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CMS ENERGY ACCEPTS SETTLEMENT AND ANNOUNCES EARNINGS

 DEARBORN, Mich., April 6 /PRNewswire/ -- CMS Energy Corporation (NYSE:CMS) and its principal unit, Consumers Power Company, announced today they have notified the Michigan Public Service Commission (MPSC) that they will accept the modified settlement of Midland Cogeneration Venture (MCV) power contract issues approved by the MPSC on March 31, 1993.
 In accepting the settlement, William T. McCormick Jr., chairman and chief executive officer of CMS Energy, said, "The MPSC and its staff are to be commended for arriving at a fair and constructive settlement in such an expeditious manner. The MPSC's order will greatly benefit the company's millions of Michigan customers, its lenders and investors."
 Effective Jan. 1, 1993, the modified settlement resolves the longstanding MCV contract disputes between the company and the MPSC in several regulatory and court proceedings. The settlement, together with a one-time write-off in the fourth quarter of 1992, substantially eliminates the earnings impact in 1993 and beyond of the undercollection in Consumers Power's rates for power purchased by the utility from the MCV.
 As a result of the settlement, CMS Energy has recorded a fourth- quarter 1992 loss of $372 million or $4.66 per share including the one- time after-tax write-off of $343 million associated with the settlement. This compares to a loss of $128 million or $1.61 per share in the fourth quarter of 1991. For the full year 1992, CMS Energy lost $297 million or $3.72 per share, compared to $276 million or $3.44 per share in 1991 which included an after-tax write-off of $294 million associated with the abandoned Midland nuclear plant assets.
 The after-tax write-off of $343 million associated with the modified settlement is somewhat larger than the $200 million estimated for the settlement when filed with the MPSC, primarily due to its revised provisions and the conservative assumption that the MCV capacity purchased by Consumers Power above the 915 MW approved by the MPSC will not be placed under long-term contract before 1998.
 In the MPSC's order on the settlement, Consumers Power was provided the option of either: 1) recovering a capacity charge of 3.62 cents/kWh for MCV power based on a maximum of 80 percent of the MCV's available contract capacity; or 2) recovering a capacity charge of 3.62 cents/kWh for actual power delivered up to a maximum of 88.7 percent of the contract capacity with Consumers Power dispatching MCV at high levels. Consumers Power has determined that it will select option two, and the one-time write-off previously discussed reflects that choice.
 Consumers Power has also decided to implement an accounting reorganization effective Dec. 31, 1992, which permits it to "zero out" its negative retained earnings balance by transferring equity from paid in capital. As earnings are realized, this permits the resumption in 1993 of dividends from Consumers Power to support CMS Energy's capital expenditures, debt reduction and common stock dividends.
 CMS Energy Corporation is a $3.1 billion (sales) diversified energy company with businesses engaged in the distribution of electricity and natural gas, interstate storage and transmission of natural gas, oil and gas exploration and production, independent power generation and utility services. CMS Energy Corporation's principal subsidiary is Consumers Power Company, Michigan's largest utility and the nation's fourth- largest gas and electric utility.
 CMS ENERGY CORPORATION
 Digest of Consolidated Earnings
 (Millions, Except Per-Share Amounts)
 1992 1991
 Three Months Ended Dec. 31
 Operating Revenue $ 843 $ 728
 Net (Loss) before Extraordinary Item $ (372) $ (114)
 Extraordinary Item - $ (14)
 Net (Loss) after Extraordinary Item $ (372) $ (128)
 Average Number of Common Shares
 Outstanding 80.0 79.8
 (Loss) per Average Common Share $(4.66) $(1.43)
 before Extraordinary Item
 (Loss) per Average Common Share
 from Extraordinary Item - $ (.18)
 (Loss) per Average Common Share $(4.66) $(1.61)
 Dividends Declared per Common Share $ .12 $ .12
 Twelve Months Ended Dec. 31
 Operating Revenue $3,073 $2,970
 Net (Loss) before Extraordinary Item $ (297) $ (262)
 Extraordinary Item - $ (14)
 Net (Loss) after Extraordinary Item $ (297) $ (276)
 Average Number of Common Shares
 Outstanding 79.9 80.0
 (Loss) per Average Common Share
 before Extraordinary Item $(3.72) $(3.26)
 (Loss) per Average Common Share
 from Extraordinary Item - $ (.18)
 (Loss) per Average Common Share $(3.72) $(3.44)
 Dividends Declared per Common Share $ .48 $ .48
 In the opinion of Management, the above amounts reflect all adjustments necessary to assure the fair presentation of the results of operations for the periods presented.
 -0- 4/6/93
 /CONTACT: Charles E. MacInnis, News and Information, Consumers Power Company, 517-788-0333/
 (CMS)


CO: CMS Energy Corporation; Consumers Power Company ST: Michigan IN: UTI SU: ERN

SM -- DE015 -- 3503 04/06/93 14:44 EDT
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Date:Apr 6, 1993
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