File No. 069-00333 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM U-3A-2/A Amendment No. 1 STATEMENT BY HOLDING COMPANY CLAIMING EXEMPTION UNDER RULE U-3A-2 FROM THE PROVISIONS OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 ----------------------------------------------- TO BE FILED ANNUALLY PRIOR TO MARCH 1 ----------------------------------------------- CMS ENERGY CORPORATION (Name of Company) hereby files with the Securities and Exchange Commission, pursuant to Rule 2, its statement claiming exemption as a holding company from the provisions of the Public Utility Holding Company Act of 1935, and submits the following information: April 15, 2003 EXPLANATORY NOTE This Form U-3A-2/A amends the Form U-3A-2 that was filed on February 25, 2003. This amendment includes the consolidated financial statements on Exhibit A that were omitted from the Form U-3A-2 filed on February 25, 2003. 1 1. NAME, STATE OF ORGANIZATION, LOCATION AND NATURE OF BUSINESS OF CLAIMANT AND EVERY SUBSIDIARY THEREOF, OTHER THAN ANY EXEMPT WHOLESALE GENERATOR (EWG) OR FOREIGN UTILITY COMPANY IN WHICH CLAIMANT DIRECTLY OR INDIRECTLY HOLDS AN INTEREST. Claimant has listed EWGs, identified by an asterisk (*) and FUCOs, identified by double asterisk (**) in order to maintain the continuity of the organizational chart. For the purpose of this filing CMS Energy will address the information requested in section 1 under the headings of CMS Energy Corporation (Tier 1), CMS Enterprises Company (Tier 2) and Consumers Energy Company (Tier 2). As CMS Energy discusses in detail below, CMS Energy Corporation is the parent company for CMS Enterprises Company and Consumers Energy Company. All ownership interests are 100% unless indicated parenthetically to the contrary. 01 CMS ENERGY CORPORATION Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Energy Corporation ("CMS Energy") was duly incorporated under the laws of the State of Michigan in 1987. CMS Energy is an approximately $5.5 billion (sales) energy company with subsidiaries engaged in electric utility operations, gas utility operations, oil and gas exploration and production, the acquisition, development and operation of independent power production facilities, energy marketing and trading and the transportation, storage and marketing of natural gas. The name, state of organization and nature of business of CMS Energy's direct subsidiaries are described below: 02 CMS Enterprises Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Enterprises Company is a Michigan corporation that owns subsidiaries engaged in the development, acquisition and management of energy-related businesses and projects worldwide. 2 02 Consumers Energy Company Address: 212 West Michigan Avenue Jackson, Michigan 49201 Consumers Energy Company is a Michigan corporation engaged in the generation, purchase, transmission, distribution and sale of electricity, and in the purchase, storage, transmission, distribution and sale of natural gas, in the lower peninsula of the State of Michigan. THE NAME, STATE OF ORGANIZATION AND NATURE OF BUSINESS OF EACH SUBSIDIARY AND THEIR SUBSIDIARIES ARE DESCRIBED BELOW: 02 CMS ENTERPRISES COMPANY Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 03 CMS Business Development LLC Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Business Development LLC is a Texas limited liability corporation formed as a holding company for employees engaged in the business of project development in North America effective January 1, 2002. 03 CMS Capital, L.L.C. Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Capital is a Michigan limited liability corporation formed to assist in securing financing for CMS Energy Corporation and its subsidiaries and affiliates. 04 CMS Capital Financial Services, Inc. Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 3 CMS Capital Financial Services, Inc. is a Michigan corporation engaged in the business of making loans to homeowners and small businesses for energy related goods or services. 05 First Utility Finance, Inc. 04 EnerBank, USA Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 EnerBank, USA is a Utah corporation engaged in the business of an "industrial loan corporation" to issue thrift certificates of deposit and thrift savings accounts for the payment of money, to issue capital notes or debentures to receive payments with or without allowance for interest. 03 CMS Comercializadora de Energia S.A. (98.52%) Address: Edificio Torre Catalinas Plaza, Ing. Enrique Butty 220 8 Piso (Av. E. Madero Alt. 800/900) (1300) Buenos Aires, Argentina CMS Comercializadora de Energia S.A. is an Argentine corporation engaged in gas and electric marketing operations in Argentina. 03 *CMS Distributed Power, L.L.C. Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Distributed Power, L.L.C is a Michigan limited liability corporation formed for the purpose of aggregating the output from multiple generators to have power available on demand. 03 CMS Energy Asia Private Limited (Singapore) Address: 80 Raffles Place #26-20 UOB Plaza 2 Singapore 04862 CMS Energy Asia Private Limited is a Singapore corporation involved in the development of electrical generation and distribution opportunities, gas transmission, storage and distribution opportunities, electrical and gas marketing opportunities and oil and gas exploration and development opportunities in Asia and the Pacific Rim. 4 04 CMS Energy India Pte Ltd (India) (99%) Address: Units 203 & 204, Capital Towers 180, Nungambakkam High Road Kodambakkan, Chennai 600 034 India CMS Energy India Private Limited is an Indian corporation formed to pursue development opportunities in India. 03 CMS Energy India Pte Ltd (India) (1%) Address: Units 203 & 204, Capital Towers 180, Nungambakkam High Road Kodambakkan, Chennai 600 034 India CMS Energy India Private Limited is an Indian corporation formed to pursue development opportunities in India. 03 CMS Energy South America Company (CESA) Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Energy South America Company is a Cayman Islands corporation formed to provide for consolidation of the development expenses and activity in Argentina and Brazil. 04 CMS Enterprises Development Company S.A. (CEDC) (99.99%) Address: Edificio Torre Catalinas Plaza, Ing. Enrique Butty 220 8(Degree) Piso (Av. E. Madero Alt. 800/900) (1300) Buenos Aires, Argentina CMS Enterprises Development Company S.A. is an Argentina corporation formed to handle the development work in Argentina. 03 CMS Energy Technology Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Energy Technology Company is a Michigan corporation formed for the purpose of networked distributed generation. 5 03 CMS Energy UK Limited Address: 43-45 Portman Square, 4th Floor London, England W1H 6AF CMS Energy UK Limited is an United Kingdom limited liability company involved in the development of energy-related businesses and projects in Europe, Africa and the Middle East. 03 CMS Enterprises Development, L.L.C. Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Enterprises Development, L.L.C. is a Michigan limited liability corporation formed to invest in various projects, including but not limited to, a zirconium recovery project. 03 CMS Enterprises Holding Company S.A. (99.99%) Address: Edificio Torre Catalinas Plaza Ing. Enrique Butty 220 8(Degree) Piso (Av. E. Madero Alt. 800/900) (1300) Buenos Aires, Argentina CMS Enterprises Holding Company S. A. is an Argentine corporation formed as a holding corporation. 03 CMS Gas Transmission Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Gas Transmission Company is a Michigan corporation organized to engage in the transmission, storage and processing of natural gas. 04 Atlantic Methanol Capital Company (50%) Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 Atlantic Methanol Capital Company is a Cayman Islands corporation formed to assist in the financing relating to an Equatorial Guinea methanol plant that has subsequently been sold. 05 CMS Methanol Company (40%) 6 04 CMS Antrim Gas LLC Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Antrim Gas LLC is a Michigan limited liability corporation formed for the purpose of owning and operating the central carbon dioxide removal plant in Otsego County, Michigan. 04 CMS Bay Area Pipeline, LLC Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Bay Area is a Michigan limited liability corporation formed for the purpose of limiting and avoiding confusion with the pipeline system owned by MCN. 04 CMS Field Services, Inc. Address: Boulder Towers 1437 South Boulder, Suite 1250, Tulsa, Oklahoma 74119 CMS Field Services, Inc. is a Michigan corporation, formerly known as CMS Continental Natural Gas, Inc., involved in the gathering and processing of natural gas. 05 Bighorn Gas Gathering, L.L.C. (50%) 05 Bradshaw Energy, L.L.C. (97.5%) 05 Choctaw Thrust Gas Gathering System (33 1/3%) 05 CMS Cherokee Gas Processing, L.L.C. 05 CMS Field Services Holding Company 06 Bighorn Gas Gathering, L.L.C. (1%) 06 CMS Taurus GP Holding, L.L.C. 05 CMS Gas Processing, L.L.C. 05 CMS Gulf Coast Field Services, L.L.C. 7 05 CMS Hydrocarbons, L.L.C. 05 CMS Laverne Gas Processing, L.L.C. 05 CMS Natural Gas Gathering, L.L.C. 05 CMS Oklahoma Natural Gas Gathering, L.L.C. 05 CMS Taurus Holdings Company, L.L.C. 05 CMS Gulf Coast Holdings Company 05 CMS Midstream Services Company 05 Fort Union Gas Gathering, L.L.C. (33 1/3%) 04 CMS Gas Argentina Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1040 Dearborn, Michigan 48126 CMS Gas Argentina Company is a Cayman Islands corporation with an equity interest in Transportadora de Gas del Norte S.A., an Argentine corporation, which provides natural gas transmission services to the northern and central parts of Argentina. 05 Servicios de Aguas de Chile CMS y Compania Limitada (.01%) 05 Transportadora de Gas del Norte S.A. (TGN) (29.42%) 04 CMS Gas Offshore Investment Ltd. Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Gas Offshore Investment Ltd. is a Cayman Islands corporation formed for the purposes of financing, procurement, rehabilitation, upgrading, extension, ownership, operation and maintenance of existing power generation and seawater desalination project at the Taweelah complex in Abu Dhabi. 04 CMS Grands Lacs LLC Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 8 CMS Grands Lacs LLC is a Michigan limited liability corporation and owner of various natural gas pipelines in Northern Michigan. 04 CMS International Ventures, L.L.C. (37.01%) (See CMS Enterprises for list of subsidiaries) Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS International Ventures, L.L.C. is a Michigan limited liability corporation formed to own, manage and sell certain of CMS Energy's international investments. 04 CMS Jackson Pipeline Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1040 Dearborn, Michigan 48126 CMS Jackson Pipeline Company is a Michigan corporation involved as a 75% General Partner in Jackson Pipeline Company, a Michigan general partnership. 05 Jackson Pipeline Company (75%) 04 CMS Marysville Gas Liquids Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Marysville Gas Liquids Company is a Michigan corporation formed to hold a 51% interest in St. Clair Underground Storage Partnership and owns the Marysville Fractionation Partnership. 04 CMS Saginaw Bay Lateral Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Saginaw Bay Lateral Company is a Michigan corporation that holds the interest in lateral lines off the Saginaw Bay Pipeline systems. 9 04 CMS TriState Canada General Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS TriState Canada General Company is a Michigan corporation formed to hold a 1% General Partner interest in TriState Canada Limited Partnership, a Canadian partnership, which holds TriState Pipeline assets in Canada. 04 Nitrotec Corporation (50%) Address: 1021 Main Street, Suite 2800 Houston, Texas 77002 Nitrotec Corporation is a Delaware corporation formed to invest in plants that extract helium from natural gas. 04 Otsego EOR LLC (25%) Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 Otsego EOR LLC is a Michigan limited liability corporation formed as an enhanced oil-recovery project consisting of three oil reservoirs and pipeline and compression facilities located in Otsego County, Michigan. 04 Panhandle Eastern Pipe Line Company Address: 5444 Westheimer Road Houston, Texas 77056-5306 Panhandle Eastern Pipe Line Company is a Delaware corporation formed for the transmission of natural gas. 05 CMS Pan Gas Storage Company, L.L.C. 05 CMS Panhandle Eastern Resources, Inc. 05 Panhandle Partner LLC 06 CMS Panhandle Holdings, LLC (95%) 07 Centennial Pipeline, LLC (33 1/3%) 10 07 *CMS Panhandle Lake Charles Generation Company, LLC 07 CMS Trunkline Gas Company, LLC (100% - Class A Shares) 08 CMS Trunkline Deepwater Pipeline Company L.L.C. 09 Sea Robin Pipeline Company (50%) 08 CMS Trunkline Gas Resources, LLC 08 CMS Trunkline Offshore Pipeline Company L.L.C. 09 Sea Robin Pipeline Company (50%) 07 CMS Trunkline LNG Holdings, LLC (100% - Class B shares) 08 CMS Trunkline LNG Company, LLC 07 Dekatherm Investor Trust 08 CMS Trunkline LNG Holdings, LLC (100% - Class A shares) 07 Guardian Pipeline, LLC. (33 1/3%) 05 CMS Panhandle Storage Company 06 MG Venture Storage, Inc. 05 Trunkline Field Services Company 05 CMS Panhandle LNG Acquisition Company 06 CMS Panhandle Holdings, LLC (5%) 04 TriState Pipeline, L.L.C (66-2/3%) Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 TriState Pipeline, L.L.C. is a Michigan limited liability corporation formed to hold interests in the TriState Pipeline. 11 03 CMS Generation Co. Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Co is a Michigan corporation engaged in the development of and investment in cogeneration and other independent power generation projects both domestic and foreign. 04 *CMS Centrales Termicas S.A. (99%) Address: Edificio Torre Catalinas Plaza, Ing. Enrique Butty 220 8 Piso (Av. E. Madero Alt. 800/900) (1300) Buenos Aires, Argentina CMS Centrales Termicas S.A. is an Argentine corporation formed to own an interest in a 240 MW natural gas/fuel oil-fired electric power plant near Mendoza, Argentina. 05 Cuyana S.A. de Inversiones (1%) 06 Centrales Termicas Mendoza, S.A. (92.6%) 04 CMS Generation Altoona Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Altoona Company is a Michigan corporation formed to develop, construct, own, operate and maintain a bituminous coal, bituminous coal waste or other solid fuel-burning facility. 04 CMS Generation Cebu Operating Limited Duration Company (99%) Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Cebu Operating Limited Duration Company is a Cayman Islands entity involved as the operator of the Atlas Power Plant, a 135 MW coal/oil-fired power plant on Cebu Island, Philippines. 12 04 CMS Generation Chateaugay Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Chateaugay Company is a Michigan corporation involved as a General Partner in KES Chateaugay, LP, a limited partnership. 04 CMS Generation Filer City, Inc. Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Filer City, Inc. is a Michigan corporation involved as a 50% General Partner in the T.E.S. Filer City Station Limited Partnership, a Michigan limited partnership that is the owner of the 54 megawatt (net) wood chip and coal-fired electric generating station in Filer City, Michigan. 04 CMS Generation Filer City Operating Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Filer City Operating Company is a Michigan corporation formed to operate a coal and waste wood-fueled power plant near Filer City, Michigan owned by the T.E.S. Filer City Station Limited Partnership. 04 CMS Generation Genesee Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Genesee Company is a Michigan corporation involved as a 1% General Partner in the Genesee Power Station Limited Partnership, a Delaware limited partnership, which owns and operates a 35-megawatt (net) waste wood-fired electric generating facility located in Genesee County, Michigan. 05 Genesee Power Station Limited Partnership (1%) 06 GPS Newco, L.L.C (50%) 13 04 CMS Generation Grayling Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Grayling Company is a Michigan corporation involved as a 1% General Partner in Grayling Generating Station Limited Partnership, a Michigan limited partnership, that owns a 36-megawatt (net) waste wood- fueled power plant in Grayling, Michigan. Grayling Generating Station Limited Partnership owns GGS Holdings Company, a Michigan corporation, which is a .5% General Partner in AJD Forest Products Limited Partnership that operates a sawmill adjacent to the Grayling Generating Station and also supplies waste wood fuel to Grayling Generating Station Limited Partnership is a 49.5 % Limited Partner in AJD Forest Products Limited Partnership, a Michigan limited partnership. 05 Grayling Generation Station Limited Partnership (1%) 06 GGS Holdings Company 05 Grayling Partners Land Development, L.L.C. (1%) 04 CMS Generation Honey Lake Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Honey Lake Company is a Michigan corporation with a General Partnership interest and a Limited Partnership interest in H L Power Company, a California limited partnership that uses waste wood and geothermal fluid to generate a 30-megawatt (net) electric generating station in Lassan County, California. Also involved as General Partner in Honey Lake Energy I LP, and Honey Lake Energy II LP, both Michigan limited partnerships formed to own limited partnership interests in H L Power Company. 05 Honey Lake Energy I L.P. (99%) 06 H L Power Company (18.65%) 05 Honey Lake Energy II L.P. (99%) 06 H L Power Company (18.65%) 05 H L Power Company (.5%) 14 04 CMS International Ventures, L.L.C. (21.02%) (See CMS Enterprises for list of subsidiaries) 04 CMS Generation Lyonsdale Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Lyonsdale Company is a Michigan corporation involved as a general partner of Lyonsdale Energy Limited Partnership, a Delaware limited partnership, owners of the Lyonsdale Project, Lyonsdale, New York, a 19MW waste wood-fueled plant. 04 CMS Generation Grayling Holdings Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Grayling Holdings Company is a Michigan corporation involved as a 49% Limited Partner in Grayling Generating Station Limited Partnership, a Michigan limited partnership. Grayling Generating Station Limited Partnership owns GGS Holdings Company, a Michigan corporation that owns a .5% General Partner interest in AJD Forest Products Limited Partnership, a Michigan limited partnership. 05 Grayling Generating Station Limited Partnership (49%) 06 GGS Holdings Company 05 Grayling Partners Land Development LLC (49%) 04 CMS Generation Holdings Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Holdings Company is a Michigan corporation involved as a limited partner in various proposed partnerships. 05 *CMS Centrales Termicas S.A. (1%) 05 Genesee Power Station Limited Partnership (.5%) 06 GPS Newco, L.L.C. (50%) 15 05 GPS Newco, L.L.C. (50%) 05 CMS Generation, S.R.L. (.01%) 06 *Hidroelectrica El Chocon S.A. (2.48%) 06 Hidroinvest S.A. (25%) 07 *Hidroelectrica El Chocon S.A. (59%) 05 Moose River Properties (50%) 05 *CMS Ensenada S.A. (1%) 05 CMS Operating, S.R.L. (.001%) 05 Metro East, L.L.C. (50%) 05 McCook Cogeneration Station, L.L.C (50%) 04 Dearborn Industrial Energy, L.L.C. Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 Dearborn Industrial Energy, LLC is a Michigan limited liability corporation formed to hold the ownership interest in Dearborn Industrial Generation, LLC and to obtain an air permit for the Dearborn Industrial Generation Project. 05 *Dearborn Industrial Generation, L.L.C. 04 *Dearborn Generation Operating, L.L.C. Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 Dearborn Generation Operating, L.L.C. is a Michigan limited liability corporation formed to operate the cogeneration facility located at the Ford Rouge plant. 04 CMS Generation Investment Company I Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 16 CMS Generation Investment Company I is a Cayman Islands corporation involved as a holding company for CMS Generation overseas investments that engage in the construction, ownership or operation of various power projects in Ghana, Morocco, Saudi Arabia and United Arab Emirates. 05 CMS Generation Company Investment Company IV 06 CMS Generation Investment Company II 07 CMS Generation Jorf Lasfar I Limited Duration Company (65%) 08 Jorf Lasfar Handelsbolag (50%) 08 Jorf Lasfar I HB (50%) 08 Jorf Lasfar Power Energy HB (50%) 07 CMS Generation Jorf Lasfar II Limited Duration (65%) 08 Jorf Lasfar Handelsbolag (50%) 08 Jorf Lasfar I HB (50%) 08 Jorf Lasfar Power Energy HB (50%) 07 CMS Generation Cebu Operating Limited Duration Company (1%) 07 CMS Generation Jegurupadu I Limited Duration (1%) 08 Jegurupadu O&M Company Mauritius (50%) 09 *Jegurupadu Operating & Maintenance Company (60%) 07 CMS Generation Jegurupadu II Limited Duration (1%) 08 Jegurupadu O&M Company Mauritius (50%) 09 *Jegurupadu Operating and Maintenance Company (60%) 07 CMS Generation Pinamucan Limited Duration Company (1%) 07 CMS Generation Pinamucan Operating Limited Duration Company (1%) 06 CMS Generation Jorf Lasfar III Limited Duration Company (50%) 17 07 *CMS Morocco Operating Co., S.C.A. (.1%) 06 CMS Generation Luxembourg II S.a.r.l. 07 CMS Generation Luxembourg S.a.r.l. 08 CMS Generation Netherlands B.V. 09 Jorf Lasfar Energiaktiebolag 10 *Jorf Lasfar Energy Company (25%) 09 Jorf Lasfar Power Energy Aktiebolag 10 *Jorf Lasfar Energy Company (23%) 06 CMS Generation Jorf Lasfar I Limited Duration Company (35%) 07 Jorf Lasfar Handelsbolag (50%) 08 *Jorf Lasfar Energy Company (2%) 06 CMS Generation Jorf Lasfar II Limited Duration Company (35%) 07 Jorf Lasfar Handelsbolag (50%) 08 *Jorf Lasfar Energy Company (2%) 05 CMS Generation Investment Company VI 06 CMS Takoradi Investment Company 07 CMS Takoradi Investment Company II 08 *Takoradi International Company (Ghana) (90%) 05 CMS Generation Investment Company VII 06 CMS Generation Taweelah Limited 07 **Emirates CMS Power Company (40%) 08 Taweelah Shared Facilities Company LLC (17%) 06 CMS Jubail Investment Company I 18 06 Shuweihat General Partner Company (50%) 07 Shuweihat Limited Partnership (1%) 08 Shuweihat CMS International Power Company (UAE) (40%) 06 Shuweihat Limited Partnership (49.5%) 07 Shuweihat CMS International Power Company (UAE) (40%) 06 Shuweihat O&M Limited Partnership (49.5%) 06 Shuweihat O&M General Partner Company (50%) 07 Shuweihat O&M Limited Partnership (1%) 05 CMS Generation Loy Yang Holdings 1 Ltd. 06 **Horizon Energy Holdings Ltd. 07 **Loy Yang Power Partners (24.63%) 07 Loy Yang Power Projects Pty. Lt. (49.6%) 07 Loy Yang Power Management Pty Ltd (49.6%) 05 CMS Generation Loy Yang Holdings 2 Ltd. 06 **CMS Generation Horizon Energy Holdings Ltd. 07 Loy Yang Power Management Pty Ltd (49.6%) 07 **Loy Yang Power Partners (25%) 07 Loy Yang Power Projects Pty Ltd (49.6%) 05 Servicios de Aguas de Chile CMS y Compania Limitada (99.99%) 05 *CMS Morocco Operating Co., S.C.A (.1%) 05 *CMS (India) Operations & Maintenance Company Private Limited (1%) 05 Energex Co. (20%) 19 04 CMS Generation Montreal Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Montreal Company is a Michigan corporation involved as a .1 percent general partner in the Secure Wood Chips LP to own and operate a waste-wood recovery facility in the greater Montreal, Quebec, Canada area. 04 *CMS Generation Operating Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Operating Company is a New York corporation involved in the operation of various power plants throughout the United States. 04 CMS Generation Recycling Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Recycling Company is a Michigan corporation that owns 50% of Mid-Michigan Recycling, L.C. Mid-Michigan Recycling was created to be involved in supplying waste wood fuel initially for the Genesee Power Station Limited Partnership. 05 Mid-Michigan Recycling, L.C. (50%) 04 *CMS International Operating Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1000 Dearborn, Michigan 48126 CMS International Operating Company is a Cayman Islands corporation, formed to own and control project operating and maintenance companies. 05 CMS Generation UK Operating Private Limited 06 Jorf Lasfar Aktiebolag 07 *CMS Morocco Operating Co, S.C.A. (99.7%) 20 05 *CMS (India) Operations & Maintenance Company Private Limited (99%) 05 *CMS Morocco Operating Co., S.C.A. (.1%) 05 CMS Generation Jorf Lasfar III Limited Duration Company (50%) 06 *CMS Morocco Operating Co., S.C.A. (.1%) 04 *CMS Generation Michigan Power L.L.C. Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Michigan Power L.L.C. is a Michigan limited liability corporation formed to own generating units which are to be sited in Michigan for the purpose of generating power during peak demand periods. 04 Exeter Management Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 Exeter Management Company is a Connecticut corporation involved as the General Partner in the Exeter Energy Limited Partnership, which owns and operates the 29.8Mwe tire fueled cogeneration plant in Sterling Connecticut. 04 *Hidroelectrica El Chocon S.A. (2.48%) Address: 8311 Neuquen Neuquen Province Argentina Hidroelectrica El Chocon S.A. is an Argentine company which holds a thirty-year concession to operate two hydroelectric power plants in Argentina. 04 Honey Lake II, L.P. (1%) Address: Fairlane Plaza South 330 Town Center Drive, Suite 1000 Dearborn, Michigan 48126 Honey Lake II, L.P. is a California limited partnership created to participate as a 24.75% limited partner in the cogeneration facility at Honey Lake, California. 21 05 H L Power Company (18.65%) 04 Honey Lake I, L.P. (1%) Address: Fairlane Plaza South 330 Town Center Drive, Suite 1000 Dearborn, Michigan 48126 Honey Lake I., L.P. is a California limited partnership created to participate as a 24.75% limited partner in the cogeneration facility at Honey Lake, California. 05 H L Power Company (18.65%) 04 Hydra-Co Enterprises, Inc. Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 Hydra-Co Enterprises, Inc. is a New York corporation involved in the management and operation of various plants. The plants are fueled by coal, natural gas, waste wood and water (hydro). Also involved as construction management responsibility for a 60 megawatt diesel-fueled plant in Jamaica. 05 Caribbean Electric Power (40%) 05 CMS Generation Operating Company II, Inc. 06 HCO-Jamaica, Inc. 07 *Private Power Operations Limited (100%) 05 CMS Generation Stratton Company 05 HCE-Biopower, Inc. 05 HCE-Jamaica Development, Inc. 05 HCE-Rockfort Diesel, Inc. 06 *Jamaica Private Power Company, Limited (45.07%) 05 Hydra-Co Generation, Inc. 05 Little Falls Hydropower Associates (33.33%) 05 Lock 17 Management Group (33.33%) 22 05 Lock 17 Group (33.33%) 05 New Bern Energy Recovery, Inc. 05 Windpower Partners 1989 (8.5346%) 05 Jamaica Energy Team Limited (59.7%) 04 McCook Cogeneration Station, L.L.C. (50%) Address: Fairlane Plaza South 330 Town Center Drive, Suite 1000 Dearborn, Michigan 48126 McCook Cogeneration Station, L.L.C. is a Michigan limited liability corporation involved in the development, construction, ownership, and operation of a waste wood cogeneration facility in Cook County, Illinois. 04 McCook Waste Wood Recovery Facility, L.L.C. (50%) Address: Fairlane Plaza South 330 Town Center Drive, Suite 1000 Dearborn, MI 48126 McCook Waste Wood Recovery Facility, LLC is a Michigan limited liability company formed to develop and own a waste wood recycling and processing facility where waste wood will be received, manually and mechanically separated and then recycled or processed for use at McCook Cogeneration Station, LLC. 04 Metro East, L.L.C. (50%) Address: Fairlane Plaza South 330 Town Center Drive, Suite 1000 Dearborn, Michigan 48126 Metro East, L.L.C. is a limited liability corporation created to pursue cogeneration development possibilities in East St. Louis, Illinois. 04 Midland Cogeneration Venture Expansion, LLC (50%) Address: Fairlane Plaza South 330 Town Center Drive, Suite 1000 Dearborn, Michigan 48126 23 Midland Cogeneration Venture Expansion, LLC is a Delaware limited liability company formed to develop the MCV Expansion including ordering and funding long-lead equipment. 04 Notera Holding B.V. Address: A. J. Ernststraat 595 H 1082 LD Amsterdam, The Netherlands Notera Holding B.V. is a Netherlands corporation and currently inactive. 04 Oxford Tire Supply, Inc. Address: Fairlane Plaza South, 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 Oxford Tire Supply, Inc. is a Delaware corporation formed to collect and sell secondhand tires to dealers and scrap tires to be burned as fuel at the Exeter Energy Plant in Sterling, Connecticut. 04 Oxford Tire Recycling, Inc. Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 Oxford Tire Recycling, Inc. is a Delaware corporation engaged in tire collection, shredding and storage, the sale of used and shredded tires, and related business activities. 04 Scudder Latin America Power I-C LDC (25%) Address: 345 Park Avenue New York, New York 10154-0010 Scudder Latin America Power I-C LDC is a Cayman Islands corporation formed for the purposes of an Investment Fund to invest (primarily passive) in electric generating facilities and the electric infrastructure in Latin America and the Caribbean. 04 **Taweelah A2 Operating Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 Taweelah 2 Operating Company is a Michigan corporation formed to operate the Taweelah A2 project through a branch office in Abu Dhabi, United Arab Emirates. 24 03 CMS International Ventures, L.L.C. (40.47%) Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS International Ventures, L.L.C. is a Michigan limited liability corporation formed to own, manage and sell certain of CMS Energy's international investments. 04 CMS Electric & Gas, L.L.C. Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Electric and Gas, L.L.C. is a Michigan limited liability corporation. CMS International Distribution LLC and CMS Electric and Gas Company merged on December 20, 2002 to form CMS Electric & Gas, L.L.C. 05 CMS Comercializadora de Energia Ltda (99.99%) 05 CMS Distribuidora Ltda (99.99%) 06 CMS Participacoes Ltda. (99.99%) 07 Agropecuaria Turvinho Ltda. (.01%) 07 **Companhia Paulista de Energia Eletrica (CPEE) a Brazilian corporation (93.86), 08 Agropecuaria Turvinho Ltda. (99.99%) 08 **Companhia Sul Paulista de Energia Eletrica (CSPE), a Brazilian corporation (88.63%) 09 **Companhia Jaguari de Energia S.A. (CJE), a Brazilian corporation 10 **Compania Luz e Forca de Mococo SA (CLFM) 10 CPEE Equipamentos Eletricos e Servicos Ltda. (99.86%) 08 Paulista Lajeado Energia SA (7%) 08 Companhia Nova Paulista de Energia 25 05 CMS Electric and Gas Moldova, L.L.C. 05 CMS Electric and Gas Sucursal (branch) Argentina 05 CMS Empreendimentos Ltda (99.99%) 05 CMS Netherlands Funding Company 05 CMS Venezuela S.A. 06 **Sistema Electrico del Estado Nueva Esparta C.A. (SENCA) (52.37%) 05 ENELMAR, SA 06 **Sistema Electrico del Estado Nueva Esparta C.A. (SENCA) (33.34%) 04 CMS Generation Investment Company III Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Generation Investment Company III is a Cayman Islands corporation formed to have an ownership interest in certain Indian power generation projects. 05 CMS Energy Mauritius Limited 06 TN LNG & Power Co. Ptv. Ltd. (India) (TIDCO) (26.67%) 05 CMS Generation Jegurupadu I Limited Duration Company (99%) 06 Jegurupadu O&M Company Mauritius (50%) 07 *Jegurupadu Operating & Maintenance Company (60%) 05 CMS Generation Jegurupadu II Limited Duration Company (99%) 06 Jegurupadu O&M Company Mauritius (50%) 07 *Jegurupadu Operating & Maintenance Company (60%) 05 CMS Generation Neyveli Ltd. (100%) 06 *ST-CMS Electric Company Pvt. Ltd. (50%) 06 ST-CMS Electric Company (Mauritius) (41.5%) 26 05 Jegurupadu CMS Generation Company Ltd. 06 *GVK Industries Ltd. (23.75%) 04 CMS Generation Investment Company V Address: Fairlane Plaza South 330 Town Center Drive, Suite 1000 Dearborn, Michigan 48126 CMS Generation Investment Company V is a Cayman Islands corporation formed to separate our projects on a regional basis in order to provide the Company more liability protection. 05 Compania de Inversiones CMS Energy Chile Limitada (40%) 06 Gasoducto Atacama Argentina Limitada (10%) 06 Gasoducto Atacama Chile Limitada (50%) 07 Progas S.A. (99.99%) 07 Gasoducto Taltal Ltda. (99%) 06 GasAtacama Generacion Limitada (50%) 07 Progas S.A. (.01%) 07 Empresa de Transmission Electra Transemel S.A. (40%) 07 CDEC-SING Limitada (16.666%) 06 GasAtacama S.A. (50%) 05 Gasoducto Atacama Argentina Limitada (20%) 06 Gasoducto Taltal Ltda. (1%) 05 Scudder Latin American Power I-P L.D.C. (25%) 05 Scudder Latin American Power II-P L.D.C. (4%) 04 CMS Generation, S.R.L. (99.99%) Address: Edificio Torre Catalinas Plaza, Ing. Enrique Butty 220 8 Piso (Av. E. Madero Alt. 800/900) (1300) Buenos Aires, Argentina 27 CMS Generation, S.R.L. is an Argentine corporation formed to invest in a hydroelectric power concession in Argentina. 05 Hidroinvest S.A. (25%) 06 *Hidroelectrica El Chocon S.A (59%) 04 **CMS Operating, S.R.L. (99.999%) Address: Edificio Torre Catalinas Plaza, Ing. Enrique Butty 220 8 Piso (Av. E. Madero Alt. 800/900) (1300) Buenos Aires, Argentina CMS Operating, S.R.L. is an Argentine corporation created to have a 80.55% interest through its subsidiary Cuyana de Inversiones, S.A. in the Centrales Termicas Mendoza, S.A. partnership. Centrales Termicas Mendoza, S.A. was formed to acquire, own and operate the Lujan de Cuyo and Cruz de Piedra plants in Argentina. 05 *CMS Ensenada S.A (99%) 05 Cuyana S.A. de Inversiones (99%) 06 Centrales Termicas Mendoza, S.A. (92.6%) 05 Transportadora de Gas del Mercosur (Argentina) (20%) 04 Western Australia Gas Transmission Company I Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 Western Australia Gas Transmission Company I is a Cayman Islands corporation which is a holding company for certain international assets. 05 CMS Gas Transmission del Sur Company 06 Atacama Finance Co. (50%) 06 CMS Atacama Company 06 Compania de Inversiones CMS Energy-Chile Ltda (60%) 07 GasAtacama S.A. (50%) 07 Gasoducto Atacama Argentina Limitada (10%) 28 07 Gasoducto Atacama Chile Limitada (50%) 08 Gasoducto Taltal Limitada (99%) 08 Progas S.A. (99.99%) 07 GasAtacama Generacion Limitada (50%) 08 CDEC-SING (16.666%) 08 Empresa de Transmision Electrica Transemel SA (40%) 08 Progas S.A. (.01%) 06 Energex Co. (30%) 06 Gasoducto Atacama Argentina Limitada (20%) 07 Gasoducto Taltal Ltda (1%) 06 Energex Co. (20%) 05 CMS Gas Transmission of Australia Holdings Company 06 CMS Gas Transmission of Australia 05 CMS International Finance Services Company 05 CMS Luxembourg SARL 06 Valandrid BV 07 CMS Goldfields Gas Transmission Australia PTY. LTD. 08 SCP Investments (No. 1) PTY. LTD (45%) 09 SCP Investments (No. 2) PTY. LTD 10 Southern Cross Pipelines Australia PTY. LTD 11 Goldfields Gas Transmission Joint Venture (66.664%) 12 Goldfields Gas Transmission Pty. Ltd. 09 SCP Investments (NO 3) PTY. LTD 29 10 Southern Cross Pipelines (NPL) Australia PTY. LTD 11 Goldfields Gas Transmission Joint Venture (25.5%) 12 Goldfields Gas Transmission PTY. LTD 07 CMS TriState Canada Unlimited Company 05 CMS Pamelia Gas Transmission Pty Ltd. 03 CMS Land Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Land Company is a Michigan corporation formed to act as a repository for any unused real property formerly owned by Consumers Energy Company and hold the same for possible non-utility development. 03 CMS Marketing, Services and Trading Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Marketing, Services and Trading Company is a Michigan corporation involved in providing gas, electric, oil and coal marketing, risk management and energy management services. 04 CMS Merchant Services, L.L.C. Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Merchant Services, L.L.C. is a Michigan limited liability corporation formed for the purpose of purchasing capacity under the FERC's capacity release regulations for monthly transactions. 30 04 CMS Viron Corporation Address: 12980 Foster Suite 400 County of Johnson Overland Park, KS 66213-2646 CMS Viron Corporation is a Missouri corporation formed to provide services in the areas of energy usage analysis and the engineering and implementation of energy conservation measures. 04 CMS MS&T Michigan L.L.C. Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48226 CMS MS&T is a Michigan limited liability company formed for the sole purpose of taking an assignment of the Ford/Rouge Electricity Sales Agreements from Dearborn Industrial Generation L.L.C. (DIG) and to perform those contracts. 04 CMS Texon Company ` Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48226 A Michigan corporation involved as a general partner in Texon, LP, a Texas limited partnership engaged in transporting, processing and marketing of crude oil and natural gas liquids and services related thereto. 04 Dorman Energy L.L.C. (49%) Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 Dorman Energy, L.L.C. is a Michigan limited liability corporation formed as a partner with a minority controlled energy business to pursue minority set aside energy contracts. 04 Premstar Energy Canada Ltd (50%) Address: 330 Richmond Street Suite 104 Chatham, Ontario Canada N7M 1P7 31 Premstar Energy Canada Ltd, is a Canadian corporation engaged in purchasing, transporting, storing, selling, brokering and marketing natural gas in North America and energy-related consulting. 05 ECNG Inc (88%) 05 Energistics Group, Inc. 05 Premstar Metering Inc. (70%) 06 Canadian Meter Services Ltd. 03 CMS Resource Development Company Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Resource Development Company is a Michigan corporation formed to pursue and develop various power sources outside the United States. 03 CMS MicroPower Systems, L.L.C. Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS MicroPower Systems, L.L.C. is a Michigan limited liability corporation formed for the purpose of leasing portable generation assets. 03 CMS Texas LLC Address: Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 CMS Texas LLC is a Texas limited liability corporation formed to conduct business activities in Texas. 03 Explotaciones CMS Oil and Gas Company Address: 1021 Main Street Suite 2800 Houston, Texas 77002 Explotaciones CMS Oil and Gas Company is a Delaware corporation and currently inactive. 32 02 CONSUMERS ENERGY COMPANY Address: 212 West Michigan Avenue Jackson, Michigan 49201 The consolidated operations of Consumers Energy Company ("Consumers") account for the largest share of CMS Energy's total assets and income and accounts for a substantial portion of its revenues. The name, state of organization and nature of business of Consumers' subsidiaries are described below: 03 CMS Engineering Co. Address: 212 West Michigan Avenue Jackson, Michigan 49201 CMS Engineering Company is a Michigan corporation engaged in offering design, engineering, project management and related construction services to natural gas utilities, natural gas exploration and production companies, and other energy businesses. 03 CMS Midland Holdings Company Address: 212 West Michigan Avenue Jackson, Michigan 49201 CMS Midland Holdings Company is a Michigan corporation involved as a Limited Partner in the First Midland Limited Partnership, a Delaware limited partnership, a partnership that leases assets to the Midland Cogeneration Venture Limited Partnership, a Michigan limited partnership. 03 CMS Midland, Inc. Address: 212 West Michigan Avenue Jackson, Michigan 49201 CMS Midland, Inc. is as Michigan corporation engaged as a 49% General Partner in the Midland Cogeneration Venture Limited Partnership, a Michigan limited partnership. 03 Consumers Campus Holdings, LLC Address: 212 West Michigan Avenue Jackson, Michigan 49201 Consumers Campus Holdings, LLC is a Michigan limited liability corporation formed for the purpose of being the lessee in the synthetic lease financing of the new Consumers Energy Company office building to be located in downtown Jackson, Michigan. 33 03 Consumers EnergyGuard Services, Inc. Address: 212 West Michigan Avenue Jackson, Michigan 49201 Consumers EnergyGuard Services, Inc. is a Michigan corporation formed for the purpose of marketing EnergyGuard, a residential bill payment insurance product to Consumers' residential customers. 03 Consumers Funding LLC Address: 212 West Michigan Avenue Jackson, Michigan 49201 Consumers Funding LLC is a Delaware limited liability corporation formed for the purpose of acting as assignee of property transferred by Consumers and issuer of securitization bonds. 03 Consumers Nuclear Services LLC Address: 212 West Michigan Avenue Jackson, Michigan 49201 Consumers Nuclear Services LLC is a Michigan corporation formed for the purpose of holding the 20% member interest in Nuclear Management LLC. 04 Nuclear Management Company LLC (20%) Address: 700 First Street Hudson, Wisconsin 54016 Nuclear Management Company is a Wisconsin limited liability company formed to achieve enhanced reliability and continued safe operation, to pursue overall excellence in nuclear power operations, as well as to identify efficiencies in the provision of operating services to nuclear facilities. 03 Consumers Parnall Holdings, LLC Address: 212 Wes Michigan Avenue Jackson, Michigan 49201 Consumers Parnall Holdings, LLC is a Michigan limited liability corporation formed for the purposes of holding the Consumers Parnall facility. 34 03 Consumers Receivables Funding, LLC Address: 212 West Michigan Avenue Jackson, Michigan 49201 Consumers Receivables Funding, LLC is a Delaware limited liability corporation formed for the purposes of buying certain accounts receivables from Consumers Energy Company and sell them to a third party. 03 ES Services Company Address: 212 West Michigan Avenue Jackson, Michigan 49201 ES Services Company is a Michigan corporation formed for the purpose of offering design, engineering, project management and related services primarily to electric utilities and generation facilities. 03 MEC Development Corp. Address: 212 West Michigan Avenue Jackson, Michigan 49201 MEC Development Corp. is a Michigan corporation which previously held assets transferred to and holder of certain bonds issued by the Midland Cogeneration Venture Limited Partnership, a Michigan limited partnership. 35 2. A BRIEF DESCRIPTION OF THE PROPERTIES OF CLAIMANT AND EACH OF ITS SUBSIDIARY PUBLIC UTILITY COMPANIES USED FOR THE GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRIC ENERGY FOR SALE, OR FOR THE PRODUCTION, TRANSMISSION AND DISTRIBUTION OF NATURAL OR MANUFACTURED GAS, INDICATING THE LOCATION OF PRINCIPAL GENERATING PLANTS, TRANSMISSION LINES, PRODUCING FIELDS, GAS MANUFACTURING PLANTS, AND ELECTRIC AND GAS DISTRIBUTION FACILITIES, INCLUDING ALL SUCH PROPERTIES WHICH ARE OUTSIDE THE STATE IN WHICH CLAIMANT AND ITS SUBSIDIARIES ARE ORGANIZED AND ALL TRANSMISSION OR PIPELINES WHICH DELIVER OR RECEIVE ELECTRIC ENERGY OR GAS AT THE BORDERS OF SUCH STATE. ------------------------------------------------------------------------- Claimant has no directly owned properties used for such purposes. Claimant's subsidiary Consumers is a public utility. Its property and facilities used for the above-described purposes are located within the State of Michigan and are described below. (1) ELECTRIC PROPERTIES Consumers' electric generation is supplied by the following plants: 2002 2002 Summer Net Size and Year Demonstrated Net Generation Name and Location (Michigan) Entering Service Capability (kW) (Thousands of kWhs) ---------------------------- ---------------- --------------- ------------------- Coal Generation J H Campbell 1&2 - West Olive 2 Units, 1962-1967 615,000 4,406,940 J H Campbell 3 - West Olive 1 Unit, 1980 765,140(a) 4,511,713 D E Karn - Essexville 2 Units, 1959-1961 515,000 3,824,249 B C Cobb - Muskegon 2 Units, 1956-1957 316,000 2,150,510 J R Whiting - Erie 3 Units, 1952-1953 326,000 2,262,509 J C Weadock - Essexville 2 Units, 1955-1958 310,000 2,205,575 TOTAL COAL GENERATION 2,847,140 19,361,496 --------- ---------- Oil/Gas Generation B C Cobb - Muskegon 3 Units, 1999-2000 183,000 38,035 D E Karn - Essexville 2 Units, 1975-1977 1,276,000 650,008 TOTAL OIL/GAS GENERATION 1,459,000 688,043 --------- ---------- Hydroelectric Conventional Hydro Generation 13 Plants, 1906-1949 73,540 386,691 Ludington Pumped Storage 6 Units, 1973 954,700(b) (486,322)(c) TOTAL HYDROELECTRIC 1,028,240 (99,631) --------- ---------- 36 Nuclear Generation Palisades - South Haven 1 Unit, 1971 767,000 6,357,962 TOTAL NUCLEAR GENERATION 767,000 6,357,962 --------- ---------- Gas/Oil Combustion Turbine Generation 8 Plants, 1966-1999 346,800(d) 12,743 TOTAL GAS/OIL COMBUSTION TURBINE 346,800 12,743 --------- ---------- TOTAL OWNED GENERATION 6,448,180 26,320,613 --------- ========== Purchased and Interchange Power Capacity 1,741,180(e) --------- TOTAL 8,189,360 (a) Represents Consumers' share of the capacity of the J H Campbell 3, net of 6.69 percent (ownership interests of the Michigan Public Power Agency and Wolverine Power Supply Cooperative, Inc.). (b) Represents Consumers' share of the capacity of Ludington. Consumers and Detroit Edison have 51 percent and 49 percent undivided ownership, respectively, in the plant. (c) Represents Consumers' share of net pumped storage generation. This facility electrically pumps water during off-peak hours for storage to later generate electricity during peak-demand hours. (d) Includes 1.8 MW of distributed generation. (e) Includes 1,240 MW of purchased contract capacity from the MCV Facility. Electric subtransmission and distribution lines are located on or under public highways, streets, alleys or lands, except where they are located on or under easements or other rights. Consumers owns 338 miles of 138kV high voltage distribution radial lines. The high voltage distribution system consists of 4,159 structural miles of overhead 46kV and 23 kV high voltage distribution lines and 16 subsurface miles of underground 46kV high voltage distribution lines. The distribution system consists of 54,681 structural miles of overhead lines and 8,201 subsurface miles of underground lines. Consumers owns substations having an aggregate transformer capacity of 20,596,240 kilovoltamperes. 37 On April 1, 2001, Consumers transferred its investment in electric transmission lines and substations to a wholly owned subsidiary, Michigan Electric Transmission Company (METC). On May 1, 2002, Consumers sold its interest in METC to a third party, Michigan Transco Holdings, LLC, and no longer owns transmission facilities. The new transmission company is called Michigan Electric Transmission Company, LLC (METC, LLC). Consumers is interconnected to METC, LLC and to some municipal electric utilities in Michigan. METC, LLC is interconnected with neighboring utilities as well as out-state transmission systems. (2) Gas Properties Consumers' gas distribution and transmission system consists of 25,218 miles of distribution mains and 1,624 miles of transmission lines throughout Michigan's lower peninsula. It owns and operates seven compressor stations with a total of 162,000 installed horsepower. Consumers has 14 gas storage fields located across Michigan with an aggregate storage capacity of 330.8 bcf. In February 2002, the FERC approved Michigan Gas Storage's application for a declaration of exemption from provisions of the Natural Gas Act. This allowed Consumers to merge with Michigan Gas Storage effective when an appropriate MPSC order was issued. The merger was approved and completed in November 2002. ------------------------------------------------------------------------- 3. THE FOLLOWING INFORMATION FOR THE LAST CALENDAR YEAR WITH RESPECT TO CLAIMANT AND EACH OF ITS SUBSIDIARY PUBLIC UTILITY COMPANIES: ------------------------------------------------------------------------- ELECTRIC ENERGY (A) NUMBER OF KWH OF ELECTRIC ENERGY SOLD (AT RETAIL OR WHOLESALE). SUBSIDIARY kWh ---------- --- Consumers Energy Total 37,371,746,552 CMS MS&T Total 32,023,077,500 -------------- 69,394,824,052 (B) NUMBER OF KWH OF ELECTRIC ENERGY DISTRIBUTED AT RETAIL OUTSIDE MICHIGAN. SUBSIDIARY kWh ---------- --- Consumers Energy Total 0 CMS MS&T Total 0 --- Total Electric Energy Distributed Outside of the State of Michigan 0 === 38 (C) NUMBER OF KWH OF ELECTRIC ENERGY SOLD AT WHOLESALE OUTSIDE MICHIGAN OR AT MICHIGAN'S STATE LINE. SUBSIDIARY kWh ---------- --- Consumers Energy Total 642,711,000 CMS MS&T Total 60,992, 768,870 --------------- Total Electric Energy Sold at Wholesale Outside the State of Michigan or at Michigan's State Line. 61,635,479,870 ============== (D) NUMBER OF KWH OF ELECTRIC ENERGY PURCHASED OUTSIDE MICHIGAN OR AT MICHIGAN'S STATE LINE. SUBSIDIARY kWh ---------- --- Consumers Energy Total 2,667,902,000 CMS MS&T Total 60,551,717,000 -------------- Total Electric Energy Purchased Outside of Michigan 63,219,619,000 ============== NATURAL GAS CMS Energy information reports for natural gas, as it does not deal with or in manufactured gas. (A) NUMBER OF MCF OF NATURAL GAS DISTRIBUTED AT RETAIL. SUBSIDIARY Mcf ---------- --- Consumers Energy Total 248,822,000 CMS MS&T Total 77,676,145 -------------- Total Natural Gas Distributed at Retail 326,498,145 ============== (B) NUMBER OF MCF OF NATURAL GAS DISTRIBUTED AT RETAIL OUTSIDE MICHIGAN. SUBSIDIARY Mcf ---------- --- Consumers Energy Total 0 CMS MS&T Total 69,256,959 -------------- Total Natural Gas Distributed at Retail 69,256,959 ============== Outside the State of Michigan 39 (C) NUMBER OF MCF OF NATURAL GAS SOLD AT WHOLESALE OUTSIDE MICHIGAN OR AT MICHIGAN'S STATE LINE. SUBSIDIARY Mcf ---------- --- Consumers Energy Total 0 CMS Marketing Total 241,587,480 ----------- Total Natural Gas Sold at Wholesale Outside Michigan or at Michigan's State Line. 241,587,480 =========== (D) NUMBER OF MCF OF NATURAL GAS PURCHASED OUTSIDE MICHIGAN. SUBSIDIARY Mcf ---------- --- Consumers Energy Total 217,316,000 CMS MS&T Total 544,401,547 ----------- Total Natural Gas Purchased Outside of Michigan 761,717,547 =========== 40 4. THE FOLLOWING INFORMATION FOR THE REPORTING PERIOD WITH RESPECT TO CLAIMANT AND EACH INTEREST IT HOLDS DIRECTLY OR INDIRECTLY IN AN EWG OR A FOREIGN UTILITY COMPANY, STATING MONETARY AMOUNTS IN UNITED STATES DOLLARS: (a) Name, location, business address and description of the facilities used by the EWG or foreign utility company for the generation, transmission and distribution of electric energy for sale or for the distribution at retail of natural or manufactured gas; (b) Name of each system company that holds an interest in such EWG or foreign utility company; and description of the interest held; (c) Type and amount of the capital invested, directly or indirectly, by the holding company claiming exemption; any direct or indirect guarantee of the security of the EWG or foreign utility company by the holding company claiming exemption; and any debt or other financial obligation for which there is recourse, directly or indirectly, to the holding company claiming exemption or another system company, other than the EWG or foreign utility company; (d) Capitalization and earnings of the EWG or foreign utility company during the reporting period; and (e) Identify any service, sales or construction contract(s) between the EWG or foreign utility company and a system company, and describe the services to be rendered or goods sold and fees or revenues under such agreement(s). -------------------------------------------------------------------------------- CMS ENERGY'S EWGs AND FUCOs As of December 31, 2002, CMS Energy had interests in 21 EWGs and 11 FUCOs: EXEMPT WHOLESALE GENERATORS: 1. CENTRALES TERMICAS MENDOZA, S.A. ("CTM") (a) Centrales Termicas Mendoza, S.A. Edificio torre Catalinas Plaza Ing. Butty 220, 8th Floor Buenos Aires, Argentina Centrales Termicas Mendoza, S.A. an Argentina company, is an EWG and is the owner of a 540 MW facility in Lujan de Cuyo and a 15 MW generating unit in Cruz de Piedra, both located in Mendoza. (b) CMS Enterprises Company owns 42.7% of CMS International Ventures, L.L.C. which owns 41 100% of CMS Operating, S.A., which owns 100% of Cuyana S.A. de Inversiones. Cuyana S.A. de Inversiones owns 92.6% of CTM. (c) As of December 31, 2002, CMS Generation has invested approximately $76 million in CTM through its subsidiaries CMS Operating S.A. and Cuyana. de Inversiones S.A. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 122,944 Irrevocable Contributions $ 86,948 CTA $ (135,068) Retained Earnings $ 1,400 Total $ 76,224 Net Income (Loss) for the period ended 12/31/02 $ (17,342) (e) As of December 31, 2002, Centrales Termicas Mendoza, S.A., had a Contract of Operation with CMS Operating S.A. This is a consulting contract in connection with the operation and maintenance of the eligible facility. In 2002, total fees earned from the contract were $1,127,195. 2. CENTRALES TERMICAS SAN NICOLAS, S.A. ("CTSN") (a) Centrales Termicas San Nicolas, S.A. Rivadavia S/N 2900 San Nicolas Prov. Buenos Aires, Argentina CTSN, an Argentine company, is an EWG and is owner and operator of a 650 MW power plant located in San Nicolas, Argentina, north of Buenos Aires, Argentina. The five-unit plant can be fueled by coal, petroleum coke, oil or natural gas. CMS Generation Co. holds a 0.016% indirect ownership interest in CTSN. (b) CMS Generation Company has .1% interest in CMS Generation San Nicolas Company, which has a .1% interest in Inversora San Nicolas, S.A, which owns 88% interest in CTSN. The remaining 12% interest is held by the Argentine government on behalf of the facility's employees. See Exhibit B. On July 7, 1995, AES Argentina, Inc. purchased a 99.9% ownership interest in CMS Generation San Nicolas Company, represented by 9,990 newly issued shares, leaving CMS Generation Co. with a 0.016% indirect ownership interest in CTSN. (c) As of December 31, 2002, CMS Generation San Nicolas Company had invested approximately $4.2 million of equity in CTSN. CMS Energy has been released from all guarantees related to CTSN. 42 (d) Capitalization at 12/31/02 Bank Loans (000s) Long Term Debt (Partners Loans) $0.00 Shareholder's Equity $0.00 Total Capitalization $0.00 Net Income (Loss) for the period ended 12/31/02 $0.00 As stated in Claimant's Form U-3A-2 filed February 29, 1996, due to the nominal interest (.016%) of CTSN indirectly owned by CMS Generation Co., capitalization and earnings information of CTSN continues to be unavailable. (e) N/A 3. CMS DISTRIBUTED POWER, L.L.C. (a) CMS Distributed Power, L.L.C. ("CDP") Fairlane Plaza South 330 Town Center Drive, Suite 300 Dearborn, Michigan 48126 CDP, a Michigan limited liability company, is an EWG and owns a 16.6 MW generator facility located in Zilwaukee, Michigan. (b) CMS Enterprises Company owns 100% of CDP. (c) As of December 31, 2002 CMS Enterprises Company has invested approximately $7.7 million of capital in CDP. (d) Capitalization at 12/31/02 Bank Loans (000s) Long Term Debt (Partners Loans) $ 0 Shareholder's Equity $5,086 Total Capitalization $5,086 Net Income (Loss) for the period ended 12/31/02 $5,934 $ (847) (e) During the year 2002, CDP had no power purchase agreements. 43 4. CMS ENSENADA S.A. ("ENSENADA") (a) CMS Ensenada S.A. Edificio Torre Catalinas Plaza Ing. Butty 220 8th Floor (1101) Buenos Aires, Argentina Ensenada, an Argentine company, is an EWG and is the owner of a 128 MW natural gas-fired power plant, located on the grounds of YPF S.A.'s La Plata oil refinery, located in the province of Buenos Aires, Argentina. (b) CMS Operating S.A. owns 100% of CMS Ensenada S.A. See Exhibit B. (c) As of December 31, 2002, CMS Operating S.A. had invested approximately $39.13 million of equity in Ensenada. (d) Capitalization at 12/31/02 (000) Shareholder's Equity $ 12 CTA $(52,105) Irrevocable Contribution $ 39,118 OPIC Loan (LT)s $ 45,652 Retained Earnings $ (5,196) Total Capitalization $ 27,481 Net Income (Loss) for the period ended 12/31/02 $ (8,139) (e) As of December 31, 2002, CMS Ensenada S.A. maintains a 7 year Operating and Maintenance Agreement with CMS Operating S.A. to operate and maintain the La Plata cogeneration plant. This agreement took effect in 1997. In 2002, total fees earned were $500,000. 5. CMS (INDIA) OPERATIONS & MAINTENANCE COMPANY PRIVATE LIMITED (CMS (INDIA)) (a) CMS (India) Operations and Maintenance Company Private Limited F-40 N.D.S.E. Part 1 New Delhi - 110 149 India (b) CMS (India) O & M Company Private Limited, an Indian company, is the operator of a 250MW lignite-fired power station located in Neyveli, Tamil Nadu, India. The plant is a 50%-50% joint venture between CMS Generation Neyveli Ltd and ABB Power Investment (India) B.V. The plant achieved commercial operation on December 15, 2002. (c) CMS International Operating Company owns 100% of CMS (India) O & M Company Private Limited. As of December 31, 2002, CMS International Company has invested approximately $55,000 of equity in CMS (India) O & M Company Private Limited. 44 (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 187 (e) As of December 31, 2002 CMS (India) O & M Private Ltd has an operating maintenance agreement with ST-CMS, effective November 15, 1999. In 2002 $661,129 was earned as fees. 6. CMS GENERATION MICHIGAN POWER LLC (a) CMS Generation Michigan Power LLC Fairlane Plaza South 330 Town Center Drive Dearborn, Michigan 48126 CMS Generation Michigan Power LLC, a United States company, is an EWG and owns a 68 MW natural gas-fired peaking facility located in Comstock, Michigan and a 132 MW natural gas-fired peaking facility located in Gaylord, Michigan. (b) CMS Generation Co. owns 100% of CMS Generation Michigan Power LLC. See Exhibit B. (c) As of December 31, 2002, CMS Generation Co. had invested approximately $9 million of equity in CMS Generation Michigan Power LLC. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 8,740 Net Income (Loss) for the period ended 12/31/02 $ (63,565) (e) As of December 31, 2002, CMS Generation Michigan Power, LLC had an Operating and Maintenance Agreement with CMS Generation Co. In 2002, the total fees earned from the agreement were $209,982. 7. CMS GENERATION OPERATING COMPANY (a) CMS Generation Operating Company Fairlane Plaza South 330 Town Center Drive Dearborn, Michigan 48126 CMS Generation Operating Company, a United States company, is an EWG and is the operator of a 68 MW natural gas-fired peaking facility located in Comstock, Michigan and a 132 MW natural gas-fired peaking facility located in Gaylord, Michigan. (b) CMS Generation Co. owns 100% of CMS Generation Operating Co. See Exhibit B. 45 (c) As of December 31, 2002, CMS Generation Co. had invested approximately $1.7 million in CMS Generation Operating Company. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 1,703 Net Income (Loss) for the period ended 12/31/02 $ 717 (e) N/A 8. CMS INTERNATIONAL OPERATING COMPANY (a) CMS International Operating Company C/O Maples and Calder Ugland House P.O. Box 309, South Church Street George Town, Cayman Islands, British West Indies CMS International Operating Company, a Cayman Islands company, is an EWG and is the operator of a 220 MW combined cycle thermal power plant under construction located at the Takoradi Power Plant Complex near Takoradi at Aboadze in the Western Region of the Republic of Ghana. (b) CMS Generation Co. owns 100% of CMS International Operating Company. See Exhibit B. (c) As of December 31, 2002, CMS Generation Co. had invested approximately $2.3 million in CMS International Operating Company. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 17,317 Cumulative Translation Adjustment $ (545) Net Income (Loss) for the period ended 12/31/02 $ 4,649 (e) NA 9. CMS MOROCCO OPERATING CO., SCA ("CMS MOROCCO") (a) CMS Morocco Operating Company SCA BP 99 Sidi Bouzid El Jadida Morocco CMS Morocco, a Moroccan company, is an EWG that operates two 330 MW electric generating plants and two additional 348 MW electric generating plants at the port of Jorf Lasfar on the Atlantic coast of Morocco. 46 (b) Jorf Lasfar Aktiebolag, CMS Generation Investment Company I, CMS International Operating Company, and CMS Generation Jorf Lasfar III Limited Duration Company own 99.7%, 0.1%, 0.1%, and 0.1%, respectively, of CMS Morocco. See Exhibit B. (c) As of December 31, 2002, Jorf Lasfar Aktiebolag, CMS Generation Investment Company I, CMS International Operating Company, and CMS Generation Jorf Lasfar III Limited Duration Company, had invested approximately $2.3 million of equity in CMS Morocco. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 17,317 Net Income (Loss) for the period ended 12/31/02 $ 4,649 (e) N/A 10. DEARBORN GENERATION OPERATING, L.L.C. ("DEARBORN GENERATION OPERATING") (a) Dearborn Generation Operating Fairlane Plaza South 330 Town Center, Suite 1100 Dearborn, Michigan 48126 Dearborn Generation Operating, a United States company, is an EWG and is the operator of a 155 MW natural gas-fired facility and an approximately 550 MW natural gas-fired facility under construction located in Dearborn, Michigan. (b) CMS Generation Co. owns 100% of Dearborn Generation Operating. See Exhibit B. (c) As of December 31, 2002, CMS Generation Co. had invested $3.5 million in Dearborn Generation Operating. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 4,756 Net Income (Loss) for the period ended 12/31/02 $ (642) (e) As of December 31, 2002, Dearborn Generation Operating had an operating and maintenance agreement with Dearborn Industrial Generation. In 2002 the total operating and management fees were $594,660. 47 11. DEARBORN INDUSTRIAL GENERATION, L.L.C. ("DEARBORN INDUSTRIAL GENERATION") (a) Dearborn Industrial Generation, L.L.C. Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 Dearborn Industrial Generation, a United States company, is an EWG and is the owner of a 155 MW natural gas-fired facility and an approximately 550 MW natural gas-fired facility under construction located in Dearborn, Michigan. (b) Dearborn Industrial Energy L.L.C. owns 100% of Dearborn Industrial Generation. See Exhibit B. (c) As of December 31, 2002, CMS Generation Co. had invested $562 million in Dearborn Industrial Generation. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 83,758 Net Income (Loss) for the period ended 12/31/02 $(437,516) (e) N/A 12. EXETER ENERGY LIMITED PARTNERSHIP (a) Exeter Energy Limited Partnership Fairlane Plaza South 330 Town Center Drive, Suite 1100 Dearborn, Michigan 48126 Exeter Energy Limited Partnership, a United States company, is an EWG and owns a 26 MW waste tires-fired facility located in Sterling, Connecticut. (b) CMS Generation Co., Exeter Management Company and Oxford/CMS Development L.P. own 50%, 2% and 48%, respectively, of Exeter Energy Limited Partnership. See Exhibit B. (c) As of December 31, 2002, CMS Generation Co. has invested approximately $15 Million of equity in Exeter Energy Limited Partnership. (d) Capitalization at 12/31/02 (000s) Partners' Capital $ 18,278 Net Income (Loss) for the period ended 12/31/02 $ 242 48 (e) As of December 31, 2002, Exeter Energy Limited Partnership had an Operating and Maintenance Agreement with CMS Generation Co. In 2002, the total fees earned from the agreement were $0. 13. GVK INDUSTRIES LIMITED ("GVK") (a) GVK Industries Limited Road No. 1 Banjara Hills, Hyderabad India GVK, an Indian company, is an EWG and is owner of a 235 MW electric generating plant located in Jegurupadu, Andra Pradesh, India. (b) Jegurupadu CMS Generation Company Limited, owns 23.75% of GVK. See Exhibit B. (c) As of December 31, 2002, Jegurupadu CMS Generation Company Limited had invested $33.6 million of equity in GVK Industries, directly and indirectly through Classic Investment I and Classic Investment II. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $112,721 LT Liabilities $ 70,384 Net Income (Loss) for the period ended 12/31/02 $ 8,233 (e) As of December 31, 2002, GVK Industries had a restated 10 year Operation and Maintenance Agreement with Jegurupadu Operating, which became effective on the commercial operation date of the steam turbine unit. In 2002, total fees earned from the agreement were $214,977. 14. HIDROELECTRICA EL CHOCON, S.A. ("HIDROELECTRICA") (a) Hidroelectrica El Chocon, S.A. Avenida Espana 3301 Capital Federal, Argentina Hidroelectrica, an Argentine company, is an EWG and holds a thirty-year concession to operate two hydroelectric power plants located 26 kilometers apart on the Limay River in Western Argentina. These plants have a total generating capacity of 1,320 MW. (b) CMS Generation S.R.L. owns 2.48% of Hidroelectrica. Hidroinvest, S.A. owns 59% of Hidroelectrica. CMS Generation Holdings Company owns 2.48% of Hidroelectrica. See Exhibit B. 49 (c) As of December 31, 2002, CMS Generation, S.R.L. has invested approximately $56MM of equity in Hidroelectrica El Chocon. CMS Generation, SRL' net investment in Hidroelectrica El Chocon, S.A. was written down to $0 due to the economic conditions in Argentina which resulted in a negative Currency Translation Adjustment. (d) Capitalization at 12/31/02 (000s) Bank Loans $ 140,000 Shareholder's Equity $ 269,002 Cumulative Translation Adjustment $(256,968) Total Capitalization $ 152,034 Net Income (Loss) for the period ended 12/31/02 $(107,410) (e) N/A 15. JAMAICA PRIVATE POWER COMPANY LIMITED ("JAMAICA PRIVATE POWER") (a) Jamaica Private Power Company Limited 100 Windward Road, Kingston 2, Jamaica, W.I. Jamaica Private Power, a Jamaican company, is an EWG and is the owner of a 65 MW electric generating facility in Rockfort, Kingston, Jamaica. (b) HCE-Rockfort Diesel owns 42.3 % of Jamaica Private Power. See Exhibit B. (c) As of December 31, 2002 HCE Rockfort Diesel had invested approximately $26.8 million in Jamaica Private Power. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $56,384 Long-Term Debt $60,394 Net Income (Loss) for the period ended 12/31/02 $12,264 (e) As of December 31, 2002, Jamaica Private Power had an operating agreement with Private Power. In 2002, total fees earned from the agreement were $289,879 and an operating bonus of $455,324 was paid. 16. JEGURUPADU OPERATING AND MAINTENANCE COMPANY ("JEGURUPADU OPERATING") (a) Jegurupadu Operating and Maintenance Company F-40, N.D.S.E., Part I New Delhi 110 149 India 50 Jegurupadu Operating, a Mauritius company, is an EWG and is the operator of a 235 MW electric generating plant located in Jegurupadu, Andra Pradesh, India. The plant is owned by GVK Industries Limited. (b) Jegurupadu O&M Company Mauritius, owns 60% of Jegurupadu Operating. See Exhibit B. (c) As of December 31, 2002, Jegurupadu O&M Company had invested approximately $4.1 million of equity in Jegurupadu Operating Maintenance Company, India. (d) Capitalization at 12/31/02 (000s) Shareholders' Equity $ 627 Net Income (Loss) for the period ended 12/31/02 $ 887 (e) As of December 31, 2002, GVK Industries, had a restated 10 year Operation and Maintenance Agreement with Jegurupadu Operating, which became effective on the commercial operation date of the steam turbine unit. In 2002, total fees earned from the agreement were $214,977. 17. JORF LASFAR ENERGY COMPANY SCA ("JORF LASFAR") (a) Jorf Lasfar Energy Company SCA BP 99 Sidi Bouzid El Jadida Morocco Jorf Lasfar, a Moroccan company, is an EWG that operates through a subcontractor, CMS Morocco Operating Company SCA, four 330 MW electric generating plants located at the port of Jorf Lasfar on the Atlantic coast of Morocco. (b) Jorf Lasfar Energiaktiebolag, Jorf Lasfar Power Energy Aktiebolag, and Jorf Lasfar Handelsbolag HB, own 25%, 23% and 2%, respectively, of Jorf Lasfar. See Exhibit B (c) As of December 31, 2002, CMS Investment Company IV had invested approximately $241 million of equity in Jorf Lasfar. (d) Capitalization at 11/30/02 (000s) Shareholder's Equity $474,794 Long Term Loans $561,796 Net Income (Loss) for the period ended 11/30/02 $124,011 (e) As of December 31, 2002, Jorf Lasfar had an Operating and Maintenance Agreement with CMS Morocco, which became effective September 4, 1997. In 2002, total fees earned under the agreement were $2,699,524. 51 18. CMS PANHANDLE LAKE CHARLES GENERATION COMPANY, LLC (a) CMS Panhandle Lake Charles Generation Company, LLC 5444 Westheimer Road Houston, Texas 77056 CMS Panhandle Lake Charles Generation Company, LLC, a Delaware limited liability company, is an EWG and is the owner of a 50% undivided interest in an electric generating facility with a nominal capacity of 21 MW (15 MW of which is available through the currently operable generator) located near Lake Charles, Louisiana. The facility is operated by Trunkline LNG Company, LLC. (b) CMS Panhandle Holdings, LLC owns 100% of CMS Panhandle Lake Charles Generation Company, LLC. See Exhibit B. (c) As of December 31, 2002, CMS Panhandle Holdings, LLC had invested approximately $3 million of equity in CMS Panhandle Lake Charles Generation Company, LLC. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 3,464 Net Income (Loss) for the period ended 12/31/02 $ (108) (e) N/A 19. PRIVATE POWER OPERATORS LIMITED ("PRIVATE POWER") (a) Private Power Operators Limited 100 Windward Road Kingston 2, Jamaica, W.I. Private Power, a Jamaican company, is an EWG and is the operator of a 65 MW electric generating facility in Rockfort, Kingston, Jamaica. (b) HCO-Jamaica, Inc. owns 100% of Private Power. See Exhibit B. (c) As of December 31, 2002, HCO Jamaica, Inc. invested approximately $10,000 of equity in Private Power. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 10 Net Income (Loss) for the period ended 12/31/02 $ (0) (e) N/A. 52 20. ST-CMS ELECTRIC COMPANY PVT. LTD. ("ST-CMS") (a) ST-CMS Electric Company Private Ltd. F-40 N.D.S.E. Part - I New Delhi - 110 149 India (b) The project is a 250 MW lignite-fired power station located in Neyveli, Tamil Nedu, India. The project is a 50%-50% joint venture between CMS Generation Neyveli Ltd. and ABB Power Investment (India) B.V. The plant achieved commercial operation on December 15, 2002. (c) As of December 31, 2002, CMS Generation Neyveli Limited had invested approximately $47 million of equity in ST-CMS. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 86,760 Long-Term Loans $209,966 (e) As of December 31, 2002 CMS (India) O & M Private Limited had an operating & maintenance agreement with ST-CMS, effective November 15, 1999. In 2002, $661,129 was earned in fees. 21. TAKORADI INTERNATIONAL COMPANY (a) Takoradi International Company c/o Maples and Calder Ugland House P.O. Box 309, South Church Street George Town, Cayman Islands, British West Indies Takoradi International Company, a Cayman Island company, is an EWG and is the 90% owner of a 220 MW combined cycle thermal power plant located at the Takoradi Power Plant Complex near Takoradi at Aboadze in the Western Region of the Republic of Ghana. (b) CMS Takoradi Investment Company II owns 90% of Takoradi International Company. See Exhibit B. (c) As of December 31, 2002, CMS Generation Investment Company VI had invested approximately $113 million in Takoradi International Company. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 104,984 Net Income (Loss) for the period ended 12/31/02 $ 14,301 (e) As of December 31, 2002, there were two operating and management fee agreements; (i) 53 between CMS Generation Co. and Takoradi International Company and (ii) between CMS Generation Co. and Volta River Authority. In 2002, total operating and management fees earned were $856,457. FOREIGN UTILITY COMPANIES 1. CMS GENERATION HORIZON ENERGY HOLDINGS LIMITED ("CMSG") (a) CMS Generation Horizon Energy Holdings Limited P.O. Box 309 Ugland House, South Church Street Grand Cayman, Cayman Islands, British West Indies CMSG, a Cayman Islands company, is a foreign utility company and is part-owner and operator of a 2,000 MW power station an associated lignite mine located at Loy Yang, Victoria, Australia. (b) CMS Generation Loy Yang Holdings 2 Ltd., a wholly owned subsidiary of CMS Generation Investment Company I., owns 100% of CMSG Horizon Energy Holdings Ltd. See Exhibit B. (c) As of December 31, 2002, CMS Generation Investment Company I had advanced approximately $157 million to CMSG Horizon Energy Holdings Ltd. (d) Capitalization at 12/31/02 (000s) Shareholders Equity (158,238) Cumulative Translation $ (83,680) Intercompany Note Payable $ 156,968 Net Income (Loss) for the period ended 12/31/02 $ (25) (e) As of December 31, 2002, CMSG had an Industry Expertise Fee agreement with Loy Yang Power Partners. In 2002, no fees were earned from the agreement. 2. CMS OPERATING S.A. (a) CMS Operating S.A. Edificio torre Catalinas Plaza Ing. Butty 220, 8th Floor Buenos Aires, Argentina CMS Operating S.A., an Argentina company, has ownership interest of 100% in and is the operator of Ensenada, an EWG. As of December 31, 2002, Centrales Termicas Mendoza S.A., located in Mendoza Argentina, has an operation and maintenance contract, and a consulting contract with CMS Operating S.A. Refer to EWG section item 1, part (e). 54 (b) CMS International Ventures, LLC owns 100% of CMS Operating S.A. (c) As of December 31, 2002, CMS International Venture LLC had invested approximately $84 million of equity in CMS Operating S.A. (d) Capitalization at 12/31/02 (000s) Common Stock $ 35,785 Irrevocable Contributions $ 230,747 Retained Earnings $ (3,700) CTA $(178,923) Total $ 83,909 Net Income (Loss) for the period ended 12/31/02 $ (18,630) (e) N/A 3. COMPANHIA JAGUARI DE ENERGIA ("JAGUARI") (a) Companhia Jaguari De Energia Vigato 1.620, Street Jaguariuna - SP - Brazil Zip Code 13820-000 Jaguari, a Brazilian company, is a foreign utility company that owns and operates an electricity distribution concession located in the state of Sao Paulo. Jaguari is a non-traded utility company controlled by CPEE. Jaguari serves approximately 25,000 customers. (b) Jaguari is 100% owned by Sul Paulista. See CPEE below and Exhibit B. (c) As of December 31, 2002, Sul Paulista has invested $22 million in Jaguari. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 21,981 Net Income (Loss) for the period ended 12/31/02 $ 5,889 (e) N/A 55 4. COMPANHIA LUZ E FORCA DE MOCOCA ("MOCOCA") (a) Companhia Luz E Forda De Mococa Vigato 1.620, Street - 1st Floor - room 3 Jaguariuna - SP- Brazil Zip Code 13820-000 Mococa, a Brazilian company, is a foreign utility company that owns and operates an electricity distribution concession located in the state of Sao Paulo and the State of Minas Gerais, Brazil. Mococa is a non-traded utility company controlled by CPEE. Mococa serves approximately 34,000 customers. (b) Mococa is 100% owned by Jaguari. See CPEE below and Exhibit B. (c) As of December 31, 2002, Jaguari has invested $6.5 million in Mococa. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 6,476 Net Income (Loss) for the period ended 12/31/02 $ 1,163 (e) N/A 5. COMPANHIA PAULISTA DE ENERGIA ELECTRICA ("CPEE") (a) Companhia Paulista De Energia Electrica Vigato 1.620, Street - 1st Floor - room 1 Jaguariuna - SP -Brazil Zip Code 13820-000 CPEE, a Brazilian company, is a foreign utility company that owns and operates an electricity distribution concession in the state of Sao Paulo, Brazil and also has a controlling interest in 3 other non-traded utility companies which own and operate electricity distribution concessions located in the state of Sao Paulo and in the state of Minas Gerais. CPEE and its controlled companies serve approximately 160,000 customers. CPEE also owns a 7 percent interest in Investco S.A., which owns an 850 MW hydroelectric plant, which started commercial operations in December 2001. (b) CMS Participacoes Ltda. owns 94% of CPEE. See Exhibit B. (c) As of December 31, 2002, CMS Participacoes Ltda. has invested $64 million in CPEE. Capitalization at 12/31/02 (000s) Shareholder's Equity $ 39,017 Net Income (Loss) for the period ended 12/31/02 $ 7,439 56 6. COMPANHIA SUL PAULISTA DE ENERGIA ELECTRICA ("SUL PAULISTA") (a) Companhia Sul Paulista De Energia Vigato 1.620, Street - 1st Floor - room 2 Jaguariuna - SP - Brazil Zip Code 13820-000 Sul Paulista, a Brazilian company, is a foreign utility company that owns and operates an electricity distribution concession located in the state of Sao Paulo. Sul Paulista is a non-traded utility company controlled by CPEE. Sul Paulista serves approximately 58,000 customers. (b) Sul Paulista is 88.63% owned by CPEE. See CPEE above and Exhibit B. (c) As of December 31, 2002, CPEE has invested $33 million in Paulista. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 37,581 Net Income (Loss) for the period ended 12/31/02 $ 7,510 (e) N/A 7. EMIRATES CMS POWER COMPANY (a) P.O. Box 47688 United Arab Emirates Al Mansoor Tower, 7th Floor, Suite 701 Abu Dhabi Emirates CMS Power Company, an U.A.E. Abu Dhabi Emirate, is a foreign utility company that owns a generation and desalination facility in Taweelah, Abu Dhabi. (b) CMS Generation Taweelah Limited owns 40% of Emirates CMS Power Company. (c) As of November 30, 2002, CMS Generation Taweelah Limited had invested $57 million in equity of Emirates CMS Power Company. 57 (d) Capitalization at 11/30/02 (000s) Term Loan $ 0 Shareholder Loan $ 74,114 Retained Earnings $ 58,897 Dividends $(32,233) MTW $(81,234) Shareholder's Equity $112,599 Total Capitalization $132,143 Net Income (Loss) for the period ended 11/30/02 $ 36,030 (e) N/A 8. HORIZON ENERGY HOLDINGS LTD. ("HORIZON ENERGY") (a) Horizon Energy Holdings Limited P.O. Box 309 Ugland House, South Church Street Grand Cayman, Cayman Islands, British West Indies Horizon Energy, a Cayman Islands company, is a foreign utility company and is part-owner and operator of a 2,000 MW power station and associated lignite mine located at Loy Yang, Victoria, Australia. (b) CMS Generation Loy Yang Holdings 1 Ltd., a wholly owned subsidiary of CMS Generation Investment Company I, owns 100% of Horizon Energy. See Exhibit B. (c) As of December 31, 2002, CMS Generation Investment Company I had advanced approximately $157 million in Horizon Energy Holdings Ltd. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $(158,238) Cumulative Translation $ (83,680) Intercompany Note Payable $ 156,968 Net Income (Loss) for the period ended 12/31/02 $ 25 (e) N/A. 58 9. LOY YANG POWER PARTNERS (a) Bartons Line Taralgon, Victoria, Australia 3844 Loy Yang Power Partners is a foreign utility company and is the operator of a 2,000 MW power station and associated lignite mine located at Loy Yang, Victoria, Australia. (b) CMS Generation Horizon Energy Holdings Limited ("CMSG") owns 25% and Horizon Energy Holdings, Ltd. owns 24.63% of Loy Yang Power Partners. See Exhibit B. (c) As of December 31, 2002, CMS Generation Horizon Energy Holdings Limited had invested approximately $320 million of equity in Loy Yang Power Partnership. (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 716,973 Long-Term Loans $1,537,332 Net Income (Loss) for the period ended 12/31/02 $ 21,537 (e) As of December 31, 2002, CMS Generation Horizon Energy Holdings Limited had an Operating and Maintenance Agreement with Loy Yang Power Partnership, effective September 4, 1997. In 2002, no fees earned from the agreement. 10. SISTEMA ELECTRICO DEL ESTADO NUEVA ESPARTA C.A. ("SENECA") (a) Sistema Electrico del Estado Nueva Esparta C.A. San Lorenzo Pampatar, Nueva Esparta (6312) Venezuela SENECA, a Venezuelan company, is a foreign utility company and is the owner of 200 MW of diesel-fired power generation units located on Margarita Island, Venezuela. SENECA also owns and operates an electric distribution system located on Margarita Island, Venezuela, serving approximately 104,000 customers. (b) CMS Electric and Gas Company owns 100% of ENELMAR. ENELMAR owns 29.50% of SENECA. CMS Electric and Gas Company owns 100% of CMS Venezuela. CMS Venezuela owns 57.86% of SENECA. See Exhibit B. (c) As of December 31, 2002, ENELMAR had invested $22.2 million in SENECA. As of December 31, 2002, CMS Venezuela had invested $52.3 million in SENECA. 59 (d) Capitalization at 12/31/02 (000s) Shareholder's Equity $ 165,917 Net Income (Loss) for the period ended 12/31/02 $ 553 (e) N/A 11. TAWEELAH A2 OPERATING COMPANY ("TAWEELAH") (a) c/o CMS Generation Co. 330 Town Center Drive Suite 1000 Dearborn, Michigan 48126 Taweelah is a foreign utility company that operates a 710.3 MW generation and desalination facility in Taweelah, Abu Dhabi. (b) CMS Energy owns an interest in Taweelah through intervening subsidiaries CMS Enterprises Company and CMS Generation Co. (c) As of December 31, 2002, CMS Generation Co. had invested approximately $1,352 thousand of equity in Taweelah Operating Company. (d) Capitalization at 12/31/02 (000s) Shareholder's Capital $ 551 Retained Earnings $ 801 Shareholder's Equity $ 1,352 Net Income (Loss) for the period ended 12/31/02 $ 574 (e) As of December 31, 2002, there was an operating and management agreement between Taweelah and Emirate CMS Power Company of which total fees earned were $1,149,291. 60 The above-named Claimant has caused this statement to be duly executed on its behalf by its authorized officer on this 15th day of April, 2003. CMS ENERGY CORPORATION A Michigan corporation [CORPORATE SEAL] By: /s/ Thomas J. Webb -------------------- Thomas J. Webb Executive Vice President and Chief Financial Officer ATTEST: /s/ Robert C. Shrosbree ------------------------ Robert C. Shrosbree Senior Corporate Counsel Name, title, and address of officer to whom notices and correspondence concerning this Statement should be addressed: S. K. Smith, Jr. Vice Chairman of the Board and General Counsel Fairlane Plaza South Suite 1100 330 Town Center Drive Dearborn, Michigan 48126 April 15, 2003 EXHIBIT A A consolidating statement of income and surplus of CMS Energy and its subsidiary companies for the last calendar year, together with a consolidating balance sheet of CMS Energy and its subsidiary companies as of the close of such calendar year is attached. CMS ENERGY CORPORATION Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions, except Per Share Amounts) Consumers CMS CMS Energy Enterprises Inter- Energy CMS Energy Company Company Company Corp. Corp. (1) Consol. Consol. Eliminations Consol. Operating Revenue Electric utility $ -- $ 2,648 $ -- $ (4) $ 2,644 Gas utility -- 1,519 -- -- 1,519 Independent power production -- 53 319 -- 372 Natural gas transmission -- -- 50 -- 50 Marketing, services and trading -- -- 4,222 (146) 4,076 Other -- 2 (4) 28 26 --------- --------- --------- --------- --------- Total operating revenue -- 4,222 4,587 (122) 8,687 --------- --------- --------- --------- --------- Operating Expenses Fuel for electric generation -- 320 21 -- 341 Purchased power-related parties -- 546 3 (3) 546 Purchased and interchange power -- 314 2,331 3 2,648 Cost of gas sold -- 962 1,928 (143) 2,747 Other operation expense (14) 660 854 (7) 1,493 Maintenance -- 190 21 -- 211 Depreciation and amortization 2 348 53 -- 403 General taxes -- 193 6 -- 199 --------- --------- --------- --------- --------- Total operating expenses (12) 3,533 5,217 (150) 8,588 --------- --------- --------- --------- --------- Operating Income (Loss) 12 689 (630) 28 99 --------- --------- --------- --------- --------- Other Income (Deductions) Dividends and interest from affiliates 50 3 20 (73) -- Accretion expense (25) (6) -- -- (31) Gain (loss) on asset sales 1 38 (2) -- 37 Other, net (326) (13) (4) 339 (4) --------- --------- --------- --------- --------- Total other income (deductions) (300) 22 14 266 2 --------- --------- --------- --------- --------- Fixed Charges Interest on long-term debt 237 153 11 -- 401 Other interest 62 27 9 (67) 31 Capitalized interest 1 (12) (5) -- (16) Preferred dividends -- 2 -- -- 2 Preferred securities distributions 42 44 -- -- 86 --------- --------- --------- --------- --------- Net fixed charges 342 214 15 (67) 504 --------- --------- --------- --------- --------- Income (Loss) from Continuing Operations before Income Taxes and Minority Interests (630) 497 (631) 361 (403) Income Taxes (Benefits) (47) 180 (129) 9 13 Minority Interests -- -- -- -- -- --------- --------- --------- --------- --------- Income (Loss) from Continuing Operations (583) 317 (502) 352 (416) Discontinued Operations (71) -- (151) -- (222) Cumulative Effect of Accounting Change -- 18 -- -- 18 Consolidated Net Income (Loss) before Common Stock Dividends (654) 335 (653) 352 (620) Dividends on Common Stock 156 231 418 (656) 149 --------- --------- --------- --------- --------- A-1 Consolidated Net Income (Loss) after Common Stock Dividends $ (810) $ 104 $ (1,071) $ 1,008 $ (769) ========= ========= ========= ========= ========= Average Number of CMS Energy Common Shares Outstanding 139,047 Basic Earnings per CMS Energy Average Common Share $ (4.46) Diluted Earnings per CMS Energy Average Common Share $ (4.46) (1) Represents CMS Energy Corporation, CMS Energy Trust I, CMS Energy Trust II and CMS Energy Trust III consolidated with Consumers Energy Company and CMS Enterprises Company included on the equity method of accounting. A-2 CONSUMERS ENERGY COMPANY Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) Michigan CMS Consumers Consumers Gas Consumers Midland CMS Inter- Energy Energy Storage Funding Holdings Midland Company Company Company (2) Company LLC Company Inc. Eliminations Consol. Operating Revenue Electric $ 2,688 $ -- $ -- $ -- $ -- $ (40) $ 2,648 Gas 1,517 20 -- -- -- (18) 1,519 Other 9 -- 1 16 37 (8) 55 ------- ------- ------- ------- ------- ------- ------- Total operating revenue 4,214 20 1 16 37 (66) 4,222 ------- ------- ------- ------- ------- ------- ------- Operating Expenses Fuel for electric generation 320 -- -- -- -- -- 320 Purchased power-related parties 569 -- -- -- -- (23) 546 Purchased and interchange power 314 -- -- -- -- -- 314 Cost of gas sold 980 -- -- -- -- (18) 962 Other operation expense 675 8 1 -- -- (24) 660 Maintenance 193 2 -- -- -- (5) 190 Depreciation and amortization 345 1 -- -- 2 -- 348 General taxes 191 2 -- -- -- -- 193 ------- ------- ------- ------- ------- ------- ------- Total operating expenses 3,587 13 1 -- 2 (70) 3,533 ------- ------- ------- ------- ------- ------- ------- Operating Income 627 7 -- 16 35 4 689 ------- ------- ------- ------- ------- ------- ------- Other Income (Deductions) Dividends and interest from affiliates 54 -- 23 -- -- (74) 3 Accretion expense (6) -- -- -- -- -- (6) Other, net 90 -- -- -- -- (65) 25 ------- ------- ------- ------- ------- ------- ------- Total other income (deductions) 138 -- 23 -- -- (139) 22 ------- ------- ------- ------- ------- ------- ------- Interest Charges Interest on long-term debt 130 -- 23 -- -- -- 153 Other interest 100 -- -- -- -- (73) 27 Capitalized interest (12) -- -- -- -- -- (12) ------- ------- ------- ------- ------- ------- ------- Net interest charges 218 -- 23 -- -- (73) 168 ------- ------- ------- ------- ------- ------- ------- Income (Loss) before Income Taxes 547 7 -- 16 35 (62) 543 Income Taxes 161 3 -- 4 12 -- 180 ------- ------- ------- ------- ------- ------- ------- Net Income (Loss) before Accounting Change 386 4 -- 12 23 (62) 363 Cumulative Effect of Accounting Change -- -- -- -- 18 -- 18 ------- ------- ------- ------- ------- ------- ------- Net Income (Loss) 386 4 -- 12 41 (62) 381 Preferred Stock Dividends 2 -- -- -- -- -- 2 Preferred Securities Distribution 44 -- -- -- -- -- 44 ------- ------- ------- ------- ------- ------- ------- Net Income (Loss) Available to Common Stockholder 340 4 -- 12 41 (62) 335 Dividends on Common Stock 231 -- -- -- -- -- 231 ------- ------- ------- ------- ------- ------- ------- Net Income (Loss) after Common Dividends $ 109 $ 4 $ -- $ 12 $ 41 $ (62) $ 104 ======= ======= ======= ======= ======= ======= ======= (2) Represents Consumers Energy Company, Consumers Power Company Financing I, Consumers Energy Company Financing II, Consumers Energy Company Financing III, Consumers Energy Company Financing IV, Consumers Nuclear Services LLC, Consumers Parnall Holdings LLC, Michigan Electric Transmission Company, ES Services Company, CMS Engineering Company and Consumers EnergyGuard Services, Inc. consolidated with Michigan Gas Storage Company, Consumers Funding LLC, CMS Midland Holdings Company and CMS Midland, Inc. included on the equity method of accounting. A-3 CMS ENTERPRISES COMPANY Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) CMS Oil CMS CMS Gas CMS & Gas Generation CMS CMS CMS Trans. Enterprises Company Company Capital Land MS&T Company Company (3) Consol. Consol. Corp. Company Company Consol. Operating Revenue Independent power production $ -- $ -- $ 337 $ -- $ -- $ -- $ -- Natural gas transmission -- -- -- -- -- -- 54 Marketing, services and trading -- -- -- -- -- 4,374 -- Other (31) -- -- 8 (26) -- -- ------- ------- ------- ------- ------- ------- ------- Total operating revenue (31) -- 337 8 (26) 4,374 54 ------- ------- ------- ------- ------- ------- ------- Operating Expenses Fuel for electric generation -- -- 137 -- -- -- -- Purchased and interchange power -- -- -- -- -- 2,326 -- Cost of gas sold 3 -- -- -- -- 2,035 2 Other operation expense 35 5 649 4 1 72 53 Maintenance -- -- 12 -- -- -- 3 Depreciation and amortization 1 -- 24 -- -- 6 8 General taxes 2 -- 7 -- -- (5) 2 ------- ------- ------- ------- ------- ------- ------- Total operating expenses 41 5 829 4 1 4,434 68 ------- ------- ------- ------- ------- ------- ------- Operating Income (Loss) (72) (5) (492) 4 (27) (60) (14) ------- ------- ------- ------- ------- ------- ------- Other Income (Deductions) Dividends and interest from affiliates 18 -- 1 33 -- -- 12 Gain (loss) on asset sales -- -- (10) -- -- -- 19 Other, net (714) -- (6) 2 -- -- (4) ------- ------- ------- ------- ------- ------- ------- Total other income (deductions) (696) -- (15) 35 -- -- 27 ------- ------- ------- ------- ------- ------- ------- Fixed Charges Interest on long-term debt 4 -- 1 -- -- -- 4 Other interest 14 -- 12 23 1 5 4 Capitalized interest -- -- (5) -- -- -- -- ------- ------- ------- ------- ------- ------- ------- Net fixed charges 18 -- 8 23 1 5 8 ------- ------- ------- ------- ------- ------- ------- Income (Loss) from Continuing Operations before Income Taxes and Minority Interests (786) (5) (515) 16 (28) (65) 5 Income Taxes (Benefits) (77) (2) (142) 6 (10) (23) 36 Minority Interests -- -- 1 -- -- -- -- ------- ------- ------- ------- ------- ------- ------- Income (Loss) from Continuing Operations (709) (3) (374) 10 (18) (42) (31) Discontinued Operations 37 218 -- -- -- (21) (405) ------- ------- ------- ------- ------- ------- ------- Net Income (Loss) $ (672) $ 215 $ (374) $ 10 $ (18) $ (63) $ (436) ======= ======= ======= ======= ======= ======= ======= (Continued on Following Page) A-4 CMS ENTERPRISES COMPANY Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) (Continued from Previous Page) CMS Int'l CMS CMS Vent. Tech Inter- Enterprises LLC Consol. Company Company Consol. (4) Eliminations Consol. Operating Revenue Independent power production $ 52 $ -- $ (70) $ 319 Natural gas transmission 1 -- (5) 50 Marketing, services and trading -- -- (152) 4,222 Other -- 3 42 (4) ------- ------- ------- ------- Total operating revenue 53 3 (185) 4,587 ------- ------- ------- ------- Operating Expenses Fuel for electric generation 21 -- (137) 21 Purchased and interchange power 8 -- -- 2,334 Cost of gas sold 1 -- (113) 1,928 Other operation expense 9 3 23 854 Maintenance 6 -- -- 21 Depreciation and amortization 12 2 -- 53 General taxes -- -- -- 6 ------- ------- ------- ------- Total operating expenses 57 5 (227) 5,217 ------- ------- ------- ------- Operating Income (Loss) (4) (2) 42 (630) ------- ------- ------- ------- Other Income (Deductions) Dividends and interest from affiliates 3 -- (47) 20 Gain (loss) on asset sales (11) -- -- (2) Other, net -- -- 718 (4) ------- ------- ------- ------- Total other income (deductions) (8) -- 671 14 ------- ------- ------- ------- Fixed Charges Interest on long-term debt 2 -- -- 11 Other interest -- -- (50) 9 Capitalized interest -- -- -- (5) ------- ------- ------- ------- Net fixed charges 2 -- (50) 15 ------- ------- ------- ------- Income (Loss) from Continuing Operations before Income Taxes and Minority Interests (14) (2) 763 (631) Income Taxes (Benefits) 13 (1) 71 (129) Minority Interests (1) -- -- -- ------- ------- ------- ------- Income (Loss) from Continuing Operations (26) (1) 692 (502) Discontinued Operations (6) (31) 57 (151) ------- ------- ------- ------- Net Income (Loss) $ (32) $ (32) $ 749 $ (653) ======= ======= ======= ======= (3) Represents CMS Enterprises Company, CMS Resource Development Company, CMS Comercializadora de Energia S.A., CMS Enterprises Holding Company S.A., CMS Energy South America Company, CMS Energy Asia Private Limited, CMS Business Development LLC, CMS Texas LLC and CMS Energy UK Limited consolidated with CMS Oil and Gas Company, CMS Generation Company, CMS Land Company, CMS International Ventures LLC, CMS Marketing, Services and Trading Company, CMS Gas Transmission Company and CMS Capital LLC included on the equity method of accounting. (4) Represents CMS MicroPower Systems LLC, CMS Distributed Power LLC and CMS Enterprises Development LLC. A-5 CMS OIL AND GAS COMPANY Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) CMS CMS CMS O&G CMS O&G O&G Int'l Co. O&G Congo Co. (5) Consol. P/L Co. Ltd. Operating Revenue Oil and gas exploration and production $ -- $ -- $ -- $ -- Other -- -- -- -- ----- ----- ----- ----- Total operating revenue -- -- -- -- ----- ----- ----- ----- Operating Expenses Other operation expense 5 -- -- -- Maintenance -- -- -- -- Depreciation and amortization -- -- -- -- General taxes -- -- -- -- ----- ----- ----- ----- Total operating expenses 5 -- -- -- ----- ----- ----- ----- Operating Income (Loss) (5) -- -- -- ----- ----- ----- ----- Other Income (Deductions) Interest from affiliates -- -- -- -- Gain (loss) on asset sales -- -- -- -- Other, net -- -- -- -- ----- ----- ----- ----- Total other income (deductions) -- -- -- -- ----- ----- ----- ----- Fixed Charges Interest on long-term debt -- -- -- -- Other interest -- -- -- -- Capitalized interest -- -- -- -- ----- ----- ----- ----- Net fixed charges -- -- -- -- ----- ----- ----- ----- Income (Loss) before Income Taxes (5) -- -- -- Income Taxes 2 -- -- -- ----- ----- ----- ----- Income (Loss) from Continuing Operations (3) -- -- -- Discontinued Operations 218 (27) 2 3 ----- ----- ----- ----- Net Income (Loss) $ 215 $ (27) $ 2 $ 3 ===== ===== ===== ===== (Continued on Following Page) A-6 CMS OIL AND GAS COMPANY Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) (Continued from Previous Page) Inter- CMS O&G CMS O&G Company CMS O&G E.G. Ltd Int'l Ltd Eliminations Co. Consol. Operating Revenue Oil and gas exploration and production $ -- $ -- $ -- $ -- Other -- -- -- -- ----- ----- ----- ----- Total operating revenue -- -- -- -- ----- ----- ----- ----- Operating Expenses Other operation expense -- -- -- 5 Maintenance -- -- -- -- Depreciation and amortization -- -- -- -- General taxes -- -- -- -- ----- ----- ----- ----- Total operating expenses -- -- -- 5 ----- ----- ----- ----- Operating Income (Loss) -- -- -- (5) ----- ----- ----- ----- Other Income (Deductions) Interest from affiliates -- -- -- -- Gain (loss) on asset sales -- -- -- -- Other, net -- -- -- -- ----- ----- ----- ----- Total other income (deductions) -- -- -- -- ----- ----- ----- ----- Fixed Charges Interest on long-term debt -- -- -- -- Other interest -- -- -- -- Capitalized interest -- -- -- -- ----- ----- ----- ----- Net fixed charges -- -- -- -- ----- ----- ----- ----- Income (Loss) before Income Taxes -- -- -- (5) Income Taxes -- -- -- 2 ----- ----- ----- ----- Income (Loss) from Continuing Operations -- -- -- (3) Discontinued Operations 2 312 (292) 218 ----- ----- ----- ----- Net Income (Loss) $ 2 $ 312 $(292) $ 215 ===== ===== ===== ===== (5) Represents CMS Oil and Gas Company, CMS Oil and Gas Alba LDC and CMS Oil and Gas E&G LDC consolidated with CMS Oil and Gas International Company included on the equity method of accounting. A-7 CMS OIL AND GAS INTERNATIONAL COMPANY Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) CMS NOMECO CMS O&G CMS O&G Inter- CMS O&G CMS O&G Int'l Congo Int'l Tunisia Cameroon, Company Int'l Int'l Co. (6) Hldgs. Inc. Inc. Ltd. Eliminations Consol. Operating Revenue Oil and gas exploration and production $ -- $ -- $ -- $ -- $ -- $ -- Other -- -- -- -- -- -- ---- ---- ---- ---- ---- ---- Total operating revenue -- -- -- -- -- -- ---- ---- ---- ---- ---- ---- Operating Expenses Other operation expense -- -- -- -- -- -- Maintenance -- -- -- -- -- -- Depreciation and amortization -- -- -- -- -- -- General taxes -- -- -- -- -- -- ---- ---- ---- ---- ---- ---- Total operating expenses -- -- -- -- -- -- ---- ---- ---- ---- ---- ---- Operating Income -- -- -- -- -- -- ---- ---- ---- ---- ---- ---- Other Income (Deductions) -- -- -- -- -- -- ---- ---- ---- ---- ---- ---- Fixed Charges Interest on long-term debt -- -- -- -- -- -- Other interest -- -- -- -- -- -- ---- ---- ---- ---- ---- ---- Net fixed charges -- -- -- -- -- -- ---- ---- ---- ---- ---- ---- Income before Income Taxes -- -- -- -- -- -- Income Taxes -- -- -- -- -- -- ---- ---- ---- ---- ---- ---- Income from Continuing Operations -- -- -- -- -- -- Discontinued Operations (27) (16) (5) (3) 24 (27) ---- ---- ---- ---- ---- ---- Net Income (Loss) $(27) $(16) $ (5) $ (3) $ 24 $(27) ==== ==== ==== ==== ==== ==== (6) Represents CMS Oil and Gas International Company, CMS Oil and Gas UK Ltd. and CMS Oil and Gas Eritrea Ltd. consolidated. A-8 CMS GENERATION COMPANY Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) CMS CMSG CMSG Dearborn CMSG Generation Honey CMSG Grayling Industrial Investment Company Lake Filer City Holdings Generation Company I (7) Company Inc. Company LLC Consol. Operating Revenue Independent power production $ 1 $ 2 $ 4 $ 2 $ 90 $ 206 Other -- -- -- -- -- -- ----- ----- ------ ------ ----- ----- Total operating revenue 1 2 4 2 90 206 ----- ----- ------ ------ ----- ----- Operating Expenses Fuel for electric generation -- -- -- -- 55 82 Purchased and interchange power -- -- -- -- -- -- Other operation expense 53 -- -- -- 492 11 Maintenance -- -- -- -- 9 3 Depreciation and amortization 5 -- -- -- 14 -- General taxes 1 -- -- -- 4 -- ----- ----- ------ ------ ----- ----- Total operating expenses 59 -- -- -- 574 96 ----- ----- ------ ------ ----- ----- Operating Income (Loss) (58) 2 4 2 (484) 110 ----- ----- ------ ------ ----- ----- Other Income (Deductions) Interest from affiliates 3 -- -- -- -- -- Gain (loss) on asset sales (4) -- -- -- -- (7) Other, net (466) -- -- -- -- 3 ----- ----- ------ ------ ----- ----- Total other income (deductions) (467) -- -- -- -- (4) ----- ----- ------ ------ ----- ----- Fixed Charges Interest on long-term debt -- -- -- -- -- -- Other interest 2 -- -- -- 10 2 Capitalized interest (5) -- -- -- -- -- ----- ----- ------ ------ ----- ----- Net fixed charges (3) -- -- -- 10 2 ----- ----- ------ ------ ----- ----- Income (Loss) before Income Taxes and Minority Interests (522) 2 4 2 (494) 104 Income Taxes (Benefits) (148) (1) 2 1 -- 9 Minority Interests -- -- -- -- -- 1 ----- ----- ------ ------ ----- ----- Net Income (Loss) $(374) $ 3 $ 2 $ 1 $(494) $ 94 ===== ===== ====== ====== ===== ===== (Continued on Following Page) A-9 CMS GENERATION COMPANY Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) (Continued from Previous Page) Taweelah CMSG A2 CMSG HYDRA-CO CMSG Exeter Operating Operating Michigan Enterprises Holding Energy Company Company Power LLC Inc. Company LLC Operating Revenue Independent power production $ 1 $ 1 $ 2 $ 11 $ 1 $ 8 Other -- -- -- -- -- -- ---- ---- ---- ---- ---- ---- Total operating revenue 1 1 2 11 1 8 ---- ---- ---- ---- ---- ---- Operating Expenses Fuel for electric generation -- -- -- -- -- -- Purchased and interchange power -- -- -- -- -- -- Other operation expense -- -- 62 25 -- 6 Maintenance -- -- -- -- -- -- Depreciation and amortization -- -- 3 1 -- 1 General taxes -- -- 1 -- -- 1 ---- ---- ---- ---- ---- ---- Total operating expenses -- -- 66 26 -- 8 ---- ---- ---- ---- ---- ---- Operating Income (Loss) 1 1 (64) (15) 1 -- ---- ---- ---- ---- ---- ---- Other Income (Deductions) Interest from affiliates -- -- -- -- -- -- Gain (loss) on asset sales -- -- -- 1 -- -- Other, net -- -- -- -- -- -- ---- ---- ---- ---- ---- ---- Total other income (deductions) -- -- -- 1 -- -- ---- ---- ---- ---- ---- ---- Fixed Charges Interest on long-term debt -- -- -- 1 -- -- Other interest -- -- -- -- -- -- Capitalized interest -- -- -- -- -- -- ---- ---- ---- ---- ---- ---- Net fixed charges -- -- -- 1 -- -- ---- ---- ---- ---- ---- ---- Income (Loss) before Income Taxes and Minority Interests 1 1 (64) (15) 1 -- Income Taxes (Benefits) -- -- -- (8) -- -- Minority Interests -- -- -- -- -- -- ---- ---- ---- ---- ---- ---- Net Income (Loss) $ 1 $ 1 $(64) $ (7) $ 1 $ -- ==== ==== ==== ==== ==== ==== (Continued on Following Page) A-10 CMS GENERATION COMPANY Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) (Continued from Previous Page) CMS CMS Int'l Inter- CMSG Generation Operating Company Company SRL Company Eliminations Consol. Operating Revenue Independent power production $ (2) $ 10 $ -- $ 337 Other -- -- -- -- ----- ----- ----- ----- Total operating revenue (2) 10 -- 337 ----- ----- ----- ----- Operating Expenses Fuel for electric generation -- -- -- 137 Purchased and interchange power -- -- -- -- Other operation expense -- -- -- 649 Maintenance -- -- -- 12 Depreciation and amortization -- -- -- 24 General taxes -- -- -- 7 ----- ----- ----- ----- Total operating expenses -- -- -- 829 ----- ----- ----- ----- Operating Income (Loss) (2) 10 -- (492) ----- ----- ----- ----- Other Income (Deductions) Interest from affiliates -- -- (2) 1 Gain (loss) on asset sales -- -- -- (10) Other, net -- -- 457 (6) ----- ----- ----- ----- Total other income (deductions) -- -- 455 (15) ----- ----- ----- ----- Fixed Charges Interest on long-term debt -- -- -- 1 Other interest -- -- (2) 12 Capitalized interest -- -- -- (5) ----- ----- ----- ----- Net fixed charges -- -- (2) 8 ----- ----- ----- ----- Income (Loss) before Income Taxes and Minority Interests (2) 10 457 (515) Income Taxes (Benefits) -- 3 -- (142) Minority Interests -- -- -- 1 ----- ----- ----- ----- Net Income (Loss) $ (2) $ 7 $ 457 $(374) ===== ===== ===== ===== (7) Represents CMS Generation Company, CMSG Filer City Operating Company, CMSG Grayling Company, CMSG Genesee Company, CMSG Recycling Company, CMSG Lyonsdale Company, CMSG Chateaugay Company, CMSG Altoona Company, Dearborn Generation Operating LLC and CMS Centrales Termicas S.A., consolidated with CMSG Investment Company I included on the equity method of accounting. A-11 CMS GENERATION INVESTMENT COMPANY I Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) CMSG CMSG CMSG CMSG Investment Cebu Investment Investment Co. I (8) LDC Co. IV Co. VI Operating Revenue Independent power production $ 8 $ 1 $ 69 $115 Other -- -- -- -- ---- ---- ---- ---- Total operating revenue 8 1 69 115 ---- ---- ---- ---- Operating Expenses Fuel for electric generation -- -- -- 82 Other operation expense 2 -- -- 9 Maintenance -- -- -- 3 Depreciation and amortization -- -- -- -- General taxes -- -- -- -- ---- ---- ---- ---- Total operating expenses 2 -- -- 94 ---- ---- ---- ---- Operating Income (Loss) 6 1 69 21 ---- ---- ---- ---- Other Income (Deductions) Interest from affiliates -- -- -- 1 Gain (loss) on asset sales (7) -- -- -- Other, net 95 (1) -- 1 ---- ---- ---- ---- Total other income (deductions) 88 (1) -- 2 ---- ---- ---- ---- Fixed Charges Interest on long-term debt -- -- -- -- Other interest -- -- 3 -- Capitalized interest -- -- -- -- ---- ---- ---- ---- Net fixed charges -- -- 3 -- ---- ---- ---- ---- Income (Loss) before Income Taxes and Minority Interests 94 -- 66 23 Income Taxes (Benefits) 1 -- -- 8 Minority Interests -- -- -- 1 ---- ---- ---- ---- Net Income (Loss) $ 93 $ -- $ 66 $ 14 ==== ==== ==== ==== (Continued on Following Page) A-12 CMS GENERATION INVESTMENT COMPANY I Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) (Continued from Previous Page) CMSG CMSG CMSG Inter- Investment Investment Investment Company Co. I Co. VII Co. V Eliminations Consol. Operating Revenue Independent power production $ 12 $ 1 $ -- $ 206 Other -- -- -- -- ----- ----- ----- ----- Total operating revenue 12 1 -- 206 ----- ----- ----- ----- Operating Expenses Fuel for electric generation -- -- -- 82 Other operation expense -- -- -- 11 Maintenance -- -- -- 3 Depreciation and amortization -- -- -- -- General taxes -- -- -- -- ----- ----- ----- ----- Total operating expenses -- -- -- 96 ----- ----- ----- ----- Operating Income (Loss) 12 1 -- 110 ----- ----- ----- ----- Other Income (Deductions) Interest from affiliates -- -- (1) -- Gain (loss) on asset sales -- -- -- (7) Other, net -- -- (92) 3 ----- ----- ----- ----- Total other income (deductions) -- -- (93) (4) ----- ----- ----- ----- Fixed Charges Interest on long-term debt -- -- -- -- Other interest -- -- (1) 2 Capitalized interest -- -- -- -- ----- ----- ----- ----- Net fixed charges -- -- (1) 2 ----- ----- ----- ----- Income (Loss) before Income Taxes and Minority Interests 12 1 (92) 104 Income Taxes (Benefits) -- -- -- 9 Minority Interests -- -- -- 1 ----- ----- ----- ----- Net Income (Loss) $ 12 $ 1 $ (92) $ 94 ===== ===== ===== ===== (8) Represents CMSG Investment Company I, CMSG Pinamucan LDC, CMSG Loy Yang Holdings 1 Ltd. and CMSG Loy Yang Holdings 2 Ltd. consolidated. A-13 CMS GAS TRANSMISSION COMPANY Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) CMS Gas CMS CMS Trans. CMS Marysville CMS Gas Jackson Panhandle Company Antrim Gas Liquids Argentina Pipeline Eastern Pipe CMS Grand (9) Gas LLC Company Company Company Line Consol. Lacs LLC Operating Revenue Natural gas transmission $ 7 $ 12 $ 11 $ (1) $ 2 $ -- $ 5 Other -- -- -- -- -- -- -- ----- ----- ----- ----- ----- ----- ----- Total operating revenue 7 12 11 (1) 2 -- 5 ----- ----- ----- ----- ----- ----- ----- Operating Expenses Cost of gas sold -- -- -- -- -- -- -- Other operation expense 12 2 7 -- -- 25 -- Maintenance -- 1 1 -- -- -- 1 Depreciation and amortization -- 3 -- -- -- -- 2 General taxes 1 1 -- -- -- -- -- ----- ----- ----- ----- ----- ----- ----- Total operating expenses 13 7 8 -- -- 25 3 ----- ----- ----- ----- ----- ----- ----- Operating Income (Loss) (6) 5 3 (1) 2 (25) 2 ----- ----- ----- ----- ----- ----- ----- Other Income (Deductions) Interest from affiliates 1 -- -- -- -- 9 -- Gain (loss) on asset sales 19 -- -- -- -- -- -- Other, net (406) -- -- -- -- -- -- ----- ----- ----- ----- ----- ----- ----- Total other income (deductions) (386) -- -- -- -- 9 -- ----- ----- ----- ----- ----- ----- ----- Fixed Charges Interest on long-term debt 1 2 -- -- 1 -- -- Other interest -- -- -- -- -- -- -- Capitalized interest -- -- -- -- -- -- -- ----- ----- ----- ----- ----- ----- ----- Net fixed charges 1 2 -- -- 1 -- -- ----- ----- ----- ----- ----- ----- ----- Income (Loss) from Continuing Operations before Income Taxes and Minority Interests (393) 3 3 (1) 1 (16) 2 Income Taxes (Benefits) 38 1 1 -- -- (5) 1 Minority Interests -- -- -- -- -- -- -- ----- ----- ----- ----- ----- ----- ----- Net Income (Loss) from Continuing Operations (431) 2 2 (1) 1 (11) 1 Discontinued Operations (4) -- -- -- -- (289) -- ----- ----- ----- ----- ----- ----- ----- Net Income (Loss) $(435) $ 2 $ 2 $ (1) $ 1 $(300) $ 1 ===== ===== ===== ===== ===== ===== ===== (Continued on Following Page) A-14 CMS GAS TRANSMISSION COMPANY Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) (Continued from Previous Page) CMS Bay Western CMS Field CMS Gas Area Australia Services Inter- Transmission Pipeline Gas Trans. Inc. Company Company LLC Company I Consol. Eliminations Consol. Operating Revenue Natural gas transmission $ 5 $ 13 $ -- $ -- $ 54 Other -- -- -- -- -- ----- ----- ----- ----- ----- Total operating revenue 5 13 -- -- 54 ----- ----- ----- ----- ----- Operating Expenses Cost of gas sold -- 2 -- -- 2 Other operation expense 1 2 4 -- 53 Maintenance -- -- -- -- 3 Depreciation and amortization 2 1 -- -- 8 General taxes -- -- -- -- 2 ----- ----- ----- ----- ----- Total operating expenses 3 5 4 -- 68 ----- ----- ----- ----- ----- Operating Income (Loss) 2 8 (4) -- (14) ----- ----- ----- ----- ----- Other Income (Deductions) Interest from affiliates -- -- -- 2 12 Gain (loss) on asset sales -- -- -- -- 19 Other, net -- (1) -- 403 (4) ----- ----- ----- ----- ----- Total other income (deductions) -- (1) -- 405 27 ----- ----- ----- ----- ----- Fixed Charges Interest on long-term debt -- -- -- -- 4 Other interest -- 1 1 2 4 Capitalized interest -- -- -- -- -- ----- ----- ----- ----- ----- Net fixed charges -- 1 1 2 8 ----- ----- ----- ----- ----- Income (Loss) from Continuing Operations before Income Taxes and Minority Interests 2 6 (5) 403 5 Income Taxes (Benefits) 1 1 (2) -- 36 Minority Interests -- -- -- -- -- ----- ----- ----- ----- ----- Net Income (Loss) from Continuing Operations 1 5 (3) 403 (31) Discontinued Operations -- -- (112) -- (405) ----- ----- ----- ----- ----- Net Income (Loss) $ 1 $ 5 $(115) $ 403 $(436) ===== ===== ===== ===== ===== (9) Represents CMS Gas Transmission Company, CMS Saginaw Bay Lateral Company and TriState Pipeline LLC consolidated with CMS Field Services, Inc. and Panhandle Eastern Pipe Line Company included on the equity method of accounting. A-15 PANHANDLE EASTERN PIPE LINE COMPANY Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) Panhandle CMS Trunkline CMS PEPL Panhandle Eastern Pipe Trunkline LNG Pan Gas Inter- Consol. Eastern Pipe Line Co. Gas Co. Holdings Storage Company before Disc. Disc. Line Co. (10) LLC (11) Co. LLC Co. Eliminations Oper.) Oper. Consol. Operating Revenue Natural gas transmission $ 311 $ 159 $ 58 $ 43 $ (87) $ 484 $(484) $ -- Other -- -- -- -- -- -- -- -- ----- ----- ----- ----- ----- ----- ----- ----- Total operating revenue 311 159 58 43 (87) 484 (484) -- ----- ----- ----- ----- ----- ----- ----- ----- Operating Expenses Cost of gas sold -- -- -- -- -- -- -- -- Other operation expense 137 59 14 4 (43) 171 (146) 25 Maintenance 15 13 2 1 -- 31 (31) -- Depreciation and amortization 21 26 1 3 -- 51 (51) -- General taxes 11 7 1 3 -- 22 (22) -- ----- ----- ----- ----- ----- ----- ----- ----- Total operating expenses 184 105 18 11 (43) 275 (250) 25 ----- ----- ----- ----- ----- ----- ----- ----- Operating Income (Loss) 127 54 40 32 (44) 209 (234) (25) ----- ----- ----- ----- ----- ----- ----- ----- Other Income (Deductions) Interest from affiliates 17 (13) 5 -- -- 9 -- 9 Other, net (26) 2 -- -- -- (24) 24 -- ----- ----- ----- ----- ----- ----- ----- ----- Total other income (deductions) (9) (11) 5 -- -- (15) 24 9 ----- ----- ----- ----- ----- ----- ----- ----- Fixed Charges Interest on long-term debt 62 -- 12 -- -- 74 (74) -- Other interest 2 1 2 -- -- 5 (5) -- Capitalized interest (2) (1) -- -- -- (3) 3 -- ----- ----- ----- ----- ----- ----- ----- ----- Net fixed charges 62 -- 14 -- -- 76 (76) -- ----- ----- ----- ----- ----- ----- ----- ----- Income (Loss) from Continuing Operations before Income Taxes and Minority Interests 56 43 31 32 (44) 118 (134) (16) Income Taxes (Benefits) 17 17 -- 12 -- 46 (51) (5) Minority Interests 4 -- -- -- -- 4 (4) -- ----- ----- ----- ----- ----- ----- ----- ----- Net Income (Loss) from Continuing Operations 35 26 31 20 (44) 68 (79) (11) Discontinued Operations -- -- -- -- -- -- (289) (289) ----- ----- ----- ----- ----- ----- ----- ----- Net Income (Loss) $ 35 $ 26 $ 31 $ 20 $ (44) $ 68 $(368) $(300) ===== ===== ===== ===== ===== ===== ===== ===== (10) Represents Panhandle Eastern Pipe Line Company, CMS Panhandle Eastern Resources, Inc., CMS Panhandle Storage Company, CMS Trunkline Field Services Company, MG Ventures Storage, Inc., CMS Panhandle Lake Charles Generation Company LLC, CMS Panhandle LNG Acquisition Company, Panhandle Partner LLC and CMS Panhandle Holdings LLC consolidated. (11) Represents CMS Trunkline Gas Company LLC, CMS Trunkline Gas Resources LLC, CMS Trunkline Offshore Pipeline Company LLC, CMS Trunkline Deepwater Pipeline Company LLC and Sea Robin Pipeline Company consolidated. A-16 CMS FIELD SERVICES INC. Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) CMS Taurus CMS CMS CMS Field Holdings Bighorn Gas Natural Gas Cherokee Bradshaw Services Company CMS Gas Gathering Gathering Gas Proc. Energy Inc. (12) LLC Proc. LLC LLC LLC LLC LLC Operating Revenue Natural gas transmission $ 415 $ 22 $ 100 $ 18 $ 4 $ 27 $ 1 Other - - - - - - - ------ ------ ------ ------ ------ ------ ------ Total operating revenue 415 22 100 18 4 27 1 ------ ------ ------ ------ ------ ------ ------ Operating Expenses Cost of gas sold 402 16 94 - - 20 - Other operation expense 11 4 2 3 2 4 1 Maintenance - 1 1 4 - 1 - Depreciation and amortization 1 3 3 3 4 3 - General taxes 2 - - - - - - ------ ------ ------ ------ ------ ------ ------ Total operating expenses 416 24 100 10 6 28 1 ------ ------ ------ ------ ------ ------ ------ Operating Income (Loss) (1) (2) - 8 (2) (1) - ------ ------ ------ ------ ------ ------ ------ Other Income (Deductions) Interest from affiliates - - - - - - - Gain (loss) on asset sales - - - - - - - Other, net 1 - - - - - - ------ ------ ------ ------ ------ ------ ------ Total other income (deductions) 1 - - - - - - ------ ------ ------ ------ ------ ------ ------ Fixed Charges Interest on long-term debt - - - - - - - Other interest 2 - - - - - - Capitalized interest - - - - - - - ------ ------ ------ ------ ------ ------ ------ Net fixed charges 2 - - - - - - ------ ------ ------ ------ ------ ------ ------ Income (Loss) from Continuing Operations before Income Taxes and Minority Interests (2) (2) - 8 (2) (1) - Income Taxes (Benefits) 1 - - - - - - Minority Interests - - - - - - - ------ ------ ------ ------ ------ ------ ------ Income (Loss) from Continuing Operations (3) (2) - 8 (2) (1) - Discontinued Operations - - - - - - - ------ ------ ------ ------ ------ ------ ------ Net Income (Loss) $ (3) $ (2) $ - $ 8 $ (2) $ (1) $ - ====== ====== ====== ====== ====== ====== ====== (Continued on Following Page) A-17 CMS FIELD SERVICES INC. Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) (Continued from Previous Page) CMS Okla. CMS FS CMS Gulf Natural Gas Inter- Consol. CMS Field Coast Field Gathering Company (before Disc. Disc. Services Services LLC LLC Eliminations Oper.) Oper. Inc. Consol. Operating Revenue Natural gas transmission $ 28 $ 1 $ - $ 616 $ (616) $ - Other - - - - - - ------ ------ ------ ------ ------ ------ Total operating revenue 28 1 - 616 (616) - ------ ------ ------ ------ ------ ------ Operating Expenses Cost of gas sold 20 - - 552 (552) - Other operation expense 1 1 - 29 (25) 4 Maintenance - - - 7 (7) - Depreciation and amortization 3 - - 20 (20) - General taxes - - - 2 (2) - ------ ------ ------ ------ ------ ------ Total operating expenses 24 1 - 610 (606) 4 ------ ------ ------ ------ ------ ------ Operating Income (Loss) 4 - - 6 (10) (4) ------ ------ ------ ------ ------ ------ Other Income (Deductions) Interest from affiliates - - - - - - Gain (loss) on asset sales - - - - - - Other, net - - - 1 (1) - ------ ------ ------ ------ ------ ------ Total other income (deductions) - - - 1 (1) - ------ ------ ------ ------ ------ ------ Fixed Charges Interest on long-term debt - - - - - - Other interest - - - 2 (1) 1 Capitalized interest - - - - - - ------ ------ ------ ------ ------ ------ Net fixed charges - - - 2 (1) 1 ------ ------ ------ ------ ------ ------ Income (Loss) from Continuing Operations before Income Taxes and Minority Interests 4 - - 5 (10) (5) Income Taxes (Benefits) - - - 1 (3) (2) Minority Interests - - 4 4 (4) - ------ ------ ------ ------ ------ ------ Income (Loss) from Continuing Operations 4 - (4) - (3) (3) Discontinued Operations - - - - (112) (112) ------ ------ ------ ------ ------ ------ Net Income (Loss) $ 4 $ - $ (4) $ - $ (115) $ (115) ====== ====== ====== ====== ====== ====== (12) Represents CMS Field Services, Inc., CMS Laverne Gas Processing LLC and CMS Hydrocarbons LLC consolidated. A-18 CMS INTERNATIONAL VENTURES LLC Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) CMS CMS Oper. CMSG CMS Western CMSG Int'l Ventures SRL Invest. E&G Australia Invest. LLC (13) Consol. Co. III LLC GT Co. I Co. V Operating Revenue Independent power production $ - $ 43 $ 8 $ - $ - $ 1 Natural gas transmission - (2) - - 3 - Other - - - - - - ------ ------ ------ ------ ------ ------ Total operating revenue - 41 8 - 3 1 ------ ------ ------ ------ ------ ------ Operating Expenses Fuel for electric generation - 21 - - - - Purchased and interchange power - 8 - - - - Cost of gas sold - - - - 1 - Other operation expense - 8 - - 1 - Maintenance - 6 - - - - Depreciation and amortization - 11 1 - - - General taxes - - - - - - ------ ------ ------ ------ ------ ------ Total operating expenses - 54 1 - 2 - ------ ------ ------ ------ ------ ------ Operating Income (Loss) - (13) 7 - 1 1 ------ ------ ------ ------ ------ ------ Other Income (Deductions) Dividends and interest from affiliates - 3 - - - - Gain (loss) on asset sales - - (11) - - - Other, net (32) 9 - - - - ------ ------ ------ ------ ------ ------ Total other income (deductions) (32) 12 (11) - - - ------ ------ ------ ------ ------ ------ Fixed Charges Interest on long-term debt - 2 - - - - Other interest - - - - - - Capitalized interest - - - - - - ------ ------ ------ ------ ------ ------ Net fixed charges - 2 - - - - ------ ------ ------ ------ ------ ------ Income (Loss) from Continuing Operations before Income Taxes and Minority Interests (32) (3) (4) - 1 1 Income Taxes (Benefits) - 13 - - - - Minority Interests - (1) - - - - ------ ------ ------ ------ ------ ------ Income (Loss) from Continuing Operations (32) (15) (4) - 1 1 Discontinued Operations - - - (6) - - ------ ------ ------ ------ ------ ------ Net Income (Loss) $ (32) $ (15) $ (4) $ (6) $ 1 $ 1 ====== ====== ====== ====== ====== ====== (Continued on Following Page) A-19 CMS INTERNATIONAL VENTURES LLC Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) (Continued from Previous Page) CMS Int'l Inter- Ventures Company LLC Eliminations Consol. Operating Revenue Independent power production $ - $ 52 Natural gas transmission - 1 Other - - ---- ---- Total operating revenue - 53 ---- ---- Operating Expenses Fuel for electric generation - 21 Purchased and interchange power - 8 Cost of gas sold - 1 Other operation expense - 9 Maintenance - 6 Depreciation and amortization - 12 General taxes - - ---- ---- Total operating expenses - 57 ---- ---- Operating Income (Loss) - (4) ---- ---- Other Income (Deductions) Dividends and interest from affiliates - 3 Gain (loss) on asset sales - (11) Other, net 23 - ---- ---- Total other income (deductions) 23 (8) ---- ---- Fixed Charges Interest on long-term debt - 2 Other interest - - Capitalized interest - - ---- ---- Net fixed charges - 2 ---- ---- Income (Loss) from Continuing Operations before Income Taxes and Minority Interests 23 (14) Income Taxes (Benefits) - 13 Minority Interests - (1) ---- ---- Income (Loss) from Continuing Operations 23 (26) Discontinued Operations - (6) ---- ---- Net Income (Loss) $ 23 $(32) ==== ==== (13) Represents CMS International Ventures LLC and CMS Generation SRL consolidated. A-20 CMS OPERATING SRL Consolidating Statement of Income For the Year Ended December 31, 2002 (In Millions) CMS Centrales CMS Inter- CMS Operating Termicas Ensenada Company Operating SRL (14) Mendoza SA SA Eliminations SRL Consol. Operating Revenue Independent power production $ - $ 26 $ 17 $ - $ 43 Natural gas transmission (2) - - - (2) Other - - - - - ---- ---- ---- ---- ---- Total operating revenue (2) 26 17 - 41 ---- ---- ---- ---- ---- Operating Expenses Fuel for electric generation - 12 9 - 21 Purchased and interchange power - 6 2 - 8 Other operation expense 1 5 2 - 8 Maintenance - 4 2 - 6 Depreciation and amortization 1 8 2 - 11 General taxes - - - - - ---- ---- ---- ---- ---- Total operating expenses 2 35 17 - 54 ---- ---- ---- ---- ---- Operating Income (Loss) (4) (9) - - (13) ---- ---- ---- ---- ---- Other Income (Deductions) Dividends and interest from affiliates 2 1 - - 3 Other, net (11) (2) (2) 24 9 ---- ---- ---- ---- ---- Total other income (deductions) (9) (1) (2) 24 12 ---- ---- ---- ---- ---- Fixed Charges Interest on long-term debt - - 2 - 2 Other interest - - - - - Capitalized Interest - - - - - ---- ---- ---- ---- ---- Net fixed charges - - 2 - 2 ---- ---- ---- ---- ---- Income (Loss) before Income Taxes and Minority Interests (13) (10) (4) 24 (3) Income Taxes (Benefits) 2 7 4 - 13 Minority Interests - (1) - - (1) ---- ---- ---- ---- ---- Net Income (Loss) $(15) $(16) $ (8) $ 24 $(15) ==== ==== ==== ==== ==== (14) Represents CMS Operating SRL and Cuyana S.A. de Inversiones consolidated. A-21 CMS ENERGY CORPORATION Consolidating Balance Sheet - Assets December 31, 2002 (In Millions) CMS Consumers CMS CMS Energy Energy Enterprises Inter- Energy Corporation Company Company Company Corporation (1) Consol. Consol. Eliminations Consol. Plant and Property (At Cost) Electric $ - $ 7,523 $ - $ - $ 7,523 Gas - 2,719 - - 2,719 Natural gas transmission - - 210 - 210 Independent power production - - 251 - 251 Other 22 23 47 - 92 -------- -------- -------- -------- -------- 22 10,265 508 - 10,795 Less accumulated depreciation and amortization 10 5,900 200 - 6,110 -------- -------- -------- -------- -------- 12 4,365 308 - 4,685 Construction work-in-progress - 548 1 - 549 -------- -------- -------- -------- -------- 12 4,913 309 - 5,234 -------- -------- -------- -------- -------- Investments Associated companies 5,194 22 19 (5,235) - Independent power production - - 565 - 565 Natural gas transmission - - 178 - 178 First Midland Limited Partnership - 255 - - 255 Midland Cogeneration Venture - 388 - - 388 Other 1 2 9 - 12 -------- -------- -------- -------- -------- 5,195 667 771 (5,235) 1,398 -------- -------- -------- -------- -------- Current Assets Cash and temporary cash investments - 271 106 - 377 Accounts/notes receivable 20 236 314 - 570 Accounts/notes receivable-related parties 53 13 452 (331) 187 Inventories to average cost Gas in underground storage - 486 5 - 491 Materials and supplies - 71 18 - 89 Generating plant fuel stock - 37 - - 37 Assets held for sale - - 646 (2) 644 Price risk management assets - - 115 - 115 Prepayments and other 28 199 11 - 238 -------- -------- -------- -------- -------- 101 1,313 1,667 (333) 2,748 -------- -------- -------- -------- -------- Non-current Assets Securitization costs - 689 - - 689 Postretirement benefits - 185 - - 185 Abandoned Midland project - 11 - - 11 Nuclear decommissioning trust funds - 536 - - 536 Notes receivable-related parties 536 - 466 (842) 160 Notes receivable - - 126 - 126 Assets held for sale - - 2,081 - 2,081 Price risk management assets - - 135 - 135 Other 113 386 153 (40) 612 -------- -------- -------- -------- -------- 649 1,807 2,961 (882) 4,535 -------- -------- -------- -------- -------- Total Assets $ 5,957 $ 8,700 $ 5,708 $ (6,450) $ 13,915 ======== ======== ======== ======== ======== (1) Represents CMS Energy Corporation with CMS Energy Trust I, CMS Energy Trust II, CMS Energy Trust III consolidated with Consumers Energy Company and CMS Enterprises Company included on the equity method of accounting. A-22 CMS ENERGY CORPORATION Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) CMS Consumers CMS CMS Energy Energy Enterprises Inter- Energy Corporation Company Company Company Corporation (1) Consol. Consol. Eliminations Consol. Capitalization Common Stockholders' Equity Common stock $ 1 $ 841 $ - $ (841) $ 1 Other paid-in-capital 3,679 682 6,158 (6,914) 3,605 Currency translation (458) - (468) 468 (458) Other comprehensive income (loss) (295) (179) (111) 290 (295) Retained earnings (1,747) 545 (2,286) 1,768 (1,720) -------- -------- -------- -------- -------- 1,180 1,889 3,293 (5,229) 1,133 Preferred stock - 44 - - 44 Company-obligated mandatorily redeemable preferred securities of Consumer's subsidiaries - 490 - - 490 Company-obligated convertible Trust Preferred Securities of subsidiaries 393 - - - 393 Long-term debt 3,577 2,442 179 (842) 5,356 Non-current capital leases - 116 - - 116 -------- -------- -------- -------- -------- 5,150 4,981 3,472 (6,071) 7,532 -------- -------- -------- -------- -------- Minority Interests - - 21 - 21 -------- -------- -------- -------- -------- Current Liabilities Current portion of long-term debt 292 305 30 - 627 Current capital leases - 13 - - 13 Notes payable 215 457 1 (215) 458 Accounts payable 1 261 209 11 482 Accounts payable-related parties 15 84 34 (80) 53 Accrued interest 80 55 3 (7) 131 Accrued taxes 161 214 (103) 19 291 Deferred income taxes - 25 (10) - 15 Liabilities held for sale - - 467 (2) 465 Price risk management liabilities - - 103 (7) 96 Current portion of purchase power contracts - 26 - - 26 Current portion of gas supply contract obligations - - 25 - 25 Other 38 145 33 - 216 -------- -------- -------- -------- -------- 802 1,585 792 (281) 2,898 -------- -------- -------- -------- -------- Non-current Liabilities Deferred income taxes (23) 949 (427) (85) 414 Postretirement benefits 31 563 131 - 725 Deferred investment tax credit - 91 - - 91 Regulatory liabilities for income taxes, net - 297 - - 297 Power purchase agreement - 27 - - 27 Gas supply contract obligations - - 241 - 241 Liabilities held for sale - - 1,243 - 1,243 Price risk management liabilities - - 137 (2) 135 Other (3) 207 98 (11) 291 -------- -------- -------- -------- -------- 5 2,134 1,423 (98) 3,464 -------- -------- -------- -------- -------- Total Stockholders' Equity and Liabilities $ 5,957 $ 8,700 $ 5,708 $ (6,450) $ 13,915 ======== ======== ======== ======== ======== (1) Represents CMS Energy Corporation with CMS Energy Trust I, CMS Energy Trust II, CMS Energy Trust III consolidated with Consumers Energy Company and CMS Enterprises Company included on the equity method of accounting. A-23 CONSUMERS ENERGY COMPANY Consolidating Balance Sheet-Assets December 31, 2002 (In Millions) Consumers Consumers Consumers CMS Consumers Parnall Consumers Receivables Campus Midland CMS Energy Holdings Funding Funding Holdings Holdings Midland Company (2) LLC LLC LLC LLC Company Inc. Plant and Property (At Cost) Electric $ 7,523 $ - $ - $ - $ - $ - $ - Gas 2,719 - - - - - - Other 14 6 - - 3 - - ------- ------- ------- ------- ------- ------- ------- 10,256 6 - - 3 - - Less accumulated depreciation, depletion and amortization 5,900 - - - - - - ------- ------- ------- ------- ------- ------- ------- 4,356 6 - - 3 - - Construction work-in-progress 494 - - - 54 - - ------- ------- ------- ------- ------- ------- ------- 4,850 6 - - 57 - - ------- ------- ------- ------- ------- ------- ------- Investments Associated companies 657 - - - - - First Midland Limited Partnership - - - - - 255 - Midland Cogeneration Venture - - - - - - 388 Other 2 - - - - - - ------- ------- ------- ------- ------- ------- ------- 659 - - - - 255 388 ------- ------- ------- ------- ------- ------- ------- Current Assets Cash and temporary cash investments 251 - 18 - - - 2 Accounts/notes receivable 86 - 26 163 - - - Accounts/notes receivable-related parties 2 - - 1 - - 10 Inventories to average cost Gas in underground storage 486 - - - - - - Materials and supplies 71 - - - - - - Generating plant fuel stock 37 - - - - - - Prepayments and other 199 - - - - - - ------- ------- ------- ------- ------- ------- ------- 1,132 - 44 164 - - 12 ------- ------- ------- ------- ------- ------- ------- Non-current Assets Securitization costs 689 - - - - - - Postretirement benefits 185 - - - - - - Abandoned Midland project 11 - - - - - - Nuclear decommissioning trust funds 536 - - - - - - Notes receivable-related party 506 - 416 - - - - Other 386 - - - - - - ------- ------- ------- ------- ------- ------- ------- 2,313 - 416 - - - - ------- ------- ------- ------- ------- ------- ------- Total Assets $ 8,954 $ 6 $ 460 $ 164 $ 57 $ 255 $ 400 ======= ======= ======= ======= ======= ======= ======= (Continued on Next Page) A-24 CONSUMERS ENERGY COMPANY Consolidating Balance Sheet-Assets December 31, 2002 (In Millions) Consumers Inter- Energy Company Company Eliminations Consol. Plant and Property (At Cost) Electric $ - $ 7,523 Gas - 2,719 Other - 23 -------- -------- - 10,265 Less accumulated depreciation, depletion and amortization - 5,900 -------- -------- - 4,365 Construction work-in-progress - 548 -------- -------- - 4,913 -------- -------- Investments Associated companies (635) 22 First Midland Limited Partnership - 255 Midland Cogeneration Venture - 388 Other - 2 -------- -------- (635) 667 -------- -------- Current Assets Cash and temporary cash investments - 271 Accounts/notes receivable (39) 236 Accounts/notes receivable-related parties - 13 Inventories to average cost Gas in underground storage - 486 Materials and supplies - 71 Generating plant fuel stock - 37 Prepayments and other - 199 -------- -------- (39) 1,313 -------- -------- Non-current Assets Securitization costs - 689 Postretirement benefits - 185 Abandoned Midland project - 11 Nuclear decommissioning trust funds - 536 Notes receivable-related party (922) - Other - 386 -------- -------- (922) 1,807 -------- -------- Total Assets $ (1,596) $ 8,700 ======== ======== (2) Represents Consumers Energy Company, Consumers Power Company Financing I, Consumers Energy Company Financing II, Consumers Energy Company Financing III, Consumers Energy Company Financing IV, Consumers Nuclear Services LLC, Michigan Gas Storage Company, Huron Hydrocarbons, Inc., ES Services Company, CMS Engineering Company, Consumers EnergyGuard Services, Inc. and MEC Development Corporation consolidated with Consumers Funding LLC, Consumers Parnall Holdings LLC, Consumers Receivables Funding LLC, Consumers Campus Holdings LLC, CMS Midland Holdings Company and CMS Midland, Inc. included on the equity method of accounting. A-25 CONSUMERS ENERGY COMPANY Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) Consumers Consumers Consumers CMS Consumers Parnall Consumers Receivables Campus Midland CMS Energy Holdings Funding Funding Holdings Holdings Midland Company (2) LLC LLC LLC LLC Company Inc. Capitalization Common Stockholders' Equity Common stock $ 857 $ - $ - $ - $ - $ - $ - Other paid-in-capital 684 5 2 163 3 64 168 Other comprehensive income (loss) (179) - - - - - 8 Retained earnings 546 - - - - 32 171 ------ ------ ------ ------ ------ ------ ------ 1,908 5 2 163 3 96 347 Preferred stock 44 - - - - - - Company-obligated mandatorily redeemable preferred securities of subsidiaries 490 - - - - - - Long-term debt 2,938 - 426 - - - - Non-current capital leases 62 - - - 54 - - ------ ------ ------ ------ ------ ------ ------ 5,442 5 428 163 57 96 347 ------ ------ ------ ------ ------ ------ ------ Current Liabilities Current portion of long-term debt 278 - 27 - - - - Current capital leases 13 - - - - - - Notes payable 493 - - - - - - Accounts payable 259 - 1 1 - - - Accounts payable-related parties 85 - - - - - - Accrued interest 52 - 4 - - - - Accrued taxes 217 - - - - 7 (10) Deferred income taxes 25 - - - - - - Current portion of purchase power contracts 26 - - - - - - Other 145 - - - - - - ------ ------ ------ ------ ------ ------ ------ 1,593 - 32 1 - 7 (10) ------ ------ ------ ------ ------ ------ ------ Non-current Liabilities Deferred income taxes 748 - - - - 139 62 Postretirement benefits 563 - - - - - - Deferred investment tax credit 77 - - - - 13 1 Regulatory liabilities for income taxes, net 297 - - - - - - Power purchase agreement 27 - - - - - - Other 207 1 - - - - - ------ ------ ------ ------ ------ ------ ------ 1,919 1 - - - 152 63 ------ ------ ------ ------ ------ ------ ------ Total Stockholders' Equity and Liabilities $8,954 $ 6 $ 460 $ 164 $ 57 $ 255 $ 400 ====== ====== ====== ====== ====== ====== ====== (Continued on the Next Page) A-26 CONSUMERS ENERGY COMPANY Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) (Continued from Previous Page) Consumers Inter- Energy Company Company Eliminations Consol. Capitalization Common Stockholders' Equity Common stock $ (16) $ 841 Other paid-in-capital (407) 682 Other comprehensive income (loss) (8) (179) Retained earnings (204) 545 ------- ------- (635) 1,889 Preferred stock - 44 Company-obligated mandatorily redeemable preferred securities of subsidiaries - 490 Long-term debt (922) 2,442 Non-current capital leases - 116 ------- ------- (1,557) 4,981 ------- ------- Current Liabilities Current portion of long-term debt - 305 Current capital leases - 13 Notes payable (36) 457 Accounts payable - 261 Accounts payable-related parties (1) 84 Accrued interest (1) 55 Accrued taxes - 214 Deferred income taxes - 25 Current portion of purchase power contracts - 26 Other - 145 ------- ------- (38) 1,585 ------- ------- Non-current Liabilities Deferred income taxes - 949 Postretirement benefits - 563 Deferred investment tax credit - 91 Regulatory liabilities for income taxes, net - 297 Power purchase agreement - 27 Other (1) 207 ------- ------- (1) 2,134 ------- ------- Total Stockholders' Equity and Liabilities $(1,596) $ 8,700 ======= ======= (2) Represents Consumers Energy Company, Consumers Power Company Financing I, Consumers Energy Company Financing II, Consumers Energy Company Financing III, Consumers Energy Company Financing IV, Consumers Nuclear Services LLC, Michigan Gas Storage Company, Huron Hydrocarbons, Inc. ES Services Company, CMS Engineering Company, Consumers EnergyGuard Services, Inc. and MEC Development Corporation consolidated with Consumers Funding LLC, Consumers Parnall Holdings LLC, Consumers Receivables Funding LLC, Consumers Campus Holdings LLC, CMS Midland Holdings Company and CMS Midland, Inc. included on the equity method of accounting. A-27 CMS ENTERPRISES COMPANY Consolidating Balance Sheet-Assets December 31, 2002 (In Millions) CMS CMS CMS CMS Gas Enterprises Generation Resource CMS CMS Trans. Company Company Development Land MS&T Company (3) Consol. Company Company Company Consol. Plant and Property (At Cost) Natural gas transmission $ - $ - $ - $ - $ - $ 166 Independent power production - 157 - - - - Other 2 - - 14 25 - ------- ------- ------- ------- ------- ------- 2 157 - 14 25 166 Less accumulated depreciation, depletion and amortization 2 70 - - 9 81 ------- ------- ------- ------- ------- ------- - 87 - 14 16 85 Construction work-in-progress - - - - - 1 ------- ------- ------- ------- ------- ------- - 87 - 14 16 86 ------- ------- ------- ------- ------- ------- Investments Associated companies 3,136 121 - - - 215 Independent power production - 405 - - - - Natural gas transmission - - - - - 20 Other 1 - - - 8 - ------- ------- ------- ------- ------- ------- 3,137 526 - - 8 235 ------- ------- ------- ------- ------- ------- Current Assets Cash and temporary cash investments (1) 14 - - (1) 1 Accounts/notes receivable 3 25 - - 248 6 Accounts/notes receivable-related parties 395 176 9 - 78 101 Gas in underground storage 1 - - - 2 2 Materials and supplies - 10 - - - 1 Assets held for sale - - - - 259 347 Price risk management assets - - - - 115 - Prepayments and other 2 9 - - 7 1 ------- ------- ------- ------- ------- ------- 400 234 9 - 708 459 ------- ------- ------- ------- ------- ------- Non-current Assets Notes receivable - 108 - - - 18 Notes receivable-related parties 146 7 - - 306 - Assets held for sale - - - - - 2,035 Price risk management assets - - - - 135 - Other 9 53 - - 3 13 ------- ------- ------- ------- ------- ------- 155 168 - - 444 2,066 ------- ------- ------- ------- ------- ------- Total Assets $ 3,692 $ 1,015 $ 9 $ 14 $ 1,176 $ 2,846 ======= ======= ======= ======= ======= ======= (Continued on Following Page) A-28 CMS ENTERPRISES COMPANY Consolidating Balance Sheet-Assets December 31, 2002 (In Millions) (Continued from Previous Page) CMS Micro- CMS Int'l Power CMS CMS Vent. Systems/ Inter- Enterprises Capital LLC CMS Dist. Company Company LLC Consol. Power LLC Eliminations Consol. Plant and Property (At Cost) Natural gas transmission $ - $ 46 $ - $ (2) $ 210 Independent power production - 94 - - 251 Other 1 - 5 - 47 ------ ------- ------- ------- ------- 1 140 5 (2) 508 Less accumulated depreciation, depletion and amortization - 36 3 (1) 200 ------ ------- ------- ------- ------- 1 104 2 (1) 308 Construction work-in-progress - - - - 1 ------ ------- ------- ------- ------- 1 104 2 (1) 309 ------ ------- ------- ------- ------- Investments Associated companies - - - (3,453) 19 Independent power production - 101 - 59 565 Natural gas transmission - 217 - (59) 178 Other - - - - 9 ------ ------- ------- ------- ------- - 318 - (3,453) 771 ------ ------- ------- ------- ------- Current Assets Cash and temporary cash investments 62 31 - - 106 Accounts/notes receivable 16 16 - - 314 Accounts/notes receivable-related parties 419 80 4 (810) 452 Gas in underground storage - - - - 5 Materials and supplies - 7 - - 18 Assets held for sale - 59 - (19) 646 Price risk management assets - - - - 115 Prepayments and other - 5 - (13) 11 ------ ------- ------- ------- ------- 497 198 4 (842) 1,667 ------ ------- ------- ------- ------- Non-current Assets Notes receivable - - - - 126 Notes receivable-related parties 132 28 - (153) 466 Assets held for sale - 46 - - 2,081 Price risk management assets - - - - 135 Other 4 71 - - 153 ------ ------- ------- ------- ------- 136 145 - (153) 2,961 ------ ------- ------- ------- ------- Total Assets $ 634 $ 765 $ 6 $(4,449) $ 5,708 ====== ======= ======= ======= ======= (3) Represents CMS Enterprises Company, CMS Capital Financial Services, Inc., CMS Comercializadora de Energia S.A., CMS Energy South America Company, CMS Energy Asia Private Ltd., CMS Texas LLC and CMS Energy UK Limited consolidated with CMS Generation Company, CMS Land Company, CMS Distributed Power LLC, CMS MicroPower Systems LLC, CMS Capital LLC, CMS Marketing, Services and Trading Company, CMS Gas Transmission Company, CMS International Ventures LLC and CMS Resource Development Company included on the equity method of accounting. A-29 CMS ENTERPRISES COMPANY Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) CMS CMS CMS Gas CMS Generation Resource CMS CMS Trans. Enterprises Company Development Land MS&T Company Company (3) Consol. Company Company Company Consol. Capitalization Common Stockholders' Equity Common stock $ 1 $ - $ - $ - $ - $ - Other paid-in-capital 6,241 2,383 4 22 237 2,073 Currency translation (469) (186) - - - (146) Other comprehensive income (loss) (116) (49) (1) - (8) (45) Retained earnings (2,312) (1,010) (1) (20) (106) (565) ------- ------- ------- ------- ------- ------- 3,345 1,138 2 2 123 1,317 Long-term debt 132 1 - - - 3 Non-current capital leases - - - - - - ------- ------- ------- ------- ------- ------- 3,477 1,139 2 2 123 1,320 ------- ------- ------- ------- ------- ------- Minority Interests - 11 - - - 1 ------- ------- ------- ------- ------- ------- Current Liabilities Current portion of long-term debt - - - - - 23 Current capital leases - - - - - - Notes payable 215 19 1 11 155 14 Accounts payable 64 8 1 10 119 2 Accounts payable-related parties 22 36 1 - 54 12 Accrued interest 1 2 - - - - Accrued taxes (39) (36) 1 (11) (26) (32) Deferred income taxes 3 - - - - - Liabilities held for sale - - - - 164 269 Price risk management liabilities - - - - 129 - Current portion of gas supply contract obligation - - - - 25 - Other 3 14 2 - - 9 ------- ------- ------- ------- ------- ------- 269 43 6 10 620 297 ------- ------- ------- ------- ------- ------- Non-current Liabilities Postretirement benefits 29 12 2 - 15 70 Deferred income taxes (82) (225) (1) 2 (17) (79) Gas supply contract obligations - - - - 241 - Liabilities held for sale - - - - (2) 1,220 Price risk management liabilities - - - - 154 - Other (1) 35 - - 42 17 ------- ------- ------- ------- ------- ------- (54) (178) 1 2 433 1,228 ------- ------- ------- ------- ------- ------- Total Stockholders' Equity and Liabilities $ 3,692 $ 1,015 $ 9 $ 14 $ 1,176 $ 2,846 ======= ======= ======= ======= ======= ======= (Continued on Following Page) A-30 CMS ENTERPRISES COMPANY Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) (Continued from Previous Page) CMS Micro- CMS Power Inter- CMS Int'l Vent. CMS Systems/CMS Company Enterprises LLC Capital Dist. Power Eliminations Company Consol. LLC LLC Consol. Capitalization Common Stockholders' Equity Common stock $ - $ - $ - $ (1) $ - Other paid-in-capital 945 29 61 (5,837) 6,158 Currency translation (325) - - 658 (468) Other comprehensive income (loss) (1) - - 109 (111) Retained earnings (38) 16 (36) 1,786 (2,286) ------- ------- ------- ------- ------- 581 45 25 (3,285) 3,293 Long-term debt 60 136 - (153) 179 Non-current capital leases - - - - - ------- ------- ------- ------- ------- 641 181 25 (3,438) 3,472 ------- ------- ------- ------- ------- Minority Interests - - - 9 21 ------- ------- ------- ------- ------- Current Liabilities Current portion of long-term debt 7 - - - 30 Current capital leases - - - - - Notes payable 9 442 - (865) 1 Accounts payable 15 2 1 (13) 209 Accounts payable-related parties - 2 - (93) 34 Accrued interest - - - - 3 Accrued taxes 27 6 (10) 17 (103) Deferred income taxes - - - (13) (10) Liabilities held for sale 41 - - (7) 467 Price risk management liabilities - - - (26) 103 Current portion of gas supply contract obligations - - - - 25 Other 4 1 - - 33 ------- ------- ------- ------- ------- 103 453 (9) (1,000) 792 ------- ------- ------- ------- ------- Non-current Liabilities Postretirement benefits 3 - - - 131 Deferred income taxes (12) - (10) (3) (427) Gas supply contract obligations - - - - 241 Liabilities held for sale 25 - - - 1,243 Price risk management liabilities - - - (17) 137 Other 5 - - - 98 ------- ------- ------- ------- ------- 21 - (10) (20) 1,423 ------- ------- ------- ------- ------- Total Stockholders' Equity and Liabilities $ 765 $ 634 $ 6 $(4,449) $ 5,708 ======= ======= ======= ======= ======= (3) Represents CMS Enterprises Company, CMS Capital Financial Services, Inc., CMS Comercializadora de Energia S.A., CMS Energy South America Company, CMS Energy Asia Private Ltd., CMS Texas LLC and CMS Energy UK Limited consolidated with CMS Generation Company, CMS Land Company, CMS Distributed Power LLC, CMS MicroPower Systems LLC, CMS Capital LLC, CMS Marketing, Services and Trading Company, CMS Gas Transmission Company, CMS International Ventures LLC and CMS Resource Development Company included on the equity method of accounting. A-31 CMS GENERATION COMPANY Consolidating Balance Sheet-Assets December 31, 2002 (In Millions) CMSG Dearborn CMSG CMS CMSG CMSG Grayling Generation Filer City Generation Filer City, Grayling Holdings Operating Operating Company (4) Inc. Company Company LLC Company Plant and Property (At Cost) Independent power production $ 4 $ - $ - $ - $ - $ - Less accumulated depreciation, depletion and amortization 1 - - - - - ---- ---- ---- ---- ---- ---- 3 - - - - - Construction work-in-progress - - - - - - ----- ---- ---- ---- ---- ---- 3 - - - - - ---- ---- ---- ---- ---- ---- Investments Associated companies 746 - - - - - Other 40 24 1 7 - - ---- ---- ---- ---- ---- ---- 786 24 1 7 - - ---- ---- ---- ---- ---- ---- Current Assets Cash and temporary cash investments - - - - - - Accounts/notes receivable - - - - 1 - Accounts/notes receivable-related parties 31 - - 1 4 1 Materials and supplies - - - - - - Generating plant fuel stock - - - - - - Prepayments and other 2 - - - - - ---- ---- ---- ---- ---- ---- 33 - - 1 5 1 ---- ---- ---- ---- ---- ---- Non-current Assets Notes receivable - - - - - - Notes receivable-related parties 7 - - - - - Other 51 - - - - - ---- ---- ---- ---- ---- ---- 58 - - - - - ---- ---- ---- ---- ---- ---- Total Assets $880 $ 24 $ 1 $ 8 $ 5 $ 1 ==== ==== ==== ==== ==== ==== (Continued on Following Page) A-32 CMS GENERATION COMPANY Consolidating Balance Sheet-Assets December 31, 2002 (In Millions) (Continued from Previous Page) Dearborn CMSG Industrial Investment CMSG HYDRA-CO CMSG CMSG Generation Company Michigan Enterprises Holdings Genesee LLC I Consol. Power LLC Inc. Company Company Plant and Property (At Cost) Independent power production $ 86 $ - $ 17 $ - $ - $ - Less accumulated depreciation, and amortization 23 - 9 - - - ---- ---- ---- ---- ---- ---- 63 - 8 - - - Construction work-in-progress - - - - - - ---- ---- ---- ---- ---- ---- 63 - 8 - - - ---- ---- ---- ---- ---- ---- Investments Associated companies - - - - - - Other - 291 - 37 5 - ---- ---- ---- ---- ---- ---- - 291 - 37 5 - ---- ---- ---- ---- ---- ---- Current Assets Cash and temporary cash investments - 5 - - - - Accounts/notes receivable 3 15 - - - - Accounts/notes receivable-related parties 29 106 2 3 1 2 Materials and supplies 5 5 - - - - Generating plant fuel stock - - - - - - Prepayments and other 2 1 - 1 - - ---- ---- ---- ---- ---- ---- 39 132 2 4 1 2 ---- ---- ---- ---- ---- ---- Non-current Assets Notes receivable - 108 - - - - Notes receivable-related parties - 9 - - - - Other - 1 - 1 - - ---- ---- ---- ---- ---- ---- - 118 - 1 - - ---- ---- ---- ---- ---- ---- Total Assets $102 $541 $ 10 $ 42 $ 6 $ 2 ==== ==== ==== ==== ==== ==== (Continued on Following Page) A-33 CMS GENERATION COMPANY Consolidating Balance Sheet-Assets December 31, 2002 (In Millions) (Continued from Previous Page) Taweelah Exeter CMSG A2 CMS Int'l Inter- CMSG Energy Operating Operating Operating Company Company LLC Company Company Company Eliminations Consol. Plant and Property (At Cost) Independent power production $ 50 $ - $ - $ - $ - $ 157 Less accumulated depreciation, depletion and amortization 37 - - - - 70 ------ ------ ------ ------ ------ ------ 13 - - - - 87 Construction work-in-progress - - - - - - ------ ------ ------ ------ ------ ------ 13 - - - - 87 ------ ------ ------ ------ ------ ------ Investments Associated companies - - - - (625) 121 Other - - - - - 405 ------ ------ ------ ------ ------ ------ - - - - (625) 526 ------ ------ ------ ------ ------ ------ Current Assets Cash and temporary cash investments 5 - - 4 - 14 Accounts/notes receivable 1 - - 5 - 25 Accounts/notes receivable-related parties - 5 1 13 (23) 176 Materials and supplies - - - - - 10 Generating plant fuel stock - - - - - - Prepayments and other - - - 3 - 9 ------ ------ ------ ------ ------ ------ 6 5 1 25 (23) 234 ------ ------ ------ ------ ------ ------ Non-current Assets Notes receivable - - - - - 108 Notes receivable-related parties - - - - (9) 7 Other - - - - - 53 ------ ------ ------ ------ ------ ------ - - - - (9) 168 ------ ------ ------ ------ ------ ------ Total Assets $ 19 $ 5 $ 1 $ 25 $ (657) $1,015 ====== ====== ====== ====== ====== ====== (4) Represents CMS Generation Company, CMS Altoona Company, CMSG Chateaugay Company, CMSG Honey Lake Company, CMSG Recycling Company, CMSG Lyonsdale Company, Mid-Michigan Recycling LLC and CMS Centrales Termicas S.A. consolidated with CMSG Investment Company I included on the equity method of accounting. A-34 CMS GENERATION COMPANY Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) CMS CMSG Dearborn CMSG Generation CMSG CMSG CMSG Grayling Generation Filer City Company Honey Lake Filer City, Grayling Holdings Operating Operating (4) Company Inc. Company Company LLC Company Capitalization Common Stockholders' Equity Common stock $ - $ - $ - $ - $ - $ - $ - Other paid-in-capital 2,427 10 6 4 7 4 1 Currency translation (186) - - - - - - Other comprehensive income (loss) (49) - - - (2) - - Retained earnings (1,042) (7) 13 (4) (4) 1 (1) ------ ------ ------ ------ ------ ------ ------ 1,150 3 19 - 1 5 - Long-term debt - - - - - - - Non-current capital leases - - - - - - - ------ ------ ------ ------ ------ ------ ------ 1,150 3 19 - 1 5 - ------ ------ ------ ------ ------ ------ ------ Minority Interests - - - - - - - ------ ------ ------ ------ ------ ------ ------ Current Liabilities Current portion of long-term debt - - - - - - - Current capital leases - - - - - - - Notes payable - - 1 - - - - Accounts payable 4 - - - - - - Accounts payable-related parties 8 - - - - - - Accrued interest - - - - - - - Accrued taxes (79) - - - - - - Other 1 - - - - - - ------ ------ ------ ------ ------ ------ ------ (66) - 1 - - - - ------ ------ ------ ------ ------ ------ ------ Non-current Liabilities Postretirement benefits 8 - - - - - 1 Deferred income taxes (213) (3) 4 1 7 - - Other 1 - - - - - - ------ ------ ------ ------ ------ ------ ------ (204) (3) 4 1 7 - 1 ------ ------ ------ ------ ------ ------ ------ Total Stockholders' Equity and Liabilities $ 880 $ - $ 24 $ 1 $ 8 $ 5 $ 1 ====== ====== ====== ====== ====== ====== ====== (Continued on Following Page) A-35 CMS GENERATION COMPANY Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) (Continued from Previous Page) Dearborn Mid- CMSG Industrial CMSG CMSG Michigan Investment CMSG HYDRA-CO Generation Altoona Recycling Recycling Company Michigan Enterprise LLC Company Company LLC I Consol. Power LLC Inc. Capitalization Common Stockholders' Equity Common stock $ - $ - $ - $ - $ - $ - $ - Other paid-in-capital 562 (6) 3 4 807 75 195 Currency translation - - - - (168) - - Other comprehensive income (loss) - - - - (43) - - Retained earnings (535) 6 (2) (4) (123) (66) (163) ------ ------ ------ ------ ------ ------ ------ 27 - 1 - 473 9 32 Long-term debt - - - - 9 - 1 Non-current capital leases - - - - - - - ------ ------ ------ ------ ------ ------ ------ 27 - 1 - 482 9 33 ------ ------ ------ ------ ------ ------ ------ Minority Interests - - - - 11 - - ------ ------ ------ ------ ------ ------ ------ Current Liabilities Current portion of long-term debt - - - - - - - Current capital leases - - - - - - - Notes payable 14 - - - 13 - 1 Accounts payable 1 - - - 3 - - Accounts payable-related parties 24 - - - 14 - - Accrued interest - - - - - - 2 Accrued taxes - - - - 4 1 6 Other 11 - - - 2 - - ------ ------ ------ ------ ------ ------ ------ 50 - - - 36 1 9 ------ ------ ------ ------ ------ ------ ------ Non-current Liabilities Postretirement benefits - - - - - - - Deferred income taxes - - (1) - 8 - (5) Other 25 - - - 4 - 5 ------ ------ ------ ------ ------ ------ ------ 25 - (1) - 12 - - ------ ------ ------ ------ ------ ------ ------ Total Stockholders' Equity and Liabilities $ 102 $ - $ - $ - $ 541 $ 10 $ 42 ====== ====== ====== ====== ====== ====== ====== (Continued on Following Page) A-36 CMS GENERATION COMPANY Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) (Continued from Previous Page) Taweelah CMSG CMSG Exeter CMSG A2 Holdings Genesee Energy Operating Operating Company Company LLC Company Company Capitalization Common Stockholders' Equity Common stock $ - $ - $ - $ 1 $ - Other paid-in-capital 16 - (13) 3 - Currency translation - - - - - Other comprehensive income (loss) - - - (1) - Retained earnings (13) - 31 (1) 1 ------ ------ ------ ------ ------ 3 - 18 2 1 Long-term debt - - - - - Non-current capital leases - - - - - ------ ------ ------ ------ ------ 3 - 18 2 1 ------ ------ ------ ------ ------ Minority Interests - - - - - ------ ------ ------ ------ ------ Current Liabilities Current portion of long-term debt - - - - - Current capital leases - - - - - Notes payable - - - - - Accounts payable - - - - - Accounts payable-related parties - - 1 - - Accrued interest - - - - - Accrued taxes - - - 1 - Other - - - - - ------ ------ ------ ------ ------ - - 1 1 - ------ ------ ------ ------ ------ Non-current Liabilities Postretirement benefits - - - 3 - Deferred income taxes 3 2 - (1) - Other - - - - - ------ ------ ------ ------ ------ 3 2 - 2 - ------ ------ ------ ------ ------ Total Stockholders' Equity and Liabilities $ 6 $ 2 $ 19 $ 5 $ 1 ====== ====== ====== ====== ====== (Continued on Following Page) A-37 CMS GENERATION COMPANY Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) (Continued from Previous Page) CMS Int'l Inter- CMSG Operating Company Company Company Eliminations Consol. Capitalization Common Stockholders' Equity Common stock $ - $ (1) $ - Other paid-in-capital 3 (1,725) 2,383 Currency translation (1) 169 (186) Other comprehensive income (loss) - 46 (49) Retained earnings 17 886 (1,010) ------ ------ ------ 19 (625) 1,138 Long-term debt - (9) 1 Non-current capital leases - - - ------ ------ ------ 19 (634) 1,139 ------ ------ ------ Minority Interests - - 11 ------ ------ ------ Current Liabilities Current portion of long-term debt - - - Current capital leases - - - Notes payable - (10) 19 Accounts payable - - 8 Accounts payable-related parties 2 (13) 36 Accrued interest - - 2 Accrued taxes 4 27 (36) Other - - 14 ------ ------ ------ 6 4 43 ------ ------ ------ Non-current Liabilities Postretirement benefits - - 12 Deferred income taxes - (27) (225) Other - - 35 ------ ------ ------ - (27) (178) ------ ------ ------ Total Stockholders' Equity and Liabilities $ 25 $ (657) $ 1,015 ====== ====== ====== (4) Represents CMS Generation Company, CMSG Lyonsdale Company, CMSG Montreal Company, CMSG Chateaugay Company and CMS Centrales Termicas S.A. consolidated with CMSG Investment Company I included on the equity method of accounting. A-38 CMS GENERATION INVESTMENT COMPANY I Consolidating Balance Sheet - Assets December 31, 2002 (In Millions) CMSG CMSG CMSG Loy Yang CMSG CMSG CMSG Inter- Investment Investment Holdings Investment Investment Investment Company Company I Co. I (5) I & II, Ltd. Co. IV Co. VI Co. VII Eliminations Consol. Plant and Property (At Cost) Independent power production $ - $ - $ - $ - $ - $ - $ - Less accumulated depreciation, depletion and amortization - - - - - - - -------- -------- -------- -------- ------- ------ ------- - - - - - - - Construction work-in-progress - - - - - - - -------- -------- -------- -------- ------- ------ ------- - - - - - - - -------- -------- -------- -------- ------- ------ ------- Investments Associated companies 88 - - - - (88) - Other - - 240 - 51 - 291 -------- -------- -------- -------- ------- ------ ------- 88 - 240 - 51 (88) 291 -------- -------- -------- -------- ------- ------ ------- Current Assets Cash and temporary cash investments - - 1 4 - - 5 Accounts/notes receivable - - - 15 - - 15 Accounts/notes receivable-related parties 329 8 87 40 - (358) 106 Materials and supplies - - - 5 - - 5 Prepayments and other - - - 1 - - 1 -------- -------- -------- -------- ------- ------ ------- 329 8 88 65 - (358) 132 -------- -------- -------- -------- ------- ------ ------- Non-current Assets Notes receivable - - - 108 - - 108 Notes receivable-related parties 60 - - - 9 (60) 9 Other 1 - - - - - 1 -------- -------- -------- -------- ------- ------ ------- 61 - - 108 9 (60) 118 -------- -------- -------- -------- ------- ------ ------- Total Assets $ 478 $ 8 $ 328 $ 173 $ 60 $ (506) $ 541 ======== ======== ======== ======== ======= ====== ======= (5) Represents CMSG Investment Company I and CMSG Pinamucan LDC consolidated. A-39 CMS GENERATION INVESTMENT COMPANY I Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) CMSG CMSG CMSG Loy Yang CMSG CMSG CMSG Investment Cebu Holdings Pinamucan Investment Investment Co. I (5) LDC I & II Ltd. LDC Co. IV Co. VI Capitalization Common Stockholders' Equity Common stock $ - $ 3 $ - $ - $ - $ - Other paid-in-capital 807 (4) 283 3 3 99 Currency translation (168) - (168) - - - Other comprehensive income (loss) (43) - - - (11) - Retained earnings (123) 1 (435) (3) 274 44 -------- --------- -------- -------- ------- ------- 473 - (320) - 266 143 Long-term debt - - - - 9 - Non-current capital leases - - - - - - -------- --------- -------- -------- ------- ------- 473 - (320) - 275 143 -------- --------- -------- -------- ------- ------- Minority Interests - - - - - 11 -------- --------- -------- -------- ------- ------- Current Liabilities Current portion of long-term debt - - - - - - Current capital leases - - - - - - Notes payable - - 316 - 52 - Accounts payable - - - - - 3 Accounts payable-related parties 4 - 13 - - - Accrued interest - - - - - - Accrued taxes 1 - (1) - - 4 Other - - - - - 2 -------- --------- -------- -------- ------- ------- 5 - 328 - 52 9 -------- --------- -------- -------- ------- ------- Non-current Liabilities Postretirement benefits - - - - - - Deferred income taxes - - - - - 8 Other - - - - 1 2 -------- --------- -------- -------- ------- ------- - - - - 1 10 -------- --------- -------- -------- ------- ------- Total Stockholders' Equity and Liabilities $ 478 $ - $ 8 $ - $ 328 $ 173 ======== ========= ======== ======== ======= ======= (Continued on Following Page) A-40 CMS GENERATION INVESTMENT COMPANY I Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) (Continued from Previous Page) CMSG CMSG Investment Inter- Investment Company Company Company I VII Eliminations Consol. Capitalization Common Stockholders' Equity Common stock $ - $ (3) $ - Other paid-in-capital 14 (398) 807 Currency translation - 168 (168) Other comprehensive income (loss) (32) 43 (43) Retained earnings 17 102 (123) -------- -------- --------- (1) (88) 473 Long-term debt 60 (60) 9 Non-current capital leases - - - -------- -------- --------- 59 (148) 482 -------- -------- --------- Minority Interests - - 11 -------- -------- --------- Current Liabilities Current portion of long-term debt - - - Current capital leases - - - Notes payable - (355) 13 Accounts payable - - 3 Accounts payable-related parties - (3) 14 Accrued interest - - - Accrued taxes - - 4 Other - - 2 -------- -------- --------- - (358) 36 -------- -------- --------- Non-current Liabilities Postretirement benefits - - - Deferred income taxes - - 8 Other 1 - 4 -------- -------- --------- 1 - 12 -------- -------- --------- Total Stockholders' Equity and Liabilities $ 60 $ (506) $ 541 ======== ======== ========= (5) Represents CMSG Investment Company I consolidated. A-41 CMS GAS TRANSMISSION COMPANY Consolidating Balance Sheet - Assets December 31, 2002 (In Millions) CMS Bay CMS CMS Gas CMS Area CMS Gas Jackson Transmission Antrim Pipeline Argentina Pipeline Company (6) LLC LLC Company Company Plant and Property (At Cost) Natural gas transmission $ - $ 54 $ 24 $ - $ 10 Other - - - - - ------ ------ ------ ------ ------ - 54 24 - 10 Less accumulated depreciation, depletion and amortization - 21 3 - 3 ------ ------ ------ ------ ------ - 33 21 - 7 Construction work-in-progress - - - - - ------ ------ ------ ------ ------ - 33 21 - 7 ------ ------ ------ ------ ------ Investments Associated companies 1,194 - - - - Other 15 - - - - ------ ------ ------ ------ ------ 1,209 - - - - ------ ------ ------ ------ ------ Current Assets Cash and temporary cash investments - - - - 1 Accounts/notes receivable 2 1 - - - Accounts/notes receivable-related parties 5 2 2 8 - Gas in underground storage 2 - - - - Materials and supplies - 1 - - - Assets held for sale - - - - - Prepayments and other - - - - - ------ ------ ------ ------ ------ 9 4 2 8 1 ------ ------ ------ ------ ------ Non-current Assets Notes receivable 18 - - - - Notes receivable-related parties - - - - - Assets held for sale - - - - - Other 3 - - - 1 ------ ------ ------ ------ ------ 21 - - - 1 ------ ------ ------ ------ ------ Total Assets $1,239 $ 37 $ 23 $ 8 $ 9 ====== ====== ====== ====== ====== (Continued on Following Page) A-42 CMS GAS TRANSMISSION COMPANY Consolidating Balance Sheet - Assets December 31, 2002 (In Millions) (Continued from Previous Page) CMS Panhandle CMS Field Marysville Eastern Pipe Services CMS Inter- CMS Gas Gas Liquids Line Co. Inc., Grand Lacs Company Trans. Co. Company Consol. Consol. LLC Eliminations Consol. Plant and Property (At Cost) Natural gas transmission $ 46 $ - $ - $ 32 $ - $ 166 Other - - - - - - ------ ------ ------ ------ ------ ------ 46 - - 32 - 166 Less accumulated depreciation, depletion and amortization 43 - - 11 - 81 ------ ------ ------ ------ ------ ------ 3 - - 21 - 85 Construction work-in-progress 1 - - - - 1 ------ ------ ------ ------ ------ ------ 4 - - 21 - 86 ------ ------ ------ ------ ------ ------ Investments Associated companies - - - - (979) 215 Other 5 - - - - 20 ------ ------ ------ ------ ------ ------ 5 - - - (979) 235 ------ ------ ------ ------ ------ ------ Current Assets Cash and temporary cash investments - - - - - 1 Accounts/notes receivable 2 - - 1 - 6 Accounts/notes receivable-related parties 2 64 22 1 (5) 101 Gas in underground storage - - - - - 2 Materials and supplies - - - - - 1 Assets held for sale - 278 69 - - 347 Prepayments and other 1 - - - - 1 ------ ------ ------ ------ ------ ------ 5 342 91 2 (5) 459 ------ ------ ------ ------ ------ ------ Non-current Assets Notes receivable - - - - - 18 Notes receivable-related parties - - - - - - Assets held for sale - 1,845 190 - - 2,035 Other 4 5 - - - 13 ------ ------ ------ ------ ------ ------ 4 1,850 190 - - 2,066 ------ ------ ------ ------ ------ ------ Total Assets $ 18 $2,192 $ 281 $ 23 $(984) $2,846 ====== ====== ====== ====== ====== ====== (6) Represents CMS Gas Transmission Company and CMS Saginaw Bay Lateral Company consolidated with CMS Field Services, Inc. and Panhandle Eastern Pipe Line Company included on the equity method of accounting. A-43 CMS GAS TRANSMISSION COMPANY Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) CMS CMS Bay Saginaw CMS CMS CMS Gas CMS Area Bay CMS Gas Jackson Marysville Transmission Antrim Pipeline Lateral Argentina Pipeline Gas Liquids Company(6) LLC LLC Company Company Company Company Capitalization Common Stockholders' Equity Common stock $ - $ - $ - $ - $ 4 $ - $ - Other paid-in-capital 2,073 - 23 3 164 2 32 Currency translation (146) - - - (211) - - Other comprehensive income (loss) (45) - - - - - (1) Retained earnings (562) 3 (4) (3) 51 - (12) ------ ------ ------ ------ ------ ------ ------ 1,320 3 19 - 8 2 19 Long-term debt - - - - - 3 - Non-current capital leases - - - - - - - ------ ------ ------ ------ ------ ------ ------ 1,320 3 19 - 8 5 19 ------ ------ ------ ------ ------ ------ ------ Minority Interests - - - - - 1 - ------ ------ ------ ------ ------ ------ ------ Current Liabilities Current portion of long-term debt - 23 - - - - - Current capital leases - - - - - - - Notes payable 6 - - - - - - Accounts payable - 1 - - - 1 - Accounts payable-related parties 4 1 1 - - - 1 Accrued interest - - - - - - - Accrued taxes (46) 1 1 - - - 1 Deferred income taxes - - - - - - - Liabilities held for sale - - - - - - - Other 8 1 - - - - - ------ ------ ------ ------ ------ ------ ------ (28) 27 2 - - 1 2 ------ ------ ------ ------ ------ ------ ------ Non-current Liabilities Postretirement benefits 1 - - - - - 1 Deferred income taxes (70) 7 2 - - 1 (4) Liabilities held for sale - - - - - - - Other 16 - - - - 1 - ------ ------ ------ ------ ------ ------ ------ (53) 7 2 - - 2 (3) ------ ------ ------ ------ ------ ------ ------ Total Stockholders' Equity and Liabilities $1,239 $ 37 $ 23 $ - $ 8 $ 9 $ 18 ====== ====== ====== ====== ====== ====== ====== (Continued on Following Page) A-44 CMS GAS TRANSMISSION COMPANY Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) (Continued from Previous Page) Panhandle CMS Eastern Pipe CMS Field Tristate Grand Inter- CMS Gas Line Co. Services Inc. Pipeline Lacs Company Trans. Co. Consol. Consol. LLC LLC Eliminations Consol. Capitalization Common Stockholders' Equity Common stock $ 1 $ - $ - $ - $ (5) $ - Other paid-in-capital 1,124 229 6 30 (1,613) 2,073 Currency translation - - - - 211 (146) Other comprehensive income (loss) (32) (4) - - 37 (45) Retained earnings (341) (72) (6) (10) 391 (565) ------ ------ ------ ------ ------ ------ 752 153 - 20 (979) 1,317 Long-term debt - - - - - 3 Non-current capital leases - - - - - - ------ ------ ------ ------ ------ ------ 752 153 - 20 (979) 1,320 ------ ------ ------ ------ ------ ------ Minority Interests - - - - - 1 ------ ------ ------ ------ ------ ------ Current Liabilities Current portion of long-term debt - - - - - 23 Current capital leases - - - - - - Notes payable - 8 - - - 14 Accounts payable - - - - - 2 Accounts payable-related parties 5 4 - 1 (5) 12 Accrued interest - - - - - - Accrued taxes - (9) - 1 19 (32) Deferred income taxes - - - - - - Liabilities held for sale 190 79 - - - 269 Other - - - - - 9 ------ ------ ------ ------ ------ ------ 195 82 - 2 14 297 ------ ------ ------ ------ ------ ------ Non-current Liabilities Postretirement benefits 62 6 - - - 70 Deferred income taxes (40) 43 - 1 (19) (79) Liabilities held for sale 1,223 (3) - - - 1,220 Other - - - - - 17 ------ ------ ------ ------ ------ ------ 1,245 46 - 1 (19) 1,228 ------ ------ ------ ------ ------ ------ Total Stockholders' Equity and Liabilities $2,192 $ 281 $ - $ 23 $ (984) $2,846 ====== ====== ====== ====== ====== ====== (6) Represents CMS Gas Transmission Company consolidated with CMS Field Services, Inc. and Panhandle Eastern Pipe Line Company included on the equity method of accounting. A-45 PANHANDLE EASTERN PIPE LINE COMPANY Consolidating Balance Sheet - Assets December 31, 2002 (In Millions) CMS Panhandle CMS Trunkline CMS PEPL Panhandle Eastern Pipe Trunkline LNG Pan Gas Inter- Consol. Eastern Pipe Line Co. Gas Co. Holdings Storage Company (before Disc. Disc. Line Co. Consol. (7) LLC (8) Co. LLC Co. Eliminations Oper.) Oper. Consol. Plant and Property (At Cost) Natural gas transmission $ 776 $ 751 $ 43 $ 195 $ - $1,765 $(1,765) $ - Other - - - - - - - - ------ ------ ------ ------ ------ ------ ------- ------ 776 751 43 195 - 1,765 (1,765) - Less accumulated depreciation, depletion and amortization 72 101 3 12 - 188 (188) - ------ ------ ------ ------ ------ ------ ------- ------ 704 650 40 183 - 1,577 (1,577) - Construction work-in-progress 27 6 10 1 - 44 (44) - ------ ------ ------ ------ ------ ------ ------- ------ 731 656 50 184 - 1,621 (1,621) - ------ ------ ------ ------ ------ ------ ------- ------ Investments Associated companies 959 - - - (959) - - - Other 68 - - - - 68 (68) - ------ ------ ------ ------ ------ ------ ------- ------ 1,027 - - - (959) 68 (68) - ------ ------ ------ ------ ------ ------ ------- ------ Current Assets Cash and temporary cash investments 71 - 10 - - 81 (81) - Accounts/notes receivable 34 13 5 4 (6) 50 (50) - Accounts/notes receivable-related parties 69 - 9 - (9) 69 (5) 64 Gas in underground storage - - - - - - - - Materials and supplies 16 23 2 - - 41 (41) - Assets held for sale - - - - - - 278 278 Prepayments and other 109 17 6 - (31) 101 (101) - ------ ------ ------ ------ ------ ------ ------- ------ 299 53 32 4 (46) 342 - 342 ------ ------ ------ ------ ------ ------ ------- ------ Non-current Assets Notes receivable-related parties 70 111 53 68 (302) - - - Assets held for sale - - - - - - 1,845 1,845 Other 106 13 25 17 - 161 (156) 5 ------ ------ ------ ------ ------ ------ ------- ------ 176 124 78 85 (302) 161 1,689 1,850 ------ ------ ------ ------ ------ ------ ------- ------ Total Assets $2,233 $ 833 $ 160 $ 273 ($1,307) $2,192 $ - $2,192 ====== ====== ====== ====== ====== ====== ======= ====== (7) Represents Panhandle Eastern Pipe Line Company, CMS Panhandle Eastern Resources, Inc., CMS Panhandle Storage Company, CMS Trunkline Field Services Company, MG Ventures Storage, Inc., CMS Panhandle Lake Charles Generation Company LLC, CMS Panhandle LNG Acquisition Company, Panhandle Partner LLC and CMS Panhandle Holdings, LLC consolidated. (8) Represents CMS Trunkline Gas Company LLC, CMS Trunkline Gas Resources LLC, CMS Trunkline Offshore Pipeline Company LLC, CMS Trunkline Deepwater Pipeline Company LLC and Sea Robin Pipeline Company consolidated. A-46 PANHANDLE EASTERN PIPE LINE COMPANY Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) CMS Panhandle CMS Trunkline CMS PEPL Panhandle Eastern Pipe Trunkline LNG Pan Gas Inter- Consol. Eastern Pipe Line Co. Gas Co. Holdings Storage Company (before Disc. Disc. Line Co. Consol. (7) LLC (8) Co. LLC Co. Eliminations Oper.) Oper. Consol. Capitalization Common Stockholders' Equity Common stock $ 1 $ - $ - $ - $ - $ 1 $ - $ 1 Other paid-in-capital 1,532 386 (162) 295 (927) 1,124 - 1,124 Other comprehensive income (loss) (32) - - - - (32) - (32) Retained earnings (326) 93 2 (35) (75) (341) - (341) ------ ------ ------ ------ ------ ------ ------ ------ 1,175 479 (160) 260 (1,002) 752 - 752 Long-term debt 943 100 277 - (170) 1,150 (1,150) - Non-current capital leases - - - - - - - - ------ ------ ------ ------ ------ ------ ------ ------ 2,118 579 117 260 (1,172) 1,902 (1,150) 752 ------ ------ ------ ------ ------ ------ ------ ------ Current Liabilities Current portion of long-term debt - - - - - - - - Current capital leases - - - - - - - - Notes payable 30 100 12 - (100) 42 (42) - Accounts payable 5 3 1 - - 9 (9) - Accounts payable-related parties 12 1 - - (5) 8 (3) 5 Accrued interest 23 - 2 - - 25 (25) - Accrued taxes 15 (10) - 6 - 11 (11) - Liabilities held for sale - - - - - - 190 190 Other 82 41 6 1 (30) 100 (100) - ------ ------ ------ ------ ------ ------ ------ ------ 167 135 21 7 (135) 195 - 195 ------ ------ ------ ------ ------ ------ ------ ------ Non-current Liabilities Postretirement benefits 7 - - - - 7 55 62 Deferred income taxes (95) 48 1 6 - (40) - (40) Liabilities held for sale - - - - - - 1,223 1,223 Other 36 71 21 - - 128 (128) - ------ ------ ------ ------ ------ ------ ------ ------ (52) 119 22 6 - 95 1,150 1,245 ------ ------ ------ ------ ------ ------ ------ ------ Total Stockholders' Equity and Liabilities $2,233 $ 833 $ 160 $ 273 ($1,307) $2,192 $ - $2,192 ====== ====== ====== ====== ====== ====== ====== ====== (7) Represents Panhandle Eastern Pipe Line Company, CMS Panhandle Eastern Resources, Inc., CMS Panhandle Storage Company, CMS Trunkline Field Services Company, MG Ventures Storage, Inc., CMS Panhandle Lake Charles Generation Company LLC, CMS Panhandle LNG Acquisition Company, Panhandle Partner LLC and CMS Panhandle Holdings, LLC consolidated. (8) Represents CMS Trunkline Gas Company LLC, CMS Trunkline Gas Resources LLC, CMS Trunkline Offshore Pipeline Company LLC, CMS Trunkline Deepwater Pipeline Company LLC and Sea Robin Pipeline Company consolidated. A-47 CMS FIELD SERVICES, INC. Consolidating Balance Sheet - Assets December 31, 2002 (In Millions) CMS CMS/Okla. CMS Bighorn CMS Natural CMS Field Natural Gas Taurus Gas CMS Gas Laverne Gas Services Gathering Holdings Gathering Processing Gas Proc. Gathering Inc. (9) LLC Co. LLC LLC LLC LLC LLC Plant and Property (At Cost) Natural gas transmission $ 9 $ 3 $ 56 $ 91 $ 66 $ 1 $ 76 Other - - - - - - - ------ ------ ------ ------ ------ ------ ------ 9 3 56 91 66 1 76 Less accumulated depreciation, depletion and amortization 5 - 11 7 12 - 15 ------ ------ ------ ------ ------ ------ ------ 4 3 45 84 54 1 61 Construction work-in-progress - - 1 3 - - - ------ ------ ------ ------ ------ ------ ------ 4 3 46 87 54 1 61 ------ ------ ------ ------ ------ ------ ------ Investments Associated companies 251 - - - - - - Other 5 - - - - - - ------ ------ ------ ------ ------ ------ ------ 256 - - - - - - ------ ------ ------ ------ ------ ------ ------ Current Assets Cash and temporary cash investments (4) - - 6 - - - Accounts/notes receivable 30 - - 2 8 - - Accounts/notes receivable-related parties 42 - - - - - (2) Gas in underground storage - - - - - - - Materials and supplies 4 - - - - - - Assets held for sale - - - - - - - Prepayments and other 4 - - - - - - ------ ------ ------ ------ ------ ------ ------ 76 - - 8 8 - (2) ------ ------ ------ ------ ------ ------ ------ Non-current Assets Notes receivable - - - - - - - Assets held for sale - - - - - - - Other 3 - - - - - - ------ ------ ------ ------ ------ ------ ------ 3 - - - - - - ------ ------ ------ ------ ------ ------ ------ Total Assets $ 339 $ 3 $ 46 $ 95 $ 62 $ 1 $ 59 ====== ====== ====== ====== ====== ====== ====== (Continued on Following Page) A-48 CMS FIELD SERVICES, INC. Consolidating Balance Sheet - Assets December 31, 2002 (In Millions) (Continued from Previous Page) CMS CMS CMS FS CMS Field Cherokee Bradshaw CMS Gulf Hydro- Inter- Consol. Services Gas Proc. Energy Coast Field carbons Company (before Disc. Disc. Inc. LLC LLC Services LLC LLC Eliminations Oper.) Oper. Consol. Plant and Property (At Cost) Natural gas transmission $ 49 $ 12 $ 40 $ 4 $ - $ 407 $ (407) $ - Other - - - - - - - - ------ ------ ------ ------ ------ ------ ------ ------ 49 12 40 4 - 407 (407) - Less accumulated depreciation, depletion and amortization 11 2 6 - - 69 (69) - ------ ------ ------ ------ ------ ------ ------ ------ 38 10 34 4 - 338 (338) - Construction work-in-progress 1 - - - - 5 (5) - ------ ------ ------ ------ ------ ------ ------ ------ 39 10 34 4 - 343 (343) - ------ ------ ------ ------ ------ ------ ------ ------ Investments Associated companies - - - - (251) - - - Other - - 3 - - 8 (8) - ------ ------ ------ ------ ------ ------ ------ ------ - - 3 - (251) 8 (8) - ------ ------ ------ ------ ------ ------ ------ ------ Current Assets Cash and temporary cash investments (2) 1 - - - 1 (1) Accounts/notes receivable 2 - - - - 42 (42) - Accounts/notes receivable-related parties - - - - - 40 (18) 22 Gas in underground storage - - - - - - - - Materials and supplies - - - - - 4 (4) - Assets held for sale - - - - - - 69 69 Prepayments and other - - - - - 4 (4) - ------ ------ ------ ------ ------ ------ ------ ------ - 1 - - - 91 - 91 ------ ------ ------ ------ ------ ------ ------ ------ Non-current Assets Notes receivable - - - - - - - - Assets held for sale - - - - - - 190 190 Other - - - - - 3 (3) - ------ ------ ------ ------ ------ ------ ------ ------ - - - - - 3 187 190 ------ ------ ------ ------ ------ ------ ------ ------ Total Assets $ 39 $ 11 $ 37 $ 4 $ (251) $ 445 $ (164) $ 281 ====== ====== ====== ====== ====== ====== ====== ====== (9) Represents CMS Field Services, Inc. consolidated. A-49 CMS FIELD SERVICES, INC. Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) CMS/Okla. CMS Bighorn CMS CMS CMS Field Natural Gas Taurus Gas CMS Gas Laverne Natural Gas Services Inc. Gathering Holdings Gathering Processing Gas Proc. Gathering (9) LLC Co. LLC LLC LLC LLC LLC Capitalization Common Stockholders' Equity Common stock $ - $ - $ - $ - $ - $ - $ - Other paid-in-capital 229 2 39 84 51 - 64 Other comprehensive income (loss) (4) - - - - - - Retained earnings 13 1 5 9 (6) 1 (7) ------ ------ ------ ------ ------ ------ ------ 238 3 44 93 45 1 57 Long-term debt - - - - - - - Non-current capital leases - - - - - - - ------ ------ ------ ------ ------ ------ ------ 238 3 44 93 45 1 57 ------ ------ ------ ------ ------ ------ ------ Minority Interests - - - - - - - ------ ------ ------ ------ ------ ------ ------ Current Liabilities Current portion of long-term debt - - - - - - - Current capital leases 1 - - - - - - Notes payable 1 - - - 6 - - Accounts payable 37 - 2 2 11 - 2 Accounts payable-related parties 8 - - - - - - Accrued interest - - - - - - - Accrued taxes (10) - - - - - - Liabilities held for sale - - - - - - - Other 14 - - - - - - ------ ------ ------ ------ ------ ------ ------ 51 - 2 2 17 - 2 ------ ------ ------ ------ ------ ------ ------ Non-current Liabilities Postretirement benefits 7 - - - - - - Deferred income taxes 43 - - - - - - Liabilities held for sale - - - - - - - Other - - - - - - - ------ ------ ------ ------ ------ ------ ------ 50 - - - - - - ------ ------ ------ ------ ------ ------ ------ Total Stockholders' Equity and Liabilities $ 339 $ 3 $ 46 $ 95 $ 62 $ 1 $ 59 ====== ====== ====== ====== ====== ====== ====== (Continued on Following Page) A-50 CMS FIELD SERVICES, INC. Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) (Continued from Previous Page) CMS CMS Gulf CMS CMS FS CMS Field Cherokee Bradshaw Coast Field Hydro- Inter- Consol. Services Gas Proc. Energy Services carbons Company before Disc. Disc. Inc. LLC LLC LLC LLC Eliminations Oper.) Oper. Consol. Capitalization Common Stockholders' Equity Common stock $ - $ - $ - $ - $ - $ - $ - $ - Other paid-in-capital 17 8 23 4 (292) 229 - 229 Other comprehensive income (loss) - - - - - (4) - (4) Retained earnings 19 2 11 - (4) 44 (116) (72) ------ ------ ------ ------ ------ ------ ------ ------ 36 10 34 4 (296) 269 (116) 153 Long-term debt - - - - - - - - Non-current capital leases - - - - - - - - ------ ------ ------ ------ ------ ------ ------ ------ 36 10 34 4 (296) 269 (116) 153 ------ ------ ------ ------ ------ ------ ------ ------ Minority Interests - - - - 45 45 (45) - ------ ------ ------ ------ ------ ------ ------ ------ Current Liabilities Current portion of long-term debt - - - - - - - - Current capital leases - - - - - 1 (1) - Notes payable - - 1 - - 8 - 8 Accounts payable 2 1 1 - - 58 (58) - Accounts payable-related parties - - 1 - - 9 (5) 4 Accrued interest - - - - - - - - Accrued taxes 1 - - - - (9) - (9) Liabilities held for sale - - - - - - 79 79 Other - - - - - 14 (14) - ------ ------ ------ ------ ------ ------ ------ ------ 3 1 3 - - 81 1 82 ------ ------ ------ ------ ------ ------ ------ ------ Non-current Liabilities Postretirement benefits - - - - - 7 (1) 6 Deferred income taxes - - - - - 43 - 43 Liabilities held for sale - - - - - - (3) (3) Other - - - - - - - - ------ ------ ------ ------ ------ ------ ------ ------ - - - - - 50 (4) 46 ------ ------ ------ ------ ------ ------ ------ ------ Total Stockholders' Equity and Liabilities $ 39 $ 11 $ 37 $ 4 $ (251) $ 445 $ (164) $ 281 ====== ====== ====== ====== ====== ====== ====== ====== (9) Represents CMS Field Services, Inc. consolidated. A-51 CMS INTERNATIONAL VENTURES LLC Consolidating Balance Sheet - Assets December 31, 2002 (In Millions) CMS CMS Operating CMSG CMS Western CMSG Int'l Ventures SRL Investment E&G Australia Investment LLC (10) Consol. Co. III LLC GT Co. I Co. V Plant and Property (At Cost) Natural gas transmission $ - $ - $ - $ - $ 46 $ - Independent power production - 94 - - - - Other - - - - - - ------ ------ ------ ------ ------ ------ - 94 - - 46 - Less accumulated depreciation, depletion and amortization - 26 - - 10 - ------ ------ ------ ------ ------ ------ - 68 - - 36 - Construction work-in-progress - - - - - - ------ ------ ------ ------ ------ ------ - 68 - - 36 - ------ ------ ------ ------ ------ ------ Investments Associated companies 576 - - - - 60 Independent power production - - 78 - - 23 Natural gas transmission - 6 - - 211 - Other - - - - - - ------ ------ ------ ------ ------ ------ 576 6 78 - 211 83 ------ ------ ------ ------ ------ ------ Current Assets Cash and temporary cash investments - 17 6 1 6 1 Accounts/notes receivable - 13 1 1 1 - Accounts/notes receivable-related parties 4 20 3 3 68 1 Materials and supplies - 6 - - 1 - Assets held for sale - - - 59 - - Prepayments and other - 2 3 - - - ------ ------ ------ ------ ------ ------ 4 58 13 64 76 2 ------ ------ ------ ------ ------ ------ Non-current Assets Notes receivable-related parties - 21 7 - - - Assets held for sale - - - 46 - - Other 45 24 3 - 2 - ------ ------ ------ ------ ------ ------ 45 45 10 46 2 - ------ ------ ------ ------ ------ ------ Total Assets $ 625 $ 177 $ 101 $ 110 $ 325 $ 85 ====== ====== ====== ====== ====== ====== (Continued on Following Page) A-52 CMS INTERNATIONAL VENTURES LLC Consolidating Balance Sheet - Assets December 31, 2002 (In Millions) (Continued from Previous Page) CMS Int'l Inter- Ventures Company LLC Eliminations Consol. Plant and Property (At Cost) Natural gas transmission $ - $ 46 Independent power production - 94 Other - - ------ ------ - 140 Less accumulated depreciation, depletion and amortization - 36 ------ ------ - 104 Construction work-in-progress - - ------ ------ - 104 ------ ------ Investments Associated companies (636) - Independent power production - 101 Natural gas transmission - 217 Other - - ------ ------ (636) 318 ------ ------ Current Assets Cash and temporary cash investments - 31 Accounts/notes receivable - 16 Accounts/notes receivable-related party (19) 80 Materials and supplies - 7 Assets held for sale - 59 Prepayments and other - 5 ------ ------ (19) 198 ------ ------ Non-current Assets Notes receivable-related parties - 28 Assets held for sale - 46 Other (3) 71 ------ ------ (3) 145 ------ ------ Total Assets $ (658) $ 765 ====== ====== (10) Represents CMS International Ventures LLC and CMS Generation SRL consolidated. A-53 CMS INTERNATIONAL VENTURES LLC Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) CMS CMS Operating CMSG CMS Western CMS CMSG Int'l Ventures SRL Investment E&G Australia Generation Investment LLC (10) Consol. Co. III LLC GT Co. I SRL Co. V Capitalization Common Stockholders' Equity Common stock $ - $ 36 $ - $ - $ 235 $ - $ - Other paid-in-capital 989 231 81 458 5 42 84 Currency translation (325) (179) (5) (106) (23) (12) - Other comprehensive income (loss) (1) - - - (1) - - Retained earnings (38) (4) 17 (321) 23 (30) 1 ------ ------ ------ ------ ------ ------ ------ 625 84 93 31 239 - 85 Long-term debt - 60 - - - - - Non-current capital leases - - - - - - - ------ ------ ------ ------ ------ ------ ------ 625 144 93 31 239 - 85 ------ ------ ------ ------ ------ ------ ------ Minority Interests - - - - 60 - - ------ ------ ------ ------ ------ ------ ------ Current Liabilities Current portion of long-term debt - 7 - - - - - Current capital leases - - - - - - - Notes payable - - 8 1 20 - - Accounts payable - 10 - 4 2 - - Accrued interest - - - - - - - Accrued taxes - 8 - 19 - - - Liabilities held for sale - - - 41 - - - Other - 3 - - 1 - - ------ ------ ------ ------ ------ ------ ------ - 28 8 65 23 - - ------ ------ ------ ------ ------ ------ ------ Non-current Liabilities Postretirement benefits - - - 3 - - - Deferred income taxes - - - (15) 3 - - Liabilities held for sale - - - 25 - - - Other - 5 - 1 - - - ------ ------ ------ ------ ------ ------ ------ - 5 - 14 3 - - ------ ------ ------ ------ ------ ------ ------ Total Stockholders' Equity and Liabilities $ 625 $ 177 $ 101 $ 110 $ 325 $ - $ 85 ====== ====== ====== ====== ====== ====== ====== (Continued on Following Page) A-54 CMS INTERNATIONAL VENTURES LLC Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) (Continued from Previous Page) CMS Int'l Inter- Ventures Company LLC Eliminations Consol. Capitalization Common Stockholders' Equity Common stock $ (271) $ - Other paid-in-capital (945) 945 Currency translation 325 (325) Other comprehensive income (loss) 1 (1) Retained earnings 314 (38) ------ ------ (576) 581 Long-term debt - 60 Non-current capital leases - - ------ ------ (576) 641 ------ ------ Minority Interests (60) - ------ ------ Current Liabilities Current portion of long-term debt - 7 Current capital leases - - Notes payable (20) 9 Accounts payable (1) 15 Accrued interest - - Accrued taxes - 27 Liabilities held for sale - 41 Other - 4 ------ ------ (21) 103 ------ ------ Non-current Liabilities Postretirement benefits - 3 Deferred income taxes - (12) Liabilities held for sale - 25 Other (1) 5 ------ ------ (1) 21 ------ ------ Total Stockholders' Equity and Liabilities $ (658) $ 765 ====== ====== (10) Represents CMS International Ventures LLC consolidated. A-55 CMS OPERATING SRL Consolidating Balance Sheet - Assets December 31, 2002 (In Millions) Centrales CMS CMS Termicas CMS Inter- Operating Operating Mendoza Ensenada Company SRL SRL (11) S.A. S.A. Eliminations Consol. Plant and Property (At Cost) Independent power production $ 1 $ 65 $ 28 $ - $ 94 Less accumulated depreciation, depletion and amortization - 19 7 - 26 ------ ------ ------ ------ ------ 1 46 21 - 68 Construction work-in-progress - - - - - ------ ------ ------ ------ ------ 1 46 21 - 68 ------ ------ ------ ------ ------ Investments Associated companies 59 - - (59) - Natural gas transmission 6 - - - 6 ------ ------ ------ ------ ------ 65 - - (59) 6 ------ ------ ------ ------ ------ Current Assets Cash and temporary cash investments 3 9 5 - 17 Accounts/notes receivable 1 8 4 - 13 Accounts/notes receivable-related parties - 20 - - 20 Materials and supplies - 6 - - 6 Prepayments and other 1 1 - - 2 ------ ------ ------ ------ ------ 5 44 9 - 58 ------ ------ ------ ------ ------ Non-current Assets Notes receivable - - - - - Notes receivable-related parties 21 - - - 21 Other 22 2 - - 24 ------ ------ ------ ------ ------ 43 2 - - 45 ------ ------ ------ ------ ------ Total Assets $ 114 $ 92 $ 30 $ (59) $ 177 ====== ====== ====== ====== ====== (11) Represents CMS Operating SRL and Cuyana S.A. de Inversiones consolidated. A-56 CMS OPERATING SRL Consolidating Balance Sheet - Equity and Liabilities December 31, 2002 (In Millions) Centrales CMS CMS Termicas CMS Inter- Operating Operating Mendoza Ensenada Company SRL SRL (11) S.A. S.A. Eliminations Consol. Capitalization Common Stockholders' Equity Common stock $ 36 $ 36 $ - $ (36) $ 36 Other paid-in-capital 231 167 39 (206) 231 Currency translation adjustment (179) (125) (52) 177 (179) Retained earnings (4) 1 (5) 4 (4) ------ ------ ------ ------ ------ 84 79 (18) (61) 84 Long-term debt 21 - 39 - 60 Non-current capital leases - - - - - ------ ------ ------ ------ ------ 105 79 21 (61) 144 ------ ------ ------ ------ ------ Minority Interests - - - - - ------ ------ ------ ------ ------ Current Liabilities Current portion of long-term debt - - 7 - 7 Current capital leases - - - - - Notes payable - - - - - Accounts payable 3 3 2 2 10 Accounts payable-related parties - - - - - Accrued interest - - - - - Accrued taxes 2 6 - - 8 Other - 3 - - 3 ------ ------ ------ ------ ------ 5 12 9 2 28 ------ ------ ------ ------ ------ Non-current Liabilities Postretirement benefits - - - - - Deferred income taxes (1) 1 - - - Other 5 - - - 5 ------ ------ ------ ------ ------ 4 1 - - 5 ------ ------ ------ ------ ------ Total Stockholders' Equity and Liabilities $ 114 $ 92 $ 30 $ (59) $ 177 ====== ====== ====== ====== ====== (11) Represents CMS Operating SRL and Cuyana S.A. de Inversiones consolidated. A-57 CMS ENERGY CORPORATION Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) Consumers CMS Energy Enterprises Inter- CMS Energy CMS Energy Company Company Company Corporation Corp. (1) Consol. Consol. Eliminations Consol. Balance at January 1, 2002 $ (937) $ 441 $(1,215) $ 760 $ (951) Net Income (Loss) (612) 381 (653) 352 (532) Less Dividends Paid Common Stock 149 - - - 149 Preferred Stock - 2 - - 2 Preferred Securities Distributions 42 44 - - 86 Associated Companies 7 231 418 (656) - ------- ------ ------- ------ ------- 198 277 418 (656) 237 ------- ------ ------- ------ ------- Balance at December 31, 2002 $(1,747) $ 545 $(2,286) $1,768 $(1,720) ======= ====== ======= ====== ======= (1) Represents CMS Energy Corporation with CMS Energy Trust I, CMS Energy Trust II, CMS Energy Trust III, Consumers Energy Company and CMS Enterprises Company included on the equity method of accounting. A-58 CONSUMERS ENERGY COMPANY Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) Consumers Michigan Consumers Energy Gas CMS Midland CMS Inter- Power Company Storage Holdings Midland Company Company (2) Company Company Inc. Eliminations Consol. Balance at January 1, 2002 $ 437 $ (4) $ 20 $ 130 $ (142) $ 441 Net Income (Loss) 386 4 12 41 (62) 381 Less Dividends Paid Common Stock - - - - - - Preferred Stock 2 - - - - 2 Preferred Securities Dist. 44 - - - - 44 Associated Companies 231 - - - - 231 ------ ------ ------ ------ ------ ------ 277 - - - - 277 ------ ------ ------ ------ ------ ------ Balance at December 31, 2002 $ 546 $ - $ 32 $ 171 $ (204) $ 545 ====== ====== ====== ====== ====== ====== (2) Represents Consumers Energy Company, Consumers Power Company Financing I, Consumers Energy Company Financing II, Consumers Energy Company Financing III, Consumers Energy Company Financing IV, Michigan Electric Transmission Company, Consumers Funding LLC, Consumers Nuclear Services LLC, Consumers Parnall Holdings LLC, CMS Engineering Company, Consumers EnergyGuard Services, Inc., Huron Hydrocarbons, Inc. and ES Services Company consolidated with Michigan Gas Storage Company, CMS Midland Holdings Company and CMS Midland, Inc., included on the equity method of accounting. A-59 CMS ENTERPRISES COMPANY Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) CMS CMS CMS CMS CMS CMS Gas Enterprises Oil & Gas Generation Resource MS&T Trans. Co. Co. (3) Co. Consol. Co. Consol. Dev. Co. Co. Consol. Balance at January 1, 2002 $(1,222) $ 75 $ (573) $ 4 $ (37) $ (89) Net Income (Loss) (672) 215 (374) - (63) (436) Less Dividends Paid Common Stock - - - - - - Preferred Stock - - - - - - Associated Companies 418 290 63 5 6 40 ------- ------ ------- ------ ----- ------ 418 290 63 5 6 40 ------- ------ ------- ------ ----- ------ Balance at December 31, 2002 $(2,312) $ - $(1,010) $ (1) $(106) $ (565) ======= ====== ======= ====== ===== ====== (Continued on Following Page) A-60 CMS ENTERPRISES COMPANY Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) (Continued from Previous Page) CMS Micro- Power Inter- CMS CMS Int'l CMS Systems & Company Enterprises CMS Land Vent. LLC Capital Dist Power Eliminations Company Company Consol. LLC LLC Consol. Balance at January 1, 2002 $ (2) $ - $ 16 $ (4) $ 617 $(1,215) Net Income (Loss) (18) (32) 10 (32) 749 (653) Less Dividends Paid Common Stock - - - - - - Preferred Stock - - - - - - Associated Companies - 6 10 - (420) 418 ------ ------ ------ ------ ------ ------- - 6 10 - (420) 418 ------ ------ ------ ------ ------ ------- Balance at December 31, 2002 $ (20) $ (38) $ 16 $ (36) $1,786 $(2,286) ====== ====== ====== ====== ====== ======= (3) Represents CMS Enterprises Company, CMS Capital Financial Services, Inc., CMS Comercializadora de Energia S.A., CMS Energy South America Company, CMS Energy Asia Private, Ltd., CMS Texas LLC and CMS Energy UK Limited consolidated with CMS Oil and Gas Company, CMS Generation Company, CMS Land Company, CMS Distributed Power LLC, CMS MicroPower Systems LLC, CMS International Ventures LLC, CMS Capital LLC, CMS Marketing, Services and Trading Company, CMS Gas Transmission Company and CMS Resource Development Company included on the equity method of accounting. A-61 CMS OIL AND GAS COMPANY Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) CMS CMS CMS CMS O&G CMS CMS CMS O&G Inter- O&G O&G Congo O&G O&G O&G Int'l Co. Company Co. Co. (4) Ltd. Int'l Ltd. P/L Co. E.G. Ltd. Consol. Eliminations Consol. Balance at January 1, 2002 $ 75 $ (3) $ (312) $ (2) $ (2) $ 27 $ 292 $ 75 Net Income (Loss) 215 3 312 2 2 (27) (292) 215 Less Dividends Paid Common Stock - - - - - - - - Associated Companies 290 - - - - - - 290 ------ ------ ------ ------ ------ ------ ------ ------ 290 - - - - - - 290 ------ ------ ------ ------ ------ ------ ------ ------ Balance at December 31, 2002 $ - $ - $ - $ - $ - $ - $ - $ - ====== ====== ====== ====== ====== ====== ====== ====== (4) Represents CMS Oil and Gas Company, CMS Oil and Gas Alba LDC and CMS Oil and Gas E.G. LDC consolidated with CMS Oil and Gas International Company included on the equity method of accounting. A-62 CMS OIL AND GAS INTERNATIONAL COMPANY Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) CMS NOMECO CMS O&G CMS O&G Inter- CMS O&G CMS O&G Int'l Congo Int'l Tunisia Cameroon, Company Int'l Co. Int'l Co. (5) Hldgs, Inc. Inc. Inc. Eliminations Consol. Balance at January 1, 2002 $ 27 $ 16 $ 5 $ 3 $ (24) $ 27 Net Income (Loss) (27) (16) (5) (3) 24 (27) Less Dividends Paid Common Stock - - - - - - Associated Companies - - - - - - ------ ------ ------ ------ ------ ------ - - - - - - ------ ------ ------ ------ ------ ------ Balance at December 31, 2002 $ - $ - $ - $ - $ - $ - ====== ====== ====== ====== ====== ====== (5) Represents CMS Oil and Gas International Company, CMS Oil and Gas UK Ltd. and CMS Oil and Gas Eritrea Ltd., consolidated. A-63 CMS GENERATION COMPANY Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) CMSG Dearborn CMSG CMS CMSG CMSG CMSG Grayling Generation Filer City Generation Honey Lake Filer City, Grayling Holdings Operating Operating Company (6) Company Inc. Company Company LLC Company Balance at January 1, 2002 $ (605) $ (10) $ 11 $ (4) $ (5) $ 2 $ (1) Net Income (Loss) (374) 3 2 - 1 - - Less Dividends Paid Common Stock - - - - - - - Associated Companies 63 - - - - 1 - ------- ------ ------ ------ ------ ------ ------ 63 - - - - 1 - ------- ------ ------ ------ ------ ------ ------ Balance at December 31, 2002 $(1,042) $ (7) $ 13 $ (4) $ (4) $ 1 $ (1) ======= ====== ====== ====== ====== ====== ====== (Continued on Following Page) A-64 CMS GENERATION COMPANY Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) (Continued from Previous Page) Dearborn CMSG Industrial CMSG Mid-Mich Investment CMSG HYDRA-CO Generation CMSG Recycling Recycling Company I Michigan Enterprises, LLC SRL Company LLC Consol. Power LLC Inc. Balance at January 1, 2002 $ (41) $ 2 $ (2) $ (4) $ (181) $ (2) $ (154) Net Income (Loss) (494) (2) - - 94 (64) (7) Less Dividends Paid Common Stock - - - - - - - Associated Companies - - - - 36 - 2 ------ ------ ------ ------ ------ ------ ------ - - - - 36 - 2 ------ ------ ------ ------ ------ ------ ------ Balance at December 31, 2002 $ (535) $ - $ (2) $ (4) $ (123) $ (66) $ (163) ====== ====== ====== ====== ====== ====== ====== (Continued on Following Page) A-65 CMS GENERATION COMPANY Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) (Continued from Previous Page) Taweelah CMSG Exeter CMSG CMSG A2 Holding Energy Operating Altoona Operating Company LLC Company Company Company Balance at January 1, 2002 $ (13) $ 31 $ (2) $ 6 $ - Net Income (Loss) 1 - 1 - 1 Less Dividends Paid Common Stock - - - - - Associated Companies 1 - - - - ------ ------ ------ ------ ------ 1 - - - - ------ ------ ------ ------ ------ Balance at December 31, 2002 $ (13) $ 31 $ (1) $ 6 $ 1 ====== ====== ====== ====== ====== (Continued on Following Page) A-66 CMS GENERATION COMPANY Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) (Continued from Previous Page) CMS Int'l Inter- CMSG Operating Company Company Company Eliminations Consol. Balance at January 1, 2002 $ 10 $ 389 $ (573) Net Income (Loss) 7 457 (374) Less Dividends Paid Common Stock - - - Associated Companies - (40) 63 ------ ------ ------- - (40) 63 ------ ------ ------- Balance at December 31, 2002 $ 17 $ 886 $(1,010) ====== ====== ======= (6) Represents CMS Generation Company, CMSG Genesee Company, CMSG Lyonsdale Company, CMSG Chateaugay Company, CMSG Montreal Company and CMS Centrales Termicas S.A., consolidated with CMSG Investment Company I included on the equity method of accounting. A-67 CMS GENERATION INVESTMENT COMPANY I Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) CMSG CMSG CMSG Loy Yang CMSG CMSG CMSG Inv. Co. I Cebu I & II Pinamucan Investment Investment (7) LDC Ltd. LDC Co. IV Co. VI Balance at January 1, 2002 $ (180) $ 1 $ (435) $ (3) $ 208 $ 30 Net Income (Loss) 93 - - - 66 14 Less Dividends Paid Common Stock - - - - - - Associated Companies 36 - - - - - ------ ------ ------ ------ ------ ------ 36 - - - - - ------ ------ ------ ------ ------ ------ Balance at December 31, 2002 $ (123) $ 1 $ (435) $ (3) $ 274 $ 44 ====== ====== ====== ====== ====== ====== (Continued on Following Page) A-68 CMS GENERATION INVESTMENT COMPANY I Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) (Continued from Previous Page) CMSG CMSG Inter- CMSG Investment Investment Company Investment Co. VII Co. V Eliminations Company I Consol. Balance at January 1, 2002 $ 5 $ (1) $ 194 $ (181) Net Income (Loss) 12 1 (92) 94 Less Dividends Paid Common Stock - - - - Associated Companies - - - 36 ------ ------ ------ ------ - - - 36 ------ ------ ------ ------ Balance at December 31, 2002 $ 17 $ - $ 102 $ (123) ====== ====== ====== ====== (7) Represents CMSG Investment Company I consolidated. A-69 CMS GAS TRANSMISSION COMPANY Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) CMS Bay CMS CMS CMS Gas CMS Area CMS Gas Saginaw Jackson Tristate Transmission Antrim Pipeline Argentina Bay Lateral Pipeline Pipeline Company (8) Gas LLC LLC Company Company Company LLC Balance at January 1, 2002 $ (87) $ 2 $ (2) $ 52 $ (3) $ - $ (6) Net Income (Loss) (435) 2 1 (1) - 1 - Less Dividends Paid Common Stock - - - - - - - Associated Companies 40 1 3 - - 1 - ------ ------ ------ ------ ------ ------ ------ 40 1 3 - - 1 - ------ ------ ------ ------ ------ ------ ------ Balance at December 31, 2002 $ (562) $ 3 $ (4) $ 51 $ (3) $ - $ (6) ====== ====== ====== ====== ====== ====== ====== (Continued on Following Page) A-70 CMS GAS TRANSMISSION COMPANY Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) (Continued from Previous Page) CMS Western Panhandle CMS Gas Marysville CMS Field Australia Eastern Pipe Inter- Transmission Gas Liquids Services Gas Trans. Line Co. CMS Grand Company Company Company Inc. Consol. Co. I Consol. Lacs LLC Eliminations Consol. Balance at January 1, 2002 $ (11) $ 43 $ (5) $ (13) $ (8) $ (51) $ (89) Net Income (Loss) 2 (115) 5 (300) 1 403 (436) Less Dividends Paid Common Stock - - - - - - - Associated Companies 3 - - 28 3 (39) 40 ------ ------ ------ ------ ------ ------ ------ 3 - - 28 3 (39) 40 ------ ------ ------ ------ ------ ------ ------ Balance at December 31, 2002 $ (12) $ (72) $ - $ (341) $ (10) $ 391 $ (565) ====== ====== ====== ====== ====== ====== ====== (8) Represents CMS Gas Transmission Company consolidated with CMS Field Services, Inc. and Panhandle Eastern Pipe Line Company included on the equity method of accounting. A-71 PANHANDLE EASTERN PIPE LINE COMPANY Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) CMS Panhandle CMS Trunkline CMS Panhandle Eastern Pipe Trunkline LNG Pan Gas Inter- Eastern Pipe Line Co. Gas Co. Holdings Storage Company Line Co. Consol. (9) LLC (10) Co. LLC Co. Eliminations Consol. Balance at January 1, 2002 $ (33) $ 67 $ - $ 13 $ (60) $ (13) Net Income (Loss) (265) 26 31 (48) (44) (300) Less Dividends Paid Common Stock - - - - - - Associated Companies 28 - 29 - (29) 28 ------ ------ ------ ------ ------ ------ 28 - 29 - (29) 28 ------ ------ ------ ------ ------ ------ Balance at December 31, 2002 $ (326) $ 93 $ 2 $ (35) $ (75) $ (341) ====== ====== ====== ====== ====== ====== (A) (A) (9) Represents Panhandle Eastern Pipe Line Company, CMS Panhandle Eastern Resources, Inc., CMS Panhandle Storage Company, MG Ventures Storage, Inc., CMS Trunkline Field Services Company, CMS Panhandle Lake Charles Generation Company LLC, CMS Panhandle Holdings LLC, Panhandle Partner, LLC and CMS Panhandle LNG Acquisition Company consolidated. (10) Represents CMS Trunkline Gas Company LLC, CMS Trunkline Gas Resources LLC, CMS Trunkline Offshore Pipeline Company LLC, CMS Trunkline Deepwater Pipeline Company LLC and Sea Robin Pipeline Company consolidated. (A) Discontinued Operations reclassification is recorded "net" as a component of net income (loss). A-72 CMS FIELD SERVICES, INC. Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) CMS CMS CMS Cherokee CMS Gulf CMS Taurus CMS Field CMS Gas Laverne Gas Natural Gas Gas Coast Field Holdings Services Processing Processing Gathering Processing Services Company Inc. (11) LLC LLC LLC LLC LLC LLC Balance at January 1, 2002 $ 15 $ (6) $ 1 $ (5) $ 20 $ 7 $ 7 Net Income (Loss) (118) - - (2) (1) 4 (2) Less Dividends Paid Common Stock - - - - - - - Associated Companies - - - - - - - ------ ------ ------ ------ ------ ------ ------ - - - - - - - ------ ------ ------ ------ ------ ------ ------ Balance at December 31, 2002 $ (103) $ (6) $ 1 $ (7) $ 19 $ 11 $ 5 ====== ====== ====== ====== ====== ====== ====== (A) (Continued on following Page) A-73 CMS FIELD SERVICES, INC. Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) (Continued from Previous Page) CMS Okla. Nat. Gas Bighorn Gas Inter- CMS Field Gathering Bradshaw Gathering Company Services, Inc. LLC Energy LLC LLC Eliminations Consol. Balance at January 1, 2002 $ 1 $ 2 $ 1 $ - $ 43 Net Income (Loss) - - 8 (4) (115) Less Dividends Paid Common Stock - - - - - Associated Companies - - - - - ------ ------ ------ ------ ------ - - - - - ------ ------ ------ ------ ------ Balance at December 31, 2002 $ 1 $ 2 $ 9 $ (4) $ (72) ====== ====== ====== ====== ====== (11) Represents CMS Field Services, Inc. and CMS Hydrocarbons, LLC consolidated. (A) Discontinued Operations reclassification is recorded "net" as a component of net income (loss). A-74 CMS INTERNATIONAL VENTURES LLC Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) CMS CMS Oper. CMSG CMS Western CMS CMSG Int'l Ventures SRL Invest. E&G Aust. Generation Invest. LLC (12) Consol. Co. III LLC GT Co. I SRL Co. V Balance at January 1, 2002 $ - $ 11 $ 21 $ (315) $ 22 $ (30) $ - Net Income (Loss) (32) (15) (4) (6) 1 - 1 Less Dividends Paid Common Stock - - - - - - - Associated Companies 6 - - - - - - ------ ------ ------ ------ ------ ------ ------ - - - - - - - ------ ------ ------ ------ ------ ------ ------ Balance at December 31, 2002 $ (38) $ (4) $ 17 $ (321) $ 23 $ (30) $ 1 ====== ====== ====== ====== ====== ====== ====== (Continued on Following Page) A-75 CMS INTERNATIONAL VENTURES LLC Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) (Continued from Previous Page) CMS Int'l Inter- Ventures Company LLC Eliminations Consol. Balance at January 1, 2002 $ 291 $ - Net Income (Loss) 23 (32) Less Dividends Paid Common Stock - - Associated Companies - 6 ------ ------ - 6 ------ ------ Balance at December 31, 2002 $ 314 $ (38) ====== ====== (12) Represents CMS International Ventures LLC consolidated. A-76 CMS OPERATING SRL Consolidating Statement of Retained Earnings December 31, 2002 (In Millions) Centrales CMS CMS Termicas CMS Inter- Operating Operating Mendoza Ensenada Company SRL SRL (13) S.A. S.A. Eliminations Consol. Balance at January 1, 2002 $ 11 $ 17 $ 3 $ (20) $ 11 Net Income (Loss) (15) (16) (8) 24 (15) Less Dividends Paid Common Stock - - - - - Associated Companies - - - - - ------ ------ ------ ------ ------ - - - - - ------ ------ ------ ------ ------ Balance at December 31, 2002 $ (4) $ 1 $ (5) $ 4 $ (4) ====== ====== ====== ====== ====== (13) Represents CMS Operating SRL and Cuyana S.A. de Inversiones consolidated. A-77 EXHIBIT B Organizational charts showing the relationship of each Exempt Wholesale Generators to associate companies in the holding company system. CENTRALES TERMICAS MENDOZA S.A. (EWG) CMS Energy Corporation * * * CMS Enterprises Company * * * * * * * 40.47% * * * CMS Gas Transmission Company * * * * * CMS Generation Co. * * * * * 37.01% * * * * * * * * * 21.02% * * * * * * * * * * CMS International Ventures, L.L.C. * * * * 99% 99.999% * * * * CMS Centrales Termicas S.A. CMS Operating, S.R.L. * * * * 1% 99% * * * * Cuyana S.A. De Inversiones * 92.6% * Centrales Termicas Mendoza S.A. B-1 CENTRALES TERMICAS SAN NICOLAS, S.A. (EWG) CMS Energy Corporation * * * CMS Enterprises Company * * * CMS Generation Co. * 0.1% * CMS Generation San Nicolas Company * 0.1% * Inversora de San Nicolas, S.A. * 88% * Centrales Termicas San Nicolas, S.A. B-2 CMS DISTRIBUTED POWER, L.L.C. (EWG) CMS Energy Corporation * * * CMS Enterprises Company * * * CMS Distributed Power, L.L.C. B-3 CMS ENSENADA S.A. (EWG) CMS Energy Corporation * * * CMS Enterprises Company * * * * * * 40.47% * * * CMS Gas Transmission Company * * * * * 37.01% CMS Generation Co. * * * * * * * * * * 21.02% * * * * * CMS International Ventures, L.L.C. * * * * * 99.999% * * * * * CMS Operating, S.R.L. CMS Generation Holdings Company * * * * 99% 1% * * * * CMS Ensenada S.A. B-4 CMS GENERATION MICHIGAN POWER LLC (EWG) CMS Energy Corporation * * * CMS Enterprises Company * * * CMS Generation Co. * * * CMS Generation Michigan Power LLC B-5 CMS GENERATION OPERATING COMPANY (EWG) CMS Energy Corporation * * * CMS Enterprises Company * * * CMS Generation Co. * * * CMS Generation Operating Company B-6 CMS (INDIA) OPERATIONS & MAINTENANCE COMPANY PRIVATE LIMITED (EWG) CMS Energy Corporation * * * CMS Enterprises Company * * * CMS Generation Co. * * * * * CMS International Operating Company CMS Investment Company I * * 99% 1% * * CMS (India) Operations & Maintenance Company Private Limited B-7 CMS MOROCCO OPERATING COMPANY SCA (EWG) AND CMS INTERNATIONAL OPERATING COMPANY (EWG) CMS Energy Corporation * CMS Enterprises Company * * CMS Generation Co. * * * * * * * * * CMS Generation Investment Company I * * * * * * * * * CMS Generation Investment Company IV * * * * * * CMS International Operating Company * * * * * * * * * * * CMS Generation UK Operating * 50% * Private Limited * * * * * * * * * * .1% * * CMS Generation Jorf Lasfar III Limited Duration Company * Jorf Lasfar Aktiebolag * * * * * * * * 99.7% .1% .1% * * * * * * * * * CMS Morocco Operating Co., S.C.A. B-8 CMS PANHANDLE LAKE CHARLES GENERATION COMPANY, LLC (EWG) CMS Energy Corporation * * CMS Enterprises Company * * CMS Gas Transmission Company * * Panhandle Eastern Pipe Line Company * * * * * * * * Panhandle Partner LLC CMS Panhandle LNG Acquisition Company * * * * 95% 5% * * * * CMS Panhandle Holdings, LLC * * * * CMS Panhandle Lake Charles Generation Company, LLC B-9 DEARBORN GENERATION OPERATING L.L.C. (EWG) AND DEARBORN INDUSTRIAL GENERATION, L.L.C. (EWG) CMS Energy Corporation * * * CMS Enterprises Company * * * CMS Generation Co. * * * * * * Dearborn Generation Operating, L.L.C. Dearborn Industrial Energy, L.L.C. * * * Dearborn Industrial Generation, L.L.C. B-10 EXETER ENERGY LIMITED PARTNERSHIP (EWG) CMS Energy Corporation * * * CMS Enterprises Company * * * CMS Generation Company * * * * * * * * * * Exeter Management Company * Oxford/CMS Development LP * 50% * * * 48% 2% * * * * * * * Exeter Energy Limited Partnership B-11 GVK INDUSTRIES LTD. (EWG) CMS Energy Corporation * * * CMS Enterprises Company * * * * * * * * * * CMS Gas Transmission Company CMS Generation Co. * * * * * * 40.47% 37.01% 21.02% * * * * * * * * CMS International Ventures, L.L.C.** * * CMS Generation Investment Company III * * Jegurupadu CMS Generation Company Ltd. * 23.75% * GVK Industries Ltd. B-12 HIDROELECTRICA EL CHOCON, S.A. (EWG) CMS Energy Corporation * * * CMS Enterprises Company * * * * * * * * * * CMS Gas Transmission Company CMS Generation Co. * * * * * * * * * * 40.47% 37.01% 21.02% * * * * * * * * * * * * CMS International Ventures, L.L.C. * * * * * * CMS Generation Holdings Company * 99.99% * * * .01% * * * * CMS Generation, S.R.L. * * * * * 25% * * * * 2.48% Hidroinvest, S.A. * * * * * 59% * * * * * Hidroelectrica El Chocon, S.A. B-13 JAMAICA PRIVATE POWER COMPANY LIMITED (EWG) AND PRIVATE POWER OPERATIONS LIMITED (EWG) CMS Energy Corporation * * * CMS Enterprises Company * * * CMS Generation Co. * * * HYDRA-CO ENTERPRISES, INC. * * * * * * CMS Generation Operating Company II, Inc. HCE-Rockfort Diesel, Inc. * * * 45.07% * * HCO-Jamaica, Inc. Jamaica Private Power Company Limited * * * Private Power Operations Limited (Operator) B-14 JEGURUPADU OPERATING AND MAINTENANCE COMPANY (EWG) CMS Energy Corporation CMS Enterprises Company * * * * * * * * * CMS Gas Transmission Company * CMS Generation Co. * * * * * 40.47% * * 37.01% * * CMS Generation Investment Co. I * * 21.02% * * * * CMS International Ventures, L.L.C.* CMS Investment Company IV * * * * * * CMS Generation Investment Co. III CMS Generation Investment Company II * * * * * * * * 99% * 1% * * * * * 1% 99% * * * * CMS Generation Jegurupadu I CMS Generation Jegurupadu II Limited Duration Company Limited Duration Company * * * * 50% 50% * * * * Jegurupadu O&M Company Mauritius * 60% * Jegurupadu Operating and Maintenance Company B-15 JORF LASFAR ENERGY COMPANY (EWG) CMS Energy Corporation * * * CMS Enterprises Company * * * CMS Generation Co. * * CMS Generation Investment Company I * * CMS Generation Investment Company IV**************** * * * * * * * * CMS Generation Luxembourg II SARL * * * * * * * * * * * CMS Generation Luxembourg SARL * CMS Generation Investment Company II * * * * * * * 35% 65% 65% 35% * * * * * CMS Generation Netherlands B.V. * * CMS Generation Jorf Lasfar I * * * * Limited Duration Company * * * * * * * CMS Generation Jorf Lasfar II * * * Limited Duration Company 50% * * * * * * 50% * * * * * Jorf Lasfar Aktiebolag Jorf Lasfar Energiaktiebolag Jorf Lasfar Handelsbolag * * * 23% 25% 2% * * * * * * *************Jorf Lasfar Energy Company********* B-16 ST-CMS ELECTRIC COMPANY PVT. LTD. (EWG) CMS Energy Corporation * * * CMS Enterprises Company * * * * * * * * * CMS Generation Co. * Gas Transmission Company * * * 21.02% 40.47% 37.01% * * * CMS International Ventures . L.L.C. * * * CMS Generation Investment Company III * * * CMS Generation Neyveli Ltd/ * 50% * ST-CMS Electric Company Pvt. Ltd. B-17 TAKORADI INTERNATIONAL COMPANY (EWG) CMS Energy Corporation * * * CMS Enterprises Company * * * CMS Generation Co. * * * * * * * CMS Generation Investment Company I * * * * * * * * * * CMS International Operating Company CMS Generation Investment Co. VI | * | * | * | CMS Takoradi Investment Company | * Operator * | * | CMS Takoradi Investment Company II | * | 90% | * Takoradi International Company B-18 Organizational charts showing the relationship of foreign utility company ("FUCO") to associate companies in the holding company system. CMS GENERATION HORIZON ENERGY HOLDINGS LIMITED (FUCO) AND HORIZON ENERGY HOLDINGS LIMITED (FUCO) AND LOY YANG POWER PARTNERS (FUCO) CMS Energy Corporation * * * CMS Enterprises Company * * * CMS Generation Co. * * * CMS Generation Investment Co. I * * * * * * CMS Generation Loy Yang Holdings 2 Ltd. CMS Generation Loy Yang Holdings 1 Ltd. * * * * * * CMS Generation Horizon Energy Holdings Ltd. Horizon Energy Holdings Ltd. * * 25% 24.63% * * Loy Yang Power Partners B-19 CMS OPERATING, S.R.L. (FUCO) CMS ENERGY CORPORATION * * * CMS ENTERPRISES COMPANY * * * * * * * * * * * * CMS Generation Co. * CMS Gas Transmission Company * * * * * * * * * 21.02% 40.47% 37.01% CMS Generation Holdings Company * * * * * * * * * * * CMS Generation, S.R.L. CMS International Ventures, LLC * * * * .001% 99.999% * * * * CMS Operating, S.R.L. B-20 COMPANHIA PAULISTA DE ENERGIA ELECTRICA S.A. (CPEE) (FUCO) AND COMPANHIA SUL PAULISTA DE ENERGIA S.A. (CSPE) (FUCO) AND COMPANHIA JAGUARI DE ENERGIA S.A. (CJE) (FUCO) AND COMPANHIA LUZ E FORCA DE MOCOCA S.A. (CLFM) (FUCO) CMS Energy Corporation * * CMS Enterprises Company * * * 40.47% * * * CMS Gas Transmission Company * * * * * 37.01% CMS Generation Co. * * * * * 21.02% * * * CMS International Ventures, L.L.C. * * CMS Electric & Gas, LLC * 99.99% * CMS Distribuidora, Ltda. * 99.99% * CMS Participacoes Ltda. * 93.86% * CPEE * 88.63% * CSPE * * CJE * * CLFM B-21 EMIRATES CMS POWER COMPANY (FUCO) CMS Energy Corporation * * * CMS Enterprises Company * * * CMS Generation Co. * * * CMS Generation Investment Company I * * * CMS Generation Investment Company VII * * * CMS Generation Taweelah Limited * 40% * Emirates CMS Power Company B-22 SISTEMA ELECTRICO DEL ESTADO NUEVA ESPARTA C.A. (SENECA) (FUCO) CMS Energy Corporation * * * CMS Enterprises Company * * * * * * * * * * CMS Gas Transmission Company CMS Generation Co. * * * * * * 40.47% 37.01% 21.02% * * * * * * CMS International Ventures, L.L.C. * * * CMS Electric & Gas, LLC * * * * * CMS Venezuela S.A. * * * * ENELMAR, S.A 52.37% * * 33.34% * * * SENECA B-23 TAWEELAH A2 OPERATING COMPANY (FUCO) CMS Energy Corporation * * * CMS Enterprises Company * * * CMS Generation Co. * * * Taweelah A2 Operating Company B-24