Summary
CMS Energy Corporation (CMS) filed an 8-K on December 3, 2007, primarily to disclose a change in directorship. Philip R. Lochner Jr. resigned from the Board of Directors of Consumers Energy Company, the principal electric utility subsidiary. However, Mr. Lochner will continue to serve on the Board of Directors for the parent company, CMS Energy. The resignation was a strategic move to address potential regulatory concerns regarding interlocking directorates, specifically with his position on the Board of Crane Co. Crane Co. has had minor sales of equipment to Consumers Energy, which could be subject to Federal Energy Regulatory Commission (FERC) oversight. Mr. Lochner has applied for FERC authorization, and if granted, he intends to seek reappointment to the Consumers Energy Board.
Key Highlights
- 1Philip R. Lochner Jr. resigned from the Consumers Energy Company Board of Directors effective November 28, 2007.
- 2Mr. Lochner remains a director of the parent company, CMS Energy Corporation.
- 3The resignation is to resolve potential FERC concerns related to interlocking directorates with Crane Co.
- 4Crane Co. has had minimal historical sales to Consumers Energy (approx. $12,500 in 2005-2006).
- 5Mr. Lochner has applied to the FERC for authorization of his dual board positions.
- 6If FERC authorization is granted, Mr. Lochner plans to seek reappointment to the Consumers Energy Board.