CMS ENERGY CORP, 10-Q filed on 7/25/2019
Quarterly Report
v3.19.2
Document And Entity Information - shares
6 Months Ended
Jun. 30, 2019
Jul. 09, 2019
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2019  
Document Transition Report false  
Commission File Number 1-9513  
Entity Registrant Name CMS ENERGY CORPORATION  
IRS Employer Identification No. 38-2726431  
Entity Incorporation State MI  
Entity Address One Energy Plaza  
City Jackson  
State MI  
Postal Zip Code 49201  
City Area Code 517  
Local Phone Number 788‑0550  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Smaller reporting company false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   283,787,006
Entity Central Index Key 0000811156  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Consumers Energy Company    
Document Information [Line Items]    
Commission File Number 1-5611  
Entity Registrant Name CONSUMERS ENERGY COMPANY  
IRS Employer Identification No. 38-0442310  
Entity Incorporation State MI  
Entity Address One Energy Plaza  
City Jackson  
State MI  
Postal Zip Code 49201  
City Area Code 517  
Local Phone Number 788‑0550  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Smaller reporting company false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   84,108,789
Entity Central Index Key 0000201533  
Common Stock    
Document Information [Line Items]    
Title of each class CMS Energy Corporation Common Stock, $0.01 par value  
Trading Symbol CMS  
Security Exchange Name NYSE  
CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078    
Document Information [Line Items]    
Title of each class CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078  
Trading Symbol CMSA  
Security Exchange Name NYSE  
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078    
Document Information [Line Items]    
Title of each class CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078  
Trading Symbol CMSC  
Security Exchange Name NYSE  
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079    
Document Information [Line Items]    
Title of each class CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079  
Trading Symbol CMSD  
Security Exchange Name NYSE  
Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series    
Document Information [Line Items]    
Title of each class Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series  
Trading Symbol CMS-PB  
Security Exchange Name NYSE  
v3.19.2
Consolidated Statements of Income (Unaudited) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Operating Revenue $ 1,445 $ 1,492 $ 3,504 $ 3,445
Operating Expenses        
Fuel for electric generation 119 115 261 247
Purchased power – related parties 16 19 34 38
Maintenance and other operating expenses 343 326 697 636
Depreciation and amortization 216 204 514 483
General taxes 71 68 177 155
Total operating expenses 1,227 1,237 2,927 2,827
Operating Income 218 255 577 618
Other Income (Expense)        
Interest income 2 4 3 6
Allowance for equity funds used during construction 3 1 5 2
Income from equity method investees 2 4 1 7
Nonoperating retirement benefits, net 23 22 46 46
Other income 2 0 3 1
Other expense (5) (9) (8) (11)
Total other income 27 22 50 51
Interest Charges        
Interest on long-term debt 110 103 216 203
Interest expense – related parties 3 0 3 0
Other interest expense 19 10 35 21
Allowance for borrowed funds used during construction (1) (1) (2) (1)
Total interest charges 131 112 252 223
Income Before Income Taxes 114 165 375 446
Income Tax Expense 20 25 68 65
Net Income 94 140 307 381
Income Attributable to Noncontrolling Interests 1 1 1 1
Net Income Available to Common Stockholders $ 93 $ 139 $ 306 $ 380
Basic earnings per average common share (in dollars per share) $ 0.33 $ 0.49 $ 1.08 $ 1.35
Diluted earnings per average common share (in dollars per share) $ 0.33 $ 0.49 $ 1.08 $ 1.35
Consumers Energy Company        
Operating Revenue $ 1,334 $ 1,395 $ 3,277 $ 3,250
Operating Expenses        
Fuel for electric generation 88 86 194 188
Purchased and interchange power 350 388 724 766
Purchased power – related parties 16 19 34 39
Cost of gas sold 104 108 505 485
Maintenance and other operating expenses 320 298 639 580
Depreciation and amortization 212 201 506 478
General taxes 69 66 172 151
Total operating expenses 1,159 1,166 2,774 2,687
Operating Income 175 229 503 563
Other Income (Expense)        
Interest income 1 2 2 4
Interest and dividend income – related parties 1 0 2 0
Allowance for equity funds used during construction 3 1 5 2
Nonoperating retirement benefits, net 22 20 43 42
Other income 1 0 2 1
Other expense (5) (3) (8) (5)
Total other income 23 20 46 44
Interest Charges        
Interest on long-term debt 68 67 137 134
Interest expense – related parties 3 0 3 0
Other interest expense 4 4 7 9
Allowance for borrowed funds used during construction (1) (1) (2) (1)
Total interest charges 74 70 145 142
Income Before Income Taxes 124 179 404 465
Income Tax Expense 26 27 80 71
Net Income 98 152 324 394
Preferred Stock Dividends 1 1 1 1
Net Income Available to Common Stockholder 97 151 323 393
Purchased and interchange power        
Operating Expenses        
Cost of sales 356 393 734 775
Cost of gas sold        
Operating Expenses        
Cost of sales $ 106 $ 112 $ 510 $ 493
v3.19.2
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Net income $ 94 $ 140 $ 307 $ 381
Retirement Benefits Liability        
Amortization of net actuarial loss, net of tax of $- for all periods 1 1 2 2
Amortization of prior service credit 0 (1) (1) (1)
Investments        
Unrealized loss on investments 0 0 0 (1)
Derivatives        
Unrealized loss on derivative instruments, net of tax of $(1), $-, $(1), and $- (2)   (3)  
Unrealized loss on derivative instruments, net of tax of $(1), $-, $(1), and $-   0   0
Other Comprehensive Loss (1) 0 (2) 0
Comprehensive Income 93 140 305 381
Comprehensive Income Attributable to Noncontrolling Interests 1 1 1 1
Comprehensive Income 92 139 304 380
Consumers Energy Company        
Net income 98 152 324 394
Retirement Benefits Liability        
Amortization of net actuarial loss, net of tax of $- for all periods 1 0 1 1
Investments        
Unrealized loss on investments 0 0 0 (1)
Derivatives        
Other Comprehensive Loss 1 0 1 0
Comprehensive Income $ 99 $ 152    
Comprehensive Income     $ 325 $ 394
v3.19.2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Amortization of net actuarial loss TAX $ 0 $ 0 $ 0 $ 0
Amortization of prior service credit (TAX BENEFIT) 0 0 0 0
Unrealized loss on investments (TAX BENEFIT) 0 0 0 0
Reclassification adjustments included in net income TAX (TAX BENEFIT) 0 0 0 0
Unrealized loss on derivative instruments (TAX BENEFIT) (1)   (1)  
Unrealized loss on derivative instruments (TAX BENEFIT)   0   0
Consumers Energy Company        
Amortization of net actuarial loss TAX 0 0 0 0
Unrealized loss on investments (TAX BENEFIT) 0 0 0 0
Reclassification adjustments included in net income TAX (TAX BENEFIT) $ 0 $ 0 $ 0 $ 0
v3.19.2
Consolidated Statements Of Cash Flows (Unaudited) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Cash Flows from Operating Activities    
Net income $ 307 $ 381
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation and amortization 514 483
Deferred income taxes and investment tax credit 60 60
Other non-cash operating activities and reconciling adjustments 9 22
Cash provided by (used in) changes in assets and liabilities    
Accounts and notes receivable and accrued revenue 190 298
Inventories 98 101
Accounts payable and accrued rate refunds (48) (41)
Other current and non-current assets and liabilities 55 112
Net cash provided by operating activities 1,185 1,416
Cash Flows from Investing Activities    
Capital expenditures (excludes assets placed under finance lease) (973) (872)
Increase in EnerBank notes receivable (170) (80)
Purchase of notes receivable by EnerBank (220) 0
Cost to retire property and other investing activities (47) (56)
Net cash used in investing activities (1,410) (1,008)
Cash Flows from Financing Activities    
Proceeds from issuance of debt 1,455 794
Retirement of debt (1,104) (660)
Increase in EnerBank certificates of deposit 371 136
Decrease in notes payable (97) (170)
Issuance of common stock 6 36
Payment of dividends on common and preferred stock (218) (204)
Payment of finance lease obligations and other financing costs (29) (43)
Net cash provided by (used in) financing activities 384 (111)
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts 159 297
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 175 204
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 334 501
Non-cash transactions    
Capital expenditures not paid 150 140
Consumers Energy Company    
Cash Flows from Operating Activities    
Net income 324 394
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation and amortization 506 478
Deferred income taxes and investment tax credit 41 35
Other non-cash operating activities and reconciling adjustments 4 15
Cash provided by (used in) changes in assets and liabilities    
Accounts and notes receivable and accrued revenue 187 172
Inventories 96 98
Accounts payable and accrued rate refunds (41) (34)
Other current and non-current assets and liabilities (7) (60)
Net cash provided by operating activities 1,110 1,098
Cash Flows from Investing Activities    
Capital expenditures (excludes assets placed under finance lease) (963) (859)
Cost to retire property and other investing activities (63) (55)
Net cash used in investing activities (1,026) (914)
Cash Flows from Financing Activities    
Proceeds from issuance of debt 297 544
Retirement of debt (528) (330)
Decrease in notes payable (97) (170)
Stockholder contribution 675 250
Payment of dividends on common and preferred stock (273) (246)
Payment of finance lease obligations and other financing costs (2) (21)
Net cash provided by (used in) financing activities 72 27
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts 156 211
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 56 65
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 212 276
Non-cash transactions    
Capital expenditures not paid $ 138 $ 116
v3.19.2
Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Current Assets    
Cash and cash equivalents $ 312 $ 153
Restricted cash and cash equivalents 22 21
Accounts receivable and accrued revenue, less allowance of $20 in both periods 749 964
Notes receivable, less allowance of $28 in 2019 and $24 in 2018 249 233
Assets held for sale 40 0
Accounts receivable – related parties 15 14
Accrued gas revenue 10 16
Inventories at average cost    
Gas in underground storage 353 450
Materials and supplies 147 143
Generating plant fuel stock 52 57
Deferred property taxes 204 279
Regulatory assets 18 37
Prepayments and other current assets 83 101
Total current assets 2,254 2,468
Plant, Property, and Equipment    
Plant, property, and equipment, gross 24,263 24,400
Less accumulated depreciation and amortization 7,130 7,037
Plant, property, and equipment, net 17,133 17,363
Construction work in progress 973 763
Total plant, property, and equipment 18,106 18,126
Other Non-current Assets    
Regulatory assets 2,344 1,743
Accounts and notes receivable 2,005 1,645
Investments 64 69
Other 519 478
Total other non-current assets 4,932 3,935
Total Assets 25,292 24,529
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 1,077 996
Notes payable 0 97
Accounts payable 627 723
Accounts payable – related parties 9 10
Accrued rate refunds 34 4
Accrued interest 95 94
Accrued taxes 295 398
Regulatory liabilities 67 155
Other current liabilities 182 147
Total current liabilities 2,386 2,624
Non-current Liabilities    
Long-term debt 11,236 10,615
Non-current portion of finance leases and other financing 86 69
Regulatory liabilities 3,786 3,681
Postretirement benefits 443 436
Asset retirement obligations 438 432
Deferred investment tax credit 117 99
Deferred income taxes 1,548 1,487
Other non-current liabilities 364 294
Total non-current liabilities 18,018 17,113
Commitments and contingencies
Common stockholders’ equity    
Common stock, authorized 350.0 shares; outstanding 283.8 shares in 2019 and 283.4 shares in 2018 3 3
Other paid-in capital 5,097 5,088
Accumulated other comprehensive loss (67) (65)
Accumulated deficit (182) (271)
Total common stockholders’ equity 4,851 4,755
Noncontrolling interests 37 37
Total equity 4,888 4,792
Total Liabilities and Equity 25,292 24,529
Consumers Energy Company    
Current Assets    
Cash and cash equivalents 196 39
Restricted cash and cash equivalents 16 17
Accounts receivable and accrued revenue, less allowance of $20 in both periods 653 855
Assets held for sale 40 0
Accounts receivable – related parties 8 15
Accrued gas revenue 10 16
Inventories at average cost    
Gas in underground storage 353 450
Materials and supplies 142 137
Generating plant fuel stock 48 52
Deferred property taxes 204 279
Regulatory assets 18 37
Prepayments and other current assets 71 83
Total current assets 1,759 1,980
Plant, Property, and Equipment    
Plant, property, and equipment, gross 23,833 23,963
Less accumulated depreciation and amortization 7,046 6,958
Plant, property, and equipment, net 16,787 17,005
Construction work in progress 960 756
Total plant, property, and equipment 17,747 17,761
Other Non-current Assets    
Regulatory assets 2,344 1,743
Accounts and notes receivable 29 27
Accounts and notes receivable – related parties 103 104
Other 434 410
Total other non-current assets 2,910 2,284
Total Assets 22,416 22,025
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 47 48
Notes payable 0 97
Accounts payable 595 685
Accounts payable – related parties 16 14
Accrued rate refunds 34 4
Accrued interest 58 59
Accrued taxes 298 436
Regulatory liabilities 67 155
Other current liabilities 142 120
Total current liabilities 1,257 1,618
Non-current Liabilities    
Long-term debt 6,546 6,779
Non-current portion of finance leases and other financing 86 69
Regulatory liabilities 3,786 3,681
Postretirement benefits 400 392
Asset retirement obligations 435 428
Deferred investment tax credit 117 99
Deferred income taxes 1,851 1,809
Other non-current liabilities 291 230
Total non-current liabilities 13,512 13,487
Commitments and contingencies
Common stockholders’ equity    
Common stock, authorized 350.0 shares; outstanding 283.8 shares in 2019 and 283.4 shares in 2018 841 841
Other paid-in capital 5,374 4,699
Accumulated other comprehensive loss (20) (21)
Accumulated deficit 1,415 1,364
Total common stockholders’ equity 7,610 6,883
Preferred stock 37 37
Total equity 7,647 6,920
Total Liabilities and Equity $ 22,416 $ 22,025
v3.19.2
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Accounts receivable and accrued revenue ALLOWANCE $ 20 $ 20
Accounts and notes receivable ALLOWANCE $ 28 $ 24
Common stock, authorized (in shares) 350,000,000.0 350,000,000.0
Common stock, outstanding (in shares) 283,800,000 283,400,000
Consumers Energy Company    
Accounts receivable and accrued revenue ALLOWANCE $ 20 $ 20
Common stock, authorized (in shares) 125,000,000 125,000,000
Common stock, outstanding (in shares) 84,100,000 84,100,000
v3.19.2
Consolidated Statements of Changes In Equity (Unaudited) - USD ($)
$ in Millions
Total
Common Stock
Other Paid-in Capital
Accumulated Other Comprehensive Loss
Retirement benefits liability
Investments
Derivative instruments
Derivative instruments
Accumulated Deficit
Noncontrolling Interests
Consumers Energy Company
Consumers Energy Company
Common Stock
Consumers Energy Company
Other Paid-in Capital
Consumers Energy Company
Accumulated Other Comprehensive Loss
Consumers Energy Company
Retirement benefits liability
Consumers Energy Company
Investments
Consumers Energy Company
Accumulated Deficit
Consumers Energy Company
Preferred Stock
Total Equity at Beginning of Period at Dec. 31, 2017 $ 4,478 $ 3 $ 5,019 $ (50) $ (50) $ 0 $ 0   $ (531) $ 37 $ 6,488 $ 841 $ 4,449 $ (12) $ (24) $ 12 $ 1,173 $ 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                    
Common stock issued     47                              
Common stock repurchased     (10)                              
Common stock reissued     20                              
Stockholder contribution                         250          
Amortization of net actuarial loss 2       2           1       1      
Amortization of prior service credit (1)       (1)                          
Unrealized loss on investments (1)         (1)         (1)         (1)    
Unrealized loss on derivative instruments, net of tax of $(1), $-, $(1), and $- 0                                  
Net income 381               380 1 394           394  
Dividends declared on common stock                 (203)               (245)  
Dividends declared on preferred stock                                 (1)  
Distributions and other changes in noncontrolling interests                   (1)                
Total Equity at End of Period at Jun. 30, 2018 $ 4,709   5,076 (61) (60) (1)     (346) 37 6,888 841 4,699 (29) (28) (1) 1,340 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                    
Dividends declared per common share (in dollars per share) $ 0.7150                                  
Total Equity at Beginning of Period at Dec. 31, 2017 $ 4,478 3 5,019 (50) (50) 0 0   (531) 37 6,488 841 4,449 (12) (24) 12 1,173 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                    
Unrealized loss on derivative instruments, net of tax of $(1), $-, $(1), and $-             0                      
Total Equity at End of Period at Dec. 31, 2018 4,792 3 5,088 (65) (63) 0   $ (2) (271) 37 6,920 841 4,699 (21) (21) 0 1,364 37
Total Equity at Beginning of Period at Mar. 31, 2018 4,633 3 5,037 (61) (60) (1) 0   (383) 37 6,713 841 4,549 (29) (28) (1) 1,315 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                    
Common stock issued     39                              
Common stock repurchased     0                              
Common stock reissued     0                              
Stockholder contribution                         150          
Amortization of net actuarial loss 1       1           0       0      
Amortization of prior service credit (1)       (1)                          
Unrealized loss on investments 0         0         0         0    
Unrealized loss on derivative instruments, net of tax of $(1), $-, $(1), and $- 0           $ 0                      
Net income 140               139 1 152           152  
Dividends declared on common stock                 (102)               (126)  
Dividends declared on preferred stock                                 (1)  
Distributions and other changes in noncontrolling interests                   (1)                
Total Equity at End of Period at Jun. 30, 2018 $ 4,709   5,076 (61) (60) (1)     (346) 37 6,888 841 4,699 (29) (28) (1) 1,340 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                    
Dividends declared per common share (in dollars per share) $ 0.3575                                  
Total Equity at Beginning of Period at Dec. 31, 2018 $ 4,792 3 5,088 (65) (63) 0   (2) (271) 37 6,920 841 4,699 (21) (21) 0 1,364 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                    
Common stock issued     17                              
Common stock repurchased     (8)                              
Common stock reissued     0                              
Stockholder contribution                         675          
Amortization of net actuarial loss 2       2           1       1      
Amortization of prior service credit (1)       (1)                          
Unrealized loss on investments 0         0         0         0    
Unrealized loss on derivative instruments (3)             (3)                    
Net income 307               306 1 324           324  
Dividends declared on common stock                 (217)               (272)  
Dividends declared on preferred stock                                 (1)  
Distributions and other changes in noncontrolling interests                   (1)                
Total Equity at End of Period at Jun. 30, 2019 $ 4,888   5,097 (67) (62) 0   (5) (182) 37 7,647 841 5,374 (20) (20) 0 1,415 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                    
Dividends declared per common share (in dollars per share) $ 0.7650                                  
Total Equity at Beginning of Period at Mar. 31, 2019 $ 4,895 $ 3 5,087 (66) (63) 0   (3) (166) 37 7,324 841 5,049 (21) (21) 0 1,418 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                    
Common stock issued     10                              
Common stock repurchased     0                              
Common stock reissued     0                              
Stockholder contribution                         325          
Amortization of net actuarial loss 1       1           1       1      
Amortization of prior service credit 0       0                          
Unrealized loss on investments 0         0         0         0    
Unrealized loss on derivative instruments (2)             (2)                    
Net income 94               93 1 98           98  
Dividends declared on common stock                 (109)               (100)  
Dividends declared on preferred stock                                 (1)  
Distributions and other changes in noncontrolling interests                   (1)                
Total Equity at End of Period at Jun. 30, 2019 $ 4,888   $ 5,097 $ (67) $ (62) $ 0   $ (5) $ (182) $ 37 $ 7,647 $ 841 $ 5,374 $ (20) $ (20) $ 0 $ 1,415 $ 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                    
Dividends declared per common share (in dollars per share) $ 0.3825                                  
v3.19.2
New Accounting Standards
6 Months Ended
Jun. 30, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
New Accounting Standards New Accounting Standards
Implementation of New Accounting Standards
ASU 2016‑02, Leases: This standard, which was effective on January 1, 2019 for CMS Energy and Consumers, establishes a new accounting model for leases. The standard requires lessees to recognize lease assets and liabilities on the balance sheet for all leases with a term of more than one year, including operating leases, which were not recorded on the balance sheet under previous standards. The new guidance also amends the definition of a lease to require that a lessee have the right to control the use of a specified asset, and not simply control or take the output of the asset. On the statement of income, operating leases are generally accounted for under a straight-line expense model, while finance leases, which were previously referred to as capital leases, are generally accounted for under a financing model. Consistent with the previous lease guidance, however, the standard allows rate-regulated utilities to recognize expense consistent with the timing of recovery in rates.
CMS Energy and Consumers elected to use certain practical expedients permitted by the standard, under which they were not required to perform lease assessments or reassessments for agreements existing on the effective date. They also elected a transition method under which they initially applied the standard on January 1, 2019, without adjusting amounts presented for prior periods. Under the standard, CMS Energy and Consumers recognized additional lease assets and liabilities on their consolidated balance sheets as of January 1, 2019 for their operating leases. In addition, in accordance with the standard, they have provided additional disclosures about their leases in Note 8, Leases. The standard did not have any impact on CMS Energy’s and Consumers’ consolidated net income or cash flows, and there was no cumulative-effect adjustment recorded to beginning retained earnings.
New Accounting Standards Not Yet Effective
ASU 2016‑13, Measurement of Credit Losses on Financial Instruments: This standard, which will be effective January 1, 2020 for CMS Energy and Consumers, provides new guidance for estimating and
recording credit losses on financial instruments. The standard will apply to the recognition of loan losses at EnerBank as well as to the recognition of uncollectible accounts expense at Consumers. Entities will apply the standard using a modified retrospective approach, with a cumulative‑effect adjustment recorded to beginning retained earnings on the effective date. CMS Energy and Consumers are evaluating the impact of the standard on their consolidated financial statements.
Consumers Energy Company  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
New Accounting Standards New Accounting Standards
Implementation of New Accounting Standards
ASU 2016‑02, Leases: This standard, which was effective on January 1, 2019 for CMS Energy and Consumers, establishes a new accounting model for leases. The standard requires lessees to recognize lease assets and liabilities on the balance sheet for all leases with a term of more than one year, including operating leases, which were not recorded on the balance sheet under previous standards. The new guidance also amends the definition of a lease to require that a lessee have the right to control the use of a specified asset, and not simply control or take the output of the asset. On the statement of income, operating leases are generally accounted for under a straight-line expense model, while finance leases, which were previously referred to as capital leases, are generally accounted for under a financing model. Consistent with the previous lease guidance, however, the standard allows rate-regulated utilities to recognize expense consistent with the timing of recovery in rates.
CMS Energy and Consumers elected to use certain practical expedients permitted by the standard, under which they were not required to perform lease assessments or reassessments for agreements existing on the effective date. They also elected a transition method under which they initially applied the standard on January 1, 2019, without adjusting amounts presented for prior periods. Under the standard, CMS Energy and Consumers recognized additional lease assets and liabilities on their consolidated balance sheets as of January 1, 2019 for their operating leases. In addition, in accordance with the standard, they have provided additional disclosures about their leases in Note 8, Leases. The standard did not have any impact on CMS Energy’s and Consumers’ consolidated net income or cash flows, and there was no cumulative-effect adjustment recorded to beginning retained earnings.
New Accounting Standards Not Yet Effective
ASU 2016‑13, Measurement of Credit Losses on Financial Instruments: This standard, which will be effective January 1, 2020 for CMS Energy and Consumers, provides new guidance for estimating and
recording credit losses on financial instruments. The standard will apply to the recognition of loan losses at EnerBank as well as to the recognition of uncollectible accounts expense at Consumers. Entities will apply the standard using a modified retrospective approach, with a cumulative‑effect adjustment recorded to beginning retained earnings on the effective date. CMS Energy and Consumers are evaluating the impact of the standard on their consolidated financial statements.
v3.19.2
Regulatory Matters
6 Months Ended
Jun. 30, 2019
Public Utilities, General Disclosures [Line Items]  
Regulatory Matters Regulatory Matters
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings.
There are multiple appeals pending that involve various issues concerning cost recovery from customers, the adequacy of the record of evidence supporting the recovery of Smart Energy investments, and other matters. Consumers is unable to predict the outcome of these appeals.
2017 Electric Rate Case: In June 2018, the MPSC issued an order authorizing an annual rate increase of $72 million, based on a 10.0 percent authorized return on equity. In July 2018, Consumers filed a reconciliation of total revenues collected from rates it self‑implemented in October 2017 to those that would have been collected under final rates. The reconciliation indicated that a $36 million refund would be required, which was recorded on Consumers’ consolidated balance sheets as a current regulatory liability at June 30, 2019.
2018 Electric Rate Case: In May 2018, Consumers filed an application with the MPSC seeking an annual rate increase of $58 million, based on a 10.75 percent authorized return on equity. The filing requested authority to recover new investment in system reliability, environmental compliance, and technology enhancements. In October 2018, Consumers reduced its requested annual rate increase to $44 million. In January 2019, the MPSC approved a settlement agreement authorizing an annual rate decrease of $24 million, based on a 10.0 percent authorized return on equity. With the elimination of the $113 million TCJA credit to customer bills, the approved settlement agreement resulted in an $89 million net increase in annual rates. The settlement agreement also provided for deferred accounting treatment for distribution‑related capital investments exceeding certain amounts. Consumers also agreed to not file a new electric rate case prior to January 2020.
Tax Cuts and Jobs Act: The TCJA, which changed existing federal tax law and included numerous provisions that affect businesses, was signed into law in December 2017.
In early 2018, the MPSC ordered Consumers to file various proceedings to determine the reduction in its electric and gas revenue requirements as a result of the reduction in the corporate income tax rate, and to implement bill credits to reflect that reduction until customer rates could be adjusted through Consumers’ general rate cases. Consumers filed, and the MPSC approved, such proceedings throughout 2018, resulting in credits to customer bills during 2018 to reflect reductions in Consumers’ electric and gas revenue requirements.
Consumers filed additional proceedings to address amounts collected from customers during 2018 prior to the implementation of bill credits. In late 2018, the MPSC approved the refund of $31 million to gas customers over six months beginning in December 2018 and the refund of $70 million to electric
customers over six months beginning in January 2019. Consumers had a recorded current regulatory liability of $9 million for these approved refunds at June 30, 2019.
In October 2018, Consumers filed an application to address the December 31, 2017 remeasurement of its deferred income taxes and other base rate impacts of the TCJA on customers. In April 2019, Consumers filed rebuttal testimony and is now proposing approval to begin returning $0.4 billion of net regulatory tax liabilities through rates to be determined in Consumers’ pending gas rate case and $1.2 billion through a temporary bill credit until customer rates can be adjusted through an electric rate case. Consumers’ total $1.6 billion of net regulatory tax liabilities comprises:
A regulatory tax liability of $1.7 billion associated with plant assets that are subject to normalization, which is governed by the Internal Revenue Code. This requires that the regulatory tax liability be returned over the remaining book life of the related plant assets, the average of which is 44 years for gas plant assets and 27 years for electric plant assets.
A regulatory tax asset of $0.3 billion associated with plant assets that are not subject to normalization. Consumers proposed to collect this over 44 years from gas customers and over 27 years from electric customers.
A regulatory tax liability of $0.2 billion, which is primarily related to employee benefits. Consumers proposed to refund this amount to customers over ten years.
In January 2018, Consumers began to reduce the regulatory liability subject to normalization by crediting income tax expense. Consumers has fully reserved for the eventual refund of these excess deferred taxes that it has credited to income tax expense in a separate non‑current regulatory liability established by reducing revenue, and will continue to do so until these benefits are passed on to customers in accordance with an MPSC order, expected to be issued in 2019. At June 30, 2019, this reserve for refund of these excess deferred taxes totaled $53 million. For additional details on the remeasurement, see Note 10, Income Taxes.
Costs of Coal-Fueled Electric Generating Units to be Retired: In June 2019, the MPSC approved the settlement agreement reached in Consumers’ IRP, under which Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Under Michigan law, electric utilities have been permitted to use highly rated, low-cost securitization bonds to finance the recovery of qualified costs. Consumers will file for securitization financing by May 2023, requesting the MPSC’s approval to securitize qualified costs of $657 million, representing the remaining book value in 2023 of the two coal-fueled electric generating units upon their retirement. In June 2019, Consumers removed this amount from plant, property, and equipment and recorded it as a regulatory asset. Until securitization, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases.
Energy Waste Reduction Plan Incentive: Consumers filed its 2018 waste reduction reconciliation in May 2019, requesting the MPSC’s approval to collect from customers the maximum performance incentive of $34 million for exceeding its statutory savings targets in 2018. Consumers recognized incentive revenue under this program of $34 million in 2018.
Consumers Energy Company  
Public Utilities, General Disclosures [Line Items]  
Regulatory Matters Regulatory Matters
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings.
There are multiple appeals pending that involve various issues concerning cost recovery from customers, the adequacy of the record of evidence supporting the recovery of Smart Energy investments, and other matters. Consumers is unable to predict the outcome of these appeals.
2017 Electric Rate Case: In June 2018, the MPSC issued an order authorizing an annual rate increase of $72 million, based on a 10.0 percent authorized return on equity. In July 2018, Consumers filed a reconciliation of total revenues collected from rates it self‑implemented in October 2017 to those that would have been collected under final rates. The reconciliation indicated that a $36 million refund would be required, which was recorded on Consumers’ consolidated balance sheets as a current regulatory liability at June 30, 2019.
2018 Electric Rate Case: In May 2018, Consumers filed an application with the MPSC seeking an annual rate increase of $58 million, based on a 10.75 percent authorized return on equity. The filing requested authority to recover new investment in system reliability, environmental compliance, and technology enhancements. In October 2018, Consumers reduced its requested annual rate increase to $44 million. In January 2019, the MPSC approved a settlement agreement authorizing an annual rate decrease of $24 million, based on a 10.0 percent authorized return on equity. With the elimination of the $113 million TCJA credit to customer bills, the approved settlement agreement resulted in an $89 million net increase in annual rates. The settlement agreement also provided for deferred accounting treatment for distribution‑related capital investments exceeding certain amounts. Consumers also agreed to not file a new electric rate case prior to January 2020.
Tax Cuts and Jobs Act: The TCJA, which changed existing federal tax law and included numerous provisions that affect businesses, was signed into law in December 2017.
In early 2018, the MPSC ordered Consumers to file various proceedings to determine the reduction in its electric and gas revenue requirements as a result of the reduction in the corporate income tax rate, and to implement bill credits to reflect that reduction until customer rates could be adjusted through Consumers’ general rate cases. Consumers filed, and the MPSC approved, such proceedings throughout 2018, resulting in credits to customer bills during 2018 to reflect reductions in Consumers’ electric and gas revenue requirements.
Consumers filed additional proceedings to address amounts collected from customers during 2018 prior to the implementation of bill credits. In late 2018, the MPSC approved the refund of $31 million to gas customers over six months beginning in December 2018 and the refund of $70 million to electric
customers over six months beginning in January 2019. Consumers had a recorded current regulatory liability of $9 million for these approved refunds at June 30, 2019.
In October 2018, Consumers filed an application to address the December 31, 2017 remeasurement of its deferred income taxes and other base rate impacts of the TCJA on customers. In April 2019, Consumers filed rebuttal testimony and is now proposing approval to begin returning $0.4 billion of net regulatory tax liabilities through rates to be determined in Consumers’ pending gas rate case and $1.2 billion through a temporary bill credit until customer rates can be adjusted through an electric rate case. Consumers’ total $1.6 billion of net regulatory tax liabilities comprises:
A regulatory tax liability of $1.7 billion associated with plant assets that are subject to normalization, which is governed by the Internal Revenue Code. This requires that the regulatory tax liability be returned over the remaining book life of the related plant assets, the average of which is 44 years for gas plant assets and 27 years for electric plant assets.
A regulatory tax asset of $0.3 billion associated with plant assets that are not subject to normalization. Consumers proposed to collect this over 44 years from gas customers and over 27 years from electric customers.
A regulatory tax liability of $0.2 billion, which is primarily related to employee benefits. Consumers proposed to refund this amount to customers over ten years.
In January 2018, Consumers began to reduce the regulatory liability subject to normalization by crediting income tax expense. Consumers has fully reserved for the eventual refund of these excess deferred taxes that it has credited to income tax expense in a separate non‑current regulatory liability established by reducing revenue, and will continue to do so until these benefits are passed on to customers in accordance with an MPSC order, expected to be issued in 2019. At June 30, 2019, this reserve for refund of these excess deferred taxes totaled $53 million. For additional details on the remeasurement, see Note 10, Income Taxes.
Costs of Coal-Fueled Electric Generating Units to be Retired: In June 2019, the MPSC approved the settlement agreement reached in Consumers’ IRP, under which Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Under Michigan law, electric utilities have been permitted to use highly rated, low-cost securitization bonds to finance the recovery of qualified costs. Consumers will file for securitization financing by May 2023, requesting the MPSC’s approval to securitize qualified costs of $657 million, representing the remaining book value in 2023 of the two coal-fueled electric generating units upon their retirement. In June 2019, Consumers removed this amount from plant, property, and equipment and recorded it as a regulatory asset. Until securitization, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases.
Energy Waste Reduction Plan Incentive: Consumers filed its 2018 waste reduction reconciliation in May 2019, requesting the MPSC’s approval to collect from customers the maximum performance incentive of $34 million for exceeding its statutory savings targets in 2018. Consumers recognized incentive revenue under this program of $34 million in 2018.
v3.19.2
Contingencies and Commitments
6 Months Ended
Jun. 30, 2019
Site Contingency [Line Items]  
Contingencies and Commitments Contingencies and Commitments
CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or
range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter.
CMS Energy Contingencies
Gas Index Price Reporting Litigation: CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, were named as defendants in four class action lawsuits and one individual lawsuit arising as a result of alleged inaccurate natural gas price reporting to publications that report trade information. Allegations include price‑fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices in Kansas, Missouri, and Wisconsin. In 2016, CMS Energy entities reached a settlement with the plaintiffs in the Kansas and Missouri class action cases for an amount that was not material to CMS Energy. In 2017, the federal district court approved the settlement. Plaintiffs are making claims for the following: treble damages, full consideration damages, exemplary damages, costs, interest, and/or attorneys’ fees.
After removal to federal court, all of the cases were transferred to a single federal district court pursuant to the multidistrict litigation process. In 2010 and 2011, all claims against CMS Energy defendants were dismissed by the district court based on FERC preemption.
In 2013, the U.S. Court of Appeals for the Ninth Circuit reversed the district court decision. The appellate court found that FERC preemption does not apply under the facts of these cases. The appellate court affirmed the district court’s denial of leave to amend to add federal antitrust claims. The matter was appealed to the U.S. Supreme Court, which in 2015 upheld the Ninth Circuit’s decision. The cases were remanded back to the federal district court.
In 2016, the federal district court granted the defendants’ motion for summary judgment in the individual lawsuit filed in Kansas based on a release in a prior settlement involving similar allegations; the order of summary judgment was subsequently appealed. In March 2018, the U.S. Court of Appeals for the Ninth Circuit reversed the lower court’s ruling and remanded the case back to the federal district court.
In 2017, the federal district court denied plaintiffs’ motion for class certification in the two pending class action cases in Wisconsin. The plaintiffs appealed that decision to the U.S. Court of Appeals for the Ninth Circuit and in August 2018, the Ninth Circuit Court of Appeals reversed and remanded the matter back to the federal district court for further consideration.
In January 2019, the judge in the multidistrict litigation granted motions filed by plaintiffs for Suggestion of Remand of the actions back to the respective transferor courts in Wisconsin and Kansas for further handling. In the Kansas action, the Judicial Panel on Multidistrict Litigation ordered the remand and the case is being transferred. In the Wisconsin actions, oppositions to the remand were filed, but the Judicial Panel on Multidistrict Litigation granted the remand in June 2019.
These cases involve complex facts, a large number of similarly situated defendants with different factual positions, and multiple jurisdictions. Presently, any estimate of liability would be highly speculative; the amount of CMS Energy’s reasonably possible loss would be based on widely varying models previously untested in this context. If the outcome after appeals is unfavorable, these cases could negatively affect CMS Energy’s liquidity, financial condition, and results of operations.
Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate, a liquid consisting of water and other substances, at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement
that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit issued in 2010 and renewed in 2016. The renewed NPDES permit is valid through September 2020.
At June 30, 2019, CMS Energy had a recorded liability of $45 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $56 million. CMS Energy expects to pay the following amounts for long‑term liquid disposal and operating and maintenance costs during the remainder of 2019 and in each of the next five years:
In Millions
 
 
2019
 
2020
 
2021
 
2022
 
2023
 
2024
 
CMS Energy
 
 
 
 
 
 
 
 
 
 
 
 
Long‑term liquid disposal and operating and maintenance costs
 
$
2

 
$
4

 
$
4

 
$
4

 
$
4

 
$
4


CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter.
Equatorial Guinea Tax Claim: In 2002, CMS Energy sold its oil, gas, and methanol investments in Equatorial Guinea. The government of Equatorial Guinea claims that, in connection with the sale, CMS Energy owes $152 million in taxes, plus substantial penalties and interest that could be up to the amount of the taxes claimed. In 2015, the matter was proceeding to formal arbitration; however, since then, the government of Equatorial Guinea has stopped communicating. CMS Energy has concluded that the government’s tax claim is without merit and will continue to contest the claim, but cannot predict the financial impact or outcome of the matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s liquidity, financial condition, and results of operations.
Consumers Electric Utility Contingencies
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations.
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $3 million and $4 million. At June 30, 2019, Consumers had a recorded liability of $3 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount.
Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB‑containing materials at portions of the site. In 2011, Consumers received a follow‑up letter from the EPA requesting that
Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river.
Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At June 30, 2019, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount.
The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability.
Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome.
MCV PPA: In December 2017, the MCV Partnership initiated arbitration against Consumers, asserting a breach of contract associated with the MCV PPA. Under this PPA, Consumers pays the MCV Partnership a fixed energy charge based on Consumers’ annual average baseload coal generating plant operating and maintenance cost, fuel inventory, and administrative and general expenses. The MCV Partnership asserts that, under the Clean Air Act, Consumers should have installed pollution control equipment on coal‑fueled electric generating units years before they were retired. The MCV Partnership also asserts that Consumers should have installed pollution control equipment earlier on its remaining coal‑fueled electric generating units. Additionally, the MCV Partnership claims that Consumers improperly characterized certain costs included in the calculation of the fixed energy charge.
In January 2019, an arbitration panel issued an order concluding that the MCV Partnership is not entitled to any damages associated with its claim against Consumers related to the Clean Air Act; the majority of the MCV Partnership’s claim, which estimated damages and interest in excess of $270 million, was related to this dismissed claim. Consumers believes that the MCV Partnership’s remaining claims are without merit, but cannot predict the financial impact or outcome of the matter.
Underwater Cables in Straits of Mackinac: Consumers owns certain underwater electric cables in the Straits of Mackinac, which were de‑energized and retired in 1990. Consumers was notified that some of these cables were damaged as a result of vessel activity in April 2018. Following the notification, Consumers located, inspected, sampled, capped, and returned the damaged retired cables to their original location on the lake bottom, and did not find any substantive evidence of environmental contamination. Consumers is collaborating with the State of Michigan, local Native American tribes, and other stakeholders to evaluate the status of the cables and to determine if any additional action is advisable. Consumers cannot predict the outcome of this matter, but if Consumers is required to remove all the cables, it could incur additional costs of up to $10 million. Consumers has filed suit against the companies that own the vessels that allegedly caused the damage. Consumers will seek recovery from customers of any costs incurred.
Consumers Gas Utility Contingencies
Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site.
At June 30, 2019, Consumers had a recorded liability of $68 million for its remaining obligations for these sites. This amount represents the present value of long‑term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $74 million. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2019 and in each of the next five years: 
In Millions
 
 
2019
 
2020
 
2021
 
2022
 
2023
 
2024
 
Consumers
 
 
 
 
 
 
 
 
 
 
 
 
Remediation and other response activity costs
 
$
8

 
$
16

 
$
21

 
$
7

 
$
2

 
$
2


Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability.
Pursuant to orders issued by the MPSC, Consumers defers its MGP‑related remediation costs and recovers them from its customers over a ten‑year period. At June 30, 2019, Consumers had a regulatory asset of $129 million related to the MGP sites.
Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million. At June 30, 2019, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount.
Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding.
As a result of the fire and the resulting curtailment, Consumers could be subject to various claims from impacted customers or claims for damages. Consumers may also be subject to regulatory penalties and disallowances of gas purchased, gas lost, and costs associated with the repairs to the Ray Compressor Station. At this time, Consumers cannot predict the outcome of these matters or other gas-related incidents and a reasonable estimate of any loss cannot be made, but they could have a material adverse effect on Consumers’ results of operations, financial condition, or liquidity, and could subject Consumers’ gas utility to increased regulatory scrutiny.
Consumers Electric and Gas Utility Contingencies
Electric and Gas Staking: In June 2019, the MPSC ordered Consumers to show cause as to why it should not be found in violation of the MISS DIG Act. The MPSC alleges that Consumers violated the law by failing to respond in a timely manner to over 20,000 requests to mark the location of underground facilities in April and May 2019 and only partially responding to others. The law provides the MPSC with discretion in setting fines for violations, if any; however, the fines cannot exceed $5,000 per violation. An order by the MPSC in this proceeding is not expected until mid-2020. Consumers has resolved the backlog of staking requests. Consumers cannot predict the outcome of this matter, but it could be subject to regulatory penalties that have a material adverse effect on Consumers’ results of operations, financial condition, or liquidity, and Consumers could be subject to increased regulatory scrutiny.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2019:
In Millions
 
Guarantee Description
Issue Date
Expiration Date
Maximum Obligation
 
Carrying Amount
 
CMS Energy, including Consumers
 
 
 
 
 
 
 
 
Indemnity obligations from stock and asset sale agreements1
 
various
 
indefinite
 
$
153

 
$
2

Guarantees2
 
various
 
indefinite
 
36

 

Consumers
 
 
 
 
 
 
 
 
Guarantee2
 
July 2011
 
indefinite
 
$
30

 
$

1 
These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
2 
At Consumers, this obligation comprises a guarantee provided to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers’ guarantee to the U.S. Department of Energy and CMS Energy’s 1994 guarantee of non‑recourse revenue bonds issued by Genesee.
Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. The carrying value of these indemnity obligations is $1 million. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote.
Other Contingencies
In addition to the matters disclosed in this Note and Note 2, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further,
CMS Energy and Consumers occasionally self‑report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity.
Consumers Energy Company  
Site Contingency [Line Items]  
Contingencies and Commitments Contingencies and Commitments
CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or
range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter.
CMS Energy Contingencies
Gas Index Price Reporting Litigation: CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, were named as defendants in four class action lawsuits and one individual lawsuit arising as a result of alleged inaccurate natural gas price reporting to publications that report trade information. Allegations include price‑fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices in Kansas, Missouri, and Wisconsin. In 2016, CMS Energy entities reached a settlement with the plaintiffs in the Kansas and Missouri class action cases for an amount that was not material to CMS Energy. In 2017, the federal district court approved the settlement. Plaintiffs are making claims for the following: treble damages, full consideration damages, exemplary damages, costs, interest, and/or attorneys’ fees.
After removal to federal court, all of the cases were transferred to a single federal district court pursuant to the multidistrict litigation process. In 2010 and 2011, all claims against CMS Energy defendants were dismissed by the district court based on FERC preemption.
In 2013, the U.S. Court of Appeals for the Ninth Circuit reversed the district court decision. The appellate court found that FERC preemption does not apply under the facts of these cases. The appellate court affirmed the district court’s denial of leave to amend to add federal antitrust claims. The matter was appealed to the U.S. Supreme Court, which in 2015 upheld the Ninth Circuit’s decision. The cases were remanded back to the federal district court.
In 2016, the federal district court granted the defendants’ motion for summary judgment in the individual lawsuit filed in Kansas based on a release in a prior settlement involving similar allegations; the order of summary judgment was subsequently appealed. In March 2018, the U.S. Court of Appeals for the Ninth Circuit reversed the lower court’s ruling and remanded the case back to the federal district court.
In 2017, the federal district court denied plaintiffs’ motion for class certification in the two pending class action cases in Wisconsin. The plaintiffs appealed that decision to the U.S. Court of Appeals for the Ninth Circuit and in August 2018, the Ninth Circuit Court of Appeals reversed and remanded the matter back to the federal district court for further consideration.
In January 2019, the judge in the multidistrict litigation granted motions filed by plaintiffs for Suggestion of Remand of the actions back to the respective transferor courts in Wisconsin and Kansas for further handling. In the Kansas action, the Judicial Panel on Multidistrict Litigation ordered the remand and the case is being transferred. In the Wisconsin actions, oppositions to the remand were filed, but the Judicial Panel on Multidistrict Litigation granted the remand in June 2019.
These cases involve complex facts, a large number of similarly situated defendants with different factual positions, and multiple jurisdictions. Presently, any estimate of liability would be highly speculative; the amount of CMS Energy’s reasonably possible loss would be based on widely varying models previously untested in this context. If the outcome after appeals is unfavorable, these cases could negatively affect CMS Energy’s liquidity, financial condition, and results of operations.
Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate, a liquid consisting of water and other substances, at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement
that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit issued in 2010 and renewed in 2016. The renewed NPDES permit is valid through September 2020.
At June 30, 2019, CMS Energy had a recorded liability of $45 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $56 million. CMS Energy expects to pay the following amounts for long‑term liquid disposal and operating and maintenance costs during the remainder of 2019 and in each of the next five years:
In Millions
 
 
2019
 
2020
 
2021
 
2022
 
2023
 
2024
 
CMS Energy
 
 
 
 
 
 
 
 
 
 
 
 
Long‑term liquid disposal and operating and maintenance costs
 
$
2

 
$
4

 
$
4

 
$
4

 
$
4

 
$
4


CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter.
Equatorial Guinea Tax Claim: In 2002, CMS Energy sold its oil, gas, and methanol investments in Equatorial Guinea. The government of Equatorial Guinea claims that, in connection with the sale, CMS Energy owes $152 million in taxes, plus substantial penalties and interest that could be up to the amount of the taxes claimed. In 2015, the matter was proceeding to formal arbitration; however, since then, the government of Equatorial Guinea has stopped communicating. CMS Energy has concluded that the government’s tax claim is without merit and will continue to contest the claim, but cannot predict the financial impact or outcome of the matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s liquidity, financial condition, and results of operations.
Consumers Electric Utility Contingencies
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations.
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $3 million and $4 million. At June 30, 2019, Consumers had a recorded liability of $3 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount.
Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB‑containing materials at portions of the site. In 2011, Consumers received a follow‑up letter from the EPA requesting that
Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river.
Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At June 30, 2019, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount.
The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability.
Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome.
MCV PPA: In December 2017, the MCV Partnership initiated arbitration against Consumers, asserting a breach of contract associated with the MCV PPA. Under this PPA, Consumers pays the MCV Partnership a fixed energy charge based on Consumers’ annual average baseload coal generating plant operating and maintenance cost, fuel inventory, and administrative and general expenses. The MCV Partnership asserts that, under the Clean Air Act, Consumers should have installed pollution control equipment on coal‑fueled electric generating units years before they were retired. The MCV Partnership also asserts that Consumers should have installed pollution control equipment earlier on its remaining coal‑fueled electric generating units. Additionally, the MCV Partnership claims that Consumers improperly characterized certain costs included in the calculation of the fixed energy charge.
In January 2019, an arbitration panel issued an order concluding that the MCV Partnership is not entitled to any damages associated with its claim against Consumers related to the Clean Air Act; the majority of the MCV Partnership’s claim, which estimated damages and interest in excess of $270 million, was related to this dismissed claim. Consumers believes that the MCV Partnership’s remaining claims are without merit, but cannot predict the financial impact or outcome of the matter.
Underwater Cables in Straits of Mackinac: Consumers owns certain underwater electric cables in the Straits of Mackinac, which were de‑energized and retired in 1990. Consumers was notified that some of these cables were damaged as a result of vessel activity in April 2018. Following the notification, Consumers located, inspected, sampled, capped, and returned the damaged retired cables to their original location on the lake bottom, and did not find any substantive evidence of environmental contamination. Consumers is collaborating with the State of Michigan, local Native American tribes, and other stakeholders to evaluate the status of the cables and to determine if any additional action is advisable. Consumers cannot predict the outcome of this matter, but if Consumers is required to remove all the cables, it could incur additional costs of up to $10 million. Consumers has filed suit against the companies that own the vessels that allegedly caused the damage. Consumers will seek recovery from customers of any costs incurred.
Consumers Gas Utility Contingencies
Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site.
At June 30, 2019, Consumers had a recorded liability of $68 million for its remaining obligations for these sites. This amount represents the present value of long‑term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $74 million. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2019 and in each of the next five years: 
In Millions
 
 
2019
 
2020
 
2021
 
2022
 
2023
 
2024
 
Consumers
 
 
 
 
 
 
 
 
 
 
 
 
Remediation and other response activity costs
 
$
8

 
$
16

 
$
21

 
$
7

 
$
2

 
$
2


Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability.
Pursuant to orders issued by the MPSC, Consumers defers its MGP‑related remediation costs and recovers them from its customers over a ten‑year period. At June 30, 2019, Consumers had a regulatory asset of $129 million related to the MGP sites.
Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million. At June 30, 2019, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount.
Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding.
As a result of the fire and the resulting curtailment, Consumers could be subject to various claims from impacted customers or claims for damages. Consumers may also be subject to regulatory penalties and disallowances of gas purchased, gas lost, and costs associated with the repairs to the Ray Compressor Station. At this time, Consumers cannot predict the outcome of these matters or other gas-related incidents and a reasonable estimate of any loss cannot be made, but they could have a material adverse effect on Consumers’ results of operations, financial condition, or liquidity, and could subject Consumers’ gas utility to increased regulatory scrutiny.
Consumers Electric and Gas Utility Contingencies
Electric and Gas Staking: In June 2019, the MPSC ordered Consumers to show cause as to why it should not be found in violation of the MISS DIG Act. The MPSC alleges that Consumers violated the law by failing to respond in a timely manner to over 20,000 requests to mark the location of underground facilities in April and May 2019 and only partially responding to others. The law provides the MPSC with discretion in setting fines for violations, if any; however, the fines cannot exceed $5,000 per violation. An order by the MPSC in this proceeding is not expected until mid-2020. Consumers has resolved the backlog of staking requests. Consumers cannot predict the outcome of this matter, but it could be subject to regulatory penalties that have a material adverse effect on Consumers’ results of operations, financial condition, or liquidity, and Consumers could be subject to increased regulatory scrutiny.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2019:
In Millions
 
Guarantee Description
Issue Date
Expiration Date
Maximum Obligation
 
Carrying Amount
 
CMS Energy, including Consumers
 
 
 
 
 
 
 
 
Indemnity obligations from stock and asset sale agreements1
 
various
 
indefinite
 
$
153

 
$
2

Guarantees2
 
various
 
indefinite
 
36

 

Consumers
 
 
 
 
 
 
 
 
Guarantee2
 
July 2011
 
indefinite
 
$
30

 
$

1 
These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
2 
At Consumers, this obligation comprises a guarantee provided to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers’ guarantee to the U.S. Department of Energy and CMS Energy’s 1994 guarantee of non‑recourse revenue bonds issued by Genesee.
Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. The carrying value of these indemnity obligations is $1 million. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote.
Other Contingencies
In addition to the matters disclosed in this Note and Note 2, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further,
CMS Energy and Consumers occasionally self‑report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity.
v3.19.2
Financings and Capitalization
6 Months Ended
Jun. 30, 2019
Debt Instrument [Line Items]  
Financings and Capitalization Financings and Capitalization
Financings: Presented in the following table is a summary of major long‑term debt transactions during the six months ended June 30, 2019:
 
Principal
 (In Millions)
 
Interest Rate

Issue/Retirement
Date
Maturity Date
Debt issuances
 
 
 
 
 
CMS Energy, parent only
 
 
 
 
 
Term loan facility
 
$
300

variable

January 2019
December 2019
Junior subordinated notes1

630

5.875
%
February 2019
March 2079
Term loan facility2
 
165

variable

June 2019
June 2020
Total CMS Energy, parent only
 
$
1,095

 
 
 
Consumers
 
 
 
 
 
First mortgage bonds
 
$
300

3.750
%
May 2019
February 2050
Total Consumers
 
$
300

 
 
 
Total CMS Energy
 
$
1,395

 
 
 
Debt retirements
 
 
 
 
 
CMS Energy, parent only
 
 
 
 
 
Term loan facility
 
$
300

variable

February 2019
December 2019
Term loan facility
 
180

variable

February 2019
April 2019
Total CMS Energy, parent only
 
$
480

 
 
 
Consumers
 
 
 
 
 
First mortgage bonds 
 
$
300

5.650
%
May 2019
April 2020
Total Consumers
 
$
300

 
 
 
Total CMS Energy
 
$
780

 
 
 
1 
These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.
2 
Outstanding borrowings bear interest at an annual rate of LIBOR plus 0.500 percent (2.845 percent at June 30, 2019).
Revolving Credit Facilities: The following revolving credit facilities with banks were available at June 30, 2019:
In Millions
 
Expiration Date
Amount of Facility
 
Amount Borrowed
 
Letters of Credit Outstanding
 
Amount Available
 
CMS Energy, parent only
 
 
 
 
 
 
 
 
June 5, 2023
 
$
550

 
$

 
$
2

 
$
548

CMS Enterprises, including subsidiaries
 
 
 
 
 
 
 
 
September 30, 20251
 
$
18

 
$

 
$
8

 
$
10

Consumers2
 
 
 
 
 
 
 
 
June 5, 2023
 
$
850

 
$

 
$
7

 
$
843

November 23, 2020
 
250

 

 
15

 
235

September 9, 20193
 
30

 

 
30

 


1 
Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank.
2 
Obligations under these facilities are secured by first mortgage bonds of Consumers.
3 
In July 2019, Consumers amended this revolving credit facility by extending the expiration date to April 2022.
Short‑term Borrowings: Under Consumers’ commercial paper program, Consumers may issue, in one or more placements, commercial paper notes with maturities of up to 365 days and that bear interest at fixed or floating rates. These issuances are supported by Consumers’ revolving credit facilities and may have an aggregate principal amount outstanding of up to $500 million. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At June 30, 2019, there were no commercial paper notes outstanding under this program.
Dividend Restrictions: At June 30, 2019, payment of dividends by CMS Energy on its common stock was limited to $4.9 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at June 30, 2019, Consumers had $1.3 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process.
For the six months ended June 30, 2019, Consumers paid $272 million in dividends on its common stock to CMS Energy.
Issuance of Common Stock: In 2018, CMS Energy entered into an equity offering program under which it may sell, from time to time, shares of CMS Energy common stock having an aggregate sales price of up to $250 million. Under this program, CMS Energy may sell its common stock in privately negotiated transactions, in “at the market” offerings, through forward sales transactions or otherwise. CMS Energy has entered into forward sales contracts having an aggregate sales price of $250 million. Presented in the following table are details of these contracts:
Contract Date
Maturity Date
Number of Shares

Initial Forward Price Per Share
 
November 16, 2018
May 16, 2020
2,017,783

 
$
49.06

November 20, 2018
May 20, 2020
777,899

 
50.91

February 21, 2019
August 21, 2020
2,083,340

 
52.27


These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then‑applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock.
The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments.
No amounts have or will be recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle the contracts as of June 30, 2019, CMS Energy would have been required to deliver 621,923 shares.
Consumers Energy Company  
Debt Instrument [Line Items]  
Financings and Capitalization Financings and Capitalization
Financings: Presented in the following table is a summary of major long‑term debt transactions during the six months ended June 30, 2019:
 
Principal
 (In Millions)
 
Interest Rate

Issue/Retirement
Date
Maturity Date
Debt issuances
 
 
 
 
 
CMS Energy, parent only
 
 
 
 
 
Term loan facility
 
$
300

variable

January 2019
December 2019
Junior subordinated notes1

630

5.875
%
February 2019
March 2079
Term loan facility2
 
165

variable

June 2019
June 2020
Total CMS Energy, parent only
 
$
1,095

 
 
 
Consumers
 
 
 
 
 
First mortgage bonds
 
$
300

3.750
%
May 2019
February 2050
Total Consumers
 
$
300

 
 
 
Total CMS Energy
 
$
1,395

 
 
 
Debt retirements
 
 
 
 
 
CMS Energy, parent only
 
 
 
 
 
Term loan facility
 
$
300

variable

February 2019
December 2019
Term loan facility
 
180

variable

February 2019
April 2019
Total CMS Energy, parent only
 
$
480

 
 
 
Consumers
 
 
 
 
 
First mortgage bonds 
 
$
300

5.650
%
May 2019
April 2020
Total Consumers
 
$
300

 
 
 
Total CMS Energy
 
$
780

 
 
 
1 
These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.
2 
Outstanding borrowings bear interest at an annual rate of LIBOR plus 0.500 percent (2.845 percent at June 30, 2019).
Revolving Credit Facilities: The following revolving credit facilities with banks were available at June 30, 2019:
In Millions
 
Expiration Date
Amount of Facility
 
Amount Borrowed
 
Letters of Credit Outstanding
 
Amount Available
 
CMS Energy, parent only
 
 
 
 
 
 
 
 
June 5, 2023
 
$
550

 
$

 
$
2

 
$
548

CMS Enterprises, including subsidiaries
 
 
 
 
 
 
 
 
September 30, 20251
 
$
18

 
$

 
$
8

 
$
10

Consumers2
 
 
 
 
 
 
 
 
June 5, 2023
 
$
850

 
$

 
$
7

 
$
843

November 23, 2020
 
250

 

 
15

 
235

September 9, 20193
 
30

 

 
30

 


1 
Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank.
2 
Obligations under these facilities are secured by first mortgage bonds of Consumers.
3 
In July 2019, Consumers amended this revolving credit facility by extending the expiration date to April 2022.
Short‑term Borrowings: Under Consumers’ commercial paper program, Consumers may issue, in one or more placements, commercial paper notes with maturities of up to 365 days and that bear interest at fixed or floating rates. These issuances are supported by Consumers’ revolving credit facilities and may have an aggregate principal amount outstanding of up to $500 million. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At June 30, 2019, there were no commercial paper notes outstanding under this program.
Dividend Restrictions: At June 30, 2019, payment of dividends by CMS Energy on its common stock was limited to $4.9 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at June 30, 2019, Consumers had $1.3 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process.
For the six months ended June 30, 2019, Consumers paid $272 million in dividends on its common stock to CMS Energy.
Issuance of Common Stock: In 2018, CMS Energy entered into an equity offering program under which it may sell, from time to time, shares of CMS Energy common stock having an aggregate sales price of up to $250 million. Under this program, CMS Energy may sell its common stock in privately negotiated transactions, in “at the market” offerings, through forward sales transactions or otherwise. CMS Energy has entered into forward sales contracts having an aggregate sales price of $250 million. Presented in the following table are details of these contracts:
Contract Date
Maturity Date
Number of Shares

Initial Forward Price Per Share
 
November 16, 2018
May 16, 2020
2,017,783

 
$
49.06

November 20, 2018
May 20, 2020
777,899

 
50.91

February 21, 2019
August 21, 2020
2,083,340

 
52.27


These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then‑applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock.
The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments.
No amounts have or will be recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle the contracts as of June 30, 2019, CMS Energy would have been required to deliver 621,923 shares.
v3.19.2
Fair Value Measurements
6 Months Ended
Jun. 30, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Measurements Fair Value Measurements
Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows:
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 inputs are observable, market‑based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data.
Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities.
CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
 
 
CMS Energy, including Consumers
 
Consumers
 
June 30
2019
 
December 31
2018
 
 
June 30
2019
 
December 31
2018
 
Assets1
 
 
 
 
 
 
 
 
 
Cash equivalents
 
$
18

 
$
27

 
 
$

 
$

Restricted cash equivalents
 
22

 
21

 
 
16

 
17

CMS Energy common stock
 

 

 
 
1

 
1

Nonqualified deferred compensation plan assets
 
16

 
14

 
 
12

 
10

DB SERP cash equivalents
 

 
1

 
 

 

Derivative instruments
 
2

 
1

 
 
2

 
1

Total
 
$
58

 
$
64

 
 
$
31

 
$
29

Liabilities1
 
 
 
 
 
 
 
 
 
Nonqualified deferred compensation plan liabilities
 
$
16

 
$
14

 
 
$
12

 
$
10

Derivative instruments
 
11

 
3

 
 
1

 

Total
 
$
27

 
$
17

 
 
$
13

 
$
10

1 
All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity.
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets.
DB SERP Cash Equivalents: The DB SERP cash equivalents consist of a money market fund with daily liquidity and are reported in other non‑current assets on CMS Energy and Consumers’ consolidated balance sheets.
Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3.
The derivatives classified as Level 2 are interest rate swaps at CMS Energy, which are valued using market‑based inputs. CMS Energy uses interest rate swaps to manage its interest rate risk on certain long‑term debt obligations and certain notes receivable at EnerBank.
Certain interest rate swaps are accounted for as cash flow hedges of the future variability of interest payments on debt with a notional amount of $95 million at June 30, 2019. Gains or losses on these swaps are initially reported in other comprehensive income and then, as interest payments are made on the hedged debt, are recognized in earnings within other interest expense on CMS Energy’s consolidated statements of income. CMS Energy recorded in other comprehensive income a $3 million loss for the three months ended June 30, 2019 and a $4 million loss for the six months ended June 30, 2019. There were no material impacts on other interest expense associated with these swaps for the three and six months ended June 30, 2019. The fair value of these swaps recorded in other liabilities on CMS Energy’s consolidated balance sheets totaled $6 million at June 30, 2019 and $3 million at December 31, 2018. CMS Energy also has other interest rate swaps that economically hedge interest rate risk on debt, but that do not qualify for cash flow hedge accounting; the amounts associated with these swaps were not material.
The interest rate swaps at EnerBank qualify as fair value hedges of long‑term, fixed‑rate notes receivable with a notional amount of $61 million at June 30, 2019. The fair value of these interest rate swaps recorded in other liabilities was $1 million at June 30, 2019. CMS Energy is adjusting the carrying value of the hedged notes receivable for the change in their fair value due to the hedged risk. Both gains and losses on the swaps and the changes to the carrying value of the hedged notes receivable are recorded within operating revenue on CMS Energy’s consolidated statements of income. There were no material amounts recognized in operating revenue associated with these swaps for the three months ended June 30, 2019 and six months ended June 30, 2019.
The majority of derivatives classified as Level 3 are FTRs held by Consumers. Consumers uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion‑related transmission charges. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. There was no material activity within the Level 3 categories of assets and liabilities during the periods presented.
Consumers Energy Company  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Measurements Fair Value Measurements
Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows:
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 inputs are observable, market‑based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data.
Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities.
CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
 
 
CMS Energy, including Consumers
 
Consumers
 
June 30
2019
 
December 31
2018
 
 
June 30
2019
 
December 31
2018
 
Assets1
 
 
 
 
 
 
 
 
 
Cash equivalents
 
$
18

 
$
27

 
 
$

 
$

Restricted cash equivalents
 
22

 
21

 
 
16

 
17

CMS Energy common stock
 

 

 
 
1

 
1

Nonqualified deferred compensation plan assets
 
16

 
14

 
 
12

 
10

DB SERP cash equivalents
 

 
1

 
 

 

Derivative instruments
 
2

 
1

 
 
2

 
1

Total
 
$
58

 
$
64

 
 
$
31

 
$
29

Liabilities1
 
 
 
 
 
 
 
 
 
Nonqualified deferred compensation plan liabilities
 
$
16

 
$
14

 
 
$
12

 
$
10

Derivative instruments
 
11

 
3

 
 
1

 

Total
 
$
27

 
$
17

 
 
$
13

 
$
10

1 
All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity.
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets.
DB SERP Cash Equivalents: The DB SERP cash equivalents consist of a money market fund with daily liquidity and are reported in other non‑current assets on CMS Energy and Consumers’ consolidated balance sheets.
Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3.
The derivatives classified as Level 2 are interest rate swaps at CMS Energy, which are valued using market‑based inputs. CMS Energy uses interest rate swaps to manage its interest rate risk on certain long‑term debt obligations and certain notes receivable at EnerBank.
Certain interest rate swaps are accounted for as cash flow hedges of the future variability of interest payments on debt with a notional amount of $95 million at June 30, 2019. Gains or losses on these swaps are initially reported in other comprehensive income and then, as interest payments are made on the hedged debt, are recognized in earnings within other interest expense on CMS Energy’s consolidated statements of income. CMS Energy recorded in other comprehensive income a $3 million loss for the three months ended June 30, 2019 and a $4 million loss for the six months ended June 30, 2019. There were no material impacts on other interest expense associated with these swaps for the three and six months ended June 30, 2019. The fair value of these swaps recorded in other liabilities on CMS Energy’s consolidated balance sheets totaled $6 million at June 30, 2019 and $3 million at December 31, 2018. CMS Energy also has other interest rate swaps that economically hedge interest rate risk on debt, but that do not qualify for cash flow hedge accounting; the amounts associated with these swaps were not material.
The interest rate swaps at EnerBank qualify as fair value hedges of long‑term, fixed‑rate notes receivable with a notional amount of $61 million at June 30, 2019. The fair value of these interest rate swaps recorded in other liabilities was $1 million at June 30, 2019. CMS Energy is adjusting the carrying value of the hedged notes receivable for the change in their fair value due to the hedged risk. Both gains and losses on the swaps and the changes to the carrying value of the hedged notes receivable are recorded within operating revenue on CMS Energy’s consolidated statements of income. There were no material amounts recognized in operating revenue associated with these swaps for the three months ended June 30, 2019 and six months ended June 30, 2019.
The majority of derivatives classified as Level 3 are FTRs held by Consumers. Consumers uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion‑related transmission charges. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. There was no material activity within the Level 3 categories of assets and liabilities during the periods presented.
v3.19.2
Financial Instruments
6 Months Ended
Jun. 30, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]  
Financial Instruments Financial Instruments
Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short‑term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
 
 
June 30, 2019
 
December 31, 2018
 
 
 
Fair Value
 
 
 
Fair Value
 
Carrying
 
 
 
Level
 
Carrying
 
 
 
Level
 
Amount
 
Total 
 
1
 
2
 
3
 
 
Amount
 
Total 
 
1
 
2
 
3
 
CMS Energy, including Consumers
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long‑term receivables1
 
$
20

 
$
20

 
$

 
$

 
$
20

 
 
$
22

 
$
22

 
$

 
$

 
$
22

Notes receivable2
 
2,231

 
2,359

 

 

 
2,359

 
 
1,857

 
1,967

 

 

 
1,967

Securities held to maturity
 
26

 
26

 

 
26

 

 
 
22

 
21

 

 
21

 

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt3
 
12,292

 
13,112

 
1,177

 
10,053

 
1,882

 
 
11,589

 
11,630

 
459

 
9,404

 
1,767

Long-term payables4
 
28

 
29

 

 

 
29

 
 
27

 
27

 

 

 
27

Consumers
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long‑term receivables1
 
$
20

 
$
20

 
$

 
$

 
$
20

 
 
$
22

 
$
22

 
$

 
$

 
$
22

Notes receivable – related party5
 
105

 
105

 

 

 
105

 
 
106

 
106

 

 

 
106

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long‑term debt6
 
6,572

 
7,102

 

 
5,220

 
1,882

 
 
6,805

 
6,833

 

 
5,066

 
1,767

1 
Includes current accounts receivable of $14 million at June 30, 2019 and December 31, 2018.
2 
Includes current portion of notes receivable of $249 million at June 30, 2019 and $233 million at December 31, 2018. For further details, see Note 7, Notes Receivable.
3 
Includes current portion of long‑term debt of $1.1 billion at June 30, 2019 and $1.0 billion at December 31, 2018.
4 
Includes current portion of long‑term payables of $3 million at June 30, 2019 and $1 million at December 31, 2018.
5 
Includes current portion of notes receivablerelated party of $7 million at June 30, 2019 and December 31, 2018. For further details, see Note 7, Notes Receivable.
6 
Includes current portion of long‑term debt of $26 million at June 30, 2019 and December 31, 2018.
The effects of third‑party credit enhancements were excluded from the fair value measurements of long‑term debt. The principal amount of CMS Energy’s long‑term debt supported by third‑party credit enhancements was $35 million at June 30, 2019 and December 31, 2018. The entirety of these amounts was at Consumers.
Debt securities classified as held to maturity consisted primarily of mortgage‑backed securities and Utah Housing Corporation bonds held by EnerBank. Presented in the following table are these investment securities:
In Millions
 
 
June 30, 2019
 
December 31, 2018
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
CMS Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
 
$
26

 
$

 
$

 
$
26

 
 
$
22

 
$

 
$
1

 
$
21

Consumers Energy Company  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]  
Financial Instruments Financial Instruments
Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short‑term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
 
 
June 30, 2019
 
December 31, 2018
 
 
 
Fair Value
 
 
 
Fair Value
 
Carrying
 
 
 
Level
 
Carrying
 
 
 
Level
 
Amount
 
Total 
 
1
 
2
 
3
 
 
Amount
 
Total 
 
1
 
2
 
3
 
CMS Energy, including Consumers
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long‑term receivables1
 
$
20

 
$
20

 
$

 
$

 
$
20

 
 
$
22

 
$
22

 
$

 
$

 
$
22

Notes receivable2
 
2,231

 
2,359

 

 

 
2,359

 
 
1,857

 
1,967

 

 

 
1,967

Securities held to maturity
 
26

 
26

 

 
26

 

 
 
22

 
21

 

 
21

 

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt3
 
12,292

 
13,112

 
1,177

 
10,053

 
1,882

 
 
11,589

 
11,630

 
459

 
9,404

 
1,767

Long-term payables4
 
28

 
29

 

 

 
29

 
 
27

 
27

 

 

 
27

Consumers
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long‑term receivables1
 
$
20

 
$
20

 
$

 
$

 
$
20

 
 
$
22

 
$
22

 
$

 
$

 
$
22

Notes receivable – related party5
 
105

 
105

 

 

 
105

 
 
106

 
106

 

 

 
106

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long‑term debt6
 
6,572

 
7,102

 

 
5,220

 
1,882

 
 
6,805

 
6,833

 

 
5,066

 
1,767

1 
Includes current accounts receivable of $14 million at June 30, 2019 and December 31, 2018.
2 
Includes current portion of notes receivable of $249 million at June 30, 2019 and $233 million at December 31, 2018. For further details, see Note 7, Notes Receivable.
3 
Includes current portion of long‑term debt of $1.1 billion at June 30, 2019 and $1.0 billion at December 31, 2018.
4 
Includes current portion of long‑term payables of $3 million at June 30, 2019 and $1 million at December 31, 2018.
5 
Includes current portion of notes receivablerelated party of $7 million at June 30, 2019 and December 31, 2018. For further details, see Note 7, Notes Receivable.
6 
Includes current portion of long‑term debt of $26 million at June 30, 2019 and December 31, 2018.
The effects of third‑party credit enhancements were excluded from the fair value measurements of long‑term debt. The principal amount of CMS Energy’s long‑term debt supported by third‑party credit enhancements was $35 million at June 30, 2019 and December 31, 2018. The entirety of these amounts was at Consumers.
Debt securities classified as held to maturity consisted primarily of mortgage‑backed securities and Utah Housing Corporation bonds held by EnerBank. Presented in the following table are these investment securities:
In Millions
 
 
June 30, 2019
 
December 31, 2018
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
CMS Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
 
$
26

 
$

 
$

 
$
26

 
 
$
22

 
$

 
$
1

 
$
21

v3.19.2
Notes Receivable
6 Months Ended
Jun. 30, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Notes Receivable Notes Receivable
Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable:
In Millions
 
 
June 30, 2019
 
December 31, 2018
 
CMS Energy, including Consumers
 
 
 
 
Current
 
 
 
 
EnerBank notes receivable, net of allowance for loan losses
 
$
249

 
$
233

Non‑current
 
 
 
 
EnerBank notes receivable
 
1,982

 
1,624

Total notes receivable
 
$
2,231

 
$
1,857

Consumers
 
 
 
 
Current
 
 
 
 
DB SERP note receivable – related party
 
$
7

 
$
7

Non‑current
 
 
 
 
DB SERP note receivable – related party
 
98

 
99

Total notes receivable
 
$
105

 
$
106


EnerBank Notes Receivable
EnerBank notes receivable are primarily unsecured consumer installment loans for financing home improvements. EnerBank records its notes receivable at cost, less an allowance for loan losses.
During the six months ended June 30, 2019, EnerBank purchased a portfolio of secured and unsecured consumer installment loans with a principal value of $238 million.
Authorized contractors pay fees to EnerBank to provide borrowers with same‑as‑cash, zero interest, or reduced interest loans. Unearned income associated with the loan fees, which is recorded as a reduction to notes receivable on CMS Energy’s consolidated balance sheets, was $122 million at June 30, 2019 and $102 million at December 31, 2018.
The allowance for loan losses is a valuation allowance to reflect estimated credit losses. The allowance is increased by the provision for loan losses and decreased by loan charge‑offs net of recoveries. Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due.
Loans that are 30 days or more past due are considered delinquent. The balance of EnerBank’s delinquent consumer loans was $24 million at June 30, 2019 and $21 million at December 31, 2018. At June 30, 2019 and December 31, 2018, EnerBank’s loans that had been modified as troubled debt restructurings were immaterial.
EnerBank has entered into interest rate swaps on $61 million of its loans (notes receivable). For information about interest rate swaps see Note 5, Fair Value Measurements.
DB SERP Note Receivable – Related Party
The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028.
Consumers Energy Company  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Notes Receivable Notes Receivable
Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable:
In Millions
 
 
June 30, 2019
 
December 31, 2018
 
CMS Energy, including Consumers
 
 
 
 
Current
 
 
 
 
EnerBank notes receivable, net of allowance for loan losses
 
$
249

 
$
233

Non‑current
 
 
 
 
EnerBank notes receivable
 
1,982

 
1,624

Total notes receivable
 
$
2,231

 
$
1,857

Consumers
 
 
 
 
Current
 
 
 
 
DB SERP note receivable – related party
 
$
7

 
$
7

Non‑current
 
 
 
 
DB SERP note receivable – related party
 
98

 
99

Total notes receivable
 
$
105

 
$
106


EnerBank Notes Receivable
EnerBank notes receivable are primarily unsecured consumer installment loans for financing home improvements. EnerBank records its notes receivable at cost, less an allowance for loan losses.
During the six months ended June 30, 2019, EnerBank purchased a portfolio of secured and unsecured consumer installment loans with a principal value of $238 million.
Authorized contractors pay fees to EnerBank to provide borrowers with same‑as‑cash, zero interest, or reduced interest loans. Unearned income associated with the loan fees, which is recorded as a reduction to notes receivable on CMS Energy’s consolidated balance sheets, was $122 million at June 30, 2019 and $102 million at December 31, 2018.
The allowance for loan losses is a valuation allowance to reflect estimated credit losses. The allowance is increased by the provision for loan losses and decreased by loan charge‑offs net of recoveries. Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due.
Loans that are 30 days or more past due are considered delinquent. The balance of EnerBank’s delinquent consumer loans was $24 million at June 30, 2019 and $21 million at December 31, 2018. At June 30, 2019 and December 31, 2018, EnerBank’s loans that had been modified as troubled debt restructurings were immaterial.
EnerBank has entered into interest rate swaps on $61 million of its loans (notes receivable). For information about interest rate swaps see Note 5, Fair Value Measurements.
DB SERP Note Receivable – Related Party
The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028.
v3.19.2
Leases
6 Months Ended
Jun. 30, 2019
Leases [Line Items]  
Leases Leases
Lessee
CMS Energy and Consumers lease various assets from third parties, including railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for a number of their PPAs as finance and operating leases.
CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and fleet vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term. Consumers includes future payments for all renewal options that it is reasonably certain to exercise in its measurement of lease right-of-use assets and lease liabilities. CMS Energy and Consumers include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their railcar leases.
Operating leases for coal-carrying railcars have original lease terms ranging from five to 15 years, expiring over the next four years with options to renew. These leases contain fair market value extension and buyout provisions.
Operating leases for real estate have original lease terms ranging from three to 60 years, expiring over the next 42 years. These leases contain fair market value extension and buyout provisions.
Finance leases for Consumers’ service vehicles have original lease terms ranging from five to ten years, expiring over the next seven years. Some have end-of-lease rental adjustment clauses based on proceeds received from the sale or disposition of the vehicles, and others have fair market value purchase options.
Consumers has finance leases for gas transportation pipelines to the D.E. Karn generating complex and Zeeland. The finance lease for the gas transportation pipeline into the D.E. Karn generating complex has a term of 15 years with a provision to extend the contract from month to month. The remaining term of the contract was three years at June 30, 2019. The finance lease for the gas transportation pipeline to Zeeland was extended in 2017 for five years pursuant to a renewal provision in the contract, with additional renewal provisions of five to ten years.
The remaining terms of Consumers’ long-term PPAs accounted for as finance and operating leases range between one and 14 years. Most of these PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a lease.
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
 
June 30, 2019
CMS Energy, including Consumers
 
 
Consumers
 
Operating leases
 
 
 
 
 
Right-of-use assets1
 
$
51

 
 
$
44

Lease liabilities
 
 
 
 
 
Current lease liabilities2
 
10

 
 
8

Non-current lease liabilities3
 
41

 
 
35

Finance leases
 
 
 
 
 
Right-of-use assets
 
$
76

 
 
$
76

Lease liabilities4
 
 
 
 
 
Current lease liabilities
 
7

 
 
7

Non-current lease liabilities
 
63

 
 
63

Weighted-average remaining lease term (in years)
 
 
 
 
 
Operating leases
 
16

 
 
13

Finance leases
 
12

 
 
12

Weighted-average discount rate
 
 
 
 
 
Operating leases
 
3.7
%
 
 
3.7
%
Finance leases5
 
2.0
%
 
 
2.0
%
1 
CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non‑current assets on their consolidated balance sheets.
2 
The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.
3 
The non‑current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non‑current liabilities on their consolidated balance sheets.
4 
This includes $25 million for leases with related parties, of which less than $1 million is current.
5 
This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.
CMS Energy and Consumers report operating, variable, and short-term lease costs as operating expenses on their consolidated statements of income, except for certain amounts that may be capitalized to other assets. Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
 
 
CMS Energy, including Consumers
 
Consumers
June 30, 2019
Three Months Ended
 
 
Six Months Ended
 
 
Three Months Ended
 
 
Six Months Ended
 
Operating lease costs
 
$
3

 
 
$
6

 
 
$
3

 
 
$
5

Finance lease costs
 
 
 
 
 
 
 
 
 
 
 
Amortization of right-of-use assets
 
2

 
 
4

 
 
2

 
 
4

Interest on lease liabilities
 
5

 
 
9

 
 
5

 
 
9

Variable lease costs
 
24

 
 
55

 
 
24

 
 
55

Total lease costs
 
$
34

 
 
$
74

 
 
$
34

 
 
$
73


Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities:
In Millions
 
Six Months Ended June 30, 2019
CMS Energy, including Consumers
 
 
Consumers
 
Cash paid for amounts included in the measurement of lease liabilities
 
 
 
 
 
Cash used in operating activities for operating leases
 
$
5

 
 
$
5

Cash used in operating activities for finance leases
 
9

 
 
9

Cash used in financing activities for finance leases
 
3

 
 
3


Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases:
In Millions
 
 
 
 
Finance Leases
June 30, 2019
Operating Leases
 
 
Pipelines and PPAs
 
Other
 
Total
 
CMS Energy, including Consumers
 
 
 
 
 
 
 
 
 
Remainder of 2019
 
$
5

 
 
$
9

 
$
5

 
$
14

2020
 
11

 
 
17

 
6

 
23

2021
 
11

 
 
17

 
5

 
22

2022
 
5

 
 
14

 
5

 
19

2023
 
3

 
 
13

 
5

 
18

2024
 
2

 
 
13

 
3

 
16

2025 and thereafter
 
35

 
 
79

 
11

 
90

Total minimum lease payments
 
$
72

 
 
$
162

 
$
40

 
$
202

Less discount
 
21

 
 
128

 
4

 
132

Present value of minimum lease payments
 
$
51

 
 
$
34

 
$
36

 
$
70

Consumers
 
 
 
 
 
 
 
 
 
Remainder of 2019
 
$
5

 
 
$
9

 
$
5

 
$
14

2020
 
9

 
 
17

 
6

 
23

2021
 
9

 
 
17

 
5

 
22

2022
 
4

 
 
14

 
5

 
19

2023
 
3

 
 
13

 
5

 
18

2024
 
2

 
 
13

 
3

 
16

2025 and thereafter
 
28

 
 
79

 
11

 
90

Total minimum lease payments
 
$
60

 
 
$
162

 
$
40

 
$
202

Less discount
 
17

 
 
128

 
4

 
132

Present value of minimum lease payments
 
$
43

 
 
$
34

 
$
36

 
$
70


Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases at December 31, 2018, prior to the adoption of ASU 2016‑02:
In Millions
 
December 31, 2018
Capital Leases
 
Operating Leases
 
CMS Energy, including Consumers
 
 
 
 
2019
 
$
14

 
$
16

2020
 
11

 
15

2021
 
11

 
15

2022
 
8

 
8

2023
 
6

 
5

2024 and thereafter
 
21

 
38

Total minimum lease payments
 
$
71

 
$
97

Less discount
 
22

 
 
Present value of minimum lease payments
 
$
49

 
 
Less current portion
 
9

 
 
Non-current portion
 
$
40

 
 
Consumers
 
 
 
 
2019
 
$
14

 
$
14

2020
 
11

 
14

2021
 
11

 
13

2022
 
8

 
7

2023
 
6

 
5

2024
 
21

 
32

Total minimum lease payments
 
$
71

 
$
85

Less discount
 
22

 
 
Present value of minimum lease payments
 
$
49

 
 
Less current portion
 
9

 
 
Non-current portion
 
$
40

 
 

Lessor
CMS Energy and Consumers are the lessor under power sales and natural gas delivery agreements that are accounted for as leases.
CMS Energy has power sales agreements that are accounted for as operating leases. These agreements have remaining terms ranging from three to 24 years. In addition to fixed payments, these agreements have variable payments based on energy delivered. For the three months ended June 30, 2019, CMS Energy’s lease revenue from its power sales agreements was $42 million, which included variable lease payments of $29 million. For the six months ended June 30, 2019, CMS Energy’s lease revenue from its power sales agreements was $90 million, which included variable lease payments of $63 million.
Consumers has an agreement to build, own, operate, and maintain a compressed natural gas fueling station for a term of 20 years, which began in December 2018. This agreement is accounted for as a direct finance lease, under which the lessee has the option to purchase the natural gas fueling station at the end of the lease term. Fixed monthly payments escalate annually with inflation.
In December 2018, Consumers and a subsidiary of CMS Energy executed a 20‑year natural gas transportation agreement, related to a pipeline owned by Consumers, which will automatically extend annually unless terminated by either party. This agreement is accounted for by Consumers as a direct finance lease. The effects of the lease are eliminated on CMS Energy’s consolidated financial statements.
Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases:
In Millions
 
June 30, 2019
Remainder of 2019
 
$
28

2020
 
54

2021
 
54

2022
 
48

2023
 
44

2024
 
44

2025 and thereafter
 
62

Total minimum lease payments
 
$
334


Presented in the following table are the minimum rental payments to be received under CMS Energy’s and Consumers’ non‑cancelable direct financing leases:
In Millions
 
June 30, 2019
CMS Energy, including Consumers
 
 
Consumers
 
Remainder of 2019
 
$

 
 
$
1

2020
 

 
 
1

2021
 

 
 
1

2022
 

 
 
1

2023
 

 
 
1

2024
 

 
 
1

2025 and thereafter
 
10

 
 
19

Total minimum lease payments
 
$
10

 
 
$
25

Less unearned income
 
5

 
 
15

Present value of lease payments recognized as lease receivables
 
$
5

 
 
$
10


Consumers Energy Company  
Leases [Line Items]  
Leases Leases
Lessee
CMS Energy and Consumers lease various assets from third parties, including railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for a number of their PPAs as finance and operating leases.
CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and fleet vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term. Consumers includes future payments for all renewal options that it is reasonably certain to exercise in its measurement of lease right-of-use assets and lease liabilities. CMS Energy and Consumers include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their railcar leases.
Operating leases for coal-carrying railcars have original lease terms ranging from five to 15 years, expiring over the next four years with options to renew. These leases contain fair market value extension and buyout provisions.
Operating leases for real estate have original lease terms ranging from three to 60 years, expiring over the next 42 years. These leases contain fair market value extension and buyout provisions.
Finance leases for Consumers’ service vehicles have original lease terms ranging from five to ten years, expiring over the next seven years. Some have end-of-lease rental adjustment clauses based on proceeds received from the sale or disposition of the vehicles, and others have fair market value purchase options.
Consumers has finance leases for gas transportation pipelines to the D.E. Karn generating complex and Zeeland. The finance lease for the gas transportation pipeline into the D.E. Karn generating complex has a term of 15 years with a provision to extend the contract from month to month. The remaining term of the contract was three years at June 30, 2019. The finance lease for the gas transportation pipeline to Zeeland was extended in 2017 for five years pursuant to a renewal provision in the contract, with additional renewal provisions of five to ten years.
The remaining terms of Consumers’ long-term PPAs accounted for as finance and operating leases range between one and 14 years. Most of these PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a lease.
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
 
June 30, 2019
CMS Energy, including Consumers
 
 
Consumers
 
Operating leases
 
 
 
 
 
Right-of-use assets1
 
$
51

 
 
$
44

Lease liabilities
 
 
 
 
 
Current lease liabilities2
 
10

 
 
8

Non-current lease liabilities3
 
41

 
 
35

Finance leases
 
 
 
 
 
Right-of-use assets
 
$
76

 
 
$
76

Lease liabilities4
 
 
 
 
 
Current lease liabilities
 
7

 
 
7

Non-current lease liabilities
 
63

 
 
63

Weighted-average remaining lease term (in years)
 
 
 
 
 
Operating leases
 
16

 
 
13

Finance leases
 
12

 
 
12

Weighted-average discount rate
 
 
 
 
 
Operating leases
 
3.7
%
 
 
3.7
%
Finance leases5
 
2.0
%
 
 
2.0
%
1 
CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non‑current assets on their consolidated balance sheets.
2 
The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.
3 
The non‑current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non‑current liabilities on their consolidated balance sheets.
4 
This includes $25 million for leases with related parties, of which less than $1 million is current.
5 
This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.
CMS Energy and Consumers report operating, variable, and short-term lease costs as operating expenses on their consolidated statements of income, except for certain amounts that may be capitalized to other assets. Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
 
 
CMS Energy, including Consumers
 
Consumers
June 30, 2019
Three Months Ended
 
 
Six Months Ended
 
 
Three Months Ended
 
 
Six Months Ended
 
Operating lease costs
 
$
3

 
 
$
6

 
 
$
3

 
 
$
5

Finance lease costs
 
 
 
 
 
 
 
 
 
 
 
Amortization of right-of-use assets
 
2

 
 
4

 
 
2

 
 
4

Interest on lease liabilities
 
5

 
 
9

 
 
5

 
 
9

Variable lease costs
 
24

 
 
55

 
 
24

 
 
55

Total lease costs
 
$
34

 
 
$
74

 
 
$
34

 
 
$
73


Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities:
In Millions
 
Six Months Ended June 30, 2019
CMS Energy, including Consumers
 
 
Consumers
 
Cash paid for amounts included in the measurement of lease liabilities
 
 
 
 
 
Cash used in operating activities for operating leases
 
$
5

 
 
$
5

Cash used in operating activities for finance leases
 
9

 
 
9

Cash used in financing activities for finance leases
 
3

 
 
3


Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases:
In Millions
 
 
 
 
Finance Leases
June 30, 2019
Operating Leases
 
 
Pipelines and PPAs
 
Other
 
Total
 
CMS Energy, including Consumers
 
 
 
 
 
 
 
 
 
Remainder of 2019
 
$
5

 
 
$
9

 
$
5

 
$
14

2020
 
11

 
 
17

 
6

 
23

2021
 
11

 
 
17

 
5

 
22

2022
 
5

 
 
14

 
5

 
19

2023
 
3

 
 
13

 
5

 
18

2024
 
2

 
 
13

 
3

 
16

2025 and thereafter
 
35

 
 
79

 
11

 
90

Total minimum lease payments
 
$
72

 
 
$
162

 
$
40

 
$
202

Less discount
 
21

 
 
128

 
4

 
132

Present value of minimum lease payments
 
$
51

 
 
$
34

 
$
36

 
$
70

Consumers
 
 
 
 
 
 
 
 
 
Remainder of 2019
 
$
5

 
 
$
9

 
$
5

 
$
14

2020
 
9

 
 
17

 
6

 
23

2021
 
9

 
 
17

 
5

 
22

2022
 
4

 
 
14

 
5

 
19

2023
 
3

 
 
13

 
5

 
18

2024
 
2

 
 
13

 
3

 
16

2025 and thereafter
 
28

 
 
79

 
11

 
90

Total minimum lease payments
 
$
60

 
 
$
162

 
$
40

 
$
202

Less discount
 
17

 
 
128

 
4

 
132

Present value of minimum lease payments
 
$
43

 
 
$
34

 
$
36

 
$
70


Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases at December 31, 2018, prior to the adoption of ASU 2016‑02:
In Millions
 
December 31, 2018
Capital Leases
 
Operating Leases
 
CMS Energy, including Consumers
 
 
 
 
2019
 
$
14

 
$
16

2020
 
11

 
15

2021
 
11

 
15

2022
 
8

 
8

2023
 
6

 
5

2024 and thereafter
 
21

 
38

Total minimum lease payments
 
$
71

 
$
97

Less discount
 
22

 
 
Present value of minimum lease payments
 
$
49

 
 
Less current portion
 
9

 
 
Non-current portion
 
$
40

 
 
Consumers
 
 
 
 
2019
 
$
14

 
$
14

2020
 
11

 
14

2021
 
11

 
13

2022
 
8

 
7

2023
 
6

 
5

2024
 
21

 
32

Total minimum lease payments
 
$
71

 
$
85

Less discount
 
22

 
 
Present value of minimum lease payments
 
$
49

 
 
Less current portion
 
9

 
 
Non-current portion
 
$
40

 
 

Lessor
CMS Energy and Consumers are the lessor under power sales and natural gas delivery agreements that are accounted for as leases.
CMS Energy has power sales agreements that are accounted for as operating leases. These agreements have remaining terms ranging from three to 24 years. In addition to fixed payments, these agreements have variable payments based on energy delivered. For the three months ended June 30, 2019, CMS Energy’s lease revenue from its power sales agreements was $42 million, which included variable lease payments of $29 million. For the six months ended June 30, 2019, CMS Energy’s lease revenue from its power sales agreements was $90 million, which included variable lease payments of $63 million.
Consumers has an agreement to build, own, operate, and maintain a compressed natural gas fueling station for a term of 20 years, which began in December 2018. This agreement is accounted for as a direct finance lease, under which the lessee has the option to purchase the natural gas fueling station at the end of the lease term. Fixed monthly payments escalate annually with inflation.
In December 2018, Consumers and a subsidiary of CMS Energy executed a 20‑year natural gas transportation agreement, related to a pipeline owned by Consumers, which will automatically extend annually unless terminated by either party. This agreement is accounted for by Consumers as a direct finance lease. The effects of the lease are eliminated on CMS Energy’s consolidated financial statements.
Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases:
In Millions
 
June 30, 2019
Remainder of 2019
 
$
28

2020
 
54

2021
 
54

2022
 
48

2023
 
44

2024
 
44

2025 and thereafter
 
62

Total minimum lease payments
 
$
334


Presented in the following table are the minimum rental payments to be received under CMS Energy’s and Consumers’ non‑cancelable direct financing leases:
In Millions
 
June 30, 2019
CMS Energy, including Consumers
 
 
Consumers
 
Remainder of 2019
 
$

 
 
$
1

2020
 

 
 
1

2021
 

 
 
1

2022
 

 
 
1

2023
 

 
 
1

2024
 

 
 
1

2025 and thereafter
 
10

 
 
19

Total minimum lease payments
 
$
10

 
 
$
25

Less unearned income
 
5

 
 
15

Present value of lease payments recognized as lease receivables
 
$
5

 
 
$
10


v3.19.2
Retirement Benefits
6 Months Ended
Jun. 30, 2019
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement Benefits
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.
Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans:
In Millions
 
 
DB Pension Plans
 
OPEB Plan
 
Three Months Ended
 
Six Months Ended
 
Three Months Ended
 
Six Months Ended
June 30
2019
 
2018
 
 
2019
 
2018
 
 
2019
 
2018
 
 
2019
 
2018
 
CMS Energy, including Consumers
Net periodic cost (credit)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
10

 
$
12

 
 
$
20

 
$
24

 
 
$
3

 
$
5

 
 
$
7

 
$
9

Interest cost
 
24

 
23

 
 
49

 
45

 
 
10

 
9

 
 
20

 
18

Expected return on plan assets
 
(41
)
 
(37
)
 
 
(81
)
 
(74
)
 
 
(22
)
 
(25
)
 
 
(44
)
 
(49
)
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
 
12

 
19

 
 
24

 
37

 
 
6

 
4

 
 
13

 
8

Prior service cost (credit)
 
1

 

 
 
1

 
1

 
 
(15
)
 
(17
)
 
 
(31
)
 
(34
)
Net periodic cost (credit)
 
$
6

 
$
17

 
 
$
13

 
$
33

 
 
$
(18
)
 
$
(24
)
 
 
$
(35
)
 
$
(48
)
Consumers
Net periodic cost (credit)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
10

 
$
11

 
 
$
20

 
$
23

 
 
$
4

 
$
4

 
 
$
7

 
$
8

Interest cost
 
23

 
21

 
 
46

 
42

 
 
10

 
9

 
 
20

 
17

Expected return on plan assets
 
(38
)
 
(34
)
 
 
(76
)
 
(69
)
 
 
(20
)
 
(23
)
 
 
(41
)
 
(46
)
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
 
11

 
18

 
 
23

 
36

 
 
6

 
4

 
 
13

 
8

Prior service cost (credit)
 
1

 

 
 
1

 
1

 
 
(16
)
 
(16
)
 
 
(31
)
 
(32
)
Net periodic cost (credit)
 
$
7

 
$
16

 
 
$
14

 
$
33

 
 
$
(16
)
 
$
(22
)
 
 
$
(32
)
 
$
(45
)

Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement Benefits
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.
Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans:
In Millions
 
 
DB Pension Plans
 
OPEB Plan
 
Three Months Ended
 
Six Months Ended
 
Three Months Ended
 
Six Months Ended
June 30
2019
 
2018
 
 
2019
 
2018
 
 
2019
 
2018
 
 
2019
 
2018
 
CMS Energy, including Consumers
Net periodic cost (credit)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
10

 
$
12

 
 
$
20

 
$
24

 
 
$
3

 
$
5

 
 
$
7

 
$
9

Interest cost
 
24

 
23

 
 
49

 
45

 
 
10

 
9

 
 
20

 
18

Expected return on plan assets
 
(41
)
 
(37
)
 
 
(81
)
 
(74
)
 
 
(22
)
 
(25
)
 
 
(44
)
 
(49
)
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
 
12

 
19

 
 
24

 
37

 
 
6

 
4

 
 
13

 
8

Prior service cost (credit)
 
1

 

 
 
1

 
1

 
 
(15
)
 
(17
)
 
 
(31
)
 
(34
)
Net periodic cost (credit)
 
$
6

 
$
17

 
 
$
13

 
$
33

 
 
$
(18
)
 
$
(24
)
 
 
$
(35
)
 
$
(48
)
Consumers
Net periodic cost (credit)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
10

 
$
11

 
 
$
20

 
$
23

 
 
$
4

 
$
4

 
 
$
7

 
$
8

Interest cost
 
23

 
21

 
 
46

 
42

 
 
10

 
9

 
 
20

 
17

Expected return on plan assets
 
(38
)
 
(34
)
 
 
(76
)
 
(69
)
 
 
(20
)
 
(23
)
 
 
(41
)
 
(46
)
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
 
11

 
18

 
 
23

 
36

 
 
6

 
4

 
 
13

 
8

Prior service cost (credit)
 
1

 

 
 
1

 
1

 
 
(16
)
 
(16
)
 
 
(31
)
 
(32
)
Net periodic cost (credit)
 
$
7

 
$
16

 
 
$
14

 
$
33

 
 
$
(16
)
 
$
(22
)
 
 
$
(32
)
 
$
(45
)

v3.19.2
Income Taxes
6 Months Ended
Jun. 30, 2019
Income Taxes [Line Items]  
Income Taxes Income Taxes
Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:
Six Months Ended June 30
 
2019

 
2018

CMS Energy, including Consumers
 
 
 
 
U.S. federal income tax rate
 
21.0
 %
 
21.0
 %
Increase (decrease) in income taxes from:
 
 
 
 
State and local income taxes, net of federal effect
 
5.4

 
5.6

TCJA excess deferred taxes1
 
(3.5
)
 
(3.4
)
Production tax credits
 
(2.5
)
 
(1.7
)
Accelerated flow-through of regulatory tax benefits2
 
(1.5
)
 
(5.0
)
Research and development tax credits, net3
 
(0.2
)
 
(2.2
)
Other, net
 
(0.6
)
 
0.3

Effective tax rate
 
18.1
 %
 
14.6
 %
Consumers
 
 
 
 
U.S. federal income tax rate
 
21.0
 %
 
21.0
 %
Increase (decrease) in income taxes from:
 
 
 
 
State and local income taxes, net of federal effect
 
5.7

 
5.8

TCJA excess deferred taxes1
 
(3.2
)
 
(3.2
)
Accelerated flow-through of regulatory tax benefits2
 
(1.8
)
 
(4.7
)
Production tax credits
 
(1.3
)
 
(1.5
)
Research and development tax credits, net3
 
(0.2
)
 
(2.1
)
Other, net
 
(0.4
)
 

Effective tax rate
 
19.8
 %
 
15.3
 %
1 
In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a $1.8 billion regulatory liability. This regulatory liability relates to the excess deferred taxes arising from accelerated tax depreciation on assets in rate base that are governed by normalization provisions of the Internal Revenue Code. The normalization provisions require that the excess deferred taxes be refunded to customers over the remaining average service life of the associated assets. In January 2018, Consumers began to reduce this regulatory liability by crediting income tax expense. Consumers has fully reserved for the eventual refund of these excess deferred taxes that it has credited to income tax expense in a separate non‑current regulatory liability established by reducing revenue, and will continue to do so until these benefits are passed on to customers in accordance with an MPSC order, expected to be issued in 2019. At June 30, 2019, this reserve for refund of these excess deferred taxes totaled $53 million.
2 
In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow‑through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018. This change, which also accelerates Consumers’ recognition of the income tax benefits, reduced Consumers’ income tax expense by $7 million for the six months ended June 30, 2019 and by $22 million for the six months ended June 30, 2018.
3 
In March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions, at that time.
Consumers Energy Company  
Income Taxes [Line Items]  
Income Taxes Income Taxes
Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:
Six Months Ended June 30
 
2019

 
2018

CMS Energy, including Consumers
 
 
 
 
U.S. federal income tax rate
 
21.0
 %
 
21.0
 %
Increase (decrease) in income taxes from:
 
 
 
 
State and local income taxes, net of federal effect
 
5.4

 
5.6

TCJA excess deferred taxes1
 
(3.5
)
 
(3.4
)
Production tax credits
 
(2.5
)
 
(1.7
)
Accelerated flow-through of regulatory tax benefits2
 
(1.5
)
 
(5.0
)
Research and development tax credits, net3
 
(0.2
)
 
(2.2
)
Other, net
 
(0.6
)
 
0.3

Effective tax rate
 
18.1
 %
 
14.6
 %
Consumers
 
 
 
 
U.S. federal income tax rate
 
21.0
 %
 
21.0
 %
Increase (decrease) in income taxes from:
 
 
 
 
State and local income taxes, net of federal effect
 
5.7

 
5.8

TCJA excess deferred taxes1
 
(3.2
)
 
(3.2
)
Accelerated flow-through of regulatory tax benefits2
 
(1.8
)
 
(4.7
)
Production tax credits
 
(1.3
)
 
(1.5
)
Research and development tax credits, net3
 
(0.2
)
 
(2.1
)
Other, net
 
(0.4
)
 

Effective tax rate
 
19.8
 %
 
15.3
 %
1 
In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a $1.8 billion regulatory liability. This regulatory liability relates to the excess deferred taxes arising from accelerated tax depreciation on assets in rate base that are governed by normalization provisions of the Internal Revenue Code. The normalization provisions require that the excess deferred taxes be refunded to customers over the remaining average service life of the associated assets. In January 2018, Consumers began to reduce this regulatory liability by crediting income tax expense. Consumers has fully reserved for the eventual refund of these excess deferred taxes that it has credited to income tax expense in a separate non‑current regulatory liability established by reducing revenue, and will continue to do so until these benefits are passed on to customers in accordance with an MPSC order, expected to be issued in 2019. At June 30, 2019, this reserve for refund of these excess deferred taxes totaled $53 million.
2 
In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow‑through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018. This change, which also accelerates Consumers’ recognition of the income tax benefits, reduced Consumers’ income tax expense by $7 million for the six months ended June 30, 2019 and by $22 million for the six months ended June 30, 2018.
3 
In March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions, at that time.
v3.19.2
Earnings Per Share - CMS Energy
6 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Earnings Per Share - CMS Energy Earnings Per Share—CMS Energy
Presented in the following table are CMS Energy’s basic and diluted EPS computations based on net income:
In Millions, Except Per Share Amounts
 
 
Three Months Ended
 
Six Months Ended
June 30
2019
 
2018
 
 
2019
 
2018
 
Income available to common stockholders
 
 
 
 
 
 
 
 
 
Net income
 
$
94

 
$
140

 
 
$
307

 
$
381

Less income attributable to noncontrolling interests
 
1

 
1

 
 
1

 
1

Net income available to common stockholders – basic and diluted
 
$
93

 
$
139

 
 
$
306

 
$
380

Average common shares outstanding
 
 
 
 
 
 
 
 
 
Weighted-average shares – basic
 
282.9

 
282.1

 
 
282.9

 
281.8

Add dilutive nonvested stock awards
 
0.6

 
0.5

 
 
0.6

 
0.6

Add dilutive forward equity sale contracts
 
0.5

 

 
 
0.3

 

Weighted-average shares – diluted
 
284.0

 
282.6

 
 
283.8

 
282.4

Net income per average common share available to common stockholders
 
 
 
 
 
 
 
 
 
Basic
 
$
0.33

 
$
0.49

 
 
$
1.08

 
$
1.35

Diluted
 
0.33

 
0.49

 
 
1.08

 
1.35


Nonvested Stock Awards
CMS Energy’s nonvested stock awards are composed of participating and non‑participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the nonvested stock awards are considered participating securities. As such, the participating nonvested stock awards were included in the computation of basic EPS. The non‑participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non‑participating securities are also forfeited. Accordingly, the non‑participating awards and stock dividends were included in the computation of diluted EPS, but not in the computation of basic EPS.
Forward Equity Sale Contracts
In November 2018 and February 2019, CMS Energy entered into forward equity sale contracts. These forward equity sale contracts are non‑participating securities. While the forward sale price in the forward equity sale contract is decreased on certain dates by certain predetermined amounts to reflect expected dividend payments, these price adjustments were set upon inception of the agreement and the forward contract does not give the owner the right to participate in undistributed earnings. Accordingly, the forward equity sale contracts were included in the computation of diluted EPS, but not in the computation of basic EPS. For further details on the forward equity sale contracts, see Note 4, Financings and Capitalization.
v3.19.2
Revenue
6 Months Ended
Jun. 30, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Revenue Revenue
Presented in the following tables are the components of operating revenue:
In Millions
 
Three Months Ended June 30, 2019
Electric Utility
 
Gas Utility
 
Enterprises1
 
Other Reconciling2
 
Consolidated
 
CMS Energy, including Consumers
Consumers utility revenue
 
$
1,026

 
$
305

 
$

 
$

 
$
1,331

Other
 

 

 
16

 

 
16

Revenue recognized from contracts with customers
 
$
1,026

 
$
305

 
$
16

 
$

 
$
1,347

Leasing income
 

 

 
42

 

 
42

Financing income
 
1

 
2

 

 
53

 
56

Total operating revenue – CMS Energy
 
$
1,027

 
$
307

 
$
58

 
$
53

 
$
1,445

Consumers
Consumers utility revenue
 
 
 
 
 
 
 
 
 
 
Residential
 
$
423

 
$
198

 
$

 
$

 
$
621

Commercial
 
362

 
58

 

 

 
420

Industrial
 
174

 
8

 

 

 
182

Other
 
67

 
41

 

 

 
108

Revenue recognized from contracts with customers
 
$
1,026

 
$
305

 
$

 
$

 
$
1,331

Financing income
 
1

 
2

 

 

 
3

Total operating revenue – Consumers
 
$
1,027

 
$
307

 
$

 
$

 
$
1,334

In Millions
 
Three Months Ended June 30, 2018
Electric Utility
 
Gas Utility
 
Enterprises1
 
Other Reconciling2
 
Consolidated
 
CMS Energy, including Consumers
Consumers utility revenue
 
$
1,087

 
$
302

 
$

 
$

 
$
1,389

Other
 

 

 
24

 

 
24

Revenue recognized from contracts with customers
 
$
1,087

 
$
302

 
$
24

 
$

 
$
1,413

Leasing income
 

 

 
37

 

 
37

Financing income
 
2

 
2

 

 
36

 
40

Consumers alternative revenue programs
 

 
2

 

 

 
2

Total operating revenue – CMS Energy
 
$
1,089

 
$
306

 
$
61

 
$
36

 
$
1,492

Consumers
Consumers utility revenue
 
 
 
 
 
 
 
 
 
 
Residential
 
$
475

 
$
194

 
$

 
$

 
$
669

Commercial
 
386

 
58

 

 

 
444

Industrial
 
170

 
9

 

 

 
179

Other
 
56

 
41

 

 

 
97

Revenue recognized from contracts with customers
 
$
1,087

 
$
302

 
$

 
$

 
$
1,389

Financing income
 
2

 
2

 

 

 
4

Alternative revenue programs
 

 
2

 

 

 
2

Total operating revenue – Consumers
 
$
1,089

 
$
306

 
$

 
$

 
$
1,395

In Millions
 
Six Months Ended June 30, 2019
Electric Utility
 
Gas Utility
 
Enterprises1
 
Other Reconciling2
 
Consolidated
 
CMS Energy, including Consumers
Consumers utility revenue
 
$
2,126

 
$
1,143

 
$

 
$

 
$
3,269

Other
 

 

 
35

 

 
35

Revenue recognized from contracts with customers
 
$
2,126

 
$
1,143

 
$
35

 
$

 
$
3,304

Leasing income
 

 

 
90

 

 
90

Financing income
 
4

 
4

 

 
102

 
110

Total operating revenue – CMS Energy
 
$
2,130

 
$
1,147

 
$
125

 
$
102

 
$
3,504

Consumers
Consumers utility revenue
 
 
 
 
 
 
 
 
 
 
Residential
 
$
946

 
$
787

 
$

 
$

 
$
1,733

Commercial
 
713

 
232

 

 

 
945

Industrial
 
336

 
33

 

 

 
369

Other
 
131

 
91

 

 

 
222

Revenue recognized from contracts with customers
 
$
2,126

 
$
1,143

 
$

 
$

 
$
3,269

Financing income
 
4

 
4

 

 

 
8

Total operating revenue – Consumers
 
$
2,130

 
$
1,147

 
$

 
$

 
$
3,277

In Millions
 
Six Months Ended June 30, 2018
Electric Utility
 
Gas Utility
 
Enterprises1
 
Other Reconciling2
 
Consolidated
 
CMS Energy, including Consumers
Consumers utility revenue
 
$
2,163

 
$
1,075

 
$

 
$

 
$
3,238

Other
 

 

 
48

 

 
48

Revenue recognized from contracts with customers
 
$
2,163

 
$
1,075

 
$
48

 
$

 
$
3,286

Leasing income
 

 

 
76

 

 
76

Financing income
 
4

 
4

 

 
71

 
79

Consumers alternative revenue programs
 

 
4

 

 

 
4

Total operating revenue – CMS Energy
 
$
2,167

 
$
1,083

 
$
124

 
$
71

 
$
3,445

Consumers
Consumers utility revenue
 
 
 
 
 
 
 
 
 
 
Residential
 
$
976

 
$
731

 
$

 
$

 
$
1,707

Commercial
 
747

 
220

 

 

 
967

Industrial
 
313

 
33

 

 

 
346

Other
 
127

 
91

 

 

 
218

Revenue recognized from contracts with customers
 
$
2,163

 
$
1,075

 
$

 
$

 
$
3,238

Financing income
 
4

 
4

 

 

 
8

Alternative revenue programs
 

 
4

 

 

 
4

Total operating revenue – Consumers
 
$
2,167

 
$
1,083

 
$

 
$

 
$
3,250

1 
Amounts represent the enterprises segment’s operating revenue from independent power production and CMS ERM’s sales of energy commodities in support of the independent power production portfolio.
2 
Amount represents EnerBank’s operating revenue from providing primarily unsecured consumer installment loans for financing home improvements.
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff‑based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff‑based sales performance obligations are described below.
Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate‑making process and represent the stand‑alone selling price of Consumers’ service to stand ready to deliver.
Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the
MPSC through the rate‑making process and represent the stand‑alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed‑term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost, which approximates fair value. CMS Energy and Consumers establish an allowance for uncollectible accounts based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and other factors. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past‑due terms established with customers. CMS Energy and Consumers charge off accounts deemed uncollectible to operating expense. Uncollectible expense for CMS Energy and Consumers was $6 million for the three months ended June 30, 2019 and $7 million for the three months ended June 30, 2018. Uncollectible expense for CMS Energy and Consumers was $12 million for the six months ended June 30, 2019 and $14 million for the six months ended June 30, 2018.
Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month‑end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable on CMS Energy’s and Consumers’ consolidated balance sheets, were $257 million at June 30, 2019 and $409 million at December 31, 2018.
Alternative‑Revenue Programs: Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather‑normalized, non‑fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative‑revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Consumers Energy Company  
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Revenue Revenue
Presented in the following tables are the components of operating revenue:
In Millions
 
Three Months Ended June 30, 2019
Electric Utility
 
Gas Utility
 
Enterprises1
 
Other Reconciling2
 
Consolidated
 
CMS Energy, including Consumers
Consumers utility revenue
 
$
1,026

 
$
305

 
$

 
$

 
$
1,331

Other
 

 

 
16

 

 
16

Revenue recognized from contracts with customers
 
$
1,026

 
$
305

 
$
16

 
$

 
$
1,347

Leasing income
 

 

 
42

 

 
42

Financing income
 
1

 
2

 

 
53

 
56

Total operating revenue – CMS Energy
 
$
1,027

 
$
307

 
$
58

 
$
53

 
$
1,445

Consumers
Consumers utility revenue
 
 
 
 
 
 
 
 
 
 
Residential
 
$
423

 
$
198

 
$

 
$

 
$
621

Commercial
 
362

 
58

 

 

 
420

Industrial
 
174

 
8

 

 

 
182

Other
 
67

 
41

 

 

 
108

Revenue recognized from contracts with customers
 
$
1,026

 
$
305

 
$

 
$

 
$
1,331

Financing income
 
1

 
2

 

 

 
3

Total operating revenue – Consumers
 
$
1,027

 
$
307

 
$

 
$

 
$
1,334

In Millions
 
Three Months Ended June 30, 2018
Electric Utility
 
Gas Utility
 
Enterprises1
 
Other Reconciling2
 
Consolidated
 
CMS Energy, including Consumers
Consumers utility revenue
 
$
1,087

 
$
302

 
$

 
$

 
$
1,389

Other
 

 

 
24

 

 
24

Revenue recognized from contracts with customers
 
$
1,087

 
$
302

 
$
24

 
$

 
$
1,413

Leasing income
 

 

 
37

 

 
37

Financing income
 
2

 
2

 

 
36

 
40

Consumers alternative revenue programs
 

 
2

 

 

 
2

Total operating revenue – CMS Energy
 
$
1,089

 
$
306

 
$
61

 
$
36

 
$
1,492

Consumers
Consumers utility revenue
 
 
 
 
 
 
 
 
 
 
Residential
 
$
475

 
$
194

 
$

 
$

 
$
669

Commercial
 
386

 
58

 

 

 
444

Industrial
 
170

 
9

 

 

 
179

Other
 
56

 
41

 

 

 
97

Revenue recognized from contracts with customers
 
$
1,087

 
$
302

 
$

 
$

 
$
1,389

Financing income
 
2

 
2

 

 

 
4

Alternative revenue programs
 

 
2

 

 

 
2

Total operating revenue – Consumers
 
$
1,089

 
$
306

 
$

 
$

 
$
1,395

In Millions
 
Six Months Ended June 30, 2019
Electric Utility
 
Gas Utility
 
Enterprises1
 
Other Reconciling2
 
Consolidated
 
CMS Energy, including Consumers
Consumers utility revenue
 
$
2,126

 
$
1,143

 
$

 
$

 
$
3,269

Other
 

 

 
35

 

 
35

Revenue recognized from contracts with customers
 
$
2,126

 
$
1,143

 
$
35

 
$

 
$
3,304

Leasing income
 

 

 
90

 

 
90

Financing income
 
4

 
4

 

 
102

 
110

Total operating revenue – CMS Energy
 
$
2,130

 
$
1,147

 
$
125

 
$
102

 
$
3,504

Consumers
Consumers utility revenue
 
 
 
 
 
 
 
 
 
 
Residential
 
$
946

 
$
787

 
$

 
$

 
$
1,733

Commercial
 
713

 
232

 

 

 
945

Industrial
 
336

 
33

 

 

 
369

Other
 
131

 
91

 

 

 
222

Revenue recognized from contracts with customers
 
$
2,126

 
$
1,143

 
$

 
$

 
$
3,269

Financing income
 
4

 
4

 

 

 
8

Total operating revenue – Consumers
 
$
2,130

 
$
1,147

 
$

 
$

 
$
3,277

In Millions
 
Six Months Ended June 30, 2018
Electric Utility
 
Gas Utility
 
Enterprises1
 
Other Reconciling2
 
Consolidated
 
CMS Energy, including Consumers
Consumers utility revenue
 
$
2,163

 
$
1,075

 
$

 
$

 
$
3,238

Other
 

 

 
48

 

 
48

Revenue recognized from contracts with customers
 
$
2,163

 
$
1,075

 
$
48

 
$

 
$
3,286

Leasing income
 

 

 
76

 

 
76

Financing income
 
4

 
4

 

 
71

 
79

Consumers alternative revenue programs
 

 
4

 

 

 
4

Total operating revenue – CMS Energy
 
$
2,167

 
$
1,083

 
$
124

 
$
71

 
$
3,445

Consumers
Consumers utility revenue
 
 
 
 
 
 
 
 
 
 
Residential
 
$
976

 
$
731

 
$

 
$

 
$
1,707

Commercial
 
747

 
220

 

 

 
967

Industrial
 
313

 
33

 

 

 
346

Other
 
127

 
91

 

 

 
218

Revenue recognized from contracts with customers
 
$
2,163

 
$
1,075

 
$

 
$

 
$
3,238

Financing income
 
4

 
4

 

 

 
8

Alternative revenue programs
 

 
4

 

 

 
4

Total operating revenue – Consumers
 
$
2,167

 
$
1,083

 
$

 
$

 
$
3,250

1 
Amounts represent the enterprises segment’s operating revenue from independent power production and CMS ERM’s sales of energy commodities in support of the independent power production portfolio.
2 
Amount represents EnerBank’s operating revenue from providing primarily unsecured consumer installment loans for financing home improvements.
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff‑based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff‑based sales performance obligations are described below.
Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate‑making process and represent the stand‑alone selling price of Consumers’ service to stand ready to deliver.
Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the
MPSC through the rate‑making process and represent the stand‑alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed‑term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost, which approximates fair value. CMS Energy and Consumers establish an allowance for uncollectible accounts based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and other factors. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past‑due terms established with customers. CMS Energy and Consumers charge off accounts deemed uncollectible to operating expense. Uncollectible expense for CMS Energy and Consumers was $6 million for the three months ended June 30, 2019 and $7 million for the three months ended June 30, 2018. Uncollectible expense for CMS Energy and Consumers was $12 million for the six months ended June 30, 2019 and $14 million for the six months ended June 30, 2018.
Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month‑end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable on CMS Energy’s and Consumers’ consolidated balance sheets, were $257 million at June 30, 2019 and $409 million at December 31, 2018.
Alternative‑Revenue Programs: Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather‑normalized, non‑fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative‑revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
v3.19.2
Cash And Cash Equivalents
6 Months Ended
Jun. 30, 2019
Cash and Cash Equivalents [Line Items]  
Cash And Cash Equivalents Cash and Cash Equivalents
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets: 
In Millions
 
 
June 30, 2019
 
December 31, 2018
 
CMS Energy, including Consumers
 
 
 
 
Cash and cash equivalents
 
$
312

 
$
153

Restricted cash and cash equivalents
 
22

 
21

Other non-current assets
 

 
1

Cash and cash equivalents, including restricted amounts
 
$
334

 
$
175

Consumers
 
 
 
 
Cash and cash equivalents
 
$
196

 
$
39

Restricted cash and cash equivalents
 
16

 
17

Cash and cash equivalents, including restricted amounts
 
$
212

 
$
56


Cash and Cash Equivalents: Cash and cash equivalents include short‑term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Other Non‑current Assets: The cash equivalents classified as other non‑current assets represent an investment in a money market fund held in the DB SERP rabbi trust. See Note 5, Fair Value Measurements for more information regarding the DB SERP.
Consumers Energy Company  
Cash and Cash Equivalents [Line Items]  
Cash And Cash Equivalents Cash and Cash Equivalents
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets: 
In Millions
 
 
June 30, 2019
 
December 31, 2018
 
CMS Energy, including Consumers
 
 
 
 
Cash and cash equivalents
 
$
312

 
$
153

Restricted cash and cash equivalents
 
22

 
21

Other non-current assets
 

 
1

Cash and cash equivalents, including restricted amounts
 
$
334

 
$
175

Consumers
 
 
 
 
Cash and cash equivalents
 
$
196

 
$
39

Restricted cash and cash equivalents
 
16

 
17

Cash and cash equivalents, including restricted amounts
 
$
212

 
$
56


Cash and Cash Equivalents: Cash and cash equivalents include short‑term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Other Non‑current Assets: The cash equivalents classified as other non‑current assets represent an investment in a money market fund held in the DB SERP rabbi trust. See Note 5, Fair Value Measurements for more information regarding the DB SERP.
v3.19.2
Reportable Segments
6 Months Ended
Jun. 30, 2019
Segment Reporting Information [Line Items]  
Reportable Segments Reportable Segments
Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders.
CMS Energy
The reportable segments for CMS Energy are:
electric utility, consisting of regulated activities associated with the generation, purchase, transmission, distribution, and sale of electricity in Michigan
gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production
CMS Energy presents EnerBank, corporate interest and other expenses, and Consumers’ other consolidated entities within other reconciling items.
Consumers
The reportable segments for Consumers are:
electric utility, consisting of regulated activities associated with the generation, purchase, transmission, distribution, and sale of electricity in Michigan
gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
Consumers’ other consolidated entities are presented within other reconciling items.
Presented in the following tables is financial information by reportable segment: 
In Millions
 
 
Three Months Ended
 
Six Months Ended
June 30
2019
 
2018
 
 
2019
 
2018
 
CMS Energy, including Consumers
 
 
 
 
 
 
 
 
 
Operating revenue
 
 
 
 
 
 
 
 
 
Electric utility
 
$
1,027

 
$
1,089

 
 
$
2,130

 
$
2,167

Gas utility
 
307

 
306

 
 
1,147

 
1,083

Enterprises
 
58

 
61

 
 
125

 
124

Other reconciling items
 
53

 
36

 
 
102

 
71

Total operating revenue – CMS Energy
 
$
1,445

 
$
1,492

 
 
$
3,504

 
$
3,445

Consumers
 
 
 
 
 
 
 
 
 
Operating revenue
 
 
 
 
 
 
 
 
 
Electric utility
 
$
1,027

 
$
1,089

 
 
$
2,130

 
$
2,167

Gas utility
 
307

 
306

 
 
1,147

 
1,083

Total operating revenue – Consumers
 
$
1,334

 
$
1,395

 
 
$
3,277

 
$
3,250

CMS Energy, including Consumers
 
 
 
 
 
 
 
 
 
Net income (loss) available to common stockholders
 


 


 
 
 
 
 
Electric utility
 
$
90

 
$
130

 
 
$
195

 
$
269

Gas utility
 
8

 
21

 
 
129

 
124

Enterprises
 
10

 
14

 
 
11

 
29

Other reconciling items
 
(15
)
 
(26
)
 
 
(29
)
 
(42
)
Total net income available to common stockholders – CMS Energy
 
$
93

 
$
139

 
 
$
306

 
$
380

Consumers
 
 
 
 
 
 
 
 
 
Net income (loss) available to common stockholder
 


 


 
 
 
 
 
Electric utility
 
$
90

 
$
130

 
 
$
195

 
$
269

Gas utility
 
8

 
21

 
 
129

 
124

Other reconciling items
 
(1
)
 

 
 
(1
)
 

Total net income available to common stockholder – Consumers
 
$
97

 
$
151

 
 
$
323

 
$
393

In Millions
 
 
June 30, 2019
 
December 31, 2018
 
CMS Energy, including Consumers
 
 
 
 
Plant, property, and equipment, gross
 
 
 
 
Electric utility1, 2
 
$
15,660

 
$
16,027

Gas utility1
 
8,154

 
7,919

Enterprises
 
405

 
412

Other reconciling items
 
44

 
42

Total plant, property, and equipment, gross – CMS Energy
 
$
24,263

 
$
24,400

Consumers
 
 
 
 
Plant, property, and equipment, gross
 
 
 
 
Electric utility1, 2
 
$
15,660

 
$
16,027

Gas utility1
 
8,154

 
7,919

Other reconciling items
 
19

 
17

Total plant, property, and equipment, gross – Consumers
 
$
23,833

 
$
23,963

CMS Energy, including Consumers
 
 
 
 
Total assets
 
 
 
 
Electric utility1
 
$
14,396

 
$
14,079

Gas utility1
 
7,890

 
7,806

Enterprises
 
522

 
540

Other reconciling items
 
2,484

 
2,104

Total assets – CMS Energy
 
$
25,292

 
$
24,529

Consumers
 
 
 
 
Total assets
 
 
 
 
Electric utility1
 
$
14,459

 
$
14,143

Gas utility1
 
7,937

 
7,853

Other reconciling items
 
20

 
29

Total assets – Consumers
 
$
22,416

 
$
22,025

1 
Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
2 
Costs related to coal-fueled electric generating units to be retired in 2023 were removed and recorded as a regulatory asset in June 2019. For additional details, see Note 2, Regulatory Matters.
Consumers Energy Company  
Segment Reporting Information [Line Items]  
Reportable Segments Reportable Segments
Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders.
CMS Energy
The reportable segments for CMS Energy are:
electric utility, consisting of regulated activities associated with the generation, purchase, transmission, distribution, and sale of electricity in Michigan
gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production
CMS Energy presents EnerBank, corporate interest and other expenses, and Consumers’ other consolidated entities within other reconciling items.
Consumers
The reportable segments for Consumers are:
electric utility, consisting of regulated activities associated with the generation, purchase, transmission, distribution, and sale of electricity in Michigan
gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
Consumers’ other consolidated entities are presented within other reconciling items.
Presented in the following tables is financial information by reportable segment: 
In Millions
 
 
Three Months Ended
 
Six Months Ended
June 30
2019
 
2018
 
 
2019
 
2018
 
CMS Energy, including Consumers
 
 
 
 
 
 
 
 
 
Operating revenue
 
 
 
 
 
 
 
 
 
Electric utility
 
$
1,027

 
$
1,089

 
 
$
2,130

 
$
2,167

Gas utility
 
307

 
306

 
 
1,147

 
1,083

Enterprises
 
58

 
61

 
 
125

 
124

Other reconciling items
 
53

 
36

 
 
102

 
71

Total operating revenue – CMS Energy
 
$
1,445

 
$
1,492

 
 
$
3,504

 
$
3,445

Consumers
 
 
 
 
 
 
 
 
 
Operating revenue
 
 
 
 
 
 
 
 
 
Electric utility
 
$
1,027

 
$
1,089

 
 
$
2,130

 
$
2,167

Gas utility
 
307

 
306

 
 
1,147

 
1,083

Total operating revenue – Consumers
 
$
1,334

 
$
1,395

 
 
$
3,277

 
$
3,250

CMS Energy, including Consumers
 
 
 
 
 
 
 
 
 
Net income (loss) available to common stockholders
 


 


 
 
 
 
 
Electric utility
 
$
90

 
$
130

 
 
$
195

 
$
269

Gas utility
 
8

 
21

 
 
129

 
124

Enterprises
 
10

 
14

 
 
11

 
29

Other reconciling items
 
(15
)
 
(26
)
 
 
(29
)
 
(42
)
Total net income available to common stockholders – CMS Energy
 
$
93

 
$
139

 
 
$
306

 
$
380

Consumers
 
 
 
 
 
 
 
 
 
Net income (loss) available to common stockholder
 


 


 
 
 
 
 
Electric utility
 
$
90

 
$
130

 
 
$
195

 
$
269

Gas utility
 
8

 
21

 
 
129

 
124

Other reconciling items
 
(1
)
 

 
 
(1
)
 

Total net income available to common stockholder – Consumers
 
$
97

 
$
151

 
 
$
323

 
$
393

In Millions
 
 
June 30, 2019
 
December 31, 2018
 
CMS Energy, including Consumers
 
 
 
 
Plant, property, and equipment, gross
 
 
 
 
Electric utility1, 2
 
$
15,660

 
$
16,027

Gas utility1
 
8,154

 
7,919

Enterprises
 
405

 
412

Other reconciling items
 
44

 
42

Total plant, property, and equipment, gross – CMS Energy
 
$
24,263

 
$
24,400

Consumers
 
 
 
 
Plant, property, and equipment, gross
 
 
 
 
Electric utility1, 2
 
$
15,660

 
$
16,027

Gas utility1
 
8,154

 
7,919

Other reconciling items
 
19

 
17

Total plant, property, and equipment, gross – Consumers
 
$
23,833

 
$
23,963

CMS Energy, including Consumers
 
 
 
 
Total assets
 
 
 
 
Electric utility1
 
$
14,396

 
$
14,079

Gas utility1
 
7,890

 
7,806

Enterprises
 
522

 
540

Other reconciling items
 
2,484

 
2,104

Total assets – CMS Energy
 
$
25,292

 
$
24,529

Consumers
 
 
 
 
Total assets
 
 
 
 
Electric utility1
 
$
14,459

 
$
14,143

Gas utility1
 
7,937

 
7,853

Other reconciling items
 
20

 
29

Total assets – Consumers
 
$
22,416

 
$
22,025

1 
Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
2 
Costs related to coal-fueled electric generating units to be retired in 2023 were removed and recorded as a regulatory asset in June 2019. For additional details, see Note 2, Regulatory Matters.
v3.19.2
Asset Sales
6 Months Ended
Jun. 30, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Asset Sales Asset Sales
Enterprises
In April 2019, DIG completed a sale of transmission equipment to ITC and recognized a pre-tax gain of $16 million within maintenance and other operating expenses on CMS Energy’s consolidated statements of income.
Consumers
During the first quarter of 2019, management committed to a plan to sell a portion of Consumers’ electric utility’s substation transmission assets. Consumers expects to sell these assets to METC in 2019, at a price above their book value.
Presented in the following table are the major classes of assets classified as held for sale on Consumers’ consolidated balance sheets at June 30, 2019:
In Millions
 
Plant, property, and equipment, net
 
$
32

Construction work in progress
 
8

Total assets
 
$
40


Consumers Energy Company  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Asset Sales Asset Sales
Enterprises
In April 2019, DIG completed a sale of transmission equipment to ITC and recognized a pre-tax gain of $16 million within maintenance and other operating expenses on CMS Energy’s consolidated statements of income.
Consumers
During the first quarter of 2019, management committed to a plan to sell a portion of Consumers’ electric utility’s substation transmission assets. Consumers expects to sell these assets to METC in 2019, at a price above their book value.
Presented in the following table are the major classes of assets classified as held for sale on Consumers’ consolidated balance sheets at June 30, 2019:
In Millions
 
Plant, property, and equipment, net
 
$
32

Construction work in progress
 
8

Total assets
 
$
40


v3.19.2
New Accounting Standards (Policies)
6 Months Ended
Jun. 30, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
New accounting standards
Implementation of New Accounting Standards
ASU 2016‑02, Leases: This standard, which was effective on January 1, 2019 for CMS Energy and Consumers, establishes a new accounting model for leases. The standard requires lessees to recognize lease assets and liabilities on the balance sheet for all leases with a term of more than one year, including operating leases, which were not recorded on the balance sheet under previous standards. The new guidance also amends the definition of a lease to require that a lessee have the right to control the use of a specified asset, and not simply control or take the output of the asset. On the statement of income, operating leases are generally accounted for under a straight-line expense model, while finance leases, which were previously referred to as capital leases, are generally accounted for under a financing model. Consistent with the previous lease guidance, however, the standard allows rate-regulated utilities to recognize expense consistent with the timing of recovery in rates.
CMS Energy and Consumers elected to use certain practical expedients permitted by the standard, under which they were not required to perform lease assessments or reassessments for agreements existing on the effective date. They also elected a transition method under which they initially applied the standard on January 1, 2019, without adjusting amounts presented for prior periods. Under the standard, CMS Energy and Consumers recognized additional lease assets and liabilities on their consolidated balance sheets as of January 1, 2019 for their operating leases. In addition, in accordance with the standard, they have provided additional disclosures about their leases in Note 8, Leases. The standard did not have any impact on CMS Energy’s and Consumers’ consolidated net income or cash flows, and there was no cumulative-effect adjustment recorded to beginning retained earnings.
New Accounting Standards Not Yet Effective
ASU 2016‑13, Measurement of Credit Losses on Financial Instruments: This standard, which will be effective January 1, 2020 for CMS Energy and Consumers, provides new guidance for estimating and
recording credit losses on financial instruments. The standard will apply to the recognition of loan losses at EnerBank as well as to the recognition of uncollectible accounts expense at Consumers. Entities will apply the standard using a modified retrospective approach, with a cumulative‑effect adjustment recorded to beginning retained earnings on the effective date. CMS Energy and Consumers are evaluating the impact of the standard on their consolidated financial statements.
Allowance for loan losses
The allowance for loan losses is a valuation allowance to reflect estimated credit losses. The allowance is increased by the provision for loan losses and decreased by loan charge‑offs net of recoveries. Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due.
Consumers Energy Company  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
New accounting standards
Implementation of New Accounting Standards
ASU 2016‑02, Leases: This standard, which was effective on January 1, 2019 for CMS Energy and Consumers, establishes a new accounting model for leases. The standard requires lessees to recognize lease assets and liabilities on the balance sheet for all leases with a term of more than one year, including operating leases, which were not recorded on the balance sheet under previous standards. The new guidance also amends the definition of a lease to require that a lessee have the right to control the use of a specified asset, and not simply control or take the output of the asset. On the statement of income, operating leases are generally accounted for under a straight-line expense model, while finance leases, which were previously referred to as capital leases, are generally accounted for under a financing model. Consistent with the previous lease guidance, however, the standard allows rate-regulated utilities to recognize expense consistent with the timing of recovery in rates.
CMS Energy and Consumers elected to use certain practical expedients permitted by the standard, under which they were not required to perform lease assessments or reassessments for agreements existing on the effective date. They also elected a transition method under which they initially applied the standard on January 1, 2019, without adjusting amounts presented for prior periods. Under the standard, CMS Energy and Consumers recognized additional lease assets and liabilities on their consolidated balance sheets as of January 1, 2019 for their operating leases. In addition, in accordance with the standard, they have provided additional disclosures about their leases in Note 8, Leases. The standard did not have any impact on CMS Energy’s and Consumers’ consolidated net income or cash flows, and there was no cumulative-effect adjustment recorded to beginning retained earnings.
New Accounting Standards Not Yet Effective
ASU 2016‑13, Measurement of Credit Losses on Financial Instruments: This standard, which will be effective January 1, 2020 for CMS Energy and Consumers, provides new guidance for estimating and
recording credit losses on financial instruments. The standard will apply to the recognition of loan losses at EnerBank as well as to the recognition of uncollectible accounts expense at Consumers. Entities will apply the standard using a modified retrospective approach, with a cumulative‑effect adjustment recorded to beginning retained earnings on the effective date. CMS Energy and Consumers are evaluating the impact of the standard on their consolidated financial statements.
v3.19.2
Contingencies And Commitments (Tables)
6 Months Ended
Jun. 30, 2019
Site Contingency [Line Items]  
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2019:
In Millions
 
Guarantee Description
Issue Date
Expiration Date
Maximum Obligation
 
Carrying Amount
 
CMS Energy, including Consumers
 
 
 
 
 
 
 
 
Indemnity obligations from stock and asset sale agreements1
 
various
 
indefinite
 
$
153

 
$
2

Guarantees2
 
various
 
indefinite
 
36

 

Consumers
 
 
 
 
 
 
 
 
Guarantee2
 
July 2011
 
indefinite
 
$
30

 
$

1 
These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
2 
At Consumers, this obligation comprises a guarantee provided to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers’ guarantee to the U.S. Department of Energy and CMS Energy’s 1994 guarantee of non‑recourse revenue bonds issued by Genesee.
Consumers Energy Company  
Site Contingency [Line Items]  
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2019:
In Millions
 
Guarantee Description
Issue Date
Expiration Date
Maximum Obligation
 
Carrying Amount
 
CMS Energy, including Consumers
 
 
 
 
 
 
 
 
Indemnity obligations from stock and asset sale agreements1
 
various
 
indefinite
 
$
153

 
$
2

Guarantees2
 
various
 
indefinite
 
36

 

Consumers
 
 
 
 
 
 
 
 
Guarantee2
 
July 2011
 
indefinite
 
$
30

 
$

1 
These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
2 
At Consumers, this obligation comprises a guarantee provided to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers’ guarantee to the U.S. Department of Energy and CMS Energy’s 1994 guarantee of non‑recourse revenue bonds issued by Genesee.
Bay Harbor  
Site Contingency [Line Items]  
Expected Remediation Costs By Year CMS Energy expects to pay the following amounts for long‑term liquid disposal and operating and maintenance costs during the remainder of 2019 and in each of the next five years:
In Millions
 
 
2019
 
2020
 
2021
 
2022
 
2023
 
2024
 
CMS Energy
 
 
 
 
 
 
 
 
 
 
 
 
Long‑term liquid disposal and operating and maintenance costs
 
$
2

 
$
4

 
$
4

 
$
4

 
$
4

 
$
4


Gas Utility | Manufactured Gas Plant | Consumers Energy Company  
Site Contingency [Line Items]  
Expected Remediation Costs By Year Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2019 and in each of the next five years: 
In Millions
 
 
2019
 
2020
 
2021
 
2022
 
2023
 
2024
 
Consumers
 
 
 
 
 
 
 
 
 
 
 
 
Remediation and other response activity costs
 
$
8

 
$
16

 
$
21

 
$
7

 
$
2

 
$
2


v3.19.2
Financings and Capitalization (Tables)
6 Months Ended
Jun. 30, 2019
Debt Instrument [Line Items]  
Major Long-Term Debt Transactions
Financings: Presented in the following table is a summary of major long‑term debt transactions during the six months ended June 30, 2019:
 
Principal
 (In Millions)
 
Interest Rate

Issue/Retirement
Date
Maturity Date
Debt issuances
 
 
 
 
 
CMS Energy, parent only
 
 
 
 
 
Term loan facility
 
$
300

variable

January 2019
December 2019
Junior subordinated notes1

630

5.875
%
February 2019
March 2079
Term loan facility2
 
165

variable

June 2019
June 2020
Total CMS Energy, parent only
 
$
1,095

 
 
 
Consumers
 
 
 
 
 
First mortgage bonds
 
$
300

3.750
%
May 2019
February 2050
Total Consumers
 
$
300

 
 
 
Total CMS Energy
 
$
1,395

 
 
 
Debt retirements
 
 
 
 
 
CMS Energy, parent only
 
 
 
 
 
Term loan facility
 
$
300

variable

February 2019
December 2019
Term loan facility
 
180

variable

February 2019
April 2019
Total CMS Energy, parent only
 
$
480

 
 
 
Consumers
 
 
 
 
 
First mortgage bonds 
 
$
300

5.650
%
May 2019
April 2020
Total Consumers
 
$
300

 
 
 
Total CMS Energy
 
$
780

 
 
 
1 
These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.
2 
Outstanding borrowings bear interest at an annual rate of LIBOR plus 0.500 percent (2.845 percent at June 30, 2019).
Revolving Credit Facilities
Revolving Credit Facilities: The following revolving credit facilities with banks were available at June 30, 2019:
In Millions
 
Expiration Date
Amount of Facility
 
Amount Borrowed
 
Letters of Credit Outstanding
 
Amount Available
 
CMS Energy, parent only
 
 
 
 
 
 
 
 
June 5, 2023
 
$
550

 
$

 
$
2

 
$
548

CMS Enterprises, including subsidiaries
 
 
 
 
 
 
 
 
September 30, 20251
 
$
18

 
$

 
$
8

 
$
10

Consumers2
 
 
 
 
 
 
 
 
June 5, 2023
 
$
850

 
$

 
$
7

 
$
843

November 23, 2020
 
250

 

 
15

 
235

September 9, 20193
 
30

 

 
30

 


1 
Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank.
2 
Obligations under these facilities are secured by first mortgage bonds of Consumers.
3 
In July 2019, Consumers amended this revolving credit facility by extending the expiration date to April 2022.
Schedule of Forward Contracts Indexed to Issuer's Equity Presented in the following table are details of these contracts:
Contract Date
Maturity Date
Number of Shares

Initial Forward Price Per Share
 
November 16, 2018
May 16, 2020
2,017,783

 
$
49.06

November 20, 2018
May 20, 2020
777,899

 
50.91

February 21, 2019
August 21, 2020
2,083,340

 
52.27


Consumers Energy Company  
Debt Instrument [Line Items]  
Major Long-Term Debt Transactions
Financings: Presented in the following table is a summary of major long‑term debt transactions during the six months ended June 30, 2019:
 
Principal
 (In Millions)
 
Interest Rate

Issue/Retirement
Date
Maturity Date
Debt issuances
 
 
 
 
 
CMS Energy, parent only
 
 
 
 
 
Term loan facility
 
$
300

variable

January 2019
December 2019
Junior subordinated notes1

630

5.875
%
February 2019
March 2079
Term loan facility2
 
165

variable

June 2019
June 2020
Total CMS Energy, parent only
 
$
1,095

 
 
 
Consumers
 
 
 
 
 
First mortgage bonds
 
$
300

3.750
%
May 2019
February 2050
Total Consumers
 
$
300

 
 
 
Total CMS Energy
 
$
1,395

 
 
 
Debt retirements
 
 
 
 
 
CMS Energy, parent only
 
 
 
 
 
Term loan facility
 
$
300

variable

February 2019
December 2019
Term loan facility
 
180

variable

February 2019
April 2019
Total CMS Energy, parent only
 
$
480

 
 
 
Consumers
 
 
 
 
 
First mortgage bonds 
 
$
300

5.650
%
May 2019
April 2020
Total Consumers
 
$
300

 
 
 
Total CMS Energy
 
$
780

 
 
 
1 
These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.
2 
Outstanding borrowings bear interest at an annual rate of LIBOR plus 0.500 percent (2.845 percent at June 30, 2019).
Revolving Credit Facilities
Revolving Credit Facilities: The following revolving credit facilities with banks were available at June 30, 2019:
In Millions
 
Expiration Date
Amount of Facility
 
Amount Borrowed
 
Letters of Credit Outstanding
 
Amount Available
 
CMS Energy, parent only
 
 
 
 
 
 
 
 
June 5, 2023
 
$
550

 
$

 
$
2

 
$
548

CMS Enterprises, including subsidiaries
 
 
 
 
 
 
 
 
September 30, 20251
 
$
18

 
$

 
$
8

 
$
10

Consumers2
 
 
 
 
 
 
 
 
June 5, 2023
 
$
850

 
$

 
$
7

 
$
843

November 23, 2020
 
250

 

 
15

 
235

September 9, 20193
 
30

 

 
30

 


1 
Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank.
2 
Obligations under these facilities are secured by first mortgage bonds of Consumers.
3 
In July 2019, Consumers amended this revolving credit facility by extending the expiration date to April 2022.
v3.19.2
Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Assets And Liabilities Measured At Fair Value On A Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
 
 
CMS Energy, including Consumers
 
Consumers
 
June 30
2019
 
December 31
2018
 
 
June 30
2019
 
December 31
2018
 
Assets1
 
 
 
 
 
 
 
 
 
Cash equivalents
 
$
18

 
$
27

 
 
$

 
$

Restricted cash equivalents
 
22

 
21

 
 
16

 
17

CMS Energy common stock
 

 

 
 
1

 
1

Nonqualified deferred compensation plan assets
 
16

 
14

 
 
12

 
10

DB SERP cash equivalents
 

 
1

 
 

 

Derivative instruments
 
2

 
1

 
 
2

 
1

Total
 
$
58

 
$
64

 
 
$
31

 
$
29

Liabilities1
 
 
 
 
 
 
 
 
 
Nonqualified deferred compensation plan liabilities
 
$
16

 
$
14

 
 
$
12

 
$
10

Derivative instruments
 
11

 
3

 
 
1

 

Total
 
$
27

 
$
17

 
 
$
13

 
$
10

1 
All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Consumers Energy Company  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Assets And Liabilities Measured At Fair Value On A Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
 
 
CMS Energy, including Consumers
 
Consumers
 
June 30
2019
 
December 31
2018
 
 
June 30
2019
 
December 31
2018
 
Assets1
 
 
 
 
 
 
 
 
 
Cash equivalents
 
$
18

 
$
27

 
 
$

 
$

Restricted cash equivalents
 
22

 
21

 
 
16

 
17

CMS Energy common stock
 

 

 
 
1

 
1

Nonqualified deferred compensation plan assets
 
16

 
14

 
 
12

 
10

DB SERP cash equivalents
 

 
1

 
 

 

Derivative instruments
 
2

 
1

 
 
2

 
1

Total
 
$
58

 
$
64

 
 
$
31

 
$
29

Liabilities1
 
 
 
 
 
 
 
 
 
Nonqualified deferred compensation plan liabilities
 
$
16

 
$
14

 
 
$
12

 
$
10

Derivative instruments
 
11

 
3

 
 
1

 

Total
 
$
27

 
$
17

 
 
$
13

 
$
10

1 
All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
v3.19.2
Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]  
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments
Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short‑term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
 
 
June 30, 2019
 
December 31, 2018
 
 
 
Fair Value
 
 
 
Fair Value
 
Carrying
 
 
 
Level
 
Carrying
 
 
 
Level
 
Amount
 
Total 
 
1
 
2
 
3
 
 
Amount
 
Total 
 
1
 
2
 
3
 
CMS Energy, including Consumers
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long‑term receivables1
 
$
20

 
$
20

 
$

 
$

 
$
20

 
 
$
22

 
$
22

 
$

 
$

 
$
22

Notes receivable2
 
2,231

 
2,359

 

 

 
2,359

 
 
1,857

 
1,967

 

 

 
1,967

Securities held to maturity
 
26

 
26

 

 
26

 

 
 
22

 
21

 

 
21

 

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt3
 
12,292

 
13,112

 
1,177

 
10,053

 
1,882

 
 
11,589

 
11,630

 
459

 
9,404

 
1,767

Long-term payables4
 
28

 
29

 

 

 
29

 
 
27

 
27

 

 

 
27

Consumers
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long‑term receivables1
 
$
20

 
$
20

 
$

 
$

 
$
20

 
 
$
22

 
$
22

 
$

 
$

 
$
22

Notes receivable – related party5
 
105

 
105

 

 

 
105

 
 
106

 
106

 

 

 
106

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long‑term debt6
 
6,572

 
7,102

 

 
5,220

 
1,882

 
 
6,805

 
6,833

 

 
5,066

 
1,767

1 
Includes current accounts receivable of $14 million at June 30, 2019 and December 31, 2018.
2 
Includes current portion of notes receivable of $249 million at June 30, 2019 and $233 million at December 31, 2018. For further details, see Note 7, Notes Receivable.
3 
Includes current portion of long‑term debt of $1.1 billion at June 30, 2019 and $1.0 billion at December 31, 2018.
4 
Includes current portion of long‑term payables of $3 million at June 30, 2019 and $1 million at December 31, 2018.
5 
Includes current portion of notes receivablerelated party of $7 million at June 30, 2019 and December 31, 2018. For further details, see Note 7, Notes Receivable.
6 
Includes current portion of long‑term debt of $26 million at June 30, 2019 and December 31, 2018.
Schedule Of Investment Securities Presented in the following table are these investment securities:
In Millions
 
 
June 30, 2019
 
December 31, 2018
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
 
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
CMS Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
 
$
26

 
$

 
$

 
$
26

 
 
$
22

 
$

 
$
1

 
$
21

 
Consumers Energy Company  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]  
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments
Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short‑term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
 
 
June 30, 2019
 
December 31, 2018
 
 
 
Fair Value
 
 
 
Fair Value
 
Carrying
 
 
 
Level
 
Carrying
 
 
 
Level
 
Amount
 
Total 
 
1
 
2
 
3
 
 
Amount
 
Total 
 
1
 
2
 
3
 
CMS Energy, including Consumers
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long‑term receivables1
 
$
20

 
$
20

 
$

 
$

 
$
20

 
 
$
22

 
$
22

 
$

 
$

 
$
22

Notes receivable2
 
2,231

 
2,359

 

 

 
2,359

 
 
1,857

 
1,967

 

 

 
1,967

Securities held to maturity
 
26

 
26

 

 
26

 

 
 
22

 
21

 

 
21

 

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt3
 
12,292

 
13,112

 
1,177

 
10,053

 
1,882

 
 
11,589

 
11,630

 
459

 
9,404

 
1,767

Long-term payables4
 
28

 
29

 

 

 
29

 
 
27

 
27

 

 

 
27

Consumers
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long‑term receivables1
 
$
20

 
$
20

 
$

 
$

 
$
20

 
 
$
22

 
$
22

 
$

 
$

 
$
22

Notes receivable – related party5
 
105

 
105

 

 

 
105

 
 
106

 
106

 

 

 
106

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long‑term debt6
 
6,572

 
7,102

 

 
5,220

 
1,882

 
 
6,805

 
6,833

 

 
5,066

 
1,767

1 
Includes current accounts receivable of $14 million at June 30, 2019 and December 31, 2018.
2 
Includes current portion of notes receivable of $249 million at June 30, 2019 and $233 million at December 31, 2018. For further details, see Note 7, Notes Receivable.
3 
Includes current portion of long‑term debt of $1.1 billion at June 30, 2019 and $1.0 billion at December 31, 2018.
4 
Includes current portion of long‑term payables of $3 million at June 30, 2019 and $1 million at December 31, 2018.
5 
Includes current portion of notes receivablerelated party of $7 million at June 30, 2019 and December 31, 2018. For further details, see Note 7, Notes Receivable.
6 
Includes current portion of long‑term debt of $26 million at June 30, 2019 and December 31, 2018.
v3.19.2
Notes Receivable (Tables)
6 Months Ended
Jun. 30, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Schedule Of Current And Non-Current Notes Receivable
Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable:
In Millions
 
 
June 30, 2019
 
December 31, 2018
 
CMS Energy, including Consumers
 
 
 
 
Current
 
 
 
 
EnerBank notes receivable, net of allowance for loan losses
 
$
249

 
$
233

Non‑current
 
 
 
 
EnerBank notes receivable
 
1,982

 
1,624

Total notes receivable
 
$
2,231

 
$
1,857

Consumers
 
 
 
 
Current
 
 
 
 
DB SERP note receivable – related party
 
$
7

 
$
7

Non‑current
 
 
 
 
DB SERP note receivable – related party
 
98

 
99

Total notes receivable
 
$
105

 
$
106


Consumers Energy Company  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Schedule Of Current And Non-Current Notes Receivable
Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable:
In Millions
 
 
June 30, 2019
 
December 31, 2018
 
CMS Energy, including Consumers
 
 
 
 
Current
 
 
 
 
EnerBank notes receivable, net of allowance for loan losses
 
$
249

 
$
233

Non‑current
 
 
 
 
EnerBank notes receivable
 
1,982

 
1,624

Total notes receivable
 
$
2,231

 
$
1,857

Consumers
 
 
 
 
Current
 
 
 
 
DB SERP note receivable – related party
 
$
7

 
$
7

Non‑current
 
 
 
 
DB SERP note receivable – related party
 
98

 
99

Total notes receivable
 
$
105

 
$
106


v3.19.2
Leases (Tables)
6 Months Ended
Jun. 30, 2019
Leases [Line Items]  
Assets and Liabilities of Lessee
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
 
June 30, 2019
CMS Energy, including Consumers
 
 
Consumers
 
Operating leases
 
 
 
 
 
Right-of-use assets1
 
$
51

 
 
$
44

Lease liabilities
 
 
 
 
 
Current lease liabilities2
 
10

 
 
8

Non-current lease liabilities3
 
41

 
 
35

Finance leases
 
 
 
 
 
Right-of-use assets
 
$
76

 
 
$
76

Lease liabilities4
 
 
 
 
 
Current lease liabilities
 
7

 
 
7

Non-current lease liabilities
 
63

 
 
63

Weighted-average remaining lease term (in years)
 
 
 
 
 
Operating leases
 
16

 
 
13

Finance leases
 
12

 
 
12

Weighted-average discount rate
 
 
 
 
 
Operating leases
 
3.7
%
 
 
3.7
%
Finance leases5
 
2.0
%
 
 
2.0
%
1 
CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non‑current assets on their consolidated balance sheets.
2 
The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.
3 
The non‑current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non‑current liabilities on their consolidated balance sheets.
4 
This includes $25 million for leases with related parties, of which less than $1 million is current.
5 
This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.
Lease Cost Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
 
 
CMS Energy, including Consumers
 
Consumers
June 30, 2019
Three Months Ended
 
 
Six Months Ended
 
 
Three Months Ended
 
 
Six Months Ended
 
Operating lease costs
 
$
3

 
 
$
6

 
 
$
3

 
 
$
5

Finance lease costs
 
 
 
 
 
 
 
 
 
 
 
Amortization of right-of-use assets
 
2

 
 
4

 
 
2

 
 
4

Interest on lease liabilities
 
5

 
 
9

 
 
5

 
 
9

Variable lease costs
 
24

 
 
55

 
 
24

 
 
55

Total lease costs
 
$
34

 
 
$
74

 
 
$
34

 
 
$
73


Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities:
In Millions
 
Six Months Ended June 30, 2019
CMS Energy, including Consumers
 
 
Consumers
 
Cash paid for amounts included in the measurement of lease liabilities
 
 
 
 
 
Cash used in operating activities for operating leases
 
$
5

 
 
$
5

Cash used in operating activities for finance leases
 
9

 
 
9

Cash used in financing activities for finance leases
 
3

 
 
3


Lessee Operating Lease Liability and Finance Liability Maturity
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases:
In Millions
 
 
 
 
Finance Leases
June 30, 2019
Operating Leases
 
 
Pipelines and PPAs
 
Other
 
Total
 
CMS Energy, including Consumers
 
 
 
 
 
 
 
 
 
Remainder of 2019
 
$
5

 
 
$
9

 
$
5

 
$
14

2020
 
11

 
 
17

 
6

 
23

2021
 
11

 
 
17

 
5

 
22

2022
 
5

 
 
14

 
5

 
19

2023
 
3

 
 
13

 
5

 
18

2024
 
2

 
 
13

 
3

 
16

2025 and thereafter
 
35

 
 
79

 
11

 
90

Total minimum lease payments
 
$
72

 
 
$
162

 
$
40

 
$
202

Less discount
 
21

 
 
128

 
4

 
132

Present value of minimum lease payments
 
$
51

 
 
$
34

 
$
36

 
$
70

Consumers
 
 
 
 
 
 
 
 
 
Remainder of 2019
 
$
5

 
 
$
9

 
$
5

 
$
14

2020
 
9

 
 
17

 
6

 
23

2021
 
9

 
 
17

 
5

 
22

2022
 
4

 
 
14

 
5

 
19

2023
 
3

 
 
13

 
5

 
18

2024
 
2

 
 
13

 
3

 
16

2025 and thereafter
 
28

 
 
79

 
11

 
90

Total minimum lease payments
 
$
60

 
 
$
162

 
$
40

 
$
202

Less discount
 
17

 
 
128

 
4

 
132

Present value of minimum lease payments
 
$
43

 
 
$
34

 
$
36

 
$
70


Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases at December 31, 2018, prior to the adoption of ASU 2016‑02:
In Millions
 
December 31, 2018
Capital Leases
 
Operating Leases
 
CMS Energy, including Consumers
 
 
 
 
2019
 
$
14

 
$
16

2020
 
11

 
15

2021
 
11

 
15

2022
 
8

 
8

2023
 
6

 
5

2024 and thereafter
 
21

 
38

Total minimum lease payments
 
$
71

 
$
97

Less discount
 
22

 
 
Present value of minimum lease payments
 
$
49

 
 
Less current portion
 
9

 
 
Non-current portion
 
$
40

 
 
Consumers
 
 
 
 
2019
 
$
14

 
$
14

2020
 
11

 
14

2021
 
11

 
13

2022
 
8

 
7

2023
 
6

 
5

2024
 
21

 
32

Total minimum lease payments
 
$
71

 
$
85

Less discount
 
22

 
 
Present value of minimum lease payments
 
$
49

 
 
Less current portion
 
9

 
 
Non-current portion
 
$
40

 
 

Lessor, Operating Lease, Payments to be Received, Maturity
Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases:
In Millions
 
June 30, 2019
Remainder of 2019
 
$
28

2020
 
54

2021
 
54

2022
 
48

2023
 
44

2024
 
44

2025 and thereafter
 
62

Total minimum lease payments
 
$
334


Sales-type and Direct Financing Leases, Lease Receivable, Maturity
Presented in the following table are the minimum rental payments to be received under CMS Energy’s and Consumers’ non‑cancelable direct financing leases:
In Millions
 
June 30, 2019
CMS Energy, including Consumers
 
 
Consumers
 
Remainder of 2019
 
$

 
 
$
1

2020
 

 
 
1

2021
 

 
 
1

2022
 

 
 
1

2023
 

 
 
1

2024
 

 
 
1

2025 and thereafter
 
10

 
 
19

Total minimum lease payments
 
$
10

 
 
$
25

Less unearned income
 
5

 
 
15

Present value of lease payments recognized as lease receivables
 
$
5

 
 
$
10


Consumers Energy Company  
Leases [Line Items]  
Assets and Liabilities of Lessee
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
 
June 30, 2019
CMS Energy, including Consumers
 
 
Consumers
 
Operating leases
 
 
 
 
 
Right-of-use assets1
 
$
51

 
 
$
44

Lease liabilities
 
 
 
 
 
Current lease liabilities2
 
10

 
 
8

Non-current lease liabilities3
 
41

 
 
35

Finance leases
 
 
 
 
 
Right-of-use assets
 
$
76

 
 
$
76

Lease liabilities4
 
 
 
 
 
Current lease liabilities
 
7

 
 
7

Non-current lease liabilities
 
63

 
 
63

Weighted-average remaining lease term (in years)
 
 
 
 
 
Operating leases
 
16

 
 
13

Finance leases
 
12

 
 
12

Weighted-average discount rate
 
 
 
 
 
Operating leases
 
3.7
%
 
 
3.7
%
Finance leases5
 
2.0
%
 
 
2.0
%
1 
CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non‑current assets on their consolidated balance sheets.
2 
The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.
3 
The non‑current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non‑current liabilities on their consolidated balance sheets.
4 
This includes $25 million for leases with related parties, of which less than $1 million is current.
5 
This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.
Lease Cost Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
 
 
CMS Energy, including Consumers
 
Consumers
June 30, 2019
Three Months Ended
 
 
Six Months Ended
 
 
Three Months Ended
 
 
Six Months Ended
 
Operating lease costs
 
$
3

 
 
$
6

 
 
$
3

 
 
$
5

Finance lease costs
 
 
 
 
 
 
 
 
 
 
 
Amortization of right-of-use assets
 
2

 
 
4

 
 
2

 
 
4

Interest on lease liabilities
 
5

 
 
9

 
 
5

 
 
9

Variable lease costs
 
24

 
 
55

 
 
24

 
 
55

Total lease costs
 
$
34

 
 
$
74

 
 
$
34

 
 
$
73


Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities:
In Millions
 
Six Months Ended June 30, 2019
CMS Energy, including Consumers
 
 
Consumers
 
Cash paid for amounts included in the measurement of lease liabilities
 
 
 
 
 
Cash used in operating activities for operating leases
 
$
5

 
 
$
5

Cash used in operating activities for finance leases
 
9

 
 
9

Cash used in financing activities for finance leases
 
3

 
 
3


Lessee Operating Lease Liability and Finance Liability Maturity
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases at December 31, 2018, prior to the adoption of ASU 2016‑02:
In Millions
 
December 31, 2018
Capital Leases
 
Operating Leases
 
CMS Energy, including Consumers
 
 
 
 
2019
 
$
14

 
$
16

2020
 
11

 
15

2021
 
11

 
15

2022
 
8

 
8

2023
 
6

 
5

2024 and thereafter
 
21

 
38

Total minimum lease payments
 
$
71

 
$
97

Less discount
 
22

 
 
Present value of minimum lease payments
 
$
49

 
 
Less current portion
 
9

 
 
Non-current portion
 
$
40

 
 
Consumers
 
 
 
 
2019
 
$
14

 
$
14

2020
 
11

 
14

2021
 
11

 
13

2022
 
8

 
7

2023
 
6

 
5

2024
 
21

 
32

Total minimum lease payments
 
$
71

 
$
85

Less discount
 
22

 
 
Present value of minimum lease payments
 
$
49

 
 
Less current portion
 
9

 
 
Non-current portion
 
$
40

 
 

Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases:
In Millions
 
 
 
 
Finance Leases
June 30, 2019
Operating Leases
 
 
Pipelines and PPAs
 
Other
 
Total
 
CMS Energy, including Consumers
 
 
 
 
 
 
 
 
 
Remainder of 2019
 
$
5

 
 
$
9

 
$
5

 
$
14

2020
 
11

 
 
17

 
6

 
23

2021
 
11

 
 
17

 
5

 
22

2022
 
5

 
 
14

 
5

 
19

2023
 
3

 
 
13

 
5

 
18

2024
 
2

 
 
13

 
3

 
16

2025 and thereafter
 
35

 
 
79

 
11

 
90

Total minimum lease payments
 
$
72

 
 
$
162

 
$
40

 
$
202

Less discount
 
21

 
 
128

 
4

 
132

Present value of minimum lease payments
 
$
51

 
 
$
34

 
$
36

 
$
70

Consumers
 
 
 
 
 
 
 
 
 
Remainder of 2019
 
$
5

 
 
$
9

 
$
5

 
$
14

2020
 
9

 
 
17

 
6

 
23

2021
 
9

 
 
17

 
5

 
22

2022
 
4

 
 
14

 
5

 
19

2023
 
3

 
 
13

 
5

 
18

2024
 
2

 
 
13

 
3

 
16

2025 and thereafter
 
28

 
 
79

 
11

 
90

Total minimum lease payments
 
$
60

 
 
$
162

 
$
40

 
$
202

Less discount
 
17

 
 
128

 
4

 
132

Present value of minimum lease payments
 
$
43

 
 
$
34

 
$
36

 
$
70


Sales-type and Direct Financing Leases, Lease Receivable, Maturity
Presented in the following table are the minimum rental payments to be received under CMS Energy’s and Consumers’ non‑cancelable direct financing leases:
In Millions
 
June 30, 2019
CMS Energy, including Consumers
 
 
Consumers
 
Remainder of 2019
 
$

 
 
$
1

2020
 

 
 
1

2021
 

 
 
1

2022
 

 
 
1

2023
 

 
 
1

2024
 

 
 
1

2025 and thereafter
 
10

 
 
19

Total minimum lease payments
 
$
10

 
 
$
25

Less unearned income
 
5

 
 
15

Present value of lease payments recognized as lease receivables
 
$
5

 
 
$
10


v3.19.2
Retirement Benefits (Tables)
6 Months Ended
Jun. 30, 2019
Defined Benefit Plan Disclosure [Line Items]  
Schedule Of Net Benefit Costs
Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans:
In Millions
 
 
DB Pension Plans
 
OPEB Plan
 
Three Months Ended
 
Six Months Ended
 
Three Months Ended
 
Six Months Ended
June 30
2019
 
2018
 
 
2019
 
2018
 
 
2019
 
2018
 
 
2019
 
2018
 
CMS Energy, including Consumers
Net periodic cost (credit)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
10

 
$
12

 
 
$
20

 
$
24

 
 
$
3

 
$
5

 
 
$
7

 
$
9

Interest cost
 
24

 
23

 
 
49

 
45

 
 
10

 
9

 
 
20

 
18

Expected return on plan assets
 
(41
)
 
(37
)
 
 
(81
)
 
(74
)
 
 
(22
)
 
(25
)
 
 
(44
)
 
(49
)
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
 
12

 
19

 
 
24

 
37

 
 
6

 
4

 
 
13

 
8

Prior service cost (credit)
 
1

 

 
 
1

 
1

 
 
(15
)
 
(17
)
 
 
(31
)
 
(34
)
Net periodic cost (credit)
 
$
6

 
$
17

 
 
$
13

 
$
33

 
 
$
(18
)
 
$
(24
)
 
 
$
(35
)
 
$
(48
)
Consumers
Net periodic cost (credit)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
10

 
$
11

 
 
$
20

 
$
23

 
 
$
4

 
$
4

 
 
$
7

 
$
8

Interest cost
 
23

 
21

 
 
46

 
42

 
 
10

 
9

 
 
20

 
17

Expected return on plan assets
 
(38
)
 
(34
)
 
 
(76
)
 
(69
)
 
 
(20
)
 
(23
)
 
 
(41
)
 
(46
)
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
 
11

 
18

 
 
23

 
36

 
 
6

 
4

 
 
13

 
8

Prior service cost (credit)
 
1

 

 
 
1

 
1

 
 
(16
)
 
(16
)
 
 
(31
)
 
(32
)
Net periodic cost (credit)
 
$
7

 
$
16

 
 
$
14

 
$
33

 
 
$
(16
)
 
$
(22
)
 
 
$
(32
)
 
$
(45
)

Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Schedule Of Net Benefit Costs
Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans:
In Millions
 
 
DB Pension Plans
 
OPEB Plan
 
Three Months Ended
 
Six Months Ended
 
Three Months Ended
 
Six Months Ended
June 30
2019
 
2018
 
 
2019
 
2018
 
 
2019
 
2018
 
 
2019
 
2018
 
CMS Energy, including Consumers
Net periodic cost (credit)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
10

 
$
12

 
 
$
20

 
$
24

 
 
$
3

 
$
5

 
 
$
7

 
$
9

Interest cost
 
24

 
23

 
 
49

 
45

 
 
10

 
9

 
 
20

 
18

Expected return on plan assets
 
(41
)
 
(37
)
 
 
(81
)
 
(74
)
 
 
(22
)
 
(25
)
 
 
(44
)
 
(49
)
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
 
12

 
19

 
 
24

 
37

 
 
6

 
4

 
 
13

 
8

Prior service cost (credit)
 
1

 

 
 
1

 
1

 
 
(15
)
 
(17
)
 
 
(31
)
 
(34
)
Net periodic cost (credit)
 
$
6

 
$
17

 
 
$
13

 
$
33

 
 
$
(18
)
 
$
(24
)
 
 
$
(35
)
 
$
(48
)
Consumers
Net periodic cost (credit)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
10

 
$
11

 
 
$
20

 
$
23

 
 
$
4

 
$
4

 
 
$
7

 
$
8

Interest cost
 
23

 
21

 
 
46

 
42

 
 
10

 
9

 
 
20

 
17

Expected return on plan assets
 
(38
)
 
(34
)
 
 
(76
)
 
(69
)
 
 
(20
)
 
(23
)
 
 
(41
)
 
(46
)
Amortization of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
 
11

 
18

 
 
23

 
36

 
 
6

 
4

 
 
13

 
8

Prior service cost (credit)
 
1

 

 
 
1

 
1

 
 
(16
)
 
(16
)
 
 
(31
)
 
(32
)
Net periodic cost (credit)
 
$
7

 
$
16

 
 
$
14

 
$
33

 
 
$
(16
)
 
$
(22
)
 
 
$
(32
)
 
$
(45
)

v3.19.2
Income Taxes (Tables)
6 Months Ended
Jun. 30, 2019
Income Taxes [Line Items]  
Schedule Of Effective Income Tax Rate Reconciliation
Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:
Six Months Ended June 30
 
2019

 
2018

CMS Energy, including Consumers
 
 
 
 
U.S. federal income tax rate
 
21.0
 %
 
21.0
 %
Increase (decrease) in income taxes from:
 
 
 
 
State and local income taxes, net of federal effect
 
5.4

 
5.6

TCJA excess deferred taxes1
 
(3.5
)
 
(3.4
)
Production tax credits
 
(2.5
)
 
(1.7
)
Accelerated flow-through of regulatory tax benefits2
 
(1.5
)
 
(5.0
)
Research and development tax credits, net3
 
(0.2
)
 
(2.2
)
Other, net
 
(0.6
)
 
0.3

Effective tax rate
 
18.1
 %
 
14.6
 %
Consumers
 
 
 
 
U.S. federal income tax rate
 
21.0
 %
 
21.0
 %
Increase (decrease) in income taxes from:
 
 
 
 
State and local income taxes, net of federal effect
 
5.7

 
5.8

TCJA excess deferred taxes1
 
(3.2
)
 
(3.2
)
Accelerated flow-through of regulatory tax benefits2
 
(1.8
)
 
(4.7
)
Production tax credits
 
(1.3
)
 
(1.5
)
Research and development tax credits, net3
 
(0.2
)
 
(2.1
)
Other, net
 
(0.4
)
 

Effective tax rate
 
19.8
 %
 
15.3
 %
1 
In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a $1.8 billion regulatory liability. This regulatory liability relates to the excess deferred taxes arising from accelerated tax depreciation on assets in rate base that are governed by normalization provisions of the Internal Revenue Code. The normalization provisions require that the excess deferred taxes be refunded to customers over the remaining average service life of the associated assets. In January 2018, Consumers began to reduce this regulatory liability by crediting income tax expense. Consumers has fully reserved for the eventual refund of these excess deferred taxes that it has credited to income tax expense in a separate non‑current regulatory liability established by reducing revenue, and will continue to do so until these benefits are passed on to customers in accordance with an MPSC order, expected to be issued in 2019. At June 30, 2019, this reserve for refund of these excess deferred taxes totaled $53 million.
2 
In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow‑through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018. This change, which also accelerates Consumers’ recognition of the income tax benefits, reduced Consumers’ income tax expense by $7 million for the six months ended June 30, 2019 and by $22 million for the six months ended June 30, 2018.
3 
In March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions, at that time.
Consumers Energy Company  
Income Taxes [Line Items]  
Schedule Of Effective Income Tax Rate Reconciliation
Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:
Six Months Ended June 30
 
2019

 
2018

CMS Energy, including Consumers
 
 
 
 
U.S. federal income tax rate
 
21.0
 %
 
21.0
 %
Increase (decrease) in income taxes from:
 
 
 
 
State and local income taxes, net of federal effect
 
5.4

 
5.6

TCJA excess deferred taxes1
 
(3.5
)
 
(3.4
)
Production tax credits
 
(2.5
)
 
(1.7
)
Accelerated flow-through of regulatory tax benefits2
 
(1.5
)
 
(5.0
)
Research and development tax credits, net3
 
(0.2
)
 
(2.2
)
Other, net
 
(0.6
)
 
0.3

Effective tax rate
 
18.1
 %
 
14.6
 %
Consumers
 
 
 
 
U.S. federal income tax rate
 
21.0
 %
 
21.0
 %
Increase (decrease) in income taxes from:
 
 
 
 
State and local income taxes, net of federal effect
 
5.7

 
5.8

TCJA excess deferred taxes1
 
(3.2
)
 
(3.2
)
Accelerated flow-through of regulatory tax benefits2
 
(1.8
)
 
(4.7
)
Production tax credits
 
(1.3
)
 
(1.5
)
Research and development tax credits, net3
 
(0.2
)
 
(2.1
)
Other, net
 
(0.4
)
 

Effective tax rate
 
19.8
 %
 
15.3
 %
1 
In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a $1.8 billion regulatory liability. This regulatory liability relates to the excess deferred taxes arising from accelerated tax depreciation on assets in rate base that are governed by normalization provisions of the Internal Revenue Code. The normalization provisions require that the excess deferred taxes be refunded to customers over the remaining average service life of the associated assets. In January 2018, Consumers began to reduce this regulatory liability by crediting income tax expense. Consumers has fully reserved for the eventual refund of these excess deferred taxes that it has credited to income tax expense in a separate non‑current regulatory liability established by reducing revenue, and will continue to do so until these benefits are passed on to customers in accordance with an MPSC order, expected to be issued in 2019. At June 30, 2019, this reserve for refund of these excess deferred taxes totaled $53 million.
2 
In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow‑through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018. This change, which also accelerates Consumers’ recognition of the income tax benefits, reduced Consumers’ income tax expense by $7 million for the six months ended June 30, 2019 and by $22 million for the six months ended June 30, 2018.
3 
In March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions, at that time.
v3.19.2
Earnings Per Share - CMS Energy (Tables)
6 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Basic and Diluted EPS Computations
Presented in the following table are CMS Energy’s basic and diluted EPS computations based on net income:
In Millions, Except Per Share Amounts
 
 
Three Months Ended
 
Six Months Ended
June 30
2019
 
2018
 
 
2019
 
2018
 
Income available to common stockholders
 
 
 
 
 
 
 
 
 
Net income
 
$
94

 
$
140

 
 
$
307

 
$
381

Less income attributable to noncontrolling interests
 
1

 
1

 
 
1

 
1

Net income available to common stockholders – basic and diluted
 
$
93

 
$
139

 
 
$
306

 
$
380

Average common shares outstanding
 
 
 
 
 
 
 
 
 
Weighted-average shares – basic
 
282.9

 
282.1

 
 
282.9

 
281.8

Add dilutive nonvested stock awards
 
0.6

 
0.5

 
 
0.6

 
0.6

Add dilutive forward equity sale contracts
 
0.5

 

 
 
0.3

 

Weighted-average shares – diluted
 
284.0

 
282.6

 
 
283.8

 
282.4

Net income per average common share available to common stockholders
 
 
 
 
 
 
 
 
 
Basic
 
$
0.33

 
$
0.49

 
 
$
1.08

 
$
1.35

Diluted
 
0.33

 
0.49

 
 
1.08

 
1.35


v3.19.2
Revenue (Tables)
6 Months Ended
Jun. 30, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Components Of Operating Revenue
Presented in the following tables are the components of operating revenue:
In Millions
 
Three Months Ended June 30, 2019
Electric Utility
 
Gas Utility
 
Enterprises1
 
Other Reconciling2
 
Consolidated
 
CMS Energy, including Consumers
Consumers utility revenue
 
$
1,026

 
$
305

 
$

 
$

 
$
1,331

Other
 

 

 
16

 

 
16

Revenue recognized from contracts with customers
 
$
1,026

 
$
305

 
$
16

 
$

 
$
1,347

Leasing income
 

 

 
42

 

 
42

Financing income
 
1

 
2

 

 
53

 
56

Total operating revenue – CMS Energy
 
$
1,027

 
$
307

 
$
58

 
$
53

 
$
1,445

Consumers
Consumers utility revenue
 
 
 
 
 
 
 
 
 
 
Residential
 
$
423

 
$
198

 
$

 
$

 
$
621

Commercial
 
362

 
58

 

 

 
420

Industrial
 
174

 
8

 

 

 
182

Other
 
67

 
41

 

 

 
108

Revenue recognized from contracts with customers
 
$
1,026

 
$
305

 
$

 
$

 
$
1,331

Financing income
 
1

 
2

 

 

 
3

Total operating revenue – Consumers
 
$
1,027

 
$
307

 
$

 
$

 
$
1,334

In Millions
 
Three Months Ended June 30, 2018
Electric Utility
 
Gas Utility
 
Enterprises1
 
Other Reconciling2
 
Consolidated
 
CMS Energy, including Consumers
Consumers utility revenue
 
$
1,087

 
$
302

 
$

 
$

 
$
1,389

Other
 

 

 
24

 

 
24

Revenue recognized from contracts with customers
 
$
1,087

 
$
302

 
$
24

 
$

 
$
1,413

Leasing income
 

 

 
37

 

 
37

Financing income
 
2

 
2

 

 
36

 
40

Consumers alternative revenue programs
 

 
2

 

 

 
2

Total operating revenue – CMS Energy
 
$
1,089

 
$
306

 
$
61

 
$
36

 
$
1,492

Consumers
Consumers utility revenue
 
 
 
 
 
 
 
 
 
 
Residential
 
$
475

 
$
194

 
$

 
$

 
$
669

Commercial
 
386

 
58

 

 

 
444

Industrial
 
170

 
9

 

 

 
179

Other
 
56

 
41

 

 

 
97

Revenue recognized from contracts with customers
 
$
1,087

 
$
302

 
$

 
$

 
$
1,389

Financing income
 
2

 
2

 

 

 
4

Alternative revenue programs
 

 
2

 

 

 
2

Total operating revenue – Consumers
 
$
1,089

 
$
306

 
$

 
$

 
$
1,395

In Millions
 
Six Months Ended June 30, 2019
Electric Utility
 
Gas Utility
 
Enterprises1
 
Other Reconciling2
 
Consolidated
 
CMS Energy, including Consumers
Consumers utility revenue
 
$
2,126

 
$
1,143

 
$

 
$

 
$
3,269

Other
 

 

 
35

 

 
35

Revenue recognized from contracts with customers
 
$
2,126

 
$
1,143

 
$
35

 
$

 
$
3,304

Leasing income
 

 

 
90

 

 
90

Financing income
 
4

 
4

 

 
102

 
110

Total operating revenue – CMS Energy
 
$
2,130

 
$
1,147

 
$
125

 
$
102

 
$
3,504

Consumers
Consumers utility revenue
 
 
 
 
 
 
 
 
 
 
Residential
 
$
946

 
$
787

 
$

 
$

 
$
1,733

Commercial
 
713

 
232

 

 

 
945

Industrial
 
336

 
33

 

 

 
369

Other
 
131

 
91

 

 

 
222

Revenue recognized from contracts with customers
 
$
2,126

 
$
1,143

 
$

 
$

 
$
3,269

Financing income
 
4

 
4

 

 

 
8

Total operating revenue – Consumers
 
$
2,130

 
$
1,147

 
$

 
$

 
$
3,277

In Millions
 
Six Months Ended June 30, 2018
Electric Utility
 
Gas Utility
 
Enterprises1
 
Other Reconciling2
 
Consolidated
 
CMS Energy, including Consumers
Consumers utility revenue
 
$
2,163

 
$
1,075

 
$

 
$

 
$
3,238

Other
 

 

 
48

 

 
48

Revenue recognized from contracts with customers
 
$
2,163

 
$
1,075

 
$
48

 
$

 
$
3,286

Leasing income
 

 

 
76

 

 
76

Financing income
 
4

 
4

 

 
71

 
79

Consumers alternative revenue programs
 

 
4

 

 

 
4

Total operating revenue – CMS Energy
 
$
2,167

 
$
1,083

 
$
124

 
$
71

 
$
3,445

Consumers
Consumers utility revenue
 
 
 
 
 
 
 
 
 
 
Residential
 
$
976

 
$
731

 
$

 
$

 
$
1,707

Commercial
 
747

 
220

 

 

 
967

Industrial
 
313

 
33

 

 

 
346

Other
 
127

 
91

 

 

 
218

Revenue recognized from contracts with customers
 
$
2,163

 
$
1,075

 
$

 
$

 
$
3,238

Financing income
 
4

 
4

 

 

 
8

Alternative revenue programs
 

 
4

 

 

 
4

Total operating revenue – Consumers
 
$
2,167

 
$
1,083

 
$

 
$

 
$
3,250

1 
Amounts represent the enterprises segment’s operating revenue from independent power production and CMS ERM’s sales of energy commodities in support of the independent power production portfolio.
2 
Amount represents EnerBank’s operating revenue from providing primarily unsecured consumer installment loans for financing home improvements.
Consumers Energy Company  
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Components Of Operating Revenue
Presented in the following tables are the components of operating revenue:
In Millions
 
Three Months Ended June 30, 2019
Electric Utility
 
Gas Utility
 
Enterprises1
 
Other Reconciling2
 
Consolidated
 
CMS Energy, including Consumers
Consumers utility revenue
 
$
1,026

 
$
305

 
$

 
$

 
$
1,331

Other
 

 

 
16

 

 
16

Revenue recognized from contracts with customers
 
$
1,026

 
$
305

 
$
16

 
$

 
$
1,347

Leasing income
 

 

 
42

 

 
42

Financing income
 
1

 
2

 

 
53

 
56

Total operating revenue – CMS Energy
 
$
1,027

 
$
307

 
$
58

 
$
53

 
$
1,445

Consumers
Consumers utility revenue
 
 
 
 
 
 
 
 
 
 
Residential
 
$
423

 
$
198

 
$

 
$

 
$
621

Commercial
 
362

 
58

 

 

 
420

Industrial
 
174

 
8

 

 

 
182

Other
 
67

 
41

 

 

 
108

Revenue recognized from contracts with customers
 
$
1,026

 
$
305

 
$

 
$

 
$
1,331

Financing income
 
1

 
2

 

 

 
3

Total operating revenue – Consumers
 
$
1,027

 
$
307

 
$

 
$

 
$
1,334

In Millions
 
Three Months Ended June 30, 2018
Electric Utility
 
Gas Utility
 
Enterprises1
 
Other Reconciling2
 
Consolidated
 
CMS Energy, including Consumers
Consumers utility revenue
 
$
1,087

 
$
302

 
$

 
$

 
$
1,389

Other
 

 

 
24

 

 
24

Revenue recognized from contracts with customers
 
$
1,087

 
$
302

 
$
24

 
$

 
$
1,413

Leasing income
 

 

 
37

 

 
37

Financing income
 
2

 
2

 

 
36

 
40

Consumers alternative revenue programs
 

 
2

 

 

 
2

Total operating revenue – CMS Energy
 
$
1,089

 
$
306

 
$
61

 
$
36

 
$
1,492

Consumers
Consumers utility revenue
 
 
 
 
 
 
 
 
 
 
Residential
 
$
475

 
$
194

 
$

 
$

 
$
669

Commercial
 
386

 
58

 

 

 
444

Industrial
 
170

 
9

 

 

 
179

Other
 
56

 
41

 

 

 
97

Revenue recognized from contracts with customers
 
$
1,087

 
$
302

 
$

 
$

 
$
1,389

Financing income
 
2

 
2

 

 

 
4

Alternative revenue programs
 

 
2

 

 

 
2

Total operating revenue – Consumers
 
$
1,089

 
$
306

 
$

 
$

 
$
1,395

In Millions
 
Six Months Ended June 30, 2019
Electric Utility
 
Gas Utility
 
Enterprises1
 
Other Reconciling2
 
Consolidated
 
CMS Energy, including Consumers
Consumers utility revenue
 
$
2,126

 
$
1,143

 
$

 
$

 
$
3,269

Other
 

 

 
35

 

 
35

Revenue recognized from contracts with customers
 
$
2,126

 
$
1,143

 
$
35

 
$

 
$
3,304

Leasing income
 

 

 
90

 

 
90

Financing income
 
4

 
4

 

 
102

 
110

Total operating revenue – CMS Energy
 
$
2,130

 
$
1,147

 
$
125

 
$
102

 
$
3,504

Consumers
Consumers utility revenue
 
 
 
 
 
 
 
 
 
 
Residential
 
$
946

 
$
787

 
$

 
$

 
$
1,733

Commercial
 
713

 
232

 

 

 
945

Industrial
 
336

 
33

 

 

 
369

Other
 
131

 
91

 

 

 
222

Revenue recognized from contracts with customers
 
$
2,126

 
$
1,143

 
$

 
$

 
$
3,269

Financing income
 
4

 
4

 

 

 
8

Total operating revenue – Consumers
 
$
2,130

 
$
1,147

 
$

 
$

 
$
3,277

In Millions
 
Six Months Ended June 30, 2018
Electric Utility
 
Gas Utility
 
Enterprises1
 
Other Reconciling2
 
Consolidated
 
CMS Energy, including Consumers
Consumers utility revenue
 
$
2,163

 
$
1,075

 
$

 
$

 
$
3,238

Other
 

 

 
48

 

 
48

Revenue recognized from contracts with customers
 
$
2,163

 
$
1,075

 
$
48

 
$

 
$
3,286

Leasing income
 

 

 
76

 

 
76

Financing income
 
4

 
4

 

 
71

 
79

Consumers alternative revenue programs
 

 
4

 

 

 
4

Total operating revenue – CMS Energy
 
$
2,167

 
$
1,083

 
$
124

 
$
71

 
$
3,445

Consumers
Consumers utility revenue
 
 
 
 
 
 
 
 
 
 
Residential
 
$
976

 
$
731

 
$

 
$

 
$
1,707

Commercial
 
747

 
220

 

 

 
967

Industrial
 
313

 
33

 

 

 
346

Other
 
127

 
91

 

 

 
218

Revenue recognized from contracts with customers
 
$
2,163

 
$
1,075

 
$

 
$

 
$
3,238

Financing income
 
4

 
4

 

 

 
8

Alternative revenue programs
 

 
4

 

 

 
4

Total operating revenue – Consumers
 
$
2,167

 
$
1,083

 
$

 
$

 
$
3,250

1 
Amounts represent the enterprises segment’s operating revenue from independent power production and CMS ERM’s sales of energy commodities in support of the independent power production portfolio.
2 
Amount represents EnerBank’s operating revenue from providing primarily unsecured consumer installment loans for financing home improvements.
v3.19.2
Cash And Cash Equivalents (Tables)
6 Months Ended
Jun. 30, 2019
Cash and Cash Equivalents [Line Items]  
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets: 
In Millions
 
 
June 30, 2019
 
December 31, 2018
 
CMS Energy, including Consumers
 
 
 
 
Cash and cash equivalents
 
$
312

 
$
153

Restricted cash and cash equivalents
 
22

 
21

Other non-current assets
 

 
1

Cash and cash equivalents, including restricted amounts
 
$
334

 
$
175

Consumers
 
 
 
 
Cash and cash equivalents
 
$
196

 
$
39

Restricted cash and cash equivalents
 
16

 
17

Cash and cash equivalents, including restricted amounts
 
$
212

 
$
56


Consumers Energy Company  
Cash and Cash Equivalents [Line Items]  
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets: 
In Millions
 
 
June 30, 2019
 
December 31, 2018
 
CMS Energy, including Consumers
 
 
 
 
Cash and cash equivalents
 
$
312

 
$
153

Restricted cash and cash equivalents
 
22

 
21

Other non-current assets
 

 
1

Cash and cash equivalents, including restricted amounts
 
$
334

 
$
175

Consumers
 
 
 
 
Cash and cash equivalents
 
$
196

 
$
39

Restricted cash and cash equivalents
 
16

 
17

Cash and cash equivalents, including restricted amounts
 
$
212

 
$
56


v3.19.2
Reportable Segments (Tables)
6 Months Ended
Jun. 30, 2019
Segment Reporting Information [Line Items]  
Schedule Of Financial Information By Reportable Segments
Presented in the following tables is financial information by reportable segment: 
In Millions
 
 
Three Months Ended
 
Six Months Ended
June 30
2019
 
2018
 
 
2019
 
2018
 
CMS Energy, including Consumers
 
 
 
 
 
 
 
 
 
Operating revenue
 
 
 
 
 
 
 
 
 
Electric utility
 
$
1,027

 
$
1,089

 
 
$
2,130

 
$
2,167

Gas utility
 
307

 
306

 
 
1,147

 
1,083

Enterprises
 
58

 
61

 
 
125

 
124

Other reconciling items
 
53

 
36

 
 
102

 
71

Total operating revenue – CMS Energy
 
$
1,445

 
$
1,492

 
 
$
3,504

 
$
3,445

Consumers
 
 
 
 
 
 
 
 
 
Operating revenue
 
 
 
 
 
 
 
 
 
Electric utility
 
$
1,027

 
$
1,089

 
 
$
2,130

 
$
2,167

Gas utility
 
307

 
306

 
 
1,147

 
1,083

Total operating revenue – Consumers
 
$
1,334

 
$
1,395

 
 
$
3,277

 
$
3,250

CMS Energy, including Consumers
 
 
 
 
 
 
 
 
 
Net income (loss) available to common stockholders
 


 


 
 
 
 
 
Electric utility
 
$
90

 
$
130

 
 
$
195

 
$
269

Gas utility
 
8

 
21

 
 
129

 
124

Enterprises
 
10

 
14

 
 
11

 
29

Other reconciling items
 
(15
)
 
(26
)
 
 
(29
)
 
(42
)
Total net income available to common stockholders – CMS Energy
 
$
93

 
$
139

 
 
$
306

 
$
380

Consumers
 
 
 
 
 
 
 
 
 
Net income (loss) available to common stockholder
 


 


 
 
 
 
 
Electric utility
 
$
90

 
$
130

 
 
$
195

 
$
269

Gas utility
 
8

 
21

 
 
129

 
124

Other reconciling items
 
(1
)
 

 
 
(1
)
 

Total net income available to common stockholder – Consumers
 
$
97

 
$
151

 
 
$
323

 
$
393

In Millions
 
 
June 30, 2019
 
December 31, 2018
 
CMS Energy, including Consumers
 
 
 
 
Plant, property, and equipment, gross
 
 
 
 
Electric utility1, 2
 
$
15,660

 
$
16,027

Gas utility1
 
8,154

 
7,919

Enterprises
 
405

 
412

Other reconciling items
 
44

 
42

Total plant, property, and equipment, gross – CMS Energy
 
$
24,263

 
$
24,400

Consumers
 
 
 
 
Plant, property, and equipment, gross
 
 
 
 
Electric utility1, 2
 
$
15,660

 
$
16,027

Gas utility1
 
8,154

 
7,919

Other reconciling items
 
19

 
17

Total plant, property, and equipment, gross – Consumers
 
$
23,833

 
$
23,963

CMS Energy, including Consumers
 
 
 
 
Total assets
 
 
 
 
Electric utility1
 
$
14,396

 
$
14,079

Gas utility1
 
7,890

 
7,806

Enterprises
 
522

 
540

Other reconciling items
 
2,484

 
2,104

Total assets – CMS Energy
 
$
25,292

 
$
24,529

Consumers
 
 
 
 
Total assets
 
 
 
 
Electric utility1
 
$
14,459

 
$
14,143

Gas utility1
 
7,937

 
7,853

Other reconciling items
 
20

 
29

Total assets – Consumers
 
$
22,416

 
$
22,025

1 
Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
2 
Costs related to coal-fueled electric generating units to be retired in 2023 were removed and recorded as a regulatory asset in June 2019. For additional details, see Note 2, Regulatory Matters.
Consumers Energy Company  
Segment Reporting Information [Line Items]  
Schedule Of Financial Information By Reportable Segments
Presented in the following tables is financial information by reportable segment: 
In Millions
 
 
Three Months Ended
 
Six Months Ended
June 30
2019
 
2018
 
 
2019
 
2018
 
CMS Energy, including Consumers
 
 
 
 
 
 
 
 
 
Operating revenue
 
 
 
 
 
 
 
 
 
Electric utility
 
$
1,027

 
$
1,089

 
 
$
2,130

 
$
2,167

Gas utility
 
307

 
306

 
 
1,147

 
1,083

Enterprises
 
58

 
61

 
 
125

 
124

Other reconciling items
 
53

 
36

 
 
102

 
71

Total operating revenue – CMS Energy
 
$
1,445

 
$
1,492

 
 
$
3,504

 
$
3,445

Consumers
 
 
 
 
 
 
 
 
 
Operating revenue
 
 
 
 
 
 
 
 
 
Electric utility
 
$
1,027

 
$
1,089

 
 
$
2,130

 
$
2,167

Gas utility
 
307

 
306

 
 
1,147

 
1,083

Total operating revenue – Consumers
 
$
1,334

 
$
1,395

 
 
$
3,277

 
$
3,250

CMS Energy, including Consumers
 
 
 
 
 
 
 
 
 
Net income (loss) available to common stockholders
 


 


 
 
 
 
 
Electric utility
 
$
90

 
$
130

 
 
$
195

 
$
269

Gas utility
 
8

 
21

 
 
129

 
124

Enterprises
 
10

 
14

 
 
11

 
29

Other reconciling items
 
(15
)
 
(26
)
 
 
(29
)
 
(42
)
Total net income available to common stockholders – CMS Energy
 
$
93

 
$
139

 
 
$
306

 
$
380

Consumers
 
 
 
 
 
 
 
 
 
Net income (loss) available to common stockholder
 


 


 
 
 
 
 
Electric utility
 
$
90

 
$
130

 
 
$
195

 
$
269

Gas utility
 
8

 
21

 
 
129

 
124

Other reconciling items
 
(1
)
 

 
 
(1
)
 

Total net income available to common stockholder – Consumers
 
$
97

 
$
151

 
 
$
323

 
$
393

In Millions
 
 
June 30, 2019
 
December 31, 2018
 
CMS Energy, including Consumers
 
 
 
 
Plant, property, and equipment, gross
 
 
 
 
Electric utility1, 2
 
$
15,660

 
$
16,027

Gas utility1
 
8,154

 
7,919

Enterprises
 
405

 
412

Other reconciling items
 
44

 
42

Total plant, property, and equipment, gross – CMS Energy
 
$
24,263

 
$
24,400

Consumers
 
 
 
 
Plant, property, and equipment, gross
 
 
 
 
Electric utility1, 2
 
$
15,660

 
$
16,027

Gas utility1
 
8,154

 
7,919

Other reconciling items
 
19

 
17

Total plant, property, and equipment, gross – Consumers
 
$
23,833

 
$
23,963

CMS Energy, including Consumers
 
 
 
 
Total assets
 
 
 
 
Electric utility1
 
$
14,396

 
$
14,079

Gas utility1
 
7,890

 
7,806

Enterprises
 
522

 
540

Other reconciling items
 
2,484

 
2,104

Total assets – CMS Energy
 
$
25,292

 
$
24,529

Consumers
 
 
 
 
Total assets
 
 
 
 
Electric utility1
 
$
14,459

 
$
14,143

Gas utility1
 
7,937

 
7,853

Other reconciling items
 
20

 
29

Total assets – Consumers
 
$
22,416

 
$
22,025

1 
Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
2 
Costs related to coal-fueled electric generating units to be retired in 2023 were removed and recorded as a regulatory asset in June 2019. For additional details, see Note 2, Regulatory Matters.
v3.19.2
Asset Sales (Tables)
6 Months Ended
Jun. 30, 2019
Consumers Energy Company  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Assets Sold
Presented in the following table are the major classes of assets classified as held for sale on Consumers’ consolidated balance sheets at June 30, 2019:
In Millions
 
Plant, property, and equipment, net
 
$
32

Construction work in progress
 
8

Total assets
 
$
40


v3.19.2
Regulatory Matters (Narrative) (Details)
$ in Millions
1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jan. 31, 2019
USD ($)
Oct. 31, 2018
USD ($)
Jun. 30, 2018
USD ($)
May 31, 2018
USD ($)
Jun. 30, 2019
USD ($)
coal_fueled_electric_generating_unit
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
coal_fueled_electric_generating_unit
Jun. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
May 31, 2019
USD ($)
Nov. 30, 2018
USD ($)
Public Utilities, General Disclosures [Line Items]                      
Regulatory liabilities, current         $ 67   $ 67   $ 155    
Regulatory liabilities, noncurrent         3,786   3,786   3,681    
Regulatory assets         2,344   2,344   1,743    
Revenue         1,445 $ 1,492 3,504 $ 3,445      
Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Regulatory liabilities, current         67   67   155    
Regulatory liabilities, noncurrent         3,786   3,786   3,681    
Regulatory assets         2,344   2,344   1,743    
Revenue         1,334 $ 1,395 3,277 $ 3,250      
Income Taxes, Net | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Regulatory liabilities, noncurrent   $ 1,600                  
Income Taxes Subject To Normalization | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Regulatory liabilities, noncurrent   1,700                  
Income Taxes Not Subject To Normalization | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Regulatory assets   300                  
Taxes Not Related To Plant Assets | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Regulatory liabilities, noncurrent   $ 200                  
Regulatory liability remaining life (in years)   10 years                  
TCJA Reserve For Refund | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Regulatory liabilities, noncurrent         53   53        
Electric Rate Case | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Annual rate increase authorized $ (24)   $ 72                
Rate of return on equity authorized 10.00%   10.00%                
Annual rate increase requested       $ 58              
Rate of return on equity requested       10.75%              
Annual rate increase requested, amended   $ 44                  
Electric Rate Case | Revenue Subject to Refund - Other | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Regulatory liabilities, current         36   36        
Electric Rate Case Tax Reform Rate Change | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Annual rate increase authorized $ (113)                    
Electric Rate Case Tax Reform Rate Change | Revenue Subject to Refund - Tax Reform Rate Change | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Regulatory liabilities, current                 70    
Electric Rate Case Tax Reform Rate Change | Income Taxes, Net | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Regulatory liabilities, noncurrent   $ 1,200                  
Electric Rate Case Tax Reform Rate Change | Income Taxes Subject To Normalization | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Regulatory liability remaining life (in years)   27 years                  
Electric Rate Case Tax Reform Rate Change | Income Taxes Not Subject To Normalization | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Regulatory asset remaining life (in years)   27 years                  
Electric Rate Case Net Of TCJA Impact | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Annual rate increase authorized $ 89                    
Gas Rate Case Tax Reform Rate Change | Revenue Subject to Refund - Tax Reform Rate Change | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Regulatory liabilities, current                     $ 31
Gas Rate Case Tax Reform Rate Change | Income Taxes, Net | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Regulatory liabilities, noncurrent   $ 400                  
Gas Rate Case Tax Reform Rate Change | Income Taxes Subject To Normalization | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Regulatory liability remaining life (in years)   44 years                  
Gas Rate Case Tax Reform Rate Change | Income Taxes Not Subject To Normalization | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Regulatory asset remaining life (in years)   44 years                  
Gas Rate Case And Electric Rate Case Tax Reform Rate Change | Revenue Subject to Refund - Tax Reform Rate Change | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Regulatory liabilities, current         $ 9   $ 9        
Energy Waste Reduction Plan Incentive | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Requested recovery/collection                   $ 34  
Revenue                 $ 34    
Coal-Fueled Electric Generating Units to be Retired | Consumers Energy Company                      
Public Utilities, General Disclosures [Line Items]                      
Number of units | coal_fueled_electric_generating_unit         2   2        
Regulatory assets         $ 657   $ 657        
v3.19.2
Contingencies And Commitments (Contingencies And Commitments) (Details)
violation in Thousands
1 Months Ended 6 Months Ended
Jun. 30, 2019
USD ($)
violation
site
Jan. 31, 2019
USD ($)
Jun. 30, 2019
USD ($)
site
lawsuit
Dec. 31, 2018
USD ($)
Loss Contingencies [Line Items]        
Regulatory assets $ 2,344,000,000   $ 2,344,000,000 $ 1,743,000,000
Consumers Energy Company        
Loss Contingencies [Line Items]        
Regulatory assets 2,344,000,000   2,344,000,000 $ 1,743,000,000
Bay Harbor        
Loss Contingencies [Line Items]        
Accrual for obligations for environmental remediation $ 45,000,000   $ 45,000,000  
Discounted projected costs rate 4.34%   4.34%  
Remaining undiscounted obligation amount $ 56,000,000   $ 56,000,000  
Accrual for environmental loss contingencies, inflation rate 1.00%   1.00%  
Electric Utility | NREPA | Consumers Energy Company        
Loss Contingencies [Line Items]        
Accrual for obligations for environmental remediation $ 3,000,000   $ 3,000,000  
Electric Utility | NREPA | Minimum | Consumers Energy Company        
Loss Contingencies [Line Items]        
Remediation and other response activity costs 3,000,000   3,000,000  
Electric Utility | NREPA | Maximum | Consumers Energy Company        
Loss Contingencies [Line Items]        
Remediation and other response activity costs 4,000,000   4,000,000  
Electric Utility | CERCLA Liability | Consumers Energy Company        
Loss Contingencies [Line Items]        
Accrual for obligations for environmental remediation 3,000,000   3,000,000  
Electric Utility | CERCLA Liability | Minimum | Consumers Energy Company        
Loss Contingencies [Line Items]        
Remediation and other response activity costs 3,000,000   3,000,000  
Electric Utility | CERCLA Liability | Maximum | Consumers Energy Company        
Loss Contingencies [Line Items]        
Remediation and other response activity costs 8,000,000   8,000,000  
Gas Utility | NREPA | Maximum | Consumers Energy Company        
Loss Contingencies [Line Items]        
Accrual for obligations for environmental remediation 1,000,000   1,000,000  
Remediation and other response activity costs 3,000,000   3,000,000  
Gas Utility | Manufactured Gas Plant | Consumers Energy Company        
Loss Contingencies [Line Items]        
Accrual for obligations for environmental remediation $ 68,000,000   $ 68,000,000  
Discounted projected costs rate 2.57%   2.57%  
Remaining undiscounted obligation amount $ 74,000,000   $ 74,000,000  
Number of former MGPs | site 23   23  
Accrual for environmental loss contingencies, inflation rate 2.50%   2.50%  
Authorized recovery, collection period     10 years  
Regulatory assets $ 129,000,000   $ 129,000,000  
Equatorial Guinea Tax Claim        
Loss Contingencies [Line Items]        
Foreign government tax claim on sale     $ 152,000,000  
Class Action Lawsuits        
Loss Contingencies [Line Items]        
Number of lawsuits | lawsuit     4  
Individual Lawsuits        
Loss Contingencies [Line Items]        
Number of lawsuits | lawsuit     1  
MCV PPA | Consumers Energy Company        
Loss Contingencies [Line Items]        
Foreign government tax claim on sale   $ 270,000,000    
Underwater cables Straits of Mackinac | Maximum | Consumers Energy Company        
Loss Contingencies [Line Items]        
Remediation and other response activity costs $ 10,000,000   $ 10,000,000  
MPSC Gas Staking MISS DIG Act [Member] | Consumers Energy Company        
Loss Contingencies [Line Items]        
Number of alleged violations | violation 20      
Maximum possible loss per violation $ 5,000      
v3.19.2
Contingencies And Commitments (Expected Remediation Cost By Year) (Details)
$ in Millions
Jun. 30, 2019
USD ($)
Bay Harbor  
Site Contingency [Line Items]  
2019 $ 2
2020 4
2021 4
2022 4
2023 4
2024 4
Gas Utility | Manufactured Gas Plant | Consumers Energy Company  
Site Contingency [Line Items]  
2019 8
2020 16
2021 21
2022 7
2023 2
2024 $ 2
v3.19.2
Contingencies And Commitments (Guarantees) (Details)
$ in Millions
6 Months Ended
Jun. 30, 2019
USD ($)
Guarantees  
Guarantees And Other Contingencies [Line Items]  
Guarantee Description Guarantees
Expiration Date indefinite
Maximum Obligation $ 36
Carrying Amount $ 0
Guarantees | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Guarantee Description Guarantee
Expiration Date indefinite
Maximum Obligation $ 30
Carrying Amount $ 0
Indemnity Obligations From Stock And Asset Sales Agreements  
Guarantees And Other Contingencies [Line Items]  
Guarantee Description Indemnity obligations from stock and asset sales agreements
Expiration Date indefinite
Maximum Obligation $ 153
Carrying Amount 2
Tax And Other Indemnity Obligations | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Carrying Amount $ 1
v3.19.2
Financings and Capitalization (Major Long-Term Debt Transactions) (Details)
$ in Millions
6 Months Ended
Jun. 30, 2019
USD ($)
Debt Instrument [Line Items]  
Principal balance $ 1,395
Debt retirement, principal 780
Consumers Energy Company  
Debt Instrument [Line Items]  
Principal balance 300
Debt retirement, principal 300
First mortgage bonds due February 2050 | Consumers Energy Company  
Debt Instrument [Line Items]  
Principal balance $ 300
Interest Rate 3.75%
Debt issuance date May 2019
Maturity Date February 2050
First mortgage bonds due April 2020 | Consumers Energy Company  
Debt Instrument [Line Items]  
Debt retirement, principal $ 300
Interest Rate 5.65%
Debt retirement date May 2019
Maturity Date April 2020
CMS Energy Corporation  
Debt Instrument [Line Items]  
Principal balance $ 1,095
Debt retirement, principal 480
CMS Energy Corporation | Term loan facility due December 2019  
Debt Instrument [Line Items]  
Principal balance 300
Debt retirement, principal $ 300
Debt issuance date January 2019
Debt retirement date February 2019
Maturity Date December 2019
CMS Energy Corporation | 5.875% Junior Subordinated Notes due 2079  
Debt Instrument [Line Items]  
Principal balance $ 630
Interest Rate 5.875%
Debt issuance date February 2019
Maturity Date March 2079
CMS Energy Corporation | Term loan facility due June 2020  
Debt Instrument [Line Items]  
Principal balance $ 165
Debt issuance date June 2019
Maturity Date June 2020
Effective interest rate 2.845%
CMS Energy Corporation | Term loan facility due April 2019  
Debt Instrument [Line Items]  
Debt retirement, principal $ 180
Debt retirement date February 2019
Maturity Date April 2019
London Interbank Offered Rate (LIBOR) | CMS Energy Corporation | Term loan facility due June 2020  
Debt Instrument [Line Items]  
Basis spread on variable rate 0.50%
v3.19.2
Financings and Capitalization (Revolving Credit Facilities) (Details)
Jun. 30, 2019
USD ($)
Revolving Credit Facilities September 20, 2025  
Line of Credit Facility [Line Items]  
Amount of Facility $ 18,000,000
Amount Borrowed 0
Letters of Credit Outstanding 8,000,000
Amount Available 10,000,000
$850m Revolving Credit Facilities June 5, 2023 | Consumers Energy Company  
Line of Credit Facility [Line Items]  
Amount of Facility 850,000,000
Amount Borrowed 0
Letters of Credit Outstanding 7,000,000
Amount Available 843,000,000
Revolving Credit Facilities November 23, 2020 | Consumers Energy Company  
Line of Credit Facility [Line Items]  
Amount of Facility 250,000,000
Amount Borrowed 0
Letters of Credit Outstanding 15,000,000
Amount Available 235,000,000
Revolving Credit Facilities September 9, 2019 | Consumers Energy Company  
Line of Credit Facility [Line Items]  
Amount of Facility 30,000,000
Amount Borrowed 0
Letters of Credit Outstanding 30,000,000
Amount Available 0
CMS Energy Corporation | $550m Revolving Credit Facilities June 5, 2023  
Line of Credit Facility [Line Items]  
Amount of Facility 550,000,000
Amount Borrowed 0
Letters of Credit Outstanding 2,000,000
Amount Available 548,000,000
Letter of Credit | Revolving Credit Facilities September 20, 2025  
Line of Credit Facility [Line Items]  
Amount of Facility $ 8,000,000
v3.19.2
Financings and Capitalization (Narrative) (Details) - USD ($)
6 Months Ended 12 Months Ended
Jun. 30, 2019
Jun. 30, 2019
Dec. 31, 2018
Financing And Capitalization [Line Items]      
Amount available for dividend payments $ 4,900,000,000 $ 4,900,000,000  
Common stock dividends from Consumers   $ 272,000,000  
Stock offering program maximum value     $ 250,000,000
Settlement required (in shares) 621,923 621,923  
Consumers Energy Company      
Financing And Capitalization [Line Items]      
Unrestricted retained earnings $ 1,300,000,000 $ 1,300,000,000  
Consumers Energy Company | Commercial Paper      
Financing And Capitalization [Line Items]      
Short-term debt, authorized borrowings   500,000,000  
Short-term debt 0 $ 0  
Forward Contracts      
Financing And Capitalization [Line Items]      
Forward sales contracts aggregate price $ 250,000,000    
v3.19.2
Financings and Capitalization (Forward Stock Contracts) (Details) - $ / shares
Feb. 21, 2019
Nov. 20, 2018
Nov. 16, 2018
Forward Contracts Maturing May 16, 2020      
Debt and Equity Securities, FV-NI [Line Items]      
Number of Shares     2,017,783
Initial forward price (in dollars per share)     $ 49.06
Forward Contracts Maturing May 20, 2020      
Debt and Equity Securities, FV-NI [Line Items]      
Number of Shares   777,899  
Initial forward price (in dollars per share)   $ 50.91  
Forward Contracts Maturing August 21, 2020      
Debt and Equity Securities, FV-NI [Line Items]      
Number of Shares 2,083,340    
Initial forward price (in dollars per share) $ 52.27    
v3.19.2
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Assets    
Restricted cash and cash equivalents $ 22 $ 21
DB SERP cash equivalents 0 1
Derivative instruments 2 1
Liabilities    
Derivative instruments 11 3
Consumers Energy Company    
Assets    
Restricted cash and cash equivalents 16 17
Derivative instruments 2 1
Liabilities    
Derivative instruments 1 0
Fair Value, Inputs, Level 1    
Assets    
Cash equivalents 18 27
Restricted cash and cash equivalents 22 21
Nonqualified deferred compensation plan assets 16 14
Liabilities    
Nonqualified deferred compensation plan liabilities 16 14
Fair Value, Inputs, Level 1 | Consumers Energy Company    
Assets    
Cash equivalents 0 0
Restricted cash and cash equivalents 16 17
Nonqualified deferred compensation plan assets 12 10
Liabilities    
Nonqualified deferred compensation plan liabilities 12 10
Fair Value, Inputs, Level 1 | DB SERP    
Assets    
DB SERP cash equivalents 0 1
Fair Value, Inputs, Level 1 | DB SERP | Consumers Energy Company    
Assets    
DB SERP cash equivalents 0 0
Fair Value, Inputs, Level 1 | Common Stock | Consumers Energy Company    
Assets    
CMS Energy common stock 1 1
Fair Value, Inputs, Level 1, 2 and 3    
Assets    
Total 58 64
Liabilities    
Total 27 17
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company    
Assets    
Total 31 29
Liabilities    
Total $ 13 $ 10
v3.19.2
Fair Value Measurements (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2019
Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Gain (loss) on derivatives $ (3) $ (4)  
Derivative instruments 11 11 $ 3
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Derivative notional amount 95 95  
Cash Flow Hedging | Other Liabilities | Designated as Hedging Instrument      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Derivative instruments 6 6 $ 3
Fair Value Hedging | EnerBank | Designated as Hedging Instrument | Interest Rate Swap Notes Receivable      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Derivative notional amount 61 61  
Fair Value Hedging | Other Liabilities | EnerBank | Designated as Hedging Instrument      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Derivative instruments $ 1 $ 1  
v3.19.2
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Assets    
Securities held to maturity $ 26 $ 21
Liabilities    
EnerBank notes receivable, net of allowance for loan losses 249 233
Other current liabilities 3 1
Long-term debt, current 1,100 1,000
Carrying Amount    
Assets    
Long-term receivables 20 22
Notes receivable 2,231 1,857
Securities held to maturity 26 22
Liabilities    
Long-term debt 12,292 11,589
Long-term payables 28 27
Fair Value    
Assets    
Long-term receivables 20 22
Notes receivable 2,359 1,967
Securities held to maturity 26 21
Liabilities    
Long-term debt 13,112 11,630
Long-term payables 29 27
Consumers Energy Company    
Liabilities    
Long-term debt, current 26 26
Current portion notes receivable related party 7 7
Consumers Energy Company | Carrying Amount    
Assets    
Long-term receivables 20 22
Notes receivable related party 105 106
Liabilities    
Long-term debt 6,572 6,805
Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 20 22
Notes receivable related party 105 106
Liabilities    
Long-term debt 7,102 6,833
EnerBank    
Liabilities    
EnerBank notes receivable, net of allowance for loan losses 249 233
Other Receivables | Consumers Energy Company    
Liabilities    
Accounts receivable, current 14 14
Fair Value, Inputs, Level 1 | Fair Value    
Assets    
Long-term receivables 0 0
Notes receivable 0 0
Securities held to maturity 0 0
Liabilities    
Long-term debt 1,177 459
Long-term payables 0 0
Fair Value, Inputs, Level 1 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 0 0
Notes receivable related party 0 0
Liabilities    
Long-term debt 0 0
Fair Value, Inputs, Level 2 | Fair Value    
Assets    
Long-term receivables 0 0
Notes receivable 0 0
Securities held to maturity 26 21
Liabilities    
Long-term debt 10,053 9,404
Long-term payables 0 0
Fair Value, Inputs, Level 2 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 0 0
Notes receivable related party 0 0
Liabilities    
Long-term debt 5,220 5,066
Fair Value, Inputs, Level 3 | Fair Value    
Assets    
Long-term receivables 20 22
Notes receivable 2,359 1,967
Securities held to maturity 0 0
Liabilities    
Long-term debt 1,882 1,767
Long-term payables 29 27
Fair Value, Inputs, Level 3 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 20 22
Notes receivable related party 105 106
Liabilities    
Long-term debt $ 1,882 $ 1,767
v3.19.2
Financial Instruments (Narrative) (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Consumers Energy Company    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Portion of long-term debt supported by third-party credit enhancements $ 35 $ 35
v3.19.2
Financial Instruments (Schedule Of Investment Securities) (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Held to maturity    
Cost $ 26 $ 22
Unrealized Gains 0 0
Unrealized Losses 0 1
Securities held to maturity $ 26 $ 21
v3.19.2
Notes Receivable (Schedule Of Current And Non-Current Notes Receivable) (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Current    
EnerBank notes receivable, net of allowance for loan losses $ 249 $ 233
Consumers Energy Company    
Current    
DB SERP note receivable – related party 7 7
Non‑current    
DB SERP note receivable – related party 98 99
Total notes receivable 105 106
EnerBank    
Current    
EnerBank notes receivable, net of allowance for loan losses 249 233
Non‑current    
EnerBank notes receivable 1,982 1,624
Total notes receivable $ 2,231 $ 1,857
v3.19.2
Notes Receivable (Narrative) (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
EnerBank    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Notes receivable $ 2,231 $ 1,857
Unearned income 122 102
Delinquent loans 24 21
Consumers Energy Company    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Notes receivable 105 106
Current portion notes receivable related party 7 $ 7
Retail Installment Contracts | EnerBank    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Notes receivable $ 238  
CMS Energy Note Payable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Interest Rate 4.10%  
v3.19.2
Leases - Lessee Leases Narrative (Details)
Jun. 30, 2019
Lessee, Lease, Description [Line Items]  
Finance leases 12 years
Real Estate  
Lessee, Lease, Description [Line Items]  
Operating lease remaining term without extension provisions 42 years
Minimum | Real Estate  
Lessee, Lease, Description [Line Items]  
Operating lease term 3 years
Maximum | Real Estate  
Lessee, Lease, Description [Line Items]  
Operating lease term 60 years
Consumers Energy Company  
Lessee, Lease, Description [Line Items]  
Finance leases 12 years
Consumers Energy Company | Railcars  
Lessee, Lease, Description [Line Items]  
Operating lease remaining term without extension provisions 4 years
Consumers Energy Company | Real Estate  
Lessee, Lease, Description [Line Items]  
Operating lease remaining term without extension provisions 42 years
Consumers Energy Company | Service Vehicles  
Lessee, Lease, Description [Line Items]  
Finance lease remaining term 7 years
Consumers Energy Company | Minimum | Railcars  
Lessee, Lease, Description [Line Items]  
Operating lease term 5 years
Consumers Energy Company | Minimum | Real Estate  
Lessee, Lease, Description [Line Items]  
Operating lease term 3 years
Consumers Energy Company | Minimum | Service Vehicles  
Lessee, Lease, Description [Line Items]  
Finance lease term 5 years
Consumers Energy Company | Minimum | PPAs  
Lessee, Lease, Description [Line Items]  
Operating and finance lease remaining term 1 year
Consumers Energy Company | Maximum | Railcars  
Lessee, Lease, Description [Line Items]  
Operating lease term 15 years
Consumers Energy Company | Maximum | Real Estate  
Lessee, Lease, Description [Line Items]  
Operating lease term 60 years
Consumers Energy Company | Maximum | Service Vehicles  
Lessee, Lease, Description [Line Items]  
Finance lease term 10 years
Consumers Energy Company | Maximum | PPAs  
Lessee, Lease, Description [Line Items]  
Operating and finance lease remaining term 14 years
D.E. Karn Generating Complex | Consumers Energy Company | Gas Pipelines  
Lessee, Lease, Description [Line Items]  
Finance lease term 15 years
Finance leases 3 years
Zeeland | Consumers Energy Company | Gas Pipelines  
Lessee, Lease, Description [Line Items]  
Finance lease term 5 years
Zeeland | Consumers Energy Company | Minimum | Gas Pipelines  
Lessee, Lease, Description [Line Items]  
Finance lease renewal term 5 years
Zeeland | Consumers Energy Company | Maximum | Gas Pipelines  
Lessee, Lease, Description [Line Items]  
Finance lease renewal term 10 years
v3.19.2
Leases - Assets and Liabilities of Lessee (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Operating leases    
Right-of-use assets $ 51  
Lease liabilities    
Current lease liabilities 10  
Noncurrent lease liabilities 41  
Finance leases    
Right-of-use assets 76  
Lease liabilities    
Current lease liabilities 7  
Non-current lease liabilities $ 63  
Weighted-average remaining lease term (in years)    
Operating leases 16 years  
Finance leases 12 years  
Weighted-average discount rate    
Operating leases 3.70%  
Finance leases 2.00%  
Related party lease liability $ 9 $ 10
Consumers Energy Company    
Operating leases    
Right-of-use assets 44  
Lease liabilities    
Current lease liabilities 8  
Noncurrent lease liabilities 35  
Finance leases    
Right-of-use assets 76  
Lease liabilities    
Current lease liabilities 7  
Non-current lease liabilities $ 63  
Weighted-average remaining lease term (in years)    
Operating leases 13 years  
Finance leases 12 years  
Weighted-average discount rate    
Operating leases 3.70%  
Finance leases 2.00%  
Related party lease liability $ 16 $ 14
Related Party Lease    
Weighted-average discount rate    
Related party lease liability 25  
Related party lease liability 1  
Related Party Lease | Consumers Energy Company    
Weighted-average discount rate    
Related party lease liability 25  
Related party lease liability $ 1  
v3.19.2
Leases - Schedule of Lease Costs (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2019
Lessee, Lease, Description [Line Items]    
Operating lease costs $ 3 $ 6
Finance lease costs    
Amortization of right-of-use assets 2 4
Interest on lease liabilities 5 9
Variable lease costs 24 55
Total lease costs 34 74
Consumers Energy Company    
Lessee, Lease, Description [Line Items]    
Operating lease costs 3 5
Finance lease costs    
Amortization of right-of-use assets 2 4
Interest on lease liabilities 5 9
Variable lease costs 24 55
Total lease costs $ 34 $ 73
v3.19.2
Leases - Schedule of Lessee Cash Flows (Details)
$ in Millions
6 Months Ended
Jun. 30, 2019
USD ($)
Lessee, Lease, Description [Line Items]  
Cash used in operating activities for operating leases $ 5
Cash used in operating activities for finance leases 9
Cash used in financing activities for finance leases 3
Consumers Energy Company  
Lessee, Lease, Description [Line Items]  
Cash used in operating activities for operating leases 5
Cash used in operating activities for finance leases 9
Cash used in financing activities for finance leases $ 3
v3.19.2
Leases - Minimum Annual Rental Commitments post Topic 842 (Details)
$ in Millions
Jun. 30, 2019
USD ($)
Operating Leases  
Remainder of 2019 $ 5
2020 11
2021 11
2022 5
2023 3
2024 2
2025 and thereafter 35
Total minimum lease payments 72
Less discount 21
Present value of minimum lease payments 51
Finance Leases  
Remainder of 2019 14
2020 23
2021 22
2022 19
2023 18
2024 16
2025 and thereafter 90
Total minimum lease payments 202
Less discount 132
Present value of minimum lease payments 70
Consumers Energy Company  
Operating Leases  
Remainder of 2019 5
2020 9
2021 9
2022 4
2023 3
2024 2
2025 and thereafter 28
Total minimum lease payments 60
Less discount 17
Present value of minimum lease payments 43
Finance Leases  
Remainder of 2019 14
2020 23
2021 22
2022 19
2023 18
2024 16
2025 and thereafter 90
Total minimum lease payments 202
Less discount 132
Present value of minimum lease payments 70
Pipelines and PPAs  
Finance Leases  
Remainder of 2019 9
2020 17
2021 17
2022 14
2023 13
2024 13
2025 and thereafter 79
Total minimum lease payments 162
Less discount 128
Present value of minimum lease payments 34
Pipelines and PPAs | Consumers Energy Company  
Finance Leases  
Remainder of 2019 9
2020 17
2021 17
2022 14
2023 13
2024 13
2025 and thereafter 79
Total minimum lease payments 162
Less discount 128
Present value of minimum lease payments 34
Other  
Finance Leases  
Remainder of 2019 5
2020 6
2021 5
2022 5
2023 5
2024 3
2025 and thereafter 11
Total minimum lease payments 40
Less discount 4
Present value of minimum lease payments 36
Other | Consumers Energy Company  
Finance Leases  
Remainder of 2019 5
2020 6
2021 5
2022 5
2023 5
2024 3
2025 and thereafter 11
Total minimum lease payments 40
Less discount 4
Present value of minimum lease payments $ 36
v3.19.2
Leases - Minimum Annual Rental Commitments pre Topic 842 (Details)
$ in Millions
Dec. 31, 2018
USD ($)
Capital Leases  
2019 $ 14
2020 11
2021 11
2022 8
2023 6
2024 and thereafter 21
Total minimum lease payments 71
Less discount 22
Present value of minimum lease payments 49
Less current portion 9
Non-current portion 40
Operating Leases  
2019 16
2020 15
2021 15
2022 8
2023 5
2024 and thereafter 38
Total minimum lease payments 97
Consumers Energy Company  
Capital Leases  
2019 14
2020 11
2021 11
2022 8
2023 6
2024 and thereafter 21
Total minimum lease payments 71
Less discount 22
Present value of minimum lease payments 49
Less current portion 9
Non-current portion 40
Operating Leases  
2019 14
2020 14
2021 13
2022 7
2023 5
2024 and thereafter 32
Total minimum lease payments $ 85
v3.19.2
Leases - Lessor Leases Narrative (Details)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Power Sales Agreement      
Lessor, Lease, Description [Line Items]      
Leasing income   $ 42 $ 90
Variable lease income   $ 29 $ 63
Power Sales Agreement | Minimum      
Lessor, Lease, Description [Line Items]      
Operating leases remaining term 3 years    
Power Sales Agreement | Maximum      
Lessor, Lease, Description [Line Items]      
Operating leases remaining term 24 years    
Natural Gas Processing Plant | Consumers Energy Company      
Lessor, Lease, Description [Line Items]      
Direct financing lease term 20 years 20 years 20 years
CMS Energy Subsidiary | Natural Gas Transportation Agreement | Consumers Energy Company      
Lessor, Lease, Description [Line Items]      
Direct financing lease term 20 years 20 years 20 years
v3.19.2
Leases - Schedule of Future Payments to be Received (Details)
$ in Millions
Jun. 30, 2019
USD ($)
Operating Leases  
Remainder of 2019 $ 28
2020 54
2021 54
2022 48
2023 44
2024 44
2025 and thereafter 62
Total minimum lease payments 334
Direct Financing Leases  
Remainder of 2019 0
2020 0
2021 0
2022 0
2023 0
2024 0
2025 and thereafter 10
Total minimum lease payments 10
Less unearned income 5
Present value of lease payments recognized as lease receivables 5
Consumers Energy Company  
Direct Financing Leases  
Remainder of 2019 1
2020 1
2021 1
2022 1
2023 1
2024 1
2025 and thereafter 19
Total minimum lease payments 25
Less unearned income 15
Present value of lease payments recognized as lease receivables $ 10
v3.19.2
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
DB Pension Plans        
Net periodic cost (credit)        
Service cost $ 10 $ 12 $ 20 $ 24
Interest cost 24 23 49 45
Expected return on plan assets (41) (37) (81) (74)
Amortization of:        
Net loss 12 19 24 37
Prior service cost (credit) 1 0 1 1
Net periodic cost (credit) 6 17 13 33
DB Pension Plans | Consumers Energy Company        
Net periodic cost (credit)        
Service cost 10 11 20 23
Interest cost 23 21 46 42
Expected return on plan assets (38) (34) (76) (69)
Amortization of:        
Net loss 11 18 23 36
Prior service cost (credit) 1 0 1 1
Net periodic cost (credit) 7 16 14 33
OPEB Plan        
Net periodic cost (credit)        
Service cost 3 5 7 9
Interest cost 10 9 20 18
Expected return on plan assets (22) (25) (44) (49)
Amortization of:        
Net loss 6 4 13 8
Prior service cost (credit) (15) (17) (31) (34)
Net periodic cost (credit) (18) (24) (35) (48)
OPEB Plan | Consumers Energy Company        
Net periodic cost (credit)        
Service cost 4 4 7 8
Interest cost 10 9 20 17
Expected return on plan assets (20) (23) (41) (46)
Amortization of:        
Net loss 6 4 13 8
Prior service cost (credit) (16) (16) (31) (32)
Net periodic cost (credit) $ (16) $ (22) $ (32) $ (45)
v3.19.2
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($)
$ in Millions
1 Months Ended 6 Months Ended
Mar. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Dec. 31, 2017
Income Taxes [Line Items]          
U.S. federal income tax rate   21.00% 21.00%    
Increase (decrease) in income taxes from:          
State and local income taxes, net of federal effect   5.40% 5.60%    
TCJA excess deferred taxes   (3.50%) (3.40%)    
Production tax credits   (2.50%) (1.70%)    
Accelerated flow-through of regulatory tax benefits   (1.50%) (5.00%)    
Research and development tax credits, net   (0.20%) (2.20%)    
Other, net   (0.60%) 0.30%    
Effective tax rate   18.10% 14.60%    
Regulatory liabilities, noncurrent   $ 3,786   $ 3,681  
Consumers Energy Company          
Income Taxes [Line Items]          
U.S. federal income tax rate   21.00% 21.00%    
Increase (decrease) in income taxes from:          
State and local income taxes, net of federal effect   5.70% 5.80%    
TCJA excess deferred taxes   (3.20%) (3.20%)    
Production tax credits   (1.30%) (1.50%)    
Accelerated flow-through of regulatory tax benefits   (1.80%) (4.70%)    
Research and development tax credits, net   (0.20%) (2.10%)    
Other, net   (0.40%) 0.00%    
Effective tax rate   19.80% 15.30%    
Reduction of income tax expense   $ 7 $ 22    
Regulatory liabilities, noncurrent   3,786   $ 3,681  
Research Tax Credit Carryforward | Consumers Energy Company          
Increase (decrease) in income taxes from:          
Increase in credit $ 8        
Plant, Property, And Equipment (Subject To Normalization) | Consumers Energy Company          
Increase (decrease) in income taxes from:          
Regulatory liabilities         $ 1,800
TCJA Reserve For Refund | Consumers Energy Company          
Increase (decrease) in income taxes from:          
Regulatory liabilities, noncurrent   $ 53      
v3.19.2
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Income available to common stockholders        
Net income $ 94 $ 140 $ 307 $ 381
Income Attributable to Noncontrolling Interests 1 1 1 1
Net Income Available to Common Stockholders $ 93 $ 139 $ 306 $ 380
Average common shares outstanding        
Weighted average shares - basic (in shares) 282.9 282.1 282.9 281.8
Dilutive nonvested stock awards (in shares) 0.6 0.5 0.6 0.6
Dilutive forward equity sale contracts (in shares) 0.5 0.0 0.3 0.0
Weighted average shares - diluted (in shares) 284.0 282.6 283.8 282.4
Net income per average common share available to common stockholders        
Basic earnings per average common share (in dollars per share) $ 0.33 $ 0.49 $ 1.08 $ 1.35
Diluted earnings per average common share (in dollars per share) $ 0.33 $ 0.49 $ 1.08 $ 1.35
v3.19.2
Revenue (Components Of Operating Revenue) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers $ 1,347 $ 1,413 $ 3,304 $ 3,286
Leasing income 42   90  
Leasing income   37   76
Financing income 56 40 110 79
Alternative revenue programs   2   4
Total operating revenue 1,445 1,492 3,504 3,445
Other        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 16 24 35 48
Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 1,331 1,389 3,269 3,238
Financing income 3 4 8 8
Alternative revenue programs   2   4
Total operating revenue 1,334 1,395 3,277 3,250
Consumers Energy Company | Residential        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 621 669 1,733 1,707
Consumers Energy Company | Commercial        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 420 444 945 967
Consumers Energy Company | Industrial        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 182 179 369 346
Consumers Energy Company | Other        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 108 97 222 218
Operating Segments | Electric Utility        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 1,026 1,087 2,126 2,163
Financing income 1 2 4 4
Total operating revenue 1,027 1,089 2,130 2,167
Operating Segments | Gas Utility        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 305 302 1,143 1,075
Financing income 2 2 4 4
Alternative revenue programs   2   4
Total operating revenue 307 306 1,147 1,083
Operating Segments | Enterprises        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 16 24 35 48
Leasing income 42   90  
Leasing income   37   76
Total operating revenue 58 61 125 124
Operating Segments | Enterprises | Other        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 16 24 35 48
Operating Segments | Consumers Energy Company | Electric Utility        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 1,026 1,087 2,126 2,163
Financing income 1 2 4 4
Total operating revenue 1,027 1,089 2,130 2,167
Operating Segments | Consumers Energy Company | Electric Utility | Residential        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 423 475 946 976
Operating Segments | Consumers Energy Company | Electric Utility | Commercial        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 362 386 713 747
Operating Segments | Consumers Energy Company | Electric Utility | Industrial        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 174 170 336 313
Operating Segments | Consumers Energy Company | Electric Utility | Other        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 67 56 131 127
Operating Segments | Consumers Energy Company | Gas Utility        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 305 302 1,143 1,075
Financing income 2 2 4 4
Alternative revenue programs   2   4
Total operating revenue 307 306 1,147 1,083
Operating Segments | Consumers Energy Company | Gas Utility | Residential        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 198 194 787 731
Operating Segments | Consumers Energy Company | Gas Utility | Commercial        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 58 58 232 220
Operating Segments | Consumers Energy Company | Gas Utility | Industrial        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 8 9 33 33
Operating Segments | Consumers Energy Company | Gas Utility | Other        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 41 41 91 91
Operating Segments | Consumers Energy Company | Enterprises        
Disaggregation of Revenue [Line Items]        
Total operating revenue 0 0 0 0
Other reconciling items        
Disaggregation of Revenue [Line Items]        
Financing income 53 36 102 71
Total operating revenue 53 36 102 71
Other reconciling items | Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Total operating revenue $ 0 $ 0 $ 0 $ 0
v3.19.2
Revenue (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]          
Uncollectable expense $ 6 $ 7 $ 12 $ 14  
Consumers Energy Company          
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]          
Uncollectable expense 6 $ 7 12 $ 14  
Unbilled receivables $ 257   $ 257   $ 409
v3.19.2
Cash And Cash Equivalents (Schedule Of Cash And Cash Equivalents, Including Restricted Amounts) (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Jun. 30, 2018
Dec. 31, 2017
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 312 $ 153    
Restricted cash and cash equivalents 22 21    
Other non-current assets 0 1    
Cash and cash equivalents, including restricted amounts 334 175 $ 501 $ 204
Consumers Energy Company        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents 196 39    
Restricted cash and cash equivalents 16 17    
Cash and cash equivalents, including restricted amounts $ 212 $ 56 $ 276 $ 65
v3.19.2
Reportable Segments (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Segment Reporting Information [Line Items]          
Operating Revenue $ 1,445 $ 1,492 $ 3,504 $ 3,445  
Net income (loss) available to common stockholders 93 139 306 380  
Plant, property, and equipment, gross 24,263   24,263   $ 24,400
Total Assets 25,292   25,292   24,529
Consumers Energy Company          
Segment Reporting Information [Line Items]          
Operating Revenue 1,334 1,395 3,277 3,250  
Net income (loss) available to common stockholder 97 151 323 393  
Plant, property, and equipment, gross 23,833   23,833   23,963
Total Assets 22,416   22,416   22,025
Operating Segments | Electric Utility          
Segment Reporting Information [Line Items]          
Operating Revenue 1,027 1,089 2,130 2,167  
Net income (loss) available to common stockholders 90 130 195 269  
Plant, property, and equipment, gross 15,660   15,660   16,027
Total Assets 14,396   14,396   14,079
Operating Segments | Electric Utility | Consumers Energy Company          
Segment Reporting Information [Line Items]          
Operating Revenue 1,027 1,089 2,130 2,167  
Net income (loss) available to common stockholder 90 130 195 269  
Plant, property, and equipment, gross 15,660   15,660   16,027
Total Assets 14,459   14,459   14,143
Operating Segments | Gas Utility          
Segment Reporting Information [Line Items]          
Operating Revenue 307 306 1,147 1,083  
Net income (loss) available to common stockholders 8 21 129 124  
Plant, property, and equipment, gross 8,154   8,154   7,919
Total Assets 7,890   7,890   7,806
Operating Segments | Gas Utility | Consumers Energy Company          
Segment Reporting Information [Line Items]          
Operating Revenue 307 306 1,147 1,083  
Net income (loss) available to common stockholder 8 21 129 124  
Plant, property, and equipment, gross 8,154   8,154   7,919
Total Assets 7,937   7,937   7,853
Operating Segments | Enterprises          
Segment Reporting Information [Line Items]          
Operating Revenue 58 61 125 124  
Net income (loss) available to common stockholders 10 14 11 29  
Plant, property, and equipment, gross 405   405   412
Total Assets 522   522   540
Operating Segments | Enterprises | Consumers Energy Company          
Segment Reporting Information [Line Items]          
Operating Revenue 0 0 0 0  
Other reconciling items          
Segment Reporting Information [Line Items]          
Operating Revenue 53 36 102 71  
Net income (loss) available to common stockholders (15) (26) (29) (42)  
Plant, property, and equipment, gross 44   44   42
Total Assets 2,484   2,484   2,104
Other reconciling items | Consumers Energy Company          
Segment Reporting Information [Line Items]          
Operating Revenue 0 0 0 0  
Net income (loss) available to common stockholder (1) $ 0 (1) $ 0  
Plant, property, and equipment, gross 19   19   17
Total Assets $ 20   $ 20   $ 29
v3.19.2
Asset Sales - Schedule of Assets Held For Sale (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Total assets $ 40 $ 0
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Plant, property, and equipment, net 32  
Construction work in progress 8  
Total assets 40  
Consumers Energy Company    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Total assets $ 40 $ 0
v3.19.2
Asset Sales - Narrative (Details)
$ in Millions
3 Months Ended
Jun. 30, 2019
USD ($)
DIG's High-Voltage Equipment to ITC | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Gain on disposition of assets $ 16
v3.19.2
Label Element Value
Retained Earnings [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption $ 8,000,000
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 0
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 0
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 0
Retained Earnings [Member] | Consumers Energy Company [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 0
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 19,000,000
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 0
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 0
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 0
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 0
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 0
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (11,000,000)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Consumers Energy Company [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 0
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 0
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 0
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (5,000,000)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | Consumers Energy Company [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 0
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 0
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (12,000,000)
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption $ 0