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EXHIBIT 99(a)
[CMS ENERGY LOGO]
35TH EEI FINANCIAL CONFERENCE
OCTOBER 31, 2000
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[CMS ENERGY LOGO]
INVESTMENT CONSIDERATIONS
- LEADING REGIONAL DIVERSIFIED ENERGY COMPANY
- SUBSTANTIAL BASE OF STRATEGICALLY LOCATED U.S. ASSETS IN CENTRAL STATES
CORRIDOR
- ELECTRIC RESTRUCTURING COMPLETED WITH FULL RECOVERY OF STRANDED COSTS,
SECURITIZATION AND NO DIVESTITURE
- INTERNATIONAL PROGRAM FOCUSED ON SELECT HIGH GROWTH MARKETS
- CONTINUING STEPS TO IMPROVE CREDIT PROFILE AND MAXIMIZE SHAREHOLDER VALUE
-- Ongoing asset portfolio management program
-- Improving balance sheet through sales of common stock
- EPS GROWTH TARGET OF 10% PER YEAR
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[CMS ENERGY LOGO]
COMPANY OVERVIEW*
- TOTAL ASSETS $14.0 BILLION - TOTAL PTOI $1.0 BILLION
Utility Pipeline/Midstream Diversified Energy
- ASSETS $6.5 B - ASSETS $3.6 B - ASSETS $3.9 B
- PTOI $500 MM - PTOI $210 MM - PTOI $290 MM
CONSUMERS ELECTRIC GAS TRANSMISSION INDEPENDENT
POWER PRODUCTION
CONSUMERS GAS PANHANDLE OIL & GAS
EXPLORATION & PRODUCTION
FIELD SERVICES
ENERGY MARKETING, SERVICES
& TRADING
INTERNATIONAL
*ESTIMATED FOR YEAR END 2000 ENERGY DISTRIBUTION
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[CMS ENERGY LOGO]
KEY STRENGTHS
3.2 MILLION U.S. ELECTRIC AND GAS UTILITY CUSTOMERS
+ (10,800 MW NET GENERATION; 1,600 MW PROJECT PIPELINE)
+ (10,000 MILES INTERSTATE GAS PIPELINE; 220 BCF STORAGE)
+ (LARGEST OPERATING U.S. LNG FACILITY)
+ (E&P -1,490 BCFE RESERVES; 73 BCFE PRODUCTION)
+ (TRADING AND MARKETING)
+ (STRONG FOCUSED INTERNATIONAL PRESENCE)
+ (SIGNIFICANT EMPLOYEE STOCK OWNERSHIP)
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[CMS ENERGY LOGO]
STRATEGY FOR THE FUTURE
- PRIMARY FOCUS IS BUILDING REGIONAL INTEGRATED ENERGY BUSINESSES IN THE U.S.
AND SELECT WORLD GROWTH MARKETS WHERE CMS HAS BEEN SUCCESSFUL AND CURRENTLY
HAS A SIGNIFICANT COMPETITIVE POSITION
-- More geographic focus
-- Limited merchant power risk
-- More disciplined investment process
-- Divestment of assets outside focus areas
- STRONG EMPHASIS ON IMPROVING ROAS
-- Efficiency improvements
-- Higher asset utilization from marketing business
- EXECUTION OF:
-- Asset portfolio management program
-- Credit enhancement activities
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[CMS ENERGY LOGO]
U.S. ENERGY STATUS
- STRONG ENERGY COMMODITY PRICING
- THIN ELECTRIC RESERVE MARGINS AND GAS SUPPLY
- LIMITED INTERSTATE ELECTRIC TRANSMISSION CAPABILITY
- INCREASING DEMAND FOR FIRM PIPELINE TRANSPORTATION CONTRACTS
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[CMS ENERGY LOGO]
U.S. ENERGY ASSETS
[MAP]
CMS IS PURSUING A GAS DRIVEN INTEGRATED VALUE CHAIN STRATEGY FOCUSED ON
EXTRACTING MAXIMUM VALUE FROM ITS EXISTING AND EXPANDED ASSET BASE
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[CMS ENERGY LOGO]
U.S. GROWTH STRATEGIES
- EFFECTIVELY IMPLEMENT MICHIGAN ELECTRIC UTILITY RESTRUCTURING LEGISLATION
AND GAS UTILITY CUSTOMER CHOICE PROGRAM
- LEVERAGE GAS PIPELINE BUSINESS FOR GROWTH OPPORTUNITIES ACROSS CMS
BUSINESSES
- AGGRESSIVELY DEVELOP WEST TEXAS AND POWDER RIVER GAS RESERVES IN HIGHER GAS
PRICE ENVIRONMENT
- EXPAND RANGE OF CUSTOMER-RELATED SERVICES
-- Leverage 3.2 million customer base into new business opportunities
- GROW MARKETING, SERVICES AND TRADING ACTIVITIES TO OPTIMIZE AND LEVERAGE
U.S. GAS AND ELECTRIC ASSETS
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[CMS ENERGY LOGO]
EFFECTIVELY IMPLEMENT MICHIGAN
ELECTRIC RESTRUCTURING LEGISLATION
- MANAGE COSTS AND RISKS DURING RATE FREEZE/CAP PERIOD
-- 5% residential rate reduction implemented June 2000
-- Rate freeze through 2003; residential rate cap through 2005
- COLLECT FULL RECOVERY OF STRANDED COSTS
- SECURITIZE $469 MILLION OF QUALIFIED COSTS
-- MPSC Order received October 24, 2000
-- Provides offset to residential rate reduction on a prospective basis
- IMPLEMENT CUSTOMER CHOICE SMOOTHLY
-- Full customer choice in 2002
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[CMS ENERGY LOGO]
EXPANDED GAS CUSTOMER CHOICE PROGRAM
- MPSC ORDERS ISSUED OCTOBER 13 AND 24
-- Phase-in of customer choice
--- 600,000 customers eligible beginning April 1, 2001
--- 900,000 customers eligible by April 1, 2002
--- All customers eligible beginning April 1, 2003
-- Gas cost recovery returns to regulated pass-through of commodity costs
-- Forum to review further service unbundling
- APPROVAL GRANTED FOR REQUESTED BASE GAS ACCOUNTING RECLASSIFICATION
-- Mitigates effect of higher gas commodity prices
-- Eliminates need to recognize any further losses related to gas
commodity cost under-recoveries
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[CMS ENERGY LOGO]
LEVERAGE GAS PIPELINE -
NEW GENERATION MARKETS
-- 4,260 MW (630 MMcf/d or 11%) of
power plant load already committed to
Panhandle and Trunkline as of June 2000
[MAP]
-- Continue to expand CMS IPP business in
selected markets in the Central Corridor
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[CMS ENERGY LOGO]
LEVERAGE GAS PIPELINE -
MIDWEST MARKET EXPANSION
Guardian Pipeline [MAP]
-- Wisconsin Gas has signed a
10-year, 650MMcf/d contract Centennial Pipeline
-- Continue to market capacity -- Convert 720-miles of
Trunkline to a refined
-- Favorable FERC preliminary petroleum products
decision-certificate pipeline extending from
expected by January 2001 the U.S. Gulf Coast to
Illinois
-- In-Service-November 2002
-- Build 70-mile connection
from Beaumont, Texas to Longville,
Louisiana
-- Develop two million barrel
storage terminal in Illinois
-- FERC proceedings on course for
January 2002 operation
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[CMS ENERGY LOGO]
LEVERAGE GAS PIPELINE -
ACCESSING NEW LNG SOURCES
-- At forecasted U.S. gas prices, LNG imports will
increase into U.S.
-- Planned Atlantic Basin liquefaction projects [GRAPH]
provide adequate LNG supply
-- Lake Charles provides valuable gateway for long-
term LNG imports
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[CMS ENERGY LOGO]
LEVERAGE GAS PIPELINE -
ACCESSING NEW SUPPLY SOURCES
-- Strategic offshore pipeline
systems in the Gulf of Mexico
-- 900 Miles of gas and condensate [MAP]
pipelines
-- Combined capacity 2.5 Bcf/d
-- Access to new supply sources
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[CMS ENERGY LOGO]
AGGRESSIVELY DEVELOP U.S. GAS RESERVES
Wyoming -Powder River
-- MAXIMIZE CMS Basin (51% W.I.)
RESOURCES VIA
EXPLORATION AND -- Drilled 137 wells in 1999;
PRODUCTION, [MAP] 530 wells in 2000
INFRASTRUCTURE
DEVELOPMENT -- Potential net reserves of
AND MARKETING 67 Bcf
OPPORTUNITIES
-- Increase annual net gas
production from less than
1 Bcf in 1999 to 1.6 Bcf in 2000
-- Increase throughput on Fort
Union and Bighorn gas
gathering pipelines
WEST TEXAS-DEVONIAN AND SPRABERRY (90%-100% W.I.)
-- Secured additional 37,000 undeveloped leasehold acres
-- Potential net reserves of 600 Bcf
-- Drilled 15 wells in 1999; 37 wells in 2000
-- Increase annual net production from less than 1 Bcf of gas and 47
MBbl of oil in 1999 to 4 Bcf and 340 MBbl in 2000
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[CMS ENERGY LOGO]
INTERNATIONAL GROWTH - EXPLOIT SOUTH
AMERICAN OIL RESERVES
COLOMBIA-ABANICO FIELD [MAP]
(100% W.I.)
-- First two wells tested at a
combined rate of 581 Bopd,
currently completing third well
-- Gross reserve estimates range from
10 to 50 MMBbl
VENEZUELA-LAPALMA FIELD
-- Waiting on governmental permits to (43.75% W. I.)
begin production
-- First two wells producing at a
combined rate of 3,887 Bopd
-- Gross reserve estimates range from
40 to 150 MMBbl
-- Presently shooting 3-D seismic to
define development drilling program
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[CMS ENERGY LOGO]
INTERNATIONAL GROWTH - MIDDLE EAST STRATEGY
-- Build off Jorf Lasfar
and Al Taweelah success
by focusing on power generation [MAP]
and desalination as market entry
platform in Gulf region
privatizations
- 826 Net MW in operation
- 163 Net MW under construction
- 50 MIGD water desalination under development
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[CMS ENERGY LOGO]
INTERNATIONAL GROWTH - INDIA STRATEGY
-- Develop gas
infrastructure in
Southeast India to
support generation
asset growth
[MAP]
- 157 Net MW in operation
- 125 Net MW under construction
- 490 Net MW and 2.5 million
tonne/year LNG under development
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[CMS ENERGY LOGO]
STRONG BUSINESS AND FINANCIAL PROFILE
-- CMS ENERGY IS COMPOSED OF SOLID, GROWING AND PROFITABLE BUSINESSES
- OPERATIONAL GROWTH ACROSS THE VALUE CHAIN
- REVENUE GROWTH
- STRONG CASH FLOW
- IMPROVING CREDIT PROFILE
- SIGNIFICANT POST 2000 EARNINGS GROWTH POTENTIAL
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[CMS ENERGY LOGO]
CONTINUE ASSET PORTFOLIO MANAGEMENT PROGRAM
<TABLE>
<CAPTION>
Cash Add'l Debt
Proceeds Reduction(*) Total
----------- -------------- ----------
<S> <C> <C> <C>
Completed/Announced Sales
Bighorn Gathering System $ 65
CFLCL Brazil Distribution 143
Northern Michigan Oil & Gas 164
New Jersey Power Plant, Securities Sold and Other 203 182
Ecuador Oil & Gas 96
-------------------------------------------------------------------------------------------------------
Total Completed/Announced $671 $182 $853
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Likely New Sales
Additional Assets in
Australia, Jamaica, Philippines
and Other Areas
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Total Additional/New Sales $347 $200 $547
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Total Asset Sales $1,018 $382 $1,400
-------------------------------------------------------------------------------------------------------
Identified Alternative Assets $500
-------------------------------------------------------------------------------------------------------
</TABLE>
* Project debt consolidated on CMS balance sheet
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[CMS ENERGY LOGO]
IMPROVING CREDIT PROFILE -
COMMON STOCK ISSUANCE
-- CMS ENERGY COMMON STOCK OFFERING ON OCTOBER 17 OF 11 MILLION SHARES
(APPROXIMATELY $305 MILLION)
- Proceeds used to reduce debt
-- IPO OF CMS OIL & Gas will raise approximately $500 million
- Favorable environment to monetize ownership
- Sale of up to 50%
- Proceeds will be used to reduce debt
- Expect to complete in Q1 2001
-- EQUITY OFFERINGS SIGNIFICANTLY IMPROVE CMS ENERGY CREDIT PROFILE
- EBITDA/Interest coverage of approximately 3.3x in 2001
- Net Debt/Total Capitalization of approximately 63% in 2001
-- LIMITED EXECUTION RISK
- No MPSC or FERC approval necessary
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[CMS ENERGY LOGO]
Major Drivers For Earnings Growth
-- Divestiture of non-performing assets
-- Five major new power plants in next 24 months
-- New oil and gas production in Texas, Wyoming, S. America, W. Africa with
improved pricing
-- Growth in LNG cargoes and margins
-- New gathering, storage and pipeline volumes and margins
-- Expanded marketing activity to optimize value of U.S. asset base
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[CMS ENERGY LOGO]
<TABLE>
<CAPTION>
2000E 2005E
----- -----
<S> <C> <C> <C>
UTILITY 49% UTILITY 39%
DIVERSIFIED ENERGY - DOMESTIC 19% DIVERSIFIED ENERGY - DOMESTIC 20%
PIPELINE/MIDSTREAM 21% PIPELINE/MIDSTREAM 24%
DIVERSIFIED ENERGY - INTERNATIONAL 11% DIVERSIFIED ENERGY - INTERNATIONAL 17%
</TABLE>
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[CMS ENERGY LOGO]
INVESTMENT CONSIDERATIONS
-- Leading regional diversified energy company
-- Substantial base of strategically located U.S. assets in Central states
corridor
-- Electric restructuring completed with full recovery of stranded costs,
securitization and no divestiture
-- International program focused on select high growth markets
-- Continuing steps to improve credit profile and maximize shareholder
value
- Ongoing asset portfolio management program
- Improving balance sheet through sales of common stock
-- EPS growth target of 10% per year
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This document contains "forward-looking statements" within the meaning of the
safe-harbor provisions of the federal securities laws. These forward-looking
statements are subject to various factors which could cause our actual results
to differ materially from those anticipated in such statements. Please refer to
the various assumptions, risks and uncertainties discussed in our SEC filings.
The Company undertakes no obligation to update or revise any forward-looking
statements.
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[CMS ENERGY LOGO]
MAJOR NEW INVESTMENTS/DEVELOPMENT PROJECTS
<TABLE>
<CAPTION>
Est. Total CMS Acquisition/
------------------------------------------------------- Project Cost Ownership In-Service
Project Country $MM % Date
------- ------- ------------ --------- ------------
<S> <C> <C> <C> <C>
Sea Robin Pipeline United States 72 100% 1Q00
1 Bef/d
Takoradi T2 (Stage 1) Ghana 58 90% 1Q00
112 MW gas
Jorf Lasfar II Morocco 375 50% 2Q00
348 MW coal
TGM Pipeline Brazil 150 20% 2Q00
425 MMcf/d
Big Horn Pipeline Extension United States 19 51% 2Q00
33 miles: 225 MMcf/d
Al Taweelah A2 UAE 414 40% 3Q00
370 MW gas
Takoradi T2 (Stage 2a) Ghana 58 90% 3Q00
112 MW gas
Jorf Lasfar II Morocco 375 50% 4Q00
348 MW coal
Big Horn Pipeline Extension United States NA 51% 4Q00
55 miles; 225 Mcf/d
</TABLE>
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[CMS ENERGY LOGO]
MAJOR NEW INVESTMENTS/DEVELOPMENT PROJECTS (cont'd)
<TABLE>
<CAPTION>
Est. Total CMS Acquisition/
Project Cost Ownership In-Service
Project Country $MM % Date
------- ------------- ------------ --------- ------------
<S> <C> <C> <C> <C>
Dearborn Industrial Generation III United States 335 100% 2001
550 MW gas
AMPCO Methanol Equatorial
2.500 metric tons/day Guinea 400 54% 2001
Al Taweelah A2 United Arab
407 MW gas and Emirates 326 40% 2001
50 MMIG/d water
</TABLE>
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[CMS ENERGY LOGO]
MAJOR NEW INVESTMENTS/DEVELOPMENT PROJECTS (cont'd)
<TABLE>
<CAPTION>
Est. Total CMS Acquisition/
---------------------------------------------------Project Cost Ownership In-Service
Project Country $MM % Date
------- ------- ------------ --------- ------------
<S> <C> <C> <C> <C>
Centennial Pipeline United States NA 33% 2002
800 miles;
2 MMBbl storage terminal
Guardian Pipeline United States 230 33% 2002
750 MMcf/day
Neyveli
250 MW coal India 325 50% 2002
TakoradiT2 (Stage 2b)
112 MW gas Ghana 78 90% 2003
TIDCO
1,886 MW LNG
2.5 MM tonnes/year LNG India 1,500 26% 2003
Total: $4.8 Billion
Net CMS Ownership: $2.2 Billion
</TABLE>
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