DEARBORN, Mich., June 11, 2002 — CMS Energy Corp. recently announced that it has received formal notification from Arthur Andersen LLP that Andersen has ended its relationship with CMS Energy and its affiliates.
CMS Energy had previously announced that it would no longer use Andersen for its independent audit work, and would engage Ernst & Young LLP as independent auditors for the year ending December 31, 2002.
Following CMS Energy’s announcement that it would restate its financial statements for 2000 and 2001 to eliminate the effects of round trip energy trades and form a special committee of its board of directors to investigate these trades, Andersen notified CMS that due to the investigation, Andersen’s historical opinions on CMS’ financials for the periods being restated cannot be relied upon.
Andersen has also notified CMS Energy that due to Andersen’s current situation and the uncertain timing of the work of the special committee, Andersen will be unable to give an opinion on CMS’ restated financial statements when they are completed.
Andersen clarified in its notification to CMS Energy that its decision does not apply to separate, audited financial statements of Consumers Energy and Panhandle Eastern Pipe Line Company for the applicable years. CMS said there are no disagreements between CMS Energy and Andersen on any matter of accounting principle or practice, financial statement disclosure, or auditing scope or procedure during the years 2000 and 2001.
Ernst & Young has advised CMS Energy that it will audit, to the extent necessary, the company’s restated financial statements once the special committee’s investigation is complete.
“It is prudent to wait for the special committee’s investigation to be completed before publishing restated financial statements,” said Alan M. Wright, CMS Energy executive vice president and chief financial and administrative officer. The restated financial statements will be published promptly upon the completion of the special committee’s investigation and any needed audit work by Ernst & Young.
CMS Energy Corporation is an integrated energy company, which has as its primary business operations an electric and natural gas utility, natural gas pipeline systems, independent power generation, oil and gas exploration and production, and energy marketing, services and trading.
For more information on CMS Energy, please visit our web site at: www.cmsenergy.com/.