Customers and company benefit from fair and timely regulation

In the spotlight:
Employees
honored
for ethical
commitment
back page
Ethics
in
Action
News to Use for Consumers Energy and CMS Energy Employees NOV. 2011
While they don’t claim to be gymnasts,
each day is a balancing act for the
company’s regulatory affairs team.
They work closely with state regulators to find the
Translating the Triangle:
Fair and Timely
Regulation
Customers
and company
benefit from
fair and timely
regulation
critical balancing point between
providing customers with
affordable, safe and reliable
energy service while maintaining
the financial health of the company.
By Lori Stratton
That’s why “fair and timely regulation” is a key
element of our Growing Forward strategy triangle.
INSIDE: Putting the Pieces Together

Balancing
Priorities
Consumers energy and other members
of the Michigan Jobs and Energy Coalition
(MJEC) are telling lawmakers in
Lansing about the benefits that customers
and the state are getting from the 2008 energy law.
The state Senate Energy and Technology Committee
is holding hearings this month to look at the effect of
the law, which was designed to encourage investments
in the state’s energy infrastructure to serve customers
and improve the environment.
To provide the certainty needed for substantial
investments, the law put a
10 percent cap on the portion of the state’s
electric load that could be served by out-ofstate
power marketers. From 2000 to 2008, 100 percent
of the state’s electric load was up for grabs. The uncertainty
created by that policy discouraged Consumers
Energy and other utilities from making investments.
Out-of-state energy marketers now are pushing lawmakers
to raise the deregulation cap so they can take
advantage of short-term market conditions caused by
the recession and the recent drop in natural gas prices.
Increasing the deregulation cap is opposed by the
MJEC, which includes the Michigan Chamber of
Commerce, Michigan Manufacturers Association,
Another challenge
to our regulatory
team’s balancing act is
finding ways to protect
customers in need.
Utilities and consumer
advocates are urging the
state House energy and
Technology Committee
to develop a “patch”
bill that temporarily
would establish a fund to
provide energy assistance
WHAT YOU nEED
Streamlined regulatory process –
Shortens reviews and approvals of rate cases and
enable utilities to “self-implement” rate cases that
aren’t resolved after 180 days. The Michigan public
Service Commission is required to issue a final order
within 12 months.
Renewable energy portfolio –
Requires that 10 percent of the power we supply
comes from renewable sources, including wind,
solar and biomass, by 2015.
Michigan’s
energy policy is
working for the
company and
customers.
Translating the Triangle:
Fair and Timely Regulation
the Detroit Regional
Chamber of Commerce
and a coalition
of the state’s major
labor unions.
Leaders of some
of the main MJEC
members recently
told the state Senate
Energy and Technology
Committee that
the law is working
well and should be
implemented fully
before any changes are discussed. (Full implementation
of one of the key provisions of the law, cost of
service rates, is scheduled for 2013.)
John Russell, president and chief executive officer
of Consumers Energy, was among those testifying at a
hearing this month.
Russell told lawmakers the stability and certainty
provided by the 2008 energy law has allowed the utility
to make substantial investments in Michigan. From
2012 through 2016, Consumers Energy plans to invest
TheHEaTisON
TO KNOW:
dollars and shut-off
protection this winter for
customers in need.
In July, the Michigan
Court of Appeals ruled
the state’s energy reforms
remove language regarding
the Low Income and
Energy Efficiency Fund
(LIeeF).
As a result, the
Michigan Public Service
Commission (MPSC)
THE 2008
ENERGY LAW
Reform of Michigan’s electric deregulation law –
Limits alternate suppliers to 10 percent of electric load,
providing the certainty needed to make investments to
improve customer service and reliability. It also helps us
meet growing customer demand.
Energy efficiency programs –
Encourages greater energy savings among all electric
customers. We responded by launching Consumers
Energy Saving Solutions, a $665 million investment to
help our customers lower their utility bills.
more than $6.6 billion to
serve its customers and improve
the environment.
Those investments include
expanding the utility’s renewable
energy portfolio, installing
emissions control equipment at
major coal-fired generating plants,
and implementing energy efficiency
programs that bring value to customers
by helping them to save energy and save
money.
Unlike the out-of-state marketers, Consumers
Energy is committed to Michigan’s long-term
prosperity, Russell told lawmakers.
“We’re in it for the long haul,” he said. “Consumers
Energy has been around for 125 years. This a longterm
business, and most of the assets we invest in last
40 to 50 years.”
The deregulation cap and all other components of
the 2008 energy law were designed to work together.
For example, the certainty provided by the cap allows
utilities to secure the billions of dollars in capital
required to help meet the law’s renewable energy
standard. That requires 10 percent of the electricity
supplied to customers come from renewable sources
by 2015. Today, 5 percent of the power that Consumers
Energy provides to its customers comes from
renewable sources, making it the largest provider of
renewable energy in Michigan.
can no longer manage
the program and award
LIeeF grants to state
assistance agencies.
Passing a “patch” bill
would ensure the MPSC
has the authority to
award energy assistance
grants for the 2011 – 2012
heating season.
Patti Poppe, vice
president of customer experience
and operations,
recently testified before
the committee about the
importance of providing
low-income energy assistance
and highlighting
the benefits our customers
have received through
LIeeF.
“Consumers Energy is
committed to reinventing
the income-qualified
customer experience,”
she said.
“We are actively
working with critical
partners around the state
Back in the Day
before Julia Child, Maude
DECADES Mercer ruled the kitchen.
Assisted by ladies dressed in white
uniforms, Mercer captured the attention
of housewives in the 1920s
by demonstrating the benefits
of modern cooking appliances
throughout our electric service
territory.
The road show was
By Todd Schulz
to find solutions that will
minimize bureaucracy,
while getting the dollars
available to the people
who need it most.
“This will take time.
In the interim, we need a
solution for our customers
and neighbors this
winter.”
Our company is part
of a working group that’s
collaborating with state
Sen. Bruce Caswell,
R-Hillsdale, to develop
a more efficient way to
administer and deliver
Michigan’s entire menu
of low-income energy
assistance programs and
weatherization.
As part of a recent natural
gas rate case filing,
Consumers Energy also
proposed direct assistance
of $36 million for
qualifying low-income
natural gas customers.
sponsored by Consumers
Energy’s home
Economy Bureau,
a division of
our sales department. The innovative sales approach soon spread to
Grand Rapids, where advertisements touted the kitchen as having
“all the efficiency of high-power office equipment.” Mercer,
Company Advocates to Preserve
Energy Assistance Funds
who became known as Jackson’s “Girl in White,” hosted
“Tonight’s Dinner” on WIBJ radio, Jackson’s Capital
Theater Broadcasting Station. The half-hour
program also aired customer service
messages from Consumers
Energy.
“Based on income
alone, some 1.2 million
residents statewide
would likely be eligible to
receive funding through
LIeeF,” said Whitney
Skeans, customer assistance
coordinator with
regulatory affairs.
“This is an unusual
year for Michigan because
in addition to the
potential loss of LIeeF,
we also anticipate a
25 percent decrease in
federal energy assistance
dollars to Michigan.”
The Low Income
Home energy assistance
Program (LIHeaP) provides
grants to states that
operate energy assistance
programs for low-income
households.
At the national level,
the federal government
agreed to cut $390
million from LIHeaP
as part of a fiscal year
Ladies dressed in white demonstrated
the advantages of modern cooking
appliances throughout the company’s
electric service territory.
What you can do to help
1. Join the Michigan Jobs and
Energy Coalition. Get more
information by visiting www.
michiganjobsandenergy.com.
2. Send a letter to your stateelected
officials supporting the
2008 energy law.
2011 budget deal struck
between Congress and
President Obama late last
spring.
While only contingency
funds were cut instead
of base funding in 2011,
it’s likely the program
will see deeper cuts in
2012.
These cuts for the fiscal
year 2012 would slice another
$55 million to $60
million from Michigan
and affect more than
600,000 annual LIHeaP
beneficiaries throughout
the state.
As of Oct. 1, the
Michigan Department of
Human Services already
had cut its per household
energy assistance cap
from $850 to $450.
By Lori Stratton

The ‘If Only...’ Moment
by Jim Brunner
Senior Vice President and General Counsel
It’s ing that brings home the real
aLWayS the personal suffer-
and sometimes tragic consequences of unsafe
behavior.
As a corporate lawyer, sifting through the grim
details in an accident report, I’ve many times
caught myself thinking: “If only…”
I know that those injured and their families
desperately wish they could go back in time
and change the one thing that might have
prevented the injury or fatality.
We can all help
in our own way.
Knowledge of these personal impacts gives
company lawyers a special perspective on the
importance of safe and excellent operations.
That’s why you’ll find us supporting efforts to
educate the public on the safe use of electricity
and natural gas as well as providing insights
into accident avoidance from our research
with workplace injury cases.
We all can help in our own way. I like to tell
the story of an employee who risked arrest by
parking his car in front of a mobile home that
was being moved in an unsafe manner beneath
a power line. Direct action in support of safety!
Yes, safety lapses can result in expensive
lawsuits. But financial consequences are never
the primary issue. It’s about all of us acting
responsibly so that everyone goes home safely
at the end of each day.
Translating the Triangle:
Safe, Excellent Operations
Did you find this column helpful? please share your thoughts at:
http://docs/strategycenter/Lists/pNovBrunner/NewForm.aspx
Connect is published monthly by Strategy Communications and
distributed to Consumers Energy and CMS Energy employees. please call
Terry pow at (517) 788-0879 or email him at tspow@cmsenergy.com if
you have comments or news items.
Voices
We’re a company of diverse voices, and everyone adds
value. Share your voice here.
What advice would you share to help a
co-worker achieve success at work?
Safety first at work and home, treat the customer as a person and not a
number, look for a mentor to help guide your way through your career path/
goal, and serve your fellow employees to empower them to be the very best
they can be!
– Javier Ruiz • training supervisor,
Ludington Pumped Storage Plant
Take as many internal company development classes that you can. Be as
diversified and well-rounded as possible. Flexibility and experience are the
keys to success.
– Pat Miller • system owner III, East Tawas
If you really want to make a difference in this world, make safety a priority in
all you do — the well-being of others will be the result.
– Chrystal Bisonet • senior financial analyst I,
Campbell
Welcome every new challenge as a learning experience. Strive to be an expert
in your field. Treat others as you would like to be treated. Keep your job fun,
never stop learning. Finally, take pride in your job and in the company.
– Dawn Reimer • human resources administrative specialist,
Royal Oak
Strive to be the best at what you’ve been called to do. Be teachable and treat
others as you would like to be treated.
– Mattie McKinney • corporate diversity director,
Grand Rapids
Focus and build on your strengths, seek advice, ask questions and never be
afraid to fail. Be an instrument of positive change, find a way to contribute to
the team and most importantly never compromise your integrity.
– Tami Lee • scheduling lead, Karn/Weadock
Be flexible and adaptable towards change, but steadfast in safety.
– Mark Stahl • customer energy specialist III, Battle Creek
Be an incessant learner about your work, the company, and other great
companies. Everyone you meet is a learning opportunity. Don’t hesitate to
ask questions and step forward to make a difference.
– Gerry Wyse • distribution and customer operations strategy director,
Grand Rapids
To share your voice, email PO Box: Governmental and Public Affairs.
PuTTINg THe PIeCeS
Together
In
THe oLD DayS, before Michigan’s landmark 2008 energy
law, rate cases could stretch from one year to the next. This
delayed reimbursement through customer bills for the many
necessary investments the company makes in its electric and
natural gas services.
“We even had a term for this delay
— ‘regulatory lag,’” said Tim Hoffman,
executive director of regulatory affairs.
On ThE JOB: Lisa Gustafson and Tim
hoffman keep issues aligned in Lansing.
“It created serious financial uncertainty for the company and inhibited
our ability to plan for the future. The new energy law allows us to have rate
cases processed within 12 months of filing. That’s a huge benefit. Not just
for our business, but for our customers as well.”
Fair and timely regulation, said Hoffman, is the true balancing point of
the company’s strategy.
“It’s about all of the strategic pieces working together to help us achieve
positive regulatory results on a timely basis.”
To keep Michigan Public Service Commission (MPSC) commissioners
and staff abreast of the latest issues facing the company and industry,
Hoffman and his regulatory affairs team work as liaisons to the regulators.
They sponsor periodic educational outreach sessions with regulators
to teach them about environmental issues, electric distribution, gas assets
and distribution, and customer operations.
“Employees all over the company serve as knowledgeable resources
and subject matter experts working in partnership with our team to help
regulators make informed decisions,” said Lisa gustafson, manager of
regulatory affairs.
By Lori Stratton

We’re Celebrating Our
125th Anniversary!
n Michigan families and businesses will
see the launch of a series of yearlong
Proudly serving
Michigan for
YEARS
events on Dec. 6 to
celebrate the 125
years Consumers Energy has provided
safe, reliable and affordable
energy. The celebration includes
the announcement of “125th
Anniversary” matching grants
to 10 communities in our service
territory in support of educational, community and
civic development, arts and culture, social services,
environment and other vital projects and programs.
Stay tuned — more details to come.
Thanks from New Jersey
n Chatham Borough, N.J.,
mayor Nelson Vaughn and
Rob Kennedy, a foreman
for Jersey Central Power &
Light, thanked our company
for helping restore power
in their communities during
one of the worst early winter
storms in the region’s recent history. “On behalf of
all the residents of Chatham Borough, NJ, we salute
you for ... your crew’s extraordinary and heroic efforts
to bring our town back to life…we will never forget
you!” Vaughn said in a text message that reached the
desk of Dan Malone, senior vice president of distribution
and customer operations.
Annual Health Care Enrollment
n The company’s
annual health care
enrollment will run
Nov. 15 – 30. Employees
will receive
their enrollment
information from Fidelity
via their work
email or personal
email. Those without
email will receive
their enrollment information
by mail. For information, contact Fidelity at
(800) 260-4015 or visit https://netbenefits.fidelity.com.
DCO Team Engages
Lansing Employees
n The distribution and
customer operations (DCO)
employee engagement
team hosted an open house
at the Lansing service center
on Nov. 2 to encourage
employees to help create a
more positive and rewarding
work environment at Consumers Energy. Nearly
150 employees attended the event. The DCO team
plans to host monthly open houses in service centers
and other company facilities in 2012. Read more
about this event on eLine.
“If employees are truly engaged in their work, they
work more safely, more efficiently and provide better
customer value,” team co-chair Sarah Jorgensen said.
Russell Simulcast Set for Dec. 2
n CMS Energy and Consumers
Energy president and CEO John
Russell will present a “State
of the Business” simulcast for
employees on Dec. 2.
The simulcast will begin at 8 a.m.
and last about an hour, including
time for employees to ask questions.
Russell will update employees on the company’s financial
and operational performance and discuss the 2012
business strategy.
Originating at One Energy Plaza, the simulcast will be
streamed live to all company desktops and conference
rooms in: Alma, Bay City, Battle Creek, Cadillac, Flint, Grand
Rapids, Kalamazoo, Midland, Muskegon, Royal Oak, Saginaw
and Traverse City; and the Cobb, Campbell, Whiting,
and Karn/Weadock generating facilities, and Parnall Office
Complex in Jackson.
If you need a headset to listen to the simulcast on your
desktop, contact the BTS Client Solution Center at (517)
788-2275 or via e-mail to PO Box: BTS Client Solution
Center.
A “Simulcast Workstation Participation Guide” can
be found on the Lotus Notes bulletin board under BTS
Information. DVD copies of the simulcast will be available
by contacting Andrea Cecconie via Lotus Notes.
Craven,
Grayling
Set Safety
Records
n Employees at two
CMS Enterprises’ generating
plants have reached safety milestones. On Nov.
1, Grayling Generating Station in northern Michigan
achieved 20 years and more than 1 million work
hours without a lost-time accident. Employees at
the plant, which burns waste wood and tire-derived
fuel, haven’t had a lost-time accident since the plant
entered commercial operation in June 1992. Craven
County Wood Energy (above) in New Bern, N.C.,
which burns wood and poultry waste, reached 12
years without a lost-time accident on Oct. 28.
Fedeli Named
Plant Manager
n Mario Fedeli has been named
plant manager at CMS Enterprises’
Craven County Wood Energy plant
in New Bern, N.C. He has more
than two decades of experience
in high-level management and
power engineering, including design, testing, commissioning,
troubleshooting and repair of complex
power generating plants worldwide.
HOT Represents
Company
n The Minority Advisory
Panel’s Hispanic Outreach
Team (HOT) represented our
company at the 16th Annual
Cesar E. Chavez Commemorative
Dinner and 13th Annual Hispanic Heritage Month
Celebration on Oct. 20 at the Radisson Hotel in Lansing.
Proceeds from the event support scholarships.

Jason Muller
Mary Stasek
Translating the Triangle:
Customer Value
n Jeff McCann and Steve Callebs of output and
mail processing in business technology solutions
are surrounded by a mountain of energy
bills, yet they never complain. Their job each
workday, and some Saturdays, is to print the energy
bills for our 1.8 million electric customers
and 1.7 million natural gas customers. “Some
would say we are the company’s checkbook.
We simply say we strive to do our best,” said
manager Kevin Blackwell.
McCann and Callebs operate high-speed machines
that print an average of 150,000 bills a day,
then manually spot check them for print quality.
They also ensure that critical information printed
Jason Muller & Mary Stasek
n Juggling a myriad of ever-changing organizational, legislative
and regulatory responsibilities is what Jason Muller and Mary
Stasek do best.
Muller, a legislative assistant for our federal governmental affairs
team in Washington, D.C., and Stasek, administrative support
specialist for our state governmental affairs team in Lansing, monitor
legislative bills as they wend their way through congressional
committees. If there might be a negative impact on the company,
they alert other members of the legislative team.
as company lead on the Low Income Home energy assistance
Program (LIHeaP) at the federal level, Muller also advocates for
support from our Michigan congressional delegation and collaborates
with utilities around the nation on policy initiatives.
In her supporting role, Stasek keeps work flowing forward to meet
critical deadlines. She is the point person for customer inquiries
referred by legislative offices. She also schedules meetings for staff
members and senior management with the governor’s staff, state
legislators and department directors. Stasek serves as secretary of
the employees for Better government Political action Committee.
Translating the Triangle:
Fair and Timely Regulation
Steve Callebs, Kevin Blackwell & Jeff McCann
on scan lines is aligned so that automated bill
processing equipment at central mail remittance,
which receives bill stubs with customers’ payments,
can read them accurately.
McCann and Callebs thoroughly check the daily
report of bills expected and bills printed. They print
missing bills or remove duplicates, so customers
receive the correct number of bills. They also print
customer letters for the Appliance Service Plan,
scheduled power outages, payment plans and stock
statements.
The two bill printing experts are cross-training
their co-workers to ensure continuity of customer
service should they happen to miss work.
Articles by Nancy Miller

2011 Ethics in Action Award
winners Doug Detterman
(far right) and holly Diep-
Newton (second from left)
celebrate the honor with
patti poppe, vice president
of customer experience
and operations, and Amy
Robertson (far left), Direct
payment Office (DpO)
supervisor.
Ethics Excellence
Company spotlights employees
doing it ‘the right way’
many companies, ethics and compliance may only come up for
AT discussion when rules are broken or punishments are handed out.
CMS Energy takes a different approach. Each year, the company spotlights
employees doing the right thing with the Ethics in Action (EIA)
Awards, recognizing the highest commitment to compliance and ethical
standards.
On Oct. 28, the company honored 14 employees at the 2011 EIA Awards
ceremony at corporate headquarters in Jackson. The winners received
plaques and personal congratulations from senior management and
company board members.
Some of the employees honored helped uncover and stop fraud; some
played key roles in complying with policies, regulations and laws; and others
embodied the values of our company’s respectful workplace initiative.
All the winners are “true ethical leaders,” president and chief executive
officer John Russell said.
“You stepped up and made tough decisions when it would have been
easier to do nothing,” Russell told the honorees. “On behalf of everyone
here, we owe you.”
Started five years ago, the EIA awards are a powerful example of CMS Energy’s
commitment to ethics and the behavior
the company values and expects in its employees,
said senior vice president of governmental
and public affairs and chief compliance officer
David Mengebier.
“That’s one of the reasons why we’re a great
company and why we’ve been around for 125
years,” he said.
The 2011 winners, several of whom were suggested
by co-workers through a “People’s Choice”
nomination process, were:
• Doug Detterman, manager of small customer care
• Dave Montague, gas delivery strategy portfolio director
• Jim Heiss, communications consultant
• Mike Luplow, instrument mechanic
• Mike Harrington, senior technical analyst
• Charles Montgomery, principal field leader
• Julie Koerkel, principal field leader
• Paul Moran, plant operator
• Colby Cottick, senior lab tech analyst
• Duncan Tenant, production supervisor
• Holly Diep-Newton, customer service revenue
recovery assistant
• Kim Davis, unit control operator
• Marty Darnell, unit control operator
• Becky Wildenthal, forester
By Todd Schulz
Ethics
in
Action
Overheard at the 2011
Ethics in Action Awards
“ Employees want to work for a company
that’s ethical, treats people well and
does the right thing. I know I want to be
associated with that kind of company.”
– Dave Joos, chairman of CMS Energy’s
board of directors
“ I strive to treat my neighbor as I would have
them treat me. When you place everything
under that attitude, things are easier at work,
in life and wherever you go.”
– Mike Luplow, instrument technician and
2011 EIA Award winner
“ Ethics, honesty, fairness and respect are
a way of life. It’s really about putting
yourself in someone else’s shoes and
thinking through what position they are
in, what they’re doing and how it all comes
together.”
– Doug Detterman, manager of small
customer care and 2011 EIA Award
winner
“ I listen to what employees and customers
have to say, take their concerns to heart
and take action if needed. If I say I’m going
to do things, I follow up with them.”
– Julie Koerkel, principal field leader and
2011 EIA Award winner
2011 Ethics in Action Award winner Charles
Montgomery (left) receives congratulations
from president and chief executive officer John
Russell at the Oct. 28 awards ceremony.
SCAN
This
Watch a short video about what
happens behind the scenes when
you search the Web.
No matter if you’re working late fixing a
gas leak, shoveling snow at home or snowmobiling
with friends — always dress
appropriately for cold weather.
Several layers of loose clothing, plus
gloves and a hat or hood, can protect
against hypothermia or frostbite during
Michigan’s frigid winter weather.
Signs of hypothermia, when body temperature
drops below 95 degrees, include
shivering and feeling lethargic, confused
or tired.
What in the World
TECh TIp
Want to get even more out of Google, the Web’s most popular search engine? Try these
Google shortcuts …
• Sport scores: Type in just the team name, e.g. “Detroit Tigers”
• Calculator: Type in the calculation, e.g. “5+7/8(239)^2”
• Word definitions: Type “define” followed by a space, then the word you want to define,
e.g. “define strategy”
• Flight tracking: Type the airline and flight number in the search box
• Search websites with similar content to a given site: Type “related:” followed by the
web address, e.g. “related: www.consumersenergy.com
Safety & Health
Winter Dress Code
MAggiE MOrgAn, an administrative
specialist in Jackson, has lived in the
United States for almost half her life, but
she still brings some of the culture of her native
Egypt into her daily life. Born in Alexandria, she
moved to the United States for family reasons
when she was 25 years old and has been living
here for about 22 years.
Morgan has a son, Mike, who was born on a trip
back to Egypt and said she teaches him and her
daughter, Melissa, words and phrases in Arabic,
the official language of Egypt. She is still fluent
in Arabic even though she doesn’t speak it as
often as she used to. “I don’t think I’m going to
forget my language,” she said.
The last time Morgan visited Egypt was about
10 years ago, but she keeps in touch with family
over the internet and her mother has visited the
United States. She said she would someday love
to show her son where he was born.
From time to time, Morgan cooks Egyptian and
Middle Eastern food for her family in the U.S.
Stuffed grape leaves and falafel are a couple of
her favorite dishes. She also enjoys listening to
Arabic music, which she said is very poetic.
Above: Maggie Morgan holds a photo from Egypt.
Frostbite can quickly attack exposed
body parts including fingers,
toes, nose and ears.
Warning signs include
numbness or
a painful stinging
sensation.
At work or at
home, stay safe and
layer up.
A Little Bit of Egypt