8-KRegulation FD

CMS ENERGY CORP 8-K Report, Regulation FD Disclosure (Jun 12, 2013)

Filed June 12, 2013For Securities:CMSCMS-PCCMSACMSCCMSD

Summary

CMS Energy Corporation (CMS) and its subsidiary Consumers Energy Company filed an 8-K on June 12, 2013, primarily to disclose an update regarding Consumers Energy's natural gas rate case. Consumers Energy has petitioned the Michigan Public Service Commission (MPSC) to close or suspend its current natural gas rate case. This action is driven by lower-than-anticipated non-fuel costs for 2013 and plans to file an amended case with updated historical data and a projected test year, focusing on rate relief for anticipated capital expenditures. Furthermore, CMS Energy reaffirmed its full-year 2013 adjusted earnings per share guidance, maintaining it within the range of $1.63 to $1.66. The company also highlighted its reporting practices, noting the use of both GAAP and non-GAAP (adjusted) earnings, with management considering adjusted earnings as a key performance indicator. This 8-K does not include forward-looking guidance on reported earnings due to an inability to estimate certain potential impacts.

Key Highlights

  • 1Consumers Energy filed a petition with the MPSC to close or suspend its natural gas rate case.
  • 2The rate case adjustment is due to lower-than-expected non-fuel costs and upcoming capital expenditure plans.
  • 3Consumers Energy intends to file an amended natural gas rate case with updated financial data.
  • 4CMS Energy reaffirmed its 2013 adjusted earnings per share guidance of $1.63 to $1.66.
  • 5The company reports financial results on both GAAP and non-GAAP (adjusted) bases.
  • 6Management considers adjusted earnings a key measure of operational performance.

Frequently Asked Questions

Consumers Energy is petitioning to close or suspend its current natural gas rate case because overall non-fuel costs for 2013 are forecast to be lower than originally anticipated when the case was filed. They plan to file an amended case with updated information.

CMS Energy reaffirmed its 2013 adjusted earnings per share guidance of $1.63 to $1.66. While the rate case is being adjusted, the company has maintained its outlook for adjusted earnings.

CMS Energy reports earnings on both Generally Accepted Accounting Principles (GAAP) and adjusted (non-GAAP) bases. Management uses adjusted earnings as a key measure of the company's current operating financial performance, excluding certain items that may impact reported earnings but are not reflective of ongoing operations.

The company is not providing reported earnings guidance because it cannot estimate the impact of certain items that could favorably or unfavorably affect reported earnings in 2013, such as regulatory items from prior years or other discrete events.