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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) OCTOBER 2, 2000
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.
On October 2, 2000, CMS Energy Corporation announced a financial plan
to strengthen its balance sheet while maintaining its forecasted earnings per
share for 2001. The Company intends to execute an initial public offering (IPO)
of up to 50 percent of its ownership in its oil and gas exploration and
production subsidiary, CMS Oil & Gas Company, in the first quarter of 2001. The
anticipated proceeds will be used to reduce Company debt and will supplement the
$1.4 billion asset sale program currently underway, of which almost $900 million
is completed. In addition, the Company intends to accelerate the issuance of
$300 million of CMS Energy common stock which had been planned for mid-year
2001.
In March 1999, Consumers Energy Company, a Company subsidiary, signed a
long-term power sales agreement to resell to PECO Energy Company its capacity
and energy purchases under the Power Purchase Agreement (PPA) between Consumers
and the Midland Cogeneration Venture Partnership until September 2007.
Implementation of the agreement was contingent upon regulatory treatment
satisfactory to Consumers. Since March 1999, Consumers engaged in proceedings
before the Michigan Public Service Commission (MPSC) to secure satisfactory
accounting and ratemaking approvals related to the PECO agreement. The last in a
series of MPSC orders was issued in August 2000 refusing to grant Consumers'
request. Consumers recently gave notice to PECO of its intention to terminate
this long-term agreement at the end of the year as contemplated under the terms
of the agreement. Due to uncertainties associated with electric industry
restructuring legislation in Michigan, Consumers and PECO had entered into an
interim arrangement for the sale of 125 MW of PPA capacity and associated energy
to PECO during 2000. The completion of the interim arrangement will not effect
the termination of the long-term agreement.
This document is neither an offer to sell nor an offer to buy any of these
securities. The offer is made only by a prospectus.
This document contains "forward-looking statements" that are subject to
risks and uncertainties. The words "anticipates", "believes", "estimates",
"expects", "intends", and "plans", and variations of such words and similar
expressions, are intended to identify forward looking statements. They should be
read in conjunction with "Forward-Looking Statements Cautionary Factors" in CMS
Energy's and Consumers' Form 10-K, Item 1 (incorporated by reference herein)
that discusses important factors that could cause CMS Energy's and Consumers'
results to differ materially from those anticipated in such statements.
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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: October 2, 2000 By: /s/ Alan M. Wright
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Alan M. Wright
Senior Vice President and
Chief Financial Officer
CONSUMERS ENERGY COMPANY
Dated: October 2, 2000 By: /s/ Alan M. Wright
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Alan M. Wright
Senior Vice President and
Chief Financial Officer
