21-09-99 CMS Energy Corporation announced its international energy distribution unit, CMS Electric and Gas Co., has agreed to acquire a 77.13 % ownership interest in a group of electric distribution companies in southern Brazil, Grupo Companhia Paulista de Energia Electrica (CPEE) for approximately $ 85 mm.
The acquisition is subject to final verification of due diligence issues by CMS and approval of the change in control by the Brazilian electricity regulator, ANEEL. Closing of the transaction is expected by the end of October.
Once ANEEL approval is obtained and the verification is completed, CMS Electric and Gas will assume operating management responsibility for CPEE, with its acquisition encompassing ownership of 95 % of the Group's voting shares.

Grupo CPEE currently serves 135,000 customers in the States of Sao Paulo and Minas Gerais, and is made up of four electric distribution companies, one electric services company, and 7 % ownership of an electric generation company which owns and will operate an 850 MW hydroelectric dam currently under construction. In 1998, Grupo CPEE supplied 940,000 MW-hours in its market area, which encompasses about 466,000 people. Annual growth in electric consumption in the market areas served has averaged 6 % per year since 1990.
"This investment expands CMS Energy's ownership in Brazilian distribution companies and provides an additional opportunity for managing a high-growth distribution business," said John M. McLaughlin, Jr., vice president of development for the Americas -- southern hemisphere, who heads up CMS Energy's regional development office in Buenos Aires, Argentina. Mr. McLaughlin said net revenues for the CPEE Group in 1998 were approximately $ 94 mm.

"With this acquisition, CMS Electric and Gas will serve approximately 1.1 mm electric customers in South America," said Frank Johnson, vice president of international electric and gas distribution. The Company's holdings include ownership in the Brazilian utilities CFLCL, with 286,000 customers in the States of Minas Gerais and Rio de Janeiro and Energipe, with 348,000 customers in Sergipe. In addition, CMS Energy is the managing partner of EDEERSA, an electric distribution utility serving 227,000 customers in Entre Rios, Argentina and SENECA, an electric distribution company serving 90,000 customers in Nueva Esparta, Venezuela.

CMS Energy Corporation has annual sales of about $ 6 bn and assets of about $ 14 bn throughout the U.S. and in 22 countries around the world with businesses in electric and natural gas utility operations; independent power production; natural gas pipelines and storage; oil and gas exploration and production; and energy marketing, services and trading.
CMS Energy Corporation's principal subsidiary is Consumers Energy, Michigan's largest utility and America's fourth largest combination gas and electric utility.