CMS ENERGY CORP, 10-Q filed on 5/3/2022
Quarterly Report
v3.22.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2022
Apr. 11, 2022
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2022  
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   290,129,103
Entity Central Index Key 0000811156  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q1  
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: $4.50 Series  
Trading Symbol CMS-PB  
Security Exchange Name NYSE  
v3.22.1
CMS Energy Corporation Consolidated Statements of Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Operating Revenue $ 2,374 $ 2,013
Operating Expenses    
Fuel for electric generation 167 138
Purchased power – related parties 17 18
Maintenance and other operating expenses 334 311
Depreciation and amortization 345 338
General taxes 132 122
Total operating expenses 1,918 1,583
Operating Income 456 430
Other Income (Expense)    
Interest income 1 1
Allowance for equity funds used during construction 2 1
Income from equity method investees 0 2
Non-operating retirement benefits, net 48 41
Other income 1 1
Other expense (4) (2)
Total other income 48 44
Interest Charges    
Interest on long-term debt 121 119
Interest expense – related parties 3 3
Other interest expense 1 3
Allowance for borrowed funds used during construction (1) (1)
Total interest charges 124 124
Income Before Income Taxes 380 350
Income Tax Expense 39 42
Income From Continuing Operations 341 308
Income From Discontinued Operations, Net of Tax of $1 and $9 4 34
Net Income 345 342
Loss Attributable to Noncontrolling Interests (8) (7)
Net Income Attributable to CMS Energy 353 349
Preferred Stock Dividends 2 0
Net Income Available to Common Stockholders $ 351 $ 349
Basic Earnings Per Average Common Share    
Basic earnings per average common share, income from continuing operations per average common share available to common stockholders (in dollars per share) $ 1.20 $ 1.09
Basic earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) 0.01 0.12
Basic earnings per average common share (in dollars per share) 1.21 1.21
Diluted Earnings Per Average Common Share    
Diluted earnings per average common share, income from continuing operations per average common share available to common stockholders (in dollars per share) 1.20 1.09
Diluted earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) 0.01 0.12
Diluted earnings per average common share (in dollars per share) $ 1.21 $ 1.21
Purchased and interchange power    
Operating Expenses    
Cost of goods and services sold $ 455 $ 377
Cost of gas sold    
Operating Expenses    
Cost of goods and services sold $ 468 $ 279
v3.22.1
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Statement of Comprehensive Income [Abstract]    
Net Income $ 345 $ 342
Retirement Benefits Liability    
Net gain arising during the period 2 0
Amortization of net actuarial loss, net of tax 1 1
Derivatives    
Unrealized gain on derivative instruments, net of tax of $1 and $— 2 1
Other Comprehensive Income 5 2
Comprehensive Income 350 344
Comprehensive Loss Attributable to Noncontrolling Interests (8) (7)
Comprehensive Income Attributable to CMS Energy $ 358 $ 351
v3.22.1
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Statement of Comprehensive Income [Abstract]    
Net gain (loss) arising during the period, tax $ 1 $ 0
Amortization of net actuarial loss, tax 0 0
Unrealized gain (loss) on derivative instruments, tax $ 1 $ 0
v3.22.1
CMS Energy Corporation Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Cash Flows from Operating Activities    
Net Income $ 345 $ 342
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation and amortization 345 338
Deferred income taxes and investment tax credits 33 48
Gain from sale of EnerBank (5) 0
Other non‑cash operating activities and reconciling adjustments (22) (13)
Changes in assets and liabilities    
Accounts receivable and accrued revenue (121) 29
Inventories 213 168
Accounts payable and accrued rate refunds (129) (109)
Other current assets and liabilities 7 (12)
Other non‑current assets and liabilities 41 41
Net cash provided by operating activities 707 832
Cash Flows from Investing Activities    
Capital expenditures (excludes assets placed under finance lease) (520) (436)
Net proceeds from sale of EnerBank 5 0
Net cash provided by discontinued operations 0 178
Cost to retire property and other investing activities (24) (25)
Net cash used in investing activities (539) (283)
Cash Flows from Financing Activities    
Retirement of debt (3) (2)
Issuance of common stock 4 9
Payment of dividends on common and preferred stock (136) (126)
Net cash used in discontinued operations 0 (73)
Other financing costs (35) (18)
Net cash used in financing activities (170) (210)
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts (2) 339
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 476 185
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 474 524
Non‑cash transactions    
Capital expenditures not paid $ 128 $ 87
v3.22.1
CMS Energy Corporation Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Current Assets    
Cash and cash equivalents $ 446 $ 452
Restricted cash and cash equivalents 28 24
Accounts receivable and accrued revenue 1,042 931
Accounts receivable – related parties 10 12
Inventories at average cost    
Gas in underground storage 233 462
Materials and supplies 174 168
Generating plant fuel stock 47 37
Deferred property taxes 287 356
Regulatory assets 34 46
Prepayments and other current assets 158 139
Total current assets 2,459 2,627
Plant, Property, and Equipment    
Plant, property, and equipment, gross 30,199 29,893
Less accumulated depreciation and amortization 8,543 8,502
Plant, property, and equipment, net 21,656 21,391
Construction work in progress 884 961
Total plant, property, and equipment 22,540 22,352
Other Non‑current Assets    
Regulatory assets 2,138 2,259
Accounts receivable 30 30
Investments 71 71
Other 1,502 1,414
Total other non‑current assets 3,741 3,774
Total Assets 28,740 28,753
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 382 382
Accounts payable 687 875
Accounts payable – related parties 8 11
Accrued rate refunds 0 12
Accrued interest 112 107
Accrued taxes 389 515
Regulatory liabilities 92 146
Other current liabilities 144 156
Total current liabilities 1,814 2,204
Non‑current Liabilities    
Long-term debt 12,045 12,046
Non-current portion of finance leases and other financing 46 46
Regulatory liabilities 3,874 3,802
Postretirement benefits 140 142
Asset retirement obligations 619 628
Deferred investment tax credit 111 112
Deferred income taxes 2,315 2,210
Other non‑current liabilities 371 375
Total non‑current liabilities 19,521 19,361
Commitments and Contingencies
Common stockholders’ equity    
Common stock 3 3
Other paid-in capital 5,406 5,406
Accumulated other comprehensive loss (54) (59)
Retained earnings 1,275 1,057
Total common stockholders’ equity 6,630 6,407
Cumulative preferred stock 224 224
Total stockholders’ equity 6,854 6,631
Noncontrolling interests 551 557
Total equity 7,405 7,188
Total Liabilities and Equity $ 28,740 $ 28,753
v3.22.1
CMS Energy Corporation Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Accounts receivable and accrued revenue, allowance $ 20 $ 20
Common stock authorized (in shares) 350,000,000.0 350,000,000.0
Common stock outstanding (in shares) 290,100,000 289,800,000
Series C Preferred Stock Depositary Shares    
Preferred stock authorized (in shares) 9,200,000 9,200,000
Preferred stock outstanding (in shares) 9,200,000 9,200,000
v3.22.1
CMS Energy Corporation 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
Cumulative Preferred Stock
Noncontrolling Interests
Total Equity at Beginning of Period at Dec. 31, 2020 $ 6,077 $ 3 $ 5,365 $ (86) $ (80) $ (6) $ 214   $ 581
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Common stock issued     15            
Common stock repurchased     (9)            
Net gain arising during the period 0       0        
Amortization of net actuarial loss 1       1        
Unrealized gain on derivative instruments 1         1      
Contribution from noncontrolling interest                 1
Net Income 342           349   (7)
Dividends declared on common stock             (126)    
Dividends declared on preferred stock             0    
Total Equity at End of Period at Mar. 31, 2021 $ 6,302 3 5,371 (84) (79) (5) 437 $ 0 575
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                
Total Equity at Beginning of Period at Dec. 31, 2021 $ 7,188 3 5,406 (59) (56) (3) 1,057   557
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Common stock issued     10            
Common stock repurchased     (10)            
Net gain arising during the period 2       2        
Amortization of net actuarial loss 1       1        
Unrealized gain on derivative instruments 2         2      
Contribution from noncontrolling interest                 2
Net Income 345           353   (8)
Dividends declared on common stock             (133)    
Dividends declared on preferred stock             (2)    
Total Equity at End of Period at Mar. 31, 2022 $ 7,405 $ 3 $ 5,406 $ (54) $ (53) $ (1) $ 1,275 $ 224 $ 551
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Dividends declared per common share (in dollars per share) $ 0.4600                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0.2625                
v3.22.1
Consumers Energy Company Consolidated Statements of Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Operating Revenue $ 2,374 $ 2,013
Operating Expenses    
Operating Income 456 430
Other Income (Expense)    
Interest income 1 1
Allowance for equity funds used during construction 2 1
Non-operating retirement benefits, net 48 41
Other income 1 1
Other expense (4) (2)
Total other income 48 44
Interest Charges    
Interest on long-term debt 121 119
Interest expense – related parties 3 3
Other interest expense 1 3
Allowance for borrowed funds used during construction (1) (1)
Total interest charges 124 124
Income Before Income Taxes 380 350
Income Tax Expense 39 42
Net Income Available to Common Stockholders 351 349
Consumers Energy Company    
Operating Revenue 2,283 1,937
Operating Expenses    
Fuel for electric generation 124 106
Purchased and interchange power 437 367
Purchased power – related parties 17 18
Cost of gas sold 465 278
Maintenance and other operating expenses 313 292
Depreciation and amortization 336 329
General taxes 129 118
Total operating expenses 1,821 1,508
Operating Income 462 429
Other Income (Expense)    
Interest income 1 1
Interest and dividend income – related parties 1 1
Allowance for equity funds used during construction 2 1
Non-operating retirement benefits, net 45 38
Other income 0 1
Other expense (3) (2)
Total other income 46 40
Interest Charges    
Interest on long-term debt 75 73
Interest expense – related parties 3 3
Other interest expense 1 2
Allowance for borrowed funds used during construction (1) (1)
Total interest charges 78 77
Income Before Income Taxes 430 392
Income Tax Expense 47 56
Net Income Available to Common Stockholders $ 383 $ 336
v3.22.1
Consumers Energy Company Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Net Income $ 345 $ 342
Retirement Benefits Liability    
Amortization of net actuarial loss, net of tax 1 1
Other Comprehensive Income 5 2
Comprehensive Income 350 344
Consumers Energy Company    
Net Income 383 336
Retirement Benefits Liability    
Amortization of net actuarial loss, net of tax 1 0
Other Comprehensive Income 1 0
Comprehensive Income $ 384 $ 336
v3.22.1
Consumers Energy Company Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Amortization of net actuarial loss, tax $ 0 $ 0
Consumers Energy Company    
Amortization of net actuarial loss, tax $ 0 $ 0
v3.22.1
Consumers Energy Company Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Cash Flows from Operating Activities    
Net Income $ 345 $ 342
Adjustments to reconcile net income to net cash provided by operating activities    
Deferred income taxes and investment tax credits 33 48
Other non‑cash operating activities and reconciling adjustments (22) (13)
Changes in assets and liabilities    
Accounts receivable and accrued revenue (121) 29
Inventories 213 168
Accounts payable and accrued rate refunds (129) (109)
Other current assets and liabilities 7 (12)
Other non‑current assets and liabilities 41 41
Net cash provided by operating activities 707 832
Cash Flows from Investing Activities    
Capital expenditures (excludes assets placed under finance lease) (520) (436)
Cost to retire property and other investing activities (24) (25)
Net cash used in investing activities (539) (283)
Cash Flows from Financing Activities    
Payment of dividends on common and preferred stock (136) (126)
Other financing costs (35) (18)
Net cash used in financing activities (170) (210)
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts (2) 339
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 476 185
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 474 524
Non‑cash transactions    
Capital expenditures not paid 128 87
Consumers Energy Company    
Cash Flows from Operating Activities    
Net Income 383 336
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation and amortization 336 329
Deferred income taxes and investment tax credits 47 51
Other non‑cash operating activities and reconciling adjustments (21) (10)
Changes in assets and liabilities    
Accounts receivable and accrued revenue (118) 39
Inventories 210 168
Accounts payable and accrued rate refunds (128) (99)
Other current assets and liabilities 0 (12)
Other non‑current assets and liabilities 36 39
Net cash provided by operating activities 745 841
Cash Flows from Investing Activities    
Capital expenditures (excludes assets placed under finance lease) (506) (433)
Cost to retire property and other investing activities (23) (25)
Net cash used in investing activities (529) (458)
Cash Flows from Financing Activities    
Decrease in notes payable – related parties (392) (250)
Stockholder contribution 450 150
Payment of dividends on common and preferred stock (275) (276)
Other financing costs (5) (8)
Net cash used in financing activities (222) (384)
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts (6) (1)
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 44 35
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 38 34
Non‑cash transactions    
Capital expenditures not paid $ 122 $ 84
v3.22.1
Consumers Energy Company Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Current Assets    
Cash and cash equivalents $ 446 $ 452
Restricted cash and cash equivalents 28 24
Accounts receivable and accrued revenue 1,042 931
Accounts receivable – related parties 10 12
Inventories at average cost    
Gas in underground storage 233 462
Materials and supplies 174 168
Generating plant fuel stock 47 37
Deferred property taxes 287 356
Regulatory assets 34 46
Prepayments and other current assets 158 139
Total current assets 2,459 2,627
Other Non‑current Assets    
Regulatory assets 2,138 2,259
Accounts receivable 30 30
Other 1,502 1,414
Total other non‑current assets 3,741 3,774
Total Assets 28,740 28,753
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 382 382
Accounts payable 687 875
Accounts payable – related parties 8 11
Accrued rate refunds 0 12
Accrued interest 112 107
Accrued taxes 389 515
Regulatory liabilities 92 146
Other current liabilities 144 156
Total current liabilities 1,814 2,204
Non‑current Liabilities    
Long-term debt 12,045 12,046
Non-current portion of finance leases and other financing 46 46
Regulatory liabilities 3,874 3,802
Postretirement benefits 140 142
Asset retirement obligations 619 628
Deferred investment tax credit 111 112
Deferred income taxes 2,315 2,210
Other non‑current liabilities 371 375
Total non‑current liabilities 19,521 19,361
Commitments and Contingencies
Common stockholders’ equity    
Common stock 3 3
Other paid-in capital 5,406 5,406
Accumulated other comprehensive loss (54) (59)
Retained earnings 1,275 1,057
Total common stockholders’ equity 6,630 6,407
Cumulative preferred stock 224 224
Total stockholders’ equity 6,854 6,631
Total Liabilities and Equity 28,740 28,753
Consumers Energy Company    
Current Assets    
Cash and cash equivalents 12 22
Restricted cash and cash equivalents 26 22
Accounts receivable and accrued revenue 1,011 905
Accounts receivable – related parties 8 9
Inventories at average cost    
Gas in underground storage 233 462
Materials and supplies 169 163
Generating plant fuel stock 46 33
Deferred property taxes 287 356
Regulatory assets 34 46
Prepayments and other current assets 121 103
Total current assets 1,947 2,121
Plant, Property, and Equipment    
Plant, property, and equipment, gross 29,076 28,771
Less accumulated depreciation and amortization 8,403 8,371
Plant, property, and equipment, net 20,673 20,400
Construction work in progress 829 915
Total plant, property, and equipment 21,502 21,315
Other Non‑current Assets    
Regulatory assets 2,138 2,259
Accounts receivable 36 36
Accounts and notes receivable – related parties 101 102
Other 1,390 1,307
Total other non‑current assets 3,665 3,704
Total Assets 27,114 27,140
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 374 374
Notes payable – related parties 0 392
Accounts payable 647 835
Accounts payable – related parties 13 16
Accrued rate refunds 0 12
Accrued interest 80 75
Accrued taxes 396 529
Regulatory liabilities 92 146
Other current liabilities 122 109
Total current liabilities 1,724 2,488
Non‑current Liabilities    
Long-term debt 8,051 8,050
Non-current portion of finance leases and other financing 46 46
Regulatory liabilities 3,874 3,802
Postretirement benefits 103 104
Asset retirement obligations 595 605
Deferred investment tax credit 111 112
Deferred income taxes 2,458 2,340
Other non‑current liabilities 314 314
Total non‑current liabilities 15,552 15,373
Commitments and Contingencies
Common stockholders’ equity    
Common stock 841 841
Other paid-in capital 7,049 6,599
Accumulated other comprehensive loss (31) (32)
Retained earnings 1,942 1,834
Total common stockholders’ equity 9,801 9,242
Cumulative preferred stock 37 37
Total stockholders’ equity 9,838 9,279
Total Liabilities and Equity $ 27,114 $ 27,140
v3.22.1
Consumers Energy Company Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Accounts receivable and accrued revenue, allowance $ 20 $ 20
Common stock authorized (in shares) 350,000,000.0 350,000,000.0
Common stock outstanding (in shares) 290,100,000 289,800,000
Consumers Energy Company    
Accounts receivable and accrued revenue, allowance $ 20 $ 20
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
v3.22.1
Consumers Energy Company Consolidated Statements of Changes in Equity (Unaudited) - USD ($)
$ in Millions
Total
Common Stock
Other Paid-in Capital
Accumulated Other Comprehensive Loss
Retirement benefits liability
Retained Earnings
Cumulative Preferred Stock
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
Consumers Energy Company
Cumulative Preferred Stock
Total Equity at Beginning of Period at Dec. 31, 2020 $ 6,077 $ 3 $ 5,365 $ (86) $ (80) $ 214   $ 8,556 $ 841 $ 6,024   $ (36) $ 1,690 $ 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   150        
Amortization of net actuarial loss 1       1     0       0    
Net Income 342         349   336         336  
Dividends declared on common stock           (126)             (276)  
Total Equity at End of Period at Mar. 31, 2021 6,302 3 5,371 (84) (79) 437 $ 0 8,766 841 6,174 $ (36)   1,750 37
Total Equity at Beginning of Period at Dec. 31, 2021 7,188 3 5,406 (59) (56) 1,057   9,279 841 6,599   (32) 1,834 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   450        
Amortization of net actuarial loss 1       1     1       $ 1    
Net Income 345         353   383         383  
Dividends declared on common stock           (133)             (275)  
Total Equity at End of Period at Mar. 31, 2022 $ 7,405 $ 3 $ 5,406 $ (54) $ (53) $ 1,275 $ 224 $ 9,838 $ 841 $ 7,049 $ (31)   $ 1,942 $ 37
v3.22.1
CMS Energy Corporation Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Income Statement [Abstract]    
Tax effect of discontinued operations $ 1 $ 9
v3.22.1
Regulatory Matters
 3 Months Ended
Mar. 31, 2022
Public Utilities, General Disclosures [Line Items]  
Regulatory Matters Regulatory Matters
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, the Residential Customer Group, 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.
General Rate Case Proceedings: In Consumers’ recent electric and gas rate proceedings, the MPSC and the MPSC Staff have recommended that Consumers be disallowed recovery of certain categories of capital expenditures.
In December 2021, the MPSC issued a final order in Consumers’ 2021 general electric rate case, disallowing cost recovery for fleet assets and certain other categories of recently completed capital expenditures incurred by Consumers. As a result, Consumers impaired a portion of these capital expenditures in 2021.
For other categories of capital expenditures, the MPSC ordered Consumers to, and Consumers believes it can, provide additional cost/benefit analysis and other information to support cost recovery. Additionally, in Consumers’ pending gas rate case, the MPSC Staff has recommended disallowance of cost recovery for similar capital expenditures. Consumers has incurred approximately $20 million related to these electric and gas programs as of March 31, 2022 and, for certain ongoing projects, expects to incur additional capital expenditures during 2022 and beyond.
While Consumers has provided the additional analysis and information requested by the MPSC to provide evidence of the prudency of such capital expenditures in its pending electric and gas rate case proceedings, it is reasonably possible that the MPSC will disallow some or all of these capital expenditures. A material disallowance of incurred capital costs could negatively affect CMS Energy’s and Consumers’ future results of operations. Consumers expects a final order in its pending gas rate case by October 2022 and in its pending electric rate case by March 2023. Consumers cannot predict the outcome of these proceedings.
In January 2022, Consumers filed a petition for rehearing that, among other things, requested that the MPSC reconsider its disallowance in the 2021 electric rate case of $11 million in capital expenditures for which the MPSC had already approved recovery in a previous rate order. In March 2022, the MPSC approved Consumers’ rehearing petition in full and authorized that the $11 million of capital expenditures be included in rate base, which resulted an additional annual rate increase of $5 million prospectively.
Energy Waste Reduction Plan Incentive: Consumers will file its 2021 energy waste reduction reconciliation in May 2022, requesting the MPSC’s approval to collect from customers the maximum performance incentive of $46 million for exceeding statutory savings targets in 2021. Consumers recognized incentive revenue under this program of $46 million in 2021.
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, the Residential Customer Group, 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.
General Rate Case Proceedings: In Consumers’ recent electric and gas rate proceedings, the MPSC and the MPSC Staff have recommended that Consumers be disallowed recovery of certain categories of capital expenditures.
In December 2021, the MPSC issued a final order in Consumers’ 2021 general electric rate case, disallowing cost recovery for fleet assets and certain other categories of recently completed capital expenditures incurred by Consumers. As a result, Consumers impaired a portion of these capital expenditures in 2021.
For other categories of capital expenditures, the MPSC ordered Consumers to, and Consumers believes it can, provide additional cost/benefit analysis and other information to support cost recovery. Additionally, in Consumers’ pending gas rate case, the MPSC Staff has recommended disallowance of cost recovery for similar capital expenditures. Consumers has incurred approximately $20 million related to these electric and gas programs as of March 31, 2022 and, for certain ongoing projects, expects to incur additional capital expenditures during 2022 and beyond.
While Consumers has provided the additional analysis and information requested by the MPSC to provide evidence of the prudency of such capital expenditures in its pending electric and gas rate case proceedings, it is reasonably possible that the MPSC will disallow some or all of these capital expenditures. A material disallowance of incurred capital costs could negatively affect CMS Energy’s and Consumers’ future results of operations. Consumers expects a final order in its pending gas rate case by October 2022 and in its pending electric rate case by March 2023. Consumers cannot predict the outcome of these proceedings.
In January 2022, Consumers filed a petition for rehearing that, among other things, requested that the MPSC reconsider its disallowance in the 2021 electric rate case of $11 million in capital expenditures for which the MPSC had already approved recovery in a previous rate order. In March 2022, the MPSC approved Consumers’ rehearing petition in full and authorized that the $11 million of capital expenditures be included in rate base, which resulted an additional annual rate increase of $5 million prospectively.
Energy Waste Reduction Plan Incentive: Consumers will file its 2021 energy waste reduction reconciliation in May 2022, requesting the MPSC’s approval to collect from customers the maximum performance incentive of $46 million for exceeding statutory savings targets in 2021. Consumers recognized incentive revenue under this program of $46 million in 2021.
v3.22.1
Contingencies and Commitments
 3 Months Ended
Mar. 31, 2022
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 renewed in January 2022 and is valid through 2025.
At March 31, 2022, CMS Energy had a recorded liability of $45 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $56 million. CMS Energy
expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2022 and in each of the next five years:
In Millions
202220232024202520262027
CMS Energy
Long-term leachate disposal and operating and maintenance costs$3 $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.
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 March 31, 2022, 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 March 31, 2022, 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.
Electric Lineworker Arbitration: In February 2021, the Utility Workers Union of America, AFL-CIO requested that Consumers conduct wage reevaluation of various electric lineworker positions. When the union and Consumers did not reach agreement on the appropriate wage levels, the union initiated arbitration proceedings. Arbitration hearings began in October 2021, but were postponed and resumed in January 2022. These hearings are expected to continue through 2022. This arbitration involves numerous and complex disputed factors. Presently, an estimate of the possible loss or range of loss cannot be made; any estimate of liability would be highly speculative. An unfavorable outcome could affect CMS Energy’s and Consumers’ financial condition, results of operation, or liquidity.
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 March 31, 2022, 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 $61 million. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2022 and in each of the next five years:
In Millions
202220232024202520262027
Consumers
Remediation and other response activity costs$3 $9 $24 $11 $1 $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 March 31, 2022, Consumers had a regulatory asset of $109 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 March 31, 2022, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount.
Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement
a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity.
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. In December 2021, Consumers filed a gas rate case with the MPSC that includes a request for recovery of the capital expenditures incurred to restore and modify the compressor station. In testimony filed in April 2022, the MPSC Staff recommended disallowance of cost recovery of such capital expenditures. Consumers incurred capital expenditures of $17 million during 2020 and 2021 to restore and modify the compressor station.
During the three months ended March 31, 2022, Consumers received an insurance recovery of $13 million related to the compressor station. Consumers had recognized the insurance recovery during 2021, recording $6 million as a reduction to plant, property, and equipment, $3 million as a reduction of maintenance and other operating expenses, and $4 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 March 31, 2022:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1
September 2020indefinite$305 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite2254 
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, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 13, Exit Activities and Discontinued Operations. 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 March 31, 2022, 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; Note 1, Regulatory Matters; and Note 13, Exit Activities and Discontinued Operations, 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 renewed in January 2022 and is valid through 2025.
At March 31, 2022, CMS Energy had a recorded liability of $45 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $56 million. CMS Energy
expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2022 and in each of the next five years:
In Millions
202220232024202520262027
CMS Energy
Long-term leachate disposal and operating and maintenance costs$3 $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.
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 March 31, 2022, 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 March 31, 2022, 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.
Electric Lineworker Arbitration: In February 2021, the Utility Workers Union of America, AFL-CIO requested that Consumers conduct wage reevaluation of various electric lineworker positions. When the union and Consumers did not reach agreement on the appropriate wage levels, the union initiated arbitration proceedings. Arbitration hearings began in October 2021, but were postponed and resumed in January 2022. These hearings are expected to continue through 2022. This arbitration involves numerous and complex disputed factors. Presently, an estimate of the possible loss or range of loss cannot be made; any estimate of liability would be highly speculative. An unfavorable outcome could affect CMS Energy’s and Consumers’ financial condition, results of operation, or liquidity.
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 March 31, 2022, 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 $61 million. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2022 and in each of the next five years:
In Millions
202220232024202520262027
Consumers
Remediation and other response activity costs$3 $9 $24 $11 $1 $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 March 31, 2022, Consumers had a regulatory asset of $109 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 March 31, 2022, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount.
Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement
a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity.
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. In December 2021, Consumers filed a gas rate case with the MPSC that includes a request for recovery of the capital expenditures incurred to restore and modify the compressor station. In testimony filed in April 2022, the MPSC Staff recommended disallowance of cost recovery of such capital expenditures. Consumers incurred capital expenditures of $17 million during 2020 and 2021 to restore and modify the compressor station.
During the three months ended March 31, 2022, Consumers received an insurance recovery of $13 million related to the compressor station. Consumers had recognized the insurance recovery during 2021, recording $6 million as a reduction to plant, property, and equipment, $3 million as a reduction of maintenance and other operating expenses, and $4 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 March 31, 2022:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1
September 2020indefinite$305 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite2254 
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, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 13, Exit Activities and Discontinued Operations. 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 March 31, 2022, 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; Note 1, Regulatory Matters; and Note 13, Exit Activities and Discontinued Operations, 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.
v3.22.1
Financings and Capitalization
 3 Months Ended
Mar. 31, 2022
Debt Instrument [Line Items]  
Financings and Capitalization Financings and Capitalization
Credit Facilities: The following credit facilities with banks were available at March 31, 2022:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 2024
$550 $— $24 $526 
September 23, 20221
42 — 42 — 
CMS Enterprises, including subsidiaries
September 25, 20252
$37 $— $37 $— 
September 30, 20253
18 — 8 10 
Consumers4
June 5, 2024
$850 $— $12 $838 
November 19, 2023
250 — 8 242 
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.
Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. In March 2022, the FERC issued an authorization for financings that was set to expire on March 31, 2023. In April 2022, FERC issued a revision of its March authorization for financings that extends the expiration to March 31, 2024.
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 March 31, 2022, there were no commercial paper notes outstanding under this program.
In December 2021, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million at an interest rate of one-month LIBOR minus 0.100 percent. There were no outstanding borrowings under the agreement at March 31, 2022.
Dividend Restrictions: At March 31, 2022, payment of dividends by CMS Energy on its common stock was limited to $6.6 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at March 31, 2022, Consumers had $1.9 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 three months ended March 31, 2022, Consumers paid $275 million in dividends on its common stock to CMS Energy.
Issuance of Common Stock: Under an existing equity issuance program, CMS Energy may sell shares of its common stock having an aggregate sales price of up to $500 million in privately negotiated transactions, in “at the market” offerings, through forward sales transactions, or otherwise.
Presented in the following table are details of CMS Energy’s forward sales contracts under this program at March 31, 2022:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialMarch 31, 2022
September 15, 2020June 30, 2022846,759$61.04 $57.99 
December 22, 2020June 22, 2022115,59561.81 59.17 
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 cash settle the contracts as of March 31, 2022, it would have been required to pay $11 million. If CMS Energy had elected to net share settle the contracts as of March 31, 2022, CMS Energy would have been required to deliver 162,487 shares.
Consumers Energy Company  
Debt Instrument [Line Items]  
Financings and Capitalization Financings and Capitalization
Credit Facilities: The following credit facilities with banks were available at March 31, 2022:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 2024
$550 $— $24 $526 
September 23, 20221
42 — 42 — 
CMS Enterprises, including subsidiaries
September 25, 20252
$37 $— $37 $— 
September 30, 20253
18 — 8 10 
Consumers4
June 5, 2024
$850 $— $12 $838 
November 19, 2023
250 — 8 242 
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.
Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. In March 2022, the FERC issued an authorization for financings that was set to expire on March 31, 2023. In April 2022, FERC issued a revision of its March authorization for financings that extends the expiration to March 31, 2024.
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 March 31, 2022, there were no commercial paper notes outstanding under this program.
In December 2021, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million at an interest rate of one-month LIBOR minus 0.100 percent. There were no outstanding borrowings under the agreement at March 31, 2022.
Dividend Restrictions: At March 31, 2022, payment of dividends by CMS Energy on its common stock was limited to $6.6 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at March 31, 2022, Consumers had $1.9 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 three months ended March 31, 2022, Consumers paid $275 million in dividends on its common stock to CMS Energy.
Issuance of Common Stock: Under an existing equity issuance program, CMS Energy may sell shares of its common stock having an aggregate sales price of up to $500 million in privately negotiated transactions, in “at the market” offerings, through forward sales transactions, or otherwise.
Presented in the following table are details of CMS Energy’s forward sales contracts under this program at March 31, 2022:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialMarch 31, 2022
September 15, 2020June 30, 2022846,759$61.04 $57.99 
December 22, 2020June 22, 2022115,59561.81 59.17 
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 cash settle the contracts as of March 31, 2022, it would have been required to pay $11 million. If CMS Energy had elected to net share settle the contracts as of March 31, 2022, CMS Energy would have been required to deliver 162,487 shares.
v3.22.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2022
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
March 31
2022		December 31
2021		March 31
2022		December 31
2021
Assets1
Cash equivalents$40 $— $— $— 
Restricted cash equivalents28 24 26 22 
Nonqualified deferred compensation plan assets26 27 20 21 
Derivative instruments1 2 1 2 
Total assets$95 $53 $47 $45 
Liabilities1
Nonqualified deferred compensation plan liabilities$26 $27 $20 $21 
Derivative instruments3 7 — — 
Total liabilities$29 $34 $20 $21 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Cash Equivalents: Cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
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 $76 million at March 31, 2022 and $78 million at December 31, 2021. 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 of $3 million for the three months ended March 31, 2022 and $1 million for the three months ended March 31, 2021. 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 $1 million at March 31, 2022 and $4 million at December 31, 2021. 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
March 31
2022		December 31
2021		March 31
2022		December 31
2021
Assets1
Cash equivalents$40 $— $— $— 
Restricted cash equivalents28 24 26 22 
Nonqualified deferred compensation plan assets26 27 20 21 
Derivative instruments1 2 1 2 
Total assets$95 $53 $47 $45 
Liabilities1
Nonqualified deferred compensation plan liabilities$26 $27 $20 $21 
Derivative instruments3 7 — — 
Total liabilities$29 $34 $20 $21 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Cash Equivalents: Cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
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 $76 million at March 31, 2022 and $78 million at December 31, 2021. 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 of $3 million for the three months ended March 31, 2022 and $1 million for the three months ended March 31, 2021. 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 $1 million at March 31, 2022 and $4 million at December 31, 2021. 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.
v3.22.1
Financial Instruments
 3 Months Ended
Mar. 31, 2022
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
March 31, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$13 $13 $— $— $13 $14 $14 $— $— $14 
Liabilities
Long-term debt2
12,418 12,510 1,140 9,578 1,792 12,419 13,800 1,189 10,656 1,955 
Long-term payables3
9 9 — — 9 31 32 — — 32 
Consumers
Assets
Long-term receivables1
$13 $13 $— $— $13 $14 $14 $— $— $14 
Notes receivable – related party4
103 103 — — 103 104 104 — — 104 
Liabilities
Long-term debt5
8,416 8,444 — 6,652 1,792 8,415 9,410 — 7,455 1,955 
1Includes current portion of long-term accounts receivable of $8 million at March 31, 2022 and $9 million at December 31, 2021.
2Includes current portion of long-term debt of $373 million at March 31, 2022 and December 31, 2021.
3Includes current portion of long-term payables of $1 million at March 31, 2022 and $23 million at December 31, 2021.
4Includes current portion of notes receivable – related party of $7 million at March 31, 2022 and December 31, 2021.
5Includes current portion of long-term debt of $365 million at March 31, 2022 and December 31, 2021.
The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028.
Consumers Energy Company  
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
March 31, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$13 $13 $— $— $13 $14 $14 $— $— $14 
Liabilities
Long-term debt2
12,418 12,510 1,140 9,578 1,792 12,419 13,800 1,189 10,656 1,955 
Long-term payables3
9 9 — — 9 31 32 — — 32 
Consumers
Assets
Long-term receivables1
$13 $13 $— $— $13 $14 $14 $— $— $14 
Notes receivable – related party4
103 103 — — 103 104 104 — — 104 
Liabilities
Long-term debt5
8,416 8,444 — 6,652 1,792 8,415 9,410 — 7,455 1,955 
1Includes current portion of long-term accounts receivable of $8 million at March 31, 2022 and $9 million at December 31, 2021.
2Includes current portion of long-term debt of $373 million at March 31, 2022 and December 31, 2021.
3Includes current portion of long-term payables of $1 million at March 31, 2022 and $23 million at December 31, 2021.
4Includes current portion of notes receivable – related party of $7 million at March 31, 2022 and December 31, 2021.
5Includes current portion of long-term debt of $365 million at March 31, 2022 and December 31, 2021.
The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028.
v3.22.1
Retirement Benefits
 3 Months Ended
Mar. 31, 2022
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement Benefits
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.
In March 2022, CMS Energy and Consumers determined it was probable that 2022 lump-sum payments to participants under DB Pension Plan A would exceed the plan’s service cost and interest cost components of net periodic cost for the year. These lump-sum payments constitute pension plan liability settlements; once it is probable such settlements will meet the service and interest cost threshold, recognition in earnings is required. As a result, in accordance with GAAP, CMS Energy, including Consumers, performed a remeasurement of DB Pension Plan A as of March 31, 2022 and recognized a settlement loss of $4 million; of this amount, $4 million was deferred as a regulatory asset. Consumers recognized a settlement loss of $4 million, all of which was deferred as a regulatory asset. CMS Energy and Consumers will amortize the regulatory asset over eight years.
As a result of the remeasurement, the non-current asset for DB Pension Plan A increased by $91 million at CMS Energy, with an offsetting decrease in the associated regulatory asset of $89 million and a $2 million gain to AOCI. At Consumers, the non-current asset increased by $89 million and the associated regulatory asset decreased by $89 million.
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 benefit plans:
In Millions
DB Pension PlansOPEB Plan
Three Months Ended March 312022202120222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$12 $14 $4 $4 
Interest cost18 15 7 6 
Expected return on plan assets(52)(52)(29)(27)
Amortization of:
Net loss17 25 — 2 
Prior service cost (credit)1 1 (12)(13)
Settlement loss2 1 — — 
Net periodic cost (credit)$(2)$4 $(30)$(28)
Consumers
Net periodic cost (credit)
Service cost$12 $13 $4 $4 
Interest cost16 14 7 6 
Expected return on plan assets(49)(49)(27)(25)
Amortization of:
Net loss16 25 — 2 
Prior service cost (credit)1 1 (12)(13)
Settlement loss2 1 — — 
Net periodic cost (credit)$(2)$5 $(28)$(26)
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement Benefits
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.
In March 2022, CMS Energy and Consumers determined it was probable that 2022 lump-sum payments to participants under DB Pension Plan A would exceed the plan’s service cost and interest cost components of net periodic cost for the year. These lump-sum payments constitute pension plan liability settlements; once it is probable such settlements will meet the service and interest cost threshold, recognition in earnings is required. As a result, in accordance with GAAP, CMS Energy, including Consumers, performed a remeasurement of DB Pension Plan A as of March 31, 2022 and recognized a settlement loss of $4 million; of this amount, $4 million was deferred as a regulatory asset. Consumers recognized a settlement loss of $4 million, all of which was deferred as a regulatory asset. CMS Energy and Consumers will amortize the regulatory asset over eight years.
As a result of the remeasurement, the non-current asset for DB Pension Plan A increased by $91 million at CMS Energy, with an offsetting decrease in the associated regulatory asset of $89 million and a $2 million gain to AOCI. At Consumers, the non-current asset increased by $89 million and the associated regulatory asset decreased by $89 million.
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 benefit plans:
In Millions
DB Pension PlansOPEB Plan
Three Months Ended March 312022202120222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$12 $14 $4 $4 
Interest cost18 15 7 6 
Expected return on plan assets(52)(52)(29)(27)
Amortization of:
Net loss17 25 — 2 
Prior service cost (credit)1 1 (12)(13)
Settlement loss2 1 — — 
Net periodic cost (credit)$(2)$4 $(30)$(28)
Consumers
Net periodic cost (credit)
Service cost$12 $13 $4 $4 
Interest cost16 14 7 6 
Expected return on plan assets(49)(49)(27)(25)
Amortization of:
Net loss16 25 — 2 
Prior service cost (credit)1 1 (12)(13)
Settlement loss2 1 — — 
Net periodic cost (credit)$(2)$5 $(28)$(26)
v3.22.1
Income Taxes
 3 Months Ended
Mar. 31, 2022
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:
Three Months Ended March 3120222021
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 5.4 
TCJA excess deferred taxes1
(7.2)(5.8)
Production tax credits(4.7)(5.1)
Accelerated flow-through of regulatory tax benefits2
(4.3)(3.2)
Other, net— (0.3)
Effective tax rate10.3 %12.0 %
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
5.0 5.1 
TCJA excess deferred taxes1
(6.7)(5.1)
Production tax credits(2.7)(2.6)
Accelerated flow-through of regulatory tax benefits2
(5.1)(3.7)
Other, net(0.6)(0.4)
Effective tax rate10.9 %14.3 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas 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.
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:
Three Months Ended March 3120222021
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 5.4 
TCJA excess deferred taxes1
(7.2)(5.8)
Production tax credits(4.7)(5.1)
Accelerated flow-through of regulatory tax benefits2
(4.3)(3.2)
Other, net— (0.3)
Effective tax rate10.3 %12.0 %
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
5.0 5.1 
TCJA excess deferred taxes1
(6.7)(5.1)
Production tax credits(2.7)(2.6)
Accelerated flow-through of regulatory tax benefits2
(5.1)(3.7)
Other, net(0.6)(0.4)
Effective tax rate10.9 %14.3 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas 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.
v3.22.1
Earnings Per Share - CMS Energy
 3 Months Ended
Mar. 31, 2022
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 Ended March 3120222021
Income available to common stockholders
Income from continuing operations$341 $308 
Less loss attributable to noncontrolling interests(8)(7)
Less preferred stock dividends2 — 
Income from continuing operations available to common stockholders – basic and diluted$347 $315 
Average common shares outstanding
Weighted-average shares – basic289.3 288.6 
Add dilutive nonvested stock awards0.5 0.5 
Add dilutive forward equity sale contracts0.1 — 
Weighted-average shares – diluted289.9 289.1 
Income from continuing operations per average common share available to common stockholders
Basic$1.20 $1.09 
Diluted1.20 1.09 
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.
v3.22.1
Revenue
 3 Months Ended
Mar. 31, 2022
Disaggregation of Revenue [Line Items]  
Revenue RevenuePresented in the following tables are the components of operating revenue:
In Millions
Three Months Ended March 31, 2022Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,238 $1,047 $— $2,285 
Other— — 33 33 
Revenue recognized from contracts with customers$1,238 $1,047 $33 $2,318 
Leasing income— — 58 58 
Financing income3 2 — 5 
Consumers alternative-revenue programs— (7)— (7)
Total operating revenue – CMS Energy$1,241 $1,042 $91 $2,374 
Consumers
Consumers utility revenue
Residential$591 $740 $1,331 
Commercial384 221 605 
Industrial168 28 196 
Other95 58 153 
Revenue recognized from contracts with customers$1,238 $1,047 $2,285 
Financing income3 2 5 
Alternative-revenue programs— (7)(7)
Total operating revenue – Consumers$1,241 $1,042 $2,283 
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 $44 million for the three months ended March 31, 2022.
In Millions
Three Months Ended March 31, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,131 $801 $— $1,932 
Other— — 30 30 
Revenue recognized from contracts with customers$1,131 $801 $30 $1,962 
Leasing income— — 46 46 
Financing income3 2 — 5 
Total operating revenue – CMS Energy$1,134 $803 $76 $2,013 
Consumers
Consumers utility revenue
Residential$568 $554 $1,122 
Commercial345 163 508 
Industrial138 23 161 
Other80 61 141 
Revenue recognized from contracts with customers$1,131 $801 $1,932 
Financing income3 2 5 
Total operating revenue – Consumers$1,134 $803 $1,937 
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 $33 million for the three months ended March 31, 2021.
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.
Alternative-Revenue Program: Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather-normalized, non-fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
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 $4 million for the three months ended March 31, 2022 and $6 million for the three months ended March 31, 2021.
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 $491 million at March 31, 2022 and $486 million at December 31, 2021.
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 March 31, 2022Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,238 $1,047 $— $2,285 
Other— — 33 33 
Revenue recognized from contracts with customers$1,238 $1,047 $33 $2,318 
Leasing income— — 58 58 
Financing income3 2 — 5 
Consumers alternative-revenue programs— (7)— (7)
Total operating revenue – CMS Energy$1,241 $1,042 $91 $2,374 
Consumers
Consumers utility revenue
Residential$591 $740 $1,331 
Commercial384 221 605 
Industrial168 28 196 
Other95 58 153 
Revenue recognized from contracts with customers$1,238 $1,047 $2,285 
Financing income3 2 5 
Alternative-revenue programs— (7)(7)
Total operating revenue – Consumers$1,241 $1,042 $2,283 
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 $44 million for the three months ended March 31, 2022.
In Millions
Three Months Ended March 31, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,131 $801 $— $1,932 
Other— — 30 30 
Revenue recognized from contracts with customers$1,131 $801 $30 $1,962 
Leasing income— — 46 46 
Financing income3 2 — 5 
Total operating revenue – CMS Energy$1,134 $803 $76 $2,013 
Consumers
Consumers utility revenue
Residential$568 $554 $1,122 
Commercial345 163 508 
Industrial138 23 161 
Other80 61 141 
Revenue recognized from contracts with customers$1,131 $801 $1,932 
Financing income3 2 5 
Total operating revenue – Consumers$1,134 $803 $1,937 
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 $33 million for the three months ended March 31, 2021.
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.
Alternative-Revenue Program: Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather-normalized, non-fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
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 $4 million for the three months ended March 31, 2022 and $6 million for the three months ended March 31, 2021.
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 $491 million at March 31, 2022 and $486 million at December 31, 2021.
v3.22.1
Cash And Cash Equivalents
 3 Months Ended
Mar. 31, 2022
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
March 31, 2022December 31, 2021
CMS Energy, including Consumers
Cash and cash equivalents$446 $452 
Restricted cash and cash equivalents28 24 
Cash and cash equivalents, including restricted amounts – CMS Energy$474 $476 
Consumers
Cash and cash equivalents$12 $22 
Restricted cash and cash equivalents26 22 
Cash and cash equivalents, including restricted amounts – Consumers$38 $44 
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.
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
March 31, 2022December 31, 2021
CMS Energy, including Consumers
Cash and cash equivalents$446 $452 
Restricted cash and cash equivalents28 24 
Cash and cash equivalents, including restricted amounts – CMS Energy$474 $476 
Consumers
Cash and cash equivalents$12 $22 
Restricted cash and cash equivalents26 22 
Cash and cash equivalents, including restricted amounts – Consumers$38 $44 
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.
v3.22.1
Reportable Segments
 3 Months Ended
Mar. 31, 2022
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
On October 1, 2021, EnerBank was acquired by Regions Bank. As a result, EnerBank was removed from the composition of CMS Energy’s reportable segments. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income. For information regarding the sale 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.
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 Ended March 3120222021
CMS Energy, including Consumers
Operating revenue
Electric utility$1,241 $1,134 
Gas utility1,042 803 
Enterprises91 76 
Total operating revenue – CMS Energy$2,374 $2,013 
Consumers
Operating revenue
Electric utility$1,241 $1,134 
Gas utility1,042 803 
Total operating revenue – Consumers$2,283 $1,937 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$167 $155 
Gas utility216 181 
Enterprises8 14 
Other reconciling items(40)(1)
Total net income available to common stockholders – CMS Energy$351 $349 
Consumers
Net income available to common stockholder
Electric utility$167 $155 
Gas utility216 181 
Total net income available to common stockholder – Consumers$383 $336 
In Millions
March 31, 2022December 31, 2021
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1
$18,294 $18,147 
Gas utility1
10,759 10,601 
Enterprises1,123 1,122 
Other reconciling items23 23 
Total plant, property, and equipment, gross – CMS Energy$30,199 $29,893 
Consumers
Plant, property, and equipment, gross
Electric utility1
$18,294 $18,147 
Gas utility1
10,759 10,601 
Other reconciling items23 23 
Total plant, property, and equipment, gross – Consumers$29,076 $28,771 
CMS Energy, including Consumers
Total assets
Electric utility1
$16,650 $16,493 
Gas utility1
10,334 10,517 
Enterprises1,312 1,312 
Other reconciling items444 431 
Total assets – CMS Energy$28,740 $28,753 
Consumers
Total assets
Electric utility1
$16,712 $16,555 
Gas utility1
10,380 10,564 
Other reconciling items22 21 
Total assets – Consumers$27,114 $27,140 
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
On October 1, 2021, EnerBank was acquired by Regions Bank. As a result, EnerBank was removed from the composition of CMS Energy’s reportable segments. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income. For information regarding the sale 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.
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 Ended March 3120222021
CMS Energy, including Consumers
Operating revenue
Electric utility$1,241 $1,134 
Gas utility1,042 803 
Enterprises91 76 
Total operating revenue – CMS Energy$2,374 $2,013 
Consumers
Operating revenue
Electric utility$1,241 $1,134 
Gas utility1,042 803 
Total operating revenue – Consumers$2,283 $1,937 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$167 $155 
Gas utility216 181 
Enterprises8 14 
Other reconciling items(40)(1)
Total net income available to common stockholders – CMS Energy$351 $349 
Consumers
Net income available to common stockholder
Electric utility$167 $155 
Gas utility216 181 
Total net income available to common stockholder – Consumers$383 $336 
In Millions
March 31, 2022December 31, 2021
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1
$18,294 $18,147 
Gas utility1
10,759 10,601 
Enterprises1,123 1,122 
Other reconciling items23 23 
Total plant, property, and equipment, gross – CMS Energy$30,199 $29,893 
Consumers
Plant, property, and equipment, gross
Electric utility1
$18,294 $18,147 
Gas utility1
10,759 10,601 
Other reconciling items23 23 
Total plant, property, and equipment, gross – Consumers$29,076 $28,771 
CMS Energy, including Consumers
Total assets
Electric utility1
$16,650 $16,493 
Gas utility1
10,334 10,517 
Enterprises1,312 1,312 
Other reconciling items444 431 
Total assets – CMS Energy$28,740 $28,753 
Consumers
Total assets
Electric utility1
$16,712 $16,555 
Gas utility1
10,380 10,564 
Other reconciling items22 21 
Total assets – Consumers$27,114 $27,140 
1Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
v3.22.1
Variable Interest Entities
 3 Months Ended
Mar. 31, 2022
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
March 31, 2022December 31, 2021
Current
Cash and cash equivalents$14 $20 
Accounts receivable3 3 
Prepayments and other current assets2 1 
Non-current
Plant, property, and equipment, net665 671 
Total assets1
$684 $695 
Current
Accounts payable$8 $15 
Non-current
Asset retirement obligations20 20 
Total liabilities$28 $35 
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 $71 million at March 31, 2022 and December 31, 2021.
v3.22.1
Exit Activities and Discontinued Operations
 3 Months Ended
Mar. 31, 2022
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.
Under the settlement agreement resolving the 2021 IRP, Consumers would retire the J.H. Campbell coal-fueled generating units in 2025. Similar to the D.E. Karn program, Consumers would provide a retention incentive program to ensure necessary staffing at the J.H. Campbell generating complex through retirement. No retention incentive costs related to this program will be recognized unless the MPSC approves the settlement agreement, which provides deferred accounting treatment for these costs.
As of March 31, 2022, 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 $8 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
Three Months Ended March 3120222021
Retention benefit liability at beginning of period$14 $11 
Costs deferred as a regulatory asset
1 2 
Retention benefit liability at the end of the period1
$15 $13 
1Includes current portion of other liabilities of $5 million at March 31, 2022 and $4 million at March 31, 2021.
Discontinued Operations: On October 1, 2021, EnerBank was acquired by Regions Bank. CMS Energy received proceeds of over $1 billion from the transaction and recognized a pre-tax gain of $657 million in 2021. In 2022, CMS Energy received $6 million of additional proceeds as the result of a post-closing adjustment. Net of related transaction costs, CMS Energy recognized a pre-tax gain of $5 million during the three months ended March 31, 2022.
In December 2021, CMS Energy submitted a notice of disagreement to Regions Bank relating to a $36 million negative post-closing purchase price adjustment that it believes is inconsistent with the merger agreement. In accordance with the merger agreement, the disputed adjustment has been submitted to a mutually agreed upon independent accounting firm for final determination. While CMS Energy does not believe material loss is probable, it cannot predict the outcome of this matter.
EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three months ended March 31, 2021. The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Three Months Ended March 3120222021
Operating revenue$— $70 
Expenses
Operating expenses— 15 
Interest expense— 12 
Income before income taxes$— $43 
Gain on sale5 — 
Income from discontinued operations before income taxes$5 $43 
Income tax expense1 9 
Income from discontinued operations, net of tax$4 $34 
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.
Under the settlement agreement resolving the 2021 IRP, Consumers would retire the J.H. Campbell coal-fueled generating units in 2025. Similar to the D.E. Karn program, Consumers would provide a retention incentive program to ensure necessary staffing at the J.H. Campbell generating complex through retirement. No retention incentive costs related to this program will be recognized unless the MPSC approves the settlement agreement, which provides deferred accounting treatment for these costs.
As of March 31, 2022, 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 $8 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
Three Months Ended March 3120222021
Retention benefit liability at beginning of period$14 $11 
Costs deferred as a regulatory asset
1 2 
Retention benefit liability at the end of the period1
$15 $13 
1Includes current portion of other liabilities of $5 million at March 31, 2022 and $4 million at March 31, 2021.
Discontinued Operations: On October 1, 2021, EnerBank was acquired by Regions Bank. CMS Energy received proceeds of over $1 billion from the transaction and recognized a pre-tax gain of $657 million in 2021. In 2022, CMS Energy received $6 million of additional proceeds as the result of a post-closing adjustment. Net of related transaction costs, CMS Energy recognized a pre-tax gain of $5 million during the three months ended March 31, 2022.
In December 2021, CMS Energy submitted a notice of disagreement to Regions Bank relating to a $36 million negative post-closing purchase price adjustment that it believes is inconsistent with the merger agreement. In accordance with the merger agreement, the disputed adjustment has been submitted to a mutually agreed upon independent accounting firm for final determination. While CMS Energy does not believe material loss is probable, it cannot predict the outcome of this matter.
EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three months ended March 31, 2021. The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Three Months Ended March 3120222021
Operating revenue$— $70 
Expenses
Operating expenses— 15 
Interest expense— 12 
Income before income taxes$— $43 
Gain on sale5 — 
Income from discontinued operations before income taxes$5 $43 
Income tax expense1 9 
Income from discontinued operations, net of tax$4 $34 
v3.22.1
Significant Accounting Policies (Policy)
 3 Months Ended
Mar. 31, 2022
Significant Accounting Policies [Line Items]  
EPS
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.
Accounts Receivable 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.
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.
Consolidation, Variable Interest Entity 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 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]  
Consumers Utility Revenue
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.
Alternative-Revenue Program: Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather-normalized, non-fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Accounts Receivable 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.
Unbilled Revenues 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.
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.
v3.22.1
Contingencies and Commitments (Tables)
 3 Months Ended
Mar. 31, 2022
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 2022 and in each of the next five years:
In Millions
202220232024202520262027
CMS Energy
Long-term leachate disposal and operating and maintenance costs$3 $4 $4 $4 $4 $4 
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at March 31, 2022:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1
September 2020indefinite$305 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite2254 
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, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 13, Exit Activities and Discontinued Operations. 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 2022 and in each of the next five years:
In Millions
202220232024202520262027
Consumers
Remediation and other response activity costs$3 $9 $24 $11 $1 $1 
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at March 31, 2022:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1
September 2020indefinite$305 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite2254 
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, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 13, Exit Activities and Discontinued Operations. 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.
v3.22.1
Financings and Capitalization (Tables)
 3 Months Ended
Mar. 31, 2022
Debt Instrument [Line Items]  
Schedule of Revolving Credit Facilities The following credit facilities with banks were available at March 31, 2022:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 2024
$550 $— $24 $526 
September 23, 20221
42 — 42 — 
CMS Enterprises, including subsidiaries
September 25, 20252
$37 $— $37 $— 
September 30, 20253
18 — 8 10 
Consumers4
June 5, 2024
$850 $— $12 $838 
November 19, 2023
250 — 8 242 
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 March 31, 2022:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialMarch 31, 2022
September 15, 2020June 30, 2022846,759$61.04 $57.99 
December 22, 2020June 22, 2022115,59561.81 59.17 
Consumers Energy Company  
Debt Instrument [Line Items]  
Schedule of Revolving Credit Facilities The following credit facilities with banks were available at March 31, 2022:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 2024
$550 $— $24 $526 
September 23, 20221
42 — 42 — 
CMS Enterprises, including subsidiaries
September 25, 20252
$37 $— $37 $— 
September 30, 20253
18 — 8 10 
Consumers4
June 5, 2024
$850 $— $12 $838 
November 19, 2023
250 — 8 242 
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.
v3.22.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2022
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
March 31
2022		December 31
2021		March 31
2022		December 31
2021
Assets1
Cash equivalents$40 $— $— $— 
Restricted cash equivalents28 24 26 22 
Nonqualified deferred compensation plan assets26 27 20 21 
Derivative instruments1 2 1 2 
Total assets$95 $53 $47 $45 
Liabilities1
Nonqualified deferred compensation plan liabilities$26 $27 $20 $21 
Derivative instruments3 7 — — 
Total liabilities$29 $34 $20 $21 
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
March 31
2022		December 31
2021		March 31
2022		December 31
2021
Assets1
Cash equivalents$40 $— $— $— 
Restricted cash equivalents28 24 26 22 
Nonqualified deferred compensation plan assets26 27 20 21 
Derivative instruments1 2 1 2 
Total assets$95 $53 $47 $45 
Liabilities1
Nonqualified deferred compensation plan liabilities$26 $27 $20 $21 
Derivative instruments3 7 — — 
Total liabilities$29 $34 $20 $21 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
v3.22.1
Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2022
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
March 31, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$13 $13 $— $— $13 $14 $14 $— $— $14 
Liabilities
Long-term debt2
12,418 12,510 1,140 9,578 1,792 12,419 13,800 1,189 10,656 1,955 
Long-term payables3
9 9 — — 9 31 32 — — 32 
Consumers
Assets
Long-term receivables1
$13 $13 $— $— $13 $14 $14 $— $— $14 
Notes receivable – related party4
103 103 — — 103 104 104 — — 104 
Liabilities
Long-term debt5
8,416 8,444 — 6,652 1,792 8,415 9,410 — 7,455 1,955 
1Includes current portion of long-term accounts receivable of $8 million at March 31, 2022 and $9 million at December 31, 2021.
2Includes current portion of long-term debt of $373 million at March 31, 2022 and December 31, 2021.
3Includes current portion of long-term payables of $1 million at March 31, 2022 and $23 million at December 31, 2021.
4Includes current portion of notes receivable – related party of $7 million at March 31, 2022 and December 31, 2021.
5Includes current portion of long-term debt of $365 million at March 31, 2022 and December 31, 2021.
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
March 31, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$13 $13 $— $— $13 $14 $14 $— $— $14 
Liabilities
Long-term debt2
12,418 12,510 1,140 9,578 1,792 12,419 13,800 1,189 10,656 1,955 
Long-term payables3
9 9 — — 9 31 32 — — 32 
Consumers
Assets
Long-term receivables1
$13 $13 $— $— $13 $14 $14 $— $— $14 
Notes receivable – related party4
103 103 — — 103 104 104 — — 104 
Liabilities
Long-term debt5
8,416 8,444 — 6,652 1,792 8,415 9,410 — 7,455 1,955 
1Includes current portion of long-term accounts receivable of $8 million at March 31, 2022 and $9 million at December 31, 2021.
2Includes current portion of long-term debt of $373 million at March 31, 2022 and December 31, 2021.
3Includes current portion of long-term payables of $1 million at March 31, 2022 and $23 million at December 31, 2021.
4Includes current portion of notes receivable – related party of $7 million at March 31, 2022 and December 31, 2021.
5Includes current portion of long-term debt of $365 million at March 31, 2022 and December 31, 2021.
v3.22.1
Retirement Benefits (Tables)
 3 Months Ended
Mar. 31, 2022
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 benefit plans:
In Millions
DB Pension PlansOPEB Plan
Three Months Ended March 312022202120222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$12 $14 $4 $4 
Interest cost18 15 7 6 
Expected return on plan assets(52)(52)(29)(27)
Amortization of:
Net loss17 25 — 2 
Prior service cost (credit)1 1 (12)(13)
Settlement loss2 1 — — 
Net periodic cost (credit)$(2)$4 $(30)$(28)
Consumers
Net periodic cost (credit)
Service cost$12 $13 $4 $4 
Interest cost16 14 7 6 
Expected return on plan assets(49)(49)(27)(25)
Amortization of:
Net loss16 25 — 2 
Prior service cost (credit)1 1 (12)(13)
Settlement loss2 1 — — 
Net periodic cost (credit)$(2)$5 $(28)$(26)
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 benefit plans:
In Millions
DB Pension PlansOPEB Plan
Three Months Ended March 312022202120222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$12 $14 $4 $4 
Interest cost18 15 7 6 
Expected return on plan assets(52)(52)(29)(27)
Amortization of:
Net loss17 25 — 2 
Prior service cost (credit)1 1 (12)(13)
Settlement loss2 1 — — 
Net periodic cost (credit)$(2)$4 $(30)$(28)
Consumers
Net periodic cost (credit)
Service cost$12 $13 $4 $4 
Interest cost16 14 7 6 
Expected return on plan assets(49)(49)(27)(25)
Amortization of:
Net loss16 25 — 2 
Prior service cost (credit)1 1 (12)(13)
Settlement loss2 1 — — 
Net periodic cost (credit)$(2)$5 $(28)$(26)
v3.22.1
Income Taxes (Tables)
 3 Months Ended
Mar. 31, 2022
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:
Three Months Ended March 3120222021
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 5.4 
TCJA excess deferred taxes1
(7.2)(5.8)
Production tax credits(4.7)(5.1)
Accelerated flow-through of regulatory tax benefits2
(4.3)(3.2)
Other, net— (0.3)
Effective tax rate10.3 %12.0 %
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
5.0 5.1 
TCJA excess deferred taxes1
(6.7)(5.1)
Production tax credits(2.7)(2.6)
Accelerated flow-through of regulatory tax benefits2
(5.1)(3.7)
Other, net(0.6)(0.4)
Effective tax rate10.9 %14.3 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas 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.
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:
Three Months Ended March 3120222021
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 5.4 
TCJA excess deferred taxes1
(7.2)(5.8)
Production tax credits(4.7)(5.1)
Accelerated flow-through of regulatory tax benefits2
(4.3)(3.2)
Other, net— (0.3)
Effective tax rate10.3 %12.0 %
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
5.0 5.1 
TCJA excess deferred taxes1
(6.7)(5.1)
Production tax credits(2.7)(2.6)
Accelerated flow-through of regulatory tax benefits2
(5.1)(3.7)
Other, net(0.6)(0.4)
Effective tax rate10.9 %14.3 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas 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.
v3.22.1
Earnings Per Share - CMS Energy (Tables)
 3 Months Ended
Mar. 31, 2022
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 Ended March 3120222021
Income available to common stockholders
Income from continuing operations$341 $308 
Less loss attributable to noncontrolling interests(8)(7)
Less preferred stock dividends2 — 
Income from continuing operations available to common stockholders – basic and diluted$347 $315 
Average common shares outstanding
Weighted-average shares – basic289.3 288.6 
Add dilutive nonvested stock awards0.5 0.5 
Add dilutive forward equity sale contracts0.1 — 
Weighted-average shares – diluted289.9 289.1 
Income from continuing operations per average common share available to common stockholders
Basic$1.20 $1.09 
Diluted1.20 1.09 
v3.22.1
Revenue (Tables)
 3 Months Ended
Mar. 31, 2022
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue Presented in the following tables are the components of operating revenue:
In Millions
Three Months Ended March 31, 2022Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,238 $1,047 $— $2,285 
Other— — 33 33 
Revenue recognized from contracts with customers$1,238 $1,047 $33 $2,318 
Leasing income— — 58 58 
Financing income3 2 — 5 
Consumers alternative-revenue programs— (7)— (7)
Total operating revenue – CMS Energy$1,241 $1,042 $91 $2,374 
Consumers
Consumers utility revenue
Residential$591 $740 $1,331 
Commercial384 221 605 
Industrial168 28 196 
Other95 58 153 
Revenue recognized from contracts with customers$1,238 $1,047 $2,285 
Financing income3 2 5 
Alternative-revenue programs— (7)(7)
Total operating revenue – Consumers$1,241 $1,042 $2,283 
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 $44 million for the three months ended March 31, 2022.
In Millions
Three Months Ended March 31, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,131 $801 $— $1,932 
Other— — 30 30 
Revenue recognized from contracts with customers$1,131 $801 $30 $1,962 
Leasing income— — 46 46 
Financing income3 2 — 5 
Total operating revenue – CMS Energy$1,134 $803 $76 $2,013 
Consumers
Consumers utility revenue
Residential$568 $554 $1,122 
Commercial345 163 508 
Industrial138 23 161 
Other80 61 141 
Revenue recognized from contracts with customers$1,131 $801 $1,932 
Financing income3 2 5 
Total operating revenue – Consumers$1,134 $803 $1,937 
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 $33 million for the three months ended March 31, 2021.
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 March 31, 2022Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,238 $1,047 $— $2,285 
Other— — 33 33 
Revenue recognized from contracts with customers$1,238 $1,047 $33 $2,318 
Leasing income— — 58 58 
Financing income3 2 — 5 
Consumers alternative-revenue programs— (7)— (7)
Total operating revenue – CMS Energy$1,241 $1,042 $91 $2,374 
Consumers
Consumers utility revenue
Residential$591 $740 $1,331 
Commercial384 221 605 
Industrial168 28 196 
Other95 58 153 
Revenue recognized from contracts with customers$1,238 $1,047 $2,285 
Financing income3 2 5 
Alternative-revenue programs— (7)(7)
Total operating revenue – Consumers$1,241 $1,042 $2,283 
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 $44 million for the three months ended March 31, 2022.
In Millions
Three Months Ended March 31, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,131 $801 $— $1,932 
Other— — 30 30 
Revenue recognized from contracts with customers$1,131 $801 $30 $1,962 
Leasing income— — 46 46 
Financing income3 2 — 5 
Total operating revenue – CMS Energy$1,134 $803 $76 $2,013 
Consumers
Consumers utility revenue
Residential$568 $554 $1,122 
Commercial345 163 508 
Industrial138 23 161 
Other80 61 141 
Revenue recognized from contracts with customers$1,131 $801 $1,932 
Financing income3 2 5 
Total operating revenue – Consumers$1,134 $803 $1,937 
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 $33 million for the three months ended March 31, 2021.
v3.22.1
Cash And Cash Equivalents (Tables)
 3 Months Ended
Mar. 31, 2022
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
March 31, 2022December 31, 2021
CMS Energy, including Consumers
Cash and cash equivalents$446 $452 
Restricted cash and cash equivalents28 24 
Cash and cash equivalents, including restricted amounts – CMS Energy$474 $476 
Consumers
Cash and cash equivalents$12 $22 
Restricted cash and cash equivalents26 22 
Cash and cash equivalents, including restricted amounts – Consumers$38 $44 
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
March 31, 2022December 31, 2021
CMS Energy, including Consumers
Cash and cash equivalents$446 $452 
Restricted cash and cash equivalents28 24 
Cash and cash equivalents, including restricted amounts – CMS Energy$474 $476 
Consumers
Cash and cash equivalents$12 $22 
Restricted cash and cash equivalents26 22 
Cash and cash equivalents, including restricted amounts – Consumers$38 $44 
v3.22.1
Reportable Segments (Tables)
 3 Months Ended
Mar. 31, 2022
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 Ended March 3120222021
CMS Energy, including Consumers
Operating revenue
Electric utility$1,241 $1,134 
Gas utility1,042 803 
Enterprises91 76 
Total operating revenue – CMS Energy$2,374 $2,013 
Consumers
Operating revenue
Electric utility$1,241 $1,134 
Gas utility1,042 803 
Total operating revenue – Consumers$2,283 $1,937 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$167 $155 
Gas utility216 181 
Enterprises8 14 
Other reconciling items(40)(1)
Total net income available to common stockholders – CMS Energy$351 $349 
Consumers
Net income available to common stockholder
Electric utility$167 $155 
Gas utility216 181 
Total net income available to common stockholder – Consumers$383 $336 
In Millions
March 31, 2022December 31, 2021
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1
$18,294 $18,147 
Gas utility1
10,759 10,601 
Enterprises1,123 1,122 
Other reconciling items23 23 
Total plant, property, and equipment, gross – CMS Energy$30,199 $29,893 
Consumers
Plant, property, and equipment, gross
Electric utility1
$18,294 $18,147 
Gas utility1
10,759 10,601 
Other reconciling items23 23 
Total plant, property, and equipment, gross – Consumers$29,076 $28,771 
CMS Energy, including Consumers
Total assets
Electric utility1
$16,650 $16,493 
Gas utility1
10,334 10,517 
Enterprises1,312 1,312 
Other reconciling items444 431 
Total assets – CMS Energy$28,740 $28,753 
Consumers
Total assets
Electric utility1
$16,712 $16,555 
Gas utility1
10,380 10,564 
Other reconciling items22 21 
Total assets – Consumers$27,114 $27,140 
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 Ended March 3120222021
CMS Energy, including Consumers
Operating revenue
Electric utility$1,241 $1,134 
Gas utility1,042 803 
Enterprises91 76 
Total operating revenue – CMS Energy$2,374 $2,013 
Consumers
Operating revenue
Electric utility$1,241 $1,134 
Gas utility1,042 803 
Total operating revenue – Consumers$2,283 $1,937 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$167 $155 
Gas utility216 181 
Enterprises8 14 
Other reconciling items(40)(1)
Total net income available to common stockholders – CMS Energy$351 $349 
Consumers
Net income available to common stockholder
Electric utility$167 $155 
Gas utility216 181 
Total net income available to common stockholder – Consumers$383 $336 
In Millions
March 31, 2022December 31, 2021
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1
$18,294 $18,147 
Gas utility1
10,759 10,601 
Enterprises1,123 1,122 
Other reconciling items23 23 
Total plant, property, and equipment, gross – CMS Energy$30,199 $29,893 
Consumers
Plant, property, and equipment, gross
Electric utility1
$18,294 $18,147 
Gas utility1
10,759 10,601 
Other reconciling items23 23 
Total plant, property, and equipment, gross – Consumers$29,076 $28,771 
CMS Energy, including Consumers
Total assets
Electric utility1
$16,650 $16,493 
Gas utility1
10,334 10,517 
Enterprises1,312 1,312 
Other reconciling items444 431 
Total assets – CMS Energy$28,740 $28,753 
Consumers
Total assets
Electric utility1
$16,712 $16,555 
Gas utility1
10,380 10,564 
Other reconciling items22 21 
Total assets – Consumers$27,114 $27,140 
1Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
v3.22.1
Variable Interest Entities (Tables)
 3 Months Ended
Mar. 31, 2022
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
March 31, 2022December 31, 2021
Current
Cash and cash equivalents$14 $20 
Accounts receivable3 3 
Prepayments and other current assets2 1 
Non-current
Plant, property, and equipment, net665 671 
Total assets1
$684 $695 
Current
Accounts payable$8 $15 
Non-current
Asset retirement obligations20 20 
Total liabilities$28 $35 
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.
v3.22.1
Exit Activities and Discontinued Operations - (Tables)
 3 Months Ended
Mar. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Retention Benefit Liability Roll Forward Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Three Months Ended March 3120222021
Retention benefit liability at beginning of period$14 $11 
Costs deferred as a regulatory asset
1 2 
Retention benefit liability at the end of the period1
$15 $13 
1Includes current portion of other liabilities of $5 million at March 31, 2022 and $4 million at March 31, 2021.
Schedule of Income, Assets, and Liabilities from Discontinued Operations The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Three Months Ended March 3120222021
Operating revenue$— $70 
Expenses
Operating expenses— 15 
Interest expense— 12 
Income before income taxes$— $43 
Gain on sale5 — 
Income from discontinued operations before income taxes$5 $43 
Income tax expense1 9 
Income from discontinued operations, net of tax$4 $34 
Consumers Energy Company  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Retention Benefit Liability Roll Forward Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Three Months Ended March 3120222021
Retention benefit liability at beginning of period$14 $11 
Costs deferred as a regulatory asset
1 2 
Retention benefit liability at the end of the period1
$15 $13 
1Includes current portion of other liabilities of $5 million at March 31, 2022 and $4 million at March 31, 2021.
v3.22.1
Regulatory Matters - Quarterly Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Mar. 31, 2022
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Jan. 31, 2022
Public Utilities, General Disclosures [Line Items]          
Operating Revenue   $ 2,374 $ 2,013    
Consumers Energy Company          
Public Utilities, General Disclosures [Line Items]          
Operating Revenue   2,283 $ 1,937    
Consumers Energy Company | Electric Rate Case          
Public Utilities, General Disclosures [Line Items]          
Estimate of disallowed costs $ 20 20      
Recommended disallowed costs         $ 11
Additional annual rate increase authorized 5        
Consumers Energy Company | Energy Waste Reduction Plan Incentive          
Public Utilities, General Disclosures [Line Items]          
Requested recovery/collection $ 46 $ 46      
Operating Revenue       $ 46  
v3.22.1
Contingencies and Commitments (Contingencies And Commitments) (Details)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended 24 Months Ended
Sep. 30, 2020
USD ($)
Mar. 31, 2022
USD ($)
site
Mar. 31, 2021
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2021
USD ($)
Loss Contingencies [Line Items]          
Regulatory assets   $ 2,138   $ 2,259 $ 2,259
Operating Revenue   2,374 $ 2,013    
Consumers Energy Company          
Loss Contingencies [Line Items]          
Regulatory assets   2,138   2,259 2,259
Cost of gas sold   465 278    
Maintenance and other operating expenses   (313) (292)    
Operating Revenue   2,283 $ 1,937    
Consumers Energy Company | Tax And Other Indemnity Obligations          
Loss Contingencies [Line Items]          
Carrying value of indemnity obligations   1      
Consumers Energy Company | Manufactured Gas Plant          
Loss Contingencies [Line Items]          
Regulatory assets   109      
Bay Harbor          
Loss Contingencies [Line Items]          
Accrual for environmental loss contingencies   $ 45      
Discounted projected costs rate   4.34%      
Accrual for environmental loss contingencies, inflation rate   1.00%      
Remaining undiscounted obligation amount   $ 56      
CERCLA Liability | Consumers Energy Company          
Loss Contingencies [Line Items]          
Accrual for environmental loss contingencies   3      
CERCLA Liability | Minimum | Consumers Energy Company          
Loss Contingencies [Line Items]          
Remediation and other response activity costs   3      
CERCLA Liability | Maximum | Consumers Energy Company          
Loss Contingencies [Line Items]          
Remediation and other response activity costs   8      
Manufactured Gas Plant | Consumers Energy Company          
Loss Contingencies [Line Items]          
Accrual for environmental loss contingencies   $ 57      
Discounted projected costs rate   2.57%      
Accrual for environmental loss contingencies, inflation rate   2.50%      
Remaining undiscounted obligation amount   $ 61      
Number of former MGPs | site   23      
Regulatory asset collection period   10 years      
Electric Utility | NREPA | Consumers Energy Company          
Loss Contingencies [Line Items]          
Accrual for environmental loss contingencies   $ 2      
Electric Utility | NREPA | Minimum | Consumers Energy Company          
Loss Contingencies [Line Items]          
Remediation and other response activity costs   2      
Electric Utility | NREPA | Maximum | Consumers Energy Company          
Loss Contingencies [Line Items]          
Remediation and other response activity costs   4      
Gas Utility | NREPA | Consumers Energy Company          
Loss Contingencies [Line Items]          
Accrual for environmental loss contingencies   1      
Gas Utility | NREPA | Maximum | Consumers Energy Company          
Loss Contingencies [Line Items]          
Accrual for environmental loss contingencies   3      
Ray Compressor Station | Consumers Energy Company          
Loss Contingencies [Line Items]          
Plant additions         $ 17
Insurance recoveries received   $ 13      
Ray Compressor Station | Consumers Energy Company | Insurance Recoveries          
Loss Contingencies [Line Items]          
Reduction to plant, property and equipment       6  
Maintenance and other operating expenses       3  
Operating Revenue       $ 4  
Ray Compressor Station | Consumers Energy Company | GCR underrecoveries          
Loss Contingencies [Line Items]          
Cost of gas sold $ 7        
v3.22.1
Contingencies and Commitments (Expected Remediation Cost By Year) (Details)
$ in Millions
Mar. 31, 2022
USD ($)
Bay Harbor  
Site Contingency [Line Items]  
2022 $ 3
2023 4
2024 4
2025 4
2026 4
2027 4
Manufactured Gas Plant | Consumers Energy Company  
Site Contingency [Line Items]  
2022 3
2023 9
2024 24
2025 11
2026 1
2027 $ 1
v3.22.1
Contingencies and Commitments (Guarantees) (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2022
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 $ 305
Carrying Amount $ 0
Indemnity Obligations From Stock And Asset Sales Agreements  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 225
Carrying Amount $ 4
v3.22.1
Financings and Capitalization (Schedule of Revolving Credit Facilities) (Details)
Mar. 31, 2022
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, 2023  
Line of Credit Facility [Line Items]  
Amount of Facility 250,000,000
Amount Borrowed 0
Letters of Credit Outstanding 8,000,000
Amount Available 242,000,000
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 24,000,000
Amount Available 526,000,000
CMS Energy | Revolving Credit Facilities September 23, 2022  
Line of Credit Facility [Line Items]  
Amount of Facility 42,000,000
Amount Borrowed 0
Letters of Credit Outstanding 42,000,000
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 37,000,000
Amount Borrowed 0
Letters of Credit Outstanding 37,000,000
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
v3.22.1
Financings and Capitalization (Narrative) (Details) - USD ($)
 3 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Financing And Capitalization [Line Items]    
Limitation on payment of stock dividends $ 6,600,000,000  
Dividends paid 275,000,000  
Stock offering program maximum value 500,000,000  
Net cash required to settle forward contracts $ 11,000,000  
Number of shares required to settle forward contracts (in shares) 162,487  
Consumers Energy Company    
Financing And Capitalization [Line Items]    
Notes payable – related parties $ 0 $ 392,000,000
Unrestricted retained earnings 1,900,000,000  
Consumers Energy Company | Credit Agreement    
Financing And Capitalization [Line Items]    
Maximum borrowing capacity 500,000,000  
Notes payable – related parties $ 0  
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  
v3.22.1
Financings and Capitalization (Schedule of Forward Stock Contracts) (Details) - $ / shares
Mar. 31, 2022
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) $ 57.99   $ 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) $ 59.17 $ 61.81  
v3.22.1
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Assets    
Restricted cash equivalents $ 28 $ 24
Derivative instruments 1 2
Liabilities    
Derivative instruments 3 7
Consumers Energy Company    
Assets    
Restricted cash equivalents 26 22
Derivative instruments 1 2
Liabilities    
Derivative instruments 0 0
Fair Value, Inputs, Level 1    
Assets    
Cash equivalents 40 0
Restricted cash equivalents 28 24
Nonqualified deferred compensation plan assets 26 27
Liabilities    
Nonqualified deferred compensation plan liabilities 26 27
Fair Value, Inputs, Level 1 | Consumers Energy Company    
Assets    
Cash equivalents 0 0
Restricted cash equivalents 26 22
Nonqualified deferred compensation plan assets 20 21
Liabilities    
Nonqualified deferred compensation plan liabilities 20 21
Fair Value, Inputs, Level 1, 2 and 3    
Assets    
Total assets 95 53
Liabilities    
Total liabilities 29 34
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company    
Assets    
Total assets 47 45
Liabilities    
Total liabilities $ 20 $ 21
v3.22.1
Fair Value Measurements - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash flow hedge gain (loss) $ 3 $ 1  
Derivative instruments 3   $ 7
Consumers Energy Company      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Derivative instruments 0   0
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 76   78
Other Liabilities | Designated as Hedging Instrument | Cash Flow Hedging      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Derivative instruments $ 1   $ 4
v3.22.1
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Liabilities    
Current accounts receivable $ 8 $ 9
Current portion of long term debt 373 373
Current portion of long-term payables 1 23
Carrying Amount    
Assets    
Long-term receivables 13 14
Liabilities    
Long-term debt 12,418 12,419
Long-term payables 9 31
Fair Value    
Assets    
Long-term receivables 13 14
Liabilities    
Long-term debt 12,510 13,800
Long-term payables 9 32
Consumers Energy Company    
Liabilities    
Current accounts receivable 8 9
Current portion of long term debt 365 365
DB SERP note receivable – related party 7 7
Consumers Energy Company | Carrying Amount    
Assets    
Long-term receivables 13 14
Notes receivable related party 103 104
Liabilities    
Long-term debt 8,416 8,415
Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 13 14
Notes receivable related party 103 104
Liabilities    
Long-term debt 8,444 9,410
Level 1 | Fair Value    
Assets    
Long-term receivables 0 0
Liabilities    
Long-term debt 1,140 1,189
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 9,578 10,656
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 6,652 7,455
Level 3 | Fair Value    
Assets    
Long-term receivables 13 14
Liabilities    
Long-term debt 1,792 1,955
Long-term payables 9 32
Level 3 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 13 14
Notes receivable related party 103 104
Liabilities    
Long-term debt $ 1,792 $ 1,955
v3.22.1
Financial Instruments (Narrative) (Details)
Mar. 31, 2022
Consumers Energy Company | CMS Energy Note Payable  
Financial Instruments [Line Items]  
Interest rate 4.10%
v3.22.1
Retirement Benefits (Quarterly Narrative) (Details) - DB Pension Plans - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2022
Defined Benefit Plan Disclosure [Line Items]    
Settlement loss $ 4  
Increase (decrease) in non-current pension plan assets   $ 91
Loss to AOCI   2
Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Increase (decrease) in non-current pension plan assets   $ 89
Pension Costs    
Defined Benefit Plan Disclosure [Line Items]    
Settlement loss 4  
Increase (decrease) in non-current pension plan assets (89)  
Pension Costs | DB Pension Plan A Settlement    
Defined Benefit Plan Disclosure [Line Items]    
Regulatory asset collection period   8 years
Pension Costs | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Settlement loss 4  
Increase (decrease) in non-current pension plan assets $ (89)  
v3.22.1
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
DB Pension Plans    
Defined Benefit Plan, Roll Forwards [Abstract]    
Service cost $ 12 $ 14
Interest cost 18 15
Expected return on plan assets (52) (52)
Amortization of    
Net loss 17 25
Prior service cost (credit) 1 1
Settlement loss 2 1
Net periodic cost (credit) (2) 4
DB Pension Plans | Consumers Energy Company    
Defined Benefit Plan, Roll Forwards [Abstract]    
Service cost 12 13
Interest cost 16 14
Expected return on plan assets (49) (49)
Amortization of    
Net loss 16 25
Prior service cost (credit) 1 1
Settlement loss 2 1
Net periodic cost (credit) (2) 5
OPEB Plan    
Defined Benefit Plan, Roll Forwards [Abstract]    
Service cost 4 4
Interest cost 7 6
Expected return on plan assets (29) (27)
Amortization of    
Net loss 0 2
Prior service cost (credit) (12) (13)
Settlement loss 0 0
Net periodic cost (credit) (30) (28)
OPEB Plan | Consumers Energy Company    
Defined Benefit Plan, Roll Forwards [Abstract]    
Service cost 4 4
Interest cost 7 6
Expected return on plan assets (27) (25)
Amortization of    
Net loss 0 2
Prior service cost (credit) (12) (13)
Settlement loss 0 0
Net periodic cost (credit) $ (28) $ (26)
v3.22.1
Income Taxes (Schedule Of Effective Income Rate Reconciliation) (Details)
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
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% 5.40%
TCJA excess deferred taxes (7.20%) (5.80%)
Production tax credits (4.70%) (5.10%)
Accelerated flow-through of regulatory tax benefits (4.30%) (3.20%)
Other, net 0.00% (0.30%)
Effective tax rate 10.30% 12.00%
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 5.00% 5.10%
TCJA excess deferred taxes (6.70%) (5.10%)
Production tax credits (2.70%) (2.60%)
Accelerated flow-through of regulatory tax benefits (5.10%) (3.70%)
Other, net (0.60%) (0.40%)
Effective tax rate 10.90% 14.30%
v3.22.1
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Income available to common stockholders    
Income from continuing operations $ 341 $ 308
Loss attributable to noncontrolling interests (8) (7)
Preferred stock dividends 2 0
Income from continuing operations available to common stockholders – basic and diluted $ 347 $ 315
Average common shares outstanding    
Weighted average shares - basic (in shares) 289.3 288.6
Dilutive nonvested stock awards (in shares) 0.5 0.5
Dilutive forward equity sale contracts (in shares) 0.1 0.0
Weighted average shares - diluted (in shares) 289.9 289.1
Income from continuing operations per average common share available to common stockholders    
Basic (in dollars per share) $ 1.20 $ 1.09
Diluted (in dollars per share) $ 1.20 $ 1.09
v3.22.1
Revenue (Disaggregation of Revenue) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers $ 2,318 $ 1,962
Leasing income 58 46
Financing income 5 5
Consumers alternative-revenue programs (7)  
Total operating revenue 2,374 2,013
Electric Utility | Operating Segments    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 1,238 1,131
Financing income 3 3
Consumers alternative-revenue programs 0  
Total operating revenue 1,241 1,134
Gas Utility | Operating Segments    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 1,047 801
Financing income 2 2
Consumers alternative-revenue programs (7)  
Total operating revenue 1,042 803
Enterprises | Operating Segments    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 33 30
Leasing income 58 46
Total operating revenue 91 76
Variable lease income 44 33
Consumers Energy Company    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 2,285 1,932
Financing income 5 5
Consumers alternative-revenue programs (7)  
Total operating revenue 2,283 1,937
Consumers Energy Company | Electric Utility | Operating Segments    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 1,238 1,131
Financing income 3 3
Consumers alternative-revenue programs 0  
Total operating revenue 1,241 1,134
Consumers Energy Company | Gas Utility | Operating Segments    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 1,047 801
Financing income 2 2
Consumers alternative-revenue programs (7)  
Total operating revenue 1,042 803
Residential | Consumers Energy Company    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 1,331 1,122
Residential | Consumers Energy Company | Electric Utility | Operating Segments    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 591 568
Residential | Consumers Energy Company | Gas Utility | Operating Segments    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 740 554
Commercial | Consumers Energy Company    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 605 508
Commercial | Consumers Energy Company | Electric Utility | Operating Segments    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 384 345
Commercial | Consumers Energy Company | Gas Utility | Operating Segments    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 221 163
Industrial | Consumers Energy Company    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 196 161
Industrial | Consumers Energy Company | Electric Utility | Operating Segments    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 168 138
Industrial | Consumers Energy Company | Gas Utility | Operating Segments    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 28 23
Other    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 33 30
Other | Enterprises | Operating Segments    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 33 30
Other | Consumers Energy Company    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 153 141
Other | Consumers Energy Company | Electric Utility | Operating Segments    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers 95 80
Other | Consumers Energy Company | Gas Utility | Operating Segments    
Disaggregation of Revenue [Line Items]    
Revenue recognized from contracts with customers $ 58 $ 61
v3.22.1
Revenue (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Unbilled receivables $ 491   $ 486
Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Unbilled receivables 491   $ 486
Accounts Receivable      
Disaggregation of Revenue [Line Items]      
Bad debt expense 4 $ 6  
Accounts Receivable | Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Bad debt expense $ 4 $ 6  
v3.22.1
Cash And Cash Equivalents (Schedule Of Cash And Cash Equivalents, Including Restricted Amounts) (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Mar. 31, 2021
Dec. 31, 2020
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 446 $ 452    
Restricted cash and cash equivalents 28 24    
Cash and cash equivalents, including restricted amounts 474 476 $ 524 $ 185
Consumers Energy Company        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents 12 22    
Restricted cash and cash equivalents 26 22    
Cash and cash equivalents, including restricted amounts $ 38 $ 44 $ 34 $ 35
v3.22.1
Reportable Segments (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Segment Reporting Information [Line Items]      
Operating Revenue $ 2,374 $ 2,013  
Net income (loss) available to common stockholders 351 349  
Plant, property, and equipment, gross 30,199   $ 29,893
Total assets 28,740   28,753
Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 2,283 1,937  
Net income (loss) available to common stockholders 383 336  
Plant, property, and equipment, gross 29,076   28,771
Total assets 27,114   27,140
Other reconciling items      
Segment Reporting Information [Line Items]      
Net income (loss) available to common stockholders (40) (1)  
Plant, property, and equipment, gross 23   23
Total assets 444   431
Other reconciling items | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Plant, property, and equipment, gross 23   23
Total assets 22   21
Electric Utility | Operating Segments      
Segment Reporting Information [Line Items]      
Operating Revenue 1,241 1,134  
Net income (loss) available to common stockholders 167 155  
Plant, property, and equipment, gross 18,294   18,147
Total assets 16,650   16,493
Electric Utility | Operating Segments | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 1,241 1,134  
Net income (loss) available to common stockholders 167 155  
Plant, property, and equipment, gross 18,294   18,147
Total assets 16,712   16,555
Gas Utility | Operating Segments      
Segment Reporting Information [Line Items]      
Operating Revenue 1,042 803  
Net income (loss) available to common stockholders 216 181  
Plant, property, and equipment, gross 10,759   10,601
Total assets 10,334   10,517
Gas Utility | Operating Segments | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 1,042 803  
Net income (loss) available to common stockholders 216 181  
Plant, property, and equipment, gross 10,759   10,601
Total assets 10,380   10,564
Enterprises | Operating Segments      
Segment Reporting Information [Line Items]      
Operating Revenue 91 76  
Net income (loss) available to common stockholders 8 $ 14  
Plant, property, and equipment, gross 1,123   1,122
Total assets $ 1,312   $ 1,312
v3.22.1
Variable Interest Entities (Narrative) (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2022
USD ($)
MW
Dec. 31, 2021
USD ($)
Variable Interest Entity [Line Items]    
Investments $ 71 $ 71
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 $ 71 $ 71
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%  
v3.22.1
Variable Interest Entities (Consolidated Information of Variable Interest Entity) (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Variable Interest Entity [Line Items]    
Cash and cash equivalents $ 446 $ 452
Accounts receivable 1,042 931
Prepayments and other current assets 158 139
Plant, property, and equipment, net 22,540 22,352
Total Assets 28,740 28,753
Accounts payable 687 875
Asset retirement obligations 619 628
Variable Interest Entity, Primary Beneficiary    
Variable Interest Entity [Line Items]    
Cash and cash equivalents 14 20
Accounts receivable 3 3
Prepayments and other current assets 2 1
Plant, property, and equipment, net 665 671
Total Assets 684 695
Accounts payable 8 15
Asset retirement obligations 20 20
Total liabilities $ 28 $ 35
v3.22.1
Exit Activities and Discontinued Operations - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 30 Months Ended
Oct. 01, 2021
Oct. 31, 2021
Mar. 31, 2022
Mar. 31, 2021
Mar. 31, 2022
Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Gain from divestiture of business     $ 5 $ 0    
Discontinued Operations, Held-for-sale | EnerBank            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Proceeds from divestiture of businesses $ 1,000          
Gain from divestiture of business   $ 657 5 0    
Gain from divestiture of business related to post-closing adjustment     6      
Post-closing purchase price adjustment           $ 36
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  
Retention and severance costs         16  
Cost deferred     $ 1 $ 2    
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]            
Cost deferred         8  
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  
v3.22.1
Exit Activities and Discontinued Operations - Schedule of Retention Benefit Liability Roll Forward (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Restructuring Reserve [Roll Forward]      
Other current liabilities $ 144   $ 156
Retention Benefits | D.E. Karn Generating Complex      
Restructuring Reserve [Roll Forward]      
Retention benefit liability at beginning of period 14 $ 11  
Costs deferred as a regulatory asset 1 2  
Retention benefit liability at the end of the period 15 13  
Other current liabilities $ 5 $ 4  
v3.22.1
Exit Activities and Discontinued Operations - Income from Discontinued Operations (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended
Oct. 31, 2021
Mar. 31, 2022
Mar. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Gain on sale   $ 5 $ 0
Income tax expense   1 9
Income from discontinued operations, net of tax   4 34
Discontinued Operations, Held-for-sale | EnerBank      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Operating revenue   0 70
Operating expenses   0 15
Interest expense   0 12
Income before income taxes   0 43
Gain on sale $ 657 5 0
Income from discontinued operations before income taxes   5 43
Income tax expense   1 9
Income from discontinued operations, net of tax   $ 4 $ 34