of removal and capital leases

Description

Consumers Energy

2014 Cash Flow GAAP Reconciliation (in millions) (unaudited)

Reclassifications From Sources and Uses to Statement of Cash Flows

Presentation Sources and Uses Consolidated Statements of Cash Flows

43

Non Equity

non-GAAP Uses GAAP

Amount as Operating Other Amount Description

Cash at year end 2013 116$ -$ (116)$ -$ Cash at year end 2013

Sources

Consumers Energy dividends/tax sharing 687$

Enterprises 20 Net cash provided by

Sources 707$ (161)$ 43$ 589$ operating activities

Uses



Equity infusions (315)

Pension Contribution - Net cash used in

Uses (a) (458)$ 143$ (2)$ (317)$ investing activities

Cash flow from

Cash flow 249$ (18)$ 41$ 272$ operating and


Financing and dividends

New Issues 550$

Retirements (547)

Equity programs (DRP, continuous equity) 43

Net short-term financing & other (21) 18

Common dividend (295) Net cash used in

Financing (270)$ 18$ (20)$ (272)$ financing activities

Net change in cash (21)$ -$ 21$ -$ Net change in cash


(a) Includes other

Description


CMS Energy Parent

2014 Cash Flow GAAP Reconciliation (in millions) (unaudited)


44

Other Consumers Equity

Consumers CMS Parent Consolidated Common Dividend Infusions to Consolidated Statements of Cash Flows

Description Amount Amount Entities as Financing Consumers Amount Description

Cash at year end 2013 18$ -$ 154$ -$ -$ 172$ Cash at year end 2013

Net cash provided by 1,338$ 589$ (23)$ (457)$ -$ 1,447$ Net cash provided by

operating activities operating activities

Net cash used in (1,653) (317) (255) - 315 (1,910) Net cash used in

investing activities investing activities

Cash flow from (315)$ 272$ (278)$ (457)$ 315$ (463)$ Cash flow from

operating and operating and


Net cash provided by 368$ (272)$ 260$ 457$ (315)$ 498$ Net cash provided

financing activities by financing activities

Net change in cash 53$ -$ (18)$ -$ -$ 35$ Net change in cash


Consolidated CMS Energy

2014 Consolidation of Consumers Energy and CMS Energy Parent Statements of Cash Flow (in millions) (unaudited)

Eliminations/Reclassifications/Consolidation to

Arrive at the Consolidated Statement of Cash

Statements of Cash Flows

45

2014 2015 2016 2017 2018 2019

Consumers Operating Income + Depreciation & Amortization 1,813$ 1,885$ 1,955$ 2,081$ 2,194$ 2,358$

Enterprises Project Cash Flows 20 25 29 50 52 55

Gross Operating Cash Flow 1,833$ 1,910$ 1,983$ 2,131$ 2,246$ 2,413$

(386) (360) (583) (631) (646) (713)

Net cash provided by operating activities 1,447$ 1,550$ 1,400$ 1,500$ 1,600$ 1,700$

CMS Energy

Reconciliation of Gross Operating Cash Flow to GAAP Operating Activities

(unaudited)(mils)

Other operating activities including taxes, interest payments and

working capital

46

Interest/ Capital

Tax Other Financing Other Working Lease Pymts Securitization Common

non-GAAP Sharing Payments Capital and Other Debt Pymts Dividends GAAP

Amount Operating as Operating as Investing as Financing as Financing as Financing Amount Description


Sources

Operating (dep & amort $675) 1,885$

Other working capital (175) Net cash provided by

Sources 1,710$ 150$ (235)$ 44$ 23$ 74$ -$ 1,766$ operating activities

Uses


Capital expenditures a (1,585)

Dividends/tax sharing to CMS (315)

Pension Contribution - - Net cash used in

Uses (2,135)$ (150)$ 235$ (44)$ -$ -$ 465$ (1,629)$ investing activities

Cash flow from

Cash flow (425)$ -$ -$ -$ 23$ 74$ 465$ 137$ operating and


Financing

Equity 150$

New Issues 250

Retirements (50)

Net short-term financing & other 29 - - Net cash used in

Financing 379$ -$ -$ -$ (23)$ (74)$ (465)$ (183)$ financing activities

Net change in cash (46)$ -$ -$ -$ -$ -$ -$ (46)$ Net change in cash


a Includes cost of removal and capital leases

Description

Consumers Energy

2015 Forecasted Cash Flow GAAP Reconciliation (in millions) (unaudited)



47

Non Equity

non-GAAP Uses GAAP

Amount as Operating Other Amount Description


Sources

Consumers Energy dividends/tax sharing 315$

Enterprises 25 Net cash provided by

Sources 340$ (163)$ 90$ 267$ operating activities

Uses



Equity infusions (150)

Pension Contribution - Net cash used in

Uses (a) (295)$ 145$ -$ (150)$ investing activities

Cash flow from

Cash flow 45$ (18)$ 90$ 117$ operating and


Financing and dividends

New Issues 150$

Retirements -

Equity programs (DRP, continuous equity) 45

Net short-term financing & other 10 18

Common dividend (320) Net cash used in

Financing (115)$ 18$ (20)$ (117)$ financing activities

Net change in cash (70)$ -$ 70$ -$ Net change in cash


(a) Includes other

Description

CMS Energy Parent

2015 Forecasted Cash Flow GAAP Reconciliation (in millions) (unaudited)



48

Other Consumers Equity

Consumers CMS Parent Consolidated Common Dividend Infusions to Consolidated Statements of Cash Flows

Description Amount Amount Entities as Financing Consumers Amount Description


Net cash provided by 1,766$ 267$ (18)$ (465)$ -$ 1,550$ Net cash provided by

operating activities operating activities

Net cash used in (1,629) (150) (333) - 150 (1,962) Net cash used in


Cash flow from 137$ 117$ (351)$ (465)$ 150$ (412)$ Cash flow from

operating and operating and


Net cash used in (183)$ (117)$ 291$ 465$ (150)$ 306$ Net cash provided by

financing activities financing activities

Net change in cash (46)$ -$ (60)$ -$ -$ (106)$ Net change in cash


Consolidated CMS Energy

2015 Forecasted Consolidation of Consumers Energy and CMS Energy Parent Statements of Cash Flow (in millions) (unaudited)

Eliminations/Reclassifications/Consolidation to

Arrive at the Consolidated Statement of Cash

Statements of Cash Flows

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