Dearborn, Mich. CMS Energy Corporation announced the resignation of Tamela W. Pallas from her position as president and chief executive officer of its energy marketing unit, CMS Marketing, Services and Trading Co., (CMS-MST). Ms. Pallas, who headed CMS-MST from November 1999 to the present, was responsible for the organization during the period in which the recently publicized “round trip” electricity trading activity occurred.
In submitting her resignation, Ms. Pallas expressed regret over the controversy that has resulted from this trading activity, and her belief that it was in the best interest of CMS Energy for her to step down.
William T. McCormick, Jr., chairman and chief executive officer of CMS Energy, said, “These round trip trades are not consistent with the Company’s values and high standards of integrity. The Company is committed to ensuring that such practices are never repeated.”
As previously stated, the Company ceased doing these trades in January 2002. After the third quarter of 2001, the Company changed its accounting treatment so that these trades were no longer included in 2001 revenue and expense.
The Company also announced that David B. Geyer, vice president and chief risk officer of CMS Enterprises, has been named interim president of CMS-MST. “David is a very capable and experienced manager who I am confident will provide solid leadership for CMS-MST,” said McCormick.
CMS Energy Corporation has annual sales of $10 billion and assets of $16 billion throughout the U.S. and in selected foreign markets. CMS Energy, which has 85 percent of its assets in the United States, owns and operates an electric and natural gas distribution company with 1.7 million electric customers and 1.6 million gas customers; a 15,000 mile natural gas pipeline system and associated storage facilities; interest in the nation’s largest LNG import facility; approximately 8,000 megawatts of power plants; a midstream natural gas gathering and processing company with 700 million cubic feet per day of capacity; an oil and gas exploration and production company with significant domestic gas reserves; and a energy marketing, trading and services company marketing 750 billion cubic feet of natural gas and 31 million megawatt-hours of electricity annually.