CMS Energy unit executive steps down amid electricity trading controversy

CMS Marketing, Services, & Trading (CMS-MST), the energy marketing and trading unit of Dearborn, Mich.-based CMS Energy Corp., reported that Tamela W. Pallas has resigned from her position as president and CEO of the unit.

May 22, 2002

By OGJ editors

HOUSTON, May 21 -- CMS Marketing, Services, & Trading (CMS-MST), the energy marketing and trading unit of Dearborn, Mich.-based CMS Energy Corp., reported that Tamela W. Pallas has resigned from her position as president and CEO of the unit.

The announcement follows confirmed reports that CMS-MST engaged in so-called "round trip" electricity trades involving the simultaneous sales and purchases with the same counterparties at the same price.

The CMS unit began the trading practice, which is legal, in May 2000 and ceased in mid-January. The transactions, CMS reported, did not result in any profit, loss, or cash flow for the company, but rather "had the effect of increasing trading volumes." Thirteen of the trades accounted for about 98% of the volume.