CMS Energy reports first quarter net income
CMS Energy reported net income of $69 million, or $0.30 per share, for the first quarter of 2009, compared to reported net income of $102 million, or $0.43 per share, in the same quarter of 2008.
According to a news release, the difference between the company's 2008 and 2009 first quarter results was caused in large part by a 2008 gain on the sale of sulfur dioxide allowances not repeated in 2009 and lower winter electric rates at its Michigan utility, Consumers Energy. Those rates are expected to be offset by higher summer rates. The new rates, which took effect in June 2008, are designed to encourage customers to conserve energy during the summer.
CMS Energy reaffirmed its guidance for 2009 adjusted earnings of $1.25 per share. While the company expects 2009 reported earnings to be about the same as its adjusted earnings, reported earnings could vary because of several factors such as legacy issues associated with prior asset sales.
David Joos, the president and chief executive officer of CMS Energy, said the first quarter results were consistent with the company's full-year earnings guidance and reinforced the strategy of making substantial investments in its Michigan utility operations.
"Our growth plan calls for Consumers Energy to invest more than $6 billion over the next five years. We expect these investments will create thousands of construction jobs, boost Michigan's economy, and help us continue to provide reliable, affordable service to our customers," Joos said.
Joos said the investments primarily would be in energy efficiency, renewable energy, environmental and customer service enhancements, as well as new power generation.
CMS Energy (NYSE: CMS) is a Michigan-based company that has an electric and natural gas utility, Consumers Energy, as its primary business and also owns and operates independent power generation businesses.