ML19345E386

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Annual Financial Rept 1964
ML19345E386
Person / Time
Site: Big Rock Point File:Consumers Energy icon.png
Issue date: 02/18/1965
From: Kettner R
CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.)
To:
References
NUDOCS 8101150828
Download: ML19345E386 (33)
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DATE RECElvfD N O.i CC574kCO MAR CNPf.aY 6-17-65 M4 L L gg*,gger LTR MEMO: REPOR'i OTHER Jacks:n, Michigan x 10: OR t G.. , CC. OTM8R. 1 ey re:4 ACTION t=ECE55ARY O CONCURRENCE O DATE ANSWERED NO ACflON NECE$$ ARY O COMMENT O aY, CLo$ $lF.r POST OFFICE FILE CODE doc 302 50-155 (dJPE mW) U REG NO DESCRIPTION (Must Be Unclossified) REFERRED TO D ATE RECEIVED By D ATE M' M O b'M

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I e n4 n .a jp A - - 3 n y a map: 1964 Annual Report %gn-w. a / ' NI., ~ 9j',i. phJ{. u c ur. "W- 'W 212 West Michigan Avenue b Jackson, Michigan 49201 U d. k h' t w R7*7s $[i. g;,.Ng % CONTENTS 5 JIdG$s [$si.f,b,jQ.- - r,hQ Comparison of Results, 1964-1963. .2 .y Letter of the Chairman of the Board At the New York Stock Exchange, a Con. sumers Power exhibit tells the story of and the President. 3 Outstate Michigan in a display room which attracts a million viewers annually. 1964-A Year of Economic Growth and Rising Sales of Energy. 7 Electric System h1ap. .13 Great Lakes America... Nuu a Gas System hiap. .14 Few places on earth can match the resources of Great Lakes America, the Financial Review-1964. .17 rich and diversified basin that arcs wide around the U. S. shoreline of the world's Statement of Income. .21 greatest concentration of fresh water. Here are business and industry that Balance Sheet. .22 pace the national economy. Here are Statement of Retained Earnings. .24 farms and orchards that feed milliom across the continent. Here are educa-Notes to Financial Statements. .24 tional and cultural institutions that enrich the present and shape the future. Auditors' Opinion. .25 Here are modern resort and recrea-tional facilities. Financial Summary, 1964-1954. .26 Consumers Power Company serves an area of 30,000 square miles in the Electric and Gas Operatine heart of this central source of American Comparison, 1964-1954. .28 economic vitality. Board of Directors. .30 Company Officers, and Divisions and hianagers. 32 Transfer Agents, and Registrars. .32 Notice of Annual hiceting. .32 1 1

1984 Two-Year Comparison 1963 PER CENT INCREASE oR 1964 1963 (DECREASE) 5221,739,000 $209,203,000 6.0 Electric revenue 153,779,000 142,115,000 8.2 Gas revenue 376,400,000 352,262,000 6.9 Total operating revenue.. Cost of fuel used in electric and steam heating 38,329,000 35,470,000 8.1 operations. Cost of natural gas sold. 65,340,000 63,313,000 3.2 Total payroll including construction 74,700,000 71,400,000 4.6 Taxes 73,359,000 68,165,000 7.6 50,384,000 44,028,000 14.4 Earnings a vailable to common stock Earnings per share of common stock-average. 2.48 2.19 13.2 Earnings per share of common stock-end of year 2.46 2.18 12.8 Dividends paid per share on common stock 1.60 1.475 8.5 Shaies of common stock outstanding-end of year 20,469,000 20,238,000 1.1 Cost of plant additions and improvements. $71,513,000 $64,352,000 11.1 Kilowatt-hour sales 12,462,374,000 11,603,588,000 7.4 Peak load-kilowatu.... 2,375,000 2,217,000 7.1 Electric generating capacity, December 31 (kilo-watts) 2,790,000 2,792,000 (.1) Gas sales (thousands of cubic feet) 171,551,000 156,169,000 9.8 I Max.aum 24. hour natural gas send-out (thou-sanis of cubic feet)... 1,078,000 I 1,141,000 (5.5) i 2

acy; - ~ -,3&q (W T "'? ~ ~ pN "/s-@ j 1 r t )$7 - $%. g y u }l ,n y h h5 / QqV 3 I ~%' S 1s ~ d ,ity e{.., j hh: hlph;! & ') ). N u.. -= f:;q l {,.MtQ -!.a[ %, 7.,. .g 7% '+ m nx A. H. AYMoND ]AMEs H. CAMPBELL Chairman of the Board President p_ F To the Share Owners: um Increased sales, substantial capital investment, improved customer service, lower rates, and larger earnings highlighted Consumers Power Company's operations during 1964. The year was marked by economic growth in the Company's service area and by further strengthening of the electric and natural gas systems to meet the in-creasing requirements of our customers. Sales of both electricity and natural gas were well above 1963 figures. Total operating revenue reached $376,400,000, a 77c increase. Earnings per share on the average number of common shares out-standing increased from $2.19 in 1963 to $2.48 in 1964. Dividends paid on common stock amounted to S1.60 per share as compared with S1.475 per share in 1963. The current annual dividend rate is $1.70 per share. Michigan industry is Expanding During the last two years more than 100,000 new industrial jobs were created in Michigen. A major portion of this industrial growth 3 i was in the area served by the Company. l l l

Ta the Share Owners untinr<d l The many large industrial expansion programs announced for ~ Michigan during 1964 emphasize the dynamic character of the state's economy. General Motors announced 17 new plants or plant additions, totaling _8.4 million square feet, in Consumers Power Company's . service area. When completed, these additions will provide 25,000 new jobs. Ford, Chrysler, Stauffer Chemical, Du Pont and other companies coinpleted or began construction of approximately 100 new or expanded plants representing additional millions of square feet and many thousands of additionaljobs. To keep pace with Michigan's economic development, Consumers Power in 1964 invested S71,500,000 in expansion and improvement of service facilities. 'In the ten years 1955-64 expenditures for such purposes have averaged 590,000,000 per year. For 1965, the budgeted figure is 592,000,000. l A S40,000,000 issue of debentures was sold in September. Proceeds were used to retire bank loans and to help finance the construction program. Continued Growth Foreseen Michigan industry, led by the automobile manufacturers, is ex-pected to have another good year in 1965. The industrial growth described above will result in significant increases in the Company's sales of electricity and natural gas. Favorable conditions are forecast for agricultural production and for the tourist and resort business. The sustained progress of Consumers Power Company as recorded l in this Annual Report could not have been accomplished without l able and dedicated personnel. The Company counts experience, technological skill, leadership ability and vigor among the demon-l strated assets of its 9,752 employees. l M r J AMEs H. CAMPBELL A.H.AYMOND l President Chairman of the Board l 4 February 18,1965 e y%-

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A Year of Economic Growth and Rising Sales of Energy l hiichigan's economic pace quickened in the heart of one of the world's most prosper. l 1964. For most of the 1.6 million industrial, ous regions, Great Lakes America. coramercial, residential and farm customers Company Growth Continues i served by Consumers Power Company,it was a prosperous year. Favorable economic con-Consumers Power ended the year serving ditions were reflected in increased sales of more electric and gas customers than ever electricity and natural gas. before. The hiichigan area in which the Com-At year-end the number of electric cus-i pany operates is highly industrialized, and tomers had reached 931,791, an increase of manufacturing again led the way as economic 20,120 during 1964. Kilowatt-hour electric activity continued at a high level. The auto- ' sales were up 77o. Residential electric cus-mobile industry completed its third consecu-tomers used an average of 4,677 kilowatt-tive year of near-record production. About a hours, and paid an average pric-of 2.33d per third of all cars and trucks produced in the kilowatt-hour, compared with 4,530 kilo-United States are manufactured in hiichigan, watt-hours and 2.34d in 1963. and about half of these ir. plants served by On December 17, a new electric system Consumers Power. record for one-hour peak demand of Other hiichigan industries likewise found 2,375,000 kilowatts was established, exceed-business conditions favorable, including pro-ing the record one-hour demand of Decem-ducers of chemicals, pharmaceuticals, proc-ber 19,1963 by 77c. essed foods, metal products, machinery, The number of gas customers at year-end household appliances,lu mber, wood products, was 659,151, an increase of 38,039 during the paper, furniture, cement, and stone, clay and year, larger than any previous one-year in-glass products. Increased sales volumes were crease. Volume sales of gas were up 107c. achieved in the primary metals industries and With the great majority of new gas cus-in production of electrical equipment, rubber tomers using gas for heating their homes and products, petroleum, salt, limestone and with the continued conversion of many exist-gravel. ing customers to gas heat, the percentage of Agriculture is also a major hiichigan activ-residential gas customers using gas for space ity, as is the state's expanding year-round heating rose to 797o by year-end. The num-tourist and resort business. It is estimated that ber of such customers increased by 45,665 each generates almost a billion dollars in rev-during the year, the second largest number enue annually. Both in agricultural produc-added ir. any year. tion and in recreational income, hiichigan Natural gas service was extended to 58 ranks well up among the 50 states. additional communities in 1964, chiefly in Higher education, research and develop-the Thumb area cast and northeast of Sag-ment are important forces in the Company's inaw and Bay City. To coordinate gas opera-service territory. They contribute in many tions in that area, a new service center was ways to the advancement of the area and established in Bad Axe. their operations help to offset business dips In February,1965, a record one-day send-and to attract new industries. out of natural gas,1,225 million cubic feet, All these factors combine to provide the was distributed to customers. Company with a service area that is charac-To stimulate the use of gas and electricity, 7 terized by a good economic " mix," located in the Company sells appliances throughout

e the service area. Appliance sales in 1964 gan Power Pool. The new interconnection is were 197c above 1963, the best previous year scheduled for operation late in 1966. for appliance merchandising in the history of Consumers Power Company. Gas System Development Continues Expansion of the Company's natural gas More Electric Capacity on Way system to meet realized and anticipated Engineering work began on a second gen-growth of gas sales continued in 1964. Com-erating unit for theJames H. Campbell Plant pressor horsepower at the White Pigeon Con.- c.; Lake hiichigan. It will be a 385,000-kilo-pressor Station near the Indiana border was watt, coal-fired, steam-electric unit, iarger doubled as deliveries of gas under the con-than any now in the Company system. Con-tract with Trunkline Gas Company increased struction will start in 1965, and commercial a total of 50 million cubic feet per day. A operation is scheduled for hiay 1967. This similar increase in deliveries is scheduled for unit will involve expenditures of $45,000,000 1965. over a three-year period, including the cost of Ten additional wells were drilled in the related substation and transmission line fa-Salem Storage Field to speed injection and cilities. withdrawal of gas. The productive area of the Unit No. 2 at the Campbell Plant will be Ray Field, a gas field in the St. Clair area the first new generatmg capacity to be ini-northeast of Detroit, was greatly extended tiated since Consumers Power and The De-through developmental well drilling. Addi-troit Edison Company signed their power tional wells were drilled in the Northville pooling agreement in December 1962. The Field west of Detroit in preparation for its second major addition will be a 500,000-kilo-conversion to a storage field in 1966. Rights watt unit to be installed at Detroit Edison's in the Lenox Field in the St. Clair area were Trenton Channel Plant for commercial oper-purchased in anticipation of the conversion ation in 1968. The power pooling agreement of this field to storage in 1965. provides for pooled operations, coordination The Company will build a service center of planning, design and construction of elec-and compressor station in the St. Clair area tric generating and transmission facilities, in 1965. The compressor station will add and mutual assistance in emergencies. strength to gas delivery facilities in the subur-The Detroit Edison system is interconnect-ban Detroit area where about half of the ed with the system of The Hydro-Electric Company's gas customers are located. Power Commission of Ontario by two high-voltage lines across the International Bound-More Steam for Grand Rapids ary. A plan for a third such interconnection A major modernization of steam service fa-under an agreement involving Consumers cilities was completed in Grand Rapids, the Power as well as Detroit Edison and Ontario largest of four cities in which Consumers Hydro has been approved by the hiichigan Power central steam plants serve downtown Public Service Commission, and an applica-business districts. Spacious civic and business tion ior approval by the Federal Power Com-- buildings included in the Grand Rapids mission was pending at the year-end. The downtown reconstruction program will use agreement will provide benefits and econo-central steam service for heating and cooling, mies to Consumers Power and Detroit Edison and a substantial increase in steam sales will 8 similar to those realized through the hiichi-result. i

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Industrirl Grnt Lakes Am:rica is cil knrn ta the turld A lift truck made by Clark Equipment Company's Industrial Truck Division in Battle Creek moves another h!ichigan product, cement tile. hiichigan is the home of Hush Puppies, leisure shoes made by Wolverine Shoc & Tanning Cor-poration, of Rockford. Below, hides are processed in preparation for 61.oe production. New Service Facilities b _,.,r w _ _ L A district service center in Owosso was completed and construction of a D... ivmon \\{ service center in Kalamazoo and another 4 near Warren, Michigan's fastest growing Y ;. g%[!. V,' city, was begun. Warren, with a population y, [2 - s estimated at 140,000, now ranks third, after "l Flint and Grand Rapids, among cities served by the Company. - @J Mk Generating Efficiency High i ph r,, A report issued by the Federal Power Com- ' rgg.%:A y [gl (D mission m December 1964 ranked the Com-yqq39 :, g gg-L g y l g~ w.y g g pany's electric generating system second q it/h'#9Edh

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the Company constantly seeks better ways of W M ,,,, pq w e,i m y performmg various operations. m ~.. c. y. e Wmcms;phmj % N; [ e n' m - Electronic computers have extensive ap-w QMi plications in studies involving operating eHi-4 Z i.!i p N ciency and improved service. The Company 35@ ant;

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e.siggi - g. e search and operating projects. Payroll proce-($9M<A dure is now mechanized, as are customer ac-t, *%DM. counting and some personnel data. In 1965 N '? %MJ the computer will take over records relating etuk i y vyy a, ps. w J u. % w- ~ 3 ( to materials and supph.es. Preparations are

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't-tp w v/ d. v) -M . p under way to centralize customer records m. a still faster computer system, with large ran-fA JMk f'M ^P 3$y 3 $$f;Mj{hP.. 'jg/ NPh %' 1 N dom access storage capacity, which will be -* m wl,q4 . %(t.F.c '/T NT W.,,.- . L,. sh+9 delivered to the Company in 1966. 3 s.- s-The technical feasibility of a system for 1 i.. de b 's.. ' wMw < IT'K u,o WMiM,. '4 74d - m t d A Jhgi.hb k M.gga.Y bMMk.Th2 reading residential gas and electric meters N M h ; k fH,e u over telephone lines was established when m %w Aug /.w ww me.gySC,e. ice $ tests that were begun.in 1962 were completed men ~ g..,w n; m g@yyn%w p.k..ig.p p$dQ.$g%$Mkd@@g; ppg %%gi f.b g in 1964. The project report indicates that t additional studies are required to determine the commercial usefulness of automated l

b meter reading. Such studies are now in gg progress. Testing of a natural gas " total energy $ys{g package" went forward at the Company's South Oakland Division headquarters at Royal Oak. AM energy required for the ser-vice center, including that for lighting, heat-ing and cooling, is supplied by two gas tur-bine generator sets. Under the " total energy" concept, gas turbines operate on-site electric generators which supply all electric power for a building or group of buildings. -Exhaust Following the tests, the plant entered the heat is used for year-round air conditioning, last leg of a 4M-year research and develop-both heating and cooling, ment program preceding full-time commercial Tests thus far indicate that the " total ener-operation beginning in 1967. gy package" does have some economic appli-The research and development program cations for the Company. At present there are already has achieved its basic purpose of three other on-site generation installations in demonstrating that required amounts of heat the Consumers Power service area. for electric power generation can be obtained The first full " trainload" deliveries of coal with less nuclear fuel. Further progress in were received in 1964 under a new freight this direction is expected. rate which substantially reduces the delivered The program also seeks to determine the price of coal for use in electric generation. best over all operating conditions for the These 6,000-ton " trainload" shipments went plant. Information is being obtained that will to theJustin R. Whiting Plant near Erie. De-aid in the further development of boiling wa-liveries will commence at the James H. ter reactors and in the general advancement Campbell Plant in 1966 under a new con-of nuclear power generation as a competitive tract as the new generating unit there nears reality. completion. These shipments will arrive via Stockholder Profile " unit trains," each win. a capacity of 10,000 tons, which will travel only between the coal Thirty per cent of the Company's stock-field and the Campbell Plant. Other major holders are women,18?L men, 419L joint Consumers electric generating stations re-accounts (often husband and wife), and 11?b ceive fuel supplies via water-borne trans-institutions, including trust funds, insurance portation. companies, security firms and the like. At year-end, Consumers Power common 5' Nuclear Plant Reaches Milestones stock was registered in 72,362 names, as com-It was a productive year at the Company's pared with 71,141 one year earlier. Preferred Big Rock Point Nuclear Plant. The United stock was held in 15,457 names. Stockholders ? States Atomic Energy Commission issued a who live in the Company's service area ac-l full term license for the plant, first operation count for 609L of all common and preferred 1 of the plant at maximum capacity (75,000 stock registrations. There are Consumers ' kilowatts) was achieved, and a number of Power stockholders in every state and in 26 12 perfo.. nance testsweresuccessfullycompleted. foreign countries. l l .s

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( Natural Gas System Regional Meetings of Stockholders 1965 after serving since 1949. His wise counsel Regional stockholder meetings were con. and keen judgment will be greatly missed. ducted in April 1964 in 11 service area cities. During the year, Claude A. hiulligan and This was the sixteenth consecutive year in II. Stanley Richmond,vice presidents, George which regional meetings were held, and they E. Olmsted, treasurer, David 11. Gerhard, as-were attended by some 6,000 persons. sistant vice president, and Arthur L. Craw-Regional meetings in 1965 will follow this ley, division manager of the Flint Division, schedule: retired. Each had served the Company long Jackton, April 13 and ably. Lansing, April 14 John W. Kluberg and Robert D. Allen Kalamazoo, April 15 were elected vice presidents. hir. Kluberg re-Royal Oak, April 19 tained the position of controller which he has Flint, April 20 held since 1951. hir. Allen, who was previous-Saginaw, April 21 ly assistant to the pruident, was made re-Bay City, April 22 sponsible for a group of internal functions in-Battle Creek, April 26 cluding operations research, the Company's Grand Rapids, April 27 computer center and land and right-of-way hiuskegon Heights, April 28 affe. irs. Robert E Kettner, formerly director Traverse City, April 29 of nuclear activities, was elected assistant to The 1965 regional meetings will begin at the president. 8 p.m. Stockholders are urged to attend a Herbert J. Palmer was elected treasurer rqional meeting if they are unable to attend and assistant secretary of the Company, and the annual meeting in Jackson, April 13 at treasurer of its subsidiary, hiichigan Gas 2 p.m. Storage Company. hir. Palmer was assistant to the division manager in the Jackson Di-Directors and Officers vision from 1->57 until early in 1964, when he In hiay 1964 Robert L. Hoguet, Jr., was was appointed assistant treasurer of the elected to the Board of Directors. hir. Hoguet Company. is executive vice president of First National J. Laurence Gillie,Jr., formerly assistant to City Bank, New York, and served previously Arthur L. Crawley, succeeded him as division as a Consumers Power director in 1954 and nanager of the Flint Division. 1955. W. Anson Hedgecock, division manager of Edwin Thorne, forinerly senior vice presi-the Saginaw Division, was promoted to gen-dent of First National City Bank, New York, e ral executive in charge ofdivisions. Stanley h t. resigned from the Board of Directors early in Jurrens succeeded him as division manager. 15

R; search and dsv21:pmsnt-a maj:r activity in Great Ltkcs Amarica The multi-million-dollar Chhsler Corporation Prov-At Michigan State University, a 50-million-volt cy-clotron, or " atom smasher," was completed in 1964 ing Grounds near Chelsea suggest the tests that are a MSU scientists will use it in investigating the funda-part of the never-ending research and development effort of the automobile industry. snental properties of the atom. .' - w mw -~~m m s: -~ - v.~ n} . n. f ' /4 .h@Y4N$MN@Mi@$*JWY.53; N j /Y$ MC.;$a$~hnC" i3fGdo.:r. ' k, '. 6 - ~p. 7. W ~ sgym.gQTe G -~ Np. i.:Q' Q w M_.,,_g % w,.t=E,_-e. + w l w - 3,. 7.. 1', g-a -E + j ._2 Mi'J N F[g~ybM24:'a--g4vig h,2"*% m.7 N'.. a

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,r f W m i n ', i g) g i [ fh4l .., Y s- &.-df n% N Of ';, W \\, ~ eJf. Y. I n~@..... ra.T.,~ : ). w ..~.- .wrw e&yF,,3 .w w% ~ .fww g-OgVsmgg g e. $ W L. g gg H< err a h r t n a m m _ A. % g g u y awer4e One of the wortfs most advanced developmental complexes is the General Motors Technical Center in Warren, where much GM research is conducted. The silver-domed structure is the Styling Auditorium.

1004 Fincncid Revievc In 1964, gross operating revenue amounted EEEcTRIC PEVENUE 1954-1964 8 to $376,400,000, a $24,138,000 ir crease over 1963. Electric revenue totaled $221,739,000, E orsen sou=ces s22,2,gon "5 up 67c, and gas revenue was $153,779,000, 7,,,,, up 87c. 5: cam revenue of 5882,000 was 6.5% u 3 co=racm / less than in the preceding year, hiost costs of doing business were some-j g,,secsy, / what higher than in 1963. hiore coal was gis s d s.,a, g/ d j[_ ) burned in g nerating plants as the Company 3,23 gg sold more power. A total of 4.8 million tons g 5 g3 was used for this purpose. Total cost of all coal g '" pg g +m % w#e and other fuel used in electric and steam heat-n ing operations was $38,329,000, up 8%. The y jdN

  • ^

average delivered cost per ton, however, was 25 - slightly less than in 1963. Despite rate reductions effected by our gas e"" "" "5' "5' suppliers, the cost of gas sold, $65,340,000, was $2,026,000 higher than in 1963, reflecting In the ten. year priod, electric revenue aim st a ubled, rising from s114,942,000 in increased quantities purchased. 1954 to $221,739,000 in 1964. Customers' Rates Reduced Rate reductions to give electric and gas customers the benefit of savings and econo-mies and to stimulate use of the Company's services were placed in effect. GAS REVENUE 19s4-1964 Pursuant to an order of the hiichigan Pub. lic Service Commission, a gas rate reduction E *" ' "'"' e -. I of $1,700,000 per year became effective in i.3 g c~o usreat aso sn.=. uru.io% io pau ns g a >.. j In December, the Company sought and 3ome sesoturm g gas g 't O NTgt,U obtained the approval of the Commission to j reduce several of its electric service rates, ef-3 '* fective with bills issued afte: January 1,1965. 5* [/g g A 19% reduction was mr.de in electric space-B * ,,,,,u,,, M heating rates to residnitial customers, and a jn ['" " new rate was established for commercid and g C j industrial electric space-heating customers. par8p Rate reductions were also effected for resi-AF dential users of fast-recovery electric water heaters, and for commercial and institutional customers whose demand for high-voltage (,,,,,,,,,6,,,,,,,,,,,,,,,,,,,,, service is similar to that of in'dr.strial users. To encourage the trenc' to underground caQvenuea 52,b n y, nc e, r electric distributton. lines in housing develop- $153,779,000 in 1964. 17 l

~3 Q. tion and mair tenance employees, the in-lnCC,me ~ gg) creases were ia accordance with a two-year gg m =% agreement reached on February 29, 1964 h%. 1964 with the union which represents them. in-S ployees of all classifications numbered 9,~,52 at the year-end as compared with 9,734 at j f December 31,1963. ? RECEIVED Federal, state and local taxes applicable to FROM operations amounted to $73,359,000 com-pared to $66,165,000 in 1963. These taxes ,z 4 "S J* represented 19f of every do'lar paid to the ~ M Company by its customers. In addition, the [d; Company collected from its customers $10,- ~ -( 000,000 in hiichigan sales tax for the State. Amat Earnings improved Earnings available to common stock Electricity for 110 3es and Farms.. 23.6d amounted to $50,384,000, equal to $2.48 per share on the average number of common Electric Power for Industry. 18.6 shares outstanding during the year. This Commercial and Other Electric compared with $44,028,000 and $2.19 per. Sales. 15.9 share in 1963. Earnings per share on common shares outstanding at the end of 1964 were Residential Gas Customers: $2.46, comparable with $2.18,m 1963. Using Gas for liome IIcating.. 23.6 Common stock dividends for 1964 totaled Not Using us for Ilome IIcating 2.2 $1.60 per share. They were paid at the rate of 37M per share on February 20 and hiay 20 In t st al, Commercial and Other and 42M4 Per share on August 20 and No-4.3 vember 20. During the year a total of Other Sources.... 1.8 $32,503,000 in dividends was paid on com- "' " 5t Ch Total. 100.0/ Dividends paid on preferred stock totaled $3,635,000. ments and to pass on to customers economc. Financing System Expansion made pos>ible by new developrnents in un-derground construction, the Company re-Oa September 9, a new issue of $40,000,000 duced the customer perdon of undergioun 1 principal amount of 4M7o sinking fund de-electric installatior, costs. bentures, due 1994, was awarded to an in-vestment banking group headed by Morgan Payroll Costs and Taxes Stanley & Co., on a competitive bid of Total payroll for the year was $74,700,000, 101.4217e to the Corr pacy, an interest cost of which was $3,300,000 more than for 1963. 4.537o. The debentures were reoffered to the Employee wages and benefits were increased public at 102.0467o for a yield of 4.507o. I 18 on March 1,1964. As to operating, construc-These securities wert. issued to repay bank 1

9 fMb ~ loans and to finance a portion of the Com-Income .ss pany's expansion and improvement program. Douar 43 s During the year, $5,541,300 of the Com-MT I;@,'~ panfs 431;% convertible debentures due 1975 1964 were converted into common stock at $30 per V I 4 share through surrender of $100 principal amount of debentures and $20 in cash for 7 each four common shares. Cash payments to USED FOR

v. s the Company amounted to $1,108.260. As of 4g December 31, 1964, there were outstanding

? 82,879,600 nf the original issue of $38,101,600 gi. r ~* ~ of debentures. The Company announced in ~ ~ ~^ ~ September 1964 that it is calling for redemp-c. tion on h1 arch 31,1965, any of the debentures I that remain outsta2 ding, at a redemption

  • W price of 101 plus accrued interest.

On October 1,54,811,000 principal amount "'I"di"S of the Company's first mortgage bonds,4M% f;*"d 8^I^". e series due 1987, were redeemed by sinking Taxes. 19.4 fund operation at 100.567c of the principal Cost of Natural Gas Sold. 17.3 amount and accrued interest to the date of redemption. As uthorized at' the annual Fuel Burned, Electric. 10.0 meeting in April, 1964,4,000 previously par-Electricity Purchased... 1.3 chased shares of the $4.52 preferred stock Other Materials, Supplies and were retired.m accordance w. h the purchase Expenacs.. 7.2 it fund provisions relating to this preferred Depr ea.ation and \\mortization. 9.8 No issue of common stock is planned in Interest on Borrowed Money. 4.7 1965 or 1966, but additional debt financing Dividends on Preferred Stock. 1.0 will be necessary. Dividends on Common Stock. 8.9 Retained Earr.ings Invested in Agreemeats Reached on Lawsuits Busmess. 4.4 f, Settlement in principle of suits filed by the i. Company in 1961 and 1962 against Gen-ral Total. 100.0( 'i Electric Company, Westinghouse Electric j Corporation and Allis-Chalmers hianufac-turing Corporatian, alleging overcharges on 16 types of electrical equipment, was reached facturers is expected early in 1965. Suits late in 1964. The settlements will provide against a number of other manufacturers for payments in the form of price adjustments still were pending at the year-end. j t' to Consumers Power of approximately The amounts to be recovered as price ad-f $4,200,000, plus reimbursement for certain justments will result in a reduction of the expenses incurred in the litigation. Final dis-Company's investmerit in physical property i j position of the hwsuits against these manu-rather than afTecting the Company's income. 19 i i

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Crnzum ra P:w;r C:mpany Stat 9 me nt Of lnCOmC For the Years Ended Durmber 31,19CIand 1963 Year Ended December 31 1964 1963 Operating Revenue: 3221,738,649 $209,202,898 Electric. 153,779,511 142,115,564 Gas Steam heating 882,058 944,005 TOTAL OPERATING REVE.WE $376,400,218 S352,262,467 Operating Espenss5 and Tases: Operation-Purchased and interchanged power $ 5,030,072 5 4,819,329 Fuel consumed in electric and steam heating operations. 38,328,885 35,470,043 Cost of gas sold 65,339,705 63,31 e,335 68,400,421 63,864,851 Other TOTAL OPER ATION $177,099,083 5167,467,558 18,950,168 17,180,490 hiainienante. Depreuation an3 amortization 36,905,681 35,423,138 General taxes 21,199,959 19,868,033 Federal income taxes. 43,299,441 39,016.596 Prmision for deferred Federa' income taxes 6,920,315 7,105,571 Charge equivalent to investment tax credit (see Note 3) 1,939,263 2,174,310 TOTAL oPER ArrNo tXPEN5ES AND TAXES. $306,313,910 5288,235,696 NET OPER ATING INCOstt $ 70,086,308 $ 64,026,771 Other income: Dividends from hiichigan Gas Storage Conyany 973,125 956,250 Other 780,418 937,761 cross INCoht 5 71,839,851 5 65,920,782 income f> eductions: Interest on long-term debt. $ 17,336,742 S 17,313,200 Interest on notes payable 465,598 949,947 365,927* 332,660* Interest charged to construction. credit

  • Other 390,289 306,771 i

$ 17,826,702 5 18,237,258 TOTAL INCo%tE DED1*CTloN5 NETINCouE $ 54,013,149 5 47,683,524 3,629,259 3,655,648 Dividends on Preferred Stock. hET INCobfE AFTER DIVIDENDS oN PREFERRED STOCK 5 50,383,890 $ 44,027.876 i Earnings Per Share of Common Stock Based on Shares Outstanding: j $2.48 $2.19 Aserage during year At end of year [ $2.46 $2.18 l I' 25 '[ht accurforyirg notes e an integral (011 of this slottment. \\ \\ l I i

B:. nce Sheet At Daember 31,1961and 1963 December 31 Asseis 3,y 3,a Utility Plant: At original cost-5 924,932,849 S 941,123,962 Electric........... 409,433,005 373,911,416 Gas I 3,661,237 3,646,233 Steam heating.................. I 29,646,174 27,016,424 . Common to all departments.. 51,383,864,378 $1,329,506,922 Less-Provision for accrued depreciation 302,318,407 } 273,316,82] $1,081,545,971 t $1,056,1 a,M5 Cost in addition to original cost, in process of amortization. 338,944 ! 237,344 $1,081,884,915 ; $1,056,427,439 Other Physical Property: At cost or less... 7,544,622 5,502,333 Less-Provision for accrued depreciation and depletion.. 1,027,998 255,456 6,516,624 5 5,246,877 investments: Investment in coinmon stock of Michigan Gas Storage Company, at co tt (759o' stock interest) $ 11,250,000. $ 11,250,000 2,735,897 l 824,479 Other, at coat or hss......... 5 12 ~ 77 5 12,074,479 current Assets: 5 7,771,696 S 7,452,643 Cash..................... Accounts receivable-29,159,674 ; 25,284,401 Customers,less reserves.. 2,440,252 1,470,124 Other Materials and supplies, at average cost 24,961,690 g 22,717,617 17,275,621 14,124,0M Gas in underground storage, at average cost 9,166,836 8,213,446 Other S 90,775,769 5 79,262,307 I Deferred Debits: 2,915,301 2,872,874 Capital stock expense Portion of cost of nuclear plant, in process of amortization. 7,774,044 i 8,481,044 650,819 659,259 Other....................... $ 11,340,164 $ 12,013,177 51,204,503,369 51,165,024,279 22 ne acompa,yke nota are an hergralpart of this statamant. I'

Con:um:ra Pcwcr Comp:ny December 31 Liabilitiet 1,34 3,63 Capitalization: Capital stock (without par value) and retained earnings-Common stock - authorized 25,000,000 shares - out. standing 20,459,692 shares and 20,238,040 shares, respectively-115,184 shares reserved for conversion of debentures (see Note 5) $ 313,942,184 5 3h,241,190 Retained earnings, of which $6,085,035 (equal to $7.50 per share of preferred stock) is not available for j 133,995,877 117,221,191 payment of cash dividends on common stock $ 447,933,061 3 424,462,381 Preferred stock, cumulative-authorized 1,500,000 shares, entitled in involuntary liquidation to $100 per share 81,164,860 81,565,619 (see Note 4)... TOTAL CAPITAL STOCK AND RETA?NED EARNtNCS $ 529,102,921 5 506,028,000 486,591,691 _ 457,187,082 Long. term debt (see Note 5). $1,015,694,612 8 963,215,082 TOTAL CAPITALIZATION Current Liabilities: Current sinking fund requirement on first mortgage bonds. 5 4,838,0J0 4,838,000 Notes payable. 800,000 27,975,000 30,137,733 28,634,987 Accounts payab:e 9,599,338 8,498,883 Dividends declared on capital stock....... 46,601,054 46,860,004 Accrued taxes Accrued interest. 5,832,606 6,152,140 7,885,201 6,803,051 Other....................... 5 105,693,932 5 129,762,065 Deferred Credits: Investment tax credit (see Note 3) 6,101,128 8 4,140,339 Premium less expenses on outstal. Jing long. term debt, in 575,124 152,907 process of amortization...... Customers' advances for construction and other 1,203,555 705,415 5 7,879,807 5 4,998,661 Reserves: Deferred Federal income taxes.. $ 63,503,850 $ 56,583,535 Other 1,933,652 1,826,747 $ 65,437,502 3 58,410,282 9,797,516 8,638,189 contributions in Aid of Construction. 3 $1,204,503,369 ; $1,165,024,279 23 The accompanying notes are an integralpart of this statement.

Consumers Pcwer Company 5 Statement of Retained Earnings For the Years Ended December 31,1961 and 1%3 Year Ended December 31 1964 1963 Retained Earnings-Beginning of year $117,221,191 S104,299,854 M/-Net income after dividends on preferred stock 50,383,890 44,027,876 $167,605,081 5148,327,760 Deduct: Cash dividends on common stock declared at quarterly rate of S.375 per share in 1963 and the first two quaners of 1964, and at a quarterly rate of S.425 thereafter (paid $1.00 per share in 1964 and $1.475 per share in 1963). 33,609,204 30,260,152 Adjustment in connection with determination of original con of utility plant land 846,417 RetainsJ Earnings-End of year (see balance shec t) $133,995,877 5117,221,191 The acccmfanyng notes are an integrar part of this statement. Notes to the Financial Statements (1) Capital expenditures for property additions during 1965 are presently estimated to total 592,000,000. (2) Reference is made to Page 19 for status of settlement of damage claims filed against various electrical equipment manufacturers. (3) The % ernal Revenue Code provides for a credit against Federal income taxes currently payable c<paa lo specifie 3 percentages of certain plant additions. In accordance with preliminary instruc-tions of the Michigan Public Service Commission, an amount equivalent to the reduction in Federal income taxes currently payable rt.sulting from the investment tax credit has been included in operat-ing expen<es and the contra credit has been included in deferred credits. The Commission is cur-rently conducting hearings with respect to permanent accounting requirements and the rate treat-ment for the investment tax credit. (4) Preferred stock is represented by: December 31 1964 1963 54.50 - 547,788 shares outstanding 354,778,800 $54,778,800 54.52-167,550 shares outstanding,less 4,000 shares purchased in 1964 for retirement. 16,355,000 16,755,000 $4.16-100,000 shares cutstanding 10,000,000 10,000,000 Premium on preferred stock 31,000 31,819 Total preferred stock.. 581,164,860 $81,565,619 .. _.. ~

(5) Long-term debt is represented by: December J1 1964 1963 First hiortgege Bonds-5109,024,000 $109,024,000 2H7o Series due 1975.. 24,775,000 _ 24,/75,000 2H7o Series due 1977.. 39,700,000 39,700,000 3H7o Series due 1981.... 24,750,000 24,750,000 37o Series due 1984. -~ 47c Series due 1986......... 40,000,000 40,000,000 3MC/c Series due 1987.. 25,000,000 25,000,000 5,058,000 9,869,000 447o Series due 1987.. 40,000,000 40,000,000 4H7c Series due 1988... 4H% Series due 1989... 35,000,000 35,000,000 30,000,000 30,000,000 3M7c Series due 1990. 4H7c Series due 1990.. 35,000,000 35,000,000 4H7c Series due 1991.. 40,000,000 40,000,000 5448,307,000 5453,118,000 Deduct-Current sinking fund requirement included in current liabilities 4,838,000 4,838,000 Total First hiortgage Bonds. 5443,469,000 5448,280,000 Sinking Fund Debentures,4HQ, due 1994 40,000,000 Convertible Debenturef,4H7c-convertible at the conver. sion price of 530 per share, payable by surrender of $100 of Debentures and $20 in cashin exchange for each four shares ofcommon stock. At 51 arch 31,1965, all Debentures then outstanding will be redeemed. 2,879,600 8,420,900 Notes,4%, due 1966. 243,091 486,182 Total long-term dot $486,591,691 5457,187,082 ARTuun ANDERSEN & CO. Pzwosscor Buxt.Dtwo DETROIT, MICHIGAN 48226 To the Board of Directors, Consumers Power Company: We have examined the balana sheet of CONSUhiERS POWER COhiPANY (a hiaine corpora-tion) as of December 31,1964, and the related statements ofincome and retained earnings for the year ,~ then ended. Our examination was made in accordance with generc'h accepted auditing standards, and accordingly included such tests of the accounting records and suct ther auditing procedures as we considered neceswy in the circumstanres. In our opinion, the accompanying balance sheet and statements of income and retained earnings pre-sent fairly the financial position of Consumers Power Company as of December 31,1964, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Detroit, hik sigan, January 29,1965. 25

Financial Summary 1964-1954 ~ t l'" 2S63 1's2 196: Statement of income Data I 1 $ 376,400,218 $ 352,262,467 5 331,229,655 5 302,056,401 Operating Revenue Opera %g Revenur Dedutions, Eurtt Taxes... 232,9SJ,932 220,071,186 206,199,817 189,100,637 f Feder d luome Tax, See Footnote (A) i 45,238,701 41,190,906 39,919,10S 33,732,011 Taars .... i 6,920,315 7,105,$71 6,999,9S2 7,218,992 Deferred Federalluome Tas 21,199,959 19,868,033 17,313,455 16,922,249 Other 70,086,308 64 ? 26,771 60,466,693 55,052,482 Net Operating Income.. 1,753,543 1,894,011 1,488,877 1,590,088 Other incon,e 18,192,629 18,569,918 18,631,151 18,113,372 luomo deducinns. Interest Charged to Construction-Credit 365,927 332,660 1,990,245 1,879,517 54,013,149 47,683,524 45,264,664 40,408,515 Net income 3,629,259 3,6SS,648 3,665,$95 1 653,453 Dividends On Preferred Stxk On Common Stxk 33,609,204 30,260,152 27,542,109 25,Ja ',656 16,774,686 13,767,724 14,056,960 11,303,4M Earnings Retained Common Stock, Unadjustd, See Footnote (B) Average Shares Outstanding 20,330,0)o 20,094,050 19,608,383 9,568,115 Earnings per Share 2.48 5 2.19 5 2.12 S 3.84 Dividends Paid per Share 1.60 5 1.475 S 1.40 S 2.60 Co nmon Stock, Adjusted, See Footnote (B) Average Shares Outstanding 20,330,016 20,094,050 19,608,383 19,136,230 Earnings per Share 2.48 5 2.19 S 2.12 5 1.92 Interest Charged to Construction per Share .02 5 .02 5 .10 .10 f Balance Sheet Data Utility Plant $1,384,203,322 51,329,744,266 51,284,320,741 51,206,518,804 Acerued Depreciation.. 302,318,407 273,316,827 245,831,001 219,227,665 t 1,41,940 136,608 131,833 121,809 9 Plant Investment per Employee Capitalization $ 447,938,061 5 424,462,381 5 397,177,900 $ 370,897,592 Common Stock and Retained Earnings. i Preferred Stock. 81,164,860 81,565,619 81,966,379 82,367,138 kng. Term Debt 486,591,691 457,187,082 493,062,773 489,337,064 $1,015,694,612 $ 963,215,082 5 972,2d7,052 5 942,601,794 I Total Capitalizatic,n...... Capitalization Ratios-To f Common Stock and Retainct Earnings.. 44.1 44.1 40 9 39.4 8.0 8.5 8.4 8.7 Preferred Stock 47.9 47.4 50.7 51.9 kng. Term Debt. I (A) Federal income Tax in the years 1964,1963 and 1962 includes charges in the amounts of 51,939.263. 52.174,110 and 51.966.029. respectively, eqaivalent to the reduction in suc h tases resulting from appli. cation of the 3'"o investment Cred? arovided by the Revenue Act of 1962. (B) Common Stock. Unadjusted figures ao not reflect any adjustments to previously reported 6gures foi the 57c tock dividend of December 1955, or for the 2 for 1 stock split in April 1962. The Common s Stock. Adjusted, figures reflect these adjustments.

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Con um:ra P;w;r C mpany 1960 1959 1958 1957 1956 1955 1954 $ 281,3c5,933 $ 257,525,425 $227,631,181 $221,461,837 $208,393,754 $189,374,955 $167,941,793 179,937,924 158,097,255 142,469,775 137,051,251 129,500,638 117,273,966 106,783,528 28,647,373 30,752,042 24,789,982 27,477,319 27,888,605 25,656,391 20,506,090 7,059,399 . 6,599,259 6,236,371 - S,572,383 4,208,808 3,216,33S 1,746,751 15,433,274 12,944,658 11,893,682 10,593,205 9,223,420 7,947,163 7,207,235 50,287,963 49,132,211 42,241,371 40,767,679 37,572,283 35,281,100 31,698,189 -1,704,170 1,747,760 1,565,710 1,491,462 1,131,545 1,517,492 1,324,062 16,118,539 14,901,737 13,174,944 10,137,856 8,432,298 8,275,175 7,536,180 2,376,994 2,448,132 1,894,850 1,594,947 1,731,490 1,341,384 1,185,710 38,250,588 38,426,366 32,526,987 33,716,232 32,003,020 29,864,801 26,67!,781 3,698,259 3,717,765 3,742,243 3,756,570 3,778,551 3,543,937 3,367,141 24,767,968 22,618,626 21,132,828 21,0s1,044 18,S39,687 17,069,219 16,442,355 9,784,361 12,089,975 7,651.916 8,865,618 9,684,782 9,251,645 6,862,285 9,525,665 8,885,147 8,800,455 8,697,631 8,239,861 7,662,200 7,473,798 5 3.63 3.91 3.27 3.44 3 3.43 3.44 3.12 5 2.50 2.45' 2.40 2.40 2.20 2.20 2.20 19,051,330 17,770,294 17,600,910 17,395,262 16,479,722 16,021,954 15,694,976 1.81 i.95 S 1.64 1.72 1.71 1.64 1.49 3 .12 .14 .11 .09 .11 .08 .08 $1,123,245,187 l $1,032,574,699 $901,873,349 $853,414,043 $758,360,576 $679,228,020 $613,581,239 193,273,276 173,118,255 150,069,325 132,972,735 120,390,331 109,328,075 99,079,559 111,855 102,M7 91,477 81,355 72,363 66,919 62,388 5 350,488,883 $ 316,685,4 6 5294,700,2 % $285,583,480 $253,234,z62 $243,549,480 $217,388,408 0 82,767,898 83,168,658 83,569,418 83,970,177 84,371,148 84,771,696 74,771,696 461,921,254 415,935,000 394,862,700 360,% 7,700 293,2 0,000 256,237,000 228,825,000 s' 895,181,035 3 815,789,124 $773,132,363 $729,621,357 $630,854,410 $584,558,176 $520,985,104 39.2 38.8 38.1 39.1 40.1 41.7 41.7 9.2 10.2 10.8 11.5 13.4 14.5 14.4 51.6 51.0 51.1 49.4 46.5 43.8 43.9 (1) In Desember 1955, the Company issued to its common stockholders a dividend of 5% in common stock. In rectsrding this transaction on its books, the Company assigned a vdue of $45.25 per share to the 3',2,374 total shares issued as a dividend, a total of $17,754,924. The amount of this dividend is not reflected in the abc figures. (2) Figures for years prior to have been restated where applicable to reflect refunds received of the cost of purchued gas and interest income related to such i,efunds and other miscellaneous adjustments,, 27 including the effect of applicable income taxes. i f 1

Ek :tric and Gas Operating Comparison 1964-1954 PER CENT tNCRE AsE Electric 1964 oR (oECREasE) 1964 1963 iss2 COMPARED WITH 1963 1954 Uectric Revenue L $ 89,427,891 4.8 85.1 5 85,334,132 5 82,884,470 Residential l 52,431,943 7.3 108.9 48,849,529 46,237,915 Commercial.. 70,290,252 7.8 88.5 65,182,252 60,682,705 Industrial Interdepartmental and Other. i 7,511,659 (1.7) 171.4 7,641,177 7,084,401 TOTAL ELECTRIC SALES REVENUE

$219,661,745 6.1 93.6

$207,007,090 $196,859,494 2.076,904 (5.4) 40.8 2,195,808 1,967,867 Miscellaneous Electric Revenue. TOTAL EMCTRIC REVENUE. $221,738,649 6.0 92.9 $209,202,898 S196,857,361 DecF Sales (1,000 Kilowatt.11ours) 3,839,862 5.3 88.c 3,647,764 3,530,77( xesidential I 2,340,920 9.2 151.7 2,143,567 2.000,412 Commercial 5,797,370 9.4 94.8 5,299,805 4,846,18C Industrial t Interdepartmental and Other. 484,222 (5.5) 210.9 512,452 470,,24 12,462,374 7.4 104.5 11,603,588 10,847,89: ToTrt. EuCTRtC sAMS Peak Load--Kilowatts 3$74,95 7.1 84.3 2,217 405 ~ ~3~035, 53 ~ T Gererating Capacity-Kilowatts 2,790,064 (.1) 99.0 2,791,564 2,792,66e Hea t Rate-Btu of Fuel per Net Kilowatt.Ilour Generated 9,463 .3 (13.0) 9,433 9,631 Electrlc Customers-End of Period. 931,791 2.2 22.4 911,671 898,86: Electric Residential Cuitener Averages Annual Kilowatt.llours Used. 4,677 3.2 51.9 4,530 4,4 4.' Revenue per Kilowatt-liour Used. 2.336 (.4) (2.1) 2.34e 2.35 Annual Revenue $108.92 2.8 48.9 5105.96 5104.3'. Gas Gas I svenue Residential Using Gas for llome lleating $ 89,412,353 9.0 250.2 S 81,997,119 S 75,065,21: Other 8,209,016 (13.1) (20.8) 9,450,577 10,171,95' Industrial and Commercial... 53,157,491 11.1 244.0 47,851,767 43,225,91 Interdepartmental and Other (A) 785,907 9.5 612.6 717,820 1,704,65! TOT A1. G As F AMS REVENUE 3151,564,767 8.2 194.5 $140,017,283 5130,167,71 Miscellaneous Gas Revenue 2,214,744 5.6 300.2 2,098,281 1.227,85 ToTat cas REVENUE 5153,779,511 8.2 195.7 5142,115,564 5131,395.59; Gas Statistics (1,000 Cubic Feet) Gas Sales Residential Using Gas for llome 11 eating.. 86,516,602 9.1 226.3. 79,332.269 72,941,5S. 5,428,669 (15.2) (24.3) 6,405,305 6,845,46' Other Industrial and Commercial 78,035,901 1? O 23/.7 69,076,501 62,013.40 Interdepartmental and Other (A) 1,569,852 15.9 1,106.9 1,355,036 3.809.98 171,551,024 9.8 202.1 156,169,111 145,61033 ToTat. cas sat.u Net to Storage 9,748,391 83.2 5,322,355 7,305,51 Unbilled, Lost and Company Use. 3,891,118 (38.8) 87.7 6,354,454 3,857,01 TOTAL GA.s PURCHASED AND PRODUCED 185,190,533 10.3 214.6 167,845.920 150,772,96 Maximum 24. Hour Gas Send.Out f (1,000) Cubic Feet ( 1,077,722 (5.5) 202.6 1,140,880 982 43 Gas Customers-End of Period ? 659,151 6.1 66.7 621,112 590.63 Residential Customers Using Gas for Home Heating 483,963 10.4 206.1 438,298 400,66 Number-End of Period I 188 (1.6) 2.7 191 19 Average Annual Mcf Used 103.354 7.3 103.36e 102.91 Average Revenue per Mcf Used [ $194.22 (1.4) 10.2 $196.95 $198.7 Average Annual Revenue t (A) Includes intractmpany sales of gas to the electric department for use in generat ng etee'.:icity in years 28 1962,1961, and 1960, as d substantial sales to another public utility, in 1962 arid 1960.

C n:um ra P wcr C:mpany 1961 1960 1959 1958 1957 1956 1955 .1954 3 79,727,171 5 76,207,206 5 70,957,616 5 64,314,868 5 61,540,221 3 57,264,960 $ 52,427,172 $ 48,313,852 43,291,862 40,338,087 37,904,248 33,722,643 32,017,441 29,796,312 27,629,690 25,103,644 54,718,983 55,054,612 52,423,154 45,785,860 48,343,983 /6,352,068 44,213,748 37,281,138 6,444,469 5,886,913 5,254,757 4,582,742 4,150,513 3,309,399 2,940,547 2,768,043 $184,182,485 3177,486,818 $166,539,775 $148,406,113 $146,052,158 $136,722,739 $127,211,157 $113,466,677 2,216,942 2,081,611 1,945,647 1,756,798 1,735,556 1,707,543 1,457,848 1,475,291 $186,399,427 $179,568,429 $168,485,422 5150,162,911 $147,787,714 $138,430,282 $128,669,005 .114,941g 3,376,511 3,205,406 3,094,393 2,890,249 2,729,973 2,501,144 2,244,271 2,033,078 1,838,741 1,690,660 1,599,315 1,409,658 1,238,406 1,139,903 1,047,657 929,997 4,180,726 4,279,984 4,012,905 3,373,978 3,803,532 3,749,452 3,783,935 2,976,137 414,785 377,452 325,647 274,189 246,730 192,381 169,283 155,766 9,810,763 9,553,502 9,032,260 7.948,074 -8,018,541 ' ;82.880 7,245,146 6,094,978 ,79W50 1,*/38,785 1,632,005 1,370,820 1,458,070 1,288,370 - ~ ~ ~73% ~ l,9T8 ISO ~ 1 876 1 2,534,992 2,270,962 2,270,962 2,004,938 1,848,688 1,712,888 1,558,118 1,402,168 9,675 9,857 9,912 9,896 10,423 10,799 10,908 10,882 885,832 873,834 858,457 843,276 827,888 810,875 787,662 761,530 s 4,315 4,162 4,096 3,905 3,761 3,536 3,282 3,079 2.36d 2.386 2.294 2.236 2.25d 2.294 2.34d 2.3Se $101.89 $98.94 $93.92 $ 86.91 $84.79 $80.96 $76.66 $73.17 3 63,601,515 5 52,200,274 s 45,805,934 $ 38,830,746 $ 36,262,193 $ 35,596,876 $ 25,134,750 l $ 25,530,837 10,387,623 11,054,279 12,020,807 12,516,966 12,074,857 11,232,443 10,778,608 10,363,553 36,595,988 32,962,377 28,509,026 23,650,121 23,030,884 20,990,057 18,989,775 15,454,374 2,314,246 3,011,254 234,627 190,852 151,543 144,672 129,418 110,290 $112,899,372 $ 99,228,184 5 86,570,394 5 75,188,685 5 71,519,477 5 67,964,048 $ 59,032,551 3 51,459,054 1,755,927 1,541,265 1,366,601 1,200,380 1,074,923 950,250 715,587 553,421 $114,655,299 $100,769,449 5 87,936,995 5 76,389,065 $ 72,594,400 $ 68,914,298 5 59,748,138 $_52.012,475 64,303,774 53,760,032 47,827,215 40,131,587 37,638,842 36,869,414 29,980,627 26,513,803 7,241,954 8,187,652 8,713,106 8,990,599 8,548,906 7,993,181 7,593,440 7,169,030 52,797,012 48,853,317 41,690,243 34,446,406 34,324,931 31,123,993 28,948,655 22,971,537 6,611,019 7,494,854 304,449 244,638 193,380 184,081 164,424 130,072 130,953,759 118,295,855 98,535,013 83,813,230 " 50,706,059 76,170,669 66,687,146 56,784,442 5,872,391 10,283,f 14 2,338,405 6,855,227 815,262 3,728,363 1,800,161 766,055 2,757,293 2,07..:,1 139,164,555 135,434,596 99,350,275 87,541,593 82,506,220 76,936,724 69,444,439 58,857,093 843,543 821,362 602,123 574,989 505,462 400,942 440,054 356.110 562,897 539,474 509,462 483,682 462,922 443,730 426,714 395,509 261,335 321,909 265,073 234,184 205,884 192,754 183,491 158,104 189 184 196 187 193 194 180 183 98.914 97.10d 95.77/ 96.76d 96.34d 96.55d 97.184 96.29c $187.01 1178.45 $187.18 $181.01 $186.30 $187.00 $174.46 $176.20 Note: Gas revenues for the years 1954,1955, and 1961 have been restated to reflect refunds to the Company', customers 29 ordered by the Michigan Public Service Commission as a result of refunds of the cost of gas y urchased during those years. P

bM - N. D. j m] +. ) s., :n. a'.' y 3 -.. - - - ~, A. H. AYMOND \\ Chairman of the Beard of the Company Jackson, hiichgan V &V ROBERT P. BRIGGS 'e Executur Via hesident of the Company Jackson, hiichigan I' JAMES H. CAMPBELL - m i k] Pressi ut sf she Compay k. t-Jackson, hiichigan T" .p. T c LEE D. FERDEN L ^~ Farmer Chesaning, hfichigan g,( k.. ? - q ::. h.. Na i_ FRANK HAMILTON ..,g, h.w.tgg" '.k* \\ First l' ice besido:t of Badres Trust Company 5 hir, Rob, New York, New York ROBERT L HOGUET, JR. @th "a, Enecu:in l*sce hrsident of Furst Na:. anal Csty Boni f p?\\ ?( g 'Y h a

po%'; M, ?F New York, New York n

c yJ' C-%p~ DAN E. KARN ), I Consualtant to the Company " M.-ki ' 1,. Jackson, hiichigan w G% .s g ^"' DON T. McKONE ^* P vtner t lass fvm of McCone, Badgley, htr. Aymond

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-T, Jackson, hitchigan V-f $* A' RALPH C. MORLEY, JR. Chairman of the Board of Morles Brothers n" :& ~ Wholesale Hardware Distributors ( gW wM M Saginaw, hiichig~ an Mt%>2e DONALD J. PORTER WT ' ^ 5 ? n;, l,, _l President of Porter.Iladies Compay Wholesale Building hiaterials _t-hit. Terden Grand Rapic's, hiichigan LYLE C. ROLL Chaurman of the Board and hesident of Kellogg j /%. Company e ~ '6-Cereal hianufacturer y Battle Creek, hiichigan gh g: 4 AATHUR H. SARVIS e a co t l'ia hesident and Chair, an of Executin Committer ^;): e.. T tw \\ of Cuts r,n Commercial e Saikgr Bani %p l' lint, hiichigan T h7 EDWIN THORNE* 7 e* v. !4 Wall Street 4 New York, New York (., JUSTIN R. WHITING / f U ' : W.h 'i"

.'[Wg,Wp Chairman of Executin Committre of the Company
ag, Jackson, hiichigan

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b COMPANY OFFICERS DIVISION MANAGERS '. A. H. Avwoxo. . Chairman of the Roard (licadquarters cities in parentheses) Chief Executive Officer Battle Creek Division JAMrs II. CAMPBELL.....[F :ident (Battlt Crted). .Goanos W. IfoWAaD Chief Operating Officer Rostar P. Baiocs .Eaccstire 17ct P>rsident Bay City Division (Bay City). . loris A. VAUPRE Corporate Affairs, Finance Central Diviaion (Alma). .. RALPH II(HN and Buildings

11. Sraxuv Ricanoso*.. l'ha Prtsident Personnel Fliat Divi; ion (Flie).

. Aarnra L CRAWLev * (to July 1,1964) CLAUDE A. Mc:.ucAs * *. lice President Divisions and Customer Services J. LAranser Gitur.Jn. (f 1" } IIARhv R. WALT. . Iict [ resident Electric Operadons Gmd Rapids Division Joux B. StuPsos.. . 37ct Prtsidtnt (Grand Rapids)... .Gonnos L CARSON Gas Operations Jackson Division (Jackson). .FaAn ' ADAus Bratu G. CavPacLL. . 37ct President Afarketing WAtita C. Scnusor. .17tt President Electric and Kalamazoo Division (Kalamazoo). .Anrnen H.1.Et-General Engineering, Construn.on, Purchasing Lansing Division (Zonsing). .W Luau R. CARLyoN Jons W. Etterno.. .17cc Prtsitet ar.4 Controller hiacomb Division (East Detroit)..Groact L h!A)HtW Accounting and Rates Rostar D. AttrN. . ITct Pitsident Operations hiuskegon Division (hltgan). .Liostt L Boorn i Research, Lat u and Right-of.Way, Computer Northwest Division (Trattric Citi). . Bon D. listry Center, General Services WAttra R. Boats. . Secretary Pontiac Division (Pontiae). .Cu4nus F. Baowx GroPot E. OtusrLo"*.Treasw.. (to July 1,1964) Saginaw Division (Saginau). .STANuvhf.JURRENs litantniJ. PA1.McR. Titast rtr (fromJuly 1,1964) South Oakland Division liARoLD P. GnAvts. . Central Couestl (Royal Oal)... .WitPato L WmintLa Roetnr E. Kerrstn. . Assistant to tat Prtsident West Wayne Division (litonia)..JAMrs P. TnouAs, Ja.

  • Retired June 1,1964
  • Retired January 1,1965
  • Retired July 1,1964
  • " Retired July 1,1964 Transfer Agents Common and Consumers Power Company l

Preferred Stock: Jackson, Michigan 49201 Agents of the Company NOT!CE OF ANNUAL MEETING 300 Park Avenue I New York, New York 10022 l The annual mecag of stockholder

  • of Con-sumers Power Camp y will take, place l

Registrars T" N Bu'b, 19 Preferred Stock: City Bank and Trust Company C p 'y' arn Jackson, Michigan 49201., West arnell Road, Jackson, Michigan. ^ notice of meeting, proxy statement and First National City Bank i prt.xy will be mailed to stockholders ou or New York, bew iork 10015 [ about March 10,1965. Prompt signing and remrn of your proxy L or proxies will be appreciated by the Com-Common Stock: The National Bank ofJackse Jackson, Michigan 4920g { pony management. First National City Bank i 32 New York, New Y ork 10015 1 l 1

p.,.,,,.-. wk% s o 8 l P l ~ l l t i b ,/ ~ ~ ~ lINdM;.g!3.qq Ninety cars of coal await un- ,;.w. f*.' OJJ 9 loading at the Justin R. y+#?t( t @'"#. 3,3 ' YQ, e 7 [f.- At *.j ? 1 {% Whiting Plant. It was the t first full-trainload delivery to &f d ; V.l: N$ d'- dij " M*M5 g[L j)' % *t y/ ~ *g*h A Consumers Power. Trainload 4

  • p' deliveries reduce the cost of i

k.lT ** S S Na? W A.M -e v;. ' coal "ansporta tion. -E e Q'

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Q% 'Q 4 j ~. 3& ~$ u.h h, * ' f. 3 [ b y - ? l ,Q7 (1/ Hundreds of miles of pipe U.ra)'a,;n q/ were added to the gas dis- -1 _ _ Mp a = tribution system in 1964' ?-,_ -8. - y We,Qh_a T*"&MMM__ S G ~~ '.... [ @ * .grp4,.'. bringing the total of gas lines ~ * :" ^,-{4*4 in service to ll,000 miles. V ,--3 ' y L#g.w,-.: g .. m.; .N Df,!ig-.g 'h 4 A 1 5. -,Wge ~,.h s.Jirf JL::: g 4,mg.- . y.,sp V ~ ' %{ ~g # d ~' . ' x<. qw!$N s 3 q;;. g. h-3.{! q g g r g. k dYh hem %~ eh4$ji '".m, y h.

1 o. Consumers Power f.- Company Red represents electricity and blue represents gas in the new ccrporate symbol of Consumers Power Company. Central feature is a f.owing presentation of the initials CP. To the imaginative, the symbol may also suggest a segment of electric wire and a cross section of gas main. The new symbol will b+ tised with the name Consurr. cts Power or, in more formal applications, Consumers Power Company, tD l ai. '.. ' ',$t gy1 .gg3 geph3 Of 015..g *g , q g a L\\ YT V aya.. J

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~~~ m,,, Daft OF DOCuantNf. Daft at:ElvtD O .h7 i ' eEPoet. OTHEL afa. utaaCh R. & Jat,t,gggs z Jackscs, Miehisum b, hen, ceic, cc, 70, 1 cy ne'4 AC1 TON NECE,55AaY Q CONCURRENCE O DATE ANswEnED. Doom NO ActiCN NECEe5ARY Q COMMENT O av. nocm w.a.9 (:ma. oms) UA55> PO51 OF6.CE F6LE CODE. ff REG NO eECElvfD Sy D A'f_ REFERRED 10 h DATE 015CRIPitON- (Most Se Unciesa$ed) "cC===r row cc p.or - Isa humal(M # > 6-n seport.- g M ENCLOSU4ES, A / l~ - m 3ul a n D> N REM ARK 5. 7, - ~, Ibdii.v., ._ ; ?. ) ,\\ O. 5. ATOMIC ENERGY COMMI5SION MAIL CONTROL FORM roam Atc 3265 18 +C) 5

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