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FORM 8-K
CURRENT REPORT
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) DECEMBER 6, 1999
COMMISSION REGISTRANT; STATE OF INCORPORATION; IRS EMPLOYER
FILE NUMBER ADDRESS; AND TELEPHONE NUMBER IDENTIFICATION NO
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1-9513 CMS ENERGY CORPORATION 38-2726431
(A MICHIGAN CORPORATION)
FAIRLANE PLAZA SOUTH, SUITE 1100
330 TOWN CENTER DRIVE
DEARBORN, MICHIGAN 48126
(313) 436-9261
1-5611 CONSUMERS ENERGY COMPANY 38-0442310
(A MICHIGAN CORPORATION)
212 WEST MICHIGAN AVENUE
JACKSON, MICHIGAN
(517) 788-1030
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ITEM 5. OTHER EVENTS.
CMS Energy Corporation announced today that its utility subsidiary,
Consumers Energy, has reached agreement with a broad coalition of Michigan
industrial and commercial customers, other utilities and independent power
producers to support specific legislation on electric restructuring in Michigan.
The legislation provides for customer choice of power supplies by
January 2002 and full recovery of stranded costs by utilities. It also provides
for a three-year rate freeze for all customers of the utility who choose to
remain with the utility as their electric supplier. As a result of Consumers
Energy's agreement with its customers on the legislation, ABATE (a coalition of
Michigan industrial and commercial customers) and Consumers Energy filed a
motion today that the Michigan Public Service Commission (MPSC) suspend an ABATE
electric rate complaint proceeding at the MPSC pending the enactment of the
proposed legislation which is expected to be considered during the first quarter
of next year.
Copies of the Company's press release announcing these developments, the
joint press release of the Michigan Chamber of Commerce and the Michigan
Manufacturers Association announcing the broad support for this legislation as
well as the joint motion of ABATE and Consumers Energy to suspend proceedings
pending before the MPSC are filed as exhibits to this report.
ITEM 7. EXHIBITS
(99)(a) CMS Energy press release dated December 6, 1999
(99)(b) Joint press release of the Michigan Chamber of Commerce and
the Michigan Manufacturers Association announcing the broad
support for proposed Michigan legislation on electric
restructuring
(99)(c) Joint motion of ABATE and Consumers Energy to suspend
proceedings before the Michigan Public Service Commission
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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.
CMS ENERGY CORPORATION
Dated: December 6, 1999 By: /s/ Alan M. Wright
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Alan M. Wright
Senior Vice President and
Chief Financial Officer
CONSUMERS ENERGY COMPANY
Dated: December 6, 1999 By:/s/ Alan M. Wright
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Alan M. Wright
Senior Vice President and
Chief Financial Officer
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INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
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(99)(a) - CMS Energy press release dated December 6, 1999
(99)(b) - Joint press release of the Michigan Chamber of Commerce and the
Michigan Manufacturers Association announcing the broad support
for proposed Michigan legislation on electric restructuring
(99)(c) - Joint motion of ABATE and Consumers Energy to suspend
proceedings before the Michigan Public Service Commission
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EXHIBIT (99)(a)
DEARBORN, Mich., December 6, 1999 -- CMS Energy Corporation (NYSE:CMS)
announced today that its utility subsidiary, Consumers Energy, has reached
agreement with a broad coalition of Michigan industrial and commercial
customers, other utilities and independent power producers to support specific
legislation on electric restructuring in Michigan.
The legislation provides for customer choice of power supplies by January
2002 and ensures full recovery of stranded costs by utilities. It also provides
for a three-year rate freeze for all customers of the utility who choose to
remain with the utility as their electric supplier. As a result of Consumers
Energy's agreement with its customers on the legislation, ABATE (a coalition of
Michigan industrial and commercial customers) and Consumers Energy today filed a
request that the Michigan Public Service Commission (MPSC) suspend an ABATE
electric rate complaint proceeding at the MPSC pending the enactment of the
proposed legislation which is expected to be considered during the first quarter
of next year.
The joint press release of the Michigan Chamber of Commerce and the
Michigan Manufacturers Association announcing the broad support for this
legislation is attached.
CMS Energy Corporation has annual sales of about $6 billion and assets of
about $14 billion throughout the U.S. and in 22 countries around the world with
businesses in electric and natural gas utility operations; independent power
production; natural gas pipelines, gathering, processing and storage; oil and
gas exploration and production; and energy marketing, services and trading.
# # #
For more information on CMS Energy, please visit our website at:
www.cmsenergy.com/
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EXHIBIT (99)(b)
NEWS RELEASE
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For Immediate Release For More Information, Contact:
December 2, 1999 Kevin Korpi, (517) 371-7673
Chuck Hadden, (517) 487-8550
MOMENTUM BUILDING FOR ELECTRIC RESTRUCTURING
LEGISLATION IN MICHIGAN, REPORT MICHIGAN
CHAMBER OF COMMERCE, MICHIGAN MANUFACTURERS
ASSOCIATION
JOB PROVIDERS STEP FORWARD TO URGE LEGISLATIVE ACTION
(LANSING, MICHIGAN) -- The Michigan Chamber of Commerce, Michigan Manufacturers
Association, a large diverse customer coalition (Citizens for Power &
Reliability), and the industrial group ABATE, strongly support introduction and
subsequent legislative approval on proposed electric restructuring legislation.
The group compliments the leadership of Senator Mat Dunaskiss, who recently
released draft legislation that provides an excellent framework for electric
competition. This legislative framework will benefit all of Michigan's citizens
with better service and more choices at lower cost.
"The new comprehensive proposal presented by Senator Dunaskiss
provides a truly historic opportunity to resolve the debate and move Michigan
forward to a new competitive era," said Jim Barrett, President and CEO of the
Michigan Chamber of Commerce. "This proposed legislation supports the recent
findings of an EPIC-MRA poll on Michigan that overwhelmingly shows residents and
businesses want legislation to allow customers to choose their electric
supplier."
In response to Senator Dunaskiss' call for comments on draft
legislation, more than 30 Michigan employers, small and large businesses,
manufacturers, trade organizations and utilities have indicated their support
for legislative action. "This proposal offers an opportunity to enact a
comprehensive, balanced and beneficial approach to implement competition and
improve Michigan's economic competitiveness," said John G. Thodis, President and
CEO of the Michigan Manufacturers Association.
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To date, 23 other states have taken steps to bring competition, along
with customer choice and enhanced reliability, to the electric marketplace.
"There is tremendous support in the business community for moving
forward," said Brent Stevenson, Regional Manager-Government Relations, Georgia
Pacific and co-chair of the Citizens for Power & Reliability. "We are pleased
with the growing interest on the part of the Michigan Legislature to address
this important issue in a constructive and comprehensive manner."
The growing list of Michigan employers and trade organizations who
support the introduction of electric restructuring legislation includes:
<TABLE>
<S> <C>
ABATE Mead
American Electric Power Michigan Chamber of Commerce*
Amway Michigan Electric Cooperative Assoc.
Associated Petroleum Industries of Michigan Michigan Electric & Gas Association
Champion International Corporation Michigan Grocers Association
Cleveland Cliffs, Inc. Michigan Independent Power Producers
Consumers Energy Michigan Manufacturers Association**
DaimlerChrysler Michigan Restaurant Association
Dow Chemical Michigan Retailers Association
Dow Corning National Steel
First Power LLC Nordic Electric
Ford Motor Company North Star Steel/Cargill
General Motors Corporation Packaging Corporation of America
Georgia Pacific Perrigo
Grand Rapids Area Chamber of Commerce PG& E Corporation
Guardian Primary Power
Lear Corporation Saginaw Chamber of Commerce
Marathon Ashland Petroleum LLC Spartan Stores
</TABLE>
*The Michigan Chamber of Commerce represents approximately 7,000 businesses,
local chambers of commerce, and trade associations. With members of every size
and type in all 83 Michigan counties, the Michigan Chamber represents a
broad-cross section of the state's economy.
**The Michigan Manufacturers Association represents 4,000 businesses and
corporations throughout the state, which collectively employ 90 percent of
Michigan's workforce.
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EXHIBIT 99(c)
STATE OF MICHIGAN
BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION
In the matter of the Association of )
Businesses Advocating Tariff Equity's )
Formal Complaint for the Reduction of ) Case No. U-11560
Consumers Energy Company's )
rates for the sale of electricity )
JOINT MOTION
OF
ASSOCIATION OF BUSINESSES ADVOCATING TARIFF EQUITY
AND
CONSUMERS ENERGY COMPANY
TO TEMPORARILY SUSPEND PROCEEDINGS
The Association of Businesses Advocating Tariff Equity ("ABATE") and
Consumers Energy Company ("Consumers Energy") jointly move for a temporary
suspension of the U-11560 proceeding. In support of this motion, ABATE and
Consumers Energy state as follows:
1. The U-11560 proceeding was initiated by the formal complaint of
ABATE against Consumers Energy.
2. Consumers Energy and some of the individual members of ABATE
participated in joint discussions which have been directed toward reaching a
comprehensive legislative resolution of issues related to the implementation of
electric utility industry restructuring. These discussions have resulted in the
preparation of proposed legislation which is supported by these ABATE members
and by Consumers Energy.
3. ABATE, its members and Consumers Energy wish to direct their
undivided attention and efforts for up to 120 days to achieve enactment of the
proposed industry restructuring legislation rather than proceeding with this
pending complaint case.
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Therefore, the moving parties jointly request that the U-11560 proceeding be
immediately suspended on the following terms:
(A) All further proceedings in this case should be suspended for up to
120 days. The movants agree that if there are any proposed amendments to the
agreed upon legislation, that the amendments must be mutually agreeable or both
parties will oppose such amendments. Further, if it is mutually agreed that
mutually agreeable legislation cannot be enacted within the time frame required
in this Motion, then these complaint proceedings shall be immediately resumed.
(B) If the electric industry restructuring legislation upon which the
movants have agreed, or similar restructuring legislation which ABATE
specifically supports, is enacted, the Movants will propose to the Commission,
based on the legislation enacted, the appropriate disposition for this
complaint.
(C) If legislation is not enacted within 120 days, unless the
proceedings have been resumed earlier based on a mutual request, the proceedings
in this case shall be promptly resumed within 7 days.
(D) Consumers Energy voluntarily agrees that, if the proceedings in
this case are resumed after 120 days or sooner, and a rate reduction is
subsequently ordered by the Commission, Consumers will voluntarily implement
such rate reduction back to a date 120 days before the date the rate reduction
would otherwise commence under the Commission's order, or the comparable period
equal to the length of the actual suspension. (e.g., if the period from the date
the Commission issues an order suspending proceedings in this case to the date
proceedings resume is actually 75 days, any rate reduction ultimately ordered by
the Commission would be voluntarily implemented by Consumers
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effective on a date 75 days prior to the date for the rate reduction provided
for in the Commission's order.
4. ABATE and Consumers Energy believe that granting this motion is
necessary for the success of the current efforts to enact comprehensive electric
industry restructuring legislation.
WHEREFORE, ABATE and Consumers Energy respectfully request that the
Commission grant this motion suspending Case No. U-11560 on the terms set forth
above.
Respectfully submitted,
ASSOCIATION OF BUSINESSES
ADVOCATING TARIFF EQUITY
By: /s/ Roderick S.Coy
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CONSUMERS ENERGY COMPANY
By: /s/ Jon R. Robinson
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Date: December 6, 1999
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