CMS ENERGY CORP, 10-K filed on 2/10/2022
Annual Report
v3.22.0.1
Cover Page - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Jan. 14, 2022
Jun. 30, 2021
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
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    
Entity Shell Company false    
Entity Public Float     $ 17,113
Entity Common Stock, Shares Outstanding   289,760,265  
Entity Central Index Key 0000811156    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Amendment Flag false    
Documents Incorporated by Reference CMS Energy’s and Consumers’ proxy statement relating to their 2022 Annual Meetings of Shareholders to be held May 6, 2022.    
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    
Entity Shell Company false    
Entity Common Stock, Shares Outstanding   84,108,789  
Entity Central Index Key 0000201533    
CMS Energy Corporation Common Stock, $0.01 par value      
Document Information [Line Items]      
Title of 12(b) Security CMS Energy Corporation Common Stock    
Trading Symbol CMS    
Security Exchange Name NYSE    
CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078      
Document Information [Line Items]      
Title of 12(b) Security CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078    
Trading Symbol CMSA    
Security Exchange Name NYSE    
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078      
Document Information [Line Items]      
Title of 12(b) Security CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078    
Trading Symbol CMSC    
Security Exchange Name NYSE    
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079      
Document Information [Line Items]      
Title of 12(b) Security CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079    
Trading Symbol CMSD    
Security Exchange Name NYSE    
CMS Energy Corporation Depositary Shares, each representing a 1/1,000th interest in a share of 4.200% Cumulative Redeemable Perpetual Preferred Stock, Series C      
Document Information [Line Items]      
Title of 12(b) Security CMS Energy Corporation Depositary Shares    
Trading Symbol CMS PRC    
Security Exchange Name NYSE    
Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series      
Document Information [Line Items]      
Title of 12(b) Security Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series    
Trading Symbol CMS-PB    
Security Exchange Name NYSE    
v3.22.0.1
Audit Information
 12 Months Ended
Dec. 31, 2021
Document Information [Line Items]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Detroit, Michigan
Consumers Energy Company  
Document Information [Line Items]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Detroit, Michigan
v3.22.0.1
CMS Energy Corporation Consolidated Statements of Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Operating Revenue $ 7,329 $ 6,418 $ 6,624
Operating Expenses      
Fuel for electric generation 593 375 493
Purchased power – related parties 77 64 75
Maintenance and other operating expenses 1,610 1,280 1,356
Depreciation and amortization 1,114 1,043 989
General taxes 389 357 331
Total operating expenses 6,183 5,188 5,509
Operating Loss 1,146 1,230 1,115
Other Income (Expense)      
Interest income 3 4 7
Interest income – related parties 0 7 0
Allowance for equity funds used during construction 8 6 10
Income from equity method investees 10 5 10
Non-operating retirement benefits, net 165 118 91
Other income 9 6 4
Other expense (18) (62) (13)
Total other income 177 84 109
Interest Charges      
Interest on long-term debt 481 483 439
Interest expense – related parties 12 12 9
Other interest expense 10 12 16
Allowance for borrowed funds used during construction (3) (2) (4)
Total interest charges 500 505 460
Income Before Income Taxes 823 809 764
Income Tax Expense 95 115 131
Income From Continuing Operations 728 694 633
Income From Discontinued Operations, Net of Tax of $170, $18, and $16 602 58 49
Net Income 1,330 752 682
Income (Loss) Attributable to Noncontrolling Interests (23) (3) 2
Net Income Attributable to CMS Energy 1,353 755 680
Preferred Stock Dividends 5 0 0
Net Income Available to Common Stockholders $ 1,348 $ 755 $ 680
Basic earnings per average common share, income from continuing operations per average common share available to common stockholders (in dollars per share) $ 2.58 $ 2.45 $ 2.23
Basic earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) 2.08 0.20 0.17
Basic earnings per average common share (in dollars per share) 4.66 2.65 2.40
Diluted earnings per average common share, income from continuing operations per average common share available to common stockholders (in dollars per share) 2.58 2.44 2.22
Diluted earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) 2.08 0.20 0.17
Diluted earnings per average common share (in dollars per share) $ 4.66 $ 2.64 $ 2.39
Purchased and interchange power      
Operating Expenses      
Cost of goods and services sold $ 1,665 $ 1,492 $ 1,496
Cost of gas sold      
Operating Expenses      
Cost of goods and services sold $ 735 $ 577 $ 769
v3.22.0.1
CMS Energy Corporation Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Net Income $ 1,330 $ 752 $ 682
Retirement Benefits Liability      
Net loss arising during the period, net of tax 19 (15) (7)
Settlement arising during the period, net of tax 1 1 0
Prior service credit adjustment 0 (1) 0
Amortization of net actuarial loss, net of tax 5 5 3
Amortization of prior service credit (1) (1) (2)
Derivatives      
Unrealized loss on derivative instruments, net of tax 2 (4) (3)
Reclassification adjustments included in net income, net of tax 1 2 1
Other Comprehensive Income (Loss) 27 (13) (8)
Comprehensive Income 1,357 739 674
Comprehensive Income (Loss) Attributable to Noncontrolling Interests (23) (3) 2
Comprehensive Income Attributable to CMS Energy $ 1,380 $ 742 $ 672
v3.22.0.1
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Net gain (loss) arising during the period, tax $ 6 $ (4) $ (3)
Settlement arising during the period, tax 0 0 0
Prior service credit adjustment, tax 0 0 0
Amortization of net actuarial loss, tax 2 1 1
Amortization of prior service credit, tax 0 0 0
Unrealized gain (loss) on derivative instruments, tax 0 (2) (1)
Reclassification adjustments included in net income , tax $ 1 $ 0 $ 0
v3.22.0.1
CMS Energy Corporation Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash Flows from Operating Activities      
Net Income $ 1,330 $ 752 $ 682
Adjustments to reconcile net income to net cash provided by operating activities      
Depreciation and amortization 1,114 1,043 989
Deferred income taxes and investment tax credits 249 170 150
Bad debt expense 22 30 30
Postretirement benefits contributions (12) (712) (10)
Other non‑cash operating activities and reconciling adjustments (70) (15) (55)
Net cash provided by (used in) discontinued operations (111) 33 39
Changes in assets and liabilities      
Accounts receivable and accrued revenue (103) (5) 48
Inventories (93) 28 44
Accounts payable and accrued rate refunds 153 56 (71)
Other current assets and liabilities 13 (68) (93)
Other non‑current assets and liabilities (16) (36) 37
Net cash provided by operating activities 1,819 1,276 1,790
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) (2,076) (2,311) (2,097)
Net proceeds from sale of EnerBank 898 0 0
Proceeds from sale of transmission equipment 0 58 97
Net cash provided by (used in) discontinued operations 78 (485) (689)
Cost to retire property and other investing activities (133) (129) (127)
Net cash used in investing activities (1,233) (2,867) (2,816)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 335 3,179 2,151
Retirement of debt (235) (2,010) (1,285)
Decrease in notes payable 0 (90) (7)
Issuance of common stock, net of issuance costs 26 253 12
Issuance of preferred stock, net of issuance costs 224 0 0
Payment of dividends on common and preferred stock (509) (467) (436)
Debt prepayment costs 0 (59) (8)
Proceeds from the sale of membership interest in VIE to tax equity investor 0 417 0
Contribution from noncontrolling interest 1 31 0
Net cash provided by (used in) discontinued operations (84) 416 631
Other financing costs (53) (51) (50)
Net cash provided by (used in) financing activities (295) 1,619 1,008
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 291 28 (18)
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 185 157 175
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 476 185 157
Cash transactions      
Interest paid (net of amounts capitalized) 489 549 498
Income taxes paid (refunds received), net 16 (58) (58)
Non‑cash transactions      
Capital expenditures not paid 196 141 170
Discontinued Operations | EnerBank      
Adjustments to reconcile net income to net cash provided by operating activities      
Gain from sale of EnerBank $ (657) $ 0 $ 0
v3.22.0.1
CMS Energy Corporation Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Current Assets    
Cash and cash equivalents $ 452 $ 32
Restricted cash and cash equivalents 24 17
Accounts receivable and accrued revenue 931 853
Accounts receivable – related parties 12 19
Inventories at average cost    
Gas in underground storage 462 353
Materials and supplies 168 155
Generating plant fuel stock 37 68
Deferred property taxes 356 332
Regulatory assets 46 42
Assets held for sale 19 429
Prepayments and other current assets 120 104
Total current assets 2,627 2,404
Plant, Property, and Equipment    
Plant, property, and equipment, gross 29,893 27,870
Less accumulated depreciation and amortization 8,502 7,938
Plant, property, and equipment, net 21,391 19,932
Construction work in progress 961 1,085
Total plant, property, and equipment 22,352 21,017
Other Non‑current Assets    
Regulatory assets 2,259 2,653
Accounts receivable 30 19
Investments 71 70
Assets held for sale 0 2,680
Other 1,414 823
Total other non‑current assets 3,774 6,245
Total Assets 28,753 29,666
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 382 591
Accounts payable 875 661
Accounts payable – related parties 11 7
Accrued rate refunds 12 20
Accrued interest 107 104
Accrued taxes 515 454
Regulatory liabilities 146 151
Liabilities held for sale 0 953
Other current liabilities 156 133
Total current liabilities 2,204 3,074
Non‑current Liabilities    
Long-term debt 12,046 11,744
Non-current portion of finance leases and other financing 46 56
Regulatory liabilities 3,802 3,744
Postretirement benefits 142 152
Asset retirement obligations 628 553
Deferred investment tax credit 112 115
Deferred income taxes 2,210 1,863
Liabilities held for sale 0 1,894
Other non‑current liabilities 375 394
Total non‑current liabilities 19,361 20,515
Commitments and Contingencies
Common stockholders’ equity    
Common stock 3 3
Other paid-in capital 5,406 5,365
Accumulated other comprehensive loss (59) (86)
Retained earnings 1,057 214
Total common stockholders’ equity 6,407 5,496
Cumulative preferred stock 224 0
Total stockholders’ equity 6,631 5,496
Noncontrolling interests 557 581
Total equity 7,188 6,077
Total Liabilities and Equity $ 28,753 $ 29,666
v3.22.0.1
CMS Energy Corporation Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Accounts receivable and accrued revenue, allowance $ 20 $ 29
Common stock authorized (in shares) 350,000,000 350,000,000.0
Common stock outstanding (in shares) 289,800,000 288,900,000
Preferred stock authorized (in shares) 10,000,000  
Series C Preferred Stock Depositary Shares    
Preferred stock outstanding (in shares) 9,200,000  
Preferred stock authorized (in shares) 9,200,000  
v3.22.0.1
CMS Energy Corporation Consolidated Statements of Changes in Equity - USD ($)
$ in Millions
Total
Common Stock
Other Paid-in Capital
Accumulated Other Comprehensive Loss
Retirement benefits liability
Derivative instruments
Retained Earnings (Accumulated Deficit)
Retained Earnings (Accumulated Deficit)
Cumulative Effect, Period of Adoption, Adjustment
Cumulative Preferred Stock
Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Common stock outstanding (in shares)   283,374,000                
Total Equity at Beginning of Period at Dec. 31, 2018 $ 4,792 $ 3 $ 5,088 $ (65) $ (63) $ (2) $ (271) $ 0 $ 0 $ 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Common stock issued (in shares)   710,000                
Common stock issued     35           0  
Common stock repurchased (in shares)   (181,000)                
Common stock repurchased     (10)              
Common stock reissued (in shares)   8,000                
Common stock reissued     0              
Common stock reacquired (in shares)   (47,000)                
Common stock reacquired     0              
Net gain (loss) arising during the period (7)       (7)          
Settlement arising during the period 0       0          
Prior service credit adjustment 0       0          
Amortization of net actuarial loss 3       3          
Amortization of prior service credit (2)       (2)          
Unrealized gain (loss) on derivative instruments (3)         (3)        
Reclassification adjustments included in net income 1         1        
Net Income 682           680     2
Dividends declared on common stock             (434)      
Dividends declared on preferred stock             0      
Preferred stock issued, net of issuance costs     35           0  
Impact of purchase and consolidation of VIE                   0
Sale of membership interest in VIE to tax equity investor                   0
Contribution from noncontrolling interest                   0
Distributions and other changes in noncontrolling interests                   (2)
Total Equity at End of Period at Dec. 31, 2019 $ 5,055 $ 3 5,113 (73) (69) (4) (25) (51) 0 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Dividends declared per common share (in dollars per share) $ 1.5300                  
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0                  
Common stock outstanding (in shares)   283,864,000                
Common stock issued (in shares)   5,609,000                
Common stock issued     265           0  
Common stock repurchased (in shares)   (216,000)                
Common stock repurchased     (13)              
Common stock reissued (in shares)   12,000                
Common stock reissued     1              
Common stock reacquired (in shares)   (329,000)                
Common stock reacquired     (1)              
Net gain (loss) arising during the period $ (15)       (15)          
Settlement arising during the period 1       1          
Prior service credit adjustment (1)       (1)          
Amortization of net actuarial loss 5       5          
Amortization of prior service credit (1)       (1)          
Unrealized gain (loss) on derivative instruments (4)         (4)        
Reclassification adjustments included in net income 2         2        
Net Income 752           755     (3)
Dividends declared on common stock             (465)      
Dividends declared on preferred stock             0      
Preferred stock issued, net of issuance costs     265           0  
Impact of purchase and consolidation of VIE                   101
Sale of membership interest in VIE to tax equity investor                   417
Contribution from noncontrolling interest                   31
Distributions and other changes in noncontrolling interests                   (2)
Total Equity at End of Period at Dec. 31, 2020 $ 6,077 $ 3 5,365 (86) (80) (6) 214 $ 0 0 581
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Dividends declared per common share (in dollars per share) $ 1.6300                  
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0                  
Common stock outstanding (in shares) 288,900,000 288,940,000                
Common stock issued (in shares)   997,000                
Common stock issued     50           224  
Common stock repurchased (in shares)   (157,000)                
Common stock repurchased     (9)              
Common stock reissued (in shares)   0                
Common stock reissued     0              
Common stock reacquired (in shares)   (22,000)                
Common stock reacquired     0              
Net gain (loss) arising during the period $ 19       19          
Settlement arising during the period 1       1          
Prior service credit adjustment 0       0          
Amortization of net actuarial loss 5       5          
Amortization of prior service credit (1)       (1)          
Unrealized gain (loss) 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)      
Preferred stock issued, net of issuance costs     50           224  
Impact of purchase and consolidation of VIE                   0
Sale of membership interest in VIE to tax equity investor                   0
Contribution from noncontrolling interest                   1
Distributions and other changes in noncontrolling interests                   (2)
Total Equity at End of Period at Dec. 31, 2021 $ 7,188 $ 3 $ 5,406 $ (59) $ (56) $ (3) $ 1,057   $ 224 $ 557
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 outstanding (in shares) 289,800,000 289,758,000                
v3.22.0.1
Consumers Energy Company Consolidated Statements of Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Operating Revenue $ 7,329 $ 6,418 $ 6,624
Operating Expenses      
Operating Income 1,146 1,230 1,115
Other Income (Expense)      
Interest income 3 4 7
Interest income – related parties 0 7 0
Allowance for equity funds used during construction 8 6 10
Non-operating retirement benefits, net 165 118 91
Other income 9 6 4
Other expense (18) (62) (13)
Total other income 177 84 109
Interest Charges      
Interest on long-term debt 481 483 439
Interest expense – related parties 12 12 9
Other interest expense 10 12 16
Allowance for borrowed funds used during construction (3) (2) (4)
Total interest charges 500 505 460
Income Before Income Taxes 823 809 764
Income Tax Expense 95 115 131
Net Income Attributable to CMS Energy 1,353 755 680
Preferred Stock Dividends 5 0 0
Net Income Available to Common Stockholders 1,348 755 680
Consumers Energy Company      
Operating Revenue 7,021 6,189 6,376
Operating Expenses      
Fuel for electric generation 463 286 375
Purchased and interchange power 1,599 1,454 1,470
Purchased power – related parties 77 64 75
Cost of gas sold 726 568 754
Maintenance and other operating expenses 1,531 1,224 1,275
Depreciation and amortization 1,077 1,023 975
General taxes 373 349 322
Total operating expenses 5,846 4,968 5,246
Operating Income 1,175 1,221 1,130
Other Income (Expense)      
Interest income 2 3 5
Interest income – related parties 5 5 5
Allowance for equity funds used during construction 8 6 10
Non-operating retirement benefits, net 155 112 85
Other income 8 5 3
Other expense (18) (43) (13)
Total other income 160 88 95
Interest Charges      
Interest on long-term debt 294 299 277
Interest expense – related parties 12 12 9
Other interest expense 8 11 15
Allowance for borrowed funds used during construction (3) (2) (4)
Total interest charges 311 320 297
Income Before Income Taxes 1,024 989 928
Income Tax Expense 156 173 185
Net Income Attributable to CMS Energy 868 816 743
Preferred Stock Dividends 2 2 2
Net Income Available to Common Stockholders $ 866 $ 814 $ 741
v3.22.0.1
Consumers Energy Company Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Net Income $ 1,330 $ 752 $ 682
Retirement Benefits Liability      
Net loss arising during the period, net of tax 19 (15) (7)
Amortization of net actuarial loss, net of tax 5 5 3
Other Comprehensive Income (Loss) 27 (13) (8)
Comprehensive Income 1,357 739 674
Consumers Energy Company      
Net Income 868 816 743
Retirement Benefits Liability      
Net loss arising during the period, net of tax 2 (9) (8)
Amortization of net actuarial loss, net of tax 2 1 1
Other Comprehensive Income (Loss) 4 (8) (7)
Comprehensive Income $ 872 $ 808 $ 736
v3.22.0.1
Consumers Energy Company Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Net gain (loss) arising during the period, tax $ 6 $ (4) $ (3)
Amortization of net actuarial loss, tax 2 1 1
Consumers Energy Company      
Net gain (loss) arising during the period, tax 1 (3) (3)
Amortization of net actuarial loss, tax $ 1 $ 1 $ 0
v3.22.0.1
Consumers Energy Company Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash Flows from Operating Activities      
Net Income $ 1,330 $ 752 $ 682
Adjustments to reconcile net income to net cash provided by operating activities      
Deferred income taxes and investment tax credits 249 170 150
Bad debt expense 22 30 30
Postretirement benefits contributions (12) (712) (10)
Other non‑cash operating activities and reconciling adjustments (70) (15) (55)
Changes in assets and liabilities      
Accounts receivable and accrued revenue (103) (5) 48
Inventories (93) 28 44
Accounts payable and accrued rate refunds 153 56 (71)
Other current assets and liabilities 13 (68) (93)
Other non‑current assets and liabilities (16) (36) 37
Net cash provided by operating activities 1,819 1,276 1,790
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) (2,076) (2,311) (2,097)
Proceeds from sale of transmission equipment 0 58 97
Cost to retire property and other investing activities (133) (129) (127)
Net cash used in investing activities (1,233) (2,867) (2,816)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 335 3,179 2,151
Retirement of debt (235) (2,010) (1,285)
Decrease in notes payable 0 (90) (7)
Payment of dividends on common and preferred stock (509) (467) (436)
Debt prepayment costs 0 (59) (8)
Other financing costs (53) (51) (50)
Net cash provided by (used in) financing activities (295) 1,619 1,008
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 291 28 (18)
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 185 157 175
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 476 185 157
Cash transactions      
Interest paid (net of amounts capitalized) 489 549 498
Income taxes paid (refunds received), net 16 (58) (58)
Non‑cash transactions      
Capital expenditures not paid 196 141 170
Consumers Energy Company      
Cash Flows from Operating Activities      
Net Income 868 816 743
Adjustments to reconcile net income to net cash provided by operating activities      
Depreciation and amortization 1,077 1,023 975
Deferred income taxes and investment tax credits 154 177 37
Bad debt expense 22 33 29
Postretirement benefits contributions (9) (690) (7)
Other non‑cash operating activities and reconciling adjustments (64) (30) (32)
Changes in assets and liabilities      
Accounts receivable and accrued revenue (103) (46) 8
Inventories (90) 26 40
Accounts payable and accrued rate refunds 140 45 (63)
Other current assets and liabilities 27 (78) (136)
Other non‑current assets and liabilities (40) (58) 7
Net cash provided by operating activities 1,982 1,218 1,601
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) (2,052) (2,170) (2,085)
DB SERP investment in note receivable – related party 0 (5) 0
Proceeds from sale of transmission equipment 0 58 77
Cost to retire property and other investing activities (133) (129) (129)
Net cash used in investing activities (2,185) (2,246) (2,137)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 335 1,954 993
Retirement of debt (27) (1,086) (541)
Decrease in notes payable 0 (90) (7)
Increase in notes payable – related parties 85 307 0
Stockholder contribution 575 650 675
Payment of dividends on common and preferred stock (724) (639) (594)
Debt prepayment costs 0 (43) (8)
Other financing costs (32) (18) (10)
Net cash provided by (used in) financing activities 212 1,035 508
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 9 7 (28)
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 35 28 56
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 44 35 28
Cash transactions      
Interest paid (net of amounts capitalized) 298 305 279
Income taxes paid (refunds received), net (10) 51 132
Non‑cash transactions      
Capital expenditures not paid $ 192 $ 130 $ 160
v3.22.0.1
Consumers Energy Company Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Current Assets    
Cash and cash equivalents $ 452 $ 32
Restricted cash and cash equivalents 24 17
Accounts receivable and accrued revenue 931 853
Assets held for sale 19 429
Accounts receivable – related parties 12 19
Inventories at average cost    
Gas in underground storage 462 353
Materials and supplies 168 155
Generating plant fuel stock 37 68
Deferred property taxes 356 332
Regulatory assets 46 42
Prepayments and other current assets 120 104
Total current assets 2,627 2,404
Other Non‑current Assets    
Regulatory assets 2,259 2,653
Accounts receivable 30 19
Other 1,414 823
Total other non‑current assets 3,774 6,245
Total Assets 28,753 29,666
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 382 591
Accounts payable 875 661
Accounts payable – related parties 11 7
Accrued rate refunds 12 20
Accrued interest 107 104
Accrued taxes 515 454
Regulatory liabilities 146 151
Other current liabilities 156 133
Total current liabilities 2,204 3,074
Non‑current Liabilities    
Long-term debt 12,046 11,744
Non-current portion of finance leases and other financing 46 56
Regulatory liabilities 3,802 3,744
Postretirement benefits 142 152
Asset retirement obligations 628 553
Deferred investment tax credit 112 115
Deferred income taxes 2,210 1,863
Other non‑current liabilities 375 394
Total non‑current liabilities 19,361 20,515
Commitments and Contingencies
Common stockholders’ equity    
Common stock 3 3
Other paid-in capital 5,406 5,365
Accumulated other comprehensive loss (59) (86)
Retained earnings 1,057 214
Total common stockholders’ equity 6,407 5,496
Cumulative preferred stock 224 0
Total stockholders’ equity 6,631 5,496
Total Liabilities and Equity 28,753 29,666
Consumers Energy Company    
Current Assets    
Cash and cash equivalents 22 20
Restricted cash and cash equivalents 22 15
Accounts receivable and accrued revenue 905 828
Assets held for sale 19 0
Accounts receivable – related parties 9 18
Inventories at average cost    
Gas in underground storage 462 353
Materials and supplies 163 149
Generating plant fuel stock 33 67
Deferred property taxes 356 332
Regulatory assets 46 42
Prepayments and other current assets 84 68
Total current assets 2,121 1,892
Plant, Property, and Equipment    
Plant, property, and equipment, gross 28,771 26,757
Less accumulated depreciation and amortization 8,371 7,844
Plant, property, and equipment, net 20,400 18,913
Construction work in progress 915 1,058
Total plant, property, and equipment 21,315 19,971
Other Non‑current Assets    
Regulatory assets 2,259 2,653
Accounts receivable 36 25
Accounts and notes receivable – related parties 102 105
Other 1,307 753
Total other non‑current assets 3,704 3,536
Total Assets 27,140 25,399
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 374 384
Notes payable – related parties 392 307
Accounts payable 835 636
Accounts payable – related parties 16 7
Accrued rate refunds 12 20
Accrued interest 75 72
Accrued taxes 529 458
Regulatory liabilities 146 151
Other current liabilities 109 104
Total current liabilities 2,488 2,139
Non‑current Liabilities    
Long-term debt 8,050 7,742
Non-current portion of finance leases and other financing 46 56
Regulatory liabilities 3,802 3,744
Postretirement benefits 104 112
Asset retirement obligations 605 530
Deferred investment tax credit 112 115
Deferred income taxes 2,340 2,094
Other non‑current liabilities 314 311
Total non‑current liabilities 15,373 14,704
Commitments and Contingencies
Common stockholders’ equity    
Common stock 841 841
Other paid-in capital 6,599 6,024
Accumulated other comprehensive loss (32) (36)
Retained earnings 1,834 1,690
Total common stockholders’ equity 9,242 8,519
Cumulative preferred stock 37 37
Total stockholders’ equity 9,279 8,556
Total Liabilities and Equity $ 27,140 $ 25,399
v3.22.0.1
Consumers Energy Company Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Accounts receivable and accrued revenue, allowance $ 20 $ 29
Common stock authorized (in shares) 350,000,000 350,000,000.0
Common stock outstanding (in shares) 289,800,000 288,900,000
Preferred stock authorized (in shares) 10,000,000  
Consumers Energy Company    
Accounts receivable and accrued revenue, allowance $ 20 $ 29
Common stock authorized (in shares) 125,000,000.0 125,000,000.0
Common stock outstanding (in shares) 84,100,000 84,100,000
Preferred stock authorized (in shares) 7,500,000 7,500,000
Preferred stock outstanding (in shares) 400,000 400,000
v3.22.0.1
Consumers Energy Company Consolidated Statements of Changes in Equity - USD ($)
$ in Millions
Total
Common Stock
Other Paid-in Capital
Accumulated Other Comprehensive Loss
Retirement benefits liability
Retained Earnings (Accumulated Deficit)
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 (Accumulated Deficit)
Consumers Energy Company
Cumulative Preferred Stock
Total Equity at Beginning of Period at Dec. 31, 2018 $ 4,792 $ 3 $ 5,088 $ (65) $ (63) $ (271) $ 0 $ 6,920 $ 841 $ 4,699 $ (21) $ (21) $ 1,364 $ 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   675        
Net gain (loss) arising during the period (7)       (7)     (8)       (8)    
Amortization of net actuarial loss 3       3     1       1    
Net Income 682         680   743         743  
Dividends declared on common stock           (434)             (592)  
Dividends declared on preferred stock           0             (2)  
Total Equity at End of Period at Dec. 31, 2019 5,055 3 5,113 (73) (69) (25) 0 7,737 841 5,374 (28) (28) 1,513 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   650        
Net gain (loss) arising during the period (15)       (15)     (9)       (9)    
Amortization of net actuarial loss 5       5     1       1    
Net Income 752         755   816         816  
Dividends declared on common stock           (465)             (637)  
Dividends declared on preferred stock           0             (2)  
Total Equity at End of Period at Dec. 31, 2020 6,077 3 5,365 (86) (80) 214 0 8,556 841 6,024 (36) (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 1,330         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
v3.22.0.1
CMS Energy Corporation Consolidated Statements of Income (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Statement [Abstract]      
Tax effect of discontinued operations $ 170 $ 18 $ 16
v3.22.0.1
Significant Accounting Policies
 12 Months Ended
Dec. 31, 2021
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, CMS Enterprises, 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.
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. 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 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.
Additionally, CMS Energy uses interest rate swaps to manage its interest rate risk on certain long-term debt transactions.
CMS Energy and Consumers record derivative contracts that do not qualify for the normal purchases and sales exception at fair value on their consolidated balance sheets. At CMS Energy, if the derivative is accounted for as a cash flow hedge, unrealized gains and losses from changes in the fair value of the derivative are recognized in AOCI and subsequently recognized in earnings when the hedged transactions impact earnings. If the derivative is accounted for as a fair value hedge, changes in the fair value of the derivative and changes in the fair value of the hedged item due to the hedged risk are recognized in earnings. For the FTRs at Consumers, changes in fair value 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 and forward equity sales. CMS Energy computes the effect on potential common stock using the treasury stock method. 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: Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment. CMS Energy’s non‑regulated businesses use the deferral method of accounting for investment tax credits. Under the deferral method, the book basis of the associated assets is reduced by the amount of the credit, resulting in lower depreciation expense over the life of the assets. Furthermore, the tax basis of the assets is reduced by 50 percent of the related credit, resulting in a net deferred tax asset. CMS Energy recognizes the tax benefit of this basis difference as a reduction to income tax expense in the year in which the plant reaches commercial operation.
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 Consumers’ real and personal property assessed by local taxing authorities. Consumers records 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 Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
Reclassifications: CMS Energy and Consumers have reclassified certain prior period amounts to conform to the presentation in the present period. The most significant of these reclassifications is related to CMS Energy’s sale of EnerBank to Regions Bank in October 2021. The assets and liabilities of EnerBank are presented as held for sale on CMS Energy’s consolidated balance sheets at December 31, 2020. Additionally, 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 years ended December 31, 2021, 2020, and 2019. For information regarding the sale of EnerBank, see Note 20, Exit Activities and Discontinued Operations.
Renewable Energy Grant: In 2013, Consumers received a renewable energy cash grant for Lake Winds® Energy Park under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Upon receipt of the grant, Consumers recorded a regulatory liability, which Consumers is amortizing 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. Consumers recorded the deferred income taxes related to the grant as a reduction of the book basis of Lake Winds® Energy Park.
Other: For additional accounting policies, see:
•Note 7, Plant, Property, and Equipment
•Note 8, Leases and Palisades Financing
•Note 9, Asset Retirement Obligations
•Note 10, Retirement Benefits
•Note 12, Income Taxes
•Note 13, Earnings Per Share—CMS Energy
•Note 14, Revenue
•Note 16, Cash and Cash Equivalents
•Note 19, Variable Interest Entities
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, CMS Enterprises, 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.
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. 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 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.
Additionally, CMS Energy uses interest rate swaps to manage its interest rate risk on certain long-term debt transactions.
CMS Energy and Consumers record derivative contracts that do not qualify for the normal purchases and sales exception at fair value on their consolidated balance sheets. At CMS Energy, if the derivative is accounted for as a cash flow hedge, unrealized gains and losses from changes in the fair value of the derivative are recognized in AOCI and subsequently recognized in earnings when the hedged transactions impact earnings. If the derivative is accounted for as a fair value hedge, changes in the fair value of the derivative and changes in the fair value of the hedged item due to the hedged risk are recognized in earnings. For the FTRs at Consumers, changes in fair value 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 and forward equity sales. CMS Energy computes the effect on potential common stock using the treasury stock method. 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: Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment. CMS Energy’s non‑regulated businesses use the deferral method of accounting for investment tax credits. Under the deferral method, the book basis of the associated assets is reduced by the amount of the credit, resulting in lower depreciation expense over the life of the assets. Furthermore, the tax basis of the assets is reduced by 50 percent of the related credit, resulting in a net deferred tax asset. CMS Energy recognizes the tax benefit of this basis difference as a reduction to income tax expense in the year in which the plant reaches commercial operation.
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 Consumers’ real and personal property assessed by local taxing authorities. Consumers records 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 Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
Reclassifications: CMS Energy and Consumers have reclassified certain prior period amounts to conform to the presentation in the present period. The most significant of these reclassifications is related to CMS Energy’s sale of EnerBank to Regions Bank in October 2021. The assets and liabilities of EnerBank are presented as held for sale on CMS Energy’s consolidated balance sheets at December 31, 2020. Additionally, 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 years ended December 31, 2021, 2020, and 2019. For information regarding the sale of EnerBank, see Note 20, Exit Activities and Discontinued Operations.
Renewable Energy Grant: In 2013, Consumers received a renewable energy cash grant for Lake Winds® Energy Park under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Upon receipt of the grant, Consumers recorded a regulatory liability, which Consumers is amortizing 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. Consumers recorded the deferred income taxes related to the grant as a reduction of the book basis of Lake Winds® Energy Park.
Other: For additional accounting policies, see:
•Note 7, Plant, Property, and Equipment
•Note 8, Leases and Palisades Financing
•Note 9, Asset Retirement Obligations
•Note 10, Retirement Benefits
•Note 12, Income Taxes
•Note 13, Earnings Per Share—CMS Energy
•Note 14, Revenue
•Note 16, Cash and Cash Equivalents
•Note 19, Variable Interest Entities
v3.22.0.1
Regulatory Matters
 12 Months Ended
Dec. 31, 2021
Public Utilities, General Disclosures [Line Items]  
Regulatory Matters Regulatory Matters
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings.
There are multiple appeals pending that involve various issues concerning cost recovery from customers, the MPSC’s authority to approve voluntary revenue refunds, and other matters. Consumers is unable to predict the outcome of these appeals.
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 31End of Recovery or Refund Period20212020
Regulatory assets
Current
Energy waste reduction plan incentive1
2022$42 $34 
Deferred capital spending2
2021— 6 
Other20224 2 
Total current regulatory assets$46 $42 
Non-current
Postretirement benefits3
various$837 $1,231 
Costs of coal-fueled electric generating units to be retired2
various678 678 
ARO4
various247 216 
Securitized costs2
2029193 221 
MGP sites4
various112 120 
Unamortized loss on reacquired debt4
various104 108 
Energy waste reduction plan incentive1
202346 42 
Energy waste reduction plan4
various13 16 
Demand response program4
various10 10 
Othervarious19 11 
Total non-current regulatory assets$2,259 $2,653 
Total regulatory assets$2,305 $2,695 
Regulatory liabilities
Current
Income taxes, net2022$138 $105 
Reserve for customer refunds20222 28 
Voluntary transmission asset sale gain share2021— 14 
Other20226 4 
Total current regulatory liabilities$146 $151 
Non-current
Cost of removalvarious$2,375 $2,245 
Income taxes, netvarious1,297 1,419 
Postretirement benefitsvarious54 — 
Renewable energy grant204347 49 
Renewable energy plan202813 9 
AROvarious— 11 
Othervarious16 11 
Total non-current regulatory liabilities$3,802 $3,744 
Total regulatory liabilities$3,948 $3,895 
1These 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.
2The MPSC has provided, or Consumers expects, a specific return on these regulatory assets.
3This regulatory asset is included in rate base, thereby providing a return.
4These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment.
Regulatory Assets
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 October 2021, the MPSC approved a settlement agreement authorizing Consumers to collect $42 million during 2022 as an incentive for exceeding its statutory savings targets in 2020. Consumers recognized incentive revenue under this program of $42 million in 2020.
Consumers also exceeded its statutory savings targets in 2021, achieved certain other goals, and will request the MPSC’s approval to collect $46 million, the maximum performance incentive, in the energy waste reduction reconciliation to be filed in May 2022. Consumers recognized incentive revenue under this program of $46 million in 2021.
Deferred Capital Spending: In 2019, the MPSC approved a settlement agreement in Consumers’ 2018 electric rate case, which provided deferred accounting treatment for distribution-related capital investments exceeding certain threshold amounts. Thus, for actual capital spending above the threshold amounts detailed in the settlement agreement, Consumers had deferred as a regulatory asset the associated depreciation and property tax expense as well as the debt component of the overall rate of return on such spending.
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.
Costs of Coal-fueled Electric Generating Units to be Retired: In 2019, the MPSC approved the settlement agreement reached in Consumers’ 2018 IRP, under which Consumers plans to retire the D.E. Karn coal-fueled electric generating units in 2023. Under Michigan law, electric utilities have been permitted to use highly rated, low-cost securitization bonds to finance the recovery of qualified costs. In 2019, Consumers removed from total plant, property, and equipment an amount representing the projected remaining book value of the two coal-fueled electric generating units upon their retirement, and recorded it as a regulatory asset. Until securitization, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases.
In December 2020, the MPSC issued a securitization financing order authorizing Consumers to issue securitization bonds in order to finance the recovery of the remaining book value of the two coal-fueled electric generating units upon their retirement. An intervenor appealed the order, contending that it should not have to pay the securitization surcharge. In November 2021, the Michigan Court of Appeals affirmed the MPSC’s determination that the intervenor must pay the securitization charge.
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.
Securitized Costs: In 2013, the MPSC issued a securitization financing order authorizing Consumers to issue securitization bonds in order to finance the recovery of the remaining book value of seven smaller coal-fueled electric generating units that Consumers retired in 2016 and three smaller natural gas-fueled electric generating units that Consumers retired in 2015. Upon receipt of the MPSC’s order, Consumers removed the book value of the ten units from plant, property, and equipment and recorded this amount as a regulatory asset. Consumers is amortizing the regulatory asset over the life of the related securitization bonds, which it issued through a subsidiary in 2014. For additional details regarding the securitization bonds, see Note 4, Financings and Capitalization.
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.
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.
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.
Demand Response Program: In Consumers’ 2018 IRP and general rate cases, the MPSC has approved the recovery of demand response costs. Consumers annually files a reconciliation with the MPSC to review actual demand response costs against amounts approved.
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, the average of which is 44 years for gas plant assets and 27 years for electric plant assets. For additional details on deferred income taxes, see Note 12, Income Taxes.
Reserve for Customer Refunds: In December 2020, the MPSC issued an order authorizing Consumers to refund $28 million voluntarily to utility customers. In May 2021, the MPSC approved a filing submitted by Consumers that proposed the refund take the form of incremental spending in 2021 and 2022 above amounts included in rates on various programs, including electric service restoration and gas and electric technology expenses. If Consumers does not achieve the incremental spending, the remaining balance will be provided to electric or gas utility customers through a bill credit.
Voluntary Transmission Asset Sale Gain Share: In October 2020, Consumers completed a sale of the electric utility’s remaining transmission equipment to METC. In December 2020, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with electric utility customers through incremental service restoration spending in 2021; this application was approved by the MPSC in February 2021. As a result, the $14 million gain was recorded on Consumers’ consolidated balance sheets as a current regulatory liability at December 31, 2020 and was shared with customers in 2021.
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 of removal are incurred. The refund period of this regulatory liability approximates the useful life of the assets to be removed.
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.
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 Utility
2021 Electric Rate Case: In March 2021, Consumers filed an application with the MPSC seeking an annual rate increase of $225 million, based on a 10.5 percent authorized return on equity and a projected twelve-month period ending December 31, 2022. In July 2021, Consumers reduced its requested annual rate increase to $201 million. In December 2021, the MPSC approved an annual rate increase of $27 million, based on a 9.9 percent authorized return on equity. This increase reflects the net impact of the approved settlement agreement in Consumers’ electric depreciation rate case, which reduced annual depreciation expense by $27 million.
In its final order, the MPSC disallowed cost recovery for fleet assets and certain other categories of recently completed capital expenditures incurred by Consumers. As a result of this disallowance, Consumers recorded an impairment charge of $41 million within maintenance and other operating expenses on its consolidated statements of income for the year ended December 31, 2021. This charge includes an assessment of probable loss of $11 million on similar categories of gas utility capital expenditures that are pending recovery in Consumers’ 2021 gas rate case. Though Consumers plans to pursue full recovery of certain of these electric and gas capital expenditures, the position taken by the MPSC in this electric rate case provides significant uncertainty around whether Consumers will ultimately succeed.
In January 2022, Consumers filed a petition for rehearing requesting the MPSC reconsider its disallowance of $11 million in capital expenditures for which the MPSC had already approved recovery in a previous electric rate order; this amount was not included in the impairment charge based on Consumers’ assessment of the merits of the petition for rehearing. The order disallowed recovery of other categories of capital expenditures, requiring that Consumers provide additional cost/benefit analysis and other information in its next electric rate case to support cost recovery. Consumers has incurred approximately $23 million related to these programs as of December 31, 2021 and, for certain ongoing projects, expects to incur additional capital expenditures in 2022 and beyond. While Consumers intends to
support fully the prudency of such capital expenditures, it is reasonably possible that the MPSC will disallow some or all of these capital expenditures. An additional material disallowance of incurred capital costs could negatively affect CMS Energy’s and Consumers’ future results of operations. Consumers cannot predict the outcome of these proceedings.
Finally, the order disallowed various other categories of capital expenditures in the projected test year, primarily challenging the accuracy of Consumers’ projection of these expenditures through 2022. While these are presently excluded from rate base, Consumers believes it will be successful in recovering the actual capital expenditures incurred for these programs in future rate cases.
As a result of the order, in December 2021, Consumers committed to a plan to sell fleet assets with a fair value of $15 million. To reflect these held-for-sale assets at their fair value, less expected selling costs, Consumers recorded an additional impairment charge of $4 million within maintenance and other operating expenses on its consolidated statements of income for the year ended December 31, 2021.
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 in order to minimize the underrecovery or overrecovery amount in the annual reconciliations. Underrecoveries represent probable future revenues 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 3120212020
Assets
GCR underrecoveries$25 $— 
Accounts receivable and accrued revenue$25 $— 
Liabilities
PSCR overrecoveries$12 $5 
GCR overrecoveries— 15 
Accrued rate refunds$12 $20 
PSCR Plans and Reconciliations: In October 2021, the MPSC issued an order in Consumers’ 2019 PSCR reconciliation, authorizing recovery of $1.9 billion of power costs and authorizing Consumers to reflect in its 2020 PSCR reconciliation the overrecovery of $18 million.
In April 2021, the MPSC issued an order in Consumers’ 2020 PSCR plan authorizing the 2020 PSCR charge that Consumers self-implemented beginning in January 2020. In March 2021, Consumers filed its 2020 PSCR reconciliation, requesting full recovery of $1.8 billion of power costs and authorization to reflect in its 2021 PSCR reconciliation the underrecovery of $4 million.
In January 2022, the MPSC issued an order in Consumers’ amended 2021 PSCR plan authorizing the 2021 PSCR charge that Consumers self-implemented beginning in January 2021.
GCR Plans and Reconciliations: In May 2021, the MPSC approved a settlement agreement in Consumers’ 2019-2020 GCR reconciliation, authorizing recovery of $0.5 billion of gas costs and authorizing Consumers to reflect in its 2020-2021 GCR reconciliation the overrecovery of $6 million.
In June 2021, Consumers filed its 2020-2021 GCR reconciliation, requesting full recovery of $0.4 billion of gas costs and authorization to reflect in its 2021-2022 GCR reconciliation the overrecovery of $1 million.
Consumers submitted its 2021-2022 GCR plan to the MPSC in December 2020 and self-implemented its proposed 2021-2022 GCR charge in April 2021. The MPSC approved a settlement agreement in this proceeding in September 2021, authorizing the GCR charge that Consumers had self-implemented.
Consumers Energy Company  
Public Utilities, General Disclosures [Line Items]  
Regulatory Matters Regulatory Matters
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings.
There are multiple appeals pending that involve various issues concerning cost recovery from customers, the MPSC’s authority to approve voluntary revenue refunds, and other matters. Consumers is unable to predict the outcome of these appeals.
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 31End of Recovery or Refund Period20212020
Regulatory assets
Current
Energy waste reduction plan incentive1
2022$42 $34 
Deferred capital spending2
2021— 6 
Other20224 2 
Total current regulatory assets$46 $42 
Non-current
Postretirement benefits3
various$837 $1,231 
Costs of coal-fueled electric generating units to be retired2
various678 678 
ARO4
various247 216 
Securitized costs2
2029193 221 
MGP sites4
various112 120 
Unamortized loss on reacquired debt4
various104 108 
Energy waste reduction plan incentive1
202346 42 
Energy waste reduction plan4
various13 16 
Demand response program4
various10 10 
Othervarious19 11 
Total non-current regulatory assets$2,259 $2,653 
Total regulatory assets$2,305 $2,695 
Regulatory liabilities
Current
Income taxes, net2022$138 $105 
Reserve for customer refunds20222 28 
Voluntary transmission asset sale gain share2021— 14 
Other20226 4 
Total current regulatory liabilities$146 $151 
Non-current
Cost of removalvarious$2,375 $2,245 
Income taxes, netvarious1,297 1,419 
Postretirement benefitsvarious54 — 
Renewable energy grant204347 49 
Renewable energy plan202813 9 
AROvarious— 11 
Othervarious16 11 
Total non-current regulatory liabilities$3,802 $3,744 
Total regulatory liabilities$3,948 $3,895 
1These 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.
2The MPSC has provided, or Consumers expects, a specific return on these regulatory assets.
3This regulatory asset is included in rate base, thereby providing a return.
4These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment.
Regulatory Assets
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 October 2021, the MPSC approved a settlement agreement authorizing Consumers to collect $42 million during 2022 as an incentive for exceeding its statutory savings targets in 2020. Consumers recognized incentive revenue under this program of $42 million in 2020.
Consumers also exceeded its statutory savings targets in 2021, achieved certain other goals, and will request the MPSC’s approval to collect $46 million, the maximum performance incentive, in the energy waste reduction reconciliation to be filed in May 2022. Consumers recognized incentive revenue under this program of $46 million in 2021.
Deferred Capital Spending: In 2019, the MPSC approved a settlement agreement in Consumers’ 2018 electric rate case, which provided deferred accounting treatment for distribution-related capital investments exceeding certain threshold amounts. Thus, for actual capital spending above the threshold amounts detailed in the settlement agreement, Consumers had deferred as a regulatory asset the associated depreciation and property tax expense as well as the debt component of the overall rate of return on such spending.
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.
Costs of Coal-fueled Electric Generating Units to be Retired: In 2019, the MPSC approved the settlement agreement reached in Consumers’ 2018 IRP, under which Consumers plans to retire the D.E. Karn coal-fueled electric generating units in 2023. Under Michigan law, electric utilities have been permitted to use highly rated, low-cost securitization bonds to finance the recovery of qualified costs. In 2019, Consumers removed from total plant, property, and equipment an amount representing the projected remaining book value of the two coal-fueled electric generating units upon their retirement, and recorded it as a regulatory asset. Until securitization, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases.
In December 2020, the MPSC issued a securitization financing order authorizing Consumers to issue securitization bonds in order to finance the recovery of the remaining book value of the two coal-fueled electric generating units upon their retirement. An intervenor appealed the order, contending that it should not have to pay the securitization surcharge. In November 2021, the Michigan Court of Appeals affirmed the MPSC’s determination that the intervenor must pay the securitization charge.
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.
Securitized Costs: In 2013, the MPSC issued a securitization financing order authorizing Consumers to issue securitization bonds in order to finance the recovery of the remaining book value of seven smaller coal-fueled electric generating units that Consumers retired in 2016 and three smaller natural gas-fueled electric generating units that Consumers retired in 2015. Upon receipt of the MPSC’s order, Consumers removed the book value of the ten units from plant, property, and equipment and recorded this amount as a regulatory asset. Consumers is amortizing the regulatory asset over the life of the related securitization bonds, which it issued through a subsidiary in 2014. For additional details regarding the securitization bonds, see Note 4, Financings and Capitalization.
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.
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.
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.
Demand Response Program: In Consumers’ 2018 IRP and general rate cases, the MPSC has approved the recovery of demand response costs. Consumers annually files a reconciliation with the MPSC to review actual demand response costs against amounts approved.
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, the average of which is 44 years for gas plant assets and 27 years for electric plant assets. For additional details on deferred income taxes, see Note 12, Income Taxes.
Reserve for Customer Refunds: In December 2020, the MPSC issued an order authorizing Consumers to refund $28 million voluntarily to utility customers. In May 2021, the MPSC approved a filing submitted by Consumers that proposed the refund take the form of incremental spending in 2021 and 2022 above amounts included in rates on various programs, including electric service restoration and gas and electric technology expenses. If Consumers does not achieve the incremental spending, the remaining balance will be provided to electric or gas utility customers through a bill credit.
Voluntary Transmission Asset Sale Gain Share: In October 2020, Consumers completed a sale of the electric utility’s remaining transmission equipment to METC. In December 2020, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with electric utility customers through incremental service restoration spending in 2021; this application was approved by the MPSC in February 2021. As a result, the $14 million gain was recorded on Consumers’ consolidated balance sheets as a current regulatory liability at December 31, 2020 and was shared with customers in 2021.
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 of removal are incurred. The refund period of this regulatory liability approximates the useful life of the assets to be removed.
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.
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 Utility
2021 Electric Rate Case: In March 2021, Consumers filed an application with the MPSC seeking an annual rate increase of $225 million, based on a 10.5 percent authorized return on equity and a projected twelve-month period ending December 31, 2022. In July 2021, Consumers reduced its requested annual rate increase to $201 million. In December 2021, the MPSC approved an annual rate increase of $27 million, based on a 9.9 percent authorized return on equity. This increase reflects the net impact of the approved settlement agreement in Consumers’ electric depreciation rate case, which reduced annual depreciation expense by $27 million.
In its final order, the MPSC disallowed cost recovery for fleet assets and certain other categories of recently completed capital expenditures incurred by Consumers. As a result of this disallowance, Consumers recorded an impairment charge of $41 million within maintenance and other operating expenses on its consolidated statements of income for the year ended December 31, 2021. This charge includes an assessment of probable loss of $11 million on similar categories of gas utility capital expenditures that are pending recovery in Consumers’ 2021 gas rate case. Though Consumers plans to pursue full recovery of certain of these electric and gas capital expenditures, the position taken by the MPSC in this electric rate case provides significant uncertainty around whether Consumers will ultimately succeed.
In January 2022, Consumers filed a petition for rehearing requesting the MPSC reconsider its disallowance of $11 million in capital expenditures for which the MPSC had already approved recovery in a previous electric rate order; this amount was not included in the impairment charge based on Consumers’ assessment of the merits of the petition for rehearing. The order disallowed recovery of other categories of capital expenditures, requiring that Consumers provide additional cost/benefit analysis and other information in its next electric rate case to support cost recovery. Consumers has incurred approximately $23 million related to these programs as of December 31, 2021 and, for certain ongoing projects, expects to incur additional capital expenditures in 2022 and beyond. While Consumers intends to
support fully the prudency of such capital expenditures, it is reasonably possible that the MPSC will disallow some or all of these capital expenditures. An additional material disallowance of incurred capital costs could negatively affect CMS Energy’s and Consumers’ future results of operations. Consumers cannot predict the outcome of these proceedings.
Finally, the order disallowed various other categories of capital expenditures in the projected test year, primarily challenging the accuracy of Consumers’ projection of these expenditures through 2022. While these are presently excluded from rate base, Consumers believes it will be successful in recovering the actual capital expenditures incurred for these programs in future rate cases.
As a result of the order, in December 2021, Consumers committed to a plan to sell fleet assets with a fair value of $15 million. To reflect these held-for-sale assets at their fair value, less expected selling costs, Consumers recorded an additional impairment charge of $4 million within maintenance and other operating expenses on its consolidated statements of income for the year ended December 31, 2021.
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 in order to minimize the underrecovery or overrecovery amount in the annual reconciliations. Underrecoveries represent probable future revenues 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 3120212020
Assets
GCR underrecoveries$25 $— 
Accounts receivable and accrued revenue$25 $— 
Liabilities
PSCR overrecoveries$12 $5 
GCR overrecoveries— 15 
Accrued rate refunds$12 $20 
PSCR Plans and Reconciliations: In October 2021, the MPSC issued an order in Consumers’ 2019 PSCR reconciliation, authorizing recovery of $1.9 billion of power costs and authorizing Consumers to reflect in its 2020 PSCR reconciliation the overrecovery of $18 million.
In April 2021, the MPSC issued an order in Consumers’ 2020 PSCR plan authorizing the 2020 PSCR charge that Consumers self-implemented beginning in January 2020. In March 2021, Consumers filed its 2020 PSCR reconciliation, requesting full recovery of $1.8 billion of power costs and authorization to reflect in its 2021 PSCR reconciliation the underrecovery of $4 million.
In January 2022, the MPSC issued an order in Consumers’ amended 2021 PSCR plan authorizing the 2021 PSCR charge that Consumers self-implemented beginning in January 2021.
GCR Plans and Reconciliations: In May 2021, the MPSC approved a settlement agreement in Consumers’ 2019-2020 GCR reconciliation, authorizing recovery of $0.5 billion of gas costs and authorizing Consumers to reflect in its 2020-2021 GCR reconciliation the overrecovery of $6 million.
In June 2021, Consumers filed its 2020-2021 GCR reconciliation, requesting full recovery of $0.4 billion of gas costs and authorization to reflect in its 2021-2022 GCR reconciliation the overrecovery of $1 million.
Consumers submitted its 2021-2022 GCR plan to the MPSC in December 2020 and self-implemented its proposed 2021-2022 GCR charge in April 2021. The MPSC approved a settlement agreement in this proceeding in September 2021, authorizing the GCR charge that Consumers had self-implemented.
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Contingencies and Commitments
 12 Months Ended
Dec. 31, 2021
Other Commitments [Line Items]  
Contingencies and Commitments Contingencies and Commitments
CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter.
CMS Energy Contingencies
Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which was renewed in January 2022 and is valid through 2025.
At December 31, 2021, 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
20222023202420252026
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.
Equatorial Guinea Tax Claim: In 2002, CMS Energy sold its oil, gas, and methanol investments in Equatorial Guinea. The government of Equatorial Guinea claims that, in connection with the sale, CMS Energy owes $152 million in taxes, plus substantial penalties and interest that could be up to or exceed the amount of the taxes claimed. In 2015, the matter was proceeding to formal arbitration; however, since then, the government of Equatorial Guinea has stopped communicating with CMS Energy. CMS Energy has concluded that the government’s tax claim is without merit and believes the likelihood of material loss to be remote, but cannot predict the financial impact or outcome of the matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s liquidity, financial condition, and results of operations.
Consumers Electric Utility Contingencies
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations.
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $2 million and $4 million. At December 31, 2021, Consumers had a recorded liability of $2 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount.
Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 2011, Consumers received a follow-up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river.
Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At December 31, 2021, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount.
The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability.
Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome.
MCV PPA: In 2017, the MCV Partnership initiated arbitration against Consumers, asserting a breach of contract associated with the MCV PPA. In 2019, an arbitration panel issued an order concluding that the MCV Partnership is not entitled to any damages associated with a claim against Consumers that was related to the Clean Air Act. In November 2020, the MCV Partnership and Consumers signed a settlement agreement resolving all remaining disputes between the parties, and filed the settlement and associated agreements with the MPSC for approval. In March 2021, the MPSC approved the settlement and associated agreements.
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, 2021, Consumers had a recorded liability of $57 million for its remaining obligations for these sites. This amount represents the present value of long-term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $61 million. Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years:
In Millions
20222023202420252026
Consumers
Remediation and other response activity costs$3 $9 $24 $11 $1 
Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability.
Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten-year period. At December 31, 2021, Consumers had a regulatory asset of $112 million related to the MGP sites.
Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million. At December 31, 2021, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount.
Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of
the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity.
In May 2020, the MPSC approved an administrative settlement agreement between Consumers and the MPSC Staff, which resulted in a $10,000 civil penalty in connection with the fire. Consumers may also be subject to various claims from impacted customers and claims for damages.
In September 2020, the MPSC disallowed the recovery of $7 million in incremental gas purchases related to the fire. In January 2021, the MPSC denied Consumers’ petition for a rehearing challenging this disallowance. In February 2021, Consumers filed an appeal of the MPSC’s denial with the Michigan Court of Appeals. Consumers could also be subject to disallowances of costs associated with the repair and modification of the Ray Compressor Station. At December 31, 2021, Consumers had incurred capital expenditures of $17 million to restore and modify the compressor station.
As of December 31, 2021, Consumers had recorded an insurance recovery of $13 million related to the compressor station. During 2021, Consumers recognized $6 million of the insurance recovery as a reduction to plant, property, and equipment, $3 million as a reduction of maintenance and other operating expenses, and $4 million as operating revenue, which represented recovery of incremental gas purchases related to the fire.
At this time, Consumers cannot predict the outcome of these matters or other gas-related incidents and a reasonable estimate of a total loss cannot be made, but they could have a material adverse effect on CMS Energy’s and Consumers’ results of operations, financial condition, or liquidity, and could subject Consumers’ gas utility to increased regulatory scrutiny.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2021:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1
September 2020indefinite$314 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite2254 
Guarantee3
July 2011indefinite30 — 
Consumers
Guarantee3
July 2011indefinite$30 $— 
1In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 19, Variable Interest Entities.
2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 20, Exit Activities and Discontinued Operations. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. At December 31, 2021, the carrying value of these indemnity obligations was $1 million. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote.
Other Contingencies
In addition to the matters disclosed in this Note, Note 2, Regulatory Matters, and Note 20, Exit Activities and Discontinued Operations, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity.
Contractual Commitments
Purchase Obligations: Purchase obligations arise from long-term contracts for the purchase of commodities and related services, plant purchase commitments, 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 CMS Enterprises. Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2021 for each of the periods shown:
In Millions
Payments Due
Total20222023202420252026Beyond 2026
CMS Energy, including Consumers
Total PPAs$8,028 $828 $747 $762 $709 $606 $4,376 
Other4,445 1,489 1,657 412 639 36 212 
Total purchase obligations$12,473 $2,317 $2,404 $1,174 $1,348 $642 $4,588 
Consumers
PPAs
MCV PPA$2,204 $349 $348 $346 $306 $231 $624 
Palisades PPA116 116 — — — — — 
Related-party PPAs342 65 65 65 47 29 71 
Other PPAs5,366 298 334 351 356 346 3,681 
Total PPAs$8,028 $828 $747 $762 $709 $606 $4,376 
Other3,950 1,381 1,596 364 594 12 3 
Total purchase obligations$11,978 $2,209 $2,343 $1,126 $1,303 $618 $4,379 
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. The PPA was amended during 2020 and was approved by the MPSC in 2021. The amended and restated MCV PPA provides for:
•an extension of the termination date from March 2025 to May 2030
•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 $348 million in 2021, $298 million in 2020, and $318 million in 2019.
Palisades PPA: Consumers has a PPA expiring in May 2022 with Entergy to purchase virtually all of the capacity and energy produced by Palisades, up to the annual average capacity of 798 MW. For all delivered energy, the Palisades PPA has escalating capacity and variable energy charges. Total capacity and energy charges under the Palisades PPA were $413 million in 2021, $403 million in 2020, and $395 million in 2019. For further details about Palisades, see Note 8, Leases and Palisades Financing.
Other PPAs: Consumers has PPAs expiring through 2048 with various counterparties. The majority of the PPAs have capacity and energy charges for delivered energy. In addition, CMS Energy and Consumers account for several of their PPAs as leases. Capacity and energy charges under these PPAs were $338 million in 2021, $327 million in 2020, and $336 million in 2019. See Note 8, Leases and Palisades Financing 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 that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter.
CMS Energy Contingencies
Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which was renewed in January 2022 and is valid through 2025.
At December 31, 2021, 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
20222023202420252026
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.
Equatorial Guinea Tax Claim: In 2002, CMS Energy sold its oil, gas, and methanol investments in Equatorial Guinea. The government of Equatorial Guinea claims that, in connection with the sale, CMS Energy owes $152 million in taxes, plus substantial penalties and interest that could be up to or exceed the amount of the taxes claimed. In 2015, the matter was proceeding to formal arbitration; however, since then, the government of Equatorial Guinea has stopped communicating with CMS Energy. CMS Energy has concluded that the government’s tax claim is without merit and believes the likelihood of material loss to be remote, but cannot predict the financial impact or outcome of the matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s liquidity, financial condition, and results of operations.
Consumers Electric Utility Contingencies
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations.
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $2 million and $4 million. At December 31, 2021, Consumers had a recorded liability of $2 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount.
Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 2011, Consumers received a follow-up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river.
Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At December 31, 2021, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount.
The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability.
Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome.
MCV PPA: In 2017, the MCV Partnership initiated arbitration against Consumers, asserting a breach of contract associated with the MCV PPA. In 2019, an arbitration panel issued an order concluding that the MCV Partnership is not entitled to any damages associated with a claim against Consumers that was related to the Clean Air Act. In November 2020, the MCV Partnership and Consumers signed a settlement agreement resolving all remaining disputes between the parties, and filed the settlement and associated agreements with the MPSC for approval. In March 2021, the MPSC approved the settlement and associated agreements.
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, 2021, Consumers had a recorded liability of $57 million for its remaining obligations for these sites. This amount represents the present value of long-term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $61 million. Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years:
In Millions
20222023202420252026
Consumers
Remediation and other response activity costs$3 $9 $24 $11 $1 
Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability.
Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten-year period. At December 31, 2021, Consumers had a regulatory asset of $112 million related to the MGP sites.
Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million. At December 31, 2021, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount.
Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of
the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity.
In May 2020, the MPSC approved an administrative settlement agreement between Consumers and the MPSC Staff, which resulted in a $10,000 civil penalty in connection with the fire. Consumers may also be subject to various claims from impacted customers and claims for damages.
In September 2020, the MPSC disallowed the recovery of $7 million in incremental gas purchases related to the fire. In January 2021, the MPSC denied Consumers’ petition for a rehearing challenging this disallowance. In February 2021, Consumers filed an appeal of the MPSC’s denial with the Michigan Court of Appeals. Consumers could also be subject to disallowances of costs associated with the repair and modification of the Ray Compressor Station. At December 31, 2021, Consumers had incurred capital expenditures of $17 million to restore and modify the compressor station.
As of December 31, 2021, Consumers had recorded an insurance recovery of $13 million related to the compressor station. During 2021, Consumers recognized $6 million of the insurance recovery as a reduction to plant, property, and equipment, $3 million as a reduction of maintenance and other operating expenses, and $4 million as operating revenue, which represented recovery of incremental gas purchases related to the fire.
At this time, Consumers cannot predict the outcome of these matters or other gas-related incidents and a reasonable estimate of a total loss cannot be made, but they could have a material adverse effect on CMS Energy’s and Consumers’ results of operations, financial condition, or liquidity, and could subject Consumers’ gas utility to increased regulatory scrutiny.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2021:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1
September 2020indefinite$314 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite2254 
Guarantee3
July 2011indefinite30 — 
Consumers
Guarantee3
July 2011indefinite$30 $— 
1In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 19, Variable Interest Entities.
2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 20, Exit Activities and Discontinued Operations. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. At December 31, 2021, the carrying value of these indemnity obligations was $1 million. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote.
Other Contingencies
In addition to the matters disclosed in this Note, Note 2, Regulatory Matters, and Note 20, Exit Activities and Discontinued Operations, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity.
Contractual Commitments
Purchase Obligations: Purchase obligations arise from long-term contracts for the purchase of commodities and related services, plant purchase commitments, 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 CMS Enterprises. Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2021 for each of the periods shown:
In Millions
Payments Due
Total20222023202420252026Beyond 2026
CMS Energy, including Consumers
Total PPAs$8,028 $828 $747 $762 $709 $606 $4,376 
Other4,445 1,489 1,657 412 639 36 212 
Total purchase obligations$12,473 $2,317 $2,404 $1,174 $1,348 $642 $4,588 
Consumers
PPAs
MCV PPA$2,204 $349 $348 $346 $306 $231 $624 
Palisades PPA116 116 — — — — — 
Related-party PPAs342 65 65 65 47 29 71 
Other PPAs5,366 298 334 351 356 346 3,681 
Total PPAs$8,028 $828 $747 $762 $709 $606 $4,376 
Other3,950 1,381 1,596 364 594 12 3 
Total purchase obligations$11,978 $2,209 $2,343 $1,126 $1,303 $618 $4,379 
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. The PPA was amended during 2020 and was approved by the MPSC in 2021. The amended and restated MCV PPA provides for:
•an extension of the termination date from March 2025 to May 2030
•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 $348 million in 2021, $298 million in 2020, and $318 million in 2019.
Palisades PPA: Consumers has a PPA expiring in May 2022 with Entergy to purchase virtually all of the capacity and energy produced by Palisades, up to the annual average capacity of 798 MW. For all delivered energy, the Palisades PPA has escalating capacity and variable energy charges. Total capacity and energy charges under the Palisades PPA were $413 million in 2021, $403 million in 2020, and $395 million in 2019. For further details about Palisades, see Note 8, Leases and Palisades Financing.
Other PPAs: Consumers has PPAs expiring through 2048 with various counterparties. The majority of the PPAs have capacity and energy charges for delivered energy. In addition, CMS Energy and Consumers account for several of their PPAs as leases. Capacity and energy charges under these PPAs were $338 million in 2021, $327 million in 2020, and $336 million in 2019. See Note 8, Leases and Palisades Financing for more information about CMS Energy’s and Consumers’ lease obligations.
v3.22.0.1
Financings and Capitalization
 12 Months Ended
Dec. 31, 2021
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
(%)		Maturity20212020
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 
Term loan facilityvariable2021— 200 
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$3,985 $4,185 
Consumers8,505 8,197 
CMS Enterprises, including subsidiaries
Term loan facilityvariable
4
202578 85 
Total principal amount outstanding$12,568 $12,467 
Current amounts(373)(571)
Unamortized discounts(31)(33)
Unamortized issuance costs(118)(119)
Total long-term debt$12,046 $11,744 
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.
4A subsidiary of CMS Enterprises issued non‑recourse debt to finance the acquisition of a wind generation project in Northwest Ohio. The interest rate for the debt is three-month LIBOR plus 1.500 percent through October 2022 and three-month LIBOR plus 1.750 percent thereafter. At December 31, 2021 and 2020, the interest rate was 1.724 percent and 1.754 percent, respectively. The same subsidiary of CMS Enterprises entered into interest rate swaps with the lending banks to fix the interest charges associated with the debt, at a rate of 4.702 percent through October 2022 and 4.952 percent thereafter. Principal and interest payments are made quarterly. For information about the interest rate swaps, see Note 5, Fair Value Measurements.
Presented in the following table is Consumers’ long-term debt at December 31:
In Millions
Interest Rate
(%)		Maturity20212020
Consumers
First mortgage bonds
0.350 2023$300 $300 
3.375 2023325 325 
3.125 2024250 250 
3.190 202452 52 
3.680 2027100 100 
3.390 202735 35 
3.800 2028300 300 
3.180 2032100 100 
5.800 2035175 175 
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 — 
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 
$8,197 $7,897 
Tax-exempt revenue bonds0.875 
2
203535 — 
1.800 
3
204975 75 
$110 $75 
Securitization bonds3.290 
4
2025-2029
5
198 225 
Total principal amount outstanding$8,505 $8,197 
Current amounts(365)(364)
Unamortized discounts(28)(29)
Unamortized issuance costs(62)(62)
Total long-term debt$8,050 $7,742 
1The variable-rate bonds bear interest quarterly at a rate of three-month LIBOR minus 0.300 percent, subject to a zero-percent floor (zero percent at December 31, 2021) and (zero percent at December 31, 2020). 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, 2021.
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 3.290 percent at December 31, 2021 and 3.250 percent at December 31, 2020.
5Principal and interest payments are made semiannually.
Financings: Presented in the following table is a summary of major long-term debt issuances during 2021:
Principal
(In Millions)		Interest RateIssuance DateMaturity Date
Consumers
First mortgage bonds$300 2.650%August 2021August 2052
Tax-exempt revenue bonds1
35 0.875%October 2021April 2035
1    
Presented in the following table is a summary of major long-term debt retirements during year ended December 31, 2021:
Principal
(In Millions)		Interest RateRetirement DateMaturity Date
CMS Energy, parent only
Term Loan facility$200 variableOctober 2021November 2021
First Mortgage Bonds: Consumers secures its first mortgage bonds by a mortgage and lien on substantially all of its property. Consumers’ ability to issue first mortgage bonds is restricted by certain provisions in the First Mortgage Bond Indenture and the need for regulatory approvals under federal law. Restrictive issuance provisions in the First Mortgage Bond Indenture include achieving a two-times interest coverage ratio and having sufficient unfunded net property additions.
Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Its current authorization terminates on July 31, 2022. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. In December 2021, Consumers filed an application for authority to issue securities between April 1, 2022 and March 31, 2024, replacing the current authorization.
Securitization Bonds: Certain regulatory assets held by Consumers’ subsidiary, Consumers 2014 Securitization Funding, collateralize Consumers’ securitization bonds. The bondholders have no recourse to Consumers’ assets except for those held by the subsidiary that issued the bonds. Consumers collects securitization surcharges to cover the principal and interest on the bonds as well as certain other qualified costs. The surcharges collected are remitted to a trustee and are not available to creditors of Consumers or creditors of Consumers’ affiliates other than the subsidiary that issued the bonds.
Debt Maturities: At December 31, 2021, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20222023202420252026
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$— $— $250 $250 $300 
Consumers
365 654 332 31 32 
CMS Enterprises, including subsidiaries8 9 10 51 — 
Total CMS Energy$373 $663 $592 $332 $332 
Consumers
Long-term debt$365 $654 $332 $31 $32 
Credit Facilities: The following credit facilities with banks were available at December 31, 2021:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 20241
$550 $— $24 $526 
September 23, 20222
31 — 31 — 
CMS Enterprises, including subsidiaries
September 25, 20253
$39 $— $39 $— 
September 30, 20254
18 — 8 10 
Consumers5
June 5, 2024
$850 $— $12 $838 
November 19, 2023
250 — 8 242 
April 18, 2022
30 — 30 — 
1There were no borrowings under this facility during the year ended December 31, 2021.
2The maximum aggregate of letters of credit that may be issued under this facility is $50 million. The amount remaining under the facility is uncommitted.
3This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 19, Variable Interest Entities.
4Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. There were no borrowings under this facility during the year ended December 31, 2021.
5Obligations under these facilities are secured by first mortgage bonds of Consumers. There were no borrowings under these facilities during the year ended December 31, 2021.
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, 2021, there were no commercial paper notes outstanding under this program.
In December 2021, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million at an interest rate of one month LIBOR minus 0.100 percent. At December 31, 2021, outstanding borrowings under the agreement were $392 million bearing an interest rate of zero percent. In January 2022, Consumers repaid $392 million of its loan outstanding with CMS Energy.
Dividend Restrictions: At December 31, 2021, payment of dividends by CMS Energy on its common stock was limited to $6.4 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at December 31, 2021, Consumers had $1.8 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process.
During the year ended December 31, 2021, Consumers paid $722 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 2020, CMS Energy entered into an equity offering program under which it may sell, from time to time, shares of CMS Energy common stock. Under the program, CMS Energy may sell its common stock in privately negotiated transactions, in “at the market” offerings, through forward sales transactions, or otherwise.
CMS Energy may sell shares of its common stock having an aggregate sales price of up to $500 million. Presented in the following table are details of CMS Energy’s forward sales contracts under this program at December 31, 2021:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialDecember 31, 2021
September 15, 2020June 30, 2022846,759$61.04 $58.51 
December 22, 2020June 22, 2022115,59561.81 59.73 
These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock.
The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded
on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle the contracts as of December 31, 2021, CMS Energy would have been required to deliver 94,588 shares.
Issuance of Preferred Stock: In 2021, CMS Energy issued 9.2 million depositary shares, each representing a 1/1,000th interest in a share of its cumulative Series C preferred stock, traded on the New York Stock Exchange under the symbol CMS PRC, at a price of $25.00 per depositary share. The transaction resulted in net proceeds of $224 million, which was used for general corporate purposes. Dividends on the preferred stock accumulate at an annual rate of 4.200 percent and are payable quarterly.
The Series C preferred stock has no maturity or mandatory redemption date and is not redeemable at the option of the holders. CMS Energy may, at its option, redeem the Series C preferred stock, in whole or in part, at a price equal to $25,000 per share (equivalent to $25.00 per depositary share), plus accumulated and unpaid dividends, at any time on or after July 15, 2026. The Series C preferred stock ranks senior to CMS Energy’s common stock with respect to dividend rights and distribution rights upon liquidation.
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, 2021 and 2020:
Par ValueOptional Redemption PriceNumber of Shares AuthorizedNumber of Shares Outstanding
Cumulative, with no mandatory redemption
$100 $110 7,500,000373,148
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
(%)		Maturity20212020
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 
Term loan facilityvariable2021— 200 
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$3,985 $4,185 
Consumers8,505 8,197 
CMS Enterprises, including subsidiaries
Term loan facilityvariable
4
202578 85 
Total principal amount outstanding$12,568 $12,467 
Current amounts(373)(571)
Unamortized discounts(31)(33)
Unamortized issuance costs(118)(119)
Total long-term debt$12,046 $11,744 
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.
4A subsidiary of CMS Enterprises issued non‑recourse debt to finance the acquisition of a wind generation project in Northwest Ohio. The interest rate for the debt is three-month LIBOR plus 1.500 percent through October 2022 and three-month LIBOR plus 1.750 percent thereafter. At December 31, 2021 and 2020, the interest rate was 1.724 percent and 1.754 percent, respectively. The same subsidiary of CMS Enterprises entered into interest rate swaps with the lending banks to fix the interest charges associated with the debt, at a rate of 4.702 percent through October 2022 and 4.952 percent thereafter. Principal and interest payments are made quarterly. For information about the interest rate swaps, see Note 5, Fair Value Measurements.
Presented in the following table is Consumers’ long-term debt at December 31:
In Millions
Interest Rate
(%)		Maturity20212020
Consumers
First mortgage bonds
0.350 2023$300 $300 
3.375 2023325 325 
3.125 2024250 250 
3.190 202452 52 
3.680 2027100 100 
3.390 202735 35 
3.800 2028300 300 
3.180 2032100 100 
5.800 2035175 175 
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 — 
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 
$8,197 $7,897 
Tax-exempt revenue bonds0.875 
2
203535 — 
1.800 
3
204975 75 
$110 $75 
Securitization bonds3.290 
4
2025-2029
5
198 225 
Total principal amount outstanding$8,505 $8,197 
Current amounts(365)(364)
Unamortized discounts(28)(29)
Unamortized issuance costs(62)(62)
Total long-term debt$8,050 $7,742 
1The variable-rate bonds bear interest quarterly at a rate of three-month LIBOR minus 0.300 percent, subject to a zero-percent floor (zero percent at December 31, 2021) and (zero percent at December 31, 2020). 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, 2021.
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 3.290 percent at December 31, 2021 and 3.250 percent at December 31, 2020.
5Principal and interest payments are made semiannually.
Financings: Presented in the following table is a summary of major long-term debt issuances during 2021:
Principal
(In Millions)		Interest RateIssuance DateMaturity Date
Consumers
First mortgage bonds$300 2.650%August 2021August 2052
Tax-exempt revenue bonds1
35 0.875%October 2021April 2035
1    
Presented in the following table is a summary of major long-term debt retirements during year ended December 31, 2021:
Principal
(In Millions)		Interest RateRetirement DateMaturity Date
CMS Energy, parent only
Term Loan facility$200 variableOctober 2021November 2021
First Mortgage Bonds: Consumers secures its first mortgage bonds by a mortgage and lien on substantially all of its property. Consumers’ ability to issue first mortgage bonds is restricted by certain provisions in the First Mortgage Bond Indenture and the need for regulatory approvals under federal law. Restrictive issuance provisions in the First Mortgage Bond Indenture include achieving a two-times interest coverage ratio and having sufficient unfunded net property additions.
Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Its current authorization terminates on July 31, 2022. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. In December 2021, Consumers filed an application for authority to issue securities between April 1, 2022 and March 31, 2024, replacing the current authorization.
Securitization Bonds: Certain regulatory assets held by Consumers’ subsidiary, Consumers 2014 Securitization Funding, collateralize Consumers’ securitization bonds. The bondholders have no recourse to Consumers’ assets except for those held by the subsidiary that issued the bonds. Consumers collects securitization surcharges to cover the principal and interest on the bonds as well as certain other qualified costs. The surcharges collected are remitted to a trustee and are not available to creditors of Consumers or creditors of Consumers’ affiliates other than the subsidiary that issued the bonds.
Debt Maturities: At December 31, 2021, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20222023202420252026
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$— $— $250 $250 $300 
Consumers
365 654 332 31 32 
CMS Enterprises, including subsidiaries8 9 10 51 — 
Total CMS Energy$373 $663 $592 $332 $332 
Consumers
Long-term debt$365 $654 $332 $31 $32 
Credit Facilities: The following credit facilities with banks were available at December 31, 2021:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 20241
$550 $— $24 $526 
September 23, 20222
31 — 31 — 
CMS Enterprises, including subsidiaries
September 25, 20253
$39 $— $39 $— 
September 30, 20254
18 — 8 10 
Consumers5
June 5, 2024
$850 $— $12 $838 
November 19, 2023
250 — 8 242 
April 18, 2022
30 — 30 — 
1There were no borrowings under this facility during the year ended December 31, 2021.
2The maximum aggregate of letters of credit that may be issued under this facility is $50 million. The amount remaining under the facility is uncommitted.
3This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 19, Variable Interest Entities.
4Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. There were no borrowings under this facility during the year ended December 31, 2021.
5Obligations under these facilities are secured by first mortgage bonds of Consumers. There were no borrowings under these facilities during the year ended December 31, 2021.
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, 2021, there were no commercial paper notes outstanding under this program.
In December 2021, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million at an interest rate of one month LIBOR minus 0.100 percent. At December 31, 2021, outstanding borrowings under the agreement were $392 million bearing an interest rate of zero percent. In January 2022, Consumers repaid $392 million of its loan outstanding with CMS Energy.
Dividend Restrictions: At December 31, 2021, payment of dividends by CMS Energy on its common stock was limited to $6.4 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at December 31, 2021, Consumers had $1.8 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process.
During the year ended December 31, 2021, Consumers paid $722 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 2020, CMS Energy entered into an equity offering program under which it may sell, from time to time, shares of CMS Energy common stock. Under the program, CMS Energy may sell its common stock in privately negotiated transactions, in “at the market” offerings, through forward sales transactions, or otherwise.
CMS Energy may sell shares of its common stock having an aggregate sales price of up to $500 million. Presented in the following table are details of CMS Energy’s forward sales contracts under this program at December 31, 2021:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialDecember 31, 2021
September 15, 2020June 30, 2022846,759$61.04 $58.51 
December 22, 2020June 22, 2022115,59561.81 59.73 
These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock.
The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded
on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle the contracts as of December 31, 2021, CMS Energy would have been required to deliver 94,588 shares.
Issuance of Preferred Stock: In 2021, CMS Energy issued 9.2 million depositary shares, each representing a 1/1,000th interest in a share of its cumulative Series C preferred stock, traded on the New York Stock Exchange under the symbol CMS PRC, at a price of $25.00 per depositary share. The transaction resulted in net proceeds of $224 million, which was used for general corporate purposes. Dividends on the preferred stock accumulate at an annual rate of 4.200 percent and are payable quarterly.
The Series C preferred stock has no maturity or mandatory redemption date and is not redeemable at the option of the holders. CMS Energy may, at its option, redeem the Series C preferred stock, in whole or in part, at a price equal to $25,000 per share (equivalent to $25.00 per depositary share), plus accumulated and unpaid dividends, at any time on or after July 15, 2026. The Series C preferred stock ranks senior to CMS Energy’s common stock with respect to dividend rights and distribution rights upon liquidation.
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, 2021 and 2020:
Par ValueOptional Redemption PriceNumber of Shares AuthorizedNumber of Shares Outstanding
Cumulative, with no mandatory redemption
$100 $110 7,500,000373,148
v3.22.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Measurements Fair Value Measurements
Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows:
•Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
•Level 2 inputs are observable, market-based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data.
•Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities.
CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
December 312021202020212020
Assets1
Restricted cash equivalents$24 $17 $22 $15 
Nonqualified deferred compensation plan assets27 23 21 18 
Derivative instruments2 1 2 1 
Total assets$53 $41 $45 $34 
Liabilities1
Nonqualified deferred compensation plan liabilities$27 $23 $21 $18 
Derivative instruments7 11 — — 
Total liabilities$34 $34 21 $18 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Restricted Cash Equivalents: Restricted cash equivalents consist of money market funds with daily liquidity. For further details, see Note 16, Cash and Cash Equivalents.
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets.
Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3.
The derivatives classified as Level 2 are interest rate swaps at CMS Energy, which are valued using market-based inputs. CMS Energy uses interest rate swaps to manage its interest rate risk on certain long‑term debt obligations.
A subsidiary of CMS Enterprises uses floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with future interest payments on certain long‑term variable-rate debt. The interest rate swaps are accounted for as cash flow hedges of the future variability of interest payments on debt with a notional amount of $78 million at December 31, 2021 and $85 million at December 31, 2020. Gains or losses on these swaps are initially reported in other comprehensive income (loss) and then, as interest payments are made on the hedged debt, are recognized in earnings within interest on long-term debt on CMS Energy’s consolidated statements of income. CMS Energy recorded gains (losses) of $2 million in 2021, $(6) million in 2020, and $(4) million in 2019. There were no material impacts on
interest on long-term debt associated with these swaps during the periods presented. The fair value of these swaps recorded in other liabilities on CMS Energy’s consolidated balance sheets totaled $4 million at December 31, 2021 and $9 million at December 31, 2020. CMS Energy also has other interest rate swaps that economically hedge interest rate risk on debt, but that do not qualify for cash flow hedge accounting; the amounts associated with these swaps were not material for the periods presented.
The majority of derivatives classified as Level 3 are FTRs held by Consumers. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. There was no material activity within the Level 3 categories of assets and liabilities during the periods presented.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Presented in the following table are Consumers’ assets, by level within the fair value hierarchy, reported at fair value on a nonrecurring basis during the year ended December 31, 2021:
In Millions
Level 1Level 2Level 3Gains (Losses)
Assets held for sale$— $15 $— $(4)
In 2021, Consumers wrote down fleet assets held for sale from their carrying amount of $19 million to their fair value, less selling costs, of $15 million, resulting in an impairment charge of $4 million, which was recorded within maintenance and other operating expenses on its consolidated statements of income for the year ended December 31, 2021. The fair value was determined based on the market prices of similar fleet vehicles. For additional information, see Item 8. Financial Statements and Supplementary Data—Notes to the Consolidated Financial Statements—Note 2, Regulatory Matters.
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 312021202020212020
Assets1
Restricted cash equivalents$24 $17 $22 $15 
Nonqualified deferred compensation plan assets27 23 21 18 
Derivative instruments2 1 2 1 
Total assets$53 $41 $45 $34 
Liabilities1
Nonqualified deferred compensation plan liabilities$27 $23 $21 $18 
Derivative instruments7 11 — — 
Total liabilities$34 $34 21 $18 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Restricted Cash Equivalents: Restricted cash equivalents consist of money market funds with daily liquidity. For further details, see Note 16, Cash and Cash Equivalents.
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets.
Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3.
The derivatives classified as Level 2 are interest rate swaps at CMS Energy, which are valued using market-based inputs. CMS Energy uses interest rate swaps to manage its interest rate risk on certain long‑term debt obligations.
A subsidiary of CMS Enterprises uses floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with future interest payments on certain long‑term variable-rate debt. The interest rate swaps are accounted for as cash flow hedges of the future variability of interest payments on debt with a notional amount of $78 million at December 31, 2021 and $85 million at December 31, 2020. Gains or losses on these swaps are initially reported in other comprehensive income (loss) and then, as interest payments are made on the hedged debt, are recognized in earnings within interest on long-term debt on CMS Energy’s consolidated statements of income. CMS Energy recorded gains (losses) of $2 million in 2021, $(6) million in 2020, and $(4) million in 2019. There were no material impacts on
interest on long-term debt associated with these swaps during the periods presented. The fair value of these swaps recorded in other liabilities on CMS Energy’s consolidated balance sheets totaled $4 million at December 31, 2021 and $9 million at December 31, 2020. CMS Energy also has other interest rate swaps that economically hedge interest rate risk on debt, but that do not qualify for cash flow hedge accounting; the amounts associated with these swaps were not material for the periods presented.
The majority of derivatives classified as Level 3 are FTRs held by Consumers. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. There was no material activity within the Level 3 categories of assets and liabilities during the periods presented.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Presented in the following table are Consumers’ assets, by level within the fair value hierarchy, reported at fair value on a nonrecurring basis during the year ended December 31, 2021:
In Millions
Level 1Level 2Level 3Gains (Losses)
Assets held for sale$— $15 $— $(4)
In 2021, Consumers wrote down fleet assets held for sale from their carrying amount of $19 million to their fair value, less selling costs, of $15 million, resulting in an impairment charge of $4 million, which was recorded within maintenance and other operating expenses on its consolidated statements of income for the year ended December 31, 2021. The fair value was determined based on the market prices of similar fleet vehicles. For additional information, see Item 8. Financial Statements and Supplementary Data—Notes to the Consolidated Financial Statements—Note 2, Regulatory Matters.
v3.22.0.1
Financial Instruments
 12 Months Ended
Dec. 31, 2021
Financial Instruments [Line Items]  
Financial Instruments Financial Instruments
Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
December 31, 2021December 31, 2020
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $17 $17 $— $— $17 
Liabilities
Long-term debt2
12,419 13,800 1,189 10,656 1,955 12,315 14,601 1,249 11,267 2,085 
Long-term payables3
31 32 — — 32 33 35 — — 35 
Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $17 $17 $— $— $17 
Notes receivable – related party4
104 104 — — 104 107 107 — — 107 
Liabilities
Long-term debt5
8,415 9,410 — 7,455 1,955 8,106 9,801 — 7,716 2,085 
1Includes current portion of long-term accounts receivable of $9 million at December 31, 2021 and $12 million at December 31, 2020.
2Includes current portion of long-term debt of $373 million at December 31, 2021 and $571 million at December 31, 2020.
3Includes current portion of long-term payables of $23 million at December 31, 2021 and $6 million at December 31, 2020.
4Includes current portion of notes receivable – related party of $7 million at December 31, 2021 and 2020.
5Includes current portion of long-term debt of $365 million at December 31, 2021 and $364 million at December 31, 2020.
Consumers Energy Company  
Financial Instruments [Line Items]  
Financial Instruments Financial Instruments
Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
December 31, 2021December 31, 2020
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $17 $17 $— $— $17 
Liabilities
Long-term debt2
12,419 13,800 1,189 10,656 1,955 12,315 14,601 1,249 11,267 2,085 
Long-term payables3
31 32 — — 32 33 35 — — 35 
Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $17 $17 $— $— $17 
Notes receivable – related party4
104 104 — — 104 107 107 — — 107 
Liabilities
Long-term debt5
8,415 9,410 — 7,455 1,955 8,106 9,801 — 7,716 2,085 
1Includes current portion of long-term accounts receivable of $9 million at December 31, 2021 and $12 million at December 31, 2020.
2Includes current portion of long-term debt of $373 million at December 31, 2021 and $571 million at December 31, 2020.
3Includes current portion of long-term payables of $23 million at December 31, 2021 and $6 million at December 31, 2020.
4Includes current portion of notes receivable – related party of $7 million at December 31, 2021 and 2020.
5Includes current portion of long-term debt of $365 million at December 31, 2021 and $364 million at December 31, 2020.
The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028.
v3.22.0.1
Plant, Property, and Equipment
 12 Months Ended
Dec. 31, 2021
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		20212020
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 - 125
$28,771 $26,757 
Enterprises
Independent power production1
2 - 40
1,121 1,112 
Other
3 - 5
1 1 
Plant, property, and equipment, gross$29,893 $27,870 
Construction work in progress961 1,085 
Accumulated depreciation and amortization(8,502)(7,938)
Total plant, property, and equipment2
$22,352 $21,017 
Consumers
Plant, property, and equipment, gross
Electric
Generation
22 - 125
$6,704 $6,376 
Distribution
20 - 75
9,815 9,130 
Other
5 - 50
1,309 1,326 
Assets under finance leases and other financing3
319 323 
Gas
Distribution
20 - 85
6,338 5,702 
Transmission
17 - 75
2,319 2,003 
Underground storage facilities4
27 - 75
1,117 1,046 
Other
5 - 50
814 817 
Assets under finance leases3
13 13 
Other non-utility property
3 - 51
23 21 
Plant, property, and equipment, gross$28,771 $26,757 
Construction work in progress915 1,058 
Accumulated depreciation and amortization(8,371)(7,844)
Total plant, property, and equipment2
$21,315 $19,971 
1A significant 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 and Palisades Financing.
2Consumers’ plant additions were $2.4 billion for the year ended December 31, 2021 and $2.0 billion for the year ended December 31, 2020. Consumers’ plant retirements, which include the impact of disallowances and transfers to held for sale, were $361 million for the year ended December 31, 2021, and $220 million for the year ended December 31, 2020.
3For information regarding the amortization terms of Consumers’ assets under finance leases and other financing, see Note 8, Leases and Palisades Financing.
4Underground storage includes base natural gas of $26 million at December 31, 2021 and 2020. Base natural gas is not subject to depreciation.
Intangible Assets: Included in net plant, property, and equipment are intangible assets. Presented in the following table are details about CMS Energy’s and Consumers’ intangible assets:
In Millions
DescriptionAmortization
Life in Years		December 31, 2021December 31, 2020
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
CMS Energy, including Consumers
Software development
3 - 15
$840 $592 $856 $568 
Rights of way
50 - 85
211 60 197 57 
Franchises and consents
5 - 50
16 10 16 10 
Leasehold improvements
various2
9 6 10 7 
Other intangiblesvarious26 16 26 16 
Total$1,102 $684 $1,105 $658 
Consumers
Software development
3 - 15
$840 $592 $856 $568 
Rights of way
50 - 85
211 60 197 57 
Franchises and consents
5 - 50
16 10 16 10 
Leasehold improvements
various2
9 6 10 7 
Other intangiblesvarious26 16 25 16 
Total$1,102 $684 $1,104 $658 
1Consumers’ intangible asset additions were $88 million for the year ended December 31, 2021 and $69 million for the year ended December 31, 2020. Consumers’ intangible asset retirements were $91 million for the year ended December 31, 2021 and $65 million for the year ended December 31, 2020.
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, except pollution control facilities on its fossil-fuel-fired power plants. 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 31202120202019
Electric6.2 %6.9 %6.4 %
Gas5.6 5.7 5.8 
Assets Under Finance Leases and Other Financing: Presented in the following table are further details about changes in Consumers’ assets under finance leases and other financing:
In Millions
Years Ended December 3120212020
Consumers
Balance at beginning of period$336 $340 
Additions— — 
Net retirements and other adjustments(4)(4)
Balance at end of period$332 $336 
Assets under finance leases and other financing are presented as gross amounts. Consumers’ accumulated amortization of assets under finance leases and other financing was $272 million at December 31, 2021 and $254 million at December 31, 2020.
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 3120212020
CMS Energy, including Consumers
Utility plant assets$8,366 $7,841 
Non-utility plant assets136 97 
Consumers
Utility plant assets$8,366 $7,841 
Non-utility plant assets5 3 
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 31202120202019
Electric utility property3.9 %3.9 %3.9 %
Gas utility property2.9 2.9 2.9 
Other property9.4 9.8 10.0 
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 31202120202019
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$975 $901 $841 
Amortization expense
Software108 112 119 
Other intangible assets4 4 3 
Securitized regulatory assets27 26 26 
Total depreciation and amortization expense$1,114 $1,043 $989 
Consumers
Depreciation expense – plant, property, and equipment$938 $881 $827 
Amortization expense
Software108 112 119 
Other intangible assets4 4 3 
Securitized regulatory assets27 26 26 
Total depreciation and amortization expense$1,077 $1,023 $975 
Presented in the following table is CMS Energy’s and Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20222023202420252026
CMS Energy, including Consumers
Intangible asset amortization expense$108 $94 $84 $86 $84 
Consumers
Intangible asset amortization expense$108 $94 $84 $86 $84 
Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2021:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3 %51.0 %various
Utility plant in service$1,751 $499 $395 
Accumulated depreciation(897)(198)(112)
Construction work in progress21 92 13 
Net investment$875 $393 $296 
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 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		20212020
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 - 125
$28,771 $26,757 
Enterprises
Independent power production1
2 - 40
1,121 1,112 
Other
3 - 5
1 1 
Plant, property, and equipment, gross$29,893 $27,870 
Construction work in progress961 1,085 
Accumulated depreciation and amortization(8,502)(7,938)
Total plant, property, and equipment2
$22,352 $21,017 
Consumers
Plant, property, and equipment, gross
Electric
Generation
22 - 125
$6,704 $6,376 
Distribution
20 - 75
9,815 9,130 
Other
5 - 50
1,309 1,326 
Assets under finance leases and other financing3
319 323 
Gas
Distribution
20 - 85
6,338 5,702 
Transmission
17 - 75
2,319 2,003 
Underground storage facilities4
27 - 75
1,117 1,046 
Other
5 - 50
814 817 
Assets under finance leases3
13 13 
Other non-utility property
3 - 51
23 21 
Plant, property, and equipment, gross$28,771 $26,757 
Construction work in progress915 1,058 
Accumulated depreciation and amortization(8,371)(7,844)
Total plant, property, and equipment2
$21,315 $19,971 
1A significant 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 and Palisades Financing.
2Consumers’ plant additions were $2.4 billion for the year ended December 31, 2021 and $2.0 billion for the year ended December 31, 2020. Consumers’ plant retirements, which include the impact of disallowances and transfers to held for sale, were $361 million for the year ended December 31, 2021, and $220 million for the year ended December 31, 2020.
3For information regarding the amortization terms of Consumers’ assets under finance leases and other financing, see Note 8, Leases and Palisades Financing.
4Underground storage includes base natural gas of $26 million at December 31, 2021 and 2020. Base natural gas is not subject to depreciation.
Intangible Assets: Included in net plant, property, and equipment are intangible assets. Presented in the following table are details about CMS Energy’s and Consumers’ intangible assets:
In Millions
DescriptionAmortization
Life in Years		December 31, 2021December 31, 2020
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
CMS Energy, including Consumers
Software development
3 - 15
$840 $592 $856 $568 
Rights of way
50 - 85
211 60 197 57 
Franchises and consents
5 - 50
16 10 16 10 
Leasehold improvements
various2
9 6 10 7 
Other intangiblesvarious26 16 26 16 
Total$1,102 $684 $1,105 $658 
Consumers
Software development
3 - 15
$840 $592 $856 $568 
Rights of way
50 - 85
211 60 197 57 
Franchises and consents
5 - 50
16 10 16 10 
Leasehold improvements
various2
9 6 10 7 
Other intangiblesvarious26 16 25 16 
Total$1,102 $684 $1,104 $658 
1Consumers’ intangible asset additions were $88 million for the year ended December 31, 2021 and $69 million for the year ended December 31, 2020. Consumers’ intangible asset retirements were $91 million for the year ended December 31, 2021 and $65 million for the year ended December 31, 2020.
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, except pollution control facilities on its fossil-fuel-fired power plants. 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 31202120202019
Electric6.2 %6.9 %6.4 %
Gas5.6 5.7 5.8 
Assets Under Finance Leases and Other Financing: Presented in the following table are further details about changes in Consumers’ assets under finance leases and other financing:
In Millions
Years Ended December 3120212020
Consumers
Balance at beginning of period$336 $340 
Additions— — 
Net retirements and other adjustments(4)(4)
Balance at end of period$332 $336 
Assets under finance leases and other financing are presented as gross amounts. Consumers’ accumulated amortization of assets under finance leases and other financing was $272 million at December 31, 2021 and $254 million at December 31, 2020.
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 3120212020
CMS Energy, including Consumers
Utility plant assets$8,366 $7,841 
Non-utility plant assets136 97 
Consumers
Utility plant assets$8,366 $7,841 
Non-utility plant assets5 3 
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 31202120202019
Electric utility property3.9 %3.9 %3.9 %
Gas utility property2.9 2.9 2.9 
Other property9.4 9.8 10.0 
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 31202120202019
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$975 $901 $841 
Amortization expense
Software108 112 119 
Other intangible assets4 4 3 
Securitized regulatory assets27 26 26 
Total depreciation and amortization expense$1,114 $1,043 $989 
Consumers
Depreciation expense – plant, property, and equipment$938 $881 $827 
Amortization expense
Software108 112 119 
Other intangible assets4 4 3 
Securitized regulatory assets27 26 26 
Total depreciation and amortization expense$1,077 $1,023 $975 
Presented in the following table is CMS Energy’s and Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20222023202420252026
CMS Energy, including Consumers
Intangible asset amortization expense$108 $94 $84 $86 $84 
Consumers
Intangible asset amortization expense$108 $94 $84 $86 $84 
Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2021:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3 %51.0 %various
Utility plant in service$1,751 $499 $395 
Accumulated depreciation(897)(198)(112)
Construction work in progress21 92 13 
Net investment$875 $393 $296 
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.
v3.22.0.1
Leases and Palisades Financing
 12 Months Ended
Dec. 31, 2021
Leases [Line Items]  
Leases and Palisades Financing Leases and Palisades Financing
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 312021202020212020
Operating leases
Right-of-use assets1
$26$32$22$28
Lease liabilities
Current lease liabilities2
3737
Non-current lease liabilities3
23251921
Finance leases
Right-of-use assets$57$65$57$65
Lease liabilities4
Current lease liabilities6767
Non-current lease liabilities46534653
Weighted-average remaining lease term (in years)
Operating leases23192118
Finance leases12121212
Weighted-average discount rate
Operating leases4.0 %3.9 %3.9 %3.8 %
Finance leases5
1.7 %1.8 %1.7 %1.8 %
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 $25 million, of which less than $1 million was current, at December 31, 2021 and 2020.
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 3120212020
CMS Energy, including Consumers
Operating lease costs$8 $9 
Finance lease costs
Amortization of right-of-use assets7 6 
Interest on lease liabilities16 17 
Variable lease costs90 94 
Short-term lease costs22 17 
Total lease costs$143 $143 
Consumers
Operating lease costs$8 $9 
Finance lease costs
Amortization of right-of-use assets7 6 
Interest on lease liabilities16 17 
Variable lease costs90 94 
Short-term lease costs21 16 
Total lease costs$142 $142 
Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120212020
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$8 $11 
Cash used in operating activities for finance leases16 17 
Cash used in financing activities for finance leases7 6 
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$8 $9 
Cash used in operating activities for finance leases16 17 
Cash used in financing activities for finance leases7 6 
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, 2021Operating LeasesPipelines and PPAsOtherTotal
CMS Energy, including Consumers
2022$5 $14 $5 $19 
20232 13 5 18 
20242 13 3 16 
20251 13 1 14 
20261 13 2 15 
2027 and thereafter32 51 9 60 
Total minimum lease payments$43 $117 $25 $142 
Less discount17 88 2 90 
Present value of minimum lease payments$26 $29 $23 $52 
Consumers
2022$4 $14 $5 $19 
20232 13 5 18 
20241 13 3 16 
20251 13 1 14 
20261 13 2 15 
2027 and thereafter27 51 9 60 
Total minimum lease payments$36 $117 $25 $142 
Less discount14 88 2 90 
Present value of minimum lease payments$22 $29 $23 $52 
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, 2021, lease revenue from these power sales agreements was $194 million, which included variable lease payments of $138 million. For the year ended December 31, 2020, lease revenue from these power sales agreements was $148 million, which included variable lease payments of $93 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, 2021
2022$48 
202343 
202443 
202544 
202618 
Total minimum lease payments$196 
Consumers has an agreement to build, own, operate, and maintain a compressed natural gas fueling station through December 2038. This agreement is accounted for as a direct finance lease, under which the lessee has the option to purchase the natural gas fueling station at the end of the lease term. Fixed monthly payments escalate annually with inflation.
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 leases are $1 million for each of the next five years and $17 million for the years thereafter. The lease receivable was $10 million as of December 31, 2021, which does not include unearned income of $12 million.
Minimum rental payments to be received under CMS Energy’s direct finance lease are less than $1 million for each of the next five years and $6 million for the years thereafter. The lease receivable was $5 million as of December 31, 2021, which does not include unearned income of $4 million.
Palisades Financing
In 2007, Consumers sold Palisades to Entergy and entered into a 15-year PPA to purchase virtually all of the capacity and energy produced by Palisades, up to the annual average capacity of 798 MW. Consumers accounted for this transaction as a financing because of its continuing involvement with Palisades through security provided to Entergy for the PPA obligation and other arrangements. Palisades has therefore remained on Consumers’ consolidated balance sheets and Consumers has continued to depreciate it. At the time of the sale, Consumers recorded the sales proceeds as a financing obligation, and has subsequently recorded a portion of the payments under the PPA as interest expense and as a reduction of the financing obligation.
Total amortization and interest charges under the financing were $14 million for the years ended December 31, 2021 and 2020, and $15 million for the year ended December 31, 2019. At December 31, 2021, the Palisades asset and financing obligation both had a balance of $3 million. The finance obligation reflects Consumers’ remaining minimum Palisades PPA payments.
Consumers Energy Company  
Leases [Line Items]  
Leases and Palisades Financing Leases and Palisades Financing
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 312021202020212020
Operating leases
Right-of-use assets1
$26$32$22$28
Lease liabilities
Current lease liabilities2
3737
Non-current lease liabilities3
23251921
Finance leases
Right-of-use assets$57$65$57$65
Lease liabilities4
Current lease liabilities6767
Non-current lease liabilities46534653
Weighted-average remaining lease term (in years)
Operating leases23192118
Finance leases12121212
Weighted-average discount rate
Operating leases4.0 %3.9 %3.9 %3.8 %
Finance leases5
1.7 %1.8 %1.7 %1.8 %
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 $25 million, of which less than $1 million was current, at December 31, 2021 and 2020.
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 3120212020
CMS Energy, including Consumers
Operating lease costs$8 $9 
Finance lease costs
Amortization of right-of-use assets7 6 
Interest on lease liabilities16 17 
Variable lease costs90 94 
Short-term lease costs22 17 
Total lease costs$143 $143 
Consumers
Operating lease costs$8 $9 
Finance lease costs
Amortization of right-of-use assets7 6 
Interest on lease liabilities16 17 
Variable lease costs90 94 
Short-term lease costs21 16 
Total lease costs$142 $142 
Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120212020
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$8 $11 
Cash used in operating activities for finance leases16 17 
Cash used in financing activities for finance leases7 6 
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$8 $9 
Cash used in operating activities for finance leases16 17 
Cash used in financing activities for finance leases7 6 
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, 2021Operating LeasesPipelines and PPAsOtherTotal
CMS Energy, including Consumers
2022$5 $14 $5 $19 
20232 13 5 18 
20242 13 3 16 
20251 13 1 14 
20261 13 2 15 
2027 and thereafter32 51 9 60 
Total minimum lease payments$43 $117 $25 $142 
Less discount17 88 2 90 
Present value of minimum lease payments$26 $29 $23 $52 
Consumers
2022$4 $14 $5 $19 
20232 13 5 18 
20241 13 3 16 
20251 13 1 14 
20261 13 2 15 
2027 and thereafter27 51 9 60 
Total minimum lease payments$36 $117 $25 $142 
Less discount14 88 2 90 
Present value of minimum lease payments$22 $29 $23 $52 
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, 2021, lease revenue from these power sales agreements was $194 million, which included variable lease payments of $138 million. For the year ended December 31, 2020, lease revenue from these power sales agreements was $148 million, which included variable lease payments of $93 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, 2021
2022$48 
202343 
202443 
202544 
202618 
Total minimum lease payments$196 
Consumers has an agreement to build, own, operate, and maintain a compressed natural gas fueling station through December 2038. This agreement is accounted for as a direct finance lease, under which the lessee has the option to purchase the natural gas fueling station at the end of the lease term. Fixed monthly payments escalate annually with inflation.
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 leases are $1 million for each of the next five years and $17 million for the years thereafter. The lease receivable was $10 million as of December 31, 2021, which does not include unearned income of $12 million.
Minimum rental payments to be received under CMS Energy’s direct finance lease are less than $1 million for each of the next five years and $6 million for the years thereafter. The lease receivable was $5 million as of December 31, 2021, which does not include unearned income of $4 million.
Palisades Financing
In 2007, Consumers sold Palisades to Entergy and entered into a 15-year PPA to purchase virtually all of the capacity and energy produced by Palisades, up to the annual average capacity of 798 MW. Consumers accounted for this transaction as a financing because of its continuing involvement with Palisades through security provided to Entergy for the PPA obligation and other arrangements. Palisades has therefore remained on Consumers’ consolidated balance sheets and Consumers has continued to depreciate it. At the time of the sale, Consumers recorded the sales proceeds as a financing obligation, and has subsequently recorded a portion of the payments under the PPA as interest expense and as a reduction of the financing obligation.
Total amortization and interest charges under the financing were $14 million for the years ended December 31, 2021 and 2020, and $15 million for the year ended December 31, 2019. At December 31, 2021, the Palisades asset and financing obligation both had a balance of $3 million. The finance obligation reflects Consumers’ remaining minimum Palisades PPA payments.
v3.22.0.1
Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2021
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:
Company and ARO DescriptionIn-Service DateLong-Lived Assets
CMS Energy, including Consumers
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
Consumers
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
No assets have been restricted for purposes of settling AROs.
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2020IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2021
CMS Energy, including Consumers
Consumers$530 $71 $(53)$24 $33 $605 
Renewable generation assets23 — — — — 23 
Total CMS Energy$553 $71 $(53)$24 $33 $628 
Consumers
Coal ash disposal areas$148 $— $(34)$5 $38 $157 
Gas distribution cut, purge, and cap240 39 (10)13 — 282 
Asbestos abatement36 — — 2 — 38 
Renewable generation assets74 16 — 3 — 93 
Gas wells plug and abandon32 16 (9)1 (5)35 
Total Consumers$530 $71 $(53)$24 $33 $605 
In Millions
Company and ARO DescriptionARO Liability 12/31/2019IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2020
CMS Energy, including Consumers
Consumers$474 $46 $(41)$23 $28 $530 
Renewable generation assets3 19 — 1 — 23 
Total CMS Energy$477 $65 $(41)$24 $28 $553 
Consumers
Coal ash disposal areas$166 $— $(24)$6 $— $148 
Gas distribution cut, purge, and cap231 1 (5)13 — 240 
Asbestos abatement34 — — 2 — 36 
Renewable generation assets21 24 — 1 28 74 
Gas wells plug and abandon22 16 (7)1 — 32 
Cable under Straits of Mackinac— 5 (5)— — — 
Total Consumers$474 $46 $(41)$23 $28 $530 
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:
Company and ARO DescriptionIn-Service DateLong-Lived Assets
CMS Energy, including Consumers
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
Consumers
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
No assets have been restricted for purposes of settling AROs.
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2020IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2021
CMS Energy, including Consumers
Consumers$530 $71 $(53)$24 $33 $605 
Renewable generation assets23 — — — — 23 
Total CMS Energy$553 $71 $(53)$24 $33 $628 
Consumers
Coal ash disposal areas$148 $— $(34)$5 $38 $157 
Gas distribution cut, purge, and cap240 39 (10)13 — 282 
Asbestos abatement36 — — 2 — 38 
Renewable generation assets74 16 — 3 — 93 
Gas wells plug and abandon32 16 (9)1 (5)35 
Total Consumers$530 $71 $(53)$24 $33 $605 
In Millions
Company and ARO DescriptionARO Liability 12/31/2019IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2020
CMS Energy, including Consumers
Consumers$474 $46 $(41)$23 $28 $530 
Renewable generation assets3 19 — 1 — 23 
Total CMS Energy$477 $65 $(41)$24 $28 $553 
Consumers
Coal ash disposal areas$166 $— $(24)$6 $— $148 
Gas distribution cut, purge, and cap231 1 (5)13 — 240 
Asbestos abatement34 — — 2 — 36 
Renewable generation assets21 24 — 1 28 74 
Gas wells plug and abandon22 16 (7)1 — 32 
Cable under Straits of Mackinac— 5 (5)— — — 
Total Consumers$474 $46 $(41)$23 $28 $530 
v3.22.0.1
Retirement Benefits
 12 Months Ended
Dec. 31, 2021
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.
In November 2021, CMS Energy and Consumers determined that 2021 lump-sum payments to retired employees under DB Pension Plan A would exceed the plan’s service cost and interest cost components of net periodic cost for the year. These lump-sum payments constitute pension plan liability settlements; once such settlements meet the service and interest cost threshold, recognition in earnings is required. As a result, in accordance with GAAP, CMS Energy, including Consumers, performed a remeasurement of DB Pension Plan A as of October 31, 2021 and recognized a settlement loss of $18 million; $18 million of this amount was recognized by Consumers and deferred as a regulatory asset. At December 31, 2021, CMS Energy, including Consumers, recognized an additional settlement loss of $4 million for the period November 1, 2021 to December 31, 2021; $3 million of this amount was recognized by Consumers and deferred as a regulatory asset. CMS Energy and Consumers will amortize the regulatory asset over eight years.
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 $41 million for the year ended December 31, 2021, $31 million for the year ended December 31, 2020, and $29 million for the year ended December 31, 2019. DCCP expense for Consumers was $41 million for the year ended December 31, 2021, $31 million for the year ended December 31, 2020, and $28 million for the year ended December 31, 2019.
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, ABO, and contributions for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120212020
CMS Energy, including Consumers
Trust assets$142 $146 
ABO149 159 
Contributions— 8 
Consumers
Trust assets$104 $107 
ABO108 115 
Contributions— 5 
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 $13 million at December 31, 2021 and $11 million at December 31, 2020. 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 $2 million for the years ended December 31, 2021, 2020, and 2019.
401(k) Plan: The 401(k) plan employer match equals 100 percent of eligible contributions up to the first three percent of an employee’s wages and 50 percent of eligible contributions up to the next two percent of an employee’s wages. The total 401(k) plan cost for CMS Energy, including Consumers, was $31 million for the year ended December 31, 2021, $29 million for the year ended December 31, 2020, and $28 million for the year ended December 31, 2019. The total 401(k) plan cost for Consumers was $31 million for the year ended December 31, 2021, $29 million for the year ended December 31, 2020, and $27 million for the year ended December 31, 2019.
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 ten 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 6.25 percent in 2022 and 6.50 percent in 2021 for those under 65 and would increase 6.75 percent in 2022 and 7.00 percent in 2021 for those over 65. The rate of increase was assumed to decline to 4.75 percent by 2028 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 31202120202019
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A3.02 %2.73 %3.37 %
DB Pension Plan B2.79 2.41 3.17 
DB SERP2.78 2.40 3.15 
OPEB Plan2.99 2.69 3.32 
Rate of compensation increase
DB Pension Plan A3.60 3.70 3.50 
DB SERP5.50 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A2.83 %3.44 %4.55 %
DB SERP2.84 3.46 4.58 
OPEB Plan3.03 3.57 4.63 
Interest cost discount rate2,3
DB Pension Plan A1.97 2.92 4.08 
DB Pension Plan B1.70 2.74 3.93 
DB SERP1.72 2.74 3.94 
OPEB Plan1.99 2.88 4.03 
Expected long-term rate of return on plan assets4
DB Pension Plans6.75 6.75 7.00 
OPEB Plan6.75 6.75 7.00 
Rate of compensation increase
DB Pension Plan A3.70 3.50 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 scales MP-2021 for 2021, MP-2020 for 2020, and MP-2019 for 2019. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table for 2021 and 2020 and the RP-2014 Mortality Table for 2019, with improvement scales MP-2020 for 2021, MP-2019 for 2020, and MP-2018 for 2019.
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.
3CMS 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.
4CMS 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 6.75 percent in 2021. The actual return on the assets of the DB Pension Plans was 12.0 percent in 2021, 13.6 percent in 2020, and 21.0 percent in 2019.
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 31202120202019202120202019
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$53 $50 $41 $18 $16 $14 
Interest cost63 83 103 23 33 41 
Settlement loss1 1 — — — — 
Expected return on plan assets(208)(191)(162)(109)(100)(88)
Amortization of:
Net loss100 95 50 8 15 26 
Prior service cost (credit)4 1 1 (53)(56)(62)
Settlement loss6 2 — — — — 
Net periodic cost (credit)$19 $41 $33 $(113)$(92)$(69)
Consumers
Net periodic cost (credit)
Service cost$51 $49 $40 $17 $15 $13 
Interest cost59 78 97 23 31 40 
Expected return on plan assets(197)(181)(153)(102)(93)(82)
Amortization of:
Net loss96 90 47 8 15 26 
Prior service cost (credit)4 1 1 (51)(54)(61)
Settlement loss6 2 — — — — 
Net periodic cost (credit)$19 $39 $32 $(105)$(86)$(64)
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, 2021 and 2020, and nine years for the year ended December 31, 2019. For DB Pension Plan B, the estimated period of amortization of gains and losses was 18 years for the year ended December 31, 2021, 19 years for the year ended December 31, 2020, and 20 years for the year ended December 31, 2019. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2021 and 2020, and ten years for the year ended December 31, 2019.
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 DB Pension Plan A 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 31202120202021202020212020
CMS Energy, including Consumers
Benefit obligation at beginning of period$3,266 $2,973 $160 $150 $1,205 $1,165 
Service cost53 50 — — 18 16 
Interest cost60 79 3 4 23 33 
Plan amendments— 24 — — 5 — 
Actuarial loss (gain)(108)
1
355 
1
(4)16 (32)
1
39 
1
Benefits paid(201)(215)(10)(10)(53)(48)
Benefit obligation at end of period$3,070 $3,266 $149 $160 $1,166 $1,205 
Plan assets at fair value at beginning of period$3,402 $2,546 $— $— $1,645 $1,509 
Actual return on plan assets398 371 — — 194 182 
Company contribution— 700 10 10 — 1 
Actual benefits paid(201)(215)(10)(10)(52)(47)
Plan assets at fair value at end of period$3,599 $3,402 $— $— $1,787 $1,645 
Funded status$529 
2
$136 
2
$(149)$(160)$621 $440 
Consumers
Benefit obligation at beginning of period$117 $109 $1,158 $1,120 
Service cost— — 17 15 
Interest cost2 3 23 31 
Plan amendments— — 5 — 
Actuarial loss (gain)(3)12 (30)
1
37 
1
Benefits paid(7)(7)(51)(45)
Benefit obligation at end of period$109 $117 $1,122 $1,158 
Plan assets at fair value at beginning of period$— $— $1,535 $1,410 
Actual return on plan assets— — 182 169 
Company contribution7 7 — 1 
Actual benefits paid(7)(7)(49)(45)
Plan assets at fair value at end of period$— $— $1,668 $1,535 
Funded status$(109)$(117)$546 $377 
1The actuarial gains for 2021 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates. The actuarial loss for 2020 for the DB Pension Plans was primarily the result of lower discount rates and lower interest rates used to calculate the value of lump-sum payments. The actuarial loss for 2020 for the OPEB Plan was primarily the result of lower discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $510 million at December 31, 2021 and $138 million at December 31, 2020.
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120212020
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$529 $136 
OPEB Plan621 440 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP139 150 
Consumers
Non-current assets
DB Pension Plans$510 $138 
OPEB Plan546 377 
Current liabilities
DB SERP7 7 
Non-current liabilities
DB SERP102 110 
The ABO for the DB Pension Plans was $2.7 billion at December 31, 2021 and $2.9 billion at December 31, 2020. At December 31, 2021 and 2020, 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, regulatory liabilities, and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets and regulatory liabilities, see Note 2, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312021202020212020
CMS Energy, including Consumers
Regulatory assets (liabilities)
Net loss$812 $1,194 $136 $254 
Prior service cost (credit)25 29 (190)(246)
Regulatory assets (liabilities)$837 $1,223 $(54)$8 
AOCI
Net loss (gain)94 120 (17)(10)
Prior service cost (credit)— 1 (5)(6)
Total amounts recognized in regulatory assets (liabilities) and AOCI$931 $1,344 $(76)$(8)
Consumers
Regulatory assets (liabilities)
Net loss$812 $1,194 $136 $254 
Prior service cost (credit)25 29 (190)(246)
Regulatory assets (liabilities)$837 $1,223 $(54)$8 
AOCI
Net loss41 47 — — 
Total amounts recognized in regulatory assets (liabilities) and AOCI$878 $1,270 $(54)$8 
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, 2021December 31, 2020
TotalLevel 1Level 2TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$30 $30 $— $115 $115 $— 
U.S. government and agencies securities209 — 209 150 — 150 
Corporate debt595 — 595 540 — 540 
State and municipal bonds13 — 13 11 — 11 
Foreign corporate bonds66 — 66 41 — 41 
Mutual funds785 785 — 971 971 — 
$1,698 $815 $883 $1,828 $1,086 $742 
Pooled funds1,901 1,574 
Total$3,599 $3,402 
In Millions
OPEB Plan
December 31, 2021December 31, 2020
TotalLevel 1Level 2TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$21 $21 $— $33 $33 $— 
U.S. government and agencies securities25 — 25 18 — 18 
Corporate debt73 — 73 64 — 64 
State and municipal bonds2 — 2 2 — 2 
Foreign corporate bonds8 — 8 5 — 5 
Common stocks85 85 — 66 66 — 
Mutual funds941 941 — 807 807 — 
$1,155 $1,047 $108 $995 $906 $89 
Pooled funds632 650 
Total$1,787 $1,645 
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. 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, 2021:
DB Pension PlansOPEB Plan
Equity securities54.0 %55.0 %
Fixed-income securities28.0 28.0 
Real asset investments12.0 12.0 
Multi-asset investments5.0 4.0 
Cash and Cash Equivalents1.0 1.0 
100.0 %100.0 %
CMS Energy’s target 2021 asset allocation for the assets of the DB Pension Plans was 54 percent equity, 29 percent fixed income, 12 percent real assets, and five percent multi-asset investments.
CMS Energy established union and non‑union VEBA trusts to fund future retiree health and life insurance benefits. These trusts are funded through the ratemaking process for Consumers and through direct contributions from the non‑utility subsidiaries. CMS Energy’s target 2021 asset allocation for the health trusts was 55 percent equity, 30 percent fixed income, 12 percent real assets, and three percent multi-asset investments. CMS Energy’s target asset allocation for the life trusts was 53 percent equity, 32 percent fixed income, and 15 percent multi-asset investments.
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. Real asset investments are diversified across real estate investment trusts, public infrastructure, and public resource equity. Multi-asset investments are global tactical asset allocations.
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: Presented in the following table are the contributions to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan:
In Millions
Years Ended December 3120212020
CMS Energy, including Consumers
DB Pension Plans$— $700 
OPEB Plan— 1 
Consumers
DB Pension Plans$— $682 
OPEB Plan— 1 
Contributions comprise required amounts and discretionary contributions. Neither CMS Energy nor Consumers plans to contribute to the DB Pension Plans or OPEB Plan in 2022. 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
2022$185 $10 $52 
2023181 10 54 
2024178 10 56 
2025180 10 58 
2026178 9 59 
2027-2031876 45 308 
Consumers
2022$175 $7 $49 
2023171 7 52 
2024169 7 54 
2025170 7 55 
2026169 6 56 
2027-2031830 31 294 
Collective Bargaining Agreements: At December 31, 2021, unions represented 41 percent of CMS Energy’s employees and 42 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 expired and new agreements were ratified in 2020. These union contracts 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.
In November 2021, CMS Energy and Consumers determined that 2021 lump-sum payments to retired employees under DB Pension Plan A would exceed the plan’s service cost and interest cost components of net periodic cost for the year. These lump-sum payments constitute pension plan liability settlements; once such settlements meet the service and interest cost threshold, recognition in earnings is required. As a result, in accordance with GAAP, CMS Energy, including Consumers, performed a remeasurement of DB Pension Plan A as of October 31, 2021 and recognized a settlement loss of $18 million; $18 million of this amount was recognized by Consumers and deferred as a regulatory asset. At December 31, 2021, CMS Energy, including Consumers, recognized an additional settlement loss of $4 million for the period November 1, 2021 to December 31, 2021; $3 million of this amount was recognized by Consumers and deferred as a regulatory asset. CMS Energy and Consumers will amortize the regulatory asset over eight years.
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 $41 million for the year ended December 31, 2021, $31 million for the year ended December 31, 2020, and $29 million for the year ended December 31, 2019. DCCP expense for Consumers was $41 million for the year ended December 31, 2021, $31 million for the year ended December 31, 2020, and $28 million for the year ended December 31, 2019.
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, ABO, and contributions for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120212020
CMS Energy, including Consumers
Trust assets$142 $146 
ABO149 159 
Contributions— 8 
Consumers
Trust assets$104 $107 
ABO108 115 
Contributions— 5 
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 $13 million at December 31, 2021 and $11 million at December 31, 2020. 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 $2 million for the years ended December 31, 2021, 2020, and 2019.
401(k) Plan: The 401(k) plan employer match equals 100 percent of eligible contributions up to the first three percent of an employee’s wages and 50 percent of eligible contributions up to the next two percent of an employee’s wages. The total 401(k) plan cost for CMS Energy, including Consumers, was $31 million for the year ended December 31, 2021, $29 million for the year ended December 31, 2020, and $28 million for the year ended December 31, 2019. The total 401(k) plan cost for Consumers was $31 million for the year ended December 31, 2021, $29 million for the year ended December 31, 2020, and $27 million for the year ended December 31, 2019.
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 ten 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 6.25 percent in 2022 and 6.50 percent in 2021 for those under 65 and would increase 6.75 percent in 2022 and 7.00 percent in 2021 for those over 65. The rate of increase was assumed to decline to 4.75 percent by 2028 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 31202120202019
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A3.02 %2.73 %3.37 %
DB Pension Plan B2.79 2.41 3.17 
DB SERP2.78 2.40 3.15 
OPEB Plan2.99 2.69 3.32 
Rate of compensation increase
DB Pension Plan A3.60 3.70 3.50 
DB SERP5.50 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A2.83 %3.44 %4.55 %
DB SERP2.84 3.46 4.58 
OPEB Plan3.03 3.57 4.63 
Interest cost discount rate2,3
DB Pension Plan A1.97 2.92 4.08 
DB Pension Plan B1.70 2.74 3.93 
DB SERP1.72 2.74 3.94 
OPEB Plan1.99 2.88 4.03 
Expected long-term rate of return on plan assets4
DB Pension Plans6.75 6.75 7.00 
OPEB Plan6.75 6.75 7.00 
Rate of compensation increase
DB Pension Plan A3.70 3.50 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 scales MP-2021 for 2021, MP-2020 for 2020, and MP-2019 for 2019. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table for 2021 and 2020 and the RP-2014 Mortality Table for 2019, with improvement scales MP-2020 for 2021, MP-2019 for 2020, and MP-2018 for 2019.
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.
3CMS 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.
4CMS 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 6.75 percent in 2021. The actual return on the assets of the DB Pension Plans was 12.0 percent in 2021, 13.6 percent in 2020, and 21.0 percent in 2019.
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 31202120202019202120202019
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$53 $50 $41 $18 $16 $14 
Interest cost63 83 103 23 33 41 
Settlement loss1 1 — — — — 
Expected return on plan assets(208)(191)(162)(109)(100)(88)
Amortization of:
Net loss100 95 50 8 15 26 
Prior service cost (credit)4 1 1 (53)(56)(62)
Settlement loss6 2 — — — — 
Net periodic cost (credit)$19 $41 $33 $(113)$(92)$(69)
Consumers
Net periodic cost (credit)
Service cost$51 $49 $40 $17 $15 $13 
Interest cost59 78 97 23 31 40 
Expected return on plan assets(197)(181)(153)(102)(93)(82)
Amortization of:
Net loss96 90 47 8 15 26 
Prior service cost (credit)4 1 1 (51)(54)(61)
Settlement loss6 2 — — — — 
Net periodic cost (credit)$19 $39 $32 $(105)$(86)$(64)
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, 2021 and 2020, and nine years for the year ended December 31, 2019. For DB Pension Plan B, the estimated period of amortization of gains and losses was 18 years for the year ended December 31, 2021, 19 years for the year ended December 31, 2020, and 20 years for the year ended December 31, 2019. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2021 and 2020, and ten years for the year ended December 31, 2019.
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 DB Pension Plan A 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 31202120202021202020212020
CMS Energy, including Consumers
Benefit obligation at beginning of period$3,266 $2,973 $160 $150 $1,205 $1,165 
Service cost53 50 — — 18 16 
Interest cost60 79 3 4 23 33 
Plan amendments— 24 — — 5 — 
Actuarial loss (gain)(108)
1
355 
1
(4)16 (32)
1
39 
1
Benefits paid(201)(215)(10)(10)(53)(48)
Benefit obligation at end of period$3,070 $3,266 $149 $160 $1,166 $1,205 
Plan assets at fair value at beginning of period$3,402 $2,546 $— $— $1,645 $1,509 
Actual return on plan assets398 371 — — 194 182 
Company contribution— 700 10 10 — 1 
Actual benefits paid(201)(215)(10)(10)(52)(47)
Plan assets at fair value at end of period$3,599 $3,402 $— $— $1,787 $1,645 
Funded status$529 
2
$136 
2
$(149)$(160)$621 $440 
Consumers
Benefit obligation at beginning of period$117 $109 $1,158 $1,120 
Service cost— — 17 15 
Interest cost2 3 23 31 
Plan amendments— — 5 — 
Actuarial loss (gain)(3)12 (30)
1
37 
1
Benefits paid(7)(7)(51)(45)
Benefit obligation at end of period$109 $117 $1,122 $1,158 
Plan assets at fair value at beginning of period$— $— $1,535 $1,410 
Actual return on plan assets— — 182 169 
Company contribution7 7 — 1 
Actual benefits paid(7)(7)(49)(45)
Plan assets at fair value at end of period$— $— $1,668 $1,535 
Funded status$(109)$(117)$546 $377 
1The actuarial gains for 2021 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates. The actuarial loss for 2020 for the DB Pension Plans was primarily the result of lower discount rates and lower interest rates used to calculate the value of lump-sum payments. The actuarial loss for 2020 for the OPEB Plan was primarily the result of lower discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $510 million at December 31, 2021 and $138 million at December 31, 2020.
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120212020
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$529 $136 
OPEB Plan621 440 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP139 150 
Consumers
Non-current assets
DB Pension Plans$510 $138 
OPEB Plan546 377 
Current liabilities
DB SERP7 7 
Non-current liabilities
DB SERP102 110 
The ABO for the DB Pension Plans was $2.7 billion at December 31, 2021 and $2.9 billion at December 31, 2020. At December 31, 2021 and 2020, 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, regulatory liabilities, and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets and regulatory liabilities, see Note 2, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312021202020212020
CMS Energy, including Consumers
Regulatory assets (liabilities)
Net loss$812 $1,194 $136 $254 
Prior service cost (credit)25 29 (190)(246)
Regulatory assets (liabilities)$837 $1,223 $(54)$8 
AOCI
Net loss (gain)94 120 (17)(10)
Prior service cost (credit)— 1 (5)(6)
Total amounts recognized in regulatory assets (liabilities) and AOCI$931 $1,344 $(76)$(8)
Consumers
Regulatory assets (liabilities)
Net loss$812 $1,194 $136 $254 
Prior service cost (credit)25 29 (190)(246)
Regulatory assets (liabilities)$837 $1,223 $(54)$8 
AOCI
Net loss41 47 — — 
Total amounts recognized in regulatory assets (liabilities) and AOCI$878 $1,270 $(54)$8 
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, 2021December 31, 2020
TotalLevel 1Level 2TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$30 $30 $— $115 $115 $— 
U.S. government and agencies securities209 — 209 150 — 150 
Corporate debt595 — 595 540 — 540 
State and municipal bonds13 — 13 11 — 11 
Foreign corporate bonds66 — 66 41 — 41 
Mutual funds785 785 — 971 971 — 
$1,698 $815 $883 $1,828 $1,086 $742 
Pooled funds1,901 1,574 
Total$3,599 $3,402 
In Millions
OPEB Plan
December 31, 2021December 31, 2020
TotalLevel 1Level 2TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$21 $21 $— $33 $33 $— 
U.S. government and agencies securities25 — 25 18 — 18 
Corporate debt73 — 73 64 — 64 
State and municipal bonds2 — 2 2 — 2 
Foreign corporate bonds8 — 8 5 — 5 
Common stocks85 85 — 66 66 — 
Mutual funds941 941 — 807 807 — 
$1,155 $1,047 $108 $995 $906 $89 
Pooled funds632 650 
Total$1,787 $1,645 
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. 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, 2021:
DB Pension PlansOPEB Plan
Equity securities54.0 %55.0 %
Fixed-income securities28.0 28.0 
Real asset investments12.0 12.0 
Multi-asset investments5.0 4.0 
Cash and Cash Equivalents1.0 1.0 
100.0 %100.0 %
CMS Energy’s target 2021 asset allocation for the assets of the DB Pension Plans was 54 percent equity, 29 percent fixed income, 12 percent real assets, and five percent multi-asset investments.
CMS Energy established union and non‑union VEBA trusts to fund future retiree health and life insurance benefits. These trusts are funded through the ratemaking process for Consumers and through direct contributions from the non‑utility subsidiaries. CMS Energy’s target 2021 asset allocation for the health trusts was 55 percent equity, 30 percent fixed income, 12 percent real assets, and three percent multi-asset investments. CMS Energy’s target asset allocation for the life trusts was 53 percent equity, 32 percent fixed income, and 15 percent multi-asset investments.
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. Real asset investments are diversified across real estate investment trusts, public infrastructure, and public resource equity. Multi-asset investments are global tactical asset allocations.
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: Presented in the following table are the contributions to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan:
In Millions
Years Ended December 3120212020
CMS Energy, including Consumers
DB Pension Plans$— $700 
OPEB Plan— 1 
Consumers
DB Pension Plans$— $682 
OPEB Plan— 1 
Contributions comprise required amounts and discretionary contributions. Neither CMS Energy nor Consumers plans to contribute to the DB Pension Plans or OPEB Plan in 2022. 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
2022$185 $10 $52 
2023181 10 54 
2024178 10 56 
2025180 10 58 
2026178 9 59 
2027-2031876 45 308 
Consumers
2022$175 $7 $49 
2023171 7 52 
2024169 7 54 
2025170 7 55 
2026169 6 56 
2027-2031830 31 294 
Collective Bargaining Agreements: At December 31, 2021, unions represented 41 percent of CMS Energy’s employees and 42 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 expired and new agreements were ratified in 2020. These union contracts expire in 2025.
v3.22.0.1
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2021
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 2021, 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 2021, 2020, or 2019.
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 5,927,297 shares of common stock under the PISP as of December 31, 2021. 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 2021, 2020, and 2019 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 2021, 2020, and 2019, 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 2021.
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, 2021Number 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 period817,357 $51.68 781,531 $51.73 
Granted
Restricted stock547,201 43.52 517,141 42.85 
Restricted stock units13,867 54.11 13,093 53.93 
Vested
Restricted stock(408,011)29.46 (388,009)29.55 
Restricted stock units(15,577)48.15 (14,891)48.09 
Forfeited – restricted stock(22,264)57.90 (21,780)58.01 
Nonvested at end of period932,573 $56.56 887,085 $56.19 
Year Ended December 31, 2021CMS Energy, including
Consumers		Consumers
Granted
Time-lapse awards118,290 112,128 
Market-based awards143,843 135,638 
Performance-based awards143,843 135,638 
Restricted stock units11,725 11,035 
Dividends on market-based awards15,661 14,890 
Dividends on performance-based awards15,964 15,175 
Dividends on restricted stock units2,142 2,058 
Additional market-based shares based on achievement of condition59,736 56,505 
Additional performance-based shares based on achievement of condition49,864 47,167 
Total granted561,068 530,234 
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 31202120202019
Expected volatility27.6 %14.2 %14.9 %
Expected dividend yield2.8 2.4 2.8 
Risk-free rate0.2 1.6 2.5 
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$43.52 $45.56 $43.57 
Restricted stock units granted54.11 49.76 50.35 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$42.85 $45.53 $43.57 
Restricted stock units granted53.93 49.70 51.15 
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Fair value of shares that vested during the year$25 $22 $26 
Compensation expense recognized22 11 22 
Income tax benefit recognized1 3 1 
Consumers
Fair value of shares that vested during the year$24 $21 $25 
Compensation expense recognized21 10 21 
Income tax benefit recognized1 3 1 
At December 31, 2021, $24.1 million of total unrecognized compensation cost was related to restricted stock for CMS Energy, including Consumers, and $22.9 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 2021, 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 2021, 2020, or 2019.
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 5,927,297 shares of common stock under the PISP as of December 31, 2021. 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 2021, 2020, and 2019 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 2021, 2020, and 2019, 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 2021.
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, 2021Number 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 period817,357 $51.68 781,531 $51.73 
Granted
Restricted stock547,201 43.52 517,141 42.85 
Restricted stock units13,867 54.11 13,093 53.93 
Vested
Restricted stock(408,011)29.46 (388,009)29.55 
Restricted stock units(15,577)48.15 (14,891)48.09 
Forfeited – restricted stock(22,264)57.90 (21,780)58.01 
Nonvested at end of period932,573 $56.56 887,085 $56.19 
Year Ended December 31, 2021CMS Energy, including
Consumers		Consumers
Granted
Time-lapse awards118,290 112,128 
Market-based awards143,843 135,638 
Performance-based awards143,843 135,638 
Restricted stock units11,725 11,035 
Dividends on market-based awards15,661 14,890 
Dividends on performance-based awards15,964 15,175 
Dividends on restricted stock units2,142 2,058 
Additional market-based shares based on achievement of condition59,736 56,505 
Additional performance-based shares based on achievement of condition49,864 47,167 
Total granted561,068 530,234 
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 31202120202019
Expected volatility27.6 %14.2 %14.9 %
Expected dividend yield2.8 2.4 2.8 
Risk-free rate0.2 1.6 2.5 
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$43.52 $45.56 $43.57 
Restricted stock units granted54.11 49.76 50.35 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$42.85 $45.53 $43.57 
Restricted stock units granted53.93 49.70 51.15 
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Fair value of shares that vested during the year$25 $22 $26 
Compensation expense recognized22 11 22 
Income tax benefit recognized1 3 1 
Consumers
Fair value of shares that vested during the year$24 $21 $25 
Compensation expense recognized21 10 21 
Income tax benefit recognized1 3 1 
At December 31, 2021, $24.1 million of total unrecognized compensation cost was related to restricted stock for CMS Energy, including Consumers, and $22.9 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.
v3.22.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Taxes [Line Items]  
Income Taxes Income TaxesCMS 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 31202120202019
CMS Energy, including Consumers
Income from continuing operations before income taxes$823 $809 $764 
Income tax expense at statutory rate173 170 160 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect39 44 46 
TCJA excess deferred taxes1
(50)(35)(31)
Production tax credits(40)(28)(20)
Accelerated flow-through of regulatory tax benefits2
(28)(13)(13)
Research and development tax credits, net3
(3)(11)(2)
Refund of alternative minimum tax sequestration4
— (9)— 
Other, net4 (3)(9)
Income tax expense$95 $115 $131 
Effective tax rate11.5 %14.2 %17.1 %
Consumers
Income from continuing operations before income taxes$1,024 $989 $928 
Income tax expense at statutory rate215 208 195 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
54 47 53 
TCJA excess deferred taxes1
(50)(35)(31)
Accelerated flow-through of regulatory tax benefits2
(28)(13)(13)
Production tax credits(33)(19)(12)
Research and development tax credits, net3
(3)(11)(2)
Other, net1 (4)(5)
Income tax expense$156 $173 $185 
Effective tax rate15.2 %17.5 %19.9 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022.
2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022.
3In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers.
4In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Current income taxes
Federal$(1)$(35)$(31)
State and local1 (2)28 
$— $(37)$(3)
Deferred income taxes
Federal49 100 84 
State and local49 57 29 
$98 $157 $113 
Deferred income tax credit(3)(5)21 
Tax expense$95 $115 $131 
Consumers
Current income taxes
Federal$(13)$3 $107 
State and local15 (7)41 
$2 $(4)$148 
Deferred income taxes
Federal103 115 (10)
State and local54 67 26 
$157 $182 $16 
Deferred income tax credit(3)(5)21 
Tax expense$156 $173 $185 
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120212020
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$332 $483 
Net regulatory tax liability349 372 
Reserves and accruals32 62 
Total deferred income tax assets$713 $917 
Valuation allowance(2)(1)
Total deferred income tax assets, net of valuation allowance$711 $916 
Deferred income tax liabilities
Plant, property, and equipment$(2,395)$(2,287)
Employee benefits(399)(364)
Securitized costs(46)(53)
Gas inventory(22)(24)
Other(59)(51)
Total deferred income tax liabilities$(2,921)$(2,779)
Total net deferred income tax liabilities$(2,210)$(1,863)
Consumers
Deferred income tax assets
Net regulatory tax liability$349 $372 
Tax loss and credit carryforwards134 216 
Reserves and accruals24 24 
Total deferred income tax assets$507 $612 
Deferred income tax liabilities
Plant, property, and equipment$(2,341)$(2,230)
Employee benefits(388)(365)
Securitized costs(46)(53)
Gas inventory(22)(24)
Other(50)(34)
Total deferred income tax liabilities$(2,847)$(2,706)
Total net deferred income tax liabilities$(2,340)$(2,094)
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, 2021:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
Federal net operating loss carryforwards$3 None
State net operating loss carryforwards55 2030
Local net operating loss carryforwards3 2024 – 2040
General business credits264 2034 – 2041
Federal charitable contribution carryforwards6 2025
State charitable contribution carryforwards1 2025
Total tax attributes$332 
Consumers
Federal net operating loss carryforwards$2 None
State net operating loss carryforwards43 2030
General business credits83 2034-2041
Federal charitable contribution carryforwards5 2025
State charitable contribution carryforwards1 2025
Total tax attributes$134 
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.
In 2021, the sale of EnerBank to Regions Bank resulted in utilization of most of the federal net operating loss carryforwards. EnerBank is not included in CMS Energy’s Michigan tax filing, therefore state net operating loss carryforwards were not impacted by the sale of EnerBank.
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Balance at beginning of period$25 $23 $19 
Additions for current-year tax positions2 1 1 
Additions for prior-year tax positions— 3 3 
Reductions for prior-year tax positions— (2)— 
Balance at end of period$27 $25 $23 
Consumers
Balance at beginning of period$31 $34 $28 
Additions for current-year tax positions3 1 1 
Additions for prior-year tax positions— 4 5 
Reductions for prior-year tax positions— (8)— 
Balance at end of period$34 $31 $34 
If recognized, all of these uncertain tax benefits would affect CMS Energy’s and Consumers’ annual effective tax rates in future years. A trial is anticipated in 2022 with the Michigan Tax Tribunal related to the methodology of state apportionment for Consumers’ electricity sales to MISO; however, 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, 2021, 2020, or 2019.
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 2018 and subsequent years remain subject to examination by the IRS. CMS Energy’s Michigan Corporate Income Tax returns for 2013 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, 2021 were adequate for all years.
Consumers Energy Company  
Income Taxes [Line Items]  
Income Taxes Income TaxesCMS 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 31202120202019
CMS Energy, including Consumers
Income from continuing operations before income taxes$823 $809 $764 
Income tax expense at statutory rate173 170 160 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect39 44 46 
TCJA excess deferred taxes1
(50)(35)(31)
Production tax credits(40)(28)(20)
Accelerated flow-through of regulatory tax benefits2
(28)(13)(13)
Research and development tax credits, net3
(3)(11)(2)
Refund of alternative minimum tax sequestration4
— (9)— 
Other, net4 (3)(9)
Income tax expense$95 $115 $131 
Effective tax rate11.5 %14.2 %17.1 %
Consumers
Income from continuing operations before income taxes$1,024 $989 $928 
Income tax expense at statutory rate215 208 195 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
54 47 53 
TCJA excess deferred taxes1
(50)(35)(31)
Accelerated flow-through of regulatory tax benefits2
(28)(13)(13)
Production tax credits(33)(19)(12)
Research and development tax credits, net3
(3)(11)(2)
Other, net1 (4)(5)
Income tax expense$156 $173 $185 
Effective tax rate15.2 %17.5 %19.9 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022.
2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022.
3In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers.
4In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Current income taxes
Federal$(1)$(35)$(31)
State and local1 (2)28 
$— $(37)$(3)
Deferred income taxes
Federal49 100 84 
State and local49 57 29 
$98 $157 $113 
Deferred income tax credit(3)(5)21 
Tax expense$95 $115 $131 
Consumers
Current income taxes
Federal$(13)$3 $107 
State and local15 (7)41 
$2 $(4)$148 
Deferred income taxes
Federal103 115 (10)
State and local54 67 26 
$157 $182 $16 
Deferred income tax credit(3)(5)21 
Tax expense$156 $173 $185 
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120212020
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$332 $483 
Net regulatory tax liability349 372 
Reserves and accruals32 62 
Total deferred income tax assets$713 $917 
Valuation allowance(2)(1)
Total deferred income tax assets, net of valuation allowance$711 $916 
Deferred income tax liabilities
Plant, property, and equipment$(2,395)$(2,287)
Employee benefits(399)(364)
Securitized costs(46)(53)
Gas inventory(22)(24)
Other(59)(51)
Total deferred income tax liabilities$(2,921)$(2,779)
Total net deferred income tax liabilities$(2,210)$(1,863)
Consumers
Deferred income tax assets
Net regulatory tax liability$349 $372 
Tax loss and credit carryforwards134 216 
Reserves and accruals24 24 
Total deferred income tax assets$507 $612 
Deferred income tax liabilities
Plant, property, and equipment$(2,341)$(2,230)
Employee benefits(388)(365)
Securitized costs(46)(53)
Gas inventory(22)(24)
Other(50)(34)
Total deferred income tax liabilities$(2,847)$(2,706)
Total net deferred income tax liabilities$(2,340)$(2,094)
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, 2021:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
Federal net operating loss carryforwards$3 None
State net operating loss carryforwards55 2030
Local net operating loss carryforwards3 2024 – 2040
General business credits264 2034 – 2041
Federal charitable contribution carryforwards6 2025
State charitable contribution carryforwards1 2025
Total tax attributes$332 
Consumers
Federal net operating loss carryforwards$2 None
State net operating loss carryforwards43 2030
General business credits83 2034-2041
Federal charitable contribution carryforwards5 2025
State charitable contribution carryforwards1 2025
Total tax attributes$134 
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.
In 2021, the sale of EnerBank to Regions Bank resulted in utilization of most of the federal net operating loss carryforwards. EnerBank is not included in CMS Energy’s Michigan tax filing, therefore state net operating loss carryforwards were not impacted by the sale of EnerBank.
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Balance at beginning of period$25 $23 $19 
Additions for current-year tax positions2 1 1 
Additions for prior-year tax positions— 3 3 
Reductions for prior-year tax positions— (2)— 
Balance at end of period$27 $25 $23 
Consumers
Balance at beginning of period$31 $34 $28 
Additions for current-year tax positions3 1 1 
Additions for prior-year tax positions— 4 5 
Reductions for prior-year tax positions— (8)— 
Balance at end of period$34 $31 $34 
If recognized, all of these uncertain tax benefits would affect CMS Energy’s and Consumers’ annual effective tax rates in future years. A trial is anticipated in 2022 with the Michigan Tax Tribunal related to the methodology of state apportionment for Consumers’ electricity sales to MISO; however, 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, 2021, 2020, or 2019.
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 2018 and subsequent years remain subject to examination by the IRS. CMS Energy’s Michigan Corporate Income Tax returns for 2013 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, 2021 were adequate for all years.
v3.22.0.1
Earnings Per Share - CMS Energy
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Earnings Per Share - CMS Energy Earnings Per Share—CMS Energy
Presented in the following table are CMS Energy’s basic and diluted EPS computations based on income from continuing operations:
In Millions, Except Per Share Amounts
Years Ended December 31202120202019
Income available to common stockholders
Income from continuing operations$728 $694 $633 
Less income (loss) attributable to noncontrolling interests(23)(3)2 
Less preferred stock dividends5 — — 
Income from continuing operations available to common stockholders – basic and diluted$746 $697 $631 
Average common shares outstanding
Weighted-average shares – basic289.0 285.0 283.0 
Add dilutive nonvested stock awards0.5 0.7 0.7 
Add dilutive forward equity sale contracts— 0.6 0.6 
Weighted-average shares – diluted289.5 286.3 284.3 
Income from continuing operations per average common share available to common stockholders
Basic$2.58 $2.45 $2.23 
Diluted2.58 2.44 2.22 
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.
v3.22.0.1
Revenue
 12 Months Ended
Dec. 31, 2021
Disaggregation of Revenue [Line Items]  
Revenue RevenuePresented in the following tables are the components of operating revenue:
In Millions
Year Ended December 31, 2021Electric UtilityGas Utility
Enterprises1
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 the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2020Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,348 $1,809 $— $6,157 
Other— — 81 81 
Revenue recognized from contracts with customers$4,348 $1,809 $81 $6,238 
Leasing income— — 148 148 
Financing income11 6 — 17 
Consumers alternative-revenue programs29 14 — 43 
Consumers revenues to be refunded(16)(12)— (28)
Total operating revenue – CMS Energy$4,372 $1,817 $229 $6,418 
Consumers
Consumers utility revenue
Residential$2,109 $1,232 $3,341 
Commercial1,444 337 1,781 
Industrial570 46 616 
Other225 194 419 
Revenue recognized from contracts with customers$4,348 $1,809 $6,157 
Financing income11 6 17 
Alternative-revenue programs29 14 43 
Revenues to be refunded(16)(12)(28)
Total operating revenue – Consumers$4,372 $1,817 $6,189 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2019Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,407 $1,922 $— $6,329 
Other— — 74 74 
Revenue recognized from contracts with customers$4,407 $1,922 $74 $6,403 
Leasing income— — 174 174 
Financing income9 5 — 14 
Consumers alternative-revenue programs23 10 — 33 
Total operating revenue – CMS Energy$4,439 $1,937 $248 $6,624 
Consumers
Consumers utility revenue
Residential$1,988 $1,316 $3,304 
Commercial1,502 372 1,874 
Industrial669 51 720 
Other248 183 431 
Revenue recognized from contracts with customers$4,407 $1,922 $6,329 
Financing income9 5 14 
Alternative-revenue programs23 10 33 
Total operating revenue – Consumers$4,439 $1,937 $6,376 
1Amounts represent the enterprises segment’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 $22 million for the year ended December 31, 2021, $33 million for the year ended December 31, 2020, and $29 million for the year ended December 31, 2019.
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 $486 million at December 31, 2021 and $437 million at December 31, 2020.
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.
Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather‑normalized, non‑fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative‑revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Revenues to Be Refunded: In December 2020, the MPSC issued an order authorizing Consumers to refund $28 million voluntarily to utility customers. For additional information, see Note 2, Regulatory Matters.
Consumers Energy Company  
Disaggregation of Revenue [Line Items]  
Revenue RevenuePresented in the following tables are the components of operating revenue:
In Millions
Year Ended December 31, 2021Electric UtilityGas Utility
Enterprises1
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 the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2020Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,348 $1,809 $— $6,157 
Other— — 81 81 
Revenue recognized from contracts with customers$4,348 $1,809 $81 $6,238 
Leasing income— — 148 148 
Financing income11 6 — 17 
Consumers alternative-revenue programs29 14 — 43 
Consumers revenues to be refunded(16)(12)— (28)
Total operating revenue – CMS Energy$4,372 $1,817 $229 $6,418 
Consumers
Consumers utility revenue
Residential$2,109 $1,232 $3,341 
Commercial1,444 337 1,781 
Industrial570 46 616 
Other225 194 419 
Revenue recognized from contracts with customers$4,348 $1,809 $6,157 
Financing income11 6 17 
Alternative-revenue programs29 14 43 
Revenues to be refunded(16)(12)(28)
Total operating revenue – Consumers$4,372 $1,817 $6,189 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2019Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,407 $1,922 $— $6,329 
Other— — 74 74 
Revenue recognized from contracts with customers$4,407 $1,922 $74 $6,403 
Leasing income— — 174 174 
Financing income9 5 — 14 
Consumers alternative-revenue programs23 10 — 33 
Total operating revenue – CMS Energy$4,439 $1,937 $248 $6,624 
Consumers
Consumers utility revenue
Residential$1,988 $1,316 $3,304 
Commercial1,502 372 1,874 
Industrial669 51 720 
Other248 183 431 
Revenue recognized from contracts with customers$4,407 $1,922 $6,329 
Financing income9 5 14 
Alternative-revenue programs23 10 33 
Total operating revenue – Consumers$4,439 $1,937 $6,376 
1Amounts represent the enterprises segment’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 $22 million for the year ended December 31, 2021, $33 million for the year ended December 31, 2020, and $29 million for the year ended December 31, 2019.
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 $486 million at December 31, 2021 and $437 million at December 31, 2020.
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.
Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather‑normalized, non‑fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative‑revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Revenues to Be Refunded: In December 2020, the MPSC issued an order authorizing Consumers to refund $28 million voluntarily to utility customers. For additional information, see Note 2, Regulatory Matters.
v3.22.0.1
Other Income and Other Expense
 12 Months Ended
Dec. 31, 2021
Other Income and Expenses [Line Items]  
Other Income and Other Expense Other Income and Other Expense
Other income was not significant for any of the periods presented. Presented in the following table are the components of other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Other expense
Donations$(6)$(35)$(3)
Civic and political expenditures(5)(5)(6)
Loss on reacquired and extinguished debt— (16)— 
All other(7)(6)(4)
Total other expense – CMS Energy$(18)$(62)$(13)
Consumers
Other expense
Donations$(6)$(33)$(3)
Civic and political expenditures(5)(5)(6)
All other(7)(5)(4)
Total other expense – Consumers$(18)$(43)$(13)
Consumers Energy Company  
Other Income and Expenses [Line Items]  
Other Income and Other Expense Other Income and Other Expense
Other income was not significant for any of the periods presented. Presented in the following table are the components of other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Other expense
Donations$(6)$(35)$(3)
Civic and political expenditures(5)(5)(6)
Loss on reacquired and extinguished debt— (16)— 
All other(7)(6)(4)
Total other expense – CMS Energy$(18)$(62)$(13)
Consumers
Other expense
Donations$(6)$(33)$(3)
Civic and political expenditures(5)(5)(6)
All other(7)(5)(4)
Total other expense – Consumers$(18)$(43)$(13)
v3.22.0.1
Cash And Cash Equivalents
 12 Months Ended
Dec. 31, 2021
Cash and Cash Equivalents [Line Items]  
Cash And Cash Equivalents Cash and Cash Equivalents
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets:
In Millions
December 3120212020
CMS Energy, including Consumers
Cash and cash equivalents$452 $32 
Restricted cash and cash equivalents24 17 
Current assets held for sale— 136 
Cash and cash equivalents, including restricted amounts – CMS Energy$476 $185 
Consumers
Cash and cash equivalents$22 $20 
Restricted cash and cash equivalents22 15 
Cash and cash equivalents, including restricted amounts – Consumers$44 $35 
Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Current Assets Held for Sale: On October 1, 2021, EnerBank was acquired by Regions Bank. EnerBank’s cash and cash equivalents are presented as assets held for sale on CMS Energy’s consolidated balance sheets at December 31, 2020. For information regarding the sale of EnerBank, see Note 20, Exit Activities and Discontinued Operations.
Consumers Energy Company  
Cash and Cash Equivalents [Line Items]  
Cash And Cash Equivalents Cash and Cash Equivalents
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets:
In Millions
December 3120212020
CMS Energy, including Consumers
Cash and cash equivalents$452 $32 
Restricted cash and cash equivalents24 17 
Current assets held for sale— 136 
Cash and cash equivalents, including restricted amounts – CMS Energy$476 $185 
Consumers
Cash and cash equivalents$22 $20 
Restricted cash and cash equivalents22 15 
Cash and cash equivalents, including restricted amounts – Consumers$44 $35 
Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Current Assets Held for Sale: On October 1, 2021, EnerBank was acquired by Regions Bank. EnerBank’s cash and cash equivalents are presented as assets held for sale on CMS Energy’s consolidated balance sheets at December 31, 2020. For information regarding the sale of EnerBank, see Note 20, Exit Activities and Discontinued Operations.
v3.22.0.1
Reportable Segments
 12 Months Ended
Dec. 31, 2021
Segment Reporting Information [Line Items]  
Reportable Segments Reportable SegmentsReportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders.
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
•enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production
On October 1, 2021, EnerBank was acquired by Regions Bank. As a result, EnerBank is no longer included in the composition of CMS Energy’s reportable segments. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the years ended December 31, 2021, 2020, and 2019. The assets and liabilities of EnerBank are presented as held for sale on CMS Energy’s consolidated balance sheet at December 31, 2020. For information regarding the sale of EnerBank, see Note 20, Exit Activities and Discontinued Operations.
CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items. Beginning in 2021, CMS Land, which holds the environmental remediation obligations at Bay Harbor, will be included within other reconciling items rather than within the enterprises segment. This change was not material and was made to align segment reporting with the legal organization and internal reporting of CMS Energy.
Consumers
The segments reported for Consumers are:
•electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
•gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
Consumers’ other consolidated entities are presented within other reconciling items.
Presented in the following tables is financial information by segment:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Operating revenue
Electric utility$4,958 $4,372 $4,439 
Gas utility2,063 1,817 1,937 
Enterprises308 229 248 
Total operating revenue – CMS Energy$7,329 $6,418 $6,624 
Consumers
Operating revenue
Electric utility$4,958 $4,372 $4,439 
Gas utility2,063 1,817 1,937 
Total operating revenue – Consumers$7,021 $6,189 $6,376 
CMS Energy, including Consumers
Depreciation and amortization
Electric utility$772 $739 $713 
Gas utility304 283 261 
Enterprises37 20 14 
Other reconciling items1 1 1 
Total depreciation and amortization – CMS Energy$1,114 $1,043 $989 
Consumers
Depreciation and amortization
Electric utility$772 $739 $713 
Gas utility304 283 261 
Other reconciling items1 1 1 
Total depreciation and amortization – Consumers$1,077 $1,023 $975 
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Income from equity method investees1
Enterprises$10 $5 $10 
Total income from equity method investees – CMS Energy$10 $5 $10 
CMS Energy, including Consumers
Interest charges
Electric utility$207 $217 $213 
Gas utility104 102 83 
Enterprises6 7 7 
Other reconciling items183 179 157 
Total interest charges – CMS Energy$500 $505 $460 
Consumers
Interest charges
Electric utility$207 $217 $213 
Gas utility104 102 83 
Other reconciling items— 1 1 
Total interest charges – Consumers$311 $320 $297 
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility$117 $115 $134 
Gas utility39 58 51 
Enterprises(2)(4)2 
Other reconciling items(59)(54)(56)
Total income tax expense – CMS Energy$95 $115 $131 
Consumers
Income tax expense
Electric utility$117 $115 $134 
Gas utility39 58 51 
Total income tax expense – Consumers$156 $173 $185 
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$565 $554 $509 
Gas utility302 261 233 
Enterprises23 36 33 
Other reconciling items458 (96)(95)
Total net income available to common stockholders – CMS Energy$1,348 $755 $680 
Consumers
Net income (loss) available to common stockholder
Electric utility$565 $554 $509 
Gas utility302 261 233 
Other reconciling items(1)(1)(1)
Total net income available to common stockholder – Consumers$866 $814 $741 
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2
$18,147 $17,155 $16,158 
Gas utility2
10,601 9,581 8,785 
Enterprises1,122 1,113 405 
Other reconciling items23 21 20 
Total plant, property, and equipment, gross – CMS Energy$29,893 $27,870 $25,368 
Consumers
Plant, property, and equipment, gross
Electric utility2
$18,147 $17,155 $16,158 
Gas utility2
10,601 9,581 8,785 
Other reconciling items23 21 20 
Total plant, property, and equipment, gross – Consumers$28,771 $26,757 $24,963 
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises$71 $70 $71 
Total investments in equity method investees – CMS Energy$71 $70 $71 
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Total assets
Electric utility2
$16,493 $15,829 $14,911 
Gas utility2
10,517 9,429 8,659 
Enterprises1,312 1,276 527 
Other reconciling items431 3,132 2,740 
Total assets – CMS Energy$28,753 $29,666 $26,837 
Consumers
Total assets
Electric utility2
$16,555 $15,893 $14,973 
Gas utility2
10,564 9,477 8,706 
Other reconciling items21 29 20 
Total assets – Consumers$27,140 $25,399 $23,699 
CMS Energy, including Consumers
Capital expenditures3
Electric utility4
$1,153 $1,281 $1,162 
Gas utility4
989 885 971 
Enterprises17 108 5 
Other reconciling items2 1 1 
Total capital expenditures – CMS Energy$2,161 $2,275 $2,139 
Consumers
Capital expenditures3
Electric utility4
$1,153 $1,281 $1,162 
Gas utility4
989 885 971 
Other reconciling items2 1 1 
Total capital expenditures – Consumers$2,144 $2,167 $2,134 
1Consumers had no significant 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 SegmentsReportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders.
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
•enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production
On October 1, 2021, EnerBank was acquired by Regions Bank. As a result, EnerBank is no longer included in the composition of CMS Energy’s reportable segments. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the years ended December 31, 2021, 2020, and 2019. The assets and liabilities of EnerBank are presented as held for sale on CMS Energy’s consolidated balance sheet at December 31, 2020. For information regarding the sale of EnerBank, see Note 20, Exit Activities and Discontinued Operations.
CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items. Beginning in 2021, CMS Land, which holds the environmental remediation obligations at Bay Harbor, will be included within other reconciling items rather than within the enterprises segment. This change was not material and was made to align segment reporting with the legal organization and internal reporting of CMS Energy.
Consumers
The segments reported for Consumers are:
•electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
•gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
Consumers’ other consolidated entities are presented within other reconciling items.
Presented in the following tables is financial information by segment:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Operating revenue
Electric utility$4,958 $4,372 $4,439 
Gas utility2,063 1,817 1,937 
Enterprises308 229 248 
Total operating revenue – CMS Energy$7,329 $6,418 $6,624 
Consumers
Operating revenue
Electric utility$4,958 $4,372 $4,439 
Gas utility2,063 1,817 1,937 
Total operating revenue – Consumers$7,021 $6,189 $6,376 
CMS Energy, including Consumers
Depreciation and amortization
Electric utility$772 $739 $713 
Gas utility304 283 261 
Enterprises37 20 14 
Other reconciling items1 1 1 
Total depreciation and amortization – CMS Energy$1,114 $1,043 $989 
Consumers
Depreciation and amortization
Electric utility$772 $739 $713 
Gas utility304 283 261 
Other reconciling items1 1 1 
Total depreciation and amortization – Consumers$1,077 $1,023 $975 
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Income from equity method investees1
Enterprises$10 $5 $10 
Total income from equity method investees – CMS Energy$10 $5 $10 
CMS Energy, including Consumers
Interest charges
Electric utility$207 $217 $213 
Gas utility104 102 83 
Enterprises6 7 7 
Other reconciling items183 179 157 
Total interest charges – CMS Energy$500 $505 $460 
Consumers
Interest charges
Electric utility$207 $217 $213 
Gas utility104 102 83 
Other reconciling items— 1 1 
Total interest charges – Consumers$311 $320 $297 
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility$117 $115 $134 
Gas utility39 58 51 
Enterprises(2)(4)2 
Other reconciling items(59)(54)(56)
Total income tax expense – CMS Energy$95 $115 $131 
Consumers
Income tax expense
Electric utility$117 $115 $134 
Gas utility39 58 51 
Total income tax expense – Consumers$156 $173 $185 
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$565 $554 $509 
Gas utility302 261 233 
Enterprises23 36 33 
Other reconciling items458 (96)(95)
Total net income available to common stockholders – CMS Energy$1,348 $755 $680 
Consumers
Net income (loss) available to common stockholder
Electric utility$565 $554 $509 
Gas utility302 261 233 
Other reconciling items(1)(1)(1)
Total net income available to common stockholder – Consumers$866 $814 $741 
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2
$18,147 $17,155 $16,158 
Gas utility2
10,601 9,581 8,785 
Enterprises1,122 1,113 405 
Other reconciling items23 21 20 
Total plant, property, and equipment, gross – CMS Energy$29,893 $27,870 $25,368 
Consumers
Plant, property, and equipment, gross
Electric utility2
$18,147 $17,155 $16,158 
Gas utility2
10,601 9,581 8,785 
Other reconciling items23 21 20 
Total plant, property, and equipment, gross – Consumers$28,771 $26,757 $24,963 
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises$71 $70 $71 
Total investments in equity method investees – CMS Energy$71 $70 $71 
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Total assets
Electric utility2
$16,493 $15,829 $14,911 
Gas utility2
10,517 9,429 8,659 
Enterprises1,312 1,276 527 
Other reconciling items431 3,132 2,740 
Total assets – CMS Energy$28,753 $29,666 $26,837 
Consumers
Total assets
Electric utility2
$16,555 $15,893 $14,973 
Gas utility2
10,564 9,477 8,706 
Other reconciling items21 29 20 
Total assets – Consumers$27,140 $25,399 $23,699 
CMS Energy, including Consumers
Capital expenditures3
Electric utility4
$1,153 $1,281 $1,162 
Gas utility4
989 885 971 
Enterprises17 108 5 
Other reconciling items2 1 1 
Total capital expenditures – CMS Energy$2,161 $2,275 $2,139 
Consumers
Capital expenditures3
Electric utility4
$1,153 $1,281 $1,162 
Gas utility4
989 885 971 
Other reconciling items2 1 1 
Total capital expenditures – Consumers$2,144 $2,167 $2,134 
1Consumers had no significant 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.
v3.22.0.1
Related Party Transactions - Consumers
 12 Months Ended
Dec. 31, 2021
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 CMS Enterprises
•payments to and from CMS Energy related to parent company overhead costs
Transactions involving power supply purchases from certain affiliates of CMS Enterprises 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 Party202120202019
Purchases of capacity and energyAffiliates of CMS Enterprises$77 $64 $75 
Amounts payable to related parties for purchased power and other services were $22 million at December 31, 2021 and $13 million at December 31, 2020. Accounts receivable from related parties were $7 million at December 31, 2021 and $16 million at December 31, 2020.
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, 2021 and 2020.
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 and Palisades Financing.
In June 2021, Consumers entered into an agreement with DIG, CMS Generation Michigan Power, and CMS ERM to purchase the enterprises segment’s three natural gas-fueled generating units, totaling 1,001 MW of nameplate capacity for $515 million, subject to certain adjustments. The parties plan to close the sale, which is dependent upon regulatory approvals, in 2025.
In December 2021, 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
v3.22.0.1
Variable Interest Entities
 12 Months Ended
Dec. 31, 2021
Variable Interest Entities [Abstract]  
Variable Interest Entities Variable Interest EntitiesCMS Enterprises has a 51-percent ownership interest in Aviator Wind Equity Holdings, which holds a Class B membership interest in Aviator Wind, a 525-MW wind generation project in Coke County, Texas. The Class A membership interest in Aviator Wind is held by a tax equity investor, BHE Renewables, LLC, a subsidiary of Berkshire Hathaway Energy Company. Earnings, tax attributes, and cash flows generated by Aviator Wind are allocated among and distributed to the membership classes in accordance with the ratios specified in the associated limited liability company operating agreement;
these ratios change over time and are not representative of the ownership interest percentages of each membership class.
Aviator Wind Equity Holdings and Aviator Wind represent VIEs. In accordance with the associated limited liability company operating agreement, the tax equity investor is guaranteed preferred returns from Aviator Wind. However, CMS Enterprises manages and controls the operating activities of Aviator Wind Equity Holdings and, ultimately, Aviator Wind. As a result, CMS Enterprises is the primary beneficiary of Aviator Wind Equity Holdings and Aviator Wind, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies. CMS Enterprises consolidates Aviator Wind Equity Holdings and Aviator Wind and presents the Class A membership interest and 49 percent of the Class B membership interest in Aviator Wind as noncontrolling interests.
Presented in the following table are the carrying values of the VIEs’ assets and liabilities included on CMS Energy’s consolidated balance sheets:
In Millions
December 3120212020
Current
Cash and cash equivalents$20 $7 
Accounts receivable3 5 
Prepayments and other current assets1 1 
Non-current
Plant, property, and equipment, net671 692 
Total assets1
$695 $705 
Current
Accounts payable$15 $3 
Non-current
Asset retirement obligations20 19 
Total liabilities$35 $22 
1Assets may be used only to meet VIEs’ obligations and commitments.
CMS Enterprises is obligated under certain indemnities that protect the tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. For additional details on these indemnity obligations, see Note 3, Contingencies and Commitments—Guarantees.
Since Aviator Wind’s income and cash flows are not distributed among its investors based on ownership interest percentages, CMS Enterprises allocates Aviator Wind’s income (loss) among its investors by applying the hypothetical liquidation at book value method. This method calculates each investor’s earnings based on a hypothetical liquidation of Aviator Wind at the net book value of its underlying net 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. CMS Enterprises then receives 51 percent of the earnings, tax attributes, and cash flows that were allocated to Aviator Wind Equity Holdings.Other VIEs: CMS Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While CMS Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability
to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships.
Presented in the following table is information about these partnerships:
NameNature of the EntityNature of CMS Energy’s Involvement
T.E.S. Filer City Coal-fueled power generatorLong-term PPA between partnership and Consumers
Employee assignment agreement
Grayling Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Genesee Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Craven Wood waste-fueled power generatorOperating and management contract
1Reduced dispatch agreements allow the facilities to be dispatched based on the market price of power compared with the cost of production of the plants. This results in fuel cost savings that each partnership shares with Consumers’ customers.
The creditors of these partnerships do not have recourse to the general credit of CMS Energy or Consumers. CMS Energy and Consumers have not provided any financial or other support during the periods presented that was not previously contractually required.
CMS Energy’s investment in these partnerships is included in investments on its consolidated balance sheets in the amount of $71 million at December 31, 2021 and $70 million at December 31, 2020.
v3.22.0.1
Exit Activities and Discontinued Operations
 12 Months Ended
Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Exit Activities and Discontinued Operations Exit Activities and Discontinued OperationsExit Activities: Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn coal-fueled electric generating units in 2023. In 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million. In its order in Consumers’ 2020 electric rate case, the MPSC approved deferred accounting treatment for these costs; Consumers began deferring these costs as a regulatory asset in 2021. Within its 2021 IRP, Consumers proposes to retire the J.H. Campbell coal-fueled generating units. No retention incentive costs related to this retirement will be recognized unless Consumers’ 2021 IRP is approved by the MPSC.
As of December 31, 2021, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $7 million has been deferred as a regulatory asset. Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Years Ended December 3120212020
Retention benefit liability at beginning of period$11 $4 
Costs incurred and charged to maintenance and other operating expenses— 13 
Costs deferred as a regulatory asset
7 — 
Costs incurred and capitalized1 2 
Costs paid or settled(5)(8)
Retention benefit liability at the end of the period1
$14 $11 
1Includes current portion of other liabilities of $5 million at December 31, 2021 and $3 million at December 31, 2020.
Discontinued Operations: On October 1, 2021, EnerBank was acquired by Regions Bank. CMS Energy received proceeds of over $1 billion from the transaction and recognized a pre-tax gain of $657 million. CMS Energy intends to use the proceeds from the sale to fund key initiatives in its core energy business related to safety, reliability, and its clean energy transformation.
In December 2021, CMS Energy submitted a notice of disagreement to Regions Bank relating to a $36 million negative post-closing purchase price adjustment that it believes is inconsistent with the merger agreement. In accordance with the merger agreement, the disputed adjustment will be submitted to a mutually agreed upon independent accounting firm for final determination. While CMS Energy does not believe material loss is probable, it cannot predict the outcome of this matter.
EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the years ended December 31, 2021, 2020, and 2019. The assets and liabilities of EnerBank are presented as held for sale on CMS Energy’s consolidated balance sheet at December 31, 2020.
The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Years Ended December 31202120202019
Operating revenue$209 $262 $221 
Expenses
Operating expenses60 130 97 
Interest expense34 56 59 
Income before income taxes$115 $76 $65 
Gain on sale657 — — 
Income from discontinued operations before income taxes$772 $76 $65 
Income tax expense170 18 16 
Income from discontinued operations, net of tax$602 $58 $49 
The table below presents the aggregate carrying amounts for the major classes of assets and liabilities held for sale related to EnerBank:
In Millions
December 312020
Assets
Current
Cash and cash equivalents$136 
Accounts receivable and other current assets18 
Notes receivable, less allowance of $32
275 
Total current assets

$429 
Non‑current
Plant, property, and equipment, net$22 
Notes receivable, less allowance of $91
2,612 
Other non‑current assets46 
Total non‑current assets

$2,680 
Total assets$3,109 
Liabilities
Current
Current portion of long-term debt$915 
Accounts payable and other current liabilities38 
Total current liabilities

$953 
Non‑current
Long-term debt$1,890 
Other non‑current liabilities4 
Total non‑current liabilities

$1,894 
Total liabilities$2,847 
Consumers Energy Company  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Exit Activities and Discontinued Operations Exit Activities and Discontinued OperationsExit Activities: Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn coal-fueled electric generating units in 2023. In 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million. In its order in Consumers’ 2020 electric rate case, the MPSC approved deferred accounting treatment for these costs; Consumers began deferring these costs as a regulatory asset in 2021. Within its 2021 IRP, Consumers proposes to retire the J.H. Campbell coal-fueled generating units. No retention incentive costs related to this retirement will be recognized unless Consumers’ 2021 IRP is approved by the MPSC.
As of December 31, 2021, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $7 million has been deferred as a regulatory asset. Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Years Ended December 3120212020
Retention benefit liability at beginning of period$11 $4 
Costs incurred and charged to maintenance and other operating expenses— 13 
Costs deferred as a regulatory asset
7 — 
Costs incurred and capitalized1 2 
Costs paid or settled(5)(8)
Retention benefit liability at the end of the period1
$14 $11 
1Includes current portion of other liabilities of $5 million at December 31, 2021 and $3 million at December 31, 2020.
Discontinued Operations: On October 1, 2021, EnerBank was acquired by Regions Bank. CMS Energy received proceeds of over $1 billion from the transaction and recognized a pre-tax gain of $657 million. CMS Energy intends to use the proceeds from the sale to fund key initiatives in its core energy business related to safety, reliability, and its clean energy transformation.
In December 2021, CMS Energy submitted a notice of disagreement to Regions Bank relating to a $36 million negative post-closing purchase price adjustment that it believes is inconsistent with the merger agreement. In accordance with the merger agreement, the disputed adjustment will be submitted to a mutually agreed upon independent accounting firm for final determination. While CMS Energy does not believe material loss is probable, it cannot predict the outcome of this matter.
EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the years ended December 31, 2021, 2020, and 2019. The assets and liabilities of EnerBank are presented as held for sale on CMS Energy’s consolidated balance sheet at December 31, 2020.
The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Years Ended December 31202120202019
Operating revenue$209 $262 $221 
Expenses
Operating expenses60 130 97 
Interest expense34 56 59 
Income before income taxes$115 $76 $65 
Gain on sale657 — — 
Income from discontinued operations before income taxes$772 $76 $65 
Income tax expense170 18 16 
Income from discontinued operations, net of tax$602 $58 $49 
The table below presents the aggregate carrying amounts for the major classes of assets and liabilities held for sale related to EnerBank:
In Millions
December 312020
Assets
Current
Cash and cash equivalents$136 
Accounts receivable and other current assets18 
Notes receivable, less allowance of $32
275 
Total current assets

$429 
Non‑current
Plant, property, and equipment, net$22 
Notes receivable, less allowance of $91
2,612 
Other non‑current assets46 
Total non‑current assets

$2,680 
Total assets$3,109 
Liabilities
Current
Current portion of long-term debt$915 
Accounts payable and other current liabilities38 
Total current liabilities

$953 
Non‑current
Long-term debt$1,890 
Other non‑current liabilities4 
Total non‑current liabilities

$1,894 
Total liabilities$2,847 
v3.22.0.1
Quarterly Financial And Common Stock Information (Unaudited)
 12 Months Ended
Dec. 31, 2021
Quarterly Financial Data [Abstract]  
Quarterly Financial and Common Stock Information (Unaudited) Quarterly Financial and Common Stock Information (Unaudited)
Presented in the table below are CMS Energy’s quarterly financial and common stock information. CMS Energy has reclassified certain prior period amounts to conform to the presentation in the present period. The most significant reclassification is related to the sale of EnerBank to Regions Bank. 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 years ended December 31, 2021 and 2020.
In Millions, Except Per Share Amounts
2021
Three Months EndedMarch 31June 30September 30December 31
CMS Energy, including Consumers
Operating revenue$2,013 $1,558 $1,725 $2,033 
Operating income430 252 260 204 
Income From Continuing Operations308 153 153 114 
Income From Discontinued Operations, Net of Tax34 18 30 520 
Net income342 171 183 634 
Loss attributable to noncontrolling interests(7)(5)(6)(5)
Net Income Attributable to CMS Energy349 176 189 639 
Preferred Stock Dividends— — 3 2 
Net income available to common stockholders349 176 186 637 
Basic earnings per average common share
Income from continuing operations per average common share available to common stockholders1
1.09 0.55 0.54 0.40 
Income from discontinued operations per average common share available to common stockholders1
0.12 0.06 0.10 1.80 
Basic earnings per average common share1
1.21 0.61 0.64 2.20 
Diluted earnings per average common share
Income from continuing operations per average common share available to common stockholders1
1.09 0.55 0.54 0.40 
Income from discontinued operations per average common share available to common stockholders1
0.12 0.06 0.10 1.80 
Diluted earnings per average common share1
1.21 0.61 0.64 2.20 
1The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding.
In Millions, Except Per Share Amounts
2020
Three Months EndedMarch 31June 30September 30December 31
CMS Energy, including Consumers
Operating revenue$1,802 $1,382 $1,507 $1,727 
Operating income335 248 340 307 
Income From Continuing Operations229 129 198 138 
Income From Discontinued Operations, Net of Tax14 8 12 24 
Net income243 137 210 162 
Income (loss) attributable to noncontrolling interests— 1 (8)4 
Net income available to common stockholders243 136 218 158 
Basic earnings per average common share
Income from continuing operations per average common share available to common stockholders1
0.81 0.45 0.72 0.47 
Income from discontinued operations per average common share available to common stockholders1
0.05 0.03 0.04 0.08 
Basic earnings per average common share1
0.86 0.48 0.76 0.55 
Diluted earnings per average common share
Income from continuing operations per average common share available to common stockholders1
0.80 0.45 0.72 0.47 
Income from discontinued operations per average common share available to common stockholders1
0.05 0.03 0.04 0.08 
Diluted earnings per average common share1
0.85 0.48 0.76 0.55 
1The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding.
v3.22.0.1
Schedule I - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Schedule I - Condensed Financial Information of Registrant
Condensed Statements of Income

In Millions
Years Ended December 31202120202019
Operating Expenses
Other operating expenses$(7)$(6)$(38)
Total operating expenses(7)(6)(38)
Operating Loss(7)(6)(38)
Other Income (Expense)
Equity earnings of subsidiaries1,482 909 826 
Nonoperating retirement benefits, net(1)(1)(1)
Interest income1 1 1 
Other income1 1 1 
Other expense— (19)— 
Total other income1,483 891 827 
Interest Charges
Interest on long-term debt183 178 156 
Intercompany interest expense and other7 7 10 
Total interest charges190 185 166 
Income Before Income Taxes1,286 700 623 
Income Tax Benefit(60)(55)(57)
Income From Continuing Operations1,346 755 680 
Income From Discontinued Operations, Net of Tax of $(5), $—, and $—
7 — — 
Net Income Attributable to CMS Energy1,353 755 680 
Preferred Stock Dividends5 — — 
Net Income Available to Common Stockholders$1,348 $755 $680 
The accompanying notes are an integral part of these statements.
(Continued)
CMS Energy—Parent Company
Condensed Statements of Cash Flows
In Millions
Years Ended December 31202120202019
Cash Flows from Operating Activities
Net cash provided by operating activities$1,549 $507 $697 
Cash Flows from Investing Activities
Investment in subsidiaries(581)(657)(683)
Increase in notes receivable – intercompany(83)(307)— 
Net cash used in investing activities(664)(964)(683)
Cash Flows from Financing Activities
Proceeds from issuance of debt— 1,225 1,158 
Issuance of common stock26 253 12 
Issuance of preferred stock224 — — 
Retirement of long-term debt(200)(425)(738)
Debt prepayment costs— (16)— 
Payment of dividends on common and preferred stock(507)(465)(434)
Debt issuance costs and financing fees(10)(10)(18)
Change in notes payable – intercompany(28)(105)6 
Net cash provided by (used in) financing activities(495)457 (14)
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts390 — — 
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period— — — 
Cash and Cash Equivalents, Including Restricted Amounts, End of Period$390 $— $— 
The accompanying notes are an integral part of these statements.
(Continued)
CMS Energy—Parent Company
Condensed Balance Sheets
ASSETS
In Millions
December 3120212020
Current Assets
Cash and cash equivalents$390 $— 
Notes and accrued interest receivable – intercompany463 358 
Accounts receivable – intercompany and related parties5 3 
Accrued taxes— 48 
Prepayments and other current assets1 1 
Total current assets859 410 
Other Non‑current Assets
Deferred income taxes147 91 
Investments in subsidiaries9,870 9,372 
Other investments 6 5 
Other8 5 
Total other non‑current assets10,031 9,473 
Total Assets$10,890 $9,883 
LIABILITIES AND EQUITY
In Millions
December 3120212020
Current Liabilities
Current portion of long-term debt$— $200 
Accounts and notes payable – intercompany61 69 
Accrued interest, including intercompany33 33 
Accrued taxes83 — 
Other current liabilities8 9 
Total current liabilities185 311 
Non‑current Liabilities
Long-term debt3,928 3,926 
Notes payable – intercompany112 116 
Postretirement benefits19 21 
Other non‑current liabilities15 13 
Total non‑current liabilities4,074 4,076 
Equity
Common stockholders’ equity6,407 5,496 
Preferred stock224 — 
Total equity6,631 5,496 
Total Liabilities and Equity$10,890 $9,883 
The accompanying notes are an integral part of these statements.
Basis of PresentationCMS 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 $633 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 swap agreements entered into with CMS ERM
•to third parties under certain agreements entered into with Grand River Wind, LLC, a wholly owned subsidiary of CMS Enterprises
•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
•to a tax equity investor under certain agreements in connection with the purchase of a VIE
•to Regions Bank related to the sale of EnerBank
The expiry dates of these guarantees vary, depending upon contractual provisions or upon the statute of limitations under the relevant governing law.
Note Payable—IntercompanyCMS 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. This note payable is not recorded at fair value; however, its carrying value approximates fair value at December 31, 2021. This fair value measurement is classified in Level 3 within the fair value hierarchy.Preferred Stock
In 2021, CMS Energy issued 9.2 million depositary shares, each representing a 1/1,000th interest in a share of its cumulative Series C preferred stock, traded on the New York Stock Exchange under the symbol CMS PRC, at a price of $25.00 per depositary share. The transaction resulted in net proceeds of $224 million, which was used for general corporate purposes. Dividends on the preferred stock accumulate at an annual rate of 4.200 percent and are payable quarterly.
The Series C preferred stock has no maturity or mandatory redemption date and is not redeemable at the option of the holders. CMS Energy may, at its option, redeem the Series C preferred stock, in whole or in part, at a price equal to $25,000 per share (equivalent to $25.00 per depositary share), plus accumulated and unpaid dividends, at any time on or after July 15, 2026. The Series C preferred stock ranks senior to CMS Energy’s common stock with respect to dividend rights and distribution rights upon liquidation.
v3.22.0.1
Schedule II - Valuation and Qualifying Accounts and Reserves
 12 Months Ended
Dec. 31, 2021
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, 2021, 2020, and 2019
In Millions
DescriptionBalance at Beginning of PeriodCharged to Expense
Charged to Other Accounts
DeductionsBalance at End of Period
Allowance for uncollectible accounts1
2021$29 $22 $— $31 $20 
202020 33 — 24 29 
201920 29 — 29 20 
Deferred tax valuation allowance
2021$1 $1 $— $— $2 
20202 — — 1 1 
20198 — — 6 2 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
Consumers Energy Company
Years Ended December 31, 2021, 2020, and 2019
In Millions
DescriptionBalance at Beginning of PeriodCharged to ExpenseCharged to Other AccountsDeductionsBalance at End of Period
Allowance for uncollectible accounts1
2021$29 $22 $— $31 $20 
202020 33 — 24 29 
201920 29 — 29 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, 2021, 2020, and 2019
In Millions
DescriptionBalance at Beginning of PeriodCharged to Expense
Charged to Other Accounts
DeductionsBalance at End of Period
Allowance for uncollectible accounts1
2021$29 $22 $— $31 $20 
202020 33 — 24 29 
201920 29 — 29 20 
Deferred tax valuation allowance
2021$1 $1 $— $— $2 
20202 — — 1 1 
20198 — — 6 2 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
Consumers Energy Company
Years Ended December 31, 2021, 2020, and 2019
In Millions
DescriptionBalance at Beginning of PeriodCharged to ExpenseCharged to Other AccountsDeductionsBalance at End of Period
Allowance for uncollectible accounts1
2021$29 $22 $— $31 $20 
202020 33 — 24 29 
201920 29 — 29 20 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
v3.22.0.1
Significant Accounting Policies (Policy)
 12 Months Ended
Dec. 31, 2021
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, CMS Enterprises, 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.
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. 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 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.
Additionally, CMS Energy uses interest rate swaps to manage its interest rate risk on certain long-term debt transactions.
CMS Energy and Consumers record derivative contracts that do not qualify for the normal purchases and sales exception at fair value on their consolidated balance sheets. At CMS Energy, if the derivative is accounted for as a cash flow hedge, unrealized gains and losses from changes in the fair value of the derivative are recognized in AOCI and subsequently recognized in earnings when the hedged transactions impact earnings. If the derivative is accounted for as a fair value hedge, changes in the fair value of the derivative and changes in the fair value of the hedged item due to the hedged risk are recognized in earnings. For the FTRs at Consumers, changes in fair value 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 and forward equity sales. CMS Energy computes the effect on potential common stock using the treasury stock method. 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.
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: Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment. CMS Energy’s non‑regulated businesses use the deferral method of accounting for investment tax credits. Under the deferral method, the book basis of the associated assets is reduced by the amount of the credit, resulting in lower depreciation expense over the life of the assets. Furthermore, the tax basis of the assets is reduced by 50 percent of the related credit, resulting in a net deferred tax asset. CMS Energy recognizes the tax benefit of this basis difference as a reduction to income tax expense in the year in which the plant reaches commercial operation.
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 Consumers’ real and personal property assessed by local taxing authorities. Consumers records 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 Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
Reclassifications Reclassifications: CMS Energy and Consumers have reclassified certain prior period amounts to conform to the presentation in the present period. The most significant of these reclassifications is related to CMS Energy’s sale of EnerBank to Regions Bank in October 2021. The assets and liabilities of EnerBank are presented as held for sale on CMS Energy’s consolidated balance sheets at December 31, 2020. Additionally, 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 years ended December 31, 2021, 2020, and 2019. For information regarding the sale of EnerBank, see Note 20, Exit Activities and Discontinued Operations.
Renewable Energy Grant Renewable Energy Grant: In 2013, Consumers received a renewable energy cash grant for Lake Winds® Energy Park under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Upon receipt of the grant, Consumers recorded a regulatory liability, which Consumers is amortizing 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. Consumers recorded the deferred income taxes related to the grant as a reduction of the book basis of Lake Winds® Energy Park.
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, except pollution control facilities on its fossil-fuel-fired power plants. 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 scales MP-2021 for 2021, MP-2020 for 2020, and MP-2019 for 2019. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table for 2021 and 2020 and the RP-2014 Mortality Table for 2019, with improvement scales MP-2020 for 2021, MP-2019 for 2020, and MP-2018 for 2019.
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.
3CMS 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.
4CMS 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 6.75 percent in 2021. The actual return on the assets of the DB Pension Plans was 12.0 percent in 2021, 13.6 percent in 2020, and 21.0 percent in 2019.
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, 2021 and 2020, and nine years for the year ended December 31, 2019. For DB Pension Plan B, the estimated period of amortization of gains and losses was 18 years for the year ended December 31, 2021, 19 years for the year ended December 31, 2020, and 20 years for the year ended December 31, 2019. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2021 and 2020, and ten years for the year ended December 31, 2019.
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 DB Pension Plan A 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 scales MP-2021 for 2021, MP-2020 for 2020, and MP-2019 for 2019. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table for 2021 and 2020 and the RP-2014 Mortality Table for 2019, with improvement scales MP-2020 for 2021, MP-2019 for 2020, and MP-2018 for 2019.
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.
3CMS 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.
4CMS 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 6.75 percent in 2021. The actual return on the assets of the DB Pension Plans was 12.0 percent in 2021, 13.6 percent in 2020, and 21.0 percent in 2019.
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, 2021 and 2020, and nine years for the year ended December 31, 2019. For DB Pension Plan B, the estimated period of amortization of gains and losses was 18 years for the year ended December 31, 2021, 19 years for the year ended December 31, 2020, and 20 years for the year ended December 31, 2019. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2021 and 2020, and ten years for the year ended December 31, 2019.
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 DB Pension Plan A 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.
Cash and Cash Equivalents Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Consolidation, Variable Interest Entity Aviator Wind Equity Holdings and Aviator Wind represent VIEs. In accordance with the associated limited liability company operating agreement, the tax equity investor is guaranteed preferred returns from Aviator Wind. However, CMS Enterprises manages and controls the operating activities of Aviator Wind Equity Holdings and, ultimately, Aviator Wind. As a result, CMS Enterprises is the primary beneficiary of Aviator Wind Equity Holdings and Aviator Wind, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies.CMS Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While CMS Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships.
Consumers Energy Company  
Significant Accounting Policies [Line Items]  
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, CMS Enterprises, 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.
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. 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 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.
Additionally, CMS Energy uses interest rate swaps to manage its interest rate risk on certain long-term debt transactions.
CMS Energy and Consumers record derivative contracts that do not qualify for the normal purchases and sales exception at fair value on their consolidated balance sheets. At CMS Energy, if the derivative is accounted for as a cash flow hedge, unrealized gains and losses from changes in the fair value of the derivative are recognized in AOCI and subsequently recognized in earnings when the hedged transactions impact earnings. If the derivative is accounted for as a fair value hedge, changes in the fair value of the derivative and changes in the fair value of the hedged item due to the hedged risk are recognized in earnings. For the FTRs at Consumers, changes in fair value 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: Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment. CMS Energy’s non‑regulated businesses use the deferral method of accounting for investment tax credits. Under the deferral method, the book basis of the associated assets is reduced by the amount of the credit, resulting in lower depreciation expense over the life of the assets. Furthermore, the tax basis of the assets is reduced by 50 percent of the related credit, resulting in a net deferred tax asset. CMS Energy recognizes the tax benefit of this basis difference as a reduction to income tax expense in the year in which the plant reaches commercial operation.
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 Consumers’ real and personal property assessed by local taxing authorities. Consumers records 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 Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
Reclassifications Reclassifications: CMS Energy and Consumers have reclassified certain prior period amounts to conform to the presentation in the present period. The most significant of these reclassifications is related to CMS Energy’s sale of EnerBank to Regions Bank in October 2021. The assets and liabilities of EnerBank are presented as held for sale on CMS Energy’s consolidated balance sheets at December 31, 2020. Additionally, 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 years ended December 31, 2021, 2020, and 2019. For information regarding the sale of EnerBank, see Note 20, Exit Activities and Discontinued Operations.
Renewable Energy Grant Renewable Energy Grant: In 2013, Consumers received a renewable energy cash grant for Lake Winds® Energy Park under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Upon receipt of the grant, Consumers recorded a regulatory liability, which Consumers is amortizing 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. Consumers recorded the deferred income taxes related to the grant as a reduction of the book basis of Lake Winds® Energy Park.
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, except pollution control facilities on its fossil-fuel-fired power plants. 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 scales MP-2021 for 2021, MP-2020 for 2020, and MP-2019 for 2019. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table for 2021 and 2020 and the RP-2014 Mortality Table for 2019, with improvement scales MP-2020 for 2021, MP-2019 for 2020, and MP-2018 for 2019.
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.
3CMS 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.
4CMS 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 6.75 percent in 2021. The actual return on the assets of the DB Pension Plans was 12.0 percent in 2021, 13.6 percent in 2020, and 21.0 percent in 2019.
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, 2021 and 2020, and nine years for the year ended December 31, 2019. For DB Pension Plan B, the estimated period of amortization of gains and losses was 18 years for the year ended December 31, 2021, 19 years for the year ended December 31, 2020, and 20 years for the year ended December 31, 2019. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2021 and 2020, and ten years for the year ended December 31, 2019.
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 DB Pension Plan A 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 scales MP-2021 for 2021, MP-2020 for 2020, and MP-2019 for 2019. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table for 2021 and 2020 and the RP-2014 Mortality Table for 2019, with improvement scales MP-2020 for 2021, MP-2019 for 2020, and MP-2018 for 2019.
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.
3CMS 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.
4CMS 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 6.75 percent in 2021. The actual return on the assets of the DB Pension Plans was 12.0 percent in 2021, 13.6 percent in 2020, and 21.0 percent in 2019.
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, 2021 and 2020, and nine years for the year ended December 31, 2019. For DB Pension Plan B, the estimated period of amortization of gains and losses was 18 years for the year ended December 31, 2021, 19 years for the year ended December 31, 2020, and 20 years for the year ended December 31, 2019. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2021 and 2020, and ten years for the year ended December 31, 2019.
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 DB Pension Plan A 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.
Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather‑normalized, non‑fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative‑revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Cash and Cash Equivalents Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
v3.22.0.1
Regulatory Matters (Tables) - Consumers Energy Company
 12 Months Ended
Dec. 31, 2021
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 31End of Recovery or Refund Period20212020
Regulatory assets
Current
Energy waste reduction plan incentive1
2022$42 $34 
Deferred capital spending2
2021— 6 
Other20224 2 
Total current regulatory assets$46 $42 
Non-current
Postretirement benefits3
various$837 $1,231 
Costs of coal-fueled electric generating units to be retired2
various678 678 
ARO4
various247 216 
Securitized costs2
2029193 221 
MGP sites4
various112 120 
Unamortized loss on reacquired debt4
various104 108 
Energy waste reduction plan incentive1
202346 42 
Energy waste reduction plan4
various13 16 
Demand response program4
various10 10 
Othervarious19 11 
Total non-current regulatory assets$2,259 $2,653 
Total regulatory assets$2,305 $2,695 
Regulatory liabilities
Current
Income taxes, net2022$138 $105 
Reserve for customer refunds20222 28 
Voluntary transmission asset sale gain share2021— 14 
Other20226 4 
Total current regulatory liabilities$146 $151 
Non-current
Cost of removalvarious$2,375 $2,245 
Income taxes, netvarious1,297 1,419 
Postretirement benefitsvarious54 — 
Renewable energy grant204347 49 
Renewable energy plan202813 9 
AROvarious— 11 
Othervarious16 11 
Total non-current regulatory liabilities$3,802 $3,744 
Total regulatory liabilities$3,948 $3,895 
1These 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.
2The MPSC has provided, or Consumers expects, a specific return on these regulatory assets.
3This regulatory asset is included in rate base, thereby providing a return.
4These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment.
Schedule of Regulatory Liabilities
Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets:
In Millions
December 31End of Recovery or Refund Period20212020
Regulatory assets
Current
Energy waste reduction plan incentive1
2022$42 $34 
Deferred capital spending2
2021— 6 
Other20224 2 
Total current regulatory assets$46 $42 
Non-current
Postretirement benefits3
various$837 $1,231 
Costs of coal-fueled electric generating units to be retired2
various678 678 
ARO4
various247 216 
Securitized costs2
2029193 221 
MGP sites4
various112 120 
Unamortized loss on reacquired debt4
various104 108 
Energy waste reduction plan incentive1
202346 42 
Energy waste reduction plan4
various13 16 
Demand response program4
various10 10 
Othervarious19 11 
Total non-current regulatory assets$2,259 $2,653 
Total regulatory assets$2,305 $2,695 
Regulatory liabilities
Current
Income taxes, net2022$138 $105 
Reserve for customer refunds20222 28 
Voluntary transmission asset sale gain share2021— 14 
Other20226 4 
Total current regulatory liabilities$146 $151 
Non-current
Cost of removalvarious$2,375 $2,245 
Income taxes, netvarious1,297 1,419 
Postretirement benefitsvarious54 — 
Renewable energy grant204347 49 
Renewable energy plan202813 9 
AROvarious— 11 
Othervarious16 11 
Total non-current regulatory liabilities$3,802 $3,744 
Total regulatory liabilities$3,948 $3,895 
1These 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.
2The MPSC has provided, or Consumers expects, a specific return on these regulatory assets.
3This regulatory asset is included in rate base, thereby providing a return.4These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment
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 3120212020
Assets
GCR underrecoveries$25 $— 
Accounts receivable and accrued revenue$25 $— 
Liabilities
PSCR overrecoveries$12 $5 
GCR overrecoveries— 15 
Accrued rate refunds$12 $20 
v3.22.0.1
Contingencies and Commitments (Tables)
 12 Months Ended
Dec. 31, 2021
Site Contingency [Line Items]  
Expected Remediation Costs By Year CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs in each of the next five years:
In Millions
20222023202420252026
CMS Energy
Long-term leachate disposal and operating and maintenance costs$4 $4 $4 $4 $4 
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2021:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1
September 2020indefinite$314 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite2254 
Guarantee3
July 2011indefinite30 — 
Consumers
Guarantee3
July 2011indefinite$30 $— 
1In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 19, Variable Interest Entities.
2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 20, Exit Activities and Discontinued Operations. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Contractual purchase obligations Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2021 for each of the periods shown:
In Millions
Payments Due
Total20222023202420252026Beyond 2026
CMS Energy, including Consumers
Total PPAs$8,028 $828 $747 $762 $709 $606 $4,376 
Other4,445 1,489 1,657 412 639 36 212 
Total purchase obligations$12,473 $2,317 $2,404 $1,174 $1,348 $642 $4,588 
Consumers
PPAs
MCV PPA$2,204 $349 $348 $346 $306 $231 $624 
Palisades PPA116 116 — — — — — 
Related-party PPAs342 65 65 65 47 29 71 
Other PPAs5,366 298 334 351 356 346 3,681 
Total PPAs$8,028 $828 $747 $762 $709 $606 $4,376 
Other3,950 1,381 1,596 364 594 12 3 
Total purchase obligations$11,978 $2,209 $2,343 $1,126 $1,303 $618 $4,379 
Consumers Energy Company  
Site Contingency [Line Items]  
Expected Remediation Costs By Year Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years:
In Millions
20222023202420252026
Consumers
Remediation and other response activity costs$3 $9 $24 $11 $1 
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2021:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1
September 2020indefinite$314 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite2254 
Guarantee3
July 2011indefinite30 — 
Consumers
Guarantee3
July 2011indefinite$30 $— 
1In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 19, Variable Interest Entities.
2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 20, Exit Activities and Discontinued Operations. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Contractual purchase obligations Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2021 for each of the periods shown:
In Millions
Payments Due
Total20222023202420252026Beyond 2026
CMS Energy, including Consumers
Total PPAs$8,028 $828 $747 $762 $709 $606 $4,376 
Other4,445 1,489 1,657 412 639 36 212 
Total purchase obligations$12,473 $2,317 $2,404 $1,174 $1,348 $642 $4,588 
Consumers
PPAs
MCV PPA$2,204 $349 $348 $346 $306 $231 $624 
Palisades PPA116 116 — — — — — 
Related-party PPAs342 65 65 65 47 29 71 
Other PPAs5,366 298 334 351 356 346 3,681 
Total PPAs$8,028 $828 $747 $762 $709 $606 $4,376 
Other3,950 1,381 1,596 364 594 12 3 
Total purchase obligations$11,978 $2,209 $2,343 $1,126 $1,303 $618 $4,379 
v3.22.0.1
Financings and Capitalization (Tables)
 12 Months Ended
Dec. 31, 2021
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
(%)		Maturity20212020
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 
Term loan facilityvariable2021— 200 
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$3,985 $4,185 
Consumers8,505 8,197 
CMS Enterprises, including subsidiaries
Term loan facilityvariable
4
202578 85 
Total principal amount outstanding$12,568 $12,467 
Current amounts(373)(571)
Unamortized discounts(31)(33)
Unamortized issuance costs(118)(119)
Total long-term debt$12,046 $11,744 
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.
4A subsidiary of CMS Enterprises issued non‑recourse debt to finance the acquisition of a wind generation project in Northwest Ohio. The interest rate for the debt is three-month LIBOR plus 1.500 percent through October 2022 and three-month LIBOR plus 1.750 percent thereafter. At December 31, 2021 and 2020, the interest rate was 1.724 percent and 1.754 percent, respectively. The same subsidiary of CMS Enterprises entered into interest rate swaps with the lending banks to fix the interest charges associated with the debt, at a rate of 4.702 percent through October 2022 and 4.952 percent thereafter. Principal and interest payments are made quarterly. For information about the interest rate swaps, see Note 5, Fair Value Measurements.
Schedule of Major Long-Term Debt Transactions
Presented in the following table is a summary of major long-term debt retirements during year ended December 31, 2021:
Principal
(In Millions)		Interest RateRetirement DateMaturity Date
CMS Energy, parent only
Term Loan facility$200 variableOctober 2021November 2021
Schedule of Debt Maturities 2021, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20222023202420252026
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$— $— $250 $250 $300 
Consumers
365 654 332 31 32 
CMS Enterprises, including subsidiaries8 9 10 51 — 
Total CMS Energy$373 $663 $592 $332 $332 
Consumers
Long-term debt$365 $654 $332 $31 $32 
Schedule of Revolving Credit Facilities The following credit facilities with banks were available at December 31, 2021:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 20241
$550 $— $24 $526 
September 23, 20222
31 — 31 — 
CMS Enterprises, including subsidiaries
September 25, 20253
$39 $— $39 $— 
September 30, 20254
18 — 8 10 
Consumers5
June 5, 2024
$850 $— $12 $838 
November 19, 2023
250 — 8 242 
April 18, 2022
30 — 30 — 
1There were no borrowings under this facility during the year ended December 31, 2021.
2The maximum aggregate of letters of credit that may be issued under this facility is $50 million. The amount remaining under the facility is uncommitted.
3This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 19, Variable Interest Entities.
4Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. There were no borrowings under this facility during the year ended December 31, 2021.
5Obligations under these facilities are secured by first mortgage bonds of Consumers. There were no borrowings under these facilities during the year ended December 31, 2021.
Schedule of Forward Contracts Presented in the following table are details of CMS Energy’s forward sales contracts under this program at December 31, 2021:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialDecember 31, 2021
September 15, 2020June 30, 2022846,759$61.04 $58.51 
December 22, 2020June 22, 2022115,59561.81 59.73 
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
(%)		Maturity20212020
Consumers
First mortgage bonds
0.350 2023$300 $300 
3.375 2023325 325 
3.125 2024250 250 
3.190 202452 52 
3.680 2027100 100 
3.390 202735 35 
3.800 2028300 300 
3.180 2032100 100 
5.800 2035175 175 
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 — 
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 
$8,197 $7,897 
Tax-exempt revenue bonds0.875 
2
203535 — 
1.800 
3
204975 75 
$110 $75 
Securitization bonds3.290 
4
2025-2029
5
198 225 
Total principal amount outstanding$8,505 $8,197 
Current amounts(365)(364)
Unamortized discounts(28)(29)
Unamortized issuance costs(62)(62)
Total long-term debt$8,050 $7,742 
1The variable-rate bonds bear interest quarterly at a rate of three-month LIBOR minus 0.300 percent, subject to a zero-percent floor (zero percent at December 31, 2021) and (zero percent at December 31, 2020). 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, 2021.
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 3.290 percent at December 31, 2021 and 3.250 percent at December 31, 2020.
5Principal and interest payments are made semiannually.
Schedule of Major Long-Term Debt Transactions Presented in the following table is a summary of major long-term debt issuances during 2021:
Principal
(In Millions)		Interest RateIssuance DateMaturity Date
Consumers
First mortgage bonds$300 2.650%August 2021August 2052
Tax-exempt revenue bonds1
35 0.875%October 2021April 2035
1    These bonds were repurchased, in lieu of redemption, in July 2020. In October 2021, the bonds were remarketed to the public and the interest rate on the bonds will reset in October 2026.
Schedule of Debt Maturities 2021, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20222023202420252026
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$— $— $250 $250 $300 
Consumers
365 654 332 31 32 
CMS Enterprises, including subsidiaries8 9 10 51 — 
Total CMS Energy$373 $663 $592 $332 $332 
Consumers
Long-term debt$365 $654 $332 $31 $32 
Schedule of Revolving Credit Facilities The following credit facilities with banks were available at December 31, 2021:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 20241
$550 $— $24 $526 
September 23, 20222
31 — 31 — 
CMS Enterprises, including subsidiaries
September 25, 20253
$39 $— $39 $— 
September 30, 20254
18 — 8 10 
Consumers5
June 5, 2024
$850 $— $12 $838 
November 19, 2023
250 — 8 242 
April 18, 2022
30 — 30 — 
1There were no borrowings under this facility during the year ended December 31, 2021.
2The maximum aggregate of letters of credit that may be issued under this facility is $50 million. The amount remaining under the facility is uncommitted.
3This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 19, Variable Interest Entities.
4Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. There were no borrowings under this facility during the year ended December 31, 2021.
5Obligations under these facilities are secured by first mortgage bonds of Consumers. There were no borrowings under these facilities during the year ended December 31, 2021.
Schedule of Preferred Stock Presented in the following table are details of Consumers’ preferred stock at December 31, 2021 and 2020:
Par ValueOptional Redemption PriceNumber of Shares AuthorizedNumber of Shares Outstanding
Cumulative, with no mandatory redemption
$100 $110 7,500,000373,148
v3.22.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Assets And Liabilities Measured At Fair Value On A Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
December 312021202020212020
Assets1
Restricted cash equivalents$24 $17 $22 $15 
Nonqualified deferred compensation plan assets27 23 21 18 
Derivative instruments2 1 2 1 
Total assets$53 $41 $45 $34 
Liabilities1
Nonqualified deferred compensation plan liabilities$27 $23 $21 $18 
Derivative instruments7 11 — — 
Total liabilities$34 $34 21 $18 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Consumers Energy Company  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Assets And Liabilities Measured At Fair Value On A Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
December 312021202020212020
Assets1
Restricted cash equivalents$24 $17 $22 $15 
Nonqualified deferred compensation plan assets27 23 21 18 
Derivative instruments2 1 2 1 
Total assets$53 $41 $45 $34 
Liabilities1
Nonqualified deferred compensation plan liabilities$27 $23 $21 $18 
Derivative instruments7 11 — — 
Total liabilities$34 $34 21 $18 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Assets Reported at Fair Value on a Nonrecurring Basis
Presented in the following table are Consumers’ assets, by level within the fair value hierarchy, reported at fair value on a nonrecurring basis during the year ended December 31, 2021:
In Millions
Level 1Level 2Level 3Gains (Losses)
Assets held for sale$— $15 $— $(4)
v3.22.0.1
Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2021
Financial Instruments [Line Items]  
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
December 31, 2021December 31, 2020
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $17 $17 $— $— $17 
Liabilities
Long-term debt2
12,419 13,800 1,189 10,656 1,955 12,315 14,601 1,249 11,267 2,085 
Long-term payables3
31 32 — — 32 33 35 — — 35 
Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $17 $17 $— $— $17 
Notes receivable – related party4
104 104 — — 104 107 107 — — 107 
Liabilities
Long-term debt5
8,415 9,410 — 7,455 1,955 8,106 9,801 — 7,716 2,085 
1Includes current portion of long-term accounts receivable of $9 million at December 31, 2021 and $12 million at December 31, 2020.
2Includes current portion of long-term debt of $373 million at December 31, 2021 and $571 million at December 31, 2020.
3Includes current portion of long-term payables of $23 million at December 31, 2021 and $6 million at December 31, 2020.
4Includes current portion of notes receivable – related party of $7 million at December 31, 2021 and 2020.
5Includes current portion of long-term debt of $365 million at December 31, 2021 and $364 million at December 31, 2020.
Consumers Energy Company  
Financial Instruments [Line Items]  
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
December 31, 2021December 31, 2020
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $17 $17 $— $— $17 
Liabilities
Long-term debt2
12,419 13,800 1,189 10,656 1,955 12,315 14,601 1,249 11,267 2,085 
Long-term payables3
31 32 — — 32 33 35 — — 35 
Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $17 $17 $— $— $17 
Notes receivable – related party4
104 104 — — 104 107 107 — — 107 
Liabilities
Long-term debt5
8,415 9,410 — 7,455 1,955 8,106 9,801 — 7,716 2,085 
1Includes current portion of long-term accounts receivable of $9 million at December 31, 2021 and $12 million at December 31, 2020.
2Includes current portion of long-term debt of $373 million at December 31, 2021 and $571 million at December 31, 2020.
3Includes current portion of long-term payables of $23 million at December 31, 2021 and $6 million at December 31, 2020.
4Includes current portion of notes receivable – related party of $7 million at December 31, 2021 and 2020.
5Includes current portion of long-term debt of $365 million at December 31, 2021 and $364 million at December 31, 2020.
v3.22.0.1
Plant, Property, and Equipment (Tables)
 12 Months Ended
Dec. 31, 2021
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		20212020
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 - 125
$28,771 $26,757 
Enterprises
Independent power production1
2 - 40
1,121 1,112 
Other
3 - 5
1 1 
Plant, property, and equipment, gross$29,893 $27,870 
Construction work in progress961 1,085 
Accumulated depreciation and amortization(8,502)(7,938)
Total plant, property, and equipment2
$22,352 $21,017 
Consumers
Plant, property, and equipment, gross
Electric
Generation
22 - 125
$6,704 $6,376 
Distribution
20 - 75
9,815 9,130 
Other
5 - 50
1,309 1,326 
Assets under finance leases and other financing3
319 323 
Gas
Distribution
20 - 85
6,338 5,702 
Transmission
17 - 75
2,319 2,003 
Underground storage facilities4
27 - 75
1,117 1,046 
Other
5 - 50
814 817 
Assets under finance leases3
13 13 
Other non-utility property
3 - 51
23 21 
Plant, property, and equipment, gross$28,771 $26,757 
Construction work in progress915 1,058 
Accumulated depreciation and amortization(8,371)(7,844)
Total plant, property, and equipment2
$21,315 $19,971 
1A significant 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 and Palisades Financing.
2Consumers’ plant additions were $2.4 billion for the year ended December 31, 2021 and $2.0 billion for the year ended December 31, 2020. Consumers’ plant retirements, which include the impact of disallowances and transfers to held for sale, were $361 million for the year ended December 31, 2021, and $220 million for the year ended December 31, 2020.
3For information regarding the amortization terms of Consumers’ assets under finance leases and other financing, see Note 8, Leases and Palisades Financing.
4Underground storage includes base natural gas of $26 million at December 31, 2021 and 2020. Base natural gas is not subject to depreciation.
Schedule of Finite-Lived Intangible Assets by Major Class Table Presented in the following table are details about CMS Energy’s and Consumers’ intangible assets:
In Millions
DescriptionAmortization
Life in Years		December 31, 2021December 31, 2020
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
CMS Energy, including Consumers
Software development
3 - 15
$840 $592 $856 $568 
Rights of way
50 - 85
211 60 197 57 
Franchises and consents
5 - 50
16 10 16 10 
Leasehold improvements
various2
9 6 10 7 
Other intangiblesvarious26 16 26 16 
Total$1,102 $684 $1,105 $658 
Consumers
Software development
3 - 15
$840 $592 $856 $568 
Rights of way
50 - 85
211 60 197 57 
Franchises and consents
5 - 50
16 10 16 10 
Leasehold improvements
various2
9 6 10 7 
Other intangiblesvarious26 16 25 16 
Total$1,102 $684 $1,104 $658 
1Consumers’ intangible asset additions were $88 million for the year ended December 31, 2021 and $69 million for the year ended December 31, 2020. Consumers’ intangible asset retirements were $91 million for the year ended December 31, 2021 and $65 million for the year ended December 31, 2020.
2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.
Public Utilities Property Plant and Equipment Schedule of Accumulated Depreciation and Amortization Table Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:
In Millions
Years Ended December 3120212020
CMS Energy, including Consumers
Utility plant assets$8,366 $7,841 
Non-utility plant assets136 97 
Consumers
Utility plant assets$8,366 $7,841 
Non-utility plant assets5 3 
Schedule 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 31202120202019
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$975 $901 $841 
Amortization expense
Software108 112 119 
Other intangible assets4 4 3 
Securitized regulatory assets27 26 26 
Total depreciation and amortization expense$1,114 $1,043 $989 
Consumers
Depreciation expense – plant, property, and equipment$938 $881 $827 
Amortization expense
Software108 112 119 
Other intangible assets4 4 3 
Securitized regulatory assets27 26 26 
Total depreciation and amortization expense$1,077 $1,023 $975 
Schedule Of Estimated Amortization Expense For Intangibles
Presented in the following table is CMS Energy’s and Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20222023202420252026
CMS Energy, including Consumers
Intangible asset amortization expense$108 $94 $84 $86 $84 
Consumers
Intangible asset amortization expense$108 $94 $84 $86 $84 
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		20212020
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 - 125
$28,771 $26,757 
Enterprises
Independent power production1
2 - 40
1,121 1,112 
Other
3 - 5
1 1 
Plant, property, and equipment, gross$29,893 $27,870 
Construction work in progress961 1,085 
Accumulated depreciation and amortization(8,502)(7,938)
Total plant, property, and equipment2
$22,352 $21,017 
Consumers
Plant, property, and equipment, gross
Electric
Generation
22 - 125
$6,704 $6,376 
Distribution
20 - 75
9,815 9,130 
Other
5 - 50
1,309 1,326 
Assets under finance leases and other financing3
319 323 
Gas
Distribution
20 - 85
6,338 5,702 
Transmission
17 - 75
2,319 2,003 
Underground storage facilities4
27 - 75
1,117 1,046 
Other
5 - 50
814 817 
Assets under finance leases3
13 13 
Other non-utility property
3 - 51
23 21 
Plant, property, and equipment, gross$28,771 $26,757 
Construction work in progress915 1,058 
Accumulated depreciation and amortization(8,371)(7,844)
Total plant, property, and equipment2
$21,315 $19,971 
1A significant 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 and Palisades Financing.
2Consumers’ plant additions were $2.4 billion for the year ended December 31, 2021 and $2.0 billion for the year ended December 31, 2020. Consumers’ plant retirements, which include the impact of disallowances and transfers to held for sale, were $361 million for the year ended December 31, 2021, and $220 million for the year ended December 31, 2020.
3For information regarding the amortization terms of Consumers’ assets under finance leases and other financing, see Note 8, Leases and Palisades Financing.
4Underground storage includes base natural gas of $26 million at December 31, 2021 and 2020. Base natural gas is not subject to depreciation.
Assets Under Finance Leases and Other Financing: Presented in the following table are further details about changes in Consumers’ assets under finance leases and other financing:
In Millions
Years Ended December 3120212020
Consumers
Balance at beginning of period$336 $340 
Additions— — 
Net retirements and other adjustments(4)(4)
Balance at end of period$332 $336 
Schedule of Finite-Lived Intangible Assets by Major Class Table Presented in the following table are details about CMS Energy’s and Consumers’ intangible assets:
In Millions
DescriptionAmortization
Life in Years		December 31, 2021December 31, 2020
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
CMS Energy, including Consumers
Software development
3 - 15
$840 $592 $856 $568 
Rights of way
50 - 85
211 60 197 57 
Franchises and consents
5 - 50
16 10 16 10 
Leasehold improvements
various2
9 6 10 7 
Other intangiblesvarious26 16 26 16 
Total$1,102 $684 $1,105 $658 
Consumers
Software development
3 - 15
$840 $592 $856 $568 
Rights of way
50 - 85
211 60 197 57 
Franchises and consents
5 - 50
16 10 16 10 
Leasehold improvements
various2
9 6 10 7 
Other intangiblesvarious26 16 25 16 
Total$1,102 $684 $1,104 $658 
1Consumers’ intangible asset additions were $88 million for the year ended December 31, 2021 and $69 million for the year ended December 31, 2020. Consumers’ intangible asset retirements were $91 million for the year ended December 31, 2021 and $65 million for the year ended December 31, 2020.
2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.
Public Utilities, Allowance For Funds Used During Construction Average Rate Presented in the following table are Consumers’ average AFUDC capitalization rates:
Years Ended December 31202120202019
Electric6.2 %6.9 %6.4 %
Gas5.6 5.7 5.8 
Public Utilities Property Plant and Equipment Schedule of Accumulated Depreciation and Amortization Table Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:
In Millions
Years Ended December 3120212020
CMS Energy, including Consumers
Utility plant assets$8,366 $7,841 
Non-utility plant assets136 97 
Consumers
Utility plant assets$8,366 $7,841 
Non-utility plant assets5 3 
Public Utilities Property Plant and Equipment Schedule of Composite Depreciation Rate Table Presented in the following table are the composite depreciation rates for Consumers’ segment properties:
Years Ended December 31202120202019
Electric utility property3.9 %3.9 %3.9 %
Gas utility property2.9 2.9 2.9 
Other property9.4 9.8 10.0 
Schedule 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 31202120202019
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$975 $901 $841 
Amortization expense
Software108 112 119 
Other intangible assets4 4 3 
Securitized regulatory assets27 26 26 
Total depreciation and amortization expense$1,114 $1,043 $989 
Consumers
Depreciation expense – plant, property, and equipment$938 $881 $827 
Amortization expense
Software108 112 119 
Other intangible assets4 4 3 
Securitized regulatory assets27 26 26 
Total depreciation and amortization expense$1,077 $1,023 $975 
Schedule Of Estimated Amortization Expense For Intangibles
Presented in the following table is CMS Energy’s and Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20222023202420252026
CMS Energy, including Consumers
Intangible asset amortization expense$108 $94 $84 $86 $84 
Consumers
Intangible asset amortization expense$108 $94 $84 $86 $84 
Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2021:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3 %51.0 %various
Utility plant in service$1,751 $499 $395 
Accumulated depreciation(897)(198)(112)
Construction work in progress21 92 13 
Net investment$875 $393 $296 
v3.22.0.1
Leases and Palisades Financing - (Tables)
 12 Months Ended
Dec. 31, 2021
Leases [Line Items]  
Assets and Liabilities of Lessee
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
CMS Energy, including ConsumersConsumers
December 312021202020212020
Operating leases
Right-of-use assets1
$26$32$22$28
Lease liabilities
Current lease liabilities2
3737
Non-current lease liabilities3
23251921
Finance leases
Right-of-use assets$57$65$57$65
Lease liabilities4
Current lease liabilities6767
Non-current lease liabilities46534653
Weighted-average remaining lease term (in years)
Operating leases23192118
Finance leases12121212
Weighted-average discount rate
Operating leases4.0 %3.9 %3.9 %3.8 %
Finance leases5
1.7 %1.8 %1.7 %1.8 %
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 $25 million, of which less than $1 million was current, at December 31, 2021 and 2020.
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.
Lease Cost Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
Years Ended December 3120212020
CMS Energy, including Consumers
Operating lease costs$8 $9 
Finance lease costs
Amortization of right-of-use assets7 6 
Interest on lease liabilities16 17 
Variable lease costs90 94 
Short-term lease costs22 17 
Total lease costs$143 $143 
Consumers
Operating lease costs$8 $9 
Finance lease costs
Amortization of right-of-use assets7 6 
Interest on lease liabilities16 17 
Variable lease costs90 94 
Short-term lease costs21 16 
Total lease costs$142 $142 
Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120212020
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$8 $11 
Cash used in operating activities for finance leases16 17 
Cash used in financing activities for finance leases7 6 
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$8 $9 
Cash used in operating activities for finance leases16 17 
Cash used in financing activities for finance leases7 6 
Lessee Operating Lease Liability and Finance Liability Maturity
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non-cancelable leases:
In Millions
Finance Leases
December 31, 2021Operating LeasesPipelines and PPAsOtherTotal
CMS Energy, including Consumers
2022$5 $14 $5 $19 
20232 13 5 18 
20242 13 3 16 
20251 13 1 14 
20261 13 2 15 
2027 and thereafter32 51 9 60 
Total minimum lease payments$43 $117 $25 $142 
Less discount17 88 2 90 
Present value of minimum lease payments$26 $29 $23 $52 
Consumers
2022$4 $14 $5 $19 
20232 13 5 18 
20241 13 3 16 
20251 13 1 14 
20261 13 2 15 
2027 and thereafter27 51 9 60 
Total minimum lease payments$36 $117 $25 $142 
Less discount14 88 2 90 
Present value of minimum lease payments$22 $29 $23 $52 
Lessor, Operating Lease, Payments to be Received, Maturity
Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases:
In Millions
December 31, 2021
2022$48 
202343 
202443 
202544 
202618 
Total minimum lease payments$196 
Consumers Energy Company  
Leases [Line Items]  
Assets and Liabilities of Lessee
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
CMS Energy, including ConsumersConsumers
December 312021202020212020
Operating leases
Right-of-use assets1
$26$32$22$28
Lease liabilities
Current lease liabilities2
3737
Non-current lease liabilities3
23251921
Finance leases
Right-of-use assets$57$65$57$65
Lease liabilities4
Current lease liabilities6767
Non-current lease liabilities46534653
Weighted-average remaining lease term (in years)
Operating leases23192118
Finance leases12121212
Weighted-average discount rate
Operating leases4.0 %3.9 %3.9 %3.8 %
Finance leases5
1.7 %1.8 %1.7 %1.8 %
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 $25 million, of which less than $1 million was current, at December 31, 2021 and 2020.
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.
Lease Cost Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
Years Ended December 3120212020
CMS Energy, including Consumers
Operating lease costs$8 $9 
Finance lease costs
Amortization of right-of-use assets7 6 
Interest on lease liabilities16 17 
Variable lease costs90 94 
Short-term lease costs22 17 
Total lease costs$143 $143 
Consumers
Operating lease costs$8 $9 
Finance lease costs
Amortization of right-of-use assets7 6 
Interest on lease liabilities16 17 
Variable lease costs90 94 
Short-term lease costs21 16 
Total lease costs$142 $142 
Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120212020
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$8 $11 
Cash used in operating activities for finance leases16 17 
Cash used in financing activities for finance leases7 6 
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$8 $9 
Cash used in operating activities for finance leases16 17 
Cash used in financing activities for finance leases7 6 
Lessee Operating Lease Liability and Finance Liability Maturity
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non-cancelable leases:
In Millions
Finance Leases
December 31, 2021Operating LeasesPipelines and PPAsOtherTotal
CMS Energy, including Consumers
2022$5 $14 $5 $19 
20232 13 5 18 
20242 13 3 16 
20251 13 1 14 
20261 13 2 15 
2027 and thereafter32 51 9 60 
Total minimum lease payments$43 $117 $25 $142 
Less discount17 88 2 90 
Present value of minimum lease payments$26 $29 $23 $52 
Consumers
2022$4 $14 $5 $19 
20232 13 5 18 
20241 13 3 16 
20251 13 1 14 
20261 13 2 15 
2027 and thereafter27 51 9 60 
Total minimum lease payments$36 $117 $25 $142 
Less discount14 88 2 90 
Present value of minimum lease payments$22 $29 $23 $52 
v3.22.0.1
Asset Retirement Obligations (Tables)
 12 Months Ended
Dec. 31, 2021
Asset Retirement Obligations [Line Items]  
Schedule of Asset Retirement Obligations
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:
Company and ARO DescriptionIn-Service DateLong-Lived Assets
CMS Energy, including Consumers
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
Consumers
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 12/31/2020IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2021
CMS Energy, including Consumers
Consumers$530 $71 $(53)$24 $33 $605 
Renewable generation assets23 — — — — 23 
Total CMS Energy$553 $71 $(53)$24 $33 $628 
Consumers
Coal ash disposal areas$148 $— $(34)$5 $38 $157 
Gas distribution cut, purge, and cap240 39 (10)13 — 282 
Asbestos abatement36 — — 2 — 38 
Renewable generation assets74 16 — 3 — 93 
Gas wells plug and abandon32 16 (9)1 (5)35 
Total Consumers$530 $71 $(53)$24 $33 $605 
In Millions
Company and ARO DescriptionARO Liability 12/31/2019IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2020
CMS Energy, including Consumers
Consumers$474 $46 $(41)$23 $28 $530 
Renewable generation assets3 19 — 1 — 23 
Total CMS Energy$477 $65 $(41)$24 $28 $553 
Consumers
Coal ash disposal areas$166 $— $(24)$6 $— $148 
Gas distribution cut, purge, and cap231 1 (5)13 — 240 
Asbestos abatement34 — — 2 — 36 
Renewable generation assets21 24 — 1 28 74 
Gas wells plug and abandon22 16 (7)1 — 32 
Cable under Straits of Mackinac— 5 (5)— — — 
Total Consumers$474 $46 $(41)$23 $28 $530 
Consumers Energy Company  
Asset Retirement Obligations [Line Items]  
Schedule of Asset Retirement Obligations
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:
Company and ARO DescriptionIn-Service DateLong-Lived Assets
CMS Energy, including Consumers
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
Consumers
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 12/31/2020IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2021
CMS Energy, including Consumers
Consumers$530 $71 $(53)$24 $33 $605 
Renewable generation assets23 — — — — 23 
Total CMS Energy$553 $71 $(53)$24 $33 $628 
Consumers
Coal ash disposal areas$148 $— $(34)$5 $38 $157 
Gas distribution cut, purge, and cap240 39 (10)13 — 282 
Asbestos abatement36 — — 2 — 38 
Renewable generation assets74 16 — 3 — 93 
Gas wells plug and abandon32 16 (9)1 (5)35 
Total Consumers$530 $71 $(53)$24 $33 $605 
In Millions
Company and ARO DescriptionARO Liability 12/31/2019IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2020
CMS Energy, including Consumers
Consumers$474 $46 $(41)$23 $28 $530 
Renewable generation assets3 19 — 1 — 23 
Total CMS Energy$477 $65 $(41)$24 $28 $553 
Consumers
Coal ash disposal areas$166 $— $(24)$6 $— $148 
Gas distribution cut, purge, and cap231 1 (5)13 — 240 
Asbestos abatement34 — — 2 — 36 
Renewable generation assets21 24 — 1 28 74 
Gas wells plug and abandon22 16 (7)1 — 32 
Cable under Straits of Mackinac— 5 (5)— — — 
Total Consumers$474 $46 $(41)$23 $28 $530 
v3.22.0.1
Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2021
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, ABO, and contributions for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120212020
CMS Energy, including Consumers
Trust assets$142 $146 
ABO149 159 
Contributions— 8 
Consumers
Trust assets$104 $107 
ABO108 115 
Contributions— 5 
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 31202120202019
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A3.02 %2.73 %3.37 %
DB Pension Plan B2.79 2.41 3.17 
DB SERP2.78 2.40 3.15 
OPEB Plan2.99 2.69 3.32 
Rate of compensation increase
DB Pension Plan A3.60 3.70 3.50 
DB SERP5.50 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A2.83 %3.44 %4.55 %
DB SERP2.84 3.46 4.58 
OPEB Plan3.03 3.57 4.63 
Interest cost discount rate2,3
DB Pension Plan A1.97 2.92 4.08 
DB Pension Plan B1.70 2.74 3.93 
DB SERP1.72 2.74 3.94 
OPEB Plan1.99 2.88 4.03 
Expected long-term rate of return on plan assets4
DB Pension Plans6.75 6.75 7.00 
OPEB Plan6.75 6.75 7.00 
Rate of compensation increase
DB Pension Plan A3.70 3.50 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 scales MP-2021 for 2021, MP-2020 for 2020, and MP-2019 for 2019. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table for 2021 and 2020 and the RP-2014 Mortality Table for 2019, with improvement scales MP-2020 for 2021, MP-2019 for 2020, and MP-2018 for 2019.
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.
3CMS 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.
4CMS 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 6.75 percent in 2021. The actual return on the assets of the DB Pension Plans was 12.0 percent in 2021, 13.6 percent in 2020, and 21.0 percent in 2019.
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 31202120202019202120202019
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$53 $50 $41 $18 $16 $14 
Interest cost63 83 103 23 33 41 
Settlement loss1 1 — — — — 
Expected return on plan assets(208)(191)(162)(109)(100)(88)
Amortization of:
Net loss100 95 50 8 15 26 
Prior service cost (credit)4 1 1 (53)(56)(62)
Settlement loss6 2 — — — — 
Net periodic cost (credit)$19 $41 $33 $(113)$(92)$(69)
Consumers
Net periodic cost (credit)
Service cost$51 $49 $40 $17 $15 $13 
Interest cost59 78 97 23 31 40 
Expected return on plan assets(197)(181)(153)(102)(93)(82)
Amortization of:
Net loss96 90 47 8 15 26 
Prior service cost (credit)4 1 1 (51)(54)(61)
Settlement loss6 2 — — — — 
Net periodic cost (credit)$19 $39 $32 $(105)$(86)$(64)
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 31202120202021202020212020
CMS Energy, including Consumers
Benefit obligation at beginning of period$3,266 $2,973 $160 $150 $1,205 $1,165 
Service cost53 50 — — 18 16 
Interest cost60 79 3 4 23 33 
Plan amendments— 24 — — 5 — 
Actuarial loss (gain)(108)
1
355 
1
(4)16 (32)
1
39 
1
Benefits paid(201)(215)(10)(10)(53)(48)
Benefit obligation at end of period$3,070 $3,266 $149 $160 $1,166 $1,205 
Plan assets at fair value at beginning of period$3,402 $2,546 $— $— $1,645 $1,509 
Actual return on plan assets398 371 — — 194 182 
Company contribution— 700 10 10 — 1 
Actual benefits paid(201)(215)(10)(10)(52)(47)
Plan assets at fair value at end of period$3,599 $3,402 $— $— $1,787 $1,645 
Funded status$529 
2
$136 
2
$(149)$(160)$621 $440 
Consumers
Benefit obligation at beginning of period$117 $109 $1,158 $1,120 
Service cost— — 17 15 
Interest cost2 3 23 31 
Plan amendments— — 5 — 
Actuarial loss (gain)(3)12 (30)
1
37 
1
Benefits paid(7)(7)(51)(45)
Benefit obligation at end of period$109 $117 $1,122 $1,158 
Plan assets at fair value at beginning of period$— $— $1,535 $1,410 
Actual return on plan assets— — 182 169 
Company contribution7 7 — 1 
Actual benefits paid(7)(7)(49)(45)
Plan assets at fair value at end of period$— $— $1,668 $1,535 
Funded status$(109)$(117)$546 $377 
1The actuarial gains for 2021 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates. The actuarial loss for 2020 for the DB Pension Plans was primarily the result of lower discount rates and lower interest rates used to calculate the value of lump-sum payments. The actuarial loss for 2020 for the OPEB Plan was primarily the result of lower discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $510 million at December 31, 2021 and $138 million at December 31, 2020.
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 3120212020
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$529 $136 
OPEB Plan621 440 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP139 150 
Consumers
Non-current assets
DB Pension Plans$510 $138 
OPEB Plan546 377 
Current liabilities
DB SERP7 7 
Non-current liabilities
DB SERP102 110 
Schedule Of Net Periodic Benefit Cost Not Yet Recognized Presented in the following table are the amounts recognized in regulatory assets, regulatory liabilities, and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets and regulatory liabilities, see Note 2, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312021202020212020
CMS Energy, including Consumers
Regulatory assets (liabilities)
Net loss$812 $1,194 $136 $254 
Prior service cost (credit)25 29 (190)(246)
Regulatory assets (liabilities)$837 $1,223 $(54)$8 
AOCI
Net loss (gain)94 120 (17)(10)
Prior service cost (credit)— 1 (5)(6)
Total amounts recognized in regulatory assets (liabilities) and AOCI$931 $1,344 $(76)$(8)
Consumers
Regulatory assets (liabilities)
Net loss$812 $1,194 $136 $254 
Prior service cost (credit)25 29 (190)(246)
Regulatory assets (liabilities)$837 $1,223 $(54)$8 
AOCI
Net loss41 47 — — 
Total amounts recognized in regulatory assets (liabilities) and AOCI$878 $1,270 $(54)$8 
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, 2021December 31, 2020
TotalLevel 1Level 2TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$30 $30 $— $115 $115 $— 
U.S. government and agencies securities209 — 209 150 — 150 
Corporate debt595 — 595 540 — 540 
State and municipal bonds13 — 13 11 — 11 
Foreign corporate bonds66 — 66 41 — 41 
Mutual funds785 785 — 971 971 — 
$1,698 $815 $883 $1,828 $1,086 $742 
Pooled funds1,901 1,574 
Total$3,599 $3,402 
In Millions
OPEB Plan
December 31, 2021December 31, 2020
TotalLevel 1Level 2TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$21 $21 $— $33 $33 $— 
U.S. government and agencies securities25 — 25 18 — 18 
Corporate debt73 — 73 64 — 64 
State and municipal bonds2 — 2 2 — 2 
Foreign corporate bonds8 — 8 5 — 5 
Common stocks85 85 — 66 66 — 
Mutual funds941 941 — 807 807 — 
$1,155 $1,047 $108 $995 $906 $89 
Pooled funds632 650 
Total$1,787 $1,645 
Schedule Of Asset Allocation Presented in the following table are the investment components of the assets of CMS Energy’s DB Pension Plans and OPEB Plan as of December 31, 2021:
DB Pension PlansOPEB Plan
Equity securities54.0 %55.0 %
Fixed-income securities28.0 28.0 
Real asset investments12.0 12.0 
Multi-asset investments5.0 4.0 
Cash and Cash Equivalents1.0 1.0 
100.0 %100.0 %
Schedule Of Plan Contributions Presented in the following table are the contributions to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan:
In Millions
Years Ended December 3120212020
CMS Energy, including Consumers
DB Pension Plans$— $700 
OPEB Plan— 1 
Consumers
DB Pension Plans$— $682 
OPEB Plan— 1 
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
2022$185 $10 $52 
2023181 10 54 
2024178 10 56 
2025180 10 58 
2026178 9 59 
2027-2031876 45 308 
Consumers
2022$175 $7 $49 
2023171 7 52 
2024169 7 54 
2025170 7 55 
2026169 6 56 
2027-2031830 31 294 
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, ABO, and contributions for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120212020
CMS Energy, including Consumers
Trust assets$142 $146 
ABO149 159 
Contributions— 8 
Consumers
Trust assets$104 $107 
ABO108 115 
Contributions— 5 
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 31202120202019
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A3.02 %2.73 %3.37 %
DB Pension Plan B2.79 2.41 3.17 
DB SERP2.78 2.40 3.15 
OPEB Plan2.99 2.69 3.32 
Rate of compensation increase
DB Pension Plan A3.60 3.70 3.50 
DB SERP5.50 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A2.83 %3.44 %4.55 %
DB SERP2.84 3.46 4.58 
OPEB Plan3.03 3.57 4.63 
Interest cost discount rate2,3
DB Pension Plan A1.97 2.92 4.08 
DB Pension Plan B1.70 2.74 3.93 
DB SERP1.72 2.74 3.94 
OPEB Plan1.99 2.88 4.03 
Expected long-term rate of return on plan assets4
DB Pension Plans6.75 6.75 7.00 
OPEB Plan6.75 6.75 7.00 
Rate of compensation increase
DB Pension Plan A3.70 3.50 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 scales MP-2021 for 2021, MP-2020 for 2020, and MP-2019 for 2019. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table for 2021 and 2020 and the RP-2014 Mortality Table for 2019, with improvement scales MP-2020 for 2021, MP-2019 for 2020, and MP-2018 for 2019.
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.
3CMS 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.
4CMS 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 6.75 percent in 2021. The actual return on the assets of the DB Pension Plans was 12.0 percent in 2021, 13.6 percent in 2020, and 21.0 percent in 2019.
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 31202120202019202120202019
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$53 $50 $41 $18 $16 $14 
Interest cost63 83 103 23 33 41 
Settlement loss1 1 — — — — 
Expected return on plan assets(208)(191)(162)(109)(100)(88)
Amortization of:
Net loss100 95 50 8 15 26 
Prior service cost (credit)4 1 1 (53)(56)(62)
Settlement loss6 2 — — — — 
Net periodic cost (credit)$19 $41 $33 $(113)$(92)$(69)
Consumers
Net periodic cost (credit)
Service cost$51 $49 $40 $17 $15 $13 
Interest cost59 78 97 23 31 40 
Expected return on plan assets(197)(181)(153)(102)(93)(82)
Amortization of:
Net loss96 90 47 8 15 26 
Prior service cost (credit)4 1 1 (51)(54)(61)
Settlement loss6 2 — — — — 
Net periodic cost (credit)$19 $39 $32 $(105)$(86)$(64)
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 31202120202021202020212020
CMS Energy, including Consumers
Benefit obligation at beginning of period$3,266 $2,973 $160 $150 $1,205 $1,165 
Service cost53 50 — — 18 16 
Interest cost60 79 3 4 23 33 
Plan amendments— 24 — — 5 — 
Actuarial loss (gain)(108)
1
355 
1
(4)16 (32)
1
39 
1
Benefits paid(201)(215)(10)(10)(53)(48)
Benefit obligation at end of period$3,070 $3,266 $149 $160 $1,166 $1,205 
Plan assets at fair value at beginning of period$3,402 $2,546 $— $— $1,645 $1,509 
Actual return on plan assets398 371 — — 194 182 
Company contribution— 700 10 10 — 1 
Actual benefits paid(201)(215)(10)(10)(52)(47)
Plan assets at fair value at end of period$3,599 $3,402 $— $— $1,787 $1,645 
Funded status$529 
2
$136 
2
$(149)$(160)$621 $440 
Consumers
Benefit obligation at beginning of period$117 $109 $1,158 $1,120 
Service cost— — 17 15 
Interest cost2 3 23 31 
Plan amendments— — 5 — 
Actuarial loss (gain)(3)12 (30)
1
37 
1
Benefits paid(7)(7)(51)(45)
Benefit obligation at end of period$109 $117 $1,122 $1,158 
Plan assets at fair value at beginning of period$— $— $1,535 $1,410 
Actual return on plan assets— — 182 169 
Company contribution7 7 — 1 
Actual benefits paid(7)(7)(49)(45)
Plan assets at fair value at end of period$— $— $1,668 $1,535 
Funded status$(109)$(117)$546 $377 
1The actuarial gains for 2021 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates. The actuarial loss for 2020 for the DB Pension Plans was primarily the result of lower discount rates and lower interest rates used to calculate the value of lump-sum payments. The actuarial loss for 2020 for the OPEB Plan was primarily the result of lower discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $510 million at December 31, 2021 and $138 million at December 31, 2020.
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 3120212020
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$529 $136 
OPEB Plan621 440 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP139 150 
Consumers
Non-current assets
DB Pension Plans$510 $138 
OPEB Plan546 377 
Current liabilities
DB SERP7 7 
Non-current liabilities
DB SERP102 110 
Schedule Of Net Periodic Benefit Cost Not Yet Recognized Presented in the following table are the amounts recognized in regulatory assets, regulatory liabilities, and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets and regulatory liabilities, see Note 2, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312021202020212020
CMS Energy, including Consumers
Regulatory assets (liabilities)
Net loss$812 $1,194 $136 $254 
Prior service cost (credit)25 29 (190)(246)
Regulatory assets (liabilities)$837 $1,223 $(54)$8 
AOCI
Net loss (gain)94 120 (17)(10)
Prior service cost (credit)— 1 (5)(6)
Total amounts recognized in regulatory assets (liabilities) and AOCI$931 $1,344 $(76)$(8)
Consumers
Regulatory assets (liabilities)
Net loss$812 $1,194 $136 $254 
Prior service cost (credit)25 29 (190)(246)
Regulatory assets (liabilities)$837 $1,223 $(54)$8 
AOCI
Net loss41 47 — — 
Total amounts recognized in regulatory assets (liabilities) and AOCI$878 $1,270 $(54)$8 
Schedule Of Plan Contributions Presented in the following table are the contributions to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan:
In Millions
Years Ended December 3120212020
CMS Energy, including Consumers
DB Pension Plans$— $700 
OPEB Plan— 1 
Consumers
DB Pension Plans$— $682 
OPEB Plan— 1 
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
2022$185 $10 $52 
2023181 10 54 
2024178 10 56 
2025180 10 58 
2026178 9 59 
2027-2031876 45 308 
Consumers
2022$175 $7 $49 
2023171 7 52 
2024169 7 54 
2025170 7 55 
2026169 6 56 
2027-2031830 31 294 
v3.22.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2021
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, 2021Number 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 period817,357 $51.68 781,531 $51.73 
Granted
Restricted stock547,201 43.52 517,141 42.85 
Restricted stock units13,867 54.11 13,093 53.93 
Vested
Restricted stock(408,011)29.46 (388,009)29.55 
Restricted stock units(15,577)48.15 (14,891)48.09 
Forfeited – restricted stock(22,264)57.90 (21,780)58.01 
Nonvested at end of period932,573 $56.56 887,085 $56.19 
Year Ended December 31, 2021CMS Energy, including
Consumers		Consumers
Granted
Time-lapse awards118,290 112,128 
Market-based awards143,843 135,638 
Performance-based awards143,843 135,638 
Restricted stock units11,725 11,035 
Dividends on market-based awards15,661 14,890 
Dividends on performance-based awards15,964 15,175 
Dividends on restricted stock units2,142 2,058 
Additional market-based shares based on achievement of condition59,736 56,505 
Additional performance-based shares based on achievement of condition49,864 47,167 
Total granted561,068 530,234 
Schedule of Share-based Payment Award, Restricted Stock, Valuation 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 31202120202019
Expected volatility27.6 %14.2 %14.9 %
Expected dividend yield2.8 2.4 2.8 
Risk-free rate0.2 1.6 2.5 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, 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 31202120202019
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$43.52 $45.56 $43.57 
Restricted stock units granted54.11 49.76 50.35 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$42.85 $45.53 $43.57 
Restricted stock units granted53.93 49.70 51.15 
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Fair value of shares that vested during the year$25 $22 $26 
Compensation expense recognized22 11 22 
Income tax benefit recognized1 3 1 
Consumers
Fair value of shares that vested during the year$24 $21 $25 
Compensation expense recognized21 10 21 
Income tax benefit recognized1 3 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, 2021Number 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 period817,357 $51.68 781,531 $51.73 
Granted
Restricted stock547,201 43.52 517,141 42.85 
Restricted stock units13,867 54.11 13,093 53.93 
Vested
Restricted stock(408,011)29.46 (388,009)29.55 
Restricted stock units(15,577)48.15 (14,891)48.09 
Forfeited – restricted stock(22,264)57.90 (21,780)58.01 
Nonvested at end of period932,573 $56.56 887,085 $56.19 
Year Ended December 31, 2021CMS Energy, including
Consumers		Consumers
Granted
Time-lapse awards118,290 112,128 
Market-based awards143,843 135,638 
Performance-based awards143,843 135,638 
Restricted stock units11,725 11,035 
Dividends on market-based awards15,661 14,890 
Dividends on performance-based awards15,964 15,175 
Dividends on restricted stock units2,142 2,058 
Additional market-based shares based on achievement of condition59,736 56,505 
Additional performance-based shares based on achievement of condition49,864 47,167 
Total granted561,068 530,234 
Schedule of Share-based Payment Award, Restricted Stock, Valuation 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 31202120202019
Expected volatility27.6 %14.2 %14.9 %
Expected dividend yield2.8 2.4 2.8 
Risk-free rate0.2 1.6 2.5 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, 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 31202120202019
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$43.52 $45.56 $43.57 
Restricted stock units granted54.11 49.76 50.35 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$42.85 $45.53 $43.57 
Restricted stock units granted53.93 49.70 51.15 
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Fair value of shares that vested during the year$25 $22 $26 
Compensation expense recognized22 11 22 
Income tax benefit recognized1 3 1 
Consumers
Fair value of shares that vested during the year$24 $21 $25 
Compensation expense recognized21 10 21 
Income tax benefit recognized1 3 1 
v3.22.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
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 31202120202019
CMS Energy, including Consumers
Income from continuing operations before income taxes$823 $809 $764 
Income tax expense at statutory rate173 170 160 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect39 44 46 
TCJA excess deferred taxes1
(50)(35)(31)
Production tax credits(40)(28)(20)
Accelerated flow-through of regulatory tax benefits2
(28)(13)(13)
Research and development tax credits, net3
(3)(11)(2)
Refund of alternative minimum tax sequestration4
— (9)— 
Other, net4 (3)(9)
Income tax expense$95 $115 $131 
Effective tax rate11.5 %14.2 %17.1 %
Consumers
Income from continuing operations before income taxes$1,024 $989 $928 
Income tax expense at statutory rate215 208 195 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
54 47 53 
TCJA excess deferred taxes1
(50)(35)(31)
Accelerated flow-through of regulatory tax benefits2
(28)(13)(13)
Production tax credits(33)(19)(12)
Research and development tax credits, net3
(3)(11)(2)
Other, net1 (4)(5)
Income tax expense$156 $173 $185 
Effective tax rate15.2 %17.5 %19.9 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022.
2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022.
3In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers.
4In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.
Significant Components Of Income Tax Expense
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Current income taxes
Federal$(1)$(35)$(31)
State and local1 (2)28 
$— $(37)$(3)
Deferred income taxes
Federal49 100 84 
State and local49 57 29 
$98 $157 $113 
Deferred income tax credit(3)(5)21 
Tax expense$95 $115 $131 
Consumers
Current income taxes
Federal$(13)$3 $107 
State and local15 (7)41 
$2 $(4)$148 
Deferred income taxes
Federal103 115 (10)
State and local54 67 26 
$157 $182 $16 
Deferred income tax credit(3)(5)21 
Tax expense$156 $173 $185 
Principal Components Of Deferred Income Tax Assets And Liailities
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120212020
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$332 $483 
Net regulatory tax liability349 372 
Reserves and accruals32 62 
Total deferred income tax assets$713 $917 
Valuation allowance(2)(1)
Total deferred income tax assets, net of valuation allowance$711 $916 
Deferred income tax liabilities
Plant, property, and equipment$(2,395)$(2,287)
Employee benefits(399)(364)
Securitized costs(46)(53)
Gas inventory(22)(24)
Other(59)(51)
Total deferred income tax liabilities$(2,921)$(2,779)
Total net deferred income tax liabilities$(2,210)$(1,863)
Consumers
Deferred income tax assets
Net regulatory tax liability$349 $372 
Tax loss and credit carryforwards134 216 
Reserves and accruals24 24 
Total deferred income tax assets$507 $612 
Deferred income tax liabilities
Plant, property, and equipment$(2,341)$(2,230)
Employee benefits(388)(365)
Securitized costs(46)(53)
Gas inventory(22)(24)
Other(50)(34)
Total deferred income tax liabilities$(2,847)$(2,706)
Total net deferred income tax liabilities$(2,340)$(2,094)
Loss And Credit Carryforwards
Presented in the following table are the tax loss and credit carryforwards at December 31, 2021:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
Federal net operating loss carryforwards$3 None
State net operating loss carryforwards55 2030
Local net operating loss carryforwards3 2024 – 2040
General business credits264 2034 – 2041
Federal charitable contribution carryforwards6 2025
State charitable contribution carryforwards1 2025
Total tax attributes$332 
Consumers
Federal net operating loss carryforwards$2 None
State net operating loss carryforwards43 2030
General business credits83 2034-2041
Federal charitable contribution carryforwards5 2025
State charitable contribution carryforwards1 2025
Total tax attributes$134 
Reconciliation Of Beginning And Ending 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 31202120202019
CMS Energy, including Consumers
Balance at beginning of period$25 $23 $19 
Additions for current-year tax positions2 1 1 
Additions for prior-year tax positions— 3 3 
Reductions for prior-year tax positions— (2)— 
Balance at end of period$27 $25 $23 
Consumers
Balance at beginning of period$31 $34 $28 
Additions for current-year tax positions3 1 1 
Additions for prior-year tax positions— 4 5 
Reductions for prior-year tax positions— (8)— 
Balance at end of period$34 $31 $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 31202120202019
CMS Energy, including Consumers
Income from continuing operations before income taxes$823 $809 $764 
Income tax expense at statutory rate173 170 160 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect39 44 46 
TCJA excess deferred taxes1
(50)(35)(31)
Production tax credits(40)(28)(20)
Accelerated flow-through of regulatory tax benefits2
(28)(13)(13)
Research and development tax credits, net3
(3)(11)(2)
Refund of alternative minimum tax sequestration4
— (9)— 
Other, net4 (3)(9)
Income tax expense$95 $115 $131 
Effective tax rate11.5 %14.2 %17.1 %
Consumers
Income from continuing operations before income taxes$1,024 $989 $928 
Income tax expense at statutory rate215 208 195 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
54 47 53 
TCJA excess deferred taxes1
(50)(35)(31)
Accelerated flow-through of regulatory tax benefits2
(28)(13)(13)
Production tax credits(33)(19)(12)
Research and development tax credits, net3
(3)(11)(2)
Other, net1 (4)(5)
Income tax expense$156 $173 $185 
Effective tax rate15.2 %17.5 %19.9 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022.
2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022.
3In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers.
4In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.
Significant Components Of Income Tax Expense
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Current income taxes
Federal$(1)$(35)$(31)
State and local1 (2)28 
$— $(37)$(3)
Deferred income taxes
Federal49 100 84 
State and local49 57 29 
$98 $157 $113 
Deferred income tax credit(3)(5)21 
Tax expense$95 $115 $131 
Consumers
Current income taxes
Federal$(13)$3 $107 
State and local15 (7)41 
$2 $(4)$148 
Deferred income taxes
Federal103 115 (10)
State and local54 67 26 
$157 $182 $16 
Deferred income tax credit(3)(5)21 
Tax expense$156 $173 $185 
Principal Components Of Deferred Income Tax Assets And Liailities
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120212020
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$332 $483 
Net regulatory tax liability349 372 
Reserves and accruals32 62 
Total deferred income tax assets$713 $917 
Valuation allowance(2)(1)
Total deferred income tax assets, net of valuation allowance$711 $916 
Deferred income tax liabilities
Plant, property, and equipment$(2,395)$(2,287)
Employee benefits(399)(364)
Securitized costs(46)(53)
Gas inventory(22)(24)
Other(59)(51)
Total deferred income tax liabilities$(2,921)$(2,779)
Total net deferred income tax liabilities$(2,210)$(1,863)
Consumers
Deferred income tax assets
Net regulatory tax liability$349 $372 
Tax loss and credit carryforwards134 216 
Reserves and accruals24 24 
Total deferred income tax assets$507 $612 
Deferred income tax liabilities
Plant, property, and equipment$(2,341)$(2,230)
Employee benefits(388)(365)
Securitized costs(46)(53)
Gas inventory(22)(24)
Other(50)(34)
Total deferred income tax liabilities$(2,847)$(2,706)
Total net deferred income tax liabilities$(2,340)$(2,094)
Loss And Credit Carryforwards
Presented in the following table are the tax loss and credit carryforwards at December 31, 2021:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
Federal net operating loss carryforwards$3 None
State net operating loss carryforwards55 2030
Local net operating loss carryforwards3 2024 – 2040
General business credits264 2034 – 2041
Federal charitable contribution carryforwards6 2025
State charitable contribution carryforwards1 2025
Total tax attributes$332 
Consumers
Federal net operating loss carryforwards$2 None
State net operating loss carryforwards43 2030
General business credits83 2034-2041
Federal charitable contribution carryforwards5 2025
State charitable contribution carryforwards1 2025
Total tax attributes$134 
Reconciliation Of Beginning And Ending 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 31202120202019
CMS Energy, including Consumers
Balance at beginning of period$25 $23 $19 
Additions for current-year tax positions2 1 1 
Additions for prior-year tax positions— 3 3 
Reductions for prior-year tax positions— (2)— 
Balance at end of period$27 $25 $23 
Consumers
Balance at beginning of period$31 $34 $28 
Additions for current-year tax positions3 1 1 
Additions for prior-year tax positions— 4 5 
Reductions for prior-year tax positions— (8)— 
Balance at end of period$34 $31 $34 
v3.22.0.1
Earnings Per Share - CMS Energy (Tables)
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Basic And Diluted EPS Computations
Presented in the following table are CMS Energy’s basic and diluted EPS computations based on income from continuing operations:
In Millions, Except Per Share Amounts
Years Ended December 31202120202019
Income available to common stockholders
Income from continuing operations$728 $694 $633 
Less income (loss) attributable to noncontrolling interests(23)(3)2 
Less preferred stock dividends5 — — 
Income from continuing operations available to common stockholders – basic and diluted$746 $697 $631 
Average common shares outstanding
Weighted-average shares – basic289.0 285.0 283.0 
Add dilutive nonvested stock awards0.5 0.7 0.7 
Add dilutive forward equity sale contracts— 0.6 0.6 
Weighted-average shares – diluted289.5 286.3 284.3 
Income from continuing operations per average common share available to common stockholders
Basic$2.58 $2.45 $2.23 
Diluted2.58 2.44 2.22 
v3.22.0.1
Revenue (Tables)
 12 Months Ended
Dec. 31, 2021
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, 2021Electric UtilityGas Utility
Enterprises1
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 the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2020Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,348 $1,809 $— $6,157 
Other— — 81 81 
Revenue recognized from contracts with customers$4,348 $1,809 $81 $6,238 
Leasing income— — 148 148 
Financing income11 6 — 17 
Consumers alternative-revenue programs29 14 — 43 
Consumers revenues to be refunded(16)(12)— (28)
Total operating revenue – CMS Energy$4,372 $1,817 $229 $6,418 
Consumers
Consumers utility revenue
Residential$2,109 $1,232 $3,341 
Commercial1,444 337 1,781 
Industrial570 46 616 
Other225 194 419 
Revenue recognized from contracts with customers$4,348 $1,809 $6,157 
Financing income11 6 17 
Alternative-revenue programs29 14 43 
Revenues to be refunded(16)(12)(28)
Total operating revenue – Consumers$4,372 $1,817 $6,189 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2019Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,407 $1,922 $— $6,329 
Other— — 74 74 
Revenue recognized from contracts with customers$4,407 $1,922 $74 $6,403 
Leasing income— — 174 174 
Financing income9 5 — 14 
Consumers alternative-revenue programs23 10 — 33 
Total operating revenue – CMS Energy$4,439 $1,937 $248 $6,624 
Consumers
Consumers utility revenue
Residential$1,988 $1,316 $3,304 
Commercial1,502 372 1,874 
Industrial669 51 720 
Other248 183 431 
Revenue recognized from contracts with customers$4,407 $1,922 $6,329 
Financing income9 5 14 
Alternative-revenue programs23 10 33 
Total operating revenue – Consumers$4,439 $1,937 $6,376 
1Amounts represent the enterprises segment’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, 2021Electric UtilityGas Utility
Enterprises1
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 the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2020Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,348 $1,809 $— $6,157 
Other— — 81 81 
Revenue recognized from contracts with customers$4,348 $1,809 $81 $6,238 
Leasing income— — 148 148 
Financing income11 6 — 17 
Consumers alternative-revenue programs29 14 — 43 
Consumers revenues to be refunded(16)(12)— (28)
Total operating revenue – CMS Energy$4,372 $1,817 $229 $6,418 
Consumers
Consumers utility revenue
Residential$2,109 $1,232 $3,341 
Commercial1,444 337 1,781 
Industrial570 46 616 
Other225 194 419 
Revenue recognized from contracts with customers$4,348 $1,809 $6,157 
Financing income11 6 17 
Alternative-revenue programs29 14 43 
Revenues to be refunded(16)(12)(28)
Total operating revenue – Consumers$4,372 $1,817 $6,189 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2019Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,407 $1,922 $— $6,329 
Other— — 74 74 
Revenue recognized from contracts with customers$4,407 $1,922 $74 $6,403 
Leasing income— — 174 174 
Financing income9 5 — 14 
Consumers alternative-revenue programs23 10 — 33 
Total operating revenue – CMS Energy$4,439 $1,937 $248 $6,624 
Consumers
Consumers utility revenue
Residential$1,988 $1,316 $3,304 
Commercial1,502 372 1,874 
Industrial669 51 720 
Other248 183 431 
Revenue recognized from contracts with customers$4,407 $1,922 $6,329 
Financing income9 5 14 
Alternative-revenue programs23 10 33 
Total operating revenue – Consumers$4,439 $1,937 $6,376 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
v3.22.0.1
Other Income and Other Expense (Tables)
 12 Months Ended
Dec. 31, 2021
Other Income and Expenses [Line Items]  
Components Of Other Expense Presented in the following table are the components of other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Other expense
Donations$(6)$(35)$(3)
Civic and political expenditures(5)(5)(6)
Loss on reacquired and extinguished debt— (16)— 
All other(7)(6)(4)
Total other expense – CMS Energy$(18)$(62)$(13)
Consumers
Other expense
Donations$(6)$(33)$(3)
Civic and political expenditures(5)(5)(6)
All other(7)(5)(4)
Total other expense – Consumers$(18)$(43)$(13)
Consumers Energy Company  
Other Income and Expenses [Line Items]  
Components Of Other Expense Presented in the following table are the components of other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Other expense
Donations$(6)$(35)$(3)
Civic and political expenditures(5)(5)(6)
Loss on reacquired and extinguished debt— (16)— 
All other(7)(6)(4)
Total other expense – CMS Energy$(18)$(62)$(13)
Consumers
Other expense
Donations$(6)$(33)$(3)
Civic and political expenditures(5)(5)(6)
All other(7)(5)(4)
Total other expense – Consumers$(18)$(43)$(13)
v3.22.0.1
Cash And Cash Equivalents (Tables)
 12 Months Ended
Dec. 31, 2021
Cash and Cash Equivalents [Line Items]  
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets:
In Millions
December 3120212020
CMS Energy, including Consumers
Cash and cash equivalents$452 $32 
Restricted cash and cash equivalents24 17 
Current assets held for sale— 136 
Cash and cash equivalents, including restricted amounts – CMS Energy$476 $185 
Consumers
Cash and cash equivalents$22 $20 
Restricted cash and cash equivalents22 15 
Cash and cash equivalents, including restricted amounts – Consumers$44 $35 
Consumers Energy Company  
Cash and Cash Equivalents [Line Items]  
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets:
In Millions
December 3120212020
CMS Energy, including Consumers
Cash and cash equivalents$452 $32 
Restricted cash and cash equivalents24 17 
Current assets held for sale— 136 
Cash and cash equivalents, including restricted amounts – CMS Energy$476 $185 
Consumers
Cash and cash equivalents$22 $20 
Restricted cash and cash equivalents22 15 
Cash and cash equivalents, including restricted amounts – Consumers$44 $35 
v3.22.0.1
Reportable Segments (Tables)
 12 Months Ended
Dec. 31, 2021
Segment Reporting Information [Line Items]  
Schedule Of Financial Information By Reportable Segments
Presented in the following tables is financial information by segment:
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Operating revenue
Electric utility$4,958 $4,372 $4,439 
Gas utility2,063 1,817 1,937 
Enterprises308 229 248 
Total operating revenue – CMS Energy$7,329 $6,418 $6,624 
Consumers
Operating revenue
Electric utility$4,958 $4,372 $4,439 
Gas utility2,063 1,817 1,937 
Total operating revenue – Consumers$7,021 $6,189 $6,376 
CMS Energy, including Consumers
Depreciation and amortization
Electric utility$772 $739 $713 
Gas utility304 283 261 
Enterprises37 20 14 
Other reconciling items1 1 1 
Total depreciation and amortization – CMS Energy$1,114 $1,043 $989 
Consumers
Depreciation and amortization
Electric utility$772 $739 $713 
Gas utility304 283 261 
Other reconciling items1 1 1 
Total depreciation and amortization – Consumers$1,077 $1,023 $975 
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Income from equity method investees1
Enterprises$10 $5 $10 
Total income from equity method investees – CMS Energy$10 $5 $10 
CMS Energy, including Consumers
Interest charges
Electric utility$207 $217 $213 
Gas utility104 102 83 
Enterprises6 7 7 
Other reconciling items183 179 157 
Total interest charges – CMS Energy$500 $505 $460 
Consumers
Interest charges
Electric utility$207 $217 $213 
Gas utility104 102 83 
Other reconciling items— 1 1 
Total interest charges – Consumers$311 $320 $297 
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility$117 $115 $134 
Gas utility39 58 51 
Enterprises(2)(4)2 
Other reconciling items(59)(54)(56)
Total income tax expense – CMS Energy$95 $115 $131 
Consumers
Income tax expense
Electric utility$117 $115 $134 
Gas utility39 58 51 
Total income tax expense – Consumers$156 $173 $185 
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$565 $554 $509 
Gas utility302 261 233 
Enterprises23 36 33 
Other reconciling items458 (96)(95)
Total net income available to common stockholders – CMS Energy$1,348 $755 $680 
Consumers
Net income (loss) available to common stockholder
Electric utility$565 $554 $509 
Gas utility302 261 233 
Other reconciling items(1)(1)(1)
Total net income available to common stockholder – Consumers$866 $814 $741 
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2
$18,147 $17,155 $16,158 
Gas utility2
10,601 9,581 8,785 
Enterprises1,122 1,113 405 
Other reconciling items23 21 20 
Total plant, property, and equipment, gross – CMS Energy$29,893 $27,870 $25,368 
Consumers
Plant, property, and equipment, gross
Electric utility2
$18,147 $17,155 $16,158 
Gas utility2
10,601 9,581 8,785 
Other reconciling items23 21 20 
Total plant, property, and equipment, gross – Consumers$28,771 $26,757 $24,963 
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises$71 $70 $71 
Total investments in equity method investees – CMS Energy$71 $70 $71 
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Total assets
Electric utility2
$16,493 $15,829 $14,911 
Gas utility2
10,517 9,429 8,659 
Enterprises1,312 1,276 527 
Other reconciling items431 3,132 2,740 
Total assets – CMS Energy$28,753 $29,666 $26,837 
Consumers
Total assets
Electric utility2
$16,555 $15,893 $14,973 
Gas utility2
10,564 9,477 8,706 
Other reconciling items21 29 20 
Total assets – Consumers$27,140 $25,399 $23,699 
CMS Energy, including Consumers
Capital expenditures3
Electric utility4
$1,153 $1,281 $1,162 
Gas utility4
989 885 971 
Enterprises17 108 5 
Other reconciling items2 1 1 
Total capital expenditures – CMS Energy$2,161 $2,275 $2,139 
Consumers
Capital expenditures3
Electric utility4
$1,153 $1,281 $1,162 
Gas utility4
989 885 971 
Other reconciling items2 1 1 
Total capital expenditures – Consumers$2,144 $2,167 $2,134 
1Consumers had no significant 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 31202120202019
CMS Energy, including Consumers
Operating revenue
Electric utility$4,958 $4,372 $4,439 
Gas utility2,063 1,817 1,937 
Enterprises308 229 248 
Total operating revenue – CMS Energy$7,329 $6,418 $6,624 
Consumers
Operating revenue
Electric utility$4,958 $4,372 $4,439 
Gas utility2,063 1,817 1,937 
Total operating revenue – Consumers$7,021 $6,189 $6,376 
CMS Energy, including Consumers
Depreciation and amortization
Electric utility$772 $739 $713 
Gas utility304 283 261 
Enterprises37 20 14 
Other reconciling items1 1 1 
Total depreciation and amortization – CMS Energy$1,114 $1,043 $989 
Consumers
Depreciation and amortization
Electric utility$772 $739 $713 
Gas utility304 283 261 
Other reconciling items1 1 1 
Total depreciation and amortization – Consumers$1,077 $1,023 $975 
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Income from equity method investees1
Enterprises$10 $5 $10 
Total income from equity method investees – CMS Energy$10 $5 $10 
CMS Energy, including Consumers
Interest charges
Electric utility$207 $217 $213 
Gas utility104 102 83 
Enterprises6 7 7 
Other reconciling items183 179 157 
Total interest charges – CMS Energy$500 $505 $460 
Consumers
Interest charges
Electric utility$207 $217 $213 
Gas utility104 102 83 
Other reconciling items— 1 1 
Total interest charges – Consumers$311 $320 $297 
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility$117 $115 $134 
Gas utility39 58 51 
Enterprises(2)(4)2 
Other reconciling items(59)(54)(56)
Total income tax expense – CMS Energy$95 $115 $131 
Consumers
Income tax expense
Electric utility$117 $115 $134 
Gas utility39 58 51 
Total income tax expense – Consumers$156 $173 $185 
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$565 $554 $509 
Gas utility302 261 233 
Enterprises23 36 33 
Other reconciling items458 (96)(95)
Total net income available to common stockholders – CMS Energy$1,348 $755 $680 
Consumers
Net income (loss) available to common stockholder
Electric utility$565 $554 $509 
Gas utility302 261 233 
Other reconciling items(1)(1)(1)
Total net income available to common stockholder – Consumers$866 $814 $741 
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2
$18,147 $17,155 $16,158 
Gas utility2
10,601 9,581 8,785 
Enterprises1,122 1,113 405 
Other reconciling items23 21 20 
Total plant, property, and equipment, gross – CMS Energy$29,893 $27,870 $25,368 
Consumers
Plant, property, and equipment, gross
Electric utility2
$18,147 $17,155 $16,158 
Gas utility2
10,601 9,581 8,785 
Other reconciling items23 21 20 
Total plant, property, and equipment, gross – Consumers$28,771 $26,757 $24,963 
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises$71 $70 $71 
Total investments in equity method investees – CMS Energy$71 $70 $71 
In Millions
Years Ended December 31202120202019
CMS Energy, including Consumers
Total assets
Electric utility2
$16,493 $15,829 $14,911 
Gas utility2
10,517 9,429 8,659 
Enterprises1,312 1,276 527 
Other reconciling items431 3,132 2,740 
Total assets – CMS Energy$28,753 $29,666 $26,837 
Consumers
Total assets
Electric utility2
$16,555 $15,893 $14,973 
Gas utility2
10,564 9,477 8,706 
Other reconciling items21 29 20 
Total assets – Consumers$27,140 $25,399 $23,699 
CMS Energy, including Consumers
Capital expenditures3
Electric utility4
$1,153 $1,281 $1,162 
Gas utility4
989 885 971 
Enterprises17 108 5 
Other reconciling items2 1 1 
Total capital expenditures – CMS Energy$2,161 $2,275 $2,139 
Consumers
Capital expenditures3
Electric utility4
$1,153 $1,281 $1,162 
Gas utility4
989 885 971 
Other reconciling items2 1 1 
Total capital expenditures – Consumers$2,144 $2,167 $2,134 
1Consumers had no significant 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.
v3.22.0.1
Related Party Transactions - Consumers (Tables)
 12 Months Ended
Dec. 31, 2021
Consumers Energy Company  
Related Party Transaction [Line Items]  
Schedule of Related Party Transactions, by Related Party Table
Presented in the following table is Consumers’ expense recorded from related-party transactions for the years ended December 31:
In Millions
DescriptionRelated Party202120202019
Purchases of capacity and energyAffiliates of CMS Enterprises$77 $64 $75 
v3.22.0.1
Variable Interest Entities (Tables)
 12 Months Ended
Dec. 31, 2021
Variable Interest Entities [Abstract]  
Schedule of Variable Interest Entities
Presented in the following table are the carrying values of the VIEs’ assets and liabilities included on CMS Energy’s consolidated balance sheets:
In Millions
December 3120212020
Current
Cash and cash equivalents$20 $7 
Accounts receivable3 5 
Prepayments and other current assets1 1 
Non-current
Plant, property, and equipment, net671 692 
Total assets1
$695 $705 
Current
Accounts payable$15 $3 
Non-current
Asset retirement obligations20 19 
Total liabilities$35 $22 
1Assets may be used only to meet VIEs’ obligations and commitments.
Presented in the following table is information about these partnerships:
NameNature of the EntityNature of CMS Energy’s Involvement
T.E.S. Filer City Coal-fueled power generatorLong-term PPA between partnership and Consumers
Employee assignment agreement
Grayling Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Genesee Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Craven Wood waste-fueled power generatorOperating and management contract
1Reduced dispatch agreements allow the facilities to be dispatched based on the market price of power compared with the cost of production of the plants. This results in fuel cost savings that each partnership shares with Consumers’ customers.
v3.22.0.1
Exit Activities and Discontinued Operations - (Tables)
 12 Months Ended
Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Retention Benefit Liability Roll Forward Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Years Ended December 3120212020
Retention benefit liability at beginning of period$11 $4 
Costs incurred and charged to maintenance and other operating expenses— 13 
Costs deferred as a regulatory asset
7 — 
Costs incurred and capitalized1 2 
Costs paid or settled(5)(8)
Retention benefit liability at the end of the period1
$14 $11 
1Includes current portion of other liabilities of $5 million at December 31, 2021 and $3 million at December 31, 2020.
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 31202120202019
Operating revenue$209 $262 $221 
Expenses
Operating expenses60 130 97 
Interest expense34 56 59 
Income before income taxes$115 $76 $65 
Gain on sale657 — — 
Income from discontinued operations before income taxes$772 $76 $65 
Income tax expense170 18 16 
Income from discontinued operations, net of tax$602 $58 $49 
The table below presents the aggregate carrying amounts for the major classes of assets and liabilities held for sale related to EnerBank:
In Millions
December 312020
Assets
Current
Cash and cash equivalents$136 
Accounts receivable and other current assets18 
Notes receivable, less allowance of $32
275 
Total current assets

$429 
Non‑current
Plant, property, and equipment, net$22 
Notes receivable, less allowance of $91
2,612 
Other non‑current assets46 
Total non‑current assets

$2,680 
Total assets$3,109 
Liabilities
Current
Current portion of long-term debt$915 
Accounts payable and other current liabilities38 
Total current liabilities

$953 
Non‑current
Long-term debt$1,890 
Other non‑current liabilities4 
Total non‑current liabilities

$1,894 
Total liabilities$2,847 
Consumers Energy Company  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Retention Benefit Liability Roll Forward Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Years Ended December 3120212020
Retention benefit liability at beginning of period$11 $4 
Costs incurred and charged to maintenance and other operating expenses— 13 
Costs deferred as a regulatory asset
7 — 
Costs incurred and capitalized1 2 
Costs paid or settled(5)(8)
Retention benefit liability at the end of the period1
$14 $11 
1Includes current portion of other liabilities of $5 million at December 31, 2021 and $3 million at December 31, 2020.
v3.22.0.1
Quarterly Financial And Common Stock Information (Tables)
 12 Months Ended
Dec. 31, 2021
Quarterly Financial Data [Abstract]  
Schedule of Quarterly Financial Information Table
In Millions, Except Per Share Amounts
2021
Three Months EndedMarch 31June 30September 30December 31
CMS Energy, including Consumers
Operating revenue$2,013 $1,558 $1,725 $2,033 
Operating income430 252 260 204 
Income From Continuing Operations308 153 153 114 
Income From Discontinued Operations, Net of Tax34 18 30 520 
Net income342 171 183 634 
Loss attributable to noncontrolling interests(7)(5)(6)(5)
Net Income Attributable to CMS Energy349 176 189 639 
Preferred Stock Dividends— — 3 2 
Net income available to common stockholders349 176 186 637 
Basic earnings per average common share
Income from continuing operations per average common share available to common stockholders1
1.09 0.55 0.54 0.40 
Income from discontinued operations per average common share available to common stockholders1
0.12 0.06 0.10 1.80 
Basic earnings per average common share1
1.21 0.61 0.64 2.20 
Diluted earnings per average common share
Income from continuing operations per average common share available to common stockholders1
1.09 0.55 0.54 0.40 
Income from discontinued operations per average common share available to common stockholders1
0.12 0.06 0.10 1.80 
Diluted earnings per average common share1
1.21 0.61 0.64 2.20 
1The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding.
In Millions, Except Per Share Amounts
2020
Three Months EndedMarch 31June 30September 30December 31
CMS Energy, including Consumers
Operating revenue$1,802 $1,382 $1,507 $1,727 
Operating income335 248 340 307 
Income From Continuing Operations229 129 198 138 
Income From Discontinued Operations, Net of Tax14 8 12 24 
Net income243 137 210 162 
Income (loss) attributable to noncontrolling interests— 1 (8)4 
Net income available to common stockholders243 136 218 158 
Basic earnings per average common share
Income from continuing operations per average common share available to common stockholders1
0.81 0.45 0.72 0.47 
Income from discontinued operations per average common share available to common stockholders1
0.05 0.03 0.04 0.08 
Basic earnings per average common share1
0.86 0.48 0.76 0.55 
Diluted earnings per average common share
Income from continuing operations per average common share available to common stockholders1
0.80 0.45 0.72 0.47 
Income from discontinued operations per average common share available to common stockholders1
0.05 0.03 0.04 0.08 
Diluted earnings per average common share1
0.85 0.48 0.76 0.55 
1The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding.
v3.22.0.1
Regulatory Matters (Schedule Of Regulatory Assets and Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, current $ 46 $ 42
Regulatory assets, noncurrent 2,259 2,653
Regulatory liabilities, current 146 151
Regulatory liability, noncurrent 3,802 3,744
Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, current 46 42
Regulatory assets, noncurrent 2,259 2,653
Total regulatory assets 2,305 2,695
Regulatory liabilities, current 146 151
Regulatory liability, noncurrent 3,802 3,744
Total regulatory liabilities 3,948 3,895
Income taxes, net | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liabilities, current 138 105
Regulatory liability, noncurrent 1,297 1,419
Reserve for customer refunds | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liabilities, current 2 28
Voluntary transmission asset sale gain share | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liabilities, current 0 14
Other | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liabilities, current 6 4
Regulatory liability, noncurrent 16 11
Postretirement benefits | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liability, noncurrent 54 0
Cost of removal | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liability, noncurrent 2,375 2,245
Renewable energy grant | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liability, noncurrent 47 49
Renewable energy plan | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liability, noncurrent 13 9
ARO | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liability, noncurrent 0 11
Energy Waste Reduction Plan Incentive | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, current 42 34
Regulatory assets, noncurrent 46 42
Deferred capital spending | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, current 0 6
Other | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, current 4 2
Regulatory assets, noncurrent 19 11
Postretirement benefits | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent 837 1,231
Costs of coal-fueled electric generating units to be retired | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent 678 678
ARO | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent 247 216
Securitized costs | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent 193 221
Manufactured Gas Plant | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent 112 120
Unamortized Loss On Reacquired Debt | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent 104 108
Energy Waste Reduction Plan | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent 13 16
Demand response program | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent $ 10 $ 10
v3.22.0.1
Regulatory Matters (Narrative) (Details)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2021
USD ($)
coal_fueled_electric_generating_unit
site
Jul. 31, 2021
USD ($)
Mar. 31, 2021
USD ($)
Dec. 31, 2021
USD ($)
coal_fueled_electric_generating_unit
site
Sep. 30, 2021
USD ($)
Jun. 30, 2021
USD ($)
Mar. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2021
USD ($)
coal_fueled_electric_generating_unit
site
Mar. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2016
site
Dec. 31, 2015
site
Dec. 31, 2013
USD ($)
Jan. 31, 2022
USD ($)
Oct. 31, 2021
USD ($)
Public Utilities, General Disclosures [Line Items]                                          
Revenue       $ 2,033 $ 1,725 $ 1,558 $ 2,013 $ 1,727 $ 1,507 $ 1,382 $ 1,802 $ 7,329   $ 6,418   $ 6,624          
Regulatory liabilities, current $ 146     146       151       146   151              
Consumers Energy Company                                          
Public Utilities, General Disclosures [Line Items]                                          
Revenue                       $ 7,021   6,189   6,376          
Number of units retired | site                       10                  
Regulatory liabilities, current $ 146     $ 146       151       $ 146   151              
Reduction in depreciation expense                       1,077   1,023   975          
Plant additions                       2,400   2,000              
Purchased and interchange power                       1,599   1,454   1,470          
Cost of gas sold                       $ 726   568   754          
Costs of coal-fueled electric generating units to be retired | Consumers Energy Company                                          
Public Utilities, General Disclosures [Line Items]                                          
Regulatory Assets, Number Of Units | coal_fueled_electric_generating_unit 2     2               2                  
Coal-Fueled Electric Generation | Consumers Energy Company                                          
Public Utilities, General Disclosures [Line Items]                                          
Number of units retired | site                                 7        
Gas-Fueled Electric Generation | Consumers Energy Company                                          
Public Utilities, General Disclosures [Line Items]                                          
Number of units retired | site                                   3      
Energy Waste Reduction Plan Incentive | Consumers Energy Company                                          
Public Utilities, General Disclosures [Line Items]                                          
Authorized recovery collection                                         $ 42
Revenue                       $ 46   42              
Requested recovery/collection $ 46     $ 46               46                  
Electric Rate Case | Consumers Energy Company                                          
Public Utilities, General Disclosures [Line Items]                                          
Annual rate increase requested     $ 225                                    
Rate of return on equity requested     10.50%                                    
Annual rate increase requested, amended   $ 201                                      
Annual rate increase authorized $ 27                                        
Rate of return on equity authorized 9.90%                                        
Reduction in depreciation expense $ (27)                                        
Impairment charge 4                     41                  
Assessment of probable loss 11     11               11                  
Plant additions                       $ 23                  
Held-for-sale fleet assets 15                                        
Electric Rate Case | Consumers Energy Company | Subsequent Event                                          
Public Utilities, General Disclosures [Line Items]                                          
Recommended disallowed costs                                       $ 11  
PSCR overrecoveries/underrecoveries | Consumers Energy Company                                          
Public Utilities, General Disclosures [Line Items]                                          
Purchased and interchange power                           1,800   1,900          
Over (under) recovery authorized by the MPSC               (4)           (4)   $ 18          
GCR underrecoveries | Consumers Energy Company                                          
Public Utilities, General Disclosures [Line Items]                                          
Over (under) recovery authorized by the MPSC     $ 1       $ 1       $ 6   $ 1   $ 6            
Cost of gas sold                         $ 400   $ 500            
Renewable energy grant | Consumers Energy Company                                          
Public Utilities, General Disclosures [Line Items]                                          
Proceeds from government grant                                     $ 69    
Income Taxes Subject To Normalization | Gas Rate Case Tax Reform Rate Change | Consumers Energy Company                                          
Public Utilities, General Disclosures [Line Items]                                          
Regulatory liability remaining book life                       44 years                  
Income Taxes Subject To Normalization | Electric Rate Case Tax Reform Rate Change | Consumers Energy Company                                          
Public Utilities, General Disclosures [Line Items]                                          
Regulatory liability remaining book life                       27 years                  
Reserve for customer refunds | Consumers Energy Company                                          
Public Utilities, General Disclosures [Line Items]                                          
Regulatory liabilities, current 2     2       28       $ 2   28              
Voluntary transmission asset sale gain share | Consumers Energy Company                                          
Public Utilities, General Disclosures [Line Items]                                          
Regulatory liabilities, current $ 0     $ 0       $ 14       $ 0   $ 14              
Manufactured Gas Plant | Consumers Energy Company                                          
Public Utilities, General Disclosures [Line Items]                                          
Number of former MGPs | site 23     23               23                  
Regulatory asset collection period                       10 years                  
v3.22.0.1
Regulatory Matters (Schedule Of Assets and Liabilities for PSCR And GCR Over/(Under) Recoveries) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Public Utilities, General Disclosures [Line Items]    
Accrued rate refunds $ 12 $ 20
Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Accounts receivable and accrued revenue 25 0
Accrued rate refunds 12 20
Consumers Energy Company | PSCR overrecoveries/underrecoveries    
Public Utilities, General Disclosures [Line Items]    
Accrued rate refunds 12 5
Consumers Energy Company | GCR overrecoveries/underrecoveries    
Public Utilities, General Disclosures [Line Items]    
Accounts receivable and accrued revenue 25 0
Accrued rate refunds $ 0 $ 15
v3.22.0.1
Contingencies and Commitments (Contingencies And Commitments) (Details)
$ in Thousands
 1 Months Ended 3 Months Ended 12 Months Ended
Sep. 30, 2020
USD ($)
May 31, 2020
USD ($)
Dec. 31, 2021
USD ($)
site
Sep. 30, 2021
USD ($)
Jun. 30, 2021
USD ($)
Mar. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2021
USD ($)
site
Mar. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Loss Contingencies [Line Items]                              
Regulatory assets     $ 2,259,000       $ 2,653,000       $ 2,259,000   $ 2,653,000    
Operating Revenue     2,033,000 $ 1,725,000 $ 1,558,000 $ 2,013,000 1,727,000 $ 1,507,000 $ 1,382,000 $ 1,802,000 7,329,000   6,418,000   $ 6,624,000
Consumers Energy Company                              
Loss Contingencies [Line Items]                              
Regulatory assets     2,259,000       2,653,000       2,259,000   2,653,000    
Cost of gas sold                     726,000   568,000   754,000
Plant additions                     2,400,000   2,000,000    
Maintenance and other operating expenses                     (1,531,000)   (1,224,000)   (1,275,000)
Operating Revenue                     7,021,000   6,189,000   $ 6,376,000
Consumers Energy Company | Manufactured Gas Plant                              
Loss Contingencies [Line Items]                              
Regulatory assets     112,000       $ 120,000       112,000   $ 120,000    
Consumers Energy Company | GCR underrecoveries                              
Loss Contingencies [Line Items]                              
Cost of gas sold                       $ 400,000   $ 500,000  
Bay Harbor                              
Loss Contingencies [Line Items]                              
Accrual for environmental loss contingencies     $ 45,000               $ 45,000        
Discounted projected costs rate     4.34%               4.34%        
Accrual for environmental loss contingencies, inflation rate     1.00%               1.00%        
Remaining undiscounted obligation amount     $ 57,000               $ 57,000        
CERCLA Liability | Consumers Energy Company                              
Loss Contingencies [Line Items]                              
Accrual for environmental loss contingencies     3,000               3,000        
CERCLA Liability | Minimum | Consumers Energy Company                              
Loss Contingencies [Line Items]                              
Remediation and other response activity costs     3,000               3,000        
CERCLA Liability | Maximum | Consumers Energy Company                              
Loss Contingencies [Line Items]                              
Remediation and other response activity costs     8,000               8,000        
Manufactured Gas Plant | Consumers Energy Company                              
Loss Contingencies [Line Items]                              
Accrual for environmental loss contingencies     $ 57,000               $ 57,000        
Discounted projected costs rate     2.57%               2.57%        
Accrual for environmental loss contingencies, inflation rate     2.50%               2.50%        
Remaining undiscounted obligation amount     $ 61,000               $ 61,000        
Number of former MGPs | site     23               23        
Regulatory asset collection period                     10 years        
Electric Utility | NREPA | Consumers Energy Company                              
Loss Contingencies [Line Items]                              
Accrual for environmental loss contingencies     $ 2,000               $ 2,000        
Electric Utility | NREPA | Minimum | Consumers Energy Company                              
Loss Contingencies [Line Items]                              
Remediation and other response activity costs     2,000               2,000        
Electric Utility | NREPA | Maximum | Consumers Energy Company                              
Loss Contingencies [Line Items]                              
Remediation and other response activity costs     4,000               4,000        
Gas Utility | NREPA | Consumers Energy Company                              
Loss Contingencies [Line Items]                              
Accrual for environmental loss contingencies     1,000               1,000        
Gas Utility | NREPA | Maximum | Consumers Energy Company                              
Loss Contingencies [Line Items]                              
Accrual for environmental loss contingencies     3,000               3,000        
Equatorial Guinea Tax Claim                              
Loss Contingencies [Line Items]                              
Foreign government tax claim on sale     152,000               152,000        
Civil Case, Consumers V. MPSC Staff | Consumers Energy Company                              
Loss Contingencies [Line Items]                              
Civil penalty   $ 10                          
Ray Compressor Station | Consumers Energy Company                              
Loss Contingencies [Line Items]                              
Plant additions                     17,000        
Insurance recoveries     $ 13,000               13,000        
Ray Compressor Station | Consumers Energy Company | Insurance Recoveries                              
Loss Contingencies [Line Items]                              
Reduction to plant, property and equipment                     6,000        
Maintenance and other operating expenses                     3,000        
Operating Revenue                     $ 4,000        
Ray Compressor Station | Consumers Energy Company | GCR underrecoveries                              
Loss Contingencies [Line Items]                              
Cost of gas sold $ 7,000                            
v3.22.0.1
Contingencies and Commitments (Expected Remediation Cost By Year) (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Bay Harbor  
Site Contingency [Line Items]  
2022 $ 4
2023 4
2024 4
2025 4
2026 4
Manufactured Gas Plant | Consumers Energy Company  
Site Contingency [Line Items]  
2022 3
2023 9
2024 24
2025 11
2026 $ 1
v3.22.0.1
Contingencies and Commitments (Guarantees) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2021
USD ($)
$ / MW
$ / MWh
MW
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Guarantees And Other Contingencies [Line Items]      
Total $ 12,473    
2022 2,317    
2023 2,404    
2024 1,174    
2025 1,348    
2026 642    
Beyond 2026 4,588    
Other      
Guarantees And Other Contingencies [Line Items]      
Total 4,445    
2022 1,489    
2023 1,657    
2024 412    
2025 639    
2026 36    
Beyond 2026 $ 212    
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership      
Guarantees And Other Contingencies [Line Items]      
Ownership percentage 49.00%    
Consumers Energy Company      
Guarantees And Other Contingencies [Line Items]      
Total $ 11,978    
2022 2,209    
2023 2,343    
2024 1,126    
2025 1,303    
2026 618    
Beyond 2026 $ 4,379    
Consumers Energy Company | Palisades Power Purchase Agreement | Financing Obligation      
Guarantees And Other Contingencies [Line Items]      
Annual average capacity (in MW) | MW 798    
Consumers Energy Company | Total PPAs      
Guarantees And Other Contingencies [Line Items]      
Total $ 8,028    
2022 828    
2023 747    
2024 762    
2025 709    
2026 606    
Beyond 2026 4,376    
Consumers Energy Company | Other      
Guarantees And Other Contingencies [Line Items]      
Total 3,950    
2022 1,381    
2023 1,596    
2024 364    
2025 594    
2026 12    
Beyond 2026 3    
Consumers Energy Company | MCV PPA      
Guarantees And Other Contingencies [Line Items]      
Total 2,204    
2022 349    
2023 348    
2024 346    
2025 306    
2026 231    
Beyond 2026 $ 624    
PPA minimum 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 $ 348 $ 298 $ 318
Consumers Energy Company | MCV PPA | Year End Through March 2025      
Guarantees And Other Contingencies [Line Items]      
PPA capacity charge per MWh (in dollars per MWh) | $ / MW 10.14    
Consumers Energy Company | MCV PPA | March 2025 Through Termination      
Guarantees And Other Contingencies [Line Items]      
PPA capacity charge per MWh (in dollars per MWh) | $ / MW 5.00    
Consumers Energy Company | Palisades PPA      
Guarantees And Other Contingencies [Line Items]      
Total $ 116    
2022 116    
2023 0    
2024 0    
2025 0    
2026 0    
Beyond 2026 0    
Purchases 413 403 395
Consumers Energy Company | Related-party PPAs      
Guarantees And Other Contingencies [Line Items]      
Total 342    
2022 65    
2023 65    
2024 65    
2025 47    
2026 29    
Beyond 2026 71    
Consumers Energy Company | Other PPAs      
Guarantees And Other Contingencies [Line Items]      
Total 5,366    
2022 298    
2023 334    
2024 351    
2025 356    
2026 346    
Beyond 2026 3,681    
Purchases $ 338 $ 327 $ 336
Guarantees      
Guarantees And Other Contingencies [Line Items]      
Expiration Date indefinite    
Maximum Obligation $ 30    
Carrying Amount $ 0    
Guarantees | Consumers Energy Company      
Guarantees And Other Contingencies [Line Items]      
Expiration Date indefinite    
Maximum Obligation $ 30    
Carrying Amount $ 0    
Indemnification Agreement From Purchase Of Variable Interest Entity      
Guarantees And Other Contingencies [Line Items]      
Expiration Date indefinite    
Maximum Obligation $ 314    
Carrying Amount $ 0    
Indemnity Obligations From Stock And Asset Sales Agreements      
Guarantees And Other Contingencies [Line Items]      
Expiration Date indefinite    
Maximum Obligation $ 225    
Carrying Amount 4    
Tax And Other Indemnity Obligations | Consumers Energy Company      
Guarantees And Other Contingencies [Line Items]      
Carrying Amount $ 1    
v3.22.0.1
Financings and Capitalization (Summary of Long-Term Debt) (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Dec. 01, 2030
Jun. 01, 2030
Oct. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 12,568 $ 12,467
Current amounts       (373) (571)
Unamortized discounts       (31) (33)
Unamortized issuance costs       (118) (119)
Long-term debt       12,046 11,744
Consumers Energy Company          
Debt Instrument [Line Items]          
Total principal amount outstanding       8,505 8,197
Current amounts       (365) (364)
Unamortized discounts       (28) (29)
Unamortized issuance costs       (62) (62)
Long-term debt       8,050 7,742
First Mortgage Bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 8,197 7,897
First Mortgage Bonds | Consumers Energy Company | 0.350% First Mortgage Bonds Due 2023          
Debt Instrument [Line Items]          
Interest rate       0.35%  
Total principal amount outstanding       $ 300 300
First Mortgage Bonds | Consumers Energy Company | 3.375% First Mortgage Bonds Due 2023          
Debt Instrument [Line Items]          
Interest rate       3.375%  
Total principal amount outstanding       $ 325 325
First Mortgage Bonds | Consumers Energy Company | 3.125% First Mortgage Bonds Due 2024          
Debt Instrument [Line Items]          
Interest rate       3.125%  
Total principal amount outstanding       $ 250 250
First Mortgage Bonds | Consumers Energy Company | 3.190% First Mortgage Bonds Due 2024          
Debt Instrument [Line Items]          
Interest rate       3.19%  
Total principal amount outstanding       $ 52 52
First Mortgage Bonds | Consumers Energy Company | 3.680% First Mortgage Bonds Due 2027          
Debt Instrument [Line Items]          
Interest rate       3.68%  
Total principal amount outstanding       $ 100 100
First Mortgage Bonds | Consumers Energy Company | 3.390 % First Mortgage Bonds Due 2027          
Debt Instrument [Line Items]          
Interest rate       3.39%  
Total principal amount outstanding       $ 35 35
First Mortgage Bonds | Consumers Energy Company | 3.800% First Mortgage Bonds Due 2028          
Debt Instrument [Line Items]          
Interest rate       3.80%  
Total principal amount outstanding       $ 300 300
First Mortgage Bonds | Consumers Energy Company | 3.180% First Mortgage Bonds Due 2032          
Debt Instrument [Line Items]          
Interest rate       3.18%  
Total principal amount outstanding       $ 100 100
First Mortgage Bonds | Consumers Energy Company | 5.800 % First Mortgage Bonds Due 2035          
Debt Instrument [Line Items]          
Interest rate       5.80%  
Total principal amount outstanding       $ 175 175
First Mortgage Bonds | Consumers Energy Company | 3.520% First Mortgage Bonds Due 2037          
Debt Instrument [Line Items]          
Interest rate       3.52%  
Total principal amount outstanding       $ 335 335
First Mortgage Bonds | Consumers Energy Company | 4.010% First Mortgage Bonds Due 2038          
Debt Instrument [Line Items]          
Interest rate       4.01%  
Total principal amount outstanding       $ 215 215
First Mortgage Bonds | Consumers Energy Company | 6.170% First Mortgage Bonds Due 2040          
Debt Instrument [Line Items]          
Interest rate       6.17%  
Total principal amount outstanding       $ 50 50
First Mortgage Bonds | Consumers Energy Company | 4.970% First Mortgage Bonds Due 2040          
Debt Instrument [Line Items]          
Interest rate       4.97%  
Total principal amount outstanding       $ 50 50
First Mortgage Bonds | Consumers Energy Company | 4.310% First Mortgage Bonds Due 2042          
Debt Instrument [Line Items]          
Interest rate       4.31%  
Total principal amount outstanding       $ 263 263
First Mortgage Bonds | Consumers Energy Company | 3.950% First Mortgage Bonds Due 2043          
Debt Instrument [Line Items]          
Interest rate       3.95%  
Total principal amount outstanding       $ 425 425
First Mortgage Bonds | Consumers Energy Company | 4.100% First Mortgage Bonds Due 2045          
Debt Instrument [Line Items]          
Interest rate       4.10%  
Total principal amount outstanding       $ 250 250
First Mortgage Bonds | Consumers Energy Company | 3.250% First Mortgage Bonds Due 2046          
Debt Instrument [Line Items]          
Interest rate       3.25%  
Total principal amount outstanding       $ 450 450
First Mortgage Bonds | Consumers Energy Company | 3.950% First Mortgage Bonds Due 2047          
Debt Instrument [Line Items]          
Interest rate       3.95%  
Total principal amount outstanding       $ 350 350
First Mortgage Bonds | Consumers Energy Company | 4.050% First Mortgage Bonds Due 2048          
Debt Instrument [Line Items]          
Interest rate       4.05%  
Total principal amount outstanding       $ 550 550
First Mortgage Bonds | Consumers Energy Company | 4.350% First Mortgage Bonds Due 2049          
Debt Instrument [Line Items]          
Interest rate       4.35%  
Total principal amount outstanding       $ 550 550
First Mortgage Bonds | Consumers Energy Company | 3.750% First Mortgage Bonds Due 2050          
Debt Instrument [Line Items]          
Interest rate       3.75%  
Total principal amount outstanding       $ 300 300
First Mortgage Bonds | Consumers Energy Company | 3.100% First Mortgage Bonds Due 2050          
Debt Instrument [Line Items]          
Interest rate       3.10%  
Total principal amount outstanding       $ 550 550
First Mortgage Bonds | Consumers Energy Company | 3.500% First Mortgage Bonds Due 2051          
Debt Instrument [Line Items]          
Interest rate       3.50%  
Total principal amount outstanding       $ 575 575
First Mortgage Bonds | Consumers Energy Company | 2.650% First Mortgage Bonds Due 2052          
Debt Instrument [Line Items]          
Interest rate       2.65%  
Total principal amount outstanding       $ 300 0
First Mortgage Bonds | Consumers Energy Company | 3.860% First Mortgage Bonds Due 2052          
Debt Instrument [Line Items]          
Interest rate       3.86%  
Total principal amount outstanding       $ 50 50
First Mortgage Bonds | Consumers Energy Company | 4.280% First Mortgage Bonds Due 2057          
Debt Instrument [Line Items]          
Interest rate       4.28%  
Total principal amount outstanding       $ 185 185
First Mortgage Bonds | Consumers Energy Company | 2.500% First Mortgage Bonds Due 2060          
Debt Instrument [Line Items]          
Interest rate       2.50%  
Total principal amount outstanding       $ 525 525
First Mortgage Bonds | Consumers Energy Company | 4.350% First Mortgage Bonds Due 2064          
Debt Instrument [Line Items]          
Interest rate       4.35%  
Total principal amount outstanding       $ 250 250
First Mortgage Bonds | Consumers Energy Company | Variable Rate First Mortgage Bonds Due 2069          
Debt Instrument [Line Items]          
Total principal amount outstanding       76 76
First Mortgage Bonds | Consumers Energy Company | Variable Rate First Mortgage Bonds Due 2070          
Debt Instrument [Line Items]          
Total principal amount outstanding       134 134
First Mortgage Bonds | Consumers Energy Company | Variable Rate First Mortgage Bonds Due 2070          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 127 $ 127
First Mortgage Bonds | Consumers Energy Company | Variable Rate First Mortgage Bonds          
Debt Instrument [Line Items]          
Basis spread on variable rate       0.30%  
Interest rate at period end       0.00% 0.00%
Tax Exempt Revenue Bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 110 $ 75
Tax Exempt Revenue Bonds | Consumers Energy Company | 0.875% Tax Exempt Revenue Bonds Due 2035          
Debt Instrument [Line Items]          
Interest rate       0.875%  
Total principal amount outstanding       $ 35 0
Tax Exempt Revenue Bonds | Consumers Energy Company | 1.800% Tax Exempt Revenue Bonds Due 2049          
Debt Instrument [Line Items]          
Interest rate       1.80%  
Total principal amount outstanding       $ 75 $ 75
Securitization bonds | Consumers Energy Company | Securitization Bonds          
Debt Instrument [Line Items]          
Weighted average interest rate       3.29% 3.25%
Total principal amount outstanding       $ 198 $ 225
CMS Energy          
Debt Instrument [Line Items]          
Total principal amount outstanding       3,985 4,185
Long-term debt       3,928 3,926
CMS Energy | Senior notes          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 1,975 1,975
CMS Energy | Senior notes | 3.875% Senior Notes Due 2024          
Debt Instrument [Line Items]          
Interest rate       3.875%  
Total principal amount outstanding       $ 250 250
CMS Energy | Senior notes | 3.600% Senior Notes Due 2025          
Debt Instrument [Line Items]          
Interest rate       3.60%  
Total principal amount outstanding       $ 250 250
CMS Energy | Senior notes | 3.000% Senior Notes Due 2026          
Debt Instrument [Line Items]          
Interest rate       3.00%  
Total principal amount outstanding       $ 300 300
CMS Energy | Senior notes | 2.950% Senior Notes Due 2027          
Debt Instrument [Line Items]          
Interest rate       2.95%  
Total principal amount outstanding       $ 275 275
CMS Energy | Senior notes | 3.450% Senior Notes Due 2027          
Debt Instrument [Line Items]          
Interest rate       3.45%  
Total principal amount outstanding       $ 350 350
CMS Energy | Senior notes | 4.700% Senior Notes Due 2043          
Debt Instrument [Line Items]          
Interest rate       4.70%  
Total principal amount outstanding       $ 250 250
CMS Energy | Senior notes | 4.875% Senior Notes Due 2044          
Debt Instrument [Line Items]          
Interest rate       4.875%  
Total principal amount outstanding       $ 300 300
CMS Energy | Term loan facility | Term Loan Facility Due 2021          
Debt Instrument [Line Items]          
Total principal amount outstanding       0 200
CMS Energy | Junior subordinated notes          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 2,010 2,010
CMS Energy | Junior subordinated notes | 4.750% Junior Subordinated Notes Due 2050          
Debt Instrument [Line Items]          
Interest rate       4.75%  
Total principal amount outstanding       $ 500 500
CMS Energy | Junior subordinated notes | 3.750% Junior Subordinated Notes Due 2050          
Debt Instrument [Line Items]          
Interest rate       3.75%  
Total principal amount outstanding       $ 400 400
CMS Energy | Junior subordinated notes | 5.625% Junior Subordinated Notes Due 2078          
Debt Instrument [Line Items]          
Interest rate       5.625%  
Total principal amount outstanding       $ 200 200
CMS Energy | Junior subordinated notes | 5.875% Junior Subordinated Notes Due 2078          
Debt Instrument [Line Items]          
Interest rate       5.875%  
Total principal amount outstanding       $ 280 280
CMS Energy | Junior subordinated notes | 5.875% Junior Subordinated Notes Due 2079          
Debt Instrument [Line Items]          
Interest rate       5.875%  
Total principal amount outstanding       $ 630 630
CMS Enterprises Including Subsidiaries | Term loan facility | Term Loan Facility Due 2025          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 78 $ 85
Basis spread on variable rate       1.50%  
Interest rate at period end       1.724% 1.754%
Fixed interest rate       4.702%  
Forecast | CMS Energy | Junior subordinated notes | 4.750% Junior Subordinated Notes Due 2050 | US Treasury (UST) Interest Rate          
Debt Instrument [Line Items]          
Basis spread on variable rate   4.116%      
Forecast | CMS Energy | Junior subordinated notes | 3.750% Junior Subordinated Notes Due 2050 | US Treasury (UST) Interest Rate          
Debt Instrument [Line Items]          
Basis spread on variable rate 2.90%        
Forecast | CMS Enterprises Including Subsidiaries | Term loan facility | Term Loan Facility Due 2025          
Debt Instrument [Line Items]          
Basis spread on variable rate     1.75%    
Fixed interest rate     4.952%    
v3.22.0.1
Financings and Capitalization (Major Long-Term Debt Transactions) (Details)
$ in Millions
Dec. 31, 2021
USD ($)
First Mortgage Bonds | 2.650% First Mortgage Bonds Due 2052 | Consumers Energy Company  
Debt Instrument [Line Items]  
Principal balance $ 300
Interest rate 2.65%
Tax Exempt Revenue Bonds | 0.875% Tax Exempt Revenue Bonds Due 2035 | Consumers Energy Company  
Debt Instrument [Line Items]  
Principal balance $ 35
Interest rate 0.875%
Term loan facility | Term Loan Facility Due 2021 | CMS Energy  
Debt Instrument [Line Items]  
Principal balance $ 200
v3.22.0.1
Financings and Capitalization (Schedule of Debt Maturities) (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Debt Instrument [Line Items]  
2022 $ 373
2023 663
2024 592
2025 332
2026 332
CMS Energy  
Debt Instrument [Line Items]  
2022 0
2023 0
2024 250
2025 250
2026 300
CMS Enterprises Including Subsidiaries  
Debt Instrument [Line Items]  
2022 8
2023 9
2024 10
2025 51
2026 0
Consumers Energy Company  
Debt Instrument [Line Items]  
2022 365
2023 654
2024 332
2025 31
2026 $ 32
v3.22.0.1
Financings and Capitalization (Schedule of Revolving Credit Facilities) (Details)
 12 Months Ended
Dec. 31, 2021
USD ($)
Consumers Energy Company | Revolving Credit Facilities June 5, 2024  
Line of Credit Facility [Line Items]  
Amount of Facility $ 850,000,000
Amount Borrowed 0
Letters of Credit Outstanding 12,000,000
Amount Available 838,000,000
Consumers Energy Company | Revolving Credit Facilities November 19, 2023  
Line of Credit Facility [Line Items]  
Amount of Facility 250,000,000
Amount Borrowed 0
Letters of Credit Outstanding 8,000,000
Amount Available 242,000,000
Consumers Energy Company | Revolving Credit Facilities April 18, 2022  
Line of Credit Facility [Line Items]  
Amount of Facility 30,000,000
Amount Borrowed 0
Letters of Credit Outstanding 30,000,000
Amount Available 0
CMS Energy | Revolving Credit Facilities June 5, 2024  
Line of Credit Facility [Line Items]  
Amount of Facility 550,000,000
Amount Borrowed 0
Letters of Credit Outstanding 24,000,000
Amount Available 526,000,000
CMS Energy | Revolving Credit Facilities September 23, 2022  
Line of Credit Facility [Line Items]  
Amount of Facility 31,000,000
Amount Borrowed 0
Letters of Credit Outstanding 31,000,000
Amount Available 0
CMS Energy | Revolving Credit Facilities September 23, 2022 | Letter of Credit  
Line of Credit Facility [Line Items]  
Amount of Facility 50,000,000
CMS Enterprises Including Subsidiaries | Revolving Credit Facilities September 25, 2025  
Line of Credit Facility [Line Items]  
Amount of Facility 39,000,000
Amount Borrowed 0
Letters of Credit Outstanding 39,000,000
Amount Available 0
CMS Enterprises Including Subsidiaries | Revolving Credit Facilities September 30, 2025  
Line of Credit Facility [Line Items]  
Amount of Facility 18,000,000
Amount Borrowed 0
Letters of Credit Outstanding 8,000,000
Amount Available 10,000,000
Letter of Credit | Consumers Energy Company  
Line of Credit Facility [Line Items]  
Borrowings 0
Letter of Credit | CMS Energy | Revolving Credit Facilities June 5, 2024  
Line of Credit Facility [Line Items]  
Borrowings 0
Letter of Credit | CMS Enterprises Including Subsidiaries | Revolving Credit Facilities September 30, 2025  
Line of Credit Facility [Line Items]  
Amount Available 8,000,000
Borrowings $ 0
v3.22.0.1
Financings and Capitalization (Narrative) (Details)
 1 Months Ended 12 Months Ended
Jan. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2020
USD ($)
shares
Dec. 31, 2019
USD ($)
Financing And Capitalization [Line Items]          
Limitation on payment of stock dividends   $ 6,400,000,000 $ 6,400,000,000    
Dividends paid     $ 722,000,000    
Common stock authorized (in shares) | shares   350,000,000 350,000,000 350,000,000.0  
Common stock, par value (in dollars per share) | $ / shares   $ 0.01 $ 0.01    
Preferred stock authorized (in shares) | shares   10,000,000 10,000,000    
Par value of preferred stock (in dollars per share) | $ / shares   $ 0.01 $ 0.01    
Stock offering program maximum value     $ 500,000,000    
Number of shares required to settle forward contracts (in shares) | shares   94,588 94,588    
Issuance of preferred stock, net of issuance costs     $ 224,000,000 $ 0 $ 0
Series C Preferred Stock Depositary Shares          
Financing And Capitalization [Line Items]          
Preferred stock authorized (in shares) | shares   9,200,000 9,200,000    
Number of shares issued (in shares) | shares   9,200,000 9,200,000    
Depositary share conversion ratio   0.001 0.001    
Issue price (in dollars per share) | $ / shares   $ 25.00 $ 25.00    
Issuance of preferred stock, net of issuance costs     $ 224,000,000    
Dividend rate     4.20%    
Optional redemption price (in dollars per share) | $ / shares   25.00 $ 25.00    
Trading Symbol     CMS PRC    
Series C Preferred Stock          
Financing And Capitalization [Line Items]          
Optional redemption price (in dollars per share) | $ / shares   $ 25,000 $ 25,000    
Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series          
Financing And Capitalization [Line Items]          
Trading Symbol     CMS-PB    
Consumers Energy Company          
Financing And Capitalization [Line Items]          
Notes payable – related parties   $ 392,000,000 $ 392,000,000 $ 307,000,000  
Unrestricted retained earnings   $ 1,800,000,000 $ 1,800,000,000    
Common stock authorized (in shares) | shares   125,000,000.0 125,000,000.0 125,000,000.0  
Preferred stock authorized (in shares) | shares   7,500,000 7,500,000 7,500,000  
Consumers Energy Company | Credit Agreement          
Financing And Capitalization [Line Items]          
Maximum borrowing capacity   $ 500,000,000 $ 500,000,000    
Notes payable – related parties   $ 392,000,000 $ 392,000,000    
Interest rate   0.00% 0.00%    
Consumers Energy Company | Credit Agreement | Subsequent Event          
Financing And Capitalization [Line Items]          
Repayment of note payable - related party $ 392,000,000        
Consumers Energy Company | Credit Agreement | London Interbank Offered Rate (LIBOR)          
Financing And Capitalization [Line Items]          
Basis spread on variable rate   0.10%      
Consumers Energy Company | Commercial Paper          
Financing And Capitalization [Line Items]          
Short-term debt authorized borrowings     $ 500,000,000    
Short-term borrowings outstanding   $ 0 $ 0    
v3.22.0.1
Financings and Capitalization (Schedule of Forward Stock Contracts) (Details) - $ / shares
Dec. 31, 2021
Dec. 22, 2020
Sep. 15, 2020
Forward Contracts Entered Into September 15, 2020 And Maturing June 30, 2022      
Debt and Equity Securities, FV-NI [Line Items]      
Number of Shares     846,759
Initial forward price (in dollars per share) $ 58.51   $ 61.04
Forward Contracts Entered Into December 22, 2020 And Maturing June 22, 2022      
Debt and Equity Securities, FV-NI [Line Items]      
Number of Shares   115,595  
Initial forward price (in dollars per share) $ 59.73 $ 61.81  
v3.22.0.1
Financings and Capitalization (Schedule of Preferred Stock) (Details) - $ / shares
Dec. 31, 2021
Dec. 31, 2020
Debt and Equity Securities, FV-NI [Line Items]    
Par value of preferred stock (in dollars per share) $ 0.01  
Preferred stock authorized (in shares) 10,000,000  
Consumers Energy Company    
Debt and Equity Securities, FV-NI [Line Items]    
Preferred stock authorized (in shares) 7,500,000 7,500,000
Preferred Stock $4.50 Series | Consumers Energy Company    
Debt and Equity Securities, FV-NI [Line Items]    
Par value of preferred stock (in dollars per share) $ 100 $ 100
Optional redemption price (in dollars per share) $ 110 $ 110
Preferred stock authorized (in shares) 7,500,000 7,500,000
Number of shares outstanding (in shares) 373,148 373,148
v3.22.0.1
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Assets    
Restricted cash equivalents $ 24 $ 17
Derivative instruments 2 1
Liabilities    
Derivative instruments 7 11
Current assets held for sale 19 429
Consumers Energy Company    
Assets    
Restricted cash equivalents 22 15
Derivative instruments 2 1
Liabilities    
Derivative instruments 0 0
Current assets held for sale 19 0
Level 1    
Assets    
Restricted cash equivalents 24 17
Nonqualified deferred compensation plan assets 27 23
Liabilities    
Nonqualified deferred compensation plan liabilities 27 23
Level 1 | Consumers Energy Company    
Assets    
Restricted cash equivalents 22 15
Nonqualified deferred compensation plan assets 21 18
Liabilities    
Nonqualified deferred compensation plan liabilities 21 18
Fair Value, Inputs, Level 1, 2 and 3    
Assets    
Total assets 53 41
Liabilities    
Total liabilities 34 34
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company    
Assets    
Total assets 45 34
Liabilities    
Total liabilities $ 21 $ 18
v3.22.0.1
Fair Value Measurements - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash flow hedge gain (loss) $ 2 $ (6) $ (4)
Derivative instruments 7 11  
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Notional amount 78 85  
Other Liabilities | Designated as Hedging Instrument | Cash Flow Hedging      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Derivative instruments $ 4 $ 9  
v3.22.0.1
Fair Value Measurements (Assets Reported at Fair Value on a Nonrecurring Basis) (Details) - USD ($)
$ in Millions
 1 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets held for sale $ 19 $ 429
Consumers Energy Company    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets held for sale 19 $ 0
Consumers Energy Company | Fair Value, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Impairment charge (4)  
Level 1 | Consumers Energy Company | Fair Value, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets held for sale 0  
Level 2 | Consumers Energy Company | Fair Value, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets held for sale 15  
Level 3 | Consumers Energy Company | Fair Value, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets held for sale $ 0  
v3.22.0.1
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Liabilities    
Current accounts receivable $ 9 $ 12
Current portion of long term debt 373 571
Current portion of long-term payables 23 6
Carrying Amount    
Assets    
Long-term receivables 14 17
Liabilities    
Long-term debt 12,419 12,315
Long-term payables 31 33
Fair Value    
Assets    
Long-term receivables 14 17
Liabilities    
Long-term debt 13,800 14,601
Long-term payables 32 35
Consumers Energy Company    
Liabilities    
Current accounts receivable 9 12
Current portion of long term debt 365 364
DB SERP note receivable – related party 7 7
Consumers Energy Company | Carrying Amount    
Assets    
Long-term receivables 14 17
Notes receivable related party 104 107
Liabilities    
Long-term debt 8,415 8,106
Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 14 17
Notes receivable related party 104 107
Liabilities    
Long-term debt 9,410 9,801
Level 1 | Fair Value    
Assets    
Long-term receivables 0 0
Liabilities    
Long-term debt 1,189 1,249
Long-term payables 0 0
Level 1 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 0 0
Notes receivable related party 0 0
Liabilities    
Long-term debt 0 0
Level 2 | Fair Value    
Assets    
Long-term receivables 0 0
Liabilities    
Long-term debt 10,656 11,267
Long-term payables 0 0
Level 2 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 0 0
Notes receivable related party 0 0
Liabilities    
Long-term debt 7,455 7,716
Level 3 | Fair Value    
Assets    
Long-term receivables 14 17
Liabilities    
Long-term debt 1,955 2,085
Long-term payables 32 35
Level 3 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 14 17
Notes receivable related party 104 107
Liabilities    
Long-term debt $ 1,955 $ 2,085
v3.22.0.1
Financial Instruments (Narrative) (Details) - CMS Energy Note Payable
Dec. 31, 2021
Financial Instruments [Line Items]  
Interest rate 4.10%
Consumers Energy Company  
Financial Instruments [Line Items]  
Interest rate 4.10%
v3.22.0.1
Plant, Property, and Equipment (Schedule Of Plant, Property, and Equipment) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Public Utility, Property, Plant and Equipment [Line Items]      
Plant, property, and equipment, gross $ 29,893 $ 27,870 $ 25,368
Construction work in progress 961 1,085  
Accumulated depreciation and amortization (8,502) (7,938)  
Total plant, property, and equipment 22,352 21,017  
Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Plant, property, and equipment, gross 28,771 26,757 24,963
Assets under finance leases and other financing 332 336 $ 340
Construction work in progress 915 1,058  
Accumulated depreciation and amortization (8,371) (7,844)  
Total plant, property, and equipment 21,315 19,971  
Plant additions 2,400 2,000  
Plant retirements $ 361 220  
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 $ 6,704 6,376  
Generation | Consumers Energy Company | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, generation 22 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 $ 9,815 9,130  
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 75 years    
Other | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Other $ 1,309 1,326  
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 50 years    
Assets under finance leases and other financing | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Assets under finance leases and other financing $ 319 323  
Distribution | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Distribution $ 6,338 5,702  
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 $ 2,319 2,003  
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 $ 1,117 1,046  
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 $ 814 817  
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 50 years    
Finance leases | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Assets under finance leases and other financing $ 13 13  
Other non-utility property | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Other non-utility property $ 23 21  
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 26  
Enterprises independent power production      
Public Utility, Property, Plant and Equipment [Line Items]      
Plant, property, and equipment, gross $ 1,121 1,112  
Enterprises independent power production | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, Enterprises 2 years    
Enterprises independent power production | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, Enterprises 40 years    
Enterprises Other      
Public Utility, Property, Plant and Equipment [Line Items]      
Plant, property, and equipment, gross $ 1 $ 1  
Enterprises Other | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, Enterprises 3 years    
Enterprises Other | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, Enterprises 5 years    
v3.22.0.1
Plant, Property, and Equipment (Schedule of Finite-Lived Intangible Assets by Major Class Table) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost $ 1,102 $ 1,105
Accumulated Amortization  684 658
Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 1,102 1,104
Accumulated Amortization  684 658
Plant additions 2,400 2,000
Plant retirements 361 220
Software development    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 840 856
Accumulated Amortization  592 568
Software development | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 840 856
Accumulated Amortization  592 568
Leasehold improvements    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 9 10
Accumulated Amortization  6 7
Leasehold improvements | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 9 10
Accumulated Amortization  6 7
Intangible Plant | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Plant additions 88 69
Plant retirements 91 65
Rights of way    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 211 197
Accumulated Amortization  60 57
Rights of way | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 211 197
Accumulated Amortization  60 57
Franchises and consents    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 16 16
Accumulated Amortization  10 10
Franchises and consents | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 16 16
Accumulated Amortization  10 10
Other intangible assets    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 26 26
Accumulated Amortization  16 16
Other intangible assets | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 26 25
Accumulated Amortization  $ 16 $ 16
Minimum | Software development    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 3 years  
Minimum | Software development | Consumers Energy Company    
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 | Rights of way | Consumers Energy Company    
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  
Minimum | Franchises and consents | Consumers Energy Company    
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 | Software development | Consumers Energy Company    
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 | Rights of way | Consumers Energy Company    
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  
Maximum | Franchises and consents | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 50 years  
v3.22.0.1
Plant, Property, and Equipment (Public Utilities, Allowance for Funds Used During Construction, Schedule of Composite Rate Table) (Details) - Consumers Energy Company
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Electric Utility      
Property, Plant and Equipment [Line Items]      
AFUDC capitalization rate 6.20% 6.90% 6.40%
Gas Utility      
Property, Plant and Equipment [Line Items]      
AFUDC capitalization rate 5.60% 5.70% 5.80%
v3.22.0.1
Plant, Property, and Equipment (Schedule of Finance Leases and Other Financing Obligations) (Details) - Consumers Energy Company - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Finance Leases and Other Financing Obligations, Rollforward [Roll Forward]    
Balance at beginning of period $ 336 $ 340
Additions 0 0
Net retirements and other adjustments (4) (4)
Balance at end of period 332 336
Finance lease accumulated amortization $ 272 $ 254
v3.22.0.1
Plant, Property, and Equipment (Schedule Of Depreciation And Amortization) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Public Utility, Property, Plant and Equipment [Line Items]    
Accumulated depreciation and amortization $ 8,502 $ 7,938
Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Consumers accumulated depreciation and amortization 8,371 7,844
Non-utility plant assets    
Public Utility, Property, Plant and Equipment [Line Items]    
Accumulated depreciation and amortization 136 97
Non-utility plant assets | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Consumers accumulated depreciation and amortization 5 3
Utility plant assets    
Public Utility, Property, Plant and Equipment [Line Items]    
Accumulated depreciation and amortization 8,366 7,841
Utility plant assets | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Consumers accumulated depreciation and amortization $ 8,366 $ 7,841
v3.22.0.1
Plant, Property, and Equipment (Public Utilities Property Plant and Equipment Schedule of Composite Depreciation Rate Table) (Details) - Consumers Energy Company
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Electric utility property      
Public Utility, Property, Plant and Equipment [Line Items]      
Composite depreciation rate 3.90% 3.90% 3.90%
Gas utility property      
Public Utility, Property, Plant and Equipment [Line Items]      
Composite depreciation rate 2.90% 2.90% 2.90%
Other property      
Public Utility, Property, Plant and Equipment [Line Items]      
Composite depreciation rate 9.40% 9.80% 10.00%
v3.22.0.1
Plant, Property, and Equipment (Schedule Of Depreciation And Amortization Expense) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment [Line Items]      
Depreciation expense – plant, property, and equipment $ 975 $ 901 $ 841
Total depreciation and amortization expense 1,114 1,043 989
Securitized regulatory assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 27 26 26
Software      
Property, Plant and Equipment [Line Items]      
Amortization expense 108 112 119
Other intangible assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 4 4 3
Consumers Energy Company      
Property, Plant and Equipment [Line Items]      
Depreciation expense – plant, property, and equipment 938 881 827
Total depreciation and amortization expense 1,077 1,023 975
Consumers Energy Company | Securitized regulatory assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 27 26 26
Consumers Energy Company | Software      
Property, Plant and Equipment [Line Items]      
Amortization expense 108 112 119
Consumers Energy Company | Other intangible assets      
Property, Plant and Equipment [Line Items]      
Amortization expense $ 4 $ 4 $ 3
v3.22.0.1
Plant, Property, and Equipment (Schedule Of Estimated Amortization Expense For Intangibles) (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Public Utility, Property, Plant and Equipment [Line Items]  
2022 $ 108
2023 94
2024 84
2025 86
2026 84
Consumers Energy Company  
Public Utility, Property, Plant and Equipment [Line Items]  
2022 108
2023 94
2024 84
2025 86
2026 $ 84
v3.22.0.1
Plant, Property, and Equipment (Jointly Owned Regulated Utility Facilities) (Details) - Consumers Energy Company
$ in Millions
Dec. 31, 2021
USD ($)
J.H. Campbell Unit 3  
Public Utility, Property, Plant and Equipment [Line Items]  
Ownership share 93.30%
Utility plant in service $ 1,751
Accumulated depreciation (897)
Construction work in progress 21
Net investment $ 875
Ludington  
Public Utility, Property, Plant and Equipment [Line Items]  
Ownership share 51.00%
Utility plant in service $ 499
Accumulated depreciation (198)
Construction work in progress 92
Net investment 393
Other  
Public Utility, Property, Plant and Equipment [Line Items]  
Utility plant in service 395
Accumulated depreciation (112)
Construction work in progress 13
Net investment $ 296
v3.22.0.1
Leases and Palisades Financing - Assets and Liabilities of Lessee (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Operating leases    
Right-of-use assets $ 26 $ 32
Lease liabilities    
Current lease liabilities 3 7
Noncurrent lease liabilities 23 25
Finance leases    
Right-of-use assets 57 65
Lease liabilities    
Current lease liabilities 6 7
Non-current lease liabilities $ 46 $ 53
Weighted-average remaining lease term (in years)    
Operating leases 23 years 19 years
Finance leases 12 years 12 years
Weighted-average discount rate    
Operating leases 4.00% 3.90%
Finance leases 1.70% 1.80%
Finance lease liability $ 52  
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, finance leases, and other financing Current portion of long-term debt, finance leases, and other financing
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Non-current portion of finance leases and other financing Non-current portion of finance leases and other financing
Consumers Energy Company    
Operating leases    
Right-of-use assets $ 22 $ 28
Lease liabilities    
Current lease liabilities 3 7
Noncurrent lease liabilities 19 21
Finance leases    
Right-of-use assets 57 65
Lease liabilities    
Current lease liabilities 6 7
Non-current lease liabilities $ 46 $ 53
Weighted-average remaining lease term (in years)    
Operating leases 21 years 18 years
Finance leases 12 years 12 years
Weighted-average discount rate    
Operating leases 3.90% 3.80%
Finance leases 1.70% 1.80%
Finance lease liability $ 52  
Related Party Lease    
Lease liabilities    
Current lease liabilities 1 $ 1
Weighted-average discount rate    
Finance lease liability $ 25 $ 25
v3.22.0.1
Leases and Palisades Financing - Schedule of Lease Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Lessee, Lease, Description [Line Items]    
Operating lease costs $ 8 $ 9
Finance lease costs    
Amortization of right-of-use assets 7 6
Interest on lease liabilities 16 17
Variable lease costs 90 94
Short-term lease costs 22 17
Total lease costs 143 143
Consumers Energy Company    
Lessee, Lease, Description [Line Items]    
Operating lease costs 8 9
Finance lease costs    
Amortization of right-of-use assets 7 6
Interest on lease liabilities 16 17
Variable lease costs 90 94
Short-term lease costs 21 16
Total lease costs $ 142 $ 142
v3.22.0.1
Leases and Palisades Financing - Schedule of Lessee Cash Flows (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities    
Cash used in operating activities for operating leases $ 8 $ 11
Cash used in operating activities for finance leases 16 17
Cash used in financing activities for finance leases 7 6
Consumers Energy Company    
Cash paid for amounts included in the measurement of lease liabilities    
Cash used in operating activities for operating leases 8 9
Cash used in operating activities for finance leases 16 17
Cash used in financing activities for finance leases $ 7 $ 6
v3.22.0.1
Leases and Palisades Financing - Minimum Annual Rental Commitments post Topic 842 (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Operating Leases  
2022 $ 5
2023 2
2024 2
2025 1
2026 1
2027 and thereafter 32
Total minimum lease payments 43
Less discount 17
Present value of minimum lease payments 26
Finance Leases  
2022 19
2023 18
2024 16
2025 14
2026 15
2027 and thereafter 60
Total minimum lease payments 142
Less discount 90
Present value of minimum lease payments 52
Consumers Energy Company  
Operating Leases  
2022 4
2023 2
2024 1
2025 1
2026 1
2027 and thereafter 27
Total minimum lease payments 36
Less discount 14
Present value of minimum lease payments 22
Finance Leases  
2022 19
2023 18
2024 16
2025 14
2026 15
2027 and thereafter 60
Total minimum lease payments 142
Less discount 90
Present value of minimum lease payments 52
Pipelines and PPAs  
Finance Leases  
2022 14
2023 13
2024 13
2025 13
2026 13
2027 and thereafter 51
Total minimum lease payments 117
Less discount 88
Present value of minimum lease payments 29
Pipelines and PPAs | Consumers Energy Company  
Finance Leases  
2022 14
2023 13
2024 13
2025 13
2026 13
2027 and thereafter 51
Total minimum lease payments 117
Less discount 88
Present value of minimum lease payments 29
Other  
Finance Leases  
2022 5
2023 5
2024 3
2025 1
2026 2
2027 and thereafter 9
Total minimum lease payments 25
Less discount 2
Present value of minimum lease payments 23
Other | Consumers Energy Company  
Finance Leases  
2022 5
2023 5
2024 3
2025 1
2026 2
2027 and thereafter 9
Total minimum lease payments 25
Less discount 2
Present value of minimum lease payments $ 23
v3.22.0.1
Leases and Palisades Financing - Lessor Leases Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]    
Minimum rental payments to be received 2027 and thereafter $ 6  
Lease receivables 5  
Unearned income 4  
Maximum    
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]    
Minimum rental payments to be received 2022 1  
Minimum annual rental payments to be received in 2023 1  
Minimum annual rental payments to be received in 2024 1  
Minimum annual rental payments to be received in 2025 1  
Minimum rental payments to be received in 2026 1  
Consumers Energy Company    
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]    
Minimum rental payments to be received 2022 1  
Minimum annual rental payments to be received in 2023 1  
Minimum annual rental payments to be received in 2024 1  
Minimum annual rental payments to be received in 2025 1  
Minimum rental payments to be received in 2026 1  
Minimum rental payments to be received 2027 and thereafter 17  
Lease receivables 10  
Unearned income 12  
Power Sales Agreement    
Lessor, Lease, Description [Line Items]    
Leasing income 194 $ 148
Variable lease income $ 138 $ 93
v3.22.0.1
Leases and Palisades Financing - Schedule of Future Payments to be Received (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Operating Leases  
2022 $ 48
2023 43
2024 43
2025 44
2026 18
Total minimum lease payments $ 196
v3.22.0.1
Leases and Palisades Financing - Palisades Financing (Details) - Financing Obligation - Consumers Energy Company - Palisades Power Purchase Agreement
$ in Millions
 12 Months Ended
Dec. 31, 2021
USD ($)
MW
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2007
Other Commitments [Line Items]        
Finance obligation term       15 years
Annual average capacity (in MW) | MW 798      
Amortization and interest expense $ 14 $ 14 $ 15  
Palisades asset 3      
Palisades financing obligation $ 3      
v3.22.0.1
Asset Retirement Obligations (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period $ 553 $ 477
Incurred 71 65
Settled (53) (41)
Accretion 24 24
Cash Flow Revisions 33 28
ARO Liability, end of period 628 553
Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 530 474
Incurred 71 46
Settled (53) (41)
Accretion 24 23
Cash Flow Revisions 33 28
ARO Liability, end of period 605 530
Renewable generation assets    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 23 3
Incurred 0 19
Settled 0 0
Accretion 0 1
Cash Flow Revisions 0 0
ARO Liability, end of period 23 23
Renewable generation assets | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 74 21
Incurred 16 24
Settled 0 0
Accretion 3 1
Cash Flow Revisions 0 28
ARO Liability, end of period 93 74
Coal ash disposal areas | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 148 166
Incurred 0 0
Settled (34) (24)
Accretion 5 6
Cash Flow Revisions 38 0
ARO Liability, end of period 157 148
Gas distribution cut, purge, and cap | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 240 231
Incurred 39 1
Settled (10) (5)
Accretion 13 13
Cash Flow Revisions 0 0
ARO Liability, end of period 282 240
Asbestos abatement | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 36 34
Incurred 0 0
Settled 0 0
Accretion 2 2
Cash Flow Revisions 0 0
ARO Liability, end of period 38 36
Gas wells plug and abandon | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 32 22
Incurred 16 16
Settled (9) (7)
Accretion 1 1
Cash Flow Revisions (5) 0
ARO Liability, end of period 35 32
Cable under Straits of Mackinac | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period $ 0 0
Incurred   5
Settled   (5)
Accretion   0
Cash Flow Revisions   0
ARO Liability, end of period   $ 0
v3.22.0.1
Retirement Benefits (Narrative) (Details)
$ in Millions
 2 Months Ended 12 Months Ended
Oct. 31, 2021
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2021
USD ($)
year
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Defined Benefit Plan Disclosure [Line Items]          
Union employees percentage   41.00% 41.00%    
Consumers Energy Company          
Defined Benefit Plan Disclosure [Line Items]          
Union employees percentage   42.00% 42.00%    
DB Pension Plans          
Defined Benefit Plan Disclosure [Line Items]          
Settlement loss $ 18 $ 4      
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    
ABO   2,700 $ 2,700 $ 2,900  
DB Pension Plans | Consumers Energy Company | Pension Costs          
Defined Benefit Plan Disclosure [Line Items]          
Settlement loss $ 18 $ 3      
DB Pension Plans | Equity securities          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   54.00% 54.00%    
DB Pension Plans | Fixed-income securities          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   29.00% 29.00%    
DB Pension Plans | Real asset investments          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   12.00% 12.00%    
DB Pension Plans | Multi-asset investments          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   5.00% 5.00%    
OPEB Plan          
Defined Benefit Plan Disclosure [Line Items]          
Settlement loss     $ 0 $ 0 $ 0
Retirement age requirement | year     55    
Retirement years of service     10 years    
Retirement years of service with disability     15 years    
Ultimate health care cost trend rate   4.75% 4.75%    
Year health care cost trend rate reaches ultimate trend rate     2028    
Estimated time of amortization of gains losses     9 years 9 years 10 years
OPEB Plan | Under Age 65          
Defined Benefit Plan Disclosure [Line Items]          
Health care cost trend rate assumed next fiscal year   6.25% 6.25% 6.50%  
OPEB Plan | Over Age 65          
Defined Benefit Plan Disclosure [Line Items]          
Health care cost trend rate assumed next fiscal year   6.75% 6.75% 7.00%  
OPEB Plan | Consumers Energy Company          
Defined Benefit Plan Disclosure [Line Items]          
Retirement age requirement | year     55    
Retirement years of service     10 years    
Retirement years of service with disability     15 years    
Ultimate health care cost trend rate   4.75% 4.75%    
Year health care cost trend rate reaches ultimate trend rate     2028    
OPEB Plan | Consumers Energy Company | Under Age 65          
Defined Benefit Plan Disclosure [Line Items]          
Health care cost trend rate assumed next fiscal year   6.25% 6.25% 6.50%  
OPEB Plan | Consumers Energy Company | Over Age 65          
Defined Benefit Plan Disclosure [Line Items]          
Health care cost trend rate assumed next fiscal year   6.75% 6.75% 7.00%  
Postretirement Health Trusts | Equity securities          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   55.00% 55.00%    
Postretirement Health Trusts | Fixed-income securities          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   30.00% 30.00%    
Postretirement Health Trusts | Real asset investments          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   12.00% 12.00%    
Postretirement Health Trusts | Multi-asset investments          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   3.00% 3.00%    
Postretirement Life Trusts | Equity securities          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   53.00% 53.00%    
Postretirement Life Trusts | Fixed-income securities          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   32.00% 32.00%    
Postretirement Life Trusts | Multi-asset investments          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   15.00% 15.00%    
DB Pension Plan A Settlement | DB Pension Plans | Pension Costs          
Defined Benefit Plan Disclosure [Line Items]          
Regulatory asset, amortization period     8 years    
Defined Company Contribution Plan          
Defined Benefit Plan Disclosure [Line Items]          
Plan cost, defined contribution plan     $ 41 $ 31 $ 29
Defined Company Contribution Plan | Consumers Energy Company          
Defined Benefit Plan Disclosure [Line Items]          
Plan cost, defined contribution plan     41 31 28
DC SERP          
Defined Benefit Plan Disclosure [Line Items]          
Plan cost, defined contribution plan     $ 2 2 2
Minimum years of participation before vesting     5 years    
Trust assets   $ 13 $ 13 11  
401 (K) Plan          
Defined Benefit Plan Disclosure [Line Items]          
Employer match of eligible wages     3.00%    
Plan cost, defined contribution plan     $ 31 29 28
Employer match of eligible contributions     100.00%    
Secondary employer match of eligible contributions     50.00%    
Secondary employer match of eligible wages     2.00%    
401 (K) Plan | Consumers Energy Company          
Defined Benefit Plan Disclosure [Line Items]          
Plan cost, defined contribution plan     $ 31 $ 29 $ 27
Pension Plan A | DB Pension Plans          
Defined Benefit Plan Disclosure [Line Items]          
Estimated time of amortization of gains losses     8 years 8 years 9 years
Estimated time of prior service cost     8 years    
Pension Plan A | DB Pension Plans | Consumers Energy Company          
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     18 years 19 years 20 years
Minimum | Defined Company Contribution Plan          
Defined Benefit Plan Disclosure [Line Items]          
Employer match of eligible wages     5.00%    
Minimum | DC SERP          
Defined Benefit Plan Disclosure [Line Items]          
Plan contribution percentage     5.00%    
Maximum | Defined Company Contribution Plan          
Defined Benefit Plan Disclosure [Line Items]          
Employer match of eligible wages     10.00%    
Maximum | DC SERP          
Defined Benefit Plan Disclosure [Line Items]          
Plan contribution percentage     15.00%    
v3.22.0.1
Retirement Benefits (Schedule Of SERP Trust Assets, ABO And Contributions) (Details) - DB SERP - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]      
Trust assets $ 0 $ 0 $ 0
ABO 149 159  
Contributions 0 8  
Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Trust assets 0 0 $ 0
ABO 108 115  
Contributions 0 5  
Trust assets      
Defined Benefit Plan Disclosure [Line Items]      
Trust assets 142 146  
Trust assets | Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Trust assets $ 104 $ 107  
v3.22.0.1
Retirement Benefits (Schedule Of Assumptions Used) (Details)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
DB Pension Plans      
Weighted average for net periodic benefit cost      
Expected long-term rate of return on plan assets 6.75% 6.75% 7.00%
Actual rate of return on plan assets 12.00% 13.60% 21.00%
DB SERP      
Weighted average for benefit obligations      
Discount rate 2.78% 2.40% 3.15%
Rate of compensation increase 5.50% 5.50% 5.50%
Weighted average for net periodic benefit cost      
Service cost discount rate 2.84% 3.46% 4.58%
Interest cost discount rate 1.72% 2.74% 3.94%
Rate of compensation increase 5.50% 5.50% 5.50%
OPEB Plan      
Weighted average for benefit obligations      
Discount rate 2.99% 2.69% 3.32%
Weighted average for net periodic benefit cost      
Service cost discount rate 3.03% 3.57% 4.63%
Interest cost discount rate 1.99% 2.88% 4.03%
Expected long-term rate of return on plan assets 6.75% 6.75% 7.00%
Pension Plan A | DB Pension Plans      
Weighted average for benefit obligations      
Discount rate 3.02% 2.73% 3.37%
Rate of compensation increase 3.60% 3.70% 3.50%
Weighted average for net periodic benefit cost      
Service cost discount rate 2.83% 3.44% 4.55%
Interest cost discount rate 1.97% 2.92% 4.08%
Rate of compensation increase 3.70% 3.50% 3.50%
Pension Plan B | DB Pension Plans      
Weighted average for benefit obligations      
Discount rate 2.79% 2.41% 3.17%
Weighted average for net periodic benefit cost      
Interest cost discount rate 1.70% 2.74% 3.93%
v3.22.0.1
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
DB Pension Plans and DB SERP      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost $ 53 $ 50 $ 41
Interest cost 63 83 103
Settlement loss 1 1 0
Expected return on plan assets (208) (191) (162)
Amortization of      
Net loss 100 95 50
Prior service cost (credit) 4 1 1
Settlement loss 6 2 0
Net periodic cost (credit) 19 41 33
DB Pension Plans and DB SERP | Consumers Energy Company      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost 51 49 40
Interest cost 59 78 97
Expected return on plan assets (197) (181) (153)
Amortization of      
Net loss 96 90 47
Prior service cost (credit) 4 1 1
Settlement loss 6 2 0
Net periodic cost (credit) 19 39 32
OPEB Plan      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost 18 16 14
Interest cost 23 33 41
Settlement loss 0 0 0
Expected return on plan assets (109) (100) (88)
Amortization of      
Net loss 8 15 26
Prior service cost (credit) (53) (56) (62)
Settlement loss 0 0 0
Net periodic cost (credit) (113) (92) (69)
OPEB Plan | Consumers Energy Company      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost 17 15 13
Interest cost 23 31 40
Expected return on plan assets (102) (93) (82)
Amortization of      
Net loss 8 15 26
Prior service cost (credit) (51) (54) (61)
Settlement loss 0 0 0
Net periodic cost (credit) $ (105) $ (86) $ (64)
v3.22.0.1
Retirement Benefits (Schedule Of Funded Status Of Retirement Benefit Plans) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
DB Pension Plans      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period $ 3,266 $ 2,973  
Service cost 53 50  
Interest cost 60 79  
Plan amendments 0 24  
Actuarial loss (gain) (108) 355  
Benefits paid (201) (215)  
Benefit obligation at end of period 3,070 3,266 $ 2,973
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 3,402 2,546  
Actual return on plan assets 398 371  
Company contribution 0 700  
Actual benefits paid (201) (215)  
Plan assets at fair value at end of period 3,599 3,402 2,546
Funded status 529 136  
DB Pension Plans | Consumers Energy Company      
Defined Benefit Plan, Roll Forwards [Abstract]      
Funded status 510 138  
DB SERP      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 160 150  
Service cost 0 0  
Interest cost 3 4  
Plan amendments 0 0  
Actuarial loss (gain) (4) 16  
Benefits paid (10) (10)  
Benefit obligation at end of period 149 160 150
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 (149) (160)  
DB SERP | Consumers Energy Company      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 117 109  
Service cost 0 0  
Interest cost 2 3  
Plan amendments 0 0  
Actuarial loss (gain) (3) 12  
Benefits paid (7) (7)  
Benefit obligation at end of period 109 117 109
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 (109) (117)  
OPEB Plan      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 1,205 1,165  
Service cost 18 16 14
Interest cost 23 33 41
Plan amendments 5 0  
Actuarial loss (gain) (32) 39  
Benefits paid (53) (48)  
Benefit obligation at end of period 1,166 1,205 1,165
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 1,645 1,509  
Actual return on plan assets 194 182  
Company contribution 0 1  
Actual benefits paid (52) (47)  
Plan assets at fair value at end of period 1,787 1,645 1,509
Funded status 621 440  
OPEB Plan | Consumers Energy Company      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 1,158 1,120  
Service cost 17 15 13
Interest cost 23 31 40
Plan amendments 5 0  
Actuarial loss (gain) (30) 37  
Benefits paid (51) (45)  
Benefit obligation at end of period 1,122 1,158 1,120
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 1,535 1,410  
Actual return on plan assets 182 169  
Company contribution 0 1  
Actual benefits paid (49) (45)  
Plan assets at fair value at end of period 1,668 1,535 $ 1,410
Funded status $ 546 $ 377  
v3.22.0.1
Retirement Benefits (Schedule Of Retirement Benefit Plan Assets (Liabilities)) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]    
Non-current liabilities $ 142 $ 152
Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Non-current liabilities 104 112
DB Pension Plans    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 529 136
DB Pension Plans | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 510 138
OPEB Plan    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 621 440
OPEB Plan | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 546 377
DB SERP    
Defined Benefit Plan Disclosure [Line Items]    
Current liabilities 10 10
Non-current liabilities 139 150
DB SERP | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Current liabilities 7 7
Non-current liabilities $ 102 $ 110
v3.22.0.1
Retirement Benefits (Schedule Of Net Periodic Benefit Cost Not yet Recognized) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Consumers Energy Company    
Regulatory assets (liabilities)    
Total regulatory assets $ 2,305 $ 2,695
Total regulatory liabilities (3,948) (3,895)
DB Pension Plans and DB SERP    
Regulatory assets (liabilities)    
Net loss 812 1,194
Prior service cost (credit) 25 29
Total regulatory assets 837 1,223
AOCI    
Net loss (gain) 94 120
Prior service cost (credit) 0 1
Total amounts recognized in regulatory assets (liabilities) and AOCI 931 1,344
DB Pension Plans and DB SERP | Consumers Energy Company    
Regulatory assets (liabilities)    
Net loss 812 1,194
Prior service cost (credit) 25 29
Total regulatory assets 837 1,223
AOCI    
Net loss (gain) 41 47
Total amounts recognized in regulatory assets (liabilities) and AOCI 878 1,270
OPEB Plan    
Regulatory assets (liabilities)    
Net loss 136 254
Prior service cost (credit) (190) (246)
Total regulatory assets   8
Total regulatory liabilities (54)  
AOCI    
Net loss (gain) (17) (10)
Prior service cost (credit) (5) (6)
Total amounts recognized in regulatory assets (liabilities) and AOCI (76) (8)
OPEB Plan | Consumers Energy Company    
Regulatory assets (liabilities)    
Net loss 136 254
Prior service cost (credit) (190) (246)
Total regulatory assets   8
Total regulatory liabilities (54)  
AOCI    
Net loss (gain) 0 0
Total amounts recognized in regulatory assets (liabilities) and AOCI $ (54) $ 8
v3.22.0.1
Retirement Benefits (Schedule Of Allocation Of Plan Assets) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets $ 3,599 $ 3,402 $ 2,546
DB Pension Plans | Plan Assets Excluding Pooled Funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 1,698 1,828  
DB Pension Plans | Plan Assets Excluding Pooled Funds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 815 1,086  
DB Pension Plans | Plan Assets Excluding Pooled Funds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 883 742  
DB Pension Plans | Cash and short-term investments      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 30 115  
DB Pension Plans | Cash and short-term investments | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 30 115  
DB Pension Plans | U.S. government and agencies securities      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 209 150  
DB Pension Plans | U.S. government and agencies securities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 209 150  
DB Pension Plans | Corporate debt      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 595 540  
DB Pension Plans | Corporate debt | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 595 540  
DB Pension Plans | State and municipal bonds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 13 11  
DB Pension Plans | State and municipal bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 13 11  
DB Pension Plans | Foreign corporate bonds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 66 41  
DB Pension Plans | Foreign corporate bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 66 41  
DB Pension Plans | Mutual funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 785 971  
DB Pension Plans | Mutual funds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 785 971  
DB Pension Plans | Pooled funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 1,901 1,574  
OPEB Plan      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 1,787 1,645 $ 1,509
OPEB Plan | Plan Assets Excluding Pooled Funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 1,155 995  
OPEB Plan | Plan Assets Excluding Pooled Funds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 1,047 906  
OPEB Plan | Plan Assets Excluding Pooled Funds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 108 89  
OPEB Plan | Cash and short-term investments      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 21 33  
OPEB Plan | Cash and short-term investments | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 21 33  
OPEB Plan | U.S. government and agencies securities      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 25 18  
OPEB Plan | U.S. government and agencies securities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 25 18  
OPEB Plan | Corporate debt      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 73 64  
OPEB Plan | Corporate debt | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 73 64  
OPEB Plan | State and municipal bonds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 2 2  
OPEB Plan | State and municipal bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 2 2  
OPEB Plan | Foreign corporate bonds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 8 5  
OPEB Plan | Foreign corporate bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 8 5  
OPEB Plan | Common stocks      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 85 66  
OPEB Plan | Common stocks | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 85 66  
OPEB Plan | Mutual funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 941 807  
OPEB Plan | Mutual funds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 941 807  
OPEB Plan | Pooled funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets $ 632 $ 650  
v3.22.0.1
Retirement Benefits (Schedule Of Asset Allocation) (Details)
Dec. 31, 2021
DB Pension Plans  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 100.00%
DB Pension Plans | Equity securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 54.00%
DB Pension Plans | Fixed-income securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 28.00%
DB Pension Plans | Real asset investments  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 12.00%
DB Pension Plans | Multi-asset investments  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 5.00%
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 | Equity securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 55.00%
OPEB Plan | Fixed-income securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 28.00%
OPEB Plan | Real asset investments  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 12.00%
OPEB Plan | Multi-asset 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%
v3.22.0.1
Retirement Benefits (Schedule Of Plan Contributions) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]      
Postretirement benefits contributions $ 12 $ 712 $ 10
Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Postretirement benefits contributions 9 690 $ 7
DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Postretirement benefits contributions 0 700  
DB Pension Plans | Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Postretirement benefits contributions 0 682  
OPEB Plan      
Defined Benefit Plan Disclosure [Line Items]      
Postretirement benefits contributions 0 1  
OPEB Plan | Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Postretirement benefits contributions $ 0 $ 1  
v3.22.0.1
Retirement Benefits (Schedule Of Expected Benefit Payments) (Details)
$ in Millions
Dec. 31, 2021
USD ($)
DB Pension Plans  
Defined Benefit Plan Disclosure [Line Items]  
2022 $ 185
2023 181
2024 178
2025 180
2026 178
2027-2031 876
DB Pension Plans | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
2022 175
2023 171
2024 169
2025 170
2026 169
2027-2031 830
DB SERP  
Defined Benefit Plan Disclosure [Line Items]  
2022 10
2023 10
2024 10
2025 10
2026 9
2027-2031 45
DB SERP | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
2022 7
2023 7
2024 7
2025 7
2026 6
2027-2031 31
OPEB Plan  
Defined Benefit Plan Disclosure [Line Items]  
2022 52
2023 54
2024 56
2025 58
2026 59
2027-2031 308
OPEB Plan | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
2022 49
2023 52
2024 54
2025 55
2026 56
2027-2031 $ 294
v3.22.0.1
Stock-Based Compensation (Narrative) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2021
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) 5,927,297
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) 5,927,297
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) 22,264
Unrecognized compensation cost | $ $ 24.1
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) 21,780
Unrecognized compensation cost | $ $ 22.9
Unrecognized compensation cost recognition period 2 years
v3.22.0.1
Stock-Based Compensation (Schedule Of Restricted Stock Activity) (Details) - $ / shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Number of Shares      
Granted (in shares) 561,068    
Consumers Energy Company      
Number of Shares      
Granted (in shares) 530,234    
Restricted stock      
Number of Shares      
Granted (in shares) 547,201    
Vested (in shares) (408,011)    
Forfeited (in shares) (22,264)    
Weighted-Average Grant Date Fair Value per Share      
Granted (in dollars per share) $ 43.52 $ 45.56 $ 43.57
Vested (in dollars per share) 29.46    
Forfeitured (in dollars per share) $ 57.90    
Restricted stock | Consumers Energy Company      
Number of Shares      
Granted (in shares) 517,141    
Vested (in shares) (388,009)    
Forfeited (in shares) (21,780)    
Weighted-Average Grant Date Fair Value per Share      
Granted (in dollars per share) $ 42.85 45.53 43.57
Vested (in dollars per share) 29.55    
Forfeitured (in dollars per share) $ 58.01    
Restricted stock units      
Number of Shares      
Granted (in shares) 13,867    
Vested (in shares) (15,577)    
Forfeited (in shares) 0    
Weighted-Average Grant Date Fair Value per Share      
Granted (in dollars per share) $ 54.11 49.76 50.35
Vested (in dollars per share) $ 48.15    
Restricted stock units | Consumers Energy Company      
Number of Shares      
Granted (in shares) 13,093    
Vested (in shares) (14,891)    
Forfeited (in shares) 0    
Weighted-Average Grant Date Fair Value per Share      
Granted (in dollars per share) $ 53.93 $ 49.70 $ 51.15
Vested (in dollars per share) $ 48.09    
Restricted Stock and Restricted Stock Units      
Number of Shares      
Nonvested, at beginning of period (in shares) 817,357    
Nonvested, at end of period (in shares) 932,573 817,357  
Weighted-Average Grant Date Fair Value per Share      
Weighted-average grant date fair value per share, at beginning of period (in dollars per share) $ 51.68    
Weighted-average grant date fair value per share, at end of period (in dollars per share) $ 56.56 $ 51.68  
Restricted Stock and Restricted Stock Units | Consumers Energy Company      
Number of Shares      
Nonvested, at beginning of period (in shares) 781,531    
Nonvested, at end of period (in shares) 887,085 781,531  
Weighted-Average Grant Date Fair Value per Share      
Weighted-average grant date fair value per share, at beginning of period (in dollars per share) $ 51.73    
Weighted-average grant date fair value per share, at end of period (in dollars per share) $ 56.19 $ 51.73  
v3.22.0.1
Stock-Based Compensation (Schedule Of Restricted Stock Activity - Granted) (Details)
 12 Months Ended
Dec. 31, 2021
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 561,068
Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 530,234
Time-lapse awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 118,290
Time-lapse awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 112,128
Market-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 143,843
Market-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 135,638
Performance-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 143,843
Performance-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 135,638
Restricted stock units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 11,725
Restricted stock units | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 11,035
Dividends on market-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 15,661
Dividends on market-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 14,890
Dividends on performance-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 15,964
Dividends on performance-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 15,175
Dividends on restricted stock units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 2,142
Dividends on restricted stock units | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 2,058
Additional market-based shares based on achievement of condition  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 59,736
Additional market-based shares based on achievement of condition | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 56,505
Additional performance-based shares based on achievement of condition  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 49,864
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) 47,167
v3.22.0.1
Stock-Based Compensation (Schedule Of Share-Based Payment Award, Restricted Stock, Valuation Assumptions) (Details)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]      
Expected volatility 27.60% 14.20% 14.90%
Expected dividend yield 2.80% 2.40% 2.80%
Risk-free rate 0.20% 1.60% 2.50%
v3.22.0.1
Stock-Based Compensation (Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Weighted Average Grant Date Fair Value) (Details) - $ / shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Restricted stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) $ 43.52 $ 45.56 $ 43.57
Restricted stock | Consumers Energy Company      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) 42.85 45.53 43.57
Restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) 54.11 49.76 50.35
Restricted stock units | Consumers Energy Company      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) $ 53.93 $ 49.70 $ 51.15
v3.22.0.1
Stock-Based Compensation (Schedule Of Compensation Cost For Share-Based Payment Arrangements, Allocation Of Share-Based Compensation Costs By Plan) (Details) - Restricted stock - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of shares that vested during the year $ 25 $ 22 $ 26
Compensation expense recognized 22 11 22
Income tax benefit recognized 1 3 1
Consumers Energy Company      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of shares that vested during the year 24 21 25
Compensation expense recognized 21 10 21
Income tax benefit recognized $ 1 $ 3 $ 1
v3.22.0.1
Income Taxes (Schedule Of Effective Income Rate Reconciliation) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Taxes [Line Items]      
Income from continuing operations before income taxes $ 823 $ 809 $ 764
Income tax expense at statutory rate 173 170 160
Increase (decrease) in income taxes from:      
State and local income taxes, net of federal effect 39 44 46
TCJA excess deferred taxes (50) (35) (31)
Production tax credits (40) (28) (20)
Accelerated flow-through of regulatory tax benefits (28) (13) (13)
Research and development tax credits, net (3) (11) (2)
Refund of alternative minimum tax sequestration 0 (9) 0
Other, net 4 (3) (9)
Income tax expense $ 95 $ 115 $ 131
Effective tax rate 11.50% 14.20% 17.10%
Consumers Energy Company      
Income Taxes [Line Items]      
Income from continuing operations before income taxes $ 1,024 $ 989 $ 928
Income tax expense at statutory rate 215 208 195
Increase (decrease) in income taxes from:      
State and local income taxes, net of federal effect 54 47 53
TCJA excess deferred taxes (50) (35) (31)
Production tax credits (33) (19) (12)
Accelerated flow-through of regulatory tax benefits (28) (13) (13)
Research and development tax credits, net (3) (11) (2)
Other, net 1 (4) (5)
Income tax expense $ 156 $ 173 $ 185
Effective tax rate 15.20% 17.50% 19.90%
Research Tax Credit Carryforward      
Increase (decrease) in income taxes from:      
Increase (decrease) in tax credit carryforward   $ 9  
Research Tax Credit Carryforward | Consumers Energy Company      
Increase (decrease) in income taxes from:      
Increase (decrease) in tax credit carryforward   $ 8  
v3.22.0.1
Income Taxes (Significant Components Of Income Tax Expense) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current income taxes      
Federal $ (1) $ (35) $ (31)
State and local 1 (2) 28
Total current income tax expense 0 (37) (3)
Deferred income taxes      
Federal 49 100 84
State and local 49 57 29
Total deferred income tax expense 98 157 113
Deferred income tax credit (3) (5) 21
Income tax expense 95 115 131
Consumers Energy Company      
Current income taxes      
Federal (13) 3 107
State and local 15 (7) 41
Total current income tax expense 2 (4) 148
Deferred income taxes      
Federal 103 115 (10)
State and local 54 67 26
Total deferred income tax expense 157 182 16
Deferred income tax credit (3) (5) 21
Income tax expense $ 156 $ 173 $ 185
v3.22.0.1
Income Taxes (Principal Components Of Deferred Income Tax Assets And Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Deferred income tax assets    
Tax loss and credit carryforwards $ 332 $ 483
Net regulatory tax liability 349 372
Reserves and accruals 32 62
Total deferred income tax assets 713 917
Valuation allowance (2) (1)
Total deferred income tax assets, net of valuation allowance 711 916
Deferred income tax liabilities    
Plant, property, and equipment (2,395) (2,287)
Employee benefits (399) (364)
Securitized costs (46) (53)
Gas inventory (22) (24)
Other (59) (51)
Total deferred income tax liabilities (2,921) (2,779)
Total net deferred income tax liabilities (2,210) (1,863)
Consumers Energy Company    
Deferred income tax assets    
Tax loss and credit carryforwards 134 216
Net regulatory tax liability 349 372
Reserves and accruals 24 24
Total deferred income tax assets, net of valuation allowance 507 612
Deferred income tax liabilities    
Plant, property, and equipment (2,341) (2,230)
Employee benefits (388) (365)
Securitized costs (46) (53)
Gas inventory (22) (24)
Other (50) (34)
Total deferred income tax liabilities (2,847) (2,706)
Total net deferred income tax liabilities $ (2,340) $ (2,094)
v3.22.0.1
Income Taxes (Loss And Credit Carryforwards) (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Operating Loss Carryforwards [Line Items]  
General business credits $ 264
Total tax attributes 332
Consumers Energy Company  
Operating Loss Carryforwards [Line Items]  
General business credits 83
Total tax attributes 134
Federal Tax Authority  
Operating Loss Carryforwards [Line Items]  
Federal net operating loss carryforwards 3
Charitable contribution carryforwards 6
Federal Tax Authority | Consumers Energy Company  
Operating Loss Carryforwards [Line Items]  
Federal net operating loss carryforwards 2
Charitable contribution carryforwards 5
State Tax Authority  
Operating Loss Carryforwards [Line Items]  
Local net operating loss carryforwards 55
Charitable contribution carryforwards 1
State Tax Authority | Consumers Energy Company  
Operating Loss Carryforwards [Line Items]  
Local net operating loss carryforwards 43
Charitable contribution carryforwards 1
Local Tax Authority  
Operating Loss Carryforwards [Line Items]  
Local net operating loss carryforwards $ 3
v3.22.0.1
Income Taxes (Narrative) (Details) - USD ($)
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
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    
v3.22.0.1
Income Taxes (Reconciliation Of Beginning And Ending Uncertain Tax Benefits) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of period $ 25 $ 23 $ 19
Additions for current-year tax positions 2 1 1
Additions for prior-year tax positions 0 3 3
Reductions for prior-year tax positions 0 (2) 0
Balance at end of period 27 25 23
Consumers Energy Company      
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of period 31 34 28
Additions for current-year tax positions 3 1 1
Additions for prior-year tax positions 0 4 5
Reductions for prior-year tax positions 0 (8) 0
Balance at end of period $ 34 $ 31 $ 34
v3.22.0.1
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income available to common stockholders                      
Income from continuing operations $ 114 $ 153 $ 153 $ 308 $ 138 $ 198 $ 129 $ 229 $ 728 $ 694 $ 633
Income (loss) attributable to noncontrolling interests $ (5) $ (6) $ (5) $ (7) $ 4 $ (8) $ 1 $ 0 (23) (3) 2
Preferred stock dividends                 5 0 0
Income from continuing operations available to common stockholders – basic and diluted                 $ 746 $ 697 $ 631
Average common shares outstanding                      
Weighted average shares - basic (in shares)                 289.0 285.0 283.0
Dilutive nonvested stock awards (in shares)                 0.5 0.7 0.7
Dilutive forward equity sale contracts (in shares)                 0.0 0.6 0.6
Weighted average shares - diluted (in shares)                 289.5 286.3 284.3
Income from continuing operations per average common share available to common stockholders - Basic (in dollars per share) $ 0.40 $ 0.54 $ 0.55 $ 1.09 $ 0.47 $ 0.72 $ 0.45 $ 0.81 $ 2.58 $ 2.45 $ 2.23
Income from continuing operations per average common share available to common stockholders - Diluted (in dollars per share) $ 0.40 $ 0.54 $ 0.55 $ 1.09 $ 0.47 $ 0.72 $ 0.45 $ 0.80 $ 2.58 $ 2.44 $ 2.22
v3.22.0.1
Revenue (Disaggregation of Revenue) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 $ 7,075 $ 6,238 $ 6,403
Leasing income                 194 148 174
Financing income                 15 17 14
Consumers alternative-revenue programs                 45 43 33
Consumers revenues to be refunded                   (28)  
Total operating revenue $ 2,033 $ 1,725 $ 1,558 $ 2,013 $ 1,727 $ 1,507 $ 1,382 $ 1,802 7,329 6,418 6,624
Electric Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 4,915 4,348 4,407
Financing income                 10 11 9
Consumers alternative-revenue programs                 33 29 23
Consumers revenues to be refunded                   (16)  
Total operating revenue                 4,958 4,372 4,439
Gas Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 2,046 1,809 1,922
Financing income                 5 6 5
Consumers alternative-revenue programs                 12 14 10
Consumers revenues to be refunded                   (12)  
Total operating revenue                 2,063 1,817 1,937
Enterprises | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 114 81 74
Leasing income                 194 148 174
Total operating revenue                 308 229 248
Consumers Energy Company                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 6,961 6,157 6,329
Financing income                 15 17 14
Consumers alternative-revenue programs                 45 43 33
Consumers revenues to be refunded                   (28)  
Total operating revenue                 7,021 6,189 6,376
Consumers Energy Company | Electric Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 4,915 4,348 4,407
Financing income                 10 11 9
Consumers alternative-revenue programs                 33 29 23
Consumers revenues to be refunded                   (16)  
Total operating revenue                 4,958 4,372 4,439
Consumers Energy Company | Gas Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 2,046 1,809 1,922
Financing income                 5 6 5
Consumers alternative-revenue programs                 12 14 10
Consumers revenues to be refunded                   (12)  
Total operating revenue                 2,063 1,817 1,937
Residential | Consumers Energy Company                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 3,798 3,341 3,304
Residential | Consumers Energy Company | Electric Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 2,402 2,109 1,988
Residential | Consumers Energy Company | Gas Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 1,396 1,232 1,316
Commercial | Consumers Energy Company                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 1,969 1,781 1,874
Commercial | Consumers Energy Company | Electric Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 1,573 1,444 1,502
Commercial | Consumers Energy Company | Gas Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 396 337 372
Industrial | Consumers Energy Company                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 678 616 720
Industrial | Consumers Energy Company | Electric Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 624 570 669
Industrial | Consumers Energy Company | Gas Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 54 46 51
Other                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 114 81 74
Other | Enterprises | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 114 81 74
Other | Consumers Energy Company                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 516 419 431
Other | Consumers Energy Company | Electric Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 316 225 248
Other | Consumers Energy Company | Gas Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 $ 200 $ 194 $ 183
v3.22.0.1
Revenue (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Disaggregation of Revenue [Line Items]      
Bad debt expense $ 22 $ 30 $ 30
Unbilled receivables 486 437  
Regulatory liabilities 146 151  
Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Bad debt expense 22 33 29
Unbilled receivables 486 437  
Regulatory liabilities 146 151  
Consumers Energy Company | Reserve for customer refunds      
Disaggregation of Revenue [Line Items]      
Regulatory liabilities 2 28  
Accounts Receivable      
Disaggregation of Revenue [Line Items]      
Bad debt expense 22 33 29
Accounts Receivable | Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Bad debt expense $ 22 $ 33 $ 29
v3.22.0.1
Other Income and Other Expense (Components of Other Expense) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Other Income and Expenses [Line Items]      
Donations $ (6) $ (35) $ (3)
Civic and political expenditures (5) (5) (6)
Loss on reacquired and extinguished debt 0 (16) 0
All other (7) (6) (4)
Total other expense (18) (62) (13)
Consumers Energy Company      
Other Income and Expenses [Line Items]      
Donations (6) (33) (3)
Civic and political expenditures (5) (5) (6)
All other (7) (5) (4)
Total other expense $ (18) $ (43) $ (13)
v3.22.0.1
Cash And Cash Equivalents (Schedule Of Cash And Cash Equivalents, Including Restricted Amounts) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 452 $ 32    
Restricted cash and cash equivalents 24 17    
Cash and cash equivalents, including restricted amounts 476 185 $ 157 $ 175
Discontinued Operations, Held-for-sale        
Cash and Cash Equivalents [Line Items]        
Current assets held for sale 0 136    
Consumers Energy Company        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents 22 20    
Restricted cash and cash equivalents 22 15    
Cash and cash equivalents, including restricted amounts $ 44 $ 35 $ 28 $ 56
v3.22.0.1
Reportable Segments (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]                      
Operating Revenue $ 2,033 $ 1,725 $ 1,558 $ 2,013 $ 1,727 $ 1,507 $ 1,382 $ 1,802 $ 7,329 $ 6,418 $ 6,624
Depreciation and amortization                 1,114 1,043 989
Income from equity method investees                 10 5 10
Interest charges                 500 505 460
Income tax expense (benefit)                 95 115 131
Net income (loss) available to common stockholders 637 $ 186 $ 176 $ 349 158 $ 218 $ 136 $ 243 1,348 755 680
Plant, property, and equipment, gross 29,893       27,870       29,893 27,870 25,368
Investments in equity method investees 71       70       71 70 71
Total assets 28,753       29,666       28,753 29,666 26,837
Capital expenditures                 2,161 2,275 2,139
Consumers Energy Company                      
Segment Reporting Information [Line Items]                      
Operating Revenue                 7,021 6,189 6,376
Depreciation and amortization                 1,077 1,023 975
Interest charges                 311 320 297
Income tax expense (benefit)                 156 173 185
Net income (loss) available to common stockholders                 866 814 741
Plant, property, and equipment, gross 28,771       26,757       28,771 26,757 24,963
Total assets 27,140       25,399       27,140 25,399 23,699
Capital expenditures                 2,144 2,167 2,134
Other reconciling items                      
Segment Reporting Information [Line Items]                      
Depreciation and amortization                 1 1 1
Interest charges                 183 179 157
Income tax expense (benefit)                 (59) (54) (56)
Net income (loss) available to common stockholders                 458 (96) (95)
Plant, property, and equipment, gross 23       21       23 21 20
Total assets 431       3,132       431 3,132 2,740
Capital expenditures                 2 1 1
Other reconciling items | Consumers Energy Company                      
Segment Reporting Information [Line Items]                      
Depreciation and amortization                 1 1 1
Interest charges                 0 1 1
Net income (loss) available to common stockholders                 (1) (1) (1)
Plant, property, and equipment, gross 23       21       23 21 20
Total assets 21       29       21 29 20
Capital expenditures                 2 1 1
Electric Utility | Operating Segments                      
Segment Reporting Information [Line Items]                      
Operating Revenue                 4,958 4,372 4,439
Depreciation and amortization                 772 739 713
Interest charges                 207 217 213
Income tax expense (benefit)                 117 115 134
Net income (loss) available to common stockholders                 565 554 509
Plant, property, and equipment, gross 18,147       17,155       18,147 17,155 16,158
Total assets 16,493       15,829       16,493 15,829 14,911
Capital expenditures                 1,153 1,281 1,162
Electric Utility | Operating Segments | Consumers Energy Company                      
Segment Reporting Information [Line Items]                      
Operating Revenue                 4,958 4,372 4,439
Depreciation and amortization                 772 739 713
Interest charges                 207 217 213
Income tax expense (benefit)                 117 115 134
Net income (loss) available to common stockholders                 565 554 509
Plant, property, and equipment, gross 18,147       17,155       18,147 17,155 16,158
Total assets 16,555       15,893       16,555 15,893 14,973
Capital expenditures                 1,153 1,281 1,162
Gas Utility | Operating Segments                      
Segment Reporting Information [Line Items]                      
Operating Revenue                 2,063 1,817 1,937
Depreciation and amortization                 304 283 261
Interest charges                 104 102 83
Income tax expense (benefit)                 39 58 51
Net income (loss) available to common stockholders                 302 261 233
Plant, property, and equipment, gross 10,601       9,581       10,601 9,581 8,785
Total assets 10,517       9,429       10,517 9,429 8,659
Capital expenditures                 989 885 971
Gas Utility | Operating Segments | Consumers Energy Company                      
Segment Reporting Information [Line Items]                      
Operating Revenue                 2,063 1,817 1,937
Depreciation and amortization                 304 283 261
Interest charges                 104 102 83
Income tax expense (benefit)                 39 58 51
Net income (loss) available to common stockholders                 302 261 233
Plant, property, and equipment, gross 10,601       9,581       10,601 9,581 8,785
Total assets 10,564       9,477       10,564 9,477 8,706
Capital expenditures                 989 885 971
Enterprises | Operating Segments                      
Segment Reporting Information [Line Items]                      
Operating Revenue                 308 229 248
Depreciation and amortization                 37 20 14
Income from equity method investees                 10 5 10
Interest charges                 6 7 7
Income tax expense (benefit)                 (2) (4) 2
Net income (loss) available to common stockholders                 23 36 33
Plant, property, and equipment, gross 1,122       1,113       1,122 1,113 405
Investments in equity method investees 71       70       71 70 71
Total assets $ 1,312       $ 1,276       1,312 1,276 527
Capital expenditures                 $ 17 $ 108 $ 5
v3.22.0.1
Related Party Transactions - Consumers (Details)
 12 Months Ended
Dec. 31, 2021
USD ($)
MW
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Consumers Energy Company      
Related Party Transaction [Line Items]      
Purchased power – related parties $ 77,000,000 $ 64,000,000 $ 75,000,000
Due to related parties 22,000,000 13,000,000  
Accounts receivable related parties $ 7,000,000 $ 16,000,000  
Consumers Energy Company | Enterprise Segment Generating Units      
Related Party Transaction [Line Items]      
Nameplate capacity (in MW) | MW 1,001    
Long-term purchase commitment, amount $ 515,000,000    
Consumers Energy Company | Credit Agreement      
Related Party Transaction [Line Items]      
Interest rate 0.00%    
Maximum borrowing capacity $ 500,000,000    
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%    
v3.22.0.1
Variable Interest Entities (Narrative) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2021
USD ($)
MW
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Variable Interest Entity [Line Items]      
Investments $ 71 $ 70 $ 71
Variable Interest Entity, Primary Beneficiary | Aviator Wind      
Variable Interest Entity [Line Items]      
Ownership interest 51.00%    
Nameplate capacity (in MW) | MW 525    
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership      
Variable Interest Entity [Line Items]      
Noncontrolling ownership interest 49.00%    
Variable Interest Entity, Not Primary Beneficiary      
Variable Interest Entity [Line Items]      
Investments $ 71 $ 70  
Variable Interest Entity, Not Primary Beneficiary | T.E.S. Filer City      
Variable Interest Entity [Line Items]      
Ownership interest 50.00%    
Variable Interest Entity, Not Primary Beneficiary | Grayling      
Variable Interest Entity [Line Items]      
Ownership interest 50.00%    
Variable Interest Entity, Not Primary Beneficiary | Genesee      
Variable Interest Entity [Line Items]      
Ownership interest 50.00%    
Variable Interest Entity, Not Primary Beneficiary | Craven      
Variable Interest Entity [Line Items]      
Ownership interest 50.00%    
v3.22.0.1
Variable Interest Entities (Consolidated Information of Variable Interest Entity) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Variable Interest Entity [Line Items]      
Cash and cash equivalents $ 452 $ 32  
Accounts receivable 931 853  
Prepayments and other current assets 120 104  
Plant, property, and equipment, net 22,352 21,017  
Total Assets 28,753 29,666 $ 26,837
Accounts payable 875 661  
Asset retirement obligations 628 553  
Variable Interest Entity, Primary Beneficiary      
Variable Interest Entity [Line Items]      
Cash and cash equivalents 20 7  
Accounts receivable 3 5  
Prepayments and other current assets 1 1  
Plant, property, and equipment, net 671 692  
Total Assets 695 705  
Accounts payable 15 3  
Asset retirement obligations 20 19  
Total liabilities $ 35 $ 22  
v3.22.0.1
Exit Activities and Discontinued Operations - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended 27 Months Ended
Oct. 01, 2021
Oct. 31, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2021
Discontinued Operations, Held-for-sale | EnerBank            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Proceeds from divestiture of businesses $ 1,000          
Gain from divestiture of business   $ 657 $ 657 $ 0 $ 0  
Post-closing purchase price adjustment     36     $ 36
Retention Benefits | D.E. Karn Generating Complex            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Expected cost     35     35
Retention and severance costs     0 13   16
Costs incurred and capitalized     1 $ 2    
Retention Benefits | D.E. Karn Generating Complex | Retention Incentive Program            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Regulatory asset     $ 7     7
Retention Benefits | D.E. Karn Generating Complex | Property, Plant and Equipment            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Costs incurred and capitalized           $ 4
v3.22.0.1
Exit Activities and Discontinued Operations - Schedule of Retention Benefit Liability Roll Forward (Details) - USD ($)
$ in Millions
 12 Months Ended 27 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Restructuring Reserve [Roll Forward]      
Other current liabilities $ 156 $ 133 $ 156
Retention Benefits | D.E. Karn Generating Complex      
Restructuring Reserve [Roll Forward]      
Retention benefit liability at beginning of period 11 4  
Costs incurred and charged to maintenance and other operating expenses 0 13 16
Costs deferred as a regulatory asset 7 0  
Costs incurred and capitalized 1 2  
Costs paid or settled (5) (8)  
Retention benefit liability at the end of the period 14 11 14
Other current liabilities $ 5 $ 3 $ 5
v3.22.0.1
Exit Activities and Discontinued Operations - Income from Discontinued Operations (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Oct. 31, 2021
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                        
Income tax expense                   $ 170 $ 18 $ 16
Income from discontinued operations, net of tax   $ 520 $ 30 $ 18 $ 34 $ 24 $ 12 $ 8 $ 14 602 58 49
Discontinued Operations, Held-for-sale | EnerBank                        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                        
Operating revenue                   209 262 221
Operating expenses                   60 130 97
Interest expense                   34 56 59
Income before income taxes                   115 76 65
Gain on sale $ 657                 657 0 0
Income from discontinued operations before income taxes                   772 76 65
Income tax expense                   170 18 16
Income from discontinued operations, net of tax                   $ 602 $ 58 $ 49
v3.22.0.1
Exit Activities and Discontinued Operations - Assets and Liabilities of Discontinued Operation (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Current    
Total current assets $ 19 $ 429
Non‑current    
Total non‑current assets 0 2,680
Current    
Total current liabilities 0 953
Non‑current    
Total non‑current liabilities 0 1,894
Discontinued Operations, Held-for-sale    
Current    
Cash and cash equivalents $ 0 136
Discontinued Operations, Held-for-sale | EnerBank    
Current    
Cash and cash equivalents   136
Accounts receivable and other current assets   18
Notes receivable, less allowance of $32   275
Total current assets   429
Non‑current    
Plant, property, and equipment, net   22
Notes receivable, less allowance of $91   2,612
Other non‑current assets   46
Total non‑current assets   2,680
Total assets   3,109
Current    
Current portion of long-term debt   915
Accounts payable and other current liabilities   38
Total current liabilities   953
Non‑current    
Long-term debt   1,890
Other non‑current liabilities   4
Total non‑current liabilities   1,894
Total liabilities   2,847
Notes receivable, allowance, current   32
Notes receivable, allowance, noncurrent   $ 91
v3.22.0.1
Quarterly Financial And Common Stock Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Quarterly Financial Data [Abstract]                      
Operating Revenue $ 2,033 $ 1,725 $ 1,558 $ 2,013 $ 1,727 $ 1,507 $ 1,382 $ 1,802 $ 7,329 $ 6,418 $ 6,624
Operating income 204 260 252 430 307 340 248 335 1,146 1,230 1,115
Income from continuing operations 114 153 153 308 138 198 129 229 728 694 633
Income From Discontinued Operations, Net of Tax 520 30 18 34 24 12 8 14 602 58 49
Net Income 634 183 171 342 162 210 137 243 1,330 752 682
Income (loss) attributable to noncontrolling interests (5) (6) (5) (7) 4 (8) 1 0 (23) (3) 2
Net Income Attributable to CMS Energy 639 189 176 349         1,353 755 680
Preferred Stock Dividends 2 3 0 0         5 0 0
Net Income Available to Common Stockholders $ 637 $ 186 $ 176 $ 349 $ 158 $ 218 $ 136 $ 243 $ 1,348 $ 755 $ 680
Income from continuing operations per average common share available to common stockholders - Basic (in dollars per share) $ 0.40 $ 0.54 $ 0.55 $ 1.09 $ 0.47 $ 0.72 $ 0.45 $ 0.81 $ 2.58 $ 2.45 $ 2.23
Income from discontinued operations per average common share available to common stockholders - Basic (in dollars per share) 1.80 0.10 0.06 0.12 0.08 0.04 0.03 0.05 2.08 0.20 0.17
Basic earnings per average common share (in dollars per share) 2.20 0.64 0.61 1.21 0.55 0.76 0.48 0.86 4.66 2.65 2.40
Income from continuing operations per average common share available to common stockholders - Diluted (in dollars per share) 0.40 0.54 0.55 1.09 0.47 0.72 0.45 0.80 2.58 2.44 2.22
Income from discontinued operations per average common share available to common stockholders - Diluted (in dollars per share) 1.80 0.10 0.06 0.12 0.08 0.04 0.03 0.05 2.08 0.20 0.17
Diluted earnings per average common share (in dollars per share) $ 2.20 $ 0.64 $ 0.61 $ 1.21 $ 0.55 $ 0.76 $ 0.48 $ 0.85 $ 4.66 $ 2.64 $ 2.39
v3.22.0.1
Schedule I - Condensed Financial Information of Registrant (Condensed Statements of Income) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Operating Expenses                      
Other operating expense                 $ (1,610) $ (1,280) $ (1,356)
Total operating expenses                 (6,183) (5,188) (5,509)
Operating Loss $ 204 $ 260 $ 252 $ 430 $ 307 $ 340 $ 248 $ 335 1,146 1,230 1,115
Other Income (Expense)                      
Non-operating retirement benefits, net                 165 118 91
Interest income                 3 4 7
Other income                 9 6 4
Other expense                 (18) (62) (13)
Total other income                 177 84 109
Interest Charges                      
Interest on long-term debt                 481 483 439
Intercompany interest expense and other                 10 12 16
Total interest charges                 500 505 460
Income Before Income Taxes                 823 809 764
Income tax expense (benefit)                 95 115 131
Income From Continuing Operations 114 153 153 308 138 198 129 229 728 694 633
Income From Discontinued Operations, Net of Tax 520 30 18 34 24 12 8 14 602 58 49
Net Income Attributable to CMS Energy 639 189 176 349         1,353 755 680
Preferred Stock Dividends 2 3 0 0         5 0 0
Net Income Available to Common Stockholders $ 637 $ 186 $ 176 $ 349 $ 158 $ 218 $ 136 $ 243 1,348 755 680
CMS Energy                      
Operating Expenses                      
Other operating expense                 (7) (6) (38)
Total operating expenses                 (7) (6) (38)
Operating Loss                 (7) (6) (38)
Other Income (Expense)                      
Equity earnings of subsidiaries                 1,482 909 826
Non-operating retirement benefits, net                 (1) (1) (1)
Interest income                 1 1 1
Other income                 1 1 1
Other expense                 0 (19) 0
Total other income                 1,483 891 827
Interest Charges                      
Interest on long-term debt                 183 178 156
Intercompany interest expense and other                 7 7 10
Total interest charges                 190 185 166
Income Before Income Taxes                 1,286 700 623
Income tax expense (benefit)                 (60) (55) (57)
Income From Continuing Operations                 1,346 755 680
Income From Discontinued Operations, Net of Tax                 7 0 0
Net Income Attributable to CMS Energy                 1,353 755 680
Preferred Stock Dividends                 5 0 0
Net Income Available to Common Stockholders                 $ 1,348 $ 755 $ 680
v3.22.0.1
Schedule 1 - Condensed Financial Information of Registrant (Condensed Statements of Income - Parenthetical) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Condensed Income Statements, Captions [Line Items]      
Tax effect of discontinued operations $ 170 $ 18 $ 16
CMS Energy      
Condensed Income Statements, Captions [Line Items]      
Tax effect of discontinued operations $ (5) $ 0 $ 0
v3.22.0.1
Schedule I - Condensed Financial Information of Registrant (Condensed Statements Of Cash Flows) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash Flows from Operating Activities      
Net cash provided by operating activities $ 1,819 $ 1,276 $ 1,790
Cash Flows from Investing Activities      
Net cash used in investing activities (1,233) (2,867) (2,816)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 335 3,179 2,151
Issuance of common stock, net of issuance costs 26 253 12
Issuance of preferred stock, net of issuance costs 224 0 0
Retirement of long-term debt (235) (2,010) (1,285)
Debt prepayment costs 0 (59) (8)
Payment of dividends on common and preferred stock (509) (467) (436)
Net cash provided by (used in) financing activities (295) 1,619 1,008
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 291 28 (18)
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 185 157 175
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 476 185 157
CMS Energy      
Cash Flows from Operating Activities      
Net cash provided by operating activities 1,549 507 697
Cash Flows from Investing Activities      
Investment in subsidiaries (581) (657) (683)
Increase in notes receivable – intercompany (83) (307) 0
Net cash used in investing activities (664) (964) (683)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 0 1,225 1,158
Issuance of common stock, net of issuance costs 26 253 12
Issuance of preferred stock, net of issuance costs 224 0 0
Retirement of long-term debt (200) (425) (738)
Debt prepayment costs 0 (16) 0
Payment of dividends on common and preferred stock (507) (465) (434)
Debt issuance costs and financing fees (10) (10) (18)
Change in notes payable – intercompany (28) (105) 6
Net cash provided by (used in) financing activities (495) 457 (14)
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 390 0 0
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 0 0 0
Cash and Cash Equivalents, Including Restricted Amounts, End of Period $ 390 $ 0 $ 0
v3.22.0.1
Schedule I - Condensed Financial Information of Registrant (Condensed Balance Sheets) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current Assets      
Cash and cash equivalents $ 452 $ 32  
Accounts receivable – intercompany and related parties 12 19  
Prepayments and other current assets 120 104  
Total current assets 2,627 2,404  
Other Non‑current Assets      
Other 1,414 823  
Total other non‑current assets 3,774 6,245  
Total Assets 28,753 29,666 $ 26,837
Current Liabilities      
Accounts and notes payable – intercompany 11 7  
Accrued interest, including intercompany 107 104  
Accrued taxes 515 454  
Other current liabilities 156 133  
Total current liabilities 2,204 3,074  
Non‑current Liabilities      
Long-term debt 12,046 11,744  
Postretirement benefits 142 152  
Other non‑current liabilities 375 394  
Total non‑current liabilities 19,361 20,515  
Equity      
Total common stockholders’ equity 6,407 5,496  
Preferred stock 224 0  
Total stockholders’ equity 6,631 5,496  
Total Liabilities and Equity 28,753 29,666  
CMS Energy      
Current Assets      
Cash and cash equivalents 390 0  
DB SERP note receivable – related party 463 358  
Accounts receivable – intercompany and related parties 5 3  
Accrued taxes 0 48  
Prepayments and other current assets 1 1  
Total current assets 859 410  
Other Non‑current Assets      
Deferred income taxes 147 91  
Investments in subsidiaries 9,870 9,372  
Other investments 6 5  
Other 8 5  
Total other non‑current assets 10,031 9,473  
Total Assets 10,890 9,883  
Current Liabilities      
Current portion of long-term debt 0 200  
Accounts and notes payable – intercompany 61 69  
Accrued interest, including intercompany 33 33  
Accrued taxes 83 0  
Other current liabilities 8 9  
Total current liabilities 185 311  
Non‑current Liabilities      
Long-term debt 3,928 3,926  
Notes payable – intercompany 112 116  
Postretirement benefits 19 21  
Other non‑current liabilities 15 13  
Total non‑current liabilities 4,074 4,076  
Equity      
Total common stockholders’ equity 6,407 5,496  
Preferred stock 224 0  
Total stockholders’ equity 6,631 5,496  
Total Liabilities and Equity $ 10,890 $ 9,883  
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Schedule I - Condensed Financial Information of Registrant (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Condensed Financial Statements, Captions [Line Items]      
Issuance of preferred stock, net of issuance costs $ 224 $ 0 $ 0
Series C Preferred Stock Depositary Shares      
Condensed Financial Statements, Captions [Line Items]      
Number of shares outstanding (in shares) 9,200,000    
Trading symbol CMS PRC    
Issue price (in dollars per share) $ 25.00    
Issuance of preferred stock, net of issuance costs $ 224    
Dividend rate 4.20%    
Optional redemption price (in dollars per share) $ 25.00    
Series C Preferred Stock      
Condensed Financial Statements, Captions [Line Items]      
Optional redemption price (in dollars per share) $ 25,000    
CMS Energy      
Condensed Financial Statements, Captions [Line Items]      
Maximum potential obligation $ 633    
Issuance of preferred stock, net of issuance costs $ 224 $ 0 $ 0
CMS Energy Note Payable      
Condensed Financial Statements, Captions [Line Items]      
Interest rate 4.10%    
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Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Allowance for uncollectible accounts      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 29 $ 20 $ 20
Charged to Expense 22 33 29
Charged to Other Accounts 0 0 0
Deductions 31 24 29
Balance at End of Period 20 29 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 29 20 20
Charged to Expense 22 33 29
Charged to Other Accounts 0 0 0
Deductions 31 24 29
Balance at End of Period 20 29 20
Deferred tax valuation allowance      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 1 2 8
Charged to Expense 1 0 0
Charged to Other Accounts 0 0 0
Deductions 0 1 6
Balance at End of Period $ 2 $ 1 $ 2