CMS ENERGY CORP, 10-Q filed on 10/28/2021
Quarterly Report
v3.21.2
Cover page - shares
 9 Months Ended
Sep. 30, 2021
Oct. 11, 2021
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2021  
Document Transition Report false  
Entity File Number 1-9513  
Entity Registrant Name CMS ENERGY CORPORATION  
Entity Tax Identification Number 38-2726431  
Entity Incorporation, State or Country Code MI  
Entity Address, Address Line One One Energy Plaza  
Entity Address, City or Town Jackson  
Entity Address, State or Province MI  
Entity Address, 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  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   289,697,389
Entity Central Index Key 0000811156  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Consumers Energy Company    
Document Information [Line Items]    
Entity File Number 1-5611  
Entity Registrant Name CONSUMERS ENERGY COMPANY  
Entity Tax Identification Number 38-0442310  
Entity Incorporation, State or Country Code MI  
Entity Address, Address Line One One Energy Plaza  
Entity Address, City or Town Jackson  
Entity Address, State or Province MI  
Entity Address, 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  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   84,108,789
Entity Central Index Key 0000201533  
CMS Energy Corporation Common Stock, $0.01 par value    
Document Information [Line Items]    
Title of 12(b) Security CMS Energy Corporation Common Stock  
Trading Symbol CMS  
Security Exchange Name NYSE  
CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078    
Document Information [Line Items]    
Title of 12(b) Security 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 12(b) Security 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 12(b) Security CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079  
Trading Symbol CMSD  
Security Exchange Name NYSE  
CMS Energy Corporation Depositary Shares, each representing a 1/1,000th interest in a share of 4.200% Cumulative Redeemable Perpetual Preferred Stock, Series C    
Document Information [Line Items]    
Title of 12(b) Security CMS Energy Corporation Depositary Shares  
Trading Symbol CMS PRC  
Security Exchange Name NYSE  
Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series    
Document Information [Line Items]    
Title of 12(b) Security Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series  
Trading Symbol CMS-PB  
Security Exchange Name NYSE  
v3.21.2
Consolidated Statements of Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Operating Revenue $ 1,725 $ 1,507 $ 5,296 $ 4,691
Operating Expenses        
Fuel for electric generation 184 108 438 274
Purchased power – related parties 21 13 56 45
Maintenance and other operating expenses 410 281 1,076 885
Depreciation and amortization 250 226 832 763
General taxes 81 74 290 262
Total operating expenses 1,465 1,167 4,354 3,768
Operating Income 260 340 942 923
Other Income (Expense)        
Interest income 0 1 2 3
Interest and dividend income – related parties 0 0 0 7
Allowance for equity funds used during construction 2 1 5 4
Income from equity method investees 4 0 8 1
Non-operating retirement benefits, net 40 29 121 90
Other income 1 1 7 3
Other expense (3) (4) (7) (9)
Total other income 44 28 136 99
Interest Charges        
Interest on long-term debt 120 124 359 361
Interest expense – related parties 3 3 9 9
Other interest expense 3 4 8 10
Allowance for borrowed funds used during construction (1) (1) (2) (2)
Total interest charges 125 130 374 378
Income Before Income Taxes 179 238 704 644
Income Tax Expense 26 40 90 88
Income From Continuing Operations 153 198 614 556
Income From Discontinued Operations, Net of Tax of $9, $4, $25, and $10 30 12 82 34
Net Income 183 210 696 590
Loss Attributable to Noncontrolling Interests (6) (8) (18) (7)
Net Income attributable to CMS Energy 189 218 714 597
Preferred Stock Dividends 3 0 3 0
Net Income Available to Common Stockholders $ 186 $ 218 $ 711 $ 597
Basic earnings per average common share, income from continuing operations per average common share available to common stockholders (in dollars per share) $ 0.54 $ 0.72 $ 2.18 $ 1.98
Basic earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) 0.10 0.04 0.28 0.12
Basic earnings per average common share (in dollars per share) 0.64 0.76 2.46 2.10
Diluted earnings per average common share, income from continuing operations per average common share available to common stockholders (in dollars per share) 0.54 0.72 2.18 1.97
Diluted earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) 0.10 0.04 0.28 0.12
Diluted earnings per average common share (in dollars per share) $ 0.64 $ 0.76 $ 2.46 $ 2.09
Consumers Energy Company        
Operating Revenue $ 1,644 $ 1,450 $ 5,074 $ 4,524
Operating Expenses        
Fuel for electric generation 147 85 340 207
Purchased and interchange power 450 420 1,200 1,121
Purchased power – related parties 21 13 56 45
Cost of gas sold 53 33 425 383
Maintenance and other operating expenses 390 266 1,021 846
Depreciation and amortization 241 223 804 753
General taxes 77 72 277 256
Total operating expenses 1,379 1,112 4,123 3,611
Operating Income 265 338 951 913
Other Income (Expense)        
Interest income 1 1 2 3
Interest and dividend income – related parties 1 2 4 4
Allowance for equity funds used during construction 2 1 5 4
Non-operating retirement benefits, net 37 28 113 85
Other income 1 1 7 3
Other expense (3) (4) (7) (9)
Total other income 39 29 124 90
Interest Charges        
Interest on long-term debt 74 76 220 227
Interest expense – related parties 3 3 9 9
Other interest expense 2 4 6 9
Allowance for borrowed funds used during construction (1) (1) (2) (2)
Total interest charges 78 82 233 243
Income Before Income Taxes 226 285 842 760
Income Tax Expense 40 55 130 135
Net Income 186 230 712 625
Net Income attributable to CMS Energy 186 230 712 625
Preferred Stock Dividends 0 0 1 1
Net Income Available to Common Stockholders 186 230 711 624
Purchased and interchange power        
Operating Expenses        
Cost of goods and services sold 462 430 1,230 1,149
Cost of gas sold        
Operating Expenses        
Cost of goods and services sold $ 57 $ 35 $ 432 $ 390
v3.21.2
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Net Income $ 183 $ 210 $ 696 $ 590
Retirement Benefits Liability        
Net loss arising during the period, net of tax 0 (5) 0 (5)
Settlement arising during the period, net of tax 0 1 0 1
Amortization of net actuarial loss, net of tax 1 1 5 3
Amortization of prior service credit 0 0 (1) (1)
Derivatives        
Unrealized gain (loss) on derivative instruments, net of tax of $—, $—, $—, and $(1) 0 (1) 1 (5)
Reclassification adjustments included in net income, net of tax of $—, $—, $1, and $— 0 1 0 1
Other Comprehensive Income (Loss) 1 (3) 5 (6)
Comprehensive Income 184 207 701 584
Comprehensive Loss Attributable to Noncontrolling Interests (6) (8) (18) (7)
Comprehensive Income Attributable to CMS Energy 190 215 719 591
Consumers Energy Company        
Net Income 186 230 712 625
Retirement Benefits Liability        
Amortization of net actuarial loss, net of tax 1 1 2 1
Derivatives        
Other Comprehensive Income (Loss) 1 1 2 1
Comprehensive Income $ 187 $ 231 $ 714 $ 626
v3.21.2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Net gain arising during the period, TAX $ 0 $ (2) $ 0 $ (2)
Settlement arising during the period, TAX 0 0 0 0
Amortization of net actuarial loss, TAX 0 0 1 1
Amortization of prior service credit, TAX 0 0 0 0
Unrealized loss on derivative instruments, TAX 0 0 0 (1)
Reclassification adjustments included in net income , TAX 0 0 1 0
Consumers Energy Company        
Amortization of net actuarial loss, TAX $ 0 $ 0 $ 0 $ 1
v3.21.2
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Cash Flows from Operating Activities    
Net Income $ 696 $ 590
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation and amortization 832 763
Deferred income taxes and investment tax credits 110 140
Other non‑cash operating activities and reconciling adjustments (71) (22)
Pension contributions 0 (531)
Net cash provided by (used in) discontinued operations (111) 35
Changes in assets and liabilities    
Accounts receivable and accrued revenue 129 221
Inventories (185) (34)
Accounts payable and accrued rate refunds 84 30
Other current assets and liabilities (30) (91)
Other non‑current assets and liabilities 29 43
Net cash provided by operating activities 1,483 1,144
Cash Flows from Investing Activities    
Capital expenditures (excludes assets placed under finance lease) (1,442) (1,693)
Net cash provided by (used in) discontinued operations 78 (505)
Cost to retire property and other investing activities (96) (100)
Net cash used in investing activities (1,460) (2,298)
Cash Flows from Financing Activities    
Proceeds from issuance of debt 300 2,353
Retirement of debt (18) (1,294)
Decrease in notes payable 0 (90)
Issuance of common stock, net of issuance costs 23 107
Issuance of preferred stock, net of issuance costs 224 0
Payment of dividends on common and preferred stock (380) (351)
Proceeds from the sale of membership interest in VIE to tax equity investor 0 417
Contribution from noncontrolling interest 1 31
Net cash provided by (used in) discontinued operations (84) 456
Other financing costs (38) (74)
Net cash provided by financing activities 28 1,555
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts 51 401
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 185 157
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 236 558
Non‑cash transactions    
Capital expenditures not paid 172 140
Consumers Energy Company    
Cash Flows from Operating Activities    
Net Income 712 625
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation and amortization 804 753
Deferred income taxes and investment tax credits 129 136
Other non‑cash operating activities and reconciling adjustments (65) (21)
Pension contributions 0 (518)
Changes in assets and liabilities    
Accounts receivable and accrued revenue 137 190
Inventories (186) (34)
Accounts payable and accrued rate refunds 60 29
Other current assets and liabilities (24) (103)
Other non‑current assets and liabilities 16 28
Net cash provided by operating activities 1,583 1,085
Cash Flows from Investing Activities    
Capital expenditures (excludes assets placed under finance lease) (1,433) (1,595)
Cost to retire property and other investing activities (86) (105)
Net cash used in investing activities (1,519) (1,700)
Cash Flows from Financing Activities    
Proceeds from issuance of debt 300 1,528
Retirement of debt (13) (773)
Decrease in notes payable 0 (90)
Decrease in notes payable – related parties (307) 0
Stockholder contribution 575 650
Payment of dividends on common and preferred stock (571) (450)
Other financing costs (28) (55)
Net cash provided by financing activities (44) 810
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts 20 195
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 35 28
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 55 223
Non‑cash transactions    
Capital expenditures not paid $ 168 $ 156
v3.21.2
Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Current Assets    
Cash and cash equivalents $ 102 $ 32
Restricted cash and cash equivalents 30 17
Accounts receivable and accrued revenue 713 853
Accounts receivable – related parties 17 19
Accrued gas revenue 5 0
Inventories at average cost    
Gas in underground storage 556 353
Materials and supplies 173 155
Generating plant fuel stock 31 68
Deferred property taxes 215 332
Regulatory assets 11 42
Assets held for sale 494 429
Prepayments and other current assets 130 104
Total current assets 2,477 2,404
Plant, Property, and Equipment    
Plant, property, and equipment, gross 29,450 27,870
Less accumulated depreciation and amortization 8,489 7,938
Plant, property, and equipment, net 20,961 19,932
Construction work in progress 973 1,085
Total plant, property, and equipment 21,934 21,017
Other Non‑current Assets    
Regulatory assets 2,588 2,653
Accounts receivable 18 19
Investments 73 70
Assets held for sale 2,606 2,680
Other 817 823
Total other non‑current assets 6,102 6,245
Total Assets 30,513 29,666
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 585 591
Accounts payable 787 661
Accounts payable – related parties 8 7
Accrued rate refunds 9 20
Accrued interest 112 104
Accrued taxes 146 454
Regulatory liabilities 191 151
Liabilities held for sale 1,233 953
Other current liabilities 183 133
Total current liabilities 3,254 3,074
Non‑current Liabilities    
Long-term debt 12,027 11,744
Non-current portion of finance leases and other financing 48 56
Regulatory liabilities 3,758 3,744
Postretirement benefits 147 152
Asset retirement obligations 599 553
Deferred investment tax credit 113 115
Deferred income taxes 2,014 1,863
Liabilities held for sale 1,523 1,894
Other non‑current liabilities 377 394
Total non‑current liabilities 20,606 20,515
Commitments and Contingencies
Common stockholders’ equity    
Common stock 3 3
Other paid-in capital 5,397 5,365
Accumulated other comprehensive loss (81) (86)
Retained earnings 547 214
Total common stockholders’ equity 5,866 5,496
Cumulative preferred stock 224 0
Total stockholders’ equity 6,090 5,496
Noncontrolling interests 563 581
Total equity 6,653 6,077
Total Liabilities and Equity 30,513 29,666
Consumers Energy Company    
Current Assets    
Cash and cash equivalents 29 20
Restricted cash and cash equivalents 26 15
Accounts receivable and accrued revenue 683 828
Accounts receivable – related parties 8 18
Accrued gas revenue 5 0
Inventories at average cost    
Gas in underground storage 556 353
Materials and supplies 168 149
Generating plant fuel stock 31 67
Deferred property taxes 215 332
Regulatory assets 11 42
Prepayments and other current assets 112 68
Total current assets 1,844 1,892
Plant, Property, and Equipment    
Plant, property, and equipment, gross 28,331 26,757
Less accumulated depreciation and amortization 8,367 7,844
Plant, property, and equipment, net 19,964 18,913
Construction work in progress 930 1,058
Total plant, property, and equipment 20,894 19,971
Other Non‑current Assets    
Regulatory assets 2,588 2,653
Accounts receivable 24 25
Accounts and notes receivable – related parties 103 105
Other 736 753
Total other non‑current assets 3,451 3,536
Total Assets 26,189 25,399
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 377 384
Notes payable – related parties 0 307
Accounts payable 745 636
Accounts payable – related parties 13 7
Accrued rate refunds 9 20
Accrued interest 80 72
Accrued taxes 158 458
Regulatory liabilities 191 151
Other current liabilities 128 104
Total current liabilities 1,701 2,139
Non‑current Liabilities    
Long-term debt 8,028 7,742
Non-current portion of finance leases and other financing 48 56
Regulatory liabilities 3,758 3,744
Postretirement benefits 108 112
Asset retirement obligations 576 530
Deferred investment tax credit 113 115
Deferred income taxes 2,265 2,094
Other non‑current liabilities 318 311
Total non‑current liabilities 15,214 14,704
Commitments and Contingencies
Common stockholders’ equity    
Common stock 841 841
Other paid-in capital 6,599 6,024
Accumulated other comprehensive loss (34) (36)
Retained earnings 1,831 1,690
Total common stockholders’ equity 9,237 8,519
Cumulative preferred stock 37 37
Total stockholders’ equity 9,274 8,556
Total equity 9,274 8,556
Total Liabilities and Equity $ 26,189 $ 25,399
v3.21.2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Accounts receivable and accrued revenue, ALLOWANCE $ 24 $ 29
Common stock authorized (in shares) 350,000,000.0 350,000,000.0
Common stock outstanding (in shares) 289,700,000 288,900,000
Preferred stock authorized (in shares) 9,200,000  
Preferred stock outstanding (in shares) 9,200,000  
Consumers Energy Company    
Accounts receivable and accrued revenue, ALLOWANCE $ 24 $ 29
Common stock authorized (in shares) 125,000,000.0 125,000,000.0
Common stock outstanding (in shares) 84,100,000 84,100,000
Preferred stock authorized (in shares) 7,500,000 7,500,000
Preferred stock outstanding (in shares) 400,000 400,000
v3.21.2
Consolidated Statements of Changes In Equity (Unaudited) - USD ($)
$ in Millions
Total
Common Stock
Other Paid-in Capital
Accumulated Other Comprehensive Loss
Retirement benefits liability
Derivative instruments
Retained Earnings (Accumulated Deficit)
Retained Earnings (Accumulated Deficit)
Cumulative Effect, Period of Adoption, Adjustment
Cumulative Preferred Stock
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
Retained Earnings (Accumulated Deficit)
Consumers Energy Company
Cumulative Preferred Stock
Total Equity at Beginning of Period at Dec. 31, 2019 $ 5,055 $ 3 $ 5,113 $ (73) $ (69) $ (4) $ (25) $ (51) $ 0 $ 37 $ 7,737 $ 841 $ 5,374 $ (28) $ (28) $ 1,513 $ 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Stock issued     125           0                
Common stock repurchased     (13)                            
Stockholder contribution                         650        
Net loss arising during the period, net of tax (5)       (5)                        
Settlement arising during the period, net of tax 1       1                        
Amortization of net actuarial loss 3       3           1       1    
Amortization of prior service credit (1)       (1)                        
Unrealized gain (loss) on derivative instruments (5)         (5)                      
Reclassification adjustments included in net income 1         1                      
Net Income 590           597     (7) 625         625  
Dividends declared on common stock             (350)                 (449)  
Dividends declared on preferred stock             0                 (1)  
Impact of purchase and consolidation of VIE                   101              
Sale of membership interest in VIE to tax equity investor                   417              
Contribution from noncontrolling interest                   31              
Distributions and other changes in noncontrolling interests                   (1)              
Total Equity at End of Period at Sep. 30, 2020 $ 5,898 3 5,225 (79) (71) (8) 171   0 578 8,563 841 6,024 (27) (27) 1,688 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Dividends declared per common share (in dollars per share) $ 1.2225                                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0                                
Total Equity at Beginning of Period at Jun. 30, 2020 $ 5,251 3 5,217 (76) (68) (8) 70 0 0 37 8,505 841 6,024 (28) (28) 1,631 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Stock issued     8           0                
Common stock repurchased     0                            
Stockholder contribution                         0        
Net loss arising during the period, net of tax (5)       (5)                        
Settlement arising during the period, net of tax 1       1                        
Amortization of net actuarial loss 1       1           1       1    
Amortization of prior service credit 0       0                        
Unrealized gain (loss) on derivative instruments (1)         (1)                      
Reclassification adjustments included in net income 1         1                      
Net Income 210           218     (8) 230         230  
Dividends declared on common stock             (117)                 (173)  
Dividends declared on preferred stock             0                 0  
Impact of purchase and consolidation of VIE                   101              
Sale of membership interest in VIE to tax equity investor                   417              
Contribution from noncontrolling interest                   31              
Distributions and other changes in noncontrolling interests                   0              
Total Equity at End of Period at Sep. 30, 2020 $ 5,898 3 5,225 (79) (71) (8) 171   0 578 8,563 841 6,024 (27) (27) 1,688 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Dividends declared per common share (in dollars per share) $ 0.4075                                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0                                
Total Equity at Beginning of Period at Dec. 31, 2020 $ 6,077 3 5,365 (86) (80) (6) 214 0 0 581 8,556 841 6,024 (36) (36) 1,690 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Stock issued     41           224                
Common stock repurchased     (9)                            
Stockholder contribution                         575        
Net loss arising during the period, net of tax 0       0                        
Settlement arising during the period, net of tax 0       0                        
Amortization of net actuarial loss 5       5           2       2    
Amortization of prior service credit (1)       (1)                        
Unrealized gain (loss) on derivative instruments 1         1                      
Reclassification adjustments included in net income 0         0                      
Net Income 696           714     (18) 712         712  
Dividends declared on common stock             (378)                 (570)  
Dividends declared on preferred stock             (3)                 (1)  
Impact of purchase and consolidation of VIE                   0              
Sale of membership interest in VIE to tax equity investor                   0              
Contribution from noncontrolling interest                   1              
Distributions and other changes in noncontrolling interests                   (1)              
Total Equity at End of Period at Sep. 30, 2021 $ 6,653 3 5,397 (81) (76) (5) 547   224 563 9,274 841 6,599 (34) (34) 1,831 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Dividends declared per common share (in dollars per share) $ 1.3050                                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0.3063                                
Total Equity at Beginning of Period at Jun. 30, 2021 $ 6,366 3 5,389 (82) (77) (5) 487 $ 0 0 569 8,977 841 6,299 (35) (35) 1,835 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Stock issued     8           224                
Common stock repurchased     0                            
Stockholder contribution                         300        
Net loss arising during the period, net of tax 0       0                        
Settlement arising during the period, net of tax 0       0                        
Amortization of net actuarial loss 1       1           1       1    
Amortization of prior service credit 0       0                        
Unrealized gain (loss) on derivative instruments 0         0                      
Reclassification adjustments included in net income 0         0                      
Net Income 183           189     (6) 186         186  
Dividends declared on common stock             (126)                 (190)  
Dividends declared on preferred stock             (3)                 0  
Impact of purchase and consolidation of VIE                   0              
Sale of membership interest in VIE to tax equity investor                   0              
Contribution from noncontrolling interest                   0              
Distributions and other changes in noncontrolling interests                   0              
Total Equity at End of Period at Sep. 30, 2021 $ 6,653 $ 3 $ 5,397 $ (81) $ (76) $ (5) $ 547   $ 224 $ 563 $ 9,274 $ 841 $ 6,599 $ (34) $ (34) $ 1,831 $ 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                  
Dividends declared per common share (in dollars per share) $ 0.4350                                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0.3063                                
v3.21.2
Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Income Statement [Abstract]        
Tax effect of discontinued operation $ 9 $ 4 $ 25 $ 10
v3.21.2
Regulatory Matters
 9 Months Ended
Sep. 30, 2021
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 MPSC’s authority to approve voluntary revenue refunds, and other matters. Consumers is unable to predict the outcome of these appeals.
Electric Rate Case: In June 2021, the MPSC Staff filed testimony in the general electric rate case that Consumers filed in March 2021. In its testimony, the MPSC Staff recommended the disallowance of cost recovery for certain categories of recently completed capital expenditures incurred by Consumers. In October 2021, the administrative law judge issued a proposal for decision supporting the MPSC Staff’s recommended disallowance. At September 30, 2021, Consumers had incurred $39 million of such expenditures. A material disallowance of incurred capital costs could negatively affect CMS Energy’s and
Consumers’ results of operations. Consumers cannot predict the outcome of this proceeding. The MPSC is expected to issue a final order in December 2021.
Reserve for Customer Refunds: In December 2020, the MPSC issued an order authorizing Consumers to refund $28 million voluntarily to utility customers. In May 2021, the MPSC approved a filing submitted by Consumers that proposed the refund take the form of incremental spending in 2021 above amounts included in rates on various programs, including electric service restoration and gas and electric technology expenses. If Consumers does not achieve the incremental spending, the remaining balance will be provided to electric or gas utility customers through a bill credit. Consumers had recorded a current regulatory liability of $8 million at September 30, 2021 and $28 million at December 31, 2020 related to this voluntary refund.
Voluntary Transmission Asset Sale Gain Share: In October 2020, Consumers completed a sale of the electric utility’s remaining transmission equipment to METC. In December 2020, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with electric utility customers through incremental service restoration spending in 2021; this application was approved by the MPSC in February 2021. As a result, the $14 million gain was recorded on Consumers’ consolidated balance sheets as a current regulatory liability at December 31, 2020 and was shared with customers in 2021.
Energy Waste Reduction Plan Incentive: Consumers filed its 2020 energy waste reduction reconciliation in May 2021, requesting the MPSC’s approval to collect from customers the maximum performance incentive of $42 million for exceeding statutory savings targets in 2020. Consumers recognized incentive revenue under this program of $42 million in 2020.
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 MPSC’s authority to approve voluntary revenue refunds, and other matters. Consumers is unable to predict the outcome of these appeals.
Electric Rate Case: In June 2021, the MPSC Staff filed testimony in the general electric rate case that Consumers filed in March 2021. In its testimony, the MPSC Staff recommended the disallowance of cost recovery for certain categories of recently completed capital expenditures incurred by Consumers. In October 2021, the administrative law judge issued a proposal for decision supporting the MPSC Staff’s recommended disallowance. At September 30, 2021, Consumers had incurred $39 million of such expenditures. A material disallowance of incurred capital costs could negatively affect CMS Energy’s and
Consumers’ results of operations. Consumers cannot predict the outcome of this proceeding. The MPSC is expected to issue a final order in December 2021.
Reserve for Customer Refunds: In December 2020, the MPSC issued an order authorizing Consumers to refund $28 million voluntarily to utility customers. In May 2021, the MPSC approved a filing submitted by Consumers that proposed the refund take the form of incremental spending in 2021 above amounts included in rates on various programs, including electric service restoration and gas and electric technology expenses. If Consumers does not achieve the incremental spending, the remaining balance will be provided to electric or gas utility customers through a bill credit. Consumers had recorded a current regulatory liability of $8 million at September 30, 2021 and $28 million at December 31, 2020 related to this voluntary refund.
Voluntary Transmission Asset Sale Gain Share: In October 2020, Consumers completed a sale of the electric utility’s remaining transmission equipment to METC. In December 2020, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with electric utility customers through incremental service restoration spending in 2021; this application was approved by the MPSC in February 2021. As a result, the $14 million gain was recorded on Consumers’ consolidated balance sheets as a current regulatory liability at December 31, 2020 and was shared with customers in 2021.
Energy Waste Reduction Plan Incentive: Consumers filed its 2020 energy waste reduction reconciliation in May 2021, requesting the MPSC’s approval to collect from customers the maximum performance incentive of $42 million for exceeding statutory savings targets in 2020. Consumers recognized incentive revenue under this program of $42 million in 2020.
v3.21.2
Contingencies and Commitments
 9 Months Ended
Sep. 30, 2021
Other Commitments [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
Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate 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, which was valid through September 2020. CMS Land submitted a renewal request for the permit in April 2020. CMS Land is allowed to continue operating under the previous NPDES permit until a response is received from EGLE.
At September 30, 2021, CMS Energy had a recorded liability of $44 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 $54 million. CMS Energy
expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2021 and in each of the next five years:
In Millions
202120222023202420252026
CMS Energy
Long-term leachate disposal and operating and maintenance costs$1 $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 or exceed 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 believes the likelihood of material loss to be remote, 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 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 $2 million and $4 million. At September 30, 2021, Consumers had a recorded liability of $2 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 September 30, 2021, 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 2017, the MCV Partnership initiated arbitration against Consumers, asserting a breach of contract associated with the MCV PPA. In 2019, an arbitration panel issued an order concluding that the MCV Partnership is not entitled to any damages associated with a claim against Consumers that was related to the Clean Air Act. In November 2020, the MCV Partnership and Consumers signed a settlement agreement resolving all remaining disputes between the parties, and filed the settlement and associated agreements with the MPSC for approval. In March 2021, the MPSC approved the settlement and associated agreements.
Plant Purchase Commitment: In conjunction with its 2021 IRP, Consumers executed agreements to purchase:
•the New Covert Generating Facility, a natural gas-fueled generating unit with 1,176 MW of nameplate capacity in Van Buren County, Michigan, for $810 million, subject to certain adjustments, in 2023
•the enterprises segment’s three natural gas-fueled generating units, totaling 1,001 MW of nameplate capacity, for $515 million, subject to certain adjustments, in 2025
These agreements are subject to the approval of the MPSC and FERC and the New Covert Generating Facility agreement is subject to the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Consumers Gas Utility Contingencies
Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under 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 September 30, 2021, Consumers had a recorded liability of $57 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 $62 million. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2021 and in each of the next five years:
In Millions
202120222023202420252026
Consumers
Remediation and other response activity costs$1 $4 $9 $24 $11 $1 
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 September 30, 2021, Consumers had a regulatory asset of $114 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 September 30, 2021, Consumers had a recorded liability of $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. The compressor station is presently operating at full capacity.
In May 2020, the MPSC approved an administrative settlement agreement between Consumers and the MPSC Staff, which resulted in a $10,000 civil penalty in connection with the fire. Consumers may also be subject to various claims from impacted customers and claims for damages.
In September 2020, the MPSC disallowed the recovery of $7 million in incremental gas purchases related to the fire. In January 2021, the MPSC denied Consumers’ petition for a rehearing challenging this disallowance. In February 2021, Consumers filed an appeal of the MPSC’s denial with the Michigan Court of Appeals. Consumers could also be subject to disallowances of costs associated with the repair and modification of the Ray Compressor Station. At September 30, 2021, Consumers had incurred capital expenditures of $17 million to restore and modify the compressor station.
As of September 30, 2021, Consumers had recorded an insurance recovery of $10 million related to the compressor station. Consumers recognized $4 million of the insurance recovery as a reduction to plant, property, and equipment, $3 million as a reduction of maintenance and other operating expenses, and $3 million as operating revenue, which represented recovery of incremental gas purchases related to the fire.
At this time, Consumers cannot predict the outcome of these matters or other gas-related incidents and a reasonable estimate of a total loss cannot be made, but they could have a material adverse effect on CMS Energy’s and Consumers’ results of operations, financial condition, or liquidity, and could subject Consumers’ gas utility to increased regulatory scrutiny.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at September 30, 2021:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1
September 2020indefinite$320 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite153 2 
Guarantee3
July 2011indefinite30 — 
Consumers
Guarantee3
July 2011indefinite$30 $— 
1In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities.
2These 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. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
3This obligation comprises a guarantee provided by Consumers 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.
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. At September 30, 2021, the carrying value of these indemnity obligations was $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 1, 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  
Other Commitments [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
Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate 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, which was valid through September 2020. CMS Land submitted a renewal request for the permit in April 2020. CMS Land is allowed to continue operating under the previous NPDES permit until a response is received from EGLE.
At September 30, 2021, CMS Energy had a recorded liability of $44 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 $54 million. CMS Energy
expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2021 and in each of the next five years:
In Millions
202120222023202420252026
CMS Energy
Long-term leachate disposal and operating and maintenance costs$1 $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 or exceed 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 believes the likelihood of material loss to be remote, 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 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 $2 million and $4 million. At September 30, 2021, Consumers had a recorded liability of $2 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 September 30, 2021, 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 2017, the MCV Partnership initiated arbitration against Consumers, asserting a breach of contract associated with the MCV PPA. In 2019, an arbitration panel issued an order concluding that the MCV Partnership is not entitled to any damages associated with a claim against Consumers that was related to the Clean Air Act. In November 2020, the MCV Partnership and Consumers signed a settlement agreement resolving all remaining disputes between the parties, and filed the settlement and associated agreements with the MPSC for approval. In March 2021, the MPSC approved the settlement and associated agreements.
Plant Purchase Commitment: In conjunction with its 2021 IRP, Consumers executed agreements to purchase:
•the New Covert Generating Facility, a natural gas-fueled generating unit with 1,176 MW of nameplate capacity in Van Buren County, Michigan, for $810 million, subject to certain adjustments, in 2023
•the enterprises segment’s three natural gas-fueled generating units, totaling 1,001 MW of nameplate capacity, for $515 million, subject to certain adjustments, in 2025
These agreements are subject to the approval of the MPSC and FERC and the New Covert Generating Facility agreement is subject to the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Consumers Gas Utility Contingencies
Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under 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 September 30, 2021, Consumers had a recorded liability of $57 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 $62 million. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2021 and in each of the next five years:
In Millions
202120222023202420252026
Consumers
Remediation and other response activity costs$1 $4 $9 $24 $11 $1 
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 September 30, 2021, Consumers had a regulatory asset of $114 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 September 30, 2021, Consumers had a recorded liability of $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. The compressor station is presently operating at full capacity.
In May 2020, the MPSC approved an administrative settlement agreement between Consumers and the MPSC Staff, which resulted in a $10,000 civil penalty in connection with the fire. Consumers may also be subject to various claims from impacted customers and claims for damages.
In September 2020, the MPSC disallowed the recovery of $7 million in incremental gas purchases related to the fire. In January 2021, the MPSC denied Consumers’ petition for a rehearing challenging this disallowance. In February 2021, Consumers filed an appeal of the MPSC’s denial with the Michigan Court of Appeals. Consumers could also be subject to disallowances of costs associated with the repair and modification of the Ray Compressor Station. At September 30, 2021, Consumers had incurred capital expenditures of $17 million to restore and modify the compressor station.
As of September 30, 2021, Consumers had recorded an insurance recovery of $10 million related to the compressor station. Consumers recognized $4 million of the insurance recovery as a reduction to plant, property, and equipment, $3 million as a reduction of maintenance and other operating expenses, and $3 million as operating revenue, which represented recovery of incremental gas purchases related to the fire.
At this time, Consumers cannot predict the outcome of these matters or other gas-related incidents and a reasonable estimate of a total loss cannot be made, but they could have a material adverse effect on CMS Energy’s and Consumers’ results of operations, financial condition, or liquidity, and could subject Consumers’ gas utility to increased regulatory scrutiny.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at September 30, 2021:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1
September 2020indefinite$320 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite153 2 
Guarantee3
July 2011indefinite30 — 
Consumers
Guarantee3
July 2011indefinite$30 $— 
1In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities.
2These 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. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
3This obligation comprises a guarantee provided by Consumers 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.
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. At September 30, 2021, the carrying value of these indemnity obligations was $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 1, 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.
v3.21.2
Financings And Capitalization
 9 Months Ended
Sep. 30, 2021
Debt Instrument [Line Items]  
Financings and Capitalization Financings and Capitalization
Financings: Presented in the following table is a summary of major long-term debt issuances during the nine months ended September 30, 2021:
Principal
(In Millions)		Interest RateIssuance DateMaturity Date
Consumers
First mortgage bonds$300 2.650%August 2021August 2052
In July 2020, Consumers purchased, in lieu of redemption, $35 million of variable-rate tax-exempt revenue bonds that mature in April 2035. In October 2021, Consumers remarketed the $35 million variable-rate tax-exempt revenue bonds, bearing interest at a rate of 0.875 percent through October 2026, at which time the rate will reset.
In October 2021, CMS Energy retired its $200 million term loan with a maturity of November 2021.
Credit Facilities: The following credit facilities with banks were available at September 30, 2021:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 2024
$550 $— $18 $532 
September 23, 20221
31 — 31 — 
CMS Enterprises, including subsidiaries
September 25, 20252
$39 $— $39 $— 
September 30, 20253
18 — 8 10 
Consumers4
June 5, 2024
$850 $— $12 $838 
November 19, 2022
250 — 1 249 
April 18, 2022
30 — 30 — 
1The maximum aggregate of letters of credit that may be issued under this facility is $50 million. The amount remaining under the facility is uncommitted.
2This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities.
3Under 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.
4Obligations under these facilities are secured by first mortgage bonds of Consumers.
Short-term Borrowings: Under Consumers’ commercial paper program, Consumers may issue, in one or more placements, investment-grade commercial paper notes with maturities of up to 365 days at market interest 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 September 30, 2021, there were no commercial paper notes outstanding under this program.
In December 2020, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $350 million at an interest rate of one month LIBOR minus 0.100 percent. In October 2021, Consumers increased the limit at which it could borrow under the agreement to $500 million. At September 30, 2021, there were no outstanding loans under the agreement.
Dividend Restrictions: At September 30, 2021, payment of dividends by CMS Energy on its common stock was limited to $5.9 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at September 30, 2021, Consumers had $1.8 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.
During the nine months ended September 30, 2021, Consumers paid $570 million in dividends on its common stock to CMS Energy.
Issuance of Common Stock: In 2020, CMS Energy entered into an equity offering program under which it may sell, from time to time, shares of CMS Energy common stock. Under the 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 may sell shares of its common stock having an aggregate sales price of up to $500 million. Presented in the following table are details of CMS Energy’s forward sales contracts under this program at September 30, 2021:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialSeptember 30, 2021
September 15, 2020June 30, 2022846,759$61.04 $59.01 
December 22, 2020June 22, 2022115,59561.81 60.27 
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 are 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 September 30, 2021, CMS Energy would have been required to deliver 10,266 shares.
Issuance of Preferred Stock: On July 1, 2021, CMS Energy issued 9.2 million depositary shares, each representing 1/1,000th share of its Series C preferred stock, at a price of $25.00 per depositary share. The transaction resulted in net proceeds of $224 million, which will be used for general corporate purposes. Dividends on the preferred stock accumulate at an annual rate of 4.200 percent and are payable quarterly, commencing on October 15, 2021.
The Series C preferred stock has no maturity or mandatory redemption date and is not redeemable at the option of the holders. CMS Energy may, at its option, redeem the Series C preferred stock, in whole or in part, at a price equal to $25,000 per share (equivalent to $25.00 per depositary share), plus accumulated and unpaid dividends, at any time on or after July 15, 2026. The Series C preferred stock ranks senior to CMS Energy’s common stock with respect to dividend rights and distribution rights upon liquidation.
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 issuances during the nine months ended September 30, 2021:
Principal
(In Millions)		Interest RateIssuance DateMaturity Date
Consumers
First mortgage bonds$300 2.650%August 2021August 2052
In July 2020, Consumers purchased, in lieu of redemption, $35 million of variable-rate tax-exempt revenue bonds that mature in April 2035. In October 2021, Consumers remarketed the $35 million variable-rate tax-exempt revenue bonds, bearing interest at a rate of 0.875 percent through October 2026, at which time the rate will reset.
In October 2021, CMS Energy retired its $200 million term loan with a maturity of November 2021.
Credit Facilities: The following credit facilities with banks were available at September 30, 2021:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 2024
$550 $— $18 $532 
September 23, 20221
31 — 31 — 
CMS Enterprises, including subsidiaries
September 25, 20252
$39 $— $39 $— 
September 30, 20253
18 — 8 10 
Consumers4
June 5, 2024
$850 $— $12 $838 
November 19, 2022
250 — 1 249 
April 18, 2022
30 — 30 — 
1The maximum aggregate of letters of credit that may be issued under this facility is $50 million. The amount remaining under the facility is uncommitted.
2This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities.
3Under 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.
4Obligations under these facilities are secured by first mortgage bonds of Consumers.
Short-term Borrowings: Under Consumers’ commercial paper program, Consumers may issue, in one or more placements, investment-grade commercial paper notes with maturities of up to 365 days at market interest 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 September 30, 2021, there were no commercial paper notes outstanding under this program.
In December 2020, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $350 million at an interest rate of one month LIBOR minus 0.100 percent. In October 2021, Consumers increased the limit at which it could borrow under the agreement to $500 million. At September 30, 2021, there were no outstanding loans under the agreement.
Dividend Restrictions: At September 30, 2021, payment of dividends by CMS Energy on its common stock was limited to $5.9 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at September 30, 2021, Consumers had $1.8 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.
During the nine months ended September 30, 2021, Consumers paid $570 million in dividends on its common stock to CMS Energy.
Issuance of Common Stock: In 2020, CMS Energy entered into an equity offering program under which it may sell, from time to time, shares of CMS Energy common stock. Under the 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 may sell shares of its common stock having an aggregate sales price of up to $500 million. Presented in the following table are details of CMS Energy’s forward sales contracts under this program at September 30, 2021:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialSeptember 30, 2021
September 15, 2020June 30, 2022846,759$61.04 $59.01 
December 22, 2020June 22, 2022115,59561.81 60.27 
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 are 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 September 30, 2021, CMS Energy would have been required to deliver 10,266 shares.
Issuance of Preferred Stock: On July 1, 2021, CMS Energy issued 9.2 million depositary shares, each representing 1/1,000th share of its Series C preferred stock, at a price of $25.00 per depositary share. The transaction resulted in net proceeds of $224 million, which will be used for general corporate purposes. Dividends on the preferred stock accumulate at an annual rate of 4.200 percent and are payable quarterly, commencing on October 15, 2021.
The Series C preferred stock has no maturity or mandatory redemption date and is not redeemable at the option of the holders. CMS Energy may, at its option, redeem the Series C preferred stock, in whole or in part, at a price equal to $25,000 per share (equivalent to $25.00 per depositary share), plus accumulated and unpaid dividends, at any time on or after July 15, 2026. The Series C preferred stock ranks senior to CMS Energy’s common stock with respect to dividend rights and distribution rights upon liquidation.
v3.21.2
Fair Value Measurements
 9 Months Ended
Sep. 30, 2021
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 ConsumersConsumers
September 30
2021		December 31
2020		September 30
2021		December 31
2020
Assets1
Restricted cash equivalents$30 $17 $26 $15 
Nonqualified deferred compensation plan assets25 23 20 18 
Derivative instruments2 1 2 1 
Total assets$57 $41 $48 $34 
Liabilities1
Nonqualified deferred compensation plan liabilities$25 $23 $20 $18 
Derivative instruments9 11 — — 
Total liabilities$34 $34 $20 $18 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Restricted Cash Equivalents: Restricted cash equivalents consist of money market funds with daily liquidity. For further details, see Note 10, Cash and Cash Equivalents.
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.
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.
A subsidiary of CMS Enterprises uses floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with future interest payments on certain long‑term variable-rate debt. The interest rate swaps are accounted for as cash flow hedges of the future variability of interest payments on debt with a notional amount of $81 million at September 30, 2021 and $85 million at December 31, 2020. Gains or losses on these swaps are initially reported in other comprehensive income (loss) and then, as interest payments are made on the hedged debt, are recognized in earnings within interest on long-term debt on CMS Energy’s consolidated statements of income. CMS Energy recorded gains (losses) in other
comprehensive income (loss) of $1 million for the nine months ended September 30, 2021 and $(6) million for the nine months ended September 30, 2020. There were no material impacts on interest on long-term debt associated with these swaps during the periods presented. The fair value of these swaps recorded in other liabilities on CMS Energy’s consolidated balance sheets totaled $6 million at September 30, 2021 and $9 million at December 31, 2020. 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 for the periods presented.
The majority of derivatives classified as Level 3 are FTRs held by Consumers. 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 ConsumersConsumers
September 30
2021		December 31
2020		September 30
2021		December 31
2020
Assets1
Restricted cash equivalents$30 $17 $26 $15 
Nonqualified deferred compensation plan assets25 23 20 18 
Derivative instruments2 1 2 1 
Total assets$57 $41 $48 $34 
Liabilities1
Nonqualified deferred compensation plan liabilities$25 $23 $20 $18 
Derivative instruments9 11 — — 
Total liabilities$34 $34 $20 $18 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Restricted Cash Equivalents: Restricted cash equivalents consist of money market funds with daily liquidity. For further details, see Note 10, Cash and Cash Equivalents.
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.
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.
A subsidiary of CMS Enterprises uses floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with future interest payments on certain long‑term variable-rate debt. The interest rate swaps are accounted for as cash flow hedges of the future variability of interest payments on debt with a notional amount of $81 million at September 30, 2021 and $85 million at December 31, 2020. Gains or losses on these swaps are initially reported in other comprehensive income (loss) and then, as interest payments are made on the hedged debt, are recognized in earnings within interest on long-term debt on CMS Energy’s consolidated statements of income. CMS Energy recorded gains (losses) in other
comprehensive income (loss) of $1 million for the nine months ended September 30, 2021 and $(6) million for the nine months ended September 30, 2020. There were no material impacts on interest on long-term debt associated with these swaps during the periods presented. The fair value of these swaps recorded in other liabilities on CMS Energy’s consolidated balance sheets totaled $6 million at September 30, 2021 and $9 million at December 31, 2020. 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 for the periods presented.
The majority of derivatives classified as Level 3 are FTRs held by Consumers. 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.
v3.21.2
Financial Instruments
 9 Months Ended
Sep. 30, 2021
Financial Instruments [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 4, Fair Value Measurements.
In Millions
September 30, 2021December 31, 2020
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $17 $17 $— $— $17 
Liabilities
Long-term debt2
12,599 13,886 1,195 10,727 1,964 12,315 14,601 1,249 11,267 2,085 
Long-term payables3
31 32 — — 32 33 35 — — 35 
Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $17 $17 $— $— $17 
Notes receivable – related party4
104 104 — — 104 107 107 — — 107 
Liabilities
Long-term debt5
8,392 9,411 — 7,447 1,964 8,106 9,801 — 7,716 2,085 
1Includes current portion of long-term accounts receivable of $9 million at September 30, 2021 and $12 million at December 31, 2020.
2Includes current portion of long-term debt of $572 million at September 30, 2021 and $571 million at December 31, 2020.
3Includes current portion of long-term payables of $22 million at September 30, 2021 and $6 million at December 31, 2020.
4Includes current portion of notes receivable – related party of $7 million at September 30, 2021 and December 31, 2020.
5Includes current portion of long-term debt of $364 million at September 30, 2021 and December 31, 2020.
Consumers Energy Company  
Financial Instruments [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 4, Fair Value Measurements.
In Millions
September 30, 2021December 31, 2020
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $17 $17 $— $— $17 
Liabilities
Long-term debt2
12,599 13,886 1,195 10,727 1,964 12,315 14,601 1,249 11,267 2,085 
Long-term payables3
31 32 — — 32 33 35 — — 35 
Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $17 $17 $— $— $17 
Notes receivable – related party4
104 104 — — 104 107 107 — — 107 
Liabilities
Long-term debt5
8,392 9,411 — 7,447 1,964 8,106 9,801 — 7,716 2,085 
1Includes current portion of long-term accounts receivable of $9 million at September 30, 2021 and $12 million at December 31, 2020.
2Includes current portion of long-term debt of $572 million at September 30, 2021 and $571 million at December 31, 2020.
3Includes current portion of long-term payables of $22 million at September 30, 2021 and $6 million at December 31, 2020.
4Includes current portion of notes receivable – related party of $7 million at September 30, 2021 and December 31, 2020.
5Includes current portion of long-term debt of $364 million at September 30, 2021 and December 31, 2020.
v3.21.2
Retirement Benefits
 9 Months Ended
Sep. 30, 2021
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement BenefitsCMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.
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 PlansOPEB Plan
Three Months EndedNine Months EndedThree Months EndedNine Months Ended
September 3020212020202120202021202020212020
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$14 $12 $41 $37 $5 $4 $14 $12 
Interest cost14 20 44 61 6 8 17 25 
Settlement loss— 1 — 1 — — — — 
Expected return on plan assets(51)(47)(155)(143)(28)(25)(82)(75)
Amortization of:
Net loss25 23 76 67 2 4 6 11 
Prior service cost (credit)1 — 3 1 (14)(14)(40)(42)
Settlement loss1 — 4 — — — — — 
Net periodic cost (credit)$4 $9 $13 $24 $(29)$(23)$(85)$(69)
Consumers
Net periodic cost (credit)
Service cost$14 $12 $40 $36 $4 $3 $13 $11 
Interest cost14 20 42 59 6 8 17 24 
Expected return on plan assets(49)(45)(147)(136)(26)(23)(77)(70)
Amortization of:
Net loss24 22 73 64 2 4 6 11 
Prior service cost (credit)1 — 3 1 (12)(13)(38)(40)
Settlement loss1 — 4 — — — — — 
Net periodic cost (credit)$5 $9 $15 $24 $(26)$(21)$(79)$(64)
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement BenefitsCMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.
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 PlansOPEB Plan
Three Months EndedNine Months EndedThree Months EndedNine Months Ended
September 3020212020202120202021202020212020
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$14 $12 $41 $37 $5 $4 $14 $12 
Interest cost14 20 44 61 6 8 17 25 
Settlement loss— 1 — 1 — — — — 
Expected return on plan assets(51)(47)(155)(143)(28)(25)(82)(75)
Amortization of:
Net loss25 23 76 67 2 4 6 11 
Prior service cost (credit)1 — 3 1 (14)(14)(40)(42)
Settlement loss1 — 4 — — — — — 
Net periodic cost (credit)$4 $9 $13 $24 $(29)$(23)$(85)$(69)
Consumers
Net periodic cost (credit)
Service cost$14 $12 $40 $36 $4 $3 $13 $11 
Interest cost14 20 42 59 6 8 17 24 
Expected return on plan assets(49)(45)(147)(136)(26)(23)(77)(70)
Amortization of:
Net loss24 22 73 64 2 4 6 11 
Prior service cost (credit)1 — 3 1 (12)(13)(38)(40)
Settlement loss1 — 4 — — — — — 
Net periodic cost (credit)$5 $9 $15 $24 $(26)$(21)$(79)$(64)
v3.21.2
Income Taxes
 9 Months Ended
Sep. 30, 2021
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:
Nine Months Ended September 3020212020
CMS Energy, including Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect5.5 4.8 
TCJA excess deferred taxes1
(5.8)(4.3)
Production tax credits(4.8)(3.3)
Accelerated flow-through of regulatory tax benefits2
(3.2)(1.6)
Research and development tax credits, net3
(0.3)(1.6)
Refund of alternative minimum tax sequestration4
— (1.4)
Other, net0.4 0.1 
Effective tax rate12.8 %13.7 %
Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
5.2 5.0 
TCJA excess deferred taxes1
(4.6)(3.6)
Production tax credits(3.5)(1.9)
Accelerated flow-through of regulatory tax benefits2
(2.2)(1.1)
Research and development tax credits, net3
(0.3)(1.3)
Other, net(0.2)(0.3)
Effective tax rate15.4 %17.8 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022.
2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022.
3In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers.
4In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.
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:
Nine Months Ended September 3020212020
CMS Energy, including Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect5.5 4.8 
TCJA excess deferred taxes1
(5.8)(4.3)
Production tax credits(4.8)(3.3)
Accelerated flow-through of regulatory tax benefits2
(3.2)(1.6)
Research and development tax credits, net3
(0.3)(1.6)
Refund of alternative minimum tax sequestration4
— (1.4)
Other, net0.4 0.1 
Effective tax rate12.8 %13.7 %
Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
5.2 5.0 
TCJA excess deferred taxes1
(4.6)(3.6)
Production tax credits(3.5)(1.9)
Accelerated flow-through of regulatory tax benefits2
(2.2)(1.1)
Research and development tax credits, net3
(0.3)(1.3)
Other, net(0.2)(0.3)
Effective tax rate15.4 %17.8 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022.
2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022.
3In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers.
4In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.
v3.21.2
Earnings Per Share - CMS Energy
 9 Months Ended
Sep. 30, 2021
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 income from continuing operations:
In Millions, Except Per Share Amounts
Three Months EndedNine Months Ended
September 302021202020212020
Income available to common stockholders
Income from continuing operations$153 $198 $614 $556 
Less loss attributable to noncontrolling interests(6)(8)(18)(7)
Less preferred stock dividends3 — 3 — 
Income from continuing operations available to common stockholders – basic and diluted$156 $206 $629 $563 
Average common shares outstanding
Weighted-average shares – basic289.1 285.6 288.9 284.8 
Add dilutive nonvested stock awards0.5 0.8 0.5 0.9 
Add dilutive forward equity sale contracts— 0.5 — 0.6 
Weighted-average shares – diluted289.6 286.9 289.4 286.3 
Income from continuing operations per average common share available to common stockholders
Basic$0.54 $0.72 $2.18 $1.98 
Diluted0.54 0.72 2.18 1.97 
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
CMS Energy has 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 3, Financings and Capitalization.
v3.21.2
Revenue
 9 Months Ended
Sep. 30, 2021
Disaggregation of Revenue [Line Items]  
Revenue RevenuePresented in the following tables are the components of operating revenue:
In Millions
Three Months Ended September 30, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,416 $224 $— $1,640 
Other— — 31 31 
Revenue recognized from contracts with customers$1,416 $224 $31 $1,671 
Leasing income— — 50 50 
Financing income2 1 — 3 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$1,419 $225 $81 $1,725 
Consumers
Consumers utility revenue
Residential$718 $143 $861 
Commercial456 36 492 
Industrial167 5 172 
Other75 40 115 
Revenue recognized from contracts with customers$1,416 $224 $1,640 
Financing income2 1 3 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$1,419 $225 $1,644 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $35 million for the three months ended September 30, 2021.
In Millions
Three Months Ended September 30, 2020Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,255 $192 $— $1,447 
Other— — 21 21 
Revenue recognized from contracts with customers$1,255 $192 $21 $1,468 
Leasing income— — 36 36 
Financing income2 1 — 3 
Total operating revenue – CMS Energy$1,257 $193 $57 $1,507 
Consumers
Consumers utility revenue
Residential$624 $120 $744 
Commercial413 27 440 
Industrial161 5 166 
Other57 40 97 
Revenue recognized from contracts with customers$1,255 $192 $1,447 
Financing income2 1 3 
Total operating revenue – Consumers$1,257 $193 $1,450 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $23 million for the three months ended September 30, 2020.
In Millions
Nine Months Ended September 30, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$3,705 $1,357 $— $5,062 
Other— — 86 86 
Revenue recognized from contracts with customers$3,705 $1,357 $86 $5,148 
Leasing income— — 136 136 
Financing income7 4 — 11 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$3,713 $1,361 $222 $5,296 
Consumers
Consumers utility revenue
Residential$1,847 $917 $2,764 
Commercial1,191 258 1,449 
Industrial458 36 494 
Other209 146 355 
Revenue recognized from contracts with customers$3,705 $1,357 $5,062 
Financing income7 4 11 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$3,713 $1,361 $5,074 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $94 million for the nine months ended September 30, 2021.
In Millions
Nine Months Ended September 30, 2020Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$3,300 $1,212 $— $4,512 
Other— — 57 57 
Revenue recognized from contracts with customers$3,300 $1,212 $57 $4,569 
Leasing income— — 110 110 
Financing income7 5 — 12 
Total operating revenue – CMS Energy$3,307 $1,217 $167 $4,691 
Consumers
Consumers utility revenue
Residential$1,612 $819 $2,431 
Commercial1,093 227 1,320 
Industrial427 32 459 
Other168 134 302 
Revenue recognized from contracts with customers$3,300 $1,212 $4,512 
Financing income7 5 12 
Total operating revenue – Consumers$3,307 $1,217 $4,524 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $69 million for the nine months ended September 30, 2020.
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 less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due. CMS Energy and Consumers recorded uncollectible accounts expense of $6 million for the three months ended September 30, 2021 and $5 million for the three months ended September 30, 2020. CMS Energy and Consumers recorded uncollectible accounts expense of $17 million for the nine months ended September 30, 2021 and $18 million for the nine months ended September 30, 2020.
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 and accrued revenue on CMS Energy’s and Consumers’ consolidated balance sheets, were $340 million at September 30, 2021 and $437 million at December 31, 2020.
Consumers Energy Company  
Disaggregation of Revenue [Line Items]  
Revenue RevenuePresented in the following tables are the components of operating revenue:
In Millions
Three Months Ended September 30, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,416 $224 $— $1,640 
Other— — 31 31 
Revenue recognized from contracts with customers$1,416 $224 $31 $1,671 
Leasing income— — 50 50 
Financing income2 1 — 3 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$1,419 $225 $81 $1,725 
Consumers
Consumers utility revenue
Residential$718 $143 $861 
Commercial456 36 492 
Industrial167 5 172 
Other75 40 115 
Revenue recognized from contracts with customers$1,416 $224 $1,640 
Financing income2 1 3 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$1,419 $225 $1,644 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $35 million for the three months ended September 30, 2021.
In Millions
Three Months Ended September 30, 2020Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,255 $192 $— $1,447 
Other— — 21 21 
Revenue recognized from contracts with customers$1,255 $192 $21 $1,468 
Leasing income— — 36 36 
Financing income2 1 — 3 
Total operating revenue – CMS Energy$1,257 $193 $57 $1,507 
Consumers
Consumers utility revenue
Residential$624 $120 $744 
Commercial413 27 440 
Industrial161 5 166 
Other57 40 97 
Revenue recognized from contracts with customers$1,255 $192 $1,447 
Financing income2 1 3 
Total operating revenue – Consumers$1,257 $193 $1,450 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $23 million for the three months ended September 30, 2020.
In Millions
Nine Months Ended September 30, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$3,705 $1,357 $— $5,062 
Other— — 86 86 
Revenue recognized from contracts with customers$3,705 $1,357 $86 $5,148 
Leasing income— — 136 136 
Financing income7 4 — 11 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$3,713 $1,361 $222 $5,296 
Consumers
Consumers utility revenue
Residential$1,847 $917 $2,764 
Commercial1,191 258 1,449 
Industrial458 36 494 
Other209 146 355 
Revenue recognized from contracts with customers$3,705 $1,357 $5,062 
Financing income7 4 11 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$3,713 $1,361 $5,074 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $94 million for the nine months ended September 30, 2021.
In Millions
Nine Months Ended September 30, 2020Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$3,300 $1,212 $— $4,512 
Other— — 57 57 
Revenue recognized from contracts with customers$3,300 $1,212 $57 $4,569 
Leasing income— — 110 110 
Financing income7 5 — 12 
Total operating revenue – CMS Energy$3,307 $1,217 $167 $4,691 
Consumers
Consumers utility revenue
Residential$1,612 $819 $2,431 
Commercial1,093 227 1,320 
Industrial427 32 459 
Other168 134 302 
Revenue recognized from contracts with customers$3,300 $1,212 $4,512 
Financing income7 5 12 
Total operating revenue – Consumers$3,307 $1,217 $4,524 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $69 million for the nine months ended September 30, 2020.
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 less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due. CMS Energy and Consumers recorded uncollectible accounts expense of $6 million for the three months ended September 30, 2021 and $5 million for the three months ended September 30, 2020. CMS Energy and Consumers recorded uncollectible accounts expense of $17 million for the nine months ended September 30, 2021 and $18 million for the nine months ended September 30, 2020.
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 and accrued revenue on CMS Energy’s and Consumers’ consolidated balance sheets, were $340 million at September 30, 2021 and $437 million at December 31, 2020.
v3.21.2
Cash And Cash Equivalents
 9 Months Ended
Sep. 30, 2021
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
September 30, 2021December 31, 2020
CMS Energy, including Consumers
Cash and cash equivalents$102 $32 
Restricted cash and cash equivalents30 17 
Current assets held for sale104 136 
Cash and cash equivalents, including restricted amounts – CMS Energy$236 $185 
Consumers
Cash and cash equivalents$29 $20 
Restricted cash and cash equivalents26 15 
Cash and cash equivalents, including restricted amounts – Consumers$55 $35 
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.
Current Assets Held for Sale: In June 2021, CMS Energy entered into an agreement for EnerBank to merge with Regions Bank. The merger was completed on October 1, 2021. As a result, EnerBank’s cash and cash equivalents are presented as assets held for sale on CMS Energy’s consolidated balance sheets at September 30, 2021 and December 31, 2020. For information regarding the merger of EnerBank, see Note 13, Exit Activities and Discontinued Operations.
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
September 30, 2021December 31, 2020
CMS Energy, including Consumers
Cash and cash equivalents$102 $32 
Restricted cash and cash equivalents30 17 
Current assets held for sale104 136 
Cash and cash equivalents, including restricted amounts – CMS Energy$236 $185 
Consumers
Cash and cash equivalents$29 $20 
Restricted cash and cash equivalents26 15 
Cash and cash equivalents, including restricted amounts – Consumers$55 $35 
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.
Current Assets Held for Sale: In June 2021, CMS Energy entered into an agreement for EnerBank to merge with Regions Bank. The merger was completed on October 1, 2021. As a result, EnerBank’s cash and cash equivalents are presented as assets held for sale on CMS Energy’s consolidated balance sheets at September 30, 2021 and December 31, 2020. For information regarding the merger of EnerBank, see Note 13, Exit Activities and Discontinued Operations.
v3.21.2
Reportable Segments
 9 Months Ended
Sep. 30, 2021
Segment Reporting Information [Line Items]  
Reportable Segments Reportable SegmentsReportable 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 segments reported for CMS Energy are:
•electric utility, consisting of regulated activities associated with the generation, purchase, 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
In June 2021, CMS Energy entered into an agreement for EnerBank to merge with Regions Bank. The merger was completed on October 1, 2021. As a result, EnerBank is not included in the composition of CMS Energy’s reportable segments. EnerBank’s results of operations are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three and nine months ended September 30, 2021 and 2020. The assets and liabilities of EnerBank are presented as held for sale on CMS Energy’s consolidated balance sheets at September 30, 2021 and December 31, 2020. For information regarding the merger of EnerBank, see Note 13, Exit Activities and Discontinued Operations.
CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items. Beginning in 2021, CMS Land, which holds the environmental remediation obligations at Bay Harbor, will be included within other reconciling items rather than within the enterprises segment. This change was not material and was made to align segment reporting with the legal organization and internal reporting of CMS Energy.
Consumers
The segments reported for Consumers are:
•electric utility, consisting of regulated activities associated with the generation, purchase, 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 segment:
In Millions
Three Months EndedNine Months Ended
September 302021202020212020
CMS Energy, including Consumers
Operating revenue
Electric utility$1,419 $1,257 $3,713 $3,307 
Gas utility225 193 1,361 1,217 
Enterprises81 57 222 167 
Total operating revenue – CMS Energy$1,725 $1,507 $5,296 $4,691 
Consumers
Operating revenue
Electric utility$1,419 $1,257 $3,713 $3,307 
Gas utility225 193 1,361 1,217 
Total operating revenue – Consumers$1,644 $1,450 $5,074 $4,524 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$195 $226 $504 $463 
Gas utility(9)4 208 162 
Enterprises7 13 26 34 
Other reconciling items(7)(25)(27)(62)
Total net income available to common stockholders – CMS Energy$186 $218 $711 $597 
Consumers
Net income (loss) available to common stockholder
Electric utility$195 $226 $504 $463 
Gas utility(9)4 208 162 
Other reconciling items— — (1)(1)
Total net income available to common stockholder – Consumers$186 $230 $711 $624 
In Millions
September 30, 2021December 31, 2020
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1
$17,992 $17,155 
Gas utility1
10,317 9,581 
Enterprises1,119 1,113 
Other reconciling items22 21 
Total plant, property, and equipment, gross – CMS Energy$29,450 $27,870 
Consumers
Plant, property, and equipment, gross
Electric utility1
$17,992 $17,155 
Gas utility1
10,317 9,581 
Other reconciling items22 21 
Total plant, property, and equipment, gross – Consumers$28,331 $26,757 
CMS Energy, including Consumers
Total assets
Electric utility1
$16,092 $15,829 
Gas utility1
9,969 9,429 
Enterprises1,275 1,276 
Other reconciling items3,177 3,132 
Total assets – CMS Energy$30,513 $29,666 
Consumers
Total assets
Electric utility1
$16,154 $15,893 
Gas utility1
10,017 9,477 
Other reconciling items18 29 
Total assets – Consumers$26,189 $25,399 
1Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
Consumers Energy Company  
Segment Reporting Information [Line Items]  
Reportable Segments Reportable SegmentsReportable 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 segments reported for CMS Energy are:
•electric utility, consisting of regulated activities associated with the generation, purchase, 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
In June 2021, CMS Energy entered into an agreement for EnerBank to merge with Regions Bank. The merger was completed on October 1, 2021. As a result, EnerBank is not included in the composition of CMS Energy’s reportable segments. EnerBank’s results of operations are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three and nine months ended September 30, 2021 and 2020. The assets and liabilities of EnerBank are presented as held for sale on CMS Energy’s consolidated balance sheets at September 30, 2021 and December 31, 2020. For information regarding the merger of EnerBank, see Note 13, Exit Activities and Discontinued Operations.
CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items. Beginning in 2021, CMS Land, which holds the environmental remediation obligations at Bay Harbor, will be included within other reconciling items rather than within the enterprises segment. This change was not material and was made to align segment reporting with the legal organization and internal reporting of CMS Energy.
Consumers
The segments reported for Consumers are:
•electric utility, consisting of regulated activities associated with the generation, purchase, 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 segment:
In Millions
Three Months EndedNine Months Ended
September 302021202020212020
CMS Energy, including Consumers
Operating revenue
Electric utility$1,419 $1,257 $3,713 $3,307 
Gas utility225 193 1,361 1,217 
Enterprises81 57 222 167 
Total operating revenue – CMS Energy$1,725 $1,507 $5,296 $4,691 
Consumers
Operating revenue
Electric utility$1,419 $1,257 $3,713 $3,307 
Gas utility225 193 1,361 1,217 
Total operating revenue – Consumers$1,644 $1,450 $5,074 $4,524 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$195 $226 $504 $463 
Gas utility(9)4 208 162 
Enterprises7 13 26 34 
Other reconciling items(7)(25)(27)(62)
Total net income available to common stockholders – CMS Energy$186 $218 $711 $597 
Consumers
Net income (loss) available to common stockholder
Electric utility$195 $226 $504 $463 
Gas utility(9)4 208 162 
Other reconciling items— — (1)(1)
Total net income available to common stockholder – Consumers$186 $230 $711 $624 
In Millions
September 30, 2021December 31, 2020
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1
$17,992 $17,155 
Gas utility1
10,317 9,581 
Enterprises1,119 1,113 
Other reconciling items22 21 
Total plant, property, and equipment, gross – CMS Energy$29,450 $27,870 
Consumers
Plant, property, and equipment, gross
Electric utility1
$17,992 $17,155 
Gas utility1
10,317 9,581 
Other reconciling items22 21 
Total plant, property, and equipment, gross – Consumers$28,331 $26,757 
CMS Energy, including Consumers
Total assets
Electric utility1
$16,092 $15,829 
Gas utility1
9,969 9,429 
Enterprises1,275 1,276 
Other reconciling items3,177 3,132 
Total assets – CMS Energy$30,513 $29,666 
Consumers
Total assets
Electric utility1
$16,154 $15,893 
Gas utility1
10,017 9,477 
Other reconciling items18 29 
Total assets – Consumers$26,189 $25,399 
1Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
v3.21.2
Variable Interest Entities
 9 Months Ended
Sep. 30, 2021
Variable Interest Entities [Abstract]  
Variable Interest Entities Variable Interest Entities
CMS Enterprises has a 51-percent ownership interest in Aviator Wind Equity Holdings, which holds a Class B membership interest in Aviator Wind, a 525-MW wind generation project in Coke County, Texas. The Class A membership interest in Aviator Wind is held by a tax equity investor, BHE Renewables, LLC, a subsidiary of Berkshire Hathaway Energy Company. Earnings, tax attributes, and cash flows generated by Aviator Wind are allocated among and distributed to the membership classes in accordance with the ratios specified in the associated limited liability company operating agreement; these ratios change over time and are not representative of the ownership interest percentages of each membership class.
Aviator Wind Equity Holdings and Aviator Wind represent VIEs. In accordance with the associated limited liability company operating agreement, the tax equity investor is guaranteed preferred returns from Aviator Wind. However, CMS Enterprises manages and controls the operating activities of Aviator Wind Equity Holdings and, ultimately, Aviator Wind. As a result, CMS Enterprises is the primary beneficiary of Aviator Wind Equity Holdings and Aviator Wind, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies. CMS Enterprises consolidates Aviator Wind Equity Holdings and Aviator Wind and presents the Class A membership interest and 49 percent of the Class B membership interest in Aviator Wind as noncontrolling interests.
Presented in the following table are the carrying values of the VIEs’ assets and liabilities included on CMS Energy’s consolidated balance sheets:
In Millions
September 30, 2021December 31, 2020
Current
Cash and cash equivalents$15 $7 
Accounts receivable8 5 
Prepayments and other current assets1 1 
Non-current
Plant, property, and equipment, net675 692 
Total assets1
$699 $705 
Current
Accounts payable$13 $3 
Non-current
Asset retirement obligations20 19 
Total liabilities$33 $22 
1Assets may be used only to meet VIEs’ obligations and commitments.
CMS Enterprises is obligated under certain indemnities that protect the tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. For additional details on these indemnity obligations, see Note 2, Contingencies and Commitments—Guarantees.
Other VIEs: CMS Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While CMS Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability
to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships.
Presented in the following table is information about these partnerships:
NameNature of the EntityNature of CMS Energy’s Involvement
T.E.S. Filer City Coal-fueled power generatorLong-term PPA between partnership and Consumers
Employee assignment agreement
Grayling Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Genesee Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Craven Wood waste-fueled power generatorOperating and management contract
1Reduced dispatch agreements allow the facilities to be dispatched based on the market price of power compared with the cost of production of the plants. This results in fuel cost savings that each partnership shares with Consumers’ customers.
The creditors of these partnerships do not have recourse to the general credit of CMS Energy or Consumers. CMS Energy and Consumers have not provided any financial or other support during the periods presented that was not previously contractually required.
CMS Energy’s investment in these partnerships is included in investments on its consolidated balance sheets in the amount of $73 million at September 30, 2021 and $70 million at December 31, 2020.
v3.21.2
Exit Activities and Discontinued Operations
 9 Months Ended
Sep. 30, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Exit Activities and Discontinued Operations Exit Activities and Discontinued Operations
Exit Activities: Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn coal-fueled electric generating units in 2023. In 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million. In its order in Consumers’ 2020 electric rate case, the MPSC approved deferred accounting treatment for these costs; Consumers began deferring these costs as a regulatory asset in 2021. Within its 2021 IRP, Consumers proposes to retire the J.H. Campbell coal-fueled generating units. No retention incentive costs related to this retirement will be recognized unless Consumers’ 2021 IRP is approved by the MPSC.
As of September 30, 2021, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $5 million has been deferred as a regulatory asset. Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Nine Months Ended
September 3020212020
Retention benefit liability at beginning of period$11 $4 
Costs incurred and charged to maintenance and other operating expenses— 11 
Costs deferred as a regulatory asset1
5 — 
Costs incurred and capitalized1 1 
Retention benefit liability at the end of the period2
$17 $16 
1Includes $1 million for the three months ended September 30, 2021.
2Includes current portion of other liabilities of $5 million at September 30, 2021 and $7 million at September 30, 2020.
Discontinued Operations: In June 2021, CMS Energy entered into an agreement for EnerBank to merge with Regions Bank. The merger was completed on October 1, 2021. CMS Energy received proceeds of approximately $1.0 billion from the transaction and expects to recognize a pre-tax gain of approximately $660 million in the fourth quarter of 2021, both of which may be impacted by customary post-closing adjustments. CMS Energy intends to use the proceeds from the merger to fund key initiatives in its core energy business related to safety, reliability, and its clean energy transformation. Under the merger agreement, CMS Energy agreed to indemnify Regions Bank for losses resulting from various matters, primarily breaches of representations and warranties and covenants. CMS Energy considers it remote that it would be required to indemnify or incur substantial losses related to these matters.
As a result of the agreement, EnerBank’s results of operations are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three and nine months ended September 30, 2021 and 2020. The assets and liabilities of EnerBank are presented as held for sale on CMS Energy’s consolidated balance sheets at September 30, 2021 and December 31, 2020. Also, as a result of the agreement, EnerBank is not included in the composition of CMS Energy’s reportable segments. For more information regarding the composition of CMS Energy’s reportable segments, see Note 11, Reportable Segments.
The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Three Months EndedNine Months Ended
September 302021202020212020
Operating revenue$70 $68 $209 $191 
Expenses
Operating expenses17 39 60 104 
Interest expense11 13 34 43 
Income before income taxes$42 $16 $115 $44 
Transaction costs(3)— (8)— 
Income from discontinued operations before income taxes$39 $16 $107 $44 
Income tax expense9 4 25 10 
Income from discontinued operations, net of tax$30 $12 $82 $34 
The table below presents the aggregate carrying amounts for the major classes of assets and liabilities held for sale related to EnerBank:
In Millions
September 30, 2021December 31, 2020
Assets
Current
Cash and cash equivalents$104 $136 
Accounts receivable and other current assets143 18 
Notes receivable, less allowance of $28 in 2021 and $32 in 2020
247 275 
Total current assets$494 

$429 
Non‑current
Plant, property, and equipment, net$29 $22 
Notes receivable, less allowance of $84 in 2021 and $91 in 2020
2,532 2,612 
Other non‑current assets45 46 
Total non‑current assets$2,606 

$2,680 
Total assets$3,100 $3,109 
Liabilities
Current
Current portion of long-term debt$1,199 $915 
Accounts payable and other current liabilities34 38 
Total current liabilities$1,233 

$953 
Non‑current
Long-term debt$1,522 $1,890 
Other non‑current liabilities1 4 
Total non‑current liabilities$1,523 

$1,894 
Total liabilities$2,756 $2,847 
Consumers Energy Company  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Exit Activities and Discontinued Operations Exit Activities and Discontinued Operations
Exit Activities: Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn coal-fueled electric generating units in 2023. In 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million. In its order in Consumers’ 2020 electric rate case, the MPSC approved deferred accounting treatment for these costs; Consumers began deferring these costs as a regulatory asset in 2021. Within its 2021 IRP, Consumers proposes to retire the J.H. Campbell coal-fueled generating units. No retention incentive costs related to this retirement will be recognized unless Consumers’ 2021 IRP is approved by the MPSC.
As of September 30, 2021, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $5 million has been deferred as a regulatory asset. Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Nine Months Ended
September 3020212020
Retention benefit liability at beginning of period$11 $4 
Costs incurred and charged to maintenance and other operating expenses— 11 
Costs deferred as a regulatory asset1
5 — 
Costs incurred and capitalized1 1 
Retention benefit liability at the end of the period2
$17 $16 
1Includes $1 million for the three months ended September 30, 2021.
2Includes current portion of other liabilities of $5 million at September 30, 2021 and $7 million at September 30, 2020.
Discontinued Operations: In June 2021, CMS Energy entered into an agreement for EnerBank to merge with Regions Bank. The merger was completed on October 1, 2021. CMS Energy received proceeds of approximately $1.0 billion from the transaction and expects to recognize a pre-tax gain of approximately $660 million in the fourth quarter of 2021, both of which may be impacted by customary post-closing adjustments. CMS Energy intends to use the proceeds from the merger to fund key initiatives in its core energy business related to safety, reliability, and its clean energy transformation. Under the merger agreement, CMS Energy agreed to indemnify Regions Bank for losses resulting from various matters, primarily breaches of representations and warranties and covenants. CMS Energy considers it remote that it would be required to indemnify or incur substantial losses related to these matters.
As a result of the agreement, EnerBank’s results of operations are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three and nine months ended September 30, 2021 and 2020. The assets and liabilities of EnerBank are presented as held for sale on CMS Energy’s consolidated balance sheets at September 30, 2021 and December 31, 2020. Also, as a result of the agreement, EnerBank is not included in the composition of CMS Energy’s reportable segments. For more information regarding the composition of CMS Energy’s reportable segments, see Note 11, Reportable Segments.
The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Three Months EndedNine Months Ended
September 302021202020212020
Operating revenue$70 $68 $209 $191 
Expenses
Operating expenses17 39 60 104 
Interest expense11 13 34 43 
Income before income taxes$42 $16 $115 $44 
Transaction costs(3)— (8)— 
Income from discontinued operations before income taxes$39 $16 $107 $44 
Income tax expense9 4 25 10 
Income from discontinued operations, net of tax$30 $12 $82 $34 
The table below presents the aggregate carrying amounts for the major classes of assets and liabilities held for sale related to EnerBank:
In Millions
September 30, 2021December 31, 2020
Assets
Current
Cash and cash equivalents$104 $136 
Accounts receivable and other current assets143 18 
Notes receivable, less allowance of $28 in 2021 and $32 in 2020
247 275 
Total current assets$494 

$429 
Non‑current
Plant, property, and equipment, net$29 $22 
Notes receivable, less allowance of $84 in 2021 and $91 in 2020
2,532 2,612 
Other non‑current assets45 46 
Total non‑current assets$2,606 

$2,680 
Total assets$3,100 $3,109 
Liabilities
Current
Current portion of long-term debt$1,199 $915 
Accounts payable and other current liabilities34 38 
Total current liabilities$1,233 

$953 
Non‑current
Long-term debt$1,522 $1,890 
Other non‑current liabilities1 4 
Total non‑current liabilities$1,523 

$1,894 
Total liabilities$2,756 $2,847 
v3.21.2
Significant Accounting Policies (Policy)
 9 Months Ended
Sep. 30, 2021
Significant Accounting Policies [Line Items]  
Cash and Cash Equivalents 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: 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.
Variable Interest Entity, Primary Beneficiary  
Significant Accounting Policies [Line Items]  
Consolidation, Variable Interest Entity, Policy Aviator Wind Equity Holdings and Aviator Wind represent VIEs. In accordance with the associated limited liability company operating agreement, the tax equity investor is guaranteed preferred returns from Aviator Wind. However, CMS Enterprises manages and controls the operating activities of Aviator Wind Equity Holdings and, ultimately, Aviator Wind. As a result, CMS Enterprises is the primary beneficiary of Aviator Wind Equity Holdings and Aviator Wind, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies.
Variable Interest Entity, Not Primary Beneficiary  
Significant Accounting Policies [Line Items]  
Consolidation, Variable Interest Entity, Policy CMS Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While CMS Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships.
Consumers Energy Company  
Significant Accounting Policies [Line Items]  
Cash and Cash Equivalents 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: 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.
v3.21.2
Contingencies and Commitments (Tables)
 9 Months Ended
Sep. 30, 2021
Site Contingency [Line Items]  
Expected Remediation Costs By Year CMS Energy
expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2021 and in each of the next five years:
In Millions
202120222023202420252026
CMS Energy
Long-term leachate disposal and operating and maintenance costs$1 $4 $4 $4 $4 $4 
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at September 30, 2021:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1
September 2020indefinite$320 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite153 2 
Guarantee3
July 2011indefinite30 — 
Consumers
Guarantee3
July 2011indefinite$30 $— 
1In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities.
2These 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. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
3This obligation comprises a guarantee provided by Consumers 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.
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 2021 and in each of the next five years:
In Millions
202120222023202420252026
Consumers
Remediation and other response activity costs$1 $4 $9 $24 $11 $1 
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at September 30, 2021:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1
September 2020indefinite$320 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite153 2 
Guarantee3
July 2011indefinite30 — 
Consumers
Guarantee3
July 2011indefinite$30 $— 
1In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities.
2These 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. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
3This obligation comprises a guarantee provided by Consumers 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.
v3.21.2
Financings And Capitalization (Tables)
 9 Months Ended
Sep. 30, 2021
Debt Instrument [Line Items]  
Revolving Credit Facilities The following credit facilities with banks were available at September 30, 2021:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 2024
$550 $— $18 $532 
September 23, 20221
31 — 31 — 
CMS Enterprises, including subsidiaries
September 25, 20252
$39 $— $39 $— 
September 30, 20253
18 — 8 10 
Consumers4
June 5, 2024
$850 $— $12 $838 
November 19, 2022
250 — 1 249 
April 18, 2022
30 — 30 — 
1The maximum aggregate of letters of credit that may be issued under this facility is $50 million. The amount remaining under the facility is uncommitted.
2This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities.
3Under 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.
4Obligations under these facilities are secured by first mortgage bonds of Consumers.
Schedule of Forward Contracts Presented in the following table are details of CMS Energy’s forward sales contracts under this program at September 30, 2021:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialSeptember 30, 2021
September 15, 2020June 30, 2022846,759$61.04 $59.01 
December 22, 2020June 22, 2022115,59561.81 60.27 
Consumers Energy Company  
Debt Instrument [Line Items]  
Schedule of Debt Presented in the following table is a summary of major long-term debt issuances during the nine months ended September 30, 2021:
Principal
(In Millions)		Interest RateIssuance DateMaturity Date
Consumers
First mortgage bonds$300 2.650%August 2021August 2052
Revolving Credit Facilities The following credit facilities with banks were available at September 30, 2021:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 2024
$550 $— $18 $532 
September 23, 20221
31 — 31 — 
CMS Enterprises, including subsidiaries
September 25, 20252
$39 $— $39 $— 
September 30, 20253
18 — 8 10 
Consumers4
June 5, 2024
$850 $— $12 $838 
November 19, 2022
250 — 1 249 
April 18, 2022
30 — 30 — 
1The maximum aggregate of letters of credit that may be issued under this facility is $50 million. The amount remaining under the facility is uncommitted.
2This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities.
3Under 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.
4Obligations under these facilities are secured by first mortgage bonds of Consumers.
v3.21.2
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2021
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 ConsumersConsumers
September 30
2021		December 31
2020		September 30
2021		December 31
2020
Assets1
Restricted cash equivalents$30 $17 $26 $15 
Nonqualified deferred compensation plan assets25 23 20 18 
Derivative instruments2 1 2 1 
Total assets$57 $41 $48 $34 
Liabilities1
Nonqualified deferred compensation plan liabilities$25 $23 $20 $18 
Derivative instruments9 11 — — 
Total liabilities$34 $34 $20 $18 
1All 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 ConsumersConsumers
September 30
2021		December 31
2020		September 30
2021		December 31
2020
Assets1
Restricted cash equivalents$30 $17 $26 $15 
Nonqualified deferred compensation plan assets25 23 20 18 
Derivative instruments2 1 2 1 
Total assets$57 $41 $48 $34 
Liabilities1
Nonqualified deferred compensation plan liabilities$25 $23 $20 $18 
Derivative instruments9 11 — — 
Total liabilities$34 $34 $20 $18 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
v3.21.2
Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2021
Financial Instruments [Line Items]  
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements.
In Millions
September 30, 2021December 31, 2020
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $17 $17 $— $— $17 
Liabilities
Long-term debt2
12,599 13,886 1,195 10,727 1,964 12,315 14,601 1,249 11,267 2,085 
Long-term payables3
31 32 — — 32 33 35 — — 35 
Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $17 $17 $— $— $17 
Notes receivable – related party4
104 104 — — 104 107 107 — — 107 
Liabilities
Long-term debt5
8,392 9,411 — 7,447 1,964 8,106 9,801 — 7,716 2,085 
1Includes current portion of long-term accounts receivable of $9 million at September 30, 2021 and $12 million at December 31, 2020.
2Includes current portion of long-term debt of $572 million at September 30, 2021 and $571 million at December 31, 2020.
3Includes current portion of long-term payables of $22 million at September 30, 2021 and $6 million at December 31, 2020.
4Includes current portion of notes receivable – related party of $7 million at September 30, 2021 and December 31, 2020.
5Includes current portion of long-term debt of $364 million at September 30, 2021 and December 31, 2020.
Consumers Energy Company  
Financial Instruments [Line Items]  
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements.
In Millions
September 30, 2021December 31, 2020
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $17 $17 $— $— $17 
Liabilities
Long-term debt2
12,599 13,886 1,195 10,727 1,964 12,315 14,601 1,249 11,267 2,085 
Long-term payables3
31 32 — — 32 33 35 — — 35 
Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $17 $17 $— $— $17 
Notes receivable – related party4
104 104 — — 104 107 107 — — 107 
Liabilities
Long-term debt5
8,392 9,411 — 7,447 1,964 8,106 9,801 — 7,716 2,085 
1Includes current portion of long-term accounts receivable of $9 million at September 30, 2021 and $12 million at December 31, 2020.
2Includes current portion of long-term debt of $572 million at September 30, 2021 and $571 million at December 31, 2020.
3Includes current portion of long-term payables of $22 million at September 30, 2021 and $6 million at December 31, 2020.
4Includes current portion of notes receivable – related party of $7 million at September 30, 2021 and December 31, 2020.
5Includes current portion of long-term debt of $364 million at September 30, 2021 and December 31, 2020.
v3.21.2
Retirement Benefits (Tables)
 9 Months Ended
Sep. 30, 2021
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 PlansOPEB Plan
Three Months EndedNine Months EndedThree Months EndedNine Months Ended
September 3020212020202120202021202020212020
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$14 $12 $41 $37 $5 $4 $14 $12 
Interest cost14 20 44 61 6 8 17 25 
Settlement loss— 1 — 1 — — — — 
Expected return on plan assets(51)(47)(155)(143)(28)(25)(82)(75)
Amortization of:
Net loss25 23 76 67 2 4 6 11 
Prior service cost (credit)1 — 3 1 (14)(14)(40)(42)
Settlement loss1 — 4 — — — — — 
Net periodic cost (credit)$4 $9 $13 $24 $(29)$(23)$(85)$(69)
Consumers
Net periodic cost (credit)
Service cost$14 $12 $40 $36 $4 $3 $13 $11 
Interest cost14 20 42 59 6 8 17 24 
Expected return on plan assets(49)(45)(147)(136)(26)(23)(77)(70)
Amortization of:
Net loss24 22 73 64 2 4 6 11 
Prior service cost (credit)1 — 3 1 (12)(13)(38)(40)
Settlement loss1 — 4 — — — — — 
Net periodic cost (credit)$5 $9 $15 $24 $(26)$(21)$(79)$(64)
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 PlansOPEB Plan
Three Months EndedNine Months EndedThree Months EndedNine Months Ended
September 3020212020202120202021202020212020
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$14 $12 $41 $37 $5 $4 $14 $12 
Interest cost14 20 44 61 6 8 17 25 
Settlement loss— 1 — 1 — — — — 
Expected return on plan assets(51)(47)(155)(143)(28)(25)(82)(75)
Amortization of:
Net loss25 23 76 67 2 4 6 11 
Prior service cost (credit)1 — 3 1 (14)(14)(40)(42)
Settlement loss1 — 4 — — — — — 
Net periodic cost (credit)$4 $9 $13 $24 $(29)$(23)$(85)$(69)
Consumers
Net periodic cost (credit)
Service cost$14 $12 $40 $36 $4 $3 $13 $11 
Interest cost14 20 42 59 6 8 17 24 
Expected return on plan assets(49)(45)(147)(136)(26)(23)(77)(70)
Amortization of:
Net loss24 22 73 64 2 4 6 11 
Prior service cost (credit)1 — 3 1 (12)(13)(38)(40)
Settlement loss1 — 4 — — — — — 
Net periodic cost (credit)$5 $9 $15 $24 $(26)$(21)$(79)$(64)
v3.21.2
Income Taxes (Tables)
 9 Months Ended
Sep. 30, 2021
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:
Nine Months Ended September 3020212020
CMS Energy, including Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect5.5 4.8 
TCJA excess deferred taxes1
(5.8)(4.3)
Production tax credits(4.8)(3.3)
Accelerated flow-through of regulatory tax benefits2
(3.2)(1.6)
Research and development tax credits, net3
(0.3)(1.6)
Refund of alternative minimum tax sequestration4
— (1.4)
Other, net0.4 0.1 
Effective tax rate12.8 %13.7 %
Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
5.2 5.0 
TCJA excess deferred taxes1
(4.6)(3.6)
Production tax credits(3.5)(1.9)
Accelerated flow-through of regulatory tax benefits2
(2.2)(1.1)
Research and development tax credits, net3
(0.3)(1.3)
Other, net(0.2)(0.3)
Effective tax rate15.4 %17.8 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022.
2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022.
3In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers.
4In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.
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:
Nine Months Ended September 3020212020
CMS Energy, including Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect5.5 4.8 
TCJA excess deferred taxes1
(5.8)(4.3)
Production tax credits(4.8)(3.3)
Accelerated flow-through of regulatory tax benefits2
(3.2)(1.6)
Research and development tax credits, net3
(0.3)(1.6)
Refund of alternative minimum tax sequestration4
— (1.4)
Other, net0.4 0.1 
Effective tax rate12.8 %13.7 %
Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
5.2 5.0 
TCJA excess deferred taxes1
(4.6)(3.6)
Production tax credits(3.5)(1.9)
Accelerated flow-through of regulatory tax benefits2
(2.2)(1.1)
Research and development tax credits, net3
(0.3)(1.3)
Other, net(0.2)(0.3)
Effective tax rate15.4 %17.8 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022.
2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022.
3In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers.
4In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.
v3.21.2
Earnings Per Share - CMS Energy (Tables)
 9 Months Ended
Sep. 30, 2021
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 income from continuing operations:
In Millions, Except Per Share Amounts
Three Months EndedNine Months Ended
September 302021202020212020
Income available to common stockholders
Income from continuing operations$153 $198 $614 $556 
Less loss attributable to noncontrolling interests(6)(8)(18)(7)
Less preferred stock dividends3 — 3 — 
Income from continuing operations available to common stockholders – basic and diluted$156 $206 $629 $563 
Average common shares outstanding
Weighted-average shares – basic289.1 285.6 288.9 284.8 
Add dilutive nonvested stock awards0.5 0.8 0.5 0.9 
Add dilutive forward equity sale contracts— 0.5 — 0.6 
Weighted-average shares – diluted289.6 286.9 289.4 286.3 
Income from continuing operations per average common share available to common stockholders
Basic$0.54 $0.72 $2.18 $1.98 
Diluted0.54 0.72 2.18 1.97 
v3.21.2
Revenue (Tables)
 9 Months Ended
Sep. 30, 2021
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue Presented in the following tables are the components of operating revenue:
In Millions
Three Months Ended September 30, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,416 $224 $— $1,640 
Other— — 31 31 
Revenue recognized from contracts with customers$1,416 $224 $31 $1,671 
Leasing income— — 50 50 
Financing income2 1 — 3 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$1,419 $225 $81 $1,725 
Consumers
Consumers utility revenue
Residential$718 $143 $861 
Commercial456 36 492 
Industrial167 5 172 
Other75 40 115 
Revenue recognized from contracts with customers$1,416 $224 $1,640 
Financing income2 1 3 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$1,419 $225 $1,644 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $35 million for the three months ended September 30, 2021.
In Millions
Three Months Ended September 30, 2020Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,255 $192 $— $1,447 
Other— — 21 21 
Revenue recognized from contracts with customers$1,255 $192 $21 $1,468 
Leasing income— — 36 36 
Financing income2 1 — 3 
Total operating revenue – CMS Energy$1,257 $193 $57 $1,507 
Consumers
Consumers utility revenue
Residential$624 $120 $744 
Commercial413 27 440 
Industrial161 5 166 
Other57 40 97 
Revenue recognized from contracts with customers$1,255 $192 $1,447 
Financing income2 1 3 
Total operating revenue – Consumers$1,257 $193 $1,450 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $23 million for the three months ended September 30, 2020.
In Millions
Nine Months Ended September 30, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$3,705 $1,357 $— $5,062 
Other— — 86 86 
Revenue recognized from contracts with customers$3,705 $1,357 $86 $5,148 
Leasing income— — 136 136 
Financing income7 4 — 11 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$3,713 $1,361 $222 $5,296 
Consumers
Consumers utility revenue
Residential$1,847 $917 $2,764 
Commercial1,191 258 1,449 
Industrial458 36 494 
Other209 146 355 
Revenue recognized from contracts with customers$3,705 $1,357 $5,062 
Financing income7 4 11 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$3,713 $1,361 $5,074 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $94 million for the nine months ended September 30, 2021.
In Millions
Nine Months Ended September 30, 2020Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$3,300 $1,212 $— $4,512 
Other— — 57 57 
Revenue recognized from contracts with customers$3,300 $1,212 $57 $4,569 
Leasing income— — 110 110 
Financing income7 5 — 12 
Total operating revenue – CMS Energy$3,307 $1,217 $167 $4,691 
Consumers
Consumers utility revenue
Residential$1,612 $819 $2,431 
Commercial1,093 227 1,320 
Industrial427 32 459 
Other168 134 302 
Revenue recognized from contracts with customers$3,300 $1,212 $4,512 
Financing income7 5 12 
Total operating revenue – Consumers$3,307 $1,217 $4,524 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $69 million for the nine months ended September 30, 2020.
Consumers Energy Company  
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue Presented in the following tables are the components of operating revenue:
In Millions
Three Months Ended September 30, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,416 $224 $— $1,640 
Other— — 31 31 
Revenue recognized from contracts with customers$1,416 $224 $31 $1,671 
Leasing income— — 50 50 
Financing income2 1 — 3 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$1,419 $225 $81 $1,725 
Consumers
Consumers utility revenue
Residential$718 $143 $861 
Commercial456 36 492 
Industrial167 5 172 
Other75 40 115 
Revenue recognized from contracts with customers$1,416 $224 $1,640 
Financing income2 1 3 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$1,419 $225 $1,644 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $35 million for the three months ended September 30, 2021.
In Millions
Three Months Ended September 30, 2020Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,255 $192 $— $1,447 
Other— — 21 21 
Revenue recognized from contracts with customers$1,255 $192 $21 $1,468 
Leasing income— — 36 36 
Financing income2 1 — 3 
Total operating revenue – CMS Energy$1,257 $193 $57 $1,507 
Consumers
Consumers utility revenue
Residential$624 $120 $744 
Commercial413 27 440 
Industrial161 5 166 
Other57 40 97 
Revenue recognized from contracts with customers$1,255 $192 $1,447 
Financing income2 1 3 
Total operating revenue – Consumers$1,257 $193 $1,450 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $23 million for the three months ended September 30, 2020.
In Millions
Nine Months Ended September 30, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$3,705 $1,357 $— $5,062 
Other— — 86 86 
Revenue recognized from contracts with customers$3,705 $1,357 $86 $5,148 
Leasing income— — 136 136 
Financing income7 4 — 11 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$3,713 $1,361 $222 $5,296 
Consumers
Consumers utility revenue
Residential$1,847 $917 $2,764 
Commercial1,191 258 1,449 
Industrial458 36 494 
Other209 146 355 
Revenue recognized from contracts with customers$3,705 $1,357 $5,062 
Financing income7 4 11 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$3,713 $1,361 $5,074 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $94 million for the nine months ended September 30, 2021.
In Millions
Nine Months Ended September 30, 2020Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$3,300 $1,212 $— $4,512 
Other— — 57 57 
Revenue recognized from contracts with customers$3,300 $1,212 $57 $4,569 
Leasing income— — 110 110 
Financing income7 5 — 12 
Total operating revenue – CMS Energy$3,307 $1,217 $167 $4,691 
Consumers
Consumers utility revenue
Residential$1,612 $819 $2,431 
Commercial1,093 227 1,320 
Industrial427 32 459 
Other168 134 302 
Revenue recognized from contracts with customers$3,300 $1,212 $4,512 
Financing income7 5 12 
Total operating revenue – Consumers$3,307 $1,217 $4,524 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $69 million for the nine months ended September 30, 2020.
v3.21.2
Cash And Cash Equivalents (Tables)
 9 Months Ended
Sep. 30, 2021
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
September 30, 2021December 31, 2020
CMS Energy, including Consumers
Cash and cash equivalents$102 $32 
Restricted cash and cash equivalents30 17 
Current assets held for sale104 136 
Cash and cash equivalents, including restricted amounts – CMS Energy$236 $185 
Consumers
Cash and cash equivalents$29 $20 
Restricted cash and cash equivalents26 15 
Cash and cash equivalents, including restricted amounts – Consumers$55 $35 
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
September 30, 2021December 31, 2020
CMS Energy, including Consumers
Cash and cash equivalents$102 $32 
Restricted cash and cash equivalents30 17 
Current assets held for sale104 136 
Cash and cash equivalents, including restricted amounts – CMS Energy$236 $185 
Consumers
Cash and cash equivalents$29 $20 
Restricted cash and cash equivalents26 15 
Cash and cash equivalents, including restricted amounts – Consumers$55 $35 
v3.21.2
Reportable Segments (Tables)
 9 Months Ended
Sep. 30, 2021
Segment Reporting Information [Line Items]  
Schedule Of Financial Information By Reportable Segments
Presented in the following tables is financial information by segment:
In Millions
Three Months EndedNine Months Ended
September 302021202020212020
CMS Energy, including Consumers
Operating revenue
Electric utility$1,419 $1,257 $3,713 $3,307 
Gas utility225 193 1,361 1,217 
Enterprises81 57 222 167 
Total operating revenue – CMS Energy$1,725 $1,507 $5,296 $4,691 
Consumers
Operating revenue
Electric utility$1,419 $1,257 $3,713 $3,307 
Gas utility225 193 1,361 1,217 
Total operating revenue – Consumers$1,644 $1,450 $5,074 $4,524 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$195 $226 $504 $463 
Gas utility(9)4 208 162 
Enterprises7 13 26 34 
Other reconciling items(7)(25)(27)(62)
Total net income available to common stockholders – CMS Energy$186 $218 $711 $597 
Consumers
Net income (loss) available to common stockholder
Electric utility$195 $226 $504 $463 
Gas utility(9)4 208 162 
Other reconciling items— — (1)(1)
Total net income available to common stockholder – Consumers$186 $230 $711 $624 
In Millions
September 30, 2021December 31, 2020
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1
$17,992 $17,155 
Gas utility1
10,317 9,581 
Enterprises1,119 1,113 
Other reconciling items22 21 
Total plant, property, and equipment, gross – CMS Energy$29,450 $27,870 
Consumers
Plant, property, and equipment, gross
Electric utility1
$17,992 $17,155 
Gas utility1
10,317 9,581 
Other reconciling items22 21 
Total plant, property, and equipment, gross – Consumers$28,331 $26,757 
CMS Energy, including Consumers
Total assets
Electric utility1
$16,092 $15,829 
Gas utility1
9,969 9,429 
Enterprises1,275 1,276 
Other reconciling items3,177 3,132 
Total assets – CMS Energy$30,513 $29,666 
Consumers
Total assets
Electric utility1
$16,154 $15,893 
Gas utility1
10,017 9,477 
Other reconciling items18 29 
Total assets – Consumers$26,189 $25,399 
1Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
Consumers Energy Company  
Segment Reporting Information [Line Items]  
Schedule Of Financial Information By Reportable Segments
Presented in the following tables is financial information by segment:
In Millions
Three Months EndedNine Months Ended
September 302021202020212020
CMS Energy, including Consumers
Operating revenue
Electric utility$1,419 $1,257 $3,713 $3,307 
Gas utility225 193 1,361 1,217 
Enterprises81 57 222 167 
Total operating revenue – CMS Energy$1,725 $1,507 $5,296 $4,691 
Consumers
Operating revenue
Electric utility$1,419 $1,257 $3,713 $3,307 
Gas utility225 193 1,361 1,217 
Total operating revenue – Consumers$1,644 $1,450 $5,074 $4,524 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$195 $226 $504 $463 
Gas utility(9)4 208 162 
Enterprises7 13 26 34 
Other reconciling items(7)(25)(27)(62)
Total net income available to common stockholders – CMS Energy$186 $218 $711 $597 
Consumers
Net income (loss) available to common stockholder
Electric utility$195 $226 $504 $463 
Gas utility(9)4 208 162 
Other reconciling items— — (1)(1)
Total net income available to common stockholder – Consumers$186 $230 $711 $624 
In Millions
September 30, 2021December 31, 2020
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1
$17,992 $17,155 
Gas utility1
10,317 9,581 
Enterprises1,119 1,113 
Other reconciling items22 21 
Total plant, property, and equipment, gross – CMS Energy$29,450 $27,870 
Consumers
Plant, property, and equipment, gross
Electric utility1
$17,992 $17,155 
Gas utility1
10,317 9,581 
Other reconciling items22 21 
Total plant, property, and equipment, gross – Consumers$28,331 $26,757 
CMS Energy, including Consumers
Total assets
Electric utility1
$16,092 $15,829 
Gas utility1
9,969 9,429 
Enterprises1,275 1,276 
Other reconciling items3,177 3,132 
Total assets – CMS Energy$30,513 $29,666 
Consumers
Total assets
Electric utility1
$16,154 $15,893 
Gas utility1
10,017 9,477 
Other reconciling items18 29 
Total assets – Consumers$26,189 $25,399 
1Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
v3.21.2
Variable Interest Entities (Tables)
 9 Months Ended
Sep. 30, 2021
Variable Interest Entities [Abstract]  
Schedule of Variable Interest Entities
Presented in the following table are the carrying values of the VIEs’ assets and liabilities included on CMS Energy’s consolidated balance sheets:
In Millions
September 30, 2021December 31, 2020
Current
Cash and cash equivalents$15 $7 
Accounts receivable8 5 
Prepayments and other current assets1 1 
Non-current
Plant, property, and equipment, net675 692 
Total assets1
$699 $705 
Current
Accounts payable$13 $3 
Non-current
Asset retirement obligations20 19 
Total liabilities$33 $22 
1Assets may be used only to meet VIEs’ obligations and commitments.
Presented in the following table is information about these partnerships:
NameNature of the EntityNature of CMS Energy’s Involvement
T.E.S. Filer City Coal-fueled power generatorLong-term PPA between partnership and Consumers
Employee assignment agreement
Grayling Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Genesee Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Craven Wood waste-fueled power generatorOperating and management contract
1Reduced dispatch agreements allow the facilities to be dispatched based on the market price of power compared with the cost of production of the plants. This results in fuel cost savings that each partnership shares with Consumers’ customers.
v3.21.2
Exit Activities and Discontinued Operations - (Tables)
 9 Months Ended
Sep. 30, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Restructuring Reserve by Type of Cost Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Nine Months Ended
September 3020212020
Retention benefit liability at beginning of period$11 $4 
Costs incurred and charged to maintenance and other operating expenses— 11 
Costs deferred as a regulatory asset1
5 — 
Costs incurred and capitalized1 1 
Retention benefit liability at the end of the period2
$17 $16 
1Includes $1 million for the three months ended September 30, 2021.
2Includes current portion of other liabilities of $5 million at September 30, 2021 and $7 million at September 30, 2020.
Schedule of Discontinued Operations
The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Three Months EndedNine Months Ended
September 302021202020212020
Operating revenue$70 $68 $209 $191 
Expenses
Operating expenses17 39 60 104 
Interest expense11 13 34 43 
Income before income taxes$42 $16 $115 $44 
Transaction costs(3)— (8)— 
Income from discontinued operations before income taxes$39 $16 $107 $44 
Income tax expense9 4 25 10 
Income from discontinued operations, net of tax$30 $12 $82 $34 
The table below presents the aggregate carrying amounts for the major classes of assets and liabilities held for sale related to EnerBank:
In Millions
September 30, 2021December 31, 2020
Assets
Current
Cash and cash equivalents$104 $136 
Accounts receivable and other current assets143 18 
Notes receivable, less allowance of $28 in 2021 and $32 in 2020
247 275 
Total current assets$494 

$429 
Non‑current
Plant, property, and equipment, net$29 $22 
Notes receivable, less allowance of $84 in 2021 and $91 in 2020
2,532 2,612 
Other non‑current assets45 46 
Total non‑current assets$2,606 

$2,680 
Total assets$3,100 $3,109 
Liabilities
Current
Current portion of long-term debt$1,199 $915 
Accounts payable and other current liabilities34 38 
Total current liabilities$1,233 

$953 
Non‑current
Long-term debt$1,522 $1,890 
Other non‑current liabilities1 4 
Total non‑current liabilities$1,523 

$1,894 
Total liabilities$2,756 $2,847 
Consumers Energy Company  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Restructuring Reserve by Type of Cost Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Nine Months Ended
September 3020212020
Retention benefit liability at beginning of period$11 $4 
Costs incurred and charged to maintenance and other operating expenses— 11 
Costs deferred as a regulatory asset1
5 — 
Costs incurred and capitalized1 1 
Retention benefit liability at the end of the period2
$17 $16 
1Includes $1 million for the three months ended September 30, 2021.
2Includes current portion of other liabilities of $5 million at September 30, 2021 and $7 million at September 30, 2020.
v3.21.2
Regulatory Matters - Quarterly Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Public Utilities, General Disclosures [Line Items]          
Regulatory liabilities $ 191   $ 191   $ 151
Operating Revenue 1,725 $ 1,507 5,296 $ 4,691  
Consumers Energy Company          
Public Utilities, General Disclosures [Line Items]          
Regulatory liabilities 191   191   151
Operating Revenue 1,644 $ 1,450 5,074 $ 4,524  
Consumers Energy Company | Reserve for customer refunds          
Public Utilities, General Disclosures [Line Items]          
Regulatory liabilities 8   8   28
Consumers Energy Company | Gain shared with customers          
Public Utilities, General Disclosures [Line Items]          
Regulatory liabilities         14
Consumers Energy Company | Electric Rate Case          
Public Utilities, General Disclosures [Line Items]          
Recommended disallowed costs 39   39    
Consumers Energy Company | Energy Waste Reduction Plan Incentive          
Public Utilities, General Disclosures [Line Items]          
Requested recovery/collection $ 42   $ 42    
Operating Revenue         $ 42
v3.21.2
Contingencies and Commitments (Contingencies And Commitments) (Details)
$ in Thousands
 1 Months Ended 3 Months Ended 9 Months Ended 32 Months Ended
Sep. 30, 2020
USD ($)
May 31, 2020
USD ($)
Sep. 30, 2021
USD ($)
site
MW
Sep. 30, 2020
USD ($)
Sep. 30, 2021
USD ($)
site
MW
Sep. 30, 2020
USD ($)
Sep. 30, 2021
USD ($)
site
MW
Dec. 31, 2020
USD ($)
Loss Contingencies [Line Items]                
Regulatory assets     $ 2,588,000   $ 2,588,000   $ 2,588,000 $ 2,653,000
Operating Revenue     1,725,000 $ 1,507,000 5,296,000 $ 4,691,000    
Consumers Energy Company                
Loss Contingencies [Line Items]                
Regulatory assets     2,588,000   2,588,000   2,588,000 $ 2,653,000
Cost of gas sold     53,000 33,000 425,000 383,000    
Maintenance and other operating expenses     (390,000) (266,000) (1,021,000) (846,000)    
Operating Revenue     1,644,000 $ 1,450,000 5,074,000 $ 4,524,000    
Consumers Energy Company | Manufactured Gas Plant                
Loss Contingencies [Line Items]                
Regulatory assets     114,000   114,000   114,000  
Bay Harbor                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies     $ 44,000   $ 44,000   $ 44,000  
Discounted projected costs rate     4.34%   4.34%   4.34%  
Accrual for environmental loss contingencies, inflation rate     1.00%   1.00%   1.00%  
Remaining undiscounted obligation amount     $ 54,000   $ 54,000   $ 54,000  
CERCLA Liability | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies     3,000   3,000   3,000  
CERCLA Liability | Minimum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs     3,000   3,000   3,000  
CERCLA Liability | Maximum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs     8,000   8,000   8,000  
Manufactured Gas Plant | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies     $ 57,000   $ 57,000   $ 57,000  
Discounted projected costs rate     2.57%   2.57%   2.57%  
Accrual for environmental loss contingencies, inflation rate     2.50%   2.50%   2.50%  
Remaining undiscounted obligation amount     $ 62,000   $ 62,000   $ 62,000  
Number of former MGPs | site     23   23   23  
Regulatory asset collection period         10 years      
Electric Utility | NREPA | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies     $ 2,000   $ 2,000   $ 2,000  
Electric Utility | NREPA | Minimum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs     2,000   2,000   2,000  
Electric Utility | NREPA | Maximum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs     4,000   4,000   4,000  
Gas Utility | NREPA | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies     1,000   1,000   1,000  
Gas Utility | NREPA | Maximum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies     3,000   3,000   3,000  
Equatorial Guinea Tax Claim                
Loss Contingencies [Line Items]                
Foreign government tax claim on sale     $ 152,000   $ 152,000   $ 152,000  
Civil Case, Consumers V. MPSC Staff | Consumers Energy Company                
Loss Contingencies [Line Items]                
Civil penalty   $ 10            
New Covert Generating Facility | Consumers Energy Company                
Loss Contingencies [Line Items]                
Nameplate capacity (in MW) | MW     1,176   1,176   1,176  
Long-term purchase commitment, amount         $ 810,000      
Enterprise Segment Generating Units | Consumers Energy Company                
Loss Contingencies [Line Items]                
Nameplate capacity (in MW) | MW     1,001   1,001   1,001  
Long-term purchase commitment, amount         $ 515,000      
Ray Compressor Station | Consumers Energy Company                
Loss Contingencies [Line Items]                
Plant additions             $ 17,000  
Insurance recoveries     $ 10,000   10,000   $ 10,000  
Ray Compressor Station | Consumers Energy Company | Insurance Recoveries                
Loss Contingencies [Line Items]                
Reduction to plant, property and equipment         4,000      
Maintenance and other operating expenses         3,000      
Operating Revenue         $ 3,000      
Ray Compressor Station | Consumers Energy Company | GCR underrecoveries                
Loss Contingencies [Line Items]                
Cost of gas sold $ 7,000              
v3.21.2
Contingencies and Commitments (Expected Remediation Cost By Year) (Details)
$ in Millions
Sep. 30, 2021
USD ($)
Bay Harbor  
Site Contingency [Line Items]  
2021 $ 1
2022 4
2023 4
2024 4
2025 4
2026 4
Manufactured Gas Plant | Consumers Energy Company  
Site Contingency [Line Items]  
2021 1
2022 4
2023 9
2024 24
2025 11
2026 $ 1
v3.21.2
Contingencies and Commitments (Guarantees) (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2021
USD ($)
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership  
Guarantees And Other Contingencies [Line Items]  
Ownership percentage 49.00%
Guarantees  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 30
Carrying Amount $ 0
Guarantees | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 30
Carrying Amount $ 0
Indemnification Agreement From Purchase Of Variable Interest Entity  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 320
Carrying Amount $ 0
Indemnity Obligations From Stock And Asset Sales Agreements  
Guarantees And Other Contingencies [Line Items]  
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
v3.21.2
Financings And Capitalization (Major Long-Term Debt Transactions) (Details) - First Mortgage Bonds - 2.650% First Mortgage Bonds Due 2052 - Consumers Energy Company
$ in Millions
Sep. 30, 2021
USD ($)
Debt Instrument [Line Items]  
Principal Balance $ 300
Interest rate 2.65%
v3.21.2
Financings And Capitalization (Narrative) (Details)
 1 Months Ended 9 Months Ended
Jul. 01, 2021
USD ($)
$ / shares
shares
Oct. 28, 2021
USD ($)
Dec. 31, 2020
USD ($)
Sep. 30, 2021
USD ($)
shares
Sep. 30, 2020
USD ($)
Jul. 31, 2020
USD ($)
Financing And Capitalization [Line Items]            
Limitation on payment of stock dividends       $ 5,900,000,000    
Dividends paid       570,000,000    
Stock offering program maximum value       $ 500,000,000    
Number of shares required to settle forward contracts (in shares) | shares       10,266    
Issuance of preferred stock, net of issuance costs       $ 224,000,000 $ 0  
Term Loan Facility Due November 2021 | Subsequent Event            
Financing And Capitalization [Line Items]            
Debt retirement, principal   $ 200,000,000        
Series C Preferred Stock Depositary Shares            
Financing And Capitalization [Line Items]            
Number of shares issued (in shares) | shares 9,200,000          
Depositary share conversion ratio 0.001          
Issue price (in dollars per share) | $ / shares $ 25.00          
Issuance of preferred stock, net of issuance costs $ 224,000,000          
Dividend rate 4.20%          
Optional redemption price (in dollars per share) | $ / shares $ 25.00          
Series C Preferred Stock            
Financing And Capitalization [Line Items]            
Optional redemption price (in dollars per share) | $ / shares $ 25,000          
Consumers Energy Company            
Financing And Capitalization [Line Items]            
Notes payable – related parties     $ 307,000,000 0    
Unrestricted retained earnings       1,800,000,000    
Consumers Energy Company | Tax Exempt Revenue Bonds Due 2035 | Tax Exempt Revenue Bonds            
Financing And Capitalization [Line Items]            
Debt repurchased           $ 35,000,000
Consumers Energy Company | Tax Exempt Revenue Bonds Due 2026 | Tax Exempt Revenue Bonds | Subsequent Event            
Financing And Capitalization [Line Items]            
Debt reissued   $ 35,000,000        
Interest rate   0.875%        
Consumers Energy Company | Credit Agreement            
Financing And Capitalization [Line Items]            
Maximum borrowing capacity     $ 350,000,000      
Notes payable – related parties       0    
Consumers Energy Company | Credit Agreement | Subsequent Event            
Financing And Capitalization [Line Items]            
Maximum borrowing capacity   $ 500,000,000        
Consumers Energy Company | Credit Agreement | London Interbank Offered Rate (LIBOR)            
Financing And Capitalization [Line Items]            
Basis spread on variable rate     0.10%      
Consumers Energy Company | Commercial Paper            
Financing And Capitalization [Line Items]            
Short-term debt authorized borrowings       500,000,000    
Short-term borrowings outstanding       $ 0    
v3.21.2
Financings And Capitalization (Revolving Credit Facilities) (Details)
Sep. 30, 2021
USD ($)
Consumers Energy Company | Revolving Credit Facilities June 5, 2024  
Line of Credit Facility [Line Items]  
Amount of Facility $ 850,000,000
Amount Borrowed 0
Letters of Credit Outstanding 12,000,000
Amount Available 838,000,000
Consumers Energy Company | Revolving Credit Facilities November 19, 2022  
Line of Credit Facility [Line Items]  
Amount of Facility 250,000,000
Amount Borrowed 0
Letters of Credit Outstanding 1,000,000
Amount Available 249,000,000
Consumers Energy Company | Revolving Credit Facilities April 18, 2022  
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 | Revolving Credit Facilities June 5, 2024  
Line of Credit Facility [Line Items]  
Amount of Facility 550,000,000
Amount Borrowed 0
Letters of Credit Outstanding 18,000,000
Amount Available 532,000,000
CMS Energy | Revolving Credit Facilities September 23, 2022  
Line of Credit Facility [Line Items]  
Amount of Facility 31,000,000
Amount Borrowed 0
Letters of Credit Outstanding 31,000,000
Amount Available 0
CMS Energy | Revolving Credit Facilities September 23, 2022 | Letter of Credit  
Line of Credit Facility [Line Items]  
Amount of Facility 50,000,000
CMS Enterprises Including Subsidiaries | Revolving Credit Facilities September 25, 2025  
Line of Credit Facility [Line Items]  
Amount of Facility 39,000,000
Amount Borrowed 0
Letters of Credit Outstanding 39,000,000
Amount Available 0
CMS Enterprises Including Subsidiaries | Revolving Credit Facilities September 30, 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
Letter of Credit | CMS Enterprises Including Subsidiaries | Revolving Credit Facilities September 30, 2025  
Line of Credit Facility [Line Items]  
Amount Available $ 8,000,000
v3.21.2
Financings and Capitalization (Forward Stock Contracts) (Details) - $ / shares
Sep. 30, 2021
Dec. 22, 2020
Sep. 15, 2020
Forward Contracts Entered Into September 15, 2020 And Maturing June 30, 2022      
Debt and Equity Securities, FV-NI [Line Items]      
Number of Shares     846,759
Initial forward price (in dollars per share) $ 59.01   $ 61.04
Forward Contracts Entered Into December 22, 2020 And Maturing June 22, 2022      
Debt and Equity Securities, FV-NI [Line Items]      
Number of Shares   115,595  
Initial forward price (in dollars per share) $ 60.27 $ 61.81  
v3.21.2
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Assets    
Restricted cash equivalents $ 30 $ 17
Derivative instruments 2 1
Liabilities    
Derivative instruments 9 11
Consumers Energy Company    
Assets    
Restricted cash equivalents 26 15
Derivative instruments 2 1
Liabilities    
Derivative instruments 0 0
Fair Value, Inputs, Level 1    
Assets    
Restricted cash equivalents 30 17
Nonqualified deferred compensation plan assets 25 23
Liabilities    
Nonqualified deferred compensation plan liabilities 25 23
Fair Value, Inputs, Level 1 | Consumers Energy Company    
Assets    
Restricted cash equivalents 26 15
Nonqualified deferred compensation plan assets 20 18
Liabilities    
Nonqualified deferred compensation plan liabilities 20 18
Fair Value, Inputs, Level 1, 2 and 3    
Assets    
Total assets 57 41
Liabilities    
Total liabilities 34 34
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company    
Assets    
Total assets 48 34
Liabilities    
Total liabilities $ 20 $ 18
v3.21.2
Fair Value Measurements - Narrative (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash flow hedge gain (loss) $ 1 $ (6)  
Derivative instruments 9   $ 11
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Notional amount 81   85
Other Liabilities | Designated as Hedging Instrument | Cash Flow Hedging      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Derivative instruments $ 6   $ 9
v3.21.2
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Liabilities    
Current accounts receivable $ 9 $ 12
Current portion of long term debt 572 571
Current portion of long-term payables 22 6
Carrying Amount    
Assets    
Long-term receivables 14 17
Liabilities    
Long-term debt 12,599 12,315
Long-term payables 31 33
Fair Value    
Assets    
Long-term receivables 14 17
Liabilities    
Long-term debt 13,886 14,601
Long-term payables 32 35
Consumers Energy Company    
Liabilities    
Current accounts receivable 9 12
Current portion of long term debt 364 364
DB SERP note receivable – related party 7 7
Consumers Energy Company | Carrying Amount    
Assets    
Long-term receivables 14 17
Notes receivable related party 104 107
Liabilities    
Long-term debt 8,392 8,106
Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 14 17
Notes receivable related party 104 107
Liabilities    
Long-term debt 9,411 9,801
Level 1 | Fair Value    
Assets    
Long-term receivables 0 0
Liabilities    
Long-term debt 1,195 1,249
Long-term payables 0 0
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
Level 2 | Fair Value    
Assets    
Long-term receivables 0 0
Liabilities    
Long-term debt 10,727 11,267
Long-term payables 0 0
Level 2 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 0 0
Notes receivable related party 0 0
Liabilities    
Long-term debt 7,447 7,716
Level 3 | Fair Value    
Assets    
Long-term receivables 14 17
Liabilities    
Long-term debt 1,964 2,085
Long-term payables 32 35
Level 3 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 14 17
Notes receivable related party 104 107
Liabilities    
Long-term debt $ 1,964 $ 2,085
v3.21.2
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
DB Pension Plans        
Defined Benefit Plan, Roll Forwards [Abstract]        
Service cost $ 14 $ 12 $ 41 $ 37
Interest cost 14 20 44 61
Settlement loss 0 (1) 0 (1)
Expected return on plan assets (51) (47) (155) (143)
Amortization of        
Net loss 25 23 76 67
Prior service cost (credit) 1 0 3 1
Settlement loss 1 0 4 0
Net periodic cost (credit) 4 9 13 24
DB Pension Plans | Consumers Energy Company        
Defined Benefit Plan, Roll Forwards [Abstract]        
Service cost 14 12 40 36
Interest cost 14 20 42 59
Expected return on plan assets (49) (45) (147) (136)
Amortization of        
Net loss 24 22 73 64
Prior service cost (credit) 1 0 3 1
Settlement loss 1 0 4 0
Net periodic cost (credit) 5 9 15 24
OPEB Plan        
Defined Benefit Plan, Roll Forwards [Abstract]        
Service cost 5 4 14 12
Interest cost 6 8 17 25
Settlement loss 0 0 0 0
Expected return on plan assets (28) (25) (82) (75)
Amortization of        
Net loss 2 4 6 11
Prior service cost (credit) (14) (14) (40) (42)
Settlement loss 0 0 0 0
Net periodic cost (credit) (29) (23) (85) (69)
OPEB Plan | Consumers Energy Company        
Defined Benefit Plan, Roll Forwards [Abstract]        
Service cost 4 3 13 11
Interest cost 6 8 17 24
Expected return on plan assets (26) (23) (77) (70)
Amortization of        
Net loss 2 4 6 11
Prior service cost (credit) (12) (13) (38) (40)
Settlement loss 0 0 0 0
Net periodic cost (credit) $ (26) $ (21) $ (79) $ (64)
v3.21.2
Income Taxes (Schedule Of Effective Income Rate Reconciliation) (Details) - USD ($)
$ in Millions
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
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 5.50% 4.80%  
TCJA excess deferred taxes (5.80%) (4.30%)  
Production tax credits (4.80%) (3.30%)  
Accelerated flow-through of regulatory tax benefits (3.20%) (1.60%)  
Research and development tax credits, net (0.30%) (1.60%)  
Refund of alternative minimum tax sequestration 0.00% (1.40%)  
Other, net 0.40% 0.10%  
Effective tax rate 12.80% 13.70%  
Refund of alternative minimum tax sequestration     $ (9)
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 5.20% 5.00%  
TCJA excess deferred taxes (4.60%) (3.60%)  
Production tax credits (3.50%) (1.90%)  
Accelerated flow-through of regulatory tax benefits (2.20%) (1.10%)  
Research and development tax credits, net (0.30%) (1.30%)  
Other, net (0.20%) (0.30%)  
Effective tax rate 15.40% 17.80%  
Research Tax Credit Carryforward      
Increase (decrease) in income taxes from:      
Increase (decrease) in tax credit carryforward     9
Research Tax Credit Carryforward | Consumers Energy Company      
Increase (decrease) in income taxes from:      
Increase (decrease) in tax credit carryforward     $ 8
v3.21.2
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Income available to common stockholders        
Income from continuing operations $ 153 $ 198 $ 614 $ 556
Loss attributable to noncontrolling interests (6) (8) (18) (7)
Preferred stock dividends 3 0 3 0
Income from continuing operations available to common stockholders – basic and diluted $ 156 $ 206 $ 629 $ 563
Average common shares outstanding        
Weighted average shares - basic (in shares) 289.1 285.6 288.9 284.8
Dilutive nonvested stock awards (in shares) 0.5 0.8 0.5 0.9
Dilutive forward equity sale contracts (in shares) 0.0 0.5 0.0 0.6
Weighted average shares - diluted (in shares) 289.6 286.9 289.4 286.3
Income from continuing operations per average common share available to common stockholders - Basic (in dollars per share) $ 0.54 $ 0.72 $ 2.18 $ 1.98
Income from continuing operations per average common share available to common stockholders - Diluted (in dollars per share) $ 0.54 $ 0.72 $ 2.18 $ 1.97
v3.21.2
Revenue (Components of Operating Revenue) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers $ 1,671 $ 1,468 $ 5,148 $ 4,569
Leasing income 50 36 136 110
Financing income 3 3 11 12
Consumers alternative-revenue programs     1  
Total operating revenue 1,725 1,507 5,296 4,691
Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 1,416 1,255 3,705 3,300
Financing income 2 2 7 7
Consumers alternative-revenue programs     1  
Total operating revenue 1,419 1,257 3,713 3,307
Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 224 192 1,357 1,212
Financing income 1 1 4 5
Consumers alternative-revenue programs     0  
Total operating revenue 225 193 1,361 1,217
Enterprises | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 31 21 86 57
Leasing income 50 36 136 110
Total operating revenue 81 57 222 167
Variable lease income 35 23 94 69
Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 1,640 1,447 5,062 4,512
Financing income 3 3 11 12
Consumers alternative-revenue programs 1   1  
Total operating revenue 1,644 1,450 5,074 4,524
Consumers Energy Company | Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 1,416 1,255 3,705 3,300
Financing income 2 2 7 7
Consumers alternative-revenue programs 1   1  
Total operating revenue 1,419 1,257 3,713 3,307
Consumers Energy Company | Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 224 192 1,357 1,212
Financing income 1 1 4 5
Consumers alternative-revenue programs 0   0  
Total operating revenue 225 193 1,361 1,217
Residential | Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 861 744 2,764 2,431
Residential | Consumers Energy Company | Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 718 624 1,847 1,612
Residential | Consumers Energy Company | Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 143 120 917 819
Commercial | Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 492 440 1,449 1,320
Commercial | Consumers Energy Company | Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 456 413 1,191 1,093
Commercial | Consumers Energy Company | Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 36 27 258 227
Industrial | Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 172 166 494 459
Industrial | Consumers Energy Company | Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 167 161 458 427
Industrial | Consumers Energy Company | Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 5 5 36 32
Other        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 31 21 86 57
Other | Enterprises | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 31 21 86 57
Other | Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 115 97 355 302
Other | Consumers Energy Company | Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 75 57 209 168
Other | Consumers Energy Company | Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers $ 40 $ 40 $ 146 $ 134
v3.21.2
Revenue (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Disaggregation of Revenue [Line Items]          
Unbilled receivables $ 340   $ 340   $ 437
Consumers Energy Company          
Disaggregation of Revenue [Line Items]          
Unbilled receivables 340   340   $ 437
Accounts Receivable          
Disaggregation of Revenue [Line Items]          
Bad debt expense 6 $ 5 17 $ 18  
Accounts Receivable | Consumers Energy Company          
Disaggregation of Revenue [Line Items]          
Bad debt expense $ 6 $ 5 $ 17 $ 18  
v3.21.2
Cash And Cash Equivalents (Schedule Of Cash And Cash Equivalents, Including Restricted Amounts) (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Sep. 30, 2020
Dec. 31, 2019
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 102 $ 32    
Restricted cash and cash equivalents 30 17    
Cash and cash equivalents, including restricted amounts 236 185 $ 558 $ 157
Discontinued Operations, Held-for-sale        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents 104 136    
Consumers Energy Company        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents 29 20    
Restricted cash and cash equivalents 26 15    
Cash and cash equivalents, including restricted amounts $ 55 $ 35 $ 223 $ 28
v3.21.2
Reportable Segments (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Segment Reporting Information [Line Items]          
Operating Revenue $ 1,725 $ 1,507 $ 5,296 $ 4,691  
Net income available to common stockholders 186 218 711 597  
Plant, property, and equipment, gross 29,450   29,450   $ 27,870
Assets 30,513   30,513   29,666
Consumers Energy Company          
Segment Reporting Information [Line Items]          
Operating Revenue 1,644 1,450 5,074 4,524  
Net income available to common stockholders 186 230 711 624  
Plant, property, and equipment, gross 28,331   28,331   26,757
Assets 26,189   26,189   25,399
Other reconciling items          
Segment Reporting Information [Line Items]          
Net income available to common stockholders (7) (25) (27) (62)  
Plant, property, and equipment, gross 22   22   21
Assets 3,177   3,177   3,132
Other reconciling items | Consumers Energy Company          
Segment Reporting Information [Line Items]          
Net income available to common stockholders 0 0 (1) (1)  
Plant, property, and equipment, gross 22   22   21
Assets 18   18   29
Electric Utility | Operating Segments          
Segment Reporting Information [Line Items]          
Operating Revenue 1,419 1,257 3,713 3,307  
Net income available to common stockholders 195 226 504 463  
Plant, property, and equipment, gross 17,992   17,992   17,155
Assets 16,092   16,092   15,829
Electric Utility | Operating Segments | Consumers Energy Company          
Segment Reporting Information [Line Items]          
Operating Revenue 1,419 1,257 3,713 3,307  
Net income available to common stockholders 195 226 504 463  
Plant, property, and equipment, gross 17,992   17,992   17,155
Assets 16,154   16,154   15,893
Gas Utility | Operating Segments          
Segment Reporting Information [Line Items]          
Operating Revenue 225 193 1,361 1,217  
Net income available to common stockholders (9) 4 208 162  
Plant, property, and equipment, gross 10,317   10,317   9,581
Assets 9,969   9,969   9,429
Gas Utility | Operating Segments | Consumers Energy Company          
Segment Reporting Information [Line Items]          
Operating Revenue 225 193 1,361 1,217  
Net income available to common stockholders (9) 4 208 162  
Plant, property, and equipment, gross 10,317   10,317   9,581
Assets 10,017   10,017   9,477
Enterprises | Operating Segments          
Segment Reporting Information [Line Items]          
Operating Revenue 81 57 222 167  
Net income available to common stockholders 7 $ 13 26 $ 34  
Plant, property, and equipment, gross 1,119   1,119   1,113
Assets $ 1,275   $ 1,275   $ 1,276
v3.21.2
Variable Interest Entities (Narrative) (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2021
USD ($)
MW
Dec. 31, 2020
USD ($)
Variable Interest Entity [Line Items]    
Investments $ 73 $ 70
Variable Interest Entity, Primary Beneficiary | Aviator Wind    
Variable Interest Entity [Line Items]    
Ownership interest 51.00%  
Nameplate capacity (in MW) | MW 525  
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership    
Variable Interest Entity [Line Items]    
Noncontrolling ownership interest 49.00%  
Variable Interest Entity, Not Primary Beneficiary    
Variable Interest Entity [Line Items]    
Investments $ 73 $ 70
Variable Interest Entity, Not Primary Beneficiary | T.E.S. Filer City    
Variable Interest Entity [Line Items]    
Ownership interest 50.00%  
Variable Interest Entity, Not Primary Beneficiary | Grayling    
Variable Interest Entity [Line Items]    
Ownership interest 50.00%  
Variable Interest Entity, Not Primary Beneficiary | Genesee    
Variable Interest Entity [Line Items]    
Ownership interest 50.00%  
Variable Interest Entity, Not Primary Beneficiary | Craven    
Variable Interest Entity [Line Items]    
Ownership interest 50.00%  
v3.21.2
Variable Interest Entities (Consolidated Information of Variable Interest Entity) (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Variable Interest Entity [Line Items]    
Cash and cash equivalents $ 102 $ 32
Accounts receivable 713 853
Prepayments and other current assets 130 104
Plant, property, and equipment, net 21,934 21,017
Total Assets 30,513 29,666
Accounts payable 787 661
Asset retirement obligations 599 553
Variable Interest Entity, Primary Beneficiary    
Variable Interest Entity [Line Items]    
Cash and cash equivalents 15 7
Accounts receivable 8 5
Prepayments and other current assets 1 1
Plant, property, and equipment, net 675 692
Total Assets 699 705
Accounts payable 13 3
Asset retirement obligations 20 19
Total liabilities $ 33 $ 22
v3.21.2
Exit Activities and Discontinued Operations - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 24 Months Ended
Oct. 01, 2021
Dec. 31, 2021
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Discontinued Operations, Held-for-sale | EnerBank              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Gain from divestiture of business     $ (3) $ 0 $ (8) $ 0  
Discontinued Operations, Held-for-sale | EnerBank | Subsequent Event              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Proceeds from divestiture of businesses $ 1,000            
Discontinued Operations, Held-for-sale | EnerBank | Forecast | Subsequent Event              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Gain from divestiture of business   $ 660          
Retention Benefits | D.E. Karn Generating Complex              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Expected cost     35   35   $ 35
Retention and severance costs         0 11 16
Costs incurred and capitalized         1 $ 1  
Retention Benefits | D.E. Karn Generating Complex | Retention Incentive Program              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Regulatory asset     $ 5   $ 5   5
Retention Benefits | D.E. Karn Generating Complex | Property, Plant and Equipment              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Costs incurred and capitalized             $ 4
v3.21.2
Exit Activities and Discontinued Operations - Schedule of Retention Benefit Liability Roll Forward (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 24 Months Ended
Sep. 30, 2021
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Dec. 31, 2020
Restructuring Reserve [Roll Forward]          
Other current liabilities $ 183 $ 183   $ 183 $ 133
Retention Benefits | D.E. Karn Generating Complex          
Restructuring Reserve [Roll Forward]          
Retention benefit liability at beginning of period   11 $ 4    
Costs incurred and charged to maintenance and other operating expenses   0 11 16  
Costs deferred as a regulatory asset 1 5 0    
Costs incurred and capitalized   1 1    
Retention benefit liability at the end of the period 17 17 16 17  
Other current liabilities $ 5 $ 5 $ 7 $ 5  
v3.21.2
Exit Activities and Discontinued Operations - Income from Discontinued Operations (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Income tax expense $ 9 $ 4 $ 25 $ 10
Income from discontinued operations, net of tax 30 12 82 34
Discontinued Operations, Held-for-sale | EnerBank        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Operating revenue 70 68 209 191
Operating expenses 17 39 60 104
Interest expense 11 13 34 43
Income before income taxes 42 16 115 44
Transaction costs (3) 0 (8) 0
Income from discontinued operations before income taxes 39 16 107 44
Income tax expense 9 4 25 10
Income from discontinued operations, net of tax $ 30 $ 12 $ 82 $ 34
v3.21.2
Exit Activities and Discontinued Operations - Assets and Liabilities of Discontinued Operation (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Current    
Total current assets $ 494 $ 429
Non‑current    
Total non‑current assets 2,606 2,680
Current    
Total current liabilities 1,233 953
Non‑current    
Total non‑current liabilities 1,523 1,894
Discontinued Operations, Held-for-sale    
Current    
Cash and cash equivalents 104 136
Discontinued Operations, Held-for-sale | EnerBank    
Current    
Cash and cash equivalents 104 136
Accounts receivable and other current assets 143 18
Notes receivable, allowance, current 28 32
Notes receivable, less allowance of $28 in 2021 and $32 in 2020 247 275
Total current assets 494 429
Non‑current    
Plant, property, and equipment, net 29 22
Notes receivable, allowance, noncurrent 84 91
Notes receivable, less allowance of $84 in 2021 and $91 in 2020 2,532 2,612
Other non‑current assets 45 46
Total non‑current assets 2,606 2,680
Total assets 3,100 3,109
Current    
Current portion of long-term debt 1,199 915
Accounts payable and other current liabilities 34 38
Total current liabilities 1,233 953
Non‑current    
Long-term debt 1,522 1,890
Other non‑current liabilities 1 4
Total non‑current liabilities 1,523 1,894
Total liabilities $ 2,756 $ 2,847