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FORM 8-K
CURRENT REPORT
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) October 2, 1998
Commission Registrant; State of Incorporation; IRS Employer
File Number Address; and Telephone Number Identification No
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1-9513 CMS ENERGY CORPORATION 38-2726431
(A Michigan Corporation)
Fairlane Plaza South, Suite 1100
330 Town Center Drive
Dearborn, Michigan 48126
(313) 436-9261
1-5611 CONSUMERS ENERGY COMPANY 38-0442310
(A Michigan Corporation)
212 West Michigan Avenue
Jackson, Michigan
(517) 788-1030
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ITEM 5. OTHER EVENTS.
On Friday, October 2, 1998, Consumers Energy Company (Consumers), the principal
subsidiary of CMS Energy Corporation (CMS), initiated a process for the
solicitation of bids to acquire Consumers' rights to 1240 megawatts (MW) of
contract capacity and associated energy (PPA Rights) under its Power Purchase
Agreement (PPA) with Midland Cogeneration Venture Limited Partnership (MCV). The
term of the PPA is for 35 years, which commenced on the date of commercial
operation of the MCV's generating facilities in March 1990. The PPA Rights are
being offered in one 1240 MW block or in 620 MW pieces, for the period from the
effective date in 1999 through either September 2007 or March 2025.
Morgan Stanley Dean Witter has been retained to act as financial advisor in
the solicitation of bids, and is contemporaneously distributing a summary
information brochure to potentially interested parties. Parties who sign a
confidentiality agreement will receive additional confidential information,
after which they will submit indicative bids. Consumers anticipates that those
parties who are invited into a more detailed investigation will be asked to
submit binding bids in mid-January 1999.
Consumers has reserved the right at any time, in its sole discretion, to
terminate the bidding process or to reject any or all bids. Consumers will not
consummate a transaction unless important customer benefits flow from the
transaction. Any such transaction would be subject to the approval of
Consumers' Board of Directors and obtaining satisfactory ratemaking and
accounting treatment from the Michigan Public Service Commission and the
Federal Energy Regulatory Commission with respect to the definitive agreements.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CMS ENERGY CORPORATION
Dated: October 2, 1998 By: /s/ A.M. Wright
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Alan M. Wright
Senior Vice President and
Chief Financial Officer
CONSUMERS ENERGY COMPANY
Dated: October 2, 1998 By: /s/ A.M. Wright
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Alan M. Wright
Senior Vice President and
Chief Financial Officer