CMS Earnings Rise Slightly
JACKSON — CMS Energy reported net income of $148 million, or 55 cents a share, for the third quarter of 2012, compared to reported net income of $139 million, or 53 cents a share, for the same quarter of 2011.
The company’s third quarter adjusted net income, which excludes the effects of one-time items, was $145 million, or 54 cents a share, compared to $139 million, or 53 cents a share, for the same quarter in 2011.
Operating revenue was $1.51 billion, up from $1.46 billion a year earlier.
For the first nine months of the year, CMS Energy had reported net income of $315 million, or $1.17 a share, down from $374 million, or $1.43 per share, for the same period of 2011.
On an adjusted basis, the company had income of $350 million, or $1.31 a share, for the first nine months of 2012 compared to $340 million, or $1.30 a share, for the same period in 2011.
Operating revenue for the nine months was $4.58 billion, down from $4.88 billion a year earlier.
The reported net income for the first nine months of 2012 includes a one-time charge of $36 million, or 14 cents a share, reflecting the write-off of an electric decoupling regulatory asset at the company’s Michigan utility, Consumers Energy. The company’s 2011 reported net income included a one-time non-cash gain of $32 million, or 12 cents a share, related to the company’s non-utility operations.
CMS Energy reaffirmed its guidance for 2012 adjusted earnings of $1.52 to $1.55 per share, consistent with the company’s long-term plan of 5 percent to 7 percent annual earnings per share growth. The company said its reported earnings could vary from adjusted earnings because of several factors, such as legacy issues associated with prior asset sales and regulatory items from prior years. Because of those uncertainties, the company isn’t providing reported earnings guidance.
“We’re aggressively managing our costs at the same time we’re making these substantial investments,” said CMS Energy president and CEO John Russell. “We plan to hold our average base rate increases at or below the rate of inflation for the next five years. That’s part of our promise to work hard every day for our customers and to provide them with a good energy value Our investments are providing clear benefits for customers as well as creating value for investors. For example, we have invested $640 million in the Consumers Energy electric system over the past five years. Those investments paid off for customers with increased reliability this summer when hot, humid weather and Michigan’s recovering economy pushed the customer demand for electricity to record levels.”
In reviewing recent major events, Russell noted:
* High temperatures and Michigan’s recovering economy pushed customer demand for electricity in July to its highest monthly total in Consumers Energy’s 125-year history.
* The start of installation of “smart meters” at customer homes and businesses. The company plans to install the high-tech meters for all of its 1.8 million electric customers over the next several years.
* Consumers Energy has doubled, to $500 million, its five-year commitment to the Pure Michigan Business Connect, an initiative to create jobs and boost the state’s economy by encouraging Michigan companies to do more business with each other. The $500 million will be spent on competitively priced, quality products and services and is in addition to the $2 billion a year the utility already spends with other Michigan companies.
For more information on CMS Energy, visit www.cmsenergy.com.