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<PAGE> 1
File No. 69-333
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-3A-2
STATEMENT BY HOLDING COMPANY CLAIMING EXEMPTION UNDER
RULE U-3A-2 FROM THE PROVISIONS OF THE PUBLIC UTILITY
HOLDING COMPANY ACT OF 1935
-------------------------------------
TO BE FILED ANNUALLY PRIOR TO MARCH 1
-------------------------------------
CMS ENERGY CORPORATION
(Name of Company)
hereby files with the Securities and Exchange Commission, pursuant to
Rule 2, its statement claiming exemption as a holding company from the
provisions of the Public Utility Holding Company Act of 1935, and
submits the following information:
February 27, 1998
<PAGE> 2
1. NAME, STATE OF ORGANIZATION, LOCATION AND NATURE OF
BUSINESS OF CLAIMANT AND EVERY SUBSIDIARY THEREOF, OTHER
THAN ANY EXEMPT WHOLESALE GENERATOR (EWG) OR FOREIGN
UTILITY COMPANY IN WHICH CLAIMANT DIRECTLY OR INDIRECTLY
HOLDS AN INTEREST.
------------------------------------------------------
(A) CMS ENERGY CORPORATION ("CMS ENERGY") WAS DULY
INCORPORATED UNDER THE LAWS OF THE STATE OF MICHIGAN IN 1987. CMS
ENERGY IS A $4.8 BILLION (SALES) ENERGY COMPANY WITH SUBSIDIARIES
ENGAGED IN ELECTRIC UTILITY OPERATIONS, GAS UTILITY OPERATIONS, OIL AND
GAS EXPLORATION AND PRODUCTION, THE ACQUISITION, DEVELOPMENT AND
OPERATION OF INDEPENDENT POWER PRODUCTION FACILITIES, ENERGY MARKETING
AND THE TRANSPORTATION, STORAGE AND MARKETING OF NATURAL GAS.
CMS Energy has three direct subsidiaries. The name, state of
organization and nature of business of CMS Energy's direct subsidiaries
are described below.
CMS ENTERPRISES COMPANY
A Michigan corporation which owns subsidiaries
engaged in the development, acquisition and
management of energy-related businesses and projects
worldwide.
CMS ENERGY FINANCE CORPORATION
A Michigan corporation originally formed to
be a limited partner in a limited
partnership that was to purchase
indebtedness issued by CMS Energy
Corporation. (Inactive)
CONSUMERS ENERGY COMPANY
A Michigan corporation engaged in the generation,
purchase, transmission, distribution and sale of
electricity, and in the purchase, storage,
transmission, distribution and sale of natural gas,
in the Lower Peninsula of the State of Michigan.
(B) CMS ENTERPRISES COMPANY HAS 12 DIRECT SUBSIDIARIES. THE
NAME, STATE OF ORGANIZATION AND NATURE OF BUSINESS OF EACH SUBSIDIARY
AND THEIR SUBSIDIARIES ARE DESCRIBED BELOW:
CMS CAPITAL CORP.
A Michigan corporation formed to assist in securing
financing for CMS Energy Corporation and its
subsidiaries. CMS Capital Corp. has one subsidiary:
CMS Capital Financial Services, Inc.
A Michigan corporation formed for the
purpose of making loans to parties in
connection with the purchase of goods
or services marketed by affiliates of
CMS Capital Financial Services, Inc.
CMS COMERCIALIZADORA DE ENERGIA S.A. (99%)
An Argentine company engaged in gas and
electric marketing operations in Argentina.
CMS ELECTRIC AND GAS COMPANY
A Michigan corporation involved in purchasing,
investing and/or operating international gas and
electric distribution systems worldwide. CMS
Electric and Gas Company has three subsidiaries:
CMS Brazil Energia Ltda., (99%)
A Brazil company involved in investing in
gas and electric distribution systems in
Brazil.
CMS Entre Rios Distribution Company
A Michigan corporation involved in
investing in gas and electric distribution
systems in Argentina.
Inversora en Distribucion de Entre Rios S.A. (40%)
An Argentine company involved in investing
in electric distribution facilities.
CMS ENERGY ASIA PRIVATE LIMITED
A Singapore corporation distribution of electricity
in Asia and the Pacific Rim.
<PAGE> 3
CMS GAS TRANSMISSION AND STORAGE COMPANY
A Michigan corporation organized to engage in the
transmission, storage and processing of natural gas.
CMS Gas Transmission and Storage Company has 11
direct subsidiaries:
Cherokee Gas Processing, L.L.C. (82% member)
An Oklahoma limited liability company formed
to acquire the Lucien gathering system
located near Enid, Oklahoma.
CMS Antrim Gas Company
A Michigan corporation formed to design,
construct and operate the Central Carbon Dioxide
Removal Plant in Otsego County, Michigan.
CMS Gas Argentina Company
A Cayman Islands company with an equity interest
in Transportadora de Gas del Norte S.A., an
Argentine company, which provides natural
gas transmission services to the northern
and central parts of Argentina.
- Transportadora de Gas del Norte
S.A.(TGN), an Argentine company (25%).
CMS Gas Transmission del Sur Company
A Cayman Islands company which owns 99% of
Compania de Inversiones CMS Energy - Chile
Limitada, a Chilean limited liability company,
which is an owner in a pipeline and power
generation project located in Northern Chile
and Northern Argentina and 50% of Gasoducto
Cuenca Noroeste Limitada.
- Compania de Inversiones CMS Energy Chile
Limitada , a Chile company (99%).
- Administradora Proyecto Atacama S.A.
(50%)
- Gasoducto Atacama Compania
Limitada (50%)
- Nor Oeste Pacifico Generacion de Energia
Limitada (50%)
- CMS Gas Transmission of Australia
Holdings Company
- CMS Gas Transmission of Australia
- CMS Gas Transmission of Australia
Trust
- Gasoducto Cuenca Noroeste Limitada (50%)
- ENERGEX CO (24%)
CMS Grands Lacs Holding Company
A Michigan corporation involved as a General
Partner in the Grands Lacs Limited Partnership,
a Michigan limited partnership.
CMS Jackson Pipeline Company
A Michigan corporation involved as a General
Partner in Jackson Pipeline Company, a
Michigan general partnership.
CMS Marysville Gas Liquids Company
A Michigan corporation formed to acquire
interests in Marysville Fractionation
Partnership and in St. Clair Underground
Storage Partnership.
CMS Saginaw Bay Company
A Michigan corporation involved as a General
Partner in the Saginaw Bay Area Limited
Partnership, a Michigan limited partnership.
CMS Saginaw Bay Lateral Company
A Michigan corporation involved as a
Limited Partner in the Saginaw Bay Lateral
Limited Partnership, a Michigan limited
partnership.
Nitrotec Corporation (50%)
A Delaware corporation formed to invest in
plants that extract helium from natural gas.
Petal Gas Storage Company
A Delaware corporation providing a high
deliverability "peaking" natural gas
storage cavern with a capacity of 3.2
billion cubic feet of natural gas.
CMS GENERATION CO.
A Michigan corporation engaged in the development of
and investment in cogeneration and other independent
power generation projects both domestic and foreign
and has 31 direct subsidiaries:
CMS Centrales Termicas S.A. (99%)
An Argentine company.
CMS Generation Altoona Company
A Michigan corporation involved as a
General Partner in the Altoona Cogeneration
Partners Limited Partnership which was
formed to develop, construct, own, operate
and maintain a bituminous coal, bituminous
coal waste or other solid fuel-burning
facility. (Inactive)
<PAGE> 4
CMS Generation Chateaugay Company
A Michigan corporation involved as a
General Partner in KES Chateaugay, L.P., a
limited partnership which is involved in
the ownership and peration of a 17 megawatt
(net) wood-fired power plant near
Chateaugay, New York.
CMS Generation Filer City, Inc.
A Michigan corporation involved as a
General Partner in the T.E.S. Filer City
Station Limited Partnership, a limited
partnership which is the owner of the 54
megawatt (net) wood chip and coal-fired
electric generating station in Filer City,
Michigan.
CMS Generation Filer City Operating Company
A Michigan corporation formed to operate a
coal and wood waste-fueled power plant near
Filer City, Michigan owned by the T.E.S.
Filer City Station Limited Partnership.
CMS Generation Genesee Company
A Michigan corporation involved as a
General Partner in the Genesee Power
Station Limited Partnership which owns and
operates a 35 megawatt (net) waste
wood-fired electric generating facility
located in Genesee County, Michigan.
CMS Generation GP Company
A Michigan corporation involved as a
General Partner in the development of
various cogeneration projects.
CMS Generation Grayling Company
A Michigan corporation involved as a
General Partner in Grayling Generating
Station Limited Partnership which owns a 36
megawatt (net) waste-wood fueled power
plant in Grayling, Michigan. Grayling
Generating Station Limited Partnership owns
GGS Holdings Company, a Michigan
corporation, which is General Partner in
AJD Forest Products Limited Partnership that
operates a sawmill adjacent to the Grayling
Generating Station and also supplies waste
wood fuel to the project.
CMS Generation Grayling Holdings Company
A Michigan corporation involved as a Limited
Partner in Grayling Generating Station
Limited Partnership.
CMS Generation Holdings Company
A Michigan corporation involved as a
Limited Partner in various partnerships and
in the following companies:
- GPS Newco, L.L.C., a Kansas
limited liability company (50% member)
- McCook Cogeneration Station,
L.L.C., a Michigan limited
liability company (50% member)
- Metro East, L.L.C., a
Michigan limited liability
company (50% member)
- Moose River Properties,
Inc., a Delaware corporation
(50%)
CMS Generation Honey Lake Company
A Michigan corporation with a General
Partnership interest and a Limited
Partnership interest in HL Power Company, a
California limited partnership which uses
waste wood and geothermal fluid to generate
a 30 megawatt (net) electric generating
station in Lassan County, California. Also
involved as General Partner in Honey Lake
Energy I LP, and Honey Lake Energy II LP,
both Michigan limited partnerships formed
to own limited partnership interests in HL
Power Company.
CMS Generation Investment Company I
A Cayman Islands company involved as a
holding company for CMS Generation overseas
investments and has thirteen (13) direct
subsidiaries that engage in the
construction, ownership or operation of
various power projects in the Philippines,
India, Morroco, Thailand and Australia:
- CMS Generation Ceara,
L.L.C., a Michigan limited
liability company
- CMS Generation Jegurupadu I Limited
Duration Company, a Cayman Islands
company (99%)
- Jegurupadu O&M Company Mauritius, a
Mauritius company (50%)
- CMS Generation Jegurupadu II Limited
Duration Company, a Cayman Islands
company (99%)
- Jegurupadu O&M Company
Mauritius, a Mauritius company (50%)
- CMS Generation Jorf Lasfar I
Limited Duration Company, a Cayman
Islands company (99%)
- Jorf Lasfar I HB (50%)
- Jorf Lasfar Power
Energy HB (50%)
- Jorf Lasfar
Handelsbolag (50%)
<PAGE> 5
- CMS Generation Jorf Lasfar II Limited
Duration Company, a Cayman Islands
company (99%)
- Jorf Lasfar I HB
(50%)
- Jorf Lasfar Power
Energy HB (50%)
- Jorf Lasfar
Handelsbolag (50%)
- CMS Generation Jorf Lasfar
III Limited Duration
Company, a Cayman Islands
company (50%)
- Jorf Lasfar
Operations
Handelsbolag
- CMS Generation Loy Yang
Holdings 1 Ltd., a Cayman
Islands company
- Horizon Energy Holdings
Ltd.
- Loy Yang Power Management Pty
Ltd (25%)
- Loy Yang Power Investments Pty
Ltd (25%)
- CMS Generation Loy Yang
Holdings 2 Ltd.,
a Cayman Islands company
- CMS Generation Horizon Energy
Holdings, Ltd.
- Loy Yang Power Management Pty
Ltd (25%)
- Loy Yang Power Investments Pty
Ltd (25%)
- CMS Generation Yallourn
Holdings 1 Ltd.,
a Cayman Islands company (99%)
- CMS Generation Yallourn Limited
Duration Company (50%)
- CMS Generation Yallourn
Holdings 2 Ltd., a Cayman
Islands company (99%)
- CMS Generation Yallourn II Limited
Duration Company (50%)
- Vic Energy No.
1 Pty. Ltd.
(50%)
- Vic Energy No.
2 Pty. Ltd.
(50%)
- CMS Operation & Maintenance Company, a
Mauritius company (50%)
- Monetize Limited, a
Mauritius company
- GMR Vasavi Power Corporation
Private Limited, an India
company (49%)
CMS Generation Investment Company II
A Cayman Islands company engaged as a
holding company for 1% ownership interests
in the companies described above as being
owned 99% by CMS Generation Investment
Company I, in addition to the companies
listed below: - CMS Generation Yallourn
Limited Duration Company, a
Cayman Islands company (50%)
- CMS Generation Yallourn II
Limited Duration Company, a
Cayman Islands company (50%)
- CMS Operation & Maintenance Company, a
Mauritius company (50%)
CMS Generation Investment Company III
A Cayman Islands company engaged to
facilitate the construction, ownership and
operation of the GVK Industries Project in
Jegurupadu, Andhra Pratesh, India of a
natural gas/liquid fuel combined cycle
plant 235 MW ("GVK") and has one direct
subsidiary with an ownership interest in
GVK.
- Jegurupadu CMS Generation Company Ltd.,
a Mauritius company
CMS Generation Lyonsdale Company
A Michigan corporation involved as a
General Partner in the Lyonsdale Energy
Limited Partnership which owns and operates
a 19 megawatt (net) waste wood-fired
electric generating facility in Lyonsdale,
New York.
CMS Generation Montreal Company
A Michigan corporation involved as a General
Partner in Secure Wood Chips LP, a Canadian
limited partnership, to own and operate a waste
wood recovery facility in the greater Montreal,
Quebec, Canada area.
CMS Generation Mon Valley Company
A Michigan corporation involved as General
Partner in the Mon Valley Energy Limited
Partnership formed to develop, construct,
finance and operate the Mon Valley Project,
an 80 megawatt (net) coal fired
cogeneration plant in Pennsylvania.
CMS Generation Operating Company
A Michigan corporation involved in the
operation of various power plants including
Genesee, Grayling, Modesto and Exeter.
CMS Generation Recycling Company
A Michigan corporation involved as a member
of Mid-Michigan Recycling, LC, a Michigan
limited liability company, formed to supply
waste wood fuel for the Genesee Power
Station Limited Partnership.
CMS Generation S.A. (99%)
An Argentine company formed to carry out on
its own account or that of third parties
investments in
<PAGE> 6
energy-related businesses
located primarily in South America.
- Hidroinvest S.A., an
Argentine company (25%)
CMS International Operating Company
A Cayman Islands corporation which owns and
controls project Operating and Maintenance
companies.
- CMS Generation Jorf Lasfar III Limited
Duration Company (50%)
- Jorf Lasfar Operations Handelsbolag
(99%)
CMS Resource Development Company
A Michigan corporation that employs
ex-patriot U.S. citizens and others working
on various overseas projects.
Exeter Management Company (50%)
A Connecticut corporation involved as a
General Partner in the Exeter Energy
Limited Partnership which owns and operates
a 26 megawatt (net) tire-burning facility
in Sterling, Connecticut.
HYDRA-CO Enterprises, Inc.
A New York corporation engaged in the ownership
and/or operation, by itself or with others, of
one or more cogeneration, small hydro or
alternate energy production facilities through
partnership interests and ownership of
domestic corporations. HYDRA-CO Enterprises,
Inc. directly owns twelve (12) domestic
corporations that are involved in the
development, ownership, management or
operation of independent power projects
located in seven states and in Jamaica:
- CMS Generation Operating Company II,
Inc., a New York corporation
- HCO-Jamaica, Inc., a New York corpo-
ration,
- HCE-Appomattox, Inc., a New York corpo-
ration,
- HCE-Biopower, Inc., a New York corpo-
ration,
- HCE-Hazleton, Inc., a New York corpo-
ration,
- HCE-Hudson, Inc., a New York corpo-
ration,
- HCE-Imperial Valley, Inc., a New York
corporation,
- HCE-Jamaica Development, Inc., a New
York corporation,
- HCE-Lakewood, Inc., a New York corpo-
ration,
- HCE-Rockfort Diesel, Inc., a New York
corporation,
- HYDRA-CO Generation Inc., a New York
corporation,
- Lakewood Project Management, Inc., a New
York corporation,
- New Bern Energy Recovery, Inc., a
Delaware corporation.
McCook Cogeneration Station, L.L.C. (50% member)
A Michigan limited liability company formed to
develop and own a 40 megawatt (net) waste
wood fueled electric generating facility
located in Cook County, Illinois.
McCook Waste Wood Recovery Facility, L.L.C. (50%
member)
A Michigan limited liability company formed
to develop and own a waste wood recycling
and processing facility where waste wood
will be received, manually and mechanically
separated and then recycled or processed for
use at McCook Cogeneration Station, L.L.C.
Metro East, L.L.C. (50% member)
A Michigan limited liability company formed
to develop and own a 60 megawatt (net) waste
wood and waste coal fueled electric
generating facility located in the City of
Madison, Illinois.
Mid-Michigan Recycling, L.C.
A Michigan limited liability company
involved in supplying waste wood fuel for
the Genesee Power Station Limited
Partnership.
Oxford Tire Recycling, Inc.
A Delaware corporation engaged in tire
shredding, tire collection, tire disposal
and related business activities.
Oxford Tire Recycling of Massachusetts, Inc.
A Delaware corporation engaged in waste tire
collection, shredding and storage, the sale
of used and shredded tires, and related
business activities.
Oxford Tire Supply, Inc.
A Delaware corporation engaged in trucking
and hauling used scrap tires and sorting and
grading tires for resale.
CMS LAKE MUSKEGON COMPANY
A Michigan corporation formed to develop land located
in the City of Muskegon, Michigan.
CMS LAND COMPANY
A Michigan corporation formed to act as a repository
for any unused real property formerly owned by
Consumers Power
<PAGE> 7
and hold the same for possible non-utility
development and has one subsidiary:
Bay Harbor Company, L.L.C.
A Michigan limited liability company which
is the owner and developer of Bay Harbor, a
real estate development. (50% member)
CMS MARKETING, SERVICES AND TRADING COMPANY
A Michigan corporation involved in providing gas,
electric, oil and coal marketing, risk management
and energy management services.
CMS MST Engineering Company A Michigan
corporation formed to provide professional
engineering services which includes system
engineering design and energy consulting.
CMS Texon Company
A Michigan corporation involved as a general
partner in Texon, L.P., a Texas limited
partnership engaged in transporting,
processing and marketing of crude oil and
natural gas liquids and services related
thereto.
CMS NOMECO OIL & GAS CO.
A Michigan corporation engaged in the exploration,
development, acquisition and production of oil and
natural gas in the U.S. and in foreign countries
through partnership interests and ownership of
domestic corporations and foreign companies. CMS
NOMECO Oil & Gas Co. directly owns 13 direct
subsidiaries that are either domestic corporations or
foreign companies:
CMS NOMECO Colombia Oil Company
A Michigan corporation engaged in the exploration and
production of oil and natural gas in Colombia.
CMS NOMECO EG Oil & Gas Co.
A Michigan corporation engaged in the exploration and
production of oil and natural gas in Equatorial
Guinea.
CMS NOMECO Holdings Ltd.
A Cayman Islands company engaged as a
holding company for 1% ownership interests
in the Cayman Island limited duration
companies described below as subsidiaries of
CMS NOMECO International, Ltd.
CMS NOMECO International, Ltd.
A Cayman Islands company engaged as a holding
company for six (6) subsidiaries that are Cayman
Island limited duration companies that principally
engage in the exploration and production of
oil and natural gas in South America and
West Africa:
- CMS NOMECO Alba LDC (99%)
- CMS NOMECO Argentina LDC (99%)
- CMS NOMECO Congo, LDC (99%)
- CMS NOMECO E.G. LDC (99%)
- CMS NOMECO Ecuador LDC (99%)
- CMS NOMECO Venezuela LDC (99%)
CMS NOMECO International, Inc.
A Texas corporation engaged as a holding
company for six subsidiaries that engage in
the exploration and production of oil and
natural gas in Africa and the Middle East:
- CMS NOMECO International
Cameroon, Inc., a Texas
corporation
- CMS NOMECO International Congo Holdings,
Inc., a Texas corporation
- CMS NOMECO Congo, Inc., a Delaware
corporation
- CMS NOMECO International E.G., Inc., a
Texas corporation
- CMS NOMECO International Transportation,
Inc., a Texas Corporation
- CMS NOMECO International Tunisia, Inc.,
a Texas Corporation
- CMS NOMECO Cameroon, Ltd., a Cayman
Islands company
CMS NOMECO Peru Company
A Michigan corporation formed to pursue oil
and natural gas exploration and production
opportunities in Peru.
CMS NOMECO Pipeline Company A Michigan
corporation formed to hold ownership
interests in various natural gas pipelines
located in Michigan.
<PAGE> 8
CMS NOMECO Services Company
A Michigan corporation formed for the
purpose of pursuing oil marketing
opportunities.
Explotaciones CMS NOMECO, Inc.
A Delaware corporation engaged in the
exploration and production of
oil and natural gas in Colombia.
NOMECO China Oil Co.
A Michigan corporation formed to pursue oil
and natural gas exploration and production
opportunities in China.
NOMECO Ecuador Oil Company
A Michigan corporation engaged in the
exploration and production of oil and natural
gas in Ecuador.
NOMECO Thailand Oil Company
A Michigan corporation formed to pursue oil
and natural gas exploration and production
opportunities in Thailand.
Terra Energy, Ltd.
A Michigan corporation engaged in the
exploration and production of natural gas
in Michigan. Terra Energy Ltd. has three
subsidiaries:
- Energy Acquisition Operating Corpora-
tion, a Michigan corporation formed to
provide natural gas transportation
services
- Kristen Corporation, a Michigan corpo-
ration formed to provide natural gas
marketing and transportation services
- Terra Pipeline Company, a Michigan
corporation engaged in the collection
and distribution of certain revenues
related to the production of oil and gas
CMS UTILITY SERVICES, INC.
A Michigan corporation engaged in providing
utility-related products and credit management
services. CMS Utility Services, Inc. has one
subsidiary:
CMS A/R Services, Inc. A Michigan
corporation engaged in utility debt
collections and accounts receivable
management services.
MONARCH MANAGEMENT COMPANY
A Michigan corporation which houses several
investments whose principal business is the
provision of services to energy and other
regulated entities. Monarch Management Company
has one subsidiary:
(C) THE CONSOLIDATED OPERATIONS OF CONSUMERS ENERGY COMPANY
("CONSUMERS") ACCOUNT FOR THE MAJOR SHARE OF CMS ENERGY'S TOTAL ASSETS,
REVENUES AND INCOME. CONSUMERS HAS EIGHT SUBSIDIARIES. THE NAME, STATE
OF ORGANIZATION AND NATURE OF BUSINESS OF CONSUMERS' SUBSIDIARIES ARE
DESCRIBED BELOW:
CMS Engineering CO.
A Michigan corporation engaged in offering design,
engineering, project management and related
construction services to natural gas utilities,
natural gas exploration and production companies, and
other energy businesses.
CMS MIDLAND HOLDINGS COMPANY
A Michigan corporation involved as a Limited Partner
in the First Midland Limited Partnership, a Delaware
limited partnership, a partnership that leases assets
to the Midland Cogeneration Venture Limited
Partnership, a Michigan limited
partnership.
CMS MIDLAND, INC.
A Michigan corporation engaged as a General Partner
in the Midland Cogeneration Venture Limited
Partnership, a Michigan limited
partnership.
CONSUMERS ENERGYGUARD SERVICES, INC. A Michigan corporation
formed for the purpose of marketing EnergyGuard, a
residential bill payment insurance product to
Consumers' residential customers.
ES SERVICES COMPANY
A Michigan corporation formed for the purpose of
offering design, engineering, project management and
related services primarily to electric utilities and
generation facilities.
<PAGE> 9
HURON HYDROCARBONS, INC.
A Michigan corporation involved with others to use
the expanded capacity of the underground caverns at
the Marysville Gas Reforming Plant
located in Marysville, Michigan for commercial
storage of liquid hydrocarbons and to use certain
hydrocarbon fractionation facilities at the plant.
MEC DEVELOPMENT CORP.
A Michigan corporation which previously held assets
transferred to and holder of certain bonds issued by
the Midland Cogeneration Venture Limited Partnership,
a Michigan limited
partnership.
MICHIGAN GAS STORAGE COMPANY
A Michigan corporation and a natural gas company
within the meaning of the Natural Gas Act engaged in
the interstate transportation and storage of gas for
a number of customers including Consumers.
2. a brief description of the properties of claimant and each of
its subsidiary public utility companies used for the generation, transmission
and distribution of electric energy for sale, or for the production,
transmission and distribution of natural or manufactured gas, indicating the
location of principal generating plants, transmission lines, producing fields,
gas manufacturing plants, and electric and gas distribution facilities,
including all such properties which are outside the state in which claimant and
its subsidiaries are organized and all transmission or pipelines which deliver
or receive electric energy or gas at the borders of such state.
- ----------------------------------------------------
(a) Claimant has no directly owned properties used for such
purposes.
(b) Consumers is the only subsidiary of claimant which is a
public utility. its property and facilities used for the
above-described purposes are located within the state of michigan and
are described below.
(1) Electric Properties
Consumers' electric generation is supplied by the
following plants:
<TABLE>
<CAPTION>
1997 SUMMER NET 1997 NET
DEMONSTRATED GENERATION
NAME AND LOCATION CAPABILITY (THOUSANDS OF
(MICHIGAN) (KILOWATTS) KILOWATT-HOURS)
<S> <C> <C>
Coal Generation
J H Campbell - West Olive 1,346,100(A) 8,153,697
D E Karn - Essexville 515,000 3,004,398
B C Cobb - Muskegon 296,000 1,590,996
J R Whiting - Erie 310,000 1,898,773
J C Weadock - Essexville 310,000 1,778,698
--------- ----------
Total 2,777,100 16,426,562
--------- ----------
Oil/Gas Generation
D E Karn - Essexville 1,276,000 314,635
Ludington Pumped Storage 954,700(B) (476,535)(C)
Nuclear Generation
Palisades - South Haven 762,000 5,776,398
Big Rock Point - Charlevoix (D) 67,000 193,708
---------- ----------
Total 829,000 5,970,106
---------- ----------
Gas/Oil Combustion Turbine
Generation 345,000 23,231
---------- ----------
Hydro Generation 73,500 466,991
---------- ----------
Total Owned Generation 6,255,300 22,724,990
========== ==========
</TABLE>
(A) Represents Consumers' share of the capacity of the Campbell Plant Unit 3
net of 6.69% (ownership interests of the Michigan Public Power Agency
and Wolverine Power Supply Cooperative, Inc.).
<PAGE> 10
(B) Represents Consumers' share of the capacity of the Ludington Pumped
Storage Plant. Consumers and The Detroit Edison Company ("Detroit
Edison") have 51% and 49% undivided ownership, respectively, in the
plant, and the capacity of the plant is shared accordingly.
(C) Represents Consumers' share of net pumped storage generation. This
facility electrically pumps water during off-peak hours for storage to
later generate electricity during peak-demand hours.
(D) Big Rock Point was retired in August 1997.
Electric transmission, subtransmission and distribution
lines are located on or under public highways, streets, alleys or
lands, except where they are located on or under easements or
other rights. The transmission system consists of 4,446
structural miles of overhead lines. The subtransmission system
consists of 4,158 structural miles and 16 subsurface miles of
underground lines. The distribution system consists of 52,476
structural miles of overhead lines and 6,079 subsurface miles of
underground lines.
Consumers owns substations having an aggregate transformer
capacity of 38,287,140 kilovolt amperes.
Consumers is interconnected with certain Michigan and
neighboring utilities. Consumers and Detroit Edison have formed
the Michigan Electric Coordinated Systems ("MECS") to facilitate
the coordinated planning and operation of their electric systems.
MECS is interconnected with electric systems in Indiana, Ohio and
Ontario, Canada.1
Consumers owns or connects with electric transmission
lines which deliver electric energy at or near the Michigan state
border to:
(i) Indiana & Michigan Electric Company at the
following interconnection points: Palisades-Cook No. 1,
Palisades-Cook No. 2, Argenta-Robinson Park and
Argenta-Twin Branch; and
(ii) Northern Indiana Public Service Company at
the following interconnection point: Barton Lake-Batavia.
(2) Gas Properties
As of December 31, 1997, Consumers' gas
properties, all located in Michigan, included a gas
distribution and transmission system, six compressor
stations located at Consumers' storage fields and along
the gas transmission lines, 11 storage fields, and the
Marysville Gas Reforming Plant. The Marysville Gas
Reforming Plant, located in Marysville, Michigan, is a
fractionation facility and stores liquid hydrocarbons for
third parties in its underground caverns.
Consumers' gas distribution and transmission
systems consist of 22,309 miles of distribution mains and
1,057 miles of transmission lines, throughout the Lower
Peninsula of Michigan. Consumers owns and operates six
compressor stations with a total of 133,560 installed
horsepower.
Michigan Gas Storage Company ("MGSC") owns and
operates a gas transmission system, two compressor
stations, and three storage fields, all located in
Michigan.
Consumers receives natural gas for its local
distribution system through interconnection facilities
located in Michigan and at the Michigan State border.
Consumers received natural gas at the Michigan State
border pursuant to a sales contract with Trunkline Gas
Company ("Trunkline"). The terminus of Trunkline's
pipeline at the Michigan State border is near Elkhart,
Indiana at Township 38, Range 7, Section 11, Elkhart
County, Indiana. The terminus of Consumers' pipeline at
the Michigan State border is near White Pigeon, Michigan
at Township 8 South, Range 12 West, Section 23, St. Joseph
County, Michigan.
3. THE FOLLOWING INFORMATION FOR THE LAST CALENDAR YEAR WITH RESPECT TO
CLAIMANT AND EACH OF ITS SUBSIDIARY PUBLIC UTILITY COMPANIES:
---------------------------------------------------------
(A) NUMBER OF KWH OF ELECTRIC ENERGY SOLD (AT RETAIL OR
WHOLESALE), AND MCF OF NATURAL OR MANUFACTURED GAS DISTRIBUTED AT
RETAIL.
<PAGE> 11
Consumers sold 37,880,713,000 Kwh of electric energy for
the year ended December 31, 1997 and sold 249,491,054 Mcf of natural gas
at retail during the same period. Claimant did not sell electric energy
or natural or manufactured gas distributed at retail.
(B) NUMBER OF KWH OF ELECTRIC ENERGY AND MCF OF NATURAL OR
MANUFACTURED GAS DISTRIBUTED AT RETAIL OUTSIDE THE STATE OF MICHIGAN.
None.
(C) NUMBER OF KWH OF ELECTRIC ENERGY AND MCF OF NATURAL OR
MANUFACTURED GAS SOLD AT WHOLESALE OUTSIDE THE STATE OF MICHIGAN OR AT
THE STATE LINE OF MICHIGAN.
Consumers delivered 1,146,930,450 Kwh of electric energy
across state lines under interchange power agreements for the
year ended December 31, 1997. Neither Claimant nor Consumers sold
any natural gas at wholesale outside the State of Michigan during
the same period.
(D) NUMBER OF KWH OF ELECTRIC ENERGY AND MCF OF NATURAL OR
MANUFACTURED GAS PURCHASED OUTSIDE THE STATE OF MICHIGAN OR AT THE STATE
LINE OF MICHIGAN.
For the year ended December 31, 1997, Consumers purchased
2,995,413,000 Kwh of electric energy outside the State of
Michigan or at the State line of Michigan and Consumers purchased
212,905,000 Mcf of natural gas from outside the State of
Michigan.
Claimant did not purchase any electric energy or natural
or manufactured gas outside the State of Michigan or at the State
line of Michigan.
4. THE FOLLOWING INFORMATION FOR THE REPORTING PERIOD WITH RESPECT TO
CLAIMANT AND EACH INTEREST IT HOLDS DIRECTLY OR INDIRECTLY IN AN EWG OR A
FOREIGN UTILITY COMPANY, STATING MONETARY AMOUNTS IN UNITED STATES DOLLARS:
---------------------------------------------------------
(A) NAME, LOCATION, BUSINESS ADDRESS AND DESCRIPTION OF THE
FACILITIES USED BY THE EWG OR FOREIGN UTILITY COMPANY FOR THE
GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRIC ENERGY FOR SALE OR
FOR THE DISTRIBUTION AT RETAIL OF NATURAL OR MANUFACTURED GAS.
As of December 31, 1997, CMS Energy had interests in
seventeen EWGs and two foreign utility companies:
CMESCO Energy Service Company Limited ("CMESCO")
Olympia - Thai Tower, 444, Ratchadapisek Road,
Huay Kwang, Bangkok, Thailand
CMESCO, a Thai company,(the EWG application is pending as
of this statement), is the operator of a 170 MW cogeneration
facility located at the Bang Pakong Industrial Park II near
Bangkok, Thailand. The facility is owned by AMATA-EGCO Power
Limited.
CMS Ensenada S.A. ("Ensenada")
Edificio Torre Catalinas Plaza
Ing. Butty 220 8th Floor
(1106) Buenos Aires, Argentina
Ensenada, an Argentine company, is an EWG and is the owner
of a 128 MW natural gas-fired power plant, located on the grounds
of YPF S.A.'s La Plata oil refinery, located in the province of
Buenos Aires, Argentina.
CMS Generation Cebu Limited Duration Company ("Cebu")
Maples and Calder
P.O. Box 309, Grand Cayman
Cayman Islands, British West Indies
Cebu, a Cayman Islands company, is an EWG and has
ownership interests in two power plants totaling 134.5 MW
generating capacity located in Toledo City, Cebu, Philippines, in
the central island group of the Republic of the Philippines. The
plants can be fueled by coal, oil or diesel fuel.
CMS Generation Cebu Operating Limited Duration Company
("Cebu Operating")
Maples and Calder
P.O. Box 309, Grand Cayman
Cayman Islands, British West Indies
<PAGE> 12
Cebu Operating, a Cayman Islands company, is an EWG and is
the operator of two power plants totaling 134.5 MW generating
capacity, located in Toledo City, Cebu, Philippines, in the
central island group of the Republic of the Philippines. The
plants are owned by Toledo Power Company.
CMS Generation Operating Company II, Inc.
("CMSG Operating Company II")
Fairlane Plaza South
330 Town Center Drive
Dearborn, Michigan 48126
CMSG Operating Company II, a United States company, is the
operator of a 237 MW cogeneration facility located in Lakewood,
New Jersey.
CMS Morocco Operating Company SCA ("CMS Morocco")
BP 99 Sidi Bouzid
El Jadida
Morocco
CMS Morocco, a Moroccan company, is an EWG that operates
two existing 330 MW electric generating plants and will operate
two additional 348 MW electric generating plants to be
constructed at the port of Jorf Lasfar on the Atlantic coast of
Morocco.
CMS Operating S.A.
Edificio Torre Catalinas Plaza
Ing. Butty 220, 8th Floor
(1106) Buenos Aires, Argentina
CMS Operating S.A., an Argentine company, is an EWG and
has an ownership interest in and is the operator of Ensenada (see
above); and has an ownership interest in Centrales Termicas
Mendoza S.A., an Argentine company which owns a power generating
facility located in Mendoza, Argentina, which currently
generates 240 MW of power and can be fueled by natural gas, oil
or diesel fuel.
CMS Generation Pinamucan Limited Duration Company
("Pinamucan")
Maples and Calder
P.O. Box 309, Grand Cayman
Cayman Islands, British West Indies
Pinamucan, a Cayman Islands company, is an EWG and has
ownership interests in a 63 MW diesel power plant located in
Cavite Export Processing Zone, Rosario, Cavite, Philippines.
CMS Generation Pinamucan Operating Limited Duration
Company
("Pinamucan Operating")
Maples and Calder
P.O. Box 309, Grand Cayman
Cayman Islands, British West Indies
Pinamucan Operating, a Cayman Islands company, is an EWG
and is the operator of a 63 MW diesel power plant located in
Cavite Export Processing Zone, Rosario, Cavite, Philippines.8.
Centrales Termicas San Nicolas, S.A. ("CTSN")
Rivadavia S/N
2900 San Nicolas
Prov. Buenos Aires, Argentina
CTSN, an Argentine company, is an EWG and is owner and
operator of a 650 MW power plant located in San Nicolas,
Argentina, north of Buenos Aires, Argentina. The five-unit plant
can be fueled by coal, petroleum coke, oil or natural gas.
Empresa Distribuidora de Electricidad de Entre Rios S.A.
("EDEER")
25 de Mayo 139 (3100)
Parana, Entre Rios, Argentina
EDEER, an Argentine company, is a foreign utility company
and owns and operates an electric distribution company located
North of Buenos Aires, in the Province of Entre Rios, Argentina,
serving approximately 223,000 customers.
GVK Industries Limited ("GVK")
Road No. 1
Banjara Hills, Hyderabad
India
<PAGE> 13
GVK, an Indian company, is an EWG and is owner of a 235 MW
electric generating plant located in Jegurupadu, Andra Pradesh,
India.
Hidroelectrica El Chocon, S.A. ("Hidroelectrica")
8311 Neuquen
Neuquen Province, Argentina
Hidroelectrica, an Argentine company, is an EWG and holds
a thirty-year concession to operate two hydroelectric power
plants located 26 kilometers apart on the Limay River in western
Argentina. These plants have a total generating capacity of 1,320
MW.
Jamaica Private Power Company Limited ("Jamaica
Private Power")
100 Windward Road,
Kingston 2, Jamaica, W.I.
Jamaica Private Power, a Jamaican company, is an EWG and
is the owner of a 65 MW electric generating facility in Rockfort,
Kingston, Jamaica.
Private Power Operators Limited ("Private Power")
100 Windward Road
Kingston 2, Jamaica, W.I.
Private Power, a Jamaican company, is a EWG and is the
operator of a 65 MW electric generating facility in Rockfort,
Kingston, Jamaica.
Jegurupadu Operating and Maintenance Company
("Jegurupadu Operating")
F-40, N.D.S.E., Part I
New Delhi 110 149
India
Jegurupadu Operating, a Mauritius company, is an EWG and
is the operator of a 235 MW electric generating plant located in
Jegurupadu, Andra Pradesh, India. The plant is owned by GVK
Industries Limited.
Jorf Lasfar Energy Company SCA ("Jorf Lasfar")
BP 99 Sidi Bouzid
El Jadida
Morocco
Jorf Lasfar, a Moroccan company, is an EWG that operates
through a subcontractor, CMS Morocco Operating Company SCA, two
existing 330 MW electric generating plants and will construct and
operate through a different subcontractor two additional 348 MW
electric generating plants located at the port of Jorf Lasfar on
the Atlantic coast of Morocco.
Lakewood Cogeneration, L.P. ("Lakewood")
123 Energy Way
Lakewood, New Jersey 08701
Lakewood, a Delaware limited partnership, is an EWG and is
owner and operator of a 237 MW Cogeneration facility located in
Lakewood, New Jersey. The two-unit plant can be fueled by natural
gas or household heating oil.
Loy Yang Power ("Loy Yang")
P.O. Box 1799
Traralgon 3844,
Victoria, Australia
Loy Yang, an Australian partnership, is a foreign utility
company and is the owner of a 2,000 MW power station and
associated lignite mine located at Loy Yang, Victoria, Australia.
(B) NAME OF EACH SYSTEM COMPANY THAT HOLDS AN INTEREST IN SUCH EWG OR
FOREIGN UTILITY COMPANY; AND DESCRIPTION OF THE INTEREST HELD.
CMESCO
CMS Generation Investment Company I, owns 50% of CMESCO. See
Exhibit C.
Ensenada
CMS Operating S.A. and CMS Generation Holdings Co., own 99% and
1%, respectively, Ensenada. See Exhibit C.
Cebu
<PAGE> 14
CMS Generation Investment Company I and CMS Generation Investment
Company II, own 99% and 1%, respectively, Cebu. See Exhibit C.
Cebu Operating
CMS Generation Investment Company I and CMS Generation Investment
Company II, own 99% and 1%, respectively, of CMS Generation Cebu
Operating. See Exhibit C.
CMSG Operating Company II
HYDRA-CO. Enterprises, Inc., owns 100% of CMSG Operating Company II.
See Exhibit C.
CMS Morocco
Jorf Lasfar Operations Handelsbolag, CMS Generation Investment
Company I, CMS International Operating Company, and CMS
Generation Jorf Lasfar III Limited Duration Company own 99.7%,
0.1%, 0.1%, and 0.1%, respectively, of CMS Morocco. See Exhibit
C.
CMS Operating S.A.
CMS Generation Co. and CMS Generation Holdings Company, own 99% and
1%, respectively of CMS Operating S.A. See Exhibit C.
Pinamucan
CMS Generation Investment Company I and CMS Generation Investment
Company II, own 99% and 1%, respectively, of Pinamucan. See
Exhibit C.
Pinamucan Operating
CMS Generation Investment Company I and CMS Generation Investment
Company II, own 99% and 1%, respectively, of Pinamucan Operating. See
Exhibit C.
CTSN
In May 1993, Inversora San Nicolas S.A. purchased 88% share in CTSN.
The remaining 12% interest was held by the Argentine government on
behalf of the facility's employees. On July 7, 1995, AES Argentina,
Inc. purchased a 99.9% ownership interest in CMS Generation San
Nicolas Company, represented by 9,990 newly-issued shares, leaving CMS
Generation Co. with a 0.016% indirect ownership interest in CTSN. See
Exhibit C.
EDEER
In May 1996, Inversora en Distribucion de Entre Rios S.A. purchased
90% of the shares of EDEER. CMS Electric and Gas Company owns 40% of
the shares of Inversora en Distribucion de Entre Rios S.A. See
Exhibit C.
GVK
Jegurupadu CMS Generation Company Limited, owns 18.75% of GVK
Industries. See Exhibit C.
Hidroelectrica
CMS Generation Co. owns a 2.48% direct ownership in Hidroelectrica.
Hidroinvest, S.A. owns a 59% ownership interest in Hidroelectrica.
CMS Generation, S.A. has a 25% ownership interest in Hidroinvest, S.A.
See Exhibit C.
Jamaica Private Power
HCE Rockfort Diesel, owns 43.93% of Jamaica Private Power. See Exhibit
C.
Private Power
HCO-Jamaica, Inc., owns 50% of Private Power. See Exhibit C.
Jegurupadu Operating
Jegurupadu O&M Company, owns 60% of Jegurupadu Operating. See Exhibit
C.
Jorf Lasfar
Jorf Lasfar I Handelsbolag, Jorf Lasfar Power Energy Handelsbolag, and
Jorf Lasfar Handelsbolag, own 25%, 23% and 2%, respectively, of Jorf
Lasfar. See Exhibit C.
Lakewood
HCE-Lakewood, Inc. owns 1% interest as a general partner in Lakewood
Cogeneration, L.P. HYDRA-CO Enterprises, Inc. owns 44% ownership
interest as a limited partner in Lakewood. See Exhibit C.
Loy Yang
Horizon Energy Holdings Limited and CMS Generation Horizon Energy
Holdings Limited, own 24.63% and 25%, respectively, of Loy Yang. See
Exhibit C.
(C) TYPE AND AMOUNT OF CAPITAL INVESTED, DIRECTLY OR INDIRECTLY, BY THE
HOLDING COMPANY CLAIMING EXEMPTION; ANY DIRECT OR
<PAGE> 15
INDIRECT GUARANTEE OF THE SECURITY OF THE EWG OR FOREIGN UTILITY COMPANY BY
THE HOLDING COMPANY CLAIMING EXEMPTION; AND ANY DEBT OR OTHER FINANCIAL
OBLIGATION FOR WHICH THERE IS RECOURSE, DIRECTLY OR INDIRECTLY, TO THE HOLDING
COMPANY CLAIMING EXEMPTION OR ANOTHER SYSTEM COMPANY, OTHER THAN THE EWG OR
FOREIGN UTILITY COMPANY.
CMESCO
As of December 31, 1997, CMS Generation Investment Company I has
invested approximately $42,000 in CMESCO.
Ensenada
As of December 31, 1997, CMS Operating S.A. has invested approximately
$37 million of equity in Ensenada.
Cebu
As of December 31, 1997, CMS Generation Investment Company I and
CMS Generation Investment Company II had invested approximately
$16 million of equity in Cebu.
Cebu Operating
As of December 31, 1997, CMS Generation Investment Company I and
CMS Generation Investment Company II had invested approximately
$0.7 million of equity in CMS Generation Cebu Operating.
CMSG Operating Company II
As of December 31, 1997, there were no investments made in CMSG
Operating Company II.
CMS Morocco
As of December 31, 1997, Jorf Lasfar Operations Hendelsbolag, CMS
Generation Investment Company I, CMS International Operating
Company, and CMS Generation Jorf Lasfar III Limited Duration
Company, had invested approximately $12,000 of equity in CMS
Morocco.
CMS Operating S.A.
As of December 31, 1997, CMS Generation Co. had invested
approximately $143 million of equity in CMS Operating S.A.
Pinamucan
As of December 31, 1997, CMS Generation Investment Company I and
CMS Generation Investment Company II had invested approximately
$10 million of equity in CMS Generation Pinamucan.
Pinamucan Operating
As of December 31, 1997, CMS Generation Investment Company I and
CMS Generation Investment Company II had invested approximately
$0.2 million of equity in Pinamucan Operating.
CTSN
As of December 31, 1997, CMS Generation San Nicolas Company had
invested approximately $13 million of equity in CTSN. CMS Energy
has been released from all guarantees related to CTSN.
EDEER
As of December 31, 1997, CMSE&G had invested approximately $64
million in equity in EDEER S.A.
GVK
As of December 31, 1997, Jegurupadu CMS Generation Company
Limited had invested $21 million of equity in GVK Industries,
directly and indirectly through Classic Investment I and Classic
Investment II.
Hidroelectrica
As of December 31, 1997, CMS Generation, S.A. had invested
approximately $51 million of equity in, and advanced
approximately $17 million of loans to, Hidroelectrica. CMS
Generation, S.A. was a co-applicant for certain letters of credit
required in connection with the acquisition of the concession,
and CMS Energy has guaranteed up to approximately $15 million of
reimbursement obligations relating to these letters of credit.
CMS Energy has also guaranteed on behalf of Hidroelectrica
approximately $13 million in connection with the Guaranteed
Indebtedness Credit Agreement dated as of December 15, 1993
between Hidroelectrica and The Chase Manhattan Bank.
Jamiaca Private Power
As of December 31, 1997, HCE Rockfort Diesel, had invested
approximately $16 million in Jamiaca Private Power.
Private Power
As of December 31, 1997, there were no investments made in
Private Power.
<PAGE> 16
Jegurupadu Operating
As of December 31, 1997, Jegurupadu O&M Company had invested
approximately $0.2 million of equity in Jegurupadu Operating,
directly and indirectly through Classic Investment I and Classic
Investment II.
Jorf Lasfar
As of December 31, 1997, Jorf Lasfar I Handelsbolag, Jorf Lasfar
Power Energy Handelsbolag, and Jorf Lasfar Handelsbolag, had
invested approximately $28,000 of equity in Jorf Lasfar.
Lakewood
As of December 31, 1997, HCE-Lakewood, Inc. had invested $510,000 of
equity in Lakewood. HYDRA-CO Enterprises, Inc. had invested
$22,444,000 of equity in Lakewood.
Loy Yang
As of December 31, 1997, CMS Generation Horizon Energy Holdings
Limited and Horizon Energy Holdings Limited had invested approximately
$444 million in Loy Yang Power.
(D) CAPITALIZATION AND EARNINGS OF THE EWG OR FOREIGN UTILITY COMPANY
DURING THE REPORTING PERIOD.
<TABLE>
<S> <C>
CMESCO
$ (000s)
Capitalization at 12/31/97
Shareholders' Equity $ 84
Net Income (Loss) for the
period ended 12/31/97 $ 314
=============
Ensenada
$ (000s)
Capitalization at 12/31/97
Shareholders' Equity $ 12
Irrevocable Contributions $ 82,655
Return of Capital $ <45,850>
Total $ 36,817
=============
Net Income (Loss) for the period
ended 12/31/97 $ <672>
=============
Cebu
$ (000s)
Capitalization at 12/31/97
Shareholders' Equity $ 16,400
Cumulative Translation adjustment $ (5,907)
Net Income (Loss) for the
period ended 12/31/97 $ 1,767
=============
Cebu Operating
$ (000s)
Capitalization at 12/31/97
Shareholders' Equity $ 740
Cumulative Translation Adjustment $ (217)
Net Income (Loss) for the
period ended 12/31/97 $ 306
=============
CMSG Operating Company II
$ (000s)
Capitalization at 12/31/97
Shareholders' Equity $ 2,456
Net Income (Loss) for the
period ended 12/31/97 $ 855
=============
</TABLE>
<PAGE> 17
<TABLE>
<S> <C>
CMS Morocco
$ (000s)
Capitalization at 12/31/97
(information received in Moroccan
Dirhams converted at 9.00 dirhams
per US $1.00)
Shareholders' Equity $ 12
Net Income (Loss) for the
period ended 12/31/97 $ 1,300
=============
CMS Operating S.A.
$ (000s)
Capitalization at 12/31/97
Shareholders Equity $ 35,449
Irrevocable Contributions $ 108,355
Total $ 143,804
=============
Net Income (Loss) for the
period ended 12/31/1997 $ 1,121
=============
Pinamucan
$ (000s)
Capitalization at 12/31/97
Shareholders' Equity $ 10,323
Net Income (Loss) for the
period ended 12/31/97 $ (1,186)
==============
Pinamucan Operating
$ (000s)
Capitalization at 12/31/97
Shareholders' Equity $ 248
Cumulative Translation Adjustment $ (128)
Net Income (Loss) for the
period ended 12/31/97 $ 198
=============
</TABLE>
<PAGE> 18
<TABLE>
<S> <C>
*CTSN:
$ (000s)
Capitalization at 12/31/97
Bank Loans $
Long Term Debt (Partners Loans) $
Shareholders' Equity
Total Capitalization $
=============
Net Income (Loss) for the
period ended 12/31/97 $
=============
* As stated in Claimant's Form U-3A-2 filed February 29, 1996, due
to the nominal interest (.016%) of CTSN indirectly owned by CMS
Generation Co., capitalization and earnings information of CTSN
continues to be unavailable.
EDEER
$ (000s)
Capitalization at 12/31/97
Shareholders' Equity $ 187,011
Net Income for the period
Ended 12/31/97 $ 8,360
=============
GVK
$ (000s)
Capitalization at 12/31/97
Shareholders' Equity $ 73,915
Cumulative Translation Adjustment $ unknown
Net Income (Loss) for the
period ended 12/31/97 $ 10,966
=============
Hidroelectrica:
$ (000s)
Capitalization at 12/31/97
Bank Loans $ 180,000
Shareholders' Equity $ 379,584
Total Capitalization $ 559,584
=============
Net Income (Loss) for the
period ended 12/31/97 $ 5,413
=============
Jamaica Private Power
$ (000s)
Capitalization at 12/31/97
Shareholders' Equity $ 41,844
Net Income (Loss) for the
period ended 12/31/97 $ 2,815
=============
Private Power
$ (000s)
Capitalization at 12/31/97
Shareholders' Equity $ 10
Net Income (Loss) for the
period ended 12/31/97 $ 0
=============
</TABLE>
<PAGE> 19
<TABLE>
<S> <C>
Jegurupadu Operating
$ (000s)
Capitalization at 12/31/97 (estimates)
Shareholders' Equity $ 10
Advance on Equity $ 336
Cumulative Translation Adjustment $ unknown
Net Income (Loss) for the
period ended 12/31/97 $ 48
=============
Jorf Lasfar
$ (000s)
Capitalization at 12/31/97
Shareholders' Equity $ 57
Long Term Loans $ 520,647
Net Income (Loss) for the
period ended 12/31/97 $ 28,307
=============
Lakewood
$ (000s)
Capitalization at 12/31/97
Bank Loans $ 196,885
Shareholders' Equity $ 41,741
Total Capitalization $ 238,626
=============
Net Income (Loss) for the
period ended 12/31/97 $ 5,424
=============
Loy Yang
$ (000s)
Capitalization at 12/31/97
Shareholders' Equity $ 909
Cumulative Translation Adjustment $ 80,326
Net Income (Loss) for the
period ended 12/31/97 $ 716
=============
</TABLE>
(e) Identify any service, sales or construction contracts(s) between the
ewg or foreign utility company and a system company, and describe the services
to be rendered or goods sold and fees or revenues under such agreement(s).
As of December 31, 1997, CMS Ensenada S.A. maintains a 7 year
Operating and Maintenance Agreement with CMS Operating S.A. to operate and
maintain the La Plata cogeneration plant. This agreement took effect in 1997.
Total fees earned in 1997 were $127,971.63.
As of December 31, 1997, Toledo Power Company, owned 47.5% by
Cebu, has an operating agreement, effective January 1, 1996, with CMS Generation
Cebu Operating Limited Duration Company, which is owned 99% by CMS Generation
Investment Company I and 1% by CMS Generation Investment Company II. Total fees
earned in 1997 were $635,000.
As of December 31, 1997, Centrales Termicas Mendoza, S.A., has a
Contract of Operation with CMS Operating S.A.. This is a consulting contract in
connection with the operation and maintenance of the eligible facility. Total
fees earned in 1997 were $793,591.21.
As of December 31, 1997, EDEER has a Management, Supervision and
Technical Assistance Contract with CMS Electric and Gas Company. This is a
consulting contract in connection with the operation and maintenance of the
foreign utility. This consulting contract was assigned by CMS Operating S.A. to
CMS Electric and Gas Company in May 1997. Total fees earned in 1997 were
$1,451,000.
As of December 31, 1997, Lakewood maintains a 21 year Operating
and Maintenance Agreement with CMSG Operating Company II to operate and maintain
the EWG. There is an Administrative and General Agreement between Lakewood
Cogeneration, L.P. and HYDRA-CO Enterprises which expires November 2012 to
maintain the business administration of the EWG. Lakewood also maintains a
construction contract with Lakewood Project
<PAGE> 20
Management, Inc., a wholly owned subsidiary of HYDRA-CO Enterprises, Inc.,
which expires at the end of the warranty phase. Total fees earned in 1997 were:
<TABLE>
<S> <C>
Operator Fees $ 461,114
Administrative Fees 320,724
Project Management Fees 6,113
-----------
Total Fees $ 787,951
===========
</TABLE>
As of December 31, 1997, AMATA-EGGO Power Limited has a 6 year operating
agreement with CMESCO. Total fees earned in 1997 were $400,000.
As of December 31, 1997, Magellan Cogeneration, Inc., has an operating
agreement, effective February 4, 1997, with Pinamucan Operating. Total fees
earned in 1997 were $557,000.
As of December 31, 1997, GVK Industries, has a restated 10 year
Operation and Maintenance Agreement with Jegurupadu Operating, effective on the
commercial operation date of the steam turbine unit. Total fees earned in 1997
were $245,000.
As of December 31, 1997, Jorf Lasfar has an Operating and Maintenance
Agreement with CMS Morocco, effective September 4, 1997. Total fees earned in
1997 under the Operating and Maintenance Agreement were $417,000. As of December
31, 1997, Jorf Lasfar has a Construction Management Agreement with CMS Resource
Development. Total fees earned in 1997 under the Construction Management
Agreement were $4,800,000.
As of December 31, 1997, Jamaica Private Power has an operating
agreement with Private Power. Total fees earned in 1997 were $198,000.
As of December 31, 1997, total Industry Expertise fee earned by CMS
Generation Horizon Energy Holding from Loy Yang were $19,217,000.
The above-named Claimant has caused this statement to be duly
executed on its behalf by its authorized officer on this 27th day of February,
1998.
CMS ENERGY CORPORATION, a
Michigan corporation
[CORPORATE SEAL] By /s/ Rodger A. Kershner
-------------------------------
Rodger A. Kershner
Senior Vice President and
General Counsel
ATTEST:
/s/ T.A. McNish
- ----------------------------
Thomas A. McNish
Vice President and Secretary
Name, title, and address of officer to whom notices and correspondence
concerning this Statement should be addressed:
Rodger A. Kershner
Senior Vice President and
General Counsel
CMS Energy Corporation
Fairlane Plaza South
Suite 1100
330 Town Center Drive
Dearborn, Michigan 48126
<PAGE> 21
EXHIBIT A
A consolidating statement of income and surplus of CMS Energy and its
subsidiary companies for the last calendar year, together with a consolidating
balance sheet of CMS Energy and its subsidiary companies as of the close of such
calendar year is attached.
CMS ENERGY CORPORATION
Consolidating Statement of Income
For the Year Ended December 31, 1997
(In Millions, except Per Share Amounts)
<TABLE>
<CAPTION>
Consumers CMS Inter-
Energy Enterprises company CMS Energy
CMS Energy Company Company Elimina- Corporation
Corp.(1) Consol. Consol. tions Consol.
<S> <C> <C> <C> <C> <C>
Operating Revenue
Electric utility $ - $2,515 $ - $ - $2,515
Gas utility - 1,204 - - 1,204
Independent power production - 48 120 - 168
Oil and gas exploration
and production - - 112 (19) 93
Natural gas transmission,
storage and processing - - 102 - 102
Marketing, services and trading - - 706 (14) 692
Other - 2 11 - 13
------ ------ ------ ------ ------
Total operating revenue - 3,769 1,051 (29) 4,787
------ ------ ------ ------ ------
Operating Expenses
Fuel for electric generation - 297 - - 297
Purchased power -
related parties - 599 - - 599
Purchased and interchange
power - 243 - - 243
Cost of gas sold - 694 650 (33) 1,311
Other operation expense 14 542 173 - 729
Maintenance - 170 4 - 174
Depreciation, depletion
and amortization 1 391 85 - 477
General taxes - 200 11 - 211
------ ------ ------ ------ ------
Total operating expenses 15 3,136 923 (33) 4,041
------ ------ ------ ------ ------
Pretax Operating Income (Loss) (15) 633 128 - 746
------ ------ ------ ------ ------
Other Income (Deductions)
Dividends and interest
from affiliates 14 24 6 (44) -
Accretion income - 8 - - 8
Accretion expense - (17) - - (17)
Other, net 359 (2) 4 (364) 3
------ ------ ------ ------ ------
Total other income
(deductions) 373 13 10 (408) 12
------ ------ ------ ------ ------
Fixed Charges
Interest on long-term debt 113 138 22 - 273
Other interest 16 36 15 (18) 49
Capitalized interest (1) (1) (14) - (16)
Preferred dividends - 25 13 (13) 25
Preferred securities distributions 6 12 - - 18
------ ------ ------ ------ ------
Net fixed charges 134 210 36 (31) 349
------ ------ ------ ------ ------
Income (Loss) Before Income Taxes 224 436 102 (377) 385
------ ------ ------ ------ ------
Income Taxes (50) 152 15 - 117
------ ------ ------ ------ ------
Consolidated Net Income (Loss) before
Common Stock Dividends 274 284 87 (377) 268
Dividends on Common Stock 125 218 - (224) 119
------ ------ ------ ------ ------
Consolidated Net Income (Loss) after
Common Stock Dividends $ 149 $ 66 $ 87 $ (153) $ 149
====== ====== ====== ====== ======
Average Number of CMS Energy Common Shares
Outstanding 96,144
Basic Earnings Per CMS Energy Average Common
Share $ 2.63
Diluted Earnings Per CMS Energy Average Common
Share $ 2.61
</TABLE>
[FN]
(1) Represents CMS Energy Corporation with Consumers Energy Company and CMS
Enterprises Company included on the equity method of accounting.
</FN>
<PAGE> 22
CONSUMERS ENERGY COMPANY
Consolidating Statement of Income
For the Year Ended December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
Michigan Huron CMS Inter- Consumers
Consumers Gas Hydro- Midland CMS company Power
Energy Storage carbons Holdings Midland Elimina- Company
Company(2) Company Inc. Company Inc. tions Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Operating Revenue
Electric $2,515 $ - $ - $ - $ - $ - $2,515
Gas 1,197 25 - - - (18) 1,204
Other 2 - 2 9 38 (1) 50
------ ------ ------ ------ ------ ------ ------
Total operating revenue 3,714 25 2 9 38 (19) 3,769
------ ------ ------ ------ ------ ------ ------
Operating Expenses
Fuel for electric generation 297 - - - - - 297
Purchased power -
related parties 599 - - - - - 599
Purchased and interchange
power 243 - - - - - 243
Cost of gas sold 712 - - - - (18) 694
Other operation expense 534 9 - - - (1) 542
Maintenance 167 3 - - - - 170
Depreciation, depletion
and amortization 389 1 - - 1 - 391
General taxes 198 2 - - - - 200
------ ------ ------ ------ ------ ------ ------
Total operating expenses 3,139 15 - - 1 (19) 3,136
------ ------ ------ ------ ------ ------ ------
Pretax Operating Income 575 10 2 9 37 - 633
------ ------ ------ ------ ------ ------ ------
Other Income (Deductions)
Dividends and interest
from affiliates 37 - - - - (13) 24
Accretion income 8 - - - - - 8
Accretion expense (17) - - - - - (17)
Other, net 37 - - - - (39) (2)
------ ------ ------ ------ ------ ------ ------
Total other income
(deductions) 65 - - - - (52) 13
------ ------ ------ ------ ------ ------ ------
Interest Charges
Interest on long-term debt 137 1 - - - - 138
Other interest 49 - - - - (13) 36
Capitalized interest (1) - - - - - (1)
------ ------ ------ ------ ------ ------ ------
Net interest charges 185 1 - - - (13) 173
------ ------ ------ ------ ------ ------ ------
Income (Loss) Before Income Taxes 455 9 2 9 37 (39) 473
------ ------ ------ ------ ------ ------ ------
Income Taxes 134 3 1 1 13 - 152
------ ------ ------ ------ ------ ------ ------
Net Income (Loss) 321 6 1 8 24 (39) 321
Preferred Stock Dividends 25 - - - - - 25
Preferred Securities Distribution 12 - - - - - 12
------ ------ ------ ------ ------ ------ ------
Net Income (Loss) Available
to Common Stockholder 284 6 1 8 24 (39) 284
Dividends on Common Stock 218 - - - - - 218
------ ------ ------ ------ ------ ------ ------
Net Income (Loss) After Common
Dividends $ 66 $ 6 $ 1 $ 8 $ 24 $ (39) $ 66
====== ====== ====== ====== ====== ====== ======
</TABLE>
[FN]
(2) Represents Consumers Energy Company, CMS Engineering Company, ES
Services Company, Consumers EnergyGuard Services, Inc. and MEC
Development Corporation consolidated with Michigan Gas Storage
Company, CMS Midland Holdings Company, CMS Midland, Inc. and Huron
Hydrocarbons, Inc. included on the equity method of accounting.
</FN>
<PAGE> 23
CMS ENTERPRISES COMPANY
Consolidating Statement of Income
For the Year Ended December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMS NOMECO CMS CMS CMS Gas
CMS Oil and Generation Utility CMS CMS Trans. &
Enterprises Gas Co. Co. Services Land MS & T Stor. Co.
Company(3) Consol. Consol. Inc. Company Company Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Operating Revenue
Oil and gas exploration
and production $ - $ 168 $ - $ - $ - $ - $ -
Independent power production - - 120 - - - -
Natural gas transmission,
storage and processing - - - - - - 102
Marketing, services and trading 708
Other - - - 3 4 - -
------ ------ ------ ------ ------ ------ ------
Total operating revenue - 168 120 3 4 708 102
------ ------ ------ ------ ------ ------ ------
Operating Expenses
Cost of gas sold - - - - - 684 24
Other operation expense 6 51 57 1 - 27 27
Maintenance - 3 - - - - 1
Depreciation, depletion
and amortization - 58 12 - - 1 14
General taxes - 6 1 - - 1 3
------ ------ ------ ------ ------ ------ ------
Total operating expenses 6 118 70 1 - 713 69
------ ------ ------ ------ ------ ------ ------
Pretax Operating Income (Loss) (6) 50 50 2 4 (5) 33
------ ------ ------ ------ ------ ------ ------
Other Income (Deductions)
Dividends and interest
from affiliates 2 - 2 - - - 1
Other, net 102 1 1 - (1) - -
------ ------ ------ ------ ------ ------ ------
Total other income
(deductions) 104 1 3 - (1) - 1
------ ------ ------ ------ ------ ------ ------
Fixed Charges
Interest on long-term debt - 11 9 - - - 2
Other interest 1 5 6 - - - 2
Capitalized interest - (3) (10) - - - (1)
Preferred dividends 13 - - - - - -
------ ------ ------ ------ ------ ------ ------
Net fixed charges 14 13 5 - - - 3
------ ------ ------ ------ ------ ------ ------
Income (Loss) Before Income Taxes 84 38 48 2 3 (5) 31
------ ------ ------ ------ ------ ------ ------
Income Taxes (2) 2 4 1 1 (2) 10
------ ------ ------ ------ ------ ------ ------
Net Income (Loss) $ 86 $ 36 $ 44 $ 1 $ 2 $ (3) $ 21
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 24
CMS ENTERPRISES COMPANY
Consolidating Statement of Income
For the Year Ended December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
CMS Inter- CMS
Electric CMS company Enterprises
& Gas Capital Elimina- Company
Company Corp. tions Consol.
<S> <C> <C> <C> <C>
Operating Revenue
Oil and gas exploration
and production $ - $ - $ (56) $ 112
Independent power production - - - 120
Natural gas transmission,
storage and processing - - - 102
Marketing, services and trading (2) 706
Other 3 1 - 11
------ ------ ------ ------
Total operating revenue 3 1 (58) 1,051
------ ------ ------ ------
Operating Expenses
Cost of gas sold - - (58) 650
Other operation expense 3 1 - 173
Maintenance - - - 4
Depreciation, depletion
and amortization - - - 85
General taxes - - - 11
------ ------ ------ ------
Total operating expenses 3 1 (58) 923
------ ------ ------ ------
Pretax Operating Income (Loss) - - - 128
------ ------ ------ ------
Other Income (Deductions)
Dividends and interest
from affiliates - 4 (3) 6
Other, net - 2 (101) 4
------ ------ ------ ------
Total other income
(deductions) - 6 (104) 10
------ ------ ------ ------
Fixed Charges
Interest on long-term debt - - - 22
Other interest - 4 (3) 15
Capitalized interest - - - (14)
Preferred dividends - - - 13
------ ------ ------ ------
Net fixed charges - 4 (3) 36
------ ------ ------ ------
Income (Loss) Before Income Taxes - 2 (101) 102
------ ------ ------ ------
Income Taxes - 1 - 15
------ ------ ------ ------
Net Income (Loss) $ - $ 1 $ (101) $ 87
====== ====== ====== ======
</TABLE>
[FN]
(3) Represents CMS Enterprises Company, CMS Capital Financial Services, Inc.,
Monarch Management Corporation and KJL Limited, Inc. consolidated with CMS
NOMECO Oil and Gas Company, CMS Generation Company, CMS Utility Services,
Inc., CMS Land Company, CMS Marketing, Services and Trading Company, CMS
Gas Transmission and Storage Company, CMS Electric and Gas Company and CMS
Capital Corporation included on the equity method of accounting.
</FN>
<PAGE> 25
CMS NOMECO OIL AND GAS COMPANY
Consolidating Statement of Income
For the Year Ended December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMS NOMECO
CMS CMS CMS Equatorial NOMECO
NOMECO NOMECO NOMECO Terra Guinea CMS NOMECO Colombia
Oil and Gas Alba International Energy, Oil & Gas Venezuela Oil
Company(4) LDC Inc. Consol. Ltd. Co. LDC Company
<S> <C> <C> <C> <C> <C> <C> <C>
Operating Revenue
Oil and gas exploration
and production $ 58 $ 1 $ 39 $ 18 $ 7 $ 11 $ 1
Other - - - - - - -
------ ------ ------ ------ ------ ------ ------
Total operating revenue 58 1 39 18 7 11 1
------ ------ ------ ------ ------ ------ ------
Operating Expenses
Cost of products sold - - - - - - -
Other operation expense 19 - 16 1 1 3 1
Maintenance 3 - - - - - -
Depreciation, depletion
and amortization 30 - 5 6 1 4 -
General taxes 5 - - 1 - - -
------ ------ ------ ------ ------ ------ ------
Total operating expenses 57 - 21 8 2 7 1
------ ------ ------ ------ ------ ------ ------
Pretax Operating Income 1 1 18 10 5 4 -
------ ------ ------ ------ ------ ------ ------
Other Income (Deductions)
Interest from affiliates 2 - - - - - -
Other, net 34 - - 1 - - -
------ ------ ------ ------ ------ ------ ------
Total other income
(deductions) 36 - - 1 - - -
------ ------ ------ ------ ------ ------ ------
Fixed Charges
Interest on long-term debt 10 - 1 - - - -
Other interest 3 - - - - - -
Capitalized interest - - - - - - -
------ ------ ------ ------ ------ ------ ------
Net fixed charges 13 - 1 - - - -
------ ------ ------ ------ ------ ------ ------
Income (Loss) Before Income Taxes 24 1 17 11 5 4 -
------ ------ ------ ------ ------ ------ ------
Income Taxes (11) - 3 2 2 1 1
------ ------ ------ ------ ------ ------ ------
Net Income (Loss) $ 35 $ 1 $ 14 $ 9 $ 3 $ 3 $ (1)
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 26
CMS NOMECO OIL AND GAS COMPANY
Consolidating Statement of Income
For the Year Ended December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
CMS NOMECO CMS Explota- CMS Inter- CMS NOMECO
Inter- NOMECO ciones NOMECO company Oil and Gas
national Ecuador Nomeco E.G. Elimina- Company
Ltd. LDC Inc. LDC tions Consol.
<S> <C> <C> <C> <C> <C> <C>
Operating Revenue
Oil and gas exploration
and production $ - $ 25 $ 7 $ 1 $ - $ 168
Other - - - - - -
------ ------ ------ ------ ------ ------
Total operating revenue - 25 7 1 - 168
------ ------ ------ ------ ------ ------
Operating Expenses
Cost of products sold - - - - - -
Other operation expense - 8 2 - - 51
Maintenance - - - - - 3
Depreciation, depletion
and amortization - 9 3 - - 58
General taxes - - - - - 6
------ ------ ------ ------ ------ ------
Total operating expenses - 17 5 - - 118
------ ------ ------ ------ ------ ------
Pretax Operating Income - 8 2 1 - 50
------ ------ ------ ------ ------ ------
Other Income (Deductions)
Interest from affiliates - - - - (2) -
Other, net 9 - - - (43) 1
------ ------ ------ ------ ------ ------
Total other income
(deductions) 9 - - - (45) 1
------ ------ ------ ------ ------ ------
Fixed Charges
Interest on long-term debt - - - - - 11
Other interest 1 3 - - (2) 5
Capitalized interest - (3) - - - (3)
------ ------ ------ ------ ------ ------
Net fixed charges 1 - - - (2) 13
------ ------ ------ ------ ------ ------
Income (Loss) Before Income Taxes 8 8 2 1 (43) 38
------ ------ ------ ------ ------ ------
Income Taxes - 3 1 - - 2
------ ------ ------ ------ ------ ------
Net Income (Loss) $ 8 $ 5 $ 1 $ 1 $ (43) $ 36
====== ====== ====== ====== ====== ======
</TABLE>
[FN]
(4) Represents CMS NOMECO Oil and Gas Company, NOMECO China Oil Co., NOMECO
Thailand Oil Company, CMS NOMECO Pipeline Company and CMS NOMECO Holdings
Ltd. consolidated with CMS NOMECO International, Inc. included on the
equity method of accounting.
</FN>
<PAGE> 27
CMS NOMECO INTERNATIONAL, INC.
Consolidating Statement of Income
For the Year Ended December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMS CMS NOMECO CMS CMS Inter- CMS NOMECO
NOMECO International NOMECO NOMECO Company Inter.,
International Congo, Inter. Eq. Inter. Elimina- Inc.
Inc.(5) Inc. Guinea, Inc. Yemen, Inc. tions Consol.
<S> <C> <C> <C> <C> <C> <C>
Operating Revenue
Oil and gas exploration
and production $ - $ 22 $ 8 $ 9 $ - $ 39
Other - - - - - -
------ ------ ------ ------ ------ ------
Total operating revenue - 22 8 9 - 39
------ ------ ------ ------ ------ ------
Operating Expenses
Cost of products sold - - - - - -
Other operation expense 3 11 2 - - 16
Maintenance - - - - - -
Depreciation, depletion
and amortization - 4 1 - - 5
General taxes - - - - - -
------ ------ ------ ------ ------ ------
Total operating expenses 3 15 3 - - 21
------ ------ ------ ------ ------ ------
Pretax Operating Income (Loss) (3) 7 5 9 - 18
------ ------ ------ ------ ------ ------
Other Income (Deductions) 15 - - - (15) -
------ ------ ------ ------ ------ ------
Fixed Charges
Interest on long-term debt - 1 - - - 1
Other interest - - - - - -
Capitalized interest - - - - - -
------ ------ ------ ------ ------ ------
Net fixed charges - 1 - - - 1
------ ------ ------ ------ ------ ------
Income (Loss) Before Income Taxes 12 6 5 9 (15) 17
------ ------ ------ ------ ------ ------
Income Taxes (1) 2 2 - - 3
------ ------ ------ ------ ------ ------
Net Income (Loss) $ 13 $ 4 $ 3 $ 9 $ (15) $ 14
====== ====== ====== ====== ====== ======
</TABLE>
[FN]
(5) Represents CMS NOMECO International, Inc., CMS NOMECO International
Tunisia, Inc. and CMS NOMECO International Transportation, Inc.
consolidated.
</FN>
<PAGE> 28
CMS GENERATION COMPANY
Consolidating Statement of Income
For the Year Ended December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMSG CMSG HYDRA-CO CMSG Oxford
CMS Honey Filer Enter- Grayling CMSG Tire
Generation Lake City prises, Holdings Operating Supply
Co.(6) Company Inc. Consol. Company Company Inc.
<S> <C> <C> <C> <C> <C> <C> <C>
Operating Revenue
Independent power production $ 28 $ 9 $ 2 $ 21 $ 2 $ 1 $ 1
Other - - - - - - -
------ ------ ------ ------ ------ ------ ------
Total operating revenue 28 9 2 21 2 1 1
------ ------ ------ ------ ------ ------ ------
Operating Expenses
Other operation expense 14 - - 1 - - 1
Depreciation, depletion
and amortization 2 - - 5 - - -
General taxes 1 - - - - - -
------ ------ ------ ------ ------ ------ ------
Total operating expenses 17 - - 6 - - 1
------ ------ ------ ------ ------ ------ ------
Pretax Operating Income (Loss) 11 9 2 15 2 1 -
------ ------ ------ ------ ------ ------ ------
Other Income (Deductions)
Interest from affiliates 3 - - - - - -
Other, net 30 - - 1 - - -
------ ------ ------ ------ ------ ------ ------
Total other income
(deductions) 33 - - 1 - - -
------ ------ ------ ------ ------ ------ ------
Fixed Charges
Interest on long-term debt 7 - - - - - -
Other interest 3 - - - - - -
Capitalized interest (7) - - - - - -
------ ------ ------ ------ ------ ------ ------
Fixed charges 3 - - - - - -
------ ------ ------ ------ ------ ------ ------
Income (Loss) Before Income Taxes 41 9 2 16 2 1 -
------ ------ ------ ------ ------ ------ ------
Income Taxes (1) 4 - 6 1 - -
------ ------ ------ ------ ------ ------ ------
Net Income (Loss) $ 42 $ 5 $ 2 $ 10 $ 1 $ 1 $ -
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 29
CMS GENERATION COMPANY
Consolidating Statement of Income
For the Year Ended December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
Centrales Mid- CMS CMS
CMSG CMS Termicas Michigan Generation Generation CMSG
Holding Generation Mendoza Recycling Inv. Co. Cebu Pinamucan
Company S.A. S.A. L.L.C. I LDC LDC
<S> <C> <C> <C> <C> <C> <C> <C>
Operating Revenue
Independent power production $ (1) $ (2) $ 35 $ 3 $ 18 $ 2 $ -
Other - - - - - - -
------ ------ ------ ------ ------ ------ ------
Total operating revenue (1) (2) 35 3 18 2 -
------ ------ ------ ------ ------ ------ ------
Operating Expenses
Other operation expense - - 29 3 15 - 1
Depreciation, depletion
and amortization - - 4 - - - -
General taxes - - - - - - -
------ ------ ------ ------ ------ ------ ------
Total operating expenses - - 33 3 15 - 1
------ ------ ------ ------ ------ ------ ------
Pretax Operating Income (Loss) (1) (2) 2 - 3 2 (1)
------ ------ ------ ------ ------ ------ ------
Other Income (Deductions)
Interest from affiliates - - - - 30 - -
Other, net - - - - (36) - -
------ ------ ------ ------ ------ ------ ------
Total other income
(deductions) - - - - (6) - -
------ ------ ------ ------ ------ ------ ------
Fixed Charges
Interest on long-term debt - - - - - - -
Other interest 1 - 1 - 32 - -
Capitalized interest - - (1) - - - -
------ ------ ------ ------ ------ ------ ------
Net fixed charges 1 - - - 32 - -
------ ------ ------ ------ ------ ------ ------
Income (Loss) Before Income Taxes (2) (2) 2 - (35) 2 (1)
------ ------ ------ ------ ------ ------ ------
Income Taxes (1) - 1 - (8) - -
------ ------ ------ ------ ------ ------ ------
Net Income (Loss) $ (1) $ (2) $ 1 $ - $ (27) $ 2 $ (1)
====== ====== ====== ====== ====== ====== ======
</TABLE>
[FN]
(Continued on Following Page)
<PAGE> 30
CMS GENERATION COMPANY
Consolidating Statement of Income
For the Year Ended December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
CMS CMS Inter- CMS
Resource CMSG Generation CMS company Generation
Develop. Altoona Inv. Co. Ensenada Elimina- Company
Company Company III S.A. tions Consol.
<S> <C> <C> <C> <C> <C> <C>
Operating Revenue
Independent power production $ 5 $ - $ 1 $ 10 $ (15) $ 120
Other - - - - - -
------ ------ ------ ------ ------ ------
Total operating revenue 5 - 1 10 (15) 120
------ ------ ------ ------ ------ ------
Operating Expenses
Other operation expense - - - 8 (15) 57
Depreciation, depletion
and amortization - - - 1 - 12
General taxes - - - - - 1
------ ------ ------ ------ ------ ------
Total operating expenses - - - 9 (15) 70
------ ------ ------ ------ ------ ------
Pretax Operating Income 5 - 1 1 - 50
------ ------ ------ ------ ------ ------
Other Income (Deductions)
Interest from affiliates - 2 - - (33) 2
Other, net - - 1 - 5 1
------ ------ ------ ------ ------ ------
- 2 1 - (28) 3
------ ------ ------ ------ ------ ------
Fixed Charges
Interest on long-term debt - - - 2 - 9
Other interest - - - 2 (33) 6
Capitalized Interest - - - (2) - (10)
------ ------ ------ ------ ------ ------
Net fixed charges - - - 2 (33) 5
------ ------ ------ ------ ------ ------
Income (Loss) Before Income Taxes 5 2 2 (1) 5 48
------ ------ ------ ------ ------ ------
Income Taxes 2 1 - (1) - 4
------ ------ ------ ------ ------ ------
Net Income (Loss) $ 3 $ 1 $ 2 $ - $ 5 $ 44
====== ====== ====== ====== ====== ======
</TABLE>
[FN]
(6) Represents CMS Generation Company, CMSG Filer City Operating Company, CMSG
Grayling Company, CMSG Genesee Company, CMSG Recycling Company, CMSG
Lyonsdale Company, CMSG Chateaugay Company, CMSG Mon Valley Company, CMSG
Investment Company II, CMSG Montreal Company, CMS Operating S.A., CMSG
Horizon Energy Holdings, Ltd., CMSG Cebu Operating LDC and Jegurupadu CMS
Generation Company Ltd. consolidated with HYDRA-CO Enterprises, Inc.
included on the equity method of accounting.
</FN>
<PAGE> 31
HYDRA-CO ENTERPRISES, INC.
Consolidating Statement of Income
For the Year Ended December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
HYDRA-CO CMS HCE Inter- HYDRO-CO
Enter- Generation HCE Rockfort company Enter-
prises, Oper. Co. Hudson, Diesel, Elimina- prises
Inc.(7) II Inc. Inc. tions Consol.
<S> <C> <C> <C> <C> <C> <C>
Operating Revenue
Independent power production $ 17 $ 1 $ 2 $ 1 $ - $ 21
Other - - - - - -
------ ------ ------ ------ ------ ------
Total operating revenue 17 1 2 1 - 21
------ ------ ------ ------ ------ ------
Operating Expenses
Other operation expense 1 - - - - 1
Depreciation, depletion
and amortization 5 - - - - 5
General taxes - - - - - -
------ ------ ------ ------ ------ ------
Total operating expenses 6 - - - - 6
------ ------ ------ ------ ------ ------
Pretax Operating Income 11 1 2 1 - 15
------ ------ ------ ------ ------ ------
Other Income (Deductions) 4 - - - (3) 1
------ ------ ------ ------ ------ ------
Fixed Charges
Interest on long-term debt - - - - - -
Other interest - - - - - -
Capitalized interest - - - - - -
------ ------ ------ ------ ----- ------
Net fixed charges - - - - - -
------ ------ ------ ------ ------ ------
Income (Loss) Before Income Taxes 15 1 2 1 (3) 16
------ ------- ------ ------ ------ ------
Income Taxes 5 - 1 - - 6
------ ------ ------ ------ ------ ------
Net Income (Loss) $ 10 $ 1 $ 1 $ 1 $ (3) $ 10
====== ====== ====== ====== ====== ======
</TABLE>
[FN]
(7) Represents HYDRA-CO Enterprises, Inc., HCE Appomattox, Inc., Lakewood
Project Management, Inc., HCE Jamaica Development, Inc., HCE Lakewood,
Inc., HCE Jamaica, Inc., HCE Imperial Valley, Inc. and New Bern
Project Management, Inc. consolidated.
</FN>
<PAGE> 32
CMS GAS TRANSMISSION AND STORAGE COMPANY
Consolidating Statement of Income
For the Year Ended December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMS CMS CMS CMS CMS
CMS Gas CMS Gulf Coast Gas Jackson Saginaw Grand Lacs
Transmission Antrim Storage Argentina Pipeline Bay Holding
Company(8) Company Company Company Company Company Company
<S> <C> <C> <C> <C> <C> <C> <C>
Operating Revenue
Natural gas transmission,
storage and processing $ 9 $ 12 $ - $ 13 $ 2 $ 1 $ 8
Other - - - - - - -
------ ------ ------ ------ ------ ------ ------
Total operating revenue 9 12 - 13 2 1 8
------ ------ ------ ------ ------ ------ ------
Operating Expenses
Cost of gas sold 1 - - - - - -
Other operation expense 8 2 - - 1 - 6
Maintenance - - - - - - -
Depreciation, depletion
and amortization 2 2 - 1 - - 1
General taxes 1 1 - - - - -
------ ------ ------ ------ ------ ------ ------
Total operating expenses 12 5 - 1 1 - 7
------ ------ ------ ------ ------ ------ ------
Pretax Operating Income (3) 7 - 12 1 1 1
------ ------ ------ ------ ------ ------ ------
Other Income (Deductions)
Interest from affiliates - - - - - - -
Other, net 28 - - - - - -
------ ------ ------ ------ ------ ------ ------
Total other income
(deductions) 28 - - - - - -
------ ------ ------ ------ ------ ------ ------
Fixed Charges
Interest on long-term debt - 1 - - 1 - -
Other interest - - - - - - -
Capitalized interest (1) - - - - - -
------ ------ ------ ------ ------ ------ ------
Net fixed charges (1) 1 - - 1 - -
------ ------ ------ ------ ------ ------ ------
Income (Loss) Before Income Taxes 26 6 - 12 - 1 1
------ ------ ------ ------ ------ ------ ------
Income Taxes 5 2 - - - 1 -
------ ------ ------ ------ ------ ------ ------
Net Income (Loss) $ 21 $ 4 $ - $ 12 $ - $ - $ 1
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 33
CMS GAS TRANSMISSION AND STORAGE COMPANY
Consolidating Statement of Income
For the Year Ended December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
Cherokee CMS Gas Inter- CMS Gas
Petal Gas Transmission Company Transmission
Gas Storage Processing del Sur Elimina- Company
Company L.L.C. Company tions Consol.
<S> <C> <C> <C> <C> <C>
Operating Revenue
Natural gas transmission,
storage and processing $ 4 $ 36 $ 17 $ - $ 102
Other - - - - -
------ ------ ------ ------ ------
Total operating revenue 4 36 17 - 102
------ ------ ------ ------ ------
Operating Expenses
Cost of gas sold - 22 1 - 24
Other operation expense 1 5 4 - 27
Maintenance - - 1 - 1
Depreciation, depletion
and amortization 1 2 5 - 14
General taxes 1 - - - 3
------ ------ ------ ------ ------
Total operating expenses 3 29 11 - 69
------ ------ ------ ------ ------
Pretax Operating Income 1 7 6 - 33
------ ------ ------ ------ ------
Other Income (Deductions)
Interest from affiliates - - 1 - 1
Other, net - - - (28) -
------ ------ ------ ------ ------
Total other income
(deductions) - - 1 (28) 1
------ ------ ------ ------ ------
Fixed Charges
Interest on long-term debt - - - - 2
Other interest - - 2 - 2
Capitalized interest - - - - (1)
------ ------ ------ ------ ------
Net fixed charges - - 2 - 3
------ ------ ------ ------ ------
Income (Loss) Before Income Taxes 1 7 5 (28) 31
------ ------ ------ ------ ------
Income Taxes - - 2 - 10
------ ------ ------ ------ ------
Net Income (Loss) $ 1 $ 7 $ 3 $ (28) $ 21
====== ====== ====== ====== ======
</TABLE>
[FN]
(8) Represents CMS Gas Transmission and Storage Company and CMS Saginaw
Bay Lateral Company consolidated.
</FN>
<PAGE> 34
CMS ENERGY CORPORATION
Consolidating Balance Sheet - Assets
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
Consumers CMS Inter-
Energy Enterprises company CMS Energy
CMS Energy Company Company Elimina- Corporation
Corp.(1) Consol. Consol. tions Consol.
<S> <C> <C> <C> <C> <C>
Plant and Property (At Cost)
Electric $ - $6,491 $ - $ - $ 6,491
Gas - 2,322 206 - 2,528
Oil and gas properties - - 1,257 - 1,257
Other 10 24 141 (7) 168
------ ------ ------ ------- -------
10 8,837 1,604 (7) 10,444
Less accumulated depreciation,
depletion and amortization 4 4,603 663 - 5,270
------ ------ ------ ------- -------
6 4,234 941 (7) 5,174
Construction work-in-progress - 145 116 - 261
------ ------ ------ ------- -------
6 4,379 1,057 (7) 5,435
------ ------ ------ ------- -------
Investments
Associated companies 3,839 278 77 (4,194) -
Independent power production - - 790 - 790
Natural gas transmission, storage
and processing - - 256 - 256
International energy distribution - - 255 - 255
First Midland Limited
Partnership - 242 - - 242
Midland Cogeneration
Venture - 171 - - 171
Other - 7 41 - 48
------ ------ ------ ------- -------
3,839 698 1,419 (4,194) 1,762
------ ------ ------ ------- -------
Current Assets
Cash and temporary cash
investments 2 7 58 - 67
Accounts receivable 62 (68) 406 (163) 237
Accrued revenues - 212 27 - 239
Inventories to average cost
Gas in underground storage - 197 - - 197
Materials and supplies - 63 22 - 85
Generating plant fuel
stock - 35 - - 35
Deferred income taxes 3 22 13 - 38
Postretirement benefits - 25 - - 25
Prepayments and other 5 161 49 - 215
------ ------ ------ ------- -------
72 654 575 (163) 1,138
------ ------ ------ ------- -------
Non-current Assets
Nuclear decommissioning
trust funds - 486 - - 486
Postretirement benefits - 404 - - 404
Abandoned Midland project - 93 - - 93
Other 310 235 164 (234) 475
------ ------ ------ ------- -------
310 1,218 164 (234) 1,458
------ ------ ------ ------- -------
Total Assets $4,227 $6,949 $3,215 $(4,598) $ 9,793
====== ====== ====== ======= =======
</TABLE>
[FN]
(1) Represents CMS Energy Corporation and CMS Energy Trust I with Consumers
Energy Company and CMS Enterprises Company included on the equity method
of accounting.
</FN>
<PAGE> 35
CMS ENERGY CORPORATION
Consolidating Balance Sheet - Equity and Liabilities
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
Consumers CMS Inter-
Energy Enterprises company CMS Energy
CMS Energy Company Company Elimina- Corporation
Corp.(1) Consol. Consol. tions Consol.
<S> <C> <C> <C> <C> <C>
Capitalization
Common Stockholders' Equity
Common stock $ 1 $ 841 $ - $ (841) $ 1
Other paid-in-capital 2,478 452 2,311 (2,974) 2,267
Currency translation (96) - (98) 98 (96)
Revaluation capital (6) 58 35 (93) (6)
Retained earnings (189) 363 (128) (235) (189)
------ ------ ------ ------- ------
2,188 1,714 2,120 (4,045) 1,977
Preferred stock - 238 149 (149) 238
Company-obligated mandatorily
redeemable Trust
Preferred Securities of:
Consumers Power Company
Financing I (a) - 100 - - 100
Consumers Energy Company
Financing II (a) - 120 - - 120
Company-obligated convertible
Trust Preferred Securities of
CMS Energy Trust I (b) 173 - - - 173
Long-term debt 1,781 1,369 356 (234) 3,272
Non-current capital leases - 74 1 - 75
------ ------ ------ ------- ------
4,142 3,615 2,626 (4,428) 5,955
------ ------ ------ ------- ------
Current Liabilities
Current portion of long-term
debt 40 545 24 - 609
Current capital leases - 34 - - 34
Notes payable 13 377 57 (65) 382
Accounts payable 11 171 223 (7) 398
Accounts payable - related
parties 10 79 79 (88) 80
Power purchases - 47 - - 47
Accrued interest 22 32 5 (8) 51
Accrued taxes 16 244 12 - 272
Accrued refunds - 12 - - 12
Other 7 136 49 (2) 190
------ ------ ------ ------- ------
119 1,677 449 (170) 2,075
------ ------ ------ ------- ------
Non-current Liabilities
Deferred income taxes (50) 688 105 - 743
Postretirement benefits 12 489 13 - 514
Deferred investment tax credit - 149 2 - 151
Power purchases - 133 - - 133
Regulatory liabilities for
income taxes, net - 54 - - 54
Other 4 144 20 - 168
------ ------ ------ ------- ------
(34) 1,657 140 - 1,763
------ ------ ------ ------- ------
Total Stockholders' Equity
and Liabilities $4,227 $6,949 $3,215 $(4,598) $9,793
====== ====== ====== ======= ======
</TABLE>
[FN]
(a) The primary asset of Consumers Power Company Financing I is $103 million
principal amount of 8.36 percent subordinated deferrable interest notes due 2015
from Consumers. The primary asset of Consumers Energy Company Financing II is
$124 million principal amount of 8.20 percent subordinated deferrable interest
notes due 2027 from Consumers.
(b) The primary asset of CMS Energy Trust I is $178 million principal amount of
7.75 percent convertible subordinated debentures due 2027 from CMS Energy.
(1) Represents CMS Energy Corporation and Consumers Energy Company and CMS
Enterprises Company included on the equity method of accounting.
</FN>
<PAGE> 36
CONSUMERS ENERGY COMPANY
Consolidating Balance Sheet - Assets
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
Michigan Huron CMS Inter- Consumers
Consumers Gas Hydro- Midland CMS company Energy
Energy Storage carbons Holdings Midland Elimina- Company
Company(2) Company Inc. Company Inc. tions Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Plant and Property (At Cost)
Electric $6,491 $ - $ - $ - $ - $ - $6,491
Gas 2,211 111 - - - - 2,322
Other 24 - - - - - 24
------ ------ ------ ------ ------ ------ ------
8,726 111 - - - - 8,837
Less accumulated depreciation,
depletion and amortization 4,550 53 - - - - 4,603
------ ------ ------ ------ ------ ------ ------
4,176 58 - - - - 4,234
Construction work-in-progress 143 2 - - - - 145
------ ------ ------ ------ ------ ------ ------
4,319 60 - - - - 4,379
------ ------ ------ ------ ------ ------ ------
Investments
Associated companies 592 - - - - (314) 278
First Midland Limited
Partnership - - - 242 - - 242
Midland Cogeneration
Venture - - - - 171 - 171
Other - - 7 - - - 7
------ ------ ------ ------ ------ ------ ------
592 - 7 242 171 (314) 698
------ ------ ------ ------ ------ ------ ------
Current Assets
Cash and temporary cash
investments 6 - 1 - - - 7
Accounts receivable (67) 10 - - 10 (21) (68)
Accrued revenues 212 - - - - - 212
Inventories to average cost
Gas in underground storage 197 - - - - - 197
Materials and supplies 63 - - - - - 63
Generating plant fuel
stock 35 - - - - - 35
Deferred income taxes 5 - - 17 - - 22
Postretirement benefits 25 - - - - - 25
Prepayments and other 161 - - - - - 161
------ ------ ------ ------ ------ ------ ------
637 10 1 17 10 (21) 654
------ ------ ------ ------ ------ ------- ------
Non-current Assets
Nuclear decommissioning
trust funds 486 - - - - - 486
Postretirement benefits 399 5 - - - - 404
Abandoned Midland project 93 - - - - - 93
Other 461 1 - - - (227) 235
------ ------ ------ ------ ------ ------ ------
1,439 6 - - - (227) 1,218
------ ------ ------ ------ ------ ------ ------
Total Assets $6,987 $ 76 $ 8 $ 259 $ 181 $ (562) $6,949
====== ====== ====== ====== ====== ====== ======
</TABLE>
[FN]
(2) Represents Consumers Energy Company, CMS Engineering Company, ES
Services Company, Consumers EnergyGuard Services, Inc. and MEC
Development Corporation consolidated with Michigan Gas Storage
Company, CMS Midland Holdings Company, CMS Midland, Inc. and Huron
Hydrocarbons, Inc. included on the equity method of accounting.
</FN>
<PAGE> 37
CONSUMERS ENERGY COMPANY
Consolidating Balance Sheet - Equity and Liabilities
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
Michigan Huron CMS Inter- Consumers
Consumers Gas Hydro- Midland CMS company Energy
Energy Storage carbons Holdings Midland Elimina- Company
Company(2) Company Inc. Company Inc. tions Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Capitalization
Common Stockholders' Equity
Common stock $ 841 $ 15 $ - $ - $ - $ (15) $ 841
Other paid-in-capital 459 - 3 23 153 (186) 452
Revaluation capital 58 - - - - - 58
Retained earnings 363 24 2 40 47 (113) 363
------ ------ ------ ------ ------ ------ ------
1,721 39 5 63 200 (314) 1,714
Preferred stock 238 - - - - - 238
Company-obligated mandatorily
redeemable Trust Preferred
Securities of:
Consumers Power Company
Financing I (a) 100 - - - - - 100
Consumers Energy Company
Financing II (a) 120 - - - - - 120
Long-term debt 1,574 22 - - - (227) 1,369
Non-current capital leases 74 - - - - - 74
------ ------ ------ ------ ------ ------ ------
3,827 61 5 63 200 (541) 3,615
------ ------ ------ ------ ------ ------ ------
Current Liabilities
Current portion of long-term
debt 545 - - - - - 545
Current capital leases 34 - - - - - 34
Notes payable 394 - - - - (17) 377
Accounts payable 168 4 - - - (1) 171
Accounts payable - related
parties 81 1 - - - (3) 79
Power purchases 47 - - - - - 47
Accrued interest 32 - - - - - 32
Accrued taxes 250 - - (6) - - 244
Accrued refunds 12 - - - - - 12
Other 135 1 - - - - 136
------ ------ ------ ------ ------ ------ ------
1,698 6 - (6) - (21) 1,677
------ ------ ------ ------ ------ ------ ------
Non-current Liabilities
Deferred income taxes 524 4 3 177 (20) - 688
Postretirement benefits 484 5 - - - - 489
Deferred investment tax credit 123 - - 25 1 - 149
Power purchases 133 - - - - - 133
Regulatory liabilities for
income taxes, net 54 - - - - - 54
Other 144 - - - - - 144
------ ------ ------ ------ ------ ------ ------
1,462 9 3 202 (19) - 1,657
------ ------ ------ ------ ------ ------ ------
Total Stockholders' Equity
and Liabilities $6,987 $ 76 $ 8 $ 259 $ 181 $ (562) $6,949
====== ====== ====== ====== ====== ====== ======
</TABLE>
[FN]
(a) The primary asset of Consumers Power Company Financing I is $103 million
principal amount of 8.36 percent subordinated deferrable interest notes due 2015
from Consumers. The primary asset of Consumers Energy Company Financing II is
$124 million principal amount of 8.20 percent subordinated deferrable interest
notes due 2027 from Consumers.
(2) Represents Consumers Energy Company, CMS Engineering Company, ES
Services Company, Consumers EnergyGuard Services, Inc. and MEC
Development Corporation consolidated with Michigan Gas Storage
Company, CMS Midland Holdings Company, CMS Midland, Inc. and Huron
Hydrocarbons, Inc. included on the equity method of accounting.
</FN>
<PAGE> 38
CMS ENTERPRISES COMPANY
Consolidating Balance Sheet - Assets
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMS NOMECO CMS CMS CMS Gas
CMS Oil and Generation Utility CMS CMS Tran. & Stor.
Enterprises Gas Co. Co. Services Land MS & T Company
Company(3) Consol. Consol. Inc. Company Company Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Plant and Property (At Cost)
Oil and gas properties $ - $1,257 $ - $ - $ - $ - $ -
Natural gas transmission,
storage and processing - - - - - - 207
Independent power production - - 123 - - - -
Other - - - - 16 4 -
------ ------ ------ ------ ------ ------ ------
- 1,257 123 - 16 4 207
Less accumulated depreciation,
depletion and amortization - 634 7 - - 1 21
------ ------ ------ ------ ------ ------ ------
- 623 116 - 16 3 186
Construction work-in-progress - - 115 - - - 1
------ ------ ------ ------ ------ ------ ------
- 623 231 - 16 3 187
------ ------ ------ ------ ------ ------ ------
Investments
Associated companies 2,322 - 16 - - - -
Independent power production - - 779 - - - 11
Natural gas transmission,
storage and processing - - - - - - 256
International energy
distribution - - - - - - -
Other (4) 3 - - 16 26 -
------ ------ ------ ------ ------ ------ ------
2,318 3 795 - 16 26 267
------ ------ ------ ------ ------ ------ ------
Current Assets
Cash and temporary cash
investments 1 8 25 - - 4 16
Accounts receivable 8 42 128 1 4 139 40
Accrued revenues - 27 - - - - -
Materials and supplies - 14 7 - - - 1
Deferred income taxes 2 8 3 - - - -
Prepayments and other - 10 9 - - 28 2
------ ------ ------ ------ ------ ------ ------
11 109 172 1 4 171 59
------ ------ ------ ------ ------ ------ ------
Non-current Assets
Postretirement benefits - - - - - - -
Other 7 12 115 - - 1 25
------ ------ ------ ------ ------ ------ ------
7 12 115 - - 1 25
------ ------ ------ ------ ------ ------ -----
Total Assets $2,336 $ 747 $1,313 $ 1 $ 36 $ 201 $ 538
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 39
CMS ENTERPRISES COMPANY
Consolidating Balance Sheet - Assets
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
CMS Inter- CMS
Electric CMS company Enterprises
& Gas Capital Elimina- Company
Company Corp. tions Consol.
<S> <C> <C> <C> <C>
Plant and Property (At Cost)
Oil and gas properties $ - $ - $ - $1,257
Natural gas transmission,
storage and processing - - (1) 206
Independent power production - - - 123
Other - - (2) 18
------ ------ ------- ------
- - (3) 1,604
Less accumulated depreciation,
depletion and amortization - - - 663
------ ------ ------- ------
- - (3) 941
Construction work-in-progress - - - 116
------ ------ ------- ------
- - (3) 1,057
------ ------ ------- ------
Investments
Associated companies - - (2,261) 77
Independent power production - - - 790
Natural gas transmission, storage
and processing - - - 256
International energy distribution 255 - - 255
Other - - - 41
------ ------ ------- ------
255 - (2,261) 1,419
------ ------ ------- ------
Current Assets
Cash and temporary cash
investments - 4 - 58
Accounts receivable 7 74 (37) 406
Accrued revenues - - - 27
Materials and supplies - - - 22
Deferred income taxes - - - 13
Prepayments and other - - - 49
------ ------ ------- ------
7 78 (37) 575
------ ------ ------- ------
Non-current Assets
Postretirement benefits - - - -
Other 4 - - 164
------ ------ ------- ------
4 - - 164
------ ------ ------- ------
Total Assets $ 266 $ 78 $(2,301) $3,215
====== ====== ======= ======
</TABLE>
[FN]
(3) Represents CMS Enterprises Company, KJL Limited, Inc., CMS Capital
Financial Services, Inc., CMS Lake Muskegon Company and Monarch Management
Company consolidated with CMS NOMECO Oil and Gas Company, CMS Generation
Company, CMS Utility Services, Inc., CMS Land Company, CMS Capital
Corporation, CMS Marketing, Services and Trading Company, CMS Gas
Transmission and Storage Company and CMS Electric and Gas Company included
on the equity method of accounting.
</FN>
<PAGE> 40
CMS ENTERPRISES COMPANY
Consolidating Balance Sheet - Equity and Liabilities
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMS NOMECO CMS CMS CMS Gas
CMS Oil and Generation Utility CMS CMS Tran. & Stor.
Enterprises Gas Co. Co. Services Land MS & T Company
Company(3) Consol. Consol. Inc. Company Company Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Capitalization
Common Stockholders' Equity
Common stock $ - $ - $ - $ - $ - $ - $ -
Other paid-in-capital 2,312 174 1,272 4 23 44 442
Currency translation (98) - (88) - - - (9)
Revaluation capital 35 - (7) - - - -
Retained earnings (129) 239 (153) (4) 8 3 24
------ ------ ------ ------ ------ ------ ------
2,120 413 1,024 - 31 47 457
Preferred stock 149 - - - - - -
Long-term debt - 186 150 - - - 20
Non-current capital leases - - 1 - - - -
------ ------ ------ ------ ------ ------ ------
2,269 599 1,175 - 31 47 477
------ ------ ------ ------ ------ ------ ------
Current Liabilities
Current portion of long-term
debt - 5 16 - - - 3
Current capital leases - - - - - - -
Notes payable 8 1 2 - - 5 3
Accounts payable 3 72 18 1 - 136 13
Accounts payable - related
parties 54 4 13 - - 10 2
Accrued interest - 2 2 - - - -
Accrued taxes (2) (17) 15 - 2 - 14
Other 4 6 35 - - 2 2
------ ------ ------ ------ ------ ------ ------
67 73 101 1 2 153 37
------ ------ ------ ------ ------ ------ ------
Non-current Liabilities
Postretirement benefits 2 5 2 1 - 1 2
Deferred income taxes (2) 69 21 (1) 3 - 15
Deferred investment tax credit - - 2 - - - -
Other - 1 12 - - - 7
------ ------ ------ ------ ------ ------ ------
- 75 37 - 3 1 24
------ ------ ------ ------ ------ ------ ------
Total Stockholders' Equity
and Liabilities $2,336 $ 747 $1,313 $ 1 $ 36 $ 201 $ 538
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 41
CMS ENTERPRISES COMPANY
Consolidating Balance Sheet - Equity and Liabilities
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
CMS Inter- CMS
Electric CMS company Enterprises
& Gas Capital Elimina- Company
Company Corp. tions Consol.
<S> <C> <C> <C> <C>
Capitalization
Common Stockholders' Equity
Common stock $ - $ - $ - $ -
Other paid-in-capital 264 10 (2,234) 2,311
Currency translation (1) - 98 (98)
Revaluation capital - - 7 35
Retained earnings (1) 1 (116) (128)
------ ------ ------- ------
262 11 (2,245) 2,120
Preferred stock - - - 149
Long-term debt - - - 356
Non-current capital leases - - - 1
------ ------ ------- ------
262 11 (2,245) 2,626
------ ------ ------- ------
Current Liabilities
Current portion of long-term
debt - - - 24
Current capital leases - - - -
Notes payable - 65 (27) 57
Accounts payable 2 - (22) 223
Accounts payable - related
parties 2 1 (7) 79
Accrued interest - 1 - 5
Accrued taxes - - - 12
Other - - - 49
------ ------ ------- ------
4 67 (56) 449
------ ------ ------- ------
Non-current Liabilities
Postretirement benefits - - - 13
Deferred income taxes - - - 105
Deferred investment tax credit - - - 2
Other - - - 20
------ ------ ------- ------
- - - 140
------ ------ ------- ------
Total Stockholders' Equity
and Liabilities $ 266 $ 78 $(2,301) $3,215
====== ====== ======= ======
</TABLE>
[FN]
(3) Represents CMS Enterprises Company, KJL Limited, Inc., CMS Capital
Financial Services, Inc., CMS Lake Muskegon Company and Monarch Management
Company consolidated with CMS NOMECO Oil and Gas Company, CMS Generation
Company, CMS Utility Services, Inc., CMS Land Company, CMS Capital
Corporation, CMS Marketing, Services and Trading Company, CMS Gas
Transmission and Storage Company and CMS Electric and Gas Company included
on the equity method of accounting.
</FN>
<PAGE> 42
CMS NOMECO OIL AND GAS COMPANY
Consolidating Balance Sheet - Assets
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMS Explota- CMS NOMECO CMS CMS CMS
CMS NOMECO NOMECO ciones Inter- NOMECO NOMECO NOMECO
Oil and Gas Alba Nomeco national Ecuador Venezuela Interna.
Company(4) LDC Inc. Ltd. LDC LDC Inc. Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Plant and Property (At Cost)
Oil and gas properties $ 790 $ 7 $ 41 $ - $ 155 $ 45 $ 105
Other - - - - - - -
------ ------ ------ ------ ------ ------ ------
790 7 41 - 155 45 105
Less accumulated depreciation,
depletion and amortization 559 - 7 - 24 5 13
------ ------ ------ ------ ------ ------ ------
231 7 34 - 131 40 92
Construction work-in-progress - - - - - - -
------ ------ ------ ------ ------ ------ ------
231 7 34 - 131 40 92
------ ------ ------ ------ ------ ------ ------
Investments
Associated companies 344 - - 173 - - -
Other - - - - - - -
------ ------ ------ ------ ------ ------ ------
344 - - 173 - - -
------ ------ ------ ------ ------ ------ ------
Current Assets
Cash and temporary cash
investments - - 1 - - - 3
Accounts receivable 55 - 2 2 (3) (3) 24
Accrued revenues 12 - 1 - 2 7 2
Materials and supplies 1 - - - 2 1 6
Deferred income taxes 8 - - - - - -
Prepayments and other - - - - - - 9
------ ------ ------ ------ ------ ------ ------
76 - 4 2 1 5 44
------ ------ ------ ------ ------ ------ ------
Non-current Assets
Postretirement benefits - - - - - - -
Other 4 1 - - - - -
------ ------ ------ ------ ------ ------ ------
4 1 - - - - -
------ ------ ------ ------ ------ ------ ------
Total Assets $ 655 $ 8 $ 38 $ 175 $ 132 $ 45 $ 136
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 43
CMS NOMECO OIL AND GAS COMPANY
Consolidating Balance Sheet - Assets
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
CMS NOMECO
CMS Equatorial CMS NOMECO
NOMECO NOMECO Guinea Terra NOMECO Colombia
E.G. China Oil Oil & Gas Energy, Holdings Oil
LDC Company Co. Ltd. Ltd. Company
<S> <C> <C> <C> <C> <C> <C>
Plant and Property (At Cost)
Oil and gas properties $ 5 $ - $ 23 $ 77 $ - $ 9
Other - - - - - -
------ ------ ------ ------ ------ ------
5 - 23 77 - 9
Less accumulated depreciation,
depletion and amortization - - 5 12 - 9
------ ------ ------ ------ ------ ------
5 - 18 65 - -
Construction work-in-progress - - - - - -
------ ------ ------ ------ ------ ------
5 - 18 65 - -
------ ------ ------ ------ ------ ------
Investments
Associated companies - - - - 5 -
Other - - - 3 - -
------ ------ ------ ------ ------ ------
- - - 3 5 -
------ ------ ------ ------ ------ ------
Current Assets
Cash and temporary cash
investments - - - 4 - -
Accounts receivable - 1 3 31 - 6
Accrued revenues - - 1 2 - -
Materials and supplies - - - 4 - -
Deferred income taxes - - - - - -
Prepayments and other - - 1 - - -
------ ------ ------ ------ ------ ------
- 1 5 41 - 6
------ ------ ------ ------ ------ ------
Non-current Assets
Postretirement benefits - - - - - -
Other 1 - - 6 - -
------ ------ ------ ------ ------ ------
1 - - 6 - -
------ ------ ------ ------ ------ ------
Total Assets $ 6 $ 1 $ 23 $ 115 $ 5 $ 6
====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 44
CMS NOMECO OIL AND GAS COMPANY
Consolidating Balance Sheet - Assets
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
Inter- CMS NOMECO
company Oil and Gas
Elimina- Company
tions Consol.
<S> <C> <C>
Plant and Property (At Cost)
Oil and gas properties $ - $1,257
Other - -
------ ------
- 1,257
Less accumulated depreciation,
depletion and amortization - 634
------ ------
- 623
Construction work-in-progress - -
------ ------
- 623
------ ------
Investments
Associated companies (522) -
Other - 3
------ ------
(522) 3
------ ------
Current Assets
Cash and temporary cash
investments - 8
Accounts receivable (76) 42
Accrued revenues - 27
Materials and supplies - 14
Deferred income taxes - 8
Prepayments and other - 10
------ ------
(76) 109
------ ------
Non-current Assets
Postretirement benefits - -
Other - 12
------ ------
- 12
------ ------
Total Assets $ (598) $ 747
====== ======
</TABLE>
[FN]
(4) Represents CMS NOMECO Oil and Gas Company, NOMECO Thailand Oil Company and
CMS NOMECO Pipeline Company consolidated with CMS NOMECO International,
Inc. included on the equity method of accounting.
</FN>
<PAGE> 45
CMS NOMECO OIL AND GAS COMPANY
Consolidating Balance Sheet - Equity and Liabilities
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMS Explota- CMS CMS NOMECO CMS
CMS NOMECO NOMECO ciones Terra NOMECO Inter- NOMECO
Oil and Gas Alba Nomeco Energy, Ecuador national Interna.
Company(4) LDC Inc. Ltd. LDC Ltd. Inc. Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Capitalization
Common Stockholders' Equity
Common stock $ - $ - $ - $ - $ - $ 1 $ -
Other paid-in-capital 177 6 32 64 111 137 35
Retained earnings 238 1 3 19 12 5 25
------ ------ ------ ------ ------ ------ ------
415 7 35 83 123 143 60
Preferred stock - - - - - - -
Long-term debt 180 - - 2 - - 4
Non-current capital leases - - - - - - -
------ ------ ------ ------ ------ ------ ------
595 7 35 85 123 143 64
------ ------ ------ ------ ------ ------ ------
Current Liabilities
Current portion of long-term
debt - - - - - - 4
Current capital leases - - - - - - -
Notes payable 1 - - - - 28 -
Accounts payable 25 - 1 17 3 - 22
Accounts payable - related
parties (5) - - - - 4 42
Accrued interest 2 - - - - - -
Accrued taxes (19) - - - 2 - -
Other 3 - - 2 - - 1
------ ------ ------ ------ ------ ------ ------
7 - 1 19 5 32 69
------ ------ ------ ------ ------ ------ ------
Non-current Liabilities
Postretirement benefits 5 - - - - - -
Deferred income taxes 48 - 2 11 4 - 4
Deferred investment tax credit - - - - - - -
Other - 1 - - - - (1)
------ ------ ------ ------ ------ ------ ------
53 1 2 11 4 - 3
------ ------ ------ ------ ------ ------ ------
Total Stockholders' Equity
and Liabilities $ 655 $ 8 $ 38 $ 115 $ 132 $ 175 $ 136
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 46
CMS NOMECO OIL AND GAS COMPANY
Consolidating Balance Sheet - Equity and Liabilities
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
CMS NOMECO
CMS Equatorial CMS NOMECO CMS
NOMECO NOMECO Guinea NOMECO NOMECO Colombia NOMECO
E.G. China Oil Oil & Gas Pipeline Holdings Oil Venezuela
LDC Company Co. Company Ltd. Company LDC
<S> <C> <C> <C> <C> <C> <C> <C>
Capitalization
Common Stockholders' Equity
Common stock $ - $ - $ - $ - $ - $ - $ -
Other paid-in-capital 4 3 - - (1) 30 41
Retained earnings 1 (2) 10 - 4 (23) 2
------ ------ ------ ------ ------ ------ ------
5 1 10 - 3 7 43
Preferred stock - - - - - - -
Long-term debt - - - - - - -
Non-current capital leases - - - - - - -
------ ------ ------ ------ ------ ------ ------
5 1 10 - 3 7 43
------ ------ ------ ------ ------ ------ ------
Current Liabilities
Current portion of long-term
debt - - 1 - - - -
Current capital leases - - - - - - -
Notes payable - - 4 - - - -
Accounts payable - - 3 - - - 1
Accounts payable - related
parties - - 3 - 2 2 -
Accrued interest - - - - - - -
Accrued taxes - - - - - - -
Other - - - - - - -
------ ------ ------ ------ ------ ------ ------
- - 11 - 2 2 1
------ ------ ------ ------ ------ ------ ------
Non-current Liabilities
Postretirement benefits - - - - - - -
Deferred income taxes - - 2 - - (3) 1
Deferred investment tax credit - - - - - - -
Other 1 - - - - - -
------ ------ ------ ------ ------ ------ ------
1 - 2 - - (3) 1
------ ------ ------ ------ ------ ------ ------
Total Stockholders' Equity
and Liabilities $ 6 $ 1 $ 23 $ - $ 5 $ 6 $ 45
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 47
CMS NOMECO OIL AND GAS COMPANY
Consolidating Balance Sheet - Equity and Liabilities
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
Inter- CMS NOMECO
company Oil and Gas
Elimina- Company
tions Consol.
<S> <C> <C>
Capitalization
Common Stockholders' Equity
Common stock $ (1) $ -
Other paid-in-capital (465) 174
Retained earnings (56) 239
------ ------
(522) 413
Preferred stock - -
Long-term debt - 186
Non-current capital leases - -
------ ------
(522) 599
------ ------
Current Liabilities
Current portion of long-term
debt - 5
Current capital leases - -
Notes payable (32) 1
Accounts payable - 72
Accounts payable - related
parties (44) 4
Accrued interest - 2
Accrued taxes - (17)
Other - 6
------ ------
(76) 73
------ ------
Non-current Liabilities
Postretirement benefits - 5
Deferred income taxes - 69
Deferred investment tax credit - -
Other - 1
------ ------
- 75
------ ------
Total Stockholders' Equity
and Liabilities $ (598) $ 747
====== ======
</TABLE>
[FN]
(4) Represents CMS NOMECO Oil and Gas Company and NOMECO Thailand Oil Company
consolidated with CMS NOMECO International, Inc. included on the equity
method of accounting.
</FN>
<PAGE> 48
CMS NOMECO INTERNATIONAL, INC.
Consolidating Balance Sheet - Assets
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMS CMS NOMECO CMS CMS NOMECO CMS Inter- CMS
NOMECO International NOMECO International NOMECO company NOMECO
International Congo, Inter. Eq. Tunisia, Transp., Elimina- Interna.
Inc. Inc. Guinea, Inc. Inc. Inc. tions Inc. Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Plant and Property (At Cost)
Oil and gas properties $ 3 $ 56 $ 23 $ 23 $ - $ - $ 105
Other - - - - - - -
------ ------ ------ ------ ------ ------ ------
3 56 23 23 - - 105
Less accumulated depreciation,
depletion and amortization 1 10 2 - - - 13
------ ------ ------ ------ ------ ------ ------
2 46 21 23 - - 92
Construction work-in-progress - - - - - - -
------ ------ ------ ------ ------ ------ ------
2 46 21 23 - - 92
------ ------ ------ ------ ------ ------ ------
Investments
Associated companies 53 - - - - (53) -
Other - - - - - - -
------ ------ ------ ------ ------ ------ ------
53 - - - - (53) -
------ ------ ------ ------ ------ ------ ------
Current Assets
Cash and temporary cash
investments - 1 1 1 - - 3
Accounts receivable 51 7 12 2 - (48) 24
Accrued revenues - 1 1 - - - 2
Materials and supplies - 4 - 2 - - 6
Prepayments and other - 8 1 - - - 9
------ ------ ------ ------ ------ ------ ------
51 21 15 5 - (48) 44
------ ------ ------ ------ ------ ------ ------
Non-current Assets
Postretirement benefits - - - - - - -
Other - - - - - - -
------ ------ ------ ------ ------ ------ ------
- - - - - - -
------ ------ ------ ------ ------ ------ ------
Total Assets $ 106 $ 67 $ 36 $ 28 $ - $ (101) $ 136
====== ====== ====== ====== ====== ====== ======
</TABLE>
<PAGE> 49
CMS NOMECO INTERNATIONAL, INC.
Consolidating Balance Sheet - Equity and Liabilities
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMS CMS NOMECO CMS CMS NOMECO CMS Inter CMS
NOMECO International NOMECO International NOMECO company NOMECO
International Congo, Inter. Eq. Tunisia, Int'l Elimina- Interna.
Inc.(5) Inc. Guinea, Inc. Inc. Yemen, Inc. tions Inc. Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Capitalization
Common Stockholders' Equity
Common stock $ - $ - $ - $ - $ - $ - $ -
Other paid-in-capital 36 20 5 9 - (35) 35
Retained earnings 24 12 7 - - (18) 25
------ ------ ------ ------ ------ ------ ------
60 32 12 9 - (53) 60
Preferred stock - - - - - - -
Long-term debt - 4 - - - - 4
Non-current capital leases - - - - - - -
------ ------ ------ ------ ------ ------ ------
60 36 12 9 - (53) 64
------ ------ ------ ------ ------ ------ ------
Current Liabilities
Current portion of long-term
debt - 3 1 - - - 4
Current capital leases - - - - - - -
Notes payable - - - - - - -
Accounts payable - 12 7 3 - - 22
Accounts payable - related
parties 45 16 14 15 - (48) 42
Accrued interest - - - - - - -
Accrued taxes - - - - - - -
Other 1 - - - - - 1
------ ------ ------ ------ ------ ------ ------
46 31 22 18 - (48) 69
------ ------ ------ ------ ------ ------ ------
Non-current Liabilities
Postretirement benefits - - - - - - -
Deferred income taxes - 1 2 1 - - 4
Deferred investment tax credit - - - - - - -
Other - (1) - - - - (1)
------ ------ ------ ------ ------ ------ ------
- - 2 1 - - 3
------ ------ ------ ------ ------ ------ ------
Total Stockholders' Equity
and Liabilities $ 106 $ 67 $ 36 $ 28 $ - $ (101) $ 136
====== ====== ====== ====== ====== ====== ======
</TABLE>
[FN]
(5) Represents CMS NOMECO International, Inc. and CMS NOMECO International
Transportation, Inc. consolidated.
</FN>
<PAGE> 50
CMS GENERATION COMPANY
Consolidating Balance Sheet - Assets
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMSG CMSG CMSG CMSG
CMS Honey Filer CMSG Grayling CMSG Filer
Generation Lake City Grayling Holdings Operating City Oper.
Co. (6) Company Company Company Company Company Company
<S> <C> <C> <C> <C> <C> <C> <C>
Plant and Property (At Cost)
Independent power production $ 1 $ - $ - $ - $ - $ - $ -
Less accumulated depreciation,
depletion and amortization - - - - - - -
------ ------ ------ ------ ------ ------ ------
1 - - - - - -
Construction work-in-progress - - - - - - -
------ ------ ------ ------ ------ ------ ------
1 - - - - - -
------ ------ ------ ------ ------ ------ ------
Investments
Associated companies 925 - - - - - -
Other 23 36 13 - 9 - -
------ ------ ------ ------ ------ ------ ------
948 36 13 - 9 - -
------ ------ ------ ------ ------ ------ ------
Current Assets
Cash and temporary cash
investments (1) - - - - 1 -
Accounts receivable 138 - - - - 7 1
Materials and supplies - - - - - - -
Deferred income taxes 3 - - - - - -
Prepayments and other - - - - - - -
------ ------ ------ ------ ------ ------ ------
140 - - - - 8 1
------ ------ ------ ------ ------ ------ ------
Non-current Assets
Postretirement benefits - - - - - - -
Other 65 - - 2 - - -
------ ------ ------ ------ ------ ------ ------
65 - - 2 - - -
------ ------ ------ ------ ------ ------ ------
Total Assets $1,154 $ 36 $ 13 $ 2 $ 9 $ 8 $ 1
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 51
CMS GENERATION COMPANY
Consolidating Balance Sheet - Assets
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
CMSG Mid- CMSG HYDRA-CO
Resource CMS CMSG Michigan Invest. CMSG Enter-
Development Generation Recycling Recycling Company Cebu prises
Company S.A. Company L.L.C. I LDC Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Plant and Property (At Cost)
Independent power production $ - $ - $ - $ 3 $ - $ - $ -
Less accumulated depreciation,
depletion and amortization - - - 1 - - -
------ ------ ------ ------ ------ ------ ------
- - - 2 - - -
Construction work-in-progress - - - - - - -
------ ------ ------ ------ ------ ------ ------
- - - 2 - - -
------ ------ ------ ------ ------ ------ ------
Investments
Associated companies - - 2 - 233 - -
Other - 44 - - 466 13 136
------ ------ ------ ------ ------ ------ ------
- 44 2 - 699 13 136
------ ------ ------ ------ ------ ------ ------
Current Assets
Cash and temporary cash
investments - - - - 4 - 2
Accounts receivable 17 1 - 1 354 1 17
Materials and supplies - - - - - - -
Deferred income taxes - - - - - - -
Prepayments and other - - - - - - -
------ ------ ------ ------ ------ ------ ------
17 1 - 1 358 1 19
------ ------ ------ ------ ------ ------ ------
Non-current Assets
Postretirement benefits - - - - - - -
Other - - - 2 - - 20
------ ------ ------ ------ ------ ------ ------
- - - 2 - - 20
------ ------ ------ ------ ------ ------ ------
Total Assets $ 17 $ 45 $ 2 $ 5 $1,057 $ 14 $ 175
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 52
CMS GENERATION COMPANY
Consolidating Balance Sheet - Assets
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
Centrales Oxford/ CMSG CMSG
CMSG CMSG Termicas CMSG CMS Invest. Cebu Oper.
Holdings Altoona Mendoza Pinamucan Development Company LDC
Company Company S.A. LDC L.P. III Company
<S> <C> <C> <C> <C> <C> <C> <C>
Plant and Property (At Cost)
Independent power production $ - $ - $ 46 $ - $ 2 $ - $ -
Less accumulated depreciation,
depletion and amortization - - 5 - - - -
------ ------ ------ ------ ------ ------ ------
- - 41 - 2 - -
Construction work-in-progress - - 115 - - - -
------ ------ ------ ------ ------ ------ ------
- - 156 - 2 - -
------ ------ ------ ------ ------ ------ ------
Investments
Associated companies - - - - - 23 -
Other 9 - - 8 6 16 -
------ ------ ------ ------ ------ ------ ------
9 - - 8 6 39 -
------ ------ ------ ------ ------ ------ ------
Current Assets
Cash and temporary cash
investments - - 6 - 1 - -
Accounts receivable 7 52 27 2 1 7 1
Materials and supplies - - 7 - - - -
Deferred income taxes - - - - - - -
Prepayments and other - - 9 - - - -
------ ------ ------ ------ ------ ------ ------
7 52 49 2 2 7 1
------ ------ ------ ------ ------ ------ ------
Non-current Assets
Postretirement benefits - - - - - - -
Other 3 - 12 - - 1 -
------ ------ ------ ------ ------ ------ ------
3 - 12 - - 1 -
------ ------ ------ ------ ------ ------ ------
Total Assets $ 19 $ 52 $ 217 $ 10 $ 10 $ 47 $ 1
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 53
CMS GENERATION COMPANY
Consolidating Balance Sheet - Assets
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
Inter- CMS
CMS company Generation
Ensenada Elimina- Company
S.A. tions Consol.
<S> <C> <C> <C>
Plant and Property (At Cost)
Independent power production $ 71 $ - $ 123
Less accumulated depreciation,
depletion and amortization 1 - 7
------ ------- ------
70 - 116
Construction work-in-progress - - 115
------ ------- ------
70 - 231
------ ------- ------
Investments
Associated companies - (1,167) 16
Other - - 779
------ ------- ------
- (1,167) 795
------ ------- ------
Current Assets
Cash and temporary cash
investments 12 - 25
Accounts receivable 21 (527) 128
Materials and supplies - - 7
Deferred income taxes - - 3
Prepayments and other - - 9
------ ------- ------
33 (527) 172
------ ------- ------
Non-current Assets
Postretirement benefits - - -
Other 18 (8) 115
------ ------- ------
18 (8) 115
------ ------- ------
Total Assets $ 121 $(1,702) $1,313
====== ======= ======
</TABLE>
[FN]
(6) Represents CMS Generation Company, CMSG GP Company, CMSG Mon Valley
Company, CMSG Genesee Company, CMSG Lyonsdale Company, CMSG Chateaugay
Company, CMSG Investment Company II, CMSG Montreal Company, CMSG Horizon
Energy Holdings, Ltd., Jegurupadu CMS Generation Company, Ltd. and OTR of
Massachusetts, Inc. consolidated with HYDRA-CO Enterprises, Inc. included
on the equity method of accounting.
</FN>
<PAGE> 54
CMS GENERATION COMPANY
Consolidating Balance Sheet - Equity and Liabilities
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMSG CMSG CMSG CMSG
CMS Honey Filer CMSG Grayling CMSG Filer
Generation Lake City Grayling Holdings Operating City Oper.
Co.(6) Company Inc. Company Company Company Company
<S> <C> <C> <C> <C> <C> <C> <C>
Capitalization
Common Stockholders' Equity
Common stock $ - $ - $ - $ - $ - $ 1 $ -
Other paid-in-capital 1,275 9 6 4 7 3 -
Currency translation (88) - - - - - -
Revaluation capital (7) - - - - - -
Retained earnings (155) 14 4 (3) (2) - -
------ ------ ------ ------ ------ ------ ------
1,025 23 10 1 5 4 -
Preferred stock - - - - - - -
Long-term debt 75 - - - - - -
Non-current capital leases - - - - - - -
------ ------ ------ ------ ------ ------ ------
1,100 23 10 1 5 4 -
------ ------ ------ ------ ------ ------ ------
Current Liabilities
Current portion of long-term
debt 16 - - - - - -
Current capital leases - - - - - - -
Notes payable 1 - - - - - -
Accounts payable 7 - - - - - -
Accounts payable - related
parties 24 - - 1 - - -
Accrued interest 2 - - - - - -
Accrued taxes (3) 3 1 - - 1 -
Other 1 - - - - 3 1
------ ------ ------ ------ ------ ------ ------
48 3 1 1 - 4 1
------ ------ ------ ------ ------ ------ ------
Non-current Liabilities
Postretirement benefits 2 - - - - - -
Deferred income taxes 4 8 2 - 4 - -
Deferred investment tax credit - 2 - - - - -
Other - - - - - - -
------ ------ ------ ------ ------ ------ ------
6 10 2 - 4 - -
------ ------ ------ ------ ------ ------ ------
Total Stockholders' Equity
and Liabilities $1,154 $ 36 $ 13 $ 2 $ 9 $ 8 $ 1
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 55
CMS GENERATION COMPANY
Consolidating Balance Sheet - Equity and Liabilities
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
CMSG Mid- CMSG HYDRA-CO
Resource CMS CMSG Michigan Invest. CMSG Enter-
Development Generation Recycling Recycling Company Cebu prises
Company S.A. Company L.L.C. I LDC Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Capitalization
Common Stockholders' Equity
Common stock $ - $ - $ - $ - $ - $ - $ -
Other paid-in-capital 7 45 2 4 934 16 191
Currency translation - - - - (247) (6) -
Revaluation capital - - - - - - -
Retained earnings 2 (1) - - (25) 3 (51)
------ ------ ------ ------ ------ ------ ------
9 44 2 4 662 13 140
Preferred stock - - - - - - -
Long-term debt - - - - - - -
Non-current capital leases - - - 1 - - -
------ ------ ------ ------ ------ ------ ------
9 44 2 5 662 13 140
------ ------ ------ ------ ------ ------ ------
Current Liabilities
Current portion of long-term
debt - - - - - - -
Current capital leases - - - - - - -
Notes payable - - - - 391 - -
Accounts payable - - - - - - -
Accounts payable - related
parties 2 1 - - 1 1 3
Accrued interest - - - - 2 - -
Accrued taxes - - - - 3 - 8
Other 9 - - - 8 - 13
------ ------ ------ ------ ------ ------ ------
11 1 - - 405 1 24
------ ------ ------ ------ ------ ------ ------
Non-current Liabilities
Postretirement benefits - - - - - - -
Deferred income taxes (3) - - - (10) - 10
Deferred investment tax credit - - - - - - -
Other - - - - - - 1
------ ------ ------ ------ ------ ------ ------
(3) - - - (10) - 11
------ ------ ------ ------ ------ ------ ------
Total Stockholders' Equity
and Liabilities $ 17 $ 45 $ 2 $ 5 $1,057 $ 14 $ 175
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 56
CMS GENERATION COMPANY
Consolidating Balance Sheet - Equity and Liabilities
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
Centrales Oxford/ CMSG CMSG
CMSG CMSG Termicas CMSG CMS Invest. Cebu Oper.
Holdings Altoona Mendoza Pinamucan Development Company LDC
Company Company S.A. LDC L.P. III Company
<S> <C> <C> <C> <C> <C> <C> <C>
Capitalization
Common Stockholders' Equity
Common stock $ - $ - $ - $ - $ - $ - $ -
Other paid-in-capital 12 50 54 10 10 48 1
Currency translation - - - - - (4) -
Revaluation capital - - - - - - -
Retained earnings (12) 1 (1) (1) - 2 -
------ ------ ------ ------ ------ ------ ------
- 51 53 9 10 46 1
Preferred stock - - - - - - -
Long-term debt 8 - - - - - -
Non-current capital leases - - - - - - -
------ ------ ------ ------ ------- ------ ------
8 51 53 9 10 46 1
------ ------ ------ ------ ------ ------ ------
Current Liabilities
Current portion of long-term
debt - - - - - - -
Current capital leases - - - - - - -
Notes payable - 1 103 - - - -
Accounts payable - - 47 - - - -
Accounts payable - related
parties 1 - 3 1 - - -
Accrued interest 5 - - - - - -
Accrued taxes - - 2 - - - -
Other - - - - - - -
------ ------ ------ ------ ------ ------ ------
6 1 155 1 - - -
------ ------ ------ ------ ------ ------ ------
Non-current Liabilities
Postretirement benefits - - - - - - -
Deferred income taxes 5 - - - - 1 -
Deferred investment tax credit - - - - - - -
Other - - 9 - - - -
------ ------ ------ ------ ------ ------ ------
5 - 9 - - 1 -
------ ------ ------ ------ ------ ------ ------
Total Stockholders' Equity
and Liabilities $ 19 $ 52 $ 217 $ 10 $ 10 $ 47 $ 1
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 57
CMS GENERATION COMPANY
Consolidating Balance Sheet - Equity and Liabilities
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
Inter- CMS
CMS company Generation
Ensenada Elimina- Company
S.A. tions Consol.
<S> <C> <C> <C>
Capitalization
Common Stockholders' Equity
Common stock $ - $ (1) $ -
Other paid-in-capital 40 (1,456) 1,272
Currency translation - 257 (88)
Revaluation capital - - (7)
Retained earnings - 72 (153)
------ ------- ------
40 (1,128) 1,024
Preferred stock - - -
Long-term debt 75 (8) 150
Non-current capital leases - - 1
------ ------- ------
115 (1,136) 1,175
------ ------- ------
Current Liabilities
Current portion of long-term
debt - - 16
Current capital leases - - -
Notes payable - (494) 2
Accounts payable 4 (40) 18
Accounts payable - related
parties - (25) 13
Accrued interest - (7) 2
Accrued taxes - - 15
Other - - 35
------ ------- ------
4 (566) 101
------ ------- ------
Non-current Liabilities
Postretirement benefits - - 2
Deferred income taxes - - 21
Deferred investment tax credit - - 2
Other 2 - 12
------ ------- ------
2 - 37
------ ------- ------
Total Stockholders' Equity
and Liabilities $ 121 $(1,702) $1,313
====== ======= ======
</TABLE>
[FN]
(6) Represents CMS Generation Company, CMSG GP Company, CMSG Mon Valley
Company, CMSG Genesee Company, CMSG Lyonsdale Company, CMSG Chateaugay
Company, CMSG Investment Company II, CMSG Montreal Company, CMSG Horizon
Energy Holdings, Ltd., Jegurupadu CMS Generation Company Ltd. and OTR of
Massachusetts, Inc. consolidated with HYDRA-CO Enterprises, Inc. included
on the equity method of accounting.
</FN>
<PAGE> 58
HYDRA-CO ENTERPRISES, INC.
Consolidating Balance Sheet - Assets
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
HYDRO-CO CMS New HCE Inter- HYDRA-CO
Enter- HCE Generation Bern Rockfort company Enter-
prises Hudson, Oper. Co. Project Diesel, Elimina- prises
Inc.(7) Inc. II Mgt. Inc. Inc. tions Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Plant and Property (At Cost)
Independent power production $ - $ - $ - $ - $ - $ - $ -
Less accumulated depreciation,
depletion and amortization - - - - - - -
------ ------ ------ ------ ------ ------ ------
- - - - - - -
Construction work-in-progress - - - - - - -
------ ------ ------ ------ ------ ------ ------
- - - - - - -
------ ------ ------ ------ ------ ------ ------
Investments
Associated companies 39 - - - - (39) -
Other 108 7 3 1 17 - 136
------ ------ ------ ------ ------ ------ ------
147 7 3 1 17 (39) 136
------ ------ ------ ------ ------ ------ ------
Current Assets
Cash and temporary cash
investments - - 2 - - - 2
Accounts receivable 16 1 5 - - (5) 17
Materials and supplies - - - - - - -
Prepayments and other - - - - - - -
------ ------ ------ ------ ------ ------ ------
16 1 7 - - (5) 19
------ ------ ------ ------ ------ ------ ------
Non-current Assets
Postretirement benefits - - - - - - -
Other 15 2 - - 3 - 20
------ ------ ------ ------ ------ ------ ------
15 2 - - 3 - 20
------ ------ ------ ------ ------ ------ ------
Total Assets $ 178 $ 10 $ 10 $ 1 $ 20 $ (44) $ 175
====== ====== ====== ====== ====== ====== ======
</TABLE>
[FN]
(7) Represents HYDRA-CO Enterprises, Inc., HCE Jamaica Development, Inc.,
HCE Jamaica, Inc., HCE Lakewood, Inc., Lakewood Project Management
Inc., HCE Appomattox, Inc. and HCE Imperial Valley, Inc. consolidated.
</FN>
<PAGE> 59
HYDRO-CO ENTERPRISES, INC.
Consolidating Balance Sheet - Equity and Liabilities
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
HYDRO-CO CMS New HCE Inter- HYDRA-CO
Enter- HCE Generation Bern Rockfort company Enter-
prises Hudson, Oper. Co. Project Diesel, Elimina- prises
Inc.(7) Inc. II Mgt. Inc. Inc. tions Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Capitalization
Common Stockholders' Equity
Common stock $ - $ - $ - $ - $ - $ - $ -
Other paid-in-capital 195 8 5 - 19 (36) 191
Currency translation - - - - - - -
Revaluation capital - - - - - - -
Retained earnings (50) 2 (2) 1 1 (3) (51)
------ ------ ------ ------ ------ ------ ------
145 10 3 1 20 (39) 140
Preferred stock - - - - - - -
Long-term debt - - - - - - -
Non-current capital leases - - - - - - -
------ ------ ------ ------ ------ ------ ------
145 10 3 1 20 (39) 140
------ ------ ------ ------ ------ ------ ------
Current Liabilities
Current portion of long-term
debt - - - - - - -
Current capital leases - - - - - - -
Notes payable - - - - - - -
Accounts payable - - - - - - -
Accounts payable - related
parties 4 - 4 - - (5) 3
Accrued interest - - - - - - -
Accrued taxes 8 - - - - - 8
Other 10 - 3 - - - 13
------ ------ ------ ------ ------ ------ ------
22 - 7 - - (5) 24
------ ------ ------ ------ ------ ------ ------
Non-current Liabilities
Postretirement benefits - - - - - - -
Deferred income taxes 10 - - - - - 10
Deferred investment tax credit - - - - - - -
Other 1 - - - - - 1
------ ------ ------ ------ ------ ------ ------
11 - - - - - 11
------ ------ ------ ------ ------ ------ ------
Total Stockholders' Equity
and Liabilities $ 178 $ 10 $ 10 $ 1 $ 20 $ (44) $ 175
====== ====== ====== ====== ====== ====== ======
</TABLE>
[FN]
(7) Represents HYDRA-CO Enterprises, Inc., HCE Jamaica Development, Inc.,
HCE Jamaica, Inc., HCE Lakewood, Inc., Lakewood Project Management
Inc., HCE Appomattox, Inc. and HCE Imperial Valley, Inc. consolidated.
</FN>
<PAGE> 60
CMS GAS TRANSMISSION AND STORAGE COMPANY
Consolidating Balance Sheet - Assets
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMS Gas CMS CMS CMS Gas CMS CMS
Transmission CMS Saginaw Saginaw Transmission Gas Jackson
& Storage Antrim Bay Bay Lat. del Sur Argentina Pipeline
Company Company Company Company Company Company Company
<S> <C> <C> <C> <C> <C> <C> <C>
Plant and Property (At Cost)
Natural gas transmission,
storage and processing $ 27 $ 52 $ - $ - $ 59 $ - $ 10
Other - - - - - - -
------ ------ ------ ------ ------ ------ ------
27 52 - - 59 - 10
Less accumulated depreciation,
depletion and amortization 3 7 - - 5 - 2
------ ------ ------ ------ ------ ------ ------
24 45 - - 54 - 8
Construction work-in-progress 1 - - - - - -
------ ------ ------ ------ ------ ------ ------
25 45 - - 54 - 8
------ ------ ------ ------ ------ ------ ------
Investments
Associated companies 326 - - - - - -
Other 82 - 12 2 21 150 -
------ ------ ------ ------ ------ ------ ------
408 - 12 2 21 150 -
------ ------ ------ ------ ------ ------ ------
Current Assets
Cash and temporary cash
investments - - - - 13 - 1
Accounts receivable 30 2 - 1 2 - -
Materials and supplies - - - - 1 - -
Prepayments and other - 2 - - - - -
------ ------ ------ ------ ------ ------ ------
30 4 - 1 16 - 1
------ ------ ------ ------ ------ ------ ------
Non-current Assets
Postretirement benefits - - - - - - -
Other 11 - - - 12 - -
------ ------ ------ ------ ------ ------ ------
11 - - - 12 - -
------ ------ ------ ------ ------ ------ ------
Total Assets $ 474 $ 49 $ 12 $ 3 $ 103 $ 150 $ 9
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 61
CMS GAS TRANSMISSION AND STORAGE COMPANY
Consolidating Balance Sheet - Assets
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
CMS Cherokee Inter- CMS Gas
Grand Lacs Petal Gas company Tran. & Stor.
Holding Gas Storage Processing Elimina- Company
Company Company L.L.C. tions Consol.
<S> <C> <C> <C> <C> <C>
Plant and Property (At Cost)
Natural gas transmission,
storage and processing $ - $ 21 $ 38 $ - $ 207
Other - - - - -
------ ------ ------ ------ ------
- 21 38 - 207
Less accumulated depreciation,
depletion and amortization - 2 2 - 21
------ ------ ------ ------ ------
- 19 36 - 186
Construction work-in-progress - - - - 1
------ ------ ------ ------ ------
- 19 36 - 187
------ ------ ------ ------ ------
Investments
Associated companies - - - (326) -
Other - - - - 267
------ ------ ------ ------ ------
- - - (326) 267
------ ------ ------ ------ ------
Current Assets
Cash and temporary cash
investments 1 - 1 - 16
Accounts receivable 2 3 4 (4) 40
Materials and supplies - - - - 1
Prepayments and other - - - - 2
------ ------ ------ ------ ------
3 3 5 (4) 59
------ ------ ------ ------ ------
Non-current Assets
Postretirement benefits - - - - -
Other 2 - - - 25
------ ------ ------ ------ ------
2 - - - 25
------ ------ ------ ------ ------
Total Assets $ 5 $ 22 $ 41 $ (330) $ 538
====== ====== ====== ====== ======
</TABLE>
<PAGE> 62
CMS GAS TRANSMISSION AND STORAGE COMPANY
Consolidating Balance Sheet - Equity and Liabilities
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMS Gas CMS CMS CMS Gas CMS CMS
Transmission CMS Saginaw Saginaw Transmission Gas Jackson
& Storage Antrim Bay Bay Lat. del Sur Argentina Pipeline
Company Company Company Company Company Company Company
<S> <C> <C> <C> <C> <C> <C> <C>
Capitalization
Common Stockholders' Equity
Common stock $ - $ - $ - $ - $ - $ - $ -
Other paid-in-capital 442 8 10 3 91 136 2
Currency translation (9) - - - (9) - -
Retained earnings 24 16 - (1) 3 14 -
------ ------ ------ ------ ------ ------ ------
457 24 10 2 85 150 2
Preferred stock - - - - - - -
Long-term debt - 16 - - - - 4
Non-current capital leases - - - - - - -
------ ------ ------ ------ ------ ------ ------
457 40 10 2 85 150 6
------ ------ ------ ------ ------ ------ ------
Current Liabilities
Current portion of long-term
debt - 3 - - - - -
Current capital leases - - - - - - -
Notes payable 2 1 - - - - -
Accounts payable (4) - - - 16 - -
Accounts payable - related
parties 2 - - - - - -
Accrued interest - - - - - - -
Accrued taxes 7 1 - - 2 - 1
Other 1 - - - - - -
------ ------ ------ ------ ------ ------ ------
8 5 - - 18 - 1
------ ------ ------ ------ ------ ------ ------
Non-current Liabilities
Postretirement benefits 2 - - - - - -
Deferred income taxes 7 4 2 1 - - 1
Deferred investment tax credit - - - - - - -
Other - - - - - - 1
------ ------ ------ ------ ------ ------ ------
9 4 2 1 - - 2
------ ------ ------ ------ ------ ------ ------
Total Stockholders' Equity
and Liabilities $ 474 $ 49 $ 12 $ 3 $ 103 $ 150 $ 9
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 63
CMS GAS TRANSMISSION AND STORAGE COMPANY
Consolidating Balance Sheet - Equity and Liabilities
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
CMS Cherokee Inter- CMS Gas
Grand Lacs Petal Gas company Tran. & Stor.
Holding Gas Storage Processing Elimina- Company
Company Company L.L.C. tions Consol.
<S> <C> <C> <C> <C> <C>
Capitalization
Common Stockholders' Equity
Common stock $ - $ - $ - $ - $ -
Other paid-in-capital - 20 26 (296) 442
Currency translation - - - 9 (9)
Retained earnings 2 - 5 (39) 24
------ ------ ------ ------ ------
2 20 31 (326) 457
Preferred stock - - - - -
Long-term debt - - - - 20
Non-current capital leases - - - - -
------ ------ ------ ------ ------
2 20 31 (326) 477
------ ------ ------ ------ ------
Current Liabilities
Current portion of long-term
debt - - - - 3
Current capital leases - - - - -
Notes payable - - - - 3
Accounts payable - - 1 - 13
Accounts payable - related
parties 3 1 - (4) 2
Accrued interest - - - - -
Accrued taxes - 1 2 - 14
Other - - 1 - 2
------ ------ ------ ------ ------
3 2 4 (4) 37
------ ------ ------ ------ ------
Non-current Liabilities
Postretirement benefits - - - - 2
Deferred income taxes - - - - 15
Deferred investment tax credit - - - - -
Other - - 6 - 7
------ ------ ------ ------ ------
- - 6 - 24
------ ------ ------ ------ ------
Total Stockholders' Equity
and Liabilities $ 5 $ 22 $ 41 $ (330) $ 538
====== ====== ====== ====== ======
</TABLE>
<PAGE> 64
CMS ENERGY CORPORATION
Consolidating Statement of Retained Earnings
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
Consumers CMS Inter-
Energy Enterprises company CMS Energy
CMS Energy Company Company Elimina- Corporation
Corp.(1) Consol. Consol. tions Consol.
<S> <C> <C> <C> <C> <C>
Balance at January 1, 1997 $ (338) $ 297 $ (122) $ (175) $ (338)
Net Income (Loss) 280 321 100 (390) 311
Less Dividends Paid
Common Stock - CMS Energy 109 - - - 109
Class G 10 - - - 10
Preferred Stock - 25 13 (13) 25
Preferred Securities Distribution 6 12 - - 18
Associated Companies 6 218 93 (317) -
------ ------ ------ ------ ------
131 255 106 (330) 119
------ ------ ------ ------ ------
Balance at December 31, 1997 $ (189) $ 363 $ (128) $ (235) $ (189)
====== ====== ====== ====== ======
</TABLE>
[FN]
(1) Represents CMS Energy Corporation with Consumers Energy Company and CMS
Enterprises Company included on the equity method of accounting.
</FN>
<PAGE> 65
CONSUMERS ENERGY COMPANY
Consolidating Statement of Retained Earnings
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
Michigan Huron CMS Inter- Consumers
Consumers Gas Hydro- Midland CMS company Power
Energy Storage carbons Holdings Midland Elimina- Company
Company(2) Company Inc. Company Inc. tions Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1997 $ 299 $ 18 $ 1 $ 32 $ 23 $ (76) $ 297
Net Income (Loss) 321 6 1 8 24 (39) 321
Less Dividends Paid
Common Stock - - - - - - -
Preferred Stock 25 - - - - - 25
Preferred Securities Distribution 12 - - - - - 12
Associated Companies 218 - - - - - 218
------ ------ ------ ------ ------ ------ ------
255 - - - - - 255
------ ------ ------ ------ ------ ------ ------
Balance at December 31, 1997 $ 363 $ 24 $ 2 $ 40 $ 47 $ (113) $ 363
====== ====== ====== ====== ====== ====== ======
</TABLE>
[FN]
(2) Represents Consumers Energy Company, CMS Engineering Company,
Consumers EnergyGuard Services, Inc. and ES Services Company
consolidated with Michigan Gas Storage Company, CMS Midland Holdings
Company, CMS Midland, Inc. and Huron Hydrocarbons, Inc. included on
the equity method of accounting.
</FN>
<PAGE> 66
CMS ENTERPRISES COMPANY
Consolidating Statement of Retained Earnings
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMS NOMECO CMS CMS CMS CMS Gas
CMS Oil and Generation Utility Electric CMS Tran. & Stor.
Enterprises Gas Co. Company Services & Gas MS & T Company
Company(3) Consol. Consol. Inc. Company Company Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1997 $ (121) $ 203 $ (121) $ (3) $ - $ 6 $ 14
Net Income (Loss) 99 36 44 1 - (3) 21
Less Dividends Paid
Common Stock - - - - - - -
Preferred Stock 13 - - - - - -
Associated Companies 94 - 76 2 1 - 11
------ ------ ------ ------ ------ ------ ------
107 - 76 2 1 - 11
------ ------ ------ ------ ------ ------ ------
Balance at December 31, 1997 $ (129) $ 239 $ (153) $ (4) $ (1) $ 3 $ 24
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 67
CMS ENTERPRISES COMPANY
Consolidating Statement of Retained Earnings
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
Inter- CMS
CMS CMS company Enterprises
Land Capital Elimina- Company
Company Corp. tions Consol.
<S> <C> <C> <C> <C>
Balance at January 1, 1997 $ 9 $ - $ (109) $ (122)
Net Income (Loss) 2 1 (101) 100
Less Dividends Paid
Common Stock - - - -
Preferred Stock - - - 13
Associated Companies 3 - (94) 93
------ ------ ------ ------
3 - (94) 106
------ ------ ------ ------
Balance at December 31, 1997 $ 8 $ 1 $ (116) $ (128)
====== ====== ====== ======
</TABLE>
[FN]
(3) Represents CMS Enterprises Company, CMS Capital Financial Services, Inc.,
KJL Limited, Inc. and Monarch Management Company consolidated with CMS
NOMECO Oil and Gas Company, CMS Generation Company, CMS Utility Services,
Inc., CMS Land Company, CMS Capital Corporation, CMS Marketing, Services
and Trading Company, CMS Gas Transmission and Storage Company and CMS
Electric and Gas Company included on the equity method of accounting.
</FN>
<PAGE> 68
CMS NOMECO OIL AND GAS COMPANY
Consolidating Statement of Retained Earnings
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
NOMECO
NOMECO Equatorial NOMECO
CMS NOMECO NOMECO Inter- NOMECO Guinea NOMECO Colombia
Oil and Gas Australia national Ecuador Oil & Gas Holdings Oil
Company(4) Pty. Ltd. Ltd. LDC Co. Ltd. Company
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1997 $ 204 $ (1) $ (3) $ 7 $ 7 $ 4 $ (22)
Net Income (Loss) 34 1 8 5 3 - (1)
Less Dividends Paid
Common Stock - - - - - - -
Preferred Stock - - - - - - -
Associated Companies - - - - - - -
------ ------ ------ ------ ------ ------ ------
- - - - - - -
------ ------ ------ ------ ------ ------ ------
Balance at December 31, 1997 $ 238 $ - $ 5 $ 12 $ 10 $ 4 $ (23)
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 69
CMS NOMECO OIL AND GAS COMPANY
Consolidating Statement of Retained Earnings
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
NOMECO Explota- CMS CMS
Exploration NOMECO ciones Terra NOMECO CMS NOMECO NOMECO
(Thailand) China Oil Nomeco Energy, Interna. Venezuela Alba
Limited Company Inc. Ltd. Inc. Consol. LDC LDC
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1997 $ - $ (2) $ 2 $ 10 $ 11 $ (1) $ -
Net Income (Loss) - - 1 9 14 3 1
Less Dividends Paid
Common Stock - - - - - - -
Preferred Stock - - - - - - -
Associated Companies - - - - - - -
------ ------ ------ ------ ------ ------ ------
- - - - - - -
------ ------ ------ ------ ------ ------ ------
Balance at December 31, 1997 $ - $ (2) $ 3 $ 19 $ 25 $ 2 $ 1
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 70
CMS NOMECO OIL AND GAS COMPANY
Consolidating Statement of Retained Earnings
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
CMS Inter- CMS NOMECO
NOMECO company Oil and Gas
E.G. Elimina- Company
LDC tions Consol.
<S> <C> <C> <C>
Balance at January 1, 1997 $ - $ (13) $ 203
Net Income (Loss) 1 (43) 36
Less Dividends Paid
Common Stock - - -
Preferred Stock - - -
Associated Companies - - -
------ ------ ------
- - -
------ ------ ------
Balance at December 31, 1997 $ 1 $ (56) $ 239
====== ====== ======
</TABLE>
[FN]
(4) Represents CMS NOMECO Oil and Gas Company, NOMECO Thailand Oil Company,
CMS NOMECO Pipeline Company and CMS NOMECO Argentina LDC consolidated with
CMS NOMECO International, Inc. included on the equity method of
accounting.
</FN>
<PAGE> 71
CMS NOMECO INTERNATIONAL, INC.
Consolidating Statement of Retained Earnings
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMS CMS NOMECO CMS CMS Inter- CMS
NOMECO International NOMECO NOMECO company NOMECO
International Congo, Inter Eq. Int'l Yemen, Elimina- Inter., Inc.
Inc.(5) Inc. Guinea, Inc. Inc. tions Consol.
<S> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1997 $ 11 $ 8 $ 4 $ - $ (12) $ 11
Net Income (Loss) 13 4 3 9 (15) 14
Less Dividends Paid
Common Stock - - - - - -
Preferred Stock - - - - - -
Associated Companies - - - - - -
------ ------ ------ ------ ------ ------
- - - - - -
------ ------ ------ ------ ------ ------
Adjustments to Retained Earnings - - - (9) 9 -
------ ------ ------ ------ ------ ------
Balance at December 31, 1997 $ 24 $ 12 $ 7 $ - $ (18) $ 25
====== ====== ====== ====== ====== ======
</TABLE>
[FN]
(5) Represents CMS NOMECO International, Inc., CMS NOMECO International
Tunisia, Inc. and CMS NOMECO International Transportation, Inc.
consolidated.
</FN>
<PAGE> 72
CMS GENERATION COMPANY
Consolidating Statement of Retained Earnings
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMSG CMSG CMSG Oxford
CMS Honey Filer CMSG Grayling CMSG Tire
Generation Lake City Holdings Holdings Operating Supply
Co.(6) Company Inc. Company Company Company Inc.
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1997 $ (122) $ 11 $ 4 $ (11) $ (1) $ 1 $ (3)
Net Income (Loss) 42 5 2 (1) 1 1 -
Less Dividends Paid
Common Stock - - - - - - -
Preferred Stock - - - - - - -
Associated Companies 76 2 2 - 2 2 -
------ ------ ------ ------ ------ ------ ------
76 2 2 - 2 2 -
------ ------ ------ ------ ------ ------ ------
Adjustments to Retained Earnings 1 - - - - - 3
------ ------ ------ ------ ------ ------ ------
Balance at December 31, 1997 $ (155) $ 14 $ 4 $ (12) $ (2) $ - $ -
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 73
CMS GENERATION COMPANY
Consolidating Statement of Retained Earnings
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
HYDRA-CO Centrales Mid- CMS CMS CMS
CMS Enter- Termicas Michigan Generation Resource Generation
Generation prises Mendoza Recycling Grayling Develop. Inv. Co.
S.A. Consol. S.A. L.L.C. Company Company I
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1997 $ 1 $ (17) $ (2) $ (1) $ (2) $ (1) $ 2
Net Income (Loss) (2) 10 1 - - 3 (27)
Less Dividends Paid
Common Stock - - - - - - -
Preferred Stock - - - - - - -
Associated Companies - 44 - - 1 - -
------ ------ ------ ------ ------ ------ ------
- 44 - - 1 - -
------ ------ ------ ------ ------ ------ ------
Adjustments to Retained Earnings - - - 1 - - -
------ ------ ------ ------ ------ ------ ------
Balance at December 31, 1997 $ (1) $ (51) $ (1) $ - $ (3) $ 2 $ (25)
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 74
CMS GENERATION COMPANY
Consolidating Statement of Retained Earnings
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
CMS CMS Inter- CMS
Generation CMSG CMSG Generation company Generation
Cebu Pinamucan Altoona Inv. Co. Elimina- Company
LDC LDC Company III tions Consol.
<S> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1997 $ 1 $ - $ - $ - $ 19 $ (121)
Net Income (Loss) 2 (1) 1 2 5 44
Less Dividends Paid
Common Stock - - - - - -
Preferred Stock - - - - - -
Associated Companies - - - - (53) 76
------ ------ ------ ------ ------ ------
- - - - (53) 76
------ ------ ------ ------ ------ ------
Adjustments to Retained Earnings - - - - (5) -
------ ------ ------ ------ ------ ------
Balance at December 31, 1997 $ 3 $ (1) $ 1 $ 2 $ 72 $ (153)
====== ====== ====== ====== ====== ======
</TABLE>
[FN]
(6) Represents CMS Generation Company, CMSG GP Company, CMSG Filer City
Operating Company, CMSG Mon Valley Company, CMSG Genesee Company, CMSG
Recycling Company, CMSG Lyonsdale Company, CMSG Chateaugay Company, CMSG
Investment Company II, CMSG Cebu Operating LDC Company, CMSG Horizon
Energy Holdings, Ltd., Jegurupadu CMS Generation Company Ltd., CMSG
Montreal Company, OTR of Bloomfield, Inc., OTR of Massachusetts, Inc.,
Oxford/CMS Development L.P. and CMS Ensenada S.A. consolidated with
HYDRA-CO Enterprises, Inc. included on the equity method of accounting.
</FN>
<PAGE> 75
HYDRA-CO ENTERPRISES, INC.
Consolidating Statement of Retained Earnings
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
HYDRA-CO CMS New HCE Inter- HYDRO-CO
Enter- HCE Generation Bern Rockfort company Enter-
prises, Hudson, Oper. Co. Project Diesel, Elimina- prises
Inc.(7) Inc. II Mgt. Inc. Inc. tions Consol.
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1997 $ (16) $ 1 $ (3) $ 1 $ - $ - $ (17)
Net Income (Loss) 10 1 1 - 1 (3) 10
Less Dividends Paid
Common Stock - - - - - - -
Preferred Stock - - - - - - -
Associated Companies 44 - - - - - 44
------ ------ ------ ------ ------ ------ ------
44 - - - - - 44
------ ------ ------ ------ ------ ------ ------
Balance at December 31, 1997 $ (50) $ 2 $ (2) $ 1 $ 1 $ (3) $ (51)
====== ====== ====== ====== ====== ====== ======
</TABLE>
[FN]
(7) Represents HYDRA-CO Enterprises, Inc., HCE Jamaica Development, Inc.,
HCE Jamaica, Inc., HCE Lakewood, Inc., Lakewood Project Management
Inc., HCE Appomattox, Inc. and HCE Imperial Valley, Inc. consolidated.
</FN>
<PAGE> 76
CMS GAS TRANSMISSION AND STORAGE COMPANY
Consolidating Statement of Retained Earnings
December 31, 1997
(In Millions)
<TABLE>
<CAPTION>
CMS Gas CMS CMS CMS Gas CMS
Transmission CMS Saginaw Gas Transmission Jackson Petal
& Storage Antrim Bay Argentina del Sur Pipeline Gas Storage
Company(8) Company Company Company Company Company Company
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1997 $ 14 $ 14 $ 1 $ 5 $ - $ 1 $ (1)
Net Income (Loss) 21 4 - 12 3 - 1
Less Dividends Paid
Common Stock - - - - - - -
Preferred Stock - - - - - - -
Associated Companies 11 2 2 3 - 1 -
------ ------ ------ ------ ------ ------ ------
11 2 2 3 - 1 -
------ ------ ------ ------ ------ ------ ------
Balance at December 31, 1997 $ 24 $ 16 $ (1) $ 14 $ 3 $ - $ -
====== ====== ====== ====== ====== ====== ======
</TABLE>
(Continued on Following Page)
<PAGE> 77
CMS GAS TRANSMISSION AND STORAGE COMPANY
Consolidating Statement of Retained Earnings
December 31, 1997
(In Millions)
(Continued from Previous Page)
<TABLE>
<CAPTION>
Cherokee CMS Inter- CMS Gas
Gas Grand Lacs Company Tran. & Stor.
Processing Holding Elimina- Company
L.L.C. Company tions Consol.
<S> <C> <C> <C> <C>
Balance at January 1, 1997 $ 1 $ 1 $ (22) $ 14
Net Income (Loss) 7 1 (28) 21
Less Dividends Paid
Common Stock - - - -
Preferred Stock - - - -
Associated Companies 3 - (11) 11
------ ------ ------ ------
3 - (11) 11
------ ------ ------ ------
Balance at December 31, 1997 $ 5 $ 2 $ (39) $ 24
====== ====== ====== ======
</TABLE>
[FN]
(8) Represents CMS Gas Transmission and Storage Company, CMS Saginaw Bay
Lateral Company and CMS Gulf Coast Storage Company consolidated.
</FN>
<PAGE> 78
EXHIBIT B
Exhibit B - Financial Data Schedule
CMS Energy Corporation consolidated
Year Ended December 31, 1997
(Millions of Dollars)
Total Assets $9,793
Total Operating Revenue $4,787
Net Income $ 268
<PAGE> 79
EXHIBIT C
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
CMESCO ENERGY SERVICE COMPANY LIMITED
(CMESCO)
CMS Energy Corporation
*
*
*
CMS Enterprises Company
*
*
*
CMS Generation Co.
*
*
*
CMS Generation Investment Company I
*
* 50%
*
CMESCO Energy Service Company Limited
CMS Generation Investment Company I, owned 100% by CMS Generation Co., owns 50%
CMESCO Energy Service Company Limited, the EWG. (The EWG application is pending
as of the date of this statement.)
<PAGE> 80
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
CMS ENSENADA S.A.
(Ensenada)
CMS Energy Corporation
*
*
*
CMS Enterprises Company
*
*
*
CMS Generation Co.
* *
* 99% *
* *
* * CMS Generation Holdings Company
* 1% * *
* * *
* * *
CMS Operating S.A. * 1%
| * *
Operator | * 99% *
| * *
--------- CMS Ensenada S.A.
CMS Operating S.A., which is 99% owned by CMS Generation Co., owns 99% of CMS
Ensenada S.A., the EWG. CMS Generation Holdings Co., which is owned 100% by CMS
Generation Co., owns 1% of CMS Ensenada S.A., the EWG.
<PAGE> 81
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
CMS GENERATION CEBU LIMITED DURATION COMPANY
(Cebu)
and
CMS GENERATION CEBU OPERATING LIMITED DURATION COMPANY
(Cebu Operating)
CMS Energy Corporation
*
*
*
CMS Enterprises Company
*
*
*
CMS Generation Co.
* *
* *
* *
CMS Generation Investment Co. I CMS Generation Investment Co. II
* 99% * 99% * 1% * 1%
* * * *
* * * *
* * *
* * * *
CMS Generation Cebu Limited CMS Generation Cebu Operating
Duration Company Limited Duration Company
* |
* | Operator
* 47.5% |
Toledo Power Company
CMS Generation Investment Company I and CMS Generation Investment Company II,
each owned 100% by CMS Generation Co., owns 99% and 1%, respectively, CMS
Generation Cebu Limited Duration Company, the EWG.
CMS Generation Investment Company I and CMS Generation Investment Company II,
each owned 100% by CMS Generation Co., owns 99% and 1%, respectively, CMS
Generation Cebu Operating Limited Duration Company, the EWG.
<PAGE> 82
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
CMS MOROCCO OPERATING COMPANY SCA
(CMS Morocco)
CMS Energy Corporation
*
*
*
CMS Enterprises Company
*
*
*
CMS Generation Co.
* *
* *
* *
* * CMS International Operating CMS Generation Investment Company I * *
* Company *
* .1% * 99% * 50% * 50% 1% *
* * *
* * * * *
* * CMS Generation Jorf Lasfar III Limited Duration Company *
* * * 1% * .1% *
* * * * *
* * * * *
* Jorf Lasfar Operations Handelesbolag * *
* * 99.7% * *
* * * *
* * * *
* * * * * * * * * CMS Morocco Operating Company SCA* * * *
* *
* * * * * * * * * * * * * *
Jorf Lasfar Operations Handelesbolag owned 99% by CMS International Operating
Company and 1% by CMS Generation Jorf Lasfar III Limited Duration Company, owns
99.7% of CMS Morocco Operating Company SCA ("CMS Morocco"), the EWG. CMS
International Operating Company and CMS Generation Investment Company I, each
owned 100% by CMS Generation Co., each own .1% of CMS Morocco, the EWG. CMS
Generation Jorf Lasfar III Limited Duration Company, owned 50% by CMS
International Operating Company and 50% by CMS Investment Company I, owns .1% of
CMS Morocco, the EWG.
<PAGE> 83
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
CMS OPERATING S.A.
CMS Energy Corporation
*
*
*
CMS Enterprises Company
*
*
*
***** CMS Generation Co.
* * *
* * *
* * *
CMS Generation Holdings * *
Company * * *
* 1% * *
* * 99% * 99%
CMS Operating S.A. CMS Centrales Termicas S.A.
Operating & | * | * *
Maintenance- | * | * *
Agreement | * 99% | | * 99% * 1%
| * | |Cuyana S.A. de Inversiones
CMS Ensenada S.A. | | *
| |--Consulting *
| | Agreement * 80.55%
Consulting | | *
Agreement--- | |-----Centrales Termicas Mendoza, S.A.
(Jan-May 1997) |
|
Empresa Distribuidora de Electricidad de Entre Rios S.A. (EDEER)
CMS Generation Co. and CMS Generation Holdings Company own 99% and 1%,
respectively, CMS Operating S.A., the EWG.
<PAGE> 84
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
CMS GENERATION PINAMUCAN LIMITED DURATION COMPANY
(Pinamucan)
and
CMS GENERATION PINAMUCAN OPERATING LIMITED DURATION COMPANY
(Pinamucan Operating)
CMS Energy Corporation
*
*
*
CMS Enterprises Company
*
*
*
CMS Generation Co.
* *
* *
* *
CMS Generation Investment Co. I CMS Generation Investment Co. II
* 99% * 99% * 1% * 1%
* * * *
* * *
* * * *
CMS Generation Pinamucan CMS Generation Pinamucan
Limited Duration Company Operating Limited Duration Company
* |
44%* |
* | Operator
Magellan Cogeneration Inc.
CMS Generation Investment Company I and CMS Generation Investment Company II,
each owned 100% by CMS Generation Co., owns 99% and 1%, respectively, CMS
Generation Pinamucan Limited Duration Company, the EWG.
CMS Generation Investment Company I and CMS Generation Investment Company II,
each owned 100% by CMS Generation Co., owns 99% and 1%, respectively, CMS
Generation Pinamucan Operating Limited Duration Company, the EWG.
<PAGE> 85
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
CENTRALES TERMICAS SAN NICOLAS, S.A.
(CTSN)
CMS Energy Corporation
*
*
*
CMS Enterprises Company
*
*
*
CMS Generation Co.
*
*
* .1%
CMS Generation San Nicolas Company
*
*
* .1%
Inversora de San Nicolas, S.A.
*
*
* 88%
Centrales Termicas San Nicolas, S.A.
CMS Generation San Nicolas Company, owned .1% by CMS Generation Co., owns .1% of
Inversora de San Nicolas, which in turn owns 88% of Centrales Termicas San
Nicolas, S.A., the EWG.
<PAGE> 86
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
Empresa Distribuidora de Electricidad de Entre Rios S.A.
(EDEER)
CMS Energy Corporation
*
*
*
*
CMS Enterprises Company
* *
* *
* *
* *
_ _ CMS Electric and Gas Company CMS Generation Co.
| * *
Consulting| * *
Agreement | * 40% * 99%
(May-Dec, | * *
1997) | * *
| Inversora en Distribucion de Entre Rios S.A.
| CMS Operating S.A.
| * |
| * | Consulting
| * 90% | Agreement
| * | (Jan- May,
| * | 1997)
|_ _ Empresa Distribuidora de Electricidad de Entre Rios S.A.
CMS Electric and Gas Company, which is 100% owned by CMS Enterprises Company,
owns 40% of Inversora en Distribucion de Entre Rios S.A., which owns 90% of
Empresa Distribuidora de Electricidad de Entre Rios S.A., the foreign utility
company.
<PAGE> 87
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
GVK INDUSTRIES LIMITED
(GVK)
CMS Energy Corporation
*
*
*
CMS Enterprises Company
*
*
*
CMS Generation Co.
*
*
*
CMS Generation Investment Company III
*
*
*
Jegurupadu CMS Generation Company Ltd.
*
* 18.75%
*
GVK Industries Ltd.
Jegurupadu CMS Generation Company Ltd., owned 100% by CMS Generation Investment
Company III, owns 18.75% GVK Industries Ltd., the EWG.
<PAGE> 88
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
HIDROELECTRICA EL CHOCON, S.A.
(Hidroelectrica)
CMS Energy Corporation
*
*
*
CMS Enterprises Company
*
*
*
*** CMS Generation Co.
* *
* *
* * (99%)
* CMS Generation, S.A.
* *
* *
* * 25%
* Hidroinvest, S.A.
* *
* *
* 2.48% * 59%
***************Hidroelectrica El Chocon, S.A.
CMS Generation Co. directly owns 2.48% of Hidroelectrica El Chocon, S.A. CMS
Generation, S.A., owned 99% by CMS Generation Co., owns 25% of Hidroinvest which
in turn owns 59% of Hidroelectrica El Chocon, S.A., the EWG.
<PAGE> 89
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
JAMAICA PRIVATE POWER COMPANY LIMITED
(Jamaica Private Power)
and
Private Power Operators Limited
(Private Power Operators)
CMS Energy Corporation
*
*
*
CMS Enterprises Company
*
*
*
CMS Generation Co.
*
*
*
HYDRA-CO ENTERPRISES, INC.
* *
* *
* *
CMS Generation Operating Company II, Inc. HCE-Rockfort Diesel, Inc.
* *
* * 43.93%
* *
HCO-Jamaica, Inc. Jamaica Private Power
* Company Limited
* 50%
*
Private Power Operators Limited
(Operator)
HCE-Rockfort Diesel, Inc., owned 100% by HYDRA-CO Enterprises, Inc., owns 43.93%
Jamaica Private Power Company Limited, the EWG.
HCO-Jamaica, Inc., owned 100% by CMS Generation Operating Company II, Inc., owns
50% of Private Power Operators Limited, the EWG.
<PAGE> 90
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
JEGURUPADU OPERATING AND MAINTENANCE COMPANY
(Jegurupadu Operating)
CMS Energy Corporation
*
*
*
CMS Enterprises Company
*
*
*
CMS Generation Co.
* *
* *
* *
CMS Generation Investment Co. I CMS Generation Investment Co. II
* 99% 99% * * 1% * 1%
* * * *
* * * *
* * * *
CMS Generation Jegurupadu I CMS Generation Jegurupadu II
Limited Duration Company Limited Duration Company
* *
50% * * 50%
Jegurupadu O&M Company Mauritius
*
* 60%
*
Jegurupadu Operating and Maintenance Company
| (Operator)
|
|
GVK Industries Ltd.
Jegurupadu O&M Company Mauritius, owned 50% by CMS Generation Jegurupadu I
Limited Duration Company and 50% by CMS Generation Jegurupadu II Limited
Duration Company, owns 60% of Jegurupadu Operating and Maintenance Company, the
EWG.
<PAGE> 91
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
JORF LASFAR ENERGY COMPANY SCA
(Jorf Lasfar)
CMS Energy Corporation
*
*
*
CMS Enterprises Company
*
*
*
CMS Generation Co.
* *
* *
* *
CMS Generation Investment Company I CMS Generation Investment Company II
* 99% * 99% * 1% * 1%
* * * *
* * *
* * * *
CMS Generation Jorf Lasfar I Limited CMS Generation Jorf Lasfar II
Duration Company 50% * * * 50% Limited Duration Company
* 50% * * * * 50%
* * * * *
* * *50% * *50% *
* * * *
* * * * * *
Jorf Lasfar Handelsbolag Jorf Lasfar I HB Jorf Lasfar Power Energy HB
* 2% * 25% * 23%
* * *
* * *
* * * Jorf Lasfar Energy Company SCA
Jorf Lasfar Handelsbolag, Jorf Lasfar I HB and Jorf Lasfar Power Energy HB, each
owned 50% by CMS Generation Jorf Lasfar I Limited Duration Company and each
owned 50% by CMS Generation Jorf Lasfar II Limited Duration Company, owns 2%,
25% and 23%, respectively, Jorf Lasfar Energy Company SCA, the EWG.
<PAGE> 92
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
LAKEWOOD COGENERATION, L.P.
(Lakewood)
and
CMS Generation Operating Company II, Inc.
(CMSG Operating Company II)
CMS Energy Corporation
*
*
*
CMS Enterprises Company
*
*
*
CMS Generation Co.
*
*
*
---------- HYDRA-CO Enterprises, Inc.
| * *
| * *
CMS Generation Operating * *
Company II, Inc. (1) * *
(Operator) * *
| * *
| * *
| HCE-Lakewood, Inc. *
| * *
| * *
| * 1% * 44%
---------- Lakewood Cogeneration, L.P.
HYDRA-CO Enterprises, Inc., the wholly owned subsidiary of CMS Generation Co.,
owns 100% of HCE-Lakewood, which in turn owns 1% of Lakewood Cogeneration, L.P.,
the EWG. Additionally, HYDRA-CO Enterprises, Inc., directly owns 44% of Lakewood
Cogeneration, L.P., the EWG, and owns 100% of CMS Generation Operating Company
II, Inc.
- -------------------------
(1) CMS Generation Operating Company II, Inc. filed for EWG status after
the reporting period of December 31, 1997.
<PAGE> 93
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
LOY YANG POWER
(Loy Yang)
CMS Energy Corporation
*
*
*
CMS Enterprises Company
*
*
*
CMS Generation Co.
* *
* *
* *
CMS Generation Loy Yang Holdings 1 Ltd. CMS Generation Loy Yang
Holdings 2 Ltd.
* *
* *
* *
Horizon Energy Holdings Ltd. CMS Generation Horizon Energy Holdings Ltd.
25% * * 25%
* *
* *
Loy Yang Power
Horizon Energy Holdings Ltd., owned 100% by CMS Generation Loy Yang Holdings 1
Ltd., owns 25% of Loy Yang Power, the foreign utility company. CMS Generation
Horizon Energy Holdings Ltd., owned 100% by CMS Generation Loy Yang Holdings 2
Ltd., owns 25% of Loy Yang Power, the foreign Utility company.
|
|