CMS ENERGY CORP, 10-K filed on 2/10/2026
Annual Report
v3.25.4
Cover Page - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Jan. 16, 2026
Jun. 30, 2025
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 1-9513    
Entity Registrant Name CMS ENERGY CORPORATION    
Entity Tax Identification Number 38-2726431    
Entity Incorporation, State or Country Code MI    
Entity Address, Address Line One One Energy Plaza    
Entity Address, City or Town Jackson    
Entity Address, State or Province MI    
Entity Address, Postal Zip Code 49201    
City Area Code 517    
Local Phone Number 788-0550    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filer No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 20,644
Entity Common Stock, Shares Outstanding   306,420,901  
Documents Incorporated by Reference CMS Energy’s and Consumers’ proxy statement relating to their 2026 Annual Meetings of Shareholders to be held May 8, 2026.    
Entity Central Index Key 0000811156    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Amendment Flag false    
Consumers Energy Company      
Document Information [Line Items]      
Entity File Number 1-5611    
Entity Registrant Name CONSUMERS ENERGY COMPANY    
Entity Tax Identification Number 38-0442310    
Entity Incorporation, State or Country Code MI    
Entity Address, Address Line One One Energy Plaza    
Entity Address, City or Town Jackson    
Entity Address, State or Province MI    
Entity Address, Postal Zip Code 49201    
City Area Code 517    
Local Phone Number 788-0550    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filer No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Non-accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Common Stock, Shares Outstanding   84,108,789  
Entity Central Index Key 0000201533    
CMS Energy Corporation Common Stock, $0.01 par value      
Document Information [Line Items]      
Title of 12(b) Security CMS Energy Corporation Common Stock    
Trading Symbol CMS    
Security Exchange Name NYSE    
5.625% Junior Subordinated Notes Due 2078      
Document Information [Line Items]      
Title of 12(b) Security CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078    
Trading Symbol CMSA    
Security Exchange Name NYSE    
5.875% Junior Subordinated Notes Due 2078      
Document Information [Line Items]      
Title of 12(b) Security CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078    
Trading Symbol CMSC    
Security Exchange Name NYSE    
5.875% Junior Subordinated Notes Due 2079      
Document Information [Line Items]      
Title of 12(b) Security CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079    
Trading Symbol CMSD    
Security Exchange Name NYSE    
CMS Energy Corporation Depositary Shares, each representing a 1/1,000th interest in a share of 4.200% Cumulative Redeemable Perpetual Preferred Stock, Series C      
Document Information [Line Items]      
Title of 12(b) Security CMS Energy Corporation Depositary Shares    
Trading Symbol CMS PRC    
Security Exchange Name NYSE    
Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series      
Document Information [Line Items]      
Title of 12(b) Security Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series    
Trading Symbol CMS-PB    
Security Exchange Name NYSE    
v3.25.4
Audit Information
12 Months Ended
Dec. 31, 2025
Document Information [Line Items]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Detroit, Michigan
Consumers Energy Company  
Document Information [Line Items]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Detroit, Michigan
v3.25.4
CMS Energy Corporation Consolidated Statements of Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating Revenue $ 8,539 $ 7,515 $ 7,462
Operating Expenses      
Fuel for electric generation 657 624 561
Purchased power – related parties 94 71 75
Maintenance and other operating expenses 1,727 1,638 1,687
Depreciation and amortization 1,306 1,240 1,180
General taxes 513 482 447
Total operating expenses 6,812 6,028 6,227
Operating Income 1,727 1,487 1,235
Other Income (Expense)      
Non-operating retirement benefits, net 186 169 180
Other income 151 207 195
Other expense (27) (32) (13)
Total other income 310 344 362
Interest Charges      
Interest on long-term debt 798 700 616
Allowance for borrowed funds used during construction (11) (18) (3)
Total interest charges 789 708 643
Income (Loss) Before Income Taxes 1,248 1,123 954
Income Tax Expense 246 176 147
Income (Loss) From Continuing Operations 1,002 947 807
Income From Discontinued Operations, Net of Tax of $— for all periods 0 0 1
Net Income 1,002 947 808
Loss Attributable to Noncontrolling Interests (69) (56) (79)
Net Income 1,071 1,003 887
Preferred Stock Dividends 10 10 10
Net Income (Loss) Available to Common Stockholders $ 1,061 $ 993 $ 877
Basic Earnings Per Average Common Share (in dollars per share) $ 3.53 $ 3.34 $ 3.01
Diluted Earnings Per Average Common Share (in dollars per share) $ 3.53 $ 3.33 $ 3.01
Related Party      
Interest Charges      
Other interest expense $ 11 $ 12 $ 12
Nonrelated Party      
Interest Charges      
Other interest expense   14 18
Other interest expense (9)    
Purchased and interchange power      
Operating Expenses      
Cost of goods and services sold 1,706 1,333 1,375
Cost of gas sold      
Operating Expenses      
Cost of goods and services sold $ 809 $ 640 $ 902
v3.25.4
CMS Energy Corporation Consolidated Statements of Income (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Tax effect of discontinued operations $ 0 $ 0 $ 0
v3.25.4
CMS Energy Corporation Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net Income $ 1,002 $ 947 $ 808
Retirement Benefits Liability      
Net gain arising during the period 4 2 5
Prior service credit adjustment 0 1 0
Amortization of net actuarial loss 2 2 2
Amortization of prior service credit (1) 0 (1)
Other Comprehensive Income 5 5 6
Comprehensive Income 1,007 952 814
Comprehensive Loss Attributable to Noncontrolling Interests (69) (56) (79)
Comprehensive Income $ 1,076 $ 1,008 $ 893
v3.25.4
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net gain (loss) arising during the period, tax $ 2 $ 1 $ 2
Prior service credit adjustment, tax 0 0 0
Amortization of net actuarial loss, tax 0 0 0
Amortization of prior service credit, tax $ 0 $ 0 $ 0
v3.25.4
CMS Energy Corporation Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash Flows from Operating Activities      
Net Income $ 1,002 $ 947 $ 808
Adjustments to reconcile net income to net cash provided by operating activities      
Depreciation and amortization 1,306 1,240 1,180
Deferred income taxes and investment tax credits 202 142 157
Bad debt expense 40 33 34
Postretirement benefits contributions (16) (13) (12)
Other non‑cash operating activities and reconciling adjustments (238) (241) (274)
Changes in assets and liabilities      
Accounts receivable and accrued revenue (251) (155) 241
Inventories (28) 164 185
Accounts payable and accrued rate refunds 196 15 (136)
Other current assets and liabilities 78 42 (21)
Other non‑current assets and liabilities (56) 196 147
Net cash provided by operating activities 2,235 2,370 2,309
Cash Flows from Investing Activities      
Proceeds from sale of ASP business 0 124 0
Cost to retire property and other investing activities (214) (160) (167)
Net cash used in investing activities (4,038) (3,054) (3,386)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 3,609 1,962 3,551
Retirement of debt (1,150) (952) (2,132)
Increase (decrease) in notes payable (65) (28) 73
Issuance of common stock 525 286 192
Payment of dividends on common and preferred stock (663) (626) (579)
Contributions from noncontrolling interests 4 5 6
Distributions to noncontrolling interests (14) (12) (12)
Other financing costs (65) (21) (42)
Net cash provided by financing activities 2,240 614 1,143
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 437 (70) 66
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 178 248 182
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 615 178 248
Cash transactions      
Interest paid (net of amounts capitalized) 741 677 607
Income taxes paid (proceeds from sale of renewable energy tax credits), net (20) (69) 15
Non‑cash transactions      
Capital expenditures not paid 662 517 265
Deemed contribution from sale of membership interest 35 0 0
Class B Membership      
Cash Flows from Financing Activities      
Proceeds from the sale of membership interests in VIEs 44 0 0
Class A - Tax Equity Membership      
Cash Flows from Financing Activities      
Proceeds from the sale of membership interests in VIEs 15 0 86
Capital Expenditures      
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) (3,824) (3,018) (2,407)
Covert Plant Acquisition      
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) $ 0 $ 0 $ (812)
v3.25.4
CMS Energy Corporation Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Current Assets    
Cash and cash equivalents $ 509 $ 103
Restricted cash and cash equivalents 106 75
Inventories at average cost    
Gas in underground storage 427 435
Materials and supplies 329 299
Generating plant fuel stock 35 35
Deferred property taxes 479 448
Regulatory assets 104 229
Prepayments and other current assets 160 103
Total current assets 3,472 2,790
Plant, Property, and Equipment    
Plant, property, and equipment, gross 37,763 34,932
Less accumulated depreciation and amortization 10,135 9,569
Plant, property, and equipment, net 27,628 25,363
Construction work in progress 3,052 2,098
Total plant, property, and equipment 30,680 27,461
Other Non‑current Assets    
Regulatory assets 3,355 3,569
Accounts receivable 18 20
Investments 61 69
Postretirement benefits 1,957 1,627
Other 398 384
Total other non‑current assets 5,789 5,669
Total Assets 39,941 35,920
Current Liabilities    
Current portion of long-term debt and finance leases 956 1,195
Notes payable 0 65
Accrued rate refunds 28 38
Accrued interest 182 156
Accrued taxes 708 654
Regulatory liabilities 85 111
Other current liabilities 185 209
Total current liabilities 3,548 3,521
Non‑current Liabilities    
Long-term debt 17,807 15,194
Non-current portion of finance leases 135 112
Regulatory liabilities 4,091 4,067
Postretirement benefits 95 96
AROs 792 728
Deferred investment tax credit 118 122
Deferred income taxes 3,252 2,925
Other non‑current liabilities 392 407
Total non‑current liabilities 26,682 23,651
Commitments and Contingencies
Common stockholders’ equity    
Common stock 3 3
Other paid-in capital 6,510 6,009
Accumulated other comprehensive loss (36) (41)
Retained earnings 2,443 2,035
Total common stockholders’ equity 8,920 8,006
Cumulative redeemable perpetual preferred stock 224 224
Total stockholders’ equity 9,144 8,230
Noncontrolling interests 567 518
Total equity 9,711 8,748
Total Liabilities and Equity 39,941 35,920
Nonrelated Party    
Current Assets    
Accounts receivable and accrued revenue, less allowance of $27 in 2025 and $23 in 2024 1,306 1,049
Current Liabilities    
Accounts payable 1,395 1,085
Related Party    
Current Assets    
Accounts receivable – related parties 17 14
Current Liabilities    
Accounts payable $ 9 $ 8
v3.25.4
CMS Energy Corporation Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Accounts receivable and accrued revenue, allowance $ 27 $ 23
Common Stock Shares Issued Not Disclosed true true
Common stock authorized (in shares) 350,000,000.0 350,000,000.0
Common stock outstanding (in shares) 306,400,000 298,800,000
Preferred stock authorized (in shares) 10,000,000  
Series C Preferred Stock Depositary Shares    
Preferred stock authorized (in shares) 9,200,000 9,200,000
Preferred stock outstanding (in shares) 9,200,000 9,200,000
v3.25.4
CMS Energy Corporation Consolidated Statements of Changes in Equity - USD ($)
shares in Thousands, $ in Millions
Total
Common Stock
Other Paid-in Capital
Retirement benefits liability
Retained Earnings
Cumulative Redeemable Perpetual Preferred Stock, Series C
Noncontrolling Interests
Noncontrolling Interests
Class B Membership
Noncontrolling Interests
Class A - Tax Equity Membership
Beginning of period (in shares) at Dec. 31, 2022   291,268              
Total Equity at Beginning of Period at Dec. 31, 2022 $ 7,595 $ 3 $ 5,490 $ (52) $ 1,350 $ 224 $ 580    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Common stock issued (in shares)   3,355              
Common stock issued     222            
Common stock repurchased (in shares)   (119)              
Common stock repurchased     (7)            
Common stock reacquired (in shares)   (64)              
Common stock reacquired     0            
Sale of membership interests in VIEs     0         $ 0 $ 86
Net gain arising during the period 5     5          
Prior service credit adjustment 0     0          
Amortization of net actuarial loss 2     2          
Amortization of prior service credit (1)     (1)          
Net income (loss) 808       887   (79)    
Dividends declared on common stock         (569)        
Dividends declared on preferred stock         (10)        
Contributions from noncontrolling interests             6    
Distributions to noncontrolling interests             (12)    
End of period (in shares) at Dec. 31, 2023   294,440              
Total Equity at End of Period at Dec. 31, 2023 $ 8,125 $ 3 5,705 (46) 1,658 224 581    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Dividends declared per common share (in dollars per share) $ 1.950                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 1.050                
Common stock issued (in shares)   4,673              
Common stock issued     315            
Common stock repurchased (in shares)   (181)              
Common stock repurchased     (11)            
Common stock reacquired (in shares)   (142)              
Common stock reacquired     0            
Sale of membership interests in VIEs     0         0 0
Net gain arising during the period $ 2     2          
Prior service credit adjustment 1     1          
Amortization of net actuarial loss 2     2          
Amortization of prior service credit 0     0          
Net income (loss) $ 947       1,003   (56)    
Dividends declared on common stock         (616)        
Dividends declared on preferred stock         (10)        
Contributions from noncontrolling interests             5    
Distributions to noncontrolling interests             (12)    
End of period (in shares) at Dec. 31, 2024 298,800 298,790              
Total Equity at End of Period at Dec. 31, 2024 $ 8,748 $ 3 6,009 (41) 2,035 224 518    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Dividends declared per common share (in dollars per share) $ 2.060                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 1.050                
Common stock issued (in shares)   7,839              
Common stock issued     548            
Common stock repurchased (in shares)   (181)              
Common stock repurchased     (13)            
Common stock reacquired (in shares)   (39)              
Common stock reacquired     0            
Sale of membership interests in VIEs     (34)         $ 78 $ 50
Net gain arising during the period $ 4     4          
Prior service credit adjustment 0     0          
Amortization of net actuarial loss 2     2          
Amortization of prior service credit (1)     (1)          
Net income (loss) $ 1,002       1,071   (69)    
Dividends declared on common stock         (653)        
Dividends declared on preferred stock         (10)        
Contributions from noncontrolling interests             4    
Distributions to noncontrolling interests             (14)    
End of period (in shares) at Dec. 31, 2025 306,400 306,409              
Total Equity at End of Period at Dec. 31, 2025 $ 9,711 $ 3 $ 6,510 $ (36) $ 2,443 $ 224 $ 567    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Dividends declared per common share (in dollars per share) $ 2.170                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 1.050                
v3.25.4
Consumers Energy Company Consolidated Statements of Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating Revenue $ 8,539 $ 7,515 $ 7,462
Operating Expenses      
Operating Income 1,727 1,487 1,235
Other Income (Expense)      
Non-operating retirement benefits, net 186 169 180
Other income 151 207 195
Other expense (27) (32) (13)
Total other income 310 344 362
Interest Charges      
Interest on long-term debt 798 700 616
Allowance for borrowed funds used during construction (11) (18) (3)
Total interest charges 789 708 643
Income (Loss) Before Income Taxes 1,248 1,123 954
Income Tax Expense 246 176 147
Net Income 1,071 1,003 887
Preferred Stock Dividends 10 10 10
Net Income (Loss) Available to Common Stockholders 1,061 993 877
Related Party      
Interest Charges      
Other interest expense 11 12 12
Nonrelated Party      
Interest Charges      
Other interest expense   14 18
Consumers Energy Company      
Operating Revenue 8,132 7,200 7,166
Operating Expenses      
Fuel for electric generation 535 511 435
Purchased and interchange power 1,564 1,285 1,331
Purchased power – related parties 94 71 75
Cost of gas sold 803 637 897
Maintenance and other operating expenses 1,614 1,520 1,586
Depreciation and amortization 1,254 1,191 1,137
General taxes 499 470 437
Total operating expenses 6,363 5,685 5,898
Operating Income 1,769 1,515 1,268
Other Income (Expense)      
Non-operating retirement benefits, net 175 157 171
Other income 55 85 49
Other expense (22) (30) (12)
Total other income 208 212 208
Interest Charges      
Interest on long-term debt 521 488 415
Allowance for borrowed funds used during construction (10) (13) (3)
Total interest charges 560 518 448
Income (Loss) Before Income Taxes 1,417 1,209 1,028
Income Tax Expense 288 200 161
Net Income 1,129 1,009 867
Preferred Stock Dividends 2 2 2
Net Income (Loss) Available to Common Stockholders 1,127 1,007 865
Consumers Energy Company | Related Party      
Interest Charges      
Other interest expense 41 31 20
Consumers Energy Company | Nonrelated Party      
Interest Charges      
Other interest expense $ 8 $ 12 $ 16
v3.25.4
Consumers Energy Company Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Net Income $ 1,071 $ 1,003 $ 887
Retirement Benefits Liability      
Net gain arising during the period 4 2 5
Amortization of net actuarial loss 2 2 2
Other Comprehensive Income 5 5 6
Comprehensive Income 1,076 1,008 893
Consumers Energy Company      
Net Income 1,129 1,009 867
Retirement Benefits Liability      
Net gain arising during the period (2) 3 (1)
Amortization of net actuarial loss 0 1 1
Other Comprehensive Income (2) 4 0
Comprehensive Income $ 1,127 $ 1,013 $ 867
v3.25.4
Consumers Energy Company Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Net gain (loss) arising during the period, tax $ 2 $ 1 $ 2
Amortization of net actuarial loss, tax 0 0 0
Consumers Energy Company      
Net gain (loss) arising during the period, tax (1) 1 0
Amortization of net actuarial loss, tax $ 0 $ 0 $ 0
v3.25.4
Consumers Energy Company Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash Flows from Operating Activities      
Net income (loss) $ 1,002 $ 947 $ 808
Adjustments to reconcile net income to net cash provided by operating activities      
Deferred income taxes and investment tax credits 202 142 157
Bad debt expense 40 33 34
Postretirement benefits contributions (16) (13) (12)
Other non‑cash operating activities and reconciling adjustments (238) (241) (274)
Changes in assets and liabilities      
Accounts receivable and accrued revenue (251) (155) 241
Inventories (28) 164 185
Accounts payable and accrued rate refunds 196 15 (136)
Other current assets and liabilities 78 42 (21)
Other non‑current assets and liabilities (56) 196 147
Net cash provided by operating activities 2,235 2,370 2,309
Cash Flows from Investing Activities      
Proceeds from sale of ASP business 0 124 0
Cost to retire property and other investing activities (214) (160) (167)
Net cash used in investing activities (4,038) (3,054) (3,386)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 3,609 1,962 3,551
Retirement of debt (1,150) (952) (2,132)
Increase (decrease) in notes payable (65) (28) 73
Other financing costs (65) (21) (42)
Net cash provided by financing activities 2,240 614 1,143
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 437 (70) 66
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 178 248 182
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 615 178 248
Cash transactions      
Interest paid (net of amounts capitalized) 741 677 607
Income taxes paid (proceeds from sale of renewable energy tax credits), net (20) (69) 15
Non‑cash transactions      
Capital expenditures not paid 662 517 265
Capital Expenditures      
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) (3,824) (3,018) (2,407)
Covert Plant Acquisition      
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) 0 0 (812)
Consumers Energy Company      
Cash Flows from Operating Activities      
Net income (loss) 1,129 1,009 867
Adjustments to reconcile net income to net cash provided by operating activities      
Depreciation and amortization 1,254 1,191 1,137
Deferred income taxes and investment tax credits 48 115 156
Bad debt expense 40 33 34
Postretirement benefits contributions (10) (9) (9)
Other non‑cash operating activities and reconciling adjustments (165) (137) (123)
Changes in assets and liabilities      
Accounts receivable and accrued revenue (235) (153) 219
Inventories (24) 164 186
Accounts payable and accrued rate refunds 187 19 (127)
Other current assets and liabilities 104 75 (35)
Other non‑current assets and liabilities (90) 139 125
Net cash provided by operating activities 2,238 2,446 2,430
Cash Flows from Investing Activities      
Cost to retire property and other investing activities (221) (154) (141)
Net cash used in investing activities (3,535) (2,872) (3,201)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 1,123 1,297 2,666
Retirement of debt (115) (389) (1,654)
Stockholder contribution 920 735 475
Return of stockholder contribution 0 (320) 0
Payment of dividends on common and preferred stock (900) (797) (697)
Other financing costs (14) (9) (21)
Net cash provided by financing activities 1,289 489 767
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts (8) 63 (4)
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 119 56 60
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 111 119 56
Cash transactions      
Interest paid (net of amounts capitalized) 526 484 417
Income taxes paid (proceeds from sale of renewable energy tax credits), net 161 (19) 31
Non‑cash transactions      
Capital expenditures not paid 533 395 264
Consumers Energy Company | Nonrelated Party      
Cash Flows from Financing Activities      
Increase (decrease) in notes payable (65) (28) 73
Consumers Energy Company | Related Party      
Cash Flows from Financing Activities      
Increase (decrease) in notes payable 340 0 (75)
Consumers Energy Company | ASP gain      
Cash Flows from Investing Activities      
Proceeds from sale of ASP business 0 124 0
Consumers Energy Company | Capital Expenditures      
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) (3,314) (2,842) (2,248)
Consumers Energy Company | Covert Plant Acquisition      
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) $ 0 $ 0 $ (812)
v3.25.4
Consumers Energy Company Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Current Assets    
Cash and cash equivalents $ 509 $ 103
Restricted cash and cash equivalents 106 75
Inventories at average cost    
Gas in underground storage 427 435
Materials and supplies 329 299
Generating plant fuel stock 35 35
Deferred property taxes 479 448
Regulatory assets 104 229
Prepayments and other current assets 160 103
Total current assets 3,472 2,790
Other Non‑current Assets    
Regulatory assets 3,355 3,569
Accounts and notes receivable – related parties 18 20
Postretirement benefits 1,957 1,627
Other 398 384
Total other non‑current assets 5,789 5,669
Total Assets 39,941 35,920
Current Liabilities    
Current portion of long-term debt and finance leases 956 1,195
Notes payable 0 65
Accrued rate refunds 28 38
Accrued interest 182 156
Accrued taxes 708 654
Regulatory liabilities 85 111
Other current liabilities 185 209
Total current liabilities 3,548 3,521
Non‑current Liabilities    
Long-term debt 17,807 15,194
Non-current portion of finance leases 135 112
Regulatory liabilities 4,091 4,067
Postretirement benefits 95 96
AROs 792 728
Deferred investment tax credit 118 122
Deferred income taxes 3,252 2,925
Other non‑current liabilities 392 407
Total non‑current liabilities 26,682 23,651
Commitments and Contingencies
Common stockholders’ equity    
Common stock 3 3
Other paid-in capital 6,510 6,009
Accumulated other comprehensive loss (36) (41)
Retained earnings 2,443 2,035
Total common stockholders’ equity 8,920 8,006
Cumulative preferred stock 224 224
Total stockholders’ equity 9,144 8,230
Total Liabilities and Equity 39,941 35,920
Nonrelated Party    
Current Assets    
Accounts receivable and accrued revenue, less allowance of $27 in 2025 and $23 in 2024 1,306 1,049
Current Liabilities    
Accounts payable 1,395 1,085
Related Party    
Current Liabilities    
Accounts payable 9 8
Consumers Energy Company    
Current Assets    
Cash and cash equivalents 25 44
Restricted cash and cash equivalents 86 75
Inventories at average cost    
Gas in underground storage 427 435
Materials and supplies 316 291
Generating plant fuel stock 31 30
Deferred property taxes 479 448
Regulatory assets 104 229
Prepayments and other current assets 132 86
Total current assets 2,825 2,674
Plant, Property, and Equipment    
Plant, property, and equipment, gross 36,120 33,434
Less accumulated depreciation and amortization 9,842 9,310
Plant, property, and equipment, net 26,278 24,124
Construction work in progress 2,354 1,766
Total plant, property, and equipment 28,632 25,890
Other Non‑current Assets    
Regulatory assets 3,355 3,569
Postretirement benefits 1,821 1,514
Other 346 323
Total other non‑current assets 5,634 5,524
Total Assets 37,091 34,088
Current Liabilities    
Current portion of long-term debt and finance leases 579 456
Accrued rate refunds 28 38
Accrued interest 149 130
Accrued taxes 747 678
Regulatory liabilities 85 111
Other current liabilities 163 185
Total current liabilities 3,334 2,592
Non‑current Liabilities    
Non-current portion of finance leases 81 69
Regulatory liabilities 4,091 4,067
Postretirement benefits 70 70
AROs 753 694
Deferred investment tax credit 118 122
Deferred income taxes 3,201 3,053
Other non‑current liabilities 336 349
Total non‑current liabilities 21,179 20,065
Commitments and Contingencies
Common stockholders’ equity    
Common stock 841 841
Other paid-in capital 9,094 8,174
Accumulated other comprehensive loss (13) (11)
Retained earnings 2,619 2,390
Total common stockholders’ equity 12,541 11,394
Cumulative preferred stock 37 37
Total stockholders’ equity 12,578 11,431
Total Liabilities and Equity 37,091 34,088
Consumers Energy Company | Nonrelated Party    
Current Assets    
Accounts receivable and accrued revenue, less allowance of $27 in 2025 and $23 in 2024 1,210 1,019
Other Non‑current Assets    
Accounts receivable 24 26
Current Liabilities    
Notes payable 0 65
Accounts payable 1,229 917
Non‑current Liabilities    
Long-term debt 11,524 10,818
Consumers Energy Company | Related Party    
Current Assets    
Accounts and notes receivable – related parties 15 17
Other Non‑current Assets    
Accounts and notes receivable – related parties 88 92
Current Liabilities    
Notes payable 340 0
Accounts payable 14 12
Non‑current Liabilities    
Long-term debt $ 1,005 $ 823
v3.25.4
Consumers Energy Company Consolidated Balance Sheets (Parenthetical) - USD ($)
shares in Millions, $ in Millions
Dec. 31, 2025
Dec. 31, 2024
Accounts receivable and accrued revenue, allowance $ 27 $ 23
Common stock authorized (in shares) 350.0 350.0
Common stock outstanding (in shares) 306.4 298.8
Preferred stock, par value (in dollars per share) $ 0.01  
Preferred stock authorized (in shares) 10.0  
Consumers Energy Company    
Accounts receivable and accrued revenue, allowance $ 27 $ 23
Common stock authorized (in shares) 125.0 125.0
Common stock outstanding (in shares) 84.1 84.1
Preferred stock, par value (in dollars per share) $ 4.50 $ 4.50
Preferred stock authorized (in shares) 7.5 7.5
Preferred stock outstanding (in shares) 0.4 0.4
v3.25.4
Consumers Energy Company Consolidated Statements of Changes in Equity - USD ($)
$ in Millions
Total
Common Stock
Other Paid-in Capital
Retirement benefits liability
Retained Earnings
Cumulative Preferred Stock
Consumers Energy Company
Consumers Energy Company
Common Stock
Consumers Energy Company
Other Paid-in Capital
Consumers Energy Company
Retirement benefits liability
Consumers Energy Company
Retained Earnings
Consumers Energy Company
Cumulative Preferred Stock
Total Equity at Beginning of Period at Dec. 31, 2022 $ 7,595 $ 3 $ 5,490 $ (52) $ 1,350 $ 224 $ 10,155 $ 841 $ 7,284 $ (15) $ 2,008 $ 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Stockholder contribution                 475      
Return of stockholder contribution                 0      
Net gain arising during the period 5     5     (1)     (1)    
Amortization of net actuarial loss 2     2     1     1    
Net Income 887           867       867  
Dividends declared on common stock         (569)           (695)  
Dividends declared on preferred stock         (10)           (2)  
Total Equity at End of Period at Dec. 31, 2023 8,125 3 5,705 (46) 1,658 224 10,800 841 7,759 (15) 2,178 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Stockholder contribution                 735      
Return of stockholder contribution                 (320)      
Net gain arising during the period 2     2     3     3    
Amortization of net actuarial loss 2     2     1     1    
Net Income 1,003           1,009       1,009  
Dividends declared on common stock         (616)           (795)  
Dividends declared on preferred stock         (10)           (2)  
Total Equity at End of Period at Dec. 31, 2024 8,748 3 6,009 (41) 2,035 224 11,431 841 8,174 (11) 2,390 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Stockholder contribution                 920      
Return of stockholder contribution                 0      
Net gain arising during the period 4     4     (2)     (2)    
Amortization of net actuarial loss 2     2     0     0    
Net Income 1,071           1,129       1,129  
Dividends declared on common stock         (653)           (898)  
Dividends declared on preferred stock         (10)           (2)  
Total Equity at End of Period at Dec. 31, 2025 $ 9,711 $ 3 $ 6,510 $ (36) $ 2,443 $ 224 $ 12,578 $ 841 $ 9,094 $ (13) $ 2,619 $ 37
v3.25.4
Significant Accounting Policies
12 Months Ended
Dec. 31, 2025
Significant Accounting Policies [Line Items]  
Significant Accounting Policies Significant Accounting Policies
Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, NorthStar Clean Energy, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances.
Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates.
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Contingencies: CMS Energy and Consumers record estimated loss contingencies on their consolidated financial statements when it is probable that a loss has been incurred and when the amount of loss can be reasonably estimated. For environmental remediation projects in which the timing of estimated expenditures is considered reliably determinable, CMS Energy and Consumers record the liability at its net present value, using a discount rate equal to the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability. Unless regulatory accounting applies, CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed.
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: Upon the issuance of long-term debt, CMS Energy and Consumers defer issuance costs, discounts, and premiums and amortize those amounts over the terms of the associated debt. Debt issuance costs are presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Upon the refinancing of long-term debt, Consumers, as a regulated entity, defers any remaining unamortized issuance costs, discounts, and premiums associated with the refinanced debt and amortizes those amounts over the term of the newly issued debt. For the non‑regulated portions of CMS Energy’s business, any remaining unamortized issuance costs, discounts, and premiums associated with extinguished debt are charged to earnings.
Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers may enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the
commodity at a contracted price. Most of these contracts are not subject to derivative accounting for one or more of the following reasons:
they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or Bcf of natural gas)
they qualify for the normal purchases and sales exception
they cannot be net settled due in part to the absence of an active market for the commodity
Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives and changes in the fair value of FTRs are deferred as regulatory assets or liabilities. For details regarding CMS Energy’s and Consumers’ derivative instruments recorded at fair value, see Note 6, Fair Value Measurements.
Electricity Market Transactions: Wholesale electricity market operators require the submission of hourly day-ahead and real-time bids and offers for energy at locations across each region. CMS Energy and Consumers account for such transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all locations in the energy market. 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.
EPS: CMS Energy calculates basic and diluted EPS using the weighted-average number of shares of common stock and dilutive potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted EPS, includes the effects of nonvested stock awards, forward equity sales, and convertible securities. CMS Energy computes the effect on potential common stock using the treasury stock method. Potentially dilutive common shares issuable upon conversion of the convertible senior notes are determined using the if-converted method for calculating diluted EPS. Diluted EPS excludes the impact of antidilutive securities, which are those securities resulting in an increase in EPS or a decrease in loss per share. For EPS computations, see Note 14, Earnings Per Share—CMS Energy.
Impairment of Long-lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur that indicate the carrying amount of an asset may not be recoverable or that there has been a decline in value that may be other than temporary.
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses.
CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary.
Investment Tax Credits: CMS Energy and its subsidiaries use the flow-through method of accounting for investment tax credits. Under the flow-through method, the credit is recognized as a reduction to income tax expense when the related plant, property, and equipment is placed into service. For its regulated utility assets, Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment.
Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets.
CMS Energy and Consumers account for RECs and other environmental credits as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and other environmental credits are used to satisfy compliance obligations related to the generation of power and in support of sustainability commitments. 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.
Property Taxes: Property taxes are based on the taxable value of CMS Energy’s and Consumers’ real and personal property assessed by local taxing authorities. CMS Energy and Consumers record property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of CMS Energy’s and Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
Other: For additional accounting policies, see:
Note 3, Regulatory Matters
Note 8, Plant, Property, and Equipment
Note 9, Leases
Note 10, Asset Retirement Obligations
Note 11, Retirement Benefits
Note 12, Stock-based Compensation
Note 13, Income Taxes
Note 14, Earnings Per Share—CMS Energy
Note 15, Revenue
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, NorthStar Clean Energy, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances.
Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates.
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Contingencies: CMS Energy and Consumers record estimated loss contingencies on their consolidated financial statements when it is probable that a loss has been incurred and when the amount of loss can be reasonably estimated. For environmental remediation projects in which the timing of estimated expenditures is considered reliably determinable, CMS Energy and Consumers record the liability at its net present value, using a discount rate equal to the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability. Unless regulatory accounting applies, CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed.
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: Upon the issuance of long-term debt, CMS Energy and Consumers defer issuance costs, discounts, and premiums and amortize those amounts over the terms of the associated debt. Debt issuance costs are presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Upon the refinancing of long-term debt, Consumers, as a regulated entity, defers any remaining unamortized issuance costs, discounts, and premiums associated with the refinanced debt and amortizes those amounts over the term of the newly issued debt. For the non‑regulated portions of CMS Energy’s business, any remaining unamortized issuance costs, discounts, and premiums associated with extinguished debt are charged to earnings.
Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers may enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the
commodity at a contracted price. Most of these contracts are not subject to derivative accounting for one or more of the following reasons:
they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or Bcf of natural gas)
they qualify for the normal purchases and sales exception
they cannot be net settled due in part to the absence of an active market for the commodity
Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives and changes in the fair value of FTRs are deferred as regulatory assets or liabilities. For details regarding CMS Energy’s and Consumers’ derivative instruments recorded at fair value, see Note 6, Fair Value Measurements.
Electricity Market Transactions: Wholesale electricity market operators require the submission of hourly day-ahead and real-time bids and offers for energy at locations across each region. CMS Energy and Consumers account for such transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all locations in the energy market. 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.
EPS: CMS Energy calculates basic and diluted EPS using the weighted-average number of shares of common stock and dilutive potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted EPS, includes the effects of nonvested stock awards, forward equity sales, and convertible securities. CMS Energy computes the effect on potential common stock using the treasury stock method. Potentially dilutive common shares issuable upon conversion of the convertible senior notes are determined using the if-converted method for calculating diluted EPS. Diluted EPS excludes the impact of antidilutive securities, which are those securities resulting in an increase in EPS or a decrease in loss per share. For EPS computations, see Note 14, Earnings Per Share—CMS Energy.
Impairment of Long-lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur that indicate the carrying amount of an asset may not be recoverable or that there has been a decline in value that may be other than temporary.
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses.
CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary.
Investment Tax Credits: CMS Energy and its subsidiaries use the flow-through method of accounting for investment tax credits. Under the flow-through method, the credit is recognized as a reduction to income tax expense when the related plant, property, and equipment is placed into service. For its regulated utility assets, Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment.
Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets.
CMS Energy and Consumers account for RECs and other environmental credits as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and other environmental credits are used to satisfy compliance obligations related to the generation of power and in support of sustainability commitments. 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.
Property Taxes: Property taxes are based on the taxable value of CMS Energy’s and Consumers’ real and personal property assessed by local taxing authorities. CMS Energy and Consumers record property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of CMS Energy’s and Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
Other: For additional accounting policies, see:
Note 3, Regulatory Matters
Note 8, Plant, Property, and Equipment
Note 9, Leases
Note 10, Asset Retirement Obligations
Note 11, Retirement Benefits
Note 12, Stock-based Compensation
Note 13, Income Taxes
Note 14, Earnings Per Share—CMS Energy
Note 15, Revenue
Note 19, Variable Interest Entities
v3.25.4
New Accounting Standards
12 Months Ended
Dec. 31, 2025
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
New Accounting Standards New Accounting Standards
Implementation of New Accounting Standards
ASU 2023‑09, Incomes Taxes (Topic 740): Improvements to Income Tax Disclosures: This standard, which was effective on January 1, 2025 for CMS Energy and Consumers, requires expanded annual disclosures of the income taxes, including a more detailed reconciliation of the effective tax rate and disaggregated information on federal and state income taxes. The standard also requires disclosure of significant reconciling items and qualitative information about state and local jurisdictions contributing to income tax expense. The adoption of the new standard did not impact CMS Energy’s or Consumers’ liquidity, financial condition, or results of operations. The expanded disclosures required by this standard are included in Note 13, Income Taxes.
New Accounting Standards Not Yet Effective
ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses: This standard requires public companies to provide disaggregated information about certain expense categories presented on the income statement. The guidance calls for annual and interim disclosures that separate specified components, such as employee compensation, depreciation, and amortization, within relevant expense line items in the notes to the financial statements. The standard is effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. CMS Energy and Consumers will adopt the guidance upon the effective date. The standard will not have an impact on CMS Energy’s or Consumers’ consolidated net income, cash flows, or financial position.
ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software: This standard updates guidance for capitalizing costs related to internal-use software development. The amendments remove references to the previous “project stage” model and clarify the threshold for when capitalization should begin, focusing on whether completion of the project is probable. The amendments are effective for annual and interim reporting periods beginning after December 15, 2027. The guidance may be applied on a prospective, retrospective, or modified transition basis. Early adoption is permitted. CMS Energy and Consumers are currently evaluating the new standard.
Consumers Energy Company  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
New Accounting Standards New Accounting Standards
Implementation of New Accounting Standards
ASU 2023‑09, Incomes Taxes (Topic 740): Improvements to Income Tax Disclosures: This standard, which was effective on January 1, 2025 for CMS Energy and Consumers, requires expanded annual disclosures of the income taxes, including a more detailed reconciliation of the effective tax rate and disaggregated information on federal and state income taxes. The standard also requires disclosure of significant reconciling items and qualitative information about state and local jurisdictions contributing to income tax expense. The adoption of the new standard did not impact CMS Energy’s or Consumers’ liquidity, financial condition, or results of operations. The expanded disclosures required by this standard are included in Note 13, Income Taxes.
New Accounting Standards Not Yet Effective
ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses: This standard requires public companies to provide disaggregated information about certain expense categories presented on the income statement. The guidance calls for annual and interim disclosures that separate specified components, such as employee compensation, depreciation, and amortization, within relevant expense line items in the notes to the financial statements. The standard is effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. CMS Energy and Consumers will adopt the guidance upon the effective date. The standard will not have an impact on CMS Energy’s or Consumers’ consolidated net income, cash flows, or financial position.
ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software: This standard updates guidance for capitalizing costs related to internal-use software development. The amendments remove references to the previous “project stage” model and clarify the threshold for when capitalization should begin, focusing on whether completion of the project is probable. The amendments are effective for annual and interim reporting periods beginning after December 15, 2027. The guidance may be applied on a prospective, retrospective, or modified transition basis. Early adoption is permitted. CMS Energy and Consumers are currently evaluating the new standard.
v3.25.4
Regulatory Matters
12 Months Ended
Dec. 31, 2025
Public Utilities, General Disclosures [Line Items]  
Regulatory Matters Regulatory Matters
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, residential customer advocacy groups, environmental organizations, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. Intervenors also participate in certain FERC matters, including FERC’s regulation of certain wholesale rates that affect Consumers’ power supply costs. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC and FERC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC and FERC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings.
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 3120252024
Regulatory assets
Current
Energy waste reduction plan incentive1
$66 $60 
Retention incentive program2
10 18 
2022 PSCR underrecovery3
— 126 
Other28 25 
Total current regulatory assets$104 $229 
Non-current
Costs of coal-fueled electric generating units to be retired3
$1,179 $1,266 
Postretirement benefits2
589 747 
Securitized costs3
549 666 
ARO4
379 366 
Decommissioning costs2
197 158 
Unamortized loss on reacquired debt3
89 92 
MGP sites3
82 90 
Energy waste reduction plan incentive1
64 64 
Ludington overhaul contract dispute2
60 31 
Service restoration cost deferral4
52 — 
Energy waste reduction plan3
26 31 
Postretirement benefits expense deferral mechanism2
22 21 
Renewable Energy Plan3
— 
Retention incentive program2
12 
Other54 25 
Total non-current regulatory assets$3,355 $3,569 
Total regulatory assets$3,459 $3,798 
Regulatory liabilities
Current
Income taxes, net$47 $53 
ASP gain28 47 
Other10 11 
Total current regulatory liabilities$85 $111 
Non-current
Cost of removal$2,727 $2,665 
Income taxes, net1,118 1,163 
Energy waste reduction plan68 41 
Green giving program41 — 
Postretirement benefits expense deferral mechanism40 37 
Renewable energy grant38 40 
ASP gain19 46 
Renewable Energy Plan— 51 
Other40 24 
Total non-current regulatory liabilities$4,091 $4,067 
Total regulatory liabilities$4,176 $4,178 
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.
2This regulatory asset is included in rate base, thereby providing a return.
3The MPSC has provided a specific return on these regulatory assets.
4These regulatory assets represent incurred costs for which the MPSC has provided 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 January 2026, the MPSC approved a settlement agreement authorizing Consumers to collect $64 million during 2026 as an incentive for exceeding its statutory savings targets in 2024. Consumers recognized incentive revenue under this program of $64 million in 2024.
Consumers also exceeded its statutory savings targets in 2025, achieved certain other goals, and will request the MPSC’s approval to collect $64 million in the energy waste reduction reconciliation to be filed in May 2026. Consumers recognized incentive revenue under this program of $64 million in 2025.
Retention Incentive Program: To ensure necessary staffing at the D.E. Karn and J.H. Campbell coal‑fueled generating units through their retirement, Consumers established retention incentive programs. The MPSC has approved deferred accounting treatment for the retention and severance costs incurred under these programs and has allowed for recovery over three years. These MPSC-approved retention plans concluded in November 2025. For additional details regarding retention incentive programs, see Note 20, Exit Activities and Asset Sales.
2022 PSCR Underrecovery: As a result of rising fuel prices during 2022, Consumers’ power supply costs for 2022 were significantly higher than those projected in its 2022 PSCR plan. At the end of 2022, Consumers had recorded $401 million of under-recovered power supply costs. In 2023, the MPSC authorized Consumers to recover the 2022 underrecovery amount over three years, providing immediate relief to electric customers.
Costs of Coal-fueled Electric Generating Units to be Retired: In 2022, the MPSC approved Consumers’ plans to retire the J.H. Campbell coal-fueled generating units in 2025. The MPSC authorized regulatory asset treatment for Consumers to recover the remaining book value of the units upon their retirement, as well as a 9.0‑percent return on equity, through 2040, the units’ original retirement date. Accordingly, in 2022, Consumers removed from total plant, property, and equipment an amount of $1.3 billion, representing the projected remaining book value of the electric generating units upon their retirement, and recorded it as a noncurrent regulatory asset on its consolidated balance sheets.
As discussed further below, the retirement of J.H. Campbell is subject to temporary extensions under emergency orders issued by the U.S. Secretary of Energy. Such orders authorize Consumers to obtain cost recovery at FERC; thus, Consumers has deferred the costs of complying with these orders as a regulatory asset.
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 the amortization periods, see Note 11, Retirement Benefits.
Securitized Costs: The MPSC has issued securitization financing orders authorizing Consumers to issue securitization bonds in order to finance the recovery of the remaining book value of three smaller natural gas-fueled electric generating units that Consumers retired in 2015, seven smaller coal-fueled electric generating units that Consumers retired in 2016, and the D.E. Karn coal-fueled electric generating units that Consumers retired in 2023. Consumers has removed from plant, property, and equipment and recorded as a regulatory asset the book value of these units. Consumers is amortizing the regulatory asset over the life of the related securitization bonds, which it issued through subsidiaries in 2014 and 2023. For additional details regarding the securitization bonds, see Note 5, Financings and Capitalization—Securitization Bonds.
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.
Decommissioning Costs: In Consumers’ electric depreciation and general rate cases, the MPSC has authorized Consumers to remove from depreciation rates the costs of decommissioning the D.E. Karn coal-fueled electric generating units, and instead defer those costs as a regulatory asset to be recovered through 2031. Additionally, ash disposal costs related to Consumers’ retired coal-fueled generating units may be deferred as a regulatory asset and collected over a tenyear period. In its 2022 order approving Consumers’ integrated resource plan, the MPSC authorized similar treatment for the decommissioning and ash disposal costs associated with the J.H. Campbell coal-fueled generating units that were planned for retirement in 2025.
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 deferred and amortized over the life of the new debt.
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 tenyear period the costs incurred to remediate the MGP sites. For additional information, see Note 4, Contingencies and Commitments—Consumers Gas Utility Contingencies.
Ludington Overhaul Contract Dispute: The MPSC has authorized Consumers to defer as a regulatory asset costs associated with correcting incomplete, nonconforming, and defective work performed by TAES during a major overhaul and upgrade of Ludington. Consumers will defer such costs while post‑verdict proceedings and any appeals in the litigation with TAES and Toshiba continue; such costs will be offset, in part or in whole, by future litigation proceeds received from TAES or Toshiba. Consumers has also deferred replacement power costs due to outages resulting from correcting this work. Consumers will have the opportunity to seek appropriate recovery and ratemaking treatment for amounts recorded as a regulatory asset following resolution of the litigation. During 2025, cash expenditures associated with the Ludington overhaul contract dispute were $30 million. For additional details on the contract dispute, see Note 4, Contingencies and Commitments—Consumers Electric Utility Contingencies.
Service Restoration Cost Deferral: As a result of catastrophic storms in Consumers’ electric service territory, Consumers incurred significant service restoration costs during March and April 2025. In April 2025, Consumers filed with the MPSC an ex parte application requesting approval to defer, as a regulatory asset, operating and maintenance expenses associated with the storms. In June 2025, the MPSC approved the application, authorizing the deferral of these expenses for accounting purposes. Recovery of this regulatory asset will be requested in a future case.
Energy Waste Reduction Plan: Michigan law requires electric and gas utilities to implement programs that reduce energy consumption through energy efficiency and demand-side energy conservation. Utilities may recover the cost of achieving specified reductions in customers’ electricity and gas use through surcharges. 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.
Postretirement Benefits Expense Deferral Mechanism: In Consumers’ general rate cases, the MPSC approved a mechanism allowing Consumers to defer for future recovery or refund pension and OPEB expenses above or below the amounts used to set existing rates. Amounts deferred will be collected from or refunded to customers over ten years.
Renewable Energy Plan: Under Michigan law, renewable energy standards specify how much electricity must come from renewable sources and which technologies, such as wind, solar, and certain biomass, qualify. Utilities may recover compliance costs, including renewable power purchases (and related financial mechanisms), depreciation, property taxes, interest, and other operating and maintenance expenses for company-owned renewable assets, along with a return on those assets. The MPSC allows Consumers to transfer and collect a portion of these costs through its PSCR process. Incremental costs may be collected through surcharges. If spending exceeds amounts collected, the difference is recorded as a regulatory asset and amortized as recovered from customers; this excludes amounts related to return on equity. If collections exceed spending, the excess is recorded as a regulatory liability and amortized as future costs are incurred for operating renewable facilities and purchasing RECs under renewable energy agreements.
Regulatory Liabilities
Income Taxes, Net: Consumers records regulatory assets and liabilities to reflect the difference between deferred income taxes recognized for financial reporting purposes and amounts previously reflected in Consumers’ rates. This net balance will decrease over the remaining life of the related temporary differences and flow through income tax expense. The majority of the net regulatory liability recorded related to income taxes is associated with plant assets that are subject to normalization, which is governed by the Internal Revenue Code, and will be returned to customers over the remaining book life of the related plant assets. For additional details on deferred income taxes, see Note 13, Income Taxes.
ASP Gain: In April 2024, Consumers sold its unregulated ASP business to a non-affiliated company, resulting in a $110 million gain. In July 2024, the MPSC approved the utilization of $27.5 million, or one‑fourth, of the gain on the sale as an offset to the revenue deficiency in lieu of additional rate relief during the 12‑month period beginning October 1, 2024, with the remaining three-fourths of the gain, or $82.5 million, to be credited to customers as a bill credit over a three-year period beginning October 1, 2024.
Cost of Removal: The MPSC allows Consumers to collect amounts from customers to fund future asset removal activities. This regulatory liability is reduced as costs are incurred to remove the assets at the end of their useful lives.
Green Giving Program: In conjunction with Consumers’ voluntary green pricing program, the MPSC has directed Consumers to use surplus program funds to support renewable-energy participation by low‑income customers.
Renewable Energy Grant: In 2013, Consumers received a $69 million renewable energy grant for Lake Winds® Energy Park, which began operations in 2012. This grant reduces Consumers’ cost of complying with Michigan’s renewable portfolio standard and, accordingly, reduces the overall renewable energy surcharge to be collected from customers. The regulatory liability recorded for the grant will be amortized over the life of Lake Winds® Energy Park. Consumers presents the amortization as a reduction to maintenance and other operating expenses on its consolidated statements of income.
Consumers Electric Utility
2024 Electric Rate Case: In May 2024, Consumers filed an application with the MPSC seeking a rate increase of $325 million, made up of two components. First, Consumers requested a $303 million annual rate increase, based on a 10.25‑percent authorized return on equity for the projected 12month period ending February 28, 2026. The filing requested authority to recover costs related to new infrastructure investment primarily in distribution system reliability and cleaner energy resources. Second, Consumers requested approval of a $22 million surcharge for the recovery of distribution investments made in 2023 that exceeded the rates authorized in accordance with previous electric rate orders.
In October 2024, Consumers revised its requested increase to $277 million, primarily to reflect the removal of projected capital investments associated with certain solar facilities that Consumers incorporated into its amended Renewable Energy Plan.
In March 2025, the MPSC issued an order authorizing an annual rate increase of $176 million, which is inclusive of a $22 million surcharge for the recovery of distribution investments made in 2023 that exceeded the rate amounts authorized in accordance with previous electric rate orders. The approved rate increase is based on a 9.90‑percent authorized return on equity. The new rates became effective in April 2025
J.H. Campbell Emergency Order: In May 2025, before the planned closure of J.H. Campbell, the U.S. Secretary of Energy issued an emergency order under section 202(c) of the Federal Power Act requiring J.H. Campbell to continue operating for 90 days, through August 20, 2025. Subsequently, the U.S. Secretary of Energy issued two additional emergency orders for 90 days each, ultimately requiring continued operation of J.H. Campbell through February 17, 2026. These orders stated that continued operation of J.H. Campbell was required to meet an energy emergency across MISO’s North and Central regions. Consistent with the Federal Power Act and DOE regulations, the orders authorize Consumers to obtain cost recovery at FERC.
As directed, Consumers has continued to make J.H. Campbell available in the MISO market and, in June 2025, filed a complaint at FERC seeking a modification of the MISO Tariff that would enable Consumers to recover the costs of complying with the emergency orders. Consumers’ complaint sought a mechanism in the MISO Tariff that would allow allocation of those compliance costs across the MISO North and Central regions, consistent with the nature of the energy emergency declared in the U.S. Secretary of Energy orders. In August 2025, FERC granted Consumers’ complaint and ordered MISO to revise its tariff accordingly. MISO submitted a compliance filing with FERC in September 2025, and FERC approval of the compliance filing remains pending.
In January 2026, Consumers filed a request at FERC seeking recovery of the net financial impact of complying with the May 2025 emergency order, which was $42 million after applying MISO revenues of $78 million. This filing encompasses recovery sought by the joint owners of J.H. Campbell.
For the second emergency order period through December 31, 2025, the net financial impact of compliance was $93 million after applying MISO revenues of $77 million. Consumers will seek recovery of these compliance costs at a later date, consistent with rate recovery sought for the May 2025 emergency order. The ultimate financial impact remains subject to the outcome of the FERC proceeding and any future guidance or interpretation.
Consumers Gas Utility
2024 Gas Rate Case: In December 2024, Consumers filed an application with the MPSC seeking an annual rate increase of $248 million based on a 10.25‑percent authorized return on equity for the projected 12‑month period ending October 31, 2026. In July 2025, Consumers revised its requested increase to $217 million. In September 2025, the MPSC issued an order authorizing an annual rate increase of $157.5 million, based on a 9.80‑percent authorized return on equity. The new rates became effective in November 2025.
PSCR and GCR
The PSCR and GCR ratemaking processes are designed to allow Consumers to recover all of its power supply and purchased natural gas costs if incurred under reasonable and prudent policies and practices. The MPSC reviews these costs, policies, and practices in annual plan and reconciliation proceedings. Consumers adjusts its PSCR and GCR billing charges monthly, subject to ceiling factor limitations, in order to minimize the underrecovery or overrecovery amount in the annual reconciliations. Underrecoveries represent power supply and purchased natural gas costs that will be recovered from customers; overrecoveries represent previously collected revenues that will be refunded to customers.
Presented in the following table are the liabilities for PSCR and GCR underrecoveries and overrecoveries reflected on Consumers’ consolidated balance sheets:
In Millions
December 3120252024
Assets
PSCR underrecoveries$38 $— 
Accounts receivable and accrued revenue$38 $— 
Liabilities
PSCR overrecoveries$— $13 
GCR overrecoveries28 25 
Accrued rate refunds$28 $38 
Consumers Energy Company  
Public Utilities, General Disclosures [Line Items]  
Regulatory Matters Regulatory Matters
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, residential customer advocacy groups, environmental organizations, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. Intervenors also participate in certain FERC matters, including FERC’s regulation of certain wholesale rates that affect Consumers’ power supply costs. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC and FERC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC and FERC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings.
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 3120252024
Regulatory assets
Current
Energy waste reduction plan incentive1
$66 $60 
Retention incentive program2
10 18 
2022 PSCR underrecovery3
— 126 
Other28 25 
Total current regulatory assets$104 $229 
Non-current
Costs of coal-fueled electric generating units to be retired3
$1,179 $1,266 
Postretirement benefits2
589 747 
Securitized costs3
549 666 
ARO4
379 366 
Decommissioning costs2
197 158 
Unamortized loss on reacquired debt3
89 92 
MGP sites3
82 90 
Energy waste reduction plan incentive1
64 64 
Ludington overhaul contract dispute2
60 31 
Service restoration cost deferral4
52 — 
Energy waste reduction plan3
26 31 
Postretirement benefits expense deferral mechanism2
22 21 
Renewable Energy Plan3
— 
Retention incentive program2
12 
Other54 25 
Total non-current regulatory assets$3,355 $3,569 
Total regulatory assets$3,459 $3,798 
Regulatory liabilities
Current
Income taxes, net$47 $53 
ASP gain28 47 
Other10 11 
Total current regulatory liabilities$85 $111 
Non-current
Cost of removal$2,727 $2,665 
Income taxes, net1,118 1,163 
Energy waste reduction plan68 41 
Green giving program41 — 
Postretirement benefits expense deferral mechanism40 37 
Renewable energy grant38 40 
ASP gain19 46 
Renewable Energy Plan— 51 
Other40 24 
Total non-current regulatory liabilities$4,091 $4,067 
Total regulatory liabilities$4,176 $4,178 
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.
2This regulatory asset is included in rate base, thereby providing a return.
3The MPSC has provided a specific return on these regulatory assets.
4These regulatory assets represent incurred costs for which the MPSC has provided 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 January 2026, the MPSC approved a settlement agreement authorizing Consumers to collect $64 million during 2026 as an incentive for exceeding its statutory savings targets in 2024. Consumers recognized incentive revenue under this program of $64 million in 2024.
Consumers also exceeded its statutory savings targets in 2025, achieved certain other goals, and will request the MPSC’s approval to collect $64 million in the energy waste reduction reconciliation to be filed in May 2026. Consumers recognized incentive revenue under this program of $64 million in 2025.
Retention Incentive Program: To ensure necessary staffing at the D.E. Karn and J.H. Campbell coal‑fueled generating units through their retirement, Consumers established retention incentive programs. The MPSC has approved deferred accounting treatment for the retention and severance costs incurred under these programs and has allowed for recovery over three years. These MPSC-approved retention plans concluded in November 2025. For additional details regarding retention incentive programs, see Note 20, Exit Activities and Asset Sales.
2022 PSCR Underrecovery: As a result of rising fuel prices during 2022, Consumers’ power supply costs for 2022 were significantly higher than those projected in its 2022 PSCR plan. At the end of 2022, Consumers had recorded $401 million of under-recovered power supply costs. In 2023, the MPSC authorized Consumers to recover the 2022 underrecovery amount over three years, providing immediate relief to electric customers.
Costs of Coal-fueled Electric Generating Units to be Retired: In 2022, the MPSC approved Consumers’ plans to retire the J.H. Campbell coal-fueled generating units in 2025. The MPSC authorized regulatory asset treatment for Consumers to recover the remaining book value of the units upon their retirement, as well as a 9.0‑percent return on equity, through 2040, the units’ original retirement date. Accordingly, in 2022, Consumers removed from total plant, property, and equipment an amount of $1.3 billion, representing the projected remaining book value of the electric generating units upon their retirement, and recorded it as a noncurrent regulatory asset on its consolidated balance sheets.
As discussed further below, the retirement of J.H. Campbell is subject to temporary extensions under emergency orders issued by the U.S. Secretary of Energy. Such orders authorize Consumers to obtain cost recovery at FERC; thus, Consumers has deferred the costs of complying with these orders as a regulatory asset.
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 the amortization periods, see Note 11, Retirement Benefits.
Securitized Costs: The MPSC has issued securitization financing orders authorizing Consumers to issue securitization bonds in order to finance the recovery of the remaining book value of three smaller natural gas-fueled electric generating units that Consumers retired in 2015, seven smaller coal-fueled electric generating units that Consumers retired in 2016, and the D.E. Karn coal-fueled electric generating units that Consumers retired in 2023. Consumers has removed from plant, property, and equipment and recorded as a regulatory asset the book value of these units. Consumers is amortizing the regulatory asset over the life of the related securitization bonds, which it issued through subsidiaries in 2014 and 2023. For additional details regarding the securitization bonds, see Note 5, Financings and Capitalization—Securitization Bonds.
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.
Decommissioning Costs: In Consumers’ electric depreciation and general rate cases, the MPSC has authorized Consumers to remove from depreciation rates the costs of decommissioning the D.E. Karn coal-fueled electric generating units, and instead defer those costs as a regulatory asset to be recovered through 2031. Additionally, ash disposal costs related to Consumers’ retired coal-fueled generating units may be deferred as a regulatory asset and collected over a tenyear period. In its 2022 order approving Consumers’ integrated resource plan, the MPSC authorized similar treatment for the decommissioning and ash disposal costs associated with the J.H. Campbell coal-fueled generating units that were planned for retirement in 2025.
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 deferred and amortized over the life of the new debt.
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 tenyear period the costs incurred to remediate the MGP sites. For additional information, see Note 4, Contingencies and Commitments—Consumers Gas Utility Contingencies.
Ludington Overhaul Contract Dispute: The MPSC has authorized Consumers to defer as a regulatory asset costs associated with correcting incomplete, nonconforming, and defective work performed by TAES during a major overhaul and upgrade of Ludington. Consumers will defer such costs while post‑verdict proceedings and any appeals in the litigation with TAES and Toshiba continue; such costs will be offset, in part or in whole, by future litigation proceeds received from TAES or Toshiba. Consumers has also deferred replacement power costs due to outages resulting from correcting this work. Consumers will have the opportunity to seek appropriate recovery and ratemaking treatment for amounts recorded as a regulatory asset following resolution of the litigation. During 2025, cash expenditures associated with the Ludington overhaul contract dispute were $30 million. For additional details on the contract dispute, see Note 4, Contingencies and Commitments—Consumers Electric Utility Contingencies.
Service Restoration Cost Deferral: As a result of catastrophic storms in Consumers’ electric service territory, Consumers incurred significant service restoration costs during March and April 2025. In April 2025, Consumers filed with the MPSC an ex parte application requesting approval to defer, as a regulatory asset, operating and maintenance expenses associated with the storms. In June 2025, the MPSC approved the application, authorizing the deferral of these expenses for accounting purposes. Recovery of this regulatory asset will be requested in a future case.
Energy Waste Reduction Plan: Michigan law requires electric and gas utilities to implement programs that reduce energy consumption through energy efficiency and demand-side energy conservation. Utilities may recover the cost of achieving specified reductions in customers’ electricity and gas use through surcharges. 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.
Postretirement Benefits Expense Deferral Mechanism: In Consumers’ general rate cases, the MPSC approved a mechanism allowing Consumers to defer for future recovery or refund pension and OPEB expenses above or below the amounts used to set existing rates. Amounts deferred will be collected from or refunded to customers over ten years.
Renewable Energy Plan: Under Michigan law, renewable energy standards specify how much electricity must come from renewable sources and which technologies, such as wind, solar, and certain biomass, qualify. Utilities may recover compliance costs, including renewable power purchases (and related financial mechanisms), depreciation, property taxes, interest, and other operating and maintenance expenses for company-owned renewable assets, along with a return on those assets. The MPSC allows Consumers to transfer and collect a portion of these costs through its PSCR process. Incremental costs may be collected through surcharges. If spending exceeds amounts collected, the difference is recorded as a regulatory asset and amortized as recovered from customers; this excludes amounts related to return on equity. If collections exceed spending, the excess is recorded as a regulatory liability and amortized as future costs are incurred for operating renewable facilities and purchasing RECs under renewable energy agreements.
Regulatory Liabilities
Income Taxes, Net: Consumers records regulatory assets and liabilities to reflect the difference between deferred income taxes recognized for financial reporting purposes and amounts previously reflected in Consumers’ rates. This net balance will decrease over the remaining life of the related temporary differences and flow through income tax expense. The majority of the net regulatory liability recorded related to income taxes is associated with plant assets that are subject to normalization, which is governed by the Internal Revenue Code, and will be returned to customers over the remaining book life of the related plant assets. For additional details on deferred income taxes, see Note 13, Income Taxes.
ASP Gain: In April 2024, Consumers sold its unregulated ASP business to a non-affiliated company, resulting in a $110 million gain. In July 2024, the MPSC approved the utilization of $27.5 million, or one‑fourth, of the gain on the sale as an offset to the revenue deficiency in lieu of additional rate relief during the 12‑month period beginning October 1, 2024, with the remaining three-fourths of the gain, or $82.5 million, to be credited to customers as a bill credit over a three-year period beginning October 1, 2024.
Cost of Removal: The MPSC allows Consumers to collect amounts from customers to fund future asset removal activities. This regulatory liability is reduced as costs are incurred to remove the assets at the end of their useful lives.
Green Giving Program: In conjunction with Consumers’ voluntary green pricing program, the MPSC has directed Consumers to use surplus program funds to support renewable-energy participation by low‑income customers.
Renewable Energy Grant: In 2013, Consumers received a $69 million renewable energy grant for Lake Winds® Energy Park, which began operations in 2012. This grant reduces Consumers’ cost of complying with Michigan’s renewable portfolio standard and, accordingly, reduces the overall renewable energy surcharge to be collected from customers. The regulatory liability recorded for the grant will be amortized over the life of Lake Winds® Energy Park. Consumers presents the amortization as a reduction to maintenance and other operating expenses on its consolidated statements of income.
Consumers Electric Utility
2024 Electric Rate Case: In May 2024, Consumers filed an application with the MPSC seeking a rate increase of $325 million, made up of two components. First, Consumers requested a $303 million annual rate increase, based on a 10.25‑percent authorized return on equity for the projected 12month period ending February 28, 2026. The filing requested authority to recover costs related to new infrastructure investment primarily in distribution system reliability and cleaner energy resources. Second, Consumers requested approval of a $22 million surcharge for the recovery of distribution investments made in 2023 that exceeded the rates authorized in accordance with previous electric rate orders.
In October 2024, Consumers revised its requested increase to $277 million, primarily to reflect the removal of projected capital investments associated with certain solar facilities that Consumers incorporated into its amended Renewable Energy Plan.
In March 2025, the MPSC issued an order authorizing an annual rate increase of $176 million, which is inclusive of a $22 million surcharge for the recovery of distribution investments made in 2023 that exceeded the rate amounts authorized in accordance with previous electric rate orders. The approved rate increase is based on a 9.90‑percent authorized return on equity. The new rates became effective in April 2025
J.H. Campbell Emergency Order: In May 2025, before the planned closure of J.H. Campbell, the U.S. Secretary of Energy issued an emergency order under section 202(c) of the Federal Power Act requiring J.H. Campbell to continue operating for 90 days, through August 20, 2025. Subsequently, the U.S. Secretary of Energy issued two additional emergency orders for 90 days each, ultimately requiring continued operation of J.H. Campbell through February 17, 2026. These orders stated that continued operation of J.H. Campbell was required to meet an energy emergency across MISO’s North and Central regions. Consistent with the Federal Power Act and DOE regulations, the orders authorize Consumers to obtain cost recovery at FERC.
As directed, Consumers has continued to make J.H. Campbell available in the MISO market and, in June 2025, filed a complaint at FERC seeking a modification of the MISO Tariff that would enable Consumers to recover the costs of complying with the emergency orders. Consumers’ complaint sought a mechanism in the MISO Tariff that would allow allocation of those compliance costs across the MISO North and Central regions, consistent with the nature of the energy emergency declared in the U.S. Secretary of Energy orders. In August 2025, FERC granted Consumers’ complaint and ordered MISO to revise its tariff accordingly. MISO submitted a compliance filing with FERC in September 2025, and FERC approval of the compliance filing remains pending.
In January 2026, Consumers filed a request at FERC seeking recovery of the net financial impact of complying with the May 2025 emergency order, which was $42 million after applying MISO revenues of $78 million. This filing encompasses recovery sought by the joint owners of J.H. Campbell.
For the second emergency order period through December 31, 2025, the net financial impact of compliance was $93 million after applying MISO revenues of $77 million. Consumers will seek recovery of these compliance costs at a later date, consistent with rate recovery sought for the May 2025 emergency order. The ultimate financial impact remains subject to the outcome of the FERC proceeding and any future guidance or interpretation.
Consumers Gas Utility
2024 Gas Rate Case: In December 2024, Consumers filed an application with the MPSC seeking an annual rate increase of $248 million based on a 10.25‑percent authorized return on equity for the projected 12‑month period ending October 31, 2026. In July 2025, Consumers revised its requested increase to $217 million. In September 2025, the MPSC issued an order authorizing an annual rate increase of $157.5 million, based on a 9.80‑percent authorized return on equity. The new rates became effective in November 2025.
PSCR and GCR
The PSCR and GCR ratemaking processes are designed to allow Consumers to recover all of its power supply and purchased natural gas costs if incurred under reasonable and prudent policies and practices. The MPSC reviews these costs, policies, and practices in annual plan and reconciliation proceedings. Consumers adjusts its PSCR and GCR billing charges monthly, subject to ceiling factor limitations, in order to minimize the underrecovery or overrecovery amount in the annual reconciliations. Underrecoveries represent power supply and purchased natural gas costs that will be recovered from customers; overrecoveries represent previously collected revenues that will be refunded to customers.
Presented in the following table are the liabilities for PSCR and GCR underrecoveries and overrecoveries reflected on Consumers’ consolidated balance sheets:
In Millions
December 3120252024
Assets
PSCR underrecoveries$38 $— 
Accounts receivable and accrued revenue$38 $— 
Liabilities
PSCR overrecoveries$— $13 
GCR overrecoveries28 25 
Accrued rate refunds$28 $38 
v3.25.4
Contingencies and Commitments
12 Months Ended
Dec. 31, 2025
Other Commitments [Line Items]  
Contingencies and Commitments Contingencies and Commitments
CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures stating that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter.
CMS Energy Contingencies
CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement establishing the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which was valid through 2025. CMS Land submitted a renewal request in March 2025, and will continue to operate under the existing permit until a renewal is issued.
At December 31, 2025, CMS Energy had a recorded liability of $48 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 1 percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $62 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
20262027202820292030
Long-term leachate disposal and operating and maintenance costs$$$$$
CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter.
Consumers Electric Utility Contingencies
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations.
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates its liability for NREPA sites for which it can estimate a range of loss to be between $2 million and $3 million. At December 31, 2025, Consumers had a recorded liability of $2 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount.
Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA had reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 2011, Consumers received a follow-up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties asked to participate in the removal action plan, including Consumers, declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river.
Based on its experience, Consumers estimates its share of the total liability for known CERCLA sites to be between $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At December 31, 2025, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount.
The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability.
Ludington Overhaul Contract Dispute: Consumers and DTE Electric, co-owners of Ludington, entered into a 2010 engineering, procurement, and construction agreement with Toshiba International, under which Toshiba International contracted to perform a major overhaul and upgrade of Ludington. Toshiba International later assigned the contract and all of its obligations to TAES. TAES’ work under the contract was incomplete, defective, and non‑conforming. Consumers and DTE Electric repeatedly documented TAES’ failure to perform under the contract and demanded that TAES provide a comprehensive plan to resolve those matters, including adherence to its warranty commitments and other contractual obligations. Consumers and DTE Electric engaged in extensive efforts to resolve these issues with TAES, including a formal demand to TAES’ parent, Toshiba, under a parent guaranty it provided. TAES did not provide a comprehensive plan or otherwise meet its performance obligations. As a result of TAES’ defaults, Consumers and DTE Electric terminated the contract.
In order to enforce their rights under the contract and parent guaranty, and to pursue appropriate damages, Consumers and DTE Electric filed a complaint against TAES and Toshiba in the U.S. District Court for the Eastern District of Michigan in 2022. TAES and Toshiba filed a motion to dismiss the complaint, along with an answer and counterclaims seeking approximately $15 million in damages related to payments allegedly owed under the parties’ contract. The court denied the motion to dismiss filed by TAES and Toshiba.
The case against TAES went to trial before a jury and, in December 2025, the jury rendered a verdict in Consumers’ and DTE Electric’s favor. The jury found that TAES breached the parties’ contract and awarded damages of $383 million. The parties separately stipulated to $11 million in additional liquidated damages for late performance by TAES. These amounts are subject to pre- and post-judgment interest. In addition, the jury rejected TAES’ counterclaim, determining that Consumers and DTE Electric did not breach the contract. The parent guaranty provided by Toshiba allows Consumers and DTE Electric to recover legal costs in addition to damages. The parties are still engaged in post-verdict proceedings at the District Court and the jury verdict may be appealed; these processes could take two years or more to
conclude with finality. The jury verdict was a favorable outcome for Consumers but an unfavorable outcome in these additional proceedings could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity. Consumers and DTE Electric must still also resolve their claim against Toshiba under the parent guaranty, which is still pending but which was bifurcated by the Court from the claims against TAES.
Previously, Toshiba announced that TBJH became the majority shareholder and new parent company of Toshiba through a common stock purchase. TBJH is a subsidiary of a Japanese private equity firm. Consumers and DTE Electric do not believe that this affects their rights under the parent guaranty provided by Toshiba.
With MPSC approval, Consumers and DTE Electric were authorized to defer as a regulatory asset the costs associated with repairing or replacing the defective work performed by TAES while the litigation with TAES and Toshiba remains pending. Consumers currently estimates that its share of repair, replacement, and other damages resulting from TAES’ defective work is approximately $350 million, which is expected to be offset in part or entirely by future litigation proceeds received from TAES or Toshiba. Consumers and DTE Electric will have the opportunity to seek appropriate recovery and ratemaking treatment for amounts recorded as a regulatory asset following resolution of the litigation, including any amounts not recovered from TAES or Toshiba. Consumers cannot predict the financial impact or outcome of such proceedings.
Consumers Gas Utility Contingencies
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, 2025, Consumers had a recorded liability of $59 million for its remaining obligations for these sites. Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years:
In Millions
20262027202820292030
Remediation and other response activity costs$$$25 $11 $
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, 2025, Consumers had a regulatory asset of $82 million related to the MGP sites.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2025:
In Millions
 
Guarantee Description
Issue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousvarious$230 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite152 — 
Guarantee3
2011indefinite30 — 
Consumers
Guarantee3
2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in Aviator Wind, BG Solar Holdings, Newport Solar Holdings, and NWO Holdco to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on NorthStar Clean Energy’s ownership interest in these entities, 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. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim.
3This obligation comprises a guarantee provided by Consumers to the DOE in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities and those disclosed in the table to be remote.
Other Contingencies
In addition to the matters disclosed in this Note and Note 3, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Certain of these matters, while potentially substantial, are covered by insurance and the insurer or insurers are involved in the relevant proceedings. 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, primarily long-term PPAs, and construction and service agreements. Related-party PPAs are between Consumers and certain affiliates of NorthStar Clean Energy. Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2025 for each of the periods shown:
In Millions
Payments Due
Total20262027202820292030Beyond 2030
CMS Energy, including Consumers
Total PPAs$16,983 $873 $904 $930 $942 $1,011 $12,323 
Other3,582 1,511 762 468 391 303 147 
Total purchase obligations20,565 2,384 1,666 1,398 1,333 1,314 12,470 
Consumers
PPAs
MCV PPA$5,539 $339 $312 $316 $308 $395 $3,869 
Related-party PPAs62 32 30 — — — — 
Other PPAs11,382 502 562 614 634 616 8,454 
Total PPAs$16,983 $873 $904 $930 $942 $1,011 $12,323 
Other2,700 1,185 599 363 266 232 55 
Total purchase obligations19,683 2,058 1,503 1,293 1,208 1,243 12,378 
MCV PPA: Consumers has a PPA with the MCV Partnership giving Consumers the right to purchase up to 1,240 MW of capacity and energy produced by the MCV Facility through May 2030. The MCV PPA provides for:
a capacity charge of $10.14 per MWh of available capacity through March 2025 and $5.00 per MWh of available capacity from March 2025 through the termination date of the PPA
a fixed energy charge of $6.30 per MWh for on-peak hours and $6.00 for off-peak hours
a variable energy charge based on the MCV Partnership’s cost of production for energy delivered to Consumers
a $5 million annual contribution by the MCV Partnership to a renewable resources program through March 2025
Capacity and energy charges under the MCV PPA were $360 million in 2025, $358 million in 2024, and $340 million in 2023.
In September 2025, Consumers entered into a new ten‑year PPA with the MCV Partnership for the purchase of up to 1,240 MW of capacity and associated energy from the MCV Facility, effective June 1, 2030. Under the terms of the new agreement, Consumers will pay a monthly capacity charge of $5.00 per MWh of available capacity. Energy payments include a fixed component designed to recover non-fuel operating costs and a variable component based on the MCV Partnership’s cost of production for
energy delivered to Consumers. The agreement, which is subject to MPSC approval, supports Consumers’ ongoing resource adequacy and energy supply planning efforts.
Other PPAs: Consumers has PPAs expiring through 2060 with various counterparties. The majority of the PPAs have capacity and energy charges for delivered energy. Capacity and energy charges under these PPAs were $603 million in 2025, $565 million in 2024, and $498 million in 2023. In addition, CMS Energy and Consumers account for several of their PPAs as leases. See Note 9, Leases for more information about CMS Energy’s and Consumers’ lease obligations.
Consumers Energy Company  
Other Commitments [Line Items]  
Contingencies and Commitments Contingencies and Commitments
CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures stating that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter.
CMS Energy Contingencies
CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement establishing the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which was valid through 2025. CMS Land submitted a renewal request in March 2025, and will continue to operate under the existing permit until a renewal is issued.
At December 31, 2025, CMS Energy had a recorded liability of $48 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 1 percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $62 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
20262027202820292030
Long-term leachate disposal and operating and maintenance costs$$$$$
CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter.
Consumers Electric Utility Contingencies
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations.
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates its liability for NREPA sites for which it can estimate a range of loss to be between $2 million and $3 million. At December 31, 2025, Consumers had a recorded liability of $2 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount.
Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA had reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 2011, Consumers received a follow-up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties asked to participate in the removal action plan, including Consumers, declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river.
Based on its experience, Consumers estimates its share of the total liability for known CERCLA sites to be between $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At December 31, 2025, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount.
The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability.
Ludington Overhaul Contract Dispute: Consumers and DTE Electric, co-owners of Ludington, entered into a 2010 engineering, procurement, and construction agreement with Toshiba International, under which Toshiba International contracted to perform a major overhaul and upgrade of Ludington. Toshiba International later assigned the contract and all of its obligations to TAES. TAES’ work under the contract was incomplete, defective, and non‑conforming. Consumers and DTE Electric repeatedly documented TAES’ failure to perform under the contract and demanded that TAES provide a comprehensive plan to resolve those matters, including adherence to its warranty commitments and other contractual obligations. Consumers and DTE Electric engaged in extensive efforts to resolve these issues with TAES, including a formal demand to TAES’ parent, Toshiba, under a parent guaranty it provided. TAES did not provide a comprehensive plan or otherwise meet its performance obligations. As a result of TAES’ defaults, Consumers and DTE Electric terminated the contract.
In order to enforce their rights under the contract and parent guaranty, and to pursue appropriate damages, Consumers and DTE Electric filed a complaint against TAES and Toshiba in the U.S. District Court for the Eastern District of Michigan in 2022. TAES and Toshiba filed a motion to dismiss the complaint, along with an answer and counterclaims seeking approximately $15 million in damages related to payments allegedly owed under the parties’ contract. The court denied the motion to dismiss filed by TAES and Toshiba.
The case against TAES went to trial before a jury and, in December 2025, the jury rendered a verdict in Consumers’ and DTE Electric’s favor. The jury found that TAES breached the parties’ contract and awarded damages of $383 million. The parties separately stipulated to $11 million in additional liquidated damages for late performance by TAES. These amounts are subject to pre- and post-judgment interest. In addition, the jury rejected TAES’ counterclaim, determining that Consumers and DTE Electric did not breach the contract. The parent guaranty provided by Toshiba allows Consumers and DTE Electric to recover legal costs in addition to damages. The parties are still engaged in post-verdict proceedings at the District Court and the jury verdict may be appealed; these processes could take two years or more to
conclude with finality. The jury verdict was a favorable outcome for Consumers but an unfavorable outcome in these additional proceedings could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity. Consumers and DTE Electric must still also resolve their claim against Toshiba under the parent guaranty, which is still pending but which was bifurcated by the Court from the claims against TAES.
Previously, Toshiba announced that TBJH became the majority shareholder and new parent company of Toshiba through a common stock purchase. TBJH is a subsidiary of a Japanese private equity firm. Consumers and DTE Electric do not believe that this affects their rights under the parent guaranty provided by Toshiba.
With MPSC approval, Consumers and DTE Electric were authorized to defer as a regulatory asset the costs associated with repairing or replacing the defective work performed by TAES while the litigation with TAES and Toshiba remains pending. Consumers currently estimates that its share of repair, replacement, and other damages resulting from TAES’ defective work is approximately $350 million, which is expected to be offset in part or entirely by future litigation proceeds received from TAES or Toshiba. Consumers and DTE Electric will have the opportunity to seek appropriate recovery and ratemaking treatment for amounts recorded as a regulatory asset following resolution of the litigation, including any amounts not recovered from TAES or Toshiba. Consumers cannot predict the financial impact or outcome of such proceedings.
Consumers Gas Utility Contingencies
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, 2025, Consumers had a recorded liability of $59 million for its remaining obligations for these sites. Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years:
In Millions
20262027202820292030
Remediation and other response activity costs$$$25 $11 $
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, 2025, Consumers had a regulatory asset of $82 million related to the MGP sites.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2025:
In Millions
 
Guarantee Description
Issue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousvarious$230 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite152 — 
Guarantee3
2011indefinite30 — 
Consumers
Guarantee3
2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in Aviator Wind, BG Solar Holdings, Newport Solar Holdings, and NWO Holdco to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on NorthStar Clean Energy’s ownership interest in these entities, 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. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim.
3This obligation comprises a guarantee provided by Consumers to the DOE in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities and those disclosed in the table to be remote.
Other Contingencies
In addition to the matters disclosed in this Note and Note 3, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Certain of these matters, while potentially substantial, are covered by insurance and the insurer or insurers are involved in the relevant proceedings. 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, primarily long-term PPAs, and construction and service agreements. Related-party PPAs are between Consumers and certain affiliates of NorthStar Clean Energy. Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2025 for each of the periods shown:
In Millions
Payments Due
Total20262027202820292030Beyond 2030
CMS Energy, including Consumers
Total PPAs$16,983 $873 $904 $930 $942 $1,011 $12,323 
Other3,582 1,511 762 468 391 303 147 
Total purchase obligations20,565 2,384 1,666 1,398 1,333 1,314 12,470 
Consumers
PPAs
MCV PPA$5,539 $339 $312 $316 $308 $395 $3,869 
Related-party PPAs62 32 30 — — — — 
Other PPAs11,382 502 562 614 634 616 8,454 
Total PPAs$16,983 $873 $904 $930 $942 $1,011 $12,323 
Other2,700 1,185 599 363 266 232 55 
Total purchase obligations19,683 2,058 1,503 1,293 1,208 1,243 12,378 
MCV PPA: Consumers has a PPA with the MCV Partnership giving Consumers the right to purchase up to 1,240 MW of capacity and energy produced by the MCV Facility through May 2030. The MCV PPA provides for:
a capacity charge of $10.14 per MWh of available capacity through March 2025 and $5.00 per MWh of available capacity from March 2025 through the termination date of the PPA
a fixed energy charge of $6.30 per MWh for on-peak hours and $6.00 for off-peak hours
a variable energy charge based on the MCV Partnership’s cost of production for energy delivered to Consumers
a $5 million annual contribution by the MCV Partnership to a renewable resources program through March 2025
Capacity and energy charges under the MCV PPA were $360 million in 2025, $358 million in 2024, and $340 million in 2023.
In September 2025, Consumers entered into a new ten‑year PPA with the MCV Partnership for the purchase of up to 1,240 MW of capacity and associated energy from the MCV Facility, effective June 1, 2030. Under the terms of the new agreement, Consumers will pay a monthly capacity charge of $5.00 per MWh of available capacity. Energy payments include a fixed component designed to recover non-fuel operating costs and a variable component based on the MCV Partnership’s cost of production for
energy delivered to Consumers. The agreement, which is subject to MPSC approval, supports Consumers’ ongoing resource adequacy and energy supply planning efforts.
Other PPAs: Consumers has PPAs expiring through 2060 with various counterparties. The majority of the PPAs have capacity and energy charges for delivered energy. Capacity and energy charges under these PPAs were $603 million in 2025, $565 million in 2024, and $498 million in 2023. In addition, CMS Energy and Consumers account for several of their PPAs as leases. See Note 9, Leases for more information about CMS Energy’s and Consumers’ lease obligations.
v3.25.4
Financings and Capitalization
12 Months Ended
Dec. 31, 2025
Debt Instrument [Line Items]  
Financings and Capitalization Financings and Capitalization
Presented in the following table is CMS Energy’s long-term debt at December 31:
In Millions, Except Interest Rate and Maturity
Interest Rate
(%)
Maturity20252024
CMS Energy, including Consumers
CMS Energy, parent only
Senior notes3.600 2025$— $250 
3.000 2026300 300 
2.950 2027275 275 
3.450 2027350 350 
4.700 2043250 250 
4.875 2044300 300 
$1,475 $1,725 
Convertible senior notes1
3.375 
2
2028$800 $800 
3.125 
3
20311,000 — 
$1,800 $800 
Junior subordinated notes4
4.750 
5
2050$500 $500 
3.750 
6
2050400 400 
6.500 
7
20551,000 — 
5.625 2078200 200 
5.875 2078280 280 
5.875 2079630 630 
$3,010 $2,010 
Term loan facilities variable2025$— $90 
variable2025— 400 
$— $490 
Total CMS Energy, parent only$6,285 $5,025 
CMS Energy subsidiaries
Consumers$12,196 $11,370 
NorthStar Clean Energy
Revolving credit facilityvariable
8
2028235 150 
Construction financing agreement9
variableFive years after conversion date223 — 
Total principal amount outstanding$18,939 $16,545 
Current amounts(950)(1,192)
Unamortized discounts(28)(29)
Unamortized issuance costs(154)(130)
Total CMS Energy long-term debt$17,807 $15,194 
1Holders of the convertible senior notes may convert their notes at their option in accordance with the conditions outlined in the related indentures. CMS Energy will settle conversions of the notes in accordance with the terms outlined in the related indentures. The conversion rate will be subject to adjustment for
anti‑dilutive events and fundamental change and redemption provisions as described in the related indentures. There are no sinking fund requirements for the notes.
2At December 31, 2025, the conversion price for the notes was $73.61 per share of common stock. Unamortized debt costs associated with this issuance were $6 million at December 31, 2025 and $9 million at December 31, 2024.
3At December 31, 2025, the conversion price for the notes was $90.61 per share of common stock. Unamortized debt costs associated with this issuance were $12 million at December 31, 2025.
4These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.
5On 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.
6On 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.
7On June 1, 2035, and every five years thereafter, the notes will reset to an interest rate equal to the five‑year treasury rate plus 1.961 percent.
8Loans under this facility have an interest rate of one-month Term SOFR plus 1.750 percent less an adjustment of 0.050 percent for green credit advances. At December 31, 2025, the weighted-average interest rate for the loans issued under this facility was 5.436 percent.
9Loans under this facility have an interest rate of one-month Term SOFR plus 2.250 percent. At December 31, 2025, the weighted-average interest rate for the loans issued under this facility was 6.476 percent. At completion of project construction, scheduled for the first half of 2026, a portion of this financing will convert into a term loan that will mature five years after the conversion date.
Presented in the following table is Consumers’ long-term debt at December 31:
In Millions, Except Interest Rate and Maturity
Interest Rate
(%)
Maturity20252024
Consumers
First mortgage bonds5.240 2026$115 $115 
3.680 2027100 100 
3.390 202735 35 
4.650 2028425 425 
3.800 2028300 300 
4.900 2029500 500 
5.070 202950 50 
4.600 2029600 600 
4.700 2030700 700 
4.500 2031500 — 
5.170 203295 95 
3.600 2032350 350 
3.180 2032100 100 
4.625 2033700 700 
5.050 2035625 — 
5.800 2035175 175 
5.380 2037140 140 
3.520 2037335 335 
4.010 2038215 215 
6.170 204050 50 
4.970 204050 50 
4.310 2042263 263 
3.950 2043425 425 
4.100 2045250 250 
3.250 2046450 450 
3.950 2047350 350 
4.050 2048550 550 
4.350 2049550 550 
3.750 2050300 300 
3.100 2050550 550 
3.500 2051575 575 
2.650 2052300 300 
4.200 2052450 450 
3.860 205250 50 
4.280 2057185 185 
2.500 2060525 525 
4.350 2064250 250 
variable
1
206976 76 
variable
1
2070134 134 
variable
1
2070127 127 
$12,520 $11,395 
In Millions, Except Interest Rate and Maturity
Interest Rate
(%)
Maturity20252024
Tax-exempt revenue bonds0.875 
2
2035$35 $35 
3.350 
3
204975 75 
$110 $110 
2014 Securitization bonds3.528 
4
2029
5
$81 $112 
2023 Securitization bonds5.281 
6
2028-2031
5
504 588 
$585 $700 
Total principal amount outstanding$13,215 $12,205 
Current amounts(573)(452)
Long-term debt – related parties7 principal amount outstanding
2043-2060(1,019)(835)
Unamortized discounts(26)(27)
Unamortized issuance costs(73)(73)
Total long-term debt$11,524 $10,818 
1The variable-rate bonds bear interest quarterly at a rate of three‑month SOFR minus 0.038 percent, subject to a zero‑percent floor. At December 31, 2025, the interest rates were 3.685 percent for bonds due September 2069, 3.851 percent for bonds due May 2070, and 3.897 percent for bonds due October 2070. The interest rate for the variable-rate bonds at December 31, 2024 were 4.320 percent, 4.483 percent, and 4.551 percent, respectively. 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, 2025.
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, 2027.
4The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2014 Securitization Funding, was 3.528 percent at December 31, 2025 and 2024.
5Principal and interest payments are made semiannually.
6The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2023 Securitization Funding, was 5.281 percent at December 31, 2025 and 5.322 percent at December 31, 2024.
7Long-term debt – related parties reflects Consumers’ outstanding debt held by its parent as a result of CMS Energy’s repurchase of Consumers’ first mortgage bonds. Unamortized discounts associated with the repurchase of Consumers’ first mortgage bonds were $5 million at December 31, 2025 and 2024. Unamortized issuance costs were $9 million at December 31, 2025 and $7 million at December 31, 2024.
Financings: Presented in the following table is a summary of major long-term debt issuances during 2025:
Principal
(In Millions)
Interest Rate (%)Issuance DateMaturity Date
CMS Energy, parent only
Junior subordinated notes$1,000 6.500 February 2025June 2055
Term loan credit agreement110 variableFebruary 2025December 2025
Convertible senior notes1,000 3.125 November 2025May 2031
Total CMS Energy, parent only$2,110 
NorthStar Clean Energy
Construction financing agreement$223 variableFebruary 2025
Five years after conversion date
Total NorthStar Clean Energy$223 
Consumers
First mortgage bonds$500 4.500 May 2025January 2031
First mortgage bonds625 5.050 May 2025May 2035
Total Consumers$1,125 
Total CMS Energy$3,458 
Retirements: Presented in the following table is a summary of major long-term debt retirements during 2025:
Principal
(In Millions)
Interest Rate (%)Retirement DateMaturity Date
CMS Energy, parent only
Term loan credit agreement$400 variableFebruary 2025September 2025
Term loan credit agreement200 variableFebruary 2025December 2025
Senior notes250 3.600 November 2025November 2025
Total CMS Energy, parent only$850 
Total CMS Energy$850 
CMS Energy’s Purchase of Consumers’ First Mortgage Bonds: CMS Energy purchased Consumers’ first mortgage bonds with a principal balance of $184 million during 2025 in exchange for cash of $109 million. On a consolidated basis, CMS Energy’s repurchase of Consumers’ first mortgage bonds was accounted for as a debt extinguishment and resulted in a pre-tax gain of $72 million during 2025, which was recorded in other income on CMS Energy’s consolidated statements of income. Interest expense related to the repurchased bonds was $28 million for the year ended December 31, 2025, which was recorded in interest expense – related parties on Consumers’ consolidated statements of income.
In 2024, CMS Energy purchased Consumers’ first mortgage bonds with a principal balance of $404 million in exchange for cash of $289 million. On a consolidated basis, CMS Energy’s repurchase of Consumers’ first mortgage bonds resulted in a pre-tax gain of $110 million for the year ended December 31, 2024. Interest expense related to the repurchased bonds was $19 million for the year ended December 31, 2024.
In 2023, CMS Energy purchased Consumers’ first mortgage bonds with a principal balance of $431 million in exchange for cash of $293 million. On a consolidated basis, CMS Energy’s repurchase of Consumers’ first mortgage bonds resulted in a pre-tax gain of $131 million for the year ended
December 31, 2023. Interest expense related to the repurchased bonds was $5 million for the year ended December 31, 2023.
Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. Its short-term authorization ends on May 2, 2026. In January 2026, Consumers filed an application with FERC for authority to issue long-term and short-term debt securities between May 1, 2026 and April 30, 2028.
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 twotimes interest coverage ratio and having sufficient unfunded net property additions.
Securitization Bonds: Certain regulatory assets held by Consumers’ subsidiaries, Consumers 2014 Securitization Funding and Consumers 2023 Securitization Funding, collateralize Consumers’ securitization bonds. Consumers 2014 Securitization Funding and Consumers 2023 Securitization Funding are distinct subsidiaries. The bondholders of each entity have no recourse to the other’s assets or the assets of Consumers. Consumers collects securitization surcharges to cover the principal and interest on the bonds as well as certain other qualified costs. The surcharges collected by Consumers on behalf of each entity are remitted to that subsidiary’s account and are not available to creditors of Consumers or creditors of Consumers’ affiliates other than the subsidiary that issued the bonds.
Debt Maturities: At December 31, 2025, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20262027202820292030
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$300 $625 $800 $— $— 
NorthStar Clean Energy77 — 235 — — 
Consumers
573 263 843 1,256 812 
Total CMS Energy$950 $888 $1,878 $1,256 $812 
Consumers
Long-term debt$573 $263 $843 $1,256 $812 
Credit Facilities: The following credit facilities with banks were available at December 31, 2025:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
Unsecured revolving credit facility, expiring November 20301
$750 $— $35 $715 
Unsecured letter of credit facility, expiring September 2026
50 — 50 — 
NorthStar Clean Energy
Secured revolving credit facility, expiring May 20282
$250 $235 $10 $
Secured letter of credit facility, expiring September 20283
37 — 37 — 
Secured letter of credit facility4
19 — 12 
Consumers
Secured revolving credit facility, expiring November 20305,6
$1,100 $— $$1,094 
Secured revolving credit facility, expiring November 20285,6
300 — — 300 
Secured letter of credit facility, expiring May 20275
100 — 100 — 
Unsecured letter of credit facility, expiring March 202850 — 43 
Unsecured letter of credit facility7
100 — 97 
Unsecured letter of credit facility7
100 — 100 — 
1There were no borrowings under this facility during the year ended December 31, 2025.
2Obligations under this facility are secured by certain pledged equity interests in subsidiaries of NorthStar Clean Energy; under the terms of this facility, the interests may not be sold by NorthStar Clean Energy unless there is an agreed-upon substitution for the pledged equity interests. At December 31, 2025, the net book value of the pledged equity interests was $514 million. Also under the terms of this facility, NorthStar Clean Energy may be restricted from remitting cash dividends to CMS Energy in the event of default.
3This letter of credit facility is available to a subsidiary of Aviator Wind Equity Holdings and is secured by assets of Aviator Wind. For more information regarding Aviator Wind Equity Holdings and Aviator Wind, see Note 19, Variable Interest Entities.
4The letter of credit facility is available to certain subsidiaries of NorthStar Clean Energy. The letter of credit facility is secured under a construction-to-term financing agreement and will expire five years after the term conversion date.
5Obligations under these facilities are secured by first mortgage bonds of Consumers.
6There were no borrowings under these facilities during the year ended December 31, 2025.
7Uncommitted letter of credit facility with automatic renewal provisions and therefore no expiration.
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, 2025, there were no commercial paper notes outstanding under this program.
In December 2025, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million at an interest rate of the prior month’s average onemonth Term SOFR minus 0.100 percent. At December 31, 2025, outstanding borrowings under the agreement were $340 million bearing interest at 3.859 percent, recorded as current notes payable – related parties on Consumers’ consolidated balance sheets.
NorthStar Clean Energy’s Supplier Financing Program: Under a supplier financing program, NorthStar Clean Energy agrees to pay a bank that is acting as its payment agent the stated amount of confirmed invoices from participating suppliers on the original maturity dates of the invoices. The bank is required to pay the supplier invoices that have been confirmed as valid under the program in full within 135 days of the invoice date. NorthStar Clean Energy does not provide collateral or a guarantee to the bank in support of its payment obligations under the agreement, nor does it pay a fee for the service. NorthStar Clean Energy or the bank may terminate the supplier financing program agreement upon 30 days prior written notice to the other party. Obligations under this program are accounted for in accounts payable on CMS Energy’s consolidated balance sheets.
Presented in the following table is the activity under NorthStar Clean Energy’s supplier financing program during the year ended December 31, 2025
In Millions
Year Ended December 3120252024
Balance of payables under suppler financing program at beginning of period$22 $— 
Payables confirmed158 22 
Payments and other adjustments(102)— 
Balance of payables under suppler financing program at end of period$78 $22 
Dividend Restrictions: At December 31, 2025, payment of dividends by CMS Energy on its common stock was limited to $8.9 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at December 31, 2025, Consumers had $2.5 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, 2025, Consumers paid $898 million in dividends on its common stock to CMS Energy.
Capitalization: The authorized capital stock of CMS Energy consists of:
350 million shares of CMS Energy Common Stock, par value $0.01 per share
10 million shares of CMS Energy Preferred Stock, par value $0.01 per share
Issuance of Common Stock: In 2023, CMS Energy entered into an equity offering program under which it may sell shares of its common stock having an aggregate sales price of up to $1 billion in privately negotiated transactions, in “at the market” offerings, or through forward sales transactions.
Under the forward sales transactions, CMS Energy may either settle physically by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or settle net by delivering or receiving cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock.
As of December 31, 2024, CMS Energy had 0.4 million shares contracted under forward sale agreements at a weighted average initial forward price of $69.43 per share. During the year ended December 31, 2025, CMS Energy entered into forward sale agreements for approximately 6.7 million shares at a weighted average initial forward price of $71.08 per share. During the same period, CMS Energy settled forward sale contracts under this program by issuing approximately 7.0 million shares at a weighted average price of $71.16 per share, resulting in net proceeds of $497 million. Following these transactions, outstanding forward contracts under the program have an aggregate sales price of $8 million, maturing November 30, 2026.
The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle or net cash settle the contracts as of December 31, 2025, it would not have been required to deliver shares or pay cash.
Preferred Stock: CMS Energy’s Series C preferred stock is traded on the New York Stock Exchange under the symbol CMS PRC. Depositary shares represent a 1/1000th interest in a share of its Series C preferred stock. The Series C preferred stock has no maturity or mandatory redemption date and is not redeemable at the option of the holders. CMS Energy may, at its option, redeem the Series C preferred stock, in whole or in part, at any time on or after July 15, 2026. The Series C preferred stock ranks senior to CMS Energy’s common stock with respect to dividend rights and distribution rights upon liquidation. Presented in the following table are details of CMS Energy’s Series C preferred stock at December 31, 2025 and 2024:
Depositary Share Par Value Depositary Share Optional Redemption PriceNumber of Depositary Shares AuthorizedNumber of Depositary Shares Outstanding
Cumulative, redeemable perpetual$25 $25 9,200,000 9,200,000 
Preferred Stock of Subsidiary: Consumers’ preferred stock is traded on the New York Stock Exchange under the symbol CMS-PB. Presented in the following table are details of Consumers’ preferred stock at December 31, 2025 and 2024:
Par ValueOptional Redemption PriceNumber of Shares AuthorizedNumber of Shares Outstanding
Cumulative, with no mandatory redemption
$100 $110 7,500,000 373,148 
Consumers Energy Company  
Debt Instrument [Line Items]  
Financings and Capitalization Financings and Capitalization
Presented in the following table is CMS Energy’s long-term debt at December 31:
In Millions, Except Interest Rate and Maturity
Interest Rate
(%)
Maturity20252024
CMS Energy, including Consumers
CMS Energy, parent only
Senior notes3.600 2025$— $250 
3.000 2026300 300 
2.950 2027275 275 
3.450 2027350 350 
4.700 2043250 250 
4.875 2044300 300 
$1,475 $1,725 
Convertible senior notes1
3.375 
2
2028$800 $800 
3.125 
3
20311,000 — 
$1,800 $800 
Junior subordinated notes4
4.750 
5
2050$500 $500 
3.750 
6
2050400 400 
6.500 
7
20551,000 — 
5.625 2078200 200 
5.875 2078280 280 
5.875 2079630 630 
$3,010 $2,010 
Term loan facilities variable2025$— $90 
variable2025— 400 
$— $490 
Total CMS Energy, parent only$6,285 $5,025 
CMS Energy subsidiaries
Consumers$12,196 $11,370 
NorthStar Clean Energy
Revolving credit facilityvariable
8
2028235 150 
Construction financing agreement9
variableFive years after conversion date223 — 
Total principal amount outstanding$18,939 $16,545 
Current amounts(950)(1,192)
Unamortized discounts(28)(29)
Unamortized issuance costs(154)(130)
Total CMS Energy long-term debt$17,807 $15,194 
1Holders of the convertible senior notes may convert their notes at their option in accordance with the conditions outlined in the related indentures. CMS Energy will settle conversions of the notes in accordance with the terms outlined in the related indentures. The conversion rate will be subject to adjustment for
anti‑dilutive events and fundamental change and redemption provisions as described in the related indentures. There are no sinking fund requirements for the notes.
2At December 31, 2025, the conversion price for the notes was $73.61 per share of common stock. Unamortized debt costs associated with this issuance were $6 million at December 31, 2025 and $9 million at December 31, 2024.
3At December 31, 2025, the conversion price for the notes was $90.61 per share of common stock. Unamortized debt costs associated with this issuance were $12 million at December 31, 2025.
4These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.
5On 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.
6On 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.
7On June 1, 2035, and every five years thereafter, the notes will reset to an interest rate equal to the five‑year treasury rate plus 1.961 percent.
8Loans under this facility have an interest rate of one-month Term SOFR plus 1.750 percent less an adjustment of 0.050 percent for green credit advances. At December 31, 2025, the weighted-average interest rate for the loans issued under this facility was 5.436 percent.
9Loans under this facility have an interest rate of one-month Term SOFR plus 2.250 percent. At December 31, 2025, the weighted-average interest rate for the loans issued under this facility was 6.476 percent. At completion of project construction, scheduled for the first half of 2026, a portion of this financing will convert into a term loan that will mature five years after the conversion date.
Presented in the following table is Consumers’ long-term debt at December 31:
In Millions, Except Interest Rate and Maturity
Interest Rate
(%)
Maturity20252024
Consumers
First mortgage bonds5.240 2026$115 $115 
3.680 2027100 100 
3.390 202735 35 
4.650 2028425 425 
3.800 2028300 300 
4.900 2029500 500 
5.070 202950 50 
4.600 2029600 600 
4.700 2030700 700 
4.500 2031500 — 
5.170 203295 95 
3.600 2032350 350 
3.180 2032100 100 
4.625 2033700 700 
5.050 2035625 — 
5.800 2035175 175 
5.380 2037140 140 
3.520 2037335 335 
4.010 2038215 215 
6.170 204050 50 
4.970 204050 50 
4.310 2042263 263 
3.950 2043425 425 
4.100 2045250 250 
3.250 2046450 450 
3.950 2047350 350 
4.050 2048550 550 
4.350 2049550 550 
3.750 2050300 300 
3.100 2050550 550 
3.500 2051575 575 
2.650 2052300 300 
4.200 2052450 450 
3.860 205250 50 
4.280 2057185 185 
2.500 2060525 525 
4.350 2064250 250 
variable
1
206976 76 
variable
1
2070134 134 
variable
1
2070127 127 
$12,520 $11,395 
In Millions, Except Interest Rate and Maturity
Interest Rate
(%)
Maturity20252024
Tax-exempt revenue bonds0.875 
2
2035$35 $35 
3.350 
3
204975 75 
$110 $110 
2014 Securitization bonds3.528 
4
2029
5
$81 $112 
2023 Securitization bonds5.281 
6
2028-2031
5
504 588 
$585 $700 
Total principal amount outstanding$13,215 $12,205 
Current amounts(573)(452)
Long-term debt – related parties7 principal amount outstanding
2043-2060(1,019)(835)
Unamortized discounts(26)(27)
Unamortized issuance costs(73)(73)
Total long-term debt$11,524 $10,818 
1The variable-rate bonds bear interest quarterly at a rate of three‑month SOFR minus 0.038 percent, subject to a zero‑percent floor. At December 31, 2025, the interest rates were 3.685 percent for bonds due September 2069, 3.851 percent for bonds due May 2070, and 3.897 percent for bonds due October 2070. The interest rate for the variable-rate bonds at December 31, 2024 were 4.320 percent, 4.483 percent, and 4.551 percent, respectively. 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, 2025.
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, 2027.
4The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2014 Securitization Funding, was 3.528 percent at December 31, 2025 and 2024.
5Principal and interest payments are made semiannually.
6The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2023 Securitization Funding, was 5.281 percent at December 31, 2025 and 5.322 percent at December 31, 2024.
7Long-term debt – related parties reflects Consumers’ outstanding debt held by its parent as a result of CMS Energy’s repurchase of Consumers’ first mortgage bonds. Unamortized discounts associated with the repurchase of Consumers’ first mortgage bonds were $5 million at December 31, 2025 and 2024. Unamortized issuance costs were $9 million at December 31, 2025 and $7 million at December 31, 2024.
Financings: Presented in the following table is a summary of major long-term debt issuances during 2025:
Principal
(In Millions)
Interest Rate (%)Issuance DateMaturity Date
CMS Energy, parent only
Junior subordinated notes$1,000 6.500 February 2025June 2055
Term loan credit agreement110 variableFebruary 2025December 2025
Convertible senior notes1,000 3.125 November 2025May 2031
Total CMS Energy, parent only$2,110 
NorthStar Clean Energy
Construction financing agreement$223 variableFebruary 2025
Five years after conversion date
Total NorthStar Clean Energy$223 
Consumers
First mortgage bonds$500 4.500 May 2025January 2031
First mortgage bonds625 5.050 May 2025May 2035
Total Consumers$1,125 
Total CMS Energy$3,458 
Retirements: Presented in the following table is a summary of major long-term debt retirements during 2025:
Principal
(In Millions)
Interest Rate (%)Retirement DateMaturity Date
CMS Energy, parent only
Term loan credit agreement$400 variableFebruary 2025September 2025
Term loan credit agreement200 variableFebruary 2025December 2025
Senior notes250 3.600 November 2025November 2025
Total CMS Energy, parent only$850 
Total CMS Energy$850 
CMS Energy’s Purchase of Consumers’ First Mortgage Bonds: CMS Energy purchased Consumers’ first mortgage bonds with a principal balance of $184 million during 2025 in exchange for cash of $109 million. On a consolidated basis, CMS Energy’s repurchase of Consumers’ first mortgage bonds was accounted for as a debt extinguishment and resulted in a pre-tax gain of $72 million during 2025, which was recorded in other income on CMS Energy’s consolidated statements of income. Interest expense related to the repurchased bonds was $28 million for the year ended December 31, 2025, which was recorded in interest expense – related parties on Consumers’ consolidated statements of income.
In 2024, CMS Energy purchased Consumers’ first mortgage bonds with a principal balance of $404 million in exchange for cash of $289 million. On a consolidated basis, CMS Energy’s repurchase of Consumers’ first mortgage bonds resulted in a pre-tax gain of $110 million for the year ended December 31, 2024. Interest expense related to the repurchased bonds was $19 million for the year ended December 31, 2024.
In 2023, CMS Energy purchased Consumers’ first mortgage bonds with a principal balance of $431 million in exchange for cash of $293 million. On a consolidated basis, CMS Energy’s repurchase of Consumers’ first mortgage bonds resulted in a pre-tax gain of $131 million for the year ended
December 31, 2023. Interest expense related to the repurchased bonds was $5 million for the year ended December 31, 2023.
Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. Its short-term authorization ends on May 2, 2026. In January 2026, Consumers filed an application with FERC for authority to issue long-term and short-term debt securities between May 1, 2026 and April 30, 2028.
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 twotimes interest coverage ratio and having sufficient unfunded net property additions.
Securitization Bonds: Certain regulatory assets held by Consumers’ subsidiaries, Consumers 2014 Securitization Funding and Consumers 2023 Securitization Funding, collateralize Consumers’ securitization bonds. Consumers 2014 Securitization Funding and Consumers 2023 Securitization Funding are distinct subsidiaries. The bondholders of each entity have no recourse to the other’s assets or the assets of Consumers. Consumers collects securitization surcharges to cover the principal and interest on the bonds as well as certain other qualified costs. The surcharges collected by Consumers on behalf of each entity are remitted to that subsidiary’s account and are not available to creditors of Consumers or creditors of Consumers’ affiliates other than the subsidiary that issued the bonds.
Debt Maturities: At December 31, 2025, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20262027202820292030
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$300 $625 $800 $— $— 
NorthStar Clean Energy77 — 235 — — 
Consumers
573 263 843 1,256 812 
Total CMS Energy$950 $888 $1,878 $1,256 $812 
Consumers
Long-term debt$573 $263 $843 $1,256 $812 
Credit Facilities: The following credit facilities with banks were available at December 31, 2025:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
Unsecured revolving credit facility, expiring November 20301
$750 $— $35 $715 
Unsecured letter of credit facility, expiring September 2026
50 — 50 — 
NorthStar Clean Energy
Secured revolving credit facility, expiring May 20282
$250 $235 $10 $
Secured letter of credit facility, expiring September 20283
37 — 37 — 
Secured letter of credit facility4
19 — 12 
Consumers
Secured revolving credit facility, expiring November 20305,6
$1,100 $— $$1,094 
Secured revolving credit facility, expiring November 20285,6
300 — — 300 
Secured letter of credit facility, expiring May 20275
100 — 100 — 
Unsecured letter of credit facility, expiring March 202850 — 43 
Unsecured letter of credit facility7
100 — 97 
Unsecured letter of credit facility7
100 — 100 — 
1There were no borrowings under this facility during the year ended December 31, 2025.
2Obligations under this facility are secured by certain pledged equity interests in subsidiaries of NorthStar Clean Energy; under the terms of this facility, the interests may not be sold by NorthStar Clean Energy unless there is an agreed-upon substitution for the pledged equity interests. At December 31, 2025, the net book value of the pledged equity interests was $514 million. Also under the terms of this facility, NorthStar Clean Energy may be restricted from remitting cash dividends to CMS Energy in the event of default.
3This letter of credit facility is available to a subsidiary of Aviator Wind Equity Holdings and is secured by assets of Aviator Wind. For more information regarding Aviator Wind Equity Holdings and Aviator Wind, see Note 19, Variable Interest Entities.
4The letter of credit facility is available to certain subsidiaries of NorthStar Clean Energy. The letter of credit facility is secured under a construction-to-term financing agreement and will expire five years after the term conversion date.
5Obligations under these facilities are secured by first mortgage bonds of Consumers.
6There were no borrowings under these facilities during the year ended December 31, 2025.
7Uncommitted letter of credit facility with automatic renewal provisions and therefore no expiration.
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, 2025, there were no commercial paper notes outstanding under this program.
In December 2025, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million at an interest rate of the prior month’s average onemonth Term SOFR minus 0.100 percent. At December 31, 2025, outstanding borrowings under the agreement were $340 million bearing interest at 3.859 percent, recorded as current notes payable – related parties on Consumers’ consolidated balance sheets.
Dividend Restrictions: At December 31, 2025, payment of dividends by CMS Energy on its common stock was limited to $8.9 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at December 31, 2025, Consumers had $2.5 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, 2025, Consumers paid $898 million in dividends on its common stock to CMS Energy.
Capitalization: The authorized capital stock of CMS Energy consists of:
350 million shares of CMS Energy Common Stock, par value $0.01 per share
10 million shares of CMS Energy Preferred Stock, par value $0.01 per share
Issuance of Common Stock: In 2023, CMS Energy entered into an equity offering program under which it may sell shares of its common stock having an aggregate sales price of up to $1 billion in privately negotiated transactions, in “at the market” offerings, or through forward sales transactions.
Under the forward sales transactions, CMS Energy may either settle physically by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or settle net by delivering or receiving cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock.
As of December 31, 2024, CMS Energy had 0.4 million shares contracted under forward sale agreements at a weighted average initial forward price of $69.43 per share. During the year ended December 31, 2025, CMS Energy entered into forward sale agreements for approximately 6.7 million shares at a weighted average initial forward price of $71.08 per share. During the same period, CMS Energy settled forward sale contracts under this program by issuing approximately 7.0 million shares at a weighted average price of $71.16 per share, resulting in net proceeds of $497 million. Following these transactions, outstanding forward contracts under the program have an aggregate sales price of $8 million, maturing November 30, 2026.
The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle or net cash settle the contracts as of December 31, 2025, it would not have been required to deliver shares or pay cash.
Preferred Stock: CMS Energy’s Series C preferred stock is traded on the New York Stock Exchange under the symbol CMS PRC. Depositary shares represent a 1/1000th interest in a share of its Series C preferred stock. The Series C preferred stock has no maturity or mandatory redemption date and is not redeemable at the option of the holders. CMS Energy may, at its option, redeem the Series C preferred stock, in whole or in part, at any time on or after July 15, 2026. The Series C preferred stock ranks senior to CMS Energy’s common stock with respect to dividend rights and distribution rights upon liquidation. Presented in the following table are details of CMS Energy’s Series C preferred stock at December 31, 2025 and 2024:
Depositary Share Par Value Depositary Share Optional Redemption PriceNumber of Depositary Shares AuthorizedNumber of Depositary Shares Outstanding
Cumulative, redeemable perpetual$25 $25 9,200,000 9,200,000 
Preferred Stock of Subsidiary: Consumers’ preferred stock is traded on the New York Stock Exchange under the symbol CMS-PB. Presented in the following table are details of Consumers’ preferred stock at December 31, 2025 and 2024:
Par ValueOptional Redemption PriceNumber of Shares AuthorizedNumber of Shares Outstanding
Cumulative, with no mandatory redemption
$100 $110 7,500,000 373,148 
NorthStar Clean Energy  
Debt Instrument [Line Items]  
Financings and Capitalization
NorthStar Clean Energy’s Supplier Financing Program: Under a supplier financing program, NorthStar Clean Energy agrees to pay a bank that is acting as its payment agent the stated amount of confirmed invoices from participating suppliers on the original maturity dates of the invoices. The bank is required to pay the supplier invoices that have been confirmed as valid under the program in full within 135 days of the invoice date. NorthStar Clean Energy does not provide collateral or a guarantee to the bank in support of its payment obligations under the agreement, nor does it pay a fee for the service. NorthStar Clean Energy or the bank may terminate the supplier financing program agreement upon 30 days prior written notice to the other party. Obligations under this program are accounted for in accounts payable on CMS Energy’s consolidated balance sheets.
Presented in the following table is the activity under NorthStar Clean Energy’s supplier financing program during the year ended December 31, 2025
In Millions
Year Ended December 3120252024
Balance of payables under suppler financing program at beginning of period$22 $— 
Payables confirmed158 22 
Payments and other adjustments(102)— 
Balance of payables under suppler financing program at end of period$78 $22 
v3.25.4
Fair Value Measurements
12 Months Ended
Dec. 31, 2025
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 312025202420252024
Assets1
Cash equivalents$154 $27 $— $— 
Restricted cash equivalents106 75 86 75 
Nonqualified deferred compensation plan assets36 34 27 25 
Derivative instruments
Total assets$298 $138 $115 $102 
Liabilities1
Nonqualified deferred compensation plan liabilities$36 $34 $27 $25 
Derivative instruments— — — 
Total liabilities$39 $34 $27 $25 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 and 3.
Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity.
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are bought and sold only at the discretion of plan participants. The assets are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets.
Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 and 3.
The derivatives classified as Level 2 are interest rate swaps at NorthStar Clean Energy, which are valued using market-based inputs.
In February 2025, a subsidiary of NorthStar Clean Energy entered into floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with interest payments on certain future long‑term variable-rate debt. The interest rate swaps economically hedge the future variability of interest payments on debt with a notional amount of $109 million. Gains or losses on these swaps are reported in other expense on CMS Energy’s consolidated statements of income. The amount recorded in other expense was $3 million for the year ended December 31, 2025. The fair value of these swaps recorded in
other non-current liabilities on CMS Energy’s consolidated balance sheets totaled $3 million at December 31, 2025.
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. Consumers reports derivatives associated with FTRs in other current assets on its consolidated balance sheets.There was no material activity within the Level 3 category of derivatives during the periods presented.
Consumers Energy Company  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Measurements Fair Value Measurements
Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows:
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 inputs are observable, market-based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data.
Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities.
CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
December 312025202420252024
Assets1
Cash equivalents$154 $27 $— $— 
Restricted cash equivalents106 75 86 75 
Nonqualified deferred compensation plan assets36 34 27 25 
Derivative instruments
Total assets$298 $138 $115 $102 
Liabilities1
Nonqualified deferred compensation plan liabilities$36 $34 $27 $25 
Derivative instruments— — — 
Total liabilities$39 $34 $27 $25 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 and 3.
Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity.
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are bought and sold only at the discretion of plan participants. The assets are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets.
Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 and 3.
The derivatives classified as Level 2 are interest rate swaps at NorthStar Clean Energy, which are valued using market-based inputs.
In February 2025, a subsidiary of NorthStar Clean Energy entered into floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with interest payments on certain future long‑term variable-rate debt. The interest rate swaps economically hedge the future variability of interest payments on debt with a notional amount of $109 million. Gains or losses on these swaps are reported in other expense on CMS Energy’s consolidated statements of income. The amount recorded in other expense was $3 million for the year ended December 31, 2025. The fair value of these swaps recorded in
other non-current liabilities on CMS Energy’s consolidated balance sheets totaled $3 million at December 31, 2025.
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. Consumers reports derivatives associated with FTRs in other current assets on its consolidated balance sheets.There was no material activity within the Level 3 category of derivatives during the periods presented.
v3.25.4
Financial Instruments
12 Months Ended
Dec. 31, 2025
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 6, Fair Value Measurements.
In Millions
December 31, 2025December 31, 2024
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$$$— $— $$$$— $— $
Liabilities
Long-term debt2
18,757 17,645 2,042 13,663 1,940 16,386 14,876 1,018 11,952 1,906 
Long-term payables3
— — — — 
Consumers
Assets
Long-term receivables1
$$$— $— $$$$— $— $
Notes receivable – related party4
90 90 — — 90 94 94 — — 94 
Liabilities
Long-term debt5
12,097 11,031 — 9,091 1,940 11,270 9,940 — 8,034 1,906 
Long-term debt – related party6
1,005 657 — 657 — 823 549 — 549 — 
Long-term payables— — — — 
1Includes current portion of long-term accounts receivable and notes receivable of $3 million at December 31, 2025 and $4 million at December 31, 2024.
2Includes current portion of long-term debt of $950 million at December 31, 2025 and $1.2 billion at December 31, 2024.
3Includes current portion of long-term payables of $2 million at December 31, 2025 and 2024.
4Includes current portion of notes receivable – related party of $7 million at December 31, 2025 and 2024. For more information on notes receivable – related party, see Note 18, Related-party Transactions—Consumers
5Includes current portion of long-term debt of $573 million at December 31, 2025 and $452 million at December 31, 2024.
6For more information on CMS Energy’s repurchases of Consumers’ first mortgage bonds, see Note 5, Financings and Capitalization—CMS Energy’s Purchase of Consumers’ First Mortgage Bonds.
Notes receivable – related party represents Consumers’ portion of the DB SERP demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028.
Consumers Energy Company  
Financial Instruments [Line Items]  
Financial Instruments Financial Instruments
Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 6, Fair Value Measurements.
In Millions
December 31, 2025December 31, 2024
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$$$— $— $$$$— $— $
Liabilities
Long-term debt2
18,757 17,645 2,042 13,663 1,940 16,386 14,876 1,018 11,952 1,906 
Long-term payables3
— — — — 
Consumers
Assets
Long-term receivables1
$$$— $— $$$$— $— $
Notes receivable – related party4
90 90 — — 90 94 94 — — 94 
Liabilities
Long-term debt5
12,097 11,031 — 9,091 1,940 11,270 9,940 — 8,034 1,906 
Long-term debt – related party6
1,005 657 — 657 — 823 549 — 549 — 
Long-term payables— — — — 
1Includes current portion of long-term accounts receivable and notes receivable of $3 million at December 31, 2025 and $4 million at December 31, 2024.
2Includes current portion of long-term debt of $950 million at December 31, 2025 and $1.2 billion at December 31, 2024.
3Includes current portion of long-term payables of $2 million at December 31, 2025 and 2024.
4Includes current portion of notes receivable – related party of $7 million at December 31, 2025 and 2024. For more information on notes receivable – related party, see Note 18, Related-party Transactions—Consumers
5Includes current portion of long-term debt of $573 million at December 31, 2025 and $452 million at December 31, 2024.
6For more information on CMS Energy’s repurchases of Consumers’ first mortgage bonds, see Note 5, Financings and Capitalization—CMS Energy’s Purchase of Consumers’ First Mortgage Bonds.
Notes receivable – related party represents Consumers’ portion of the DB SERP demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028.
v3.25.4
Plant, Property, and Equipment
12 Months Ended
Dec. 31, 2025
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, Except as Noted
December 31Estimated
Depreciable
Life in Years
20252024
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 – 125
$36,120 $33,434 
NorthStar Clean Energy
Independent power production1
3 – 40
1,585 1,452 
Assets under finance leases2
55 45 
Other
3 – 5
Plant, property, and equipment, gross$37,763 $34,932 
Construction work in progress3,052 2,098 
Accumulated depreciation and amortization(10,135)(9,569)
Total plant, property, and equipment3
$30,680 $27,461 
Consumers
Plant, property, and equipment, gross
Electric
Generation4
15 – 125
$7,171 $6,576 
Distribution
15 – 75
13,360 12,135 
Other
5 – 55
1,209 1,307 
Assets under finance leases2
131 119 
Gas
Distribution
20 – 85
8,553 7,942 
Transmission
17 – 75
3,236 3,081 
Underground storage facilities5
29 – 75
1,535 1,405 
Other
5 – 55
886 828 
Assets under finance leases2
12 
Other non-utility property
3 – 51
31 29 
Plant, property, and equipment, gross$36,120 $33,434 
Construction work in progress6
2,354 1,766 
Accumulated depreciation and amortization(9,842)(9,310)
Total plant, property, and equipment3
$28,632 $25,890 
1A portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 9, Leases.
2For information regarding the amortization terms of CMS Energy’s and Consumers’ assets under finance leases, see Note 9, Leases.
3Consumers’ plant additions were $3.1 billion for the year ended December 31, 2025 and $2.1 billion for the year ended December 31, 2024. Consumers’ plant retirements were $387 million for the year ended December 31, 2025 and $390 million for the year ended December 31, 2024.
4Includes 13 hydroelectric dams that Consumers has agreed to sell, contingent upon MPSC and FERC approval. For more information, see Note 20, Exit Activities and Asset Sales.
5Underground storage includes base natural gas of $24 million at December 31, 2025 and $26 million for the year ended December 31, 2024. Base natural gas is not subject to depreciation.
6For the year ended December 31, 2025, Consumers fully impaired certain development assets totaling $20 million. Of this amount, $15 million relates to two early-phase renewable natural gas development projects that have been paused indefinitely. The remaining impairment charge was deferred as a regulatory asset and will be recovered through the Renewable Energy Plan.
Intangible Assets: Included in net plant, property, and equipment are intangible assets. Presented in the following table are details about Consumers’ intangible assets:
In Millions, Except as Noted
DescriptionAmortization Life in YearsDecember 31, 2025December 31, 2024
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
Consumers
Software development
3 – 15
$649 $492 $679 $481 
Rights of way
50 – 85
274 72 253 68 
Franchises and consents
5 – 50
16 12 16 11 
Leasehold improvements
various2
15 13 
Other intangiblesvarious33 17 28 16 
Total$987 $602 $989 $583 
1Consumers’ intangible asset additions were $62 million for the year ended December 31, 2025 and $90 million for the year ended December 31, 2024. Consumers’ intangible asset retirements were $64 million for the year ended December 31, 2025 and $153 million for the year ended December 31, 2024.
2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.
Capitalization: CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general ratemaking process.
With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability.
Software: CMS Energy and Consumers capitalize the costs to purchase and develop internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware.
AFUDC: Consumers capitalizes AFUDC on regulated major construction projects. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset. Presented in the following table are Consumers’ average AFUDC capitalization rates:
Years Ended December 31202520242023
Electric6.9%6.9%6.5%
Gas5.95.85.8
Assets Under Finance Leases: Presented in the following table are further details about changes in CMS Energy’s and Consumers’ assets under finance leases:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Balance at beginning of period$176 $136 
Additions53 55 
Net retirements and other adjustments(36)(15)
Balance at end of period$193 $176 
Consumers
Balance at beginning of period$131 $112 
Additions22 34 
Net retirements and other adjustments(15)(15)
Balance at end of period$138 $131 
Assets under finance leases are presented as gross amounts. CMS Energy’s, including Consumers’, accumulated amortization of assets under finance leases was $53 million at December 31, 2025 and $57 million at December 31, 2024. Consumers’ accumulated amortization of assets under finance leases was $48 million at December 31, 2025 and $55 million at December 31, 2024.
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 3120252024
CMS Energy, including Consumers
Utility plant assets$9,838 $9,307 
Non-utility plant assets297 262 
Consumers
Utility plant assets$9,838 $9,307 
Non-utility plant assets
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 31202520242023
Electric utility property3.6%3.6%3.8%
Gas utility property2.52.52.8
Other property7.07.17.8
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 31202520242023
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$1,099 $1,041 $1,050 
Amortization expense
Software75 81 92 
Other intangible assets
Other regulatory assets— 
Securitized regulatory assets117 111 33 
Total depreciation and amortization expense$1,306 $1,240 $1,180 
Consumers
Depreciation expense – plant, property, and equipment$1,047 $992 $1,007 
Amortization expense
Software75 81 92 
Other intangible assets
Other regulatory assets— 
Securitized regulatory assets117 111 33 
Total depreciation and amortization expense$1,254 $1,191 $1,137 
Presented in the following table is Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20262027202820292030
Consumers
Intangible asset amortization expense$77 $66 $55 $50 $49 
Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2025:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3%51.0%various
Utility plant in service$1,726$620$481
Accumulated provision for depreciation(916)(253)(97)
Plant under construction3717
Net investment$810$404$401
Consumers includes its share of the direct expenses of the jointly owned plants in operating expenses. Consumers shares operation, maintenance, and other expenses of these jointly owned utility facilities in proportion to each participant’s undivided ownership interest. Consumers is required to provide only its share of financing for the jointly owned utility facilities.
Consumers plans to retire J.H. Campbell and, in 2022, removed an amount representing the projected remaining book value of the electric generating units upon their retirement from total plant, property, and equipment and recorded it as a regulatory asset on its consolidated balance sheets. The retirement of J.H. Campbell is subject to temporary extensions under emergency orders issued by the U.S. Secretary of Energy. For additional details, see Note 3, Regulatory Matters.
Consumers and DTE Electric engaged in litigation with TAES and Toshiba related to TAES’ incomplete, defective, and nonconforming work during a major overhaul and upgrade of Ludington. For additional details on this dispute, see Note 4, Contingencies and Commitments—Ludington Overhaul Contract Dispute.
Consumers Energy Company  
Public Utility, Property, Plant and Equipment [Line Items]  
Plant, Property, and Equipment Plant, Property, and Equipment
Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment:
In Millions, Except as Noted
December 31Estimated
Depreciable
Life in Years
20252024
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 – 125
$36,120 $33,434 
NorthStar Clean Energy
Independent power production1
3 – 40
1,585 1,452 
Assets under finance leases2
55 45 
Other
3 – 5
Plant, property, and equipment, gross$37,763 $34,932 
Construction work in progress3,052 2,098 
Accumulated depreciation and amortization(10,135)(9,569)
Total plant, property, and equipment3
$30,680 $27,461 
Consumers
Plant, property, and equipment, gross
Electric
Generation4
15 – 125
$7,171 $6,576 
Distribution
15 – 75
13,360 12,135 
Other
5 – 55
1,209 1,307 
Assets under finance leases2
131 119 
Gas
Distribution
20 – 85
8,553 7,942 
Transmission
17 – 75
3,236 3,081 
Underground storage facilities5
29 – 75
1,535 1,405 
Other
5 – 55
886 828 
Assets under finance leases2
12 
Other non-utility property
3 – 51
31 29 
Plant, property, and equipment, gross$36,120 $33,434 
Construction work in progress6
2,354 1,766 
Accumulated depreciation and amortization(9,842)(9,310)
Total plant, property, and equipment3
$28,632 $25,890 
1A portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 9, Leases.
2For information regarding the amortization terms of CMS Energy’s and Consumers’ assets under finance leases, see Note 9, Leases.
3Consumers’ plant additions were $3.1 billion for the year ended December 31, 2025 and $2.1 billion for the year ended December 31, 2024. Consumers’ plant retirements were $387 million for the year ended December 31, 2025 and $390 million for the year ended December 31, 2024.
4Includes 13 hydroelectric dams that Consumers has agreed to sell, contingent upon MPSC and FERC approval. For more information, see Note 20, Exit Activities and Asset Sales.
5Underground storage includes base natural gas of $24 million at December 31, 2025 and $26 million for the year ended December 31, 2024. Base natural gas is not subject to depreciation.
6For the year ended December 31, 2025, Consumers fully impaired certain development assets totaling $20 million. Of this amount, $15 million relates to two early-phase renewable natural gas development projects that have been paused indefinitely. The remaining impairment charge was deferred as a regulatory asset and will be recovered through the Renewable Energy Plan.
Intangible Assets: Included in net plant, property, and equipment are intangible assets. Presented in the following table are details about Consumers’ intangible assets:
In Millions, Except as Noted
DescriptionAmortization Life in YearsDecember 31, 2025December 31, 2024
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
Consumers
Software development
3 – 15
$649 $492 $679 $481 
Rights of way
50 – 85
274 72 253 68 
Franchises and consents
5 – 50
16 12 16 11 
Leasehold improvements
various2
15 13 
Other intangiblesvarious33 17 28 16 
Total$987 $602 $989 $583 
1Consumers’ intangible asset additions were $62 million for the year ended December 31, 2025 and $90 million for the year ended December 31, 2024. Consumers’ intangible asset retirements were $64 million for the year ended December 31, 2025 and $153 million for the year ended December 31, 2024.
2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.
Capitalization: CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general ratemaking process.
With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability.
Software: CMS Energy and Consumers capitalize the costs to purchase and develop internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware.
AFUDC: Consumers capitalizes AFUDC on regulated major construction projects. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset. Presented in the following table are Consumers’ average AFUDC capitalization rates:
Years Ended December 31202520242023
Electric6.9%6.9%6.5%
Gas5.95.85.8
Assets Under Finance Leases: Presented in the following table are further details about changes in CMS Energy’s and Consumers’ assets under finance leases:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Balance at beginning of period$176 $136 
Additions53 55 
Net retirements and other adjustments(36)(15)
Balance at end of period$193 $176 
Consumers
Balance at beginning of period$131 $112 
Additions22 34 
Net retirements and other adjustments(15)(15)
Balance at end of period$138 $131 
Assets under finance leases are presented as gross amounts. CMS Energy’s, including Consumers’, accumulated amortization of assets under finance leases was $53 million at December 31, 2025 and $57 million at December 31, 2024. Consumers’ accumulated amortization of assets under finance leases was $48 million at December 31, 2025 and $55 million at December 31, 2024.
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 3120252024
CMS Energy, including Consumers
Utility plant assets$9,838 $9,307 
Non-utility plant assets297 262 
Consumers
Utility plant assets$9,838 $9,307 
Non-utility plant assets
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 31202520242023
Electric utility property3.6%3.6%3.8%
Gas utility property2.52.52.8
Other property7.07.17.8
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 31202520242023
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$1,099 $1,041 $1,050 
Amortization expense
Software75 81 92 
Other intangible assets
Other regulatory assets— 
Securitized regulatory assets117 111 33 
Total depreciation and amortization expense$1,306 $1,240 $1,180 
Consumers
Depreciation expense – plant, property, and equipment$1,047 $992 $1,007 
Amortization expense
Software75 81 92 
Other intangible assets
Other regulatory assets— 
Securitized regulatory assets117 111 33 
Total depreciation and amortization expense$1,254 $1,191 $1,137 
Presented in the following table is Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20262027202820292030
Consumers
Intangible asset amortization expense$77 $66 $55 $50 $49 
Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2025:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3%51.0%various
Utility plant in service$1,726$620$481
Accumulated provision for depreciation(916)(253)(97)
Plant under construction3717
Net investment$810$404$401
Consumers includes its share of the direct expenses of the jointly owned plants in operating expenses. Consumers shares operation, maintenance, and other expenses of these jointly owned utility facilities in proportion to each participant’s undivided ownership interest. Consumers is required to provide only its share of financing for the jointly owned utility facilities.
Consumers plans to retire J.H. Campbell and, in 2022, removed an amount representing the projected remaining book value of the electric generating units upon their retirement from total plant, property, and equipment and recorded it as a regulatory asset on its consolidated balance sheets. The retirement of J.H. Campbell is subject to temporary extensions under emergency orders issued by the U.S. Secretary of Energy. For additional details, see Note 3, Regulatory Matters.
Consumers and DTE Electric engaged in litigation with TAES and Toshiba related to TAES’ incomplete, defective, and nonconforming work during a major overhaul and upgrade of Ludington. For additional details on this dispute, see Note 4, Contingencies and Commitments—Ludington Overhaul Contract Dispute.
v3.25.4
Leases
12 Months Ended
Dec. 31, 2025
Leases [Line Items]  
Leases Leases
Lessee
CMS Energy and Consumers lease various assets from third parties, including coal-carrying railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for several of their PPAs as leases.
CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their consolidated balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and service vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term.
CMS Energy and Consumers include future payments for all renewal options, fair market value extensions, and buyout provisions reasonably certain of exercise in their measurement of lease right-of-use assets and lease liabilities. In addition, certain leases for service vehicles contain end-of-lease adjustment clauses based on proceeds received from the sale or disposition of the vehicles. CMS Energy and Consumers also include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their coal-carrying railcar leases.
Most of Consumers’ PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a finance lease.
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
CMS Energy, including ConsumersConsumers
December 312025202420252024
Operating leases
Right-of-use assets1
$22$24$18$20
Lease liabilities
Current lease liabilities2
3333
Non-current lease liabilities3
19211517
Finance leases
Right-of-use assets1401199076
Lease liabilities4
Current lease liabilities6464
Non-current lease liabilities1351128169
Weighted-average remaining lease term (in years)
Operating leases20202019
Finance leases24261922
Weighted-average discount rate
Operating leases5.3%5.3%5.4%5.4%
Finance leases5
5.9%5.8%4.9%4.8%
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 $22 million, of which $1 million was current, at December 31, 2025 and 2024.
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 3120252024
CMS Energy, including Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets
Interest on lease liabilities18 16 
Variable lease costs115 107 
Short-term lease costs25 13 
Total lease costs$170 $148 
Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets
Interest on lease liabilities14 13 
Variable lease costs115 107 
Short-term lease costs24 12 
Total lease costs$163 $142 
Presented in the following table is supplemental cash flow information related to CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases17 15 
Cash used in financing activities for finance leases
Lease liabilities arising from obtaining right-of-use assets
Operating leases
Finance leases22 55 
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases14 13 
Cash used in financing activities for finance leases
Lease liabilities arising from obtaining right-of-use assets
Operating leases
Finance leases22 34 
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ noncancelable leases:
In Millions
Finance Leases
December 31, 2025Operating LeasesPipelines and PPAsLand and OtherTotal
CMS Energy, including Consumers
2026$$17 $$23 
202717 23 
202817 22 
202917 23 
203017 23 
2031 and thereafter27 200 202 
Total minimum lease payments$38 $87 $229 $316 
Less discount16 42 133 175 
Present value of minimum lease payments$22 $45 $96 $141 
Consumers
2026$$17 $$20 
202717 20 
202817 19 
202917 19 
203017 19 
2031 and thereafter22 72 74 
Total minimum lease payments$31 $87 $84 $171 
Less discount13 42 42 84 
Present value of minimum lease payments$18 $45 $42 $87 
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, 2025, lease revenue from these power sales agreements was $149 million, which included variable lease payments of $105 million. For the year ended December 31, 2024, lease revenue from these power sales agreements was $105 million, which included variable lease payments of $61 million. These non-cancelable operating leases expire in 2026; remaining minimum rental payments amount to $18 million.
Consumers has a natural gas transportation agreement with a subsidiary of CMS Energy that extends through 2038, related to a pipeline owned by Consumers. This agreement is accounted for as a direct finance lease and will automatically extend annually unless terminated by either party. The effects of the lease are eliminated on CMS Energy’s consolidated financial statements.
Minimum rental payments to be received under Consumers’ direct financing lease are $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, 2025, which does not include unearned income of $5 million.
Consumers Energy Company  
Leases [Line Items]  
Leases Leases
Lessee
CMS Energy and Consumers lease various assets from third parties, including coal-carrying railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for several of their PPAs as leases.
CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their consolidated balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and service vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term.
CMS Energy and Consumers include future payments for all renewal options, fair market value extensions, and buyout provisions reasonably certain of exercise in their measurement of lease right-of-use assets and lease liabilities. In addition, certain leases for service vehicles contain end-of-lease adjustment clauses based on proceeds received from the sale or disposition of the vehicles. CMS Energy and Consumers also include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their coal-carrying railcar leases.
Most of Consumers’ PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a finance lease.
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
CMS Energy, including ConsumersConsumers
December 312025202420252024
Operating leases
Right-of-use assets1
$22$24$18$20
Lease liabilities
Current lease liabilities2
3333
Non-current lease liabilities3
19211517
Finance leases
Right-of-use assets1401199076
Lease liabilities4
Current lease liabilities6464
Non-current lease liabilities1351128169
Weighted-average remaining lease term (in years)
Operating leases20202019
Finance leases24261922
Weighted-average discount rate
Operating leases5.3%5.3%5.4%5.4%
Finance leases5
5.9%5.8%4.9%4.8%
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 $22 million, of which $1 million was current, at December 31, 2025 and 2024.
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 3120252024
CMS Energy, including Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets
Interest on lease liabilities18 16 
Variable lease costs115 107 
Short-term lease costs25 13 
Total lease costs$170 $148 
Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets
Interest on lease liabilities14 13 
Variable lease costs115 107 
Short-term lease costs24 12 
Total lease costs$163 $142 
Presented in the following table is supplemental cash flow information related to CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases17 15 
Cash used in financing activities for finance leases
Lease liabilities arising from obtaining right-of-use assets
Operating leases
Finance leases22 55 
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases14 13 
Cash used in financing activities for finance leases
Lease liabilities arising from obtaining right-of-use assets
Operating leases
Finance leases22 34 
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ noncancelable leases:
In Millions
Finance Leases
December 31, 2025Operating LeasesPipelines and PPAsLand and OtherTotal
CMS Energy, including Consumers
2026$$17 $$23 
202717 23 
202817 22 
202917 23 
203017 23 
2031 and thereafter27 200 202 
Total minimum lease payments$38 $87 $229 $316 
Less discount16 42 133 175 
Present value of minimum lease payments$22 $45 $96 $141 
Consumers
2026$$17 $$20 
202717 20 
202817 19 
202917 19 
203017 19 
2031 and thereafter22 72 74 
Total minimum lease payments$31 $87 $84 $171 
Less discount13 42 42 84 
Present value of minimum lease payments$18 $45 $42 $87 
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, 2025, lease revenue from these power sales agreements was $149 million, which included variable lease payments of $105 million. For the year ended December 31, 2024, lease revenue from these power sales agreements was $105 million, which included variable lease payments of $61 million. These non-cancelable operating leases expire in 2026; remaining minimum rental payments amount to $18 million.
Consumers has a natural gas transportation agreement with a subsidiary of CMS Energy that extends through 2038, related to a pipeline owned by Consumers. This agreement is accounted for as a direct finance lease and will automatically extend annually unless terminated by either party. The effects of the lease are eliminated on CMS Energy’s consolidated financial statements.
Minimum rental payments to be received under Consumers’ direct financing lease are $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, 2025, which does not include unearned income of $5 million.
v3.25.4
Asset Retirement Obligations
12 Months Ended
Dec. 31, 2025
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 their hydroelectric facilities and certain gas wells that have an indeterminate life or for assets that have immaterial cumulative disposal costs, such as substation batteries.
CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers.
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
ARO DescriptionLong-lived Assets
Closure of coal ash disposal areasGenerating plants coal ash areas
Gas distribution cut, purge, and capGas distribution mains and services
Asbestos abatementElectric and gas utility plant
Closure of renewable generation assetsWind and solar generation facilities
Capping and partial filling of water intake lineGenerating plant water intake line
Gas wells plug and abandonGas transmission and storage
In May 2024, the EPA finalized a rule regulating CCR impoundments at electric generating facilities that became inactive prior to the effective date of a rule published in 2015 regulating CCRs under RCRA. Additionally, the EPA established groundwater monitoring, corrective action, closure, and post-closure care requirements for CCR surface impoundments and landfills closed prior to the effective date of the 2015 CCR rule, but that do not meet the closure technical and performance standards of the May 2024 rule. These include inactive CCR landfills that were previously exempted from regulation but that are now considered CCR management units.
In response to the new rule, Consumers has been performing its review of legacy impoundments and of other aspects of the 2024 rule in accordance with the timelines prescribed by the rule, including the requirement to determine and report the presence of any CCR management units to the EPA by February 2027. Consumers has been recording incremental AROs for legacy impoundments and CCR management units when a reasonable estimate of the fair value of the associated costs can be made, and the ultimate amount of any resulting ARO could be material. In February 2026, the EPA issued a final rule extending the compliance milestone schedule for CCR management units. This extension does not have a material impact on Consumers’ compliance strategy. Consumers has historically been authorized to recover in electric rates costs related to coal ash disposal sites.
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2024IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2025
CMS Energy, including Consumers
Consumers$694 $27 $(73)$32 $73 $753 
Renewable generation assets34 — — 39 
Total CMS Energy$728 $31 $(73)$33 $73 $792 
Consumers
Coal ash disposal areas$230 $— $(37)$10 $60 
1
$263 
Gas distribution cut, purge, and cap295 10 (13)15 — 307 
Asbestos abatement37 — (2)— 37 
Renewable generation assets105 17 — — 125 
Generating plant water intake line— — — 18 
2
19 
Gas wells plug and abandon27 — (21)(5)
Total Consumers$694 $27 $(73)$32 $73 $753 
1    The increase in the AROs associated with coal ash disposal areas was primarily the result of incremental remedies required by EGLE for certain ash disposal ponds and incremental AROs recorded in response to reviews of legacy CCR impoundments.
2    The increase in AROs associated with water intake lines, which were previously immaterial, was primarily the result of changes in the expected scope of required capping following the finalization of decommissioning plans with the local jurisdiction.
In Millions
Company and ARO DescriptionARO Liability 12/31/2023IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2024
CMS Energy, including Consumers
Consumers$739 $$(69)$33 $(10)$694 
Renewable generation assets32 — — — 34 
Total CMS Energy$771 $$(69)$35 $(10)$728 
Consumers
Coal ash disposal areas$268 $$(51)$12 $— $230 
Gas distribution cut, purge, and cap290 — (9)15 (1)295 
Asbestos abatement51 — (7)(9)37 
Renewable generation assets102 — — — 105 
Gas wells plug and abandon28 — (2)— 27 
Total Consumers$739 $$(69)$33 $(10)$694 
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 their hydroelectric facilities and certain gas wells that have an indeterminate life or for assets that have immaterial cumulative disposal costs, such as substation batteries.
CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers.
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
ARO DescriptionLong-lived Assets
Closure of coal ash disposal areasGenerating plants coal ash areas
Gas distribution cut, purge, and capGas distribution mains and services
Asbestos abatementElectric and gas utility plant
Closure of renewable generation assetsWind and solar generation facilities
Capping and partial filling of water intake lineGenerating plant water intake line
Gas wells plug and abandonGas transmission and storage
In May 2024, the EPA finalized a rule regulating CCR impoundments at electric generating facilities that became inactive prior to the effective date of a rule published in 2015 regulating CCRs under RCRA. Additionally, the EPA established groundwater monitoring, corrective action, closure, and post-closure care requirements for CCR surface impoundments and landfills closed prior to the effective date of the 2015 CCR rule, but that do not meet the closure technical and performance standards of the May 2024 rule. These include inactive CCR landfills that were previously exempted from regulation but that are now considered CCR management units.
In response to the new rule, Consumers has been performing its review of legacy impoundments and of other aspects of the 2024 rule in accordance with the timelines prescribed by the rule, including the requirement to determine and report the presence of any CCR management units to the EPA by February 2027. Consumers has been recording incremental AROs for legacy impoundments and CCR management units when a reasonable estimate of the fair value of the associated costs can be made, and the ultimate amount of any resulting ARO could be material. In February 2026, the EPA issued a final rule extending the compliance milestone schedule for CCR management units. This extension does not have a material impact on Consumers’ compliance strategy. Consumers has historically been authorized to recover in electric rates costs related to coal ash disposal sites.
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2024IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2025
CMS Energy, including Consumers
Consumers$694 $27 $(73)$32 $73 $753 
Renewable generation assets34 — — 39 
Total CMS Energy$728 $31 $(73)$33 $73 $792 
Consumers
Coal ash disposal areas$230 $— $(37)$10 $60 
1
$263 
Gas distribution cut, purge, and cap295 10 (13)15 — 307 
Asbestos abatement37 — (2)— 37 
Renewable generation assets105 17 — — 125 
Generating plant water intake line— — — 18 
2
19 
Gas wells plug and abandon27 — (21)(5)
Total Consumers$694 $27 $(73)$32 $73 $753 
1    The increase in the AROs associated with coal ash disposal areas was primarily the result of incremental remedies required by EGLE for certain ash disposal ponds and incremental AROs recorded in response to reviews of legacy CCR impoundments.
2    The increase in AROs associated with water intake lines, which were previously immaterial, was primarily the result of changes in the expected scope of required capping following the finalization of decommissioning plans with the local jurisdiction.
In Millions
Company and ARO DescriptionARO Liability 12/31/2023IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2024
CMS Energy, including Consumers
Consumers$739 $$(69)$33 $(10)$694 
Renewable generation assets32 — — — 34 
Total CMS Energy$771 $$(69)$35 $(10)$728 
Consumers
Coal ash disposal areas$268 $$(51)$12 $— $230 
Gas distribution cut, purge, and cap290 — (9)15 (1)295 
Asbestos abatement51 — (7)(9)37 
Renewable generation assets102 — — — 105 
Gas wells plug and abandon28 — (2)— 27 
Total Consumers$739 $$(69)$33 $(10)$694 
v3.25.4
Retirement Benefits
12 Months Ended
Dec. 31, 2025
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement Benefits
Benefit Plans: CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to eligible employees under a number of different plans. These plans include:
non‑contributory, qualified DB Pension Plans (closed to new non‑union participants as of July 1, 2003 and closed to new union participants as of September 1, 2005)
a non‑contributory, qualified DCCP for employees hired on or after July 1, 2003
benefits to certain management employees under a non‑contributory, nonqualified DB SERP (closed to new participants as of March 31, 2006)
a non‑contributory, nonqualified DC SERP for certain management employees hired or promoted on or after April 1, 2006
a contributory, qualified defined contribution 401(k) plan
health care and life insurance benefits under an OPEB Plan
DB Pension Plans: Participants in the pension plans include present and former employees of CMS Energy and Consumers, including certain present and former affiliates and subsidiaries. Pension plan trust assets are not distinguishable by company. Effective December 31, 2017, CMS Energy’s and Consumers’ then-existing pension plan was amended to include only retired and former employees already covered; this amended plan is referred to as DB Pension Plan B. Also effective December 31, 2017, active employees were moved to a newly created pension plan, referred to as DB Pension Plan A, whose benefits mirror those provided under DB Pension Plan B. Maintaining separate plans for the two groups allows CMS Energy and Consumers to employ a more targeted investment strategy and provides additional opportunities to mitigate risk and volatility.
DCCP: CMS Energy and Consumers provide an employer contribution to the DCCP 401(k) plan for employees hired on or after July 1, 2003. The contribution ranges from 5 percent to 10 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 $57 million for the year ended December 31, 2025, $53 million for the year ended December 31, 2024, and $51 million for the year ended December 31, 2023. DCCP expense for Consumers was $55 million for the year ended December 31, 2025, $52 million for the year ended December 31, 2024, and $50 million for the year ended December 31, 2023.
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. The trust assets are not considered plan assets under ASC 715. DB SERP rabbi trust earnings are taxable. Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Trust assets$122 $127 
ABO104 105 
Consumers
Trust assets$92 $95 
ABO76 76 
Neither CMS Energy nor Consumers made any contributions to the DB SERP in 2025 or 2024.
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 5 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 $18 million at December 31, 2025 and $17 million at December 31, 2024. DC SERP assets are included in other non‑current assets on CMS Energy’s and Consumers’ consolidated balance sheets. CMS Energy’s and Consumers’ DC SERP expense was $1 million for the years ended December 31, 2025, 2024, and 2023.
401(k) Plan: The 401(k) plan employer match equals 4 to 6 percent of employee eligible contributions based on an employee’s wages and class. The total 401(k) plan cost for CMS Energy, including Consumers, was $46 million for the year ended December 31, 2025, and $41 million for the years ended December 31, 2024 and 2023. The total 401(k) plan cost for Consumers was $44 million for the year ended December 31, 2025, $39 million for the year ended December 31, 2024, and $40 million for the year ended December 31, 2023.
Health-related OPEB Plan: Participants in the health-related OPEB Plan include 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 and hired before January 1, 2007 for non-union participants and hired before September 1, 2010 for union participants. 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 health-related OPEB Plan if hired before January 1, 2007 for non-union participants and hired before September 1, 2010 for union participants. Retiree health care costs were based on the assumption that costs would increase 8.00 percent in 2026 and 8.50 percent in 2025 for those under 65 and would increase 9.75 percent in 2026 and 10.25 percent in 2025 for those over 65. The rate of increase was assumed to decline to 4.75 percent by 2034 and thereafter for all retirees.
Assumptions: Presented in the following table are the weighted-average assumptions used in CMS Energy’s, including Consumers’, retirement benefit plans to determine benefit obligations and net periodic benefit cost:
December 31202520242023
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A5.58%5.73%5.05%
DB Pension Plan B5.285.594.95
DB SERP5.225.564.94
OPEB Plan5.505.695.02
Rate of compensation increase
DB Pension Plan A3.703.703.60
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A5.77%5.08%5.27%
DB SERP4
5.18
OPEB Plan5.855.125.31
Interest cost discount rate2,3
DB Pension Plan A5.434.935.12
DB Pension Plan B5.304.875.06
DB SERP5.294.875.06
OPEB Plan5.394.915.10
Expected long-term rate of return on plan assets5
DB Pension Plans7.307.507.20
OPEB Plan7.157.507.20
Rate of compensation increase
DB Pension Plan A3.703.603.60
DB SERP4
5.50
1The mortality assumption for benefit obligations and net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
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.
4The last active participant in the DB SERP retired in 2023. Thus, the determination of the associated net periodic benefit cost no longer assumes a service cost discount rate nor a rate of compensation increase.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning
of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.30 percent in 2025. The actual return on the assets of the DB Pension Plans was 12.7 percent in 2025, 3.6 percent in 2024, and 12.6 percent in 2023.
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 31202520242023202520242023
CMS Energy, including Consumers
Net periodic credit
Service cost$25 $28 $29 $$11 $12 
Interest cost114 109 112 43 43 44 
Expected return on plan assets(229)(234)(220)(111)(115)(103)
Amortization of:
Net loss11 12 12 12 
Prior service cost (credit)(34)(31)(41)
Settlement loss11 11 11 — — — 
Net periodic credit$(64)$(70)$(52)$(91)$(88)$(76)
Consumers
Net periodic credit
Service cost$24 $27 $28 $$11 $11 
Interest cost106 102 105 42 41 42 
Expected return on plan assets(215)(221)(208)(104)(107)(95)
Amortization of:
Net loss10 11 11 12 
Prior service cost (credit)(33)(30)(40)
Settlement loss11 11 11 — — — 
Net periodic credit$(60)$(66)$(49)$(84)$(81)$(70)
In Consumers’ electric and gas rate cases, the MPSC approved a mechanism allowing Consumers to defer for future recovery or refund pension and OPEB expenses above or below the amounts used to set existing rates. Amounts deferred will be collected from or refunded to customers over ten years. At December 31, 2025, CMS Energy, including Consumers, had deferred $3 million of pension costs and $6 million of OPEB credits under this mechanism related to 2025 expense. At December 31, 2024, CMS Energy, including Consumers, had deferred $15 million of pension credits and $11 million of OPEB credits under this mechanism related to 2024 expense. At December 31, 2023, CMS Energy, including Consumers, had deferred $11 million of pension credits and $23 million of OPEB costs under this mechanism related to 2023 expense.
CMS Energy and Consumers amortize net gains and losses in excess of 10 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 seven years for the year ended December 31, 2025, and eight years for the years ended December 31, 2024 and 2023. For DB Pension Plan B, the estimated period of amortization of gains and losses was 17 years for the years ended
December 31, 2025, 2024, and 2023. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2025, 2024, and 2023.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for OPEB in 2024. The estimated period of amortization of these new prior service costs is seven 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 fiveyear 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 31202520242025202420252024
CMS Energy, including Consumers
Benefit obligation at beginning of period$2,094 $2,195 $105 $114 $831 $900 
Service cost25 28 — — 11 
Interest cost109 104 43 43 
Plan amendments— — — — — (25)
Actuarial loss (gain)53 
1
(91)
1
(4)
1
(40)
1
Benefits paid(158)(142)(10)(10)(54)(58)
Benefit obligation at end of period$2,123 $2,094 $104 $105 $830 $831 
Plan assets at fair value at beginning of period$2,964 $3,004 $— $— $1,588 $1,559 
Actual return on plan assets371 102 — — 197 86 
Company contribution— — 10 10 — — 
Actual benefits paid(158)(142)(10)(10)(52)(57)
Plan assets at fair value at end of period$3,177 $2,964 $— $— $1,733 $1,588 
Funded status$1,054 
2
$870 
2
$(104)$(105)$903 $757 
Consumers
Benefit obligation at beginning of period$76 $83 $801 $867 
Service cost— — 11 
Interest cost42 41 
Plan amendments— — — (24)
Actuarial loss (gain)(4)
1
(38)
1
Benefits paid(7)(7)(51)(56)
Benefit obligation at end of period$76 $76 $801 $801 
Plan assets at fair value at beginning of period$— $— $1,479 $1,453 
Actual return on plan assets— — 184 80 
Company contribution— — 
Actual benefits paid(7)(7)(50)(54)
Plan assets at fair value at end of period$— $— $1,613 $1,479 
Funded status$(76)$(76)$812 $678 
1The actuarial losses for 2025 for the DB Pension Plans and OPEB Plans were primarily the result of lower discount rates. The actuarial gains for 2024 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $1.0 billion at December 31, 2025 and $836 million at December 31, 2024.
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120252024
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$1,054 $870 
OPEB Plan903 757 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP94 95 
Consumers
Non-current assets
DB Pension Plans$1,009 $836 
OPEB Plan812 678 
Current liabilities
DB SERP
Non-current liabilities
DB SERP69 69 
The ABO for the DB Pension Plans was $1.9 billion at December 31, 2025 and $1.9 billion at December 31, 2024. At December 31, 2025 and 2024, the PBO and ABO did not exceed plan assets for any of the defined benefit pension plans.
Items Not Yet Recognized as a Component of Net Periodic Benefit Cost: Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets see Note 3, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312025202420252024
CMS Energy, including Consumers
Regulatory assets
Net loss$548 $653 $93 $176 
Prior service cost (credit)12 (61)(94)
Regulatory assets$557 $665 $32 $82 
AOCI
Net loss (gain)57 60 (7)(3)
Prior service credit— — (2)(2)
Total amounts recognized in regulatory assets and AOCI$614 $725 $23 $77 
Consumers
Regulatory assets
Net loss$548 $653 $93 $176 
Prior service cost (credit)12 (61)(94)
Regulatory assets$557 $665 $32 $82 
AOCI
Net loss18 15 — — 
Total amounts recognized in regulatory assets and AOCI$575 $680 $32 $82 
Plan Assets: Presented in the following tables are the fair values of the assets of CMS Energy’s, including Consumers’, 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 6, Fair Value Measurements.
In Millions
DB Pension Plans
December 31, 2025December 31, 2024
TotalLevel 1Level 2TotalLevel 1Level 2
Cash and short-term investments$162 $162 $— $148 $148 $— 
Mutual funds— — — — — — 
$162 $162 $— $148 $148 $— 
Pooled funds3,015 2,816 
Total$3,177 $2,964 
In Millions
OPEB Plan
December 31, 2025December 31, 2024
TotalLevel 1Level 2TotalLevel 1Level 2
Cash and short-term investments$72 $72 $— $35 $35 $— 
U.S. government and agencies securities15 — 15 13 — 13 
Corporate debt69 — 69 68 — 68 
State and municipal bonds— — 
Foreign bonds16 — 16 15 — 15 
Common stocks215 215 — 170 170 — 
Mutual funds75 75 — 53 53 — 
$466 $362 $104 $356 $258 $98 
Pooled funds1,267 1,232 
Total$1,733 $1,588 
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 Bonds: Foreign corporate and government debt securities are valued based on quoted market prices, when available, or on yields available on comparable securities of issuers with similar credit ratings.
Common Stocks: Common stocks in the OPEB Plan consist of equity securities that are actively managed and tracked to the S&P 500 Index and MSCI All Country World exUS. 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, 2025:
DB Pension PlansOPEB Plan
Fixed-income securities39.2%37.6%
Equity securities38.742.4
Real asset investments9.3 8.8 
Return-seeking fixed income7.15.6
Liquid alternative investments4.3 3.7 
Cash and cash equivalents1.4 1.9 
100.0%100.0%
CMS Energy’s target 2025 asset allocation for the assets of the DB Pension Plans was 40‑percent fixed income, 38‑percent equity, 11‑percent real assets, 7‑percent return-seeking fixed income, and 4‑percent liquid alternatives.
CMS Energy established union and non‑union VEBA trusts to fund future retiree health and life insurance benefits known as OPEB. These trusts are funded through the ratemaking process for Consumers and through direct contributions from the non‑utility subsidiaries. CMS Energy’s target 2025 asset allocation for OPEB trusts was 40‑percent fixed income, 38‑percent equity, 11‑percent real assets, 7‑percent return-seeking fixed income, and 4‑percent liquid alternatives.
The goal of these target allocations was to maximize the long-term return on plan assets, while maintaining a prudent level of risk. The level of acceptable risk is a function of the liabilities of the plans. Equity investments are diversified mostly across the S&P 500 Index, with lesser allocations to the S&P MidCap and SmallCap Indexes and Foreign Equity Funds. Fixed-income investments are diversified across investment grade instruments of government and corporate issuers, as well as high-yield and global bond funds. Return-seeking fixed-income investments are diversified exposure to high-yield bonds, emerging market debt, and bank loans. Real asset investments are diversified across core real estate and real estate investment trusts. Liquid alternatives are investments in private funds comprised of different and independent hedge funds with various investment strategies. CMS Energy uses annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocations.
Contributions: Contributions comprise required amounts and discretionary contributions. Neither CMS Energy nor Consumers made any contributions in 2025 or 2024, or plans to contribute to the DB Pension Plans or OPEB Plan in 2026. 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 fiveyear period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2026$164 $10 $59 
2027165 10 61 
2028164 10 62 
2029164 62 
2030164 62 
2031-2035801 41 305 
Consumers
2026$154 $$57 
2027155 58 
2028154 59 
2029155 59 
2030154 60 
2031-2035756 29 292 
Collective Bargaining Agreements: At December 31, 2025, unions represented 44 percent of CMS Energy’s employees and 45 percent of Consumers’ employees. The UWUA represents Consumers’ and NorthStar Clean Energy’s operating, maintenance, construction employees and Consumers’ customer contact center employees. The USW represents Consumers’ Zeeland plant employees. Consumers’ union agreements expire in 2030 and the majority of NorthStar Clean Energy’s represented employees have an agreement that expires in 2029.
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 eligible employees under a number of different plans. These plans include:
non‑contributory, qualified DB Pension Plans (closed to new non‑union participants as of July 1, 2003 and closed to new union participants as of September 1, 2005)
a non‑contributory, qualified DCCP for employees hired on or after July 1, 2003
benefits to certain management employees under a non‑contributory, nonqualified DB SERP (closed to new participants as of March 31, 2006)
a non‑contributory, nonqualified DC SERP for certain management employees hired or promoted on or after April 1, 2006
a contributory, qualified defined contribution 401(k) plan
health care and life insurance benefits under an OPEB Plan
DB Pension Plans: Participants in the pension plans include present and former employees of CMS Energy and Consumers, including certain present and former affiliates and subsidiaries. Pension plan trust assets are not distinguishable by company. Effective December 31, 2017, CMS Energy’s and Consumers’ then-existing pension plan was amended to include only retired and former employees already covered; this amended plan is referred to as DB Pension Plan B. Also effective December 31, 2017, active employees were moved to a newly created pension plan, referred to as DB Pension Plan A, whose benefits mirror those provided under DB Pension Plan B. Maintaining separate plans for the two groups allows CMS Energy and Consumers to employ a more targeted investment strategy and provides additional opportunities to mitigate risk and volatility.
DCCP: CMS Energy and Consumers provide an employer contribution to the DCCP 401(k) plan for employees hired on or after July 1, 2003. The contribution ranges from 5 percent to 10 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 $57 million for the year ended December 31, 2025, $53 million for the year ended December 31, 2024, and $51 million for the year ended December 31, 2023. DCCP expense for Consumers was $55 million for the year ended December 31, 2025, $52 million for the year ended December 31, 2024, and $50 million for the year ended December 31, 2023.
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. The trust assets are not considered plan assets under ASC 715. DB SERP rabbi trust earnings are taxable. Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Trust assets$122 $127 
ABO104 105 
Consumers
Trust assets$92 $95 
ABO76 76 
Neither CMS Energy nor Consumers made any contributions to the DB SERP in 2025 or 2024.
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 5 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 $18 million at December 31, 2025 and $17 million at December 31, 2024. DC SERP assets are included in other non‑current assets on CMS Energy’s and Consumers’ consolidated balance sheets. CMS Energy’s and Consumers’ DC SERP expense was $1 million for the years ended December 31, 2025, 2024, and 2023.
401(k) Plan: The 401(k) plan employer match equals 4 to 6 percent of employee eligible contributions based on an employee’s wages and class. The total 401(k) plan cost for CMS Energy, including Consumers, was $46 million for the year ended December 31, 2025, and $41 million for the years ended December 31, 2024 and 2023. The total 401(k) plan cost for Consumers was $44 million for the year ended December 31, 2025, $39 million for the year ended December 31, 2024, and $40 million for the year ended December 31, 2023.
Health-related OPEB Plan: Participants in the health-related OPEB Plan include 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 and hired before January 1, 2007 for non-union participants and hired before September 1, 2010 for union participants. 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 health-related OPEB Plan if hired before January 1, 2007 for non-union participants and hired before September 1, 2010 for union participants. Retiree health care costs were based on the assumption that costs would increase 8.00 percent in 2026 and 8.50 percent in 2025 for those under 65 and would increase 9.75 percent in 2026 and 10.25 percent in 2025 for those over 65. The rate of increase was assumed to decline to 4.75 percent by 2034 and thereafter for all retirees.
Assumptions: Presented in the following table are the weighted-average assumptions used in CMS Energy’s, including Consumers’, retirement benefit plans to determine benefit obligations and net periodic benefit cost:
December 31202520242023
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A5.58%5.73%5.05%
DB Pension Plan B5.285.594.95
DB SERP5.225.564.94
OPEB Plan5.505.695.02
Rate of compensation increase
DB Pension Plan A3.703.703.60
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A5.77%5.08%5.27%
DB SERP4
5.18
OPEB Plan5.855.125.31
Interest cost discount rate2,3
DB Pension Plan A5.434.935.12
DB Pension Plan B5.304.875.06
DB SERP5.294.875.06
OPEB Plan5.394.915.10
Expected long-term rate of return on plan assets5
DB Pension Plans7.307.507.20
OPEB Plan7.157.507.20
Rate of compensation increase
DB Pension Plan A3.703.603.60
DB SERP4
5.50
1The mortality assumption for benefit obligations and net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
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.
4The last active participant in the DB SERP retired in 2023. Thus, the determination of the associated net periodic benefit cost no longer assumes a service cost discount rate nor a rate of compensation increase.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning
of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.30 percent in 2025. The actual return on the assets of the DB Pension Plans was 12.7 percent in 2025, 3.6 percent in 2024, and 12.6 percent in 2023.
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 31202520242023202520242023
CMS Energy, including Consumers
Net periodic credit
Service cost$25 $28 $29 $$11 $12 
Interest cost114 109 112 43 43 44 
Expected return on plan assets(229)(234)(220)(111)(115)(103)
Amortization of:
Net loss11 12 12 12 
Prior service cost (credit)(34)(31)(41)
Settlement loss11 11 11 — — — 
Net periodic credit$(64)$(70)$(52)$(91)$(88)$(76)
Consumers
Net periodic credit
Service cost$24 $27 $28 $$11 $11 
Interest cost106 102 105 42 41 42 
Expected return on plan assets(215)(221)(208)(104)(107)(95)
Amortization of:
Net loss10 11 11 12 
Prior service cost (credit)(33)(30)(40)
Settlement loss11 11 11 — — — 
Net periodic credit$(60)$(66)$(49)$(84)$(81)$(70)
In Consumers’ electric and gas rate cases, the MPSC approved a mechanism allowing Consumers to defer for future recovery or refund pension and OPEB expenses above or below the amounts used to set existing rates. Amounts deferred will be collected from or refunded to customers over ten years. At December 31, 2025, CMS Energy, including Consumers, had deferred $3 million of pension costs and $6 million of OPEB credits under this mechanism related to 2025 expense. At December 31, 2024, CMS Energy, including Consumers, had deferred $15 million of pension credits and $11 million of OPEB credits under this mechanism related to 2024 expense. At December 31, 2023, CMS Energy, including Consumers, had deferred $11 million of pension credits and $23 million of OPEB costs under this mechanism related to 2023 expense.
CMS Energy and Consumers amortize net gains and losses in excess of 10 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 seven years for the year ended December 31, 2025, and eight years for the years ended December 31, 2024 and 2023. For DB Pension Plan B, the estimated period of amortization of gains and losses was 17 years for the years ended
December 31, 2025, 2024, and 2023. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2025, 2024, and 2023.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for OPEB in 2024. The estimated period of amortization of these new prior service costs is seven 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 fiveyear 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 31202520242025202420252024
CMS Energy, including Consumers
Benefit obligation at beginning of period$2,094 $2,195 $105 $114 $831 $900 
Service cost25 28 — — 11 
Interest cost109 104 43 43 
Plan amendments— — — — — (25)
Actuarial loss (gain)53 
1
(91)
1
(4)
1
(40)
1
Benefits paid(158)(142)(10)(10)(54)(58)
Benefit obligation at end of period$2,123 $2,094 $104 $105 $830 $831 
Plan assets at fair value at beginning of period$2,964 $3,004 $— $— $1,588 $1,559 
Actual return on plan assets371 102 — — 197 86 
Company contribution— — 10 10 — — 
Actual benefits paid(158)(142)(10)(10)(52)(57)
Plan assets at fair value at end of period$3,177 $2,964 $— $— $1,733 $1,588 
Funded status$1,054 
2
$870 
2
$(104)$(105)$903 $757 
Consumers
Benefit obligation at beginning of period$76 $83 $801 $867 
Service cost— — 11 
Interest cost42 41 
Plan amendments— — — (24)
Actuarial loss (gain)(4)
1
(38)
1
Benefits paid(7)(7)(51)(56)
Benefit obligation at end of period$76 $76 $801 $801 
Plan assets at fair value at beginning of period$— $— $1,479 $1,453 
Actual return on plan assets— — 184 80 
Company contribution— — 
Actual benefits paid(7)(7)(50)(54)
Plan assets at fair value at end of period$— $— $1,613 $1,479 
Funded status$(76)$(76)$812 $678 
1The actuarial losses for 2025 for the DB Pension Plans and OPEB Plans were primarily the result of lower discount rates. The actuarial gains for 2024 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $1.0 billion at December 31, 2025 and $836 million at December 31, 2024.
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120252024
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$1,054 $870 
OPEB Plan903 757 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP94 95 
Consumers
Non-current assets
DB Pension Plans$1,009 $836 
OPEB Plan812 678 
Current liabilities
DB SERP
Non-current liabilities
DB SERP69 69 
The ABO for the DB Pension Plans was $1.9 billion at December 31, 2025 and $1.9 billion at December 31, 2024. At December 31, 2025 and 2024, the PBO and ABO did not exceed plan assets for any of the defined benefit pension plans.
Items Not Yet Recognized as a Component of Net Periodic Benefit Cost: Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets see Note 3, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312025202420252024
CMS Energy, including Consumers
Regulatory assets
Net loss$548 $653 $93 $176 
Prior service cost (credit)12 (61)(94)
Regulatory assets$557 $665 $32 $82 
AOCI
Net loss (gain)57 60 (7)(3)
Prior service credit— — (2)(2)
Total amounts recognized in regulatory assets and AOCI$614 $725 $23 $77 
Consumers
Regulatory assets
Net loss$548 $653 $93 $176 
Prior service cost (credit)12 (61)(94)
Regulatory assets$557 $665 $32 $82 
AOCI
Net loss18 15 — — 
Total amounts recognized in regulatory assets and AOCI$575 $680 $32 $82 
Plan Assets: Presented in the following tables are the fair values of the assets of CMS Energy’s, including Consumers’, 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 6, Fair Value Measurements.
In Millions
DB Pension Plans
December 31, 2025December 31, 2024
TotalLevel 1Level 2TotalLevel 1Level 2
Cash and short-term investments$162 $162 $— $148 $148 $— 
Mutual funds— — — — — — 
$162 $162 $— $148 $148 $— 
Pooled funds3,015 2,816 
Total$3,177 $2,964 
In Millions
OPEB Plan
December 31, 2025December 31, 2024
TotalLevel 1Level 2TotalLevel 1Level 2
Cash and short-term investments$72 $72 $— $35 $35 $— 
U.S. government and agencies securities15 — 15 13 — 13 
Corporate debt69 — 69 68 — 68 
State and municipal bonds— — 
Foreign bonds16 — 16 15 — 15 
Common stocks215 215 — 170 170 — 
Mutual funds75 75 — 53 53 — 
$466 $362 $104 $356 $258 $98 
Pooled funds1,267 1,232 
Total$1,733 $1,588 
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 Bonds: Foreign corporate and government debt securities are valued based on quoted market prices, when available, or on yields available on comparable securities of issuers with similar credit ratings.
Common Stocks: Common stocks in the OPEB Plan consist of equity securities that are actively managed and tracked to the S&P 500 Index and MSCI All Country World exUS. 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, 2025:
DB Pension PlansOPEB Plan
Fixed-income securities39.2%37.6%
Equity securities38.742.4
Real asset investments9.3 8.8 
Return-seeking fixed income7.15.6
Liquid alternative investments4.3 3.7 
Cash and cash equivalents1.4 1.9 
100.0%100.0%
CMS Energy’s target 2025 asset allocation for the assets of the DB Pension Plans was 40‑percent fixed income, 38‑percent equity, 11‑percent real assets, 7‑percent return-seeking fixed income, and 4‑percent liquid alternatives.
CMS Energy established union and non‑union VEBA trusts to fund future retiree health and life insurance benefits known as OPEB. These trusts are funded through the ratemaking process for Consumers and through direct contributions from the non‑utility subsidiaries. CMS Energy’s target 2025 asset allocation for OPEB trusts was 40‑percent fixed income, 38‑percent equity, 11‑percent real assets, 7‑percent return-seeking fixed income, and 4‑percent liquid alternatives.
The goal of these target allocations was to maximize the long-term return on plan assets, while maintaining a prudent level of risk. The level of acceptable risk is a function of the liabilities of the plans. Equity investments are diversified mostly across the S&P 500 Index, with lesser allocations to the S&P MidCap and SmallCap Indexes and Foreign Equity Funds. Fixed-income investments are diversified across investment grade instruments of government and corporate issuers, as well as high-yield and global bond funds. Return-seeking fixed-income investments are diversified exposure to high-yield bonds, emerging market debt, and bank loans. Real asset investments are diversified across core real estate and real estate investment trusts. Liquid alternatives are investments in private funds comprised of different and independent hedge funds with various investment strategies. CMS Energy uses annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocations.
Contributions: Contributions comprise required amounts and discretionary contributions. Neither CMS Energy nor Consumers made any contributions in 2025 or 2024, or plans to contribute to the DB Pension Plans or OPEB Plan in 2026. 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 fiveyear period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2026$164 $10 $59 
2027165 10 61 
2028164 10 62 
2029164 62 
2030164 62 
2031-2035801 41 305 
Consumers
2026$154 $$57 
2027155 58 
2028154 59 
2029155 59 
2030154 60 
2031-2035756 29 292 
Collective Bargaining Agreements: At December 31, 2025, unions represented 44 percent of CMS Energy’s employees and 45 percent of Consumers’ employees. The UWUA represents Consumers’ and NorthStar Clean Energy’s operating, maintenance, construction employees and Consumers’ customer contact center employees. The USW represents Consumers’ Zeeland plant employees. Consumers’ union agreements expire in 2030 and the majority of NorthStar Clean Energy’s represented employees have an agreement that expires in 2029.
v3.25.4
Stock-based Compensation
12 Months Ended
Dec. 31, 2025
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 tenyear term, expiring in May 2030.
In 2025, 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 2025, 2024, or 2023.
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 3,965,601 shares of common stock under the PISP as of December 31, 2025. 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 36month 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 threeyear period. The awards granted in 2025, 2024, and 2023 require a 38‑month service period. Market-based restricted stock vesting is generally contingent on meeting a threeyear 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 threeyear 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 2025, 2024, and 2023, 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 2025.
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, 2025Number of
Shares
Weighted-average
Grant Date Fair Value
Per Share
Number of
Shares
Weighted-average
Grant Date Fair Value
Per Share
Nonvested at beginning of period1,162,787 $59.34 1,081,573 $59.35 
Granted
Restricted stock523,663 50.19 480,258 49.86 
Restricted stock units18,491 56.80 17,713 56.80 
Vested
Restricted stock(450,699)46.30 (424,830)46.33 
Restricted stock units(27,035)51.79 (25,994)51.82 
Forfeited – restricted stock(38,364)60.19 (36,119)60.01 
Nonvested at end of period1,188,843 $60.36 1,092,601 $60.36 
Year Ended December 31, 2025CMS Energy, including
Consumers
Consumers
Granted
Time-lapse awards118,842 109,242 
Market-based awards139,248 126,302 
Performance-based awards147,982 134,540 
Restricted stock units14,406 13,800 
Dividends on market-based awards13,484 12,472 
Dividends on performance-based awards14,458 13,389 
Dividends on restricted stock units4,085 3,913 
Additional market-based shares based on achievement of condition5,982 5,624 
Additional performance-based shares based on achievement of condition83,667 78,689 
Total granted542,154 497,971 
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 riskfree rate for valuation of the market-based restricted stock awards was based on the threeyear 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 31202520242023
Expected volatility20.7%20.2%30.3%
Expected dividend yield3.13.52.9
Risk-free rate4.24.13.9
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$50.19 $44.76 $52.62 
Restricted stock units granted56.80 52.43 50.32 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$49.86 $44.49 $52.42 
Restricted stock units granted56.80 52.46 50.34 
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Fair value of shares that vested during the year$33 $28 $20 
Compensation expense recognized25 27 28 
Income tax benefit recognized
Consumers
Fair value of shares that vested during the year$32 $27 $19 
Compensation expense recognized23 25 26 
Income tax benefit recognized
At December 31, 2025, $28 million of total unrecognized compensation cost was related to restricted stock for CMS Energy, including Consumers, and $26 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 tenyear term, expiring in May 2030.
In 2025, 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 2025, 2024, or 2023.
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 3,965,601 shares of common stock under the PISP as of December 31, 2025. 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 36month 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 threeyear period. The awards granted in 2025, 2024, and 2023 require a 38‑month service period. Market-based restricted stock vesting is generally contingent on meeting a threeyear 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 threeyear 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 2025, 2024, and 2023, 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 2025.
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, 2025Number of
Shares
Weighted-average
Grant Date Fair Value
Per Share
Number of
Shares
Weighted-average
Grant Date Fair Value
Per Share
Nonvested at beginning of period1,162,787 $59.34 1,081,573 $59.35 
Granted
Restricted stock523,663 50.19 480,258 49.86 
Restricted stock units18,491 56.80 17,713 56.80 
Vested
Restricted stock(450,699)46.30 (424,830)46.33 
Restricted stock units(27,035)51.79 (25,994)51.82 
Forfeited – restricted stock(38,364)60.19 (36,119)60.01 
Nonvested at end of period1,188,843 $60.36 1,092,601 $60.36 
Year Ended December 31, 2025CMS Energy, including
Consumers
Consumers
Granted
Time-lapse awards118,842 109,242 
Market-based awards139,248 126,302 
Performance-based awards147,982 134,540 
Restricted stock units14,406 13,800 
Dividends on market-based awards13,484 12,472 
Dividends on performance-based awards14,458 13,389 
Dividends on restricted stock units4,085 3,913 
Additional market-based shares based on achievement of condition5,982 5,624 
Additional performance-based shares based on achievement of condition83,667 78,689 
Total granted542,154 497,971 
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 riskfree rate for valuation of the market-based restricted stock awards was based on the threeyear 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 31202520242023
Expected volatility20.7%20.2%30.3%
Expected dividend yield3.13.52.9
Risk-free rate4.24.13.9
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$50.19 $44.76 $52.62 
Restricted stock units granted56.80 52.43 50.32 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$49.86 $44.49 $52.42 
Restricted stock units granted56.80 52.46 50.34 
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Fair value of shares that vested during the year$33 $28 $20 
Compensation expense recognized25 27 28 
Income tax benefit recognized
Consumers
Fair value of shares that vested during the year$32 $27 $19 
Compensation expense recognized23 25 26 
Income tax benefit recognized
At December 31, 2025, $28 million of total unrecognized compensation cost was related to restricted stock for CMS Energy, including Consumers, and $26 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.
v3.25.4
Income Taxes
12 Months Ended
Dec. 31, 2025
Income Taxes [Line Items]  
Income Taxes Income Taxes
CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement.
Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate:
In Millions, Except Tax Rate
AmountPercentAmountPercentAmountPercent
Years Ended December 31202520242023
CMS Energy, including Consumers
Income from continuing operations before income taxes$1,248 $1,123 $954 
Income tax expense at statutory rate262 21.0 %236 21.0 %200 21.0 %
Increase (decrease) in income taxes from:   
State and local income taxes, net of federal income tax effect1
77 6.2 58 5.1 40 4.2 
Tax credits
Renewable energy tax credits(68)(5.4)(71)(6.4)(55)(5.8)
Other(6)(0.5)(6)(0.5)(7)(0.7)
Nontaxable or nondeductible items0.2 0.4 0.3 
Changes in unrecognized tax benefits0.7 0.2 (11)(1.2)
Other adjustments
TCJA excess deferred taxes(42)(3.4)(43)(3.8)(40)(4.2)
Deferred tax adjustment2
— — (16)(1.4)— — 
Taxes attributable to noncontrolling interests15 1.2 12 1.1 17 1.8 
Other, net(4)(0.3)— — — — 
Income tax expense$246 $176 $147 
Effective tax rate19.7 %15.7 %15.4 %
In Millions, Except Tax Rate
AmountPercentAmountPercentAmountPercent
Years Ended December 31202520242023
Consumers
Income from continuing operations before income taxes$1,417 $1,209 $1,028 
Income tax expense at statutory rate298 21.0 %254 21.0 %216 21.0 %
Increase (decrease) in income taxes from:   
State and local income taxes, net of federal income tax effect1
80 5.7 60 5.0 47 4.6 
Tax credits
Renewable energy tax credits(46)(3.2)(51)(4.2)(43)(4.2)
Other(6)(0.4)(6)(0.5)(7)(0.7)
Nontaxable or nondeductible items0.2 0.2 0.3 
Changes in unrecognized tax benefits0.6 0.1 (12)(1.2)
Other adjustments
TCJA excess deferred taxes
(42)(3.0)(43)(3.6)(40)(3.9)
Deferred tax adjustment2
— — (16)(1.3)— — 
Other, net(8)(0.6)(2)(0.2)(3)(0.2)
Income tax expense$288 $200 $161 
Effective tax rate20.3 %16.5 %15.7 %
1In June 2025, state deferred tax balances were increased by $12 million to reflect a change in Illinois tax policy that establishes nexus for Consumers. The policy change is effective for tax years beginning January 1, 2026. During 2023, CMS Energy initiated a plan to divest immaterial business activities in a non-Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction. As a result of these actions, CMS Energy reversed a $13 million non-Michigan reserve, all of which was recognized at Consumers.
2During 2024, Consumers recognized a $16 million tax benefit resulting from the expiration of the statute of limitations associated with audit points for the 2018 and 2019 tax years.
State Income Tax Claim: In February 2025, CMS Energy received an adverse ruling from the Michigan Tax Tribunal in regards to the methodology of state apportionment for Consumers’ electricity sales to MISO. In March 2025, CMS Energy filed an appeal with the Michigan Court of Appeals and a hearing was held in February 2026. CMS Energy and Consumers have evaluated and concluded their uncertain tax positions associated with this matter to be sufficient as of December 31, 2025. While CMS Energy and Consumers expect the appeal to prevail, if it were to fail, the companies would be required to revise the estimated value of their state deferred tax liabilities, which could result in a material impact to their results of operations.
Tax Legislation: CMS Energy and Consumers are subject to changing tax laws. In July 2025, President Trump signed into law the OBBBA. The legislation allows for the immediate expensing of domestic research and development costs and includes changes to clean energy tax credits enacted by the Inflation Reduction Act of 2022. While the OBBBA restores, and makes permanent, the 100‑percent
bonus depreciation deduction, it also retains a provision that allows utilities to take a full deduction of interest expense in lieu of 100‑percent bonus depreciation. CMS Energy and Consumers evaluated the provisions of the OBBBA and concluded that the legislation is not expected to have a material impact on their respective financial statements. This conclusion is subject to change as additional guidance or interpretations become available.
Renewable Energy Tax Credits: Under the Inflation Reduction Act of 2022, renewable energy tax credits produced after 2022 are eligible to be transferred to third parties. These sales are accounted for under ASC 740 with the discount from the sale of the tax credits included as a component of income tax expense. Renewable energy tax credits that have been generated and sold are presented as accounts receivable on CMS Energy’s and Consumers’ consolidated balance sheets until proceeds from the sale are received. Proceeds from the sale of tax credits are presented as operating activities on their consolidated statements of cash flows, consistent with the presentation of cash taxes paid.
During 2025, CMS Energy sold renewable energy tax credits generated in 2025 and received proceeds of $36 million, all of which was recognized at Consumers. CMS Energy also received proceeds of $13 million during 2025 from the 2024 sale of renewable energy tax credits, all of which was recognized at Consumers. CMS Energy will receive an additional $32 million in 2026 from the renewable energy tax credits generated and sold in 2025, of which $10 million will be recognized at Consumers.
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Current income taxes
Federal$34 $34 $
State and local— 
$43 $34 $
Deferred income taxes
Federal107 70 107 
State and local100 76 38 
$207 $146 $145 
Deferred income tax credit(4)(4)(4)
Tax expense$246 $176 $147 
Consumers
Current income taxes
Federal$207 $78 $
State and local33 
$240 $85 $
Deferred income taxes
Federal(27)51 117 
State and local79 68 43 
$52 $119 $160 
Deferred income tax credit(4)(4)(4)
Tax expense$288 $200 $161 
Presented in the following table are income taxes paid:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Federal $28 $27 $15 
State — 
Total$29 $28 $15 
Consumers
Federal $189 $57 $23 
State 21 — 
Total$210 $57 $31 
CMS Energy and Consumers are domiciled in the U.S. and are not subject to taxes in any foreign jurisdiction. State income taxes paid (net of refunds) are primarily attributable to the state of Michigan.
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120252024
CMS Energy, including Consumers
Deferred income tax assets
Net regulatory tax liability$294 $307 
Tax loss and credit carryforwards139 258 
Reserves and accruals16 27 
Total deferred income tax assets$449 $592 
Valuation allowance(2)(1)
Total deferred income tax assets, net of valuation allowance$447 $591 
Deferred income tax liabilities
Plant, property, and equipment$(2,833)$(2,682)
Employee benefits(558)(507)
Gas inventory(24)(38)
Securitized costs(137)(167)
Other(147)(122)
Total deferred income tax liabilities$(3,699)$(3,516)
Total net deferred income tax liabilities$(3,252)$(2,925)
Consumers
Deferred income tax assets
Net regulatory tax liability$294 $307 
Tax loss and credit carryforwards18 37 
Reserves and accruals13 24 
Total deferred income tax assets$325 $368 
Deferred income tax liabilities
Plant, property, and equipment$(2,808)$(2,658)
Employee benefits(534)(489)
Gas inventory(24)(38)
Securitized costs(137)(167)
Other(23)(69)
Total deferred income tax liabilities$(3,526)$(3,421)
Total net deferred income tax liabilities$(3,201)$(3,053)
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, 2025:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
Michigan net operating loss carryforwards$15 2030 – 2033
Arkansas net operating loss carryforwards2033 - 2035
Local net operating loss carryforwards2025 – 2040
General business credits1
120 2038 – 2045
Total tax attributes$139 
Consumers
Michigan net operating loss carryforwards$10 2030 – 2033
General business credits1
2038 – 2045
Total tax attributes$18 
1General business credits comprise research and development tax credits and renewable energy tax credits that are not expected to be transferred to third parties.
CMS Energy has provided a valuation allowance of $2 million for state and local tax loss carryforwards. CMS Energy and Consumers expect to utilize fully their tax loss and credit carryforwards for which no valuation allowance has been provided. It is reasonably possible that further adjustments will be made to the valuation allowances within one year.
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Balance at beginning of period$24 $26 $28 
Additions for current-year tax positions
Additions for prior-year tax positions— 
Reductions for lapse of statute of limitations(4)(5)(3)
Balance at end of period$29 $24 $26 
Consumers
Balance at beginning of period$32 $36 $36 
Additions for current-year tax positions
Additions for prior-year tax positions
Reductions for lapse of statute of limitations(4)(11)(3)
Balance at end of period$36 $32 $36 
If recognized, all of these uncertain tax benefits would affect CMS Energy’s and Consumers’ annual effective tax rates in future years. One uncertain tax benefit relates to the methodology of state apportionment for Consumers’ electricity sales to MISO. CMS Energy has filed an appeal on an adverse ruling received from the Michigan Tax Tribunal on this methodology and a hearing was held in February 2026.
CMS Energy and Consumers recognize accrued interest and penalties, where applicable, as part of income tax expense. CMS Energy, including Consumers, recognized immaterial interest and penalties for each of the years ended December 31, 2025, 2024, and 2023.
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 2022 and subsequent years remain subject to examination by the IRS. CMS Energy’s Michigan Corporate Income Tax returns for 2013 through 2016 and 2021 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, 2025 were adequate for all years.
Consumers Energy Company  
Income Taxes [Line Items]  
Income Taxes Income Taxes
CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement.
Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate:
In Millions, Except Tax Rate
AmountPercentAmountPercentAmountPercent
Years Ended December 31202520242023
CMS Energy, including Consumers
Income from continuing operations before income taxes$1,248 $1,123 $954 
Income tax expense at statutory rate262 21.0 %236 21.0 %200 21.0 %
Increase (decrease) in income taxes from:   
State and local income taxes, net of federal income tax effect1
77 6.2 58 5.1 40 4.2 
Tax credits
Renewable energy tax credits(68)(5.4)(71)(6.4)(55)(5.8)
Other(6)(0.5)(6)(0.5)(7)(0.7)
Nontaxable or nondeductible items0.2 0.4 0.3 
Changes in unrecognized tax benefits0.7 0.2 (11)(1.2)
Other adjustments
TCJA excess deferred taxes(42)(3.4)(43)(3.8)(40)(4.2)
Deferred tax adjustment2
— — (16)(1.4)— — 
Taxes attributable to noncontrolling interests15 1.2 12 1.1 17 1.8 
Other, net(4)(0.3)— — — — 
Income tax expense$246 $176 $147 
Effective tax rate19.7 %15.7 %15.4 %
In Millions, Except Tax Rate
AmountPercentAmountPercentAmountPercent
Years Ended December 31202520242023
Consumers
Income from continuing operations before income taxes$1,417 $1,209 $1,028 
Income tax expense at statutory rate298 21.0 %254 21.0 %216 21.0 %
Increase (decrease) in income taxes from:   
State and local income taxes, net of federal income tax effect1
80 5.7 60 5.0 47 4.6 
Tax credits
Renewable energy tax credits(46)(3.2)(51)(4.2)(43)(4.2)
Other(6)(0.4)(6)(0.5)(7)(0.7)
Nontaxable or nondeductible items0.2 0.2 0.3 
Changes in unrecognized tax benefits0.6 0.1 (12)(1.2)
Other adjustments
TCJA excess deferred taxes
(42)(3.0)(43)(3.6)(40)(3.9)
Deferred tax adjustment2
— — (16)(1.3)— — 
Other, net(8)(0.6)(2)(0.2)(3)(0.2)
Income tax expense$288 $200 $161 
Effective tax rate20.3 %16.5 %15.7 %
1In June 2025, state deferred tax balances were increased by $12 million to reflect a change in Illinois tax policy that establishes nexus for Consumers. The policy change is effective for tax years beginning January 1, 2026. During 2023, CMS Energy initiated a plan to divest immaterial business activities in a non-Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction. As a result of these actions, CMS Energy reversed a $13 million non-Michigan reserve, all of which was recognized at Consumers.
2During 2024, Consumers recognized a $16 million tax benefit resulting from the expiration of the statute of limitations associated with audit points for the 2018 and 2019 tax years.
State Income Tax Claim: In February 2025, CMS Energy received an adverse ruling from the Michigan Tax Tribunal in regards to the methodology of state apportionment for Consumers’ electricity sales to MISO. In March 2025, CMS Energy filed an appeal with the Michigan Court of Appeals and a hearing was held in February 2026. CMS Energy and Consumers have evaluated and concluded their uncertain tax positions associated with this matter to be sufficient as of December 31, 2025. While CMS Energy and Consumers expect the appeal to prevail, if it were to fail, the companies would be required to revise the estimated value of their state deferred tax liabilities, which could result in a material impact to their results of operations.
Tax Legislation: CMS Energy and Consumers are subject to changing tax laws. In July 2025, President Trump signed into law the OBBBA. The legislation allows for the immediate expensing of domestic research and development costs and includes changes to clean energy tax credits enacted by the Inflation Reduction Act of 2022. While the OBBBA restores, and makes permanent, the 100‑percent
bonus depreciation deduction, it also retains a provision that allows utilities to take a full deduction of interest expense in lieu of 100‑percent bonus depreciation. CMS Energy and Consumers evaluated the provisions of the OBBBA and concluded that the legislation is not expected to have a material impact on their respective financial statements. This conclusion is subject to change as additional guidance or interpretations become available.
Renewable Energy Tax Credits: Under the Inflation Reduction Act of 2022, renewable energy tax credits produced after 2022 are eligible to be transferred to third parties. These sales are accounted for under ASC 740 with the discount from the sale of the tax credits included as a component of income tax expense. Renewable energy tax credits that have been generated and sold are presented as accounts receivable on CMS Energy’s and Consumers’ consolidated balance sheets until proceeds from the sale are received. Proceeds from the sale of tax credits are presented as operating activities on their consolidated statements of cash flows, consistent with the presentation of cash taxes paid.
During 2025, CMS Energy sold renewable energy tax credits generated in 2025 and received proceeds of $36 million, all of which was recognized at Consumers. CMS Energy also received proceeds of $13 million during 2025 from the 2024 sale of renewable energy tax credits, all of which was recognized at Consumers. CMS Energy will receive an additional $32 million in 2026 from the renewable energy tax credits generated and sold in 2025, of which $10 million will be recognized at Consumers.
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Current income taxes
Federal$34 $34 $
State and local— 
$43 $34 $
Deferred income taxes
Federal107 70 107 
State and local100 76 38 
$207 $146 $145 
Deferred income tax credit(4)(4)(4)
Tax expense$246 $176 $147 
Consumers
Current income taxes
Federal$207 $78 $
State and local33 
$240 $85 $
Deferred income taxes
Federal(27)51 117 
State and local79 68 43 
$52 $119 $160 
Deferred income tax credit(4)(4)(4)
Tax expense$288 $200 $161 
Presented in the following table are income taxes paid:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Federal $28 $27 $15 
State — 
Total$29 $28 $15 
Consumers
Federal $189 $57 $23 
State 21 — 
Total$210 $57 $31 
CMS Energy and Consumers are domiciled in the U.S. and are not subject to taxes in any foreign jurisdiction. State income taxes paid (net of refunds) are primarily attributable to the state of Michigan.
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120252024
CMS Energy, including Consumers
Deferred income tax assets
Net regulatory tax liability$294 $307 
Tax loss and credit carryforwards139 258 
Reserves and accruals16 27 
Total deferred income tax assets$449 $592 
Valuation allowance(2)(1)
Total deferred income tax assets, net of valuation allowance$447 $591 
Deferred income tax liabilities
Plant, property, and equipment$(2,833)$(2,682)
Employee benefits(558)(507)
Gas inventory(24)(38)
Securitized costs(137)(167)
Other(147)(122)
Total deferred income tax liabilities$(3,699)$(3,516)
Total net deferred income tax liabilities$(3,252)$(2,925)
Consumers
Deferred income tax assets
Net regulatory tax liability$294 $307 
Tax loss and credit carryforwards18 37 
Reserves and accruals13 24 
Total deferred income tax assets$325 $368 
Deferred income tax liabilities
Plant, property, and equipment$(2,808)$(2,658)
Employee benefits(534)(489)
Gas inventory(24)(38)
Securitized costs(137)(167)
Other(23)(69)
Total deferred income tax liabilities$(3,526)$(3,421)
Total net deferred income tax liabilities$(3,201)$(3,053)
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, 2025:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
Michigan net operating loss carryforwards$15 2030 – 2033
Arkansas net operating loss carryforwards2033 - 2035
Local net operating loss carryforwards2025 – 2040
General business credits1
120 2038 – 2045
Total tax attributes$139 
Consumers
Michigan net operating loss carryforwards$10 2030 – 2033
General business credits1
2038 – 2045
Total tax attributes$18 
1General business credits comprise research and development tax credits and renewable energy tax credits that are not expected to be transferred to third parties.
CMS Energy has provided a valuation allowance of $2 million for state and local tax loss carryforwards. CMS Energy and Consumers expect to utilize fully their tax loss and credit carryforwards for which no valuation allowance has been provided. It is reasonably possible that further adjustments will be made to the valuation allowances within one year.
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Balance at beginning of period$24 $26 $28 
Additions for current-year tax positions
Additions for prior-year tax positions— 
Reductions for lapse of statute of limitations(4)(5)(3)
Balance at end of period$29 $24 $26 
Consumers
Balance at beginning of period$32 $36 $36 
Additions for current-year tax positions
Additions for prior-year tax positions
Reductions for lapse of statute of limitations(4)(11)(3)
Balance at end of period$36 $32 $36 
If recognized, all of these uncertain tax benefits would affect CMS Energy’s and Consumers’ annual effective tax rates in future years. One uncertain tax benefit relates to the methodology of state apportionment for Consumers’ electricity sales to MISO. CMS Energy has filed an appeal on an adverse ruling received from the Michigan Tax Tribunal on this methodology and a hearing was held in February 2026.
CMS Energy and Consumers recognize accrued interest and penalties, where applicable, as part of income tax expense. CMS Energy, including Consumers, recognized immaterial interest and penalties for each of the years ended December 31, 2025, 2024, and 2023.
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 2022 and subsequent years remain subject to examination by the IRS. CMS Energy’s Michigan Corporate Income Tax returns for 2013 through 2016 and 2021 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, 2025 were adequate for all years.
v3.25.4
Earnings Per Share - CMS Energy
12 Months Ended
Dec. 31, 2025
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 31202520242023
Income available to common stockholders
Income from continuing operations$1,002 $947 $807 
Less loss attributable to noncontrolling interests(69)(56)(79)
Less preferred stock dividends10 10 10 
Income from continuing operations available to common stockholders – basic and diluted$1,061 $993 $876 
Average common shares outstanding
Weighted-average shares – basic300.4 297.6 291.2 
Add dilutive nonvested stock awards0.5 0.7 0.5 
Add dilutive forward equity sale contracts0.1 — — 
Weighted-average shares – diluted301.0 298.3 291.7 
Income from continuing operations per average common share available to common stockholders
Basic$3.53 $3.34 $3.01 
Diluted3.53 3.33 3.01 
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.
The potentially dilutive impact from these forward equity sale contracts is reflected in diluted EPS using the treasury stock method. There will be a dilutive effect on EPS when the average market price of common stock shares is above the applicable adjusted forward sale price. Additionally, any physical settlement or net share settlement of the agreements would dilute EPS. For further details on the forward equity sale contracts, see Note 5, Financings and Capitalization.
Convertible Securities
CMS Energy has issued convertible senior notes. Potentially dilutive common shares issuable upon conversion of the convertible senior notes are determined using the if-converted method for calculating diluted EPS. Upon conversion, the convertible senior notes are required to be paid in cash with only amounts exceeding the principal permitted to be settled in shares. Accordingly, the convertible senior notes were included in the computation of diluted EPS, but not in the computation of basic EPS. The impact to diluted EPS was de minimis.
v3.25.4
Revenue
12 Months Ended
Dec. 31, 2025
Disaggregation of Revenue [Line Items]  
Revenue Revenue
Presented in the following tables are the components of operating revenue:
In Millions
Year Ended December 31, 2025Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$5,578 $2,468 $— $8,046 
Other— — 259 259 
Revenue recognized from contracts with customers$5,578 $2,468 $259 $8,305 
Leasing income— — 149 149 
Financing income10 — 16 
Consumers alternative-revenue programs50 19 — 69 
Total operating revenue – CMS Energy$5,638 $2,493 $408 $8,539 
Consumers
Consumers utility revenue
Residential$2,661 $1,701 $4,362 
Commercial1,888 538 2,426 
Industrial762 62 824 
Other267 167 434 
Revenue recognized from contracts with customers$5,578 $2,468 $8,046 
Financing income10 16 
Alternative-revenue programs50 19 69 
Other non-segment revenue— — 
Total operating revenue – Consumers$5,638 $2,493 $8,132 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2024Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,995 $2,114 $— $7,109 
Other— — 211 211 
Revenue recognized from contracts with customers$4,995 $2,114 $211 $7,320 
Leasing income— — 105 105 
Financing income10 — 15 
Consumers alternative-revenue programs56 19 — 75 
Total operating revenue – CMS Energy$5,061 $2,138 $316 $7,515 
Consumers
Consumers utility revenue
Residential$2,318 $1,429 $3,747 
Commercial1,674 440 2,114 
Industrial670 50 720 
Other333 195 528 
Revenue recognized from contracts with customers$4,995 $2,114 $7,109 
Financing income10 15 
Alternative-revenue programs56 19 75 
Other non-segment revenue— — 
Total operating revenue – Consumers$5,061 $2,138 $7,200 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2023Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,686 $2,394 $— $7,080 
Other— — 181 181 
Revenue recognized from contracts with customers$4,686 $2,394 $181 $7,261 
Leasing income— — 116 116 
Financing income10 — 16 
Consumers alternative-revenue programs49 20 — 69 
Total operating revenue – CMS Energy$4,745 $2,420 $297 $7,462 
Consumers
Consumers utility revenue
Residential$2,236 $1,619 $3,855 
Commercial1,550 489 2,039 
Industrial660 60 720 
Other240 226 466 
Revenue recognized from contracts with customers$4,686 $2,394 $7,080 
Financing income10 16 
Alternative-revenue programs49 20 69 
Other non-segment revenue— — 
Total operating revenue – Consumers$4,745 $2,420 $7,166 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
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 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 $40 million for the year ended December 31, 2025, $33 million for the year ended December 31, 2024, and $34 million for the year ended December 31, 2023.
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 $659 million at December 31, 2025 and $584 million at December 31, 2024.
Alternativerevenue Programs: Consumers accounts for its energy waste reduction incentive mechanism, financial compensation mechanism, and demand response incentive 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. Revenue related to the financial compensation mechanism is recognized as payments are made on MPSC-approved PPAs. Under a demand response incentive mechanism, Consumers earns a financial incentive when it meets demand response targets set by the MPSC. Consumers recognizes revenue related to this program once demand response incentive objectives are complete, the incentive amount is calculable, and the incentive revenue will be collected within a 24month period. For additional information on these mechanisms, see Note 3, Regulatory Matters.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Consumers Energy Company  
Disaggregation of Revenue [Line Items]  
Revenue Revenue
Presented in the following tables are the components of operating revenue:
In Millions
Year Ended December 31, 2025Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$5,578 $2,468 $— $8,046 
Other— — 259 259 
Revenue recognized from contracts with customers$5,578 $2,468 $259 $8,305 
Leasing income— — 149 149 
Financing income10 — 16 
Consumers alternative-revenue programs50 19 — 69 
Total operating revenue – CMS Energy$5,638 $2,493 $408 $8,539 
Consumers
Consumers utility revenue
Residential$2,661 $1,701 $4,362 
Commercial1,888 538 2,426 
Industrial762 62 824 
Other267 167 434 
Revenue recognized from contracts with customers$5,578 $2,468 $8,046 
Financing income10 16 
Alternative-revenue programs50 19 69 
Other non-segment revenue— — 
Total operating revenue – Consumers$5,638 $2,493 $8,132 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2024Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,995 $2,114 $— $7,109 
Other— — 211 211 
Revenue recognized from contracts with customers$4,995 $2,114 $211 $7,320 
Leasing income— — 105 105 
Financing income10 — 15 
Consumers alternative-revenue programs56 19 — 75 
Total operating revenue – CMS Energy$5,061 $2,138 $316 $7,515 
Consumers
Consumers utility revenue
Residential$2,318 $1,429 $3,747 
Commercial1,674 440 2,114 
Industrial670 50 720 
Other333 195 528 
Revenue recognized from contracts with customers$4,995 $2,114 $7,109 
Financing income10 15 
Alternative-revenue programs56 19 75 
Other non-segment revenue— — 
Total operating revenue – Consumers$5,061 $2,138 $7,200 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2023Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,686 $2,394 $— $7,080 
Other— — 181 181 
Revenue recognized from contracts with customers$4,686 $2,394 $181 $7,261 
Leasing income— — 116 116 
Financing income10 — 16 
Consumers alternative-revenue programs49 20 — 69 
Total operating revenue – CMS Energy$4,745 $2,420 $297 $7,462 
Consumers
Consumers utility revenue
Residential$2,236 $1,619 $3,855 
Commercial1,550 489 2,039 
Industrial660 60 720 
Other240 226 466 
Revenue recognized from contracts with customers$4,686 $2,394 $7,080 
Financing income10 16 
Alternative-revenue programs49 20 69 
Other non-segment revenue— — 
Total operating revenue – Consumers$4,745 $2,420 $7,166 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
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 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 $40 million for the year ended December 31, 2025, $33 million for the year ended December 31, 2024, and $34 million for the year ended December 31, 2023.
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 $659 million at December 31, 2025 and $584 million at December 31, 2024.
Alternativerevenue Programs: Consumers accounts for its energy waste reduction incentive mechanism, financial compensation mechanism, and demand response incentive 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. Revenue related to the financial compensation mechanism is recognized as payments are made on MPSC-approved PPAs. Under a demand response incentive mechanism, Consumers earns a financial incentive when it meets demand response targets set by the MPSC. Consumers recognizes revenue related to this program once demand response incentive objectives are complete, the incentive amount is calculable, and the incentive revenue will be collected within a 24month period. For additional information on these mechanisms, see Note 3, Regulatory Matters.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
v3.25.4
Other Income and Other Expense
12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Line Items]  
Other Income and Other Expense Other Income and Other Expense
Presented in the following table are the components of other income and other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Other income
Gain on extinguishment of debt1
$72 $110 $131 
Interest income37 50 37 
Interest income – related parties— — 
Allowance for equity funds used during construction23 29 
Income from equity method investees
All other13 11 13 
Total other income – CMS Energy$151 $207 $195 
Consumers
Other income
Interest income$22 $42 $25 
Interest income – related parties
Allowance for equity funds used during construction23 29 
All other12 
Total other income – Consumers$55 $85 $49 
CMS Energy, including Consumers
Other expense
Donations$(10)$(18)$(1)
Civic and political expenditures(7)(5)(5)
All other(10)(9)(7)
Total other expense – CMS Energy$(27)$(32)$(13)
Consumers
Other expense
Donations$(10)$(18)$(1)
Civic and political expenditures(5)(5)(5)
All other(7)(7)(6)
Total other expense – Consumers$(22)$(30)$(12)
1For information regarding the gain on extinguishment of debt, see Note 5, Financings and Capitalization—CMS Energy’s Purchase of Consumers’ First Mortgage Bonds.
Consumers Energy Company  
Other Income and Expenses [Line Items]  
Other Income and Other Expense Other Income and Other Expense
Presented in the following table are the components of other income and other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Other income
Gain on extinguishment of debt1
$72 $110 $131 
Interest income37 50 37 
Interest income – related parties— — 
Allowance for equity funds used during construction23 29 
Income from equity method investees
All other13 11 13 
Total other income – CMS Energy$151 $207 $195 
Consumers
Other income
Interest income$22 $42 $25 
Interest income – related parties
Allowance for equity funds used during construction23 29 
All other12 
Total other income – Consumers$55 $85 $49 
CMS Energy, including Consumers
Other expense
Donations$(10)$(18)$(1)
Civic and political expenditures(7)(5)(5)
All other(10)(9)(7)
Total other expense – CMS Energy$(27)$(32)$(13)
Consumers
Other expense
Donations$(10)$(18)$(1)
Civic and political expenditures(5)(5)(5)
All other(7)(7)(6)
Total other expense – Consumers$(22)$(30)$(12)
1For information regarding the gain on extinguishment of debt, see Note 5, Financings and Capitalization—CMS Energy’s Purchase of Consumers’ First Mortgage Bonds.
v3.25.4
Reportable Segments
12 Months Ended
Dec. 31, 2025
Segment Reporting Information [Line Items]  
Reportable Segments Reportable Segments
Reportable segments consist of business units defined by the products and services they offer. CMS Energy’s and Consumers’ chief operating decision-maker is the CEO. The chief operating decision-maker evaluates segment performance and profitability using net income available to CMS Energy’s common stockholders. This metric provides a clear, consistent basis for analyzing the financial results of each segment and supports decision-making regarding the allocation of resources.
Resource allocation to CMS Energy’s and Consumers’ segments begins with the annual budgeting process, which establishes initial funding and resource levels for each segment. The budget incorporates key financial and operational inputs, including anticipated revenues, expenses, and capital requirements, aligning with CMS Energy’s and Consumers’ strategic objectives and regulatory obligations. The chief operating decision-maker reviews budget-to-actual variances on a monthly basis and makes interim decisions to reallocate resources among segments as needed, ensuring a timely and effective response to changing conditions. For the electric utility and gas utility segments, the chief operating decision-maker uses this assessment to determine whether the segments are achieving their regulatory authorized return on equity.
Accounting policies for CMS Energy’s and Consumers’ segments are as described in Note 1, Significant Accounting Policies. The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of the individual segments when appropriate. Accounts are allocated among the segments when common accounts are attributable to more than one segment. The allocations are based on certain measures of business activities, such as revenue, labor dollars, customers, other operating and maintenance expense, construction expense, leased property, taxes, or functional surveys. For example, customer receivables are allocated based on revenue, and pension provisions are allocated based on labor dollars.
Inter-segment sales and transfers are accounted for at current market prices and are eliminated in consolidated net income available to common stockholders by segment. Inter-segment sales and transfers were immaterial for all periods presented.
CMS Energy
The segments reported for CMS Energy are:
electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
NorthStar Clean Energy, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production
CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items.
Consumers
The segments reported for Consumers are:
electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
Consumers’ other consolidated entities are presented within other reconciling items.
Presented in the following tables is financial information by segment:
In Millions
Year Ended December 31, 2025Electric UtilityGas UtilityNorthStar Clean EnergySegments TotalOther Reconciling ItemsConsolidated
CMS Energy, including Consumers
Operating revenue$5,638 $2,493 $408 $8,539 $— $8,539 
Operating expenses
Power supply cost1
2,193 — 264 2,457 — 2,457 
Cost of gas sold— 803 809 — 809 
Maintenance and other operating expenses1,146 468 100 1,714 13 1,727 
Depreciation and amortization903 350 52 1,305 1,306 
General taxes297 201 14 512 513 
Total operating expenses4,539 1,822 436 6,797 15 6,812 
Operating Income (Loss)1,099 671 (28)1,742 (15)1,727 
Other income2
124 83 17 224 86 310 
Interest charges353 206 (7)552 237 789 
Income (Loss) Before Income Taxes870 548 (4)1,414 (166)1,248 
Income tax expense (benefit)150 138 (4)284 (38)246 
Income (Loss) From Continuing Operations720 410 — 1,130 (128)1,002 
Other segment items3
(1)(1)71 69 (10)59 
Net Income (Loss) Available to Common Stockholders$719 $409 $71 $1,199 $(138)$1,061 
Property, plant, and equipment, gross$21,871 
4
$14,218 
4
$1,649 $37,738 $25 $37,763 
Investments in equity method investees— — 61 61 — 61 
Total assets22,760 
4
14,188 
4
2,496 39,444 497 39,941 
Capital expenditures5
2,408 
6
1,064 
6
498 3,970 — 3,970 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Includes income from equity method investees of $5 million attributable to NorthStar Clean Energy. See Note 16, Other Income and Other Expense
3Other segment items comprise loss attributable to noncontrolling interests and preferred stock dividends.
4Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
5Amounts include assets placed under finance lease.
6Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
In Millions
Year Ended December 31, 2025Electric UtilityGas UtilitySegments TotalOther Reconciling ItemsConsolidated
Consumers
Operating revenue$5,638 $2,493 $8,131 $$8,132 
Operating expenses
Power supply cost1
2,193 — 2,193 — 2,193 
Cost of gas sold— 803 803 — 803 
Maintenance and other operating expenses1,146 468 1,614 — 1,614 
Depreciation and amortization903 350 1,253 1,254 
General taxes297 201 498 499 
Total operating expenses4,539 1,822 6,361 6,363 
Operating Income (Loss)1,099 671 1,770 (1)1,769 
Other income124 83 207 208 
Interest charges353 206 559 560 
Income (Loss) Before Income Taxes870 548 1,418 (1)1,417 
Income tax expense150 138 288 — 288 
Net Income (Loss)720 410 1,130 (1)1,129 
Other segment items2
(1)(1)(2)— (2)
Net Income (Loss) Available to Common Stockholder$719 $409 $1,128 $(1)$1,127 
Property, plant, and equipment, gross$21,871 
3
$14,218 
3
$36,089 $31 $36,120 
Total assets22,814 
3
14,229 
3
37,043 48 37,091 
Capital expenditures4
2,408 
5
1,064 
5
3,472 — 3,472 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Other segment items comprise preferred stock dividends.
3Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
4Amounts include assets placed under finance lease.
5Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
In Millions
Year Ended December 31, 2024Electric UtilityGas UtilityNorthStar Clean EnergySegments TotalOther Reconciling ItemsConsolidated
CMS Energy, including Consumers
Operating revenue$5,061 $2,138 $316 $7,515 $— $7,515 
Operating expenses
Power supply cost1
1,867 — 161 2,028 — 2,028 
Cost of gas sold— 637 640 — 640 
Maintenance and other operating expenses1,066 454 101 1,621 17 1,638 
Depreciation and amortization865 325 49 1,239 1,240 
General taxes281 188 12 481 482 
Total operating expenses4,079 1,604 326 6,009 19 6,028 
Operating Income (Loss)982 534 (10)1,506 (19)1,487 
Other income2
126 86 14 226 118 344 
Interest charges324 192 520 188 708 
Income (Loss) Before Income Taxes784 428 — 1,212 (89)1,123 
Income tax expense (benefit)102 99 (5)196 (20)176 
Income (Loss) From Continuing Operations682 329 1,016 (69)947 
Other segment items3
(1)(1)58 56 (10)46 
Net Income (Loss) Available to Common Stockholders$681 $328 $63 $1,072 $(79)$993 
Property, plant, and equipment, gross$20,137 
4
$13,268 
4
$1,506 $34,911 $21 $34,932 
Investments in equity method investees— — 64 64 — 64 
Total assets20,710 
4
13,247 
4
1,893 35,850 70 35,920 
Capital expenditures5
1,871 
6
1,141 
6
288 $3,300 3,301 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Includes income from equity method investees of $7 million attributable to NorthStar Clean Energy. See Note 16, Other Income and Other Expense.
3Other segment items comprise loss attributable to noncontrolling interests and preferred stock dividends.
4Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
5Amounts include assets placed under finance lease.
6Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
In Millions
Year Ended December 31, 2024Electric UtilityGas UtilitySegments TotalOther Reconciling ItemsConsolidated
Consumers
Operating revenue$5,061 $2,138 $7,199 $$7,200 
Operating expenses
Power supply cost1
1,867 — 1,867 — 1,867 
Cost of gas sold— 637 637 — 637 
Maintenance and other operating expenses1,066 454 1,520 — 1,520 
Depreciation and amortization865 325 1,190 1,191 
General taxes281 188 469 470 
Total operating expenses4,079 1,604 5,683 5,685 
Operating Income (Loss)982 534 1,516 (1)1,515 
Other income126 86 212 — 212 
Interest charges324 192 516 518 
Income (Loss) Before Income Taxes784 428 1,212 (3)1,209 
Income tax expense (benefit)102 99 201 (1)200 
Net Income (Loss)682 329 1,011 (2)1,009 
Other segment items2
(1)(1)(2)— (2)
Net Income (Loss) Available to Common Stockholder$681 $328 $1,009 $(2)$1,007 
Property, plant, and equipment, gross$20,137 
3
$13,268 
3
$33,405 $29 $33,434 
Total assets20,767 
3
13,289 
3
34,056 32 34,088 
Capital expenditures4
1,871 
5
1,141 
5
3,012 — 3,012 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Other segment items comprise preferred stock dividends.
3Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
4Amounts include assets placed under finance lease.
5Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
In Millions
Year Ended December 31, 2023Electric UtilityGas UtilityNorthStar Clean EnergySegments TotalOther Reconciling ItemsConsolidated
CMS Energy, including Consumers
Operating revenue$4,745 $2,420 $297 $7,462 $— $7,462 
Operating expenses
Power supply cost1
1,841 — 170 2,011 — 2,011 
Cost of gas sold— 897 902 — 902 
Maintenance and other operating expenses1,075 511 88 1,674 13 1,687 
Depreciation and amortization797 338 43 1,178 1,180 
General taxes260 176 10 446 447 
Total operating expenses3,973 1,922 316 6,211 16 6,227 
Operating Income (Loss)772 498 (19)1,251 (16)1,235 
Other income2
131 77 12 220 142 362 
Interest charges285 161 448 195 643 
Income (Loss) Before Income Taxes618 414 (9)1,023 (69)954 
Income tax expense (benefit)67 98 169 (22)147 
Income (Loss) From Continuing Operations551 316 (13)854 (47)807 
Other segment items3
(1)(1)80 78 (8)70 
Net Income (Loss) Available to Common Stockholders$550 $315 $67 $932 $(55)$877 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Includes income from equity method investees of $7 million attributable to NorthStar Clean Energy. See Note 16, Other Income and Other Expense.
3Other segment items comprise income from discontinued operations, net of tax, loss attributable to noncontrolling interests, and preferred stock dividends.
In Millions
Year Ended December 31, 2023Electric UtilityGas UtilitySegments TotalOther Reconciling ItemsConsolidated
Consumers
Operating revenue$4,745 $2,420 $7,165 $$7,166 
Operating expenses
Power supply cost1
1,841 — 1,841 — 1,841 
Cost of gas sold— 897 897 — 897 
Maintenance and other operating expenses1,075 511 1,586 — 1,586 
Depreciation and amortization797 338 1,135 1,137 
General taxes260 176 436 437 
Total operating expenses3,973 1,922 5,895 5,898 
Operating Income (Loss)772 498 1,270 (2)1,268 
Other income131 77 208 — 208 
Interest charges285 161 446 448 
Income (Loss) Before Income Taxes618 414 1,032 (4)1,028 
Income tax expense (benefit)67 98 165 (4)161 
Net Income551 316 867 — 867 
Other segment items2
(1)(1)(2)— (2)
Net Income Available to Common Stockholder$550 $315 $865 $— $865 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Other segment items comprise preferred stock dividends.
Consumers Energy Company  
Segment Reporting Information [Line Items]  
Reportable Segments Reportable Segments
Reportable segments consist of business units defined by the products and services they offer. CMS Energy’s and Consumers’ chief operating decision-maker is the CEO. The chief operating decision-maker evaluates segment performance and profitability using net income available to CMS Energy’s common stockholders. This metric provides a clear, consistent basis for analyzing the financial results of each segment and supports decision-making regarding the allocation of resources.
Resource allocation to CMS Energy’s and Consumers’ segments begins with the annual budgeting process, which establishes initial funding and resource levels for each segment. The budget incorporates key financial and operational inputs, including anticipated revenues, expenses, and capital requirements, aligning with CMS Energy’s and Consumers’ strategic objectives and regulatory obligations. The chief operating decision-maker reviews budget-to-actual variances on a monthly basis and makes interim decisions to reallocate resources among segments as needed, ensuring a timely and effective response to changing conditions. For the electric utility and gas utility segments, the chief operating decision-maker uses this assessment to determine whether the segments are achieving their regulatory authorized return on equity.
Accounting policies for CMS Energy’s and Consumers’ segments are as described in Note 1, Significant Accounting Policies. The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of the individual segments when appropriate. Accounts are allocated among the segments when common accounts are attributable to more than one segment. The allocations are based on certain measures of business activities, such as revenue, labor dollars, customers, other operating and maintenance expense, construction expense, leased property, taxes, or functional surveys. For example, customer receivables are allocated based on revenue, and pension provisions are allocated based on labor dollars.
Inter-segment sales and transfers are accounted for at current market prices and are eliminated in consolidated net income available to common stockholders by segment. Inter-segment sales and transfers were immaterial for all periods presented.
CMS Energy
The segments reported for CMS Energy are:
electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
NorthStar Clean Energy, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production
CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items.
Consumers
The segments reported for Consumers are:
electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
Consumers’ other consolidated entities are presented within other reconciling items.
Presented in the following tables is financial information by segment:
In Millions
Year Ended December 31, 2025Electric UtilityGas UtilityNorthStar Clean EnergySegments TotalOther Reconciling ItemsConsolidated
CMS Energy, including Consumers
Operating revenue$5,638 $2,493 $408 $8,539 $— $8,539 
Operating expenses
Power supply cost1
2,193 — 264 2,457 — 2,457 
Cost of gas sold— 803 809 — 809 
Maintenance and other operating expenses1,146 468 100 1,714 13 1,727 
Depreciation and amortization903 350 52 1,305 1,306 
General taxes297 201 14 512 513 
Total operating expenses4,539 1,822 436 6,797 15 6,812 
Operating Income (Loss)1,099 671 (28)1,742 (15)1,727 
Other income2
124 83 17 224 86 310 
Interest charges353 206 (7)552 237 789 
Income (Loss) Before Income Taxes870 548 (4)1,414 (166)1,248 
Income tax expense (benefit)150 138 (4)284 (38)246 
Income (Loss) From Continuing Operations720 410 — 1,130 (128)1,002 
Other segment items3
(1)(1)71 69 (10)59 
Net Income (Loss) Available to Common Stockholders$719 $409 $71 $1,199 $(138)$1,061 
Property, plant, and equipment, gross$21,871 
4
$14,218 
4
$1,649 $37,738 $25 $37,763 
Investments in equity method investees— — 61 61 — 61 
Total assets22,760 
4
14,188 
4
2,496 39,444 497 39,941 
Capital expenditures5
2,408 
6
1,064 
6
498 3,970 — 3,970 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Includes income from equity method investees of $5 million attributable to NorthStar Clean Energy. See Note 16, Other Income and Other Expense
3Other segment items comprise loss attributable to noncontrolling interests and preferred stock dividends.
4Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
5Amounts include assets placed under finance lease.
6Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
In Millions
Year Ended December 31, 2025Electric UtilityGas UtilitySegments TotalOther Reconciling ItemsConsolidated
Consumers
Operating revenue$5,638 $2,493 $8,131 $$8,132 
Operating expenses
Power supply cost1
2,193 — 2,193 — 2,193 
Cost of gas sold— 803 803 — 803 
Maintenance and other operating expenses1,146 468 1,614 — 1,614 
Depreciation and amortization903 350 1,253 1,254 
General taxes297 201 498 499 
Total operating expenses4,539 1,822 6,361 6,363 
Operating Income (Loss)1,099 671 1,770 (1)1,769 
Other income124 83 207 208 
Interest charges353 206 559 560 
Income (Loss) Before Income Taxes870 548 1,418 (1)1,417 
Income tax expense150 138 288 — 288 
Net Income (Loss)720 410 1,130 (1)1,129 
Other segment items2
(1)(1)(2)— (2)
Net Income (Loss) Available to Common Stockholder$719 $409 $1,128 $(1)$1,127 
Property, plant, and equipment, gross$21,871 
3
$14,218 
3
$36,089 $31 $36,120 
Total assets22,814 
3
14,229 
3
37,043 48 37,091 
Capital expenditures4
2,408 
5
1,064 
5
3,472 — 3,472 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Other segment items comprise preferred stock dividends.
3Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
4Amounts include assets placed under finance lease.
5Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
In Millions
Year Ended December 31, 2024Electric UtilityGas UtilityNorthStar Clean EnergySegments TotalOther Reconciling ItemsConsolidated
CMS Energy, including Consumers
Operating revenue$5,061 $2,138 $316 $7,515 $— $7,515 
Operating expenses
Power supply cost1
1,867 — 161 2,028 — 2,028 
Cost of gas sold— 637 640 — 640 
Maintenance and other operating expenses1,066 454 101 1,621 17 1,638 
Depreciation and amortization865 325 49 1,239 1,240 
General taxes281 188 12 481 482 
Total operating expenses4,079 1,604 326 6,009 19 6,028 
Operating Income (Loss)982 534 (10)1,506 (19)1,487 
Other income2
126 86 14 226 118 344 
Interest charges324 192 520 188 708 
Income (Loss) Before Income Taxes784 428 — 1,212 (89)1,123 
Income tax expense (benefit)102 99 (5)196 (20)176 
Income (Loss) From Continuing Operations682 329 1,016 (69)947 
Other segment items3
(1)(1)58 56 (10)46 
Net Income (Loss) Available to Common Stockholders$681 $328 $63 $1,072 $(79)$993 
Property, plant, and equipment, gross$20,137 
4
$13,268 
4
$1,506 $34,911 $21 $34,932 
Investments in equity method investees— — 64 64 — 64 
Total assets20,710 
4
13,247 
4
1,893 35,850 70 35,920 
Capital expenditures5
1,871 
6
1,141 
6
288 $3,300 3,301 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Includes income from equity method investees of $7 million attributable to NorthStar Clean Energy. See Note 16, Other Income and Other Expense.
3Other segment items comprise loss attributable to noncontrolling interests and preferred stock dividends.
4Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
5Amounts include assets placed under finance lease.
6Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
In Millions
Year Ended December 31, 2024Electric UtilityGas UtilitySegments TotalOther Reconciling ItemsConsolidated
Consumers
Operating revenue$5,061 $2,138 $7,199 $$7,200 
Operating expenses
Power supply cost1
1,867 — 1,867 — 1,867 
Cost of gas sold— 637 637 — 637 
Maintenance and other operating expenses1,066 454 1,520 — 1,520 
Depreciation and amortization865 325 1,190 1,191 
General taxes281 188 469 470 
Total operating expenses4,079 1,604 5,683 5,685 
Operating Income (Loss)982 534 1,516 (1)1,515 
Other income126 86 212 — 212 
Interest charges324 192 516 518 
Income (Loss) Before Income Taxes784 428 1,212 (3)1,209 
Income tax expense (benefit)102 99 201 (1)200 
Net Income (Loss)682 329 1,011 (2)1,009 
Other segment items2
(1)(1)(2)— (2)
Net Income (Loss) Available to Common Stockholder$681 $328 $1,009 $(2)$1,007 
Property, plant, and equipment, gross$20,137 
3
$13,268 
3
$33,405 $29 $33,434 
Total assets20,767 
3
13,289 
3
34,056 32 34,088 
Capital expenditures4
1,871 
5
1,141 
5
3,012 — 3,012 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Other segment items comprise preferred stock dividends.
3Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
4Amounts include assets placed under finance lease.
5Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
In Millions
Year Ended December 31, 2023Electric UtilityGas UtilityNorthStar Clean EnergySegments TotalOther Reconciling ItemsConsolidated
CMS Energy, including Consumers
Operating revenue$4,745 $2,420 $297 $7,462 $— $7,462 
Operating expenses
Power supply cost1
1,841 — 170 2,011 — 2,011 
Cost of gas sold— 897 902 — 902 
Maintenance and other operating expenses1,075 511 88 1,674 13 1,687 
Depreciation and amortization797 338 43 1,178 1,180 
General taxes260 176 10 446 447 
Total operating expenses3,973 1,922 316 6,211 16 6,227 
Operating Income (Loss)772 498 (19)1,251 (16)1,235 
Other income2
131 77 12 220 142 362 
Interest charges285 161 448 195 643 
Income (Loss) Before Income Taxes618 414 (9)1,023 (69)954 
Income tax expense (benefit)67 98 169 (22)147 
Income (Loss) From Continuing Operations551 316 (13)854 (47)807 
Other segment items3
(1)(1)80 78 (8)70 
Net Income (Loss) Available to Common Stockholders$550 $315 $67 $932 $(55)$877 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Includes income from equity method investees of $7 million attributable to NorthStar Clean Energy. See Note 16, Other Income and Other Expense.
3Other segment items comprise income from discontinued operations, net of tax, loss attributable to noncontrolling interests, and preferred stock dividends.
In Millions
Year Ended December 31, 2023Electric UtilityGas UtilitySegments TotalOther Reconciling ItemsConsolidated
Consumers
Operating revenue$4,745 $2,420 $7,165 $$7,166 
Operating expenses
Power supply cost1
1,841 — 1,841 — 1,841 
Cost of gas sold— 897 897 — 897 
Maintenance and other operating expenses1,075 511 1,586 — 1,586 
Depreciation and amortization797 338 1,135 1,137 
General taxes260 176 436 437 
Total operating expenses3,973 1,922 5,895 5,898 
Operating Income (Loss)772 498 1,270 (2)1,268 
Other income131 77 208 — 208 
Interest charges285 161 446 448 
Income (Loss) Before Income Taxes618 414 1,032 (4)1,028 
Income tax expense (benefit)67 98 165 (4)161 
Net Income551 316 867 — 867 
Other segment items2
(1)(1)(2)— (2)
Net Income Available to Common Stockholder$550 $315 $865 $— $865 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Other segment items comprise preferred stock dividends.
v3.25.4
Related party Transactions - Consumers
12 Months Ended
Dec. 31, 2025
Consumers Energy Company  
Related Party Transaction [Line Items]  
Related party Transactions - Consumers Related-party Transactions—Consumers
Consumers enters into a number of transactions with related parties in the normal course of business. These transactions include but are not limited to:
purchases of electricity from affiliates of NorthStar Clean Energy
payments to and from CMS Energy related to parent company overhead costs
payments of principal and interest when due to CMS Energy related to borrowings under certain credit agreements and CMS Energy’s repurchase of Consumers’ first mortgage bonds
Transactions involving power supply purchases from certain affiliates of NorthStar Clean Energy are based on 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. Purchases of power and capacity from affiliates of NorthStar Clean Energy totaled $94 million in 2025, $71 million in 2024, and $75 million in 2023.
Amounts payable to related parties for purchased power and other services were $19 million at December 31, 2025 and $20 million at December 31, 2024. Accounts receivable from related parties were $13 million at December 31, 2025 and $15 million at December 31, 2024.
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, 2025 and 2024. For more information about Consumers’ note receivable – related party, see Note 7, Financial Instruments.
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 9, Leases.
CMS Energy has repurchased certain of Consumers’ first mortgage bonds. Interest payable to related parties was $9 million at December 31, 2025 and $7 million at December 31, 2024. For more information about these repurchases, see Note 5, Financings and Capitalization—CMS Energy’s Purchase of Consumers’ First Mortgage Bonds.
In December 2025, 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 5, Financings and Capitalization—Short-term Borrowings.
v3.25.4
Variable Interest Entities
12 Months Ended
Dec. 31, 2025
Variable Interest Entity [Line Items]  
Variable Interest Entities Variable Interest Entities
Consolidated VIEs: In March 2025, NorthStar Clean Energy sold a 50‑percent interest in NWO Wind Equity Holdings for net proceeds of $36 million. NWO Wind Equity Holdings holds the Class B membership interest in NWO Holdco, the holding company of a 100‑MW wind project located in Paulding County, Ohio. Additionally in March 2025, NorthStar Clean Energy sold a 50‑percent interest in Delta Solar Equity Holdings for net proceeds of $8 million. Delta Solar Equity Holdings is the holding company of a 24‑MW solar project located in Delta Township, Michigan.
In December 2025, NorthStar Clean Energy sold a Class A membership interest in BG Solar Holdings to a tax equity investor. BG Solar Holdings is the holding company of a 200‑MW solar generation project being constructed in Branch County, Michigan. All of the project’s nameplate capacity has been committed under a 15‑year renewable energy purchase agreement. The tax equity investor contributed $15 million and recognized a deemed contribution of $35 million associated with BG Solar Holdings’ sale of investment tax credits related to a portion of the project placed into service for tax purposes in 2025. The tax equity investor will contribute additional amounts upon commercial operation of the project in 2026.
NorthStar Clean Energy consolidates these and other entities that it does not wholly own, but for which it manages and controls the entities’ operating activities. NorthStar Clean Energy is the primary beneficiary of these entities because 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. Presented in the following table is information about the VIEs NorthStar Clean Energy consolidates:
Consolidated VIENorthStar Clean Energy’s ownership interestDescription of VIE
Aviator Wind Equity Holdings
51-percent ownership interest1
Holds a Class B membership interest in Aviator Wind
Aviator Wind
Class B membership interest2
Holding company of a 525-MW wind generation project in Coke County, Texas
BG Solar Holdings
Class B membership interest2
Holding company of a 200-MW solar generation project in Branch County, Michigan
Delta Solar Equity Holdings
50-percent ownership interest1
Holding company of a 24-MW solar generation project in Delta Township, Michigan
Newport Solar Holdings
Class B membership interest2
Holding company of a 180‑MW solar generation project in Jackson County, Arkansas
NWO Wind Equity Holdings
50‑percent ownership interest1
Holds a Class B membership interest in NWO Holdco
NWO Holdco
Class B membership interest2
Holding company of a 100-MW wind generation project in Paulding County, Ohio
1The remaining ownership interest is presented as noncontrolling interest on CMS Energy’s consolidated balance sheets.
2The Class A membership interest in the entity is held by a tax equity investor and is presented as noncontrolling interest on CMS Energy’s consolidated balance sheets. Under the associated limited liability company agreement, the tax equity investor is guaranteed preferred returns from the entity.
Earnings, tax attributes, and cash flows generated by the entities in which NorthStar Clean Energy holds a Class B membership are allocated among and distributed to the membership classes in accordance with
the ratios specified in the associated limited liability company agreements; these ratios change over time and are not representative of the ownership interest percentages of each membership class. Since these entities’ income and cash flows are not distributed among their investors based on ownership interest percentages, NorthStar Clean Energy allocates the entities’ income (loss) among the investors by applying the hypothetical liquidation at book value method. This method calculates each investor’s earnings based on a hypothetical liquidation of the entities at the net book value of underlying assets as of the balance sheet date. The liquidation tax gain (loss) is allocated to each investor’s capital account, resulting in income (loss) equal to the period change in the investor’s capital account balance.
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 3120252024
Current
Cash and cash equivalents$20 $18 
Restricted cash19 — 
Accounts receivable42 
Prepayments and other current assets
Non-current
Plant, property, and equipment, net1,037 1,024 
Construction work in progress357 — 
Other non-current assets
Total assets1
$1,485 $1,052 
Current
Current portion of long-term debt and finance leases$65 $— 
Accounts payable29 
Non-current
Long-term debt118 — 
Non-current portion of finance leases39 23 
AROs38 33 
Other non-current liabilities— 
Total liabilities$292 $64 
1Assets may be used only to meet VIEs’ obligations and commitments.
NorthStar Clean Energy is obligated under certain indemnities that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. For additional details on these indemnity obligations, see Note 4, Contingencies and Commitments—Guarantees.
Consumers’ wholly-owned subsidiaries, Consumers 2014 Securitization Funding and Consumers 2023 Securitization Funding, are VIEs designed to collateralize Consumers’ securitization bonds. These entities are considered VIEs primarily because their equity capitalization is insufficient to support their operations. Consumers is the primary beneficiary of and consolidates these VIEs, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies. The VIEs’ primary assets and liabilities comprise non-current regulatory assets and long-term debt. For more information on
these assets and liabilities, see Note 3, Regulatory Matters—Securitized Costs and Note 5, Financings and Capitalization—Securitization Bonds
Non-consolidated VIEs: NorthStar Clean Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While NorthStar Clean 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, which are accounted for using the equity method:
NameNature of the EntityNature of NorthStar Clean 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, NorthStar Clean Energy, or Consumers. NorthStar Clean Energy’s maximum risk exposure to these partnerships is generally limited to its investment in the partnerships, which is included in investments on CMS Energy’s consolidated balance sheets in the amount of $54 million at December 31, 2025 and $64 million at December 31, 2024.
Consumers Energy Company  
Variable Interest Entity [Line Items]  
Variable Interest Entities Variable Interest Entities
Consolidated VIEs: In March 2025, NorthStar Clean Energy sold a 50‑percent interest in NWO Wind Equity Holdings for net proceeds of $36 million. NWO Wind Equity Holdings holds the Class B membership interest in NWO Holdco, the holding company of a 100‑MW wind project located in Paulding County, Ohio. Additionally in March 2025, NorthStar Clean Energy sold a 50‑percent interest in Delta Solar Equity Holdings for net proceeds of $8 million. Delta Solar Equity Holdings is the holding company of a 24‑MW solar project located in Delta Township, Michigan.
In December 2025, NorthStar Clean Energy sold a Class A membership interest in BG Solar Holdings to a tax equity investor. BG Solar Holdings is the holding company of a 200‑MW solar generation project being constructed in Branch County, Michigan. All of the project’s nameplate capacity has been committed under a 15‑year renewable energy purchase agreement. The tax equity investor contributed $15 million and recognized a deemed contribution of $35 million associated with BG Solar Holdings’ sale of investment tax credits related to a portion of the project placed into service for tax purposes in 2025. The tax equity investor will contribute additional amounts upon commercial operation of the project in 2026.
NorthStar Clean Energy consolidates these and other entities that it does not wholly own, but for which it manages and controls the entities’ operating activities. NorthStar Clean Energy is the primary beneficiary of these entities because 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. Presented in the following table is information about the VIEs NorthStar Clean Energy consolidates:
Consolidated VIENorthStar Clean Energy’s ownership interestDescription of VIE
Aviator Wind Equity Holdings
51-percent ownership interest1
Holds a Class B membership interest in Aviator Wind
Aviator Wind
Class B membership interest2
Holding company of a 525-MW wind generation project in Coke County, Texas
BG Solar Holdings
Class B membership interest2
Holding company of a 200-MW solar generation project in Branch County, Michigan
Delta Solar Equity Holdings
50-percent ownership interest1
Holding company of a 24-MW solar generation project in Delta Township, Michigan
Newport Solar Holdings
Class B membership interest2
Holding company of a 180‑MW solar generation project in Jackson County, Arkansas
NWO Wind Equity Holdings
50‑percent ownership interest1
Holds a Class B membership interest in NWO Holdco
NWO Holdco
Class B membership interest2
Holding company of a 100-MW wind generation project in Paulding County, Ohio
1The remaining ownership interest is presented as noncontrolling interest on CMS Energy’s consolidated balance sheets.
2The Class A membership interest in the entity is held by a tax equity investor and is presented as noncontrolling interest on CMS Energy’s consolidated balance sheets. Under the associated limited liability company agreement, the tax equity investor is guaranteed preferred returns from the entity.
Earnings, tax attributes, and cash flows generated by the entities in which NorthStar Clean Energy holds a Class B membership are allocated among and distributed to the membership classes in accordance with
the ratios specified in the associated limited liability company agreements; these ratios change over time and are not representative of the ownership interest percentages of each membership class. Since these entities’ income and cash flows are not distributed among their investors based on ownership interest percentages, NorthStar Clean Energy allocates the entities’ income (loss) among the investors by applying the hypothetical liquidation at book value method. This method calculates each investor’s earnings based on a hypothetical liquidation of the entities at the net book value of underlying assets as of the balance sheet date. The liquidation tax gain (loss) is allocated to each investor’s capital account, resulting in income (loss) equal to the period change in the investor’s capital account balance.
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 3120252024
Current
Cash and cash equivalents$20 $18 
Restricted cash19 — 
Accounts receivable42 
Prepayments and other current assets
Non-current
Plant, property, and equipment, net1,037 1,024 
Construction work in progress357 — 
Other non-current assets
Total assets1
$1,485 $1,052 
Current
Current portion of long-term debt and finance leases$65 $— 
Accounts payable29 
Non-current
Long-term debt118 — 
Non-current portion of finance leases39 23 
AROs38 33 
Other non-current liabilities— 
Total liabilities$292 $64 
1Assets may be used only to meet VIEs’ obligations and commitments.
NorthStar Clean Energy is obligated under certain indemnities that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. For additional details on these indemnity obligations, see Note 4, Contingencies and Commitments—Guarantees.
Consumers’ wholly-owned subsidiaries, Consumers 2014 Securitization Funding and Consumers 2023 Securitization Funding, are VIEs designed to collateralize Consumers’ securitization bonds. These entities are considered VIEs primarily because their equity capitalization is insufficient to support their operations. Consumers is the primary beneficiary of and consolidates these VIEs, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies. The VIEs’ primary assets and liabilities comprise non-current regulatory assets and long-term debt. For more information on
these assets and liabilities, see Note 3, Regulatory Matters—Securitized Costs and Note 5, Financings and Capitalization—Securitization Bonds
Non-consolidated VIEs: NorthStar Clean Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While NorthStar Clean 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, which are accounted for using the equity method:
NameNature of the EntityNature of NorthStar Clean 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, NorthStar Clean Energy, or Consumers. NorthStar Clean Energy’s maximum risk exposure to these partnerships is generally limited to its investment in the partnerships, which is included in investments on CMS Energy’s consolidated balance sheets in the amount of $54 million at December 31, 2025 and $64 million at December 31, 2024.
v3.25.4
Exit Activities and Asset Sales
12 Months Ended
Dec. 31, 2025
Restructuring Cost and Reserve [Line Items]  
Exit Activities and Asset Sales Exit Activities and Asset Sales
J.H. Campbell Retirement: Under its integrated resource plan, Consumers had planned to retire J.H. Campbell in 2025. In order to ensure necessary staffing at J.H. Campbell through the planned retirement, Consumers implemented a retention incentive program. Consumers made final payments under this retention plan in November 2025. The aggregate cost of this program was $48 million, which has been deferred as a regulatory asset. The MPSC has approved recovery of these retention costs over three years.
The retirement of J.H. Campbell is subject to temporary extensions under emergency orders issued by the U.S. Secretary of Energy. As a result, Consumers has implemented retention measures to ensure appropriate staffing levels and expects to incur up to $4 million during each 90‑day emergency order period. Consumers will seek recovery of these retention costs from FERC, consistent with rate recovery sought for other costs of complying with the emergency orders. For additional information on the emergency orders associated with J.H. Campbell, see Note 3, Regulatory Matters.
Presented in the following table is a reconciliation of the retention benefit liability recorded in other current liabilities on Consumers’ consolidated balance sheets:
In Millions
Year Ended December 3120252024
Retention benefit liability at beginning of period$14 $16 
Costs deferred as a regulatory asset
Costs paid or settled(19)(10)
Retention benefit liability at the end of the period
$$14 
Sale of Hydroelectric Facilities: In September 2025, Consumers signed an agreement to sell its 13 river hydroelectric dams, which are located throughout Michigan, to a non-affiliated company. Additionally, Consumers signed an agreement to purchase power generated by the facilities for 30 years, at a price that reflects the counterparty’s acceptance of the risks and rewards of ownership of the facilities, including FERC licensing obligations. The agreements are contingent upon MPSC and FERC approval, for which Consumers filed in October 2025. Timing of the regulatory review process is uncertain and could extend 12 to 18 months or longer. In Consumers’ most recent electric rate case, the MPSC approved deferred accounting treatment for costs of owning and operating the hydroelectric dams pending and until completion of the transaction. At December 31, 2025, the net book value of the hydroelectric facilities was immaterial.
To ensure necessary staffing at the hydroelectric facilities through the anticipated sale, Consumers has provided current employees at the facilities with a retention incentive program. Subsequently, to ensure continued safe operation of the facilities after the sale, the buyer will offer employment to the current hydroelectric employees for a period of at least a year. The retention incentive benefits are contingent upon MPSC and FERC approval of the sale transaction.
Consumers Energy Company  
Restructuring Cost and Reserve [Line Items]  
Exit Activities and Asset Sales Exit Activities and Asset Sales
J.H. Campbell Retirement: Under its integrated resource plan, Consumers had planned to retire J.H. Campbell in 2025. In order to ensure necessary staffing at J.H. Campbell through the planned retirement, Consumers implemented a retention incentive program. Consumers made final payments under this retention plan in November 2025. The aggregate cost of this program was $48 million, which has been deferred as a regulatory asset. The MPSC has approved recovery of these retention costs over three years.
The retirement of J.H. Campbell is subject to temporary extensions under emergency orders issued by the U.S. Secretary of Energy. As a result, Consumers has implemented retention measures to ensure appropriate staffing levels and expects to incur up to $4 million during each 90‑day emergency order period. Consumers will seek recovery of these retention costs from FERC, consistent with rate recovery sought for other costs of complying with the emergency orders. For additional information on the emergency orders associated with J.H. Campbell, see Note 3, Regulatory Matters.
Presented in the following table is a reconciliation of the retention benefit liability recorded in other current liabilities on Consumers’ consolidated balance sheets:
In Millions
Year Ended December 3120252024
Retention benefit liability at beginning of period$14 $16 
Costs deferred as a regulatory asset
Costs paid or settled(19)(10)
Retention benefit liability at the end of the period
$$14 
Sale of Hydroelectric Facilities: In September 2025, Consumers signed an agreement to sell its 13 river hydroelectric dams, which are located throughout Michigan, to a non-affiliated company. Additionally, Consumers signed an agreement to purchase power generated by the facilities for 30 years, at a price that reflects the counterparty’s acceptance of the risks and rewards of ownership of the facilities, including FERC licensing obligations. The agreements are contingent upon MPSC and FERC approval, for which Consumers filed in October 2025. Timing of the regulatory review process is uncertain and could extend 12 to 18 months or longer. In Consumers’ most recent electric rate case, the MPSC approved deferred accounting treatment for costs of owning and operating the hydroelectric dams pending and until completion of the transaction. At December 31, 2025, the net book value of the hydroelectric facilities was immaterial.
To ensure necessary staffing at the hydroelectric facilities through the anticipated sale, Consumers has provided current employees at the facilities with a retention incentive program. Subsequently, to ensure continued safe operation of the facilities after the sale, the buyer will offer employment to the current hydroelectric employees for a period of at least a year. The retention incentive benefits are contingent upon MPSC and FERC approval of the sale transaction.
v3.25.4
Schedule I - Condensed Financial Information of Registrant
12 Months Ended
Dec. 31, 2025
Condensed Financial Information Disclosure [Abstract]  
Schedule I - Condensed Financial Information of Registrant
Condensed Statements of Income
In Millions
Years Ended December 31202520242023
Operating Expenses
Other operating expenses$$10 $10 
Total operating expenses10 10 
Operating Loss(9)(10)(10)
Other Income (Expense)
Equity earnings of subsidiaries1,189 1,061 929 
Nonoperating retirement benefits, net(1)(1)(1)
Other income69 45 31 
Other expense(2)— — 
Total other income1,255 1,105 959 
Interest Charges
Interest on long-term debt266 205 201 
Intercompany interest expense and other10 10 10 
Total interest charges276 215 211 
Income Before Income Taxes970 880 738 
Income Tax Benefit(39)(19)(20)
Net Income Attributable to CMS Energy1,009 899 758 
Preferred Stock Dividends10 10 10 
Net Income Available to Common Stockholders$999 $889 $748 
The accompanying notes are an integral part of these statements.
CMS Energy—Parent Company
Condensed Statements of Cash Flows
In Millions
Years Ended December 31202520242023
Cash Flows from Operating Activities
Net cash provided by operating activities$817 $774 $595 
Cash Flows from Investing Activities
Capital expenditures(1)(1)— 
Investment in subsidiaries(1,062)(535)(630)
Investment in debt securities – intercompany(109)(288)(293)
Decrease (increase) in notes receivable – intercompany(309)21 55 
Proceeds from DB SERP investments— — 
Net cash used in investing activities(1,478)(803)(868)
Cash Flows from Financing Activities
Proceeds from issuance of debt2,110 490 800 
Issuance of common stock525 286 192 
Retirement of long-term debt(850)(250)— 
Payment of dividends on common and preferred stock(663)(626)(579)
Debt issuance costs and financing fees(39)(10)(20)
Change in notes payable – intercompany(6)(7)
Net cash provided by (used in) financing activities1,086 (116)386 
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts425 (145)113 
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period149 36 
Cash and Cash Equivalents, Including Restricted Amounts, End of Period$429 $$149 
The accompanying notes are an integral part of these statements.
CMS Energy—Parent Company
Condensed Balance Sheets
ASSETS
In Millions
December 3120252024
Current Assets
Cash and cash equivalents$429 $
Notes and accrued interest receivable – intercompany350 40 
Accounts receivable – intercompany and related parties
Prepayments and other current assets
Total current assets788 53 
Other Non‑current Assets
Property, plant, and equipment
Deferred income taxes105 150 
Investments in subsidiaries13,724 12,400 
Investment in debt securities – intercompany710 591 
Other investments
Other23 21 
Total other non‑current assets14,571 13,172 
Total Assets$15,359 $13,225 
LIABILITIES AND EQUITY
In Millions
December 3120252024
Current Liabilities
Current portion of long-term debt$300 $740 
Accounts and notes payable – intercompany89 74 
Accrued interest, including intercompany43 34 
Accrued taxes41 16 
Other current liabilities
Total current liabilities481 870 
Non‑current Liabilities
Long-term debt5,906 4,226 
Notes payable – intercompany96 100 
Postretirement benefits13 14 
Other non‑current liabilities14 17 
Total non‑current liabilities6,029 4,357 
Equity
Common stock
Other stockholders’ equity8,622 7,771 
Total common stockholders’ equity8,625 7,774 
Preferred stock224 224 
Total equity8,849 7,998 
Total Liabilities and Equity$15,359 $13,225 
The accompanying notes are an integral part of these statements.
Basis of Presentation
CMS Energy’s condensed financial statements have been prepared on a parent-only basis. In accordance with Rule 1204 of Regulation SX, 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 $1.3 billion on behalf of some of its wholly owned subsidiaries and related parties. CMS Energy’s maximum potential obligation consists primarily of potential payments:
to third parties under certain commodity purchase and sales agreements entered into by CMS ERM and other subsidiaries of NorthStar Clean Energy
to tax equity investors that hold membership interests in certain VIEs held by NorthStar Clean Energy
to EGLE on behalf of CMS Land and CMS Capital, for environmental remediation obligations at Bay Harbor
to the DOE on behalf of Consumers, in connection with Consumers’ 2011 settlement agreement with the DOE regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers
The expiration dates of these guarantees vary, depending upon contractual provisions or upon the statute of limitations under the relevant governing law.
v3.25.4
Schedule II - Valuation and Qualifying Accounts and Reserves
12 Months Ended
Dec. 31, 2025
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, 2025, 2024, and 2023
In Millions
DescriptionBalance at Beginning of PeriodCharged to Expense
Charged to Other Accounts
DeductionsBalance at End of Period
Allowance for uncollectible accounts1
2025$23 $40 $— $36 $27 
202421 33 — 31 23 
202327 34 — 40 21 
Deferred tax valuation allowance
2025$$$— $— $
2024— — 
2023— — — 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
Consumers Energy Company
Years Ended December 31, 2025, 2024, and 2023
In Millions
DescriptionBalance at Beginning of PeriodCharged to ExpenseCharged to Other AccountsDeductionsBalance at End of Period
Allowance for uncollectible accounts1
2025$23 $40 $— $36 $27 
202421 33 — 31 23 
202327 34 — 40 21 
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, 2025, 2024, and 2023
In Millions
DescriptionBalance at Beginning of PeriodCharged to Expense
Charged to Other Accounts
DeductionsBalance at End of Period
Allowance for uncollectible accounts1
2025$23 $40 $— $36 $27 
202421 33 — 31 23 
202327 34 — 40 21 
Deferred tax valuation allowance
2025$$$— $— $
2024— — 
2023— — — 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
Consumers Energy Company
Years Ended December 31, 2025, 2024, and 2023
In Millions
DescriptionBalance at Beginning of PeriodCharged to ExpenseCharged to Other AccountsDeductionsBalance at End of Period
Allowance for uncollectible accounts1
2025$23 $40 $— $36 $27 
202421 33 — 31 23 
202327 34 — 40 21 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
v3.25.4
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block] CMS Energy’s and Consumers’ security function, led by the Vice President of IT and Security and CIO, is accountable for cyber and physical security and is subject to various state, federal, and industry cybersecurity, physical security, and privacy regulations. Their cybersecurity program is responsible for assessing, identifying, and managing risks from cybersecurity threats using industry frameworks, as well as best practices developed by government and industry partners. All employees and contractors are required to complete annual trainings on a variety of security-related
topics. Additionally, the companies continuously upgrade technological investments designed to prevent, detect, and respond to attacks. The companies’ electric, natural gas, and corporate systems each follow standards, controls, and requirements designed to maintain compliance with applicable regulations and standards, such as MPSC, NERC critical infrastructure protection, and payment card industry regulations. Technology projects and third-party service providers are reviewed for adherence to cybersecurity requirements.
CMS Energy’s and Consumers’ cybersecurity program focuses on finding and remediating vulnerabilities in their systems. The companies use third-party firms for penetration testing, audits, and assessments, and conduct technical exercises to practice their response to simulated events as well as tabletop exercises to test that response using their incident command system, including leadership decisions. The companies also have a dedicated, proactive function focused fully on monitoring CMS Energy’s and Consumers’ systems and responding when cybersecurity attacks occur. This includes regular information sharing with industry partners, peer utilities, and state and federal partners. The companies’ incident response plan outlines the individuals responsible, the methods employed, and the timeline for notifying state and federal governmental agencies. The companies retain a third-party cybersecurity firm to assist with potentially significant cybersecurity incidents and have invested in cybersecurity insurance to offset costs incurred from any such cybersecurity incidents. To manage cybersecurity risks associated with the companies’ use of third-party service providers, the companies incorporate security requirements into contracts, when deemed applicable, and pursue third-party security certifications for vendors with a higher risk profile.
CMS Energy and Consumers have experienced no material cybersecurity incidents; however, future cybersecurity incidents could materially affect their business strategy, results of operations, or financial condition. For additional details regarding these and other uncertainties, see Item 1A. Risk Factors.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] CMS Energy’s and Consumers’ security function, led by the Vice President of IT and Security and CIO, is accountable for cyber and physical security and is subject to various state, federal, and industry cybersecurity, physical security, and privacy regulations. Their cybersecurity program is responsible for assessing, identifying, and managing risks from cybersecurity threats using industry frameworks, as well as best practices developed by government and industry partners.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block] As part of the Board’s risk oversight process, senior management meets with the Board or Audit Committee at least twice annually to provide updates on and discuss cybersecurity. Such updates include a review of the companies’ cybersecurity strategy, a scan of the threat landscape, and recent performance. Additionally, cybersecurity risks are included in the Audit Committee’s risk oversight functions, which focus on operating and financial activities that could impact the companies’ financial and other disclosure reporting. The Audit Committee’s oversight involves reviewing and approving policies on risk assessment, controls, and accounting risk exposure. The Audit Committee also reviews internal audit reports regarding cybersecurity processes, and receives updates that focus on CMS Energy’s and Consumers’ cybersecurity program, mitigation of cybersecurity risks, and assessments by third-party experts. Of note, two members of the Board have extensive industry experience in cybersecurity and are on CMS Energy’s and Consumers’ Audit Committee.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Vice President of IT and Security and CIO has over 25 years of IT and security experience and, to enhance governance, reports to the Executive Vice President of Business Transformation and Chief Legal and Administrative Officer.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Vice President of IT and Security and CIO has over 25 years of IT and security experience and, to enhance governance, reports to the Executive Vice President of Business Transformation and Chief Legal and Administrative Officer. The Vice President of IT and Security and CIO is responsible for informing the CEO and other members of senior management, as necessary, about cybersecurity incidents, covering prevention, detection, mitigation, and remediation efforts as they are detected by the cybersecurity team. Cybersecurity incidents are managed using the companies’ standard process for critical events. In the event of such cybersecurity incidents, the Vice President of IT and Security and CIO communicates and collaborates with the officers of the companies and subject matter experts to address business continuity, contingency, and recovery plans. Senior management will notify the Board, including the Audit Committee, of any significant cybersecurity incidents.
Cybersecurity Risk Role of Management [Text Block] Management’s Role: The Vice President of IT and Security and CIO has over 25 years of IT and security experience and, to enhance governance, reports to the Executive Vice President of Business Transformation and Chief Legal and Administrative Officer. The Vice President of IT and Security and CIO is responsible for informing the CEO and other members of senior management, as necessary, about cybersecurity incidents, covering prevention, detection, mitigation, and remediation efforts as they are detected by the cybersecurity team. Cybersecurity incidents are managed using the companies’ standard process for critical events. In the event of such cybersecurity incidents, the Vice President of IT and Security and CIO communicates and collaborates with the officers of the companies and subject matter experts to address business continuity, contingency, and recovery plans. Senior management will notify the Board, including the Audit Committee, of any significant cybersecurity incidents.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] The Vice President of IT and Security and CIO has over 25 years of IT and security experience and, to enhance governance, reports to the Executive Vice President of Business Transformation and Chief Legal and Administrative Officer.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] The Vice President of IT and Security and CIO has over 25 years of IT and security experience and, to enhance governance, reports to the Executive Vice President of Business Transformation and Chief Legal and Administrative Officer.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The Vice President of IT and Security and CIO has over 25 years of IT and security experience and, to enhance governance, reports to the Executive Vice President of Business Transformation and Chief Legal and Administrative Officer. The Vice President of IT and Security and CIO is responsible for informing the CEO and other members of senior management, as necessary, about cybersecurity incidents, covering prevention, detection, mitigation, and remediation efforts as they are detected by the cybersecurity team. Cybersecurity incidents are managed using the companies’ standard process for critical events. In the event of such cybersecurity incidents, the Vice President of IT and Security and CIO communicates and collaborates with the officers of the companies and subject matter experts to address business continuity, contingency, and recovery plans. Senior management will notify the Board, including the Audit Committee, of any significant cybersecurity incidents.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Significant Accounting Policies (Policy)
12 Months Ended
Dec. 31, 2025
Significant Accounting Policies [Line Items]  
Principles of Consolidation
Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, NorthStar Clean Energy, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances.
Use of Estimates
Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Restricted Cash and Cash Equivalents
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Contingencies
Contingencies: CMS Energy and Consumers record estimated loss contingencies on their consolidated financial statements when it is probable that a loss has been incurred and when the amount of loss can be reasonably estimated. For environmental remediation projects in which the timing of estimated expenditures is considered reliably determinable, CMS Energy and Consumers record the liability at its net present value, using a discount rate equal to the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability. Unless regulatory accounting applies, CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed.
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: Upon the issuance of long-term debt, CMS Energy and Consumers defer issuance costs, discounts, and premiums and amortize those amounts over the terms of the associated debt. Debt issuance costs are presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Upon the refinancing of long-term debt, Consumers, as a regulated entity, defers any remaining unamortized issuance costs, discounts, and premiums associated with the refinanced debt and amortizes those amounts over the term of the newly issued debt. For the non‑regulated portions of CMS Energy’s business, any remaining unamortized issuance costs, discounts, and premiums associated with extinguished debt are charged to earnings.
Derivative Instruments
Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers may enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the
commodity at a contracted price. Most of these contracts are not subject to derivative accounting for one or more of the following reasons:
they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or Bcf of natural gas)
they qualify for the normal purchases and sales exception
they cannot be net settled due in part to the absence of an active market for the commodity
Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives and changes in the fair value of FTRs are deferred as regulatory assets or liabilities. For details regarding CMS Energy’s and Consumers’ derivative instruments recorded at fair value, see Note 6, Fair Value Measurements.
Electricity Market Transactions
Electricity Market Transactions: Wholesale electricity market operators require the submission of hourly day-ahead and real-time bids and offers for energy at locations across each region. CMS Energy and Consumers account for such transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all locations in the energy market. 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.
EPS EPS: CMS Energy calculates basic and diluted EPS using the weighted-average number of shares of common stock and dilutive potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted EPS, includes the effects of nonvested stock awards, forward equity sales, and convertible securities. CMS Energy computes the effect on potential common stock using the treasury stock method. Potentially dilutive common shares issuable upon conversion of the convertible senior notes are determined using the if-converted method for calculating diluted EPS. Diluted EPS excludes the impact of antidilutive securities, which are those securities resulting in an increase in EPS or a decrease in loss per share.
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.
The potentially dilutive impact from these forward equity sale contracts is reflected in diluted EPS using the treasury stock method. There will be a dilutive effect on EPS when the average market price of common stock shares is above the applicable adjusted forward sale price. Additionally, any physical settlement or net share settlement of the agreements would dilute EPS. For further details on the forward equity sale contracts, see Note 5, Financings and Capitalization.
Convertible Securities
CMS Energy has issued convertible senior notes. Potentially dilutive common shares issuable upon conversion of the convertible senior notes are determined using the if-converted method for calculating diluted EPS. Upon conversion, the convertible senior notes are required to be paid in cash with only amounts exceeding the principal permitted to be settled in shares. Accordingly, the convertible senior notes were included in the computation of diluted EPS, but not in the computation of basic EPS. The impact to diluted EPS was de minimis.
Impairment of Long-Lived Assets
Impairment of Long-lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur that indicate the carrying amount of an asset may not be recoverable or that there has been a decline in value that may be other than temporary.
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses.
Impairment of Equity Method Investments
CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary.
Investment Tax Credits Investment Tax Credits: CMS Energy and its subsidiaries use the flow-through method of accounting for investment tax credits. Under the flow-through method, the credit is recognized as a reduction to income tax expense when the related plant, property, and equipment is placed into service. For its regulated utility assets, Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment.
Inventory
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 other environmental credits as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and other environmental credits are used to satisfy compliance obligations related to the generation of power and in support of sustainability commitments. 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.
Property Taxes Property Taxes: Property taxes are based on the taxable value of CMS Energy’s and Consumers’ real and personal property assessed by local taxing authorities. CMS Energy and Consumers record property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of CMS Energy’s and Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
Implementation of New Accounting Standards and New Accounting Standards Not Yet Effective
Implementation of New Accounting Standards
ASU 2023‑09, Incomes Taxes (Topic 740): Improvements to Income Tax Disclosures: This standard, which was effective on January 1, 2025 for CMS Energy and Consumers, requires expanded annual disclosures of the income taxes, including a more detailed reconciliation of the effective tax rate and disaggregated information on federal and state income taxes. The standard also requires disclosure of significant reconciling items and qualitative information about state and local jurisdictions contributing to income tax expense. The adoption of the new standard did not impact CMS Energy’s or Consumers’ liquidity, financial condition, or results of operations. The expanded disclosures required by this standard are included in Note 13, Income Taxes.
New Accounting Standards Not Yet Effective
ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses: This standard requires public companies to provide disaggregated information about certain expense categories presented on the income statement. The guidance calls for annual and interim disclosures that separate specified components, such as employee compensation, depreciation, and amortization, within relevant expense line items in the notes to the financial statements. The standard is effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. CMS Energy and Consumers will adopt the guidance upon the effective date. The standard will not have an impact on CMS Energy’s or Consumers’ consolidated net income, cash flows, or financial position.
ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software: This standard updates guidance for capitalizing costs related to internal-use software development. The amendments remove references to the previous “project stage” model and clarify the threshold for when capitalization should begin, focusing on whether completion of the project is probable. The amendments are effective for annual and interim reporting periods beginning after December 15, 2027. The guidance may be applied on a prospective, retrospective, or modified transition basis. Early adoption is permitted. CMS Energy and Consumers are currently evaluating the new standard.
Capitalization
Capitalization: CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general ratemaking process.
Software: CMS Energy and Consumers capitalize the costs to purchase and develop internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware.
Plant Retirement and Abandonment
With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability.
AFUDC AFUDC: Consumers capitalizes AFUDC on regulated major construction projects. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset.
Planned Major Maintenance Activities
CMS Energy and Consumers record property repairs and minor property replacement as maintenance expense. CMS Energy and Consumers record planned major maintenance activities as operating expense unless the cost represents the acquisition of additional long-lived assets or the replacement of an existing long-lived asset.
Lessee
Lessee
CMS Energy and Consumers lease various assets from third parties, including coal-carrying railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for several of their PPAs as leases.
CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their consolidated balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and service vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term.
CMS Energy and Consumers include future payments for all renewal options, fair market value extensions, and buyout provisions reasonably certain of exercise in their measurement of lease right-of-use assets and lease liabilities. In addition, certain leases for service vehicles contain end-of-lease adjustment clauses based on proceeds received from the sale or disposition of the vehicles. CMS Energy and Consumers also include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their coal-carrying railcar leases.
Most of Consumers’ PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a finance lease.
Asset Retirement Obligations
CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities associated with the closure of their hydroelectric facilities and certain gas wells that have an indeterminate life or 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 and net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
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.
4The last active participant in the DB SERP retired in 2023. Thus, the determination of the associated net periodic benefit cost no longer assumes a service cost discount rate nor a rate of compensation increase.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning
of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.30 percent in 2025. The actual return on the assets of the DB Pension Plans was 12.7 percent in 2025, 3.6 percent in 2024, and 12.6 percent in 2023.
CMS Energy and Consumers amortize net gains and losses in excess of 10 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 seven years for the year ended December 31, 2025, and eight years for the years ended December 31, 2024 and 2023. For DB Pension Plan B, the estimated period of amortization of gains and losses was 17 years for the years ended
December 31, 2025, 2024, and 2023. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2025, 2024, and 2023.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for OPEB in 2024. The estimated period of amortization of these new prior service costs is seven 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 fiveyear 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 and net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
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.
4The last active participant in the DB SERP retired in 2023. Thus, the determination of the associated net periodic benefit cost no longer assumes a service cost discount rate nor a rate of compensation increase.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning
of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.30 percent in 2025. The actual return on the assets of the DB Pension Plans was 12.7 percent in 2025, 3.6 percent in 2024, and 12.6 percent in 2023.
CMS Energy and Consumers amortize net gains and losses in excess of 10 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 seven years for the year ended December 31, 2025, and eight years for the years ended December 31, 2024 and 2023. For DB Pension Plan B, the estimated period of amortization of gains and losses was 17 years for the years ended
December 31, 2025, 2024, and 2023. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2025, 2024, and 2023.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for OPEB in 2024. The estimated period of amortization of these new prior service costs is seven 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 fiveyear 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.
Share-Based Payment Arrangement
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 riskfree rate for valuation of the market-based restricted stock awards was based on the threeyear U.S. Treasury yield at the award grant 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.
Non-consolidated VIEs
Non-consolidated VIEs: NorthStar Clean Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While NorthStar Clean Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships.
Consumers Energy Company  
Significant Accounting Policies [Line Items]  
Principles of Consolidation
Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, NorthStar Clean Energy, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances.
Use of Estimates
Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Restricted Cash and Cash Equivalents
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Contingencies
Contingencies: CMS Energy and Consumers record estimated loss contingencies on their consolidated financial statements when it is probable that a loss has been incurred and when the amount of loss can be reasonably estimated. For environmental remediation projects in which the timing of estimated expenditures is considered reliably determinable, CMS Energy and Consumers record the liability at its net present value, using a discount rate equal to the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability. Unless regulatory accounting applies, CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed.
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: Upon the issuance of long-term debt, CMS Energy and Consumers defer issuance costs, discounts, and premiums and amortize those amounts over the terms of the associated debt. Debt issuance costs are presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Upon the refinancing of long-term debt, Consumers, as a regulated entity, defers any remaining unamortized issuance costs, discounts, and premiums associated with the refinanced debt and amortizes those amounts over the term of the newly issued debt. For the non‑regulated portions of CMS Energy’s business, any remaining unamortized issuance costs, discounts, and premiums associated with extinguished debt are charged to earnings.
Derivative Instruments
Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers may enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the
commodity at a contracted price. Most of these contracts are not subject to derivative accounting for one or more of the following reasons:
they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or Bcf of natural gas)
they qualify for the normal purchases and sales exception
they cannot be net settled due in part to the absence of an active market for the commodity
Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives and changes in the fair value of FTRs are deferred as regulatory assets or liabilities. For details regarding CMS Energy’s and Consumers’ derivative instruments recorded at fair value, see Note 6, Fair Value Measurements.
Electricity Market Transactions
Electricity Market Transactions: Wholesale electricity market operators require the submission of hourly day-ahead and real-time bids and offers for energy at locations across each region. CMS Energy and Consumers account for such transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all locations in the energy market. 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.
Impairment of Long-Lived Assets
Impairment of Long-lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur that indicate the carrying amount of an asset may not be recoverable or that there has been a decline in value that may be other than temporary.
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses.
Investment Tax Credits Investment Tax Credits: CMS Energy and its subsidiaries use the flow-through method of accounting for investment tax credits. Under the flow-through method, the credit is recognized as a reduction to income tax expense when the related plant, property, and equipment is placed into service. For its regulated utility assets, Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment.
Inventory
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 other environmental credits as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and other environmental credits are used to satisfy compliance obligations related to the generation of power and in support of sustainability commitments. 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.
Property Taxes Property Taxes: Property taxes are based on the taxable value of CMS Energy’s and Consumers’ real and personal property assessed by local taxing authorities. CMS Energy and Consumers record property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of CMS Energy’s and Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
Implementation of New Accounting Standards and New Accounting Standards Not Yet Effective
Implementation of New Accounting Standards
ASU 2023‑09, Incomes Taxes (Topic 740): Improvements to Income Tax Disclosures: This standard, which was effective on January 1, 2025 for CMS Energy and Consumers, requires expanded annual disclosures of the income taxes, including a more detailed reconciliation of the effective tax rate and disaggregated information on federal and state income taxes. The standard also requires disclosure of significant reconciling items and qualitative information about state and local jurisdictions contributing to income tax expense. The adoption of the new standard did not impact CMS Energy’s or Consumers’ liquidity, financial condition, or results of operations. The expanded disclosures required by this standard are included in Note 13, Income Taxes.
New Accounting Standards Not Yet Effective
ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses: This standard requires public companies to provide disaggregated information about certain expense categories presented on the income statement. The guidance calls for annual and interim disclosures that separate specified components, such as employee compensation, depreciation, and amortization, within relevant expense line items in the notes to the financial statements. The standard is effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. CMS Energy and Consumers will adopt the guidance upon the effective date. The standard will not have an impact on CMS Energy’s or Consumers’ consolidated net income, cash flows, or financial position.
ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software: This standard updates guidance for capitalizing costs related to internal-use software development. The amendments remove references to the previous “project stage” model and clarify the threshold for when capitalization should begin, focusing on whether completion of the project is probable. The amendments are effective for annual and interim reporting periods beginning after December 15, 2027. The guidance may be applied on a prospective, retrospective, or modified transition basis. Early adoption is permitted. CMS Energy and Consumers are currently evaluating the new standard.
Government Assistance Renewable Energy Grant: In 2013, Consumers received a $69 million renewable energy grant for Lake Winds® Energy Park, which began operations in 2012. This grant reduces Consumers’ cost of complying with Michigan’s renewable portfolio standard and, accordingly, reduces the overall renewable energy surcharge to be collected from customers. The regulatory liability recorded for the grant will be amortized over the life of Lake Winds® Energy Park. Consumers presents the amortization as a reduction to maintenance and other operating expenses on its consolidated statements of income.
Capitalization
Capitalization: CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general ratemaking process.
Software: CMS Energy and Consumers capitalize the costs to purchase and develop internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware.
Plant Retirement and Abandonment
With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability.
AFUDC AFUDC: Consumers capitalizes AFUDC on regulated major construction projects. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset.
Regulatory Depreciation and Amortization
Consumers depreciates utility property on an asset-group basis, in which it applies a single MPSC-approved depreciation rate to the gross investment in a particular class of property within the electric and
gas segments. Consumers performs depreciation studies periodically to determine appropriate group lives.
Planned Major Maintenance Activities
CMS Energy and Consumers record property repairs and minor property replacement as maintenance expense. CMS Energy and Consumers record planned major maintenance activities as operating expense unless the cost represents the acquisition of additional long-lived assets or the replacement of an existing long-lived asset.
Lessee
Lessee
CMS Energy and Consumers lease various assets from third parties, including coal-carrying railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for several of their PPAs as leases.
CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their consolidated balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and service vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term.
CMS Energy and Consumers include future payments for all renewal options, fair market value extensions, and buyout provisions reasonably certain of exercise in their measurement of lease right-of-use assets and lease liabilities. In addition, certain leases for service vehicles contain end-of-lease adjustment clauses based on proceeds received from the sale or disposition of the vehicles. CMS Energy and Consumers also include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their coal-carrying railcar leases.
Most of Consumers’ PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a finance lease.
Asset Retirement Obligations
CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities associated with the closure of their hydroelectric facilities and certain gas wells that have an indeterminate life or 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 and net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
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.
4The last active participant in the DB SERP retired in 2023. Thus, the determination of the associated net periodic benefit cost no longer assumes a service cost discount rate nor a rate of compensation increase.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning
of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.30 percent in 2025. The actual return on the assets of the DB Pension Plans was 12.7 percent in 2025, 3.6 percent in 2024, and 12.6 percent in 2023.
CMS Energy and Consumers amortize net gains and losses in excess of 10 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 seven years for the year ended December 31, 2025, and eight years for the years ended December 31, 2024 and 2023. For DB Pension Plan B, the estimated period of amortization of gains and losses was 17 years for the years ended
December 31, 2025, 2024, and 2023. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2025, 2024, and 2023.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for OPEB in 2024. The estimated period of amortization of these new prior service costs is seven 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 fiveyear 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 and net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
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.
4The last active participant in the DB SERP retired in 2023. Thus, the determination of the associated net periodic benefit cost no longer assumes a service cost discount rate nor a rate of compensation increase.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning
of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.30 percent in 2025. The actual return on the assets of the DB Pension Plans was 12.7 percent in 2025, 3.6 percent in 2024, and 12.6 percent in 2023.
CMS Energy and Consumers amortize net gains and losses in excess of 10 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 seven years for the year ended December 31, 2025, and eight years for the years ended December 31, 2024 and 2023. For DB Pension Plan B, the estimated period of amortization of gains and losses was 17 years for the years ended
December 31, 2025, 2024, and 2023. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2025, 2024, and 2023.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for OPEB in 2024. The estimated period of amortization of these new prior service costs is seven 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 fiveyear 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 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
Alternativerevenue Programs: Consumers accounts for its energy waste reduction incentive mechanism, financial compensation mechanism, and demand response incentive 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. Revenue related to the financial compensation mechanism is recognized as payments are made on MPSC-approved PPAs. Under a demand response incentive mechanism, Consumers earns a financial incentive when it meets demand response targets set by the MPSC. Consumers recognizes revenue related to this program once demand response incentive objectives are complete, the incentive amount is calculable, and the incentive revenue will be collected within a 24month period. For additional information on these mechanisms, see Note 3, Regulatory Matters.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
v3.25.4
Regulatory Matters (Tables) - Consumers Energy Company
12 Months Ended
Dec. 31, 2025
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 3120252024
Regulatory assets
Current
Energy waste reduction plan incentive1
$66 $60 
Retention incentive program2
10 18 
2022 PSCR underrecovery3
— 126 
Other28 25 
Total current regulatory assets$104 $229 
Non-current
Costs of coal-fueled electric generating units to be retired3
$1,179 $1,266 
Postretirement benefits2
589 747 
Securitized costs3
549 666 
ARO4
379 366 
Decommissioning costs2
197 158 
Unamortized loss on reacquired debt3
89 92 
MGP sites3
82 90 
Energy waste reduction plan incentive1
64 64 
Ludington overhaul contract dispute2
60 31 
Service restoration cost deferral4
52 — 
Energy waste reduction plan3
26 31 
Postretirement benefits expense deferral mechanism2
22 21 
Renewable Energy Plan3
— 
Retention incentive program2
12 
Other54 25 
Total non-current regulatory assets$3,355 $3,569 
Total regulatory assets$3,459 $3,798 
Regulatory liabilities
Current
Income taxes, net$47 $53 
ASP gain28 47 
Other10 11 
Total current regulatory liabilities$85 $111 
Non-current
Cost of removal$2,727 $2,665 
Income taxes, net1,118 1,163 
Energy waste reduction plan68 41 
Green giving program41 — 
Postretirement benefits expense deferral mechanism40 37 
Renewable energy grant38 40 
ASP gain19 46 
Renewable Energy Plan— 51 
Other40 24 
Total non-current regulatory liabilities$4,091 $4,067 
Total regulatory liabilities$4,176 $4,178 
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.
2This regulatory asset is included in rate base, thereby providing a return.
3The MPSC has provided a specific return on these regulatory assets.
4These regulatory assets represent incurred costs for which the MPSC has provided 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 3120252024
Regulatory assets
Current
Energy waste reduction plan incentive1
$66 $60 
Retention incentive program2
10 18 
2022 PSCR underrecovery3
— 126 
Other28 25 
Total current regulatory assets$104 $229 
Non-current
Costs of coal-fueled electric generating units to be retired3
$1,179 $1,266 
Postretirement benefits2
589 747 
Securitized costs3
549 666 
ARO4
379 366 
Decommissioning costs2
197 158 
Unamortized loss on reacquired debt3
89 92 
MGP sites3
82 90 
Energy waste reduction plan incentive1
64 64 
Ludington overhaul contract dispute2
60 31 
Service restoration cost deferral4
52 — 
Energy waste reduction plan3
26 31 
Postretirement benefits expense deferral mechanism2
22 21 
Renewable Energy Plan3
— 
Retention incentive program2
12 
Other54 25 
Total non-current regulatory assets$3,355 $3,569 
Total regulatory assets$3,459 $3,798 
Regulatory liabilities
Current
Income taxes, net$47 $53 
ASP gain28 47 
Other10 11 
Total current regulatory liabilities$85 $111 
Non-current
Cost of removal$2,727 $2,665 
Income taxes, net1,118 1,163 
Energy waste reduction plan68 41 
Green giving program41 — 
Postretirement benefits expense deferral mechanism40 37 
Renewable energy grant38 40 
ASP gain19 46 
Renewable Energy Plan— 51 
Other40 24 
Total non-current regulatory liabilities$4,091 $4,067 
Total regulatory liabilities$4,176 $4,178 
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.
2This regulatory asset is included in rate base, thereby providing a return.
3The MPSC has provided a specific return on these regulatory assets.
4These regulatory assets represent incurred costs for which the MPSC has provided recovery without a return on investment.
Schedule of Liabilities for PSCR and GCR Overrecoveries
Presented in the following table are the liabilities for PSCR and GCR underrecoveries and overrecoveries reflected on Consumers’ consolidated balance sheets:
In Millions
December 3120252024
Assets
PSCR underrecoveries$38 $— 
Accounts receivable and accrued revenue$38 $— 
Liabilities
PSCR overrecoveries$— $13 
GCR overrecoveries28 25 
Accrued rate refunds$28 $38 
v3.25.4
Contingencies and Commitments (Tables)
12 Months Ended
Dec. 31, 2025
Site Contingency [Line Items]  
Schedule of Remediation and Other Response Activity Costs by Year CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs in each of the next five years:
In Millions
20262027202820292030
Long-term leachate disposal and operating and maintenance costs$$$$$
Summary of Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2025:
In Millions
 
Guarantee Description
Issue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousvarious$230 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite152 — 
Guarantee3
2011indefinite30 — 
Consumers
Guarantee3
2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in Aviator Wind, BG Solar Holdings, Newport Solar Holdings, and NWO Holdco to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on NorthStar Clean Energy’s ownership interest in these entities, 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. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim.
3This obligation comprises a guarantee provided by Consumers to the DOE in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Schedule of Contractual Purchase Obligations Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2025 for each of the periods shown:
In Millions
Payments Due
Total20262027202820292030Beyond 2030
CMS Energy, including Consumers
Total PPAs$16,983 $873 $904 $930 $942 $1,011 $12,323 
Other3,582 1,511 762 468 391 303 147 
Total purchase obligations20,565 2,384 1,666 1,398 1,333 1,314 12,470 
Consumers
PPAs
MCV PPA$5,539 $339 $312 $316 $308 $395 $3,869 
Related-party PPAs62 32 30 — — — — 
Other PPAs11,382 502 562 614 634 616 8,454 
Total PPAs$16,983 $873 $904 $930 $942 $1,011 $12,323 
Other2,700 1,185 599 363 266 232 55 
Total purchase obligations19,683 2,058 1,503 1,293 1,208 1,243 12,378 
Consumers Energy Company  
Site Contingency [Line Items]  
Schedule of Remediation and Other Response Activity Costs by Year Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years:
In Millions
20262027202820292030
Remediation and other response activity costs$$$25 $11 $
Summary of Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2025:
In Millions
 
Guarantee Description
Issue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousvarious$230 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite152 — 
Guarantee3
2011indefinite30 — 
Consumers
Guarantee3
2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in Aviator Wind, BG Solar Holdings, Newport Solar Holdings, and NWO Holdco to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on NorthStar Clean Energy’s ownership interest in these entities, 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. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim.
3This obligation comprises a guarantee provided by Consumers to the DOE in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Schedule of Contractual Purchase Obligations Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2025 for each of the periods shown:
In Millions
Payments Due
Total20262027202820292030Beyond 2030
CMS Energy, including Consumers
Total PPAs$16,983 $873 $904 $930 $942 $1,011 $12,323 
Other3,582 1,511 762 468 391 303 147 
Total purchase obligations20,565 2,384 1,666 1,398 1,333 1,314 12,470 
Consumers
PPAs
MCV PPA$5,539 $339 $312 $316 $308 $395 $3,869 
Related-party PPAs62 32 30 — — — — 
Other PPAs11,382 502 562 614 634 616 8,454 
Total PPAs$16,983 $873 $904 $930 $942 $1,011 $12,323 
Other2,700 1,185 599 363 266 232 55 
Total purchase obligations19,683 2,058 1,503 1,293 1,208 1,243 12,378 
v3.25.4
Financings and Capitalization (Tables)
12 Months Ended
Dec. 31, 2025
Debt Instrument [Line Items]  
Summary of Long-Term Debt
Presented in the following table is CMS Energy’s long-term debt at December 31:
In Millions, Except Interest Rate and Maturity
Interest Rate
(%)
Maturity20252024
CMS Energy, including Consumers
CMS Energy, parent only
Senior notes3.600 2025$— $250 
3.000 2026300 300 
2.950 2027275 275 
3.450 2027350 350 
4.700 2043250 250 
4.875 2044300 300 
$1,475 $1,725 
Convertible senior notes1
3.375 
2
2028$800 $800 
3.125 
3
20311,000 — 
$1,800 $800 
Junior subordinated notes4
4.750 
5
2050$500 $500 
3.750 
6
2050400 400 
6.500 
7
20551,000 — 
5.625 2078200 200 
5.875 2078280 280 
5.875 2079630 630 
$3,010 $2,010 
Term loan facilities variable2025$— $90 
variable2025— 400 
$— $490 
Total CMS Energy, parent only$6,285 $5,025 
CMS Energy subsidiaries
Consumers$12,196 $11,370 
NorthStar Clean Energy
Revolving credit facilityvariable
8
2028235 150 
Construction financing agreement9
variableFive years after conversion date223 — 
Total principal amount outstanding$18,939 $16,545 
Current amounts(950)(1,192)
Unamortized discounts(28)(29)
Unamortized issuance costs(154)(130)
Total CMS Energy long-term debt$17,807 $15,194 
1Holders of the convertible senior notes may convert their notes at their option in accordance with the conditions outlined in the related indentures. CMS Energy will settle conversions of the notes in accordance with the terms outlined in the related indentures. The conversion rate will be subject to adjustment for
anti‑dilutive events and fundamental change and redemption provisions as described in the related indentures. There are no sinking fund requirements for the notes.
2At December 31, 2025, the conversion price for the notes was $73.61 per share of common stock. Unamortized debt costs associated with this issuance were $6 million at December 31, 2025 and $9 million at December 31, 2024.
3At December 31, 2025, the conversion price for the notes was $90.61 per share of common stock. Unamortized debt costs associated with this issuance were $12 million at December 31, 2025.
4These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.
5On 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.
6On 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.
7On June 1, 2035, and every five years thereafter, the notes will reset to an interest rate equal to the five‑year treasury rate plus 1.961 percent.
8Loans under this facility have an interest rate of one-month Term SOFR plus 1.750 percent less an adjustment of 0.050 percent for green credit advances. At December 31, 2025, the weighted-average interest rate for the loans issued under this facility was 5.436 percent.
9Loans under this facility have an interest rate of one-month Term SOFR plus 2.250 percent. At December 31, 2025, the weighted-average interest rate for the loans issued under this facility was 6.476 percent. At completion of project construction, scheduled for the first half of 2026, a portion of this financing will convert into a term loan that will mature five years after the conversion date.
Schedule of Major Long-Term Debt Issuances and Retirements Presented in the following table is a summary of major long-term debt issuances during 2025:
Principal
(In Millions)
Interest Rate (%)Issuance DateMaturity Date
CMS Energy, parent only
Junior subordinated notes$1,000 6.500 February 2025June 2055
Term loan credit agreement110 variableFebruary 2025December 2025
Convertible senior notes1,000 3.125 November 2025May 2031
Total CMS Energy, parent only$2,110 
NorthStar Clean Energy
Construction financing agreement$223 variableFebruary 2025
Five years after conversion date
Total NorthStar Clean Energy$223 
Consumers
First mortgage bonds$500 4.500 May 2025January 2031
First mortgage bonds625 5.050 May 2025May 2035
Total Consumers$1,125 
Total CMS Energy$3,458 
Presented in the following table is a summary of major long-term debt retirements during 2025:
Principal
(In Millions)
Interest Rate (%)Retirement DateMaturity Date
CMS Energy, parent only
Term loan credit agreement$400 variableFebruary 2025September 2025
Term loan credit agreement200 variableFebruary 2025December 2025
Senior notes250 3.600 November 2025November 2025
Total CMS Energy, parent only$850 
Total CMS Energy$850 
Schedule of Debt Maturities
Debt Maturities: At December 31, 2025, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20262027202820292030
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$300 $625 $800 $— $— 
NorthStar Clean Energy77 — 235 — — 
Consumers
573 263 843 1,256 812 
Total CMS Energy$950 $888 $1,878 $1,256 $812 
Consumers
Long-term debt$573 $263 $843 $1,256 $812 
Schedule of Revolving Credit Facilities The following credit facilities with banks were available at December 31, 2025:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
Unsecured revolving credit facility, expiring November 20301
$750 $— $35 $715 
Unsecured letter of credit facility, expiring September 2026
50 — 50 — 
NorthStar Clean Energy
Secured revolving credit facility, expiring May 20282
$250 $235 $10 $
Secured letter of credit facility, expiring September 20283
37 — 37 — 
Secured letter of credit facility4
19 — 12 
Consumers
Secured revolving credit facility, expiring November 20305,6
$1,100 $— $$1,094 
Secured revolving credit facility, expiring November 20285,6
300 — — 300 
Secured letter of credit facility, expiring May 20275
100 — 100 — 
Unsecured letter of credit facility, expiring March 202850 — 43 
Unsecured letter of credit facility7
100 — 97 
Unsecured letter of credit facility7
100 — 100 — 
1There were no borrowings under this facility during the year ended December 31, 2025.
2Obligations under this facility are secured by certain pledged equity interests in subsidiaries of NorthStar Clean Energy; under the terms of this facility, the interests may not be sold by NorthStar Clean Energy unless there is an agreed-upon substitution for the pledged equity interests. At December 31, 2025, the net book value of the pledged equity interests was $514 million. Also under the terms of this facility, NorthStar Clean Energy may be restricted from remitting cash dividends to CMS Energy in the event of default.
3This letter of credit facility is available to a subsidiary of Aviator Wind Equity Holdings and is secured by assets of Aviator Wind. For more information regarding Aviator Wind Equity Holdings and Aviator Wind, see Note 19, Variable Interest Entities.
4The letter of credit facility is available to certain subsidiaries of NorthStar Clean Energy. The letter of credit facility is secured under a construction-to-term financing agreement and will expire five years after the term conversion date.
5Obligations under these facilities are secured by first mortgage bonds of Consumers.
6There were no borrowings under these facilities during the year ended December 31, 2025.
7Uncommitted letter of credit facility with automatic renewal provisions and therefore no expiration.
Schedule of Supplier Finance Program
Presented in the following table is the activity under NorthStar Clean Energy’s supplier financing program during the year ended December 31, 2025
In Millions
Year Ended December 3120252024
Balance of payables under suppler financing program at beginning of period$22 $— 
Payables confirmed158 22 
Payments and other adjustments(102)— 
Balance of payables under suppler financing program at end of period$78 $22 
Schedule of Preferred Stock Presented in the following table are details of CMS Energy’s Series C preferred stock at December 31, 2025 and 2024:
Depositary Share Par Value Depositary Share Optional Redemption PriceNumber of Depositary Shares AuthorizedNumber of Depositary Shares Outstanding
Cumulative, redeemable perpetual$25 $25 9,200,000 9,200,000 
Consumers Energy Company  
Debt Instrument [Line Items]  
Summary of Long-Term Debt
Presented in the following table is Consumers’ long-term debt at December 31:
In Millions, Except Interest Rate and Maturity
Interest Rate
(%)
Maturity20252024
Consumers
First mortgage bonds5.240 2026$115 $115 
3.680 2027100 100 
3.390 202735 35 
4.650 2028425 425 
3.800 2028300 300 
4.900 2029500 500 
5.070 202950 50 
4.600 2029600 600 
4.700 2030700 700 
4.500 2031500 — 
5.170 203295 95 
3.600 2032350 350 
3.180 2032100 100 
4.625 2033700 700 
5.050 2035625 — 
5.800 2035175 175 
5.380 2037140 140 
3.520 2037335 335 
4.010 2038215 215 
6.170 204050 50 
4.970 204050 50 
4.310 2042263 263 
3.950 2043425 425 
4.100 2045250 250 
3.250 2046450 450 
3.950 2047350 350 
4.050 2048550 550 
4.350 2049550 550 
3.750 2050300 300 
3.100 2050550 550 
3.500 2051575 575 
2.650 2052300 300 
4.200 2052450 450 
3.860 205250 50 
4.280 2057185 185 
2.500 2060525 525 
4.350 2064250 250 
variable
1
206976 76 
variable
1
2070134 134 
variable
1
2070127 127 
$12,520 $11,395 
In Millions, Except Interest Rate and Maturity
Interest Rate
(%)
Maturity20252024
Tax-exempt revenue bonds0.875 
2
2035$35 $35 
3.350 
3
204975 75 
$110 $110 
2014 Securitization bonds3.528 
4
2029
5
$81 $112 
2023 Securitization bonds5.281 
6
2028-2031
5
504 588 
$585 $700 
Total principal amount outstanding$13,215 $12,205 
Current amounts(573)(452)
Long-term debt – related parties7 principal amount outstanding
2043-2060(1,019)(835)
Unamortized discounts(26)(27)
Unamortized issuance costs(73)(73)
Total long-term debt$11,524 $10,818 
1The variable-rate bonds bear interest quarterly at a rate of three‑month SOFR minus 0.038 percent, subject to a zero‑percent floor. At December 31, 2025, the interest rates were 3.685 percent for bonds due September 2069, 3.851 percent for bonds due May 2070, and 3.897 percent for bonds due October 2070. The interest rate for the variable-rate bonds at December 31, 2024 were 4.320 percent, 4.483 percent, and 4.551 percent, respectively. 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, 2025.
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, 2027.
4The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2014 Securitization Funding, was 3.528 percent at December 31, 2025 and 2024.
5Principal and interest payments are made semiannually.
6The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2023 Securitization Funding, was 5.281 percent at December 31, 2025 and 5.322 percent at December 31, 2024.
7Long-term debt – related parties reflects Consumers’ outstanding debt held by its parent as a result of CMS Energy’s repurchase of Consumers’ first mortgage bonds. Unamortized discounts associated with the repurchase of Consumers’ first mortgage bonds were $5 million at December 31, 2025 and 2024. Unamortized issuance costs were $9 million at December 31, 2025 and $7 million at December 31, 2024.
Schedule of Major Long-Term Debt Issuances and Retirements Presented in the following table is a summary of major long-term debt issuances during 2025:
Principal
(In Millions)
Interest Rate (%)Issuance DateMaturity Date
CMS Energy, parent only
Junior subordinated notes$1,000 6.500 February 2025June 2055
Term loan credit agreement110 variableFebruary 2025December 2025
Convertible senior notes1,000 3.125 November 2025May 2031
Total CMS Energy, parent only$2,110 
NorthStar Clean Energy
Construction financing agreement$223 variableFebruary 2025
Five years after conversion date
Total NorthStar Clean Energy$223 
Consumers
First mortgage bonds$500 4.500 May 2025January 2031
First mortgage bonds625 5.050 May 2025May 2035
Total Consumers$1,125 
Total CMS Energy$3,458 
Schedule of Debt Maturities
Debt Maturities: At December 31, 2025, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20262027202820292030
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$300 $625 $800 $— $— 
NorthStar Clean Energy77 — 235 — — 
Consumers
573 263 843 1,256 812 
Total CMS Energy$950 $888 $1,878 $1,256 $812 
Consumers
Long-term debt$573 $263 $843 $1,256 $812 
Schedule of Revolving Credit Facilities The following credit facilities with banks were available at December 31, 2025:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
Unsecured revolving credit facility, expiring November 20301
$750 $— $35 $715 
Unsecured letter of credit facility, expiring September 2026
50 — 50 — 
NorthStar Clean Energy
Secured revolving credit facility, expiring May 20282
$250 $235 $10 $
Secured letter of credit facility, expiring September 20283
37 — 37 — 
Secured letter of credit facility4
19 — 12 
Consumers
Secured revolving credit facility, expiring November 20305,6
$1,100 $— $$1,094 
Secured revolving credit facility, expiring November 20285,6
300 — — 300 
Secured letter of credit facility, expiring May 20275
100 — 100 — 
Unsecured letter of credit facility, expiring March 202850 — 43 
Unsecured letter of credit facility7
100 — 97 
Unsecured letter of credit facility7
100 — 100 — 
1There were no borrowings under this facility during the year ended December 31, 2025.
2Obligations under this facility are secured by certain pledged equity interests in subsidiaries of NorthStar Clean Energy; under the terms of this facility, the interests may not be sold by NorthStar Clean Energy unless there is an agreed-upon substitution for the pledged equity interests. At December 31, 2025, the net book value of the pledged equity interests was $514 million. Also under the terms of this facility, NorthStar Clean Energy may be restricted from remitting cash dividends to CMS Energy in the event of default.
3This letter of credit facility is available to a subsidiary of Aviator Wind Equity Holdings and is secured by assets of Aviator Wind. For more information regarding Aviator Wind Equity Holdings and Aviator Wind, see Note 19, Variable Interest Entities.
4The letter of credit facility is available to certain subsidiaries of NorthStar Clean Energy. The letter of credit facility is secured under a construction-to-term financing agreement and will expire five years after the term conversion date.
5Obligations under these facilities are secured by first mortgage bonds of Consumers.
6There were no borrowings under these facilities during the year ended December 31, 2025.
7Uncommitted letter of credit facility with automatic renewal provisions and therefore no expiration.
Schedule of Preferred Stock Presented in the following table are details of Consumers’ preferred stock at December 31, 2025 and 2024:
Par ValueOptional Redemption PriceNumber of Shares AuthorizedNumber of Shares Outstanding
Cumulative, with no mandatory redemption
$100 $110 7,500,000 373,148 
NorthStar Clean Energy  
Debt Instrument [Line Items]  
Schedule of Supplier Finance Program
Presented in the following table is the activity under NorthStar Clean Energy’s supplier financing program during the year ended December 31, 2025
In Millions
Year Ended December 3120252024
Balance of payables under suppler financing program at beginning of period$22 $— 
Payables confirmed158 22 
Payments and other adjustments(102)— 
Balance of payables under suppler financing program at end of period$78 $22 
v3.25.4
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2025
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
December 312025202420252024
Assets1
Cash equivalents$154 $27 $— $— 
Restricted cash equivalents106 75 86 75 
Nonqualified deferred compensation plan assets36 34 27 25 
Derivative instruments
Total assets$298 $138 $115 $102 
Liabilities1
Nonqualified deferred compensation plan liabilities$36 $34 $27 $25 
Derivative instruments— — — 
Total liabilities$39 $34 $27 $25 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 and 3.
Consumers Energy Company  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
December 312025202420252024
Assets1
Cash equivalents$154 $27 $— $— 
Restricted cash equivalents106 75 86 75 
Nonqualified deferred compensation plan assets36 34 27 25 
Derivative instruments
Total assets$298 $138 $115 $102 
Liabilities1
Nonqualified deferred compensation plan liabilities$36 $34 $27 $25 
Derivative instruments— — — 
Total liabilities$39 $34 $27 $25 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 and 3.
v3.25.4
Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2025
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 6, Fair Value Measurements.
In Millions
December 31, 2025December 31, 2024
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$$$— $— $$$$— $— $
Liabilities
Long-term debt2
18,757 17,645 2,042 13,663 1,940 16,386 14,876 1,018 11,952 1,906 
Long-term payables3
— — — — 
Consumers
Assets
Long-term receivables1
$$$— $— $$$$— $— $
Notes receivable – related party4
90 90 — — 90 94 94 — — 94 
Liabilities
Long-term debt5
12,097 11,031 — 9,091 1,940 11,270 9,940 — 8,034 1,906 
Long-term debt – related party6
1,005 657 — 657 — 823 549 — 549 — 
Long-term payables— — — — 
1Includes current portion of long-term accounts receivable and notes receivable of $3 million at December 31, 2025 and $4 million at December 31, 2024.
2Includes current portion of long-term debt of $950 million at December 31, 2025 and $1.2 billion at December 31, 2024.
3Includes current portion of long-term payables of $2 million at December 31, 2025 and 2024.
4Includes current portion of notes receivable – related party of $7 million at December 31, 2025 and 2024. For more information on notes receivable – related party, see Note 18, Related-party Transactions—Consumers
5Includes current portion of long-term debt of $573 million at December 31, 2025 and $452 million at December 31, 2024.
6For more information on CMS Energy’s repurchases of Consumers’ first mortgage bonds, see Note 5, Financings and Capitalization—CMS Energy’s Purchase of Consumers’ First Mortgage Bonds.
Consumers Energy Company  
Financial Instruments [Line Items]  
Schedule of Carrying Amounts and Fair Values of Financial Instruments For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 6, Fair Value Measurements.
In Millions
December 31, 2025December 31, 2024
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$$$— $— $$$$— $— $
Liabilities
Long-term debt2
18,757 17,645 2,042 13,663 1,940 16,386 14,876 1,018 11,952 1,906 
Long-term payables3
— — — — 
Consumers
Assets
Long-term receivables1
$$$— $— $$$$— $— $
Notes receivable – related party4
90 90 — — 90 94 94 — — 94 
Liabilities
Long-term debt5
12,097 11,031 — 9,091 1,940 11,270 9,940 — 8,034 1,906 
Long-term debt – related party6
1,005 657 — 657 — 823 549 — 549 — 
Long-term payables— — — — 
1Includes current portion of long-term accounts receivable and notes receivable of $3 million at December 31, 2025 and $4 million at December 31, 2024.
2Includes current portion of long-term debt of $950 million at December 31, 2025 and $1.2 billion at December 31, 2024.
3Includes current portion of long-term payables of $2 million at December 31, 2025 and 2024.
4Includes current portion of notes receivable – related party of $7 million at December 31, 2025 and 2024. For more information on notes receivable – related party, see Note 18, Related-party Transactions—Consumers
5Includes current portion of long-term debt of $573 million at December 31, 2025 and $452 million at December 31, 2024.
6For more information on CMS Energy’s repurchases of Consumers’ first mortgage bonds, see Note 5, Financings and Capitalization—CMS Energy’s Purchase of Consumers’ First Mortgage Bonds.
v3.25.4
Plant, Property, and Equipment (Tables)
12 Months Ended
Dec. 31, 2025
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, Except as Noted
December 31Estimated
Depreciable
Life in Years
20252024
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 – 125
$36,120 $33,434 
NorthStar Clean Energy
Independent power production1
3 – 40
1,585 1,452 
Assets under finance leases2
55 45 
Other
3 – 5
Plant, property, and equipment, gross$37,763 $34,932 
Construction work in progress3,052 2,098 
Accumulated depreciation and amortization(10,135)(9,569)
Total plant, property, and equipment3
$30,680 $27,461 
Consumers
Plant, property, and equipment, gross
Electric
Generation4
15 – 125
$7,171 $6,576 
Distribution
15 – 75
13,360 12,135 
Other
5 – 55
1,209 1,307 
Assets under finance leases2
131 119 
Gas
Distribution
20 – 85
8,553 7,942 
Transmission
17 – 75
3,236 3,081 
Underground storage facilities5
29 – 75
1,535 1,405 
Other
5 – 55
886 828 
Assets under finance leases2
12 
Other non-utility property
3 – 51
31 29 
Plant, property, and equipment, gross$36,120 $33,434 
Construction work in progress6
2,354 1,766 
Accumulated depreciation and amortization(9,842)(9,310)
Total plant, property, and equipment3
$28,632 $25,890 
1A portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 9, Leases.
2For information regarding the amortization terms of CMS Energy’s and Consumers’ assets under finance leases, see Note 9, Leases.
3Consumers’ plant additions were $3.1 billion for the year ended December 31, 2025 and $2.1 billion for the year ended December 31, 2024. Consumers’ plant retirements were $387 million for the year ended December 31, 2025 and $390 million for the year ended December 31, 2024.
4Includes 13 hydroelectric dams that Consumers has agreed to sell, contingent upon MPSC and FERC approval. For more information, see Note 20, Exit Activities and Asset Sales.
5Underground storage includes base natural gas of $24 million at December 31, 2025 and $26 million for the year ended December 31, 2024. Base natural gas is not subject to depreciation.
6For the year ended December 31, 2025, Consumers fully impaired certain development assets totaling $20 million. Of this amount, $15 million relates to two early-phase renewable natural gas development projects that have been paused indefinitely. The remaining impairment charge was deferred as a regulatory asset and will be recovered through the Renewable Energy Plan.
Summary of Finite-Lived Intangible Assets by Major Class Presented in the following table are details about Consumers’ intangible assets:
In Millions, Except as Noted
DescriptionAmortization Life in YearsDecember 31, 2025December 31, 2024
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
Consumers
Software development
3 – 15
$649 $492 $679 $481 
Rights of way
50 – 85
274 72 253 68 
Franchises and consents
5 – 50
16 12 16 11 
Leasehold improvements
various2
15 13 
Other intangiblesvarious33 17 28 16 
Total$987 $602 $989 $583 
1Consumers’ intangible asset additions were $62 million for the year ended December 31, 2025 and $90 million for the year ended December 31, 2024. Consumers’ intangible asset retirements were $64 million for the year ended December 31, 2025 and $153 million for the year ended December 31, 2024.
2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.
Summary of Accumulated Depreciation and Amortization Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Utility plant assets$9,838 $9,307 
Non-utility plant assets297 262 
Consumers
Utility plant assets$9,838 $9,307 
Non-utility plant assets
Summary of Depreciation and Amortization
Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$1,099 $1,041 $1,050 
Amortization expense
Software75 81 92 
Other intangible assets
Other regulatory assets— 
Securitized regulatory assets117 111 33 
Total depreciation and amortization expense$1,306 $1,240 $1,180 
Consumers
Depreciation expense – plant, property, and equipment$1,047 $992 $1,007 
Amortization expense
Software75 81 92 
Other intangible assets
Other regulatory assets— 
Securitized regulatory assets117 111 33 
Total depreciation and amortization expense$1,254 $1,191 $1,137 
Schedule of Estimated Amortization Expense for Intangibles
Presented in the following table is Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20262027202820292030
Consumers
Intangible asset amortization expense$77 $66 $55 $50 $49 
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, Except as Noted
December 31Estimated
Depreciable
Life in Years
20252024
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 – 125
$36,120 $33,434 
NorthStar Clean Energy
Independent power production1
3 – 40
1,585 1,452 
Assets under finance leases2
55 45 
Other
3 – 5
Plant, property, and equipment, gross$37,763 $34,932 
Construction work in progress3,052 2,098 
Accumulated depreciation and amortization(10,135)(9,569)
Total plant, property, and equipment3
$30,680 $27,461 
Consumers
Plant, property, and equipment, gross
Electric
Generation4
15 – 125
$7,171 $6,576 
Distribution
15 – 75
13,360 12,135 
Other
5 – 55
1,209 1,307 
Assets under finance leases2
131 119 
Gas
Distribution
20 – 85
8,553 7,942 
Transmission
17 – 75
3,236 3,081 
Underground storage facilities5
29 – 75
1,535 1,405 
Other
5 – 55
886 828 
Assets under finance leases2
12 
Other non-utility property
3 – 51
31 29 
Plant, property, and equipment, gross$36,120 $33,434 
Construction work in progress6
2,354 1,766 
Accumulated depreciation and amortization(9,842)(9,310)
Total plant, property, and equipment3
$28,632 $25,890 
1A portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 9, Leases.
2For information regarding the amortization terms of CMS Energy’s and Consumers’ assets under finance leases, see Note 9, Leases.
3Consumers’ plant additions were $3.1 billion for the year ended December 31, 2025 and $2.1 billion for the year ended December 31, 2024. Consumers’ plant retirements were $387 million for the year ended December 31, 2025 and $390 million for the year ended December 31, 2024.
4Includes 13 hydroelectric dams that Consumers has agreed to sell, contingent upon MPSC and FERC approval. For more information, see Note 20, Exit Activities and Asset Sales.
5Underground storage includes base natural gas of $24 million at December 31, 2025 and $26 million for the year ended December 31, 2024. Base natural gas is not subject to depreciation.
6For the year ended December 31, 2025, Consumers fully impaired certain development assets totaling $20 million. Of this amount, $15 million relates to two early-phase renewable natural gas development projects that have been paused indefinitely. The remaining impairment charge was deferred as a regulatory asset and will be recovered through the Renewable Energy Plan.
Assets Under Finance Leases: Presented in the following table are further details about changes in CMS Energy’s and Consumers’ assets under finance leases:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Balance at beginning of period$176 $136 
Additions53 55 
Net retirements and other adjustments(36)(15)
Balance at end of period$193 $176 
Consumers
Balance at beginning of period$131 $112 
Additions22 34 
Net retirements and other adjustments(15)(15)
Balance at end of period$138 $131 
Summary of Finite-Lived Intangible Assets by Major Class Presented in the following table are details about Consumers’ intangible assets:
In Millions, Except as Noted
DescriptionAmortization Life in YearsDecember 31, 2025December 31, 2024
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
Consumers
Software development
3 – 15
$649 $492 $679 $481 
Rights of way
50 – 85
274 72 253 68 
Franchises and consents
5 – 50
16 12 16 11 
Leasehold improvements
various2
15 13 
Other intangiblesvarious33 17 28 16 
Total$987 $602 $989 $583 
1Consumers’ intangible asset additions were $62 million for the year ended December 31, 2025 and $90 million for the year ended December 31, 2024. Consumers’ intangible asset retirements were $64 million for the year ended December 31, 2025 and $153 million for the year ended December 31, 2024.
2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.
Summary of Average Capitalization Rates Presented in the following table are Consumers’ average AFUDC capitalization rates:
Years Ended December 31202520242023
Electric6.9%6.9%6.5%
Gas5.95.85.8
Summary of Accumulated Depreciation and Amortization Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Utility plant assets$9,838 $9,307 
Non-utility plant assets297 262 
Consumers
Utility plant assets$9,838 $9,307 
Non-utility plant assets
Summary of Composite Depreciation Rates for Properties Presented in the following table are the composite depreciation rates for Consumers’ segment properties:
Years Ended December 31202520242023
Electric utility property3.6%3.6%3.8%
Gas utility property2.52.52.8
Other property7.07.17.8
Summary of Depreciation and Amortization
Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$1,099 $1,041 $1,050 
Amortization expense
Software75 81 92 
Other intangible assets
Other regulatory assets— 
Securitized regulatory assets117 111 33 
Total depreciation and amortization expense$1,306 $1,240 $1,180 
Consumers
Depreciation expense – plant, property, and equipment$1,047 $992 $1,007 
Amortization expense
Software75 81 92 
Other intangible assets
Other regulatory assets— 
Securitized regulatory assets117 111 33 
Total depreciation and amortization expense$1,254 $1,191 $1,137 
Schedule of Estimated Amortization Expense for Intangibles
Presented in the following table is Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20262027202820292030
Consumers
Intangible asset amortization expense$77 $66 $55 $50 $49 
Summary of Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2025:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3%51.0%various
Utility plant in service$1,726$620$481
Accumulated provision for depreciation(916)(253)(97)
Plant under construction3717
Net investment$810$404$401
v3.25.4
Leases (Tables)
12 Months Ended
Dec. 31, 2025
Leases [Line Items]  
Summary of Lease Right-of-Use Assets and Liabilities
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
CMS Energy, including ConsumersConsumers
December 312025202420252024
Operating leases
Right-of-use assets1
$22$24$18$20
Lease liabilities
Current lease liabilities2
3333
Non-current lease liabilities3
19211517
Finance leases
Right-of-use assets1401199076
Lease liabilities4
Current lease liabilities6464
Non-current lease liabilities1351128169
Weighted-average remaining lease term (in years)
Operating leases20202019
Finance leases24261922
Weighted-average discount rate
Operating leases5.3%5.3%5.4%5.4%
Finance leases5
5.9%5.8%4.9%4.8%
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 $22 million, of which $1 million was current, at December 31, 2025 and 2024.
5This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.
Schedule of Lease Cost Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets
Interest on lease liabilities18 16 
Variable lease costs115 107 
Short-term lease costs25 13 
Total lease costs$170 $148 
Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets
Interest on lease liabilities14 13 
Variable lease costs115 107 
Short-term lease costs24 12 
Total lease costs$163 $142 
Presented in the following table is supplemental cash flow information related to CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases17 15 
Cash used in financing activities for finance leases
Lease liabilities arising from obtaining right-of-use assets
Operating leases
Finance leases22 55 
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases14 13 
Cash used in financing activities for finance leases
Lease liabilities arising from obtaining right-of-use assets
Operating leases
Finance leases22 34 
Summary of Minimum Annual Rental Commitments
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ noncancelable leases:
In Millions
Finance Leases
December 31, 2025Operating LeasesPipelines and PPAsLand and OtherTotal
CMS Energy, including Consumers
2026$$17 $$23 
202717 23 
202817 22 
202917 23 
203017 23 
2031 and thereafter27 200 202 
Total minimum lease payments$38 $87 $229 $316 
Less discount16 42 133 175 
Present value of minimum lease payments$22 $45 $96 $141 
Consumers
2026$$17 $$20 
202717 20 
202817 19 
202917 19 
203017 19 
2031 and thereafter22 72 74 
Total minimum lease payments$31 $87 $84 $171 
Less discount13 42 42 84 
Present value of minimum lease payments$18 $45 $42 $87 
Consumers Energy Company  
Leases [Line Items]  
Summary of Lease Right-of-Use Assets and Liabilities
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
CMS Energy, including ConsumersConsumers
December 312025202420252024
Operating leases
Right-of-use assets1
$22$24$18$20
Lease liabilities
Current lease liabilities2
3333
Non-current lease liabilities3
19211517
Finance leases
Right-of-use assets1401199076
Lease liabilities4
Current lease liabilities6464
Non-current lease liabilities1351128169
Weighted-average remaining lease term (in years)
Operating leases20202019
Finance leases24261922
Weighted-average discount rate
Operating leases5.3%5.3%5.4%5.4%
Finance leases5
5.9%5.8%4.9%4.8%
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 $22 million, of which $1 million was current, at December 31, 2025 and 2024.
5This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.
Schedule of Lease Cost Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets
Interest on lease liabilities18 16 
Variable lease costs115 107 
Short-term lease costs25 13 
Total lease costs$170 $148 
Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets
Interest on lease liabilities14 13 
Variable lease costs115 107 
Short-term lease costs24 12 
Total lease costs$163 $142 
Presented in the following table is supplemental cash flow information related to CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases17 15 
Cash used in financing activities for finance leases
Lease liabilities arising from obtaining right-of-use assets
Operating leases
Finance leases22 55 
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases14 13 
Cash used in financing activities for finance leases
Lease liabilities arising from obtaining right-of-use assets
Operating leases
Finance leases22 34 
Summary of Minimum Annual Rental Commitments
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ noncancelable leases:
In Millions
Finance Leases
December 31, 2025Operating LeasesPipelines and PPAsLand and OtherTotal
CMS Energy, including Consumers
2026$$17 $$23 
202717 23 
202817 22 
202917 23 
203017 23 
2031 and thereafter27 200 202 
Total minimum lease payments$38 $87 $229 $316 
Less discount16 42 133 175 
Present value of minimum lease payments$22 $45 $96 $141 
Consumers
2026$$17 $$20 
202717 20 
202817 19 
202917 19 
203017 19 
2031 and thereafter22 72 74 
Total minimum lease payments$31 $87 $84 $171 
Less discount13 42 42 84 
Present value of minimum lease payments$18 $45 $42 $87 
v3.25.4
Asset Retirement Obligations (Tables)
12 Months Ended
Dec. 31, 2025
Asset Retirement Obligations [Line Items]  
Schedule of Categories of Assets for which an ARO Liability is Recorded
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
ARO DescriptionLong-lived Assets
Closure of coal ash disposal areasGenerating plants coal ash areas
Gas distribution cut, purge, and capGas distribution mains and services
Asbestos abatementElectric and gas utility plant
Closure of renewable generation assetsWind and solar generation facilities
Capping and partial filling of water intake lineGenerating plant water intake line
Gas wells plug and abandonGas 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 12/31/2024IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2025
CMS Energy, including Consumers
Consumers$694 $27 $(73)$32 $73 $753 
Renewable generation assets34 — — 39 
Total CMS Energy$728 $31 $(73)$33 $73 $792 
Consumers
Coal ash disposal areas$230 $— $(37)$10 $60 
1
$263 
Gas distribution cut, purge, and cap295 10 (13)15 — 307 
Asbestos abatement37 — (2)— 37 
Renewable generation assets105 17 — — 125 
Generating plant water intake line— — — 18 
2
19 
Gas wells plug and abandon27 — (21)(5)
Total Consumers$694 $27 $(73)$32 $73 $753 
1    The increase in the AROs associated with coal ash disposal areas was primarily the result of incremental remedies required by EGLE for certain ash disposal ponds and incremental AROs recorded in response to reviews of legacy CCR impoundments.
2    The increase in AROs associated with water intake lines, which were previously immaterial, was primarily the result of changes in the expected scope of required capping following the finalization of decommissioning plans with the local jurisdiction.
In Millions
Company and ARO DescriptionARO Liability 12/31/2023IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2024
CMS Energy, including Consumers
Consumers$739 $$(69)$33 $(10)$694 
Renewable generation assets32 — — — 34 
Total CMS Energy$771 $$(69)$35 $(10)$728 
Consumers
Coal ash disposal areas$268 $$(51)$12 $— $230 
Gas distribution cut, purge, and cap290 — (9)15 (1)295 
Asbestos abatement51 — (7)(9)37 
Renewable generation assets102 — — — 105 
Gas wells plug and abandon28 — (2)— 27 
Total Consumers$739 $$(69)$33 $(10)$694 
Consumers Energy Company  
Asset Retirement Obligations [Line Items]  
Schedule of Categories of Assets for which an ARO Liability is Recorded
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
ARO DescriptionLong-lived Assets
Closure of coal ash disposal areasGenerating plants coal ash areas
Gas distribution cut, purge, and capGas distribution mains and services
Asbestos abatementElectric and gas utility plant
Closure of renewable generation assetsWind and solar generation facilities
Capping and partial filling of water intake lineGenerating plant water intake line
Gas wells plug and abandonGas 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 12/31/2024IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2025
CMS Energy, including Consumers
Consumers$694 $27 $(73)$32 $73 $753 
Renewable generation assets34 — — 39 
Total CMS Energy$728 $31 $(73)$33 $73 $792 
Consumers
Coal ash disposal areas$230 $— $(37)$10 $60 
1
$263 
Gas distribution cut, purge, and cap295 10 (13)15 — 307 
Asbestos abatement37 — (2)— 37 
Renewable generation assets105 17 — — 125 
Generating plant water intake line— — — 18 
2
19 
Gas wells plug and abandon27 — (21)(5)
Total Consumers$694 $27 $(73)$32 $73 $753 
1    The increase in the AROs associated with coal ash disposal areas was primarily the result of incremental remedies required by EGLE for certain ash disposal ponds and incremental AROs recorded in response to reviews of legacy CCR impoundments.
2    The increase in AROs associated with water intake lines, which were previously immaterial, was primarily the result of changes in the expected scope of required capping following the finalization of decommissioning plans with the local jurisdiction.
In Millions
Company and ARO DescriptionARO Liability 12/31/2023IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2024
CMS Energy, including Consumers
Consumers$739 $$(69)$33 $(10)$694 
Renewable generation assets32 — — — 34 
Total CMS Energy$771 $$(69)$35 $(10)$728 
Consumers
Coal ash disposal areas$268 $$(51)$12 $— $230 
Gas distribution cut, purge, and cap290 — (9)15 (1)295 
Asbestos abatement51 — (7)(9)37 
Renewable generation assets102 — — — 105 
Gas wells plug and abandon28 — (2)— 27 
Total Consumers$739 $$(69)$33 $(10)$694 
v3.25.4
Retirement Benefits (Tables)
12 Months Ended
Dec. 31, 2025
Defined Benefit Plan Disclosure [Line Items]  
Schedule of SERP Trust Assets, ABO and Contributions Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Trust assets$122 $127 
ABO104 105 
Consumers
Trust assets$92 $95 
ABO76 76 
Schedule of Assumptions Used Presented in the following table are the weighted-average assumptions used in CMS Energy’s, including Consumers’, retirement benefit plans to determine benefit obligations and net periodic benefit cost:
December 31202520242023
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A5.58%5.73%5.05%
DB Pension Plan B5.285.594.95
DB SERP5.225.564.94
OPEB Plan5.505.695.02
Rate of compensation increase
DB Pension Plan A3.703.703.60
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A5.77%5.08%5.27%
DB SERP4
5.18
OPEB Plan5.855.125.31
Interest cost discount rate2,3
DB Pension Plan A5.434.935.12
DB Pension Plan B5.304.875.06
DB SERP5.294.875.06
OPEB Plan5.394.915.10
Expected long-term rate of return on plan assets5
DB Pension Plans7.307.507.20
OPEB Plan7.157.507.20
Rate of compensation increase
DB Pension Plan A3.703.603.60
DB SERP4
5.50
1The mortality assumption for benefit obligations and net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
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.
4The last active participant in the DB SERP retired in 2023. Thus, the determination of the associated net periodic benefit cost no longer assumes a service cost discount rate nor a rate of compensation increase.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning
of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.30 percent in 2025. The actual return on the assets of the DB Pension Plans was 12.7 percent in 2025, 3.6 percent in 2024, and 12.6 percent in 2023.
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 31202520242023202520242023
CMS Energy, including Consumers
Net periodic credit
Service cost$25 $28 $29 $$11 $12 
Interest cost114 109 112 43 43 44 
Expected return on plan assets(229)(234)(220)(111)(115)(103)
Amortization of:
Net loss11 12 12 12 
Prior service cost (credit)(34)(31)(41)
Settlement loss11 11 11 — — — 
Net periodic credit$(64)$(70)$(52)$(91)$(88)$(76)
Consumers
Net periodic credit
Service cost$24 $27 $28 $$11 $11 
Interest cost106 102 105 42 41 42 
Expected return on plan assets(215)(221)(208)(104)(107)(95)
Amortization of:
Net loss10 11 11 12 
Prior service cost (credit)(33)(30)(40)
Settlement loss11 11 11 — — — 
Net periodic credit$(60)$(66)$(49)$(84)$(81)$(70)
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 31202520242025202420252024
CMS Energy, including Consumers
Benefit obligation at beginning of period$2,094 $2,195 $105 $114 $831 $900 
Service cost25 28 — — 11 
Interest cost109 104 43 43 
Plan amendments— — — — — (25)
Actuarial loss (gain)53 
1
(91)
1
(4)
1
(40)
1
Benefits paid(158)(142)(10)(10)(54)(58)
Benefit obligation at end of period$2,123 $2,094 $104 $105 $830 $831 
Plan assets at fair value at beginning of period$2,964 $3,004 $— $— $1,588 $1,559 
Actual return on plan assets371 102 — — 197 86 
Company contribution— — 10 10 — — 
Actual benefits paid(158)(142)(10)(10)(52)(57)
Plan assets at fair value at end of period$3,177 $2,964 $— $— $1,733 $1,588 
Funded status$1,054 
2
$870 
2
$(104)$(105)$903 $757 
Consumers
Benefit obligation at beginning of period$76 $83 $801 $867 
Service cost— — 11 
Interest cost42 41 
Plan amendments— — — (24)
Actuarial loss (gain)(4)
1
(38)
1
Benefits paid(7)(7)(51)(56)
Benefit obligation at end of period$76 $76 $801 $801 
Plan assets at fair value at beginning of period$— $— $1,479 $1,453 
Actual return on plan assets— — 184 80 
Company contribution— — 
Actual benefits paid(7)(7)(50)(54)
Plan assets at fair value at end of period$— $— $1,613 $1,479 
Funded status$(76)$(76)$812 $678 
1The actuarial losses for 2025 for the DB Pension Plans and OPEB Plans were primarily the result of lower discount rates. The actuarial gains for 2024 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $1.0 billion at December 31, 2025 and $836 million at December 31, 2024.
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 3120252024
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$1,054 $870 
OPEB Plan903 757 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP94 95 
Consumers
Non-current assets
DB Pension Plans$1,009 $836 
OPEB Plan812 678 
Current liabilities
DB SERP
Non-current liabilities
DB SERP69 69 
Schedule of Net Periodic Benefit Cost Not Yet Recognized Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets see Note 3, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312025202420252024
CMS Energy, including Consumers
Regulatory assets
Net loss$548 $653 $93 $176 
Prior service cost (credit)12 (61)(94)
Regulatory assets$557 $665 $32 $82 
AOCI
Net loss (gain)57 60 (7)(3)
Prior service credit— — (2)(2)
Total amounts recognized in regulatory assets and AOCI$614 $725 $23 $77 
Consumers
Regulatory assets
Net loss$548 $653 $93 $176 
Prior service cost (credit)12 (61)(94)
Regulatory assets$557 $665 $32 $82 
AOCI
Net loss18 15 — — 
Total amounts recognized in regulatory assets and AOCI$575 $680 $32 $82 
Schedule of Allocation of Plan Assets Presented in the following tables are the fair values of the assets of CMS Energy’s, including Consumers’, 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 6, Fair Value Measurements.
In Millions
DB Pension Plans
December 31, 2025December 31, 2024
TotalLevel 1Level 2TotalLevel 1Level 2
Cash and short-term investments$162 $162 $— $148 $148 $— 
Mutual funds— — — — — — 
$162 $162 $— $148 $148 $— 
Pooled funds3,015 2,816 
Total$3,177 $2,964 
In Millions
OPEB Plan
December 31, 2025December 31, 2024
TotalLevel 1Level 2TotalLevel 1Level 2
Cash and short-term investments$72 $72 $— $35 $35 $— 
U.S. government and agencies securities15 — 15 13 — 13 
Corporate debt69 — 69 68 — 68 
State and municipal bonds— — 
Foreign bonds16 — 16 15 — 15 
Common stocks215 215 — 170 170 — 
Mutual funds75 75 — 53 53 — 
$466 $362 $104 $356 $258 $98 
Pooled funds1,267 1,232 
Total$1,733 $1,588 
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, 2025:
DB Pension PlansOPEB Plan
Fixed-income securities39.2%37.6%
Equity securities38.742.4
Real asset investments9.3 8.8 
Return-seeking fixed income7.15.6
Liquid alternative investments4.3 3.7 
Cash and cash equivalents1.4 1.9 
100.0%100.0%
Schedule of Expected Benefit Payments Presented in the following table are the expected benefit payments for each of the next five years and the fiveyear period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2026$164 $10 $59 
2027165 10 61 
2028164 10 62 
2029164 62 
2030164 62 
2031-2035801 41 305 
Consumers
2026$154 $$57 
2027155 58 
2028154 59 
2029155 59 
2030154 60 
2031-2035756 29 292 
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of SERP Trust Assets, ABO and Contributions Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Trust assets$122 $127 
ABO104 105 
Consumers
Trust assets$92 $95 
ABO76 76 
Schedule of Assumptions Used Presented in the following table are the weighted-average assumptions used in CMS Energy’s, including Consumers’, retirement benefit plans to determine benefit obligations and net periodic benefit cost:
December 31202520242023
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A5.58%5.73%5.05%
DB Pension Plan B5.285.594.95
DB SERP5.225.564.94
OPEB Plan5.505.695.02
Rate of compensation increase
DB Pension Plan A3.703.703.60
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A5.77%5.08%5.27%
DB SERP4
5.18
OPEB Plan5.855.125.31
Interest cost discount rate2,3
DB Pension Plan A5.434.935.12
DB Pension Plan B5.304.875.06
DB SERP5.294.875.06
OPEB Plan5.394.915.10
Expected long-term rate of return on plan assets5
DB Pension Plans7.307.507.20
OPEB Plan7.157.507.20
Rate of compensation increase
DB Pension Plan A3.703.603.60
DB SERP4
5.50
1The mortality assumption for benefit obligations and net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scale MP-2021.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
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.
4The last active participant in the DB SERP retired in 2023. Thus, the determination of the associated net periodic benefit cost no longer assumes a service cost discount rate nor a rate of compensation increase.
5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning
of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.30 percent in 2025. The actual return on the assets of the DB Pension Plans was 12.7 percent in 2025, 3.6 percent in 2024, and 12.6 percent in 2023.
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 31202520242023202520242023
CMS Energy, including Consumers
Net periodic credit
Service cost$25 $28 $29 $$11 $12 
Interest cost114 109 112 43 43 44 
Expected return on plan assets(229)(234)(220)(111)(115)(103)
Amortization of:
Net loss11 12 12 12 
Prior service cost (credit)(34)(31)(41)
Settlement loss11 11 11 — — — 
Net periodic credit$(64)$(70)$(52)$(91)$(88)$(76)
Consumers
Net periodic credit
Service cost$24 $27 $28 $$11 $11 
Interest cost106 102 105 42 41 42 
Expected return on plan assets(215)(221)(208)(104)(107)(95)
Amortization of:
Net loss10 11 11 12 
Prior service cost (credit)(33)(30)(40)
Settlement loss11 11 11 — — — 
Net periodic credit$(60)$(66)$(49)$(84)$(81)$(70)
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 31202520242025202420252024
CMS Energy, including Consumers
Benefit obligation at beginning of period$2,094 $2,195 $105 $114 $831 $900 
Service cost25 28 — — 11 
Interest cost109 104 43 43 
Plan amendments— — — — — (25)
Actuarial loss (gain)53 
1
(91)
1
(4)
1
(40)
1
Benefits paid(158)(142)(10)(10)(54)(58)
Benefit obligation at end of period$2,123 $2,094 $104 $105 $830 $831 
Plan assets at fair value at beginning of period$2,964 $3,004 $— $— $1,588 $1,559 
Actual return on plan assets371 102 — — 197 86 
Company contribution— — 10 10 — — 
Actual benefits paid(158)(142)(10)(10)(52)(57)
Plan assets at fair value at end of period$3,177 $2,964 $— $— $1,733 $1,588 
Funded status$1,054 
2
$870 
2
$(104)$(105)$903 $757 
Consumers
Benefit obligation at beginning of period$76 $83 $801 $867 
Service cost— — 11 
Interest cost42 41 
Plan amendments— — — (24)
Actuarial loss (gain)(4)
1
(38)
1
Benefits paid(7)(7)(51)(56)
Benefit obligation at end of period$76 $76 $801 $801 
Plan assets at fair value at beginning of period$— $— $1,479 $1,453 
Actual return on plan assets— — 184 80 
Company contribution— — 
Actual benefits paid(7)(7)(50)(54)
Plan assets at fair value at end of period$— $— $1,613 $1,479 
Funded status$(76)$(76)$812 $678 
1The actuarial losses for 2025 for the DB Pension Plans and OPEB Plans were primarily the result of lower discount rates. The actuarial gains for 2024 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $1.0 billion at December 31, 2025 and $836 million at December 31, 2024.
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 3120252024
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$1,054 $870 
OPEB Plan903 757 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP94 95 
Consumers
Non-current assets
DB Pension Plans$1,009 $836 
OPEB Plan812 678 
Current liabilities
DB SERP
Non-current liabilities
DB SERP69 69 
Schedule of Net Periodic Benefit Cost Not Yet Recognized Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets see Note 3, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312025202420252024
CMS Energy, including Consumers
Regulatory assets
Net loss$548 $653 $93 $176 
Prior service cost (credit)12 (61)(94)
Regulatory assets$557 $665 $32 $82 
AOCI
Net loss (gain)57 60 (7)(3)
Prior service credit— — (2)(2)
Total amounts recognized in regulatory assets and AOCI$614 $725 $23 $77 
Consumers
Regulatory assets
Net loss$548 $653 $93 $176 
Prior service cost (credit)12 (61)(94)
Regulatory assets$557 $665 $32 $82 
AOCI
Net loss18 15 — — 
Total amounts recognized in regulatory assets and AOCI$575 $680 $32 $82 
Schedule of Expected Benefit Payments Presented in the following table are the expected benefit payments for each of the next five years and the fiveyear period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2026$164 $10 $59 
2027165 10 61 
2028164 10 62 
2029164 62 
2030164 62 
2031-2035801 41 305 
Consumers
2026$154 $$57 
2027155 58 
2028154 59 
2029155 59 
2030154 60 
2031-2035756 29 292 
v3.25.4
Stock-based Compensation (Tables)
12 Months Ended
Dec. 31, 2025
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, 2025Number of
Shares
Weighted-average
Grant Date Fair Value
Per Share
Number of
Shares
Weighted-average
Grant Date Fair Value
Per Share
Nonvested at beginning of period1,162,787 $59.34 1,081,573 $59.35 
Granted
Restricted stock523,663 50.19 480,258 49.86 
Restricted stock units18,491 56.80 17,713 56.80 
Vested
Restricted stock(450,699)46.30 (424,830)46.33 
Restricted stock units(27,035)51.79 (25,994)51.82 
Forfeited – restricted stock(38,364)60.19 (36,119)60.01 
Nonvested at end of period1,188,843 $60.36 1,092,601 $60.36 
Year Ended December 31, 2025CMS Energy, including
Consumers
Consumers
Granted
Time-lapse awards118,842 109,242 
Market-based awards139,248 126,302 
Performance-based awards147,982 134,540 
Restricted stock units14,406 13,800 
Dividends on market-based awards13,484 12,472 
Dividends on performance-based awards14,458 13,389 
Dividends on restricted stock units4,085 3,913 
Additional market-based shares based on achievement of condition5,982 5,624 
Additional performance-based shares based on achievement of condition83,667 78,689 
Total granted542,154 497,971 
Schedule of Significant Assumptions
Presented in the following table are the most significant assumptions used to estimate the fair value of the market-based restricted stock awards:
Years Ended December 31202520242023
Expected volatility20.7%20.2%30.3%
Expected dividend yield3.13.52.9
Risk-free rate4.24.13.9
Summary of Weighted-average Grant-date Fair Value
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$50.19 $44.76 $52.62 
Restricted stock units granted56.80 52.43 50.32 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$49.86 $44.49 $52.42 
Restricted stock units granted56.80 52.46 50.34 
Schedule of Amounts Related to Restricted Stock Awards and Restricted Stock Units
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Fair value of shares that vested during the year$33 $28 $20 
Compensation expense recognized25 27 28 
Income tax benefit recognized
Consumers
Fair value of shares that vested during the year$32 $27 $19 
Compensation expense recognized23 25 26 
Income tax benefit recognized
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, 2025Number of
Shares
Weighted-average
Grant Date Fair Value
Per Share
Number of
Shares
Weighted-average
Grant Date Fair Value
Per Share
Nonvested at beginning of period1,162,787 $59.34 1,081,573 $59.35 
Granted
Restricted stock523,663 50.19 480,258 49.86 
Restricted stock units18,491 56.80 17,713 56.80 
Vested
Restricted stock(450,699)46.30 (424,830)46.33 
Restricted stock units(27,035)51.79 (25,994)51.82 
Forfeited – restricted stock(38,364)60.19 (36,119)60.01 
Nonvested at end of period1,188,843 $60.36 1,092,601 $60.36 
Year Ended December 31, 2025CMS Energy, including
Consumers
Consumers
Granted
Time-lapse awards118,842 109,242 
Market-based awards139,248 126,302 
Performance-based awards147,982 134,540 
Restricted stock units14,406 13,800 
Dividends on market-based awards13,484 12,472 
Dividends on performance-based awards14,458 13,389 
Dividends on restricted stock units4,085 3,913 
Additional market-based shares based on achievement of condition5,982 5,624 
Additional performance-based shares based on achievement of condition83,667 78,689 
Total granted542,154 497,971 
Schedule of Significant Assumptions
Presented in the following table are the most significant assumptions used to estimate the fair value of the market-based restricted stock awards:
Years Ended December 31202520242023
Expected volatility20.7%20.2%30.3%
Expected dividend yield3.13.52.9
Risk-free rate4.24.13.9
Summary of Weighted-average Grant-date Fair Value
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$50.19 $44.76 $52.62 
Restricted stock units granted56.80 52.43 50.32 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$49.86 $44.49 $52.42 
Restricted stock units granted56.80 52.46 50.34 
Schedule of Amounts Related to Restricted Stock Awards and Restricted Stock Units
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Fair value of shares that vested during the year$33 $28 $20 
Compensation expense recognized25 27 28 
Income tax benefit recognized
Consumers
Fair value of shares that vested during the year$32 $27 $19 
Compensation expense recognized23 25 26 
Income tax benefit recognized
v3.25.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
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
AmountPercentAmountPercentAmountPercent
Years Ended December 31202520242023
CMS Energy, including Consumers
Income from continuing operations before income taxes$1,248 $1,123 $954 
Income tax expense at statutory rate262 21.0 %236 21.0 %200 21.0 %
Increase (decrease) in income taxes from:   
State and local income taxes, net of federal income tax effect1
77 6.2 58 5.1 40 4.2 
Tax credits
Renewable energy tax credits(68)(5.4)(71)(6.4)(55)(5.8)
Other(6)(0.5)(6)(0.5)(7)(0.7)
Nontaxable or nondeductible items0.2 0.4 0.3 
Changes in unrecognized tax benefits0.7 0.2 (11)(1.2)
Other adjustments
TCJA excess deferred taxes(42)(3.4)(43)(3.8)(40)(4.2)
Deferred tax adjustment2
— — (16)(1.4)— — 
Taxes attributable to noncontrolling interests15 1.2 12 1.1 17 1.8 
Other, net(4)(0.3)— — — — 
Income tax expense$246 $176 $147 
Effective tax rate19.7 %15.7 %15.4 %
In Millions, Except Tax Rate
AmountPercentAmountPercentAmountPercent
Years Ended December 31202520242023
Consumers
Income from continuing operations before income taxes$1,417 $1,209 $1,028 
Income tax expense at statutory rate298 21.0 %254 21.0 %216 21.0 %
Increase (decrease) in income taxes from:   
State and local income taxes, net of federal income tax effect1
80 5.7 60 5.0 47 4.6 
Tax credits
Renewable energy tax credits(46)(3.2)(51)(4.2)(43)(4.2)
Other(6)(0.4)(6)(0.5)(7)(0.7)
Nontaxable or nondeductible items0.2 0.2 0.3 
Changes in unrecognized tax benefits0.6 0.1 (12)(1.2)
Other adjustments
TCJA excess deferred taxes
(42)(3.0)(43)(3.6)(40)(3.9)
Deferred tax adjustment2
— — (16)(1.3)— — 
Other, net(8)(0.6)(2)(0.2)(3)(0.2)
Income tax expense$288 $200 $161 
Effective tax rate20.3 %16.5 %15.7 %
1In June 2025, state deferred tax balances were increased by $12 million to reflect a change in Illinois tax policy that establishes nexus for Consumers. The policy change is effective for tax years beginning January 1, 2026. During 2023, CMS Energy initiated a plan to divest immaterial business activities in a non-Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction. As a result of these actions, CMS Energy reversed a $13 million non-Michigan reserve, all of which was recognized at Consumers.
2During 2024, Consumers recognized a $16 million tax benefit resulting from the expiration of the statute of limitations associated with audit points for the 2018 and 2019 tax years.
Summary of Significant Components of Income Tax Expense
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Current income taxes
Federal$34 $34 $
State and local— 
$43 $34 $
Deferred income taxes
Federal107 70 107 
State and local100 76 38 
$207 $146 $145 
Deferred income tax credit(4)(4)(4)
Tax expense$246 $176 $147 
Consumers
Current income taxes
Federal$207 $78 $
State and local33 
$240 $85 $
Deferred income taxes
Federal(27)51 117 
State and local79 68 43 
$52 $119 $160 
Deferred income tax credit(4)(4)(4)
Tax expense$288 $200 $161 
Summary of Income Taxes Paid
Presented in the following table are income taxes paid:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Federal $28 $27 $15 
State — 
Total$29 $28 $15 
Consumers
Federal $189 $57 $23 
State 21 — 
Total$210 $57 $31 
Summary of Principal Components of Deferred Income Tax Assets and Liabilities
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120252024
CMS Energy, including Consumers
Deferred income tax assets
Net regulatory tax liability$294 $307 
Tax loss and credit carryforwards139 258 
Reserves and accruals16 27 
Total deferred income tax assets$449 $592 
Valuation allowance(2)(1)
Total deferred income tax assets, net of valuation allowance$447 $591 
Deferred income tax liabilities
Plant, property, and equipment$(2,833)$(2,682)
Employee benefits(558)(507)
Gas inventory(24)(38)
Securitized costs(137)(167)
Other(147)(122)
Total deferred income tax liabilities$(3,699)$(3,516)
Total net deferred income tax liabilities$(3,252)$(2,925)
Consumers
Deferred income tax assets
Net regulatory tax liability$294 $307 
Tax loss and credit carryforwards18 37 
Reserves and accruals13 24 
Total deferred income tax assets$325 $368 
Deferred income tax liabilities
Plant, property, and equipment$(2,808)$(2,658)
Employee benefits(534)(489)
Gas inventory(24)(38)
Securitized costs(137)(167)
Other(23)(69)
Total deferred income tax liabilities$(3,526)$(3,421)
Total net deferred income tax liabilities$(3,201)$(3,053)
Summary of Loss And Credit Carryforwards
Presented in the following table are the tax loss and credit carryforwards at December 31, 2025:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
Michigan net operating loss carryforwards$15 2030 – 2033
Arkansas net operating loss carryforwards2033 - 2035
Local net operating loss carryforwards2025 – 2040
General business credits1
120 2038 – 2045
Total tax attributes$139 
Consumers
Michigan net operating loss carryforwards$10 2030 – 2033
General business credits1
2038 – 2045
Total tax attributes$18 
1General business credits comprise research and development tax credits and renewable energy tax credits that are not expected to be transferred to third parties.
Schedule of Reconciliation of Uncertain Tax Benefits
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Balance at beginning of period$24 $26 $28 
Additions for current-year tax positions
Additions for prior-year tax positions— 
Reductions for lapse of statute of limitations(4)(5)(3)
Balance at end of period$29 $24 $26 
Consumers
Balance at beginning of period$32 $36 $36 
Additions for current-year tax positions
Additions for prior-year tax positions
Reductions for lapse of statute of limitations(4)(11)(3)
Balance at end of period$36 $32 $36 
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
AmountPercentAmountPercentAmountPercent
Years Ended December 31202520242023
CMS Energy, including Consumers
Income from continuing operations before income taxes$1,248 $1,123 $954 
Income tax expense at statutory rate262 21.0 %236 21.0 %200 21.0 %
Increase (decrease) in income taxes from:   
State and local income taxes, net of federal income tax effect1
77 6.2 58 5.1 40 4.2 
Tax credits
Renewable energy tax credits(68)(5.4)(71)(6.4)(55)(5.8)
Other(6)(0.5)(6)(0.5)(7)(0.7)
Nontaxable or nondeductible items0.2 0.4 0.3 
Changes in unrecognized tax benefits0.7 0.2 (11)(1.2)
Other adjustments
TCJA excess deferred taxes(42)(3.4)(43)(3.8)(40)(4.2)
Deferred tax adjustment2
— — (16)(1.4)— — 
Taxes attributable to noncontrolling interests15 1.2 12 1.1 17 1.8 
Other, net(4)(0.3)— — — — 
Income tax expense$246 $176 $147 
Effective tax rate19.7 %15.7 %15.4 %
In Millions, Except Tax Rate
AmountPercentAmountPercentAmountPercent
Years Ended December 31202520242023
Consumers
Income from continuing operations before income taxes$1,417 $1,209 $1,028 
Income tax expense at statutory rate298 21.0 %254 21.0 %216 21.0 %
Increase (decrease) in income taxes from:   
State and local income taxes, net of federal income tax effect1
80 5.7 60 5.0 47 4.6 
Tax credits
Renewable energy tax credits(46)(3.2)(51)(4.2)(43)(4.2)
Other(6)(0.4)(6)(0.5)(7)(0.7)
Nontaxable or nondeductible items0.2 0.2 0.3 
Changes in unrecognized tax benefits0.6 0.1 (12)(1.2)
Other adjustments
TCJA excess deferred taxes
(42)(3.0)(43)(3.6)(40)(3.9)
Deferred tax adjustment2
— — (16)(1.3)— — 
Other, net(8)(0.6)(2)(0.2)(3)(0.2)
Income tax expense$288 $200 $161 
Effective tax rate20.3 %16.5 %15.7 %
1In June 2025, state deferred tax balances were increased by $12 million to reflect a change in Illinois tax policy that establishes nexus for Consumers. The policy change is effective for tax years beginning January 1, 2026. During 2023, CMS Energy initiated a plan to divest immaterial business activities in a non-Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction. As a result of these actions, CMS Energy reversed a $13 million non-Michigan reserve, all of which was recognized at Consumers.
2During 2024, Consumers recognized a $16 million tax benefit resulting from the expiration of the statute of limitations associated with audit points for the 2018 and 2019 tax years.
Summary of Significant Components of Income Tax Expense
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Current income taxes
Federal$34 $34 $
State and local— 
$43 $34 $
Deferred income taxes
Federal107 70 107 
State and local100 76 38 
$207 $146 $145 
Deferred income tax credit(4)(4)(4)
Tax expense$246 $176 $147 
Consumers
Current income taxes
Federal$207 $78 $
State and local33 
$240 $85 $
Deferred income taxes
Federal(27)51 117 
State and local79 68 43 
$52 $119 $160 
Deferred income tax credit(4)(4)(4)
Tax expense$288 $200 $161 
Summary of Income Taxes Paid
Presented in the following table are income taxes paid:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Federal $28 $27 $15 
State — 
Total$29 $28 $15 
Consumers
Federal $189 $57 $23 
State 21 — 
Total$210 $57 $31 
Summary of Principal Components of Deferred Income Tax Assets and Liabilities
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120252024
CMS Energy, including Consumers
Deferred income tax assets
Net regulatory tax liability$294 $307 
Tax loss and credit carryforwards139 258 
Reserves and accruals16 27 
Total deferred income tax assets$449 $592 
Valuation allowance(2)(1)
Total deferred income tax assets, net of valuation allowance$447 $591 
Deferred income tax liabilities
Plant, property, and equipment$(2,833)$(2,682)
Employee benefits(558)(507)
Gas inventory(24)(38)
Securitized costs(137)(167)
Other(147)(122)
Total deferred income tax liabilities$(3,699)$(3,516)
Total net deferred income tax liabilities$(3,252)$(2,925)
Consumers
Deferred income tax assets
Net regulatory tax liability$294 $307 
Tax loss and credit carryforwards18 37 
Reserves and accruals13 24 
Total deferred income tax assets$325 $368 
Deferred income tax liabilities
Plant, property, and equipment$(2,808)$(2,658)
Employee benefits(534)(489)
Gas inventory(24)(38)
Securitized costs(137)(167)
Other(23)(69)
Total deferred income tax liabilities$(3,526)$(3,421)
Total net deferred income tax liabilities$(3,201)$(3,053)
Summary of Loss And Credit Carryforwards
Presented in the following table are the tax loss and credit carryforwards at December 31, 2025:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
Michigan net operating loss carryforwards$15 2030 – 2033
Arkansas net operating loss carryforwards2033 - 2035
Local net operating loss carryforwards2025 – 2040
General business credits1
120 2038 – 2045
Total tax attributes$139 
Consumers
Michigan net operating loss carryforwards$10 2030 – 2033
General business credits1
2038 – 2045
Total tax attributes$18 
1General business credits comprise research and development tax credits and renewable energy tax credits that are not expected to be transferred to third parties.
Schedule of Reconciliation of Uncertain Tax Benefits
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Balance at beginning of period$24 $26 $28 
Additions for current-year tax positions
Additions for prior-year tax positions— 
Reductions for lapse of statute of limitations(4)(5)(3)
Balance at end of period$29 $24 $26 
Consumers
Balance at beginning of period$32 $36 $36 
Additions for current-year tax positions
Additions for prior-year tax positions
Reductions for lapse of statute of limitations(4)(11)(3)
Balance at end of period$36 $32 $36 
v3.25.4
Earnings Per Share - CMS Energy (Tables)
12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Summary of Basic and Diluted EPS Computations
Presented in the following table are CMS Energy’s basic and diluted EPS computations based on income from continuing operations:
In Millions, Except Per Share Amounts
Years Ended December 31202520242023
Income available to common stockholders
Income from continuing operations$1,002 $947 $807 
Less loss attributable to noncontrolling interests(69)(56)(79)
Less preferred stock dividends10 10 10 
Income from continuing operations available to common stockholders – basic and diluted$1,061 $993 $876 
Average common shares outstanding
Weighted-average shares – basic300.4 297.6 291.2 
Add dilutive nonvested stock awards0.5 0.7 0.5 
Add dilutive forward equity sale contracts0.1 — — 
Weighted-average shares – diluted301.0 298.3 291.7 
Income from continuing operations per average common share available to common stockholders
Basic$3.53 $3.34 $3.01 
Diluted3.53 3.33 3.01 
v3.25.4
Revenue (Tables)
12 Months Ended
Dec. 31, 2025
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, 2025Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$5,578 $2,468 $— $8,046 
Other— — 259 259 
Revenue recognized from contracts with customers$5,578 $2,468 $259 $8,305 
Leasing income— — 149 149 
Financing income10 — 16 
Consumers alternative-revenue programs50 19 — 69 
Total operating revenue – CMS Energy$5,638 $2,493 $408 $8,539 
Consumers
Consumers utility revenue
Residential$2,661 $1,701 $4,362 
Commercial1,888 538 2,426 
Industrial762 62 824 
Other267 167 434 
Revenue recognized from contracts with customers$5,578 $2,468 $8,046 
Financing income10 16 
Alternative-revenue programs50 19 69 
Other non-segment revenue— — 
Total operating revenue – Consumers$5,638 $2,493 $8,132 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2024Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,995 $2,114 $— $7,109 
Other— — 211 211 
Revenue recognized from contracts with customers$4,995 $2,114 $211 $7,320 
Leasing income— — 105 105 
Financing income10 — 15 
Consumers alternative-revenue programs56 19 — 75 
Total operating revenue – CMS Energy$5,061 $2,138 $316 $7,515 
Consumers
Consumers utility revenue
Residential$2,318 $1,429 $3,747 
Commercial1,674 440 2,114 
Industrial670 50 720 
Other333 195 528 
Revenue recognized from contracts with customers$4,995 $2,114 $7,109 
Financing income10 15 
Alternative-revenue programs56 19 75 
Other non-segment revenue— — 
Total operating revenue – Consumers$5,061 $2,138 $7,200 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2023Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,686 $2,394 $— $7,080 
Other— — 181 181 
Revenue recognized from contracts with customers$4,686 $2,394 $181 $7,261 
Leasing income— — 116 116 
Financing income10 — 16 
Consumers alternative-revenue programs49 20 — 69 
Total operating revenue – CMS Energy$4,745 $2,420 $297 $7,462 
Consumers
Consumers utility revenue
Residential$2,236 $1,619 $3,855 
Commercial1,550 489 2,039 
Industrial660 60 720 
Other240 226 466 
Revenue recognized from contracts with customers$4,686 $2,394 $7,080 
Financing income10 16 
Alternative-revenue programs49 20 69 
Other non-segment revenue— — 
Total operating revenue – Consumers$4,745 $2,420 $7,166 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
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, 2025Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$5,578 $2,468 $— $8,046 
Other— — 259 259 
Revenue recognized from contracts with customers$5,578 $2,468 $259 $8,305 
Leasing income— — 149 149 
Financing income10 — 16 
Consumers alternative-revenue programs50 19 — 69 
Total operating revenue – CMS Energy$5,638 $2,493 $408 $8,539 
Consumers
Consumers utility revenue
Residential$2,661 $1,701 $4,362 
Commercial1,888 538 2,426 
Industrial762 62 824 
Other267 167 434 
Revenue recognized from contracts with customers$5,578 $2,468 $8,046 
Financing income10 16 
Alternative-revenue programs50 19 69 
Other non-segment revenue— — 
Total operating revenue – Consumers$5,638 $2,493 $8,132 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2024Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,995 $2,114 $— $7,109 
Other— — 211 211 
Revenue recognized from contracts with customers$4,995 $2,114 $211 $7,320 
Leasing income— — 105 105 
Financing income10 — 15 
Consumers alternative-revenue programs56 19 — 75 
Total operating revenue – CMS Energy$5,061 $2,138 $316 $7,515 
Consumers
Consumers utility revenue
Residential$2,318 $1,429 $3,747 
Commercial1,674 440 2,114 
Industrial670 50 720 
Other333 195 528 
Revenue recognized from contracts with customers$4,995 $2,114 $7,109 
Financing income10 15 
Alternative-revenue programs56 19 75 
Other non-segment revenue— — 
Total operating revenue – Consumers$5,061 $2,138 $7,200 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2023Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,686 $2,394 $— $7,080 
Other— — 181 181 
Revenue recognized from contracts with customers$4,686 $2,394 $181 $7,261 
Leasing income— — 116 116 
Financing income10 — 16 
Consumers alternative-revenue programs49 20 — 69 
Total operating revenue – CMS Energy$4,745 $2,420 $297 $7,462 
Consumers
Consumers utility revenue
Residential$2,236 $1,619 $3,855 
Commercial1,550 489 2,039 
Industrial660 60 720 
Other240 226 466 
Revenue recognized from contracts with customers$4,686 $2,394 $7,080 
Financing income10 16 
Alternative-revenue programs49 20 69 
Other non-segment revenue— — 
Total operating revenue – Consumers$4,745 $2,420 $7,166 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
v3.25.4
Other Income and Other Expense (Tables)
12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Line Items]  
Summary of Components of Other Income and Other Expense
Presented in the following table are the components of other income and other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Other income
Gain on extinguishment of debt1
$72 $110 $131 
Interest income37 50 37 
Interest income – related parties— — 
Allowance for equity funds used during construction23 29 
Income from equity method investees
All other13 11 13 
Total other income – CMS Energy$151 $207 $195 
Consumers
Other income
Interest income$22 $42 $25 
Interest income – related parties
Allowance for equity funds used during construction23 29 
All other12 
Total other income – Consumers$55 $85 $49 
CMS Energy, including Consumers
Other expense
Donations$(10)$(18)$(1)
Civic and political expenditures(7)(5)(5)
All other(10)(9)(7)
Total other expense – CMS Energy$(27)$(32)$(13)
Consumers
Other expense
Donations$(10)$(18)$(1)
Civic and political expenditures(5)(5)(5)
All other(7)(7)(6)
Total other expense – Consumers$(22)$(30)$(12)
1For information regarding the gain on extinguishment of debt, see Note 5, Financings and Capitalization—CMS Energy’s Purchase of Consumers’ First Mortgage Bonds.
Consumers Energy Company  
Other Income and Expenses [Line Items]  
Summary of Components of Other Income and Other Expense
Presented in the following table are the components of other income and other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202520242023
CMS Energy, including Consumers
Other income
Gain on extinguishment of debt1
$72 $110 $131 
Interest income37 50 37 
Interest income – related parties— — 
Allowance for equity funds used during construction23 29 
Income from equity method investees
All other13 11 13 
Total other income – CMS Energy$151 $207 $195 
Consumers
Other income
Interest income$22 $42 $25 
Interest income – related parties
Allowance for equity funds used during construction23 29 
All other12 
Total other income – Consumers$55 $85 $49 
CMS Energy, including Consumers
Other expense
Donations$(10)$(18)$(1)
Civic and political expenditures(7)(5)(5)
All other(10)(9)(7)
Total other expense – CMS Energy$(27)$(32)$(13)
Consumers
Other expense
Donations$(10)$(18)$(1)
Civic and political expenditures(5)(5)(5)
All other(7)(7)(6)
Total other expense – Consumers$(22)$(30)$(12)
1For information regarding the gain on extinguishment of debt, see Note 5, Financings and Capitalization—CMS Energy’s Purchase of Consumers’ First Mortgage Bonds.
v3.25.4
Reportable Segments (Tables)
12 Months Ended
Dec. 31, 2025
Segment Reporting Information [Line Items]  
Schedule of Financial Information by Reportable Segments
Presented in the following tables is financial information by segment:
In Millions
Year Ended December 31, 2025Electric UtilityGas UtilityNorthStar Clean EnergySegments TotalOther Reconciling ItemsConsolidated
CMS Energy, including Consumers
Operating revenue$5,638 $2,493 $408 $8,539 $— $8,539 
Operating expenses
Power supply cost1
2,193 — 264 2,457 — 2,457 
Cost of gas sold— 803 809 — 809 
Maintenance and other operating expenses1,146 468 100 1,714 13 1,727 
Depreciation and amortization903 350 52 1,305 1,306 
General taxes297 201 14 512 513 
Total operating expenses4,539 1,822 436 6,797 15 6,812 
Operating Income (Loss)1,099 671 (28)1,742 (15)1,727 
Other income2
124 83 17 224 86 310 
Interest charges353 206 (7)552 237 789 
Income (Loss) Before Income Taxes870 548 (4)1,414 (166)1,248 
Income tax expense (benefit)150 138 (4)284 (38)246 
Income (Loss) From Continuing Operations720 410 — 1,130 (128)1,002 
Other segment items3
(1)(1)71 69 (10)59 
Net Income (Loss) Available to Common Stockholders$719 $409 $71 $1,199 $(138)$1,061 
Property, plant, and equipment, gross$21,871 
4
$14,218 
4
$1,649 $37,738 $25 $37,763 
Investments in equity method investees— — 61 61 — 61 
Total assets22,760 
4
14,188 
4
2,496 39,444 497 39,941 
Capital expenditures5
2,408 
6
1,064 
6
498 3,970 — 3,970 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Includes income from equity method investees of $5 million attributable to NorthStar Clean Energy. See Note 16, Other Income and Other Expense
3Other segment items comprise loss attributable to noncontrolling interests and preferred stock dividends.
4Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
5Amounts include assets placed under finance lease.
6Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
In Millions
Year Ended December 31, 2025Electric UtilityGas UtilitySegments TotalOther Reconciling ItemsConsolidated
Consumers
Operating revenue$5,638 $2,493 $8,131 $$8,132 
Operating expenses
Power supply cost1
2,193 — 2,193 — 2,193 
Cost of gas sold— 803 803 — 803 
Maintenance and other operating expenses1,146 468 1,614 — 1,614 
Depreciation and amortization903 350 1,253 1,254 
General taxes297 201 498 499 
Total operating expenses4,539 1,822 6,361 6,363 
Operating Income (Loss)1,099 671 1,770 (1)1,769 
Other income124 83 207 208 
Interest charges353 206 559 560 
Income (Loss) Before Income Taxes870 548 1,418 (1)1,417 
Income tax expense150 138 288 — 288 
Net Income (Loss)720 410 1,130 (1)1,129 
Other segment items2
(1)(1)(2)— (2)
Net Income (Loss) Available to Common Stockholder$719 $409 $1,128 $(1)$1,127 
Property, plant, and equipment, gross$21,871 
3
$14,218 
3
$36,089 $31 $36,120 
Total assets22,814 
3
14,229 
3
37,043 48 37,091 
Capital expenditures4
2,408 
5
1,064 
5
3,472 — 3,472 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Other segment items comprise preferred stock dividends.
3Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
4Amounts include assets placed under finance lease.
5Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
In Millions
Year Ended December 31, 2024Electric UtilityGas UtilityNorthStar Clean EnergySegments TotalOther Reconciling ItemsConsolidated
CMS Energy, including Consumers
Operating revenue$5,061 $2,138 $316 $7,515 $— $7,515 
Operating expenses
Power supply cost1
1,867 — 161 2,028 — 2,028 
Cost of gas sold— 637 640 — 640 
Maintenance and other operating expenses1,066 454 101 1,621 17 1,638 
Depreciation and amortization865 325 49 1,239 1,240 
General taxes281 188 12 481 482 
Total operating expenses4,079 1,604 326 6,009 19 6,028 
Operating Income (Loss)982 534 (10)1,506 (19)1,487 
Other income2
126 86 14 226 118 344 
Interest charges324 192 520 188 708 
Income (Loss) Before Income Taxes784 428 — 1,212 (89)1,123 
Income tax expense (benefit)102 99 (5)196 (20)176 
Income (Loss) From Continuing Operations682 329 1,016 (69)947 
Other segment items3
(1)(1)58 56 (10)46 
Net Income (Loss) Available to Common Stockholders$681 $328 $63 $1,072 $(79)$993 
Property, plant, and equipment, gross$20,137 
4
$13,268 
4
$1,506 $34,911 $21 $34,932 
Investments in equity method investees— — 64 64 — 64 
Total assets20,710 
4
13,247 
4
1,893 35,850 70 35,920 
Capital expenditures5
1,871 
6
1,141 
6
288 $3,300 3,301 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Includes income from equity method investees of $7 million attributable to NorthStar Clean Energy. See Note 16, Other Income and Other Expense.
3Other segment items comprise loss attributable to noncontrolling interests and preferred stock dividends.
4Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
5Amounts include assets placed under finance lease.
6Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
In Millions
Year Ended December 31, 2024Electric UtilityGas UtilitySegments TotalOther Reconciling ItemsConsolidated
Consumers
Operating revenue$5,061 $2,138 $7,199 $$7,200 
Operating expenses
Power supply cost1
1,867 — 1,867 — 1,867 
Cost of gas sold— 637 637 — 637 
Maintenance and other operating expenses1,066 454 1,520 — 1,520 
Depreciation and amortization865 325 1,190 1,191 
General taxes281 188 469 470 
Total operating expenses4,079 1,604 5,683 5,685 
Operating Income (Loss)982 534 1,516 (1)1,515 
Other income126 86 212 — 212 
Interest charges324 192 516 518 
Income (Loss) Before Income Taxes784 428 1,212 (3)1,209 
Income tax expense (benefit)102 99 201 (1)200 
Net Income (Loss)682 329 1,011 (2)1,009 
Other segment items2
(1)(1)(2)— (2)
Net Income (Loss) Available to Common Stockholder$681 $328 $1,009 $(2)$1,007 
Property, plant, and equipment, gross$20,137 
3
$13,268 
3
$33,405 $29 $33,434 
Total assets20,767 
3
13,289 
3
34,056 32 34,088 
Capital expenditures4
1,871 
5
1,141 
5
3,012 — 3,012 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Other segment items comprise preferred stock dividends.
3Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
4Amounts include assets placed under finance lease.
5Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
In Millions
Year Ended December 31, 2023Electric UtilityGas UtilityNorthStar Clean EnergySegments TotalOther Reconciling ItemsConsolidated
CMS Energy, including Consumers
Operating revenue$4,745 $2,420 $297 $7,462 $— $7,462 
Operating expenses
Power supply cost1
1,841 — 170 2,011 — 2,011 
Cost of gas sold— 897 902 — 902 
Maintenance and other operating expenses1,075 511 88 1,674 13 1,687 
Depreciation and amortization797 338 43 1,178 1,180 
General taxes260 176 10 446 447 
Total operating expenses3,973 1,922 316 6,211 16 6,227 
Operating Income (Loss)772 498 (19)1,251 (16)1,235 
Other income2
131 77 12 220 142 362 
Interest charges285 161 448 195 643 
Income (Loss) Before Income Taxes618 414 (9)1,023 (69)954 
Income tax expense (benefit)67 98 169 (22)147 
Income (Loss) From Continuing Operations551 316 (13)854 (47)807 
Other segment items3
(1)(1)80 78 (8)70 
Net Income (Loss) Available to Common Stockholders$550 $315 $67 $932 $(55)$877 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Includes income from equity method investees of $7 million attributable to NorthStar Clean Energy. See Note 16, Other Income and Other Expense.
3Other segment items comprise income from discontinued operations, net of tax, loss attributable to noncontrolling interests, and preferred stock dividends.
In Millions
Year Ended December 31, 2023Electric UtilityGas UtilitySegments TotalOther Reconciling ItemsConsolidated
Consumers
Operating revenue$4,745 $2,420 $7,165 $$7,166 
Operating expenses
Power supply cost1
1,841 — 1,841 — 1,841 
Cost of gas sold— 897 897 — 897 
Maintenance and other operating expenses1,075 511 1,586 — 1,586 
Depreciation and amortization797 338 1,135 1,137 
General taxes260 176 436 437 
Total operating expenses3,973 1,922 5,895 5,898 
Operating Income (Loss)772 498 1,270 (2)1,268 
Other income131 77 208 — 208 
Interest charges285 161 446 448 
Income (Loss) Before Income Taxes618 414 1,032 (4)1,028 
Income tax expense (benefit)67 98 165 (4)161 
Net Income551 316 867 — 867 
Other segment items2
(1)(1)(2)— (2)
Net Income Available to Common Stockholder$550 $315 $865 $— $865 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Other segment items comprise preferred stock dividends.
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
Year Ended December 31, 2025Electric UtilityGas UtilityNorthStar Clean EnergySegments TotalOther Reconciling ItemsConsolidated
CMS Energy, including Consumers
Operating revenue$5,638 $2,493 $408 $8,539 $— $8,539 
Operating expenses
Power supply cost1
2,193 — 264 2,457 — 2,457 
Cost of gas sold— 803 809 — 809 
Maintenance and other operating expenses1,146 468 100 1,714 13 1,727 
Depreciation and amortization903 350 52 1,305 1,306 
General taxes297 201 14 512 513 
Total operating expenses4,539 1,822 436 6,797 15 6,812 
Operating Income (Loss)1,099 671 (28)1,742 (15)1,727 
Other income2
124 83 17 224 86 310 
Interest charges353 206 (7)552 237 789 
Income (Loss) Before Income Taxes870 548 (4)1,414 (166)1,248 
Income tax expense (benefit)150 138 (4)284 (38)246 
Income (Loss) From Continuing Operations720 410 — 1,130 (128)1,002 
Other segment items3
(1)(1)71 69 (10)59 
Net Income (Loss) Available to Common Stockholders$719 $409 $71 $1,199 $(138)$1,061 
Property, plant, and equipment, gross$21,871 
4
$14,218 
4
$1,649 $37,738 $25 $37,763 
Investments in equity method investees— — 61 61 — 61 
Total assets22,760 
4
14,188 
4
2,496 39,444 497 39,941 
Capital expenditures5
2,408 
6
1,064 
6
498 3,970 — 3,970 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Includes income from equity method investees of $5 million attributable to NorthStar Clean Energy. See Note 16, Other Income and Other Expense
3Other segment items comprise loss attributable to noncontrolling interests and preferred stock dividends.
4Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
5Amounts include assets placed under finance lease.
6Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
In Millions
Year Ended December 31, 2025Electric UtilityGas UtilitySegments TotalOther Reconciling ItemsConsolidated
Consumers
Operating revenue$5,638 $2,493 $8,131 $$8,132 
Operating expenses
Power supply cost1
2,193 — 2,193 — 2,193 
Cost of gas sold— 803 803 — 803 
Maintenance and other operating expenses1,146 468 1,614 — 1,614 
Depreciation and amortization903 350 1,253 1,254 
General taxes297 201 498 499 
Total operating expenses4,539 1,822 6,361 6,363 
Operating Income (Loss)1,099 671 1,770 (1)1,769 
Other income124 83 207 208 
Interest charges353 206 559 560 
Income (Loss) Before Income Taxes870 548 1,418 (1)1,417 
Income tax expense150 138 288 — 288 
Net Income (Loss)720 410 1,130 (1)1,129 
Other segment items2
(1)(1)(2)— (2)
Net Income (Loss) Available to Common Stockholder$719 $409 $1,128 $(1)$1,127 
Property, plant, and equipment, gross$21,871 
3
$14,218 
3
$36,089 $31 $36,120 
Total assets22,814 
3
14,229 
3
37,043 48 37,091 
Capital expenditures4
2,408 
5
1,064 
5
3,472 — 3,472 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Other segment items comprise preferred stock dividends.
3Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
4Amounts include assets placed under finance lease.
5Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
In Millions
Year Ended December 31, 2024Electric UtilityGas UtilityNorthStar Clean EnergySegments TotalOther Reconciling ItemsConsolidated
CMS Energy, including Consumers
Operating revenue$5,061 $2,138 $316 $7,515 $— $7,515 
Operating expenses
Power supply cost1
1,867 — 161 2,028 — 2,028 
Cost of gas sold— 637 640 — 640 
Maintenance and other operating expenses1,066 454 101 1,621 17 1,638 
Depreciation and amortization865 325 49 1,239 1,240 
General taxes281 188 12 481 482 
Total operating expenses4,079 1,604 326 6,009 19 6,028 
Operating Income (Loss)982 534 (10)1,506 (19)1,487 
Other income2
126 86 14 226 118 344 
Interest charges324 192 520 188 708 
Income (Loss) Before Income Taxes784 428 — 1,212 (89)1,123 
Income tax expense (benefit)102 99 (5)196 (20)176 
Income (Loss) From Continuing Operations682 329 1,016 (69)947 
Other segment items3
(1)(1)58 56 (10)46 
Net Income (Loss) Available to Common Stockholders$681 $328 $63 $1,072 $(79)$993 
Property, plant, and equipment, gross$20,137 
4
$13,268 
4
$1,506 $34,911 $21 $34,932 
Investments in equity method investees— — 64 64 — 64 
Total assets20,710 
4
13,247 
4
1,893 35,850 70 35,920 
Capital expenditures5
1,871 
6
1,141 
6
288 $3,300 3,301 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Includes income from equity method investees of $7 million attributable to NorthStar Clean Energy. See Note 16, Other Income and Other Expense.
3Other segment items comprise loss attributable to noncontrolling interests and preferred stock dividends.
4Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
5Amounts include assets placed under finance lease.
6Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
In Millions
Year Ended December 31, 2024Electric UtilityGas UtilitySegments TotalOther Reconciling ItemsConsolidated
Consumers
Operating revenue$5,061 $2,138 $7,199 $$7,200 
Operating expenses
Power supply cost1
1,867 — 1,867 — 1,867 
Cost of gas sold— 637 637 — 637 
Maintenance and other operating expenses1,066 454 1,520 — 1,520 
Depreciation and amortization865 325 1,190 1,191 
General taxes281 188 469 470 
Total operating expenses4,079 1,604 5,683 5,685 
Operating Income (Loss)982 534 1,516 (1)1,515 
Other income126 86 212 — 212 
Interest charges324 192 516 518 
Income (Loss) Before Income Taxes784 428 1,212 (3)1,209 
Income tax expense (benefit)102 99 201 (1)200 
Net Income (Loss)682 329 1,011 (2)1,009 
Other segment items2
(1)(1)(2)— (2)
Net Income (Loss) Available to Common Stockholder$681 $328 $1,009 $(2)$1,007 
Property, plant, and equipment, gross$20,137 
3
$13,268 
3
$33,405 $29 $33,434 
Total assets20,767 
3
13,289 
3
34,056 32 34,088 
Capital expenditures4
1,871 
5
1,141 
5
3,012 — 3,012 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Other segment items comprise preferred stock dividends.
3Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
4Amounts include assets placed under finance lease.
5Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
In Millions
Year Ended December 31, 2023Electric UtilityGas UtilityNorthStar Clean EnergySegments TotalOther Reconciling ItemsConsolidated
CMS Energy, including Consumers
Operating revenue$4,745 $2,420 $297 $7,462 $— $7,462 
Operating expenses
Power supply cost1
1,841 — 170 2,011 — 2,011 
Cost of gas sold— 897 902 — 902 
Maintenance and other operating expenses1,075 511 88 1,674 13 1,687 
Depreciation and amortization797 338 43 1,178 1,180 
General taxes260 176 10 446 447 
Total operating expenses3,973 1,922 316 6,211 16 6,227 
Operating Income (Loss)772 498 (19)1,251 (16)1,235 
Other income2
131 77 12 220 142 362 
Interest charges285 161 448 195 643 
Income (Loss) Before Income Taxes618 414 (9)1,023 (69)954 
Income tax expense (benefit)67 98 169 (22)147 
Income (Loss) From Continuing Operations551 316 (13)854 (47)807 
Other segment items3
(1)(1)80 78 (8)70 
Net Income (Loss) Available to Common Stockholders$550 $315 $67 $932 $(55)$877 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Includes income from equity method investees of $7 million attributable to NorthStar Clean Energy. See Note 16, Other Income and Other Expense.
3Other segment items comprise income from discontinued operations, net of tax, loss attributable to noncontrolling interests, and preferred stock dividends.
In Millions
Year Ended December 31, 2023Electric UtilityGas UtilitySegments TotalOther Reconciling ItemsConsolidated
Consumers
Operating revenue$4,745 $2,420 $7,165 $$7,166 
Operating expenses
Power supply cost1
1,841 — 1,841 — 1,841 
Cost of gas sold— 897 897 — 897 
Maintenance and other operating expenses1,075 511 1,586 — 1,586 
Depreciation and amortization797 338 1,135 1,137 
General taxes260 176 436 437 
Total operating expenses3,973 1,922 5,895 5,898 
Operating Income (Loss)772 498 1,270 (2)1,268 
Other income131 77 208 — 208 
Interest charges285 161 446 448 
Income (Loss) Before Income Taxes618 414 1,032 (4)1,028 
Income tax expense (benefit)67 98 165 (4)161 
Net Income551 316 867 — 867 
Other segment items2
(1)(1)(2)— (2)
Net Income Available to Common Stockholder$550 $315 $865 $— $865 
1Power supply costs comprise fuel for electric generation, purchased and interchange power, and purchased power – related parties.
2Other segment items comprise preferred stock dividends.
v3.25.4
Variable Interest Entities (Tables)
12 Months Ended
Dec. 31, 2025
Variable Interest Entities [Abstract]  
Schedule of Variable Interest Entities Presented in the following table is information about the VIEs NorthStar Clean Energy consolidates:
Consolidated VIENorthStar Clean Energy’s ownership interestDescription of VIE
Aviator Wind Equity Holdings
51-percent ownership interest1
Holds a Class B membership interest in Aviator Wind
Aviator Wind
Class B membership interest2
Holding company of a 525-MW wind generation project in Coke County, Texas
BG Solar Holdings
Class B membership interest2
Holding company of a 200-MW solar generation project in Branch County, Michigan
Delta Solar Equity Holdings
50-percent ownership interest1
Holding company of a 24-MW solar generation project in Delta Township, Michigan
Newport Solar Holdings
Class B membership interest2
Holding company of a 180‑MW solar generation project in Jackson County, Arkansas
NWO Wind Equity Holdings
50‑percent ownership interest1
Holds a Class B membership interest in NWO Holdco
NWO Holdco
Class B membership interest2
Holding company of a 100-MW wind generation project in Paulding County, Ohio
1The remaining ownership interest is presented as noncontrolling interest on CMS Energy’s consolidated balance sheets.
2The Class A membership interest in the entity is held by a tax equity investor and is presented as noncontrolling interest on CMS Energy’s consolidated balance sheets. Under the associated limited liability company agreement, the tax equity investor is guaranteed preferred returns from the entity.
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 3120252024
Current
Cash and cash equivalents$20 $18 
Restricted cash19 — 
Accounts receivable42 
Prepayments and other current assets
Non-current
Plant, property, and equipment, net1,037 1,024 
Construction work in progress357 — 
Other non-current assets
Total assets1
$1,485 $1,052 
Current
Current portion of long-term debt and finance leases$65 $— 
Accounts payable29 
Non-current
Long-term debt118 — 
Non-current portion of finance leases39 23 
AROs38 33 
Other non-current liabilities— 
Total liabilities$292 $64 
1Assets may be used only to meet VIEs’ obligations and commitments.
Presented in the following table is information about these partnerships, which are accounted for using the equity method:
NameNature of the EntityNature of NorthStar Clean 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.
v3.25.4
Exit Activities and Asset Sales (Tables)
12 Months Ended
Dec. 31, 2025
Restructuring Cost and Reserve [Line Items]  
Schedule of Retention Benefit Liability Roll Forward
Presented in the following table is a reconciliation of the retention benefit liability recorded in other current liabilities on Consumers’ consolidated balance sheets:
In Millions
Year Ended December 3120252024
Retention benefit liability at beginning of period$14 $16 
Costs deferred as a regulatory asset
Costs paid or settled(19)(10)
Retention benefit liability at the end of the period
$$14 
Consumers Energy Company  
Restructuring Cost and Reserve [Line Items]  
Schedule of Retention Benefit Liability Roll Forward
Presented in the following table is a reconciliation of the retention benefit liability recorded in other current liabilities on Consumers’ consolidated balance sheets:
In Millions
Year Ended December 3120252024
Retention benefit liability at beginning of period$14 $16 
Costs deferred as a regulatory asset
Costs paid or settled(19)(10)
Retention benefit liability at the end of the period
$$14 
v3.25.4
Regulatory Matters (Schedule of Regulatory Assets and Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Public Utilities, General Disclosures [Line Items]    
Total current regulatory assets $ 104 $ 229
Total non-current regulatory assets 3,355 3,569
Total current regulatory liabilities 85 111
Total non-current regulatory liabilities 4,091 4,067
Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total current regulatory assets 104 229
Total non-current regulatory assets 3,355 3,569
Total regulatory assets 3,459 3,798
Total current regulatory liabilities 85 111
Total non-current regulatory liabilities 4,091 4,067
Total regulatory liabilities 4,176 4,178
Income taxes, net | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total current regulatory liabilities 47 53
Total non-current regulatory liabilities 1,118 1,163
ASP gain | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total current regulatory liabilities 28 47
Total non-current regulatory liabilities 19 46
Other | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total current regulatory liabilities 10 11
Total non-current regulatory liabilities 40 24
Cost of removal | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory liabilities 2,727 2,665
Energy waste reduction plan | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory liabilities 68 41
Green Giving Program | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory liabilities 41 0
Postretirement benefits expense deferral mechanism | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory liabilities 40 37
Renewable energy grant | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory liabilities 38 40
Renewable Energy Plan | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory liabilities 0 51
Energy waste reduction plan incentive | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total current regulatory assets 66 60
Total non-current regulatory assets 64 64
Retention incentive program | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total current regulatory assets 10 18
Total non-current regulatory assets 6 12
2022 PSCR underrecovery | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total current regulatory assets 0 126
Other | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total current regulatory assets 28 25
Total non-current regulatory assets 54 25
Costs of coal-fueled electric generating units to be retired | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 1,179 1,266
Postretirement benefits | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 589 747
Securitized costs | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 549 666
ARO | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 379 366
Decommissioning costs | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 197 158
Unamortized loss on reacquired debt | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 89 92
MGP sites | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 82 90
Ludington overhaul contract dispute | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 60 31
Service restoration cost deferral | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 52 0
Energy waste reduction plan | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 26 31
Postretirement benefits expense deferral mechanism | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets 22 21
Renewable Energy Plan | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Total non-current regulatory assets $ 7 $ 0
v3.25.4
Regulatory Matters (Narrative) (Details)
$ in Millions
1 Months Ended 4 Months Ended 12 Months Ended
Jan. 31, 2026
USD ($)
Sep. 30, 2025
USD ($)
Jul. 31, 2025
USD ($)
Mar. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Oct. 31, 2024
USD ($)
Jul. 31, 2024
USD ($)
May 31, 2024
USD ($)
Apr. 30, 2024
USD ($)
Dec. 31, 2025
USD ($)
facility
Dec. 31, 2025
USD ($)
facility
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2016
unit
Dec. 31, 2015
unit
Dec. 31, 2013
USD ($)
Public Utilities, General Disclosures [Line Items]                                  
Regulatory assets         $ 3,569.0         $ 3,355.0 $ 3,355.0 $ 3,569.0          
Operating Revenue                     8,539.0 7,515.0 $ 7,462.0        
ASP gain                                  
Public Utilities, General Disclosures [Line Items]                                  
Gain on disposition of assets                 $ 110.0                
Amount credited to customers             $ 82.5                    
Ludington Overhaul Contract Dispute                                  
Public Utilities, General Disclosures [Line Items]                                  
Cash expenditures                     30.0            
Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Regulatory assets         3,569.0         $ 3,355.0 3,355.0 3,569.0          
Operating Revenue                     $ 8,132.0 7,200.0 $ 7,166.0        
Consumers Energy Company | Renewable energy grant                                  
Public Utilities, General Disclosures [Line Items]                                  
Proceeds from government grant                                 $ 69.0
Consumers Energy Company | MGP sites                                  
Public Utilities, General Disclosures [Line Items]                                  
Number of former MGPs | facility                   23 23            
Regulatory asset collection period                   10 years 10 years            
Consumers Energy Company | Gas-Fueled Electric Generation                                  
Public Utilities, General Disclosures [Line Items]                                  
Number of units retired | unit                               3  
Consumers Energy Company | Coal-Fueled Electric Generation                                  
Public Utilities, General Disclosures [Line Items]                                  
Number of units retired | unit                             7    
Consumers Energy Company | Energy Waste Reduction Plan Incentive                                  
Public Utilities, General Disclosures [Line Items]                                  
Regulatory assets         64.0         $ 64.0 $ 64.0 64.0          
Consumers Energy Company | J.H. Campbell Generating Units                                  
Public Utilities, General Disclosures [Line Items]                                  
Regulatory assets                           $ 1,300.0      
Operating Revenue                   77.0              
Rate of return on equity authorized                           9.00%      
Financial impact of emergency order                   93.0              
Consumers Energy Company | J.H. Campbell Generating Units | Subsequent Event                                  
Public Utilities, General Disclosures [Line Items]                                  
Operating Revenue $ 78.0                                
Financial impact of emergency order 42.0                                
Energy Waste Reduction Plan Incentive | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Operating Revenue                     64.0            
Energy Waste Reduction Plan Incentive | Consumers Energy Company | Subsequent Event                                  
Public Utilities, General Disclosures [Line Items]                                  
Authorized recovery collection $ 64.0                                
PSCR underrecoveries | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
PSCR underrecoveries         0.0         $ 38.0 $ 38.0 $ 0.0   $ 401.0      
Gas Rate Case | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Requested annual rate increase         $ 248.0                        
Requested annual rate increase, as a percent         10.25%                        
Amended requested annual rate increase     $ 217.0                            
Gas Rate Case | Consumers Energy Company | ASP gain                                  
Public Utilities, General Disclosures [Line Items]                                  
Gain on sale utilized as offset             $ 27.5                    
Electric Rate Case                                  
Public Utilities, General Disclosures [Line Items]                                  
Amended requested annual rate increase           $ 277.0                      
Electric Rate Case | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Rate of return on equity authorized   9.80%   9.90%                          
Requested annual rate increase               $ 325.0                  
Requested annual rate increase, as a percent               10.25%                  
Surcharge for the recovery of excess distribution investments       $ 22.0                          
Additional annual rate increase authorized   $ 157.5   $ 176.0                          
Electric Rate Case, First Component | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Requested annual rate increase               $ 303.0                  
Electric Rate Case, Second Component | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Surcharge for the recovery of excess distribution investments               $ 22.0                  
v3.25.4
Regulatory Matters (Schedule of Liabilities for PSCR and GCR Overrecoveries) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2022
Public Utilities, General Disclosures [Line Items]      
Accrued rate refunds $ 28 $ 38  
Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Accounts receivable and accrued revenue 38 0  
Accrued rate refunds 28 38  
Consumers Energy Company | PSCR underrecoveries      
Public Utilities, General Disclosures [Line Items]      
PSCR underrecoveries 38 0 $ 401
Accrued rate refunds 0 13  
Consumers Energy Company | GCR underrecoveries      
Public Utilities, General Disclosures [Line Items]      
Accrued rate refunds $ 28 $ 25  
v3.25.4
Contingencies and Commitments (Narrative) (Details)
$ in Millions
1 Months Ended 12 Months Ended
Dec. 31, 2025
USD ($)
MW
facility
Sep. 30, 2025
MW
$ / MWh
Dec. 31, 2025
USD ($)
MW
$ / MWh
facility
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Loss Contingencies [Line Items]            
Environmental Loss Contingency, Statement Of Financial Position, Extensible Enumeration, Not Disclosed Flag     recorded liability      
Regulatory assets $ 3,355   $ 3,355 $ 3,569    
Consumers Energy Company            
Loss Contingencies [Line Items]            
Regulatory assets $ 3,355   $ 3,355 3,569    
Consumers Energy Company | MCV PPA            
Loss Contingencies [Line Items]            
PPA maximum quantity required | MW 1,240 1,240 1,240      
PPA capacity charge per MWh (in dollars per MWh) | $ / MWh   5.00        
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     $ 360 358 $ 340  
Purchase obligation term   10 years        
Consumers Energy Company | MCV PPA | Year End Through March 2025            
Loss Contingencies [Line Items]            
PPA capacity charge per MWh (in dollars per MWh) | $ / MWh     10.14      
Consumers Energy Company | MCV PPA | March 2025 Through Termination            
Loss Contingencies [Line Items]            
PPA capacity charge per MWh (in dollars per MWh) | $ / MWh     5.00      
Consumers Energy Company | Other PPAs            
Loss Contingencies [Line Items]            
Purchases     $ 603 565 $ 498  
Consumers Energy Company | MGP sites            
Loss Contingencies [Line Items]            
Regulatory assets $ 82   82 $ 90    
Consumers Energy Company | Ludington Plant Overhaul Contract Dispute            
Loss Contingencies [Line Items]            
Damages sought           $ 15
Damages awarded 383          
Additional damages awarded 11          
Estimate of shared costs 350   350      
Bay Harbor            
Loss Contingencies [Line Items]            
Accrual for environmental loss contingencies $ 48   $ 48      
Discount rate 4.34%   4.34%      
Accrual for environmental loss contingencies, inflation rate 1.00%   1.00%      
Accrual for environmental loss contingencies, gross $ 62   $ 62      
NREPA | Electric Utility | Consumers Energy Company            
Loss Contingencies [Line Items]            
Accrual for environmental loss contingencies 2   2      
NREPA | Minimum | Electric Utility | Consumers Energy Company            
Loss Contingencies [Line Items]            
Remediation and other response activity costs 2   2      
NREPA | Maximum | Electric Utility | Consumers Energy Company            
Loss Contingencies [Line Items]            
Remediation and other response activity costs 3   3      
CERCLA Liability | Consumers Energy Company            
Loss Contingencies [Line Items]            
Accrual for environmental loss contingencies 3   3      
CERCLA Liability | Minimum | Consumers Energy Company            
Loss Contingencies [Line Items]            
Remediation and other response activity costs 3   3      
CERCLA Liability | Maximum | Consumers Energy Company            
Loss Contingencies [Line Items]            
Remediation and other response activity costs 8   8      
MGP sites | Consumers Energy Company            
Loss Contingencies [Line Items]            
Accrual for environmental loss contingencies $ 59   $ 59      
Number of former MGPs | facility 23   23      
Regulatory asset collection period 10 years   10 years      
v3.25.4
Contingencies and Commitments (Schedule of Remediation and Other Response Activity Costs by Year) (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Consumers Energy Company | MGP sites  
Site Contingency [Line Items]  
2026 $ 3
2027 8
2028 25
2029 11
2030 3
Bay Harbor  
Site Contingency [Line Items]  
2026 4
2027 4
2028 4
2029 4
2030 $ 4
v3.25.4
Contingencies and Commitments (Summary of Guarantees) (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Variable Interest Entity, Primary Beneficiary | Aviator Wind Equity Holdings  
Guarantees And Other Contingencies [Line Items]  
Ownership percentage 49.00%
Guarantees  
Guarantees And Other Contingencies [Line Items]  
Maximum Obligation $ 30
Carrying Amount 0
Guarantees | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Maximum Obligation 30
Carrying Amount 0
Indemnity obligations from sale of membership interests in VIEs  
Guarantees And Other Contingencies [Line Items]  
Maximum Obligation 230
Carrying Amount 0
Indemnity obligations from stock and asset sale agreements  
Guarantees And Other Contingencies [Line Items]  
Maximum Obligation 152
Carrying Amount $ 0
v3.25.4
Contingencies and Commitments (Schedule of Contractual Purchase Obligations) (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Guarantees And Other Contingencies [Line Items]  
Total $ 20,565
2026 2,384
2027 1,666
2028 1,398
2029 1,333
2030 1,314
2030 12,470
Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Total 19,683
2026 2,058
2027 1,503
2028 1,293
2029 1,208
2030 1,243
2030 12,378
Total PPAs  
Guarantees And Other Contingencies [Line Items]  
Total 16,983
2026 873
2027 904
2028 930
2029 942
2030 1,011
2030 12,323
Total PPAs | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Total 16,983
2026 873
2027 904
2028 930
2029 942
2030 1,011
2030 12,323
Other  
Guarantees And Other Contingencies [Line Items]  
Total 3,582
2026 1,511
2027 762
2028 468
2029 391
2030 303
2030 147
Other | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Total 2,700
2026 1,185
2027 599
2028 363
2029 266
2030 232
2030 55
MCV PPA | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Total 5,539
2026 339
2027 312
2028 316
2029 308
2030 395
2030 3,869
Related-party PPAs | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Total 62
2026 32
2027 30
2028 0
2029 0
2030 0
2030 0
Other PPAs | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Total 11,382
2026 502
2027 562
2028 614
2029 634
2030 616
2030 $ 8,454
v3.25.4
Financings and Capitalization (Summary of Long-Term Debt) (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Jun. 01, 2035
Dec. 01, 2030
Jun. 01, 2030
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 18,939 $ 16,545
Current amounts       (950) (1,192)
Long-term debt – related parties principal amount outstanding       (3,458)  
Unamortized discounts       (28) (29)
Unamortized issuance costs       (154) (130)
Long-term debt       17,807 15,194
Consumers Energy Company          
Debt Instrument [Line Items]          
Total principal amount outstanding       13,215 12,205
Current amounts       (573) (452)
Long-term debt – related parties principal amount outstanding       (1,125)  
Unamortized discounts       (26) (27)
Unamortized issuance costs       (73) (73)
Consumers Energy Company | Related Party          
Debt Instrument [Line Items]          
Long-term debt – related parties principal amount outstanding       (1,019) (835)
Long-term debt       1,005 823
Consumers Energy Company | Nonrelated Party          
Debt Instrument [Line Items]          
Long-term debt       11,524 10,818
First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Total principal amount outstanding       12,520 11,395
First mortgage bonds | Consumers Energy Company | Related Party          
Debt Instrument [Line Items]          
Unamortized discounts       (5) (5)
Unamortized issuance costs       (9) (7)
Tax-exempt revenue bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Total principal amount outstanding       110 110
Securitization bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 585 700
5.240 First Mortgage Bonds Due 2026 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       5.24%  
Total principal amount outstanding       $ 115 115
3.680% First Mortgage Bonds Due 2027 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       3.68%  
Total principal amount outstanding       $ 100 100
3.390 % First Mortgage Bonds Due 2027 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       3.39%  
Total principal amount outstanding       $ 35 35
4.650% First Mortgage Bonds Due 2028 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       4.65%  
Total principal amount outstanding       $ 425 425
3.800% First Mortgage Bonds Due 2028 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       3.80%  
Total principal amount outstanding       $ 300 300
4.900% First Mortgage Bonds Due 2029 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       4.90%  
Total principal amount outstanding       $ 500 500
5.070% First Mortgage Bonds Due 2029 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       5.07%  
Total principal amount outstanding       $ 50 50
4.600% First Mortgage Bonds Due 2029 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       4.60%  
Total principal amount outstanding       $ 600 600
4.700% First Mortgage Bonds Due 2030 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       4.70%  
Total principal amount outstanding       $ 700 700
4.500% First Mortgage Bonds Due 2031 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       4.50%  
Total principal amount outstanding       $ 500 0
5.170% First Mortgage Bonds Due 2032 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       5.17%  
Total principal amount outstanding       $ 95 95
3.600% First Mortgage Bonds Due 2032 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       3.60%  
Total principal amount outstanding       $ 350 350
3.180% First Mortgage Bonds Due 2032 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       3.18%  
Total principal amount outstanding       $ 100 100
4.625% First Mortgage Bonds Due 2033 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       4.625%  
Total principal amount outstanding       $ 700 700
5.050% First Mortgage Bonds Due 2035 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       5.05%  
Total principal amount outstanding       $ 625 0
5.800 % First Mortgage Bonds Due 2035 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       5.80%  
Total principal amount outstanding       $ 175 175
5.380% First Mortgage Bonds Due 2037 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       5.38%  
Total principal amount outstanding       $ 140 140
3.520% First Mortgage Bonds Due 2037 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       3.52%  
Total principal amount outstanding       $ 335 335
4.010% First Mortgage Bonds Due 2038 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       4.01%  
Total principal amount outstanding       $ 215 215
6.170% First Mortgage Bonds Due 2040 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       6.17%  
Total principal amount outstanding       $ 50 50
4.970% First Mortgage Bonds Due 2040 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       4.97%  
Total principal amount outstanding       $ 50 50
4.310% First Mortgage Bonds Due 2042 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       4.31%  
Total principal amount outstanding       $ 263 263
3.950% First Mortgage Bonds Due 2043 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       3.95%  
Total principal amount outstanding       $ 425 425
4.100% First Mortgage Bonds Due 2045 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       4.10%  
Total principal amount outstanding       $ 250 250
3.250% First Mortgage Bonds Due 2046 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       3.25%  
Total principal amount outstanding       $ 450 450
3.950% First Mortgage Bonds Due 2047 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       3.95%  
Total principal amount outstanding       $ 350 350
4.050% First Mortgage Bonds Due 2048 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       4.05%  
Total principal amount outstanding       $ 550 550
4.350% First Mortgage Bonds Due 2049 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       4.35%  
Total principal amount outstanding       $ 550 550
3.750% First Mortgage Bonds Due 2050 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       3.75%  
Total principal amount outstanding       $ 300 300
3.100% First Mortgage Bonds Due 2050 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       3.10%  
Total principal amount outstanding       $ 550 550
3.500% First Mortgage Bonds Due 2051 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       3.50%  
Total principal amount outstanding       $ 575 575
2.650% First Mortgage Bonds Due 2052 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       2.65%  
Total principal amount outstanding       $ 300 300
4.200% First Mortgage Bonds Due 2052 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       4.20%  
Total principal amount outstanding       $ 450 450
3.860% First Mortgage Bonds Due 2052 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       3.86%  
Total principal amount outstanding       $ 50 50
4.280% First Mortgage Bonds Due 2057 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       4.28%  
Total principal amount outstanding       $ 185 185
2.500% First Mortgage Bonds Due 2060 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       2.50%  
Total principal amount outstanding       $ 525 525
4.350% First Mortgage Bonds Due 2064 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       4.35%  
Total principal amount outstanding       $ 250 250
Variable Rate First Mortgage Bonds Due 2069 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 76 $ 76
Interest rate at period end       3.685% 4.32%
Variable Rate First Mortgage Bonds Due 2070 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 134 $ 134
Interest rate at period end       3.851% 4.483%
Variable Rate First Mortgage Bonds Due 2070 | First mortgage bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 127 $ 127
Interest rate at period end       3.897% 4.551%
0.875% Tax Exempt Revenue Bonds Due 2035 | Tax-exempt revenue bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       0.875%  
Total principal amount outstanding       $ 35 $ 35
3.350% Tax Exempt Revenue Bonds Due 2049 | Tax-exempt revenue bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Interest Rate (%)       3.35%  
Total principal amount outstanding       $ 75 75
3.528% Securitization Bonds | Securitization bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 81 $ 112
Weighted average interest rate       3.528% 3.528%
5.322% Securitization Bonds | Securitization bonds | Consumers Energy Company          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 504 $ 588
Weighted average interest rate       5.281% 5.322%
Variable Rate First Mortgage Bonds | First mortgage bonds | Consumers Energy Company | SOFR          
Debt Instrument [Line Items]          
Basis spread on variable rate       0.038%  
CMS Energy          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 6,285 $ 5,025
Current amounts       (300) (740)
Long-term debt – related parties principal amount outstanding       (2,110)  
Long-term debt       5,906 4,226
CMS Energy | Consumers Energy Company          
Debt Instrument [Line Items]          
Total principal amount outstanding       12,196 11,370
CMS Energy | Senior notes          
Debt Instrument [Line Items]          
Total principal amount outstanding       1,475 1,725
CMS Energy | Convertible debt          
Debt Instrument [Line Items]          
Total principal amount outstanding       1,800 800
CMS Energy | Junior subordinated notes          
Debt Instrument [Line Items]          
Total principal amount outstanding       3,010 2,010
CMS Energy | Term loan facility          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 0 490
CMS Energy | 3.600% Senior Notes Due 2025 | Senior notes          
Debt Instrument [Line Items]          
Interest Rate (%)       3.60%  
Total principal amount outstanding       $ 0 250
CMS Energy | 3.000% Senior Notes Due 2026 | Senior notes          
Debt Instrument [Line Items]          
Interest Rate (%)       3.00%  
Total principal amount outstanding       $ 300 300
CMS Energy | 2.950% Senior Notes Due 2027 | Senior notes          
Debt Instrument [Line Items]          
Interest Rate (%)       2.95%  
Total principal amount outstanding       $ 275 275
CMS Energy | 3.450% Senior Notes Due 2027 | Senior notes          
Debt Instrument [Line Items]          
Interest Rate (%)       3.45%  
Total principal amount outstanding       $ 350 350
CMS Energy | 4.700% Senior Notes Due 2043 | Senior notes          
Debt Instrument [Line Items]          
Interest Rate (%)       4.70%  
Total principal amount outstanding       $ 250 250
CMS Energy | 4.875% Senior Notes Due 2044 | Senior notes          
Debt Instrument [Line Items]          
Interest Rate (%)       4.875%  
Total principal amount outstanding       $ 300 300
CMS Energy | 3.375% Convertible Senior Notes Due 2028 | Convertible debt          
Debt Instrument [Line Items]          
Interest Rate (%)       3.375%  
Total principal amount outstanding       $ 800 800
CMS Energy | 3.125% Convertible Senior Notes Due 2031 | Convertible debt          
Debt Instrument [Line Items]          
Interest Rate (%)       3.125%  
Total principal amount outstanding       $ 1,000 0
Conversion price (in dollars per share)       $ 90.61  
Unamortized issuance costs       $ 12  
CMS Energy | 4.750% Junior Subordinated Notes Due 2050 | Junior subordinated notes          
Debt Instrument [Line Items]          
Interest Rate (%)       4.75%  
Total principal amount outstanding       $ 500 500
CMS Energy | 4.750% Junior Subordinated Notes Due 2050 | Junior subordinated notes | Forecast | US Treasury (UST) Interest Rate          
Debt Instrument [Line Items]          
Basis spread on variable rate     4.116%    
CMS Energy | 3.750% Junior Subordinated Notes Due 2050 | Junior subordinated notes          
Debt Instrument [Line Items]          
Interest Rate (%)       3.75%  
Total principal amount outstanding       $ 400 400
CMS Energy | 3.750% Junior Subordinated Notes Due 2050 | Junior subordinated notes | Forecast | US Treasury (UST) Interest Rate          
Debt Instrument [Line Items]          
Basis spread on variable rate   2.90%      
CMS Energy | 6.500% Junior Subordinated Notes Due 2055 | Junior subordinated notes          
Debt Instrument [Line Items]          
Interest Rate (%)       6.50%  
Total principal amount outstanding       $ 1,000 0
CMS Energy | 6.500% Junior Subordinated Notes Due 2055 | Junior subordinated notes | Forecast | US Treasury (UST) Interest Rate          
Debt Instrument [Line Items]          
Basis spread on variable rate 1.961%        
CMS Energy | 5.625% Junior Subordinated Notes Due 2078 | Junior subordinated notes          
Debt Instrument [Line Items]          
Interest Rate (%)       5.625%  
Total principal amount outstanding       $ 200 200
CMS Energy | 5.875% Junior Subordinated Notes Due 2078 | Junior subordinated notes          
Debt Instrument [Line Items]          
Interest Rate (%)       5.875%  
Total principal amount outstanding       $ 280 280
CMS Energy | 5.875% Junior Subordinated Notes Due 2079 | Junior subordinated notes          
Debt Instrument [Line Items]          
Interest Rate (%)       5.875%  
Total principal amount outstanding       $ 630 630
CMS Energy | Term Loan Facility Due December 2025 | Term loan facility          
Debt Instrument [Line Items]          
Total principal amount outstanding       0 90
Long-term debt – related parties principal amount outstanding       (110)  
CMS Energy | 5.028% Delayed Draw Unsecured Term Loan Credit Facility Due 2025 | Term loan facility          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 0 400
CMS Energy | 3.375% Convertible Senior Notes Due 2028 | Convertible debt          
Debt Instrument [Line Items]          
Conversion price (in dollars per share)       $ 73.61  
Unamortized issuance costs       $ 6 9
NorthStar Clean Energy, Including Subsidiaries          
Debt Instrument [Line Items]          
Long-term debt – related parties principal amount outstanding       $ (223)  
NorthStar Clean Energy, Including Subsidiaries | Construction financing agreement | Construction Financing Agreement          
Debt Instrument [Line Items]          
Basis spread on variable rate       2.25%  
Weighted average interest rate       6.476%  
NorthStar Clean Energy, Including Subsidiaries | Revolving Credit Facility Due 2028 | Revolving Credit Facility          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 235 150
Basis spread on variable rate       1.75%  
Interest rate adjustment       0.05%  
Weighted average interest rate       5.436%  
NorthStar Clean Energy, Including Subsidiaries | Construction Financing Agreement | Construction financing agreement          
Debt Instrument [Line Items]          
Total principal amount outstanding       $ 223 $ 0
Long-term debt – related parties principal amount outstanding       $ (223)  
v3.25.4
Financings and Capitalization (Major Long-Term Debt Issuances and Retirements) (Details)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
Debt Instrument [Line Items]  
Principal Debt Issuances (In Millions) $ 3,458
Repayments of debt 850
Consumers Energy Company  
Debt Instrument [Line Items]  
Principal Debt Issuances (In Millions) 1,125
First mortgage bonds | 4.500% First Mortgage Bonds Due January 2031 | Consumers Energy Company  
Debt Instrument [Line Items]  
Principal Debt Issuances (In Millions) $ 500
Interest Rate (%) 4.50%
First mortgage bonds | 5.050% First Mortgage Bonds Due May 2035 | Consumers Energy Company  
Debt Instrument [Line Items]  
Principal Debt Issuances (In Millions) $ 625
Interest Rate (%) 5.05%
CMS Energy  
Debt Instrument [Line Items]  
Principal Debt Issuances (In Millions) $ 2,110
Repayments of debt 850
CMS Energy | Junior subordinated notes | 6.500% Junior Subordinated Notes Due June 2055  
Debt Instrument [Line Items]  
Principal Debt Issuances (In Millions) $ 1,000
Interest Rate (%) 6.50%
CMS Energy | Term loan facility | Term Loan Facility Due December 2025  
Debt Instrument [Line Items]  
Principal Debt Issuances (In Millions) $ 110
Repayments of debt 200
CMS Energy | Term loan facility | Term Loan Facility Due September 2025  
Debt Instrument [Line Items]  
Repayments of debt 400
CMS Energy | Convertible debt | 3.125% Convertible Notes Due May 2031  
Debt Instrument [Line Items]  
Principal Debt Issuances (In Millions) $ 1,000
Interest Rate (%) 3.125%
CMS Energy | Senior Notes | 3.600% Senior Notes Due November 2025  
Debt Instrument [Line Items]  
Interest Rate (%) 3.60%
Repayments of debt $ 250
NorthStar Clean Energy, Including Subsidiaries  
Debt Instrument [Line Items]  
Principal Debt Issuances (In Millions) 223
NorthStar Clean Energy, Including Subsidiaries | Construction financing agreement | Construction Financing Agreement  
Debt Instrument [Line Items]  
Principal Debt Issuances (In Millions) $ 223
v3.25.4
Financings and Capitalization (First Mortgage Bond Purchase) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]      
Payment for purchase of first mortgage bonds $ 1,150 $ 952 $ 2,132
Interest on long-term debt 798 700 616
Consumers Energy Company      
Debt Instrument [Line Items]      
Payment for purchase of first mortgage bonds 115 389 1,654
Interest on long-term debt 521 488 415
First mortgage bonds      
Debt Instrument [Line Items]      
Gain on extinguishment of debt 72 110 131
First mortgage bonds | Consumers Energy Company | Repurchased Debt      
Debt Instrument [Line Items]      
Interest on long-term debt 28 19 5
First mortgage bonds | Related Party      
Debt Instrument [Line Items]      
Principal (In Millions) 184 404 431
Payment for purchase of first mortgage bonds $ 109 $ 289 $ 293
v3.25.4
Financings and Capitalization (Schedule of Debt Maturities) (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Debt Instrument [Line Items]  
2026 $ 950
2027 888
2028 1,878
2029 1,256
2030 812
CMS Energy  
Debt Instrument [Line Items]  
2026 300
2027 625
2028 800
2029 0
2030 0
NorthStar Clean Energy, Including Subsidiaries  
Debt Instrument [Line Items]  
2026 77
2027 0
2028 235
2029 0
2030 0
Consumers Energy Company  
Debt Instrument [Line Items]  
2026 573
2027 263
2028 843
2029 1,256
2030 $ 812
v3.25.4
Financings and Capitalization (Schedule of Revolving Credit Facilities) (Details)
12 Months Ended
Dec. 31, 2025
USD ($)
Consumers Energy Company | Secured Revolving Credit Facility, Expiring November 2030  
Line of Credit Facility [Line Items]  
Amount of Facility $ 1,100,000,000
Amount Borrowed 0
Letters of Credit Outstanding 6,000,000
Amount Available 1,094,000,000
Consumers Energy Company | Secured Revolving Credit Facility, Expiring November 2028  
Line of Credit Facility [Line Items]  
Amount of Facility 300,000,000
Amount Borrowed 0
Letters of Credit Outstanding 0
Amount Available 300,000,000
Consumers Energy Company | Secured Letter Of Credit Facility, Expiring May 2027  
Line of Credit Facility [Line Items]  
Amount of Facility 100,000,000
Amount Borrowed 0
Letters of Credit Outstanding 100,000,000
Amount Available 0
Consumers Energy Company | Unsecured Letter Of Credit Facility, Expiring March 2028  
Line of Credit Facility [Line Items]  
Amount of Facility 50,000,000
Amount Borrowed 0
Letters of Credit Outstanding 43,000,000
Amount Available 7,000,000
Consumers Energy Company | Unsecured Letter Of Credit Facility  
Line of Credit Facility [Line Items]  
Amount of Facility 100,000,000
Amount Borrowed 0
Letters of Credit Outstanding 97,000,000
Amount Available 3,000,000
Consumers Energy Company | Unsecured Letter Of Credit Facility  
Line of Credit Facility [Line Items]  
Amount of Facility 100,000,000
Amount Borrowed 0
Letters of Credit Outstanding 100,000,000
Amount Available 0
Consumers Energy Company | Letter of Credit  
Line of Credit Facility [Line Items]  
Borrowings 0
CMS Energy | Unsecured Revolving Credit Facility, Expiring November 2030  
Line of Credit Facility [Line Items]  
Amount of Facility 750,000,000
Amount Borrowed 0
Letters of Credit Outstanding 35,000,000
Amount Available 715,000,000
Borrowings 0
CMS Energy | Unsecured Letter Of Credit Facility, Expiring September 2026  
Line of Credit Facility [Line Items]  
Amount of Facility 50,000,000
Amount Borrowed 0
Letters of Credit Outstanding 50,000,000
Amount Available 0
NorthStar Clean Energy, Including Subsidiaries | Secured Revolving Credit Facility, Expiring May 2028  
Line of Credit Facility [Line Items]  
Amount of Facility 250,000,000
Amount Borrowed 235,000,000
Letters of Credit Outstanding 10,000,000
Amount Available 5,000,000
Equity interests 514,000,000
NorthStar Clean Energy, Including Subsidiaries | Secured Letter Of Credit Facility, Expiring September 2028  
Line of Credit Facility [Line Items]  
Amount of Facility 37,000,000
Amount Borrowed 0
Letters of Credit Outstanding 37,000,000
Amount Available 0
NorthStar Clean Energy, Including Subsidiaries | Secured Letter Of Credit Facility  
Line of Credit Facility [Line Items]  
Amount of Facility 19,000,000
Amount Borrowed 0
Letters of Credit Outstanding 12,000,000
Amount Available $ 7,000,000
v3.25.4
Financings and Capitalization (Narrative) (Details)
$ / shares in Units, $ in Millions
1 Months Ended 12 Months Ended
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2025
USD ($)
$ / shares
shares
Dec. 31, 2025
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
Financing And Capitalization [Line Items]        
Notes payable $ 65 $ 0 $ 0  
Limitation on payment of stock dividends   $ 8,900 8,900  
Dividends paid     $ 898  
Common stock authorized (in shares) | shares 350,000,000.0 350,000,000.0 350,000,000.0  
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  
Preferred stock, par value (in dollars per share) | $ / shares   $ 0.01 $ 0.01  
Stock offering program maximum value       $ 1,000
Shares contracted under forward sale agreements (in shares) | shares 400,000 6,700,000 6,700,000  
Initial forward price (in dollars per share) | $ / shares $ 69.43   $ 71.08  
Series C Preferred Stock Depositary Shares        
Financing And Capitalization [Line Items]        
Preferred stock authorized (in shares) | shares 9,200,000 9,200,000 9,200,000  
Preferred stock, par value (in dollars per share) | $ / shares $ 25 $ 25 $ 25  
Trading Symbol     CMS PRC  
Depositary share conversion ratio   0.001 0.001  
Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series        
Financing And Capitalization [Line Items]        
Trading Symbol     CMS-PB  
Settlement Of Forward Contracts        
Financing And Capitalization [Line Items]        
Shares subject to forward equity sale agreement (in shares) | shares     7,000,000  
Settlement of forward contracts through issuance of stock (in dollars per share) | $ / shares   $ 71.16 $ 71.16  
Issuance of common stock     $ 497  
Aggregate sales price   $ 8 8  
Consumers Energy Company        
Financing And Capitalization [Line Items]        
Unrestricted retained earnings   $ 2,500 $ 2,500  
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  
Preferred stock, par value (in dollars per share) | $ / shares $ 4.50 $ 4.50 $ 4.50  
Consumers Energy Company | Related Party        
Financing And Capitalization [Line Items]        
Notes payable $ 0 $ 340 $ 340  
Consumers Energy Company | Credit Agreement | Related Party        
Financing And Capitalization [Line Items]        
Maximum borrowing capacity   $ 500 500  
Basis spread on variable rate   (0.10%)    
Notes payable   $ 340 $ 340  
Interest rate at period end   3.859% 3.859%  
NorthStar Clean Energy        
Financing And Capitalization [Line Items]        
Supplier financing program, payment period   135 days 135 days  
Supplier financing program, termination period   30 days 30 days  
NorthStar Clean Energy | NorthStar Clean Energy's Supplier Financing Program        
Financing And Capitalization [Line Items]        
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration]   Accounts payable Accounts payable  
Commercial Paper | Consumers Energy Company        
Financing And Capitalization [Line Items]        
Short-term debt authorized borrowings     $ 500  
Short-term borrowings outstanding   $ 0 $ 0  
v3.25.4
Financings and Capitalization (Schedule of Supplier Finance Program) (Details) - NorthStar Clean Energy's Supplier Financing Program - NorthStar Clean Energy - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Supplier Finance Program, Obligation [Roll Forward]    
Balance of payables under suppler financing program at beginning of period $ 22 $ 0
Payables confirmed 158 22
Payments and other adjustments (102) 0
Balance of payables under suppler financing program at end of period $ 78 $ 22
v3.25.4
Financings and Capitalization (Schedule of Preferred Stock) (Details) - $ / shares
Dec. 31, 2025
Dec. 31, 2024
Debt and Equity Securities, FV-NI [Line Items]    
Preferred stock, par value (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, par value (in dollars per share) $ 4.50 $ 4.50
Preferred stock authorized (in shares) 7,500,000 7,500,000
Preferred stock outstanding (in shares) 400,000 400,000
Series C Preferred Stock Depositary Shares    
Debt and Equity Securities, FV-NI [Line Items]    
Preferred stock, par value (in dollars per share) $ 25 $ 25
Optional redemption price (in dollars per share) $ 25 $ 25
Preferred stock authorized (in shares) 9,200,000 9,200,000
Preferred stock outstanding (in shares) 9,200,000 9,200,000
Preferred Stock $4.50 Series | Consumers Energy Company    
Debt and Equity Securities, FV-NI [Line Items]    
Preferred stock, par value (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
Preferred stock outstanding (in shares) 373,148 373,148
v3.25.4
Fair Value Measurements (Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Assets    
Restricted cash equivalents $ 106 $ 75
Consumers Energy Company    
Assets    
Restricted cash equivalents 86 75
Fair Value, Inputs, Level 1, 2 and 3    
Assets    
Total assets 298 138
Liabilities    
Total liabilities 39 34
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company    
Assets    
Total assets 115 102
Liabilities    
Total liabilities 27 25
Fair Value, Inputs, Level 1    
Assets    
Cash equivalents 154 27
Restricted cash equivalents 106 75
Nonqualified deferred compensation plan assets 36 34
Liabilities    
Nonqualified deferred compensation plan liabilities 36 34
Fair Value, Inputs, Level 1 | Consumers Energy Company    
Assets    
Cash equivalents 0 0
Restricted cash equivalents 86 75
Nonqualified deferred compensation plan assets 27 25
Liabilities    
Nonqualified deferred compensation plan liabilities 27 25
Fair Value, Inputs, Level 2 And Level 3    
Assets    
Derivative instruments 2 2
Liabilities    
Derivative instruments 3 0
Fair Value, Inputs, Level 2 And Level 3 | Consumers Energy Company    
Assets    
Derivative instruments 2 2
Liabilities    
Derivative instruments $ 0 $ 0
v3.25.4
Fair Value Measurements - (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other expense $ 27 $ 32 $ 13
Not Designated as Hedging Instrument, Economic Hedge      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other expense 3    
Derivative instruments 3    
Not Designated as Hedging Instrument, Economic Hedge | Interest Rate Swap      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Notional amount $ 109    
v3.25.4
Financial Instruments (Schedule of Carrying Amounts and Fair Values of Financial Instruments) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Liabilities    
Current accounts receivable and notes receivable $ 3 $ 4
Current portion of long-term debt 950 1,192
Current portion of long-term payables 2 2
Carrying Amount    
Assets    
Long-term receivables 7 9
Liabilities    
Long-term debt 18,757 16,386
Long-term payables 7 9
Fair Value    
Assets    
Long-term receivables 6 8
Liabilities    
Long-term debt 17,645 14,876
Long-term payables 7 9
Consumers Energy Company    
Liabilities    
Current accounts receivable and notes receivable 3 4
Current portion of long-term debt 573 452
Consumers Energy Company | Related Party    
Liabilities    
Notes receivable 7 7
Consumers Energy Company | Carrying Amount    
Assets    
Long-term receivables 7 9
Notes receivable related party 90 94
Liabilities    
Long-term payables 2 4
Consumers Energy Company | Carrying Amount | Nonrelated Party    
Liabilities    
Long-term debt 12,097 11,270
Consumers Energy Company | Carrying Amount | Related Party    
Liabilities    
Long-term debt 1,005 823
Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 6 8
Notes receivable related party 90 94
Liabilities    
Long-term payables 2 4
Consumers Energy Company | Fair Value | Nonrelated Party    
Liabilities    
Long-term debt 11,031 9,940
Consumers Energy Company | Fair Value | Related Party    
Liabilities    
Long-term debt 657 549
Level 1 | Fair Value    
Assets    
Long-term receivables 0 0
Liabilities    
Long-term debt 2,042 1,018
Long-term payables 0 0
Level 1 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 0 0
Notes receivable related party 0 0
Liabilities    
Long-term payables 0 0
Level 1 | Consumers Energy Company | Fair Value | Nonrelated Party    
Liabilities    
Long-term debt 0 0
Level 1 | Consumers Energy Company | Fair Value | Related Party    
Liabilities    
Long-term debt 0 0
Level 2 | Fair Value    
Assets    
Long-term receivables 0 0
Liabilities    
Long-term debt 13,663 11,952
Long-term payables 0 0
Level 2 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 0 0
Notes receivable related party 0 0
Liabilities    
Long-term payables 0 0
Level 2 | Consumers Energy Company | Fair Value | Nonrelated Party    
Liabilities    
Long-term debt 9,091 8,034
Level 2 | Consumers Energy Company | Fair Value | Related Party    
Liabilities    
Long-term debt 657 549
Level 3 | Fair Value    
Assets    
Long-term receivables 6 8
Liabilities    
Long-term debt 1,940 1,906
Long-term payables 7 9
Level 3 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 6 8
Notes receivable related party 90 94
Liabilities    
Long-term payables 2 4
Level 3 | Consumers Energy Company | Fair Value | Nonrelated Party    
Liabilities    
Long-term debt 1,940 1,906
Level 3 | Consumers Energy Company | Fair Value | Related Party    
Liabilities    
Long-term debt $ 0 $ 0
v3.25.4
Financial Instruments (Narrative) (Details) - CMS Energy Note Payable
Dec. 31, 2025
Financial Instruments [Line Items]  
Interest Rate (%) 4.10%
Consumers Energy Company  
Financial Instruments [Line Items]  
Interest Rate (%) 4.10%
v3.25.4
Plant, Property, and Equipment (Schedule of Property, Plant and Equipment) (Details)
$ in Millions
1 Months Ended 12 Months Ended
Sep. 30, 2025
facility
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Public Utility, Property, Plant and Equipment [Line Items]        
Plant, property, and equipment, gross   $ 37,763 $ 34,932  
Assets under finance leases   193 176 $ 136
Construction work in progress   3,052 2,098  
Accumulated depreciation and amortization   (10,135) (9,569)  
Total plant, property, and equipment   30,680 27,461  
Facilities agreed to sell | facility 13      
Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Plant, property, and equipment, gross   36,120 33,434  
Assets under finance leases   138 131 $ 112
Construction work in progress   2,354 1,766  
Accumulated depreciation and amortization   (9,842) (9,310)  
Total plant, property, and equipment   28,632 25,890  
Plant additions   3,100 2,100  
Plant retirements   387 390  
Impairment of assets   20    
Consumers Energy Company | Renewable Natural Gas Development Projects        
Public Utility, Property, Plant and Equipment [Line Items]        
Impairment of assets   $ 15    
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   $ 7,171 6,576  
Generation | Consumers Energy Company | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, generation   15 years    
Generation | Consumers Energy Company | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, generation   125 years    
Distribution | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Distribution   $ 13,360 12,135  
Distribution | Consumers Energy Company | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, distribution   15 years    
Distribution | Consumers Energy Company | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, distribution   75 years    
Other | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Other   $ 1,209 1,307  
Other | Consumers Energy Company | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, other   5 years    
Other | Consumers Energy Company | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, other   55 years    
Assets under finance leases | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Assets under finance leases   $ 131 119  
Distribution | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Distribution   $ 8,553 7,942  
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   $ 3,236 3,081  
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   $ 1,535 1,405  
Underground storage facilities | Consumers Energy Company | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, other   29 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   $ 886 828  
Other | Consumers Energy Company | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, other   5 years    
Other | Consumers Energy Company | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, other   55 years    
Finance leases | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Assets under finance leases   $ 8 12  
Other non-utility property | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Other non-utility property   $ 31 29  
Other non-utility property | Consumers Energy Company | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, other   3 years    
Other non-utility property | Consumers Energy Company | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, other   51 years    
Natural Gas | Underground storage facilities | Consumers Energy Company        
Public Utility, Property, Plant and Equipment [Line Items]        
Other   $ 24 26  
NorthStar Clean Energy        
Public Utility, Property, Plant and Equipment [Line Items]        
Assets under finance leases   55 45  
Independent power production        
Public Utility, Property, Plant and Equipment [Line Items]        
Plant, property, and equipment, gross   $ 1,585 1,452  
Independent power production | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, Enterprises   3 years    
Independent power production | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, Enterprises   40 years    
Other        
Public Utility, Property, Plant and Equipment [Line Items]        
Plant, property, and equipment, gross   $ 3 $ 1  
Other | Minimum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, Enterprises   3 years    
Other | Maximum        
Public Utility, Property, Plant and Equipment [Line Items]        
Estimated depreciable life in years, Enterprises   5 years    
v3.25.4
Plant, Property, and Equipment (Summary of Finite-Lived Intangible Assets by Major Class) (Details) - Consumers Energy Company - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost $ 987 $ 989
Accumulated Amortization 602 583
Plant additions 3,100 2,100
Plant retirements 387 390
Software development    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 649 679
Accumulated Amortization 492 481
Rights of way    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 274 253
Accumulated Amortization 72 68
Franchises and consents    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 16 16
Accumulated Amortization 12 11
Leasehold improvements    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 15 13
Accumulated Amortization 9 7
Other intangible assets    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 33 28
Accumulated Amortization 17 16
Intangible plant    
Public Utility, Property, Plant and Equipment [Line Items]    
Plant additions 62 90
Plant retirements $ 64 $ 153
Minimum | Software development    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 3 years  
Minimum | Rights of way    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 50 years  
Minimum | Franchises and consents    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 5 years  
Maximum | Software development    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 15 years  
Maximum | Rights of way    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 85 years  
Maximum | Franchises and consents    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 50 years  
v3.25.4
Plant, Property, and Equipment (Summary of Average Capitalization Rates) (Details) - Consumers Energy Company
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Electric Utility      
Property, Plant and Equipment [Line Items]      
AFUDC capitalization rate 6.90% 6.90% 6.50%
Gas Utility      
Property, Plant and Equipment [Line Items]      
AFUDC capitalization rate 5.90% 5.80% 5.80%
v3.25.4
Plant, Property, and Equipment (Schedule of Finance Leases and Other Financing Obligations) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Finance Leases and Other Financing Obligations, Rollforward [Roll Forward]    
Balance at beginning of period $ 176 $ 136
Additions 53 55
Net retirements and other adjustments (36) (15)
Balance at end of period 193 176
Consumers Energy Company    
Finance Leases and Other Financing Obligations, Rollforward [Roll Forward]    
Balance at beginning of period 131 112
Additions 22 34
Net retirements and other adjustments (15) (15)
Balance at end of period $ 138 $ 131
v3.25.4
Plant, Property, and Equipment (Narrative) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Finance lease accumulated amortization $ 53 $ 57
Consumers Energy Company    
Property, Plant and Equipment [Line Items]    
Finance lease accumulated amortization $ 48 $ 55
v3.25.4
Plant, Property, and Equipment (Summary of Accumulated Depreciation and Amortization) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Public Utility, Property, Plant and Equipment [Line Items]    
Accumulated depreciation and amortization $ 10,135 $ 9,569
Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Consumers accumulated depreciation and amortization 9,842 9,310
Non-utility plant assets    
Public Utility, Property, Plant and Equipment [Line Items]    
Accumulated depreciation and amortization 297 262
Non-utility plant assets | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Consumers accumulated depreciation and amortization 4 3
Utility plant assets    
Public Utility, Property, Plant and Equipment [Line Items]    
Accumulated depreciation and amortization 9,838 9,307
Utility plant assets | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Consumers accumulated depreciation and amortization $ 9,838 $ 9,307
v3.25.4
Plant, Property, and Equipment (Summary of Composite Depreciation Rates for Properties) (Details) - Consumers Energy Company
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Electric utility property      
Public Utility, Property, Plant and Equipment [Line Items]      
Composite depreciation rate 3.60% 3.60% 3.80%
Gas utility property      
Public Utility, Property, Plant and Equipment [Line Items]      
Composite depreciation rate 2.50% 2.50% 2.80%
Other property      
Public Utility, Property, Plant and Equipment [Line Items]      
Composite depreciation rate 7.00% 7.10% 7.80%
v3.25.4
Plant, Property, and Equipment (Summary of Depreciation and Amortization Expense) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Depreciation expense – plant, property, and equipment $ 1,099 $ 1,041 $ 1,050
Total depreciation and amortization expense 1,306 1,240 1,180
Other regulatory assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 8 2 0
Securitized regulatory assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 117 111 33
Software      
Property, Plant and Equipment [Line Items]      
Amortization expense 75 81 92
Other intangible assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 7 5 5
Consumers Energy Company      
Property, Plant and Equipment [Line Items]      
Depreciation expense – plant, property, and equipment 1,047 992 1,007
Total depreciation and amortization expense 1,254 1,191 1,137
Consumers Energy Company | Other regulatory assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 8 2 0
Consumers Energy Company | Securitized regulatory assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 117 111 33
Consumers Energy Company | Software      
Property, Plant and Equipment [Line Items]      
Amortization expense 75 81 92
Consumers Energy Company | Other intangible assets      
Property, Plant and Equipment [Line Items]      
Amortization expense $ 7 $ 5 $ 5
v3.25.4
Plant, Property, and Equipment (Schedule of Estimated Amortization Expense for Intangibles) (Details) - Consumers Energy Company
$ in Millions
Dec. 31, 2025
USD ($)
Public Utility, Property, Plant and Equipment [Line Items]  
2026 $ 77
2027 66
2028 55
2029 50
2030 $ 49
v3.25.4
Plant, Property, and Equipment (Summary of Jointly Owned Regulated Utility Facilities) (Details) - Consumers Energy Company
$ in Millions
Dec. 31, 2025
USD ($)
J.H. Campbell Unit 3  
Public Utility, Property, Plant and Equipment [Line Items]  
Ownership share 93.30%
Utility plant in service $ 1,726
Accumulated provision for depreciation (916)
Plant under construction 0
Net investment $ 810
Ludington  
Public Utility, Property, Plant and Equipment [Line Items]  
Ownership share 51.00%
Utility plant in service $ 620
Accumulated provision for depreciation (253)
Plant under construction 37
Net investment 404
Other  
Public Utility, Property, Plant and Equipment [Line Items]  
Utility plant in service 481
Accumulated provision for depreciation (97)
Plant under construction 17
Net investment $ 401
v3.25.4
Leases (Summary of Lease Right-of-Use Assets and Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Lessor, Lease, Description [Line Items]    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other Other
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other non‑current liabilities Other non‑current liabilities
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Plant, property, and equipment, net Plant, property, and equipment, net
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Current portion of long-term debt and finance leases Current portion of long-term debt and finance leases
Operating leases    
Right-of-use assets $ 22 $ 24
Lease liabilities    
Current lease liabilities 3 3
Noncurrent lease liabilities 19 21
Finance leases    
Right-of-use assets 140 119
Lease liabilities    
Current lease liabilities 6 4
Non-current lease liabilities $ 135 $ 112
Weighted-average remaining lease term (in years)    
Operating leases 20 years 20 years
Finance leases 24 years 26 years
Weighted-average discount rate    
Operating leases 5.30% 5.30%
Finance leases 5.90% 5.80%
Finance lease liability $ 141  
Consumers Energy Company    
Operating leases    
Right-of-use assets 18 $ 20
Lease liabilities    
Current lease liabilities 3 3
Noncurrent lease liabilities 15 17
Finance leases    
Right-of-use assets 90 76
Lease liabilities    
Current lease liabilities 6 4
Non-current lease liabilities $ 81 $ 69
Weighted-average remaining lease term (in years)    
Operating leases 20 years 19 years
Finance leases 19 years 22 years
Weighted-average discount rate    
Operating leases 5.40% 5.40%
Finance leases 4.90% 4.80%
Finance lease liability $ 87  
Related Party Lease    
Lease liabilities    
Current lease liabilities 1 $ 1
Weighted-average discount rate    
Finance lease liability $ 22 $ 22
v3.25.4
Leases (Schedule of Lease Cost) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Lessee, Lease, Description [Line Items]    
Operating lease costs $ 4 $ 6
Finance lease costs    
Amortization of right-of-use assets 8 6
Interest on lease liabilities 18 16
Variable lease costs 115 107
Short-term lease costs 25 13
Total lease costs 170 148
Consumers Energy Company    
Lessee, Lease, Description [Line Items]    
Operating lease costs 4 5
Finance lease costs    
Amortization of right-of-use assets 6 5
Interest on lease liabilities 14 13
Variable lease costs 115 107
Short-term lease costs 24 12
Total lease costs $ 163 $ 142
v3.25.4
Leases (Schedule of Lessee Cash Flows) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Cash paid for amounts included in the measurement of lease liabilities    
Cash used in operating activities for operating leases $ 4 $ 6
Cash used in operating activities for finance leases 17 15
Cash used in financing activities for finance leases 5 6
Lease liabilities arising from obtaining right-of-use assets    
Operating leases 1 3
Finance leases 22 55
Consumers Energy Company    
Cash paid for amounts included in the measurement of lease liabilities    
Cash used in operating activities for operating leases 4 5
Cash used in operating activities for finance leases 14 13
Cash used in financing activities for finance leases 6 5
Lease liabilities arising from obtaining right-of-use assets    
Operating leases 1 1
Finance leases $ 22 $ 34
v3.25.4
Leases (Summary of Minimum Annual Rental Commitments) (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Operating Leases  
2026 $ 4
2027 2
2028 2
2029 2
2030 1
2028 and thereafter 27
Total minimum lease payments 38
Less discount 16
Present value of minimum lease payments 22
Finance Leases  
2026 23
2027 23
2028 22
2029 23
2030 23
2028 and thereafter 202
Total minimum lease payments 316
Less discount 175
Present value of minimum lease payments 141
Consumers Energy Company  
Operating Leases  
2026 4
2027 2
2028 1
2029 1
2030 1
2028 and thereafter 22
Total minimum lease payments 31
Less discount 13
Present value of minimum lease payments 18
Finance Leases  
2026 20
2027 20
2028 19
2029 19
2030 19
2028 and thereafter 74
Total minimum lease payments 171
Less discount 84
Present value of minimum lease payments 87
Pipelines and PPAs  
Finance Leases  
2026 17
2027 17
2028 17
2029 17
2030 17
2028 and thereafter 2
Total minimum lease payments 87
Less discount 42
Present value of minimum lease payments 45
Pipelines and PPAs | Consumers Energy Company  
Finance Leases  
2026 17
2027 17
2028 17
2029 17
2030 17
2028 and thereafter 2
Total minimum lease payments 87
Less discount 42
Present value of minimum lease payments 45
Land and Other  
Finance Leases  
2026 6
2027 6
2028 5
2029 6
2030 6
2028 and thereafter 200
Total minimum lease payments 229
Less discount 133
Present value of minimum lease payments 96
Land and Other | Consumers Energy Company  
Finance Leases  
2026 3
2027 3
2028 2
2029 2
2030 2
2028 and thereafter 72
Total minimum lease payments 84
Less discount 42
Present value of minimum lease payments $ 42
v3.25.4
Leases (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Lessor, Lease, Description [Line Items]    
Payment to be received $ 18  
Consumers Energy Company    
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]    
Minimum rental payments to be received in year one 1  
Minimum annual rental payments to be received in year two 1  
Minimum annual rental payments to be received in year three 1  
Minimum annual rental payments to be received in year four 1  
Minimum rental payments to be received in year five 1  
Minimum rental payments to be received thereafter 6  
Lease receivables 5  
Unearned income 5  
Power Sales Agreement    
Lessor, Lease, Description [Line Items]    
Leasing income 149 $ 105
Variable lease income $ 105 $ 61
v3.25.4
Asset Retirement Obligations (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period $ 728 $ 771
Incurred 31 1
Settled (73) (69)
Accretion 33 35
Cash Flow Revisions 73 (10)
ARO Liability, end of period 792 728
Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 694 739
Incurred 27 1
Settled (73) (69)
Accretion 32 33
Cash Flow Revisions 73 (10)
ARO Liability, end of period 753 694
Renewable generation assets    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 34 32
Incurred 4 0
Settled 0 0
Accretion 1 2
Cash Flow Revisions 0 0
ARO Liability, end of period 39 34
Renewable generation assets | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 105 102
Incurred 17 0
Settled 0 0
Accretion 3 3
Cash Flow Revisions 0 0
ARO Liability, end of period 125 105
Coal ash disposal areas | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 230 268
Incurred 0 1
Settled (37) (51)
Accretion 10 12
Cash Flow Revisions 60 0
ARO Liability, end of period 263 230
Gas distribution cut, purge, and cap | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 295 290
Incurred 10 0
Settled (13) (9)
Accretion 15 15
Cash Flow Revisions 0 (1)
ARO Liability, end of period 307 295
Asbestos abatement | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 37 51
Incurred 0 0
Settled (2) (7)
Accretion 2 2
Cash Flow Revisions 0 (9)
ARO Liability, end of period 37 37
Generating plant water intake line | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 0  
Incurred 0  
Settled 0  
Accretion 1  
Cash Flow Revisions 18  
ARO Liability, end of period 19 0
Gas wells plug and abandon | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 27 28
Incurred 0 0
Settled (21) (2)
Accretion 1 1
Cash Flow Revisions (5) 0
ARO Liability, end of period $ 2 $ 27
v3.25.4
Retirement Benefits (Narrative) (Details)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
yr
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Defined Benefit Plan Disclosure [Line Items]      
Ultimate health care cost trend rate 4.75%    
Year health care cost trend rate reaches ultimate trend rate 2034    
Union employees percentage 44.00%    
Under Age 65      
Defined Benefit Plan Disclosure [Line Items]      
Health care cost trend rate assumed next fiscal year 8.00% 8.50%  
Over Age 65      
Defined Benefit Plan Disclosure [Line Items]      
Health care cost trend rate assumed next fiscal year 9.75% 10.25%  
OPEB Plan      
Defined Benefit Plan Disclosure [Line Items]      
Retirement age requirement | yr 55    
Retirement years of service 10 years    
Retirement years of service with disability 15 years    
Estimated time of amortization of gains losses 9 years 9 years 9 years
Estimated time of prior service cost 7 years    
OPEB Plan | Volatility Mechanism      
Defined Benefit Plan Disclosure [Line Items]      
Deferred credits (costs) $ 6 $ 11  
OPEB Plan | Volatility Mechanism      
Defined Benefit Plan Disclosure [Line Items]      
Deferred credits (costs)     $ 23
DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Amortized net gains and losses in excess of PBO or MRV 10.00%    
Period for gains or losses to be included in market related value 5 years    
Accumulated benefit obligation $ 1,900 1,900  
DB Pension Plans | Fixed-income securities      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 40.00%    
DB Pension Plans | Equity securities      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 38.00%    
DB Pension Plans | Real asset investments      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 11.00%    
DB Pension Plans | Return-seeking fixed income      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 7.00%    
DB Pension Plans | Liquid alternative investments      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 4.00%    
DB Pension Plans | Volatility Mechanism      
Defined Benefit Plan Disclosure [Line Items]      
Deferred credits (costs)   $ 15 11
DB Pension Plans | Volatility Mechanism      
Defined Benefit Plan Disclosure [Line Items]      
Deferred credits (costs) $ (3)    
Postretirement Health Trusts | Fixed-income securities      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 40.00%    
Postretirement Health Trusts | Equity securities      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 38.00%    
Postretirement Health Trusts | Real asset investments      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 11.00%    
Postretirement Health Trusts | Return-seeking fixed income      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 7.00%    
Postretirement Health Trusts | Liquid alternative investments      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 4.00%    
Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Ultimate health care cost trend rate 4.75%    
Year health care cost trend rate reaches ultimate trend rate 2034    
Union employees percentage 45.00%    
Consumers Energy Company | Under Age 65      
Defined Benefit Plan Disclosure [Line Items]      
Health care cost trend rate assumed next fiscal year 8.00% 8.50%  
Consumers Energy Company | Over Age 65      
Defined Benefit Plan Disclosure [Line Items]      
Health care cost trend rate assumed next fiscal year 9.75% 10.25%  
Consumers Energy Company | OPEB Plan      
Defined Benefit Plan Disclosure [Line Items]      
Retirement age requirement | yr 55    
Retirement years of service 10 years    
Retirement years of service with disability 15 years    
Estimated time of prior service cost 7 years    
Defined Company Contribution Plan      
Defined Benefit Plan Disclosure [Line Items]      
Plan cost, defined contribution plan $ 57 $ 53 51
Defined Company Contribution Plan | Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Plan cost, defined contribution plan 55 52 50
DC SERP      
Defined Benefit Plan Disclosure [Line Items]      
Plan cost, defined contribution plan $ 1 1 1
Minimum years of participation before vesting 5 years    
Trust assets $ 18 17  
401 (K) Plan      
Defined Benefit Plan Disclosure [Line Items]      
Plan cost, defined contribution plan 46 41 41
401 (K) Plan | Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Plan cost, defined contribution plan $ 44 $ 39 $ 40
Pension Plan A | DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Estimated time of amortization of gains losses 7 years 8 years 8 years
Pension Plan B | DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Estimated time of amortization of gains (losses) life expectancy 17 years 17 years 17 years
Minimum | Defined Company Contribution Plan      
Defined Benefit Plan Disclosure [Line Items]      
Contribution range 5.00%    
Minimum | DC SERP      
Defined Benefit Plan Disclosure [Line Items]      
Plan contribution percentage 5.00%    
Minimum | 401 (K) Plan      
Defined Benefit Plan Disclosure [Line Items]      
Contribution range 4.00%    
Maximum | Defined Company Contribution Plan      
Defined Benefit Plan Disclosure [Line Items]      
Contribution range 10.00%    
Maximum | DC SERP      
Defined Benefit Plan Disclosure [Line Items]      
Plan contribution percentage 15.00%    
Maximum | 401 (K) Plan      
Defined Benefit Plan Disclosure [Line Items]      
Contribution range 6.00%    
v3.25.4
Retirement Benefits (Schedule of SERP Trust Assets, ABO and Contributions) (Details) - DB SERP - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Defined Benefit Plan Disclosure [Line Items]    
ABO $ 104 $ 105
Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
ABO 76 76
Trust assets    
Defined Benefit Plan Disclosure [Line Items]    
Trust assets 122 127
Trust assets | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Trust assets $ 92 $ 95
v3.25.4
Retirement Benefits (Schedule of Assumptions Used) (Details)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
DB Pension Plans      
Weighted average for net periodic benefit cost      
Expected long-term rate of return on plan assets 7.30% 7.50% 7.20%
Actual rate of return on plan assets 12.70% 3.60% 12.60%
DB SERP      
Weighted average for benefit obligations      
Discount rate 5.22% 5.56% 4.94%
Weighted average for net periodic benefit cost      
Service cost discount rate 0.00% 0.00% 5.18%
Interest cost discount rate 5.29% 4.87% 5.06%
Rate of compensation increase 0.00% 0.00% 5.50%
OPEB Plan      
Weighted average for benefit obligations      
Discount rate 5.50% 5.69% 5.02%
Weighted average for net periodic benefit cost      
Service cost discount rate 5.85% 5.12% 5.31%
Interest cost discount rate 5.39% 4.91% 5.10%
Expected long-term rate of return on plan assets 7.15% 7.50% 7.20%
Pension Plan A | DB Pension Plans      
Weighted average for benefit obligations      
Discount rate 5.58% 5.73% 5.05%
Rate of compensation increase 3.70% 3.70% 3.60%
Weighted average for net periodic benefit cost      
Service cost discount rate 5.77% 5.08% 5.27%
Interest cost discount rate 5.43% 4.93% 5.12%
Rate of compensation increase 3.70% 3.60% 3.60%
Pension Plan B | DB Pension Plans      
Weighted average for benefit obligations      
Discount rate 5.28% 5.59% 4.95%
Weighted average for net periodic benefit cost      
Interest cost discount rate 5.30% 4.87% 5.06%
v3.25.4
Retirement Benefits (Schedule of Net Benefit Costs) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
DB Pension Plans and DB SERP      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost $ 25 $ 28 $ 29
Interest cost 114 109 112
Expected return on plan assets (229) (234) (220)
Amortization of:      
Net loss 11 12 12
Prior service cost (credit) 4 4 4
Settlement loss 11 11 11
Net periodic credit (64) (70) (52)
DB Pension Plans and DB SERP | Consumers Energy Company      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost 24 27 28
Interest cost 106 102 105
Expected return on plan assets (215) (221) (208)
Amortization of:      
Net loss 10 11 11
Prior service cost (credit) 4 4 4
Settlement loss 11 11 11
Net periodic credit (60) (66) (49)
OPEB Plan      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost 8 11 12
Interest cost 43 43 44
Expected return on plan assets (111) (115) (103)
Amortization of:      
Net loss 3 4 12
Prior service cost (credit) (34) (31) (41)
Settlement loss 0 0 0
Net periodic credit (91) (88) (76)
OPEB Plan | Consumers Energy Company      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost 8 11 11
Interest cost 42 41 42
Expected return on plan assets (104) (107) (95)
Amortization of:      
Net loss 3 4 12
Prior service cost (credit) (33) (30) (40)
Settlement loss 0 0 0
Net periodic credit $ (84) $ (81) $ (70)
v3.25.4
Retirement Benefits (Schedule of Funded Status of Retirement Benefit Plans) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
DB Pension Plans      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period $ 2,094 $ 2,195  
Service cost 25 28  
Interest cost 109 104  
Plan amendments 0 0  
Actuarial loss (gain) 53 (91)  
Benefits paid (158) (142)  
Benefit obligation at end of period 2,123 2,094 $ 2,195
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 2,964 3,004  
Actual return on plan assets 371 102  
Company contribution 0 0  
Actual benefits paid (158) (142)  
Plan assets at fair value at end of period 3,177 2,964 3,004
Funded status 1,054 870  
DB Pension Plans | Consumers Energy Company      
Defined Benefit Plan, Roll Forwards [Abstract]      
Funded status 1,000 836  
DB SERP      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 105 114  
Service cost 0 0  
Interest cost 5 5  
Plan amendments 0 0  
Actuarial loss (gain) 4 (4)  
Benefits paid (10) (10)  
Benefit obligation at end of period 104 105 114
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 (104) (105)  
DB SERP | Consumers Energy Company      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 76 83  
Service cost 0 0  
Interest cost 4 4  
Plan amendments 0 0  
Actuarial loss (gain) 3 (4)  
Benefits paid (7) (7)  
Benefit obligation at end of period 76 76 83
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 (76) (76)  
OPEB Plan      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 831 900  
Service cost 8 11 12
Interest cost 43 43 44
Plan amendments 0 (25)  
Actuarial loss (gain) 2 (40)  
Benefits paid (54) (58)  
Benefit obligation at end of period 830 831 900
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 1,588 1,559  
Actual return on plan assets 197 86  
Company contribution 0 0  
Actual benefits paid (52) (57)  
Plan assets at fair value at end of period 1,733 1,588 1,559
Funded status 903 757  
OPEB Plan | Consumers Energy Company      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 801 867  
Service cost 8 11 11
Interest cost 42 41 42
Plan amendments 0 (24)  
Actuarial loss (gain) 1 (38)  
Benefits paid (51) (56)  
Benefit obligation at end of period 801 801 867
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 1,479 1,453  
Actual return on plan assets 184 80  
Company contribution 0 0  
Actual benefits paid (50) (54)  
Plan assets at fair value at end of period 1,613 1,479 $ 1,453
Funded status $ 812 $ 678  
v3.25.4
Retirement Benefits (Schedule of Retirement Benefit Plan Assets (Liabilities)) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets $ 1,957 $ 1,627
Non-current liabilities 95 96
Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 1,821 1,514
Non-current liabilities 70 70
DB Pension Plans    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 1,054 870
DB Pension Plans | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 1,009 836
OPEB Plan    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 903 757
OPEB Plan | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 812 678
DB SERP    
Defined Benefit Plan Disclosure [Line Items]    
Current liabilities 10 10
Non-current liabilities 94 95
DB SERP | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Current liabilities 7 7
Non-current liabilities $ 69 $ 69
v3.25.4
Retirement Benefits (Schedule of Net Periodic Benefit Cost Not yet Recognized) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Consumers Energy Company    
Regulatory assets    
Total regulatory assets $ 3,459 $ 3,798
DB Pension Plans and DB SERP    
Regulatory assets    
Net loss 548 653
Prior service cost (credit) 9 12
Total regulatory assets 557 665
AOCI    
Net loss (gain) 57 60
Prior service credit 0 0
Total amounts recognized in regulatory assets and AOCI 614 725
DB Pension Plans and DB SERP | Consumers Energy Company    
Regulatory assets    
Net loss 548 653
Prior service cost (credit) 9 12
Total regulatory assets 557 665
AOCI    
Net loss (gain) 18 15
Total amounts recognized in regulatory assets and AOCI 575 680
OPEB Plan    
Regulatory assets    
Net loss 93 176
Prior service cost (credit) (61) (94)
Total regulatory assets 32 82
AOCI    
Net loss (gain) (7) (3)
Prior service credit (2) (2)
Total amounts recognized in regulatory assets and AOCI 23 77
OPEB Plan | Consumers Energy Company    
Regulatory assets    
Net loss 93 176
Prior service cost (credit) (61) (94)
Total regulatory assets 32 82
AOCI    
Net loss (gain) 0 0
Total amounts recognized in regulatory assets and AOCI $ 32 $ 82
v3.25.4
Retirement Benefits (Schedule of Allocation of Plan Assets) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets $ 3,177 $ 2,964 $ 3,004
DB Pension Plans | Plan Assets Excluding Pooled Funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 162 148  
DB Pension Plans | Plan Assets Excluding Pooled Funds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 162 148  
DB Pension Plans | Plan Assets Excluding Pooled Funds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 0  
DB Pension Plans | Cash and short-term investments      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 162 148  
DB Pension Plans | Cash and short-term investments | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 162 148  
DB Pension Plans | Cash and short-term investments | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 0  
DB Pension Plans | Mutual funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 0  
DB Pension Plans | Mutual funds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 0  
DB Pension Plans | Mutual funds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 0  
DB Pension Plans | Pooled funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 3,015 2,816  
OPEB Plan      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 1,733 1,588 $ 1,559
OPEB Plan | Plan Assets Excluding Pooled Funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 466 356  
OPEB Plan | Plan Assets Excluding Pooled Funds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 362 258  
OPEB Plan | Plan Assets Excluding Pooled Funds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 104 98  
OPEB Plan | Cash and short-term investments      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 72 35  
OPEB Plan | Cash and short-term investments | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 72 35  
OPEB Plan | Cash and short-term investments | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 0  
OPEB Plan | U.S. government and agencies securities      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 15 13  
OPEB Plan | U.S. government and agencies securities | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 0  
OPEB Plan | U.S. government and agencies securities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 15 13  
OPEB Plan | Corporate debt      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 69 68  
OPEB Plan | Corporate debt | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 0  
OPEB Plan | Corporate debt | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 69 68  
OPEB Plan | State and municipal bonds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 4 2  
OPEB Plan | State and municipal bonds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 0  
OPEB Plan | State and municipal bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 4 2  
OPEB Plan | Foreign bonds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 16 15  
OPEB Plan | Foreign bonds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 0  
OPEB Plan | Foreign bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 16 15  
OPEB Plan | Common stocks      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 215 170  
OPEB Plan | Common stocks | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 215 170  
OPEB Plan | Common stocks | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 0  
OPEB Plan | Mutual funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 75 53  
OPEB Plan | Mutual funds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 75 53  
OPEB Plan | Mutual funds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 0  
OPEB Plan | Pooled funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets $ 1,267 $ 1,232  
v3.25.4
Retirement Benefits (Schedule of Asset Allocation) (Details)
Dec. 31, 2025
DB Pension Plans  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 100.00%
DB Pension Plans | Fixed-income securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 39.20%
DB Pension Plans | Equity securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 38.70%
DB Pension Plans | Real asset investments  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 9.30%
DB Pension Plans | Return-seeking fixed income  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 7.10%
DB Pension Plans | Liquid alternative investments  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 4.30%
DB Pension Plans | Cash and cash equivalents  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 1.40%
OPEB Plan  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 100.00%
OPEB Plan | Fixed-income securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 37.60%
OPEB Plan | Equity securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 42.40%
OPEB Plan | Real asset investments  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 8.80%
OPEB Plan | Return-seeking fixed income  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 5.60%
OPEB Plan | Liquid alternative investments  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 3.70%
OPEB Plan | Cash and cash equivalents  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 1.90%
v3.25.4
Retirement Benefits (Schedule of Expected Benefit Payments) (Details)
$ in Millions
Dec. 31, 2025
USD ($)
DB Pension Plans  
Defined Benefit Plan Disclosure [Line Items]  
2026 $ 164
2027 165
2028 164
2029 164
2030 164
2031-2035 801
DB Pension Plans | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
2026 154
2027 155
2028 154
2029 155
2030 154
2031-2035 756
DB SERP  
Defined Benefit Plan Disclosure [Line Items]  
2026 10
2027 10
2028 10
2029 9
2030 9
2031-2035 41
DB SERP | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
2026 7
2027 7
2028 7
2029 6
2030 6
2031-2035 29
OPEB Plan  
Defined Benefit Plan Disclosure [Line Items]  
2026 59
2027 61
2028 62
2029 62
2030 62
2031-2035 305
OPEB Plan | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
2026 57
2027 58
2028 59
2029 59
2030 60
2031-2035 $ 292
v3.25.4
Stock-based Compensation (Narrative) (Details)
$ in Millions
12 Months Ended
Dec. 31, 2025
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) 3,965,601
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) 3,965,601
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) 38,364
Unrecognized compensation cost | $ $ 28
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) 36,119
Unrecognized compensation cost | $ $ 26
Unrecognized compensation cost recognition period 2 years
v3.25.4
Stock-based Compensation (Schedule of Restricted Stock Activity) (Details) - $ / shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Number of Shares      
Granted (in shares) 542,154    
Consumers Energy Company      
Number of Shares      
Granted (in shares) 497,971    
Restricted Stock and Restricted Stock Units      
Number of Shares      
Nonvested, at beginning of period (in shares) 1,162,787    
Nonvested, at end of period (in shares) 1,188,843 1,162,787  
Weighted-average Grant Date Fair Value Per Share      
Weighted-average grant date fair value per share, at beginning of period (in dollars per share) $ 59.34    
Weighted-average grant date fair value per share, at end of period (in dollars per share) $ 60.36 $ 59.34  
Restricted Stock and Restricted Stock Units | Consumers Energy Company      
Number of Shares      
Nonvested, at beginning of period (in shares) 1,081,573    
Nonvested, at end of period (in shares) 1,092,601 1,081,573  
Weighted-average Grant Date Fair Value Per Share      
Weighted-average grant date fair value per share, at beginning of period (in dollars per share) $ 59.35    
Weighted-average grant date fair value per share, at end of period (in dollars per share) $ 60.36 $ 59.35  
Restricted stock      
Number of Shares      
Granted (in shares) 523,663    
Vested (in shares) (450,699)    
Forfeited (in shares) (38,364)    
Weighted-average Grant Date Fair Value Per Share      
Granted (in dollars per share) $ 50.19 44.76 $ 52.62
Vested (in dollars per share) 46.30    
Forfeitured (in dollars per share) $ 60.19    
Restricted stock | Consumers Energy Company      
Number of Shares      
Granted (in shares) 480,258    
Vested (in shares) (424,830)    
Forfeited (in shares) (36,119)    
Weighted-average Grant Date Fair Value Per Share      
Granted (in dollars per share) $ 49.86 44.49 52.42
Vested (in dollars per share) 46.33    
Forfeitured (in dollars per share) $ 60.01    
Restricted stock units      
Number of Shares      
Granted (in shares) 18,491    
Vested (in shares) (27,035)    
Forfeited (in shares) 0    
Weighted-average Grant Date Fair Value Per Share      
Granted (in dollars per share) $ 56.80 52.43 50.32
Vested (in dollars per share) $ 51.79    
Restricted stock units | Consumers Energy Company      
Number of Shares      
Granted (in shares) 17,713    
Vested (in shares) (25,994)    
Forfeited (in shares) 0    
Weighted-average Grant Date Fair Value Per Share      
Granted (in dollars per share) $ 56.80 $ 52.46 $ 50.34
Vested (in dollars per share) $ 51.82    
v3.25.4
Stock-based Compensation (Schedule of Restricted Stock Activity - Granted) (Details)
12 Months Ended
Dec. 31, 2025
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 542,154
Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 497,971
Time-lapse awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 118,842
Time-lapse awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 109,242
Market-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 139,248
Market-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 126,302
Performance-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 147,982
Performance-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 134,540
Restricted stock units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 14,406
Restricted stock units | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 13,800
Dividends on market-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 13,484
Dividends on market-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 12,472
Dividends on performance-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 14,458
Dividends on performance-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 13,389
Dividends on restricted stock units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 4,085
Dividends on restricted stock units | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 3,913
Additional market-based shares based on achievement of condition  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 5,982
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) 5,624
Additional performance-based shares based on achievement of condition  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 83,667
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) 78,689
v3.25.4
Stock-based Compensation (Schedule of Significant Assumptions Used to Estimate Fair Value of Market-based Restricted Stock Awards) (Details)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-Based Payment Arrangement, Noncash Expense [Abstract]      
Expected volatility 20.70% 20.20% 30.30%
Expected dividend yield 3.10% 3.50% 2.90%
Risk-free rate 4.20% 4.10% 3.90%
v3.25.4
Stock-based Compensation (Summary of Weighted-average Grant-date Fair Value) (Details) - $ / shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restricted stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) $ 50.19 $ 44.76 $ 52.62
Restricted stock | Consumers Energy Company      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) 49.86 44.49 52.42
Restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) 56.80 52.43 50.32
Restricted stock units | Consumers Energy Company      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) $ 56.80 $ 52.46 $ 50.34
v3.25.4
Stock-based Compensation (Schedule of Amounts Related to Restricted Stock Awards and Restricted Stock Units) (Details) - Restricted stock - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of shares that vested during the year $ 33 $ 28 $ 20
Compensation expense recognized 25 27 28
Income tax benefit recognized 2 3 3
Consumers Energy Company      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of shares that vested during the year 32 27 19
Compensation expense recognized 23 25 26
Income tax benefit recognized $ 2 $ 3 $ 2
v3.25.4
Income Taxes (Schedule of Effective Income Rate Reconciliation) (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount        
Income from continuing operations before income taxes   $ 1,248 $ 1,123 $ 954
Income tax expense at statutory rate   262 236 200
State and local income taxes, net of federal income tax effect   77 58 40
Renewable energy tax credits   (68) (71) (55)
Other   (6) (6) (7)
Nontaxable or nondeductible items   3 4 3
Changes in unrecognized tax benefits   9 2 (11)
TCJA excess deferred taxes   (42) (43) (40)
Deferred tax adjustment   0 (16) 0
Taxes attributable to noncontrolling interests   15 12 17
Other, net   (4) 0 0
Income tax expense   $ 246 $ 176 $ 147
Percent        
Income tax expense at statutory rate   21.00% 21.00% 21.00%
State and local income taxes, net of federal income tax effect   6.20% 5.10% 4.20%
Renewable energy tax credits   (5.40%) (6.40%) (5.80%)
Other   (0.50%) (0.50%) (0.70%)
Nontaxable or nondeductible items   0.20% 0.40% 0.30%
Changes in unrecognized tax benefits   0.70% 0.20% (1.20%)
TCJA excess deferred taxes   (3.40%) (3.80%) (4.20%)
Deferred tax adjustment   0.00% (1.40%) 0.00%
Taxes attributable to noncontrolling interests   1.20% 1.10% 1.80%
Other, net   (0.30%) 0.00% 0.00%
Effective tax rate   19.70% 15.70% 15.40%
State and local   $ 100 $ 76 $ 38
Consumers Energy Company        
Amount        
Income from continuing operations before income taxes   1,417 1,209 1,028
Income tax expense at statutory rate   298 254 216
State and local income taxes, net of federal income tax effect   80 60 47
Renewable energy tax credits   (46) (51) (43)
Other   (6) (6) (7)
Nontaxable or nondeductible items   3 3 3
Changes in unrecognized tax benefits   9 1 (12)
TCJA excess deferred taxes   (42) (43) (40)
Deferred tax adjustment   0 (16) 0
Other, net   (8) (2) (3)
Income tax expense   $ 288 $ 200 $ 161
Percent        
Income tax expense at statutory rate   21.00% 21.00% 21.00%
State and local income taxes, net of federal income tax effect   5.70% 5.00% 4.60%
Renewable energy tax credits   (3.20%) (4.20%) (4.20%)
Other   (0.40%) (0.50%) (0.70%)
Nontaxable or nondeductible items   0.20% 0.20% 0.30%
Changes in unrecognized tax benefits   0.60% 0.10% (1.20%)
TCJA excess deferred taxes   (3.00%) (3.60%) (3.90%)
Deferred tax adjustment   0.00% (1.30%) 0.00%
Other, net   (0.60%) (0.20%) (0.20%)
Effective tax rate   20.30% 16.50% 15.70%
State and local $ 12 $ 79 $ 68 $ 43
Consumers Energy Company | Non-Michigan Jurisdiction        
Amount        
State and local income taxes, net of federal income tax effect       $ (13)
v3.25.4
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2026
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Benefits [Line Items]        
Deferred income taxes and investment tax credits   $ 202 $ 142 $ 157
Local Tax Authority        
Income Tax Benefits [Line Items]        
Valuation allowance - loss carryforward   2    
Consumers Energy Company        
Income Tax Benefits [Line Items]        
Deferred income taxes and investment tax credits   48 $ 115 $ 156
2024 Renewable Energy Tax Credits        
Income Tax Benefits [Line Items]        
Deferred income taxes and investment tax credits   13    
2025 Renewable Energy Tax Credits | Forecast        
Income Tax Benefits [Line Items]        
Deferred income taxes and investment tax credits $ 32      
2025 Renewable Energy Tax Credits | Consumers Energy Company        
Income Tax Benefits [Line Items]        
Deferred income taxes and investment tax credits   $ 36    
2025 Renewable Energy Tax Credits | Consumers Energy Company | Forecast        
Income Tax Benefits [Line Items]        
Deferred income taxes and investment tax credits $ 10      
v3.25.4
Income Taxes (Summary of Significant Components of Income Tax Expense) (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current income taxes        
Federal   $ 34 $ 34 $ 5
State and local   9 0 1
Total current income tax expense   43 34 6
Deferred income taxes        
Federal   107 70 107
State and local   100 76 38
Total deferred income tax expense   207 146 145
Deferred income tax credit   (4) (4) (4)
Income tax expense   246 176 147
Consumers Energy Company        
Current income taxes        
Federal   207 78 3
State and local   33 7 2
Total current income tax expense   240 85 5
Deferred income taxes        
Federal   (27) 51 117
State and local $ 12 79 68 43
Total deferred income tax expense   52 119 160
Deferred income tax credit   (4) (4) (4)
Income tax expense   $ 288 $ 200 $ 161
v3.25.4
Income Taxes (Summary of Income Taxes Paid) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Federal $ 28 $ 27 $ 15
State 1 1 0
Total 29 28 15
Consumers Energy Company      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Federal 189 57 23
State 21 0 8
Total $ 210 $ 57 $ 31
v3.25.4
Income Taxes (Summary of Principal Components of Deferred Income Tax Assets and Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Deferred income tax assets    
Net regulatory tax liability $ 294 $ 307
Tax loss and credit carryforwards 139 258
Reserves and accruals 16 27
Total deferred income tax assets 449 592
Valuation allowance (2) (1)
Total deferred income tax assets, net of valuation allowance 447 591
Deferred income tax liabilities    
Plant, property, and equipment (2,833) (2,682)
Employee benefits (558) (507)
Gas inventory (24) (38)
Securitized costs (137) (167)
Other (147) (122)
Total deferred income tax liabilities (3,699) (3,516)
Total net deferred income tax liabilities (3,252) (2,925)
Consumers Energy Company    
Deferred income tax assets    
Net regulatory tax liability 294 307
Tax loss and credit carryforwards 18 37
Reserves and accruals 13 24
Total deferred income tax assets, net of valuation allowance 325 368
Deferred income tax liabilities    
Plant, property, and equipment (2,808) (2,658)
Employee benefits (534) (489)
Gas inventory (24) (38)
Securitized costs (137) (167)
Other (23) (69)
Total deferred income tax liabilities (3,526) (3,421)
Total net deferred income tax liabilities $ (3,201) $ (3,053)
v3.25.4
Income Taxes (Summary of Loss and Credit Carryforwards) (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Operating Loss Carryforwards [Line Items]  
General business credits $ 120
Total tax attributes 139
Consumers Energy Company  
Operating Loss Carryforwards [Line Items]  
General business credits 8
Total tax attributes 18
Michigan State Tax Authority  
Operating Loss Carryforwards [Line Items]  
Local net operating loss carryforwards 15
Michigan State Tax Authority | Consumers Energy Company  
Operating Loss Carryforwards [Line Items]  
Local net operating loss carryforwards 10
Arkansas State Tax Authority  
Operating Loss Carryforwards [Line Items]  
Local net operating loss carryforwards 2
Local Tax Authority  
Operating Loss Carryforwards [Line Items]  
Local net operating loss carryforwards $ 2
v3.25.4
Income Taxes (Schedule of Reconciliation of Uncertain Tax Benefits) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of period $ 24 $ 26 $ 28
Additions for current-year tax positions 2 1 1
Additions for prior-year tax positions 7 2 0
Reductions for lapse of statute of limitations (4) (5) (3)
Balance at end of period 29 24 26
Consumers Energy Company      
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of period 32 36 36
Additions for current-year tax positions 1 6 1
Additions for prior-year tax positions 7 1 2
Reductions for lapse of statute of limitations (4) (11) (3)
Balance at end of period $ 36 $ 32 $ 36
v3.25.4
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income available to common stockholders      
Income from continuing operations $ 1,002 $ 947 $ 807
Loss attributable to noncontrolling interests (69) (56) (79)
Preferred stock dividends 10 10 10
Income from continuing operations available to common stockholders – basic and diluted $ 1,061 $ 993 $ 876
Average common shares outstanding      
Weighted average shares - basic (in shares) 300.4 297.6 291.2
Dilutive nonvested stock awards (in shares) 0.5 0.7 0.5
Dilutive forward equity sale contracts (in shares) 0.1 0.0 0.0
Weighted average shares - diluted (in shares) 301.0 298.3 291.7
Income from continuing operations per average common share available to common stockholders      
Basic (in dollars per share) $ 3.53 $ 3.34 $ 3.01
Diluted (in dollars per share) $ 3.53 $ 3.33 $ 3.01
v3.25.4
Revenue (Disaggregation of Revenue) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers $ 8,305 $ 7,320 $ 7,261
Leasing income 149 105 116
Financing income 16 15 16
Total operating revenue 8,539 7,515 7,462
Operating Segments      
Disaggregation of Revenue [Line Items]      
Total operating revenue 8,539 7,515 7,462
Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 5,578 4,995 4,686
Financing income 10 10 10
Total operating revenue 5,638 5,061 4,745
Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 2,468 2,114 2,394
Financing income 6 5 6
Total operating revenue 2,493 2,138 2,420
NorthStar Clean Energy | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 259 211 181
Leasing income 149 105 116
Total operating revenue 408 316 297
Other      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 259 211 181
Other | NorthStar Clean Energy | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 259 211 181
Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 8,046 7,109 7,080
Financing income 16 15 16
Alternative-revenue programs 69 75 69
Other non-segment revenue 1 1 1
Total operating revenue 8,132 7,200 7,166
Consumers Energy Company | Operating Segments      
Disaggregation of Revenue [Line Items]      
Total operating revenue 8,131 7,199 7,165
Consumers Energy Company | Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 5,578 4,995 4,686
Financing income 10 10 10
Alternative-revenue programs 50 56 49
Total operating revenue 5,638 5,061 4,745
Consumers Energy Company | Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 2,468 2,114 2,394
Financing income 6 5 6
Alternative-revenue programs 19 19 20
Total operating revenue 2,493 2,138 2,420
Consumers Energy Company | Residential      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 4,362 3,747 3,855
Consumers Energy Company | Residential | Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 2,661 2,318 2,236
Consumers Energy Company | Residential | Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 1,701 1,429 1,619
Consumers Energy Company | Commercial      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 2,426 2,114 2,039
Consumers Energy Company | Commercial | Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 1,888 1,674 1,550
Consumers Energy Company | Commercial | Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 538 440 489
Consumers Energy Company | Industrial      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 824 720 720
Consumers Energy Company | Industrial | Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 762 670 660
Consumers Energy Company | Industrial | Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 62 50 60
Consumers Energy Company | Other      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 434 528 466
Consumers Energy Company | Other | Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 267 333 240
Consumers Energy Company | Other | Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers $ 167 $ 195 $ 226
v3.25.4
Revenue (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Bad debt expense $ 40 $ 33 $ 34
Unbilled receivables 659 584  
Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Bad debt expense 40 33 $ 34
Unbilled receivables $ 659 $ 584  
v3.25.4
Other Income and Other Expense (Summary of Components of Other Income and Other Expense) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other Income and Expenses [Line Items]      
Allowance for equity funds used during construction $ 23 $ 29 $ 7
Income from equity method investees 5 7 7
All other 13 11 13
Other income 151 207 195
Donations (10) (18) (1)
Civic and political expenditures (7) (5) (5)
All other (10) (9) (7)
Total other expense (27) (32) (13)
First mortgage bonds      
Other Income and Expenses [Line Items]      
Gain on extinguishment of debt 72 110 131
Nonrelated Party      
Other Income and Expenses [Line Items]      
Interest income 37 50 37
Related Party      
Other Income and Expenses [Line Items]      
Interest income 1 0 0
Consumers Energy Company      
Other Income and Expenses [Line Items]      
Allowance for equity funds used during construction 23 29 7
All other 6 9 12
Other income 55 85 49
Donations (10) (18) (1)
Civic and political expenditures (5) (5) (5)
All other (7) (7) (6)
Total other expense (22) (30) (12)
Consumers Energy Company | Nonrelated Party      
Other Income and Expenses [Line Items]      
Interest income 22 42 25
Consumers Energy Company | Related Party      
Other Income and Expenses [Line Items]      
Interest income $ 4 $ 5 $ 5
v3.25.4
Reportable Segments (Schedule of Financial Information by Reportable Segments, CMS Energy, including Consumers) (Details)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
Segment
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Segment Reporting Information [Line Items]      
Number of reportable segments | segment 3    
Operating Revenue $ 8,539 $ 7,515 $ 7,462
Power supply cost 2,457 2,028 2,011
Maintenance and other operating expenses 1,727 1,638 1,687
Depreciation and amortization 1,306 1,240 1,180
General taxes 513 482 447
Total operating expenses 6,812 6,028 6,227
Operating Income 1,727 1,487 1,235
Total other income 310 344 362
Total interest charges 789 708 643
Income (Loss) Before Income Taxes 1,248 1,123 954
Income tax expense (benefit) 246 176 147
Income from continuing operations 1,002 947 807
Other segment items 59 46 70
Net Income (Loss) Available to Common Stockholders 1,061 993 877
Plant, property, and equipment, gross 37,763 34,932  
Investments 61 64  
Total assets 39,941 35,920  
Capital expenditures 3,970 3,301  
Income from equity method investees $ 5 7 7
Consumers Energy Company      
Segment Reporting Information [Line Items]      
Number of reportable segments | Segment 2    
Operating Revenue $ 8,132 7,200 7,166
Power supply cost 2,193 1,867 1,841
Operating Income 1,769 1,515 1,268
Total other income 208 212 208
Total interest charges 560 518 448
Income (Loss) Before Income Taxes 1,417 1,209 1,028
Income tax expense (benefit) 288 200 161
Other segment items (2) (2) (2)
Net Income (Loss) Available to Common Stockholders 1,127 1,007 865
Total assets 37,091 34,088  
Capital expenditures 3,472 3,012  
Cost of gas sold      
Segment Reporting Information [Line Items]      
Cost of gas sold 809 640 902
Operating Segments      
Segment Reporting Information [Line Items]      
Operating Revenue 8,539 7,515 7,462
Power supply cost 2,457 2,028 2,011
Maintenance and other operating expenses 1,714 1,621 1,674
Depreciation and amortization 1,305 1,239 1,178
General taxes 512 481 446
Total operating expenses 6,797 6,009 6,211
Operating Income 1,742 1,506 1,251
Total other income 224 226 220
Total interest charges 552 520 448
Income (Loss) Before Income Taxes 1,414 1,212 1,023
Income tax expense (benefit) 284 196 169
Income from continuing operations 1,130 1,016 854
Other segment items 69 56 78
Net Income (Loss) Available to Common Stockholders 1,199 1,072 932
Plant, property, and equipment, gross 37,738 34,911  
Investments 61 64  
Total assets 39,444 35,850  
Capital expenditures 3,970 3,300  
Operating Segments | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 8,131 7,199 7,165
Power supply cost 2,193 1,867 1,841
Operating Income 1,770 1,516 1,270
Total other income 207 212 208
Total interest charges 559 516 446
Income (Loss) Before Income Taxes 1,418 1,212 1,032
Income tax expense (benefit) 288 201 165
Other segment items (2) (2) (2)
Net Income (Loss) Available to Common Stockholders 1,128 1,009 865
Total assets 37,043 34,056  
Capital expenditures 3,472 3,012  
Operating Segments | Cost of gas sold      
Segment Reporting Information [Line Items]      
Cost of gas sold 809 640 902
Other Reconciling Items      
Segment Reporting Information [Line Items]      
Operating Revenue 0 0 0
Power supply cost 0 0 0
Maintenance and other operating expenses 13 17 13
Depreciation and amortization 1 1 2
General taxes 1 1 1
Total operating expenses 15 19 16
Operating Income (15) (19) (16)
Total other income 86 118 142
Total interest charges 237 188 195
Income (Loss) Before Income Taxes (166) (89) (69)
Income tax expense (benefit) (38) (20) (22)
Income from continuing operations (128) (69) (47)
Other segment items (10) (10) (8)
Net Income (Loss) Available to Common Stockholders (138) (79) (55)
Plant, property, and equipment, gross 25 21  
Investments 0 0  
Total assets 497 70  
Capital expenditures 0 1  
Other Reconciling Items | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 1 1 1
Power supply cost 0 0 0
Operating Income (1) (1) (2)
Total other income 1 0 0
Total interest charges 1 2 2
Income (Loss) Before Income Taxes (1) (3) (4)
Income tax expense (benefit) 0 (1) (4)
Other segment items 0 0 0
Net Income (Loss) Available to Common Stockholders (1) (2) 0
Total assets 48 32  
Capital expenditures 0 0  
Other Reconciling Items | Cost of gas sold      
Segment Reporting Information [Line Items]      
Cost of gas sold 0 0 0
Electric Utility | Operating Segments      
Segment Reporting Information [Line Items]      
Operating Revenue 5,638 5,061 4,745
Power supply cost 2,193 1,867 1,841
Maintenance and other operating expenses 1,146 1,066 1,075
Depreciation and amortization 903 865 797
General taxes 297 281 260
Total operating expenses 4,539 4,079 3,973
Operating Income 1,099 982 772
Total other income 124 126 131
Total interest charges 353 324 285
Income (Loss) Before Income Taxes 870 784 618
Income tax expense (benefit) 150 102 67
Income from continuing operations 720 682 551
Other segment items (1) (1) (1)
Net Income (Loss) Available to Common Stockholders 719 681 550
Plant, property, and equipment, gross 21,871 20,137  
Investments 0 0  
Total assets 22,760 20,710  
Capital expenditures 2,408 1,871  
Electric Utility | Operating Segments | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 5,638 5,061 4,745
Power supply cost 2,193 1,867 1,841
Operating Income 1,099 982 772
Total other income 124 126 131
Total interest charges 353 324 285
Income (Loss) Before Income Taxes 870 784 618
Income tax expense (benefit) 150 102 67
Other segment items (1) (1) (1)
Net Income (Loss) Available to Common Stockholders 719 681 550
Total assets 22,814 20,767  
Capital expenditures 2,408 1,871  
Electric Utility | Operating Segments | Cost of gas sold      
Segment Reporting Information [Line Items]      
Cost of gas sold 0 0 0
Gas Utility | Operating Segments      
Segment Reporting Information [Line Items]      
Operating Revenue 2,493 2,138 2,420
Power supply cost 0 0 0
Maintenance and other operating expenses 468 454 511
Depreciation and amortization 350 325 338
General taxes 201 188 176
Total operating expenses 1,822 1,604 1,922
Operating Income 671 534 498
Total other income 83 86 77
Total interest charges 206 192 161
Income (Loss) Before Income Taxes 548 428 414
Income tax expense (benefit) 138 99 98
Income from continuing operations 410 329 316
Other segment items (1) (1) (1)
Net Income (Loss) Available to Common Stockholders 409 328 315
Plant, property, and equipment, gross 14,218 13,268  
Investments 0 0  
Total assets 14,188 13,247  
Capital expenditures 1,064 1,141  
Gas Utility | Operating Segments | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 2,493 2,138 2,420
Power supply cost 0 0 0
Operating Income 671 534 498
Total other income 83 86 77
Total interest charges 206 192 161
Income (Loss) Before Income Taxes 548 428 414
Income tax expense (benefit) 138 99 98
Other segment items (1) (1) (1)
Net Income (Loss) Available to Common Stockholders 409 328 315
Total assets 14,229 13,289  
Capital expenditures 1,064 1,141  
Gas Utility | Operating Segments | Cost of gas sold      
Segment Reporting Information [Line Items]      
Cost of gas sold 803 637 897
NorthStar Clean Energy | Operating Segments      
Segment Reporting Information [Line Items]      
Operating Revenue 408 316 297
Power supply cost 264 161 170
Maintenance and other operating expenses 100 101 88
Depreciation and amortization 52 49 43
General taxes 14 12 10
Total operating expenses 436 326 316
Operating Income (28) (10) (19)
Total other income 17 14 12
Total interest charges (7) 4 2
Income (Loss) Before Income Taxes (4) 0 (9)
Income tax expense (benefit) (4) (5) 4
Income from continuing operations 0 5 (13)
Other segment items 71 58 80
Net Income (Loss) Available to Common Stockholders 71 63 67
Plant, property, and equipment, gross 1,649 1,506  
Investments 61 64  
Total assets 2,496 1,893  
Capital expenditures 498 288  
NorthStar Clean Energy | Operating Segments | Cost of gas sold      
Segment Reporting Information [Line Items]      
Cost of gas sold $ 6 $ 3 $ 5
v3.25.4
Reportable Segments (Schedule of Financial Information by Reportable Segments, Consumers) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Operating Revenue $ 8,539 $ 7,515 $ 7,462
Power supply cost 2,457 2,028 2,011
Operating Income 1,727 1,487 1,235
Total other income 310 344 362
Total interest charges 789 708 643
Income (Loss) Before Income Taxes 1,248 1,123 954
Income Tax Expense 246 176 147
Net Income 1,071 1,003 887
Other segment items 59 46 70
Net Income (Loss) Available to Common Stockholders 1,061 993 877
Total assets 39,941 35,920  
Capital expenditures 3,970 3,301  
Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 8,132 7,200 7,166
Power supply cost 2,193 1,867 1,841
Cost of gas sold 803 637 897
Maintenance and other operating expenses 1,614 1,520 1,586
Depreciation and amortization 1,254 1,191 1,137
General taxes 499 470 437
Total operating expenses 6,363 5,685 5,898
Operating Income 1,769 1,515 1,268
Total other income 208 212 208
Total interest charges 560 518 448
Income (Loss) Before Income Taxes 1,417 1,209 1,028
Income Tax Expense 288 200 161
Net Income 1,129 1,009 867
Other segment items (2) (2) (2)
Net Income (Loss) Available to Common Stockholders 1,127 1,007 865
Property, plant, and equipment, gross 36,120 33,434  
Total assets 37,091 34,088  
Capital expenditures 3,472 3,012  
Operating Segments      
Segment Reporting Information [Line Items]      
Operating Revenue 8,539 7,515 7,462
Power supply cost 2,457 2,028 2,011
Operating Income 1,742 1,506 1,251
Total other income 224 226 220
Total interest charges 552 520 448
Income (Loss) Before Income Taxes 1,414 1,212 1,023
Income Tax Expense 284 196 169
Other segment items 69 56 78
Net Income (Loss) Available to Common Stockholders 1,199 1,072 932
Total assets 39,444 35,850  
Capital expenditures 3,970 3,300  
Operating Segments | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 8,131 7,199 7,165
Power supply cost 2,193 1,867 1,841
Cost of gas sold 803 637 897
Maintenance and other operating expenses 1,614 1,520 1,586
Depreciation and amortization 1,253 1,190 1,135
General taxes 498 469 436
Total operating expenses 6,361 5,683 5,895
Operating Income 1,770 1,516 1,270
Total other income 207 212 208
Total interest charges 559 516 446
Income (Loss) Before Income Taxes 1,418 1,212 1,032
Income Tax Expense 288 201 165
Net Income 1,130 1,011 867
Other segment items (2) (2) (2)
Net Income (Loss) Available to Common Stockholders 1,128 1,009 865
Property, plant, and equipment, gross 36,089 33,405  
Total assets 37,043 34,056  
Capital expenditures 3,472 3,012  
Operating Segments | Electric Utility      
Segment Reporting Information [Line Items]      
Operating Revenue 5,638 5,061 4,745
Power supply cost 2,193 1,867 1,841
Operating Income 1,099 982 772
Total other income 124 126 131
Total interest charges 353 324 285
Income (Loss) Before Income Taxes 870 784 618
Income Tax Expense 150 102 67
Other segment items (1) (1) (1)
Net Income (Loss) Available to Common Stockholders 719 681 550
Total assets 22,760 20,710  
Capital expenditures 2,408 1,871  
Operating Segments | Electric Utility | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 5,638 5,061 4,745
Power supply cost 2,193 1,867 1,841
Cost of gas sold 0 0 0
Maintenance and other operating expenses 1,146 1,066 1,075
Depreciation and amortization 903 865 797
General taxes 297 281 260
Total operating expenses 4,539 4,079 3,973
Operating Income 1,099 982 772
Total other income 124 126 131
Total interest charges 353 324 285
Income (Loss) Before Income Taxes 870 784 618
Income Tax Expense 150 102 67
Net Income 720 682 551
Other segment items (1) (1) (1)
Net Income (Loss) Available to Common Stockholders 719 681 550
Property, plant, and equipment, gross 21,871 20,137  
Total assets 22,814 20,767  
Capital expenditures 2,408 1,871  
Operating Segments | Gas Utility      
Segment Reporting Information [Line Items]      
Operating Revenue 2,493 2,138 2,420
Power supply cost 0 0 0
Operating Income 671 534 498
Total other income 83 86 77
Total interest charges 206 192 161
Income (Loss) Before Income Taxes 548 428 414
Income Tax Expense 138 99 98
Other segment items (1) (1) (1)
Net Income (Loss) Available to Common Stockholders 409 328 315
Total assets 14,188 13,247  
Capital expenditures 1,064 1,141  
Operating Segments | Gas Utility | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 2,493 2,138 2,420
Power supply cost 0 0 0
Cost of gas sold 803 637 897
Maintenance and other operating expenses 468 454 511
Depreciation and amortization 350 325 338
General taxes 201 188 176
Total operating expenses 1,822 1,604 1,922
Operating Income 671 534 498
Total other income 83 86 77
Total interest charges 206 192 161
Income (Loss) Before Income Taxes 548 428 414
Income Tax Expense 138 99 98
Net Income 410 329 316
Other segment items (1) (1) (1)
Net Income (Loss) Available to Common Stockholders 409 328 315
Property, plant, and equipment, gross 14,218 13,268  
Total assets 14,229 13,289  
Capital expenditures 1,064 1,141  
Other Reconciling Items      
Segment Reporting Information [Line Items]      
Operating Revenue 0 0 0
Power supply cost 0 0 0
Operating Income (15) (19) (16)
Total other income 86 118 142
Total interest charges 237 188 195
Income (Loss) Before Income Taxes (166) (89) (69)
Income Tax Expense (38) (20) (22)
Other segment items (10) (10) (8)
Net Income (Loss) Available to Common Stockholders (138) (79) (55)
Total assets 497 70  
Capital expenditures 0 1  
Other Reconciling Items | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 1 1 1
Power supply cost 0 0 0
Cost of gas sold 0 0 0
Maintenance and other operating expenses 0 0 0
Depreciation and amortization 1 1 2
General taxes 1 1 1
Total operating expenses 2 2 3
Operating Income (1) (1) (2)
Total other income 1 0 0
Total interest charges 1 2 2
Income (Loss) Before Income Taxes (1) (3) (4)
Income Tax Expense 0 (1) (4)
Net Income (1) (2) 0
Other segment items 0 0 0
Net Income (Loss) Available to Common Stockholders (1) (2) $ 0
Property, plant, and equipment, gross 31 29  
Total assets 48 32  
Capital expenditures $ 0 $ 0  
v3.25.4
Related party Transactions - Consumers (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Consumers Energy Company      
Related Party Transaction [Line Items]      
Purchased power – related parties $ 94 $ 71 $ 75
Consumers Energy Company | Related Party      
Related Party Transaction [Line Items]      
Due to related parties 19 20  
Accounts receivable related parties 13 15  
Interest payable 9 $ 7  
Consumers Energy Company | Credit Agreement | Related Party      
Related Party Transaction [Line Items]      
Maximum borrowing capacity $ 500    
CMS Energy Note Payable      
Related Party Transaction [Line Items]      
Interest Rate (%) 4.10%    
CMS Energy Note Payable | Consumers Energy Company      
Related Party Transaction [Line Items]      
Interest Rate (%) 4.10%    
v3.25.4
Variable Interest Entities (Narrative) (Details)
$ in Millions
1 Months Ended 12 Months Ended
Mar. 31, 2025
USD ($)
MW
Dec. 31, 2025
USD ($)
MW
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Variable Interest Entity [Line Items]        
Deemed contribution from sale of membership interest   $ 35 $ 0 $ 0
Investments   61 64  
Class A - Tax Equity Membership        
Variable Interest Entity [Line Items]        
Proceeds from the sale of membership interests in VIEs   $ 15 0 $ 86
NWO Wind Equity Holdings        
Variable Interest Entity [Line Items]        
Proceeds from the sale of membership interests in VIEs $ 36      
Delta Township, Michigan, Solar Project        
Variable Interest Entity [Line Items]        
Proceeds from the sale of membership interests in VIEs $ 8      
Variable Interest Entity, Primary Beneficiary | NWO Holdco        
Variable Interest Entity [Line Items]        
Nameplate capacity (in MW) | MW   100    
Variable Interest Entity, Primary Beneficiary | BG Solar Holdings        
Variable Interest Entity [Line Items]        
Nameplate capacity (in MW) | MW   200    
Renewablee Energy Purchase AGreement Term   15 years    
Variable Interest Entity, Primary Beneficiary | NWO Wind Equity Holdings        
Variable Interest Entity [Line Items]        
Ownership interest 50.00%      
Variable Interest Entity, Primary Beneficiary | Delta Township, Michigan, Solar Project        
Variable Interest Entity [Line Items]        
Ownership interest 50.00%      
Nameplate capacity (in MW) | MW 24      
Variable Interest Entity, Not Primary Beneficiary        
Variable Interest Entity [Line Items]        
Investments   $ 54 $ 64  
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%    
v3.25.4
Variable Interest Entities (Summary of VIE Information) (Details) - MW
1 Months Ended 12 Months Ended
Mar. 31, 2025
Jan. 31, 2025
Dec. 31, 2025
Aviator Wind      
Variable Interest Entity [Line Items]      
Noncontrolling interest capacity (in MW)   525  
Variable Interest Entity, Primary Beneficiary | Aviator Wind Equity Holdings      
Variable Interest Entity [Line Items]      
Ownership interest 51.00%    
Variable Interest Entity, Primary Beneficiary | Delta Township, Michigan, Solar Project      
Variable Interest Entity [Line Items]      
Ownership interest 50.00%    
Nameplate capacity (in MW) 24    
Variable Interest Entity, Primary Beneficiary | Newport Solar Holdings      
Variable Interest Entity [Line Items]      
Nameplate capacity (in MW)     180
Variable Interest Entity, Primary Beneficiary | NWO Wind Equity Holdings      
Variable Interest Entity [Line Items]      
Ownership interest 50.00%    
Variable Interest Entity, Primary Beneficiary | BG Solar Holdings      
Variable Interest Entity [Line Items]      
Nameplate capacity (in MW)     200
Variable Interest Entity, Primary Beneficiary | NWO Holdco      
Variable Interest Entity [Line Items]      
Nameplate capacity (in MW)     100
v3.25.4
Variable Interest Entities (Schedule of Variable Interest Entities) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Variable Interest Entity [Line Items]    
Cash and cash equivalents $ 509 $ 103
Restricted cash equivalents 106 75
Prepayments and other current assets 160 103
Plant, property, and equipment, net 30,680 27,461
Construction work in progress 3,052 2,098
Other non-current assets 398 384
Total Assets 39,941 35,920
Current portion of long-term debt and finance leases 956 1,195
Long-term debt 17,807 15,194
Non-current portion of finance leases 135 112
AROs 792 728
Other non‑current liabilities 392 407
Variable Interest Entity, Primary Beneficiary    
Variable Interest Entity [Line Items]    
Cash and cash equivalents 20 18
Restricted cash equivalents 19 0
Accounts receivable 42 4
Prepayments and other current assets 5 3
Plant, property, and equipment, net 1,037 1,024
Construction work in progress 357 0
Other non-current assets 5 3
Total Assets 1,485 1,052
Current portion of long-term debt and finance leases 65 0
Accounts payable 29 8
Long-term debt 118 0
Non-current portion of finance leases 39 23
AROs 38 33
Other non‑current liabilities 3 0
Total liabilities $ 292 $ 64
v3.25.4
Exit Activities and Asset Sales (Narrative) (Details)
$ in Millions
1 Months Ended 12 Months Ended 42 Months Ended
Sep. 30, 2025
facility
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Nov. 30, 2025
USD ($)
Feb. 17, 2026
USD ($)
Restructuring Cost and Reserve [Line Items]          
Facilities agreed to sell | facility 13        
Duration of purchase agreement 30 years        
Minimum          
Restructuring Cost and Reserve [Line Items]          
Expected duration of review 12 months        
Maximum          
Restructuring Cost and Reserve [Line Items]          
Expected duration of review 18 months        
Retention Benefits          
Restructuring Cost and Reserve [Line Items]          
Retention and severance costs   $ 7 $ 8    
Retention Benefits | D.E. Karn Generating Complex and J.H. Campbell Generating Units | Retention Incentive Program          
Restructuring Cost and Reserve [Line Items]          
Regulatory asset collection period   3 years      
Retention Benefits | J.H. Campbell Generating Units          
Restructuring Cost and Reserve [Line Items]          
Retention and severance costs       $ 48  
Retention Benefits | J.H. Campbell Generating Units | Subsequent Event          
Restructuring Cost and Reserve [Line Items]          
Expected cost         $ 4
v3.25.4
Exit Activities and Asset Sales (Schedule of Retention Benefit Liability Roll Forward) (Details) - Retention Benefits - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Restructuring Reserve [Roll Forward]    
Retention benefit liability at beginning of period $ 14 $ 16
Costs deferred as a regulatory asset 7 8
Costs paid or settled (19) (10)
Retention benefit liability at the end of the period $ 2 $ 14
v3.25.4
Schedule I - Condensed Financial Information of Registrant (Condensed Statements of Income) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating Expenses      
Other operating expenses $ (1,727) $ (1,638) $ (1,687)
Total operating expenses (6,812) (6,028) (6,227)
Operating Loss 1,727 1,487 1,235
Other Income (Expense)      
Equity earnings of subsidiaries 5 7 7
Non-operating retirement benefits, net 186 169 180
Other expense (27) (32) (13)
Total other income 310 344 362
Interest Charges      
Interest on long-term debt 798 700 616
Total interest charges 789 708 643
Income (Loss) Before Income Taxes 1,248 1,123 954
Income Tax Expense 246 176 147
Net Income 1,071 1,003 887
Preferred Stock Dividends 10 10 10
Net Income (Loss) Available to Common Stockholders 1,061 993 877
Related Party      
Interest Charges      
Intercompany interest expense and other 11 12 12
CMS Energy      
Operating Expenses      
Other operating expenses 9 10 10
Total operating expenses 9 10 10
Operating Loss (9) (10) (10)
Other Income (Expense)      
Non-operating retirement benefits, net (1) (1) (1)
Other income 69 45 31
Other expense (2) 0 0
Total other income 1,255 1,105 959
Interest Charges      
Interest on long-term debt 266 205 201
Total interest charges 276 215 211
Income (Loss) Before Income Taxes 970 880 738
Income Tax Expense (39) (19) (20)
Net Income 1,009 899 758
Preferred Stock Dividends 10 10 10
Net Income (Loss) Available to Common Stockholders 999 889 748
CMS Energy | Related Party      
Other Income (Expense)      
Equity earnings of subsidiaries 1,189 1,061 929
Interest Charges      
Intercompany interest expense and other $ 10 $ 10 $ 10
v3.25.4
Schedule I - Condensed Financial Information of Registrant (Condensed Statements Of Cash Flows) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash Flows from Operating Activities      
Net cash provided by operating activities $ 2,235 $ 2,370 $ 2,309
Cash Flows from Investing Activities      
Net cash used in investing activities (4,038) (3,054) (3,386)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 3,609 1,962 3,551
Issuance of common stock 525 286 192
Retirement of long-term debt (1,150) (952) (2,132)
Increase (decrease) in notes payable (65) (28) 73
Net cash provided by financing activities 2,240 614 1,143
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 437 (70) 66
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 178 248 182
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 615 178 248
Capital Expenditures      
Cash Flows from Investing Activities      
Capital expenditures (3,824) (3,018) (2,407)
CMS Energy      
Cash Flows from Operating Activities      
Net cash provided by operating activities 817 774 595
Cash Flows from Investing Activities      
Investment in subsidiaries (1,062) (535) (630)
Proceeds from DB SERP investments 3 0 0
Net cash used in investing activities (1,478) (803) (868)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 2,110 490 800
Issuance of common stock 525 286 192
Retirement of long-term debt (850) (250) 0
Payment of dividends on common and preferred stock (663) (626) (579)
Debt issuance costs and financing fees (39) (10) (20)
Net cash provided by financing activities 1,086 (116) 386
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 425 (145) 113
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 4 149 36
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 429 4 149
CMS Energy | Capital Expenditures      
Cash Flows from Investing Activities      
Capital expenditures (1) (1) 0
CMS Energy | Related Party      
Cash Flows from Investing Activities      
Investment in debt securities – intercompany (109) (288) (293)
Decrease (increase) in notes receivable – intercompany (309) 21 55
Cash Flows from Financing Activities      
Increase (decrease) in notes payable $ 3 $ (6) $ (7)
v3.25.4
Schedule I - Condensed Financial Information of Registrant (Condensed Balance Sheets) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Current Assets    
Cash and cash equivalents $ 509 $ 103
Prepayments and other current assets 160 103
Total current assets 3,472 2,790
Other Non‑current Assets    
Plant, property, and equipment, net 30,680 27,461
Investments in subsidiaries 61 64
Other 398 384
Total other non‑current assets 5,789 5,669
Total Assets 39,941 35,920
Current Liabilities    
Current portion of long-term debt 950 1,192
Accrued interest, including intercompany 182 156
Accrued taxes 708 654
Other current liabilities 185 209
Total current liabilities 3,548 3,521
Non‑current Liabilities    
Long-term debt 17,807 15,194
Postretirement benefits 95 96
Other non‑current liabilities 392 407
Total non‑current liabilities 26,682 23,651
Equity    
Common stock 3 3
Total common stockholders’ equity 8,920 8,006
Cumulative preferred stock 224 224
Total stockholders’ equity 9,144 8,230
Total Liabilities and Equity 39,941 35,920
CMS Energy    
Current Assets    
Cash and cash equivalents 429 4
Prepayments and other current assets 1 1
Total current assets 788 53
Other Non‑current Assets    
Plant, property, and equipment, net 1 1
Deferred income taxes 105 150
Other investments 8 9
Other 23 21
Total other non‑current assets 14,571 13,172
Total Assets 15,359 13,225
Current Liabilities    
Current portion of long-term debt 300 740
Accrued interest, including intercompany 43 34
Accrued taxes 41 16
Other current liabilities 8 6
Total current liabilities 481 870
Non‑current Liabilities    
Long-term debt 5,906 4,226
Notes payable – intercompany 96 100
Postretirement benefits 13 14
Other non‑current liabilities 14 17
Total non‑current liabilities 6,029 4,357
Equity    
Common stock 3 3
Other stockholders’ equity 8,622 7,771
Total common stockholders’ equity 8,625 7,774
Cumulative preferred stock 224 224
Total stockholders’ equity 8,849 7,998
Total Liabilities and Equity 15,359 13,225
CMS Energy | Intercompany    
Current Assets    
Notes receivable 350 40
Other Non‑current Assets    
Investments in subsidiaries 13,724 12,400
Investment in debt securities – intercompany 710 591
Current Liabilities    
Accounts and notes payable – intercompany 89 74
CMS Energy | Intercompany and related parties    
Current Assets    
Accounts receivable – intercompany and related parties $ 8 $ 8
v3.25.4
Schedule I - Condensed Financial Information of Registrant (Narrative) (Details)
$ in Billions
Dec. 31, 2025
USD ($)
CMS Energy  
Condensed Financial Statements, Captions [Line Items]  
Maximum potential obligation $ 1.3
v3.25.4
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Allowance for uncollectible accounts      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 23 $ 21 $ 27
Charged to Expense 40 33 34
Charged to Other Accounts 0 0 0
Deductions 36 31 40
Balance at End of Period 27 23 21
Allowance for uncollectible accounts | Consumers Energy Company      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 23 21 27
Charged to Expense 40 33 34
Charged to Other Accounts 0 0 0
Deductions 36 31 40
Balance at End of Period 27 23 21
Deferred tax valuation allowance      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 1 2 2
Charged to Expense 1 0 0
Charged to Other Accounts 0 0 0
Deductions 0 1 0
Balance at End of Period $ 2 $ 1 $ 2