CMS Energy urges Congress to pass national energy policy legislation

DEARBORN, Mich., July 30, 2001 – CMS Energy Corporation (NYSE:CMS) today announced its chairman and CEO is urging Congress to pass the national energy policy legislation now being debated in the U.S. House of Representatives.

In a letter to members of Congress representing areas in which CMS Energy’s business operations are located, CMS Energy Chairman and CEO William T. McCormick, Jr. said that passage of the energy bill now in the House would “represent a significant step forward in the development of a balanced national energy policy that addresses energy supply and demand, as well as environmental protection.”

McCormick noted that many of the problems that plague California – the lack of new power plants, inadequate electric transmission systems, sharply increasing power demand and a bottlenecked natural gas delivery system – are emerging problems in a number of areas of the United States.

The House energy bill includes a number of important provisions that accomplish the goals of the national energy policy. The bill would:

o Promote the development of coal bed methane and other non-conventional fuels to increase the nation’s natural gas supply;

o Promote the development of new natural gas pipelines;

o Increase funding for the ongoing efforts of the federal government aimed at improving the safety and reliability of natural gas pipelines;

o Strengthen federal energy efficiency programs to reduce energy consumption and costs at federal facilities;

o Provide tax credits for alternative and renewable sources of energy, such as biomass (waste wood) and wind power projects;

o Ensure sufficient funding for the nuclear waste program to move spent nuclear fuel from reactor sites in more than 30 states to a single, permanent federal facility;

o Increase funding for the Low-Income Home Energy Assistance Program (LIHEAP);

o Promote research and investments in advanced clean-coal technologies;

o Promote the development and integration of electric generation and transmission facilities by providing fair tax treatment for the sale of electric transmission systems to FERC-approved regional transmission organizations and contributions in aid of construction.

“In addition to this important measure, we hope the 107th Congress will approve electric restructuring legislation that gives the Federal Energy Regulatory Commission authority to site new electric transmission lines, removes federal barriers to electric competition and establishes uniform regulations for all utilities, including rural cooperatives, municipal and federal utilities,” McCormick said.

For more information about the national energy policy, visit CMS Energy’s website at

CMS Energy Corporation has annual sales of more than $11 billion and assets of about $16 billion throughout the U.S. and in selected foreign markets with businesses in electric and natural gas utility operations; independent power production; natural gas pipelines, gathering, processing and storage; LNG importation; oil and gas exploration and production; and energy marketing, services and trading.

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