CMS ENERGY CORP, 10-K filed on 2/8/2024
Annual Report
v3.24.0.1
Cover Page - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Jan. 12, 2024
Jun. 30, 2023
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2023    
Current Fiscal Year End Date --12-31    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filer No    
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    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 17,063
Entity Common Stock, Shares Outstanding   294,443,620  
Documents Incorporated by Reference CMS Energy’s and Consumers’ proxy statement relating to their 2024 Annual Meetings of Shareholders to be held May 3, 2024.    
Entity Central Index Key 0000811156    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Amendment Flag false    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filer No    
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    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] 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    
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    
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    
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: $4.50 Series    
Trading Symbol CMS-PB    
Security Exchange Name NYSE    
v3.24.0.1
Audit Information
 12 Months Ended
Dec. 31, 2023
Document Information [Line Items]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Detroit, Michigan
Consumers Energy Company  
Document Information [Line Items]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Detroit, Michigan
v3.24.0.1
CMS Energy Corporation Consolidated Statements of Income (Unaudited) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Operating Revenue $ 7,462 $ 8,596 $ 7,329
Operating Expenses      
Fuel for electric generation 561 905 593
Purchased power – related parties 75 76 77
Maintenance and other operating expenses 1,687 1,669 1,610
Depreciation and amortization 1,180 1,126 1,114
General taxes 447 412 389
Total operating expenses 6,227 7,372 6,183
Operating Income 1,235 1,224 1,146
Other Income (Expense)      
Non-operating retirement benefits, net 180 205 165
Other income 195 19 30
Other expense (13) (27) (18)
Total other income 362 197 177
Interest Charges      
Interest on long-term debt 616 509 481
Allowance for borrowed funds used during construction (3) (2) (3)
Total interest charges 643 519 500
Income Before Income Taxes 954 902 823
Income Tax Expense 147 93 95
Income From Continuing Operations 807 809 728
Income From Discontinued Operations, Net of Tax of $—, $1, and $170 1 4 602
Net Income 808 813 1,330
Loss Attributable to Noncontrolling Interests (79) (24) (23)
Net Income 887 837 1,353
Preferred Stock Dividends 10 10 5
Net Income Available to Common Stockholders $ 877 $ 827 $ 1,348
Basic Earnings Per Average Common Share      
Income from continuing operations per average common share available to common stockholders (in dollars per share) $ 3.01 $ 2.84 $ 2.58
Income from discontinued operations per average common share available to common stockholders (in dollars per share) 0 0.01 2.08
Basic earnings per average common share (in dollars per share) 3.01 2.85 4.66
Diluted Earnings Per Average Common Share      
Income from continuing operations per average common share available to common stockholders (in dollars per share) 3.01 2.84 2.58
Income from discontinued operations per average common share available to common stockholders (in dollars per share) 0 0.01 2.08
Diluted earnings per average common share (in dollars per share) $ 3.01 $ 2.85 $ 4.66
Related Party      
Interest Charges      
Other interest expense $ 12 $ 12 $ 12
Nonrelated Party      
Interest Charges      
Other interest expense 18 0 10
Purchased and interchange power      
Operating Expenses      
Cost of goods and services sold 1,375 1,928 1,665
Cost of gas sold      
Operating Expenses      
Cost of goods and services sold $ 902 $ 1,256 $ 735
v3.24.0.1
CMS Energy Corporation Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Statement [Abstract]      
Tax effect of discontinued operations $ 0 $ 1 $ 170
v3.24.0.1
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]      
Net Income $ 808 $ 813 $ 1,330
Retirement Benefits Liability      
Net gain arising during the period 5 1 19
Settlement arising during the period 0 0 1
Amortization of net actuarial loss, net of tax 2 4 5
Amortization of prior service credit (1) (1) (1)
Derivatives      
Unrealized gain on derivative instruments, net of tax 0 2 2
Reclassification adjustments included in net income 0 (1) (1)
Other Comprehensive Income 6 7 27
Comprehensive Income 814 820 1,357
Comprehensive Loss Attributable to Noncontrolling Interests (79) (24) (23)
Comprehensive Income Attributable to CMS Energy $ 893 $ 844 $ 1,380
v3.24.0.1
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]      
Net gain (loss) arising during the period, tax $ 2 $ 0 $ 6
Settlement arising during the period, tax 0 0 0
Amortization of net actuarial loss, tax 0 1 2
Amortization of prior service credit, tax 0 0 0
Unrealized gain on derivative instruments, tax 0 1 0
Reclassification adjustments included in net income , tax $ 0 $ 0 $ 1
v3.24.0.1
CMS Energy Corporation Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash Flows from Operating Activities      
Net Income $ 808 $ 813 $ 1,330
Adjustments to reconcile net income to net cash provided by operating activities      
Depreciation and amortization 1,180 1,126 1,114
Deferred income taxes and investment tax credits 157 89 249
Bad debt expense 34 50 22
Postretirement benefits contributions (12) (12) (12)
Gain from sale of EnerBank 0 (5) (657)
Other non‑cash operating activities and reconciling adjustments (274) (93) (70)
Net cash used in discontinued operations 0 0 (111)
Changes in assets and liabilities      
Accounts receivable and accrued revenue 241 (677) (103)
Inventories 185 (450) (93)
Accounts payable and accrued rate refunds (136) 4 153
Other current assets and liabilities (21) 14 13
Other non‑current assets and liabilities 147 (4) (16)
Net cash provided by operating activities 2,309 855 1,819
Cash Flows from Investing Activities      
Net proceeds from sale of EnerBank 0 5 898
Net cash provided by discontinued operations 0 0 78
Cost to retire property and other investing activities (167) (107) (133)
Net cash used in investing activities (3,386) (2,476) (1,233)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 3,551 1,899 335
Retirement of debt (2,132) (106) (235)
Increase in notes payable 73 20 0
Issuance of common stock 192 69 26
Issuance of preferred stock, net of issuance costs 0 0 224
Payment of dividends on common and preferred stock (579) (544) (508)
Proceeds from the sale of membership interest in VIE to tax equity investor 86 49 0
Contribution from noncontrolling interest 6 2 1
Net cash used in discontinued operations 0 0 (84)
Other financing costs (54) (62) (54)
Net cash provided by (used in) financing activities 1,143 1,327 (295)
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 66 (294) 291
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 182 476 185
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 248 182 476
Cash transactions      
Interest paid (net of amounts capitalized) 607 490 489
Income taxes paid 15 1 16
Non‑cash transactions      
Capital expenditures not paid 265 228 196
Capital Expenditures      
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) (2,407) (2,374) (2,076)
Covert Plant Acquisition      
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) $ (812) $ 0 $ 0
v3.24.0.1
CMS Energy Corporation Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Current Assets    
Cash and cash equivalents $ 227 $ 164
Restricted cash and cash equivalents 21 18
Inventories at average cost    
Gas in underground storage 587 840
Materials and supplies 267 212
Generating plant fuel stock 84 65
Deferred property taxes 426 384
Regulatory assets 203 57
Prepayments and other current assets 80 113
Total current assets 2,839 3,433
Plant, Property, and Equipment    
Plant, property, and equipment, gross 33,135 30,491
Less accumulated depreciation and amortization 9,007 8,960
Plant, property, and equipment, net 24,128 21,531
Construction work in progress 944 1,182
Total plant, property, and equipment 25,072 22,713
Other Non‑current Assets    
Regulatory assets 3,683 3,595
Accounts receivable 22 23
Investments 76 71
Postretirement benefits 1,468 1,208
Other 357 310
Total other non‑current assets 5,606 5,207
Total Assets 33,517 31,353
Current Liabilities    
Current portion of long-term debt and finance leases 980 1,099
Notes payable 93 20
Accrued rate refunds 54 0
Accrued interest 142 122
Accrued taxes 612 538
Regulatory liabilities 56 104
Other current liabilities 149 166
Total current liabilities 2,895 2,985
Non‑current Liabilities    
Long-term debt 14,508 13,122
Non-current portion of finance leases 62 68
Regulatory liabilities 3,894 3,796
Postretirement benefits 106 108
Asset retirement obligations 771 746
Deferred investment tax credit 126 129
Deferred income taxes 2,615 2,407
Other non‑current liabilities 415 397
Total non‑current liabilities 22,497 20,773
Commitments and Contingencies
Common stockholders’ equity    
Common stock 3 3
Other paid-in capital 5,705 5,490
Accumulated other comprehensive loss (46) (52)
Retained earnings 1,658 1,350
Total common stockholders’ equity 7,320 6,791
Cumulative preferred stock 224 224
Total stockholders’ equity 7,544 7,015
Noncontrolling interests 581 580
Total equity 8,125 7,595
Total Liabilities and Equity 33,517 31,353
Nonrelated Party    
Current Assets    
Accounts receivable and accrued revenue, less allowance of $21 in 2023 and $27 in 2022 933 1,564
Current Liabilities    
Accounts payable 802 928
Related Party    
Current Assets    
Accounts receivable – related parties 11 16
Current Liabilities    
Accounts payable $ 7 $ 8
v3.24.0.1
CMS Energy Corporation Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Accounts receivable and accrued revenue, allowance $ 21 $ 27
Common stock authorized (in shares) 350,000,000.0 350,000,000.0
Common stock outstanding (in shares) 294,400,000 291,300,000
Preferred stock authorized (in shares) 10,000,000  
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
v3.24.0.1
CMS Energy Corporation Consolidated Statements of Changes in Equity (Unaudited) - USD ($)
shares in Thousands, $ 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
Beginning of period (in shares) at Dec. 31, 2020   288,940              
Total Equity at Beginning of Period at Dec. 31, 2020 $ 6,077 $ 3 $ 5,365 $ (86) $ (80) $ (6) $ 214 $ 0 $ 581
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Common stock issued (in shares)   997              
Common stock issued     50         224  
Common stock repurchased (in shares)   (157)              
Common stock repurchased     (9)            
Common stock reacquired (in shares)   (22)              
Common stock reacquired     0            
Net gain arising during the period 19       19        
Settlement arising during the period 1       1        
Amortization of net actuarial loss 5       5        
Amortization of prior service credit (1)       (1)        
Unrealized gain on derivative instruments 2         2      
Reclassification adjustments included in net income 1         1      
Net Income 1,330           1,353   (23)
Dividends declared on common stock             (505)    
Dividends declared on preferred stock             (5)    
Sale of membership interest in VIE to tax equity investor                 0
Contribution from noncontrolling interest                 1
Distributions and other changes in noncontrolling interests                 (2)
Total Equity at End of Period at Dec. 31, 2021 $ 7,188 $ 3 5,406 (59) (56) (3) 1,057 224 557
End of period (in shares) at Dec. 31, 2021   289,758              
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Dividends declared per common share (in dollars per share) $ 1.7400                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0.5688                
Common stock issued (in shares)   1,704              
Common stock issued     93         0  
Common stock repurchased (in shares)   (151)              
Common stock repurchased     (9)            
Common stock reacquired (in shares)   (43)              
Common stock reacquired     0            
Net gain arising during the period $ 1       1        
Settlement arising during the period 0       0        
Amortization of net actuarial loss 4       4        
Amortization of prior service credit (1)       (1)        
Unrealized gain on derivative instruments 2         2      
Reclassification adjustments included in net income 1         1      
Net Income 813           837   (24)
Dividends declared on common stock             (534)    
Dividends declared on preferred stock             (10)    
Sale of membership interest in VIE to tax equity investor                 49
Contribution from noncontrolling interest                 2
Distributions and other changes in noncontrolling interests                 (4)
Total Equity at End of Period at Dec. 31, 2022 $ 7,595 $ 3 5,490 (52) (52) 0 1,350 224 580
End of period (in shares) at Dec. 31, 2022 291,300 291,268              
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Dividends declared per common share (in dollars per share) $ 1.8400                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 1.0500                
Common stock issued (in shares)   3,355              
Common stock issued     222         0  
Common stock repurchased (in shares)   (119)              
Common stock repurchased     (7)            
Common stock reacquired (in shares)   (64)              
Common stock reacquired     0            
Net gain arising during the period $ 5       5        
Settlement arising during the period 0       0        
Amortization of net actuarial loss 2       2        
Amortization of prior service credit (1)       (1)        
Unrealized gain on derivative instruments 0         0      
Reclassification adjustments included in net income 0         0      
Net Income 808           887   (79)
Dividends declared on common stock             (569)    
Dividends declared on preferred stock             (10)    
Sale of membership interest in VIE to tax equity investor                 86
Contribution from noncontrolling interest                 6
Distributions and other changes in noncontrolling interests                 (12)
Total Equity at End of Period at Dec. 31, 2023 $ 8,125 $ 3 $ 5,705 $ (46) $ (46) $ 0 $ 1,658 $ 224 $ 581
End of period (in shares) at Dec. 31, 2023 294,400 294,440              
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Dividends declared per common share (in dollars per share) $ 1.9500                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 1.0500                
v3.24.0.1
Consumers Energy Company Consolidated Statements of Income (Unaudited) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Operating Revenue $ 7,462 $ 8,596 $ 7,329
Operating Expenses      
Operating Income 1,235 1,224 1,146
Other Income (Expense)      
Non-operating retirement benefits, net 180 205 165
Other income 195 19 30
Other expense (13) (27) (18)
Total other income 362 197 177
Interest Charges      
Interest on long-term debt 616 509 481
Allowance for borrowed funds used during construction (3) (2) (3)
Total interest charges 643 519 500
Income Before Income Taxes 954 902 823
Income Tax Expense 147 93 95
Net Income 887 837 1,353
Preferred Stock Dividends 10 10 5
Net Income Available to Common Stockholders 877 827 1,348
Related Party      
Interest Charges      
Other interest expense 12 12 12
Nonrelated Party      
Interest Charges      
Other interest expense 18 0 10
Consumers Energy Company      
Operating Revenue 7,166 8,151 7,021
Operating Expenses      
Fuel for electric generation 435 662 463
Purchased and interchange power 1,331 1,867 1,599
Purchased power – related parties 75 76 77
Cost of gas sold 897 1,243 726
Maintenance and other operating expenses 1,586 1,582 1,531
Depreciation and amortization 1,137 1,088 1,077
General taxes 437 400 373
Total operating expenses 5,898 6,918 5,846
Operating Income 1,268 1,233 1,175
Other Income (Expense)      
Non-operating retirement benefits, net 171 195 155
Other income 49 17 23
Other expense (12) (25) (18)
Total other income 208 187 160
Interest Charges      
Interest on long-term debt 415 325 294
Allowance for borrowed funds used during construction (3) (2) (3)
Total interest charges 448 335 311
Income Before Income Taxes 1,028 1,085 1,024
Income Tax Expense 161 140 156
Net Income 867 945 868
Preferred Stock Dividends 2 2 2
Net Income Available to Common Stockholders 865 943 866
Consumers Energy Company | Related Party      
Interest Charges      
Other interest expense 20 12 12
Consumers Energy Company | Nonrelated Party      
Interest Charges      
Other interest expense $ 16 $ 0 $ 8
v3.24.0.1
Consumers Energy Company Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Net Income $ 887 $ 837 $ 1,353
Retirement Benefits Liability      
Net gain (loss) arising during the period 5 1 19
Amortization of net actuarial loss, net of tax 2 4 5
Other Comprehensive Income 6 7 27
Comprehensive Income Attributable to CMS Energy 893 844 1,380
Consumers Energy Company      
Net Income 867 945 868
Retirement Benefits Liability      
Net gain (loss) arising during the period (1) 15 2
Amortization of net actuarial loss, net of tax 1 2 2
Other Comprehensive Income 0 17 4
Comprehensive Income Attributable to CMS Energy $ 867 $ 962 $ 872
v3.24.0.1
Consumers Energy Company Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Net gain (loss) arising during the period, tax $ 2 $ 0 $ 6
Amortization of net actuarial loss, tax 0 1 2
Consumers Energy Company      
Net gain (loss) arising during the period, tax 0 5 1
Amortization of net actuarial loss, tax $ 0 $ 0 $ 1
v3.24.0.1
Consumers Energy Company Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash Flows from Operating Activities      
Net Income $ 887 $ 837 $ 1,353
Adjustments to reconcile net income to net cash provided by operating activities      
Deferred income taxes and investment tax credits 157 89 249
Bad debt expense 34 50 22
Postretirement benefits contributions (12) (12) (12)
Other non‑cash operating activities and reconciling adjustments (274) (93) (70)
Changes in assets and liabilities      
Accounts receivable and accrued revenue 241 (677) (103)
Inventories 185 (450) (93)
Accounts payable and accrued rate refunds (136) 4 153
Other current assets and liabilities (21) 14 13
Other non‑current assets and liabilities 147 (4) (16)
Net cash provided by operating activities 2,309 855 1,819
Cash Flows from Investing Activities      
Cost to retire property and other investing activities (167) (107) (133)
Net cash used in investing activities (3,386) (2,476) (1,233)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 3,551 1,899 335
Retirement of debt (2,132) (106) (235)
Increase in notes payable 73 20 0
Other financing costs (54) (62) (54)
Net cash provided by (used in) financing activities 1,143 1,327 (295)
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 66 (294) 291
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 182 476 185
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 248 182 476
Cash transactions      
Interest paid (net of amounts capitalized) 607 490 489
Income taxes paid 15 1 16
Non‑cash transactions      
Capital expenditures not paid 265 228 196
Capital Expenditures      
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) (2,407) (2,374) (2,076)
Covert Plant Acquisition      
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) (812) 0 0
Consumers Energy Company      
Cash Flows from Operating Activities      
Net Income 867 945 868
Adjustments to reconcile net income to net cash provided by operating activities      
Depreciation and amortization 1,137 1,088 1,077
Deferred income taxes and investment tax credits 156 134 154
Bad debt expense 34 50 22
Postretirement benefits contributions (9) (9) (9)
Other non‑cash operating activities and reconciling adjustments (123) (87) (64)
Changes in assets and liabilities      
Accounts receivable and accrued revenue 219 (660) (103)
Inventories 186 (447) (90)
Accounts payable and accrued rate refunds (127) (9) 140
Other current assets and liabilities (35) 18 27
Other non‑current assets and liabilities 125 (29) (40)
Net cash provided by operating activities 2,430 994 1,982
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease)     (2,052)
Cost to retire property and other investing activities (141) (105) (133)
Net cash used in investing activities (3,201) (2,344) (2,185)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 2,666 1,799 335
Retirement of debt (1,654) (28) (27)
Stockholder contribution 475 685 575
Payment of dividends on common and preferred stock (697) (771) (724)
Other financing costs (21) (22) (32)
Net cash provided by (used in) financing activities 767 1,366 212
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts (4) 16 9
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 60 44 35
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 56 60 44
Cash transactions      
Interest paid (net of amounts capitalized) 417 309 298
Income taxes paid 31 (2) (10)
Non‑cash transactions      
Capital expenditures not paid 264 210 192
Consumers Energy Company | Capital Expenditures      
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) (2,248) (2,239)  
Consumers Energy Company | Covert Plant Acquisition      
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) (812) 0 0
Consumers Energy Company | Nonrelated Party      
Cash Flows from Financing Activities      
Increase in notes payable 73 20 0
Consumers Energy Company | Related Party      
Cash Flows from Financing Activities      
Increase in notes payable $ (75) $ (317) $ 85
v3.24.0.1
Consumers Energy Company Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Current Assets    
Cash and cash equivalents $ 227 $ 164
Restricted cash and cash equivalents 21 18
Inventories at average cost    
Gas in underground storage 587 840
Materials and supplies 267 212
Generating plant fuel stock 84 65
Deferred property taxes 426 384
Regulatory assets 203 57
Prepayments and other current assets 80 113
Total current assets 2,839 3,433
Other Non‑current Assets    
Regulatory assets 3,683 3,595
Accounts receivable 22 23
Postretirement benefits 1,468 1,208
Other 357 310
Total other non‑current assets 5,606 5,207
Total Assets 33,517 31,353
Current Liabilities    
Current portion of long-term debt and finance leases 980 1,099
Notes payable 93 20
Accrued rate refunds 54 0
Accrued interest 142 122
Accrued taxes 612 538
Regulatory liabilities 56 104
Other current liabilities 149 166
Total current liabilities 2,895 2,985
Non‑current Liabilities    
Long-term debt 14,508 13,122
Non-current portion of finance leases 62 68
Regulatory liabilities 3,894 3,796
Postretirement benefits 106 108
Asset retirement obligations 771 746
Deferred investment tax credit 126 129
Deferred income taxes 2,615 2,407
Other non‑current liabilities 415 397
Total non‑current liabilities 22,497 20,773
Commitments and Contingencies
Common stockholders’ equity    
Common stock 3 3
Other paid-in capital 5,705 5,490
Accumulated other comprehensive loss (46) (52)
Retained earnings 1,658 1,350
Total common stockholders’ equity 7,320 6,791
Cumulative preferred stock 224 224
Total stockholders’ equity 7,544 7,015
Total Liabilities and Equity 33,517 31,353
Nonrelated Party    
Current Assets    
Accounts receivable and accrued revenue, less allowance of $21 in 2023 and $27 in 2022 933 1,564
Current Liabilities    
Accounts payable 802 928
Related Party    
Current Liabilities    
Accounts payable 7 8
Consumers Energy Company    
Current Assets    
Cash and cash equivalents 35 43
Restricted cash and cash equivalents 21 17
Inventories at average cost    
Gas in underground storage 587 840
Materials and supplies 257 206
Generating plant fuel stock 80 59
Deferred property taxes 426 384
Regulatory assets 203 57
Prepayments and other current assets 65 96
Total current assets 2,594 3,236
Plant, Property, and Equipment    
Plant, property, and equipment, gross 31,723 29,342
Less accumulated depreciation and amortization 8,796 8,791
Plant, property, and equipment, net 22,927 20,551
Construction work in progress 845 994
Total plant, property, and equipment 23,772 21,545
Other Non‑current Assets    
Regulatory assets 3,683 3,595
Postretirement benefits 1,367 1,126
Other 313 286
Total other non‑current assets 5,486 5,135
Total Assets 31,852 29,916
Current Liabilities    
Current portion of long-term debt and finance leases 731 1,000
Accrued rate refunds 54 0
Accrued interest 110 90
Accrued taxes 614 556
Regulatory liabilities 56 104
Other current liabilities 128 147
Total current liabilities 2,563 2,871
Non‑current Liabilities    
Long-term debt 10,037 9,192
Non-current portion of finance leases 39 45
Regulatory liabilities 3,894 3,796
Postretirement benefits 77 79
Asset retirement obligations 739 722
Deferred investment tax credit 126 129
Deferred income taxes 2,789 2,585
Other non‑current liabilities 364 342
Total non‑current liabilities 18,489 16,890
Commitments and Contingencies
Common stockholders’ equity    
Common stock 841 841
Other paid-in capital 7,759 7,284
Accumulated other comprehensive loss (15) (15)
Retained earnings 2,178 2,008
Total common stockholders’ equity 10,763 10,118
Cumulative preferred stock 37 37
Total stockholders’ equity 10,800 10,155
Total Liabilities and Equity 31,852 29,916
Consumers Energy Company | Nonrelated Party    
Current Assets    
Accounts receivable and accrued revenue, less allowance of $21 in 2023 and $27 in 2022 909 1,524
Other Non‑current Assets    
Accounts receivable 28 29
Current Liabilities    
Notes payable 93 20
Accounts payable 764 864
Non‑current Liabilities    
Long-term debt 10,037 9,192
Consumers Energy Company | Related Party    
Current Assets    
Accounts and notes receivable – related parties 11 10
Other Non‑current Assets    
Accounts receivable 95 99
Current Liabilities    
Notes payable 0 75
Accounts payable 13 15
Non‑current Liabilities    
Long-term debt $ 424 $ 0
v3.24.0.1
Consumers Energy Company Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Accounts receivable and accrued revenue, allowance $ 21 $ 27
Common stock authorized (in shares) 350,000,000.0 350,000,000.0
Common stock outstanding (in shares) 294,400,000 291,300,000
Preferred stock, par value (in dollars per share) $ 0.01  
Preferred stock authorized (in shares) 10,000,000  
Consumers Energy Company    
Accounts receivable and accrued revenue, allowance $ 21 $ 27
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, par value (in dollars per share) $ 4.50 $ 4.50
Preferred stock authorized (in shares) 7,500,000 7,500,000
Preferred stock outstanding (in shares) 400,000 400,000
v3.24.0.1
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 $ 0 $ 8,556 $ 841 $ 6,024   $ (36) $ 1,690 $ 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   575        
Net gain (loss) arising during the period 19       19     2       2    
Amortization of net actuarial loss 5       5     2       2    
Net Income 1,353             868         868  
Dividends declared on common stock           (505)             (722)  
Dividends declared on preferred stock           (5)             (2)  
Total Equity at End of Period at Dec. 31, 2021 7,188 3 5,406 (59) (56) 1,057 224 9,279 841 6,599 $ (32) (32) 1,834 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   685        
Net gain (loss) arising during the period 1       1     15       15    
Amortization of net actuarial loss 4       4     2       2    
Net Income 837             945         945  
Dividends declared on common stock           (534)             (769)  
Dividends declared on preferred stock           (10)             (2)  
Total Equity at End of Period at Dec. 31, 2022 7,595 3 5,490 (52) (52) 1,350 224 10,155 841 7,284 (15) (15) 2,008 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   475        
Net gain (loss) arising during the period 5       5     (1)       (1)    
Amortization of net actuarial loss 2       2     1       $ 1    
Net Income 887             867         867  
Dividends declared on common stock           (569)             (695)  
Dividends declared on preferred stock           (10)             (2)  
Total Equity at End of Period at Dec. 31, 2023 $ 8,125 $ 3 $ 5,705 $ (46) $ (46) $ 1,658 $ 224 $ 10,800 $ 841 $ 7,759 $ (15)   $ 2,178 $ 37
v3.24.0.1
Significant Accounting Policies
 12 Months Ended
Dec. 31, 2023
Significant Accounting Policies [Line Items]  
Significant Accounting Policies Significant Accounting Policies
Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, NorthStar Clean Energy, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances.
Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates.
Cash and Cash Equivalents and Restricted 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 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.
Contingencies: CMS Energy and Consumers record estimated loss contingencies on their consolidated financial statements when it is probable that a loss has been incurred and when the amount of loss can be reasonably estimated. For environmental remediation projects in which the timing of estimated expenditures is considered reliably determinable, CMS Energy and Consumers record the liability at its net present value, using a discount rate equal to the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability. Unless regulatory accounting applies, CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed.
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: Upon the issuance of long-term debt, CMS Energy and Consumers defer issuance costs, discounts, and premiums and amortize those amounts over the terms of the associated debt. Debt issuance costs are presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Upon the refinancing of long-term debt, Consumers, as a regulated entity, defers any remaining unamortized issuance costs, discounts, and premiums associated with the refinanced debt and amortizes those amounts over the term of the newly issued debt. For the non‑regulated portions of CMS Energy’s business, any remaining unamortized issuance costs, discounts, and premiums associated with extinguished debt are charged to earnings.
Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers may enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the
commodity at a contracted price. Most of these contracts are not subject to derivative accounting for one or more of the following reasons:
•they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas)
•they qualify for the normal purchases and sales exception
•they cannot be net settled due in part to the absence of an active market for the commodity
Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives and changes in the fair value of FTRs are deferred as regulatory assets or liabilities. For details regarding CMS Energy’s and Consumers’ derivative instruments recorded at fair value, see Note 5, Fair Value Measurements.
EPS: CMS Energy calculates basic and diluted EPS using the weighted-average number of shares of common stock and dilutive potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted EPS, includes the effects of nonvested stock awards, forward equity sales, and convertible securities. CMS Energy computes the effect on potential common stock using the treasury stock method. Potentially dilutive common shares issuable upon conversion of the convertible senior notes are determined using the if-converted method for calculating diluted EPS. Diluted EPS excludes the impact of antidilutive securities, which are those securities resulting in an increase in EPS or a decrease in loss per share. For EPS computations, see Note 13, Earnings Per Share—CMS Energy.
Impairment of Long-lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur that indicate the carrying amount of an asset may not be recoverable or that there has been a decline in value that may be other than temporary.
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses.
CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary.
Investment Tax Credits: CMS Energy and its subsidiaries use the flow-through method of accounting for investment tax credits. Under the flow-through method, the credit is recognized as a reduction to income tax expense when the related plant, property, and equipment is placed into service. For its regulated utility assets, Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment.
Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy
and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets.
CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. CMS Energy and Consumers classify these amounts within other assets on their consolidated balance sheets.
CMS Energy and Consumers evaluate inventory for impairment as required to ensure that its carrying value does not exceed the lower of cost or net realizable value.
MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements.
Property Taxes: Property taxes are based on the taxable value of CMS Energy’s and Consumers’ real and personal property assessed by local taxing authorities. CMS Energy and Consumers record property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of CMS Energy’s and Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
Other: For additional accounting policies, see:
•Note 2, Regulatory Matters
•Note 7, Plant, Property, and Equipment
•Note 8, Leases
•Note 9, Asset Retirement Obligations
•Note 10, Retirement Benefits
•Note 12, Income Taxes
•Note 13, Earnings Per Share—CMS Energy
•Note 14, Revenue
•Note 18, Variable Interest Entities
Income Taxes Income Taxes
CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement.
Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate:
In Millions, Except Tax Rate
Years Ended December 31202320222021
CMS Energy, including Consumers
Income from continuing operations before income taxes$954 $902 $823 
Income tax expense at statutory rate200 189 173 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1
31 51 39 
Renewable energy tax credits(58)(51)(44)
TCJA excess deferred taxes2
(40)(65)(50)
Taxes attributable to noncontrolling interests17 5 5 
Accelerated flow-through of regulatory tax benefits3
— (39)(28)
Other, net(3)3 — 
Income tax expense$147 $93 $95 
Effective tax rate15.4 %10.3 %11.5 %
Consumers
Income from continuing operations before income taxes$1,028 $1,085 $1,024 
Income tax expense at statutory rate216 228 215 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1
36 59 54 
Renewable energy tax credits(46)(46)(37)
TCJA excess deferred taxes2
(40)(65)(50)
Accelerated flow-through of regulatory tax benefits3
— (39)(28)
Other, net(5)3 2 
Income tax expense$161 $140 $156 
Effective tax rate15.7 %12.9 %15.2 %
1CMS Energy initiated a plan to divest immaterial business activities in a non‑Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction after 2023. As a result of these actions, CMS Energy reversed a $13 million non‑Michigan reserve, all of which was recognized at Consumers.
2In 2020, the MPSC authorized Consumers to accelerate the amortization of the gas portion of its regulatory liability associated with unprotected, non-property-related excess deferred income taxes resulting from the TCJA. This portion of the regulatory liability was fully amortized in 2022.
3In 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 were fully amortized in 2022.
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Current income taxes
Federal$5 $6 $(1)
State and local1 — 1 
$6 $6 $— 
Deferred income taxes
Federal107 4 49 
State and local38 65 49 
$145 $69 $98 
Deferred income tax credit(4)18 (3)
Tax expense$147 $93 $95 
Consumers
Current income taxes
Federal$3 $(2)$(13)
State and local2 8 15 
$5 $6 $2 
Deferred income taxes
Federal117 50 103 
State and local43 66 54 
$160 $116 $157 
Deferred income tax credit(4)18 (3)
Tax expense$161 $140 $156 
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120232022
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$428 $385 
Net regulatory tax liability305 318 
Reserves and accruals28 35 
Total deferred income tax assets$761 $738 
Valuation allowance(2)(2)
Total deferred income tax assets, net of valuation allowance$759 $736 
Deferred income tax liabilities
Plant, property, and equipment$(2,520)$(2,515)
Employee benefits(473)(433)
Gas inventory(66)(53)
Securitized costs(194)(39)
Other(121)(103)
Total deferred income tax liabilities$(3,374)$(3,143)
Total net deferred income tax liabilities$(2,615)$(2,407)
Consumers
Deferred income tax assets
Net regulatory tax liability$305 $318 
Tax loss and credit carryforwards175 145 
Reserves and accruals27 28 
Total deferred income tax assets$507 $491 
Deferred income tax liabilities
Plant, property, and equipment$(2,498)$(2,458)
Employee benefits(459)(423)
Gas inventory(66)(53)
Securitized costs(194)(39)
Other(79)(103)
Total deferred income tax liabilities$(3,296)$(3,076)
Total net deferred income tax liabilities$(2,789)$(2,585)
Deferred tax assets and liabilities are recognized for the estimated future tax effect of temporary differences between the tax basis of assets or liabilities and the reported amounts on CMS Energy’s and Consumers’ consolidated financial statements.
Presented in the following table are the tax loss and credit carryforwards at December 31, 2023:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
State net operating loss carryforwards$69 2030 – 2033
Local net operating loss carryforwards3 2024 – 2040
General business credits356 2035 – 2043
Total tax attributes$428 
Consumers
State net operating loss carryforwards$53 2030 – 2033
General business credits122 2035 – 2043
Total tax attributes$175 
CMS Energy has provided a valuation allowance of $2 million for the local tax loss carryforward. CMS Energy and Consumers expect to utilize fully their tax loss and credit carryforwards for which no valuation allowance has been provided. It is reasonably possible that further adjustments will be made to the valuation allowances within one year.
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Balance at beginning of period$28 $27 $25 
Additions for current-year tax positions1 1 2 
Additions for prior-year tax positions— 1 — 
Reductions for prior-year tax positions(3)(1)— 
Balance at end of period$26 $28 $27 
Consumers
Balance at beginning of period$36 $34 $31 
Additions for current-year tax positions1 3 3 
Additions for prior-year tax positions2 1 — 
Reductions for prior-year tax positions(3)(2)— 
Balance at end of period$36 $36 $34 
If recognized, all of these uncertain tax benefits would affect CMS Energy’s and Consumers’ annual effective tax rates in future years. One uncertain tax benefit relates to the methodology of state apportionment for Consumers’ electricity sales to MISO. The Michigan Tax Tribunal heard oral arguments on this methodology during 2022. A final conclusion is not anticipated in the next 12 months.
CMS Energy and Consumers recognize accrued interest and penalties, where applicable, as part of income tax expense. CMS Energy, including Consumers, recognized no interest or penalties for each of the years ended December 31, 2023, 2022, or 2021.
The amount of income taxes paid is subject to ongoing audits by federal, state, local, and foreign tax authorities, which can result in proposed assessments. CMS Energy’s federal income tax returns for 2020
and subsequent years remain subject to examination by the IRS. CMS Energy’s Michigan Corporate Income Tax returns for 2013-2016 and 2019 and subsequent years remain subject to examination by the State of Michigan. CMS Energy’s and Consumers’ estimate of the potential outcome for any uncertain tax issue is highly judgmental. CMS Energy and Consumers believe that their accrued tax liabilities at December 31, 2023 were adequate for all years.
Consumers Energy Company  
Significant Accounting Policies [Line Items]  
Significant Accounting Policies Significant Accounting Policies
Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, NorthStar Clean Energy, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances.
Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates.
Cash and Cash Equivalents and Restricted 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 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.
Contingencies: CMS Energy and Consumers record estimated loss contingencies on their consolidated financial statements when it is probable that a loss has been incurred and when the amount of loss can be reasonably estimated. For environmental remediation projects in which the timing of estimated expenditures is considered reliably determinable, CMS Energy and Consumers record the liability at its net present value, using a discount rate equal to the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability. Unless regulatory accounting applies, CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed.
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: Upon the issuance of long-term debt, CMS Energy and Consumers defer issuance costs, discounts, and premiums and amortize those amounts over the terms of the associated debt. Debt issuance costs are presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Upon the refinancing of long-term debt, Consumers, as a regulated entity, defers any remaining unamortized issuance costs, discounts, and premiums associated with the refinanced debt and amortizes those amounts over the term of the newly issued debt. For the non‑regulated portions of CMS Energy’s business, any remaining unamortized issuance costs, discounts, and premiums associated with extinguished debt are charged to earnings.
Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers may enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the
commodity at a contracted price. Most of these contracts are not subject to derivative accounting for one or more of the following reasons:
•they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas)
•they qualify for the normal purchases and sales exception
•they cannot be net settled due in part to the absence of an active market for the commodity
Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives and changes in the fair value of FTRs are deferred as regulatory assets or liabilities. For details regarding CMS Energy’s and Consumers’ derivative instruments recorded at fair value, see Note 5, Fair Value Measurements.
EPS: CMS Energy calculates basic and diluted EPS using the weighted-average number of shares of common stock and dilutive potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted EPS, includes the effects of nonvested stock awards, forward equity sales, and convertible securities. CMS Energy computes the effect on potential common stock using the treasury stock method. Potentially dilutive common shares issuable upon conversion of the convertible senior notes are determined using the if-converted method for calculating diluted EPS. Diluted EPS excludes the impact of antidilutive securities, which are those securities resulting in an increase in EPS or a decrease in loss per share. For EPS computations, see Note 13, Earnings Per Share—CMS Energy.
Impairment of Long-lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur that indicate the carrying amount of an asset may not be recoverable or that there has been a decline in value that may be other than temporary.
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses.
CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary.
Investment Tax Credits: CMS Energy and its subsidiaries use the flow-through method of accounting for investment tax credits. Under the flow-through method, the credit is recognized as a reduction to income tax expense when the related plant, property, and equipment is placed into service. For its regulated utility assets, Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment.
Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy
and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets.
CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. CMS Energy and Consumers classify these amounts within other assets on their consolidated balance sheets.
CMS Energy and Consumers evaluate inventory for impairment as required to ensure that its carrying value does not exceed the lower of cost or net realizable value.
MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements.
Property Taxes: Property taxes are based on the taxable value of CMS Energy’s and Consumers’ real and personal property assessed by local taxing authorities. CMS Energy and Consumers record property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of CMS Energy’s and Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
Other: For additional accounting policies, see:
•Note 2, Regulatory Matters
•Note 7, Plant, Property, and Equipment
•Note 8, Leases
•Note 9, Asset Retirement Obligations
•Note 10, Retirement Benefits
•Note 12, Income Taxes
•Note 13, Earnings Per Share—CMS Energy
•Note 14, Revenue
•Note 18, Variable Interest Entities
Income Taxes Income Taxes
CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement.
Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate:
In Millions, Except Tax Rate
Years Ended December 31202320222021
CMS Energy, including Consumers
Income from continuing operations before income taxes$954 $902 $823 
Income tax expense at statutory rate200 189 173 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1
31 51 39 
Renewable energy tax credits(58)(51)(44)
TCJA excess deferred taxes2
(40)(65)(50)
Taxes attributable to noncontrolling interests17 5 5 
Accelerated flow-through of regulatory tax benefits3
— (39)(28)
Other, net(3)3 — 
Income tax expense$147 $93 $95 
Effective tax rate15.4 %10.3 %11.5 %
Consumers
Income from continuing operations before income taxes$1,028 $1,085 $1,024 
Income tax expense at statutory rate216 228 215 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1
36 59 54 
Renewable energy tax credits(46)(46)(37)
TCJA excess deferred taxes2
(40)(65)(50)
Accelerated flow-through of regulatory tax benefits3
— (39)(28)
Other, net(5)3 2 
Income tax expense$161 $140 $156 
Effective tax rate15.7 %12.9 %15.2 %
1CMS Energy initiated a plan to divest immaterial business activities in a non‑Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction after 2023. As a result of these actions, CMS Energy reversed a $13 million non‑Michigan reserve, all of which was recognized at Consumers.
2In 2020, the MPSC authorized Consumers to accelerate the amortization of the gas portion of its regulatory liability associated with unprotected, non-property-related excess deferred income taxes resulting from the TCJA. This portion of the regulatory liability was fully amortized in 2022.
3In 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 were fully amortized in 2022.
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Current income taxes
Federal$5 $6 $(1)
State and local1 — 1 
$6 $6 $— 
Deferred income taxes
Federal107 4 49 
State and local38 65 49 
$145 $69 $98 
Deferred income tax credit(4)18 (3)
Tax expense$147 $93 $95 
Consumers
Current income taxes
Federal$3 $(2)$(13)
State and local2 8 15 
$5 $6 $2 
Deferred income taxes
Federal117 50 103 
State and local43 66 54 
$160 $116 $157 
Deferred income tax credit(4)18 (3)
Tax expense$161 $140 $156 
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120232022
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$428 $385 
Net regulatory tax liability305 318 
Reserves and accruals28 35 
Total deferred income tax assets$761 $738 
Valuation allowance(2)(2)
Total deferred income tax assets, net of valuation allowance$759 $736 
Deferred income tax liabilities
Plant, property, and equipment$(2,520)$(2,515)
Employee benefits(473)(433)
Gas inventory(66)(53)
Securitized costs(194)(39)
Other(121)(103)
Total deferred income tax liabilities$(3,374)$(3,143)
Total net deferred income tax liabilities$(2,615)$(2,407)
Consumers
Deferred income tax assets
Net regulatory tax liability$305 $318 
Tax loss and credit carryforwards175 145 
Reserves and accruals27 28 
Total deferred income tax assets$507 $491 
Deferred income tax liabilities
Plant, property, and equipment$(2,498)$(2,458)
Employee benefits(459)(423)
Gas inventory(66)(53)
Securitized costs(194)(39)
Other(79)(103)
Total deferred income tax liabilities$(3,296)$(3,076)
Total net deferred income tax liabilities$(2,789)$(2,585)
Deferred tax assets and liabilities are recognized for the estimated future tax effect of temporary differences between the tax basis of assets or liabilities and the reported amounts on CMS Energy’s and Consumers’ consolidated financial statements.
Presented in the following table are the tax loss and credit carryforwards at December 31, 2023:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
State net operating loss carryforwards$69 2030 – 2033
Local net operating loss carryforwards3 2024 – 2040
General business credits356 2035 – 2043
Total tax attributes$428 
Consumers
State net operating loss carryforwards$53 2030 – 2033
General business credits122 2035 – 2043
Total tax attributes$175 
CMS Energy has provided a valuation allowance of $2 million for the local tax loss carryforward. CMS Energy and Consumers expect to utilize fully their tax loss and credit carryforwards for which no valuation allowance has been provided. It is reasonably possible that further adjustments will be made to the valuation allowances within one year.
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Balance at beginning of period$28 $27 $25 
Additions for current-year tax positions1 1 2 
Additions for prior-year tax positions— 1 — 
Reductions for prior-year tax positions(3)(1)— 
Balance at end of period$26 $28 $27 
Consumers
Balance at beginning of period$36 $34 $31 
Additions for current-year tax positions1 3 3 
Additions for prior-year tax positions2 1 — 
Reductions for prior-year tax positions(3)(2)— 
Balance at end of period$36 $36 $34 
If recognized, all of these uncertain tax benefits would affect CMS Energy’s and Consumers’ annual effective tax rates in future years. One uncertain tax benefit relates to the methodology of state apportionment for Consumers’ electricity sales to MISO. The Michigan Tax Tribunal heard oral arguments on this methodology during 2022. A final conclusion is not anticipated in the next 12 months.
CMS Energy and Consumers recognize accrued interest and penalties, where applicable, as part of income tax expense. CMS Energy, including Consumers, recognized no interest or penalties for each of the years ended December 31, 2023, 2022, or 2021.
The amount of income taxes paid is subject to ongoing audits by federal, state, local, and foreign tax authorities, which can result in proposed assessments. CMS Energy’s federal income tax returns for 2020
and subsequent years remain subject to examination by the IRS. CMS Energy’s Michigan Corporate Income Tax returns for 2013-2016 and 2019 and subsequent years remain subject to examination by the State of Michigan. CMS Energy’s and Consumers’ estimate of the potential outcome for any uncertain tax issue is highly judgmental. CMS Energy and Consumers believe that their accrued tax liabilities at December 31, 2023 were adequate for all years.
v3.24.0.1
Regulatory Matters
 12 Months Ended
Dec. 31, 2023
Public Utilities, General Disclosures [Line Items]  
Regulatory Matters Regulatory Matters
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, residential customer advocacy groups, environmental organizations, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. Intervenors also participate in certain FERC matters, including FERC’s regulation of certain wholesale rates that affect Consumers’ power supply costs. 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 and FERC 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.
Regulatory Assets and Liabilities
Consumers is subject to the actions of the MPSC and FERC and therefore prepares its consolidated financial statements in accordance with the provisions of regulatory accounting. A utility must apply regulatory accounting when its rates are designed to recover specific costs of providing regulated services. Under regulatory accounting, Consumers records regulatory assets or liabilities for certain transactions that would have been treated as expense or revenue by non‑regulated businesses.
Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets:
In Millions
December 3120232022
Regulatory assets
Current
2022 PSCR underrecovery1
$126 $— 
Energy waste reduction plan incentive2
54 47 
Retention incentive program3
12 2 
Other11 8 
Total current regulatory assets$203 $57 
Non-current
Costs of coal-fueled electric generating units to be retired1
$1,265 $1,258 
Securitized costs1
778 843 
Postretirement benefits4
741 856 
ARO3
328 281 
2022 PSCR underrecovery1
126 — 
MGP sites1
99 108 
Unamortized loss on reacquired debt1
96 100 
Decommissioning costs3
83 24 
Energy waste reduction plan incentive2
58 55 
Retention incentive program3
27 31 
Postretirement benefits expense deferral mechanism3
24 — 
Energy waste reduction plan3
19 10 
Ludington overhaul contract dispute3
13 — 
Other26 29 
Total non-current regulatory assets$3,683 $3,595 
Total regulatory assets$3,886 $3,652 
Regulatory liabilities
Current
Income taxes, net$49 $48 
Reserve for customer refunds2 47 
Other5 9 
Total current regulatory liabilities$56 $104 
Non-current
Cost of removal$2,545 $2,426 
Income taxes, net1,220 1,267 
Renewable energy grant43 45 
Renewable energy plan29 32 
Energy waste reduction plan25 6 
Postretirement benefits expense deferral mechanism
12 — 
Other20 20 
Total non-current regulatory liabilities$3,894 $3,796 
Total regulatory liabilities$3,950 $3,900 
1The MPSC has provided a specific return on these regulatory assets.
2These regulatory assets have arisen from an alternative revenue program and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return.
3These regulatory assets represent incurred costs for which the MPSC has provided recovery without a return on investment.
4This regulatory asset is included in rate base, thereby providing a return.
Regulatory Assets
2022 PSCR Underrecovery: As a result of rising fuel prices during 2022, Consumers’ power supply costs for 2022 were significantly higher than those projected in its 2022 PSCR plan. At the end of 2022, Consumers had recorded $401 million of under-recovered power supply costs. In February 2023, the MPSC authorized Consumers to recover the 2022 underrecovery amount over three years, providing immediate relief to electric customers.
Energy Waste Reduction Plan Incentive: The energy waste reduction incentive mechanism provides a financial incentive if the energy savings of Consumers’ customers exceed annual targets established by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the incentive as soon as energy savings exceed the annual targets established by the MPSC.
In November 2023, the MPSC approved a settlement agreement authorizing Consumers to collect $55 million during 2024 as an incentive for exceeding its statutory savings targets in 2022. Consumers recognized incentive revenue under this program of $55 million in 2022.
Consumers also exceeded its statutory savings targets in 2023, achieved certain other goals, and will request the MPSC’s approval to collect $58 million, the maximum performance incentive, in the energy waste reduction reconciliation to be filed in May 2024. Consumers recognized incentive revenue under this program of $58 million in 2023.
Retention Incentive Program: To ensure necessary staffing at the D.E. Karn and J.H. Campbell coal-fueled generating units through their retirement, Consumers established retention incentive programs. The MPSC has approved deferred accounting treatment for the retention and severance costs incurred under these programs and has allowed for recovery over three years. For additional details regarding the retention incentive program, see Note 19, Exit Activities and Discontinued Operations.
Costs of Coal-fueled Electric Generating Units to be Retired: In June 2022, the MPSC approved Consumers’ Clean Energy Plan, under which Consumers plans to retire the J.H. Campbell coal-fueled generating units in 2025. Upon the units’ retirement, Consumers will receive regulatory asset treatment to recover their remaining book value, as well as a 9.0‑percent return on equity, through 2040, the units’ original retirement date. Until retirement, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases.
In June 2022, Consumers removed from total plant, property, and equipment an amount of $1.3 billion, representing the projected remaining book value of the electric generating units upon their retirement, and recorded it as a non‑current regulatory asset on its consolidated balance sheets.
Securitized Costs: The MPSC has issued securitization financing orders authorizing Consumers to issue securitization bonds in order to finance the recovery of the remaining book value of three smaller natural gas-fueled electric generating units that Consumers retired in 2015, seven smaller coal-fueled electric
generating units that Consumers retired in 2016, and the D.E. Karn coal-fueled electric generating units that Consumers retired in June 2023. Consumers has removed from plant, property, and equipment and recorded as a regulatory asset the book value of these units. Consumers is amortizing the regulatory asset over the life of the related securitization bonds, which it issued through subsidiaries in 2014 and 2023. For additional details regarding the securitization bonds, see Note 4, Financings and Capitalization—Securitization Bonds.
Postretirement Benefits: As part of the ratemaking process, the MPSC allows Consumers to recover the costs of postretirement benefits. Accordingly, Consumers defers the net impact of actuarial losses and gains, prior service costs and credits, and settlements associated with postretirement benefits as a regulatory asset or liability. The asset or liability will decrease as the deferred items are amortized and recognized as components of net periodic benefit cost. For details about settlements and the amortization periods, see Note 10, Retirement Benefits.
ARO: The recovery of the underlying asset investments and related removal and monitoring costs of recorded AROs is approved by the MPSC in depreciation rate cases. Consumers records a regulatory asset and a regulatory liability for timing differences between the recognition of AROs for financial reporting purposes and the recovery of these costs from customers. The recovery period approximates the useful life of the assets to be removed.
MGP Sites: Consumers is incurring environmental remediation and other response activity costs at 23 former MGP facilities. The MPSC allows Consumers to recover from its natural gas customers over a ten‑year period the costs incurred to remediate the MGP sites. For additional information, see Note 3, Contingencies and Commitments—Consumers Gas Utility Contingencies—Gas Environmental Matters.
Unamortized Loss on Reacquired Debt: Under regulatory accounting, any unamortized discount, premium, or expense related to debt redeemed with the proceeds of new debt is capitalized and amortized over the life of the new debt.
Decommissioning Costs: In Consumers’ electric depreciation and general rate cases, the MPSC has authorized Consumers to remove from depreciation rates the costs of decommissioning the D.E. Karn coal-fueled electric generating units, and instead defer those costs as a regulatory asset to be recovered through 2031. Additionally, ash disposal costs related to Consumers’ retired coal-fueled generating units may be deferred as a regulatory asset and collected over a ten-year period. In its 2022 order approving Consumers’ Clean Energy Plan, the MPSC authorized similar treatment for the decommissioning and ash disposal costs associated with the J.H. Campbell coal-fueled generating units that will be retired in 2025.
Postretirement Benefits Expense Deferral Mechanism: In Consumers’ general rate cases, the MPSC approved a mechanism allowing Consumers to defer the future recovery or refund of pension and OPEB expenses above or below the amounts used to set existing rates, respectively, beginning in January 2023 for the electric utility and October 2023 for the gas utility.
Energy Waste Reduction Plan: The MPSC allows Consumers to collect surcharges from customers to fund its energy waste reduction plan. The amount of spending incurred in excess of surcharges collected is recorded as a regulatory asset and amortized as surcharges are collected from customers over the plan period. The amount of surcharges collected in excess of spending incurred is recorded as a regulatory liability and amortized as costs are incurred.
Ludington Overhaul Contract Dispute: The MPSC has authorized Consumers to defer as a regulatory asset costs associated with repairing or replacing defective work performed by TAES during a major overhaul and upgrade of Ludington. Consumers will defer such costs while litigation with TAES and Toshiba moves forward; such costs will be offset by potential future litigation proceeds received from
TAES or Toshiba. Consumers will have the opportunity to seek appropriate recovery and ratemaking treatment for amounts recorded as a regulatory asset following resolution of the litigation. For additional details on the contract dispute, see Note 3, Contingencies and Commitments—Consumers Electric Utility Contingencies.
Regulatory Liabilities
Income Taxes, Net: Consumers records regulatory assets and liabilities to reflect the difference between deferred income taxes recognized for financial reporting purposes and amounts previously reflected in Consumers’ rates. This net balance will decrease over the remaining life of the related temporary differences and flow through income tax expense. The majority of the net regulatory liability recorded related to income taxes is associated with plant assets that are subject to normalization, which is governed by the Internal Revenue Code, and will be returned to customers over the remaining book life of the related plant assets. For additional details on deferred income taxes, see Note 12, Income Taxes.
Reserve for Customer Refunds: In December 2022, the MPSC issued an order authorizing Consumers to refund $22 million voluntarily to utility customers. During 2023, the MPSC approved Consumers’ requests that the refund take the form of contributions to programs that assist vulnerable electric and gas customers and incremental vegetation management. Additionally, in the settlement of its 2022 electric rate case, Consumers agreed to refund voluntarily $15 million of 2022 revenues to utility customers through a one‑time bill credit and to fund $10 million in contributions to programs that directly assist vulnerable customers with utility bills.
Cost of Removal: The MPSC allows Consumers to collect amounts from customers to fund future asset removal activities. This regulatory liability is reduced as costs are incurred to remove the assets at the end of their useful lives.
Renewable Energy Grant: In 2013, Consumers received a $69 million renewable energy grant for Lake Winds® Energy Park, which began operations in 2012. This grant reduces Consumers’ cost of complying with Michigan’s renewable portfolio standard and, accordingly, reduces the overall renewable energy surcharge to be collected from customers. The regulatory liability recorded for the grant will be amortized over the life of Lake Winds® Energy Park. Consumers presents the amortization as a reduction to maintenance and other operating expenses on its consolidated statements of income.
Renewable Energy Plan: Consumers has collected surcharges to fund its renewable energy plan. Amounts not yet spent under the plan are recorded as a regulatory liability, which is amortized as incremental costs are incurred to operate and depreciate Consumers’ renewable generation facilities and to purchase RECs under renewable energy purchase agreements. Incremental costs represent costs incurred in excess of amounts recovered through the PSCR process.
Consumers Electric and Gas Utility
Meter Investigation: In July 2023, the MPSC issued an order initiating an investigation into Consumers’ handling of malfunctioning meters and meters requiring transition from 3G to 4G technology, estimated billing, and new service installations. The order directed Consumers to provide information on such meters and their replacement, meter-reading performance, communications with customers and the MPSC regarding these issues, and other information; Consumers provided this information in August 2023. As directed in the order, the MPSC Staff analyzed this information and made recommendations, including continued monitoring of Consumers’ performance in these areas and penalties for failure to comply with MPSC service rules.
In October 2023, the MPSC issued a show-cause order directing Consumers to provide further information on consecutive estimated billings, the provision of actual meter readings, and new service installation issues. Consumers cannot predict the outcome of this matter, but it could be subject to regulatory penalties that are not expected to have a material effect on Consumers’ results of operations and Consumers could be subject to increased regulatory scrutiny.
Consumers Electric Utility
2022 Electric Rate Case: In January 2023, the MPSC approved a settlement agreement authorizing an annual rate increase of $155 million, based on a 9.9‑percent authorized return on equity. The MPSC also approved a surcharge for the recovery of $6 million of depreciation, property tax, and interest expense related to distribution investments made in 2021 that exceeded what was authorized in rates in accordance with the December 2020 electric rate order. The new rates became effective January 20, 2023.
Consumers Gas Utility
2022 Gas Rate Case: In December 2022, Consumers filed an application with the MPSC seeking an annual rate increase of $212 million, based on a 10.25‑percent authorized return on equity for the projected 12‑month period ending September 30, 2024. In August 2023, the MPSC approved a settlement agreement authorizing an annual rate increase of $95 million, based on a 9.9‑percent authorized return on equity, effective October 1, 2023. The MPSC also authorized the use of a cost deferral mechanism that will allow Consumers to defer for future recovery or refund pension and OPEB expense above or below the amounts used to set existing rates.
Power Supply Cost Recovery and Gas Cost Recovery
The PSCR and GCR ratemaking processes are designed to allow Consumers to recover all of its power supply and purchased natural gas costs if incurred under reasonable and prudent policies and practices. The MPSC reviews these costs, policies, and practices in annual plan and reconciliation proceedings. Consumers adjusts its PSCR and GCR billing charges monthly, subject to ceiling factor limitations, in order to minimize the underrecovery or overrecovery amount in the annual reconciliations. Underrecoveries represent power supply and purchased natural gas costs that will be recovered from customers; overrecoveries represent previously collected revenues that will be refunded to customers.
Presented in the following table are the assets and liabilities for PSCR and GCR underrecoveries and overrecoveries reflected on Consumers’ consolidated balance sheets:
In Millions
December 3120232022
Assets
PSCR underrecoveries$— $401 
GCR underrecoveries— 8 
Accounts receivable and accrued revenue$— $409 
Liabilities
PSCR overrecoveries$10 $— 
GCR overrecoveries44 — 
Accrued rate refunds$54 $— 
PSCR Plans and Reconciliations: In September 2023, the MPSC issued an order in Consumers’ 2021 PSCR reconciliation, authorizing recovery of $2.1 billion of power costs and authorizing Consumers to reflect in its 2022 PSCR reconciliation the overrecovery of $7 million.
In March 2023, Consumers filed its 2022 PSCR reconciliation, requesting full recovery of $2.5 billion of power costs and authorization to reflect in its 2023 PSCR reconciliation the underrecovery of $404 million. In November 2023, Consumers revised its reconciliation, requesting authorization to reflect in its 2023 PSCR reconciliation the underrecovery of $401 million.
Consumers submitted its 2023 PSCR plan to the MPSC in September 2022 and self-implemented a 2023 PSCR charge in accordance with that plan in January 2023. As a result of significantly higher-than-projected power costs during 2022, Consumers subsequently filed a motion for a temporary order in its 2023 PSCR plan, requesting that the MPSC approve only a third of the 2022 underrecovery amount for recovery in 2023, with the remaining amount to be recovered equally during 2024 and 2025. The MPSC approved Consumers’ motion in February 2023, providing immediate relief to electric customers. The MPSC approved Consumers’ 2023 PSCR plan in August 2023.
GCR Plans and Reconciliations: In March 2023, the MPSC approved a settlement agreement in Consumers’ 2021-2022 GCR reconciliation, authorizing recovery of $0.7 billion of gas costs and authorizing Consumers to reflect in its 2022-2023 GCR reconciliation the underrecovery of $9 million.
In June 2023, Consumers filed its 2022-2023 GCR reconciliation, requesting full recovery of $1.1 billion of gas costs and authorization to reflect in its 2023-2024 GCR reconciliation the underrecovery of $15 million.
Consumers submitted its 2023-2024 GCR plan to the MPSC in December 2022 and self-implemented its proposed 2023-2024 GCR charge in April 2023.
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, residential customer advocacy groups, environmental organizations, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. Intervenors also participate in certain FERC matters, including FERC’s regulation of certain wholesale rates that affect Consumers’ power supply costs. 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 and FERC 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.
Regulatory Assets and Liabilities
Consumers is subject to the actions of the MPSC and FERC and therefore prepares its consolidated financial statements in accordance with the provisions of regulatory accounting. A utility must apply regulatory accounting when its rates are designed to recover specific costs of providing regulated services. Under regulatory accounting, Consumers records regulatory assets or liabilities for certain transactions that would have been treated as expense or revenue by non‑regulated businesses.
Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets:
In Millions
December 3120232022
Regulatory assets
Current
2022 PSCR underrecovery1
$126 $— 
Energy waste reduction plan incentive2
54 47 
Retention incentive program3
12 2 
Other11 8 
Total current regulatory assets$203 $57 
Non-current
Costs of coal-fueled electric generating units to be retired1
$1,265 $1,258 
Securitized costs1
778 843 
Postretirement benefits4
741 856 
ARO3
328 281 
2022 PSCR underrecovery1
126 — 
MGP sites1
99 108 
Unamortized loss on reacquired debt1
96 100 
Decommissioning costs3
83 24 
Energy waste reduction plan incentive2
58 55 
Retention incentive program3
27 31 
Postretirement benefits expense deferral mechanism3
24 — 
Energy waste reduction plan3
19 10 
Ludington overhaul contract dispute3
13 — 
Other26 29 
Total non-current regulatory assets$3,683 $3,595 
Total regulatory assets$3,886 $3,652 
Regulatory liabilities
Current
Income taxes, net$49 $48 
Reserve for customer refunds2 47 
Other5 9 
Total current regulatory liabilities$56 $104 
Non-current
Cost of removal$2,545 $2,426 
Income taxes, net1,220 1,267 
Renewable energy grant43 45 
Renewable energy plan29 32 
Energy waste reduction plan25 6 
Postretirement benefits expense deferral mechanism
12 — 
Other20 20 
Total non-current regulatory liabilities$3,894 $3,796 
Total regulatory liabilities$3,950 $3,900 
1The MPSC has provided a specific return on these regulatory assets.
2These regulatory assets have arisen from an alternative revenue program and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return.
3These regulatory assets represent incurred costs for which the MPSC has provided recovery without a return on investment.
4This regulatory asset is included in rate base, thereby providing a return.
Regulatory Assets
2022 PSCR Underrecovery: As a result of rising fuel prices during 2022, Consumers’ power supply costs for 2022 were significantly higher than those projected in its 2022 PSCR plan. At the end of 2022, Consumers had recorded $401 million of under-recovered power supply costs. In February 2023, the MPSC authorized Consumers to recover the 2022 underrecovery amount over three years, providing immediate relief to electric customers.
Energy Waste Reduction Plan Incentive: The energy waste reduction incentive mechanism provides a financial incentive if the energy savings of Consumers’ customers exceed annual targets established by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the incentive as soon as energy savings exceed the annual targets established by the MPSC.
In November 2023, the MPSC approved a settlement agreement authorizing Consumers to collect $55 million during 2024 as an incentive for exceeding its statutory savings targets in 2022. Consumers recognized incentive revenue under this program of $55 million in 2022.
Consumers also exceeded its statutory savings targets in 2023, achieved certain other goals, and will request the MPSC’s approval to collect $58 million, the maximum performance incentive, in the energy waste reduction reconciliation to be filed in May 2024. Consumers recognized incentive revenue under this program of $58 million in 2023.
Retention Incentive Program: To ensure necessary staffing at the D.E. Karn and J.H. Campbell coal-fueled generating units through their retirement, Consumers established retention incentive programs. The MPSC has approved deferred accounting treatment for the retention and severance costs incurred under these programs and has allowed for recovery over three years. For additional details regarding the retention incentive program, see Note 19, Exit Activities and Discontinued Operations.
Costs of Coal-fueled Electric Generating Units to be Retired: In June 2022, the MPSC approved Consumers’ Clean Energy Plan, under which Consumers plans to retire the J.H. Campbell coal-fueled generating units in 2025. Upon the units’ retirement, Consumers will receive regulatory asset treatment to recover their remaining book value, as well as a 9.0‑percent return on equity, through 2040, the units’ original retirement date. Until retirement, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases.
In June 2022, Consumers removed from total plant, property, and equipment an amount of $1.3 billion, representing the projected remaining book value of the electric generating units upon their retirement, and recorded it as a non‑current regulatory asset on its consolidated balance sheets.
Securitized Costs: The MPSC has issued securitization financing orders authorizing Consumers to issue securitization bonds in order to finance the recovery of the remaining book value of three smaller natural gas-fueled electric generating units that Consumers retired in 2015, seven smaller coal-fueled electric
generating units that Consumers retired in 2016, and the D.E. Karn coal-fueled electric generating units that Consumers retired in June 2023. Consumers has removed from plant, property, and equipment and recorded as a regulatory asset the book value of these units. Consumers is amortizing the regulatory asset over the life of the related securitization bonds, which it issued through subsidiaries in 2014 and 2023. For additional details regarding the securitization bonds, see Note 4, Financings and Capitalization—Securitization Bonds.
Postretirement Benefits: As part of the ratemaking process, the MPSC allows Consumers to recover the costs of postretirement benefits. Accordingly, Consumers defers the net impact of actuarial losses and gains, prior service costs and credits, and settlements associated with postretirement benefits as a regulatory asset or liability. The asset or liability will decrease as the deferred items are amortized and recognized as components of net periodic benefit cost. For details about settlements and the amortization periods, see Note 10, Retirement Benefits.
ARO: The recovery of the underlying asset investments and related removal and monitoring costs of recorded AROs is approved by the MPSC in depreciation rate cases. Consumers records a regulatory asset and a regulatory liability for timing differences between the recognition of AROs for financial reporting purposes and the recovery of these costs from customers. The recovery period approximates the useful life of the assets to be removed.
MGP Sites: Consumers is incurring environmental remediation and other response activity costs at 23 former MGP facilities. The MPSC allows Consumers to recover from its natural gas customers over a ten‑year period the costs incurred to remediate the MGP sites. For additional information, see Note 3, Contingencies and Commitments—Consumers Gas Utility Contingencies—Gas Environmental Matters.
Unamortized Loss on Reacquired Debt: Under regulatory accounting, any unamortized discount, premium, or expense related to debt redeemed with the proceeds of new debt is capitalized and amortized over the life of the new debt.
Decommissioning Costs: In Consumers’ electric depreciation and general rate cases, the MPSC has authorized Consumers to remove from depreciation rates the costs of decommissioning the D.E. Karn coal-fueled electric generating units, and instead defer those costs as a regulatory asset to be recovered through 2031. Additionally, ash disposal costs related to Consumers’ retired coal-fueled generating units may be deferred as a regulatory asset and collected over a ten-year period. In its 2022 order approving Consumers’ Clean Energy Plan, the MPSC authorized similar treatment for the decommissioning and ash disposal costs associated with the J.H. Campbell coal-fueled generating units that will be retired in 2025.
Postretirement Benefits Expense Deferral Mechanism: In Consumers’ general rate cases, the MPSC approved a mechanism allowing Consumers to defer the future recovery or refund of pension and OPEB expenses above or below the amounts used to set existing rates, respectively, beginning in January 2023 for the electric utility and October 2023 for the gas utility.
Energy Waste Reduction Plan: The MPSC allows Consumers to collect surcharges from customers to fund its energy waste reduction plan. The amount of spending incurred in excess of surcharges collected is recorded as a regulatory asset and amortized as surcharges are collected from customers over the plan period. The amount of surcharges collected in excess of spending incurred is recorded as a regulatory liability and amortized as costs are incurred.
Ludington Overhaul Contract Dispute: The MPSC has authorized Consumers to defer as a regulatory asset costs associated with repairing or replacing defective work performed by TAES during a major overhaul and upgrade of Ludington. Consumers will defer such costs while litigation with TAES and Toshiba moves forward; such costs will be offset by potential future litigation proceeds received from
TAES or Toshiba. Consumers will have the opportunity to seek appropriate recovery and ratemaking treatment for amounts recorded as a regulatory asset following resolution of the litigation. For additional details on the contract dispute, see Note 3, Contingencies and Commitments—Consumers Electric Utility Contingencies.
Regulatory Liabilities
Income Taxes, Net: Consumers records regulatory assets and liabilities to reflect the difference between deferred income taxes recognized for financial reporting purposes and amounts previously reflected in Consumers’ rates. This net balance will decrease over the remaining life of the related temporary differences and flow through income tax expense. The majority of the net regulatory liability recorded related to income taxes is associated with plant assets that are subject to normalization, which is governed by the Internal Revenue Code, and will be returned to customers over the remaining book life of the related plant assets. For additional details on deferred income taxes, see Note 12, Income Taxes.
Reserve for Customer Refunds: In December 2022, the MPSC issued an order authorizing Consumers to refund $22 million voluntarily to utility customers. During 2023, the MPSC approved Consumers’ requests that the refund take the form of contributions to programs that assist vulnerable electric and gas customers and incremental vegetation management. Additionally, in the settlement of its 2022 electric rate case, Consumers agreed to refund voluntarily $15 million of 2022 revenues to utility customers through a one‑time bill credit and to fund $10 million in contributions to programs that directly assist vulnerable customers with utility bills.
Cost of Removal: The MPSC allows Consumers to collect amounts from customers to fund future asset removal activities. This regulatory liability is reduced as costs are incurred to remove the assets at the end of their useful lives.
Renewable Energy Grant: In 2013, Consumers received a $69 million renewable energy grant for Lake Winds® Energy Park, which began operations in 2012. This grant reduces Consumers’ cost of complying with Michigan’s renewable portfolio standard and, accordingly, reduces the overall renewable energy surcharge to be collected from customers. The regulatory liability recorded for the grant will be amortized over the life of Lake Winds® Energy Park. Consumers presents the amortization as a reduction to maintenance and other operating expenses on its consolidated statements of income.
Renewable Energy Plan: Consumers has collected surcharges to fund its renewable energy plan. Amounts not yet spent under the plan are recorded as a regulatory liability, which is amortized as incremental costs are incurred to operate and depreciate Consumers’ renewable generation facilities and to purchase RECs under renewable energy purchase agreements. Incremental costs represent costs incurred in excess of amounts recovered through the PSCR process.
Consumers Electric and Gas Utility
Meter Investigation: In July 2023, the MPSC issued an order initiating an investigation into Consumers’ handling of malfunctioning meters and meters requiring transition from 3G to 4G technology, estimated billing, and new service installations. The order directed Consumers to provide information on such meters and their replacement, meter-reading performance, communications with customers and the MPSC regarding these issues, and other information; Consumers provided this information in August 2023. As directed in the order, the MPSC Staff analyzed this information and made recommendations, including continued monitoring of Consumers’ performance in these areas and penalties for failure to comply with MPSC service rules.
In October 2023, the MPSC issued a show-cause order directing Consumers to provide further information on consecutive estimated billings, the provision of actual meter readings, and new service installation issues. Consumers cannot predict the outcome of this matter, but it could be subject to regulatory penalties that are not expected to have a material effect on Consumers’ results of operations and Consumers could be subject to increased regulatory scrutiny.
Consumers Electric Utility
2022 Electric Rate Case: In January 2023, the MPSC approved a settlement agreement authorizing an annual rate increase of $155 million, based on a 9.9‑percent authorized return on equity. The MPSC also approved a surcharge for the recovery of $6 million of depreciation, property tax, and interest expense related to distribution investments made in 2021 that exceeded what was authorized in rates in accordance with the December 2020 electric rate order. The new rates became effective January 20, 2023.
Consumers Gas Utility
2022 Gas Rate Case: In December 2022, Consumers filed an application with the MPSC seeking an annual rate increase of $212 million, based on a 10.25‑percent authorized return on equity for the projected 12‑month period ending September 30, 2024. In August 2023, the MPSC approved a settlement agreement authorizing an annual rate increase of $95 million, based on a 9.9‑percent authorized return on equity, effective October 1, 2023. The MPSC also authorized the use of a cost deferral mechanism that will allow Consumers to defer for future recovery or refund pension and OPEB expense above or below the amounts used to set existing rates.
Power Supply Cost Recovery and Gas Cost Recovery
The PSCR and GCR ratemaking processes are designed to allow Consumers to recover all of its power supply and purchased natural gas costs if incurred under reasonable and prudent policies and practices. The MPSC reviews these costs, policies, and practices in annual plan and reconciliation proceedings. Consumers adjusts its PSCR and GCR billing charges monthly, subject to ceiling factor limitations, in order to minimize the underrecovery or overrecovery amount in the annual reconciliations. Underrecoveries represent power supply and purchased natural gas costs that will be recovered from customers; overrecoveries represent previously collected revenues that will be refunded to customers.
Presented in the following table are the assets and liabilities for PSCR and GCR underrecoveries and overrecoveries reflected on Consumers’ consolidated balance sheets:
In Millions
December 3120232022
Assets
PSCR underrecoveries$— $401 
GCR underrecoveries— 8 
Accounts receivable and accrued revenue$— $409 
Liabilities
PSCR overrecoveries$10 $— 
GCR overrecoveries44 — 
Accrued rate refunds$54 $— 
PSCR Plans and Reconciliations: In September 2023, the MPSC issued an order in Consumers’ 2021 PSCR reconciliation, authorizing recovery of $2.1 billion of power costs and authorizing Consumers to reflect in its 2022 PSCR reconciliation the overrecovery of $7 million.
In March 2023, Consumers filed its 2022 PSCR reconciliation, requesting full recovery of $2.5 billion of power costs and authorization to reflect in its 2023 PSCR reconciliation the underrecovery of $404 million. In November 2023, Consumers revised its reconciliation, requesting authorization to reflect in its 2023 PSCR reconciliation the underrecovery of $401 million.
Consumers submitted its 2023 PSCR plan to the MPSC in September 2022 and self-implemented a 2023 PSCR charge in accordance with that plan in January 2023. As a result of significantly higher-than-projected power costs during 2022, Consumers subsequently filed a motion for a temporary order in its 2023 PSCR plan, requesting that the MPSC approve only a third of the 2022 underrecovery amount for recovery in 2023, with the remaining amount to be recovered equally during 2024 and 2025. The MPSC approved Consumers’ motion in February 2023, providing immediate relief to electric customers. The MPSC approved Consumers’ 2023 PSCR plan in August 2023.
GCR Plans and Reconciliations: In March 2023, the MPSC approved a settlement agreement in Consumers’ 2021-2022 GCR reconciliation, authorizing recovery of $0.7 billion of gas costs and authorizing Consumers to reflect in its 2022-2023 GCR reconciliation the underrecovery of $9 million.
In June 2023, Consumers filed its 2022-2023 GCR reconciliation, requesting full recovery of $1.1 billion of gas costs and authorization to reflect in its 2023-2024 GCR reconciliation the underrecovery of $15 million.
Consumers submitted its 2023-2024 GCR plan to the MPSC in December 2022 and self-implemented its proposed 2023-2024 GCR charge in April 2023.
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Contingencies and Commitments
 12 Months Ended
Dec. 31, 2023
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 stating 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 establishing 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 is valid through 2025.
At December 31, 2023, 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 $57 million. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs in each of the next five years:
In Millions
20242025202620272028
CMS Energy
Long-term leachate disposal and operating and maintenance costs$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 its liability for NREPA sites for which it can estimate a range of loss to be between $2 million and $4 million. At December 31, 2023, 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 had 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 asked to participate in the removal action plan, including Consumers, 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 its share of the total liability for known CERCLA sites to 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 December 31, 2023, 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 Overhaul Contract Dispute: Consumers and DTE Electric, co-owners of Ludington, are parties to a 2010 engineering, procurement, and construction agreement with TAES, under which TAES contracted to perform a major overhaul and upgrade of Ludington. The overhauled Ludington units are operational, but TAES’ work has been defective and non‑conforming. Consumers and DTE Electric have demanded that TAES provide a comprehensive plan to resolve those matters, including adherence to its warranty commitments and other contractual obligations. Consumers and DTE Electric have taken extensive efforts to resolve these issues with TAES, including a formal demand to TAES’ parent, Toshiba, under a parent guaranty it provided. TAES has not provided a comprehensive plan or otherwise met its performance obligations.
In order to enforce the contract, Consumers and DTE Electric filed a complaint against TAES and Toshiba in the U.S. District Court for the Eastern District of Michigan in April 2022. In June 2022, TAES and Toshiba filed a motion to dismiss the complaint, along with an answer and counterclaims seeking approximately $15 million in damages related to payments allegedly owed under the parties’ contract. As a co-owner of Ludington, Consumers would be liable for 51 percent of any such damages, if liability and damages were proven. In September 2022, the court denied the motion to dismiss filed by TAES and Toshiba. The parties are engaged in ongoing litigation, including discovery, pursuant to a court-ordered schedule. Consumers believes the counterclaims filed by TAES and Toshiba are without merit, but cannot predict the financial impact or outcome of this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity.
Toshiba has announced that, through a common stock purchase, TBJH became the majority shareholder and new parent company of Toshiba. TBJH is a subsidiary of a Japanese private equity firm. Consumers and DTE Electric continue to monitor this development, but do not believe that this affects their rights under the parent guaranty provided by Toshiba.
In May 2023, the MPSC approved Consumers’ and DTE Electric’s jointly-filed request for authority to defer as a regulatory asset the costs associated with repairing or replacing the defective work performed by TAES while the litigation with TAES and Toshiba moves forward; such costs will be offset by potential future litigation proceeds received from TAES or Toshiba. Consumers and DTE Electric will have the opportunity to seek appropriate recovery and ratemaking treatment for amounts recorded as a regulatory asset following resolution of the litigation, but cannot predict the financial impact or outcome of such proceedings.
J.H. Campbell 3 Plant Retirement Contract Dispute: In May 2022, Consumers filed a complaint against Wolverine Power in the Ottawa County Circuit Court and requested a ruling that Consumers has sole authority to decide to retire the J.H. Campbell 3 coal-fueled generating unit under the unit’s Joint Ownership and Operating Agreement. In July 2022, Wolverine Power filed an answer, affirmative defenses, and a counterclaim seeking approximately $37 million in damages allegedly caused by Consumers’ decision to retire the unit before the end of its useful life. In October 2022, the state circuit court judge found that Consumers may, in its sole discretion, retire the J.H. Campbell 3 coal-fueled generating unit, provided that Consumers continues to operate and make necessary improvements to the unit while the litigation concerning Wolverine Power’s claim for damages is pending. In May 2023, the circuit court judge issued an order granting Consumers’ Motion for Clarification confirming that Consumers may continue to operate and invest in J.H. Campbell 3 consistent with the May 2025 retirement date. Consumers believes Wolverine Power’s claim has no merit, but cannot predict the final impact or outcome on this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, 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 December 31, 2023, Consumers had a recorded liability of $62 million for its remaining obligations for these sites. Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years:
In Millions
20242025202620272028
Consumers
Remediation and other response activity costs$2 $1 $7 $10 $25 
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 December 31, 2023, Consumers had a regulatory asset of $99 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 $1 million. At December 31, 2023, 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.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2023:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousindefinite$304 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite153 1 
Guarantee3
2011indefinite30 — 
Consumers
Guarantee3
2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in NWO Holdco, Aviator Wind, and Newport Solar Holdings to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. 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. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy 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 NorthStar Clean Energy’s ownership interest in NWO Holdco, Aviator Wind, and Newport Solar Holdings, see Note 18, 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. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim.
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. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities and those disclosed in the table to be remote.
Other Contingencies
In addition to the matters disclosed in this Note and Note 2, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity.
Contractual Commitments
Purchase Obligations: Purchase obligations arise from long-term contracts for the purchase of commodities and related services, and construction and service agreements. The commodities and related services include long-term PPAs, natural gas and associated transportation, and coal and associated transportation. Related-party PPAs are between Consumers and certain affiliates of NorthStar Clean
Energy. Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2023 for each of the periods shown:
In Millions
Payments Due
Total20242025202620272028Beyond 2028
CMS Energy, including Consumers
Total PPAs$7,204 $711 $792 $783 $787 $702 $3,429 
Other3,491 1,720 885 301 207 150 228 
Total purchase obligations$10,695 $2,431 $1,677 $1,084 $994 $852 $3,657 
Consumers
PPAs
MCV PPA$2,506 $342 $402 $416 $410 $371 $565 
Related-party PPAs206 60 44 30 31 14 27 
Other PPAs4,492 309 346 337 346 317 2,837 
Total PPAs$7,204 $711 $792 $783 $787 $702 $3,429 
Other2,802 1,615 648 266 168 82 23 
Total purchase obligations$10,006 $2,326 $1,440 $1,049 $955 $784 $3,452 
MCV PPA: Consumers has a PPA with the MCV Partnership giving Consumers the right to purchase up to 1,240 MW of capacity and energy produced by the MCV Facility through May 2030. The MCV PPA provides for:
•a capacity charge of $10.14 per MWh of available capacity through March 2025 and $5.00 per MWh of available capacity from March 2025 through the termination date of the PPA
•a fixed energy charge of $6.30 per MWh for on-peak hours and $6.00 for off-peak hours
•a variable energy charge based on the MCV Partnership’s cost of production for energy delivered to Consumers
•a $5 million annual contribution by the MCV Partnership to a renewable resources program through March 2025
Capacity and energy charges under the MCV PPA were $340 million in 2023, $519 million in 2022, and $348 million in 2021.
Other PPAs: Consumers has PPAs expiring through 2048 with various counterparties. The majority of the PPAs have capacity and energy charges for delivered energy. Capacity and energy charges under these PPAs were $498 million in 2023, $510 million in 2022, and $338 million in 2021. In addition, CMS Energy and Consumers account for several of their PPAs as leases. See Note 8, Leases for more information about CMS Energy’s and Consumers’ lease obligations.
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 stating 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 establishing 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 is valid through 2025.
At December 31, 2023, 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 $57 million. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs in each of the next five years:
In Millions
20242025202620272028
CMS Energy
Long-term leachate disposal and operating and maintenance costs$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 its liability for NREPA sites for which it can estimate a range of loss to be between $2 million and $4 million. At December 31, 2023, 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 had 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 asked to participate in the removal action plan, including Consumers, 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 its share of the total liability for known CERCLA sites to 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 December 31, 2023, 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 Overhaul Contract Dispute: Consumers and DTE Electric, co-owners of Ludington, are parties to a 2010 engineering, procurement, and construction agreement with TAES, under which TAES contracted to perform a major overhaul and upgrade of Ludington. The overhauled Ludington units are operational, but TAES’ work has been defective and non‑conforming. Consumers and DTE Electric have demanded that TAES provide a comprehensive plan to resolve those matters, including adherence to its warranty commitments and other contractual obligations. Consumers and DTE Electric have taken extensive efforts to resolve these issues with TAES, including a formal demand to TAES’ parent, Toshiba, under a parent guaranty it provided. TAES has not provided a comprehensive plan or otherwise met its performance obligations.
In order to enforce the contract, Consumers and DTE Electric filed a complaint against TAES and Toshiba in the U.S. District Court for the Eastern District of Michigan in April 2022. In June 2022, TAES and Toshiba filed a motion to dismiss the complaint, along with an answer and counterclaims seeking approximately $15 million in damages related to payments allegedly owed under the parties’ contract. As a co-owner of Ludington, Consumers would be liable for 51 percent of any such damages, if liability and damages were proven. In September 2022, the court denied the motion to dismiss filed by TAES and Toshiba. The parties are engaged in ongoing litigation, including discovery, pursuant to a court-ordered schedule. Consumers believes the counterclaims filed by TAES and Toshiba are without merit, but cannot predict the financial impact or outcome of this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity.
Toshiba has announced that, through a common stock purchase, TBJH became the majority shareholder and new parent company of Toshiba. TBJH is a subsidiary of a Japanese private equity firm. Consumers and DTE Electric continue to monitor this development, but do not believe that this affects their rights under the parent guaranty provided by Toshiba.
In May 2023, the MPSC approved Consumers’ and DTE Electric’s jointly-filed request for authority to defer as a regulatory asset the costs associated with repairing or replacing the defective work performed by TAES while the litigation with TAES and Toshiba moves forward; such costs will be offset by potential future litigation proceeds received from TAES or Toshiba. Consumers and DTE Electric will have the opportunity to seek appropriate recovery and ratemaking treatment for amounts recorded as a regulatory asset following resolution of the litigation, but cannot predict the financial impact or outcome of such proceedings.
J.H. Campbell 3 Plant Retirement Contract Dispute: In May 2022, Consumers filed a complaint against Wolverine Power in the Ottawa County Circuit Court and requested a ruling that Consumers has sole authority to decide to retire the J.H. Campbell 3 coal-fueled generating unit under the unit’s Joint Ownership and Operating Agreement. In July 2022, Wolverine Power filed an answer, affirmative defenses, and a counterclaim seeking approximately $37 million in damages allegedly caused by Consumers’ decision to retire the unit before the end of its useful life. In October 2022, the state circuit court judge found that Consumers may, in its sole discretion, retire the J.H. Campbell 3 coal-fueled generating unit, provided that Consumers continues to operate and make necessary improvements to the unit while the litigation concerning Wolverine Power’s claim for damages is pending. In May 2023, the circuit court judge issued an order granting Consumers’ Motion for Clarification confirming that Consumers may continue to operate and invest in J.H. Campbell 3 consistent with the May 2025 retirement date. Consumers believes Wolverine Power’s claim has no merit, but cannot predict the final impact or outcome on this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, 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 December 31, 2023, Consumers had a recorded liability of $62 million for its remaining obligations for these sites. Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years:
In Millions
20242025202620272028
Consumers
Remediation and other response activity costs$2 $1 $7 $10 $25 
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 December 31, 2023, Consumers had a regulatory asset of $99 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 $1 million. At December 31, 2023, 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.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2023:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousindefinite$304 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite153 1 
Guarantee3
2011indefinite30 — 
Consumers
Guarantee3
2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in NWO Holdco, Aviator Wind, and Newport Solar Holdings to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. 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. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy 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 NorthStar Clean Energy’s ownership interest in NWO Holdco, Aviator Wind, and Newport Solar Holdings, see Note 18, 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. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim.
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. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities and those disclosed in the table to be remote.
Other Contingencies
In addition to the matters disclosed in this Note and Note 2, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity.
Contractual Commitments
Purchase Obligations: Purchase obligations arise from long-term contracts for the purchase of commodities and related services, and construction and service agreements. The commodities and related services include long-term PPAs, natural gas and associated transportation, and coal and associated transportation. Related-party PPAs are between Consumers and certain affiliates of NorthStar Clean
Energy. Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2023 for each of the periods shown:
In Millions
Payments Due
Total20242025202620272028Beyond 2028
CMS Energy, including Consumers
Total PPAs$7,204 $711 $792 $783 $787 $702 $3,429 
Other3,491 1,720 885 301 207 150 228 
Total purchase obligations$10,695 $2,431 $1,677 $1,084 $994 $852 $3,657 
Consumers
PPAs
MCV PPA$2,506 $342 $402 $416 $410 $371 $565 
Related-party PPAs206 60 44 30 31 14 27 
Other PPAs4,492 309 346 337 346 317 2,837 
Total PPAs$7,204 $711 $792 $783 $787 $702 $3,429 
Other2,802 1,615 648 266 168 82 23 
Total purchase obligations$10,006 $2,326 $1,440 $1,049 $955 $784 $3,452 
MCV PPA: Consumers has a PPA with the MCV Partnership giving Consumers the right to purchase up to 1,240 MW of capacity and energy produced by the MCV Facility through May 2030. The MCV PPA provides for:
•a capacity charge of $10.14 per MWh of available capacity through March 2025 and $5.00 per MWh of available capacity from March 2025 through the termination date of the PPA
•a fixed energy charge of $6.30 per MWh for on-peak hours and $6.00 for off-peak hours
•a variable energy charge based on the MCV Partnership’s cost of production for energy delivered to Consumers
•a $5 million annual contribution by the MCV Partnership to a renewable resources program through March 2025
Capacity and energy charges under the MCV PPA were $340 million in 2023, $519 million in 2022, and $348 million in 2021.
Other PPAs: Consumers has PPAs expiring through 2048 with various counterparties. The majority of the PPAs have capacity and energy charges for delivered energy. Capacity and energy charges under these PPAs were $498 million in 2023, $510 million in 2022, and $338 million in 2021. In addition, CMS Energy and Consumers account for several of their PPAs as leases. See Note 8, Leases for more information about CMS Energy’s and Consumers’ lease obligations.
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Financings and Capitalization
 12 Months Ended
Dec. 31, 2023
Debt Instrument [Line Items]  
Financings and Capitalization Financings and Capitalization
Presented in the following table is CMS Energy’s long-term debt at December 31:
In Millions
Interest Rate
(%)		Maturity20232022
CMS Energy, including Consumers
CMS Energy, parent only
Senior notes3.875 2024$250 $250 
3.600 2025250 250 
3.000 2026300 300 
2.950 2027275 275 
3.450 2027350 350 
4.700 2043250 250 
4.875 2044300 300 
$1,975 $1,975 
Convertible senior notes3.375 2028800 — 
$800 $— 
Junior subordinated notes1
4.750 
2
2050500 500 
3.750 
3
2050400 400 
5.625 2078200 200 
5.875 2078280 280 
5.875 2079630 630 
$2,010 $2,010 
Total CMS Energy, parent only$4,785 $3,985 
CMS Energy subsidiaries
Consumers10,863 $10,277 
NorthStar Clean Energy, including subsidiaries
Term loan facilityvariable2023— 100 
Total principal amount outstanding$15,648 $14,362 
Current amounts(975)(1,090)
Unamortized discounts(30)(30)
Unamortized issuance costs(135)(120)
Total long-term debt$14,508 $13,122 
1These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.
2On June 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 4.116 percent.
3On December 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five‑year treasury rate plus 2.900 percent.
Presented in the following table is Consumers’ long-term debt at December 31:
In Millions
Interest Rate
(%)		Maturity20232022
Consumers
First mortgage bonds
0.350 2023$— $300 
3.375 2023— 325 
3.125 2024250 250 
3.190 202452 52 
5.240 2026115 — 
3.680 2027100 100 
3.390 202735 35 
4.650 2028425 — 
3.800 2028300 300 
4.900 2029500 — 
5.070 202950 — 
5.170 203295 — 
3.600 2032350 350 
3.180 2032100 100 
4.625 2033700 — 
5.800 2035175 175 
5.380 2037140 — 
3.520 2037335 335 
4.010 2038215 215 
6.170 204050 50 
4.970 204050 50 
4.310 2042263 263 
3.950 2043425 425 
4.100 2045250 250 
3.250 2046450 450 
3.950 2047350 350 
4.050 2048550 550 
4.350 2049550 550 
3.750 2050300 300 
3.100 2050550 550 
3.500 2051575 575 
2.650 2052300 300 
4.200 2052450 450 
3.860 205250 50 
4.280 2057185 185 
2.500 2060525 525 
4.350 2064250 250 
variable
1
206976 76 
variable
1
2070134 134 
variable
1
2070127 127 
In Millions
Interest Rate
(%)		Maturity20232022
$10,397 $8,997 
Tax-exempt revenue bonds0.875 
2
203535 35 
1.800 
3
204975 75 
$110 $110 
2014 Securitization bonds3.421 
4
2025-2029
5
$141 $170 
2023 Securitization bonds5.342 
6
2028-2031
5
646 — 
$787 $170 
Term loan facilityvariable2024— 1,000 
Total principal amount outstanding$11,294 $10,277 
Current amounts(725)(991)
Long-term debt – related parties7 principal amount outstanding
2050-2060(431)— 
Unamortized discounts(28)(27)
Unamortized issuance costs(73)(67)
Total long-term debt$10,037 $9,192 
1The variable-rate bonds bear interest quarterly at a rate of three-month SOFR minus 0.038 percent, subject to a zero-percent floor. At December 31, 2023, the interest rates were 5.346 percent for bonds due September 2069, 5.329 percent for bonds due May 2070, and 5.368 percent for bonds due October 2070. The interest rate for all variable-rate bonds at December 31, 2022 was zero percent. The holders of these variable-rate bonds may put them to Consumers for redemption on certain dates prior to their stated maturity, including dates within one year of December 31, 2023.
2The interest rate on these tax-exempt revenue bonds will reset on October 8, 2026.
3The interest rate on these tax‑exempt revenue bonds will reset on October 1, 2024.
4The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2014 Securitization Funding, was 3.421 percent at December 31, 2023 and 3.343 percent at December 31, 2022.
5Principal and interest payments are made semiannually.
6The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2023 Securitization Funding, was 5.342 percent at December 31, 2023.
7Long-term debt – related parties reflects Consumers’ outstanding debt held by its parent as a result of CMS Energy’s repurchase of Consumers’ first mortgage bonds.
CMS Energy’s Purchase of Consumers’ First Mortgage Bonds: Presented in the following table is Consumers’ long-term debt—related parties at December 31, 2023:
Principal
(In Millions)
Interest Rate
(%)
First mortgage bonds due 2060$163 2.500 
First mortgage bonds due 2052106 2.650 
First mortgage bonds due 205023 3.750 
First mortgage bonds due 205052 3.100 
First mortgage bonds due 205127 3.500 
First mortgage bonds due 204860 4.050 
Total principal amount outstanding$431 
Unamortized discounts(3)
Unamortized issuance costs(4)
Total long-term debt — related parties$424 
During 2023, CMS Energy purchased these Consumers’ first mortgage bonds for $293 million. On a consolidated basis, CMS Energy’s repurchase of Consumers’ first mortgage bonds was accounted for as a debt extinguishment and resulted in a pre-tax gain of $131 million. Interest expense related to the repurchased bonds was $5 million for the year ended December 31, 2023.
Financings: Presented in the following table is a summary of major long-term debt issuances during 2023:
Principal
(In Millions)		Interest Rate (%)Issuance DateMaturity Date
CMS Energy, parent only
Convertible senior notes$800 3.375 May 2023May 2028
Total CMS Energy, parent only$800 
NorthStar Clean Energy, including subsidiaries
Term loan facility1
$85 variableFebruary 2023November 2023
Total NorthStar Clean Energy, including subsidiaries$85 
Consumers
First mortgage bonds$425 4.650 January 2023March 2028
First mortgage bonds700 4.625 February 2023May 2033
First mortgage bonds115 5.240 May 2023May 2026
First mortgage bonds50 5.070 May 2023May 2029
First mortgage bonds95 5.170 May 2023May 2032
First mortgage bonds140 5.380 May 2023May 2037
First mortgage bonds500 4.900 August 2023February 2029
2023 Securitization bonds2
250 5.550 December 2023March 2028
2023 Securitization bonds2
396 5.210 December 2023September 2031
Total Consumers$2,671 
Total CMS Energy$3,556 
1    In December 2022, a subsidiary of NorthStar Clean Energy entered into a $185 million unsecured term loan credit agreement. Under this credit agreement, a subsidiary of NorthStar Clean Energy borrowed $85 million in 2023.
2    For additional details on the securitization, see Note 2, Regulatory Matters— Securitized Costs.
In January 2024, Consumers issued $600 million of first mortgage bonds that mature in May 2029 and bear interest at a rate of 4.600 percent. The proceeds of the bonds will be used for general corporate purposes.
Issuance of Convertible Senior Notes: In May 2023, CMS Energy issued an aggregate principal amount of $800 million convertible senior notes that bear an interest rate of 3.375 percent and mature in May 2028 unless redeemed, repurchased, or converted earlier. Unamortized debt costs associated with this issuance were $12 million at December 31, 2023. The convertible senior notes rank equal in right of payment to any of CMS Energy’s unsecured indebtedness that is not subordinated. There are no sinking fund requirements for the notes.
Holders of the convertible senior notes may convert their notes at their option in accordance with the conditions outlined in the related indenture. CMS Energy will settle conversions of the notes by paying cash up to the aggregate principal amount of the notes to be converted and paying or delivering, as the case may be, cash, shares of CMS Energy common stock, or a combination of cash and shares of CMS Energy common stock, at its election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the notes being converted. The conversion rate will be subject to adjustment for anti-dilutive events and fundamental change and redemption provisions
as described in the related indenture. At December 31, 2023, the conversion price for the notes was $73.97 per share of common stock.
CMS Energy may redeem for cash all or any portion of the notes, at its option, on or after May 6, 2026 if the last reported sale price of its common stock has been at least 130 percent of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period. Holders of the convertible senior notes may require CMS Energy to repurchase for cash all or any portion of their notes if a fundamental change, as outlined in the related indenture, occurs. In both cases, CMS Energy will redeem or repurchase the notes at a price equal to 100 percent of the principal amount of the notes to be redeemed or repurchased, plus accrued and unpaid interest.
Retirements: Presented in the following table is a summary of major long-term debt retirements during 2023:
Principal
(In Millions)		Interest Rate (%)Retirement DateMaturity Date
NorthStar Clean Energy, including subsidiaries
Term loan facility$185 variableNovember 2023November 2023
Total NorthStar Clean Energy, including subsidiaries$185 
Consumers
Term loan facility$1,000 variableFebruary 2023January 2024
First mortgage bonds300 0.350June 2023June 2023
First mortgage bonds325 3.375August 2023August 2023
Total Consumers$1,625 
In January 2024, CMS Energy retired $250 million of its senior notes bearing an interest rate of 3.875 percent and an original maturity date of March 2024.
Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Its current authorization ends on March 31, 2025. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements.
First Mortgage Bonds: Consumers secures its first mortgage bonds by a mortgage and lien on substantially all of its property. Consumers’ ability to issue first mortgage bonds is restricted by certain provisions in the First Mortgage Bond Indenture and the need for regulatory approvals under federal law. Restrictive issuance provisions in the First Mortgage Bond Indenture include achieving a two‑times interest coverage ratio and having sufficient unfunded net property additions.
Securitization Bonds: Certain regulatory assets held by Consumers’ subsidiaries, Consumers 2014 Securitization Funding and Consumers 2023 Securitization Funding, collateralize Consumers’ securitization bonds. Consumers 2014 Securitization Funding and Consumers 2023 Securitization Funding are distinct subsidiaries. The bondholders of each entity have no recourse to the other’s assets or the assets of Consumers. Consumers collects securitization surcharges to cover the principal and interest on the bonds as well as certain other qualified costs. The surcharges collected by Consumers on behalf of each entity are remitted to that subsidiary’s account and are not available to creditors of Consumers or creditors of Consumers’ affiliates other than the subsidiary that issued the bonds.
Debt Maturities: At December 31, 2023, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20242025202620272028
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$250 $250 $300 $625 $800 
Consumers
725 116 237 263 843 
Total CMS Energy1
$975 $366 $537 $888 $1,643 
Consumers
Long-term debt$725 $116 $237 $263 $843 
Credit Facilities: The following credit facilities with banks were available at December 31, 2023:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
December 14, 20271
$550 $— $24 $526 
September 22, 2024
50 — 50 — 
NorthStar Clean Energy, including subsidiaries
September 25, 20252
$37 $— $37 $— 
Consumers3
December 14, 2027
$1,100 $— $27 $1,073 
November 18, 2025
250 — 48 202 
1There were no borrowings under this facility during the year ended December 31, 2023.
2This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 18, Variable Interest Entities.
3Obligations under these facilities are secured by first mortgage bonds of Consumers. There were no borrowings under these facilities during the year ended December 31, 2023.
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 December 31, 2023, there were $93 million of commercial paper notes outstanding under this program with a weighted-average annual interest rate of 5.609 percent, recorded as current notes payable on the consolidated balance sheets of CMS Energy and Consumers.
In December 2023, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million at an interest rate of the prior month’s average one-month Term SOFR minus 0.100 percent. At December 31, 2023, there were no outstanding borrowings under the agreement.
Consumers’ Supplier Financing Program: Under a supplier financing program, Consumers agrees to pay a bank, acting as its payment agent, the stated amount of confirmed invoices from participating suppliers on the original maturity dates of the invoices. The supplier invoices that have been confirmed as valid under the program require payment in full within 60 days of the invoice date. Consumers does not provide collateral or a guarantee to the bank in support of its payment obligations under the agreement, nor does it pay a fee for the service. Consumers or the bank may terminate the supplier financing program agreement upon 30 days prior written notice to the other party. There were no trade payables outstanding under the program in accounts payable on CMS Energy’s and Consumers’ consolidated balance sheets at December 31, 2023, and less than $1 million at December 31, 2022.
Dividend Restrictions: At December 31, 2023, payment of dividends by CMS Energy on its common stock was limited to $7.3 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at December 31, 2023, Consumers had $2.1 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 year ended December 31, 2023, Consumers paid $695 million in dividends on its common stock to CMS Energy.
Capitalization: The authorized capital stock of CMS Energy consists of:
•350 million shares of CMS Energy Common Stock, par value $0.01 per share
•10 million shares of CMS Energy Preferred Stock, par value $0.01 per share
Issuance of Common Stock: In 2023, CMS Energy entered into an equity offering program under which it may sell shares of its common stock having an aggregate sales price of up to $1 billion in privately negotiated transactions, in “at the market” offerings, or through forward sales transactions. There have been no sales of securities under this program.
In November 2023, CMS Energy partially settled a forward contract, issued under its previous equity offering program, by issuing shares of its common stock at a weighted-average price of $68.05 per share, resulting in net proceeds of $178 million.
Presented in the following table are details of CMS Energy’s forward sales contracts under its equity offering program at December 31, 2023:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialDecember 31, 2023
August 3, 2022December 31, 2024328,207$67.59 $68.37 
August 24, 2022December 31, 20241,677,93869.46 70.91 
August 29, 2022December 31, 20241,783,38868.18 69.54 
Under these contracts, CMS Energy may either settle physically by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or settle net by delivering or receiving
cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock.
The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle or net cash settle the contracts as of December 31, 2023, CMS Energy would not have been required to deliver shares or pay cash. In January 2024, CMS Energy settled the remaining forward sale contracts issued under its previous equity offering program by issuing shares at a weighted average price of $70.31 per share, resulting in net proceeds of $266 million.
Preferred Stock: CMS Energy’s Series C preferred stock is traded on the New York Stock Exchange under the symbol CMS PRC. Depositary shares represent a 1/1000th interest in a share of its Series C preferred stock. The Series C preferred stock has no maturity or mandatory redemption date and is not redeemable at the option of the holders. CMS Energy may, at its option, redeem the Series C preferred stock, in whole or in part, at any time on or after July 15, 2026. The Series C preferred stock ranks senior to CMS Energy’s common stock with respect to dividend rights and distribution rights upon liquidation. Presented in the following table are details of CMS Energy’s Series C preferred stock at December 31, 2023 and 2022:
Depositary Share Par Value Depositary Share Optional Redemption PriceNumber of Depositary Shares AuthorizedNumber of Depositary Shares Outstanding
Cumulative, redeemable perpetual$25 $25 9,200,000 9,200,000 
Preferred Stock of Subsidiary: Consumers’ preferred stock is traded on the New York Stock Exchange under the symbol CMS-PB. Presented in the following table are details of Consumers’ preferred stock at December 31, 2023 and 2022:
Par ValueOptional Redemption PriceNumber of Shares AuthorizedNumber of Shares Outstanding
Cumulative, with no mandatory redemption
$100 $110 7,500,000 373,148 
Consumers Energy Company  
Debt Instrument [Line Items]  
Financings and Capitalization Financings and Capitalization
Presented in the following table is CMS Energy’s long-term debt at December 31:
In Millions
Interest Rate
(%)		Maturity20232022
CMS Energy, including Consumers
CMS Energy, parent only
Senior notes3.875 2024$250 $250 
3.600 2025250 250 
3.000 2026300 300 
2.950 2027275 275 
3.450 2027350 350 
4.700 2043250 250 
4.875 2044300 300 
$1,975 $1,975 
Convertible senior notes3.375 2028800 — 
$800 $— 
Junior subordinated notes1
4.750 
2
2050500 500 
3.750 
3
2050400 400 
5.625 2078200 200 
5.875 2078280 280 
5.875 2079630 630 
$2,010 $2,010 
Total CMS Energy, parent only$4,785 $3,985 
CMS Energy subsidiaries
Consumers10,863 $10,277 
NorthStar Clean Energy, including subsidiaries
Term loan facilityvariable2023— 100 
Total principal amount outstanding$15,648 $14,362 
Current amounts(975)(1,090)
Unamortized discounts(30)(30)
Unamortized issuance costs(135)(120)
Total long-term debt$14,508 $13,122 
1These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.
2On June 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 4.116 percent.
3On December 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five‑year treasury rate plus 2.900 percent.
Presented in the following table is Consumers’ long-term debt at December 31:
In Millions
Interest Rate
(%)		Maturity20232022
Consumers
First mortgage bonds
0.350 2023$— $300 
3.375 2023— 325 
3.125 2024250 250 
3.190 202452 52 
5.240 2026115 — 
3.680 2027100 100 
3.390 202735 35 
4.650 2028425 — 
3.800 2028300 300 
4.900 2029500 — 
5.070 202950 — 
5.170 203295 — 
3.600 2032350 350 
3.180 2032100 100 
4.625 2033700 — 
5.800 2035175 175 
5.380 2037140 — 
3.520 2037335 335 
4.010 2038215 215 
6.170 204050 50 
4.970 204050 50 
4.310 2042263 263 
3.950 2043425 425 
4.100 2045250 250 
3.250 2046450 450 
3.950 2047350 350 
4.050 2048550 550 
4.350 2049550 550 
3.750 2050300 300 
3.100 2050550 550 
3.500 2051575 575 
2.650 2052300 300 
4.200 2052450 450 
3.860 205250 50 
4.280 2057185 185 
2.500 2060525 525 
4.350 2064250 250 
variable
1
206976 76 
variable
1
2070134 134 
variable
1
2070127 127 
In Millions
Interest Rate
(%)		Maturity20232022
$10,397 $8,997 
Tax-exempt revenue bonds0.875 
2
203535 35 
1.800 
3
204975 75 
$110 $110 
2014 Securitization bonds3.421 
4
2025-2029
5
$141 $170 
2023 Securitization bonds5.342 
6
2028-2031
5
646 — 
$787 $170 
Term loan facilityvariable2024— 1,000 
Total principal amount outstanding$11,294 $10,277 
Current amounts(725)(991)
Long-term debt – related parties7 principal amount outstanding
2050-2060(431)— 
Unamortized discounts(28)(27)
Unamortized issuance costs(73)(67)
Total long-term debt$10,037 $9,192 
1The variable-rate bonds bear interest quarterly at a rate of three-month SOFR minus 0.038 percent, subject to a zero-percent floor. At December 31, 2023, the interest rates were 5.346 percent for bonds due September 2069, 5.329 percent for bonds due May 2070, and 5.368 percent for bonds due October 2070. The interest rate for all variable-rate bonds at December 31, 2022 was zero percent. The holders of these variable-rate bonds may put them to Consumers for redemption on certain dates prior to their stated maturity, including dates within one year of December 31, 2023.
2The interest rate on these tax-exempt revenue bonds will reset on October 8, 2026.
3The interest rate on these tax‑exempt revenue bonds will reset on October 1, 2024.
4The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2014 Securitization Funding, was 3.421 percent at December 31, 2023 and 3.343 percent at December 31, 2022.
5Principal and interest payments are made semiannually.
6The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2023 Securitization Funding, was 5.342 percent at December 31, 2023.
7Long-term debt – related parties reflects Consumers’ outstanding debt held by its parent as a result of CMS Energy’s repurchase of Consumers’ first mortgage bonds.
CMS Energy’s Purchase of Consumers’ First Mortgage Bonds: Presented in the following table is Consumers’ long-term debt—related parties at December 31, 2023:
Principal
(In Millions)
Interest Rate
(%)
First mortgage bonds due 2060$163 2.500 
First mortgage bonds due 2052106 2.650 
First mortgage bonds due 205023 3.750 
First mortgage bonds due 205052 3.100 
First mortgage bonds due 205127 3.500 
First mortgage bonds due 204860 4.050 
Total principal amount outstanding$431 
Unamortized discounts(3)
Unamortized issuance costs(4)
Total long-term debt — related parties$424 
During 2023, CMS Energy purchased these Consumers’ first mortgage bonds for $293 million. On a consolidated basis, CMS Energy’s repurchase of Consumers’ first mortgage bonds was accounted for as a debt extinguishment and resulted in a pre-tax gain of $131 million. Interest expense related to the repurchased bonds was $5 million for the year ended December 31, 2023.
Financings: Presented in the following table is a summary of major long-term debt issuances during 2023:
Principal
(In Millions)		Interest Rate (%)Issuance DateMaturity Date
CMS Energy, parent only
Convertible senior notes$800 3.375 May 2023May 2028
Total CMS Energy, parent only$800 
NorthStar Clean Energy, including subsidiaries
Term loan facility1
$85 variableFebruary 2023November 2023
Total NorthStar Clean Energy, including subsidiaries$85 
Consumers
First mortgage bonds$425 4.650 January 2023March 2028
First mortgage bonds700 4.625 February 2023May 2033
First mortgage bonds115 5.240 May 2023May 2026
First mortgage bonds50 5.070 May 2023May 2029
First mortgage bonds95 5.170 May 2023May 2032
First mortgage bonds140 5.380 May 2023May 2037
First mortgage bonds500 4.900 August 2023February 2029
2023 Securitization bonds2
250 5.550 December 2023March 2028
2023 Securitization bonds2
396 5.210 December 2023September 2031
Total Consumers$2,671 
Total CMS Energy$3,556 
1    In December 2022, a subsidiary of NorthStar Clean Energy entered into a $185 million unsecured term loan credit agreement. Under this credit agreement, a subsidiary of NorthStar Clean Energy borrowed $85 million in 2023.
2    For additional details on the securitization, see Note 2, Regulatory Matters— Securitized Costs.
In January 2024, Consumers issued $600 million of first mortgage bonds that mature in May 2029 and bear interest at a rate of 4.600 percent. The proceeds of the bonds will be used for general corporate purposes.
Issuance of Convertible Senior Notes: In May 2023, CMS Energy issued an aggregate principal amount of $800 million convertible senior notes that bear an interest rate of 3.375 percent and mature in May 2028 unless redeemed, repurchased, or converted earlier. Unamortized debt costs associated with this issuance were $12 million at December 31, 2023. The convertible senior notes rank equal in right of payment to any of CMS Energy’s unsecured indebtedness that is not subordinated. There are no sinking fund requirements for the notes.
Holders of the convertible senior notes may convert their notes at their option in accordance with the conditions outlined in the related indenture. CMS Energy will settle conversions of the notes by paying cash up to the aggregate principal amount of the notes to be converted and paying or delivering, as the case may be, cash, shares of CMS Energy common stock, or a combination of cash and shares of CMS Energy common stock, at its election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the notes being converted. The conversion rate will be subject to adjustment for anti-dilutive events and fundamental change and redemption provisions
as described in the related indenture. At December 31, 2023, the conversion price for the notes was $73.97 per share of common stock.
CMS Energy may redeem for cash all or any portion of the notes, at its option, on or after May 6, 2026 if the last reported sale price of its common stock has been at least 130 percent of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period. Holders of the convertible senior notes may require CMS Energy to repurchase for cash all or any portion of their notes if a fundamental change, as outlined in the related indenture, occurs. In both cases, CMS Energy will redeem or repurchase the notes at a price equal to 100 percent of the principal amount of the notes to be redeemed or repurchased, plus accrued and unpaid interest.
Retirements: Presented in the following table is a summary of major long-term debt retirements during 2023:
Principal
(In Millions)		Interest Rate (%)Retirement DateMaturity Date
NorthStar Clean Energy, including subsidiaries
Term loan facility$185 variableNovember 2023November 2023
Total NorthStar Clean Energy, including subsidiaries$185 
Consumers
Term loan facility$1,000 variableFebruary 2023January 2024
First mortgage bonds300 0.350June 2023June 2023
First mortgage bonds325 3.375August 2023August 2023
Total Consumers$1,625 
In January 2024, CMS Energy retired $250 million of its senior notes bearing an interest rate of 3.875 percent and an original maturity date of March 2024.
Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Its current authorization ends on March 31, 2025. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements.
First Mortgage Bonds: Consumers secures its first mortgage bonds by a mortgage and lien on substantially all of its property. Consumers’ ability to issue first mortgage bonds is restricted by certain provisions in the First Mortgage Bond Indenture and the need for regulatory approvals under federal law. Restrictive issuance provisions in the First Mortgage Bond Indenture include achieving a two‑times interest coverage ratio and having sufficient unfunded net property additions.
Securitization Bonds: Certain regulatory assets held by Consumers’ subsidiaries, Consumers 2014 Securitization Funding and Consumers 2023 Securitization Funding, collateralize Consumers’ securitization bonds. Consumers 2014 Securitization Funding and Consumers 2023 Securitization Funding are distinct subsidiaries. The bondholders of each entity have no recourse to the other’s assets or the assets of Consumers. Consumers collects securitization surcharges to cover the principal and interest on the bonds as well as certain other qualified costs. The surcharges collected by Consumers on behalf of each entity are remitted to that subsidiary’s account and are not available to creditors of Consumers or creditors of Consumers’ affiliates other than the subsidiary that issued the bonds.
Debt Maturities: At December 31, 2023, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20242025202620272028
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$250 $250 $300 $625 $800 
Consumers
725 116 237 263 843 
Total CMS Energy1
$975 $366 $537 $888 $1,643 
Consumers
Long-term debt$725 $116 $237 $263 $843 
Credit Facilities: The following credit facilities with banks were available at December 31, 2023:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
December 14, 20271
$550 $— $24 $526 
September 22, 2024
50 — 50 — 
NorthStar Clean Energy, including subsidiaries
September 25, 20252
$37 $— $37 $— 
Consumers3
December 14, 2027
$1,100 $— $27 $1,073 
November 18, 2025
250 — 48 202 
1There were no borrowings under this facility during the year ended December 31, 2023.
2This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 18, Variable Interest Entities.
3Obligations under these facilities are secured by first mortgage bonds of Consumers. There were no borrowings under these facilities during the year ended December 31, 2023.
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 December 31, 2023, there were $93 million of commercial paper notes outstanding under this program with a weighted-average annual interest rate of 5.609 percent, recorded as current notes payable on the consolidated balance sheets of CMS Energy and Consumers.
In December 2023, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million at an interest rate of the prior month’s average one-month Term SOFR minus 0.100 percent. At December 31, 2023, there were no outstanding borrowings under the agreement.
Consumers’ Supplier Financing Program: Under a supplier financing program, Consumers agrees to pay a bank, acting as its payment agent, the stated amount of confirmed invoices from participating suppliers on the original maturity dates of the invoices. The supplier invoices that have been confirmed as valid under the program require payment in full within 60 days of the invoice date. Consumers does not provide collateral or a guarantee to the bank in support of its payment obligations under the agreement, nor does it pay a fee for the service. Consumers or the bank may terminate the supplier financing program agreement upon 30 days prior written notice to the other party. There were no trade payables outstanding under the program in accounts payable on CMS Energy’s and Consumers’ consolidated balance sheets at December 31, 2023, and less than $1 million at December 31, 2022.
Dividend Restrictions: At December 31, 2023, payment of dividends by CMS Energy on its common stock was limited to $7.3 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at December 31, 2023, Consumers had $2.1 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 year ended December 31, 2023, Consumers paid $695 million in dividends on its common stock to CMS Energy.
Capitalization: The authorized capital stock of CMS Energy consists of:
•350 million shares of CMS Energy Common Stock, par value $0.01 per share
•10 million shares of CMS Energy Preferred Stock, par value $0.01 per share
Issuance of Common Stock: In 2023, CMS Energy entered into an equity offering program under which it may sell shares of its common stock having an aggregate sales price of up to $1 billion in privately negotiated transactions, in “at the market” offerings, or through forward sales transactions. There have been no sales of securities under this program.
In November 2023, CMS Energy partially settled a forward contract, issued under its previous equity offering program, by issuing shares of its common stock at a weighted-average price of $68.05 per share, resulting in net proceeds of $178 million.
Presented in the following table are details of CMS Energy’s forward sales contracts under its equity offering program at December 31, 2023:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialDecember 31, 2023
August 3, 2022December 31, 2024328,207$67.59 $68.37 
August 24, 2022December 31, 20241,677,93869.46 70.91 
August 29, 2022December 31, 20241,783,38868.18 69.54 
Under these contracts, CMS Energy may either settle physically by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or settle net by delivering or receiving
cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock.
The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle or net cash settle the contracts as of December 31, 2023, CMS Energy would not have been required to deliver shares or pay cash. In January 2024, CMS Energy settled the remaining forward sale contracts issued under its previous equity offering program by issuing shares at a weighted average price of $70.31 per share, resulting in net proceeds of $266 million.
Preferred Stock: CMS Energy’s Series C preferred stock is traded on the New York Stock Exchange under the symbol CMS PRC. Depositary shares represent a 1/1000th interest in a share of its Series C preferred stock. The Series C preferred stock has no maturity or mandatory redemption date and is not redeemable at the option of the holders. CMS Energy may, at its option, redeem the Series C preferred stock, in whole or in part, at any time on or after July 15, 2026. The Series C preferred stock ranks senior to CMS Energy’s common stock with respect to dividend rights and distribution rights upon liquidation. Presented in the following table are details of CMS Energy’s Series C preferred stock at December 31, 2023 and 2022:
Depositary Share Par Value Depositary Share Optional Redemption PriceNumber of Depositary Shares AuthorizedNumber of Depositary Shares Outstanding
Cumulative, redeemable perpetual$25 $25 9,200,000 9,200,000 
Preferred Stock of Subsidiary: Consumers’ preferred stock is traded on the New York Stock Exchange under the symbol CMS-PB. Presented in the following table are details of Consumers’ preferred stock at December 31, 2023 and 2022:
Par ValueOptional Redemption PriceNumber of Shares AuthorizedNumber of Shares Outstanding
Cumulative, with no mandatory redemption
$100 $110 7,500,000 373,148 
v3.24.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2023
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
December 312023202220232022
Assets1
Cash equivalents$18 $— $— $— 
Restricted cash equivalents21 18 21 17 
Nonqualified deferred compensation plan assets30 24 22 18 
Derivative instruments2 2 2 2 
Total assets$71 $44 $45 $37 
Liabilities1
Nonqualified deferred compensation plan liabilities$30 $24 $22 $18 
Total liabilities$30 $24 $22 $18 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 3.
Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity.
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are bought and sold only at the discretion of plan participants.The assets 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 3.
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
December 312023202220232022
Assets1
Cash equivalents$18 $— $— $— 
Restricted cash equivalents21 18 21 17 
Nonqualified deferred compensation plan assets30 24 22 18 
Derivative instruments2 2 2 2 
Total assets$71 $44 $45 $37 
Liabilities1
Nonqualified deferred compensation plan liabilities$30 $24 $22 $18 
Total liabilities$30 $24 $22 $18 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 3.
Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity.
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are bought and sold only at the discretion of plan participants.The assets 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 3.
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.
v3.24.0.1
Financial Instruments
 12 Months Ended
Dec. 31, 2023
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 5, Fair Value Measurements.
In Millions
December 31, 2023December 31, 2022
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$11 $11 $— $— $11 $14 $14 $— $— $14 
Liabilities
Long-term debt2
15,483 14,305 1,103 11,186 2,016 14,212 12,384 987 8,741 2,656 
Long-term payables3
11 11 — — 11 9 7 — — 7 
Consumers
Assets
Long-term receivables1
$11 $11 $— $— $11 $14 $14 $— $— $14 
Notes receivable – related party4
97 97 — — 97 101 101 — — 101 
Liabilities
Long-term debt5
10,762 9,757 — 7,741 2,016 10,183 8,728 — 6,172 2,556 
Long-term debt – related party424 303 — 303 — — — — — — 
Long-term payables5 5 — — 5 — — — — — 
1Includes current portion of long-term accounts receivable and notes receivable of $6 million at December 31, 2023 and $7 million at December 31, 2022.
2Includes current portion of long-term debt of $975 million at December 31, 2023 and $1,090 million at December 31, 2022.
3Includes current portion of long-term payables of $2 million at December 31, 2022.
4Includes current portion of notes receivable – related party of $7 million at December 31, 2023 and 2022.
5Includes current portion of long-term debt of $725 million at December 31, 2023 and $991 million at December 31, 2022.
Notes receivable – related party represents Consumers’ portion of the DB SERP 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 5, Fair Value Measurements.
In Millions
December 31, 2023December 31, 2022
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$11 $11 $— $— $11 $14 $14 $— $— $14 
Liabilities
Long-term debt2
15,483 14,305 1,103 11,186 2,016 14,212 12,384 987 8,741 2,656 
Long-term payables3
11 11 — — 11 9 7 — — 7 
Consumers
Assets
Long-term receivables1
$11 $11 $— $— $11 $14 $14 $— $— $14 
Notes receivable – related party4
97 97 — — 97 101 101 — — 101 
Liabilities
Long-term debt5
10,762 9,757 — 7,741 2,016 10,183 8,728 — 6,172 2,556 
Long-term debt – related party424 303 — 303 — — — — — — 
Long-term payables5 5 — — 5 — — — — — 
1Includes current portion of long-term accounts receivable and notes receivable of $6 million at December 31, 2023 and $7 million at December 31, 2022.
2Includes current portion of long-term debt of $975 million at December 31, 2023 and $1,090 million at December 31, 2022.
3Includes current portion of long-term payables of $2 million at December 31, 2022.
4Includes current portion of notes receivable – related party of $7 million at December 31, 2023 and 2022.
5Includes current portion of long-term debt of $725 million at December 31, 2023 and $991 million at December 31, 2022.
Notes receivable – related party represents Consumers’ portion of the DB SERP 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.
v3.24.0.1
Plant, Property, and Equipment
 12 Months Ended
Dec. 31, 2023
Public Utility, Property, Plant and Equipment [Line Items]  
Plant, Property, and Equipment Plant, Property, and Equipment
Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment:
In Millions
December 31Estimated
Depreciable
Life in Years		20232022
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 – 125
$31,723 $29,342 
NorthStar Clean Energy
Independent power production1
3 – 40
1,387 1,124 
Assets under finance leases2
24 24 
Other
3 – 5
1 1 
Plant, property, and equipment, gross$33,135 $30,491 
Construction work in progress944 1,182 
Accumulated depreciation and amortization(9,007)(8,960)
Total plant, property, and equipment3
$25,072 $22,713 
Consumers
Plant, property, and equipment, gross
Electric
Generation
15 – 125
$6,511 $5,780 
Distribution
15 – 75
11,339 10,590 
Other
5 – 55
1,355 1,374 
Assets under finance leases2
97 126 
Gas
Distribution
20 – 85
7,452 6,951 
Transmission
17 – 75
2,806 2,440 
Underground storage facilities4
27 – 75
1,295 1,197 
Other
5 – 55
815 835 
Assets under finance leases2
15 20 
Other non-utility property
3 – 51
38 29 
Plant, property, and equipment, gross$31,723 $29,342 
Construction work in progress845 994 
Accumulated depreciation and amortization(8,796)(8,791)
Total plant, property, and equipment2
$23,772 $21,545 
1A portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 8, Leases.
2For information regarding the amortization terms of CMS Energy’s and Consumers’ assets under finance leases, see Note 8, Leases.
3Consumers’ plant additions were $3.1 billion for the year ended December 31, 2023 and $2.3 billion for the year ended December 31, 2022. Consumers’ plant retirements, which include the impact of transfers to held for sale, were $856 million for the year ended December 31, 2023 and $290 million for the year ended December 31, 2022. Consumers plans to retire the J.H. Campbell coal-fueled generating units in 2025. Accordingly, in 2022, Consumers removed from total plant, property, and equipment an amount of $1.3 billion, representing the projected remaining book value of the electric generating units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 2, Regulatory Matters.
4Underground storage includes base natural gas of $26 million at December 31, 2023 and 2022. Base natural gas is not subject to depreciation.
Asset Acquisition: In May 2023, Consumers purchased the Covert Generating Station, a natural gas-fueled generating facility with 1,200 MW of nameplate capacity in Van Buren County, Michigan for $810 million. In August 2023, Consumers paid an additional $2 million as a result of a post-closing adjustment required under the purchase agreement.
Consumers accounted for the purchase as an asset acquisition, allocating the purchase price to the assets acquired and liabilities assumed based on their relative fair value. The original cost of the plant was $665 million and the seller had recognized $225 million of accumulated depreciation. Upon acquisition, Consumers recorded the net book value of $440 million and a plant acquisition adjustment of $370 million, resulting in an increase to plant, property, and equipment of $810 million. The remainder of the purchase price was allocated among various working capital accounts.
Intangible Assets: Included in net plant, property, and equipment are intangible assets. Presented in the following table are details about Consumers’ intangible assets:
In Millions
DescriptionAmortization Life in YearsDecember 31, 2023December 31, 2022
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
Consumers
Software development
3 – 15
$772 $543 $846 $593 
Rights of way
50 – 85
229 64 218 61 
Franchises and consents
5 – 50
16 11 16 10 
Leasehold improvements
various2
11 7 9 6 
Other intangiblesvarious24 15 25 16 
Total$1,052 $640 $1,114 $686 
1Consumers’ intangible asset additions were $80 million for the year ended December 31, 2023 and $116 million for the year ended December 31, 2022. Consumers’ intangible asset retirements were $142 million for the year ended December 31, 2023 and $104 million for the year ended December 31, 2022.
2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.
Capitalization: CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general ratemaking process.
With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability.
Software: CMS Energy and Consumers capitalize the costs to purchase and develop internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware.
AFUDC: Consumers capitalizes AFUDC on regulated major construction projects. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset. Presented in the following table are Consumers’ average AFUDC capitalization rates:
Years Ended December 31202320222021
Electric6.5 %6.2 %6.2 %
Gas5.8 5.6 5.6 
Assets Under Finance Leases: Presented in the following table are further details about changes in CMS Energy’s and Consumers’ assets under finance leases:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Balance at beginning of period$170 $332 
Additions— 44 
Net retirements and other adjustments(34)(206)
Balance at end of period$136 $170 
Consumers
Balance at beginning of period$146 $332 
Additions— 20 
Net retirements and other adjustments(34)(206)
Balance at end of period$112 $146 
Assets under finance leases are presented as gross amounts. CMS Energy and Consumers’ accumulated amortization of assets under finance leases was $64 million at December 31, 2023 and $88 million at December 31, 2022.
Depreciation and Amortization: Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Utility plant assets$8,790 $8,785 
Non-utility plant assets217 175 
Consumers
Utility plant assets$8,790 $8,785 
Non-utility plant assets6 6 
Consumers depreciates utility property on an asset-group basis, in which it applies a single MPSC-approved depreciation rate to the gross investment in a particular class of property within the electric and gas segments. Consumers performs depreciation studies periodically to determine appropriate group lives. Presented in the following table are the composite depreciation rates for Consumers’ segment properties:
Years Ended December 31202320222021
Electric utility property3.8 %3.7 %3.9 %
Gas utility property2.8 2.9 2.9 
Other property7.8 8.9 9.4 
CMS Energy and Consumers record property repairs and minor property replacement as maintenance expense. CMS Energy and Consumers record planned major maintenance activities as operating expense unless the cost represents the acquisition of additional long-lived assets or the replacement of an existing long-lived asset.
Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$1,050 $990 $975 
Amortization expense
Software92 103 108 
Other intangible assets5 5 4 
Securitized regulatory assets33 28 27 
Total depreciation and amortization expense$1,180 $1,126 $1,114 
Consumers
Depreciation expense – plant, property, and equipment$1,007 $952 $938 
Amortization expense
Software92 103 108 
Other intangible assets5 5 4 
Securitized regulatory assets33 28 27 
Total depreciation and amortization expense$1,137 $1,088 $1,077 
Presented in the following table is Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20242025202620272028
Consumers
Intangible asset amortization expense$89 $88 $87 $81 $73 
Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2023:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3 %51.0 %various
Utility plant in service$1,752 $619 $443 
Accumulated provision for depreciation(812)(227)(97)
Plant under construction1 5 11 
Net investment$941 $397 $357 
Consumers includes its share of the direct expenses of the jointly owned plants in operating expenses. Consumers shares operation, maintenance, and other expenses of these jointly owned utility facilities in proportion to each participant’s undivided ownership interest. Consumers is required to provide only its share of financing for the jointly owned utility facilities.
Consumers plans to retire the J.H. Campbell coal-fueled generating units and, in 2022, removed an amount representing the projected remaining book value of the electric generating units upon their retirement from total plant, property, and equipment and recorded it as a regulatory asset on its consolidated balance sheets. For additional details, see Note 2, Regulatory Matters.
Consumers is engaged in ongoing litigation with Wolverine Power related to Consumers’ authority to decide to retire the J.H. Campbell 3 coal-fueled generating unit under the unit’s Joint Ownership and Operating Agreement. For additional details on this dispute, see Note 3, Contingencies and Commitments—J.H. Campbell 3 Plant Retirement Contract Dispute.
Consumers and DTE Electric are engaged in ongoing litigation with TAES and Toshiba related to the 2010 engineering, procurement, and construction agreement with TAES, under which TAES contracted to perform a major overhaul and upgrade of Ludington. For additional details on this dispute, see Note 3, Contingencies and Commitments—Ludington Overhaul Contract Dispute.
Consumers Energy Company  
Public Utility, Property, Plant and Equipment [Line Items]  
Plant, Property, and Equipment Plant, Property, and Equipment
Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment:
In Millions
December 31Estimated
Depreciable
Life in Years		20232022
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 – 125
$31,723 $29,342 
NorthStar Clean Energy
Independent power production1
3 – 40
1,387 1,124 
Assets under finance leases2
24 24 
Other
3 – 5
1 1 
Plant, property, and equipment, gross$33,135 $30,491 
Construction work in progress944 1,182 
Accumulated depreciation and amortization(9,007)(8,960)
Total plant, property, and equipment3
$25,072 $22,713 
Consumers
Plant, property, and equipment, gross
Electric
Generation
15 – 125
$6,511 $5,780 
Distribution
15 – 75
11,339 10,590 
Other
5 – 55
1,355 1,374 
Assets under finance leases2
97 126 
Gas
Distribution
20 – 85
7,452 6,951 
Transmission
17 – 75
2,806 2,440 
Underground storage facilities4
27 – 75
1,295 1,197 
Other
5 – 55
815 835 
Assets under finance leases2
15 20 
Other non-utility property
3 – 51
38 29 
Plant, property, and equipment, gross$31,723 $29,342 
Construction work in progress845 994 
Accumulated depreciation and amortization(8,796)(8,791)
Total plant, property, and equipment2
$23,772 $21,545 
1A portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 8, Leases.
2For information regarding the amortization terms of CMS Energy’s and Consumers’ assets under finance leases, see Note 8, Leases.
3Consumers’ plant additions were $3.1 billion for the year ended December 31, 2023 and $2.3 billion for the year ended December 31, 2022. Consumers’ plant retirements, which include the impact of transfers to held for sale, were $856 million for the year ended December 31, 2023 and $290 million for the year ended December 31, 2022. Consumers plans to retire the J.H. Campbell coal-fueled generating units in 2025. Accordingly, in 2022, Consumers removed from total plant, property, and equipment an amount of $1.3 billion, representing the projected remaining book value of the electric generating units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 2, Regulatory Matters.
4Underground storage includes base natural gas of $26 million at December 31, 2023 and 2022. Base natural gas is not subject to depreciation.
Asset Acquisition: In May 2023, Consumers purchased the Covert Generating Station, a natural gas-fueled generating facility with 1,200 MW of nameplate capacity in Van Buren County, Michigan for $810 million. In August 2023, Consumers paid an additional $2 million as a result of a post-closing adjustment required under the purchase agreement.
Consumers accounted for the purchase as an asset acquisition, allocating the purchase price to the assets acquired and liabilities assumed based on their relative fair value. The original cost of the plant was $665 million and the seller had recognized $225 million of accumulated depreciation. Upon acquisition, Consumers recorded the net book value of $440 million and a plant acquisition adjustment of $370 million, resulting in an increase to plant, property, and equipment of $810 million. The remainder of the purchase price was allocated among various working capital accounts.
Intangible Assets: Included in net plant, property, and equipment are intangible assets. Presented in the following table are details about Consumers’ intangible assets:
In Millions
DescriptionAmortization Life in YearsDecember 31, 2023December 31, 2022
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
Consumers
Software development
3 – 15
$772 $543 $846 $593 
Rights of way
50 – 85
229 64 218 61 
Franchises and consents
5 – 50
16 11 16 10 
Leasehold improvements
various2
11 7 9 6 
Other intangiblesvarious24 15 25 16 
Total$1,052 $640 $1,114 $686 
1Consumers’ intangible asset additions were $80 million for the year ended December 31, 2023 and $116 million for the year ended December 31, 2022. Consumers’ intangible asset retirements were $142 million for the year ended December 31, 2023 and $104 million for the year ended December 31, 2022.
2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.
Capitalization: CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general ratemaking process.
With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability.
Software: CMS Energy and Consumers capitalize the costs to purchase and develop internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware.
AFUDC: Consumers capitalizes AFUDC on regulated major construction projects. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset. Presented in the following table are Consumers’ average AFUDC capitalization rates:
Years Ended December 31202320222021
Electric6.5 %6.2 %6.2 %
Gas5.8 5.6 5.6 
Assets Under Finance Leases: Presented in the following table are further details about changes in CMS Energy’s and Consumers’ assets under finance leases:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Balance at beginning of period$170 $332 
Additions— 44 
Net retirements and other adjustments(34)(206)
Balance at end of period$136 $170 
Consumers
Balance at beginning of period$146 $332 
Additions— 20 
Net retirements and other adjustments(34)(206)
Balance at end of period$112 $146 
Assets under finance leases are presented as gross amounts. CMS Energy and Consumers’ accumulated amortization of assets under finance leases was $64 million at December 31, 2023 and $88 million at December 31, 2022.
Depreciation and Amortization: Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Utility plant assets$8,790 $8,785 
Non-utility plant assets217 175 
Consumers
Utility plant assets$8,790 $8,785 
Non-utility plant assets6 6 
Consumers depreciates utility property on an asset-group basis, in which it applies a single MPSC-approved depreciation rate to the gross investment in a particular class of property within the electric and gas segments. Consumers performs depreciation studies periodically to determine appropriate group lives. Presented in the following table are the composite depreciation rates for Consumers’ segment properties:
Years Ended December 31202320222021
Electric utility property3.8 %3.7 %3.9 %
Gas utility property2.8 2.9 2.9 
Other property7.8 8.9 9.4 
CMS Energy and Consumers record property repairs and minor property replacement as maintenance expense. CMS Energy and Consumers record planned major maintenance activities as operating expense unless the cost represents the acquisition of additional long-lived assets or the replacement of an existing long-lived asset.
Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$1,050 $990 $975 
Amortization expense
Software92 103 108 
Other intangible assets5 5 4 
Securitized regulatory assets33 28 27 
Total depreciation and amortization expense$1,180 $1,126 $1,114 
Consumers
Depreciation expense – plant, property, and equipment$1,007 $952 $938 
Amortization expense
Software92 103 108 
Other intangible assets5 5 4 
Securitized regulatory assets33 28 27 
Total depreciation and amortization expense$1,137 $1,088 $1,077 
Presented in the following table is Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20242025202620272028
Consumers
Intangible asset amortization expense$89 $88 $87 $81 $73 
Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2023:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3 %51.0 %various
Utility plant in service$1,752 $619 $443 
Accumulated provision for depreciation(812)(227)(97)
Plant under construction1 5 11 
Net investment$941 $397 $357 
Consumers includes its share of the direct expenses of the jointly owned plants in operating expenses. Consumers shares operation, maintenance, and other expenses of these jointly owned utility facilities in proportion to each participant’s undivided ownership interest. Consumers is required to provide only its share of financing for the jointly owned utility facilities.
Consumers plans to retire the J.H. Campbell coal-fueled generating units and, in 2022, removed an amount representing the projected remaining book value of the electric generating units upon their retirement from total plant, property, and equipment and recorded it as a regulatory asset on its consolidated balance sheets. For additional details, see Note 2, Regulatory Matters.
Consumers is engaged in ongoing litigation with Wolverine Power related to Consumers’ authority to decide to retire the J.H. Campbell 3 coal-fueled generating unit under the unit’s Joint Ownership and Operating Agreement. For additional details on this dispute, see Note 3, Contingencies and Commitments—J.H. Campbell 3 Plant Retirement Contract Dispute.
Consumers and DTE Electric are engaged in ongoing litigation with TAES and Toshiba related to the 2010 engineering, procurement, and construction agreement with TAES, under which TAES contracted to perform a major overhaul and upgrade of Ludington. For additional details on this dispute, see Note 3, Contingencies and Commitments—Ludington Overhaul Contract Dispute.
v3.24.0.1
Leases
 12 Months Ended
Dec. 31, 2023
Leases [Line Items]  
Leases Leases
Lessee
CMS Energy and Consumers lease various assets from third parties, including coal-carrying railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for several of their PPAs as leases.
CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their consolidated balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and service vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term.
CMS Energy and Consumers include future payments for all renewal options, fair market value extensions, and buyout provisions reasonably certain of exercise in their measurement of lease right-of-use assets and lease liabilities. In addition, certain leases for service vehicles contain end-of-lease adjustment clauses based on proceeds received from the sale or disposition of the vehicles. CMS Energy and Consumers also include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their coal-carrying railcar leases.
Most of Consumers’ PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a finance lease.
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
CMS Energy, including ConsumersConsumers
December 312023202220232022
Operating leases
Right-of-use assets1
$26$31$23$27
Lease liabilities
Current lease liabilities2
4444
Non-current lease liabilities3
22271923
Finance leases
Right-of-use assets71824858
Lease liabilities4
Current lease liabilities5959
Non-current lease liabilities62683945
Weighted-average remaining lease term (in years)
Operating leases19201818
Finance leases19181110
Weighted-average discount rate
Operating leases5.2 %4.0 %5.3 %3.9 %
Finance leases5
5.3 5.2 1.5 1.6 
1CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non‑current assets on their consolidated balance sheets.
2The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.
3The non‑current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non‑current liabilities on their consolidated balance sheets.
4Includes related-party lease liabilities of $24 million, of which less than $1 million was current, at December 31, 2023 and 2022.
5This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.
CMS Energy and Consumers report operating, variable, and short-term lease costs as operating expenses on their consolidated statements of income, except for certain amounts that may be capitalized to other assets. Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Operating lease costs$6 $6 
Finance lease costs
Amortization of right-of-use assets9 12 
Interest on lease liabilities15 14 
Variable lease costs107 93 
Short-term lease costs14 23 
Total lease costs$151 $148 
Consumers
Operating lease costs$5 $6 
Finance lease costs
Amortization of right-of-use assets8 12 
Interest on lease liabilities13 14 
Variable lease costs107 93 
Short-term lease costs14 22 
Total lease costs$147 $147 
Presented in the following table is supplemental cash flow information related to CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$6 $6 
Cash used in operating activities for finance leases15 14 
Cash used in financing activities for finance leases8 13 
Lease liabilities arising from obtaining right-of-use assets
Operating leases1 10 
Finance leases— 36 
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$6 $6 
Cash used in operating activities for finance leases13 14 
Cash used in financing activities for finance leases8 12 
Lease liabilities arising from obtaining right-of-use assets
Operating leases1 10 
Finance leases— 12 
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases:
In Millions
Finance Leases
December 31, 2023Operating LeasesPipelines and PPAsOtherTotal
CMS Energy, including Consumers
2024$5 $13 $6 $19 
20254 13 3 16 
20263 13 4 17 
20272 13 1 14 
20281 13 1 14 
2029 and thereafter30 26 66 92 
Total minimum lease payments$45 $91 $81 $172 
Less discount19 62 43 105 
Present value of minimum lease payments$26 $29 $38 $67 
Consumers
2024$5 $13 $5 $18 
20254 13 2 15 
20262 13 2 15 
20272 13 — 13 
20281 13 — 13 
2029 and thereafter24 26 8 34 
Total minimum lease payments$38 $91 $17 $108 
Less discount15 62 2 64 
Present value of minimum lease payments$23 $29 $15 $44 
Lessor
CMS Energy and Consumers are the lessor under power sales and natural gas delivery agreements that are accounted for as leases.
CMS Energy has power sales agreements that are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. For the year ended December 31, 2023, lease revenue from these power sales agreements was $116 million, which included variable lease payments of $74 million. For the year ended December 31, 2022, lease revenue from these power sales agreements was $240 million, which included variable lease payments of $191 million.
Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases:
In Millions
December 31, 2023
2024$43 
202544 
202618 
Total minimum lease payments$105 
Consumers has a natural gas transportation agreement with a subsidiary of CMS Energy that extends through 2038, related to a pipeline owned by Consumers. This agreement is accounted for as a direct finance lease and will automatically extend annually unless terminated by either party. The effects of the lease are eliminated on CMS Energy’s consolidated financial statements.
Minimum rental payments to be received under Consumers’ direct financing lease are less than $1 million for each of the next five years and $6 million for the years thereafter. The lease receivable was $6 million as of December 31, 2023, which does not include unearned income of $5 million.
Consumers Energy Company  
Leases [Line Items]  
Leases Leases
Lessee
CMS Energy and Consumers lease various assets from third parties, including coal-carrying railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for several of their PPAs as leases.
CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their consolidated balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and service vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term.
CMS Energy and Consumers include future payments for all renewal options, fair market value extensions, and buyout provisions reasonably certain of exercise in their measurement of lease right-of-use assets and lease liabilities. In addition, certain leases for service vehicles contain end-of-lease adjustment clauses based on proceeds received from the sale or disposition of the vehicles. CMS Energy and Consumers also include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their coal-carrying railcar leases.
Most of Consumers’ PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a finance lease.
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
CMS Energy, including ConsumersConsumers
December 312023202220232022
Operating leases
Right-of-use assets1
$26$31$23$27
Lease liabilities
Current lease liabilities2
4444
Non-current lease liabilities3
22271923
Finance leases
Right-of-use assets71824858
Lease liabilities4
Current lease liabilities5959
Non-current lease liabilities62683945
Weighted-average remaining lease term (in years)
Operating leases19201818
Finance leases19181110
Weighted-average discount rate
Operating leases5.2 %4.0 %5.3 %3.9 %
Finance leases5
5.3 5.2 1.5 1.6 
1CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non‑current assets on their consolidated balance sheets.
2The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.
3The non‑current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non‑current liabilities on their consolidated balance sheets.
4Includes related-party lease liabilities of $24 million, of which less than $1 million was current, at December 31, 2023 and 2022.
5This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.
CMS Energy and Consumers report operating, variable, and short-term lease costs as operating expenses on their consolidated statements of income, except for certain amounts that may be capitalized to other assets. Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Operating lease costs$6 $6 
Finance lease costs
Amortization of right-of-use assets9 12 
Interest on lease liabilities15 14 
Variable lease costs107 93 
Short-term lease costs14 23 
Total lease costs$151 $148 
Consumers
Operating lease costs$5 $6 
Finance lease costs
Amortization of right-of-use assets8 12 
Interest on lease liabilities13 14 
Variable lease costs107 93 
Short-term lease costs14 22 
Total lease costs$147 $147 
Presented in the following table is supplemental cash flow information related to CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$6 $6 
Cash used in operating activities for finance leases15 14 
Cash used in financing activities for finance leases8 13 
Lease liabilities arising from obtaining right-of-use assets
Operating leases1 10 
Finance leases— 36 
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$6 $6 
Cash used in operating activities for finance leases13 14 
Cash used in financing activities for finance leases8 12 
Lease liabilities arising from obtaining right-of-use assets
Operating leases1 10 
Finance leases— 12 
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases:
In Millions
Finance Leases
December 31, 2023Operating LeasesPipelines and PPAsOtherTotal
CMS Energy, including Consumers
2024$5 $13 $6 $19 
20254 13 3 16 
20263 13 4 17 
20272 13 1 14 
20281 13 1 14 
2029 and thereafter30 26 66 92 
Total minimum lease payments$45 $91 $81 $172 
Less discount19 62 43 105 
Present value of minimum lease payments$26 $29 $38 $67 
Consumers
2024$5 $13 $5 $18 
20254 13 2 15 
20262 13 2 15 
20272 13 — 13 
20281 13 — 13 
2029 and thereafter24 26 8 34 
Total minimum lease payments$38 $91 $17 $108 
Less discount15 62 2 64 
Present value of minimum lease payments$23 $29 $15 $44 
Lessor
CMS Energy and Consumers are the lessor under power sales and natural gas delivery agreements that are accounted for as leases.
CMS Energy has power sales agreements that are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. For the year ended December 31, 2023, lease revenue from these power sales agreements was $116 million, which included variable lease payments of $74 million. For the year ended December 31, 2022, lease revenue from these power sales agreements was $240 million, which included variable lease payments of $191 million.
Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases:
In Millions
December 31, 2023
2024$43 
202544 
202618 
Total minimum lease payments$105 
Consumers has a natural gas transportation agreement with a subsidiary of CMS Energy that extends through 2038, related to a pipeline owned by Consumers. This agreement is accounted for as a direct finance lease and will automatically extend annually unless terminated by either party. The effects of the lease are eliminated on CMS Energy’s consolidated financial statements.
Minimum rental payments to be received under Consumers’ direct financing lease are less than $1 million for each of the next five years and $6 million for the years thereafter. The lease receivable was $6 million as of December 31, 2023, which does not include unearned income of $5 million.
v3.24.0.1
Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2023
Asset Retirement Obligations [Line Items]  
Asset Retirement Obligations Asset Retirement Obligations
CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities associated with the closure of certain gas wells that have an indeterminate life. CMS Energy and Consumers have not recorded liabilities for assets that have immaterial cumulative disposal costs, such as substation batteries.
CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers.
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
ARO DescriptionIn-Service DateLong-Lived Assets
Closure of coal ash disposal areasvariousGenerating plants coal ash areas
Gas distribution cut, purge, and capvariousGas distribution mains and services
Asbestos abatement1973Electric and gas utility plant
Closure of renewable generation assetsvariousWind and solar generation facilities
Gas wells plug and abandonvariousGas transmission and storage
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2022IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2023
CMS Energy, including Consumers
Consumers$722 $4 $(28)$32 $9 $739 
Renewable generation assets24 7 — 1 — 32 
Total CMS Energy$746 $11 $(28)$33 $9 $771 
Consumers
Coal ash disposal areas$272 $— $(15)$11 $— $268 
Gas distribution cut, purge, and cap287 — (10)14 (1)290 
Asbestos abatement39 — (1)3 10 51 
Renewable generation assets95 4 — 3 — 102 
Gas wells plug and abandon29 — (2)1 — 28 
Total Consumers$722 $4 $(28)$32 $9 $739 
In Millions
Company and ARO DescriptionARO Liability 12/31/2021IncurredSettledAccretion
Cash Flow Revisions1
ARO Liability 12/31/2022
CMS Energy, including Consumers
Consumers$605 $1 $(39)$27 $128 $722 
Renewable generation assets23 — — 1 — 24 
Total CMS Energy$628 $1 $(39)$28 $128 $746 
Consumers
Coal ash disposal areas$157 $— $(20)$7 $128 $272 
Gas distribution cut, purge, and cap282 1 (11)15 — 287 
Asbestos abatement38 — (1)2 — 39 
Renewable generation assets93 — — 2 — 95 
Gas wells plug and abandon35 — (7)1 — 29 
Total Consumers$605 $1 $(39)$27 $128 $722 
1Increase was attributable to a proposed change for closure work at the J.H. Campbell 3 ash disposal landfill and an updated cost estimate for other coal ash disposal areas.
Consumers Energy Company  
Asset Retirement Obligations [Line Items]  
Asset Retirement Obligations Asset Retirement Obligations
CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities associated with the closure of certain gas wells that have an indeterminate life. CMS Energy and Consumers have not recorded liabilities for assets that have immaterial cumulative disposal costs, such as substation batteries.
CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers.
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
ARO DescriptionIn-Service DateLong-Lived Assets
Closure of coal ash disposal areasvariousGenerating plants coal ash areas
Gas distribution cut, purge, and capvariousGas distribution mains and services
Asbestos abatement1973Electric and gas utility plant
Closure of renewable generation assetsvariousWind and solar generation facilities
Gas wells plug and abandonvariousGas transmission and storage
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2022IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2023
CMS Energy, including Consumers
Consumers$722 $4 $(28)$32 $9 $739 
Renewable generation assets24 7 — 1 — 32 
Total CMS Energy$746 $11 $(28)$33 $9 $771 
Consumers
Coal ash disposal areas$272 $— $(15)$11 $— $268 
Gas distribution cut, purge, and cap287 — (10)14 (1)290 
Asbestos abatement39 — (1)3 10 51 
Renewable generation assets95 4 — 3 — 102 
Gas wells plug and abandon29 — (2)1 — 28 
Total Consumers$722 $4 $(28)$32 $9 $739 
In Millions
Company and ARO DescriptionARO Liability 12/31/2021IncurredSettledAccretion
Cash Flow Revisions1
ARO Liability 12/31/2022
CMS Energy, including Consumers
Consumers$605 $1 $(39)$27 $128 $722 
Renewable generation assets23 — — 1 — 24 
Total CMS Energy$628 $1 $(39)$28 $128 $746 
Consumers
Coal ash disposal areas$157 $— $(20)$7 $128 $272 
Gas distribution cut, purge, and cap282 1 (11)15 — 287 
Asbestos abatement38 — (1)2 — 39 
Renewable generation assets93 — — 2 — 95 
Gas wells plug and abandon35 — (7)1 — 29 
Total Consumers$605 $1 $(39)$27 $128 $722 
1Increase was attributable to a proposed change for closure work at the J.H. Campbell 3 ash disposal landfill and an updated cost estimate for other coal ash disposal areas.
v3.24.0.1
Retirement Benefits
 12 Months Ended
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement Benefits
Benefit Plans: CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. These plans include:
•non‑contributory, qualified DB Pension Plans (closed to new non‑union participants as of July 1, 2003 and closed to new union participants as of September 1, 2005)
•a non‑contributory, qualified DCCP for employees hired on or after July 1, 2003
•benefits to certain management employees under a non‑contributory, nonqualified DB SERP (closed to new participants as of March 31, 2006)
•a non‑contributory, nonqualified DC SERP for certain management employees hired or promoted on or after April 1, 2006
•a contributory, qualified defined contribution 401(k) plan
•health care and life insurance benefits under an OPEB Plan
DB Pension Plans: Participants in the pension plans include present and former employees of CMS Energy and Consumers, including certain present and former affiliates and subsidiaries. Pension plan trust assets are not distinguishable by company. Effective December 31, 2017, CMS Energy’s and Consumers’ then-existing pension plan was amended to include only retired and former employees already covered; this amended plan is referred to as DB Pension Plan B. Also effective December 31, 2017, active employees were moved to a newly created pension plan, referred to as DB Pension Plan A, whose benefits mirror those provided under DB Pension Plan B. Maintaining separate plans for the two groups allows CMS Energy and Consumers to employ a more targeted investment strategy and provides additional opportunities to mitigate risk and volatility.
DCCP: CMS Energy and Consumers provide an employer contribution to the DCCP 401(k) plan for employees hired on or after July 1, 2003. The contribution ranges from five percent to ten percent of base pay, depending on years of service and employee class. Employees are not required to contribute in order to receive the plan’s employer contribution. DCCP expense for CMS Energy, including Consumers, was $51 million for the year ended December 31, 2023, $48 million for the year ended December 31, 2022, and $41 million for the year ended December 31, 2021. DCCP expense for Consumers was $50 million for the year ended December 31, 2023, $48 million for the year ended December 31, 2022, and $41 million for the year ended December 31, 2021.
DB SERP: The DB SERP is a nonqualified plan as defined by the Internal Revenue Code. DB SERP benefits are paid from a rabbi trust established in 1988. The trust assets are not considered plan assets under ASC 715. DB SERP rabbi trust earnings are taxable. Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Trust assets$132 $137 
ABO115 118 
Consumers
Trust assets$98 $101 
ABO83 85 
Neither CMS Energy nor Consumers made any contributions to the DB SERP in 2023 or 2022.
DC SERP: On April 1, 2006, CMS Energy and Consumers implemented a DC SERP and froze further new participation in the DB SERP. The DC SERP provides participants benefits ranging from five percent to 15 percent of total compensation. The DC SERP requires a minimum of five years of participation before vesting. CMS Energy’s and Consumers’ contributions to the plan, if any, are placed in a grantor trust. For CMS Energy and Consumers, trust assets were $14 million at December 31, 2023 and $12 million at December 31, 2022. DC SERP assets are included in other non‑current assets on CMS Energy’s and Consumers’ consolidated balance sheets. CMS Energy’s and Consumers’ DC SERP expense was $1 million for the years ended December 31, 2023 and 2022, and $2 million for the year ended December 31, 2021.
401(k) Plan: The 401(k) plan employer match equals four to six percent of employee eligible contributions based on an employee’s wages and class. The total 401(k) plan cost for CMS Energy, including Consumers, was $41 million for the year ended December 31, 2023, $44 million for the year ended December 31, 2022, and $31 million for the year ended December 31, 2021. The total 401(k) plan cost for Consumers was $40 million for the year ended December 31, 2023, $43 million for the year ended December 31, 2022, and $31 million for the year ended December 31, 2021.
OPEB Plan: Participants in the OPEB Plan include all regular full-time employees covered by the employee health care plan on the day before retirement from either CMS Energy or Consumers at age 55 or older with at least 10 full years of applicable continuous service. Regular full-time employees who qualify for disability retirement under the DB Pension Plans or are disabled and covered by the DCCP and who have 15 years of applicable continuous service may also participate in the OPEB Plan. Retiree health care costs were based on the assumption that costs would increase 8.00 percent in 2024 and 6.50 percent in 2023 for those under 65 and would increase 8.50 percent in 2024 and 6.75 percent in 2023 for those over 65. The rate of increase was assumed to decline to 4.75 percent by 2032 and thereafter for all retirees.
Assumptions: Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefit plans to determine benefit obligations and net periodic benefit cost:
December 31202320222021
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A5.05 %5.24 %3.02 %
DB Pension Plan B4.95 5.14 2.79 
DB SERP4.94 5.13 2.78 
OPEB Plan5.02 5.21 2.99 
Rate of compensation increase
DB Pension Plan A3.60 3.60 3.60 
DB SERP3
— 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,4
DB Pension Plan A5.27 %3.09 %2.83 %
DB SERP5.18 3.09 2.84 
OPEB Plan5.31 3.23 3.03 
Interest cost discount rate2,4
DB Pension Plan A5.12 2.44 1.97 
DB Pension Plan B5.06 2.21 1.70 
DB SERP5.06 2.21 1.72 
OPEB Plan5.10 2.45 1.99 
Expected long-term rate of return on plan assets5
DB Pension Plans7.20 6.50 6.75 
OPEB Plan7.20 6.50 6.75 
Rate of compensation increase
DB Pension Plan A3.60 3.60 3.50 
DB SERP5.50 5.50 5.50 
1The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2023 and 2022 and improvement scale MP-2020 for 2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3The DB SERP no longer requires rate of compensation increase as the last active participant retired in 2023.
4CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.20 percent in 2023. The actual return (loss) on the assets of the DB Pension Plans was 12.6 percent in 2023, (15.9) percent in 2022, and 12.0 percent in 2021.
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 Plans and DB SERPOPEB Plan
Years Ended December 31202320222021202320222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$29 $41 $53 $12 $17 $18 
Interest cost112 84 63 44 28 23 
Settlement loss— 1 1 — — — 
Expected return on plan assets(220)(206)(208)(103)(115)(109)
Amortization of:
Net loss12 40 100 12 1 8 
Prior service cost (credit)4 4 4 (41)(51)(53)
Settlement loss11 9 6 — — — 
Net periodic cost (credit)$(52)$(27)$19 $(76)$(120)$(113)
Consumers
Net periodic credit
Service cost$28 $39 $51 $11 $17 $17 
Interest cost105 79 59 42 27 23 
Expected return on plan assets(208)(194)(197)(95)(107)(102)
Amortization of:
Net loss11 37 96 12 — 8 
Prior service cost (credit)4 4 4 (40)(50)(51)
Settlement loss11 9 6 — — — 
Net periodic credit$(49)$(26)$19 $(70)$(113)$(105)
In Consumers’ 2022 electric and gas rate cases, the MPSC approved a mechanism allowing Consumers to defer the future recovery or refund of pension and OPEB expenses above or below the amounts used to set existing rates, respectively, beginning in January 2023 for the electric utility and October 2023 for the gas utility. At December 31, 2023, CMS Energy, including Consumers, had deferred $11 million of pension credits and $23 million of OPEB costs under this mechanism.
CMS Energy and Consumers amortize net gains and losses in excess of ten percent of the greater of the PBO or the MRV over the average remaining service period for DB Pension Plan A and the OPEB Plan and over the average remaining life expectancy of participants for DB Pension Plan B. For DB Pension Plan A, the estimated period of amortization of gains and losses was eight years for the years ended
December 31, 2023, 2022, and 2021. For DB Pension Plan B, the estimated period of amortization of gains and losses was 17 years for the year ended December 31, 2023, and 18 years for the years ended December 31, 2022 and 2021. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2023, 2022, and 2021.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for OPEB in 2020. The estimated period of amortization of these new prior service costs is eight years.
CMS Energy and Consumers determine the MRV for the assets of the DB Pension Plans as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five‑year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date.
Reconciliations: Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefit plans with their retirement benefit plans’ liabilities:
In Millions
DB Pension PlansDB SERPOPEB Plan
Years Ended December 31202320222023202220232022
CMS Energy, including Consumers
Benefit obligation at beginning of period$2,169 $3,070 $117 $149 $889 $1,166 
Service cost29 41 — — 12 17 
Interest cost106 81 6 3 44 28 
Plan amendments— — — — — — 
Actuarial loss (gain)52 
1
(811)
1
1 (25)9 
1
(274)
1
Benefits paid(161)(212)(10)(10)(54)(48)
Benefit obligation at end of period$2,195 $2,169 $114 $117 $900 $889 
Plan assets at fair value at beginning of period$2,820 $3,599 $— $— $1,446 $1,787 
Actual return on plan assets345 (567)— — 165 (294)
Company contribution— — 10 10 — — 
Actual benefits paid(161)(212)(10)(10)(52)(47)
Plan assets at fair value at end of period$3,004 $2,820 $— $— $1,559 $1,446 
Funded status$809 
2
$651 
2
$(114)$(117)$659 $557 
Consumers
Benefit obligation at beginning of period$85 $109 $856 $1,122 
Service cost— — 11 17 
Interest cost4 2 42 27 
Plan amendments— — — — 
Actuarial loss (gain)1 (19)10 
1
(265)
1
Benefits paid(7)(7)(52)(45)
Benefit obligation at end of period$83 $85 $867 $856 
Plan assets at fair value at beginning of period$— $— $1,350 $1,668 
Actual return on plan assets— — 154 (273)
Company contribution7 7 — — 
Actual benefits paid(7)(7)(51)(45)
Plan assets at fair value at end of period$— $— $1,453 $1,350 
Funded status$(83)$(85)$586 $494 
1The actuarial losses for 2023 for the DB Pension Plans and OPEB Plan were primarily the result of lower discount rates. The actuarial gains for 2022 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $781 million at December 31, 2023 and $632 million at December 31, 2022.
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120232022
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$809 $651 
OPEB Plan659 557 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP104 107 
Consumers
Non-current assets
DB Pension Plans$781 $632 
OPEB Plan586 494 
Current liabilities
DB SERP7 7 
Non-current liabilities
DB SERP76 78 
The ABO for the DB Pension Plans was $2.0 billion at December 31, 2023 and 2022. At December 31, 2023 and 2022, the PBO and ABO did not exceed plan assets for any of the defined benefit pension plans.
Items Not Yet Recognized as a Component of Net Periodic Benefit Cost: Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets see Note 2, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312023202220232022
CMS Energy, including Consumers
Regulatory assets
Net loss$634 $724 $191 $251 
Prior service cost (credit)16 21 (100)(140)
Regulatory assets$650 $745 $91 $111 
AOCI
Net loss (gain)65 69 (3)2 
Prior service cost (credit)1 1 (2)(3)
Total amounts recognized in regulatory assets and AOCI$716 $815 $86 $110 
Consumers
Regulatory assets
Net loss$634 $724 $191 $251 
Prior service cost (credit)16 21 (100)(140)
Regulatory assets$650 $745 $91 $111 
AOCI
Net loss20 20 — — 
Total amounts recognized in regulatory assets and AOCI$670 $765 $91 $111 
Plan Assets: Presented in the following tables are the fair values of the assets of CMS Energy’s DB Pension Plans and OPEB Plan, by asset category and by level within the fair value hierarchy. For additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
DB Pension Plans
December 31, 2023December 31, 2022
TotalLevel 1Level 2TotalLevel 1
CMS Energy, including Consumers
Cash and short-term investments$178 $178 $— $122 $122 
Mutual funds47 47 — 263 263 
$225 $225 $— $385 $385 
Pooled funds2,779 2,435 
Total$3,004 $2,820 
In Millions
OPEB Plan
December 31, 2023December 31, 2022
TotalLevel 1Level 2TotalLevel 1
CMS Energy, including Consumers
Cash and short-term investments$82 $82 $— $28 $28 
U.S. government and agencies securities16 — 16 — — 
Corporate debt67 — 67 — — 
State and municipal bonds1 — 1 — — 
Foreign corporate bonds15 — 15 — — 
Common stocks161 161 — 69 69 
Mutual funds60 60 — 754 754 
$402 $303 $99 $851 $851 
Pooled funds1,157 595 
Total$1,559 $1,446 
Cash and Short-term Investments: Cash and short-term investments consist of money market funds with daily liquidity.
U.S. Government and Agencies Securities: U.S. government and agencies securities consist of U.S. Treasury notes and other debt securities backed by the U.S. government and related agencies. These securities are valued based on quoted market prices.
Corporate Debt: Corporate debt investments consist of investment grade bonds of U.S. issuers from diverse industries. These securities are valued based on quoted market prices, when available, or yields available on comparable securities of issuers with similar credit ratings.
State and Municipal Bonds: State and municipal bonds are valued using a matrix-pricing model that incorporates Level 2 market-based information. The fair value of the bonds is derived from various observable inputs, including benchmark yields, reported securities trades, broker/dealer quotes, bond ratings, and general information on market movements for investment grade state and municipal securities normally considered by market participants when pricing such debt securities.
Foreign Corporate Bonds: Foreign corporate debt securities are valued based on quoted market prices, when available, or on yields available on comparable securities of issuers with similar credit ratings.
Common Stocks: Common stocks in the OPEB Plan consist of equity securities that are actively managed and tracked to the S&P 500 Index and MSCI All Country World ex-US. These securities are valued at their quoted closing prices.
Mutual Funds: Mutual funds represent shares in registered investment companies that are priced based on the daily quoted net asset values that are publicly available and are the basis for transactions to buy or sell shares in the funds.
Pooled Funds: Pooled funds include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. These funds primarily consist of U.S. and foreign equity securities, but also include U.S. and foreign fixed-income securities and multi-asset investments. Since these investments are valued at their net asset value as a practical expedient, they are not classified in the fair value hierarchy.
Asset Allocations: Presented in the following table are the investment components of the assets of CMS Energy’s DB Pension Plans and OPEB Plan as of December 31, 2023:
DB Pension PlansOPEB Plan
Fixed-income securities42.0 %40.0 %
Equity securities38.0 42.0 
Real asset investments9.0 8.0 
Return-seeking fixed income6.0 5.0 
Liquid alternative investments4.0 4.0 
Cash and cash equivalents1.0 1.0 
100.0 %100.0 %
CMS Energy’s target 2023 asset allocation for the assets of the DB Pension Plans was 40‑percent fixed income, 38‑percent equity, 11‑percent real assets, 7‑percent return-seeking fixed income, and 4‑percent liquid alternatives.
CMS Energy established union and non‑union VEBA trusts to fund future retiree health and life insurance benefits known as OPEB. These trusts are funded through the ratemaking process for Consumers and through direct contributions from the non‑utility subsidiaries. CMS Energy’s target 2023 asset allocation for OPEB trusts was 40‑percent fixed income, 38‑percent equity, 11‑percent real assets, 7‑percent return-seeking fixed income, and 4‑percent liquid alternatives.
The goal of these target allocations was to maximize the long-term return on plan assets, while maintaining a prudent level of risk. The level of acceptable risk is a function of the liabilities of the plans. Equity investments are diversified mostly across the S&P 500 Index, with lesser allocations to the S&P MidCap and SmallCap Indexes and Foreign Equity Funds. Fixed-income investments are diversified across investment grade instruments of government and corporate issuers, as well as high-yield and global bond funds. Return-seeking fixed-income investments are diversified exposure to high-yield bonds, emerging market debt, and bank loans. Real asset investments are diversified across core real estate and real estate investment trusts. Liquid alternatives are investments in private funds comprised of different and independent hedge funds with various investment strategies. CMS Energy uses annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocations.
Contributions: Contributions comprise required amounts and discretionary contributions. Neither CMS Energy nor Consumers made any contributions in 2023 or 2022, or plans to contribute to the DB Pension Plans or OPEB Plan in 2024. Actual future contributions will depend on future investment performance, discount rates, and various factors related to the participants of the DB Pension Plans and OPEB Plan. CMS Energy and Consumers will, at a minimum, contribute to the plans as needed to comply with federal funding requirements.
Benefit Payments: Presented in the following table are the expected benefit payments for each of the next five years and the five‑year period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2024$158 $10 $55 
2025160 10 57 
2026159 10 58 
2027159 10 60 
2028159 9 61 
2029-2033785 43 315 
Consumers
2024$148 $7 $53 
2025151 7 54 
2026150 7 56 
2027150 7 57 
2028150 6 59 
2029-2033741 29 301 
Collective Bargaining Agreements: At December 31, 2023, unions represented 44 percent of CMS Energy’s employees and 45 percent of Consumers’ employees. The UWUA represents Consumers’ operating, maintenance, construction, and customer contact center employees. The USW represents Zeeland plant employees. The UWUA and USW agreements expire in 2025.
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement Benefits
Benefit Plans: CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. These plans include:
•non‑contributory, qualified DB Pension Plans (closed to new non‑union participants as of July 1, 2003 and closed to new union participants as of September 1, 2005)
•a non‑contributory, qualified DCCP for employees hired on or after July 1, 2003
•benefits to certain management employees under a non‑contributory, nonqualified DB SERP (closed to new participants as of March 31, 2006)
•a non‑contributory, nonqualified DC SERP for certain management employees hired or promoted on or after April 1, 2006
•a contributory, qualified defined contribution 401(k) plan
•health care and life insurance benefits under an OPEB Plan
DB Pension Plans: Participants in the pension plans include present and former employees of CMS Energy and Consumers, including certain present and former affiliates and subsidiaries. Pension plan trust assets are not distinguishable by company. Effective December 31, 2017, CMS Energy’s and Consumers’ then-existing pension plan was amended to include only retired and former employees already covered; this amended plan is referred to as DB Pension Plan B. Also effective December 31, 2017, active employees were moved to a newly created pension plan, referred to as DB Pension Plan A, whose benefits mirror those provided under DB Pension Plan B. Maintaining separate plans for the two groups allows CMS Energy and Consumers to employ a more targeted investment strategy and provides additional opportunities to mitigate risk and volatility.
DCCP: CMS Energy and Consumers provide an employer contribution to the DCCP 401(k) plan for employees hired on or after July 1, 2003. The contribution ranges from five percent to ten percent of base pay, depending on years of service and employee class. Employees are not required to contribute in order to receive the plan’s employer contribution. DCCP expense for CMS Energy, including Consumers, was $51 million for the year ended December 31, 2023, $48 million for the year ended December 31, 2022, and $41 million for the year ended December 31, 2021. DCCP expense for Consumers was $50 million for the year ended December 31, 2023, $48 million for the year ended December 31, 2022, and $41 million for the year ended December 31, 2021.
DB SERP: The DB SERP is a nonqualified plan as defined by the Internal Revenue Code. DB SERP benefits are paid from a rabbi trust established in 1988. The trust assets are not considered plan assets under ASC 715. DB SERP rabbi trust earnings are taxable. Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Trust assets$132 $137 
ABO115 118 
Consumers
Trust assets$98 $101 
ABO83 85 
Neither CMS Energy nor Consumers made any contributions to the DB SERP in 2023 or 2022.
DC SERP: On April 1, 2006, CMS Energy and Consumers implemented a DC SERP and froze further new participation in the DB SERP. The DC SERP provides participants benefits ranging from five percent to 15 percent of total compensation. The DC SERP requires a minimum of five years of participation before vesting. CMS Energy’s and Consumers’ contributions to the plan, if any, are placed in a grantor trust. For CMS Energy and Consumers, trust assets were $14 million at December 31, 2023 and $12 million at December 31, 2022. DC SERP assets are included in other non‑current assets on CMS Energy’s and Consumers’ consolidated balance sheets. CMS Energy’s and Consumers’ DC SERP expense was $1 million for the years ended December 31, 2023 and 2022, and $2 million for the year ended December 31, 2021.
401(k) Plan: The 401(k) plan employer match equals four to six percent of employee eligible contributions based on an employee’s wages and class. The total 401(k) plan cost for CMS Energy, including Consumers, was $41 million for the year ended December 31, 2023, $44 million for the year ended December 31, 2022, and $31 million for the year ended December 31, 2021. The total 401(k) plan cost for Consumers was $40 million for the year ended December 31, 2023, $43 million for the year ended December 31, 2022, and $31 million for the year ended December 31, 2021.
OPEB Plan: Participants in the OPEB Plan include all regular full-time employees covered by the employee health care plan on the day before retirement from either CMS Energy or Consumers at age 55 or older with at least 10 full years of applicable continuous service. Regular full-time employees who qualify for disability retirement under the DB Pension Plans or are disabled and covered by the DCCP and who have 15 years of applicable continuous service may also participate in the OPEB Plan. Retiree health care costs were based on the assumption that costs would increase 8.00 percent in 2024 and 6.50 percent in 2023 for those under 65 and would increase 8.50 percent in 2024 and 6.75 percent in 2023 for those over 65. The rate of increase was assumed to decline to 4.75 percent by 2032 and thereafter for all retirees.
Assumptions: Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefit plans to determine benefit obligations and net periodic benefit cost:
December 31202320222021
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A5.05 %5.24 %3.02 %
DB Pension Plan B4.95 5.14 2.79 
DB SERP4.94 5.13 2.78 
OPEB Plan5.02 5.21 2.99 
Rate of compensation increase
DB Pension Plan A3.60 3.60 3.60 
DB SERP3
— 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,4
DB Pension Plan A5.27 %3.09 %2.83 %
DB SERP5.18 3.09 2.84 
OPEB Plan5.31 3.23 3.03 
Interest cost discount rate2,4
DB Pension Plan A5.12 2.44 1.97 
DB Pension Plan B5.06 2.21 1.70 
DB SERP5.06 2.21 1.72 
OPEB Plan5.10 2.45 1.99 
Expected long-term rate of return on plan assets5
DB Pension Plans7.20 6.50 6.75 
OPEB Plan7.20 6.50 6.75 
Rate of compensation increase
DB Pension Plan A3.60 3.60 3.50 
DB SERP5.50 5.50 5.50 
1The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2023 and 2022 and improvement scale MP-2020 for 2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3The DB SERP no longer requires rate of compensation increase as the last active participant retired in 2023.
4CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.20 percent in 2023. The actual return (loss) on the assets of the DB Pension Plans was 12.6 percent in 2023, (15.9) percent in 2022, and 12.0 percent in 2021.
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 Plans and DB SERPOPEB Plan
Years Ended December 31202320222021202320222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$29 $41 $53 $12 $17 $18 
Interest cost112 84 63 44 28 23 
Settlement loss— 1 1 — — — 
Expected return on plan assets(220)(206)(208)(103)(115)(109)
Amortization of:
Net loss12 40 100 12 1 8 
Prior service cost (credit)4 4 4 (41)(51)(53)
Settlement loss11 9 6 — — — 
Net periodic cost (credit)$(52)$(27)$19 $(76)$(120)$(113)
Consumers
Net periodic credit
Service cost$28 $39 $51 $11 $17 $17 
Interest cost105 79 59 42 27 23 
Expected return on plan assets(208)(194)(197)(95)(107)(102)
Amortization of:
Net loss11 37 96 12 — 8 
Prior service cost (credit)4 4 4 (40)(50)(51)
Settlement loss11 9 6 — — — 
Net periodic credit$(49)$(26)$19 $(70)$(113)$(105)
In Consumers’ 2022 electric and gas rate cases, the MPSC approved a mechanism allowing Consumers to defer the future recovery or refund of pension and OPEB expenses above or below the amounts used to set existing rates, respectively, beginning in January 2023 for the electric utility and October 2023 for the gas utility. At December 31, 2023, CMS Energy, including Consumers, had deferred $11 million of pension credits and $23 million of OPEB costs under this mechanism.
CMS Energy and Consumers amortize net gains and losses in excess of ten percent of the greater of the PBO or the MRV over the average remaining service period for DB Pension Plan A and the OPEB Plan and over the average remaining life expectancy of participants for DB Pension Plan B. For DB Pension Plan A, the estimated period of amortization of gains and losses was eight years for the years ended
December 31, 2023, 2022, and 2021. For DB Pension Plan B, the estimated period of amortization of gains and losses was 17 years for the year ended December 31, 2023, and 18 years for the years ended December 31, 2022 and 2021. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2023, 2022, and 2021.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for OPEB in 2020. The estimated period of amortization of these new prior service costs is eight years.
CMS Energy and Consumers determine the MRV for the assets of the DB Pension Plans as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five‑year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date.
Reconciliations: Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefit plans with their retirement benefit plans’ liabilities:
In Millions
DB Pension PlansDB SERPOPEB Plan
Years Ended December 31202320222023202220232022
CMS Energy, including Consumers
Benefit obligation at beginning of period$2,169 $3,070 $117 $149 $889 $1,166 
Service cost29 41 — — 12 17 
Interest cost106 81 6 3 44 28 
Plan amendments— — — — — — 
Actuarial loss (gain)52 
1
(811)
1
1 (25)9 
1
(274)
1
Benefits paid(161)(212)(10)(10)(54)(48)
Benefit obligation at end of period$2,195 $2,169 $114 $117 $900 $889 
Plan assets at fair value at beginning of period$2,820 $3,599 $— $— $1,446 $1,787 
Actual return on plan assets345 (567)— — 165 (294)
Company contribution— — 10 10 — — 
Actual benefits paid(161)(212)(10)(10)(52)(47)
Plan assets at fair value at end of period$3,004 $2,820 $— $— $1,559 $1,446 
Funded status$809 
2
$651 
2
$(114)$(117)$659 $557 
Consumers
Benefit obligation at beginning of period$85 $109 $856 $1,122 
Service cost— — 11 17 
Interest cost4 2 42 27 
Plan amendments— — — — 
Actuarial loss (gain)1 (19)10 
1
(265)
1
Benefits paid(7)(7)(52)(45)
Benefit obligation at end of period$83 $85 $867 $856 
Plan assets at fair value at beginning of period$— $— $1,350 $1,668 
Actual return on plan assets— — 154 (273)
Company contribution7 7 — — 
Actual benefits paid(7)(7)(51)(45)
Plan assets at fair value at end of period$— $— $1,453 $1,350 
Funded status$(83)$(85)$586 $494 
1The actuarial losses for 2023 for the DB Pension Plans and OPEB Plan were primarily the result of lower discount rates. The actuarial gains for 2022 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $781 million at December 31, 2023 and $632 million at December 31, 2022.
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120232022
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$809 $651 
OPEB Plan659 557 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP104 107 
Consumers
Non-current assets
DB Pension Plans$781 $632 
OPEB Plan586 494 
Current liabilities
DB SERP7 7 
Non-current liabilities
DB SERP76 78 
The ABO for the DB Pension Plans was $2.0 billion at December 31, 2023 and 2022. At December 31, 2023 and 2022, the PBO and ABO did not exceed plan assets for any of the defined benefit pension plans.
Items Not Yet Recognized as a Component of Net Periodic Benefit Cost: Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets see Note 2, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312023202220232022
CMS Energy, including Consumers
Regulatory assets
Net loss$634 $724 $191 $251 
Prior service cost (credit)16 21 (100)(140)
Regulatory assets$650 $745 $91 $111 
AOCI
Net loss (gain)65 69 (3)2 
Prior service cost (credit)1 1 (2)(3)
Total amounts recognized in regulatory assets and AOCI$716 $815 $86 $110 
Consumers
Regulatory assets
Net loss$634 $724 $191 $251 
Prior service cost (credit)16 21 (100)(140)
Regulatory assets$650 $745 $91 $111 
AOCI
Net loss20 20 — — 
Total amounts recognized in regulatory assets and AOCI$670 $765 $91 $111 
Plan Assets: Presented in the following tables are the fair values of the assets of CMS Energy’s DB Pension Plans and OPEB Plan, by asset category and by level within the fair value hierarchy. For additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
DB Pension Plans
December 31, 2023December 31, 2022
TotalLevel 1Level 2TotalLevel 1
CMS Energy, including Consumers
Cash and short-term investments$178 $178 $— $122 $122 
Mutual funds47 47 — 263 263 
$225 $225 $— $385 $385 
Pooled funds2,779 2,435 
Total$3,004 $2,820 
In Millions
OPEB Plan
December 31, 2023December 31, 2022
TotalLevel 1Level 2TotalLevel 1
CMS Energy, including Consumers
Cash and short-term investments$82 $82 $— $28 $28 
U.S. government and agencies securities16 — 16 — — 
Corporate debt67 — 67 — — 
State and municipal bonds1 — 1 — — 
Foreign corporate bonds15 — 15 — — 
Common stocks161 161 — 69 69 
Mutual funds60 60 — 754 754 
$402 $303 $99 $851 $851 
Pooled funds1,157 595 
Total$1,559 $1,446 
Cash and Short-term Investments: Cash and short-term investments consist of money market funds with daily liquidity.
U.S. Government and Agencies Securities: U.S. government and agencies securities consist of U.S. Treasury notes and other debt securities backed by the U.S. government and related agencies. These securities are valued based on quoted market prices.
Corporate Debt: Corporate debt investments consist of investment grade bonds of U.S. issuers from diverse industries. These securities are valued based on quoted market prices, when available, or yields available on comparable securities of issuers with similar credit ratings.
State and Municipal Bonds: State and municipal bonds are valued using a matrix-pricing model that incorporates Level 2 market-based information. The fair value of the bonds is derived from various observable inputs, including benchmark yields, reported securities trades, broker/dealer quotes, bond ratings, and general information on market movements for investment grade state and municipal securities normally considered by market participants when pricing such debt securities.
Foreign Corporate Bonds: Foreign corporate debt securities are valued based on quoted market prices, when available, or on yields available on comparable securities of issuers with similar credit ratings.
Common Stocks: Common stocks in the OPEB Plan consist of equity securities that are actively managed and tracked to the S&P 500 Index and MSCI All Country World ex-US. These securities are valued at their quoted closing prices.
Mutual Funds: Mutual funds represent shares in registered investment companies that are priced based on the daily quoted net asset values that are publicly available and are the basis for transactions to buy or sell shares in the funds.
Pooled Funds: Pooled funds include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. These funds primarily consist of U.S. and foreign equity securities, but also include U.S. and foreign fixed-income securities and multi-asset investments. Since these investments are valued at their net asset value as a practical expedient, they are not classified in the fair value hierarchy.
Asset Allocations: Presented in the following table are the investment components of the assets of CMS Energy’s DB Pension Plans and OPEB Plan as of December 31, 2023:
DB Pension PlansOPEB Plan
Fixed-income securities42.0 %40.0 %
Equity securities38.0 42.0 
Real asset investments9.0 8.0 
Return-seeking fixed income6.0 5.0 
Liquid alternative investments4.0 4.0 
Cash and cash equivalents1.0 1.0 
100.0 %100.0 %
CMS Energy’s target 2023 asset allocation for the assets of the DB Pension Plans was 40‑percent fixed income, 38‑percent equity, 11‑percent real assets, 7‑percent return-seeking fixed income, and 4‑percent liquid alternatives.
CMS Energy established union and non‑union VEBA trusts to fund future retiree health and life insurance benefits known as OPEB. These trusts are funded through the ratemaking process for Consumers and through direct contributions from the non‑utility subsidiaries. CMS Energy’s target 2023 asset allocation for OPEB trusts was 40‑percent fixed income, 38‑percent equity, 11‑percent real assets, 7‑percent return-seeking fixed income, and 4‑percent liquid alternatives.
The goal of these target allocations was to maximize the long-term return on plan assets, while maintaining a prudent level of risk. The level of acceptable risk is a function of the liabilities of the plans. Equity investments are diversified mostly across the S&P 500 Index, with lesser allocations to the S&P MidCap and SmallCap Indexes and Foreign Equity Funds. Fixed-income investments are diversified across investment grade instruments of government and corporate issuers, as well as high-yield and global bond funds. Return-seeking fixed-income investments are diversified exposure to high-yield bonds, emerging market debt, and bank loans. Real asset investments are diversified across core real estate and real estate investment trusts. Liquid alternatives are investments in private funds comprised of different and independent hedge funds with various investment strategies. CMS Energy uses annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocations.
Contributions: Contributions comprise required amounts and discretionary contributions. Neither CMS Energy nor Consumers made any contributions in 2023 or 2022, or plans to contribute to the DB Pension Plans or OPEB Plan in 2024. Actual future contributions will depend on future investment performance, discount rates, and various factors related to the participants of the DB Pension Plans and OPEB Plan. CMS Energy and Consumers will, at a minimum, contribute to the plans as needed to comply with federal funding requirements.
Benefit Payments: Presented in the following table are the expected benefit payments for each of the next five years and the five‑year period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2024$158 $10 $55 
2025160 10 57 
2026159 10 58 
2027159 10 60 
2028159 9 61 
2029-2033785 43 315 
Consumers
2024$148 $7 $53 
2025151 7 54 
2026150 7 56 
2027150 7 57 
2028150 6 59 
2029-2033741 29 301 
Collective Bargaining Agreements: At December 31, 2023, unions represented 44 percent of CMS Energy’s employees and 45 percent of Consumers’ employees. The UWUA represents Consumers’ operating, maintenance, construction, and customer contact center employees. The USW represents Zeeland plant employees. The UWUA and USW agreements expire in 2025.
v3.24.0.1
Stock-based Compensation
 12 Months Ended
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Stock-based Compensation Stock-based Compensation
CMS Energy and Consumers provide a PISP to officers, employees, and non‑employee directors based on their contributions to the successful management of the company. The PISP has a ten‑year term, expiring in May 2030.
In 2023, all awards were in the form of restricted stock or restricted stock units. The PISP also allows for unrestricted common stock, stock options, stock appreciation rights, phantom shares, performance units, and incentive options, none of which was granted in 2023, 2022, or 2021.
Shares awarded or subject to stock options, phantom shares, or performance units may not exceed 6.5 million shares from June 2020 through May 2030. CMS Energy and Consumers may issue awards of up to 4,960,465 shares of common stock under the PISP as of December 31, 2023. Shares for which payment or exercise is in cash, as well as shares that expire, terminate, or are canceled or forfeited, may be awarded or granted again under the PISP.
All awards under the PISP vest fully upon death. Upon a change of control of CMS Energy or termination under an officer separation agreement, the awards will vest in accordance with specific officer agreements. If stated in the award, for restricted stock recipients who terminate employment due to retirement or disability, a pro-rata portion of the award will vest upon termination, with any market-based award also contingent upon the outcome of the market condition and any performance-based award contingent upon the outcome of the performance condition. The pro-rata portion is equal to the portion of the service period served between the award grant date and the employee’s termination date. The remaining portion of the awards will be forfeited. All awards for directors vest fully upon retirement. Restricted shares may be forfeited if employment terminates for any other reason or if the minimum service requirements are not met, as described in the award document.
Restricted Stock Awards: Restricted stock awards for employees under the PISP are in the form of performance-based, market-based, and time-lapse restricted stock. Award recipients receive shares of CMS Energy common stock that have dividend and voting rights. The dividends on time-lapse restricted stock are paid in cash or in CMS Energy common stock. The dividends on performance-based and market-based restricted stock are paid in restricted shares equal to the value of the dividends. These additional restricted shares are subject to the same vesting conditions as the underlying restricted stock shares.
Performance-based restricted stock vesting is contingent on meeting at least a 36‑month service requirement and a performance condition. The performance condition is based on an adjusted measure of CMS Energy’s EPS growth relative to a peer group over a three‑year period. The awards granted in 2023, 2022, and 2021 require a 38‑month service period. Market-based restricted stock vesting is generally contingent on meeting a three‑year service requirement and a market condition. The market condition is based on a comparison of CMS Energy’s total shareholder return with the median total shareholder return of a peer group over the same three‑year period. Depending on the outcome of the performance condition or the market condition, a recipient may earn a total award ranging from zero to 200 percent of the initial grant. Time-lapse restricted stock generally vests after a service period of three years.
Restricted Stock Units: In 2023, 2022, and 2021, CMS Energy and Consumers granted restricted stock units to certain non‑employee directors who elected to defer their restricted stock awards. The restricted stock units generally vest after a service period of one year or, if earlier, at the next annual meeting. The restricted stock units will be distributed to the recipients as shares in accordance with the directors’ deferral agreements. Restricted stock units do not have voting rights, but do have dividend rights. In lieu of cash dividend payments, the dividends on restricted stock units are paid in additional units equal to the value of the dividends. These additional restricted stock units are subject to the same vesting and
distribution conditions as the underlying restricted stock units. No restricted stock units were forfeited during 2023.
Presented in the following tables is the activity for restricted stock and restricted stock units under the PISP:
CMS Energy, including ConsumersConsumers
Year Ended December 31, 2023Number of
Shares		Weighted-Average
Grant Date Fair Value
per Share		Number of
Shares		Weighted-Average
Grant Date Fair Value
per Share
Nonvested at beginning of period1,029,523 $60.13 978,146 $60.15 
Granted
Restricted stock502,039 52.62 474,917 52.42 
Restricted stock units19,082 50.32 18,315 50.34 
Vested
Restricted stock(313,344)51.54 (302,177)51.48 
Restricted stock units(15,211)52.60 (14,523)52.55 
Forfeited – restricted stock(63,987)53.57 (60,312)53.45 
Nonvested at end of period1,158,102 $59.50 1,094,366 $59.50 
Year Ended December 31, 2023CMS Energy, including
Consumers		Consumers
Granted
Time-lapse awards115,591 108,216 
Market-based awards147,453 139,255 
Performance-based awards153,383 145,008 
Restricted stock units15,545 14,925 
Dividends on market-based awards14,825 14,038 
Dividends on performance-based awards15,608 14,787 
Dividends on restricted stock units3,537 3,390 
Additional performance-based shares based on achievement of condition55,179 53,613 
Total granted521,121 493,232 
CMS Energy and Consumers charge the fair value of the restricted stock awards to expense over the required service period and charge the fair value of the restricted stock units to expense immediately. For performance-based awards, CMS Energy and Consumers estimate the number of shares expected to vest at the end of the performance period based on the probable achievement of the performance objective. Performance-based and market-based restricted stock awards have graded vesting features for retirement-eligible employees, and CMS Energy and Consumers recognize expense for those awards on a graded vesting schedule over the required service period. Expense for performance-based and market-based restricted stock awards for non‑retirement-eligible employees and time-lapse awards is recognized on a straight-line basis over the required service period.
The fair value of performance-based and time-lapse restricted stock and restricted stock units is based on the price of CMS Energy’s common stock on the grant date. The fair value of market-based restricted stock awards is calculated on the grant date using a Monte Carlo simulation. CMS Energy and Consumers base expected volatilities on the historical volatility of the price of CMS Energy common stock. The risk-
free rate for valuation of the market-based restricted stock awards was based on the three‑year U.S. Treasury yield at the award grant date.

Presented in the following table are the most significant assumptions used to estimate the fair value of the market-based restricted stock awards:
Years Ended December 31202320222021
Expected volatility30.3 %27.3 %27.6 %
Expected dividend yield2.9 2.8 2.8 
Risk-free rate3.9 1.4 0.2 
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$52.62 $48.69 $43.52 
Restricted stock units granted50.32 56.13 54.11 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$52.42 $48.57 $42.85 
Restricted stock units granted50.34 56.07 53.93 
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Fair value of shares that vested during the year$20 $27 $25 
Compensation expense recognized28 26 22 
Income tax benefit recognized3 — 1 
Consumers
Fair value of shares that vested during the year$19 $25 $24 
Compensation expense recognized26 25 21 
Income tax benefit recognized2 — 1 
At December 31, 2023, $29 million of total unrecognized compensation cost was related to restricted stock for CMS Energy, including Consumers, and $27 million of total unrecognized compensation cost was related to restricted stock for Consumers. CMS Energy and Consumers expect to recognize this cost over a weighted-average period of two years.
Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Stock-based Compensation Stock-based Compensation
CMS Energy and Consumers provide a PISP to officers, employees, and non‑employee directors based on their contributions to the successful management of the company. The PISP has a ten‑year term, expiring in May 2030.
In 2023, all awards were in the form of restricted stock or restricted stock units. The PISP also allows for unrestricted common stock, stock options, stock appreciation rights, phantom shares, performance units, and incentive options, none of which was granted in 2023, 2022, or 2021.
Shares awarded or subject to stock options, phantom shares, or performance units may not exceed 6.5 million shares from June 2020 through May 2030. CMS Energy and Consumers may issue awards of up to 4,960,465 shares of common stock under the PISP as of December 31, 2023. Shares for which payment or exercise is in cash, as well as shares that expire, terminate, or are canceled or forfeited, may be awarded or granted again under the PISP.
All awards under the PISP vest fully upon death. Upon a change of control of CMS Energy or termination under an officer separation agreement, the awards will vest in accordance with specific officer agreements. If stated in the award, for restricted stock recipients who terminate employment due to retirement or disability, a pro-rata portion of the award will vest upon termination, with any market-based award also contingent upon the outcome of the market condition and any performance-based award contingent upon the outcome of the performance condition. The pro-rata portion is equal to the portion of the service period served between the award grant date and the employee’s termination date. The remaining portion of the awards will be forfeited. All awards for directors vest fully upon retirement. Restricted shares may be forfeited if employment terminates for any other reason or if the minimum service requirements are not met, as described in the award document.
Restricted Stock Awards: Restricted stock awards for employees under the PISP are in the form of performance-based, market-based, and time-lapse restricted stock. Award recipients receive shares of CMS Energy common stock that have dividend and voting rights. The dividends on time-lapse restricted stock are paid in cash or in CMS Energy common stock. The dividends on performance-based and market-based restricted stock are paid in restricted shares equal to the value of the dividends. These additional restricted shares are subject to the same vesting conditions as the underlying restricted stock shares.
Performance-based restricted stock vesting is contingent on meeting at least a 36‑month service requirement and a performance condition. The performance condition is based on an adjusted measure of CMS Energy’s EPS growth relative to a peer group over a three‑year period. The awards granted in 2023, 2022, and 2021 require a 38‑month service period. Market-based restricted stock vesting is generally contingent on meeting a three‑year service requirement and a market condition. The market condition is based on a comparison of CMS Energy’s total shareholder return with the median total shareholder return of a peer group over the same three‑year period. Depending on the outcome of the performance condition or the market condition, a recipient may earn a total award ranging from zero to 200 percent of the initial grant. Time-lapse restricted stock generally vests after a service period of three years.
Restricted Stock Units: In 2023, 2022, and 2021, CMS Energy and Consumers granted restricted stock units to certain non‑employee directors who elected to defer their restricted stock awards. The restricted stock units generally vest after a service period of one year or, if earlier, at the next annual meeting. The restricted stock units will be distributed to the recipients as shares in accordance with the directors’ deferral agreements. Restricted stock units do not have voting rights, but do have dividend rights. In lieu of cash dividend payments, the dividends on restricted stock units are paid in additional units equal to the value of the dividends. These additional restricted stock units are subject to the same vesting and
distribution conditions as the underlying restricted stock units. No restricted stock units were forfeited during 2023.
Presented in the following tables is the activity for restricted stock and restricted stock units under the PISP:
CMS Energy, including ConsumersConsumers
Year Ended December 31, 2023Number of
Shares		Weighted-Average
Grant Date Fair Value
per Share		Number of
Shares		Weighted-Average
Grant Date Fair Value
per Share
Nonvested at beginning of period1,029,523 $60.13 978,146 $60.15 
Granted
Restricted stock502,039 52.62 474,917 52.42 
Restricted stock units19,082 50.32 18,315 50.34 
Vested
Restricted stock(313,344)51.54 (302,177)51.48 
Restricted stock units(15,211)52.60 (14,523)52.55 
Forfeited – restricted stock(63,987)53.57 (60,312)53.45 
Nonvested at end of period1,158,102 $59.50 1,094,366 $59.50 
Year Ended December 31, 2023CMS Energy, including
Consumers		Consumers
Granted
Time-lapse awards115,591 108,216 
Market-based awards147,453 139,255 
Performance-based awards153,383 145,008 
Restricted stock units15,545 14,925 
Dividends on market-based awards14,825 14,038 
Dividends on performance-based awards15,608 14,787 
Dividends on restricted stock units3,537 3,390 
Additional performance-based shares based on achievement of condition55,179 53,613 
Total granted521,121 493,232 
CMS Energy and Consumers charge the fair value of the restricted stock awards to expense over the required service period and charge the fair value of the restricted stock units to expense immediately. For performance-based awards, CMS Energy and Consumers estimate the number of shares expected to vest at the end of the performance period based on the probable achievement of the performance objective. Performance-based and market-based restricted stock awards have graded vesting features for retirement-eligible employees, and CMS Energy and Consumers recognize expense for those awards on a graded vesting schedule over the required service period. Expense for performance-based and market-based restricted stock awards for non‑retirement-eligible employees and time-lapse awards is recognized on a straight-line basis over the required service period.
The fair value of performance-based and time-lapse restricted stock and restricted stock units is based on the price of CMS Energy’s common stock on the grant date. The fair value of market-based restricted stock awards is calculated on the grant date using a Monte Carlo simulation. CMS Energy and Consumers base expected volatilities on the historical volatility of the price of CMS Energy common stock. The risk-
free rate for valuation of the market-based restricted stock awards was based on the three‑year U.S. Treasury yield at the award grant date.

Presented in the following table are the most significant assumptions used to estimate the fair value of the market-based restricted stock awards:
Years Ended December 31202320222021
Expected volatility30.3 %27.3 %27.6 %
Expected dividend yield2.9 2.8 2.8 
Risk-free rate3.9 1.4 0.2 
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$52.62 $48.69 $43.52 
Restricted stock units granted50.32 56.13 54.11 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$52.42 $48.57 $42.85 
Restricted stock units granted50.34 56.07 53.93 
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Fair value of shares that vested during the year$20 $27 $25 
Compensation expense recognized28 26 22 
Income tax benefit recognized3 — 1 
Consumers
Fair value of shares that vested during the year$19 $25 $24 
Compensation expense recognized26 25 21 
Income tax benefit recognized2 — 1 
At December 31, 2023, $29 million of total unrecognized compensation cost was related to restricted stock for CMS Energy, including Consumers, and $27 million of total unrecognized compensation cost was related to restricted stock for Consumers. CMS Energy and Consumers expect to recognize this cost over a weighted-average period of two years.
v3.24.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Taxes [Line Items]  
Income Taxes Income Taxes
CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement.
Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate:
In Millions, Except Tax Rate
Years Ended December 31202320222021
CMS Energy, including Consumers
Income from continuing operations before income taxes$954 $902 $823 
Income tax expense at statutory rate200 189 173 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1
31 51 39 
Renewable energy tax credits(58)(51)(44)
TCJA excess deferred taxes2
(40)(65)(50)
Taxes attributable to noncontrolling interests17 5 5 
Accelerated flow-through of regulatory tax benefits3
— (39)(28)
Other, net(3)3 — 
Income tax expense$147 $93 $95 
Effective tax rate15.4 %10.3 %11.5 %
Consumers
Income from continuing operations before income taxes$1,028 $1,085 $1,024 
Income tax expense at statutory rate216 228 215 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1
36 59 54 
Renewable energy tax credits(46)(46)(37)
TCJA excess deferred taxes2
(40)(65)(50)
Accelerated flow-through of regulatory tax benefits3
— (39)(28)
Other, net(5)3 2 
Income tax expense$161 $140 $156 
Effective tax rate15.7 %12.9 %15.2 %
1CMS Energy initiated a plan to divest immaterial business activities in a non‑Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction after 2023. As a result of these actions, CMS Energy reversed a $13 million non‑Michigan reserve, all of which was recognized at Consumers.
2In 2020, the MPSC authorized Consumers to accelerate the amortization of the gas portion of its regulatory liability associated with unprotected, non-property-related excess deferred income taxes resulting from the TCJA. This portion of the regulatory liability was fully amortized in 2022.
3In 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 were fully amortized in 2022.
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Current income taxes
Federal$5 $6 $(1)
State and local1 — 1 
$6 $6 $— 
Deferred income taxes
Federal107 4 49 
State and local38 65 49 
$145 $69 $98 
Deferred income tax credit(4)18 (3)
Tax expense$147 $93 $95 
Consumers
Current income taxes
Federal$3 $(2)$(13)
State and local2 8 15 
$5 $6 $2 
Deferred income taxes
Federal117 50 103 
State and local43 66 54 
$160 $116 $157 
Deferred income tax credit(4)18 (3)
Tax expense$161 $140 $156 
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120232022
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$428 $385 
Net regulatory tax liability305 318 
Reserves and accruals28 35 
Total deferred income tax assets$761 $738 
Valuation allowance(2)(2)
Total deferred income tax assets, net of valuation allowance$759 $736 
Deferred income tax liabilities
Plant, property, and equipment$(2,520)$(2,515)
Employee benefits(473)(433)
Gas inventory(66)(53)
Securitized costs(194)(39)
Other(121)(103)
Total deferred income tax liabilities$(3,374)$(3,143)
Total net deferred income tax liabilities$(2,615)$(2,407)
Consumers
Deferred income tax assets
Net regulatory tax liability$305 $318 
Tax loss and credit carryforwards175 145 
Reserves and accruals27 28 
Total deferred income tax assets$507 $491 
Deferred income tax liabilities
Plant, property, and equipment$(2,498)$(2,458)
Employee benefits(459)(423)
Gas inventory(66)(53)
Securitized costs(194)(39)
Other(79)(103)
Total deferred income tax liabilities$(3,296)$(3,076)
Total net deferred income tax liabilities$(2,789)$(2,585)
Deferred tax assets and liabilities are recognized for the estimated future tax effect of temporary differences between the tax basis of assets or liabilities and the reported amounts on CMS Energy’s and Consumers’ consolidated financial statements.
Presented in the following table are the tax loss and credit carryforwards at December 31, 2023:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
State net operating loss carryforwards$69 2030 – 2033
Local net operating loss carryforwards3 2024 – 2040
General business credits356 2035 – 2043
Total tax attributes$428 
Consumers
State net operating loss carryforwards$53 2030 – 2033
General business credits122 2035 – 2043
Total tax attributes$175 
CMS Energy has provided a valuation allowance of $2 million for the local tax loss carryforward. CMS Energy and Consumers expect to utilize fully their tax loss and credit carryforwards for which no valuation allowance has been provided. It is reasonably possible that further adjustments will be made to the valuation allowances within one year.
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Balance at beginning of period$28 $27 $25 
Additions for current-year tax positions1 1 2 
Additions for prior-year tax positions— 1 — 
Reductions for prior-year tax positions(3)(1)— 
Balance at end of period$26 $28 $27 
Consumers
Balance at beginning of period$36 $34 $31 
Additions for current-year tax positions1 3 3 
Additions for prior-year tax positions2 1 — 
Reductions for prior-year tax positions(3)(2)— 
Balance at end of period$36 $36 $34 
If recognized, all of these uncertain tax benefits would affect CMS Energy’s and Consumers’ annual effective tax rates in future years. One uncertain tax benefit relates to the methodology of state apportionment for Consumers’ electricity sales to MISO. The Michigan Tax Tribunal heard oral arguments on this methodology during 2022. A final conclusion is not anticipated in the next 12 months.
CMS Energy and Consumers recognize accrued interest and penalties, where applicable, as part of income tax expense. CMS Energy, including Consumers, recognized no interest or penalties for each of the years ended December 31, 2023, 2022, or 2021.
The amount of income taxes paid is subject to ongoing audits by federal, state, local, and foreign tax authorities, which can result in proposed assessments. CMS Energy’s federal income tax returns for 2020
and subsequent years remain subject to examination by the IRS. CMS Energy’s Michigan Corporate Income Tax returns for 2013-2016 and 2019 and subsequent years remain subject to examination by the State of Michigan. CMS Energy’s and Consumers’ estimate of the potential outcome for any uncertain tax issue is highly judgmental. CMS Energy and Consumers believe that their accrued tax liabilities at December 31, 2023 were adequate for all years.
Consumers Energy Company  
Income Taxes [Line Items]  
Income Taxes Income Taxes
CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement.
Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate:
In Millions, Except Tax Rate
Years Ended December 31202320222021
CMS Energy, including Consumers
Income from continuing operations before income taxes$954 $902 $823 
Income tax expense at statutory rate200 189 173 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1
31 51 39 
Renewable energy tax credits(58)(51)(44)
TCJA excess deferred taxes2
(40)(65)(50)
Taxes attributable to noncontrolling interests17 5 5 
Accelerated flow-through of regulatory tax benefits3
— (39)(28)
Other, net(3)3 — 
Income tax expense$147 $93 $95 
Effective tax rate15.4 %10.3 %11.5 %
Consumers
Income from continuing operations before income taxes$1,028 $1,085 $1,024 
Income tax expense at statutory rate216 228 215 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1
36 59 54 
Renewable energy tax credits(46)(46)(37)
TCJA excess deferred taxes2
(40)(65)(50)
Accelerated flow-through of regulatory tax benefits3
— (39)(28)
Other, net(5)3 2 
Income tax expense$161 $140 $156 
Effective tax rate15.7 %12.9 %15.2 %
1CMS Energy initiated a plan to divest immaterial business activities in a non‑Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction after 2023. As a result of these actions, CMS Energy reversed a $13 million non‑Michigan reserve, all of which was recognized at Consumers.
2In 2020, the MPSC authorized Consumers to accelerate the amortization of the gas portion of its regulatory liability associated with unprotected, non-property-related excess deferred income taxes resulting from the TCJA. This portion of the regulatory liability was fully amortized in 2022.
3In 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 were fully amortized in 2022.
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Current income taxes
Federal$5 $6 $(1)
State and local1 — 1 
$6 $6 $— 
Deferred income taxes
Federal107 4 49 
State and local38 65 49 
$145 $69 $98 
Deferred income tax credit(4)18 (3)
Tax expense$147 $93 $95 
Consumers
Current income taxes
Federal$3 $(2)$(13)
State and local2 8 15 
$5 $6 $2 
Deferred income taxes
Federal117 50 103 
State and local43 66 54 
$160 $116 $157 
Deferred income tax credit(4)18 (3)
Tax expense$161 $140 $156 
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120232022
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$428 $385 
Net regulatory tax liability305 318 
Reserves and accruals28 35 
Total deferred income tax assets$761 $738 
Valuation allowance(2)(2)
Total deferred income tax assets, net of valuation allowance$759 $736 
Deferred income tax liabilities
Plant, property, and equipment$(2,520)$(2,515)
Employee benefits(473)(433)
Gas inventory(66)(53)
Securitized costs(194)(39)
Other(121)(103)
Total deferred income tax liabilities$(3,374)$(3,143)
Total net deferred income tax liabilities$(2,615)$(2,407)
Consumers
Deferred income tax assets
Net regulatory tax liability$305 $318 
Tax loss and credit carryforwards175 145 
Reserves and accruals27 28 
Total deferred income tax assets$507 $491 
Deferred income tax liabilities
Plant, property, and equipment$(2,498)$(2,458)
Employee benefits(459)(423)
Gas inventory(66)(53)
Securitized costs(194)(39)
Other(79)(103)
Total deferred income tax liabilities$(3,296)$(3,076)
Total net deferred income tax liabilities$(2,789)$(2,585)
Deferred tax assets and liabilities are recognized for the estimated future tax effect of temporary differences between the tax basis of assets or liabilities and the reported amounts on CMS Energy’s and Consumers’ consolidated financial statements.
Presented in the following table are the tax loss and credit carryforwards at December 31, 2023:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
State net operating loss carryforwards$69 2030 – 2033
Local net operating loss carryforwards3 2024 – 2040
General business credits356 2035 – 2043
Total tax attributes$428 
Consumers
State net operating loss carryforwards$53 2030 – 2033
General business credits122 2035 – 2043
Total tax attributes$175 
CMS Energy has provided a valuation allowance of $2 million for the local tax loss carryforward. CMS Energy and Consumers expect to utilize fully their tax loss and credit carryforwards for which no valuation allowance has been provided. It is reasonably possible that further adjustments will be made to the valuation allowances within one year.
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Balance at beginning of period$28 $27 $25 
Additions for current-year tax positions1 1 2 
Additions for prior-year tax positions— 1 — 
Reductions for prior-year tax positions(3)(1)— 
Balance at end of period$26 $28 $27 
Consumers
Balance at beginning of period$36 $34 $31 
Additions for current-year tax positions1 3 3 
Additions for prior-year tax positions2 1 — 
Reductions for prior-year tax positions(3)(2)— 
Balance at end of period$36 $36 $34 
If recognized, all of these uncertain tax benefits would affect CMS Energy’s and Consumers’ annual effective tax rates in future years. One uncertain tax benefit relates to the methodology of state apportionment for Consumers’ electricity sales to MISO. The Michigan Tax Tribunal heard oral arguments on this methodology during 2022. A final conclusion is not anticipated in the next 12 months.
CMS Energy and Consumers recognize accrued interest and penalties, where applicable, as part of income tax expense. CMS Energy, including Consumers, recognized no interest or penalties for each of the years ended December 31, 2023, 2022, or 2021.
The amount of income taxes paid is subject to ongoing audits by federal, state, local, and foreign tax authorities, which can result in proposed assessments. CMS Energy’s federal income tax returns for 2020
and subsequent years remain subject to examination by the IRS. CMS Energy’s Michigan Corporate Income Tax returns for 2013-2016 and 2019 and subsequent years remain subject to examination by the State of Michigan. CMS Energy’s and Consumers’ estimate of the potential outcome for any uncertain tax issue is highly judgmental. CMS Energy and Consumers believe that their accrued tax liabilities at December 31, 2023 were adequate for all years.
v3.24.0.1
Earnings Per Share - CMS Energy
 12 Months Ended
Dec. 31, 2023
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
Years Ended December 31202320222021
Income available to common stockholders
Income from continuing operations$807 $809 $728 
Less loss attributable to noncontrolling interests(79)(24)(23)
Less preferred stock dividends10 10 5 
Income from continuing operations available to common stockholders – basic and diluted$876 $823 $746 
Average common shares outstanding
Weighted-average shares – basic291.2 289.5 289.0 
Add dilutive nonvested stock awards0.5 0.3 0.5 
Add dilutive forward equity sale contracts— 0.2 — 
Weighted-average shares – diluted291.7 290.0 289.5 
Income from continuing operations per average common share available to common stockholders
Basic$3.01 $2.84 $2.58 
Diluted3.01 2.84 2.58 
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 4, Financings and Capitalization.
Convertible Securities
In May 2023, CMS Energy issued an aggregate principal amount of $800 million convertible senior notes. Potentially dilutive common shares issuable upon conversion of the convertible senior notes are determined using the if-converted method for calculating diluted EPS. Upon conversion, the convertible senior notes are required to be paid in cash with only amounts exceeding the principal permitted to be settled in shares. The convertible senior notes were anti-dilutive for the year ended December 31, 2023. For further details on CMS Energy’s convertible senior notes, see Note 4, Financings and Capitalization.
v3.24.0.1
Revenue
 12 Months Ended
Dec. 31, 2023
Disaggregation of Revenue [Line Items]  
Revenue Revenue
Presented in the following tables are the components of operating revenue:
In Millions
Year Ended December 31, 2023Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,686 $2,394 $— $7,080 
Other— — 181 181 
Revenue recognized from contracts with customers$4,686 $2,394 $181 $7,261 
Leasing income— — 116 116 
Financing income10 6 — 16 
Consumers alternative-revenue programs49 20 — 69 
Total operating revenue – CMS Energy$4,745 $2,420 $297 $7,462 
Consumers
Consumers utility revenue
Residential$2,236 $1,619 $3,855 
Commercial1,550 489 2,039 
Industrial660 60 720 
Other240 226 466 
Revenue recognized from contracts with customers$4,686 $2,394 $7,080 
Financing income10 6 16 
Alternative-revenue programs49 20 69 
Other non-segment revenue— — 1 
Total operating revenue – Consumers$4,745 $2,420 $7,166 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$5,395 $2,720 $— $8,115 
Other— — 205 205 
Revenue recognized from contracts with customers$5,395 $2,720 $205 $8,320 
Leasing income— — 240 240 
Financing income10 6 — 16 
Consumers alternative-revenue programs43 14 — 57 
Consumers revenues to be refunded(29)(8)— (37)
Total operating revenue – CMS Energy$5,419 $2,732 $445 $8,596 
Consumers
Consumers utility revenue
Residential$2,523 $1,879 $4,402 
Commercial1,733 559 2,292 
Industrial792 75 867 
Other347 207 554 
Revenue recognized from contracts with customers$5,395 $2,720 $8,115 
Financing income10 6 16 
Alternative-revenue programs43 14 57 
Revenues to be refunded(29)(8)(37)
Total operating revenue – Consumers$5,419 $2,732 $8,151 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2021Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,915 $2,046 $— $6,961 
Other— — 114 114 
Revenue recognized from contracts with customers$4,915 $2,046 $114 $7,075 
Leasing income— — 194 194 
Financing income10 5 — 15 
Consumers alternative-revenue programs33 12 — 45 
Total operating revenue – CMS Energy$4,958 $2,063 $308 $7,329 
Consumers
Consumers utility revenue
Residential$2,402 $1,396 $3,798 
Commercial1,573 396 1,969 
Industrial624 54 678 
Other316 200 516 
Revenue recognized from contracts with customers$4,915 $2,046 $6,961 
Financing income10 5 15 
Alternative-revenue programs33 12 45 
Total operating revenue – Consumers$4,958 $2,063 $7,021 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
•Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
•Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
CMS Energy and Consumers recorded uncollectible accounts expense of $34 million for the year ended December 31, 2023, $50 million for the year ended December 31, 2022, and $22 million for the year ended December 31, 2021. Uncollectible accounts expense for the year ended December 31, 2022 included a commitment to contribute $10 million to directly assist vulnerable customers with utility bills.
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 $494 million at December 31, 2023 and $663 million at December 31, 2022.
Alternative‑revenue Programs: Consumers accounts for its energy waste reduction incentive mechanism and financial compensation mechanism as alternative-revenue programs. Consumers recognizes revenue related to the energy waste reduction incentive as soon as energy savings exceed the annual targets established by the MPSC and recognizes revenue related to the financial compensation mechanism as payments are made on MPSC-approved PPAs. For additional information on these mechanisms, see Note 2, Regulatory Matters.
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.
Revenues to Be Refunded: In December 2022, the MPSC issued an order authorizing Consumers to refund $22 million voluntarily to utility customers. Additionally, in the settlement of its 2022 electric rate case, Consumers agreed to refund voluntarily $15 million of 2022 revenues to utility customers through a one‑time bill credit. For additional information, see Note 2, Regulatory Matters.
Consumers Energy Company  
Disaggregation of Revenue [Line Items]  
Revenue Revenue
Presented in the following tables are the components of operating revenue:
In Millions
Year Ended December 31, 2023Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,686 $2,394 $— $7,080 
Other— — 181 181 
Revenue recognized from contracts with customers$4,686 $2,394 $181 $7,261 
Leasing income— — 116 116 
Financing income10 6 — 16 
Consumers alternative-revenue programs49 20 — 69 
Total operating revenue – CMS Energy$4,745 $2,420 $297 $7,462 
Consumers
Consumers utility revenue
Residential$2,236 $1,619 $3,855 
Commercial1,550 489 2,039 
Industrial660 60 720 
Other240 226 466 
Revenue recognized from contracts with customers$4,686 $2,394 $7,080 
Financing income10 6 16 
Alternative-revenue programs49 20 69 
Other non-segment revenue— — 1 
Total operating revenue – Consumers$4,745 $2,420 $7,166 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$5,395 $2,720 $— $8,115 
Other— — 205 205 
Revenue recognized from contracts with customers$5,395 $2,720 $205 $8,320 
Leasing income— — 240 240 
Financing income10 6 — 16 
Consumers alternative-revenue programs43 14 — 57 
Consumers revenues to be refunded(29)(8)— (37)
Total operating revenue – CMS Energy$5,419 $2,732 $445 $8,596 
Consumers
Consumers utility revenue
Residential$2,523 $1,879 $4,402 
Commercial1,733 559 2,292 
Industrial792 75 867 
Other347 207 554 
Revenue recognized from contracts with customers$5,395 $2,720 $8,115 
Financing income10 6 16 
Alternative-revenue programs43 14 57 
Revenues to be refunded(29)(8)(37)
Total operating revenue – Consumers$5,419 $2,732 $8,151 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2021Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,915 $2,046 $— $6,961 
Other— — 114 114 
Revenue recognized from contracts with customers$4,915 $2,046 $114 $7,075 
Leasing income— — 194 194 
Financing income10 5 — 15 
Consumers alternative-revenue programs33 12 — 45 
Total operating revenue – CMS Energy$4,958 $2,063 $308 $7,329 
Consumers
Consumers utility revenue
Residential$2,402 $1,396 $3,798 
Commercial1,573 396 1,969 
Industrial624 54 678 
Other316 200 516 
Revenue recognized from contracts with customers$4,915 $2,046 $6,961 
Financing income10 5 15 
Alternative-revenue programs33 12 45 
Total operating revenue – Consumers$4,958 $2,063 $7,021 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
•Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
•Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
CMS Energy and Consumers recorded uncollectible accounts expense of $34 million for the year ended December 31, 2023, $50 million for the year ended December 31, 2022, and $22 million for the year ended December 31, 2021. Uncollectible accounts expense for the year ended December 31, 2022 included a commitment to contribute $10 million to directly assist vulnerable customers with utility bills.
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 $494 million at December 31, 2023 and $663 million at December 31, 2022.
Alternative‑revenue Programs: Consumers accounts for its energy waste reduction incentive mechanism and financial compensation mechanism as alternative-revenue programs. Consumers recognizes revenue related to the energy waste reduction incentive as soon as energy savings exceed the annual targets established by the MPSC and recognizes revenue related to the financial compensation mechanism as payments are made on MPSC-approved PPAs. For additional information on these mechanisms, see Note 2, Regulatory Matters.
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.
Revenues to Be Refunded: In December 2022, the MPSC issued an order authorizing Consumers to refund $22 million voluntarily to utility customers. Additionally, in the settlement of its 2022 electric rate case, Consumers agreed to refund voluntarily $15 million of 2022 revenues to utility customers through a one‑time bill credit. For additional information, see Note 2, Regulatory Matters.
v3.24.0.1
Other Income and Other Expense
 12 Months Ended
Dec. 31, 2023
Other Income and Expenses [Line Items]  
Other Income and Other Expense Other Income and Other Expense
Presented in the following table are the components of other income and other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Other income
Gain on extinguishment of debt1
$131 $— $— 
Interest income37 5 3 
Allowance for equity funds used during construction7 6 8 
Income from equity method investees7 3 10 
All other13 5 9 
Total other income – CMS Energy$195 $19 $30 
Consumers
Other income
Interest income$25 $2 $2 
Interest income - related parties5 5 5 
Allowance for equity funds used during construction7 6 8 
All other12 4 8 
Total other income – Consumers$49 $17 $23 
CMS Energy, including Consumers
Other expense
Donations$(1)$(9)$(6)
Civic and political expenditures(5)(6)(5)
All other(7)(12)(7)
Total other expense – CMS Energy$(13)$(27)$(18)
Consumers
Other expense
Donations$(1)$(9)$(6)
Civic and political expenditures(5)(6)(5)
All other(6)(10)(7)
Total other expense – Consumers$(12)$(25)$(18)
1For information regarding the gain on extinguishment of debt, see Note 4, Financings and Capitalization—CMS Energy’s Purchase of Consumers’ First Mortgage Bonds.
Consumers Energy Company  
Other Income and Expenses [Line Items]  
Other Income and Other Expense Other Income and Other Expense
Presented in the following table are the components of other income and other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Other income
Gain on extinguishment of debt1
$131 $— $— 
Interest income37 5 3 
Allowance for equity funds used during construction7 6 8 
Income from equity method investees7 3 10 
All other13 5 9 
Total other income – CMS Energy$195 $19 $30 
Consumers
Other income
Interest income$25 $2 $2 
Interest income - related parties5 5 5 
Allowance for equity funds used during construction7 6 8 
All other12 4 8 
Total other income – Consumers$49 $17 $23 
CMS Energy, including Consumers
Other expense
Donations$(1)$(9)$(6)
Civic and political expenditures(5)(6)(5)
All other(7)(12)(7)
Total other expense – CMS Energy$(13)$(27)$(18)
Consumers
Other expense
Donations$(1)$(9)$(6)
Civic and political expenditures(5)(6)(5)
All other(6)(10)(7)
Total other expense – Consumers$(12)$(25)$(18)
1For information regarding the gain on extinguishment of debt, see Note 4, Financings and Capitalization—CMS Energy’s Purchase of Consumers’ First Mortgage Bonds.
v3.24.0.1
Reportable Segments
 12 Months Ended
Dec. 31, 2023
Segment Reporting Information [Line Items]  
Reportable Segments Reportable Segments
Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders.
Accounting policies for CMS Energy’s and Consumers’ segments are as described in Note 1, Significant Accounting Policies. The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of the individual segments when appropriate. Accounts are allocated among the segments when common accounts are attributable to more than one segment. The allocations are based on certain measures of business activities, such as revenue, labor dollars, customers, other operating and maintenance expense, construction expense, leased property, taxes, or functional surveys. For example, customer receivables are allocated based on revenue, and pension provisions are allocated based on labor dollars.
Inter-segment sales and transfers are accounted for at current market prices and are eliminated in consolidated net income available to common stockholders by segment. Inter-segment sales and transfers were immaterial for all periods presented.
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
•NorthStar Clean Energy, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production
CMS Energy presents 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
Years Ended December 31202320222021
CMS Energy, including Consumers
Operating revenue
Electric utility$4,745 $5,419 $4,958 
Gas utility2,420 2,732 2,063 
NorthStar Clean Energy297 445 308 
Total operating revenue – CMS Energy$7,462 $8,596 $7,329 
Consumers
Operating revenue
Electric utility$4,745 $5,419 $4,958 
Gas utility2,420 2,732 2,063 
Other reconciling items1 — — 
Total operating revenue – Consumers$7,166 $8,151 $7,021 
CMS Energy, including Consumers
Depreciation and amortization
Electric utility$797 $757 $772 
Gas utility338 330 304 
NorthStar Clean Energy43 38 37 
Other reconciling items2 1 1 
Total depreciation and amortization – CMS Energy$1,180 $1,126 $1,114 
Consumers
Depreciation and amortization
Electric utility$797 $757 $772 
Gas utility338 330 304 
Other reconciling items2 1 1 
Total depreciation and amortization – Consumers$1,137 $1,088 $1,077 
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Income from equity method investees1
NorthStar Clean Energy$7 $3 $10 
Total income from equity method investees – CMS Energy$7 $3 $10 
CMS Energy, including Consumers
Interest charges
Electric utility$281 $218 $207 
Gas utility158 116 104 
NorthStar Clean Energy2 3 6 
Other reconciling items202 182 183 
Total interest charges – CMS Energy$643 $519 $500 
Consumers
Interest charges
Electric utility$285 $218 $207 
Gas utility161 116 104 
Other reconciling items2 1 — 
Total interest charges – Consumers$448 $335 $311 
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility$67 $109 $117 
Gas utility98 32 39 
NorthStar Clean Energy4 3 (2)
Other reconciling items(22)(51)(59)
Total income tax expense – CMS Energy$147 $93 $95 
Consumers
Income tax expense (benefit)
Electric utility$67 $109 $117 
Gas utility98 32 39 
Other reconciling items(4)(1)— 
Total income tax expense – Consumers$161 $140 $156 
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$550 $567 $565 
Gas utility315 378 302 
NorthStar Clean Energy67 34 23 
Other reconciling items(55)(152)458 
Total net income available to common stockholders – CMS Energy$877 $827 $1,348 
Consumers
Net income (loss) available to common stockholder
Electric utility$550 $567 $565 
Gas utility315 378 302 
Other reconciling items— (2)(1)
Total net income available to common stockholder – Consumers$865 $943 $866 
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2
$19,302 $17,870 $18,147 
Gas utility2
12,383 11,443 10,601 
NorthStar Clean Energy1,420 1,148 1,122 
Other reconciling items30 30 23 
Total plant, property, and equipment, gross – CMS Energy$33,135 $30,491 $29,893 
Consumers
Plant, property, and equipment, gross
Electric utility2
$19,302 $17,870 $18,147 
Gas utility2
12,383 11,443 10,601 
Other reconciling items38 29 23 
Total plant, property, and equipment, gross – Consumers$31,723 $29,342 $28,771 
CMS Energy, including Consumers
Investments in equity method investees1
NorthStar Clean Energy$76 $71 $71 
Total investments in equity method investees – CMS Energy$76 $71 $71 
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Total assets
Electric utility2
$19,358 $17,907 $16,493 
Gas utility2
12,353 11,873 10,517 
NorthStar Clean Energy1,604 1,464 1,312 
Other reconciling items202 109 431 
Total assets – CMS Energy$33,517 $31,353 $28,753 
Consumers
Total assets
Electric utility2
$19,417 $17,968 $16,555 
Gas utility2
12,397 11,918 10,564 
Other reconciling items38 30 21 
Total assets – Consumers$31,852 $29,916 $27,140 
CMS Energy, including Consumers
Capital expenditures3
Electric utility4
$2,081 $1,265 $1,153 
Gas utility4
1,041 1,008 989 
NorthStar Clean Energy156 113 17 
Other reconciling items2 7 2 
Total capital expenditures – CMS Energy$3,280 $2,393 $2,161 
Consumers
Capital expenditures3
Electric utility4
$2,081 $1,265 $1,153 
Gas utility4
1,041 1,008 989 
Other reconciling items23 7 2 
Total capital expenditures – Consumers$3,145 $2,280 $2,144 
1Consumers had no equity method investments.
2Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
3Amounts include assets placed under finance lease.
4Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
Consumers Energy Company  
Segment Reporting Information [Line Items]  
Reportable Segments Reportable Segments
Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders.
Accounting policies for CMS Energy’s and Consumers’ segments are as described in Note 1, Significant Accounting Policies. The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of the individual segments when appropriate. Accounts are allocated among the segments when common accounts are attributable to more than one segment. The allocations are based on certain measures of business activities, such as revenue, labor dollars, customers, other operating and maintenance expense, construction expense, leased property, taxes, or functional surveys. For example, customer receivables are allocated based on revenue, and pension provisions are allocated based on labor dollars.
Inter-segment sales and transfers are accounted for at current market prices and are eliminated in consolidated net income available to common stockholders by segment. Inter-segment sales and transfers were immaterial for all periods presented.
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
•NorthStar Clean Energy, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production
CMS Energy presents 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
Years Ended December 31202320222021
CMS Energy, including Consumers
Operating revenue
Electric utility$4,745 $5,419 $4,958 
Gas utility2,420 2,732 2,063 
NorthStar Clean Energy297 445 308 
Total operating revenue – CMS Energy$7,462 $8,596 $7,329 
Consumers
Operating revenue
Electric utility$4,745 $5,419 $4,958 
Gas utility2,420 2,732 2,063 
Other reconciling items1 — — 
Total operating revenue – Consumers$7,166 $8,151 $7,021 
CMS Energy, including Consumers
Depreciation and amortization
Electric utility$797 $757 $772 
Gas utility338 330 304 
NorthStar Clean Energy43 38 37 
Other reconciling items2 1 1 
Total depreciation and amortization – CMS Energy$1,180 $1,126 $1,114 
Consumers
Depreciation and amortization
Electric utility$797 $757 $772 
Gas utility338 330 304 
Other reconciling items2 1 1 
Total depreciation and amortization – Consumers$1,137 $1,088 $1,077 
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Income from equity method investees1
NorthStar Clean Energy$7 $3 $10 
Total income from equity method investees – CMS Energy$7 $3 $10 
CMS Energy, including Consumers
Interest charges
Electric utility$281 $218 $207 
Gas utility158 116 104 
NorthStar Clean Energy2 3 6 
Other reconciling items202 182 183 
Total interest charges – CMS Energy$643 $519 $500 
Consumers
Interest charges
Electric utility$285 $218 $207 
Gas utility161 116 104 
Other reconciling items2 1 — 
Total interest charges – Consumers$448 $335 $311 
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility$67 $109 $117 
Gas utility98 32 39 
NorthStar Clean Energy4 3 (2)
Other reconciling items(22)(51)(59)
Total income tax expense – CMS Energy$147 $93 $95 
Consumers
Income tax expense (benefit)
Electric utility$67 $109 $117 
Gas utility98 32 39 
Other reconciling items(4)(1)— 
Total income tax expense – Consumers$161 $140 $156 
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$550 $567 $565 
Gas utility315 378 302 
NorthStar Clean Energy67 34 23 
Other reconciling items(55)(152)458 
Total net income available to common stockholders – CMS Energy$877 $827 $1,348 
Consumers
Net income (loss) available to common stockholder
Electric utility$550 $567 $565 
Gas utility315 378 302 
Other reconciling items— (2)(1)
Total net income available to common stockholder – Consumers$865 $943 $866 
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2
$19,302 $17,870 $18,147 
Gas utility2
12,383 11,443 10,601 
NorthStar Clean Energy1,420 1,148 1,122 
Other reconciling items30 30 23 
Total plant, property, and equipment, gross – CMS Energy$33,135 $30,491 $29,893 
Consumers
Plant, property, and equipment, gross
Electric utility2
$19,302 $17,870 $18,147 
Gas utility2
12,383 11,443 10,601 
Other reconciling items38 29 23 
Total plant, property, and equipment, gross – Consumers$31,723 $29,342 $28,771 
CMS Energy, including Consumers
Investments in equity method investees1
NorthStar Clean Energy$76 $71 $71 
Total investments in equity method investees – CMS Energy$76 $71 $71 
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Total assets
Electric utility2
$19,358 $17,907 $16,493 
Gas utility2
12,353 11,873 10,517 
NorthStar Clean Energy1,604 1,464 1,312 
Other reconciling items202 109 431 
Total assets – CMS Energy$33,517 $31,353 $28,753 
Consumers
Total assets
Electric utility2
$19,417 $17,968 $16,555 
Gas utility2
12,397 11,918 10,564 
Other reconciling items38 30 21 
Total assets – Consumers$31,852 $29,916 $27,140 
CMS Energy, including Consumers
Capital expenditures3
Electric utility4
$2,081 $1,265 $1,153 
Gas utility4
1,041 1,008 989 
NorthStar Clean Energy156 113 17 
Other reconciling items2 7 2 
Total capital expenditures – CMS Energy$3,280 $2,393 $2,161 
Consumers
Capital expenditures3
Electric utility4
$2,081 $1,265 $1,153 
Gas utility4
1,041 1,008 989 
Other reconciling items23 7 2 
Total capital expenditures – Consumers$3,145 $2,280 $2,144 
1Consumers had no equity method investments.
2Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
3Amounts include assets placed under finance lease.
4Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
v3.24.0.1
Related party Transactions - Consumers
 12 Months Ended
Dec. 31, 2023
Consumers Energy Company  
Related Party Transaction [Line Items]  
Related party Transactions - Consumers Related-party Transactions—Consumers
Consumers enters into a number of transactions with related parties in the normal course of business. These transactions include but are not limited to:
•purchases of electricity from affiliates of NorthStar Clean Energy
•payments to and from CMS Energy related to parent company overhead costs
•payments of principal and interest when due to CMS Energy related to borrowings under certain credit agreements and CMS Energy’s repurchase of Consumers’ first mortgage bonds
Transactions involving power supply purchases from certain affiliates of NorthStar Clean Energy are based on avoided costs under PURPA, state law, and competitive bidding. The payment of parent company overhead costs is based on the use of accepted industry allocation methodologies. These payments are for costs that occur in the normal course of business.
Presented in the following table is Consumers’ expense recorded from related-party transactions for the years ended December 31:
In Millions
DescriptionRelated Party202320222021
Purchases of capacity and energyAffiliates of NorthStar Clean Energy$75 $76 $77 
Amounts payable to related parties for purchased power and other services were $19 million at December 31, 2023 and $20 million at December 31, 2022. Accounts receivable from related parties were $9 million at December 31, 2023 and $8 million at December 31, 2022.
CMS Energy has a demand note payable 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. The portion of the demand note attributable to Consumers was recorded as a note receivable – related party on Consumers’ consolidated balance sheets at December 31, 2023 and 2022.
Consumers has a natural gas transportation agreement with a subsidiary of CMS Energy that extends through 2038, related to a pipeline owned by Consumers. For additional details about the agreement, see Note 8, Leases.
During 2023, CMS Energy repurchased certain of Consumers’ first mortgage bonds. For more information about these repurchases, see Note 4, Financings and Capitalization—CMS Energy’s Purchase of Consumers’ First Mortgage Bonds.
In November 2023, an unregulated subsidiary of Consumers sold certain non-utility renewable development projects to NorthStar Clean Energy for $20 million, the projects’ net book value; there was no gain or loss recognized on this sale.
In December 2023, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million. For additional details about the agreement, see Note 4, Financings and Capitalization—Short-term Borrowings
v3.24.0.1
Variable Interest Entities
 12 Months Ended
Dec. 31, 2023
Variable Interest Entity [Line Items]  
Variable Interest Entities Variable Interest Entities
Consolidated VIEs: During 2023, NorthStar Clean Energy sold a Class A membership interest in Newport Solar Holdings to tax equity investors for $86 million. Newport Solar Holdings wholly owns Newport Solar, a 180‑MW solar generation project located in Jackson County, Arkansas; the project began commercial operation in October 2023.
NorthStar Clean Energy holds a Class B membership interest in NWO Holdco, which wholly owns Northwest Ohio Wind, LLC, a 100‑MW wind generation project in Paulding County, Ohio. The Class A membership interest in NWO Holdco is held by a tax equity investor.
NorthStar Clean Energy has a 51-percent ownership interest in Aviator Wind Equity Holdings, which holds a Class B membership interest in Aviator Wind, the holding company of 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.
Earnings, tax attributes, and cash flows generated by Newport Solar Holdings, NWO Holdco, and Aviator Wind are allocated among and distributed to the membership classes in accordance with the ratios specified in the associated limited liability company agreements; these ratios change over time and are not representative of the ownership interest percentages of each membership class. Since these entities’ income and cash flows are not distributed among their investors based on ownership interest percentages, NorthStar Clean Energy allocates the entities’ income (loss) among the investors by applying the hypothetical liquidation at book value method. This method calculates each investor’s earnings based on a hypothetical liquidation of the entities at the net book value of underlying assets as of the balance sheet date. The liquidation tax gain (loss) is allocated to each investor’s capital account, resulting in income (loss) equal to the period change in the investor’s capital account balance.
Newport Solar Holdings, NWO Holdco, Aviator Wind Equity Holdings, and Aviator Wind are VIEs. In accordance with the associated limited liability company agreements, the tax equity investors are guaranteed preferred returns from these entities. However, NorthStar Clean Energy manages and controls the entities’ operating activities. As a result, NorthStar Clean Energy is the primary beneficiary, 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. NorthStar Clean Energy consolidates Newport Solar Holdings, NWO Holdco, Aviator Wind Equity Holdings, and Aviator Wind and presents the Class A membership interests and 49 percent of Aviator Wind Equity Holdings 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
December 3120232022
Current
Cash and cash equivalents$28 $43 
Accounts receivable3 7 
Prepayments and other current assets4 7 
Non-current
Plant, property, and equipment, net1,064 850 
Construction work in progress— 156 
Other non-current assets3 — 
Total assets1
$1,102 $1,063 
Current
Current portion of long-term debt$— $100 
Accounts payable12 33 
Non-current
Non-current portion of finance leases23 23 
Asset retirement obligations32 24 
Total liabilities$67 $180 
1Assets may be used only to meet VIEs’ obligations and commitments.
NorthStar Clean Energy is obligated under certain indemnities that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. For additional details on these indemnity obligations, see Note 3, Contingencies and Commitments—Guarantees.
Consumers’ wholly-owned subsidiaries, Consumers 2014 Securitization Funding and Consumers 2023 Securitization Funding, are VIEs designed to collateralize Consumers’ securitization bonds. These entities are considered VIEs primarily because their equity capitalization is insufficient to support their operations. Consumers is the primary beneficiary of and consolidates these VIEs, 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. The VIEs’ primary assets and liabilities comprise regulatory assets and long-term debt. For more information on these assets and liabilities, see Note 2, Regulatory Matters— Securitized Costs and Note 4, Financings and Capitalization—Securitization Bonds.
Non-consolidated 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’s maximum risk exposure to these partnerships is generally limited to its investment in the partnerships, which is included in investments on its consolidated balance sheets in the amount of $74 million at December 31, 2023 and $71 million at December 31, 2022.
Consumers Energy Company  
Variable Interest Entity [Line Items]  
Variable Interest Entities Variable Interest Entities
Consolidated VIEs: During 2023, NorthStar Clean Energy sold a Class A membership interest in Newport Solar Holdings to tax equity investors for $86 million. Newport Solar Holdings wholly owns Newport Solar, a 180‑MW solar generation project located in Jackson County, Arkansas; the project began commercial operation in October 2023.
NorthStar Clean Energy holds a Class B membership interest in NWO Holdco, which wholly owns Northwest Ohio Wind, LLC, a 100‑MW wind generation project in Paulding County, Ohio. The Class A membership interest in NWO Holdco is held by a tax equity investor.
NorthStar Clean Energy has a 51-percent ownership interest in Aviator Wind Equity Holdings, which holds a Class B membership interest in Aviator Wind, the holding company of 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.
Earnings, tax attributes, and cash flows generated by Newport Solar Holdings, NWO Holdco, and Aviator Wind are allocated among and distributed to the membership classes in accordance with the ratios specified in the associated limited liability company agreements; these ratios change over time and are not representative of the ownership interest percentages of each membership class. Since these entities’ income and cash flows are not distributed among their investors based on ownership interest percentages, NorthStar Clean Energy allocates the entities’ income (loss) among the investors by applying the hypothetical liquidation at book value method. This method calculates each investor’s earnings based on a hypothetical liquidation of the entities at the net book value of underlying assets as of the balance sheet date. The liquidation tax gain (loss) is allocated to each investor’s capital account, resulting in income (loss) equal to the period change in the investor’s capital account balance.
Newport Solar Holdings, NWO Holdco, Aviator Wind Equity Holdings, and Aviator Wind are VIEs. In accordance with the associated limited liability company agreements, the tax equity investors are guaranteed preferred returns from these entities. However, NorthStar Clean Energy manages and controls the entities’ operating activities. As a result, NorthStar Clean Energy is the primary beneficiary, 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. NorthStar Clean Energy consolidates Newport Solar Holdings, NWO Holdco, Aviator Wind Equity Holdings, and Aviator Wind and presents the Class A membership interests and 49 percent of Aviator Wind Equity Holdings 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
December 3120232022
Current
Cash and cash equivalents$28 $43 
Accounts receivable3 7 
Prepayments and other current assets4 7 
Non-current
Plant, property, and equipment, net1,064 850 
Construction work in progress— 156 
Other non-current assets3 — 
Total assets1
$1,102 $1,063 
Current
Current portion of long-term debt$— $100 
Accounts payable12 33 
Non-current
Non-current portion of finance leases23 23 
Asset retirement obligations32 24 
Total liabilities$67 $180 
1Assets may be used only to meet VIEs’ obligations and commitments.
NorthStar Clean Energy is obligated under certain indemnities that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. For additional details on these indemnity obligations, see Note 3, Contingencies and Commitments—Guarantees.
Consumers’ wholly-owned subsidiaries, Consumers 2014 Securitization Funding and Consumers 2023 Securitization Funding, are VIEs designed to collateralize Consumers’ securitization bonds. These entities are considered VIEs primarily because their equity capitalization is insufficient to support their operations. Consumers is the primary beneficiary of and consolidates these VIEs, 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. The VIEs’ primary assets and liabilities comprise regulatory assets and long-term debt. For more information on these assets and liabilities, see Note 2, Regulatory Matters— Securitized Costs and Note 4, Financings and Capitalization—Securitization Bonds.
Non-consolidated 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’s maximum risk exposure to these partnerships is generally limited to its investment in the partnerships, which is included in investments on its consolidated balance sheets in the amount of $74 million at December 31, 2023 and $71 million at December 31, 2022.
v3.24.0.1
Exit Activities and Discontinued Operations
 12 Months Ended
Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]  
Exit Activities and Discontinued Operations Exit Activities and Discontinued Operations
Exit Activities: In accordance with its Clean Energy Plan, Consumers retired the D.E. Karn coal-fueled electric generating units in June 2023 and plans to retire the J.H. Campbell coal-fueled generating units in 2025. In order to ensure necessary staffing at both D.E. Karn and J.H. Campbell through retirement, Consumers has implemented retention incentive programs. The aggregate cost of the D.E. Karn program, which is now complete, was $32 million. The aggregate cost of the J.H. Campbell program through 2025 is estimated to be $50 million. The MPSC has approved deferred accounting treatment for these costs; these expenses are deferred as a regulatory asset.
As of December 31, 2023, the cumulative cost incurred and charged to maintenance and other operating expenses related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million was capitalized as a cost of plant, property, and equipment and an amount of $12 million was deferred as a regulatory asset. The cumulative cost incurred and deferred as a regulatory asset related to the J.H. Campbell retention incentive program was $35 million. The regulatory assets for both programs will be collected from customers over three years.
Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Years Ended December 3120232022
Retention benefit liability at beginning of period$21 $14 
Costs deferred as a regulatory asset
16 24 
Costs paid or settled(21)(17)
Retention benefit liability at the end of the period1
$16 $21 
1Includes current portion of other liabilities of $7 million at December 31, 2023 and $13 million at December 31, 2022.
Discontinued Operations: In 2021, EnerBank was acquired by a non-affiliated company. CMS Energy received proceeds of over $1.0 billion from the transaction and recognized a pre-tax gain of $657 million in 2021. In March 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 $5 million during 2022.
EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the year ended December 31, 2021. The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Years Ended December 3120222021
Operating revenue$— $209 
Expenses
Operating expenses— 60 
Interest expense— 34 
Income before income taxes$— $115 
Gain on sale5 657 
Income from discontinued operations before income taxes$5 $772 
Income tax expense1 170 
Income from discontinued operations, net of tax$4 $602 
Consumers Energy Company  
Restructuring Cost and Reserve [Line Items]  
Exit Activities and Discontinued Operations Exit Activities and Discontinued Operations
Exit Activities: In accordance with its Clean Energy Plan, Consumers retired the D.E. Karn coal-fueled electric generating units in June 2023 and plans to retire the J.H. Campbell coal-fueled generating units in 2025. In order to ensure necessary staffing at both D.E. Karn and J.H. Campbell through retirement, Consumers has implemented retention incentive programs. The aggregate cost of the D.E. Karn program, which is now complete, was $32 million. The aggregate cost of the J.H. Campbell program through 2025 is estimated to be $50 million. The MPSC has approved deferred accounting treatment for these costs; these expenses are deferred as a regulatory asset.
As of December 31, 2023, the cumulative cost incurred and charged to maintenance and other operating expenses related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million was capitalized as a cost of plant, property, and equipment and an amount of $12 million was deferred as a regulatory asset. The cumulative cost incurred and deferred as a regulatory asset related to the J.H. Campbell retention incentive program was $35 million. The regulatory assets for both programs will be collected from customers over three years.
Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Years Ended December 3120232022
Retention benefit liability at beginning of period$21 $14 
Costs deferred as a regulatory asset
16 24 
Costs paid or settled(21)(17)
Retention benefit liability at the end of the period1
$16 $21 
1Includes current portion of other liabilities of $7 million at December 31, 2023 and $13 million at December 31, 2022.
Discontinued Operations: In 2021, EnerBank was acquired by a non-affiliated company. CMS Energy received proceeds of over $1.0 billion from the transaction and recognized a pre-tax gain of $657 million in 2021. In March 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 $5 million during 2022.
EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the year ended December 31, 2021. The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Years Ended December 3120222021
Operating revenue$— $209 
Expenses
Operating expenses— 60 
Interest expense— 34 
Income before income taxes$— $115 
Gain on sale5 657 
Income from discontinued operations before income taxes$5 $772 
Income tax expense1 170 
Income from discontinued operations, net of tax$4 $602 
v3.24.0.1
Schedule I - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]  
Schedule I - Condensed Financial Information of Registrant
Condensed Statements of Income
In Millions
Years Ended December 31202320222021
Operating Expenses
Other operating expenses$10 $7 $7 
Total operating expenses10 7 7 
Operating Loss(10)(7)(7)
Other Income (Expense)
Equity earnings of subsidiaries929 980 1,482 
Nonoperating retirement benefits, net(1)(1)(1)
Other income31 5 2 
Other expense— (1)— 
Total other income959 983 1,483 
Interest Charges
Interest on long-term debt201 181 183 
Intercompany interest expense and other10 8 7 
Total interest charges211 189 190 
Income Before Income Taxes738 787 1,286 
Income Tax Benefit(20)(50)(60)
Income From Continuing Operations758 837 1,346 
Income From Discontinued Operations, Net of Tax of $—, $—, and $(5)
— — 7 
Net Income Attributable to CMS Energy758 837 1,353 
Preferred Stock Dividends10 10 5 
Net Income Available to Common Stockholders$748 $827 $1,348 
The accompanying notes are an integral part of these statements.
CMS Energy—Parent Company
Condensed Statements of Cash Flows
In Millions
Years Ended December 31202320222021
Cash Flows from Operating Activities
Net cash provided by operating activities$595 $565 $1,549 
Cash Flows from Investing Activities
Investment in subsidiaries(630)(796)(581)
Investment in debt securities - intercompany(293)— — 
Decrease (increase) in notes receivable – intercompany55 286 (83)
Net cash used in investing activities(868)(510)(664)
Cash Flows from Financing Activities
Proceeds from issuance of debt800 — — 
Issuance of common stock192 69 26 
Issuance of preferred stock— — 224 
Retirement of long-term debt— — (200)
Payment of dividends on common and preferred stock(579)(544)(507)
Debt issuance costs and financing fees(20)(11)(10)
Change in notes payable – intercompany(7)77 (28)
Net cash provided by (used in) financing activities386 (409)(495)
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts113 (354)390 
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period36 390 — 
Cash and Cash Equivalents, Including Restricted Amounts, End of Period$149 $36 $390 
The accompanying notes are an integral part of these statements.
CMS Energy—Parent Company
Condensed Balance Sheets
ASSETS
In Millions
December 3120232022
Current Assets
Cash and cash equivalents$149 $36 
Notes and accrued interest receivable – intercompany60 107 
Accounts receivable – intercompany and related parties9 8 
Taxes receivable11 45 
Prepayments and other current assets— 1 
Total current assets229 197 
Other Non‑current Assets
Deferred income taxes137 105 
Investments in subsidiaries11,701 10,881 
Investment in debt securities – intercompany296 — 
Other investments 8 6 
Other24 11 
Total other non‑current assets12,166 11,003 
Total Assets$12,395 $11,200 
LIABILITIES AND EQUITY
In Millions
December 3120232022
Current Liabilities
Current portion of long-term debt$250 $— 
Accounts and notes payable – intercompany75 74 
Accrued interest, including intercompany37 33 
Other current liabilities9 9 
Total current liabilities371 116 
Non‑current Liabilities
Long-term debt4,471 3,930 
Notes payable – intercompany105 109 
Postretirement benefits15 15 
Other non‑current liabilities18 15 
Total non‑current liabilities4,609 4,069 
Equity
Common stock3 3 
Other stockholders' equity7,188 6,788 
Total common stockholders’ equity7,191 6,791 
Preferred stock224 224 
Total equity7,415 7,015 
Total Liabilities and Equity$12,395 $11,200 
The accompanying notes are an integral part of these statements.
Basis of Presentation
CMS Energy’s condensed financial statements have been prepared on a parent-only basis. In accordance with Rule 12‑04 of Regulation S‑X, these parent-only financial statements do not include all of the information and notes required by GAAP for annual financial statements, and therefore these parent-only financial statements and other information included should be read in conjunction with CMS Energy’s audited consolidated financial statements contained within Item 8. Financial Statements and Supplementary Data.
Guarantees
CMS Energy has issued guarantees with a maximum potential obligation of $886 million on behalf of some of its wholly owned subsidiaries and related parties. CMS Energy’s maximum potential obligation consists primarily of potential payments:
•to third parties under certain commodity purchase and sales agreements entered into by CMS ERM and other subsidiaries of NorthStar Clean Energy
•to tax equity investors that hold membership interests in certain VIEs held by NorthStar Clean Energy
•to EGLE on behalf of CMS Land and CMS Capital, for environmental remediation obligations at Bay Harbor
•to the U.S. Department of Energy on behalf of Consumers, in connection with Consumers’ 2011 settlement agreement with the U.S. Department of Energy regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers
The expiration dates of these guarantees vary, depending upon contractual provisions or upon the statute of limitations under the relevant governing law.
v3.24.0.1
Schedule II - Valuation and Qualifying Accounts and Reserves
 12 Months Ended
Dec. 31, 2023
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]  
Schedule II - Valuation and Qualifying Accounts and Reserves
CMS Energy Corporation
Years Ended December 31, 2023, 2022, and 2021
In Millions
DescriptionBalance at Beginning of PeriodCharged to Expense
Charged to Other Accounts
DeductionsBalance at End of Period
Allowance for uncollectible accounts1
2023$27 $34 $— $40 $21 
202220 50 — 43 27 
202129 22 — 31 20 
Deferred tax valuation allowance
2023$2 $— $— $— $2 
20222 — — — 2 
20211 1 — — 2 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
Consumers Energy Company
Years Ended December 31, 2023, 2022, and 2021
In Millions
DescriptionBalance at Beginning of PeriodCharged to ExpenseCharged to Other AccountsDeductionsBalance at End of Period
Allowance for uncollectible accounts1
2023$27 $34 $— $40 $21 
202220 50 — 43 27 
202129 22 — 31 20 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
Consumers Energy Company  
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]  
Schedule II - Valuation and Qualifying Accounts and Reserves
CMS Energy Corporation
Years Ended December 31, 2023, 2022, and 2021
In Millions
DescriptionBalance at Beginning of PeriodCharged to Expense
Charged to Other Accounts
DeductionsBalance at End of Period
Allowance for uncollectible accounts1
2023$27 $34 $— $40 $21 
202220 50 — 43 27 
202129 22 — 31 20 
Deferred tax valuation allowance
2023$2 $— $— $— $2 
20222 — — — 2 
20211 1 — — 2 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
Consumers Energy Company
Years Ended December 31, 2023, 2022, and 2021
In Millions
DescriptionBalance at Beginning of PeriodCharged to ExpenseCharged to Other AccountsDeductionsBalance at End of Period
Allowance for uncollectible accounts1
2023$27 $34 $— $40 $21 
202220 50 — 43 27 
202129 22 — 31 20 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
v3.24.0.1
Significant Accounting Policies (Policy)
 12 Months Ended
Dec. 31, 2023
Significant Accounting Policies [Line Items]  
Principles of Consolidation
Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, NorthStar Clean Energy, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances.
Use of Estimates
Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and Cash Equivalents and Restricted 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 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.
Restricted Cash and Cash Equivalents
Cash and Cash Equivalents and Restricted 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 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.
Contingencies
Contingencies: CMS Energy and Consumers record estimated loss contingencies on their consolidated financial statements when it is probable that a loss has been incurred and when the amount of loss can be reasonably estimated. For environmental remediation projects in which the timing of estimated expenditures is considered reliably determinable, CMS Energy and Consumers record the liability at its net present value, using a discount rate equal to the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability. Unless regulatory accounting applies, CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed.
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: Upon the issuance of long-term debt, CMS Energy and Consumers defer issuance costs, discounts, and premiums and amortize those amounts over the terms of the associated debt. Debt issuance costs are presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Upon the refinancing of long-term debt, Consumers, as a regulated entity, defers any remaining unamortized issuance costs, discounts, and premiums associated with the refinanced debt and amortizes those amounts over the term of the newly issued debt. For the non‑regulated portions of CMS Energy’s business, any remaining unamortized issuance costs, discounts, and premiums associated with extinguished debt are charged to earnings.
Derivative Instruments
Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers may enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the
commodity at a contracted price. Most of these contracts are not subject to derivative accounting for one or more of the following reasons:
•they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas)
•they qualify for the normal purchases and sales exception
•they cannot be net settled due in part to the absence of an active market for the commodity
Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives and changes in the fair value of FTRs are deferred as regulatory assets or liabilities. For details regarding CMS Energy’s and Consumers’ derivative instruments recorded at fair value, see Note 5, Fair Value Measurements.
EPS
EPS: CMS Energy calculates basic and diluted EPS using the weighted-average number of shares of common stock and dilutive potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted EPS, includes the effects of nonvested stock awards, forward equity sales, and convertible securities. CMS Energy computes the effect on potential common stock using the treasury stock method. Potentially dilutive common shares issuable upon conversion of the convertible senior notes are determined using the if-converted method for calculating diluted EPS. Diluted EPS excludes the impact of antidilutive securities, which are those securities resulting in an increase in EPS or a decrease in loss per share. For EPS computations, see Note 13, Earnings Per Share—CMS Energy.
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 4, Financings and Capitalization.
Convertible Securities
In May 2023, CMS Energy issued an aggregate principal amount of $800 million convertible senior notes. Potentially dilutive common shares issuable upon conversion of the convertible senior notes are determined using the if-converted method for calculating diluted EPS. Upon conversion, the convertible senior notes are required to be paid in cash with only amounts exceeding the principal permitted to be settled in shares. The convertible senior notes were anti-dilutive for the year ended December 31, 2023. For further details on CMS Energy’s convertible senior notes, see Note 4, Financings and Capitalization.
Impairment of Long-Lived Assets
Impairment of Long-lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur that indicate the carrying amount of an asset may not be recoverable or that there has been a decline in value that may be other than temporary.
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses.
Impairment of Equity Method Investments
CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary.
Investment Tax Credits Investment Tax Credits: CMS Energy and its subsidiaries use the flow-through method of accounting for investment tax credits. Under the flow-through method, the credit is recognized as a reduction to income tax expense when the related plant, property, and equipment is placed into service. For its regulated utility assets, Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment.
Inventory - Gas and Coal
Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy
and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets.
Inventory - RECs and Emission Allowances
CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. CMS Energy and Consumers classify these amounts within other assets on their consolidated balance sheets.
Inventory - Impairment
CMS Energy and Consumers evaluate inventory for impairment as required to ensure that its carrying value does not exceed the lower of cost or net realizable value.
MISO Transactions
MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements.
Property Taxes
Property Taxes: Property taxes are based on the taxable value of CMS Energy’s and Consumers’ real and personal property assessed by local taxing authorities. CMS Energy and Consumers record property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of CMS Energy’s and Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
Other: For additional accounting policies, see:
Capitalization
Capitalization: CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general ratemaking process.
Software: CMS Energy and Consumers capitalize the costs to purchase and develop internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware.
Plant Retirement and Abandonment
With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability.
AFUDC AFUDC: Consumers capitalizes AFUDC on regulated major construction projects. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset.
Planned Major Maintenance Activities
CMS Energy and Consumers record property repairs and minor property replacement as maintenance expense. CMS Energy and Consumers record planned major maintenance activities as operating expense unless the cost represents the acquisition of additional long-lived assets or the replacement of an existing long-lived asset.
Lessee
Lessee
CMS Energy and Consumers lease various assets from third parties, including coal-carrying railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for several of their PPAs as leases.
CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their consolidated balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and service vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term.
CMS Energy and Consumers include future payments for all renewal options, fair market value extensions, and buyout provisions reasonably certain of exercise in their measurement of lease right-of-use assets and lease liabilities. In addition, certain leases for service vehicles contain end-of-lease adjustment clauses based on proceeds received from the sale or disposition of the vehicles. CMS Energy and Consumers also include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their coal-carrying railcar leases.
Most of Consumers’ PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a finance lease.
Asset Retirement Obligations
CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities associated with the closure of certain gas wells that have an indeterminate life. CMS Energy and Consumers have not recorded liabilities for assets that have immaterial cumulative disposal costs, such as substation batteries.
CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers.
Retirement Benefits - Pension The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2023 and 2022 and improvement scale MP-2020 for 2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3The DB SERP no longer requires rate of compensation increase as the last active participant retired in 2023.
4CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.20 percent in 2023. The actual return (loss) on the assets of the DB Pension Plans was 12.6 percent in 2023, (15.9) percent in 2022, and 12.0 percent in 2021.
CMS Energy and Consumers amortize net gains and losses in excess of ten percent of the greater of the PBO or the MRV over the average remaining service period for DB Pension Plan A and the OPEB Plan and over the average remaining life expectancy of participants for DB Pension Plan B. For DB Pension Plan A, the estimated period of amortization of gains and losses was eight years for the years ended
December 31, 2023, 2022, and 2021. For DB Pension Plan B, the estimated period of amortization of gains and losses was 17 years for the year ended December 31, 2023, and 18 years for the years ended December 31, 2022 and 2021. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2023, 2022, and 2021.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for OPEB in 2020. The estimated period of amortization of these new prior service costs is eight years.
CMS Energy and Consumers determine the MRV for the assets of the DB Pension Plans as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five‑year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date.
Retirement Benefits - Nonpension The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2023 and 2022 and improvement scale MP-2020 for 2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3The DB SERP no longer requires rate of compensation increase as the last active participant retired in 2023.
4CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.20 percent in 2023. The actual return (loss) on the assets of the DB Pension Plans was 12.6 percent in 2023, (15.9) percent in 2022, and 12.0 percent in 2021.
CMS Energy and Consumers amortize net gains and losses in excess of ten percent of the greater of the PBO or the MRV over the average remaining service period for DB Pension Plan A and the OPEB Plan and over the average remaining life expectancy of participants for DB Pension Plan B. For DB Pension Plan A, the estimated period of amortization of gains and losses was eight years for the years ended
December 31, 2023, 2022, and 2021. For DB Pension Plan B, the estimated period of amortization of gains and losses was 17 years for the year ended December 31, 2023, and 18 years for the years ended December 31, 2022 and 2021. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2023, 2022, and 2021.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for OPEB in 2020. The estimated period of amortization of these new prior service costs is eight years.
CMS Energy and Consumers determine the MRV for the assets of the DB Pension Plans as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five‑year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date.
Income taxes
CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement.
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.
Consolidation, Variable Interest Entity Newport Solar Holdings, NWO Holdco, Aviator Wind Equity Holdings, and Aviator Wind are VIEs. In accordance with the associated limited liability company agreements, the tax equity investors are guaranteed preferred returns from these entities. However, NorthStar Clean Energy manages and controls the entities’ operating activities. As a result, NorthStar Clean Energy is the primary beneficiary, 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]  
Principles of Consolidation
Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, NorthStar Clean Energy, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances.
Use of Estimates
Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and Cash Equivalents and Restricted 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 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.
Restricted Cash and Cash Equivalents
Cash and Cash Equivalents and Restricted 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 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.
Contingencies
Contingencies: CMS Energy and Consumers record estimated loss contingencies on their consolidated financial statements when it is probable that a loss has been incurred and when the amount of loss can be reasonably estimated. For environmental remediation projects in which the timing of estimated expenditures is considered reliably determinable, CMS Energy and Consumers record the liability at its net present value, using a discount rate equal to the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability. Unless regulatory accounting applies, CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed.
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: Upon the issuance of long-term debt, CMS Energy and Consumers defer issuance costs, discounts, and premiums and amortize those amounts over the terms of the associated debt. Debt issuance costs are presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Upon the refinancing of long-term debt, Consumers, as a regulated entity, defers any remaining unamortized issuance costs, discounts, and premiums associated with the refinanced debt and amortizes those amounts over the term of the newly issued debt. For the non‑regulated portions of CMS Energy’s business, any remaining unamortized issuance costs, discounts, and premiums associated with extinguished debt are charged to earnings.
Derivative Instruments
Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers may enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the
commodity at a contracted price. Most of these contracts are not subject to derivative accounting for one or more of the following reasons:
•they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas)
•they qualify for the normal purchases and sales exception
•they cannot be net settled due in part to the absence of an active market for the commodity
Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives and changes in the fair value of FTRs are deferred as regulatory assets or liabilities. For details regarding CMS Energy’s and Consumers’ derivative instruments recorded at fair value, see Note 5, Fair Value Measurements.
Impairment of Long-Lived Assets
Impairment of Long-lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur that indicate the carrying amount of an asset may not be recoverable or that there has been a decline in value that may be other than temporary.
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses.
Investment Tax Credits Investment Tax Credits: CMS Energy and its subsidiaries use the flow-through method of accounting for investment tax credits. Under the flow-through method, the credit is recognized as a reduction to income tax expense when the related plant, property, and equipment is placed into service. For its regulated utility assets, Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment.
Inventory - Gas and Coal
Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy
and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets.
Inventory - RECs and Emission Allowances
CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. CMS Energy and Consumers classify these amounts within other assets on their consolidated balance sheets.
Inventory - Impairment
CMS Energy and Consumers evaluate inventory for impairment as required to ensure that its carrying value does not exceed the lower of cost or net realizable value.
MISO Transactions
MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements.
Property Taxes
Property Taxes: Property taxes are based on the taxable value of CMS Energy’s and Consumers’ real and personal property assessed by local taxing authorities. CMS Energy and Consumers record property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of CMS Energy’s and Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
Other: For additional accounting policies, see:
Government Assistance
Renewable Energy Grant: In 2013, Consumers received a $69 million renewable energy grant for Lake Winds® Energy Park, which began operations in 2012. This grant reduces Consumers’ cost of complying with Michigan’s renewable portfolio standard and, accordingly, reduces the overall renewable energy surcharge to be collected from customers. The regulatory liability recorded for the grant will be amortized over the life of Lake Winds® Energy Park. Consumers presents the amortization as a reduction to maintenance and other operating expenses on its consolidated statements of income.
Capitalization
Capitalization: CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general ratemaking process.
Software: CMS Energy and Consumers capitalize the costs to purchase and develop internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware.
Plant Retirement and Abandonment
With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability.
AFUDC AFUDC: Consumers capitalizes AFUDC on regulated major construction projects. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset.
Regulatory Depreciation and Amortization Consumers depreciates utility property on an asset-group basis, in which it applies a single MPSC-approved depreciation rate to the gross investment in a particular class of property within the electric and gas segments. Consumers performs depreciation studies periodically to determine appropriate group lives.
Planned Major Maintenance Activities
CMS Energy and Consumers record property repairs and minor property replacement as maintenance expense. CMS Energy and Consumers record planned major maintenance activities as operating expense unless the cost represents the acquisition of additional long-lived assets or the replacement of an existing long-lived asset.
Lessee
Lessee
CMS Energy and Consumers lease various assets from third parties, including coal-carrying railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for several of their PPAs as leases.
CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their consolidated balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and service vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term.
CMS Energy and Consumers include future payments for all renewal options, fair market value extensions, and buyout provisions reasonably certain of exercise in their measurement of lease right-of-use assets and lease liabilities. In addition, certain leases for service vehicles contain end-of-lease adjustment clauses based on proceeds received from the sale or disposition of the vehicles. CMS Energy and Consumers also include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their coal-carrying railcar leases.
Most of Consumers’ PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a finance lease.
Asset Retirement Obligations
CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities associated with the closure of certain gas wells that have an indeterminate life. CMS Energy and Consumers have not recorded liabilities for assets that have immaterial cumulative disposal costs, such as substation batteries.
CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers.
Retirement Benefits - Pension The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2023 and 2022 and improvement scale MP-2020 for 2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3The DB SERP no longer requires rate of compensation increase as the last active participant retired in 2023.
4CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.20 percent in 2023. The actual return (loss) on the assets of the DB Pension Plans was 12.6 percent in 2023, (15.9) percent in 2022, and 12.0 percent in 2021.
CMS Energy and Consumers amortize net gains and losses in excess of ten percent of the greater of the PBO or the MRV over the average remaining service period for DB Pension Plan A and the OPEB Plan and over the average remaining life expectancy of participants for DB Pension Plan B. For DB Pension Plan A, the estimated period of amortization of gains and losses was eight years for the years ended
December 31, 2023, 2022, and 2021. For DB Pension Plan B, the estimated period of amortization of gains and losses was 17 years for the year ended December 31, 2023, and 18 years for the years ended December 31, 2022 and 2021. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2023, 2022, and 2021.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for OPEB in 2020. The estimated period of amortization of these new prior service costs is eight years.
CMS Energy and Consumers determine the MRV for the assets of the DB Pension Plans as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five‑year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date.
Retirement Benefits - Nonpension The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2023 and 2022 and improvement scale MP-2020 for 2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3The DB SERP no longer requires rate of compensation increase as the last active participant retired in 2023.
4CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.20 percent in 2023. The actual return (loss) on the assets of the DB Pension Plans was 12.6 percent in 2023, (15.9) percent in 2022, and 12.0 percent in 2021.
CMS Energy and Consumers amortize net gains and losses in excess of ten percent of the greater of the PBO or the MRV over the average remaining service period for DB Pension Plan A and the OPEB Plan and over the average remaining life expectancy of participants for DB Pension Plan B. For DB Pension Plan A, the estimated period of amortization of gains and losses was eight years for the years ended
December 31, 2023, 2022, and 2021. For DB Pension Plan B, the estimated period of amortization of gains and losses was 17 years for the year ended December 31, 2023, and 18 years for the years ended December 31, 2022 and 2021. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2023, 2022, and 2021.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for OPEB in 2020. The estimated period of amortization of these new prior service costs is eight years.
CMS Energy and Consumers determine the MRV for the assets of the DB Pension Plans as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five‑year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date.
Income taxes
CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement.
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.
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.
Alternative-revenue Programs
Alternative‑revenue Programs: Consumers accounts for its energy waste reduction incentive mechanism and financial compensation mechanism as alternative-revenue programs. Consumers recognizes revenue related to the energy waste reduction incentive as soon as energy savings exceed the annual targets established by the MPSC and recognizes revenue related to the financial compensation mechanism as payments are made on MPSC-approved PPAs. For additional information on these mechanisms, see Note 2, Regulatory Matters.
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.
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Noncontrolling Interest (Policies)
 12 Months Ended
Dec. 31, 2023
Noncontrolling Interest [Abstract]  
Consolidation, Variable Interest Entity Newport Solar Holdings, NWO Holdco, Aviator Wind Equity Holdings, and Aviator Wind are VIEs. In accordance with the associated limited liability company agreements, the tax equity investors are guaranteed preferred returns from these entities. However, NorthStar Clean Energy manages and controls the entities’ operating activities. As a result, NorthStar Clean Energy is the primary beneficiary, 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.
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Regulatory Matters (Tables) - Consumers Energy Company
 12 Months Ended
Dec. 31, 2023
Public Utility, Property, Plant and Equipment [Line Items]  
Schedule of Regulatory Assets
Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets:
In Millions
December 3120232022
Regulatory assets
Current
2022 PSCR underrecovery1
$126 $— 
Energy waste reduction plan incentive2
54 47 
Retention incentive program3
12 2 
Other11 8 
Total current regulatory assets$203 $57 
Non-current
Costs of coal-fueled electric generating units to be retired1
$1,265 $1,258 
Securitized costs1
778 843 
Postretirement benefits4
741 856 
ARO3
328 281 
2022 PSCR underrecovery1
126 — 
MGP sites1
99 108 
Unamortized loss on reacquired debt1
96 100 
Decommissioning costs3
83 24 
Energy waste reduction plan incentive2
58 55 
Retention incentive program3
27 31 
Postretirement benefits expense deferral mechanism3
24 — 
Energy waste reduction plan3
19 10 
Ludington overhaul contract dispute3
13 — 
Other26 29 
Total non-current regulatory assets$3,683 $3,595 
Total regulatory assets$3,886 $3,652 
Regulatory liabilities
Current
Income taxes, net$49 $48 
Reserve for customer refunds2 47 
Other5 9 
Total current regulatory liabilities$56 $104 
Non-current
Cost of removal$2,545 $2,426 
Income taxes, net1,220 1,267 
Renewable energy grant43 45 
Renewable energy plan29 32 
Energy waste reduction plan25 6 
Postretirement benefits expense deferral mechanism
12 — 
Other20 20 
Total non-current regulatory liabilities$3,894 $3,796 
Total regulatory liabilities$3,950 $3,900 
1The MPSC has provided a specific return on these regulatory assets.
2These regulatory assets have arisen from an alternative revenue program and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return.
3These regulatory assets represent incurred costs for which the MPSC has provided recovery without a return on investment.
4This regulatory asset is included in rate base, thereby providing a return.
Schedule of Regulatory Liabilities
Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets:
In Millions
December 3120232022
Regulatory assets
Current
2022 PSCR underrecovery1
$126 $— 
Energy waste reduction plan incentive2
54 47 
Retention incentive program3
12 2 
Other11 8 
Total current regulatory assets$203 $57 
Non-current
Costs of coal-fueled electric generating units to be retired1
$1,265 $1,258 
Securitized costs1
778 843 
Postretirement benefits4
741 856 
ARO3
328 281 
2022 PSCR underrecovery1
126 — 
MGP sites1
99 108 
Unamortized loss on reacquired debt1
96 100 
Decommissioning costs3
83 24 
Energy waste reduction plan incentive2
58 55 
Retention incentive program3
27 31 
Postretirement benefits expense deferral mechanism3
24 — 
Energy waste reduction plan3
19 10 
Ludington overhaul contract dispute3
13 — 
Other26 29 
Total non-current regulatory assets$3,683 $3,595 
Total regulatory assets$3,886 $3,652 
Regulatory liabilities
Current
Income taxes, net$49 $48 
Reserve for customer refunds2 47 
Other5 9 
Total current regulatory liabilities$56 $104 
Non-current
Cost of removal$2,545 $2,426 
Income taxes, net1,220 1,267 
Renewable energy grant43 45 
Renewable energy plan29 32 
Energy waste reduction plan25 6 
Postretirement benefits expense deferral mechanism
12 — 
Other20 20 
Total non-current regulatory liabilities$3,894 $3,796 
Total regulatory liabilities$3,950 $3,900 
1The MPSC has provided a specific return on these regulatory assets.
2These regulatory assets have arisen from an alternative revenue program and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return.
3These regulatory assets represent incurred costs for which the MPSC has provided recovery without a return on investment.
4This regulatory asset is included in rate base, thereby providing a return.
Schedule of Assets and Liabilities for PSCR and GCR Underrecoveries and Overrecoveries
Presented in the following table are the assets and liabilities for PSCR and GCR underrecoveries and overrecoveries reflected on Consumers’ consolidated balance sheets:
In Millions
December 3120232022
Assets
PSCR underrecoveries$— $401 
GCR underrecoveries— 8 
Accounts receivable and accrued revenue$— $409 
Liabilities
PSCR overrecoveries$10 $— 
GCR overrecoveries44 — 
Accrued rate refunds$54 $— 
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Contingencies and Commitments (Tables)
 12 Months Ended
Dec. 31, 2023
Site Contingency [Line Items]  
Schedule of Remediation and Other Response Activity Costs by Year CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs in each of the next five years:
In Millions
20242025202620272028
CMS Energy
Long-term leachate disposal and operating and maintenance costs$4 $4 $4 $4 $4 
Summary of Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2023:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousindefinite$304 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite153 1 
Guarantee3
2011indefinite30 — 
Consumers
Guarantee3
2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in NWO Holdco, Aviator Wind, and Newport Solar Holdings to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. 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. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy 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 NorthStar Clean Energy’s ownership interest in NWO Holdco, Aviator Wind, and Newport Solar Holdings, see Note 18, 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. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim.
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.
Schedule of Contractual Purchase Obligations Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2023 for each of the periods shown:
In Millions
Payments Due
Total20242025202620272028Beyond 2028
CMS Energy, including Consumers
Total PPAs$7,204 $711 $792 $783 $787 $702 $3,429 
Other3,491 1,720 885 301 207 150 228 
Total purchase obligations$10,695 $2,431 $1,677 $1,084 $994 $852 $3,657 
Consumers
PPAs
MCV PPA$2,506 $342 $402 $416 $410 $371 $565 
Related-party PPAs206 60 44 30 31 14 27 
Other PPAs4,492 309 346 337 346 317 2,837 
Total PPAs$7,204 $711 $792 $783 $787 $702 $3,429 
Other2,802 1,615 648 266 168 82 23 
Total purchase obligations$10,006 $2,326 $1,440 $1,049 $955 $784 $3,452 
Consumers Energy Company  
Site Contingency [Line Items]  
Schedule of Remediation and Other Response Activity Costs by Year Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years:
In Millions
20242025202620272028
Consumers
Remediation and other response activity costs$2 $1 $7 $10 $25 
Summary of Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2023:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousindefinite$304 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite153 1 
Guarantee3
2011indefinite30 — 
Consumers
Guarantee3
2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in NWO Holdco, Aviator Wind, and Newport Solar Holdings to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. 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. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy 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 NorthStar Clean Energy’s ownership interest in NWO Holdco, Aviator Wind, and Newport Solar Holdings, see Note 18, 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. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim.
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.
Schedule of Contractual Purchase Obligations Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2023 for each of the periods shown:
In Millions
Payments Due
Total20242025202620272028Beyond 2028
CMS Energy, including Consumers
Total PPAs$7,204 $711 $792 $783 $787 $702 $3,429 
Other3,491 1,720 885 301 207 150 228 
Total purchase obligations$10,695 $2,431 $1,677 $1,084 $994 $852 $3,657 
Consumers
PPAs
MCV PPA$2,506 $342 $402 $416 $410 $371 $565 
Related-party PPAs206 60 44 30 31 14 27 
Other PPAs4,492 309 346 337 346 317 2,837 
Total PPAs$7,204 $711 $792 $783 $787 $702 $3,429 
Other2,802 1,615 648 266 168 82 23 
Total purchase obligations$10,006 $2,326 $1,440 $1,049 $955 $784 $3,452 
v3.24.0.1
Financings and Capitalization (Tables)
 12 Months Ended
Dec. 31, 2023
Debt Instrument [Line Items]  
Summary of Long-Term Debt
Presented in the following table is CMS Energy’s long-term debt at December 31:
In Millions
Interest Rate
(%)		Maturity20232022
CMS Energy, including Consumers
CMS Energy, parent only
Senior notes3.875 2024$250 $250 
3.600 2025250 250 
3.000 2026300 300 
2.950 2027275 275 
3.450 2027350 350 
4.700 2043250 250 
4.875 2044300 300 
$1,975 $1,975 
Convertible senior notes3.375 2028800 — 
$800 $— 
Junior subordinated notes1
4.750 
2
2050500 500 
3.750 
3
2050400 400 
5.625 2078200 200 
5.875 2078280 280 
5.875 2079630 630 
$2,010 $2,010 
Total CMS Energy, parent only$4,785 $3,985 
CMS Energy subsidiaries
Consumers10,863 $10,277 
NorthStar Clean Energy, including subsidiaries
Term loan facilityvariable2023— 100 
Total principal amount outstanding$15,648 $14,362 
Current amounts(975)(1,090)
Unamortized discounts(30)(30)
Unamortized issuance costs(135)(120)
Total long-term debt$14,508 $13,122 
1These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.
2On June 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 4.116 percent.
3On December 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five‑year treasury rate plus 2.900 percent.
Schedule of Major Long-Term Debt Issuances and Retirements Presented in the following table is Consumers’ long-term debt—related parties at December 31, 2023:
Principal
(In Millions)
Interest Rate
(%)
First mortgage bonds due 2060$163 2.500 
First mortgage bonds due 2052106 2.650 
First mortgage bonds due 205023 3.750 
First mortgage bonds due 205052 3.100 
First mortgage bonds due 205127 3.500 
First mortgage bonds due 204860 4.050 
Total principal amount outstanding$431 
Unamortized discounts(3)
Unamortized issuance costs(4)
Total long-term debt — related parties$424 
Presented in the following table is a summary of major long-term debt issuances during 2023:
Principal
(In Millions)		Interest Rate (%)Issuance DateMaturity Date
CMS Energy, parent only
Convertible senior notes$800 3.375 May 2023May 2028
Total CMS Energy, parent only$800 
NorthStar Clean Energy, including subsidiaries
Term loan facility1
$85 variableFebruary 2023November 2023
Total NorthStar Clean Energy, including subsidiaries$85 
Consumers
First mortgage bonds$425 4.650 January 2023March 2028
First mortgage bonds700 4.625 February 2023May 2033
First mortgage bonds115 5.240 May 2023May 2026
First mortgage bonds50 5.070 May 2023May 2029
First mortgage bonds95 5.170 May 2023May 2032
First mortgage bonds140 5.380 May 2023May 2037
First mortgage bonds500 4.900 August 2023February 2029
2023 Securitization bonds2
250 5.550 December 2023March 2028
2023 Securitization bonds2
396 5.210 December 2023September 2031
Total Consumers$2,671 
Total CMS Energy$3,556 
1    In December 2022, a subsidiary of NorthStar Clean Energy entered into a $185 million unsecured term loan credit agreement. Under this credit agreement, a subsidiary of NorthStar Clean Energy borrowed $85 million in 2023.
2    For additional details on the securitization, see Note 2, Regulatory Matters— Securitized Costs.
Presented in the following table is a summary of major long-term debt retirements during 2023:
Principal
(In Millions)		Interest Rate (%)Retirement DateMaturity Date
NorthStar Clean Energy, including subsidiaries
Term loan facility$185 variableNovember 2023November 2023
Total NorthStar Clean Energy, including subsidiaries$185 
Consumers
Term loan facility$1,000 variableFebruary 2023January 2024
First mortgage bonds300 0.350June 2023June 2023
First mortgage bonds325 3.375August 2023August 2023
Total Consumers$1,625 
Schedule of Debt Maturities
Debt Maturities: At December 31, 2023, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20242025202620272028
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$250 $250 $300 $625 $800 
Consumers
725 116 237 263 843 
Total CMS Energy1
$975 $366 $537 $888 $1,643 
Consumers
Long-term debt$725 $116 $237 $263 $843 
Schedule of Revolving Credit Facilities The following credit facilities with banks were available at December 31, 2023:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
December 14, 20271
$550 $— $24 $526 
September 22, 2024
50 — 50 — 
NorthStar Clean Energy, including subsidiaries
September 25, 20252
$37 $— $37 $— 
Consumers3
December 14, 2027
$1,100 $— $27 $1,073 
November 18, 2025
250 — 48 202 
1There were no borrowings under this facility during the year ended December 31, 2023.
2This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 18, Variable Interest Entities.
3Obligations under these facilities are secured by first mortgage bonds of Consumers. There were no borrowings under these facilities during the year ended December 31, 2023.
Schedule of Forward Contracts
Presented in the following table are details of CMS Energy’s forward sales contracts under its equity offering program at December 31, 2023:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialDecember 31, 2023
August 3, 2022December 31, 2024328,207$67.59 $68.37 
August 24, 2022December 31, 20241,677,93869.46 70.91 
August 29, 2022December 31, 20241,783,38868.18 69.54 
Schedule of Preferred Stock Presented in the following table are details of CMS Energy’s Series C preferred stock at December 31, 2023 and 2022:
Depositary Share Par Value Depositary Share Optional Redemption PriceNumber of Depositary Shares AuthorizedNumber of Depositary Shares Outstanding
Cumulative, redeemable perpetual$25 $25 9,200,000 9,200,000 
Consumers Energy Company  
Debt Instrument [Line Items]  
Summary of Long-Term Debt
Presented in the following table is Consumers’ long-term debt at December 31:
In Millions
Interest Rate
(%)		Maturity20232022
Consumers
First mortgage bonds
0.350 2023$— $300 
3.375 2023— 325 
3.125 2024250 250 
3.190 202452 52 
5.240 2026115 — 
3.680 2027100 100 
3.390 202735 35 
4.650 2028425 — 
3.800 2028300 300 
4.900 2029500 — 
5.070 202950 — 
5.170 203295 — 
3.600 2032350 350 
3.180 2032100 100 
4.625 2033700 — 
5.800 2035175 175 
5.380 2037140 — 
3.520 2037335 335 
4.010 2038215 215 
6.170 204050 50 
4.970 204050 50 
4.310 2042263 263 
3.950 2043425 425 
4.100 2045250 250 
3.250 2046450 450 
3.950 2047350 350 
4.050 2048550 550 
4.350 2049550 550 
3.750 2050300 300 
3.100 2050550 550 
3.500 2051575 575 
2.650 2052300 300 
4.200 2052450 450 
3.860 205250 50 
4.280 2057185 185 
2.500 2060525 525 
4.350 2064250 250 
variable
1
206976 76 
variable
1
2070134 134 
variable
1
2070127 127 
In Millions
Interest Rate
(%)		Maturity20232022
$10,397 $8,997 
Tax-exempt revenue bonds0.875 
2
203535 35 
1.800 
3
204975 75 
$110 $110 
2014 Securitization bonds3.421 
4
2025-2029
5
$141 $170 
2023 Securitization bonds5.342 
6
2028-2031
5
646 — 
$787 $170 
Term loan facilityvariable2024— 1,000 
Total principal amount outstanding$11,294 $10,277 
Current amounts(725)(991)
Long-term debt – related parties7 principal amount outstanding
2050-2060(431)— 
Unamortized discounts(28)(27)
Unamortized issuance costs(73)(67)
Total long-term debt$10,037 $9,192 
1The variable-rate bonds bear interest quarterly at a rate of three-month SOFR minus 0.038 percent, subject to a zero-percent floor. At December 31, 2023, the interest rates were 5.346 percent for bonds due September 2069, 5.329 percent for bonds due May 2070, and 5.368 percent for bonds due October 2070. The interest rate for all variable-rate bonds at December 31, 2022 was zero percent. The holders of these variable-rate bonds may put them to Consumers for redemption on certain dates prior to their stated maturity, including dates within one year of December 31, 2023.
2The interest rate on these tax-exempt revenue bonds will reset on October 8, 2026.
3The interest rate on these tax‑exempt revenue bonds will reset on October 1, 2024.
4The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2014 Securitization Funding, was 3.421 percent at December 31, 2023 and 3.343 percent at December 31, 2022.
5Principal and interest payments are made semiannually.
6The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2023 Securitization Funding, was 5.342 percent at December 31, 2023.
7Long-term debt – related parties reflects Consumers’ outstanding debt held by its parent as a result of CMS Energy’s repurchase of Consumers’ first mortgage bonds.
Schedule of Major Long-Term Debt Issuances and Retirements Presented in the following table is Consumers’ long-term debt—related parties at December 31, 2023:
Principal
(In Millions)
Interest Rate
(%)
First mortgage bonds due 2060$163 2.500 
First mortgage bonds due 2052106 2.650 
First mortgage bonds due 205023 3.750 
First mortgage bonds due 205052 3.100 
First mortgage bonds due 205127 3.500 
First mortgage bonds due 204860 4.050 
Total principal amount outstanding$431 
Unamortized discounts(3)
Unamortized issuance costs(4)
Total long-term debt — related parties$424 
Presented in the following table is a summary of major long-term debt issuances during 2023:
Principal
(In Millions)		Interest Rate (%)Issuance DateMaturity Date
CMS Energy, parent only
Convertible senior notes$800 3.375 May 2023May 2028
Total CMS Energy, parent only$800 
NorthStar Clean Energy, including subsidiaries
Term loan facility1
$85 variableFebruary 2023November 2023
Total NorthStar Clean Energy, including subsidiaries$85 
Consumers
First mortgage bonds$425 4.650 January 2023March 2028
First mortgage bonds700 4.625 February 2023May 2033
First mortgage bonds115 5.240 May 2023May 2026
First mortgage bonds50 5.070 May 2023May 2029
First mortgage bonds95 5.170 May 2023May 2032
First mortgage bonds140 5.380 May 2023May 2037
First mortgage bonds500 4.900 August 2023February 2029
2023 Securitization bonds2
250 5.550 December 2023March 2028
2023 Securitization bonds2
396 5.210 December 2023September 2031
Total Consumers$2,671 
Total CMS Energy$3,556 
1    In December 2022, a subsidiary of NorthStar Clean Energy entered into a $185 million unsecured term loan credit agreement. Under this credit agreement, a subsidiary of NorthStar Clean Energy borrowed $85 million in 2023.
2    For additional details on the securitization, see Note 2, Regulatory Matters— Securitized Costs.
Schedule of Debt Maturities
Debt Maturities: At December 31, 2023, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20242025202620272028
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$250 $250 $300 $625 $800 
Consumers
725 116 237 263 843 
Total CMS Energy1
$975 $366 $537 $888 $1,643 
Consumers
Long-term debt$725 $116 $237 $263 $843 
Schedule of Revolving Credit Facilities The following credit facilities with banks were available at December 31, 2023:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
December 14, 20271
$550 $— $24 $526 
September 22, 2024
50 — 50 — 
NorthStar Clean Energy, including subsidiaries
September 25, 20252
$37 $— $37 $— 
Consumers3
December 14, 2027
$1,100 $— $27 $1,073 
November 18, 2025
250 — 48 202 
1There were no borrowings under this facility during the year ended December 31, 2023.
2This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 18, Variable Interest Entities.
3Obligations under these facilities are secured by first mortgage bonds of Consumers. There were no borrowings under these facilities during the year ended December 31, 2023.
Schedule of Preferred Stock Presented in the following table are details of Consumers’ preferred stock at December 31, 2023 and 2022:
Par ValueOptional Redemption PriceNumber of Shares AuthorizedNumber of Shares Outstanding
Cumulative, with no mandatory redemption
$100 $110 7,500,000 373,148 
v3.24.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Summary of 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
December 312023202220232022
Assets1
Cash equivalents$18 $— $— $— 
Restricted cash equivalents21 18 21 17 
Nonqualified deferred compensation plan assets30 24 22 18 
Derivative instruments2 2 2 2 
Total assets$71 $44 $45 $37 
Liabilities1
Nonqualified deferred compensation plan liabilities$30 $24 $22 $18 
Total liabilities$30 $24 $22 $18 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 3.
Consumers Energy Company  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Summary of 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
December 312023202220232022
Assets1
Cash equivalents$18 $— $— $— 
Restricted cash equivalents21 18 21 17 
Nonqualified deferred compensation plan assets30 24 22 18 
Derivative instruments2 2 2 2 
Total assets$71 $44 $45 $37 
Liabilities1
Nonqualified deferred compensation plan liabilities$30 $24 $22 $18 
Total liabilities$30 $24 $22 $18 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 3.
v3.24.0.1
Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2023
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 5, Fair Value Measurements.
In Millions
December 31, 2023December 31, 2022
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$11 $11 $— $— $11 $14 $14 $— $— $14 
Liabilities
Long-term debt2
15,483 14,305 1,103 11,186 2,016 14,212 12,384 987 8,741 2,656 
Long-term payables3
11 11 — — 11 9 7 — — 7 
Consumers
Assets
Long-term receivables1
$11 $11 $— $— $11 $14 $14 $— $— $14 
Notes receivable – related party4
97 97 — — 97 101 101 — — 101 
Liabilities
Long-term debt5
10,762 9,757 — 7,741 2,016 10,183 8,728 — 6,172 2,556 
Long-term debt – related party424 303 — 303 — — — — — — 
Long-term payables5 5 — — 5 — — — — — 
1Includes current portion of long-term accounts receivable and notes receivable of $6 million at December 31, 2023 and $7 million at December 31, 2022.
2Includes current portion of long-term debt of $975 million at December 31, 2023 and $1,090 million at December 31, 2022.
3Includes current portion of long-term payables of $2 million at December 31, 2022.
4Includes current portion of notes receivable – related party of $7 million at December 31, 2023 and 2022.
5Includes current portion of long-term debt of $725 million at December 31, 2023 and $991 million at December 31, 2022.
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 5, Fair Value Measurements.
In Millions
December 31, 2023December 31, 2022
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$11 $11 $— $— $11 $14 $14 $— $— $14 
Liabilities
Long-term debt2
15,483 14,305 1,103 11,186 2,016 14,212 12,384 987 8,741 2,656 
Long-term payables3
11 11 — — 11 9 7 — — 7 
Consumers
Assets
Long-term receivables1
$11 $11 $— $— $11 $14 $14 $— $— $14 
Notes receivable – related party4
97 97 — — 97 101 101 — — 101 
Liabilities
Long-term debt5
10,762 9,757 — 7,741 2,016 10,183 8,728 — 6,172 2,556 
Long-term debt – related party424 303 — 303 — — — — — — 
Long-term payables5 5 — — 5 — — — — — 
1Includes current portion of long-term accounts receivable and notes receivable of $6 million at December 31, 2023 and $7 million at December 31, 2022.
2Includes current portion of long-term debt of $975 million at December 31, 2023 and $1,090 million at December 31, 2022.
3Includes current portion of long-term payables of $2 million at December 31, 2022.
4Includes current portion of notes receivable – related party of $7 million at December 31, 2023 and 2022.
5Includes current portion of long-term debt of $725 million at December 31, 2023 and $991 million at December 31, 2022.
v3.24.0.1
Plant, Property, and Equipment (Tables)
 12 Months Ended
Dec. 31, 2023
Public Utility, Property, Plant and Equipment [Line Items]  
Schedule of Property, Plant and Equipment
Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment:
In Millions
December 31Estimated
Depreciable
Life in Years		20232022
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 – 125
$31,723 $29,342 
NorthStar Clean Energy
Independent power production1
3 – 40
1,387 1,124 
Assets under finance leases2
24 24 
Other
3 – 5
1 1 
Plant, property, and equipment, gross$33,135 $30,491 
Construction work in progress944 1,182 
Accumulated depreciation and amortization(9,007)(8,960)
Total plant, property, and equipment3
$25,072 $22,713 
Consumers
Plant, property, and equipment, gross
Electric
Generation
15 – 125
$6,511 $5,780 
Distribution
15 – 75
11,339 10,590 
Other
5 – 55
1,355 1,374 
Assets under finance leases2
97 126 
Gas
Distribution
20 – 85
7,452 6,951 
Transmission
17 – 75
2,806 2,440 
Underground storage facilities4
27 – 75
1,295 1,197 
Other
5 – 55
815 835 
Assets under finance leases2
15 20 
Other non-utility property
3 – 51
38 29 
Plant, property, and equipment, gross$31,723 $29,342 
Construction work in progress845 994 
Accumulated depreciation and amortization(8,796)(8,791)
Total plant, property, and equipment2
$23,772 $21,545 
1A portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 8, Leases.
2For information regarding the amortization terms of CMS Energy’s and Consumers’ assets under finance leases, see Note 8, Leases.
3Consumers’ plant additions were $3.1 billion for the year ended December 31, 2023 and $2.3 billion for the year ended December 31, 2022. Consumers’ plant retirements, which include the impact of transfers to held for sale, were $856 million for the year ended December 31, 2023 and $290 million for the year ended December 31, 2022. Consumers plans to retire the J.H. Campbell coal-fueled generating units in 2025. Accordingly, in 2022, Consumers removed from total plant, property, and equipment an amount of $1.3 billion, representing the projected remaining book value of the electric generating units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 2, Regulatory Matters.
4Underground storage includes base natural gas of $26 million at December 31, 2023 and 2022. Base natural gas is not subject to depreciation.
Summary of Finite-Lived Intangible Assets by Major Class Presented in the following table are details about Consumers’ intangible assets:
In Millions
DescriptionAmortization Life in YearsDecember 31, 2023December 31, 2022
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
Consumers
Software development
3 – 15
$772 $543 $846 $593 
Rights of way
50 – 85
229 64 218 61 
Franchises and consents
5 – 50
16 11 16 10 
Leasehold improvements
various2
11 7 9 6 
Other intangiblesvarious24 15 25 16 
Total$1,052 $640 $1,114 $686 
1Consumers’ intangible asset additions were $80 million for the year ended December 31, 2023 and $116 million for the year ended December 31, 2022. Consumers’ intangible asset retirements were $142 million for the year ended December 31, 2023 and $104 million for the year ended December 31, 2022.
2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.
Summary of Accumulated Depreciation and Amortization Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Utility plant assets$8,790 $8,785 
Non-utility plant assets217 175 
Consumers
Utility plant assets$8,790 $8,785 
Non-utility plant assets6 6 
Summary of Depreciation and Amortization
Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$1,050 $990 $975 
Amortization expense
Software92 103 108 
Other intangible assets5 5 4 
Securitized regulatory assets33 28 27 
Total depreciation and amortization expense$1,180 $1,126 $1,114 
Consumers
Depreciation expense – plant, property, and equipment$1,007 $952 $938 
Amortization expense
Software92 103 108 
Other intangible assets5 5 4 
Securitized regulatory assets33 28 27 
Total depreciation and amortization expense$1,137 $1,088 $1,077 
Schedule of Estimated Amortization Expense for Intangibles
Presented in the following table is Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20242025202620272028
Consumers
Intangible asset amortization expense$89 $88 $87 $81 $73 
Consumers Energy Company  
Public Utility, Property, Plant and Equipment [Line Items]  
Schedule of Property, Plant and Equipment
Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment:
In Millions
December 31Estimated
Depreciable
Life in Years		20232022
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 – 125
$31,723 $29,342 
NorthStar Clean Energy
Independent power production1
3 – 40
1,387 1,124 
Assets under finance leases2
24 24 
Other
3 – 5
1 1 
Plant, property, and equipment, gross$33,135 $30,491 
Construction work in progress944 1,182 
Accumulated depreciation and amortization(9,007)(8,960)
Total plant, property, and equipment3
$25,072 $22,713 
Consumers
Plant, property, and equipment, gross
Electric
Generation
15 – 125
$6,511 $5,780 
Distribution
15 – 75
11,339 10,590 
Other
5 – 55
1,355 1,374 
Assets under finance leases2
97 126 
Gas
Distribution
20 – 85
7,452 6,951 
Transmission
17 – 75
2,806 2,440 
Underground storage facilities4
27 – 75
1,295 1,197 
Other
5 – 55
815 835 
Assets under finance leases2
15 20 
Other non-utility property
3 – 51
38 29 
Plant, property, and equipment, gross$31,723 $29,342 
Construction work in progress845 994 
Accumulated depreciation and amortization(8,796)(8,791)
Total plant, property, and equipment2
$23,772 $21,545 
1A portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 8, Leases.
2For information regarding the amortization terms of CMS Energy’s and Consumers’ assets under finance leases, see Note 8, Leases.
3Consumers’ plant additions were $3.1 billion for the year ended December 31, 2023 and $2.3 billion for the year ended December 31, 2022. Consumers’ plant retirements, which include the impact of transfers to held for sale, were $856 million for the year ended December 31, 2023 and $290 million for the year ended December 31, 2022. Consumers plans to retire the J.H. Campbell coal-fueled generating units in 2025. Accordingly, in 2022, Consumers removed from total plant, property, and equipment an amount of $1.3 billion, representing the projected remaining book value of the electric generating units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 2, Regulatory Matters.
4Underground storage includes base natural gas of $26 million at December 31, 2023 and 2022. Base natural gas is not subject to depreciation.
Assets Under Finance Leases: Presented in the following table are further details about changes in CMS Energy’s and Consumers’ assets under finance leases:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Balance at beginning of period$170 $332 
Additions— 44 
Net retirements and other adjustments(34)(206)
Balance at end of period$136 $170 
Consumers
Balance at beginning of period$146 $332 
Additions— 20 
Net retirements and other adjustments(34)(206)
Balance at end of period$112 $146 
Summary of Finite-Lived Intangible Assets by Major Class Presented in the following table are details about Consumers’ intangible assets:
In Millions
DescriptionAmortization Life in YearsDecember 31, 2023December 31, 2022
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
Consumers
Software development
3 – 15
$772 $543 $846 $593 
Rights of way
50 – 85
229 64 218 61 
Franchises and consents
5 – 50
16 11 16 10 
Leasehold improvements
various2
11 7 9 6 
Other intangiblesvarious24 15 25 16 
Total$1,052 $640 $1,114 $686 
1Consumers’ intangible asset additions were $80 million for the year ended December 31, 2023 and $116 million for the year ended December 31, 2022. Consumers’ intangible asset retirements were $142 million for the year ended December 31, 2023 and $104 million for the year ended December 31, 2022.
2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.
Summary of Average Capitalization Rates Presented in the following table are Consumers’ average AFUDC capitalization rates:
Years Ended December 31202320222021
Electric6.5 %6.2 %6.2 %
Gas5.8 5.6 5.6 
Summary of Accumulated Depreciation and Amortization Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Utility plant assets$8,790 $8,785 
Non-utility plant assets217 175 
Consumers
Utility plant assets$8,790 $8,785 
Non-utility plant assets6 6 
Summary of Composite Depreciation Rates for Properties Presented in the following table are the composite depreciation rates for Consumers’ segment properties:
Years Ended December 31202320222021
Electric utility property3.8 %3.7 %3.9 %
Gas utility property2.8 2.9 2.9 
Other property7.8 8.9 9.4 
Summary of Depreciation and Amortization
Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$1,050 $990 $975 
Amortization expense
Software92 103 108 
Other intangible assets5 5 4 
Securitized regulatory assets33 28 27 
Total depreciation and amortization expense$1,180 $1,126 $1,114 
Consumers
Depreciation expense – plant, property, and equipment$1,007 $952 $938 
Amortization expense
Software92 103 108 
Other intangible assets5 5 4 
Securitized regulatory assets33 28 27 
Total depreciation and amortization expense$1,137 $1,088 $1,077 
Schedule of Estimated Amortization Expense for Intangibles
Presented in the following table is Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20242025202620272028
Consumers
Intangible asset amortization expense$89 $88 $87 $81 $73 
Summary of Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2023:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3 %51.0 %various
Utility plant in service$1,752 $619 $443 
Accumulated provision for depreciation(812)(227)(97)
Plant under construction1 5 11 
Net investment$941 $397 $357 
v3.24.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Line Items]  
Summary of Lease Right-of-Use Assets and Liabilities
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
CMS Energy, including ConsumersConsumers
December 312023202220232022
Operating leases
Right-of-use assets1
$26$31$23$27
Lease liabilities
Current lease liabilities2
4444
Non-current lease liabilities3
22271923
Finance leases
Right-of-use assets71824858
Lease liabilities4
Current lease liabilities5959
Non-current lease liabilities62683945
Weighted-average remaining lease term (in years)
Operating leases19201818
Finance leases19181110
Weighted-average discount rate
Operating leases5.2 %4.0 %5.3 %3.9 %
Finance leases5
5.3 5.2 1.5 1.6 
1CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non‑current assets on their consolidated balance sheets.
2The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.
3The non‑current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non‑current liabilities on their consolidated balance sheets.
4Includes related-party lease liabilities of $24 million, of which less than $1 million was current, at December 31, 2023 and 2022.
5This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.
Schedule of Lease Cost Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Operating lease costs$6 $6 
Finance lease costs
Amortization of right-of-use assets9 12 
Interest on lease liabilities15 14 
Variable lease costs107 93 
Short-term lease costs14 23 
Total lease costs$151 $148 
Consumers
Operating lease costs$5 $6 
Finance lease costs
Amortization of right-of-use assets8 12 
Interest on lease liabilities13 14 
Variable lease costs107 93 
Short-term lease costs14 22 
Total lease costs$147 $147 
Presented in the following table is supplemental cash flow information related to CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$6 $6 
Cash used in operating activities for finance leases15 14 
Cash used in financing activities for finance leases8 13 
Lease liabilities arising from obtaining right-of-use assets
Operating leases1 10 
Finance leases— 36 
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$6 $6 
Cash used in operating activities for finance leases13 14 
Cash used in financing activities for finance leases8 12 
Lease liabilities arising from obtaining right-of-use assets
Operating leases1 10 
Finance leases— 12 
Summary of Minimum Annual Rental Commitments
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases:
In Millions
Finance Leases
December 31, 2023Operating LeasesPipelines and PPAsOtherTotal
CMS Energy, including Consumers
2024$5 $13 $6 $19 
20254 13 3 16 
20263 13 4 17 
20272 13 1 14 
20281 13 1 14 
2029 and thereafter30 26 66 92 
Total minimum lease payments$45 $91 $81 $172 
Less discount19 62 43 105 
Present value of minimum lease payments$26 $29 $38 $67 
Consumers
2024$5 $13 $5 $18 
20254 13 2 15 
20262 13 2 15 
20272 13 — 13 
20281 13 — 13 
2029 and thereafter24 26 8 34 
Total minimum lease payments$38 $91 $17 $108 
Less discount15 62 2 64 
Present value of minimum lease payments$23 $29 $15 $44 
Summary of Future Payments to be Received
Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases:
In Millions
December 31, 2023
2024$43 
202544 
202618 
Total minimum lease payments$105 
Consumers Energy Company  
Leases [Line Items]  
Summary of Lease Right-of-Use Assets and Liabilities
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
CMS Energy, including ConsumersConsumers
December 312023202220232022
Operating leases
Right-of-use assets1
$26$31$23$27
Lease liabilities
Current lease liabilities2
4444
Non-current lease liabilities3
22271923
Finance leases
Right-of-use assets71824858
Lease liabilities4
Current lease liabilities5959
Non-current lease liabilities62683945
Weighted-average remaining lease term (in years)
Operating leases19201818
Finance leases19181110
Weighted-average discount rate
Operating leases5.2 %4.0 %5.3 %3.9 %
Finance leases5
5.3 5.2 1.5 1.6 
1CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non‑current assets on their consolidated balance sheets.
2The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.
3The non‑current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non‑current liabilities on their consolidated balance sheets.
4Includes related-party lease liabilities of $24 million, of which less than $1 million was current, at December 31, 2023 and 2022.
5This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.
Schedule of Lease Cost Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Operating lease costs$6 $6 
Finance lease costs
Amortization of right-of-use assets9 12 
Interest on lease liabilities15 14 
Variable lease costs107 93 
Short-term lease costs14 23 
Total lease costs$151 $148 
Consumers
Operating lease costs$5 $6 
Finance lease costs
Amortization of right-of-use assets8 12 
Interest on lease liabilities13 14 
Variable lease costs107 93 
Short-term lease costs14 22 
Total lease costs$147 $147 
Presented in the following table is supplemental cash flow information related to CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$6 $6 
Cash used in operating activities for finance leases15 14 
Cash used in financing activities for finance leases8 13 
Lease liabilities arising from obtaining right-of-use assets
Operating leases1 10 
Finance leases— 36 
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$6 $6 
Cash used in operating activities for finance leases13 14 
Cash used in financing activities for finance leases8 12 
Lease liabilities arising from obtaining right-of-use assets
Operating leases1 10 
Finance leases— 12 
Summary of Minimum Annual Rental Commitments
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases:
In Millions
Finance Leases
December 31, 2023Operating LeasesPipelines and PPAsOtherTotal
CMS Energy, including Consumers
2024$5 $13 $6 $19 
20254 13 3 16 
20263 13 4 17 
20272 13 1 14 
20281 13 1 14 
2029 and thereafter30 26 66 92 
Total minimum lease payments$45 $91 $81 $172 
Less discount19 62 43 105 
Present value of minimum lease payments$26 $29 $38 $67 
Consumers
2024$5 $13 $5 $18 
20254 13 2 15 
20262 13 2 15 
20272 13 — 13 
20281 13 — 13 
2029 and thereafter24 26 8 34 
Total minimum lease payments$38 $91 $17 $108 
Less discount15 62 2 64 
Present value of minimum lease payments$23 $29 $15 $44 
v3.24.0.1
Asset Retirement Obligations (Tables)
 12 Months Ended
Dec. 31, 2023
Asset Retirement Obligations [Line Items]  
Schedule of Categories of Assets for which an ARO Liability is Recorded
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
ARO DescriptionIn-Service DateLong-Lived Assets
Closure of coal ash disposal areasvariousGenerating plants coal ash areas
Gas distribution cut, purge, and capvariousGas distribution mains and services
Asbestos abatement1973Electric and gas utility plant
Closure of renewable generation assetsvariousWind and solar generation facilities
Gas wells plug and abandonvariousGas transmission and storage
Schedule of Change in Asset Retirement Obligation
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2022IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2023
CMS Energy, including Consumers
Consumers$722 $4 $(28)$32 $9 $739 
Renewable generation assets24 7 — 1 — 32 
Total CMS Energy$746 $11 $(28)$33 $9 $771 
Consumers
Coal ash disposal areas$272 $— $(15)$11 $— $268 
Gas distribution cut, purge, and cap287 — (10)14 (1)290 
Asbestos abatement39 — (1)3 10 51 
Renewable generation assets95 4 — 3 — 102 
Gas wells plug and abandon29 — (2)1 — 28 
Total Consumers$722 $4 $(28)$32 $9 $739 
In Millions
Company and ARO DescriptionARO Liability 12/31/2021IncurredSettledAccretion
Cash Flow Revisions1
ARO Liability 12/31/2022
CMS Energy, including Consumers
Consumers$605 $1 $(39)$27 $128 $722 
Renewable generation assets23 — — 1 — 24 
Total CMS Energy$628 $1 $(39)$28 $128 $746 
Consumers
Coal ash disposal areas$157 $— $(20)$7 $128 $272 
Gas distribution cut, purge, and cap282 1 (11)15 — 287 
Asbestos abatement38 — (1)2 — 39 
Renewable generation assets93 — — 2 — 95 
Gas wells plug and abandon35 — (7)1 — 29 
Total Consumers$605 $1 $(39)$27 $128 $722 
1Increase was attributable to a proposed change for closure work at the J.H. Campbell 3 ash disposal landfill and an updated cost estimate for other coal ash disposal areas.
Consumers Energy Company  
Asset Retirement Obligations [Line Items]  
Schedule of Categories of Assets for which an ARO Liability is Recorded
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
ARO DescriptionIn-Service DateLong-Lived Assets
Closure of coal ash disposal areasvariousGenerating plants coal ash areas
Gas distribution cut, purge, and capvariousGas distribution mains and services
Asbestos abatement1973Electric and gas utility plant
Closure of renewable generation assetsvariousWind and solar generation facilities
Gas wells plug and abandonvariousGas transmission and storage
Schedule of Change in Asset Retirement Obligation
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2022IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2023
CMS Energy, including Consumers
Consumers$722 $4 $(28)$32 $9 $739 
Renewable generation assets24 7 — 1 — 32 
Total CMS Energy$746 $11 $(28)$33 $9 $771 
Consumers
Coal ash disposal areas$272 $— $(15)$11 $— $268 
Gas distribution cut, purge, and cap287 — (10)14 (1)290 
Asbestos abatement39 — (1)3 10 51 
Renewable generation assets95 4 — 3 — 102 
Gas wells plug and abandon29 — (2)1 — 28 
Total Consumers$722 $4 $(28)$32 $9 $739 
In Millions
Company and ARO DescriptionARO Liability 12/31/2021IncurredSettledAccretion
Cash Flow Revisions1
ARO Liability 12/31/2022
CMS Energy, including Consumers
Consumers$605 $1 $(39)$27 $128 $722 
Renewable generation assets23 — — 1 — 24 
Total CMS Energy$628 $1 $(39)$28 $128 $746 
Consumers
Coal ash disposal areas$157 $— $(20)$7 $128 $272 
Gas distribution cut, purge, and cap282 1 (11)15 — 287 
Asbestos abatement38 — (1)2 — 39 
Renewable generation assets93 — — 2 — 95 
Gas wells plug and abandon35 — (7)1 — 29 
Total Consumers$605 $1 $(39)$27 $128 $722 
1Increase was attributable to a proposed change for closure work at the J.H. Campbell 3 ash disposal landfill and an updated cost estimate for other coal ash disposal areas.
v3.24.0.1
Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]  
Schedule of SERP Trust Assets, ABO and Contributions Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Trust assets$132 $137 
ABO115 118 
Consumers
Trust assets$98 $101 
ABO83 85 
Schedule of Assumptions Used Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefit plans to determine benefit obligations and net periodic benefit cost:
December 31202320222021
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A5.05 %5.24 %3.02 %
DB Pension Plan B4.95 5.14 2.79 
DB SERP4.94 5.13 2.78 
OPEB Plan5.02 5.21 2.99 
Rate of compensation increase
DB Pension Plan A3.60 3.60 3.60 
DB SERP3
— 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,4
DB Pension Plan A5.27 %3.09 %2.83 %
DB SERP5.18 3.09 2.84 
OPEB Plan5.31 3.23 3.03 
Interest cost discount rate2,4
DB Pension Plan A5.12 2.44 1.97 
DB Pension Plan B5.06 2.21 1.70 
DB SERP5.06 2.21 1.72 
OPEB Plan5.10 2.45 1.99 
Expected long-term rate of return on plan assets5
DB Pension Plans7.20 6.50 6.75 
OPEB Plan7.20 6.50 6.75 
Rate of compensation increase
DB Pension Plan A3.60 3.60 3.50 
DB SERP5.50 5.50 5.50 
1The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2023 and 2022 and improvement scale MP-2020 for 2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3The DB SERP no longer requires rate of compensation increase as the last active participant retired in 2023.
4CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.20 percent in 2023. The actual return (loss) on the assets of the DB Pension Plans was 12.6 percent in 2023, (15.9) percent in 2022, and 12.0 percent in 2021.
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 Plans and DB SERPOPEB Plan
Years Ended December 31202320222021202320222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$29 $41 $53 $12 $17 $18 
Interest cost112 84 63 44 28 23 
Settlement loss— 1 1 — — — 
Expected return on plan assets(220)(206)(208)(103)(115)(109)
Amortization of:
Net loss12 40 100 12 1 8 
Prior service cost (credit)4 4 4 (41)(51)(53)
Settlement loss11 9 6 — — — 
Net periodic cost (credit)$(52)$(27)$19 $(76)$(120)$(113)
Consumers
Net periodic credit
Service cost$28 $39 $51 $11 $17 $17 
Interest cost105 79 59 42 27 23 
Expected return on plan assets(208)(194)(197)(95)(107)(102)
Amortization of:
Net loss11 37 96 12 — 8 
Prior service cost (credit)4 4 4 (40)(50)(51)
Settlement loss11 9 6 — — — 
Net periodic credit$(49)$(26)$19 $(70)$(113)$(105)
Schedule of Funded Status of Retirement Benefit Plans Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefit plans with their retirement benefit plans’ liabilities:
In Millions
DB Pension PlansDB SERPOPEB Plan
Years Ended December 31202320222023202220232022
CMS Energy, including Consumers
Benefit obligation at beginning of period$2,169 $3,070 $117 $149 $889 $1,166 
Service cost29 41 — — 12 17 
Interest cost106 81 6 3 44 28 
Plan amendments— — — — — — 
Actuarial loss (gain)52 
1
(811)
1
1 (25)9 
1
(274)
1
Benefits paid(161)(212)(10)(10)(54)(48)
Benefit obligation at end of period$2,195 $2,169 $114 $117 $900 $889 
Plan assets at fair value at beginning of period$2,820 $3,599 $— $— $1,446 $1,787 
Actual return on plan assets345 (567)— — 165 (294)
Company contribution— — 10 10 — — 
Actual benefits paid(161)(212)(10)(10)(52)(47)
Plan assets at fair value at end of period$3,004 $2,820 $— $— $1,559 $1,446 
Funded status$809 
2
$651 
2
$(114)$(117)$659 $557 
Consumers
Benefit obligation at beginning of period$85 $109 $856 $1,122 
Service cost— — 11 17 
Interest cost4 2 42 27 
Plan amendments— — — — 
Actuarial loss (gain)1 (19)10 
1
(265)
1
Benefits paid(7)(7)(52)(45)
Benefit obligation at end of period$83 $85 $867 $856 
Plan assets at fair value at beginning of period$— $— $1,350 $1,668 
Actual return on plan assets— — 154 (273)
Company contribution7 7 — — 
Actual benefits paid(7)(7)(51)(45)
Plan assets at fair value at end of period$— $— $1,453 $1,350 
Funded status$(83)$(85)$586 $494 
1The actuarial losses for 2023 for the DB Pension Plans and OPEB Plan were primarily the result of lower discount rates. The actuarial gains for 2022 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $781 million at December 31, 2023 and $632 million at December 31, 2022.
Schedule of Retirement Benefit Plan Assets (Liabilities)
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120232022
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$809 $651 
OPEB Plan659 557 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP104 107 
Consumers
Non-current assets
DB Pension Plans$781 $632 
OPEB Plan586 494 
Current liabilities
DB SERP7 7 
Non-current liabilities
DB SERP76 78 
Schedule of Net Periodic Benefit Cost Not Yet Recognized Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets see Note 2, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312023202220232022
CMS Energy, including Consumers
Regulatory assets
Net loss$634 $724 $191 $251 
Prior service cost (credit)16 21 (100)(140)
Regulatory assets$650 $745 $91 $111 
AOCI
Net loss (gain)65 69 (3)2 
Prior service cost (credit)1 1 (2)(3)
Total amounts recognized in regulatory assets and AOCI$716 $815 $86 $110 
Consumers
Regulatory assets
Net loss$634 $724 $191 $251 
Prior service cost (credit)16 21 (100)(140)
Regulatory assets$650 $745 $91 $111 
AOCI
Net loss20 20 — — 
Total amounts recognized in regulatory assets and AOCI$670 $765 $91 $111 
Schedule of Allocation of Plan Assets Presented in the following tables are the fair values of the assets of CMS Energy’s DB Pension Plans and OPEB Plan, by asset category and by level within the fair value hierarchy. For additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
DB Pension Plans
December 31, 2023December 31, 2022
TotalLevel 1Level 2TotalLevel 1
CMS Energy, including Consumers
Cash and short-term investments$178 $178 $— $122 $122 
Mutual funds47 47 — 263 263 
$225 $225 $— $385 $385 
Pooled funds2,779 2,435 
Total$3,004 $2,820 
In Millions
OPEB Plan
December 31, 2023December 31, 2022
TotalLevel 1Level 2TotalLevel 1
CMS Energy, including Consumers
Cash and short-term investments$82 $82 $— $28 $28 
U.S. government and agencies securities16 — 16 — — 
Corporate debt67 — 67 — — 
State and municipal bonds1 — 1 — — 
Foreign corporate bonds15 — 15 — — 
Common stocks161 161 — 69 69 
Mutual funds60 60 — 754 754 
$402 $303 $99 $851 $851 
Pooled funds1,157 595 
Total$1,559 $1,446 
Schedule of Asset Allocation Presented in the following table are the investment components of the assets of CMS Energy’s DB Pension Plans and OPEB Plan as of December 31, 2023:
DB Pension PlansOPEB Plan
Fixed-income securities42.0 %40.0 %
Equity securities38.0 42.0 
Real asset investments9.0 8.0 
Return-seeking fixed income6.0 5.0 
Liquid alternative investments4.0 4.0 
Cash and cash equivalents1.0 1.0 
100.0 %100.0 %
Schedule of Expected Benefit Payments Presented in the following table are the expected benefit payments for each of the next five years and the five‑year period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2024$158 $10 $55 
2025160 10 57 
2026159 10 58 
2027159 10 60 
2028159 9 61 
2029-2033785 43 315 
Consumers
2024$148 $7 $53 
2025151 7 54 
2026150 7 56 
2027150 7 57 
2028150 6 59 
2029-2033741 29 301 
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of SERP Trust Assets, ABO and Contributions Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120232022
CMS Energy, including Consumers
Trust assets$132 $137 
ABO115 118 
Consumers
Trust assets$98 $101 
ABO83 85 
Schedule of Assumptions Used Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefit plans to determine benefit obligations and net periodic benefit cost:
December 31202320222021
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A5.05 %5.24 %3.02 %
DB Pension Plan B4.95 5.14 2.79 
DB SERP4.94 5.13 2.78 
OPEB Plan5.02 5.21 2.99 
Rate of compensation increase
DB Pension Plan A3.60 3.60 3.60 
DB SERP3
— 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,4
DB Pension Plan A5.27 %3.09 %2.83 %
DB SERP5.18 3.09 2.84 
OPEB Plan5.31 3.23 3.03 
Interest cost discount rate2,4
DB Pension Plan A5.12 2.44 1.97 
DB Pension Plan B5.06 2.21 1.70 
DB SERP5.06 2.21 1.72 
OPEB Plan5.10 2.45 1.99 
Expected long-term rate of return on plan assets5
DB Pension Plans7.20 6.50 6.75 
OPEB Plan7.20 6.50 6.75 
Rate of compensation increase
DB Pension Plan A3.60 3.60 3.50 
DB SERP5.50 5.50 5.50 
1The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2023 and 2022 and improvement scale MP-2020 for 2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3The DB SERP no longer requires rate of compensation increase as the last active participant retired in 2023.
4CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.20 percent in 2023. The actual return (loss) on the assets of the DB Pension Plans was 12.6 percent in 2023, (15.9) percent in 2022, and 12.0 percent in 2021.
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 Plans and DB SERPOPEB Plan
Years Ended December 31202320222021202320222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$29 $41 $53 $12 $17 $18 
Interest cost112 84 63 44 28 23 
Settlement loss— 1 1 — — — 
Expected return on plan assets(220)(206)(208)(103)(115)(109)
Amortization of:
Net loss12 40 100 12 1 8 
Prior service cost (credit)4 4 4 (41)(51)(53)
Settlement loss11 9 6 — — — 
Net periodic cost (credit)$(52)$(27)$19 $(76)$(120)$(113)
Consumers
Net periodic credit
Service cost$28 $39 $51 $11 $17 $17 
Interest cost105 79 59 42 27 23 
Expected return on plan assets(208)(194)(197)(95)(107)(102)
Amortization of:
Net loss11 37 96 12 — 8 
Prior service cost (credit)4 4 4 (40)(50)(51)
Settlement loss11 9 6 — — — 
Net periodic credit$(49)$(26)$19 $(70)$(113)$(105)
Schedule of Funded Status of Retirement Benefit Plans Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefit plans with their retirement benefit plans’ liabilities:
In Millions
DB Pension PlansDB SERPOPEB Plan
Years Ended December 31202320222023202220232022
CMS Energy, including Consumers
Benefit obligation at beginning of period$2,169 $3,070 $117 $149 $889 $1,166 
Service cost29 41 — — 12 17 
Interest cost106 81 6 3 44 28 
Plan amendments— — — — — — 
Actuarial loss (gain)52 
1
(811)
1
1 (25)9 
1
(274)
1
Benefits paid(161)(212)(10)(10)(54)(48)
Benefit obligation at end of period$2,195 $2,169 $114 $117 $900 $889 
Plan assets at fair value at beginning of period$2,820 $3,599 $— $— $1,446 $1,787 
Actual return on plan assets345 (567)— — 165 (294)
Company contribution— — 10 10 — — 
Actual benefits paid(161)(212)(10)(10)(52)(47)
Plan assets at fair value at end of period$3,004 $2,820 $— $— $1,559 $1,446 
Funded status$809 
2
$651 
2
$(114)$(117)$659 $557 
Consumers
Benefit obligation at beginning of period$85 $109 $856 $1,122 
Service cost— — 11 17 
Interest cost4 2 42 27 
Plan amendments— — — — 
Actuarial loss (gain)1 (19)10 
1
(265)
1
Benefits paid(7)(7)(52)(45)
Benefit obligation at end of period$83 $85 $867 $856 
Plan assets at fair value at beginning of period$— $— $1,350 $1,668 
Actual return on plan assets— — 154 (273)
Company contribution7 7 — — 
Actual benefits paid(7)(7)(51)(45)
Plan assets at fair value at end of period$— $— $1,453 $1,350 
Funded status$(83)$(85)$586 $494 
1The actuarial losses for 2023 for the DB Pension Plans and OPEB Plan were primarily the result of lower discount rates. The actuarial gains for 2022 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $781 million at December 31, 2023 and $632 million at December 31, 2022.
Schedule of Retirement Benefit Plan Assets (Liabilities)
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120232022
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$809 $651 
OPEB Plan659 557 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP104 107 
Consumers
Non-current assets
DB Pension Plans$781 $632 
OPEB Plan586 494 
Current liabilities
DB SERP7 7 
Non-current liabilities
DB SERP76 78 
Schedule of Net Periodic Benefit Cost Not Yet Recognized Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets see Note 2, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312023202220232022
CMS Energy, including Consumers
Regulatory assets
Net loss$634 $724 $191 $251 
Prior service cost (credit)16 21 (100)(140)
Regulatory assets$650 $745 $91 $111 
AOCI
Net loss (gain)65 69 (3)2 
Prior service cost (credit)1 1 (2)(3)
Total amounts recognized in regulatory assets and AOCI$716 $815 $86 $110 
Consumers
Regulatory assets
Net loss$634 $724 $191 $251 
Prior service cost (credit)16 21 (100)(140)
Regulatory assets$650 $745 $91 $111 
AOCI
Net loss20 20 — — 
Total amounts recognized in regulatory assets and AOCI$670 $765 $91 $111 
Schedule of Expected Benefit Payments Presented in the following table are the expected benefit payments for each of the next five years and the five‑year period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2024$158 $10 $55 
2025160 10 57 
2026159 10 58 
2027159 10 60 
2028159 9 61 
2029-2033785 43 315 
Consumers
2024$148 $7 $53 
2025151 7 54 
2026150 7 56 
2027150 7 57 
2028150 6 59 
2029-2033741 29 301 
v3.24.0.1
Stock-based Compensation (Tables)
 12 Months Ended
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Restricted Stock Activity
Presented in the following tables is the activity for restricted stock and restricted stock units under the PISP:
CMS Energy, including ConsumersConsumers
Year Ended December 31, 2023Number of
Shares		Weighted-Average
Grant Date Fair Value
per Share		Number of
Shares		Weighted-Average
Grant Date Fair Value
per Share
Nonvested at beginning of period1,029,523 $60.13 978,146 $60.15 
Granted
Restricted stock502,039 52.62 474,917 52.42 
Restricted stock units19,082 50.32 18,315 50.34 
Vested
Restricted stock(313,344)51.54 (302,177)51.48 
Restricted stock units(15,211)52.60 (14,523)52.55 
Forfeited – restricted stock(63,987)53.57 (60,312)53.45 
Nonvested at end of period1,158,102 $59.50 1,094,366 $59.50 
Year Ended December 31, 2023CMS Energy, including
Consumers		Consumers
Granted
Time-lapse awards115,591 108,216 
Market-based awards147,453 139,255 
Performance-based awards153,383 145,008 
Restricted stock units15,545 14,925 
Dividends on market-based awards14,825 14,038 
Dividends on performance-based awards15,608 14,787 
Dividends on restricted stock units3,537 3,390 
Additional performance-based shares based on achievement of condition55,179 53,613 
Total granted521,121 493,232 
Schedule of Significant Assumptions
Presented in the following table are the most significant assumptions used to estimate the fair value of the market-based restricted stock awards:
Years Ended December 31202320222021
Expected volatility30.3 %27.3 %27.6 %
Expected dividend yield2.9 2.8 2.8 
Risk-free rate3.9 1.4 0.2 
Summary of Weighted-average Grant-date Fair Value
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$52.62 $48.69 $43.52 
Restricted stock units granted50.32 56.13 54.11 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$52.42 $48.57 $42.85 
Restricted stock units granted50.34 56.07 53.93 
Schedule of Amounts Related to Restricted Stock Awards and Restricted Stock Units
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Fair value of shares that vested during the year$20 $27 $25 
Compensation expense recognized28 26 22 
Income tax benefit recognized3 — 1 
Consumers
Fair value of shares that vested during the year$19 $25 $24 
Compensation expense recognized26 25 21 
Income tax benefit recognized2 — 1 
Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Restricted Stock Activity
Presented in the following tables is the activity for restricted stock and restricted stock units under the PISP:
CMS Energy, including ConsumersConsumers
Year Ended December 31, 2023Number of
Shares		Weighted-Average
Grant Date Fair Value
per Share		Number of
Shares		Weighted-Average
Grant Date Fair Value
per Share
Nonvested at beginning of period1,029,523 $60.13 978,146 $60.15 
Granted
Restricted stock502,039 52.62 474,917 52.42 
Restricted stock units19,082 50.32 18,315 50.34 
Vested
Restricted stock(313,344)51.54 (302,177)51.48 
Restricted stock units(15,211)52.60 (14,523)52.55 
Forfeited – restricted stock(63,987)53.57 (60,312)53.45 
Nonvested at end of period1,158,102 $59.50 1,094,366 $59.50 
Year Ended December 31, 2023CMS Energy, including
Consumers		Consumers
Granted
Time-lapse awards115,591 108,216 
Market-based awards147,453 139,255 
Performance-based awards153,383 145,008 
Restricted stock units15,545 14,925 
Dividends on market-based awards14,825 14,038 
Dividends on performance-based awards15,608 14,787 
Dividends on restricted stock units3,537 3,390 
Additional performance-based shares based on achievement of condition55,179 53,613 
Total granted521,121 493,232 
Schedule of Significant Assumptions
Presented in the following table are the most significant assumptions used to estimate the fair value of the market-based restricted stock awards:
Years Ended December 31202320222021
Expected volatility30.3 %27.3 %27.6 %
Expected dividend yield2.9 2.8 2.8 
Risk-free rate3.9 1.4 0.2 
Summary of Weighted-average Grant-date Fair Value
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$52.62 $48.69 $43.52 
Restricted stock units granted50.32 56.13 54.11 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$52.42 $48.57 $42.85 
Restricted stock units granted50.34 56.07 53.93 
Schedule of Amounts Related to Restricted Stock Awards and Restricted Stock Units
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Fair value of shares that vested during the year$20 $27 $25 
Compensation expense recognized28 26 22 
Income tax benefit recognized3 — 1 
Consumers
Fair value of shares that vested during the year$19 $25 $24 
Compensation expense recognized26 25 21 
Income tax benefit recognized2 — 1 
v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Taxes [Line Items]  
Schedule of Effective Income Tax Rate Reconciliation
Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate:
In Millions, Except Tax Rate
Years Ended December 31202320222021
CMS Energy, including Consumers
Income from continuing operations before income taxes$954 $902 $823 
Income tax expense at statutory rate200 189 173 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1
31 51 39 
Renewable energy tax credits(58)(51)(44)
TCJA excess deferred taxes2
(40)(65)(50)
Taxes attributable to noncontrolling interests17 5 5 
Accelerated flow-through of regulatory tax benefits3
— (39)(28)
Other, net(3)3 — 
Income tax expense$147 $93 $95 
Effective tax rate15.4 %10.3 %11.5 %
Consumers
Income from continuing operations before income taxes$1,028 $1,085 $1,024 
Income tax expense at statutory rate216 228 215 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1
36 59 54 
Renewable energy tax credits(46)(46)(37)
TCJA excess deferred taxes2
(40)(65)(50)
Accelerated flow-through of regulatory tax benefits3
— (39)(28)
Other, net(5)3 2 
Income tax expense$161 $140 $156 
Effective tax rate15.7 %12.9 %15.2 %
1CMS Energy initiated a plan to divest immaterial business activities in a non‑Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction after 2023. As a result of these actions, CMS Energy reversed a $13 million non‑Michigan reserve, all of which was recognized at Consumers.
2In 2020, the MPSC authorized Consumers to accelerate the amortization of the gas portion of its regulatory liability associated with unprotected, non-property-related excess deferred income taxes resulting from the TCJA. This portion of the regulatory liability was fully amortized in 2022.
3In 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 were fully amortized in 2022.
Summary of Significant Components of Income Tax Expense
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Current income taxes
Federal$5 $6 $(1)
State and local1 — 1 
$6 $6 $— 
Deferred income taxes
Federal107 4 49 
State and local38 65 49 
$145 $69 $98 
Deferred income tax credit(4)18 (3)
Tax expense$147 $93 $95 
Consumers
Current income taxes
Federal$3 $(2)$(13)
State and local2 8 15 
$5 $6 $2 
Deferred income taxes
Federal117 50 103 
State and local43 66 54 
$160 $116 $157 
Deferred income tax credit(4)18 (3)
Tax expense$161 $140 $156 
Summary of Principal Components of Deferred Income Tax Assets and Liabilities
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120232022
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$428 $385 
Net regulatory tax liability305 318 
Reserves and accruals28 35 
Total deferred income tax assets$761 $738 
Valuation allowance(2)(2)
Total deferred income tax assets, net of valuation allowance$759 $736 
Deferred income tax liabilities
Plant, property, and equipment$(2,520)$(2,515)
Employee benefits(473)(433)
Gas inventory(66)(53)
Securitized costs(194)(39)
Other(121)(103)
Total deferred income tax liabilities$(3,374)$(3,143)
Total net deferred income tax liabilities$(2,615)$(2,407)
Consumers
Deferred income tax assets
Net regulatory tax liability$305 $318 
Tax loss and credit carryforwards175 145 
Reserves and accruals27 28 
Total deferred income tax assets$507 $491 
Deferred income tax liabilities
Plant, property, and equipment$(2,498)$(2,458)
Employee benefits(459)(423)
Gas inventory(66)(53)
Securitized costs(194)(39)
Other(79)(103)
Total deferred income tax liabilities$(3,296)$(3,076)
Total net deferred income tax liabilities$(2,789)$(2,585)
Summary of Loss And Credit Carryforwards
Presented in the following table are the tax loss and credit carryforwards at December 31, 2023:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
State net operating loss carryforwards$69 2030 – 2033
Local net operating loss carryforwards3 2024 – 2040
General business credits356 2035 – 2043
Total tax attributes$428 
Consumers
State net operating loss carryforwards$53 2030 – 2033
General business credits122 2035 – 2043
Total tax attributes$175 
Schedule of Reconciliation of Uncertain Tax Benefits
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Balance at beginning of period$28 $27 $25 
Additions for current-year tax positions1 1 2 
Additions for prior-year tax positions— 1 — 
Reductions for prior-year tax positions(3)(1)— 
Balance at end of period$26 $28 $27 
Consumers
Balance at beginning of period$36 $34 $31 
Additions for current-year tax positions1 3 3 
Additions for prior-year tax positions2 1 — 
Reductions for prior-year tax positions(3)(2)— 
Balance at end of period$36 $36 $34 
Consumers Energy Company  
Income Taxes [Line Items]  
Schedule of Effective Income Tax Rate Reconciliation
Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate:
In Millions, Except Tax Rate
Years Ended December 31202320222021
CMS Energy, including Consumers
Income from continuing operations before income taxes$954 $902 $823 
Income tax expense at statutory rate200 189 173 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1
31 51 39 
Renewable energy tax credits(58)(51)(44)
TCJA excess deferred taxes2
(40)(65)(50)
Taxes attributable to noncontrolling interests17 5 5 
Accelerated flow-through of regulatory tax benefits3
— (39)(28)
Other, net(3)3 — 
Income tax expense$147 $93 $95 
Effective tax rate15.4 %10.3 %11.5 %
Consumers
Income from continuing operations before income taxes$1,028 $1,085 $1,024 
Income tax expense at statutory rate216 228 215 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect1
36 59 54 
Renewable energy tax credits(46)(46)(37)
TCJA excess deferred taxes2
(40)(65)(50)
Accelerated flow-through of regulatory tax benefits3
— (39)(28)
Other, net(5)3 2 
Income tax expense$161 $140 $156 
Effective tax rate15.7 %12.9 %15.2 %
1CMS Energy initiated a plan to divest immaterial business activities in a non‑Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction after 2023. As a result of these actions, CMS Energy reversed a $13 million non‑Michigan reserve, all of which was recognized at Consumers.
2In 2020, the MPSC authorized Consumers to accelerate the amortization of the gas portion of its regulatory liability associated with unprotected, non-property-related excess deferred income taxes resulting from the TCJA. This portion of the regulatory liability was fully amortized in 2022.
3In 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 were fully amortized in 2022.
Summary of Significant Components of Income Tax Expense
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Current income taxes
Federal$5 $6 $(1)
State and local1 — 1 
$6 $6 $— 
Deferred income taxes
Federal107 4 49 
State and local38 65 49 
$145 $69 $98 
Deferred income tax credit(4)18 (3)
Tax expense$147 $93 $95 
Consumers
Current income taxes
Federal$3 $(2)$(13)
State and local2 8 15 
$5 $6 $2 
Deferred income taxes
Federal117 50 103 
State and local43 66 54 
$160 $116 $157 
Deferred income tax credit(4)18 (3)
Tax expense$161 $140 $156 
Summary of Principal Components of Deferred Income Tax Assets and Liabilities
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120232022
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$428 $385 
Net regulatory tax liability305 318 
Reserves and accruals28 35 
Total deferred income tax assets$761 $738 
Valuation allowance(2)(2)
Total deferred income tax assets, net of valuation allowance$759 $736 
Deferred income tax liabilities
Plant, property, and equipment$(2,520)$(2,515)
Employee benefits(473)(433)
Gas inventory(66)(53)
Securitized costs(194)(39)
Other(121)(103)
Total deferred income tax liabilities$(3,374)$(3,143)
Total net deferred income tax liabilities$(2,615)$(2,407)
Consumers
Deferred income tax assets
Net regulatory tax liability$305 $318 
Tax loss and credit carryforwards175 145 
Reserves and accruals27 28 
Total deferred income tax assets$507 $491 
Deferred income tax liabilities
Plant, property, and equipment$(2,498)$(2,458)
Employee benefits(459)(423)
Gas inventory(66)(53)
Securitized costs(194)(39)
Other(79)(103)
Total deferred income tax liabilities$(3,296)$(3,076)
Total net deferred income tax liabilities$(2,789)$(2,585)
Summary of Loss And Credit Carryforwards
Presented in the following table are the tax loss and credit carryforwards at December 31, 2023:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
State net operating loss carryforwards$69 2030 – 2033
Local net operating loss carryforwards3 2024 – 2040
General business credits356 2035 – 2043
Total tax attributes$428 
Consumers
State net operating loss carryforwards$53 2030 – 2033
General business credits122 2035 – 2043
Total tax attributes$175 
Schedule of Reconciliation of Uncertain Tax Benefits
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Balance at beginning of period$28 $27 $25 
Additions for current-year tax positions1 1 2 
Additions for prior-year tax positions— 1 — 
Reductions for prior-year tax positions(3)(1)— 
Balance at end of period$26 $28 $27 
Consumers
Balance at beginning of period$36 $34 $31 
Additions for current-year tax positions1 3 3 
Additions for prior-year tax positions2 1 — 
Reductions for prior-year tax positions(3)(2)— 
Balance at end of period$36 $36 $34 
v3.24.0.1
Earnings Per Share - CMS Energy (Tables)
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Summary of 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
Years Ended December 31202320222021
Income available to common stockholders
Income from continuing operations$807 $809 $728 
Less loss attributable to noncontrolling interests(79)(24)(23)
Less preferred stock dividends10 10 5 
Income from continuing operations available to common stockholders – basic and diluted$876 $823 $746 
Average common shares outstanding
Weighted-average shares – basic291.2 289.5 289.0 
Add dilutive nonvested stock awards0.5 0.3 0.5 
Add dilutive forward equity sale contracts— 0.2 — 
Weighted-average shares – diluted291.7 290.0 289.5 
Income from continuing operations per average common share available to common stockholders
Basic$3.01 $2.84 $2.58 
Diluted3.01 2.84 2.58 
v3.24.0.1
Revenue (Tables)
 12 Months Ended
Dec. 31, 2023
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue
Presented in the following tables are the components of operating revenue:
In Millions
Year Ended December 31, 2023Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,686 $2,394 $— $7,080 
Other— — 181 181 
Revenue recognized from contracts with customers$4,686 $2,394 $181 $7,261 
Leasing income— — 116 116 
Financing income10 6 — 16 
Consumers alternative-revenue programs49 20 — 69 
Total operating revenue – CMS Energy$4,745 $2,420 $297 $7,462 
Consumers
Consumers utility revenue
Residential$2,236 $1,619 $3,855 
Commercial1,550 489 2,039 
Industrial660 60 720 
Other240 226 466 
Revenue recognized from contracts with customers$4,686 $2,394 $7,080 
Financing income10 6 16 
Alternative-revenue programs49 20 69 
Other non-segment revenue— — 1 
Total operating revenue – Consumers$4,745 $2,420 $7,166 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$5,395 $2,720 $— $8,115 
Other— — 205 205 
Revenue recognized from contracts with customers$5,395 $2,720 $205 $8,320 
Leasing income— — 240 240 
Financing income10 6 — 16 
Consumers alternative-revenue programs43 14 — 57 
Consumers revenues to be refunded(29)(8)— (37)
Total operating revenue – CMS Energy$5,419 $2,732 $445 $8,596 
Consumers
Consumers utility revenue
Residential$2,523 $1,879 $4,402 
Commercial1,733 559 2,292 
Industrial792 75 867 
Other347 207 554 
Revenue recognized from contracts with customers$5,395 $2,720 $8,115 
Financing income10 6 16 
Alternative-revenue programs43 14 57 
Revenues to be refunded(29)(8)(37)
Total operating revenue – Consumers$5,419 $2,732 $8,151 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2021Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,915 $2,046 $— $6,961 
Other— — 114 114 
Revenue recognized from contracts with customers$4,915 $2,046 $114 $7,075 
Leasing income— — 194 194 
Financing income10 5 — 15 
Consumers alternative-revenue programs33 12 — 45 
Total operating revenue – CMS Energy$4,958 $2,063 $308 $7,329 
Consumers
Consumers utility revenue
Residential$2,402 $1,396 $3,798 
Commercial1,573 396 1,969 
Industrial624 54 678 
Other316 200 516 
Revenue recognized from contracts with customers$4,915 $2,046 $6,961 
Financing income10 5 15 
Alternative-revenue programs33 12 45 
Total operating revenue – Consumers$4,958 $2,063 $7,021 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
Consumers Energy Company  
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue
Presented in the following tables are the components of operating revenue:
In Millions
Year Ended December 31, 2023Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,686 $2,394 $— $7,080 
Other— — 181 181 
Revenue recognized from contracts with customers$4,686 $2,394 $181 $7,261 
Leasing income— — 116 116 
Financing income10 6 — 16 
Consumers alternative-revenue programs49 20 — 69 
Total operating revenue – CMS Energy$4,745 $2,420 $297 $7,462 
Consumers
Consumers utility revenue
Residential$2,236 $1,619 $3,855 
Commercial1,550 489 2,039 
Industrial660 60 720 
Other240 226 466 
Revenue recognized from contracts with customers$4,686 $2,394 $7,080 
Financing income10 6 16 
Alternative-revenue programs49 20 69 
Other non-segment revenue— — 1 
Total operating revenue – Consumers$4,745 $2,420 $7,166 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$5,395 $2,720 $— $8,115 
Other— — 205 205 
Revenue recognized from contracts with customers$5,395 $2,720 $205 $8,320 
Leasing income— — 240 240 
Financing income10 6 — 16 
Consumers alternative-revenue programs43 14 — 57 
Consumers revenues to be refunded(29)(8)— (37)
Total operating revenue – CMS Energy$5,419 $2,732 $445 $8,596 
Consumers
Consumers utility revenue
Residential$2,523 $1,879 $4,402 
Commercial1,733 559 2,292 
Industrial792 75 867 
Other347 207 554 
Revenue recognized from contracts with customers$5,395 $2,720 $8,115 
Financing income10 6 16 
Alternative-revenue programs43 14 57 
Revenues to be refunded(29)(8)(37)
Total operating revenue – Consumers$5,419 $2,732 $8,151 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2021Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,915 $2,046 $— $6,961 
Other— — 114 114 
Revenue recognized from contracts with customers$4,915 $2,046 $114 $7,075 
Leasing income— — 194 194 
Financing income10 5 — 15 
Consumers alternative-revenue programs33 12 — 45 
Total operating revenue – CMS Energy$4,958 $2,063 $308 $7,329 
Consumers
Consumers utility revenue
Residential$2,402 $1,396 $3,798 
Commercial1,573 396 1,969 
Industrial624 54 678 
Other316 200 516 
Revenue recognized from contracts with customers$4,915 $2,046 $6,961 
Financing income10 5 15 
Alternative-revenue programs33 12 45 
Total operating revenue – Consumers$4,958 $2,063 $7,021 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
v3.24.0.1
Other Income and Other Expense (Tables)
 12 Months Ended
Dec. 31, 2023
Other Income and Expenses [Line Items]  
Summary of Components of Other Income and Other Expense
Presented in the following table are the components of other income and other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Other income
Gain on extinguishment of debt1
$131 $— $— 
Interest income37 5 3 
Allowance for equity funds used during construction7 6 8 
Income from equity method investees7 3 10 
All other13 5 9 
Total other income – CMS Energy$195 $19 $30 
Consumers
Other income
Interest income$25 $2 $2 
Interest income - related parties5 5 5 
Allowance for equity funds used during construction7 6 8 
All other12 4 8 
Total other income – Consumers$49 $17 $23 
CMS Energy, including Consumers
Other expense
Donations$(1)$(9)$(6)
Civic and political expenditures(5)(6)(5)
All other(7)(12)(7)
Total other expense – CMS Energy$(13)$(27)$(18)
Consumers
Other expense
Donations$(1)$(9)$(6)
Civic and political expenditures(5)(6)(5)
All other(6)(10)(7)
Total other expense – Consumers$(12)$(25)$(18)
1For information regarding the gain on extinguishment of debt, see Note 4, Financings and Capitalization—CMS Energy’s Purchase of Consumers’ First Mortgage Bonds.
Consumers Energy Company  
Other Income and Expenses [Line Items]  
Summary of Components of Other Income and Other Expense
Presented in the following table are the components of other income and other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Other income
Gain on extinguishment of debt1
$131 $— $— 
Interest income37 5 3 
Allowance for equity funds used during construction7 6 8 
Income from equity method investees7 3 10 
All other13 5 9 
Total other income – CMS Energy$195 $19 $30 
Consumers
Other income
Interest income$25 $2 $2 
Interest income - related parties5 5 5 
Allowance for equity funds used during construction7 6 8 
All other12 4 8 
Total other income – Consumers$49 $17 $23 
CMS Energy, including Consumers
Other expense
Donations$(1)$(9)$(6)
Civic and political expenditures(5)(6)(5)
All other(7)(12)(7)
Total other expense – CMS Energy$(13)$(27)$(18)
Consumers
Other expense
Donations$(1)$(9)$(6)
Civic and political expenditures(5)(6)(5)
All other(6)(10)(7)
Total other expense – Consumers$(12)$(25)$(18)
1For information regarding the gain on extinguishment of debt, see Note 4, Financings and Capitalization—CMS Energy’s Purchase of Consumers’ First Mortgage Bonds.
v3.24.0.1
Reportable Segments (Tables)
 12 Months Ended
Dec. 31, 2023
Segment Reporting Information [Line Items]  
Schedule of Financial Information by Reportable Segments
Presented in the following tables is financial information by segment:
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Operating revenue
Electric utility$4,745 $5,419 $4,958 
Gas utility2,420 2,732 2,063 
NorthStar Clean Energy297 445 308 
Total operating revenue – CMS Energy$7,462 $8,596 $7,329 
Consumers
Operating revenue
Electric utility$4,745 $5,419 $4,958 
Gas utility2,420 2,732 2,063 
Other reconciling items1 — — 
Total operating revenue – Consumers$7,166 $8,151 $7,021 
CMS Energy, including Consumers
Depreciation and amortization
Electric utility$797 $757 $772 
Gas utility338 330 304 
NorthStar Clean Energy43 38 37 
Other reconciling items2 1 1 
Total depreciation and amortization – CMS Energy$1,180 $1,126 $1,114 
Consumers
Depreciation and amortization
Electric utility$797 $757 $772 
Gas utility338 330 304 
Other reconciling items2 1 1 
Total depreciation and amortization – Consumers$1,137 $1,088 $1,077 
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Income from equity method investees1
NorthStar Clean Energy$7 $3 $10 
Total income from equity method investees – CMS Energy$7 $3 $10 
CMS Energy, including Consumers
Interest charges
Electric utility$281 $218 $207 
Gas utility158 116 104 
NorthStar Clean Energy2 3 6 
Other reconciling items202 182 183 
Total interest charges – CMS Energy$643 $519 $500 
Consumers
Interest charges
Electric utility$285 $218 $207 
Gas utility161 116 104 
Other reconciling items2 1 — 
Total interest charges – Consumers$448 $335 $311 
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility$67 $109 $117 
Gas utility98 32 39 
NorthStar Clean Energy4 3 (2)
Other reconciling items(22)(51)(59)
Total income tax expense – CMS Energy$147 $93 $95 
Consumers
Income tax expense (benefit)
Electric utility$67 $109 $117 
Gas utility98 32 39 
Other reconciling items(4)(1)— 
Total income tax expense – Consumers$161 $140 $156 
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$550 $567 $565 
Gas utility315 378 302 
NorthStar Clean Energy67 34 23 
Other reconciling items(55)(152)458 
Total net income available to common stockholders – CMS Energy$877 $827 $1,348 
Consumers
Net income (loss) available to common stockholder
Electric utility$550 $567 $565 
Gas utility315 378 302 
Other reconciling items— (2)(1)
Total net income available to common stockholder – Consumers$865 $943 $866 
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2
$19,302 $17,870 $18,147 
Gas utility2
12,383 11,443 10,601 
NorthStar Clean Energy1,420 1,148 1,122 
Other reconciling items30 30 23 
Total plant, property, and equipment, gross – CMS Energy$33,135 $30,491 $29,893 
Consumers
Plant, property, and equipment, gross
Electric utility2
$19,302 $17,870 $18,147 
Gas utility2
12,383 11,443 10,601 
Other reconciling items38 29 23 
Total plant, property, and equipment, gross – Consumers$31,723 $29,342 $28,771 
CMS Energy, including Consumers
Investments in equity method investees1
NorthStar Clean Energy$76 $71 $71 
Total investments in equity method investees – CMS Energy$76 $71 $71 
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Total assets
Electric utility2
$19,358 $17,907 $16,493 
Gas utility2
12,353 11,873 10,517 
NorthStar Clean Energy1,604 1,464 1,312 
Other reconciling items202 109 431 
Total assets – CMS Energy$33,517 $31,353 $28,753 
Consumers
Total assets
Electric utility2
$19,417 $17,968 $16,555 
Gas utility2
12,397 11,918 10,564 
Other reconciling items38 30 21 
Total assets – Consumers$31,852 $29,916 $27,140 
CMS Energy, including Consumers
Capital expenditures3
Electric utility4
$2,081 $1,265 $1,153 
Gas utility4
1,041 1,008 989 
NorthStar Clean Energy156 113 17 
Other reconciling items2 7 2 
Total capital expenditures – CMS Energy$3,280 $2,393 $2,161 
Consumers
Capital expenditures3
Electric utility4
$2,081 $1,265 $1,153 
Gas utility4
1,041 1,008 989 
Other reconciling items23 7 2 
Total capital expenditures – Consumers$3,145 $2,280 $2,144 
1Consumers had no equity method investments.
2Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
3Amounts include assets placed under finance lease.
4Amounts include a portion of Consumers’ capital expenditures for plant and equipment 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
Years Ended December 31202320222021
CMS Energy, including Consumers
Operating revenue
Electric utility$4,745 $5,419 $4,958 
Gas utility2,420 2,732 2,063 
NorthStar Clean Energy297 445 308 
Total operating revenue – CMS Energy$7,462 $8,596 $7,329 
Consumers
Operating revenue
Electric utility$4,745 $5,419 $4,958 
Gas utility2,420 2,732 2,063 
Other reconciling items1 — — 
Total operating revenue – Consumers$7,166 $8,151 $7,021 
CMS Energy, including Consumers
Depreciation and amortization
Electric utility$797 $757 $772 
Gas utility338 330 304 
NorthStar Clean Energy43 38 37 
Other reconciling items2 1 1 
Total depreciation and amortization – CMS Energy$1,180 $1,126 $1,114 
Consumers
Depreciation and amortization
Electric utility$797 $757 $772 
Gas utility338 330 304 
Other reconciling items2 1 1 
Total depreciation and amortization – Consumers$1,137 $1,088 $1,077 
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Income from equity method investees1
NorthStar Clean Energy$7 $3 $10 
Total income from equity method investees – CMS Energy$7 $3 $10 
CMS Energy, including Consumers
Interest charges
Electric utility$281 $218 $207 
Gas utility158 116 104 
NorthStar Clean Energy2 3 6 
Other reconciling items202 182 183 
Total interest charges – CMS Energy$643 $519 $500 
Consumers
Interest charges
Electric utility$285 $218 $207 
Gas utility161 116 104 
Other reconciling items2 1 — 
Total interest charges – Consumers$448 $335 $311 
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility$67 $109 $117 
Gas utility98 32 39 
NorthStar Clean Energy4 3 (2)
Other reconciling items(22)(51)(59)
Total income tax expense – CMS Energy$147 $93 $95 
Consumers
Income tax expense (benefit)
Electric utility$67 $109 $117 
Gas utility98 32 39 
Other reconciling items(4)(1)— 
Total income tax expense – Consumers$161 $140 $156 
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$550 $567 $565 
Gas utility315 378 302 
NorthStar Clean Energy67 34 23 
Other reconciling items(55)(152)458 
Total net income available to common stockholders – CMS Energy$877 $827 $1,348 
Consumers
Net income (loss) available to common stockholder
Electric utility$550 $567 $565 
Gas utility315 378 302 
Other reconciling items— (2)(1)
Total net income available to common stockholder – Consumers$865 $943 $866 
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2
$19,302 $17,870 $18,147 
Gas utility2
12,383 11,443 10,601 
NorthStar Clean Energy1,420 1,148 1,122 
Other reconciling items30 30 23 
Total plant, property, and equipment, gross – CMS Energy$33,135 $30,491 $29,893 
Consumers
Plant, property, and equipment, gross
Electric utility2
$19,302 $17,870 $18,147 
Gas utility2
12,383 11,443 10,601 
Other reconciling items38 29 23 
Total plant, property, and equipment, gross – Consumers$31,723 $29,342 $28,771 
CMS Energy, including Consumers
Investments in equity method investees1
NorthStar Clean Energy$76 $71 $71 
Total investments in equity method investees – CMS Energy$76 $71 $71 
In Millions
Years Ended December 31202320222021
CMS Energy, including Consumers
Total assets
Electric utility2
$19,358 $17,907 $16,493 
Gas utility2
12,353 11,873 10,517 
NorthStar Clean Energy1,604 1,464 1,312 
Other reconciling items202 109 431 
Total assets – CMS Energy$33,517 $31,353 $28,753 
Consumers
Total assets
Electric utility2
$19,417 $17,968 $16,555 
Gas utility2
12,397 11,918 10,564 
Other reconciling items38 30 21 
Total assets – Consumers$31,852 $29,916 $27,140 
CMS Energy, including Consumers
Capital expenditures3
Electric utility4
$2,081 $1,265 $1,153 
Gas utility4
1,041 1,008 989 
NorthStar Clean Energy156 113 17 
Other reconciling items2 7 2 
Total capital expenditures – CMS Energy$3,280 $2,393 $2,161 
Consumers
Capital expenditures3
Electric utility4
$2,081 $1,265 $1,153 
Gas utility4
1,041 1,008 989 
Other reconciling items23 7 2 
Total capital expenditures – Consumers$3,145 $2,280 $2,144 
1Consumers had no equity method investments.
2Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
3Amounts include assets placed under finance lease.
4Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
v3.24.0.1
Related party Transactions - Consumers (Tables)
 12 Months Ended
Dec. 31, 2023
Consumers Energy Company  
Related Party Transaction [Line Items]  
Schedule of Related Party Transactions, by Related Party
Presented in the following table is Consumers’ expense recorded from related-party transactions for the years ended December 31:
In Millions
DescriptionRelated Party202320222021
Purchases of capacity and energyAffiliates of NorthStar Clean Energy$75 $76 $77 
v3.24.0.1
Variable Interest Entities (Tables)
 12 Months Ended
Dec. 31, 2023
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
December 3120232022
Current
Cash and cash equivalents$28 $43 
Accounts receivable3 7 
Prepayments and other current assets4 7 
Non-current
Plant, property, and equipment, net1,064 850 
Construction work in progress— 156 
Other non-current assets3 — 
Total assets1
$1,102 $1,063 
Current
Current portion of long-term debt$— $100 
Accounts payable12 33 
Non-current
Non-current portion of finance leases23 23 
Asset retirement obligations32 24 
Total liabilities$67 $180 
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.
v3.24.0.1
Exit Activities and Discontinued Operations (Tables)
 12 Months Ended
Dec. 31, 2023
Restructuring Cost and Reserve [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
Years Ended December 3120232022
Retention benefit liability at beginning of period$21 $14 
Costs deferred as a regulatory asset
16 24 
Costs paid or settled(21)(17)
Retention benefit liability at the end of the period1
$16 $21 
1Includes current portion of other liabilities of $7 million at December 31, 2023 and $13 million at December 31, 2022.
Schedule of Income, Assets, and Liabilities from Discontinued Operations The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Years Ended December 3120222021
Operating revenue$— $209 
Expenses
Operating expenses— 60 
Interest expense— 34 
Income before income taxes$— $115 
Gain on sale5 657 
Income from discontinued operations before income taxes$5 $772 
Income tax expense1 170 
Income from discontinued operations, net of tax$4 $602 
Consumers Energy Company  
Restructuring Cost and Reserve [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
Years Ended December 3120232022
Retention benefit liability at beginning of period$21 $14 
Costs deferred as a regulatory asset
16 24 
Costs paid or settled(21)(17)
Retention benefit liability at the end of the period1
$16 $21 
1Includes current portion of other liabilities of $7 million at December 31, 2023 and $13 million at December 31, 2022.
v3.24.0.1
Regulatory Matters (Schedule of Regulatory Assets and Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Public Utilities, General Disclosures [Line Items]    
Total current regulatory assets $ 203 $ 57
Total non-current regulatory assets 3,683 3,595
Total current regulatory liabilities 56 104
Total non-current regulatory liabilities 3,894 3,796
Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total current regulatory assets 203 57
Total non-current regulatory assets 3,683 3,595
Total regulatory assets 3,886 3,652
Total current regulatory liabilities 56 104
Total non-current regulatory liabilities 3,894 3,796
Total regulatory liabilities 3,950 3,900
Income taxes, net | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total current regulatory liabilities 49 48
Total non-current regulatory liabilities 1,220 1,267
Reserve for customer refunds | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total current regulatory liabilities 2 47
Total regulatory liabilities 15  
Other | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total current regulatory liabilities 5 9
Total non-current regulatory liabilities 20 20
Cost of removal | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory liabilities 2,545 2,426
Renewable energy grant | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory liabilities 43 45
Renewable energy plan | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory liabilities 29 32
Energy waste reduction plan | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory liabilities 25 6
Postretirement benefits expense deferral mechanism | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory liabilities 12 0
2022 PSCR underrecovery | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total current regulatory assets 126 0
Total non-current regulatory assets 126 0
Energy Waste Reduction Plan Incentive | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total current regulatory assets 54 47
Total non-current regulatory assets   55
Retention incentive program | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total current regulatory assets 12 2
Total non-current regulatory assets 27 31
Other | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total current regulatory assets 11 8
Total non-current regulatory assets 26 29
Costs of coal-fueled electric generating units to be retired | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 1,265 1,258
Securitized costs | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 778 843
Postretirement benefits | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 741 856
ARO | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 328 281
MGP sites | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 99 108
Unamortized loss on reacquired debt | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 96 100
Decommissioning costs | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 83 24
Postretirement benefits expense deferral mechanism | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 24 0
Ludington overhaul contract dispute | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 13 0
Energy waste reduction plan | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets $ 19 $ 10
v3.24.0.1
Regulatory Matters - (Narrative) (Details)
$ in Millions
 1 Months Ended 12 Months Ended
Aug. 31, 2023
USD ($)
Jan. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Jun. 30, 2022
USD ($)
Dec. 31, 2023
USD ($)
facility
Mar. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Mar. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2016
unit
Dec. 31, 2015
unit
Dec. 31, 2013
USD ($)
Nov. 30, 2023
USD ($)
Sep. 30, 2023
USD ($)
Jun. 30, 2023
USD ($)
Public Utilities, General Disclosures [Line Items]                              
Incentive revenue         $ 7,462   $ 8,596   $ 7,329            
Regulatory assets     $ 3,595   3,683   3,595                
Consumers Energy Company                              
Public Utilities, General Disclosures [Line Items]                              
Incentive revenue         7,166   8,151   7,021            
Regulatory assets     3,595   3,683   3,595                
Regulatory liability     3,900   3,950   3,900                
Purchased and interchange power         1,331   1,867   1,599            
Cost of gas sold         897   1,243   726            
Consumers Energy Company | Voluntary refund mechanism                              
Public Utilities, General Disclosures [Line Items]                              
Regulatory liability     22       22                
Consumers Energy Company | Reserve for customer refunds                              
Public Utilities, General Disclosures [Line Items]                              
Regulatory liability         15                    
Consumers Energy Company | Contributions to assistance programs                              
Public Utilities, General Disclosures [Line Items]                              
Regulatory liability         $ 10                    
Consumers Energy Company | Renewable energy grant                              
Public Utilities, General Disclosures [Line Items]                              
Proceeds from government grant                       $ 69      
Consumers Energy Company | MGP sites                              
Public Utilities, General Disclosures [Line Items]                              
Number of former MGPs | facility         23                    
Regulatory asset collection period         10 years                    
Consumers Energy Company | Gas-Fueled Electric Generation                              
Public Utilities, General Disclosures [Line Items]                              
Number of units retired | unit                     3        
Consumers Energy Company | Coal-Fueled Electric Generation                              
Public Utilities, General Disclosures [Line Items]                              
Number of units retired | unit                   7          
Consumers Energy Company | J.H. Campbell Generating Units                              
Public Utilities, General Disclosures [Line Items]                              
Regulatory assets       $ 1,300                      
Rate of return on equity authorized       9.00%                      
PSCR underrecoveries | Consumers Energy Company                              
Public Utilities, General Disclosures [Line Items]                              
PSCR underrecoveries     401   $ 0   401                
Purchased and interchange power             2,500   $ 2,100            
Over (under) recovery for gas fuel and power supply costs authorized                           $ 7  
Over (under) recovery for gas fuel and power supply costs requested           $ (404)                  
PSCR underrecoveries | Consumers Energy Company | Revision of Prior Period, Adjustment                              
Public Utilities, General Disclosures [Line Items]                              
Over (under) recovery for gas fuel and power supply costs requested                         $ (401)    
Energy Waste Reduction Plan Incentive | Consumers Energy Company                              
Public Utilities, General Disclosures [Line Items]                              
Authorized recovery collection                         $ 55    
Incentive revenue         58   $ 55                
Regulatory assets         $ 58                    
Electric Rate Case | Consumers Energy Company                              
Public Utilities, General Disclosures [Line Items]                              
Rate of return on equity authorized   9.90%                          
Additional annual rate increase authorized   $ 155                          
Surcharge for the recovery of excess distribution investments   $ 6                          
Gas Rate Case | Consumers Energy Company                              
Public Utilities, General Disclosures [Line Items]                              
Rate of return on equity authorized 9.90%                            
Additional annual rate increase authorized $ 95                            
Requested annual rate increase     $ 212                        
Requested annual rate increase, as a percent     10.25%                        
GCR underrecoveries | Consumers Energy Company                              
Public Utilities, General Disclosures [Line Items]                              
Over (under) recovery for gas fuel and power supply costs authorized           (9)                  
Over (under) recovery for gas fuel and power supply costs requested                             $ (15)
Cost of gas sold           $ 1,100   $ 700              
v3.24.0.1
Regulatory Matters (Schedule of Assets and Liabilities for PSCR and GCR Over/(Under) Recoveries) (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Public Utilities, General Disclosures [Line Items]    
Accrued rate refunds $ 54 $ 0
Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Accounts receivable and accrued revenue 0 409
Accrued rate refunds 54 0
Consumers Energy Company | PSCR underrecoveries    
Public Utilities, General Disclosures [Line Items]    
PSCR underrecoveries 0 401
Accrued rate refunds 10 0
Consumers Energy Company | GCR underrecoveries    
Public Utilities, General Disclosures [Line Items]    
GCR underrecoveries 0 8
Accrued rate refunds $ 44 $ 0
v3.24.0.1
Contingencies and Commitments (Narrative) (Details)
$ in Millions
 1 Months Ended 12 Months Ended
Jul. 31, 2022
USD ($)
Jun. 30, 2022
USD ($)
Dec. 31, 2023
USD ($)
MW
$ / MWh
facility
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Loss Contingencies [Line Items]          
Environmental Loss Contingency, Statement Of Financial Position, Extensible Enumeration, Not Disclosed Flag     recorded liability    
Regulatory assets     $ 3,683 $ 3,595  
Consumers Energy Company          
Loss Contingencies [Line Items]          
Regulatory assets     $ 3,683 3,595  
Consumers Energy Company | MCV PPA          
Loss Contingencies [Line Items]          
PPA maximum quantity required | MW     1,240    
PPA fixed energy charge per MWh, on-peak (in dollars per MWh) | $ / MWh     6.30    
PPA fixed energy charge per MWh, off-peak (in dollars per MWh) | $ / MWh     6.00    
Annual contribution to renewable resources program by counterparty     $ 5    
Purchases     $ 340 519 $ 348
Consumers Energy Company | MCV PPA | Year End Through March 2025          
Loss Contingencies [Line Items]          
PPA capacity charge per MWh (in dollars per MWh) | $ / MWh     10.14    
Consumers Energy Company | MCV PPA | March 2025 Through Termination          
Loss Contingencies [Line Items]          
PPA capacity charge per MWh (in dollars per MWh) | $ / MWh     5.00    
Consumers Energy Company | Other PPAs          
Loss Contingencies [Line Items]          
Purchases     $ 498 510 $ 338
Consumers Energy Company | MGP sites          
Loss Contingencies [Line Items]          
Regulatory assets     $ 99 $ 108  
Consumers Energy Company | Ludington          
Loss Contingencies [Line Items]          
Ownership share     51.00%    
Consumers Energy Company | Ludington Plant Overhaul Contract Dispute          
Loss Contingencies [Line Items]          
Damages sought   $ 15      
Consumers Energy Company | J.H. Campbell 3 Plant Retirement Contract Dispute          
Loss Contingencies [Line Items]          
Damages sought $ 37        
Bay Harbor          
Loss Contingencies [Line Items]          
Accrual for environmental loss contingencies     $ 45    
Discount rate     4.34%    
Accrual for environmental loss contingencies, inflation rate     1.00%    
Accrual for environmental loss contingencies, gross     $ 57    
NREPA | Electric Utility | Consumers Energy Company          
Loss Contingencies [Line Items]          
Accrual for environmental loss contingencies     2    
NREPA | Gas Utility | Consumers Energy Company          
Loss Contingencies [Line Items]          
Accrual for environmental loss contingencies     1    
NREPA | Minimum | Electric Utility | Consumers Energy Company          
Loss Contingencies [Line Items]          
Remediation and other response activity costs     2    
NREPA | Maximum | Electric Utility | Consumers Energy Company          
Loss Contingencies [Line Items]          
Remediation and other response activity costs     4    
NREPA | Maximum | Gas Utility | Consumers Energy Company          
Loss Contingencies [Line Items]          
Remediation and other response activity costs     1    
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    
MGP sites | Consumers Energy Company          
Loss Contingencies [Line Items]          
Accrual for environmental loss contingencies     $ 62    
Number of former MGPs | facility     23    
Regulatory asset collection period     10 years    
v3.24.0.1
Contingencies and Commitments (Schedule of Remediation and Other Response Activity Costs by Year) (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Bay Harbor  
Site Contingency [Line Items]  
2024 $ 4
2025 4
2026 4
2027 4
2028 4
Consumers Energy Company | MGP sites  
Site Contingency [Line Items]  
2024 2
2025 1
2026 7
2027 10
2028 $ 25
v3.24.0.1
Contingencies and Commitments (Summary of Guarantees) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2023
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 sale of membership interests in VIEs  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 304
Carrying Amount $ 0
Indemnity obligations from stock and asset sale agreements  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 153
Carrying Amount $ 1
v3.24.0.1
Contingencies and Commitments (Schedule of Contractual Purchase Obligations) (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Guarantees And Other Contingencies [Line Items]  
Total $ 10,695
2024 2,431
2025 1,677
2026 1,084
2027 994
2028 852
Beyond 2028 3,657
Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Total 10,006
2024 2,326
2025 1,440
2026 1,049
2027 955
2028 784
Beyond 2028 3,452
Total PPAs | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Total 7,204
2024 711
2025 792
2026 783
2027 787
2028 702
Beyond 2028 3,429
Other  
Guarantees And Other Contingencies [Line Items]  
Total 3,491
2024 1,720
2025 885
2026 301
2027 207
2028 150
Beyond 2028 228
Other | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Total 2,802
2024 1,615
2025 648
2026 266
2027 168
2028 82
Beyond 2028 23
MCV PPA | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Total 2,506
2024 342
2025 402
2026 416
2027 410
2028 371
Beyond 2028 565
Related-party PPAs | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Total 206
2024 60
2025 44
2026 30
2027 31
2028 14
Beyond 2028 27
Other PPAs | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Total 4,492
2024 309
2025 346
2026 337
2027 346
2028 317
Beyond 2028 $ 2,837
v3.24.0.1
Financings and Capitalization (Summary of Long-Term Debt) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 01, 2030
Jun. 01, 2030
Dec. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 15,648 $ 14,362
Current amounts     (975) (1,090)
Long-term debt - related parties principal amount outstanding     (3,556)  
Unamortized discounts     (30) (30)
Unamortized issuance costs     (135) (120)
Long-term debt     14,508 13,122
Consumers Energy Company        
Debt Instrument [Line Items]        
Total principal amount outstanding     11,294 10,277
Current amounts     (725) (991)
Long-term debt - related parties principal amount outstanding     (2,671)  
Unamortized discounts     (28) (27)
Unamortized issuance costs     (73) (67)
Long-term debt     10,037 9,192
Consumers Energy Company | Related Party        
Debt Instrument [Line Items]        
Long-term debt - related parties principal amount outstanding     (431)  
Long-term debt     424 0
First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Total principal amount outstanding     10,397 8,997
First mortgage bonds | Consumers Energy Company | Related Party        
Debt Instrument [Line Items]        
Long-term debt - related parties principal amount outstanding     (431)  
Unamortized discounts     (3)  
Unamortized issuance costs     (4)  
Long-term debt     424  
Tax-exempt revenue bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Total principal amount outstanding     110 110
Securitization bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 787 170
0.350% First Mortgage Bonds Due June 2023 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     0.35%  
Total principal amount outstanding     $ 0 300
3.375% First Mortgage Bonds Due 2023 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     3.375%  
Total principal amount outstanding     $ 0 325
3.125% First Mortgage Bonds Due 2024 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     3.125%  
Total principal amount outstanding     $ 250 250
3.190% First Mortgage Bonds Due 2024 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     3.19%  
Total principal amount outstanding     $ 52 52
5.240 First Mortgage Bonds Due 2026 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     5.24%  
Total principal amount outstanding     $ 115 0
3.680% First Mortgage Bonds Due 2027 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     3.68%  
Total principal amount outstanding     $ 100 100
3.390 % First Mortgage Bonds Due 2027 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     3.39%  
Total principal amount outstanding     $ 35 35
4.650% First Mortgage Bonds Due 2028 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     4.65%  
Total principal amount outstanding     $ 425 0
3.800% First Mortgage Bonds Due 2028 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     3.80%  
Total principal amount outstanding     $ 300 300
4.900% First Mortgage Bonds Due 2029 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     4.90%  
Total principal amount outstanding     $ 500 0
5.070% First Mortgage Bonds Due 2029 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     5.07%  
Total principal amount outstanding     $ 50 0
5.170% First Mortgage Bonds Due 2032 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     5.17%  
Total principal amount outstanding     $ 95 0
3.600% First Mortgage Bonds Due 2032 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     3.60%  
Total principal amount outstanding     $ 350 350
3.180% First Mortgage Bonds Due 2032 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     3.18%  
Total principal amount outstanding     $ 100 100
4.625% First Mortgage Bonds Due 2033 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     4.625%  
Total principal amount outstanding     $ 700 0
5.800 % First Mortgage Bonds Due 2035 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     5.80%  
Total principal amount outstanding     $ 175 175
5.380% First Mortgage Bonds Due 2037 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     5.38%  
Total principal amount outstanding     $ 140 0
3.520% First Mortgage Bonds Due 2037 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     3.52%  
Total principal amount outstanding     $ 335 335
4.010% First Mortgage Bonds Due 2038 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     4.01%  
Total principal amount outstanding     $ 215 215
6.170% First Mortgage Bonds Due 2040 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     6.17%  
Total principal amount outstanding     $ 50 50
4.970% First Mortgage Bonds Due 2040 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     4.97%  
Total principal amount outstanding     $ 50 50
4.310% First Mortgage Bonds Due 2042 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     4.31%  
Total principal amount outstanding     $ 263 263
3.950% First Mortgage Bonds Due 2043 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     3.95%  
Total principal amount outstanding     $ 425 425
4.100% First Mortgage Bonds Due 2045 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     4.10%  
Total principal amount outstanding     $ 250 250
3.250% First Mortgage Bonds Due 2046 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     3.25%  
Total principal amount outstanding     $ 450 450
3.950% First Mortgage Bonds Due 2047 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     3.95%  
Total principal amount outstanding     $ 350 350
4.050% First Mortgage Bonds Due 2048 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     4.05%  
Total principal amount outstanding     $ 550 550
4.350% First Mortgage Bonds Due 2049 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     4.35%  
Total principal amount outstanding     $ 550 550
3.750% First Mortgage Bonds Due 2050 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     3.75%  
Total principal amount outstanding     $ 300 300
3.750% First Mortgage Bonds Due 2050 | First mortgage bonds | Consumers Energy Company | Related Party        
Debt Instrument [Line Items]        
Long-term debt - related parties principal amount outstanding     $ (23)  
3.100% First Mortgage Bonds Due 2050 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     3.10%  
Total principal amount outstanding     $ 550 550
3.100% First Mortgage Bonds Due 2050 | First mortgage bonds | Consumers Energy Company | Related Party        
Debt Instrument [Line Items]        
Long-term debt - related parties principal amount outstanding     $ (52)  
3.500 First Mortgage Bonds Due 2051 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     3.50%  
Total principal amount outstanding     $ 575 575
3.500 First Mortgage Bonds Due 2051 | First mortgage bonds | Consumers Energy Company | Related Party        
Debt Instrument [Line Items]        
Long-term debt - related parties principal amount outstanding     $ (27)  
2.650% First Mortgage Bonds Due 2060 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     2.50%  
Total principal amount outstanding     $ 525 525
2.650% First Mortgage Bonds Due 2060 | First mortgage bonds | Consumers Energy Company | Related Party        
Debt Instrument [Line Items]        
Long-term debt - related parties principal amount outstanding     $ (163)  
4.200% First Mortgage Bonds Due 2052 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     4.20%  
Total principal amount outstanding     $ 450 450
3.860% First Mortgage Bonds Due 2052 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     3.86%  
Total principal amount outstanding     $ 50 50
4.280% First Mortgage Bonds Due 2057 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     4.28%  
Total principal amount outstanding     $ 185 185
2.500 First Mortgage Bonds Due 2052 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     2.65%  
Total principal amount outstanding     $ 300 300
2.500 First Mortgage Bonds Due 2052 | First mortgage bonds | Consumers Energy Company | Related Party        
Debt Instrument [Line Items]        
Long-term debt - related parties principal amount outstanding     $ (106)  
4.350% First Mortgage Bonds Due 2064 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     4.35%  
Total principal amount outstanding     $ 250 250
Variable Rate First Mortgage Bonds Due 2069 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 76 76
Interest rate at period end     5.346%  
Variable Rate First Mortgage Bonds Due 2070 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 134 134
Interest rate at period end     5.329%  
Variable Rate First Mortgage Bonds Due 2070 | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 127 127
Interest rate at period end     5.368%  
0.875% Tax Exempt Revenue Bonds Due 2035 | Tax-exempt revenue bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     0.875%  
Total principal amount outstanding     $ 35 35
1.800% Tax Exempt Revenue Bonds Due 2049 | Tax-exempt revenue bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate     1.80%  
Total principal amount outstanding     $ 75 75
3.421% Securitization Bonds | Securitization bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 141 $ 170
Weighted average interest rate     3.421% 3.343%
- Securitization Bonds Due - | Securitization bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 646 $ 0
Weighted average interest rate     5.342%  
Term Loan Facility Due 2024 | Term loan facility | Consumers Energy Company        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 0 $ 1,000
Variable Rate First Mortgage Bonds | First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate at period end       0.00%
Variable Rate First Mortgage Bonds | First mortgage bonds | Consumers Energy Company | SOFR        
Debt Instrument [Line Items]        
Basis spread on variable rate     0.038%  
CMS Energy        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 4,785 $ 3,985
Current amounts     (250) 0
Long-term debt - related parties principal amount outstanding     (800)  
Long-term debt     4,471 3,930
CMS Energy | Consumers Energy Company        
Debt Instrument [Line Items]        
Total principal amount outstanding     10,863 10,277
CMS Energy | Senior notes        
Debt Instrument [Line Items]        
Total principal amount outstanding     1,975 1,975
CMS Energy | Convertible debt        
Debt Instrument [Line Items]        
Total principal amount outstanding     800 0
CMS Energy | Junior subordinated notes        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 2,010 2,010
CMS Energy | 3.875% Senior Notes Due 2024 | Senior notes        
Debt Instrument [Line Items]        
Interest rate     3.875%  
Total principal amount outstanding     $ 250 250
CMS Energy | 3.600% Senior Notes Due 2025 | Senior notes        
Debt Instrument [Line Items]        
Interest rate     3.60%  
Total principal amount outstanding     $ 250 250
CMS Energy | 3.000% Senior Notes Due 2026 | Senior notes        
Debt Instrument [Line Items]        
Interest rate     3.00%  
Total principal amount outstanding     $ 300 300
CMS Energy | 2.950% Senior Notes Due 2027 | Senior notes        
Debt Instrument [Line Items]        
Interest rate     2.95%  
Total principal amount outstanding     $ 275 275
CMS Energy | 3.450% Senior Notes Due 2027 | Senior notes        
Debt Instrument [Line Items]        
Interest rate     3.45%  
Total principal amount outstanding     $ 350 350
CMS Energy | 4.700% Senior Notes Due 2043 | Senior notes        
Debt Instrument [Line Items]        
Interest rate     4.70%  
Total principal amount outstanding     $ 250 250
CMS Energy | 4.875% Senior Notes Due 2044 | Senior notes        
Debt Instrument [Line Items]        
Interest rate     4.875%  
Total principal amount outstanding     $ 300 300
CMS Energy | 3.375% Convertible Senior Notes Due 2028 | Convertible debt        
Debt Instrument [Line Items]        
Interest rate     3.375%  
Total principal amount outstanding     $ 800 0
CMS Energy | 4.750% Junior Subordinated Notes Due 2050 | Junior subordinated notes        
Debt Instrument [Line Items]        
Interest rate     4.75%  
Total principal amount outstanding     $ 500 500
CMS Energy | 4.750% Junior Subordinated Notes Due 2050 | Junior subordinated notes | Forecast | US Treasury (UST) Interest Rate        
Debt Instrument [Line Items]        
Basis spread on variable rate   4.116%    
CMS Energy | 3.750% Junior Subordinated Notes Due 2050 | Junior subordinated notes        
Debt Instrument [Line Items]        
Interest rate     3.75%  
Total principal amount outstanding     $ 400 400
CMS Energy | 3.750% Junior Subordinated Notes Due 2050 | Junior subordinated notes | Forecast | US Treasury (UST) Interest Rate        
Debt Instrument [Line Items]        
Basis spread on variable rate 2.90%      
CMS Energy | 5.625% Junior Subordinated Notes Due 2078 | Junior subordinated notes        
Debt Instrument [Line Items]        
Interest rate     5.625%  
Total principal amount outstanding     $ 200 200
CMS Energy | 5.875% Junior Subordinated Notes Due 2078 | Junior subordinated notes        
Debt Instrument [Line Items]        
Interest rate     5.875%  
Total principal amount outstanding     $ 280 280
CMS Energy | 5.875% Junior Subordinated Notes Due 2079 | Junior subordinated notes        
Debt Instrument [Line Items]        
Interest rate     5.875%  
Total principal amount outstanding     $ 630 630
NorthStar Clean Energy, Including Subsidiaries        
Debt Instrument [Line Items]        
Long-term debt - related parties principal amount outstanding     (85)  
NorthStar Clean Energy, Including Subsidiaries | Term Loan Facility Due 2023 | Term loan facility        
Debt Instrument [Line Items]        
Total principal amount outstanding     0 $ 100
Long-term debt - related parties principal amount outstanding     $ (85)  
v3.24.0.1
Financings and Capitalization (First Mortgage Bond Purchase) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]      
Principal (In Millions) $ 3,556    
Unamortized discounts (30) $ (30)  
Unamortized issuance costs (135) (120)  
Long-term debt 14,508 13,122  
Gain on debt extinguishment   0 $ 0
Interest on long-term debt 616 509 481
Consumers Energy Company      
Debt Instrument [Line Items]      
Principal (In Millions) 2,671    
Unamortized discounts (28) (27)  
Unamortized issuance costs (73) (67)  
Long-term debt 10,037 9,192  
Interest on long-term debt 415 325 294
Consumers Energy Company | Related Party      
Debt Instrument [Line Items]      
Principal (In Millions) 431    
Long-term debt 424 0  
CMS Energy      
Debt Instrument [Line Items]      
Principal (In Millions) 800    
Long-term debt 4,471 3,930  
Interest on long-term debt 201 $ 181 $ 183
First mortgage bonds      
Debt Instrument [Line Items]      
Gain on debt extinguishment 131    
First mortgage bonds | Consumers Energy Company | Related Party      
Debt Instrument [Line Items]      
Principal (In Millions) 431    
Unamortized discounts (3)    
Unamortized issuance costs (4)    
Long-term debt 424    
First mortgage bonds | CMS Energy      
Debt Instrument [Line Items]      
Payment for purchase of first mortgage bonds $ 293    
First mortgage bonds due 2060 | First mortgage bonds | Consumers Energy Company      
Debt Instrument [Line Items]      
Interest rate 2.50%    
First mortgage bonds due 2060 | First mortgage bonds | Consumers Energy Company | Related Party      
Debt Instrument [Line Items]      
Principal (In Millions) $ 163    
First mortgage bonds due 2052 | First mortgage bonds | Consumers Energy Company      
Debt Instrument [Line Items]      
Interest rate 2.65%    
First mortgage bonds due 2052 | First mortgage bonds | Consumers Energy Company | Related Party      
Debt Instrument [Line Items]      
Principal (In Millions) $ 106    
First mortgage bonds due 2050 | First mortgage bonds | Consumers Energy Company      
Debt Instrument [Line Items]      
Interest rate 3.75%    
First mortgage bonds due 2050 | First mortgage bonds | Consumers Energy Company | Related Party      
Debt Instrument [Line Items]      
Principal (In Millions) $ 23    
First mortgage bonds due 2050 | First mortgage bonds | Consumers Energy Company      
Debt Instrument [Line Items]      
Interest rate 3.10%    
First mortgage bonds due 2050 | First mortgage bonds | Consumers Energy Company | Related Party      
Debt Instrument [Line Items]      
Principal (In Millions) $ 52    
First mortgage bonds due 2051 | First mortgage bonds | Consumers Energy Company      
Debt Instrument [Line Items]      
Interest rate 3.50%    
First mortgage bonds due 2051 | First mortgage bonds | Consumers Energy Company | Related Party      
Debt Instrument [Line Items]      
Principal (In Millions) $ 27    
First mortgage bonds due 2048 | First mortgage bonds | Consumers Energy Company      
Debt Instrument [Line Items]      
Interest rate 4.05%    
First mortgage bonds due 2048 | First mortgage bonds | Consumers Energy Company | Related Party      
Debt Instrument [Line Items]      
Principal (In Millions) $ 60    
Repurchased Debt | First mortgage bonds      
Debt Instrument [Line Items]      
Interest on long-term debt $ 5    
v3.24.0.1
Financings and Capitalization (Major Long-Term Debt Issuances and Retirements) (Details) - USD ($)
$ in Millions
Dec. 31, 2023
May 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]      
Principal (In Millions) $ 3,556    
CMS Energy      
Debt Instrument [Line Items]      
Principal (In Millions) 800    
NorthStar Clean Energy, Including Subsidiaries      
Debt Instrument [Line Items]      
Principal (In Millions) 85    
Consumers Energy Company      
Debt Instrument [Line Items]      
Principal (In Millions) 2,671    
Convertible debt | 3.375% Convertible Senior Notes Due 2028 | CMS Energy      
Debt Instrument [Line Items]      
Principal (In Millions) $ 800 $ 800  
Interest rate 3.375% 3.375%  
Term loan facility | Term Loan Facility Due 2023 | NorthStar Clean Energy, Including Subsidiaries      
Debt Instrument [Line Items]      
Principal (In Millions) $ 85    
Maximum borrowing capacity     $ 185
First mortgage bonds | 4.650% First Mortgage Bonds Due March 2028 | Consumers Energy Company      
Debt Instrument [Line Items]      
Principal (In Millions) $ 425    
Interest rate 4.65%    
First mortgage bonds | 4.625% First Mortgage Bonds Due May 2033 | Consumers Energy Company      
Debt Instrument [Line Items]      
Principal (In Millions) $ 700    
Interest rate 4.625%    
First mortgage bonds | 5.240% First Mortgage Bonds Due May 2026 | Consumers Energy Company      
Debt Instrument [Line Items]      
Principal (In Millions) $ 115    
Interest rate 5.24%    
First mortgage bonds | 5.070% First Mortgage Bonds Due May 2029 | Consumers Energy Company      
Debt Instrument [Line Items]      
Principal (In Millions) $ 50    
Interest rate 5.07%    
First mortgage bonds | 5.170% First Mortgage Bonds Due May 2032 | Consumers Energy Company      
Debt Instrument [Line Items]      
Principal (In Millions) $ 95    
Interest rate 5.17%    
First mortgage bonds | 5.380% First Mortgage Bonds Due May 2037 | Consumers Energy Company      
Debt Instrument [Line Items]      
Principal (In Millions) $ 140    
Interest rate 5.38%    
First mortgage bonds | 4.900% First Mortgage Bonds Due February 2029 | Consumers Energy Company      
Debt Instrument [Line Items]      
Principal (In Millions) $ 500    
Interest rate 4.90%    
Securitization bonds | 5.550% Securitization Bonds Due March 2028 | Consumers Energy Company      
Debt Instrument [Line Items]      
Principal (In Millions) $ 250    
Interest rate 5.55%    
Securitization bonds | 5.210% Securitization Bonds Due September 2031 | Consumers Energy Company      
Debt Instrument [Line Items]      
Principal (In Millions) $ 396    
Interest rate 5.21%    
v3.24.0.1
Financings and Capitalization (Issuance of Convertible Senior Notes) (Details)
$ / shares in Units, $ in Millions
 1 Months Ended
May 31, 2023
USD ($)
d
Jan. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
$ / shares
Debt Instrument [Line Items]      
Principal (In Millions)     $ 3,556
Consumers Energy Company      
Debt Instrument [Line Items]      
Principal (In Millions)     2,671
CMS Energy      
Debt Instrument [Line Items]      
Principal (In Millions)     800
3.375% Convertible Senior Notes Due 2028 | Convertible debt | CMS Energy      
Debt Instrument [Line Items]      
Principal (In Millions) $ 800   $ 800
Interest rate 3.375%   3.375%
Unamortized issuance costs $ 12    
Conversion price (in dollars per share) | $ / shares     $ 73.97
Threshold percentage of stock price trigger 130.00%    
Threshold trading days | d 20    
Threshold consecutive trading days | d 30    
Redemption price percentage 100.00%    
4.600% First Mortgage Bonds Due May 2029 | First mortgage bonds | Consumers Energy Company | Subsequent Event      
Debt Instrument [Line Items]      
Principal (In Millions)   $ 600  
Interest rate   4.60%  
v3.24.0.1
Financings and Capitalization (Retirements of Debt) (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Jan. 31, 2024
Dec. 31, 2023
Consumers Energy Company    
Debt Instrument [Line Items]    
Repayments of debt   $ 1,625
Term Loan Facility Due 2024 | Term loan facility | Consumers Energy Company    
Debt Instrument [Line Items]    
Repayments of debt   1,000
0.350% First Mortgage Bonds Due June 2023 | First mortgage bonds | Consumers Energy Company    
Debt Instrument [Line Items]    
Repayments of debt   $ 300
Interest rate   0.35%
3.375% First Mortgage Bonds Due August 2023 | First mortgage bonds | Consumers Energy Company    
Debt Instrument [Line Items]    
Repayments of debt   $ 325
Interest rate   3.375%
NorthStar Clean Energy, Including Subsidiaries    
Debt Instrument [Line Items]    
Repayments of debt   $ 185
NorthStar Clean Energy, Including Subsidiaries | Term Loan Facility Due October 2025 | Term loan facility    
Debt Instrument [Line Items]    
Repayments of debt   $ 185
CMS Energy | Senior Notes | Subsequent Event    
Debt Instrument [Line Items]    
Repayments of debt $ 250  
Interest rate 3.875%  
v3.24.0.1
Financings and Capitalization (Schedule of Debt Maturities) (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Debt Instrument [Line Items]  
2024 $ 975
2025 366
2026 537
2027 888
2028 1,643
CMS Energy  
Debt Instrument [Line Items]  
2024 250
2025 250
2026 300
2027 625
2028 800
Consumers Energy Company  
Debt Instrument [Line Items]  
2024 725
2025 116
2026 237
2027 263
2028 $ 843
v3.24.0.1
Financings and Capitalization (Schedule of Revolving Credit Facilities) (Details)
 12 Months Ended
Dec. 31, 2023
USD ($)
Consumers Energy Company | Letter of Credit  
Line of Credit Facility [Line Items]  
Borrowings $ 0
Consumers Energy Company | Revolving Credit Facilities December 14, 2027  
Line of Credit Facility [Line Items]  
Amount of Facility 1,100,000,000
Amount Borrowed 0
Letters of Credit Outstanding 27,000,000
Amount Available 1,073,000,000
Consumers Energy Company | Revolving Credit Facilities November 18, 2024  
Line of Credit Facility [Line Items]  
Amount of Facility 250,000,000
Amount Borrowed 0
Letters of Credit Outstanding 48,000,000
Amount Available 202,000,000
CMS Energy | Revolving Credit Facilities December 14, 2027  
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 December 14, 2027 | Letter of Credit  
Line of Credit Facility [Line Items]  
Borrowings 0
CMS Energy | Revolving Credit Facilities September 22, 2024  
Line of Credit Facility [Line Items]  
Amount of Facility 50,000,000
Amount Borrowed 0
Letters of Credit Outstanding 50,000,000
Amount Available 0
NorthStar Clean Energy, 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
v3.24.0.1
Financings and Capitalization (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 12 Months Ended
Jan. 31, 2024
Dec. 31, 2023
Nov. 30, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Financing And Capitalization [Line Items]            
Notes payable   $ 93   $ 93 $ 20  
Limitation on payment of stock dividends   $ 7,300   7,300    
Dividends paid       $ 695    
Common stock authorized (in shares)   350,000,000.0   350,000,000.0 350,000,000.0  
Common stock, par value (in dollars per share)   $ 0.01   $ 0.01    
Preferred stock authorized (in shares)   10,000,000   10,000,000    
Preferred stock, par value (in dollars per share)   $ 0.01   $ 0.01    
Stock offering program maximum value       $ 1,000    
Issuance of common stock       192 $ 69 $ 26
CMS Energy            
Financing And Capitalization [Line Items]            
Issuance of common stock       192 69 $ 26
Settlement Of Forward Contracts            
Financing And Capitalization [Line Items]            
Settlement of forward contracts through issuance of stock (in dollars per share)     $ 68.05      
Issuance of common stock     $ 178      
Settlement Of Forward Contracts | Subsequent Event            
Financing And Capitalization [Line Items]            
Settlement of forward contracts through issuance of stock (in dollars per share) $ 70.31          
Issuance of common stock $ 266          
Consumers Energy Company            
Financing And Capitalization [Line Items]            
Payables under supplier finance program   $ 0   0 $ 1  
Unrestricted retained earnings   $ 2,100   $ 2,100    
Common stock authorized (in shares)   125,000,000.0   125,000,000.0 125,000,000.0  
Preferred stock authorized (in shares)   7,500,000   7,500,000 7,500,000  
Preferred stock, par value (in dollars per share)   $ 4.50   $ 4.50 $ 4.50  
Consumers Energy Company | Consumers' Supplier Financing Program            
Financing And Capitalization [Line Items]            
Supplier financing program, payment period   60 days   60 days    
Supplier financing program, termination period   30 days   30 days    
Consumers Energy Company | Related Party            
Financing And Capitalization [Line Items]            
Notes payable   $ 0   $ 0 $ 75  
Consumers Energy Company | Credit Agreement | Related Party            
Financing And Capitalization [Line Items]            
Maximum borrowing capacity   500   500    
Notes payable   $ 0   0    
Consumers Energy Company | Credit Agreement | Related Party | SOFR            
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    
Short-term borrowings outstanding   $ 93   $ 93    
Weighted average interest rate   5.609%   5.609%    
v3.24.0.1
Financings and Capitalization (Schedule of Forward Stock Contracts) (Details) - $ / shares
Sep. 30, 2023
Aug. 29, 2022
Aug. 24, 2022
Aug. 03, 2022
Forward contracts entered into 8/3/2022        
Debt and Equity Securities, FV-NI [Line Items]        
Number of Shares (in shares)       328,207
Initial forward price (in dollars per share) $ 68.37     $ 67.59
Forward contracts entered into 8/24/2022        
Debt and Equity Securities, FV-NI [Line Items]        
Number of Shares (in shares)     1,677,938  
Initial forward price (in dollars per share) 70.91   $ 69.46  
Forward contracts entered into 8/29/2022        
Debt and Equity Securities, FV-NI [Line Items]        
Number of Shares (in shares)   1,783,388    
Initial forward price (in dollars per share) $ 69.54 $ 68.18    
v3.24.0.1
Financings and Capitalization (Schedule of Preferred Stock) (Details)
 12 Months Ended
Dec. 31, 2023
$ / shares
shares
Dec. 31, 2022
$ / shares
shares
Debt and Equity Securities, FV-NI [Line Items]    
Preferred stock, par value (in dollars per share) | $ / shares $ 0.01  
Preferred stock authorized (in shares) 10,000,000  
Consumers Energy Company    
Debt and Equity Securities, FV-NI [Line Items]    
Preferred stock, par value (in dollars per share) | $ / shares $ 4.50 $ 4.50
Preferred stock authorized (in shares) 7,500,000 7,500,000
Preferred stock outstanding (in shares) 400,000 400,000
Series C Preferred Stock Depositary Shares    
Debt and Equity Securities, FV-NI [Line Items]    
Trading symbol CMS PRC  
Depositary share conversion ratio 0.001  
Preferred stock, par value (in dollars per share) | $ / shares $ 25 $ 25
Optional redemption price (in dollars per share) | $ / shares $ 25 $ 25
Preferred stock authorized (in shares) 9,200,000 9,200,000
Preferred stock outstanding (in shares) 9,200,000 9,200,000
Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series    
Debt and Equity Securities, FV-NI [Line Items]    
Trading symbol CMS-PB  
Preferred Stock $4.50 Series | Consumers Energy Company    
Debt and Equity Securities, FV-NI [Line Items]    
Preferred stock, par value (in dollars per share) | $ / shares $ 100 $ 100
Optional redemption price (in dollars per share) | $ / shares $ 110 $ 110
Preferred stock authorized (in shares) 7,500,000 7,500,000
Preferred stock outstanding (in shares) 373,148 373,148
v3.24.0.1
Fair Value Measurements (Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Assets    
Restricted cash equivalents $ 21 $ 18
Derivative instruments 2 2
Consumers Energy Company    
Assets    
Restricted cash equivalents 21 17
Derivative instruments 2 2
Fair Value, Inputs, Level 1    
Assets    
Cash equivalents 18 0
Restricted cash equivalents 21 18
Nonqualified deferred compensation plan assets 30 24
Liabilities    
Nonqualified deferred compensation plan liabilities 30 24
Fair Value, Inputs, Level 1 | Consumers Energy Company    
Assets    
Cash equivalents 0 0
Restricted cash equivalents 21 17
Nonqualified deferred compensation plan assets 22 18
Liabilities    
Nonqualified deferred compensation plan liabilities 22 18
Fair Value, Inputs, Level 1, 2 and 3    
Assets    
Total assets 71 44
Liabilities    
Total liabilities 30 24
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company    
Assets    
Total assets 45 37
Liabilities    
Total liabilities $ 22 $ 18
v3.24.0.1
Financial Instruments (Schedule of Carrying Amounts and Fair Values of Financial Instruments) (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Liabilities    
Current accounts receivable and notes receivable $ 6 $ 7
Current portion of long-term debt 975 1,090
Current portion of long-term payables   2
Carrying Amount    
Assets    
Long-term receivables 11 14
Liabilities    
Long-term debt 15,483 14,212
Long-term payables 11 9
Fair Value    
Assets    
Long-term receivables 11 14
Liabilities    
Long-term debt 14,305 12,384
Long-term payables 11 7
Consumers Energy Company    
Liabilities    
Current accounts receivable and notes receivable 6 7
Current portion of long-term debt 725 991
Consumers Energy Company | Related Party    
Liabilities    
Current portion of notes receivable, related party 7 7
Consumers Energy Company | Carrying Amount    
Assets    
Long-term receivables 11 14
Notes receivable related party 97 101
Liabilities    
Long-term payables 5 0
Consumers Energy Company | Carrying Amount | Nonrelated Party    
Liabilities    
Long-term debt 10,762 10,183
Consumers Energy Company | Carrying Amount | Related Party    
Liabilities    
Long-term debt 424 0
Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 11 14
Notes receivable related party 97 101
Liabilities    
Long-term payables 5 0
Consumers Energy Company | Fair Value | Nonrelated Party    
Liabilities    
Long-term debt 9,757 8,728
Consumers Energy Company | Fair Value | Related Party    
Liabilities    
Long-term debt 303 0
Level 1 | Fair Value    
Assets    
Long-term receivables 0 0
Liabilities    
Long-term debt 1,103 987
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 payables 0 0
Level 1 | Consumers Energy Company | Fair Value | Nonrelated Party    
Liabilities    
Long-term debt 0 0
Level 1 | Consumers Energy Company | Fair Value | Related Party    
Liabilities    
Long-term debt 0 0
Level 2 | Fair Value    
Assets    
Long-term receivables 0 0
Liabilities    
Long-term debt 11,186 8,741
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 payables 0 0
Level 2 | Consumers Energy Company | Fair Value | Nonrelated Party    
Liabilities    
Long-term debt 7,741 6,172
Level 2 | Consumers Energy Company | Fair Value | Related Party    
Liabilities    
Long-term debt 303 0
Level 3 | Fair Value    
Assets    
Long-term receivables 11 14
Liabilities    
Long-term debt 2,016 2,656
Long-term payables 11 7
Level 3 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 11 14
Notes receivable related party 97 101
Liabilities    
Long-term payables 5 0
Level 3 | Consumers Energy Company | Fair Value | Nonrelated Party    
Liabilities    
Long-term debt 2,016 2,556
Level 3 | Consumers Energy Company | Fair Value | Related Party    
Liabilities    
Long-term debt $ 0 $ 0
v3.24.0.1
Financial Instruments (Narrative) (Details) - CMS Energy Note Payable
Dec. 31, 2023
Financial Instruments [Line Items]  
Interest rate 4.10%
Consumers Energy Company  
Financial Instruments [Line Items]  
Interest rate 4.10%
v3.24.0.1
Plant, Property, and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Jun. 30, 2022
Dec. 31, 2021
Public Utility, Property, Plant and Equipment [Line Items]        
Plant, property, and equipment, gross $ 33,135 $ 30,491   $ 29,893
Assets under finance leases 136 170   332
Construction work in progress 944 1,182    
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment (9,007) (8,960)    
Total plant, property, and equipment 25,072 22,713    
Regulatory assets 3,683 3,595    
Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Plant, property, and equipment, gross 31,723 29,342   28,771
Assets under finance leases 112 146   $ 332
Construction work in progress 845 994    
Accumulated depreciation and amortization (8,796) (8,791)    
Total plant, property, and equipment 23,772 21,545    
Plant additions 3,100 2,300    
Plant retirements 856 290    
Regulatory assets $ 3,683 3,595    
Consumers Energy Company | J.H. Campbell Generating Units        
Public Utility, Property, Plant and Equipment [Line Items]        
Regulatory assets     $ 1,300  
Consumers Energy Company | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, consumers 3 years      
Consumers Energy Company | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, consumers 125 years      
Generation | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Generation $ 6,511 5,780    
Generation | Consumers Energy Company | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, generation 15 years      
Generation | Consumers Energy Company | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, generation 125 years      
Distribution | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Distribution $ 11,339 10,590    
Distribution | Consumers Energy Company | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, distribution 15 years      
Distribution | Consumers Energy Company | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, distribution 75 years      
Other | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Other $ 1,355 1,374    
Other | Consumers Energy Company | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, other 5 years      
Other | Consumers Energy Company | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, other 55 years      
Assets under finance leases | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Assets under finance leases $ 97 126    
Distribution | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Distribution $ 7,452 6,951    
Distribution | Consumers Energy Company | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, distribution 20 years      
Distribution | Consumers Energy Company | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, distribution 85 years      
Transmission | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Transmission $ 2,806 2,440    
Transmission | Consumers Energy Company | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, transmission 17 years      
Transmission | Consumers Energy Company | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, transmission 75 years      
Underground storage facilities | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Other $ 1,295 1,197    
Underground storage facilities | Consumers Energy Company | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, other 27 years      
Underground storage facilities | Consumers Energy Company | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, other 75 years      
Other | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Other $ 815 835    
Other | Consumers Energy Company | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, other 5 years      
Other | Consumers Energy Company | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, other 55 years      
Finance leases | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Assets under finance leases $ 15 20    
Other non-utility property | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Other non-utility property $ 38 29    
Other non-utility property | Consumers Energy Company | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, other 3 years      
Other non-utility property | Consumers Energy Company | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, other 51 years      
Natural Gas | Underground storage facilities | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Other $ 26    
NorthStar Clean Energy        
Public Utility, Property, Plant and Equipment [Line Items]        
Assets under finance leases 24 24    
Independent power production        
Public Utility, Property, Plant and Equipment [Line Items]        
Plant, property, and equipment, gross $ 1,387 1,124    
Independent power production | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, Enterprises 3 years      
Independent power production | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, Enterprises 40 years      
Other        
Public Utility, Property, Plant and Equipment [Line Items]        
Plant, property, and equipment, gross $ 1 $ 1    
Other | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, Enterprises 3 years      
Other | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, Enterprises 5 years      
v3.24.0.1
Plant, Property, and Equipment (Narrative) (Details)
$ in Millions
 1 Months Ended 12 Months Ended
Aug. 31, 2023
USD ($)
May 31, 2023
USD ($)
MW
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Covert Plant Acquisition          
Property, Plant and Equipment [Line Items]          
Consideration transferred $ 2 $ 810 $ 812 $ 0 $ 0
Consumers Energy Company          
Property, Plant and Equipment [Line Items]          
Consideration transferred         2,052
Plant additions     3,100 2,300  
Finance lease accumulated amortization     64 88  
Consumers Energy Company | Covert Plant Acquisition          
Property, Plant and Equipment [Line Items]          
Consideration transferred     $ 812 $ 0 $ 0
New Covert Generating Facility | Consumers Energy Company          
Property, Plant and Equipment [Line Items]          
Nameplate capacity (in MW) | MW   1,200      
Net book value of plant   $ 440      
Plant acquisition adjustment   370      
Plant additions   810      
New Covert Generating Facility | Seller          
Property, Plant and Equipment [Line Items]          
Original cost of plant   665      
Accumulated depreciation   $ 225      
v3.24.0.1
Plant, Property, and Equipment (Summary of Finite-Lived Intangible Assets by Major Class) (Details) - Consumers Energy Company - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost $ 1,052 $ 1,114
Accumulated Amortization 640 686
Plant additions 3,100 2,300
Plant retirements 856 290
Software development    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 772 846
Accumulated Amortization 543 593
Leasehold improvements    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 11 9
Accumulated Amortization 7 6
Intangible plant    
Public Utility, Property, Plant and Equipment [Line Items]    
Plant additions 80 116
Plant retirements 142 104
Rights of way    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 229 218
Accumulated Amortization 64 61
Franchises and consents    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 16 16
Accumulated Amortization 11 10
Other intangible assets    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 24 25
Accumulated Amortization $ 15 $ 16
Minimum | Software development    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 3 years  
Minimum | Rights of way    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 50 years  
Minimum | Franchises and consents    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 5 years  
Maximum | Software development    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 15 years  
Maximum | Rights of way    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 85 years  
Maximum | Franchises and consents    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 50 years  
v3.24.0.1
Plant, Property, and Equipment (Summary of Average Capitalization Rates) (Details) - Consumers Energy Company
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Electric Utility      
Property, Plant and Equipment [Line Items]      
AFUDC capitalization rate 6.50% 6.20% 6.20%
Gas Utility      
Property, Plant and Equipment [Line Items]      
AFUDC capitalization rate 5.80% 5.60% 5.60%
v3.24.0.1
Plant, Property, and Equipment (Schedule of Finance Leases and Other Financing Obligations) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Finance Leases and Other Financing Obligations, Rollforward [Roll Forward]    
Balance at beginning of period $ 170 $ 332
Additions 0 44
Net retirements and other adjustments (34) (206)
Balance at end of period 136 170
Consumers Energy Company    
Finance Leases and Other Financing Obligations, Rollforward [Roll Forward]    
Balance at beginning of period 146 332
Additions 0 20
Net retirements and other adjustments (34) (206)
Balance at end of period $ 112 $ 146
v3.24.0.1
Plant, Property, and Equipment (Summary of Accumulated Depreciation and Amortization) (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Public Utility, Property, Plant and Equipment [Line Items]    
Accumulated depreciation and amortization $ 9,007 $ 8,960
Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Consumers accumulated depreciation and amortization 8,796 8,791
Non-utility plant assets    
Public Utility, Property, Plant and Equipment [Line Items]    
Accumulated depreciation and amortization 217 175
Non-utility plant assets | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Consumers accumulated depreciation and amortization 6 6
Utility plant assets    
Public Utility, Property, Plant and Equipment [Line Items]    
Accumulated depreciation and amortization 8,790 8,785
Utility plant assets | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Consumers accumulated depreciation and amortization $ 8,790 $ 8,785
v3.24.0.1
Plant, Property, and Equipment (Summary of Composite Depreciation Rates for Properties) (Details) - Consumers Energy Company
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Electric utility property      
Public Utility, Property, Plant and Equipment [Line Items]      
Composite depreciation rate 3.80% 3.70% 3.90%
Gas utility property      
Public Utility, Property, Plant and Equipment [Line Items]      
Composite depreciation rate 2.80% 2.90% 2.90%
Other property      
Public Utility, Property, Plant and Equipment [Line Items]      
Composite depreciation rate 7.80% 8.90% 9.40%
v3.24.0.1
Plant, Property, and Equipment (Summary of Depreciation and Amortization Expense) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]      
Depreciation expense – plant, property, and equipment $ 1,050 $ 990 $ 975
Total depreciation and amortization expense 1,180 1,126 1,114
Securitized regulatory assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 33 28 27
Software      
Property, Plant and Equipment [Line Items]      
Amortization expense 92 103 108
Other intangible assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 5 5 4
Consumers Energy Company      
Property, Plant and Equipment [Line Items]      
Depreciation expense – plant, property, and equipment 1,007 952 938
Total depreciation and amortization expense 1,137 1,088 1,077
Consumers Energy Company | Securitized regulatory assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 33 28 27
Consumers Energy Company | Software      
Property, Plant and Equipment [Line Items]      
Amortization expense 92 103 108
Consumers Energy Company | Other intangible assets      
Property, Plant and Equipment [Line Items]      
Amortization expense $ 5 $ 5 $ 4
v3.24.0.1
Plant, Property, and Equipment (Schedule of Estimated Amortization Expense for Intangibles) (Details) - Consumers Energy Company
$ in Millions
Dec. 31, 2023
USD ($)
Public Utility, Property, Plant and Equipment [Line Items]  
2024 $ 89
2025 88
2026 87
2027 81
2028 $ 73
v3.24.0.1
Plant, Property, and Equipment (Summary of Jointly Owned Regulated Utility Facilities) (Details) - Consumers Energy Company
$ in Millions
Dec. 31, 2023
USD ($)
J.H. Campbell Unit 3  
Public Utility, Property, Plant and Equipment [Line Items]  
Ownership share 93.30%
Utility plant in service $ 1,752
Accumulated provision for depreciation (812)
Plant under construction 1
Net investment $ 941
Ludington  
Public Utility, Property, Plant and Equipment [Line Items]  
Ownership share 51.00%
Utility plant in service $ 619
Accumulated provision for depreciation (227)
Plant under construction 5
Net investment 397
Other  
Public Utility, Property, Plant and Equipment [Line Items]  
Utility plant in service 443
Accumulated provision for depreciation (97)
Plant under construction 11
Net investment $ 357
v3.24.0.1
Leases (Summary of Lease Right-of-Use Assets and Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Lessor, Lease, Description [Line Items]    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other Other
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other non‑current liabilities Other non‑current liabilities
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Plant, property, and equipment, net Plant, property, and equipment, net
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Current portion of long-term debt and finance leases Current portion of long-term debt and finance leases
Operating leases    
Right-of-use assets $ 26 $ 31
Lease liabilities    
Current lease liabilities 4 4
Noncurrent lease liabilities 22 27
Finance leases    
Right-of-use assets 71 82
Lease liabilities    
Current lease liabilities 5 9
Non-current lease liabilities $ 62 $ 68
Weighted-average remaining lease term (in years)    
Operating leases 19 years 20 years
Finance leases 19 years 18 years
Weighted-average discount rate    
Operating leases 5.20% 4.00%
Finance leases 5.30% 5.20%
Finance lease liability $ 67  
Consumers Energy Company    
Operating leases    
Right-of-use assets 23 $ 27
Lease liabilities    
Current lease liabilities 4 4
Noncurrent lease liabilities 19 23
Finance leases    
Right-of-use assets 48 58
Lease liabilities    
Current lease liabilities 5 9
Non-current lease liabilities $ 39 $ 45
Weighted-average remaining lease term (in years)    
Operating leases 18 years 18 years
Finance leases 11 years 10 years
Weighted-average discount rate    
Operating leases 5.30% 3.90%
Finance leases 1.50% 1.60%
Finance lease liability $ 44  
Related Party Lease    
Lease liabilities    
Current lease liabilities 1 $ 1
Weighted-average discount rate    
Finance lease liability $ 24 $ 24
v3.24.0.1
Leases (Schedule of Lease Cost) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Lessee, Lease, Description [Line Items]    
Operating lease costs $ 6 $ 6
Finance lease costs    
Amortization of right-of-use assets 9 12
Interest on lease liabilities 15 14
Variable lease costs 107 93
Short-term lease costs 14 23
Total lease costs 151 148
Consumers Energy Company    
Lessee, Lease, Description [Line Items]    
Operating lease costs 5 6
Finance lease costs    
Amortization of right-of-use assets 8 12
Interest on lease liabilities 13 14
Variable lease costs 107 93
Short-term lease costs 14 22
Total lease costs $ 147 $ 147
v3.24.0.1
Leases (Schedule of Lessee Cash Flows) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities    
Cash used in operating activities for operating leases $ 6 $ 6
Cash used in operating activities for finance leases 15 14
Cash used in financing activities for finance leases 8 13
Lease liabilities arising from obtaining right-of-use assets    
Operating leases 1 10
Finance leases 0 36
Consumers Energy Company    
Cash paid for amounts included in the measurement of lease liabilities    
Cash used in operating activities for operating leases 6 6
Cash used in operating activities for finance leases 13 14
Cash used in financing activities for finance leases 8 12
Lease liabilities arising from obtaining right-of-use assets    
Operating leases 1 10
Finance leases $ 0 $ 12
v3.24.0.1
Leases (Summary of Minimum Annual Rental Commitments) (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Operating Leases  
2024 $ 5
2025 4
2026 3
2027 2
2028 1
2028 and thereafter 30
Total minimum lease payments 45
Less discount 19
Present value of minimum lease payments 26
Finance Leases  
2024 19
2025 16
2026 17
2027 14
2028 14
2028 and thereafter 92
Total minimum lease payments 172
Less discount 105
Present value of minimum lease payments 67
Consumers Energy Company  
Operating Leases  
2024 5
2025 4
2026 2
2027 2
2028 1
2028 and thereafter 24
Total minimum lease payments 38
Less discount 15
Present value of minimum lease payments 23
Finance Leases  
2024 18
2025 15
2026 15
2027 13
2028 13
2028 and thereafter 34
Total minimum lease payments 108
Less discount 64
Present value of minimum lease payments 44
Pipelines and PPAs  
Finance Leases  
2024 13
2025 13
2026 13
2027 13
2028 13
2028 and thereafter 26
Total minimum lease payments 91
Less discount 62
Present value of minimum lease payments 29
Pipelines and PPAs | Consumers Energy Company  
Finance Leases  
2024 13
2025 13
2026 13
2027 13
2028 13
2028 and thereafter 26
Total minimum lease payments 91
Less discount 62
Present value of minimum lease payments 29
Other  
Finance Leases  
2024 6
2025 3
2026 4
2027 1
2028 1
2028 and thereafter 66
Total minimum lease payments 81
Less discount 43
Present value of minimum lease payments 38
Other | Consumers Energy Company  
Finance Leases  
2024 5
2025 2
2026 2
2027 0
2028 0
2028 and thereafter 8
Total minimum lease payments 17
Less discount 2
Present value of minimum lease payments $ 15
v3.24.0.1
Leases (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Consumers Energy Company    
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]    
Minimum rental payments to be received 2023 $ 1  
Minimum annual rental payments to be received in 2024 1  
Minimum annual rental payments to be received in 2025 1  
Minimum annual rental payments to be received in 2026 1  
Minimum rental payments to be received in 2027 1  
Minimum rental payments to be received 2028 and thereafter 6  
Lease receivables 6  
Unearned income 5  
Power Sales Agreement    
Lessor, Lease, Description [Line Items]    
Leasing income 116 $ 240
Variable lease income $ 74 $ 191
v3.24.0.1
Leases (Schedule of Future Payments to be Received) (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Operating Leases  
2024 $ 43
2025 44
2026 18
Total minimum lease payments $ 105
v3.24.0.1
Asset Retirement Obligations (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period $ 746 $ 628
Incurred 11 1
Settled (28) (39)
Accretion 33 28
Cash Flow Revisions 9 128
ARO Liability, end of period 771 746
Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 722 605
Incurred 4 1
Settled (28) (39)
Accretion 32 27
Cash Flow Revisions 9 128
ARO Liability, end of period 739 722
Renewable generation assets    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 24 23
Incurred 7 0
Settled 0 0
Accretion 1 1
Cash Flow Revisions 0 0
ARO Liability, end of period 32 24
Renewable generation assets | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 95 93
Incurred 4 0
Settled 0 0
Accretion 3 2
Cash Flow Revisions 0 0
ARO Liability, end of period 102 95
Coal ash disposal areas | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 272 157
Incurred 0 0
Settled (15) (20)
Accretion 11 7
Cash Flow Revisions 0 128
ARO Liability, end of period 268 272
Gas distribution cut, purge, and cap | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 287 282
Incurred 0 1
Settled (10) (11)
Accretion 14 15
Cash Flow Revisions (1) 0
ARO Liability, end of period 290 287
Asbestos abatement | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 39 38
Incurred 0 0
Settled (1) (1)
Accretion 3 2
Cash Flow Revisions 10 0
ARO Liability, end of period 51 39
Gas wells plug and abandon | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 29 35
Incurred 0 0
Settled (2) (7)
Accretion 1 1
Cash Flow Revisions 0 0
ARO Liability, end of period $ 28 $ 29
v3.24.0.1
Retirement Benefits (Narrative) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
yr
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Defined Benefit Plan Disclosure [Line Items]      
Union employees percentage 44.00%    
OPEB Plan      
Defined Benefit Plan Disclosure [Line Items]      
Retirement age requirement | yr 55    
Retirement years of service 10 years    
Retirement years of service with disability 15 years    
Ultimate health care cost trend rate 4.75%    
Year health care cost trend rate reaches ultimate trend rate 2032    
Estimated time of amortization of gains losses 9 years 9 years 9 years
OPEB Plan | Volatility Mechanism      
Defined Benefit Plan Disclosure [Line Items]      
Deferred costs (credits) $ (23)    
OPEB Plan | Under Age 65      
Defined Benefit Plan Disclosure [Line Items]      
Health care cost trend rate assumed next fiscal year 8.00% 6.50%  
OPEB Plan | Over Age 65      
Defined Benefit Plan Disclosure [Line Items]      
Health care cost trend rate assumed next fiscal year 8.50% 6.75%  
DB Pension Plans and DB SERP | Volatility Mechanism      
Defined Benefit Plan Disclosure [Line Items]      
Deferred costs (credits) $ 11    
DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Amortized net gains and losses in excess of PBO or MRV 10.00%    
Period for gains or losses to be included in market related value 5 years    
Accumulated benefit obligation $ 2,000 $ 2,000  
DB Pension Plans | Fixed-income securities      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 40.00%    
DB Pension Plans | Equity securities      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 38.00%    
DB Pension Plans | Real asset investments      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 11.00%    
DB Pension Plans | Return-seeking fixed income      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 7.00%    
DB Pension Plans | Liquid alternative investments      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 4.00%    
Postretirement Health Trusts | Fixed-income securities      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 40.00%    
Postretirement Health Trusts | Equity securities      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 38.00%    
Postretirement Health Trusts | Real asset investments      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 11.00%    
Postretirement Health Trusts | Return-seeking fixed income      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 7.00%    
Postretirement Health Trusts | Liquid alternative investments      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 4.00%    
Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Union employees percentage 45.00%    
Consumers Energy Company | OPEB Plan      
Defined Benefit Plan Disclosure [Line Items]      
Retirement age requirement | yr 55    
Retirement years of service 10 years    
Retirement years of service with disability 15 years    
Ultimate health care cost trend rate 4.75%    
Year health care cost trend rate reaches ultimate trend rate 2032    
Consumers Energy Company | OPEB Plan | Under Age 65      
Defined Benefit Plan Disclosure [Line Items]      
Health care cost trend rate assumed next fiscal year 8.00% 6.50%  
Consumers Energy Company | OPEB Plan | Over Age 65      
Defined Benefit Plan Disclosure [Line Items]      
Health care cost trend rate assumed next fiscal year 8.50% 6.75%  
Defined Company Contribution Plan      
Defined Benefit Plan Disclosure [Line Items]      
Plan cost, defined contribution plan $ 51 $ 48 $ 41
Defined Company Contribution Plan | Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Plan cost, defined contribution plan 50 48 41
DC SERP      
Defined Benefit Plan Disclosure [Line Items]      
Plan cost, defined contribution plan $ 1 1 2
Minimum years of participation before vesting 5 years    
Defined Contribution Plan, Trust Assets, Amount $ 14 12  
401 (K) Plan      
Defined Benefit Plan Disclosure [Line Items]      
Plan cost, defined contribution plan 41 44 31
401 (K) Plan | Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Plan cost, defined contribution plan $ 40 $ 43 $ 31
Pension Plan A | DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Estimated time of amortization of gains losses 8 years 8 years 8 years
Estimated time of prior service cost     8 years
Pension Plan A | Consumers Energy Company | DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Estimated time of prior service cost     8 years
Pension Plan B | DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Estimated time of amortization of gains (losses) life expectancy 17 years 18 years 18 years
Minimum | Defined Company Contribution Plan      
Defined Benefit Plan Disclosure [Line Items]      
Contribution range 5.00%    
Minimum | DC SERP      
Defined Benefit Plan Disclosure [Line Items]      
Plan contribution percentage 5.00%    
Minimum | 401 (K) Plan      
Defined Benefit Plan Disclosure [Line Items]      
Contribution range 4.00%    
Maximum | Defined Company Contribution Plan      
Defined Benefit Plan Disclosure [Line Items]      
Contribution range 10.00%    
Maximum | DC SERP      
Defined Benefit Plan Disclosure [Line Items]      
Plan contribution percentage 15.00%    
Maximum | 401 (K) Plan      
Defined Benefit Plan Disclosure [Line Items]      
Contribution range 6.00%    
v3.24.0.1
Retirement Benefits (Schedule of SERP Trust Assets, ABO and Contributions) (Details) - DB SERP - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]    
ABO $ 115 $ 118
Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
ABO 83 85
Trust assets    
Defined Benefit Plan Disclosure [Line Items]    
Trust assets 132 137
Trust assets | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Trust assets $ 98 $ 101
v3.24.0.1
Retirement Benefits (Schedule of Assumptions Used) (Details)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
DB Pension Plans      
Weighted average for net periodic benefit cost      
Expected long-term rate of return on plan assets 7.20% 6.50% 6.75%
Actual rate of return on plan assets 12.60% (15.90%) 12.00%
DB SERP      
Weighted average for benefit obligations      
Discount rate 4.94% 5.13% 2.78%
Rate of compensation increase 0.00% 5.50% 5.50%
Weighted average for net periodic benefit cost      
Service cost discount rate 5.18% 3.09% 2.84%
Interest cost discount rate 5.06% 2.21% 1.72%
Rate of compensation increase 5.50% 5.50% 5.50%
OPEB Plan      
Weighted average for benefit obligations      
Discount rate 5.02% 5.21% 2.99%
Weighted average for net periodic benefit cost      
Service cost discount rate 5.31% 3.23% 3.03%
Interest cost discount rate 5.10% 2.45% 1.99%
Expected long-term rate of return on plan assets 7.20% 6.50% 6.75%
Pension Plan A | DB Pension Plans      
Weighted average for benefit obligations      
Discount rate 5.05% 5.24% 3.02%
Rate of compensation increase 3.60% 3.60% 3.60%
Weighted average for net periodic benefit cost      
Service cost discount rate 5.27% 3.09% 2.83%
Interest cost discount rate 5.12% 2.44% 1.97%
Rate of compensation increase 3.60% 3.60% 3.50%
Pension Plan B | DB Pension Plans      
Weighted average for benefit obligations      
Discount rate 4.95% 5.14% 2.79%
Weighted average for net periodic benefit cost      
Interest cost discount rate 5.06% 2.21% 1.70%
v3.24.0.1
Retirement Benefits (Schedule of Net Benefit Costs) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
DB Pension Plans and DB SERP      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost $ 29 $ 41 $ 53
Interest cost 112 84 63
Settlement loss 0 1 1
Expected return on plan assets (220) (206) (208)
Amortization of:      
Net loss 12 40 100
Prior service cost (credit) 4 4 4
Settlement loss 11 9 6
Net periodic cost (credit) (52) (27) 19
DB Pension Plans and DB SERP | Volatility Mechanism      
Amortization of:      
Deferred costs (credits) (11)    
DB Pension Plans and DB SERP | Consumers Energy Company      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost 28 39 51
Interest cost 105 79 59
Expected return on plan assets (208) (194) (197)
Amortization of:      
Net loss 11 37 96
Prior service cost (credit) 4 4 4
Settlement loss 11 9 6
Net periodic cost (credit) (49) (26) 19
OPEB Plan      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost 12 17 18
Interest cost 44 28 23
Settlement loss 0 0 0
Expected return on plan assets (103) (115) (109)
Amortization of:      
Net loss 12 1 8
Prior service cost (credit) (41) (51) (53)
Settlement loss 0 0 0
Net periodic cost (credit) (76) (120) (113)
OPEB Plan | Volatility Mechanism      
Amortization of:      
Deferred costs (credits) 23    
OPEB Plan | Consumers Energy Company      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost 11 17 17
Interest cost 42 27 23
Expected return on plan assets (95) (107) (102)
Amortization of:      
Net loss 12 0 8
Prior service cost (credit) (40) (50) (51)
Settlement loss 0 0 0
Net periodic cost (credit) $ (70) $ (113) $ (105)
v3.24.0.1
Retirement Benefits (Schedule of Funded Status of Retirement Benefit Plans) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
DB Pension Plans      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period $ 2,169 $ 3,070  
Service cost 29 41  
Interest cost 106 81  
Plan amendments 0 0  
Actuarial loss (gain) 52 (811)  
Benefits paid (161) (212)  
Benefit obligation at end of period 2,195 2,169 $ 3,070
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 2,820 3,599  
Actual return on plan assets 345 (567)  
Company contribution 0 0  
Actual benefits paid (161) (212)  
Plan assets at fair value at end of period 3,004 2,820 3,599
Funded status 809 651  
DB Pension Plans | Consumers Energy Company      
Defined Benefit Plan, Roll Forwards [Abstract]      
Funded status 781 632  
DB SERP      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 117 149  
Service cost 0 0  
Interest cost 6 3  
Plan amendments 0 0  
Actuarial loss (gain) 1 (25)  
Benefits paid (10) (10)  
Benefit obligation at end of period 114 117 149
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 0 0  
Actual return on plan assets 0 0  
Company contribution 10 10  
Actual benefits paid (10) (10)  
Plan assets at fair value at end of period 0 0 0
Funded status (114) (117)  
DB SERP | Consumers Energy Company      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 85 109  
Service cost 0 0  
Interest cost 4 2  
Plan amendments 0 0  
Actuarial loss (gain) 1 (19)  
Benefits paid (7) (7)  
Benefit obligation at end of period 83 85 109
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 0 0  
Actual return on plan assets 0 0  
Company contribution 7 7  
Actual benefits paid (7) (7)  
Plan assets at fair value at end of period 0 0 0
Funded status (83) (85)  
OPEB Plan      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 889 1,166  
Service cost 12 17 18
Interest cost 44 28 23
Plan amendments 0 0  
Actuarial loss (gain) 9 (274)  
Benefits paid (54) (48)  
Benefit obligation at end of period 900 889 1,166
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 1,446 1,787  
Actual return on plan assets 165 (294)  
Company contribution 0 0  
Actual benefits paid (52) (47)  
Plan assets at fair value at end of period 1,559 1,446 1,787
Funded status 659 557  
OPEB Plan | Consumers Energy Company      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 856 1,122  
Service cost 11 17 17
Interest cost 42 27 23
Plan amendments 0 0  
Actuarial loss (gain) 10 (265)  
Benefits paid (52) (45)  
Benefit obligation at end of period 867 856 1,122
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 1,350 1,668  
Actual return on plan assets 154 (273)  
Company contribution 0 0  
Actual benefits paid (51) (45)  
Plan assets at fair value at end of period 1,453 1,350 $ 1,668
Funded status $ 586 $ 494  
v3.24.0.1
Retirement Benefits (Schedule of Retirement Benefit Plan Assets (Liabilities)) (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets $ 1,468 $ 1,208
Non-current liabilities 106 108
Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 1,367 1,126
Non-current liabilities 77 79
DB Pension Plans    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 809 651
DB Pension Plans | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 781 632
OPEB Plan    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 659 557
OPEB Plan | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 586 494
DB SERP    
Defined Benefit Plan Disclosure [Line Items]    
Current liabilities 10 10
Non-current liabilities 104 107
DB SERP | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Current liabilities 7 7
Non-current liabilities $ 76 $ 78
v3.24.0.1
Retirement Benefits (Schedule of Net Periodic Benefit Cost Not yet Recognized) (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Consumers Energy Company    
Regulatory assets    
Total regulatory assets $ 3,886 $ 3,652
DB Pension Plans and DB SERP    
Regulatory assets    
Net loss 634 724
Prior service cost (credit) 16 21
Total regulatory assets 650 745
AOCI    
Net loss (gain) 65 69
Prior service cost (credit) 1 1
Total amounts recognized in regulatory assets and AOCI 716 815
DB Pension Plans and DB SERP | Consumers Energy Company    
Regulatory assets    
Net loss 634 724
Prior service cost (credit) 16 21
Total regulatory assets 650 745
AOCI    
Net loss (gain) 20 20
Total amounts recognized in regulatory assets and AOCI 670 765
OPEB Plan    
Regulatory assets    
Net loss 191 251
Prior service cost (credit) (100) (140)
Total regulatory assets 91 111
AOCI    
Net loss (gain) (3) 2
Prior service cost (credit) (2) (3)
Total amounts recognized in regulatory assets and AOCI 86 110
OPEB Plan | Consumers Energy Company    
Regulatory assets    
Net loss 191 251
Prior service cost (credit) (100) (140)
Total regulatory assets 91 111
AOCI    
Net loss (gain) 0 0
Total amounts recognized in regulatory assets and AOCI $ 91 $ 111
v3.24.0.1
Retirement Benefits (Schedule of Allocation of Plan Assets) (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets $ 3,004 $ 2,820 $ 3,599
DB Pension Plans | Plan Assets Excluding Pooled Funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 225 385  
DB Pension Plans | Plan Assets Excluding Pooled Funds | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 225 385  
DB Pension Plans | Plan Assets Excluding Pooled Funds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0    
DB Pension Plans | Cash and short-term investments      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 178 122  
DB Pension Plans | Cash and short-term investments | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 178 122  
DB Pension Plans | Cash and short-term investments | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0    
DB Pension Plans | Mutual funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 47 263  
DB Pension Plans | Mutual funds | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 47 263  
DB Pension Plans | Mutual funds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0    
DB Pension Plans | Pooled funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 2,779 2,435  
OPEB Plan      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 1,559 1,446 $ 1,787
OPEB Plan | Plan Assets Excluding Pooled Funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 402 851  
OPEB Plan | Plan Assets Excluding Pooled Funds | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 303 851  
OPEB Plan | Plan Assets Excluding Pooled Funds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 99    
OPEB Plan | Cash and short-term investments      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 82 28  
OPEB Plan | Cash and short-term investments | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 82 28  
OPEB Plan | Cash and short-term investments | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0    
OPEB Plan | U.S. government and agencies securities      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 16 0  
OPEB Plan | U.S. government and agencies securities | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 0  
OPEB Plan | U.S. government and agencies securities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 16    
OPEB Plan | Corporate debt      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 67 0  
OPEB Plan | Corporate debt | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 0  
OPEB Plan | Corporate debt | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 67    
OPEB Plan | State and municipal bonds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 1 0  
OPEB Plan | State and municipal bonds | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 0  
OPEB Plan | State and municipal bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 1    
OPEB Plan | Foreign corporate bonds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 15 0  
OPEB Plan | Foreign corporate bonds | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 0  
OPEB Plan | Foreign corporate bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 15    
OPEB Plan | Common stocks      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 161 69  
OPEB Plan | Common stocks | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 161 69  
OPEB Plan | Common stocks | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0    
OPEB Plan | Mutual funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 60 754  
OPEB Plan | Mutual funds | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 60 754  
OPEB Plan | Mutual funds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0    
OPEB Plan | Pooled funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets $ 1,157 $ 595  
v3.24.0.1
Retirement Benefits (Schedule of Asset Allocation) (Details)
Dec. 31, 2023
DB Pension Plans  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 100.00%
DB Pension Plans | Fixed-income securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 42.00%
DB Pension Plans | Equity securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 38.00%
DB Pension Plans | Real asset investments  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 9.00%
DB Pension Plans | Return-seeking fixed income  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 6.00%
DB Pension Plans | Liquid alternative investments  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 4.00%
DB Pension Plans | Cash and cash equivalents  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 1.00%
OPEB Plan  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 100.00%
OPEB Plan | Fixed-income securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 40.00%
OPEB Plan | Equity securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 42.00%
OPEB Plan | Real asset investments  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 8.00%
OPEB Plan | Return-seeking fixed income  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 5.00%
OPEB Plan | Liquid alternative investments  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 4.00%
OPEB Plan | Cash and cash equivalents  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 1.00%
v3.24.0.1
Retirement Benefits (Schedule of Expected Benefit Payments) (Details)
$ in Millions
Dec. 31, 2023
USD ($)
DB Pension Plans  
Defined Benefit Plan Disclosure [Line Items]  
2024 $ 158
2025 160
2026 159
2027 159
2028 159
2029-2033 785
DB Pension Plans | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
2024 148
2025 151
2026 150
2027 150
2028 150
2029-2033 741
DB SERP  
Defined Benefit Plan Disclosure [Line Items]  
2024 10
2025 10
2026 10
2027 10
2028 9
2029-2033 43
DB SERP | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
2024 7
2025 7
2026 7
2027 7
2028 6
2029-2033 29
OPEB Plan  
Defined Benefit Plan Disclosure [Line Items]  
2024 55
2025 57
2026 58
2027 60
2028 61
2029-2033 315
OPEB Plan | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
2024 53
2025 54
2026 56
2027 57
2028 59
2029-2033 $ 301
v3.24.0.1
Stock-based Compensation (Narrative) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Deferred compensation arrangements plan term 10 years
Number of shares authorized (in shares) 6,500,000
Shares available for grant (in shares) 4,960,465
Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Deferred compensation arrangements plan term 10 years
Number of shares authorized (in shares) 6,500,000
Shares available for grant (in shares) 4,960,465
Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Percent of initial grant issued on vesting date 0.00%
Minimum | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Percent of initial grant issued on vesting date 0.00%
Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Percent of initial grant issued on vesting date 200.00%
Maximum | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Percent of initial grant issued on vesting date 200.00%
Performance-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 38 months
Vesting period 3 years
Performance-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 38 months
Vesting period 3 years
Performance-based awards | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 36 months
Performance-based awards | Minimum | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 36 months
Market-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 3 years
Vesting period 3 years
Market-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 3 years
Vesting period 3 years
Time-lapse awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 3 years
Time-lapse awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 3 years
Restricted stock units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 1 year
Shares forfeited (in shares) 0
Restricted stock units | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 1 year
Shares forfeited (in shares) 0
Restricted stock  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares forfeited (in shares) 63,987
Unrecognized compensation cost | $ $ 29
Unrecognized compensation cost recognition period 2 years
Restricted stock | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares forfeited (in shares) 60,312
Unrecognized compensation cost | $ $ 27
Unrecognized compensation cost recognition period 2 years
v3.24.0.1
Stock-based Compensation (Schedule of Restricted Stock Activity) (Details) - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Number of Shares      
Granted (in shares) 521,121    
Consumers Energy Company      
Number of Shares      
Granted (in shares) 493,232    
Restricted Stock and Restricted Stock Units      
Number of Shares      
Nonvested, at beginning of period (in shares) 1,029,523    
Nonvested, at end of period (in shares) 1,158,102 1,029,523  
Weighted-Average Grant Date Fair Value per Share      
Weighted-average grant date fair value per share, at beginning of period (in dollars per share) $ 60.13    
Weighted-average grant date fair value per share, at end of period (in dollars per share) $ 59.50 $ 60.13  
Restricted Stock and Restricted Stock Units | Consumers Energy Company      
Number of Shares      
Nonvested, at beginning of period (in shares) 978,146    
Nonvested, at end of period (in shares) 1,094,366 978,146  
Weighted-Average Grant Date Fair Value per Share      
Weighted-average grant date fair value per share, at beginning of period (in dollars per share) $ 60.15    
Weighted-average grant date fair value per share, at end of period (in dollars per share) $ 59.50 $ 60.15  
Restricted stock      
Number of Shares      
Granted (in shares) 502,039    
Vested (in shares) (313,344)    
Forfeited (in shares) (63,987)    
Weighted-Average Grant Date Fair Value per Share      
Granted (in dollars per share) $ 52.62 48.69 $ 43.52
Vested (in dollars per share) 51.54    
Forfeitured (in dollars per share) $ 53.57    
Restricted stock | Consumers Energy Company      
Number of Shares      
Granted (in shares) 474,917    
Vested (in shares) (302,177)    
Forfeited (in shares) (60,312)    
Weighted-Average Grant Date Fair Value per Share      
Granted (in dollars per share) $ 52.42 48.57 42.85
Vested (in dollars per share) 51.48    
Forfeitured (in dollars per share) $ 53.45    
Restricted stock units      
Number of Shares      
Granted (in shares) 19,082    
Vested (in shares) (15,211)    
Forfeited (in shares) 0    
Weighted-Average Grant Date Fair Value per Share      
Granted (in dollars per share) $ 50.32 56.13 54.11
Vested (in dollars per share) $ 52.60    
Restricted stock units | Consumers Energy Company      
Number of Shares      
Granted (in shares) 18,315    
Vested (in shares) (14,523)    
Forfeited (in shares) 0    
Weighted-Average Grant Date Fair Value per Share      
Granted (in dollars per share) $ 50.34 $ 56.07 $ 53.93
Vested (in dollars per share) $ 52.55    
v3.24.0.1
Stock-based Compensation (Schedule of Restricted Stock Activity - Granted) (Details)
 12 Months Ended
Dec. 31, 2023
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 521,121
Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 493,232
Time-lapse awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 115,591
Time-lapse awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 108,216
Market-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 147,453
Market-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 139,255
Performance-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 153,383
Performance-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 145,008
Restricted stock units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 15,545
Restricted stock units | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 14,925
Dividends on market-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 14,825
Dividends on market-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 14,038
Dividends on performance-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 15,608
Dividends on performance-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 14,787
Dividends on restricted stock units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 3,537
Dividends on restricted stock units | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 3,390
Additional performance-based shares based on achievement of condition  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 55,179
Additional performance-based shares based on achievement of condition | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 53,613
v3.24.0.1
Stock-based Compensation (Schedule of Significant Assumptions Used to Estimate Fair Value of Market-based Restricted Stock Awards) (Details)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-Based Payment Arrangement, Noncash Expense [Abstract]      
Expected volatility 30.30% 27.30% 27.60%
Expected dividend yield 2.90% 2.80% 2.80%
Risk-free rate 3.90% 1.40% 0.20%
v3.24.0.1
Stock-based Compensation (Summary of Weighted-average Grant-date Fair Value) (Details) - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restricted stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) $ 52.62 $ 48.69 $ 43.52
Restricted stock | Consumers Energy Company      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) 52.42 48.57 42.85
Restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) 50.32 56.13 54.11
Restricted stock units | Consumers Energy Company      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) $ 50.34 $ 56.07 $ 53.93
v3.24.0.1
Stock-based Compensation (Schedule of Amounts Related to Restricted Stock Awards and Restricted Stock Units) (Details) - Restricted stock - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of shares that vested during the year $ 20 $ 27 $ 25
Compensation expense recognized 28 26 22
Income tax benefit recognized 3 0 1
Consumers Energy Company      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of shares that vested during the year 19 25 24
Compensation expense recognized 26 25 21
Income tax benefit recognized $ 2 $ 0 $ 1
v3.24.0.1
Income Taxes (Schedule of Effective Income Rate Reconciliation) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Taxes [Line Items]      
Income Before Income Taxes $ 954 $ 902 $ 823
Income tax expense at statutory rate 200 189 173
Increase (decrease) in income taxes from:      
State and local income taxes, net of federal effect 31 51 39
Renewable energy tax credits (58) (51) (44)
TCJA excess deferred taxes (40) (65) (50)
Taxes attributable to noncontrolling interests 17 5 5
Accelerated flow-through of regulatory tax benefits 0 (39) (28)
Other, net (3) 3 0
Income Tax Expense $ 147 $ 93 $ 95
Effective tax rate 15.40% 10.30% 11.50%
Consumers Energy Company      
Income Taxes [Line Items]      
Income Before Income Taxes $ 1,028 $ 1,085 $ 1,024
Income tax expense at statutory rate 216 228 215
Increase (decrease) in income taxes from:      
State and local income taxes, net of federal effect 36 59 54
Renewable energy tax credits (46) (46) (37)
TCJA excess deferred taxes (40) (65) (50)
Accelerated flow-through of regulatory tax benefits 0 (39) (28)
Other, net (5) 3 2
Income Tax Expense $ 161 $ 140 $ 156
Effective tax rate 15.70% 12.90% 15.20%
Consumers Energy Company | Non-Michigan Jurisdiction      
Increase (decrease) in income taxes from:      
State and local income taxes, net of federal effect $ (13)    
v3.24.0.1
Income Taxes (Summary of Significant Components of Income Tax Expense) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current income taxes      
Federal $ 5 $ 6 $ (1)
State and local 1 0 1
Total current income tax expense 6 6 0
Deferred income taxes      
Federal 107 4 49
State and local 38 65 49
Total deferred income tax expense 145 69 98
Deferred income tax credit (4) 18 (3)
Income tax expense 147 93 95
Consumers Energy Company      
Current income taxes      
Federal 3 (2) (13)
State and local 2 8 15
Total current income tax expense 5 6 2
Deferred income taxes      
Federal 117 50 103
State and local 43 66 54
Total deferred income tax expense 160 116 157
Deferred income tax credit (4) 18 (3)
Income tax expense $ 161 $ 140 $ 156
v3.24.0.1
Income Taxes (Summary of Principal Components of Deferred Income Tax Assets and Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Deferred income tax assets    
Tax loss and credit carryforwards $ 428 $ 385
Net regulatory tax liability 305 318
Reserves and accruals 28 35
Total deferred income tax assets 761 738
Valuation allowance (2) (2)
Total deferred income tax assets, net of valuation allowance 759 736
Deferred income tax liabilities    
Plant, property, and equipment (2,520) (2,515)
Employee benefits (473) (433)
Gas inventory (66) (53)
Securitized costs (194) (39)
Other (121) (103)
Total deferred income tax liabilities (3,374) (3,143)
Total net deferred income tax liabilities (2,615) (2,407)
Consumers Energy Company    
Deferred income tax assets    
Tax loss and credit carryforwards 175 145
Net regulatory tax liability 305 318
Reserves and accruals 27 28
Total deferred income tax assets, net of valuation allowance 507 491
Deferred income tax liabilities    
Plant, property, and equipment (2,498) (2,458)
Employee benefits (459) (423)
Gas inventory (66) (53)
Securitized costs (194) (39)
Other (79) (103)
Total deferred income tax liabilities (3,296) (3,076)
Total net deferred income tax liabilities $ (2,789) $ (2,585)
v3.24.0.1
Income Taxes (Summary of Loss and Credit Carryforwards) (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Operating Loss Carryforwards [Line Items]  
General business credits $ 356
Total tax attributes 428
Consumers Energy Company  
Operating Loss Carryforwards [Line Items]  
General business credits 122
Total tax attributes 175
State Tax Authority  
Operating Loss Carryforwards [Line Items]  
Local net operating loss carryforwards 69
State Tax Authority | Consumers Energy Company  
Operating Loss Carryforwards [Line Items]  
Local net operating loss carryforwards 53
Local Tax Authority  
Operating Loss Carryforwards [Line Items]  
Local net operating loss carryforwards $ 3
v3.24.0.1
Income Taxes (Narrative) (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Benefits [Line Items]      
Interest and penalties $ 0 $ 0 $ 0
Consumers Energy Company      
Income Tax Benefits [Line Items]      
Interest and penalties 0 $ 0 $ 0
Local Tax Authority      
Income Tax Benefits [Line Items]      
Valuation allowance - loss carryforward $ 2,000,000    
v3.24.0.1
Income Taxes (Schedule of Reconciliation of Uncertain Tax Benefits) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of period $ 28 $ 27 $ 25
Additions for current-year tax positions 1 1 2
Additions for prior-year tax positions 0 1 0
Reductions for prior-year tax positions (3) (1) 0
Balance at end of period 26 28 27
Consumers Energy Company      
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of period 36 34 31
Additions for current-year tax positions 1 3 3
Additions for prior-year tax positions 2 1 0
Reductions for prior-year tax positions (3) (2) 0
Balance at end of period $ 36 $ 36 $ 34
v3.24.0.1
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income available to common stockholders      
Income from continuing operations $ 807 $ 809 $ 728
Loss attributable to noncontrolling interests (79) (24) (23)
Preferred stock dividends 10 10 5
Income from continuing operations available to common stockholders – basic and diluted $ 876 $ 823 $ 746
Average common shares outstanding      
Weighted average shares - basic (in shares) 291.2 289.5 289.0
Dilutive nonvested stock awards (in shares) 0.5 0.3 0.5
Dilutive forward equity sale contracts (in shares) 0.0 0.2 0.0
Weighted average shares - diluted (in shares) 291.7 290.0 289.5
Income from continuing operations per average common share available to common stockholders      
Basic (in dollars per share) $ 3.01 $ 2.84 $ 2.58
Diluted (in dollars per share) $ 3.01 $ 2.84 $ 2.58
v3.24.0.1
Earnings Per Share - CMS Energy (Narrative) (Details) - USD ($)
$ in Millions
Dec. 31, 2023
May 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Principal (In Millions) $ 3,556  
CMS Energy    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Principal (In Millions) 800  
CMS Energy | 3.375% Convertible Senior Notes Due 2028 | Convertible debt    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Principal (In Millions) $ 800 $ 800
v3.24.0.1
Revenue (Disaggregation of Revenue) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers $ 7,261 $ 8,320 $ 7,075
Leasing income 116 240 194
Financing income 16 16 15
Alternative-revenue programs 69 57 45
Revenues to be refunded   (37)  
Total operating revenue 7,462 8,596 7,329
Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 4,686 5,395 4,915
Financing income 10 10 10
Alternative-revenue programs 49 43 33
Revenues to be refunded   (29)  
Total operating revenue 4,745 5,419 4,958
Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 2,394 2,720 2,046
Financing income 6 6 5
Alternative-revenue programs 20 14 12
Revenues to be refunded   (8)  
Total operating revenue 2,420 2,732 2,063
NorthStar Clean Energy | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 181 205 114
Leasing income 116 240 194
Total operating revenue 297 445 308
Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 7,080 8,115 6,961
Financing income 16 16 15
Alternative-revenue programs 69 57 45
Revenues to be refunded   (37)  
Other non-segment revenue 1    
Total operating revenue 7,166 8,151 7,021
Consumers Energy Company | Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 4,686 5,395 4,915
Financing income 10 10 10
Alternative-revenue programs 49 43 33
Revenues to be refunded   (29)  
Total operating revenue 4,745 5,419 4,958
Consumers Energy Company | Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 2,394 2,720 2,046
Financing income 6 6 5
Alternative-revenue programs 20 14 12
Revenues to be refunded   (8)  
Total operating revenue 2,420 2,732 2,063
Residential | Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 3,855 4,402 3,798
Residential | Consumers Energy Company | Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 2,236 2,523 2,402
Residential | Consumers Energy Company | Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 1,619 1,879 1,396
Commercial | Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 2,039 2,292 1,969
Commercial | Consumers Energy Company | Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 1,550 1,733 1,573
Commercial | Consumers Energy Company | Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 489 559 396
Industrial | Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 720 867 678
Industrial | Consumers Energy Company | Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 660 792 624
Industrial | Consumers Energy Company | Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 60 75 54
Other      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 181 205 114
Other | NorthStar Clean Energy | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 181 205 114
Other | Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 466 554 516
Other | Consumers Energy Company | Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 240 347 316
Other | Consumers Energy Company | Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers $ 226 $ 207 $ 200
v3.24.0.1
Revenue (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Bad debt expense $ 34 $ 50 $ 22
Unbilled receivables 494 663  
Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Bad debt expense 34 50 22
Regulatory liability 3,950 3,900  
Unbilled receivables 494 663  
Consumers Energy Company | Contributions to assistance programs      
Disaggregation of Revenue [Line Items]      
Regulatory liability 10    
Consumers Energy Company | Voluntary refund mechanism      
Disaggregation of Revenue [Line Items]      
Regulatory liability   22  
Consumers Energy Company | Reserve for customer refunds      
Disaggregation of Revenue [Line Items]      
Regulatory liability 15    
Accounts Receivable      
Disaggregation of Revenue [Line Items]      
Bad debt expense 34 50 22
Accounts Receivable | Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Bad debt expense $ 34 $ 50 $ 22
v3.24.0.1
Other Income and Other Expense (Summary of Components of Other Income and Other Expense) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Other Income and Expenses [Line Items]      
Gain on extinguishment of debt   $ 0 $ 0
Allowance for equity funds used during construction $ 7 6 8
Income from equity method investees 7 3 10
All other 13 5 9
Other income 195 19 30
Donations (1) (9) (6)
Civic and political expenditures (5) (6) (5)
All other (7) (12) (7)
Total other expense (13) (27) (18)
Nonrelated Party      
Other Income and Expenses [Line Items]      
Interest income 37 5 3
Consumers Energy Company      
Other Income and Expenses [Line Items]      
Allowance for equity funds used during construction 7 6 8
All other 12 4 8
Other income 49 17 23
Donations (1) (9) (6)
Civic and political expenditures (5) (6) (5)
All other (6) (10) (7)
Total other expense (12) (25) (18)
Consumers Energy Company | Nonrelated Party      
Other Income and Expenses [Line Items]      
Interest income 25 2 2
Consumers Energy Company | Related Party      
Other Income and Expenses [Line Items]      
Interest income $ 5 $ 5 $ 5
v3.24.0.1
Reportable Segments (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Segment Reporting Information [Line Items]      
Operating Revenue $ 7,462 $ 8,596 $ 7,329
Depreciation and amortization 1,180 1,126 1,114
Income from equity method investees 7 3 10
Total interest charges 643 519 500
Income Tax Expense 147 93 95
Net income (loss) available to common stockholders 877 827 1,348
Plant, property, and equipment, gross 33,135 30,491 29,893
Investments 76 71 71
Total assets 33,517 31,353 28,753
Capital expenditures 3,280 2,393 2,161
Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 7,166 8,151 7,021
Depreciation and amortization 1,137 1,088 1,077
Total interest charges 448 335 311
Income Tax Expense 161 140 156
Net income (loss) available to common stockholders 865 943 866
Plant, property, and equipment, gross 31,723 29,342 28,771
Total assets 31,852 29,916 27,140
Capital expenditures 3,145 2,280 2,144
Other reconciling items      
Segment Reporting Information [Line Items]      
Depreciation and amortization 2 1 1
Total interest charges 202 182 183
Income Tax Expense (22) (51) (59)
Net income (loss) available to common stockholders (55) (152) 458
Plant, property, and equipment, gross 30 30 23
Total assets 202 109 431
Capital expenditures 2 7 2
Other reconciling items | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 1 0 0
Depreciation and amortization 2 1 1
Total interest charges 2 1 0
Income Tax Expense (4) (1) 0
Net income (loss) available to common stockholders 0 (2) (1)
Plant, property, and equipment, gross 38 29 23
Total assets 38 30 21
Capital expenditures 23 7 2
Electric Utility | Operating Segments      
Segment Reporting Information [Line Items]      
Operating Revenue 4,745 5,419 4,958
Depreciation and amortization 797 757 772
Total interest charges 281 218 207
Income Tax Expense 67 109 117
Net income (loss) available to common stockholders 550 567 565
Plant, property, and equipment, gross 19,302 17,870 18,147
Total assets 19,358 17,907 16,493
Capital expenditures 2,081 1,265 1,153
Electric Utility | Operating Segments | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 4,745 5,419 4,958
Depreciation and amortization 797 757 772
Total interest charges 285 218 207
Income Tax Expense 67 109 117
Net income (loss) available to common stockholders 550 567 565
Plant, property, and equipment, gross 19,302 17,870 18,147
Total assets 19,417 17,968 16,555
Capital expenditures 2,081 1,265 1,153
Gas Utility | Operating Segments      
Segment Reporting Information [Line Items]      
Operating Revenue 2,420 2,732 2,063
Depreciation and amortization 338 330 304
Total interest charges 158 116 104
Income Tax Expense 98 32 39
Net income (loss) available to common stockholders 315 378 302
Plant, property, and equipment, gross 12,383 11,443 10,601
Total assets 12,353 11,873 10,517
Capital expenditures 1,041 1,008 989
Gas Utility | Operating Segments | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 2,420 2,732 2,063
Depreciation and amortization 338 330 304
Total interest charges 161 116 104
Income Tax Expense 98 32 39
Net income (loss) available to common stockholders 315 378 302
Plant, property, and equipment, gross 12,383 11,443 10,601
Total assets 12,397 11,918 10,564
Capital expenditures 1,041 1,008 989
NorthStar Clean Energy | Operating Segments      
Segment Reporting Information [Line Items]      
Operating Revenue 297 445 308
Depreciation and amortization 43 38 37
Income from equity method investees 7 3 10
Total interest charges 2 3 6
Income Tax Expense 4 3 (2)
Net income (loss) available to common stockholders 67 34 23
Plant, property, and equipment, gross 1,420 1,148 1,122
Investments 76 71 71
Total assets 1,604 1,464 1,312
Capital expenditures $ 156 $ 113 $ 17
v3.24.0.1
Related party Transactions - Consumers (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Nov. 30, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Consumers Energy Company        
Related Party Transaction [Line Items]        
Purchased power – related parties   $ 75 $ 76 $ 77
Long-term purchase commitment, amount $ 20      
Consumers Energy Company | Related Party        
Related Party Transaction [Line Items]        
Due to related parties   19 20  
Accounts receivable related parties   9 $ 8  
Consumers Energy Company | Credit Agreement | Related Party        
Related Party Transaction [Line Items]        
Maximum borrowing capacity   $ 500    
CMS Energy Note Payable        
Related Party Transaction [Line Items]        
Interest rate   4.10%    
CMS Energy Note Payable | Consumers Energy Company        
Related Party Transaction [Line Items]        
Interest rate   4.10%    
v3.24.0.1
Variable Interest Entities (Narrative) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
MW
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Variable Interest Entity [Line Items]      
Investments | $ $ 76 $ 71 $ 71
Newport Solar Holdings      
Variable Interest Entity [Line Items]      
Sale of membership interest in VIE to tax equity investor | $ $ 86    
Nameplate capacity (in MW) | MW 180    
NWO Holdco, L.L.C      
Variable Interest Entity [Line Items]      
Nameplate capacity (in MW) | MW 100    
Variable Interest Entity, Primary Beneficiary | Aviator Wind      
Variable Interest Entity [Line Items]      
Nameplate capacity (in MW) | MW 525    
Ownership interest 51.00%    
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 | $ $ 74 $ 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%    
v3.24.0.1
Variable Interest Entities (Schedule of Variable Interest Entities) (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Variable Interest Entity [Line Items]      
Cash and cash equivalents $ 227 $ 164  
Prepayments and other current assets 80 113  
Plant, property, and equipment, net 25,072 22,713  
Construction work in progress 944 1,182  
Other non-current assets 357 310  
Total Assets 33,517 31,353 $ 28,753
Current portion of long-term debt 975 1,090  
Non-current portion of finance leases 62 68  
Asset retirement obligations 771 746  
Variable Interest Entity, Primary Beneficiary      
Variable Interest Entity [Line Items]      
Cash and cash equivalents 28 43  
Accounts receivable 3 7  
Prepayments and other current assets 4 7  
Plant, property, and equipment, net 1,064 850  
Construction work in progress 0 156  
Other non-current assets 3 0  
Total Assets 1,102 1,063  
Current portion of long-term debt 0 100  
Accounts payable 12 33  
Non-current portion of finance leases 23 23  
Asset retirement obligations 32 24  
Total liabilities $ 67 $ 180  
v3.24.0.1
Exit Activities and Discontinued Operations (Narrative) (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended 15 Months Ended 48 Months Ended
Oct. 01, 2021
Mar. 31, 2022
Oct. 31, 2021
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Sep. 30, 2023
Sep. 30, 2023
Restructuring Cost and Reserve [Line Items]                
Gain on sale       $ 0 $ 5 $ 657    
Discontinued Operations, Held-for-sale | EnerBank                
Restructuring Cost and Reserve [Line Items]                
Proceeds from divestiture of businesses $ 1,000              
Gain on sale     $ 657   5 $ 657    
Gain from divestiture of business related to post-closing adjustment   $ 6            
Retention Benefits                
Restructuring Cost and Reserve [Line Items]                
Cost deferred       $ 16 24      
Retention Benefits | D.E. Karn Generating Complex and J.H. Campbell Generating Units | Retention incentive program                
Restructuring Cost and Reserve [Line Items]                
Regulatory asset collection period       3 years        
Retention Benefits | D.E. Karn Generating Complex                
Restructuring Cost and Reserve [Line Items]                
Aggregate cost incurred         $ 32      
Retention and severance costs               $ 16
Retention Benefits | D.E. Karn Generating Complex | Retention incentive program                
Restructuring Cost and Reserve [Line Items]                
Cost deferred               12
Retention Benefits | D.E. Karn Generating Complex | Property, Plant and Equipment                
Restructuring Cost and Reserve [Line Items]                
Costs incurred and capitalized               $ 4
Retention Benefits | J.H. Campbell Generating Units                
Restructuring Cost and Reserve [Line Items]                
Expected cost       $ 50        
Retention Benefits | J.H. Campbell Generating Units | Retention incentive program                
Restructuring Cost and Reserve [Line Items]                
Cost deferred             $ 35  
v3.24.0.1
Exit Activities and Discontinued Operations (Schedule of Retention Benefit Liability Roll Forward) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Restructuring Reserve [Roll Forward]    
Other current liabilities $ 149 $ 166
Retention Benefits    
Restructuring Reserve [Roll Forward]    
Retention benefit liability at beginning of period 21 14
Costs deferred as a regulatory asset 16 24
Costs paid or settled (21) (17)
Retention benefit liability at the end of the period 16 21
Other current liabilities $ 7 $ 13
v3.24.0.1
Exit Activities and Discontinued Operations (Income from Discontinued Operations) (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Oct. 31, 2021
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Gain on sale   $ 0 $ 5 $ 657
Income tax expense   0 1 170
Income from discontinued operations, net of tax   $ 1 4 602
Discontinued Operations, Held-for-sale | EnerBank        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Operating revenue     0 209
Operating expenses     0 60
Interest expense     0 34
Income before income taxes     0 115
Gain on sale $ 657   5 657
Income from discontinued operations before income taxes     5 772
Income tax expense     1 170
Income from discontinued operations, net of tax     $ 4 $ 602
v3.24.0.1
Schedule I - Condensed Financial Information of Registrant (Condensed Statements of Income) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Operating Expenses      
Other operating expenses $ (1,687) $ (1,669) $ (1,610)
Total operating expenses (6,227) (7,372) (6,183)
Operating income 1,235 1,224 1,146
Other Income (Expense)      
Equity earnings of subsidiaries 7 3 10
Non-operating retirement benefits, net 180 205 165
Other income 195 19 30
Other expense (13) (27) (18)
Total other income 362 197 177
Interest Charges      
Interest on long-term debt 616 509 481
Total interest charges 643 519 500
Income Before Income Taxes 954 902 823
Income tax expense (benefit) 147 93 95
Income From Continuing Operations 807 809 728
Income from discontinued operations, net of tax 1 4 602
Net Income Attributable to CMS Energy 887 837 1,353
Preferred Stock Dividends 10 10 5
Net Income Available to Common Stockholders 877 827 1,348
Related Party      
Interest Charges      
Intercompany interest expense and other 12 12 12
CMS Energy      
Operating Expenses      
Other operating expenses 10 7 7
Total operating expenses 10 7 7
Operating income (10) (7) (7)
Other Income (Expense)      
Non-operating retirement benefits, net (1) (1) (1)
Other income 31 5 2
Other expense 0 (1) 0
Total other income 959 983 1,483
Interest Charges      
Interest on long-term debt 201 181 183
Total interest charges 211 189 190
Income Before Income Taxes 738 787 1,286
Income tax expense (benefit) (20) (50) (60)
Income From Continuing Operations 758 837 1,346
Income from discontinued operations, net of tax 0 0 7
Net Income Attributable to CMS Energy 758 837 1,353
Preferred Stock Dividends 10 10 5
Net Income Available to Common Stockholders 748 827 1,348
CMS Energy | Related Party      
Other Income (Expense)      
Equity earnings of subsidiaries 929 980 1,482
Interest Charges      
Intercompany interest expense and other $ 10 $ 8 $ 7
v3.24.0.1
Schedule 1 - Condensed Financial Information of Registrant (Condensed Statements of Income - Parenthetical) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Condensed Income Statements, Captions [Line Items]      
Tax effect of discontinued operations $ 0 $ 1 $ 170
CMS Energy      
Condensed Income Statements, Captions [Line Items]      
Tax effect of discontinued operations $ 0 $ 0 $ (5)
v3.24.0.1
Schedule I - Condensed Financial Information of Registrant (Condensed Statements Of Cash Flows) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash Flows from Operating Activities      
Net cash provided by operating activities $ 2,309 $ 855 $ 1,819
Cash Flows from Investing Activities      
Net cash used in investing activities (3,386) (2,476) (1,233)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 3,551 1,899 335
Issuance of common stock 192 69 26
Issuance of preferred stock, net of issuance costs 0 0 224
Retirement of long-term debt (2,132) (106) (235)
Change in notes payable – intercompany 73 20 0
Net cash provided by (used in) financing activities 1,143 1,327 (295)
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 66 (294) 291
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 182 476 185
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 248 182 476
CMS Energy      
Cash Flows from Operating Activities      
Net cash provided by operating activities 595 565 1,549
Cash Flows from Investing Activities      
Investment in subsidiaries (630) (796) (581)
Net cash used in investing activities (868) (510) (664)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 800 0 0
Issuance of common stock 192 69 26
Issuance of preferred stock, net of issuance costs 0 0 224
Retirement of long-term debt 0 0 (200)
Payment of dividends on common and preferred stock (579) (544) (507)
Debt issuance costs and financing fees (20) (11) (10)
Net cash provided by (used in) financing activities 386 (409) (495)
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 113 (354) 390
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 36 390 0
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 149 36 390
CMS Energy | Related Party      
Cash Flows from Investing Activities      
Investment in debt securities - intercompany 293 0 0
Decrease (increase) in notes receivable – intercompany (55) 286 (83)
Cash Flows from Financing Activities      
Change in notes payable – intercompany $ (7) $ 77 $ (28)
v3.24.0.1
Schedule I - Condensed Financial Information of Registrant (Condensed Balance Sheets) (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current Assets      
Cash and cash equivalents $ 227 $ 164  
Prepayments and other current assets 80 113  
Total current assets 2,839 3,433  
Other Non‑current Assets      
Investments in subsidiaries 76 71 $ 71
Other 357 310  
Total other non‑current assets 5,606 5,207  
Total Assets 33,517 31,353 $ 28,753
Current Liabilities      
Current portion of long-term debt 975 1,090  
Accrued interest, including intercompany 142 122  
Accrued taxes 612 538  
Other current liabilities 149 166  
Total current liabilities 2,895 2,985  
Non‑current Liabilities      
Long-term debt 14,508 13,122  
Postretirement benefits 106 108  
Other non‑current liabilities 415 397  
Total non‑current liabilities 22,497 20,773  
Equity      
Common stock 3 3  
Total common stockholders’ equity 7,320 6,791  
Preferred stock 224 224  
Total stockholders’ equity 7,544 7,015  
Total Liabilities and Equity 33,517 31,353  
CMS Energy      
Current Assets      
Cash and cash equivalents 149 36  
Taxes receivable 11 45  
Prepayments and other current assets 0 1  
Total current assets 229 197  
Other Non‑current Assets      
Deferred income taxes 137 105  
Other investments 8 6  
Other 24 11  
Total other non‑current assets 12,166 11,003  
Total Assets 12,395 11,200  
Current Liabilities      
Current portion of long-term debt 250 0  
Accrued interest, including intercompany 37 33  
Other current liabilities 9 9  
Total current liabilities 371 116  
Non‑current Liabilities      
Long-term debt 4,471 3,930  
Notes payable – intercompany 105 109  
Postretirement benefits 15 15  
Other non‑current liabilities 18 15  
Total non‑current liabilities 4,609 4,069  
Equity      
Common stock 3 3  
Other stockholders' equity 7,188 6,788  
Total common stockholders’ equity 7,191 6,791  
Preferred stock 224 224  
Total stockholders’ equity 7,415 7,015  
Total Liabilities and Equity 12,395 11,200  
CMS Energy | Intercompany      
Current Assets      
Notes and accrued interest receivable – intercompany 60 107  
Other Non‑current Assets      
Investments in subsidiaries 11,701 10,881  
Investment in debt securities – intercompany 296 0  
Current Liabilities      
Accounts and notes payable – intercompany 75 74  
CMS Energy | Intercompany and related parties      
Current Assets      
Accounts receivable – intercompany and related parties $ 9 $ 8  
v3.24.0.1
Schedule I - Condensed Financial Information of Registrant (Narrative) (Details)
$ in Millions
Dec. 31, 2023
USD ($)
CMS Energy  
Condensed Financial Statements, Captions [Line Items]  
Maximum potential obligation $ 886
v3.24.0.1
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Allowance for uncollectible accounts      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 27 $ 20 $ 29
Charged to Expense 34 50 22
Charged to Other Accounts 0 0 0
Deductions 40 43 31
Balance at End of Period 21 27 20
Allowance for uncollectible accounts | Consumers Energy Company      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 27 20 29
Charged to Expense 34 50 22
Charged to Other Accounts 0 0 0
Deductions 40 43 31
Balance at End of Period 21 27 20
Deferred tax valuation allowance      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 2 2 1
Charged to Expense 0 0 1
Charged to Other Accounts 0 0 0
Deductions 0 0 0
Balance at End of Period $ 2 $ 2 $ 2