Lower gas and electric sales, the second warmest fourth quarter weather in more than 100 years, and plant maintenance costs squashed CMS Energy Corp.’s 2001 overall earnings, and the Dearborn, MI-based company now expects to earn between $1.35-$1.40 for the year — 35 cents below its estimates.

Noting that Michigan’s weather in the final quarter of 2001 was the second warmest since 1864 (when temperatures were first recorded there), CMS reported that the higher temperatures affected its gas distribution utility in the state. Also contributing to lower gas and electric sales was the national recession, and the company blamed additional shortfall on electric generating plant maintenance costs and increased electric distribution repair costs because of storm damages. CMS, however, reaffirmed its outlook for 2002 of earnings to fall between $2.00 to $2.05 per share, excluding any asset sale gains or losses.

CMS also announced it has completed its previously announced $320 million monetization of its CMS Trunkline LNG business in late December. Net proceeds were used to pay down debt, including $200 million of Panhandle Eastern Pipe Line Co. long-term debt. However, “contrary to prior expectations,” there were no earnings gains because of the “ultimate structure of the transaction.

CMS has now closed the sale of all of its assets in Equatorial Guinea for $993 million, and with the proceeds, the company retired all bank debt of CMS Oil and Gas Co., totaling $110 million; all of CMS Energy’s short-term bank debt totaling $215 million; and all of Consumers Energy’s short-term bank debt totaling $409 million. In addition, the company called $125 million of debt related to the Atlantic Methanol Production facility and infused $150 million of equity into Consumers Energy.

CMS Energy holds 85% of its assets in the United States, where it owns and operates an electric and natural gas distribution company with 3.3 million customers; a 16,000 mile natural gas pipeline system and associated storage facilities; the nation’s largest liquefied natural gas import facility; approximately 8,000 MW of power plants; a midstream natural gas gathering and processing company with 385 MMcf/d of capacity; an oil and gas exploration and production company with significant domestic gas reserves; and a leading energy marketing, trading and services company handling 4 Bcf/d and 100 million MWh annually.

©Copyright 2002 Intelligence Press Inc. Allrights reserved. The preceding news report may not be republishedor redistributed, in whole or in part, in any form, without priorwritten consent of Intelligence Press, Inc.