1
FORM 11-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ___________________ to ____________________
Commission file number 1-9513
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
212 West Michigan Avenue
Jackson, Michigan 49201
---------------------------------------------------
(Full title of the Plan and address of the Plan, if
different from that of the issuer named below)
CMS ENERGY CORPORATION
Fairlane Plaza South, Suite 1100
330 Town Center Drive
Dearborn, Michigan 48126
--------------------------------------
(Name of Issuer of the Securities held
pursuant to the Plan and the address
of its principal executive office)
2
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
FINANCIAL STATEMENTS AS OF DECEMBER 31, 2000 AND 1999
TOGETHER WITH AUDITORS' REPORT
3
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Employees' Savings & Incentive Plan of Consumers Energy Company:
We have audited the accompanying statements of financial position of EMPLOYEES'
SAVINGS & INCENTIVE PLAN OF CONSUMERS ENERGY COMPANY (the "Plan") as of December
31, 2000 and 1999, and the related statements of changes in members' equity for
each of the three years in the period ended December 31, 2000. These financial
statements and the schedules referred to below are the responsibility of the
Plan administrator. Our responsibility is to express an opinion on these
financial statements and schedules based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by the Plan administrator, as well as evaluating the overall financial
statement presentation. We believe our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Plan as of December 31,
2000 and 1999, and the changes in members' equity for each of the three years in
the period ended December 31, 2000 in conformity with accounting principles
generally accepted in the United States.
Our audits were made for the purposes of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes as of December 31, 2000 and reportable transactions for
the year ended December 31, 2000 are presented for purposes of additional
analysis and are not a required part of the basic financial statements but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental schedules have been subjected to the
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, are fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/ ARTHUR ANDERSEN LLP
Detroit, Michigan,
June 8, 2001.
4
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
INDEX TO FINANCIAL
STATEMENTS AND SCHEDULES
STATEMENTS OF CHANGES IN MEMBERS' EQUITY FOR EACH OF THE THREE YEARS IN THE
PERIOD ENDED DECEMBER 31, 2000
STATEMENTS OF FINANCIAL POSITION AS OF DECEMBER 31, 2000 AND 1999
NOTES TO FINANCIAL STATEMENTS
SCHEDULE I - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AS OF
DECEMBER 31, 2000
EXHIBIT A - CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
5
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
STATEMENTS OF CHANGES IN MEMBERS' EQUITY
For the Years Ended December 31,
---------------------------------------------------------
2000 1999 1998
------------- ------------- -------------
MEMBERS' EQUITY - BEGINNING OF PERIOD $ 803,664,677 $ 747,234,232 $ 627,454,980
------------- ------------- -------------
CHANGES DURING PERIOD:
Members' contributions (Note 1) 50,038,416 63,688,492 38,766,501
Employers' contributions (Note 1) 26,059,412 21,528,599 17,970,163
Rollover of loans from acquisitions -- 2,757,779 --
------------- ------------- -------------
76,097,828 87,974,870 56,736,664
------------- ------------- -------------
Investment income 46,159,684 20,201,298 18,247,589
Interest income from participant loans 2,024,046 1,933,968 1,775,146
Interest income from short-term investments 1,671,202 821,110 1,269,491
Gain on securities sold or distributed
(Note 2) 18,558,454 50,657,095 31,251,257
Change in unrealized appreciation (depreciation)
of investments (Note 2) (66,728,116) (65,365,999) 51,107,042
------------- ------------- -------------
1,685,270 8,247,472 103,650,525
------------- ------------- -------------
Distribution to Members (40,969,807) (39,791,897) (40,607,937)
------------- ------------- -------------
Net change during period 36,813,291 56,430,445 119,779,252
------------- ------------- -------------
MEMBERS' EQUITY - END OF PERIOD $ 840,477,968 $ 803,664,677 $ 747,234,232
============= ============= =============
The accompanying notes are an integral part of these statements.
6
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
STATEMENTS OF FINANCIAL POSITION
As of December 31,
---------------------------------------
2000 1999
------------ ------------
ASSETS:
Investments (Note 1) -
Guaranteed investment contracts (at cost
plus interest earned thereon) $ 82,171,404 $116,931,823
Common stock of corporations other than CMS
Energy (cost $214,687,933 in 2000 and
$227,705,157 in 1999) 235,993,560 286,770,509
Common stock of CMS Energy
(cost $216,233,936 in 2000 and
$178,102,325 in 1999) 274,414,865 207,530,294
Nicholas-Applegate Core Growth Institutional
Portfolio (cost $74,302,414 in 2000 and
$38,009,779 in 1999) 81,038,565 78,891,151
Smith Barney International Equity Collective
Trust (cost $20,602,358 in 2000 and
$16,387,345 in 1999) 27,134,753 31,302,707
Vanguard Large-Cap Value Index
(cost $5,761,642 in 2000 and
$1,666,869 in 1999) 5,814,404 1,631,425
Vanguard S&P 500 Index
(cost $11,876,675 in 2000 and
$4,235,115 in 1999) 10,861,360 4,513,877
Vanguard Large-Cap Growth Index
(cost $21,474,743 in 2000 and
$6,915,955 in 1999) 16,374,822 7,401,056
Nicholas-Applegate Small-Cap Growth Fund
(cost $20,840,120 in 2000 and
$2,686,022 in 1999) 12,974,906 3,394,433
------------ ------------
Subtotal 746,778,639 738,367,275
Short-term investments (at cost which
approximates market) 44,865,202 17,011,128
Loans to Members (at cost which approximates
market) 33,429,220 35,303,712
------------ ------------
Total Investments 825,073,061 790,682,115
Other Assets -
Current receivables from Members 4,226,605 3,618,064
Current receivables from Employers 10,653,672 8,880,013
------------ ------------
14,880,277 12,498,077
Income Receivable
Interest and dividends receivable 524,630 484,485
------------ ------------
MEMBERS' EQUITY 840,477,968 803,664,677
============ ============
The accompanying notes are an integral part of these statements.
7
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
NOTES TO FINANCIAL STATEMENTS
(1) PLAN DESCRIPTION
General
The Employees' Savings & Incentive Plan of Consumers Energy Company (the
"Plan") is an employee benefit plan in which participant contributions are
supplemented by contributions from the Company/Employer (Consumers and CMS
Energy and their subsidiaries which are at least 80% owned and have adopted the
Plan). Mr. T. A. McNish, Vice-president, Secretary and Assistant Treasurer of
Consumers Energy Company, is the Plan Administrator. The information provided
below is only a summary of the Plan's provisions. Reference should be made to
the Plan documents for more complete information.
Trustee
The Plan's funds are held in trust for the benefit of members covered by the
Plan under the Trust Agreement with State Street Bank and Trust (the "Trustee"),
effective April 1997.
Eligibility
To be eligible to participate in the Plan, an employee must be a regular
employee, as defined in the Plan agreement.
Contributions
Each employee electing to participate in the Plan ("Member") contributes by
payroll deductions not less than 1% nor more than 16% of his compensation up to
a maximum of $10,500 for 2000 and $10,000 for 1999. Each Member may change the
amount of his contributions at any time by giving his Employer advance notice in
writing. The change will be effective as soon as administratively feasible. A
Member may discontinue contributions as of any pay date upon prior notice to his
Employer. However, if he discontinues contributions without simultaneously
making an election for Elective Employer Contributions, he may not resume making
contributions for three months.
A Member can choose an "Elective Employer Contribution" option, which allows the
Member to reduce his salary by as much as 12% and have this amount contributed
by the Employer to the Plan. If a Member's regular annual salary is equal to or
more than $75,000, the most that can be contributed by the Employer on behalf of
the Member to the Plan is 9%. Members' earnings related to such contributions
are not currently taxable.
Each Employer contributes a Matching Employer Contribution equal to 50% of
certain contributions by each of its participating employees. Such Employer
1
8
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
NOTES TO FINANCIAL STATEMENTS
(Continued)
(1) PLAN DESCRIPTION (Continued)
contributions are limited to not more than 3% of each Member's compensation. The
contributions of Members and the Employers are transferred monthly to the
Trustee.
Each Employer may contribute an Incentive Contribution which is determined at
the end of each year based on earnings performance goal set by Company at the
beginning of the year.
The Incentive Contribution will be based on the Member's net Elective Employer
and Participant Contributions of up to 6% of each Member's compensation.
The Plan Administrator may exclude Incentive Contributions to the accounts of
certain officers of Employers.
Matching Employer and Incentive Contributions vest as follows: 10% for each of
the first four years of service with the Employer, and 20% for each of the next
three years of service. Member contributions and related earnings are fully
vested at all times.
Member Loans
Members may borrow from the Plan up to 50% of their account balance, to a
maximum not exceeding $50,000, including the vested portion of the Matching
Employer Contributions, for extraordinary or emergency needs as defined in the
Plan and at the discretion of the Plan Administrator. Loan transactions are
treated as a transfer to (from) the investment fund from (to) the Participant's
loan fund (Fund D). Loan terms range from one to five years* and are secured by
the balance in the Participant's account.** Repayments of principal and interest
are made primarily through payroll deduction.
Plan-Related Expenses
The Company pays expenses relating to the administration of the Plan. Brokerage
fees, commissions, stock transfer taxes and other expenses in connection with
the purchases, sales and distributions of securities for each investment fund
are charged to the fund that incurred the cost.
*Up to ten years for purchase of a principal residence.
**A new loan rate is determined by subtracting one full percentage point from
the current major New York bank prime rate. The rate on new loans taken during
2000 was 7.50 percent to 8.50 percent.
2
9
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
NOTES TO FINANCIAL STATEMENTS
(Continued)
(1) PLAN DESCRIPTION (Continued)
Fund Investments
Fund A - The investments in this fund consist of guaranteed investment
contracts with the New York Life Insurance Company, New York,
New York; Principal Mutual Life Insurance Co, Des Moines,
Iowa; Prudential Asset Management Company, Chicago, Illinois;
and Travelers Life & Annuity, Hartford, Connecticut; and cash,
temporary investments of any type or cash equivalents as the
Trustee shall deem necessary or advisable to maintain as part
of this fund within the limitations specified in the Trust
Agreement.
Fund B - The investments in this fund may consist of common stocks and
securities convertible into common stock (other than
securities of CMS Energy Corporation) selected by the
Investment Manager, Independence Investment Associates, Inc.,
Boston, Massachusetts, in its sole discretion, and such
amounts of cash, temporary investments of any type or cash
equivalents as the Investment Manager shall deem necessary or
advisable to maintain as part of the fund within the
limitations specified in the Trust Agreement.
Fund C - The investments in this fund may consist of common stock of
CMS Energy Corporation and such amounts of cash, temporary
investments of any type or cash equivalents as the Trustee
shall deem necessary or advisable to maintain as part of this
fund within the limitations specified in the Trust Agreement;
subject to the limitation that the total number of shares held
at any time by this fund, shall not exceed 10% of the
outstanding voting shares of CMS Energy Corporation.
Employers' contributions must be invested in this fund.
Fund D - The investments in this fund consist of the promissory notes
of Plan Members.
Fund E - The investments in this fund may consist of mid-cap growth-
oriented common stock (other than securities of CMS Energy
Corporation) selected by the Investment Manager, Nicholas-
Applegate Capital Management, San Diego, California, in its
sole discretion, and such amounts of cash, temporary
investments of any type or cash equivalents as the Investment
Manager shall deem necessary or advisable to maintain as part
of the fund within the limitations specified in the Trust
Agreement.
3
10
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
NOTES TO FINANCIAL STATEMENTS
(Continued)
(1) PLAN DESCRIPTION (Continued)
Fund F - The investments in this fund may consist of international
common stocks selected by the Investment Manager, Salomon
Smith Barney Capital Management, New York, New York, in its
sole discretion, and such amounts of cash, temporary
investments of any type or cash equivalents as the Investment
Manager shall deem necessary or advisable to maintain as part
of the fund within the limitations specified in the Trust
Agreement.
Fund H - The investments in this fund may consist of stocks of the S&P
500 Index that are considered value stocks as selected by The
Vanguard Group.
Fund I - The investments in this fund consist of stocks of the S&P 500
Index as selected by The Vanguard Group.
Fund J - The investments in this fund consist of stocks of the S&P 500
Index that are considered growth stocks as selected by The
Vanguard Group.
Fund K - The investments in this fund may consist of small-cap growth-
oriented common stocks selected by the Investment Manager,
Nicholas-Applegate Capital Management, San Diego, California,
in its sole discretion.
Reallocations
All or part of a Member's past contributions which are in the Member's account
on a Valuation Date may be reallocated among Fund A, Fund B, Fund C, Fund E,
Fund F, Fund H, Fund I, Fund J or Fund K on a Valuation Date by giving his
employer advance notice in writing of such change. Any such reallocations of
contributions will be done on the basis of the value of the contributions on
such Valuation Date.
Forfeitures
The Plan provides that Members who receive a distribution, under certain
conditions, forfeit all or a portion of the value of any Matching Employer and
Incentive Contributions credited to their accounts. Such amounts forfeited
totalled approximately $229,335 in 2000 and are treated as a reduction of the
Employers' contribution liability.
4
11
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
NOTES TO FINANCIAL STATEMENTS
(Continued)
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Valuations
The accompanying financial statements reflect the accrual basis of accounting.
Investments, other than short-term, in Funds B, C, E, F, H, I, J and K are
stated at current market value. Market value for most Fund B, C, E, F, H, I, J
and K common stock is defined as the closing price of such stock as shown in a
composite report of one or more generally recognized exchanges, including the
New York Stock Exchange. There are also some securities which are traded in the
over-the-counter ("OTC") market. OTC issues are priced at the bid price or
"last" price furnished by the NASDAQ National Market. Short-term investments
held in Funds A, B, C, E, F, H, I, J and K are stated at cost which approximates
market.
Gains and Losses
Amounts relating to gain (loss) on securities sold or distributed and change in
unrealized appreciation (depreciation) as reported in the statement of changes
in members' equity for the years ended December 31, 2000, 1999 and 1998 have
been presented in conformity with the Department of Labor reporting
requirements. Department of Labor rules require that realized gains (losses) and
unrealized appreciation (depreciation) be based on the market value of the
assets at the beginning of the Plan year or at the time of purchase during the
year.
Guaranteed Investment Contracts
The Plan has entered into several fully benefit-responsive investment contracts
with various insurance companies. All of these contracts are held in Fund A and
are credited with interest and charged for Plan withdrawals and administrative
expenses. The contracts are included in the financial statements at contract
value (cost plus accrued interest less withdrawals) which approximates fair
value. The contracts earn interest at fixed rates ranging from 6.00% to 8.05%
and mature between November 2001 and June 2005. The average aggregate yield for
these contracts was 6.81% and 7.38 in 2000 and 1999, respectively.
Estimates
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.
5
12
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
NOTES TO FINANCIAL STATEMENTS
(Continued)
(3) FEDERAL INCOME TAX ASPECTS OF THE PLAN
The last determination letter received by the Company from the Internal Revenue
Service was dated November 20, 1996. The determination letter states that the
Plan qualifies under Section 401(a) of the Internal Revenue Code (the "Code") of
1954 as amended by the "Employee Retirement Income Security Act of 1974"
("ERISA") and is exempt from taxation under Section 501(a) of the Code. Under
existing Federal income tax laws, (a) the Company is entitled to deduct its
contributions to the Plan in computing its Federal income tax; (b) the income of
the trust funds accumulated under the Plan is exempt from Federal income tax;
and (c) Members are not subject to tax on amounts contributed by the Company for
their benefit until such time as such amounts are distributed to them, at which
time they are taxable as ordinary income unless distributed as an "eligible
rollover distribution."
(4) RECONCILIATION OF THE FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of members' equity and distributions paid to
members per the financial statements to members' equity and distributions paid
to members per the Form 5500 for the Plan year 2000:
Total
------------
Members' Equity per Financial Statements $840,477,968
Benefits payable to members 2000 (3,892,347)
------------
Members' Equity per Form 5500 $836,585,621
============
Distributions paid to members per
Financial Statements $ 40,969,807
Benefits payable to members 1999 (4,180,394)
Benefits payable to members 2000 3,892,347
------------
Distributions paid per Form 5500 $ 40,681,760
============
(5) PLAN TERMINATION
The Employers expect the Plan to be permanent, but since future conditions
affecting the Plan cannot be anticipated or foreseen, the Employers reserve the
right, by action of the Board of Directors of Consumers Energy Company, to
terminate or amend the Plan in whole or in part.
Upon termination or partial termination of the Plan, or upon a complete
discontinuance of contributions, the interest of each person in the Plan shall
be segregated and set aside by the Trustee and one hundred percent (100%) of the
value of the Matching Employer contribution credited to the account of a person
having an interest in the Plan shall be vested in such person.
6
13
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
NOTES TO FINANCIAL STATEMENTS
(Continued)
(6) GENDER
Any masculine terminology used herein shall also include the feminine.
7
14
SCHEDULE I
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
ITEM 4(i) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 2000
Current
Identity of Issuer and Title of Issue Value
------------------------------------- -----------
GUARANTEED INVESTMENT CONTRACTS
(Fund A) -
New York Life Insurance Company
(7.10%, matures 06/27/2005) $11,120,197
Principal Mutual Life Insurance
Company (7.20%, matures 04/01/03) 7,796,483
Principal Mutual Life Insurance
Company (6.00%, matures 02/15/2005) 16,747,011
The Prudential Asset Management Company
(6.50%, matures 11/30/2001) 16,589,209
The Prudential Asset Management Company
(6.97%, matures 06/21/2004) 7,758,051
Travelers Life and Annuity
(6.45%, matures 05/12/2005) 22,160,453
-----------
Total Guaranteed Investment Contracts $82,171,404
-----------
COMMON STOCK OF CORPORATIONS OTHER THAN
CMS ENERGY CORPORATION (Fund B) -
ADC TELECOMMUNICATIONS $ 338,938
AES CORPORATION 1,273,625
AT&T CORP LIBERTY MEDIA 1,217,913
ABBOTT LABS 2,300,781
ADOBE SYSTEMS INC 546,963
AIR PRODUCTS & CHEMICALS INC 1,266,900
ALLEGHENY ENERGY INC 732,450
ALLERGAN INC 1,568,363
ALTERA CORPORATION 599,925
ALZA CORPORATION 1,891,250
AMERICA ONLINE INC 2,101,920
AMERICAN HOME PRODUCTS 2,605,550
AMERICAN INTERNATIONAL GROUP INC 2,276,794
ANADARKO PETROLEUM CORP 362,508
ANHEUSER BUSCH INC 1,010,100
ANALOG DEVICES 619,369
APPLIED MATERIALS 576,631
AVERY DENNISON CORP 1,174,325
BANK AMERICA CORP 3,380,988
BANK NEW YORK INC 3,167,763
BAXTER INTERNATIONAL INC 2,119,500
BELLSOUTH CORPORATION 294,750
BLACK & DECKER CORPORATION 1,157,875
15
SCHEDULE I
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
ITEM 4(i) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 2000
(Continued)
Current
Identity of Issuer and Title of Issue Value
------------------------------------- -----------
BRINKER INTERNATIONAL INC 785,850
BRISTOL MYERS SQUIBB CO 4,332,738
BURLINGTON NORTHERN SANTA FE CORP 1,016,419
CVS CORPORATION 887,075
CALPINE CORPORATION 1,095,019
CHEVRON CORPORATION 996,363
CHUBB CORPORATION 1,245,600
CISCO SYSTEMS INC 5,890,500
CITIGROUP INC 8,925,725
CLEAR CHANNEL COMMUNICATIONS 1,114,063
COLGATE PALMOLIVE CO 955,340
COMERICA INC 1,430,938
COMPAQ COMPUTER CORPORATION 379,260
COMVERSE TECHNOLOGY INC 869,000
CONVERGYS CORPORATION 865,469
CORNING INC 1,267,500
DISNEY WALT CO 1,250,100
DOMINION RES INC VA NEW 911,200
DOW CHEMICAL CO 1,197,638
DUPONT E I DE NEMOURS & CO 1,507,350
DUKE ENERGY 1,466,300
E M C CORPORATION 3,384,850
EASTMAN CHEMICAL CO 745,870
EL PASO ENERGY CORPORATION 2,471,063
EXELON CORPORATION 2,057,153
EXXON MOBIL CORPORATION 6,285,581
FEDERAL NATL MTG ASSN 3,799,650
FIRSTAR CORPORATION 1,397,320
FIRST DATA CORPORATION 4,315,106
FLEETBOSTON FINANCIAL CORPORATION 4,244,563
FORD MOTOR COMPANY 1,185,938
FOREST LABS INC 677,663
GAP INC 548,250
GENERAL DYNAMICS CORPORATION 990,600
GENERAL ELECTRIC COMPANY 10,723,619
GENERAL MOTORS CORPORATION 644,000
HARTFORD FINANCIAL SERVICES GROUP 2,493,063
HEWLETT PACKARD CO 1,426,620
HOME DEPOT INC 2,307,219
HONEYWELL INTERNATIONAL INC 757,000
INFINITY BROADCASTING CORPORATION 687,263
INGERSOLL-RAND COMPANY 1,415,375
INTEL CORPORATION 4,416,181
16
SCHEDULE I
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
ITEM 4(i) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 2000
(Continued)
Current
Identity of Issuer and Title of Issue Value
------------------------------------- -----------
INTERNATIONAL BUSINESS MACHINES 2,915,500
INTERPUBLIC GROUP COS INC 1,340,719
INTIMATE BRANDS INC 396,000
JDS UNIPHASE CORPORATION 566,950
JOHNSON & JOHNSON 5,295,150
KERR MCGEE CORPORATION 729,619
KIMBERLY CLARK CORPORATION 1,385,524
KOHLS CORPORATION 2,287,500
LABORATORY CORPORATION AMERICA HOLDINGS 1,161,600
LEAR CORPORATION 674,900
LIMITED INC 569,888
LINCOLN NATIONAL CORPORATION 1,679,594
LINEAR TECHNOLOGY CORPORATION 929,625
LOWE'S COMPANIES INC 1,068,000
MARSH & MCLENNAN COS 561,600
MAXIM INTEGRATED PRODUCTS 545,063
MERCK & CO INC 6,413,313
MICROSOFT CORPORATION 4,480,638
MINNESOTA MINING & MANUFACTURING CO 1,952,100
MORGAN J P & CO INC 2,697,650
MOTOROLA INC 923,400
NORTEL NETWORKS 2,177,044
NUCOR CORPORATION 690,563
OMNICOM GROUP 1,657,500
ORACLE CORPORATION 2,917,875
PARKER HANNIFIN CORPORATION 869,263
PEPSICO INC 961,513
PFIZER INC 8,454,800
PHARMACIA CORPORATION 1,116,300
PHILIP MORRIS COS INC 1,425,600
PINNACLE WEST CAP CORPORATION 771,525
PRAXAIR INC 1,144,875
QWEST COMMUNICATIONS INTERNATIONAL INC 2,181,200
RADIOSHACK CORPORATION 1,250,125
RELIANT ENERGY INC 1,515,938
REYNOLDS & REYNOLDS CO 502,200
ROYAL DUTCH PETROLEUM CO 2,355,881
RYDER SYSTEMS INC 460,513
SBC COMMUNICATIONS 3,605,125
SCI SYS INC 303,313
ST JUDE MEDICAL INC 448,494
ST PAUL COS INC 1,721,706
SANMINA CORPORATION 766,250
SCHERING PLOUGH CORP 1,838,700
17
SCHEDULE I
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
ITEM 4(i) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 2000
(Continued)
Current
Identity of Issuer and Title of Issue Value
------------------------------------- ------------
SIEBEL SYS INC 797,975
SOLECTRON CORPORATION 786,480
SPRINT CORPORATION 745,469
SPRINT CORPORATION PCS 521,156
STILWELL FINANCIAL INC 914,950
SUN MICROSYSTEMS INC 1,803,513
TJX COS INC NEW 951,825
TEXAS INSTRUMENTS INC 1,866,575
TIFFANY & CO 635,663
TIME WARNER INC 1,504,512
TORCHMARK INC 926,344
TYCO INTERNATIONAL LTD 3,341,100
USX MARATHON GROUP 1,029,525
UNILEVER N V 1,051,056
UNION PAC CORPORATION 400,925
UNITED TECHNOLOGIES CORPORATION 2,484,550
VERIZON COMMUNICATIONS 932,325
VERITAS SOFTWARE CORPORATION 910,000
VIACOM INC 1,767,150
VISTEON CORPORATION 420,900
WALGREEN CO 731,719
WAL MART STORES INC 3,176,875
WASHINGTON MUTUAL CO 1,002,881
WELLPOINT HEALTH NETWORKS INC 599,300
XILINX INC 691,875
YAHOO INC 339,706
----------
TOTAL COMMON STOCK OF CORPORATIONS OTHER
THAN CMS ENERGY CORPORATION (Fund B) $235,993,560
------------
*COMMON STOCK OF CMS ENERGY CORPORATION
(Fund C) $274,414,865
------------
LOANS TO MEMBERS (Fund D) (Loans mature
during periods ranging from 0-10
years and at interest rates from
5.25% to 8.50% $ 33,429,220
------------
NICHOLAS-APPLEGATE CORE GROWTH
INSTITUTIONAL PORTFOLIO (Fund E) $ 81,038,565
------------
SMITH BARNEY INTERNATIONAL EQUITY
COLLECTIVE TRUST (Fund F) $ 27,134,753
------------
18
SCHEDULE I
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF
CONSUMERS ENERGY COMPANY
ITEM 4(i) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 2000
(Continued)
Current
Identity of Issuer and Title of Issue Value
------------------------------------- ------------
VANGUARD LARGE-CAP VALUE INDEX
FUND (Fund H) $ 5,814,404
------------
VANGUARD S&P 500 INDEX FUND
(Fund I) $ 10,861,360
------------
VANGUARD LARGE-CAP GROWTH INDEX
FUND (Fund J) $ 16,374,822
------------
NICHOLAS-APPLEGATE SMALL-CAP GROWTH
FUND (Fund K) $ 12,974,906
------------
Total All Funds $780,207,859
============
*SHORT-TERM INVESTMENTS - STATE STREET
(Funds A, B, C, E, F, H, I, J and K) $ 44,865,202
------------
Total Investments $825,073,061
============
*Represents Party-in-Interest
19
EXHIBIT A
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference of our report dated June 8, 2001 included in the Employees' Savings &
Incentive Plan of Consumers Energy Company's Annual Report on Form 11-K for the
year ended December 31, 2000 into CMS Energy Corporation's previously filed
Registration Statement Files No. 33-29681, No. 33-61595 and No. 333- 76347.
/s/ ARTHUR ANDERSEN LLP
Detroit, Michigan,
June 8, 2001
20
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of
1934, CMS Energy Corporation has duly caused this annual report to be signed by
the undersigned thereunto duly authorized.
EMPLOYEES' SAVINGS & INCENTIVE PLAN OF CONSUMERS ENERGY COMPANY
By /s/ Thomas A McNish
-------------------------------------------------------------
Thomas A McNish
Vice-President and Secretary
Dated: June 8, 2001.