DEARBORN, Mich., April 24, 2002 — CMS Energy Corp. announced Wednesday that the U.S. Federal Energy Regulatory Commission (FERC) has accepted a letter of compliance from its principle subsidiary, Consumers Energy, addressing conditions FERC had previously established for the approval of the sale by the utility of its electric transmission system.
With today’s FERC action, Consumers Energy expects to close early in May on the sale of its transmission system for approximately $300 million to a limited partnership whose general partner is Washington, D.C.-based Trans-Elect.
Cash proceeds from the sale will be used to reduce debt and improve CMS’ consolidated balance sheet. CMS and Trans-Elect signed a definitive agreement for sale of Consumers Energy’s electric transmission system last November. Upon closing of the sale, CMS Energy will have received approximately $2.4 billion of cash from asset sales, securitization proceeds and proceeds from LNG monetization out of its $2.9 billion program to improve its balance sheet.
CMS Energy Corporation has annual sales of $10 billion and assets of $16 billion throughout the U.S. and in selected foreign markets.
In the U.S., where it has 85 percent of its assets, it 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; 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 52 million megawatt-hours of electricity annually.
For more information on CMS Energy, please visit the company’s web site at: www.cmsenergy.com.