CMS ENERGY CORP, 10-Q filed on 7/28/2022
Quarterly Report
v3.22.2
Cover Page - shares
 6 Months Ended
Jun. 30, 2022
Jul. 11, 2022
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2022  
Document Transition Report false  
Entity File Number 1-9513  
Entity Registrant Name CMS ENERGY CORPORATION  
Entity Tax Identification Number 38-2726431  
Entity Incorporation, State or Country Code MI  
Entity Address, Address Line One One Energy Plaza  
Entity Address, City or Town Jackson  
Entity Address, State or Province MI  
Entity Address, Postal Zip Code 49201  
City Area Code 517  
Local Phone Number 788‑0550  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   290,195,595
Entity Central Index Key 0000811156  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Consumers Energy Company    
Document Information [Line Items]    
Entity File Number 1-5611  
Entity Registrant Name CONSUMERS ENERGY COMPANY  
Entity Tax Identification Number 38-0442310  
Entity Incorporation, State or Country Code MI  
Entity Address, Address Line One One Energy Plaza  
Entity Address, City or Town Jackson  
Entity Address, State or Province MI  
Entity Address, Postal Zip Code 49201  
City Area Code 517  
Local Phone Number 788‑0550  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   84,108,789
Entity Central Index Key 0000201533  
CMS Energy Corporation Common Stock, $0.01 par value    
Document Information [Line Items]    
Title of 12(b) Security CMS Energy Corporation Common Stock  
Trading Symbol CMS  
Security Exchange Name NYSE  
CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078    
Document Information [Line Items]    
Title of 12(b) Security CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078  
Trading Symbol CMSA  
Security Exchange Name NYSE  
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078    
Document Information [Line Items]    
Title of 12(b) Security CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078  
Trading Symbol CMSC  
Security Exchange Name NYSE  
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079    
Document Information [Line Items]    
Title of 12(b) Security CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079  
Trading Symbol CMSD  
Security Exchange Name NYSE  
CMS Energy Corporation Depositary Shares, each representing a 1/1,000th interest in a share of 4.200% Cumulative Redeemable Perpetual Preferred Stock, Series C    
Document Information [Line Items]    
Title of 12(b) Security CMS Energy Corporation Depositary Shares  
Trading Symbol CMS PRC  
Security Exchange Name NYSE  
Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series    
Document Information [Line Items]    
Title of 12(b) Security Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series  
Trading Symbol CMS-PB  
Security Exchange Name NYSE  
v3.22.2
CMS Energy Corporation Consolidated Statements of Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Operating Revenue $ 1,920 $ 1,558 $ 4,294 $ 3,571
Operating Expenses        
Fuel for electric generation 241 116 408 254
Purchased power – related parties 18 17 35 35
Maintenance and other operating expenses 392 355 726 666
Depreciation and amortization 242 244 587 582
General taxes 89 87 221 209
Total operating expenses 1,681 1,306 3,599 2,889
Operating Income 239 252 695 682
Other Income (Expense)        
Interest income 1 1 2 2
Allowance for equity funds used during construction 1 2 3 3
Income from equity method investees 0 2 0 4
Non-operating retirement benefits, net 52 40 100 81
Other income 0 5 1 6
Other expense (11) (2) (15) (4)
Total other income 43 48 91 92
Interest Charges        
Interest on long-term debt 122 120 243 239
Interest expense – related parties 3 3 6 6
Other interest expense 1 2 2 5
Allowance for borrowed funds used during construction 0 0 (1) (1)
Total interest charges 126 125 250 249
Income Before Income Taxes 156 175 536 525
Income Tax Expense 14 22 53 64
Income From Continuing Operations 142 153 483 461
Income From Discontinued Operations, Net of Tax of $—, $7, $1, and $16 0 18 4 52
Net Income 142 171 487 513
Loss Attributable to Noncontrolling Interests (6) (5) (14) (12)
Net Income Attributable to CMS Energy 148 176 501 525
Preferred Stock Dividends 3 0 5 0
Net Income Available to Common Stockholders $ 145 $ 176 $ 496 $ 525
Basic Earnings Per Average Common Share        
Basic earnings per average common share, income from continuing operations per average common share available to common stockholders (in dollars per share) $ 0.50 $ 0.55 $ 1.70 $ 1.64
Basic earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) 0 0.06 0.01 0.18
Basic earnings per average common share (in dollars per share) 0.50 0.61 1.71 1.82
Diluted Earnings Per Average Common Share        
Diluted earnings per average common share, income from continuing operations per average common share available to common stockholders (in dollars per share) 0.50 0.55 1.70 1.64
Diluted earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) 0 0.06 0.01 0.18
Diluted earnings per average common share (in dollars per share) $ 0.50 $ 0.61 $ 1.71 $ 1.82
Purchased and interchange power        
Operating Expenses        
Cost of goods and services sold $ 483 $ 391 $ 938 $ 768
Cost of gas sold        
Operating Expenses        
Cost of goods and services sold $ 216 $ 96 $ 684 $ 375
v3.22.2
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Statement of Comprehensive Income [Abstract]        
Net Income $ 142 $ 171 $ 487 $ 513
Retirement Benefits Liability        
Net gain arising during the period 0 0 2 0
Amortization of net actuarial loss, net of tax 1 3 2 4
Amortization of prior service credit 0 (1) 0 (1)
Derivatives        
Unrealized gain on derivative instruments, net of tax 0 0 2 1
Reclassification adjustments included in net income (1) 0 (1) 0
Other Comprehensive Income 2 2 7 4
Comprehensive Income 144 173 494 517
Comprehensive Loss Attributable to Noncontrolling Interests (6) (5) (14) (12)
Comprehensive Income Attributable to CMS Energy $ 150 $ 178 $ 508 $ 529
v3.22.2
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Statement of Comprehensive Income [Abstract]        
Net gain (loss) arising during the period, tax $ 0 $ 0 $ 1 $ 0
Amortization of net actuarial loss, tax 1 1 1 1
Amortization of prior service credit, tax 0 0 0 0
Unrealized gain on derivative instruments, tax 0 0 1 0
Reclassification adjustments included in net income , tax $ 0 $ 1 $ 0 $ 1
v3.22.2
CMS Energy Corporation Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Cash Flows from Operating Activities    
Net Income $ 487 $ 513
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation and amortization 587 582
Deferred income taxes and investment tax credits 39 75
Gain from sale of EnerBank (5) 0
Other non‑cash operating activities and reconciling adjustments (33) (29)
Net cash used in discontinued operations 0 (23)
Changes in assets and liabilities    
Accounts receivable and accrued revenue (80) 101
Inventories (179) 36
Accounts payable and accrued rate refunds 53 0
Other current assets and liabilities 117 78
Other non‑current assets and liabilities 73 34
Net cash provided by operating activities 1,059 1,367
Cash Flows from Investing Activities    
Capital expenditures (excludes assets placed under finance lease) (1,088) (878)
Net proceeds from sale of EnerBank 5 0
Net cash provided by discontinued operations 0 90
Cost to retire property and other investing activities (56) (63)
Net cash used in investing activities (1,139) (851)
Cash Flows from Financing Activities    
Retirement of debt (92) (18)
Increase in notes payable 45 0
Issuance of common stock 7 20
Payment of dividends on common and preferred stock (273) (253)
Proceeds from the sale of membership interest in VIE to tax equity investor 49 0
Net cash used in discontinued operations 0 (138)
Other financing costs (36) (20)
Net cash used in financing activities (300) (409)
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts (380) 107
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 476 185
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 96 292
Non‑cash transactions    
Capital expenditures not paid $ 162 $ 138
v3.22.2
CMS Energy Corporation Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Current Assets    
Cash and cash equivalents $ 77 $ 452
Restricted cash and cash equivalents 19 24
Accounts receivable and accrued revenue 991 931
Accounts receivable – related parties 13 12
Inventories at average cost    
Gas in underground storage 606 462
Materials and supplies 184 168
Generating plant fuel stock 55 37
Deferred property taxes 258 356
Regulatory assets 23 46
Prepayments and other current assets 167 139
Total current assets 2,393 2,627
Plant, Property, and Equipment    
Plant, property, and equipment, gross 29,426 29,893
Less accumulated depreciation and amortization 8,711 8,502
Plant, property, and equipment, net 20,715 21,391
Construction work in progress 912 961
Total plant, property, and equipment 21,627 22,352
Other Non‑current Assets    
Regulatory assets 3,367 2,259
Accounts receivable 29 30
Investments 69 71
Other 1,555 1,414
Total other non‑current assets 5,020 3,774
Total Assets 29,040 28,753
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 674 382
Notes payable 45 0
Accounts payable 906 875
Accounts payable – related parties 8 11
Accrued rate refunds 0 12
Accrued interest 107 107
Accrued taxes 392 515
Regulatory liabilities 76 146
Other current liabilities 181 156
Total current liabilities 2,389 2,204
Non‑current Liabilities    
Long-term debt 11,667 12,046
Non-current portion of finance leases and other financing 44 46
Regulatory liabilities 3,873 3,802
Postretirement benefits 137 142
Asset retirement obligations 620 628
Deferred investment tax credit 131 112
Deferred income taxes 2,326 2,210
Other non‑current liabilities 382 375
Total non‑current liabilities 19,180 19,361
Commitments and Contingencies
Common stockholders’ equity    
Common stock 3 3
Other paid-in capital 5,417 5,406
Accumulated other comprehensive loss (52) (59)
Retained earnings 1,286 1,057
Total common stockholders’ equity 6,654 6,407
Cumulative preferred stock 224 224
Total stockholders’ equity 6,878 6,631
Noncontrolling interests 593 557
Total equity 7,471 7,188
Total Liabilities and Equity $ 29,040 $ 28,753
v3.22.2
CMS Energy Corporation Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Accounts receivable and accrued revenue, allowance $ 24 $ 20
Common stock authorized (in shares) 350,000,000.0 350,000,000.0
Common stock outstanding (in shares) 290,200,000 289,800,000
Series C Preferred Stock Depositary Shares    
Preferred stock authorized (in shares) 9,200,000 9,200,000
Preferred stock outstanding (in shares) 9,200,000 9,200,000
v3.22.2
CMS Energy Corporation Consolidated Statements of Changes in Equity (Unaudited) - USD ($)
$ in Millions
Total
Common Stock
Other Paid-in Capital
Accumulated Other Comprehensive Loss
Retirement benefits liability
Derivative instruments
Retained Earnings
Cumulative Preferred Stock
Noncontrolling Interests
Total Equity at Beginning of Period at Dec. 31, 2020 $ 6,077 $ 3 $ 5,365 $ (86) $ (80) $ (6) $ 214   $ 581
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Common stock issued     33            
Common stock repurchased     (9)            
Net gain arising during the period 0       0        
Amortization of net actuarial loss 4       4        
Amortization of prior service credit (1)       (1)        
Unrealized gain on derivative instruments 1         1      
Reclassification adjustments included in net income 0         0      
Net Income 513           525   (12)
Dividends declared on common stock             (252)    
Dividends declared on preferred stock             0    
Sale of membership interest in VIE to tax equity investor                 0
Contribution from noncontrolling interest                 1
Distributions and other changes in noncontrolling interests                 (1)
Total Equity at End of Period at Jun. 30, 2021 $ 6,366 3 5,389 (82) (77) (5) 487 $ 0 569
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Dividends declared per common share (in dollars per share) $ 0.8700                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0                
Total Equity at Beginning of Period at Mar. 31, 2021 $ 6,302 3 5,371 (84) (79) (5) 437   575
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Common stock issued     18            
Common stock repurchased     0            
Net gain arising during the period 0       0        
Amortization of net actuarial loss 3       3        
Amortization of prior service credit (1)       (1)        
Unrealized gain on derivative instruments 0         0      
Reclassification adjustments included in net income 0         0      
Net Income 171           176   (5)
Dividends declared on common stock             (126)    
Dividends declared on preferred stock             0    
Sale of membership interest in VIE to tax equity investor                 0
Contribution from noncontrolling interest                 0
Distributions and other changes in noncontrolling interests                 (1)
Total Equity at End of Period at Jun. 30, 2021 $ 6,366 3 5,389 (82) (77) (5) 487 0 569
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Dividends declared per common share (in dollars per share) $ 0.4350                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0                
Total Equity at Beginning of Period at Dec. 31, 2021 $ 7,188 3 5,406 (59) (56) (3) 1,057   557
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Common stock issued     21            
Common stock repurchased     (10)            
Net gain arising during the period 2       2        
Amortization of net actuarial loss 2       2        
Amortization of prior service credit 0       0        
Unrealized gain on derivative instruments 2         2      
Reclassification adjustments included in net income (1)         (1)      
Net Income 487           501   (14)
Dividends declared on common stock             (267)    
Dividends declared on preferred stock             (5)    
Sale of membership interest in VIE to tax equity investor                 49
Contribution from noncontrolling interest                 2
Distributions and other changes in noncontrolling interests                 (1)
Total Equity at End of Period at Jun. 30, 2022 $ 7,471 3 5,417 (52) (52) 0 1,286 224 593
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Dividends declared per common share (in dollars per share) $ 0.9200                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0.5250                
Total Equity at Beginning of Period at Mar. 31, 2022 $ 7,405 3 5,406 (54) (53) (1) 1,275   551
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Common stock issued     11            
Common stock repurchased     0            
Net gain arising during the period 0       0        
Amortization of net actuarial loss 1       1        
Amortization of prior service credit 0       0        
Unrealized gain on derivative instruments 0         0      
Reclassification adjustments included in net income (1)         (1)      
Net Income 142           148   (6)
Dividends declared on common stock             (134)    
Dividends declared on preferred stock             (3)    
Sale of membership interest in VIE to tax equity investor                 49
Contribution from noncontrolling interest                 0
Distributions and other changes in noncontrolling interests                 (1)
Total Equity at End of Period at Jun. 30, 2022 $ 7,471 $ 3 $ 5,417 $ (52) $ (52) $ 0 $ 1,286 $ 224 $ 593
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Dividends declared per common share (in dollars per share) $ 0.4600                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0.2625                
v3.22.2
Consumers Energy Company Consolidated Statements of Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Operating Revenue $ 1,920 $ 1,558 $ 4,294 $ 3,571
Operating Expenses        
Operating Income 239 252 695 682
Other Income (Expense)        
Interest income 1 1 2 2
Allowance for equity funds used during construction 1 2 3 3
Non-operating retirement benefits, net 52 40 100 81
Other income 0 5 1 6
Other expense (11) (2) (15) (4)
Total other income 43 48 91 92
Interest Charges        
Interest on long-term debt 122 120 243 239
Interest expense – related parties 3 3 6 6
Other interest expense 1 2 2 5
Allowance for borrowed funds used during construction 0 0 (1) (1)
Total interest charges 126 125 250 249
Income Before Income Taxes 156 175 536 525
Income Tax Expense 14 22 53 64
Net Income Attributable to CMS Energy 148 176 501 525
Preferred Stock Dividends 3 0 5 0
Net income (loss) available to common stockholders 145 176 496 525
Consumers Energy Company        
Operating Revenue 1,802 1,493 4,085 3,430
Operating Expenses        
Fuel for electric generation 173 87 297 193
Purchased and interchange power 468 383 905 750
Purchased power – related parties 18 17 35 35
Cost of gas sold 213 94 678 372
Maintenance and other operating expenses 370 339 683 631
Depreciation and amortization 233 234 569 563
General taxes 86 82 215 200
Total operating expenses 1,561 1,236 3,382 2,744
Operating Income 241 257 703 686
Other Income (Expense)        
Interest income 0 0 1 1
Interest and dividend income – related parties 2 2 3 3
Allowance for equity funds used during construction 1 2 3 3
Non-operating retirement benefits, net 49 38 94 76
Other income 1 5 1 6
Other expense (11) (2) (14) (4)
Total other income 42 45 88 85
Interest Charges        
Interest on long-term debt 75 73 150 146
Interest expense – related parties 3 3 6 6
Other interest expense 0 2 1 4
Allowance for borrowed funds used during construction 0 0 (1) (1)
Total interest charges 78 78 156 155
Income Before Income Taxes 205 224 635 616
Income Tax Expense 32 34 79 90
Net Income Attributable to CMS Energy 173 190 556 526
Preferred Stock Dividends 1 1 1 1
Net income (loss) available to common stockholders $ 172 $ 189 $ 555 $ 525
v3.22.2
Consumers Energy Company Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Net Income $ 142 $ 171 $ 487 $ 513
Retirement Benefits Liability        
Amortization of net actuarial loss, net of tax 1 3 2 4
Other Comprehensive Income 2 2 7 4
Comprehensive Income 144 173 494 517
Consumers Energy Company        
Net Income 173 190 556 526
Retirement Benefits Liability        
Amortization of net actuarial loss, net of tax 0 1 1 1
Other Comprehensive Income 0 1 1 1
Comprehensive Income $ 173 $ 191 $ 557 $ 527
v3.22.2
Consumers Energy Company Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Amortization of net actuarial loss, tax $ 1 $ 1 $ 1 $ 1
Consumers Energy Company        
Amortization of net actuarial loss, tax $ 0 $ 0 $ 0 $ 0
v3.22.2
Consumers Energy Company Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Cash Flows from Operating Activities    
Net Income $ 487 $ 513
Adjustments to reconcile net income to net cash provided by operating activities    
Deferred income taxes and investment tax credits 39 75
Other non‑cash operating activities and reconciling adjustments (33) (29)
Changes in assets and liabilities    
Accounts receivable and accrued revenue (80) 101
Inventories (179) 36
Accounts payable and accrued rate refunds 53 0
Other current assets and liabilities 117 78
Other non‑current assets and liabilities 73 34
Net cash provided by operating activities 1,059 1,367
Cash Flows from Investing Activities    
Capital expenditures (excludes assets placed under finance lease) (1,088) (878)
Cost to retire property and other investing activities (56) (63)
Net cash used in investing activities (1,139) (851)
Cash Flows from Financing Activities    
Retirement of debt (92) (18)
Increase in notes payable 45 0
Payment of dividends on common and preferred stock (273) (253)
Other financing costs (36) (20)
Net cash used in financing activities (300) (409)
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts (380) 107
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 476 185
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 96 292
Non‑cash transactions    
Capital expenditures not paid 162 138
Consumers Energy Company    
Cash Flows from Operating Activities    
Net Income 556 526
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation and amortization 569 563
Deferred income taxes and investment tax credits 55 89
Other non‑cash operating activities and reconciling adjustments (33) (26)
Changes in assets and liabilities    
Accounts receivable and accrued revenue (60) 104
Inventories (178) 35
Accounts payable and accrued rate refunds 44 0
Other current assets and liabilities 146 76
Other non‑current assets and liabilities 60 33
Net cash provided by operating activities 1,159 1,400
Cash Flows from Investing Activities    
Capital expenditures (excludes assets placed under finance lease) (1,040) (873)
Cost to retire property and other investing activities (54) (57)
Net cash used in investing activities (1,094) (930)
Cash Flows from Financing Activities    
Retirement of debt (14) (13)
Increase in notes payable 45 0
Decrease in notes payable – related parties (360) (307)
Stockholder contribution 685 275
Payment of dividends on common and preferred stock (434) (381)
Other financing costs (5) (11)
Net cash used in financing activities (83) (437)
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts (18) 33
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 44 35
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 26 68
Non‑cash transactions    
Capital expenditures not paid $ 155 $ 134
v3.22.2
Consumers Energy Company Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Current Assets    
Cash and cash equivalents $ 77 $ 452
Restricted cash and cash equivalents 19 24
Accounts receivable and accrued revenue 991 931
Accounts receivable – related parties 13 12
Inventories at average cost    
Gas in underground storage 606 462
Materials and supplies 184 168
Generating plant fuel stock 55 37
Deferred property taxes 258 356
Regulatory assets 23 46
Prepayments and other current assets 167 139
Total current assets 2,393 2,627
Other Non‑current Assets    
Regulatory assets 3,367 2,259
Accounts receivable 29 30
Other 1,555 1,414
Total other non‑current assets 5,020 3,774
Total Assets 29,040 28,753
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 674 382
Notes payable 45 0
Accounts payable 906 875
Accounts payable – related parties 8 11
Accrued rate refunds 0 12
Accrued interest 107 107
Accrued taxes 392 515
Regulatory liabilities 76 146
Other current liabilities 181 156
Total current liabilities 2,389 2,204
Non‑current Liabilities    
Long-term debt 11,667 12,046
Non-current portion of finance leases and other financing 44 46
Regulatory liabilities 3,873 3,802
Postretirement benefits 137 142
Asset retirement obligations 620 628
Deferred investment tax credit 131 112
Deferred income taxes 2,326 2,210
Other non‑current liabilities 382 375
Total non‑current liabilities 19,180 19,361
Commitments and Contingencies
Common stockholders’ equity    
Common stock 3 3
Other paid-in capital 5,417 5,406
Accumulated other comprehensive loss (52) (59)
Retained earnings 1,286 1,057
Total common stockholders’ equity 6,654 6,407
Cumulative preferred stock 224 224
Total stockholders’ equity 6,878 6,631
Total Liabilities and Equity 29,040 28,753
Consumers Energy Company    
Current Assets    
Cash and cash equivalents 8 22
Restricted cash and cash equivalents 18 22
Accounts receivable and accrued revenue 944 905
Accounts receivable – related parties 9 9
Inventories at average cost    
Gas in underground storage 606 462
Materials and supplies 179 163
Generating plant fuel stock 51 33
Deferred property taxes 258 356
Regulatory assets 23 46
Prepayments and other current assets 108 103
Total current assets 2,204 2,121
Plant, Property, and Equipment    
Plant, property, and equipment, gross 28,304 28,771
Less accumulated depreciation and amortization 8,561 8,371
Plant, property, and equipment, net 19,743 20,400
Construction work in progress 838 915
Total plant, property, and equipment 20,581 21,315
Other Non‑current Assets    
Regulatory assets 3,367 2,259
Accounts receivable 35 36
Accounts and notes receivable – related parties 100 102
Other 1,428 1,307
Total other non‑current assets 4,930 3,704
Total Assets 27,715 27,140
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 674 374
Notes payable 45 0
Notes payable – related parties 32 392
Accounts payable 854 835
Accounts payable – related parties 15 16
Accrued rate refunds 0 12
Accrued interest 75 75
Accrued taxes 427 529
Regulatory liabilities 76 146
Other current liabilities 149 109
Total current liabilities 2,347 2,488
Non‑current Liabilities    
Long-term debt 7,738 8,050
Non-current portion of finance leases and other financing 44 46
Regulatory liabilities 3,873 3,802
Postretirement benefits 101 104
Asset retirement obligations 596 605
Deferred investment tax credit 131 112
Deferred income taxes 2,470 2,340
Other non‑current liabilities 328 314
Total non‑current liabilities 15,281 15,373
Commitments and Contingencies
Common stockholders’ equity    
Common stock 841 841
Other paid-in capital 7,284 6,599
Accumulated other comprehensive loss (31) (32)
Retained earnings 1,956 1,834
Total common stockholders’ equity 10,050 9,242
Cumulative preferred stock 37 37
Total stockholders’ equity 10,087 9,279
Total Liabilities and Equity $ 27,715 $ 27,140
v3.22.2
Consumers Energy Company Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Accounts receivable and accrued revenue, allowance $ 24 $ 20
Common stock authorized (in shares) 350,000,000.0 350,000,000.0
Common stock outstanding (in shares) 290,200,000 289,800,000
Consumers Energy Company    
Accounts receivable and accrued revenue, allowance $ 24 $ 20
Common stock authorized (in shares) 125,000,000.0 125,000,000.0
Common stock outstanding (in shares) 84,100,000 84,100,000
Preferred stock authorized (in shares) 7,500,000 7,500,000
Preferred stock outstanding (in shares) 400,000 400,000
v3.22.2
Consumers Energy Company Consolidated Statements of Changes in Equity (Unaudited) - USD ($)
$ in Millions
Total
Common Stock
Other Paid-in Capital
Accumulated Other Comprehensive Loss
Retirement benefits liability
Retained Earnings
Cumulative Preferred Stock
Consumers Energy Company
Consumers Energy Company
Common Stock
Consumers Energy Company
Other Paid-in Capital
Consumers Energy Company
Accumulated Other Comprehensive Loss
Consumers Energy Company
Retirement benefits liability
Consumers Energy Company
Retained Earnings
Consumers Energy Company
Cumulative Preferred Stock
Total Equity at Beginning of Period at Dec. 31, 2020 $ 6,077 $ 3 $ 5,365 $ (86) $ (80) $ 214   $ 8,556 $ 841 $ 6,024 $ (36) $ (36) $ 1,690 $ 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   275        
Amortization of net actuarial loss 4       4     1       1    
Net Income 513         525   526         526  
Dividends declared on common stock           (252)             (380)  
Dividends declared on preferred stock           0             (1)  
Total Equity at End of Period at Jun. 30, 2021 6,366 3 5,389 (82) (77) 487 $ 0 8,977 841 6,299 (35) (35) 1,835 37
Total Equity at Beginning of Period at Mar. 31, 2021 6,302 3 5,371 (84) (79) 437   8,766 841 6,174 (36) (36) 1,750 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   125        
Amortization of net actuarial loss 3       3     1       1    
Net Income 171         176   190         190  
Dividends declared on common stock           (126)             (104)  
Dividends declared on preferred stock           0             (1)  
Total Equity at End of Period at Jun. 30, 2021 6,366 3 5,389 (82) (77) 487 0 8,977 841 6,299 (35) (35) 1,835 37
Total Equity at Beginning of Period at Dec. 31, 2021 7,188 3 5,406 (59) (56) 1,057   9,279 841 6,599 (32) (32) 1,834 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   685        
Amortization of net actuarial loss 2       2     1       1    
Net Income 487         501   556         556  
Dividends declared on common stock           (267)             (433)  
Dividends declared on preferred stock           (5)             (1)  
Total Equity at End of Period at Jun. 30, 2022 7,471 3 5,417 (52) (52) 1,286 224 10,087 841 7,284 (31) (31) 1,956 37
Total Equity at Beginning of Period at Mar. 31, 2022 7,405 3 5,406 (54) (53) 1,275   9,838 841 7,049 (31) (31) 1,942 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   235        
Amortization of net actuarial loss 1       1     0       0    
Net Income 142         148   173         173  
Dividends declared on common stock           (134)             (158)  
Dividends declared on preferred stock           (3)             (1)  
Total Equity at End of Period at Jun. 30, 2022 $ 7,471 $ 3 $ 5,417 $ (52) $ (52) $ 1,286 $ 224 $ 10,087 $ 841 $ 7,284 $ (31) $ (31) $ 1,956 $ 37
v3.22.2
CMS Energy Corporation Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Income Statement [Abstract]        
Tax effect of discontinued operations $ 0 $ 7 $ 1 $ 16
v3.22.2
Regulatory Matters
 6 Months Ended
Jun. 30, 2022
Public Utilities, General Disclosures [Line Items]  
Regulatory Matters Regulatory Matters
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, the Residential Customer Group, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings.
There are multiple appeals pending that involve various issues concerning cost recovery from customers, the MPSC’s authority to approve voluntary revenue refunds, and other matters. Consumers is unable to predict the outcome of these appeals.
Electric Rate Case Proceedings: In Consumers’ recent electric rate proceedings, the MPSC and the MPSC Staff have recommended that Consumers be disallowed recovery of certain categories of capital expenditures.
In December 2021, the MPSC issued a final order in Consumers’ 2021 general electric rate case, disallowing cost recovery for fleet assets and certain other categories of recently completed capital expenditures incurred by Consumers. As a result, Consumers impaired a portion of these capital expenditures in 2021.
For other categories of capital expenditures, the MPSC ordered Consumers to, and Consumers believes it can, provide additional cost/benefit analysis and other information to support cost recovery. Further, some of these are joint (or common) projects undertaken by both the electric and gas business units. Consumers
has incurred $22 million related to these programs as of June 30, 2022 and, for certain ongoing projects, expects to incur additional capital expenditures during 2022 and beyond.
While Consumers has provided the additional analysis and information requested by the MPSC to provide evidence of the prudency of such capital expenditures in its pending electric rate case proceeding, it is reasonably possible that the MPSC will disallow some or all of these capital expenditures. Any material disallowance of incurred capital costs could negatively affect CMS Energy’s and Consumers’ future results of operations. Consumers expects the MPSC to issue a final order in its pending electric rate case by March 2023. Consumers cannot predict the outcome of this proceeding.
In January 2022, Consumers filed a petition for rehearing that, among other things, requested that the MPSC reconsider its disallowance in the 2021 electric rate case of $11 million in capital expenditures for which the MPSC had already approved recovery in a previous rate order. In March 2022, the MPSC approved Consumers’ rehearing petition in full and authorized that the $11 million of capital expenditures be included in rate base, which resulted an additional annual rate increase of $5 million prospectively.
Energy Waste Reduction Plan Incentive: Consumers filed its 2021 energy waste reduction reconciliation in May 2022, requesting the MPSC’s approval to collect from customers the maximum performance incentive of $46 million for exceeding statutory savings targets in 2021. Consumers recognized incentive revenue under this program of $46 million in 2021.
Costs of Coal-fueled Electric Generating Units to be Retired: In June 2022, the MPSC approved the settlement agreement reached in Consumers’ 2021 IRP, under which Consumers plans to retire the J.H. Campbell coal-fueled generating units in 2025. Under the 2021 IRP, upon the units’ retirement, Consumers will receive regulatory asset treatment to recover their remaining book value, as well as 9.0 percent return on equity, over their original design lives. Until retirement, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases.
In June 2022, Consumers removed from total plant, property, and equipment an amount of $1.3 billion, representing the projected remaining book value of the electric generating units upon their retirement, and recorded it as a non-current regulatory asset on its consolidated balance sheets.
Voluntary Radio Tower Asset Sale Gain Share: In May 2022, Consumers completed a sale of various radio tower assets. In June 2022, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with its electric and gas utility customers. Of the amount to be shared with customers, Consumers proposes to share two-thirds with electric customers through additional spending for tree trimming in 2022 and one-third with gas customers through a donation to nonprofit agencies that provide customer energy bill assistance. As a result, Consumers deferred $7 million of the gain in June 2022, and recorded it as a non-current regulatory liability on its consolidated balance sheets.
Gas Cost Recovery and Power Supply Cost Recovery: Due to rising natural gas prices, Consumers’gas fuel costs for the six months ended June 30, 2022 were higher than those projected in its 2022-2023 GCR plan. As a result, Consumers had recorded a $23 million underrecovery in accounts receivable and accrued revenue on its consolidated balance sheets at June 30, 2022. Consumers expects that higher gas fuel costs will continue into the 2022-2023 GCR plan year. Consequently, in June 2022, Consumers filed with the MPSC a revised GCR plan requesting an increase to the GCR factor and to self-implement that increased factor in October 2022.
The recent spikes in fuel prices also increased the cost of electric generation and resulted in higher market prices for electricity. As a result, Consumers’ power supply costs for the six months ended June 30, 2022 were significantly higher than those projected in the 2022 PSCR plan it submitted to the MPSC in
September 2021. Consequently, Consumers had recorded a $153 million underrecovery in accounts receivable and accrued revenue on its consolidated balance sheets at June 30, 2022. The statutory window to file a revised PSCR plan and self-implement an increased PSCR factor closed in March 2022. Consumers expects to include the 2022 underrecovery in its 2023 PSCR plan to be filed with the MPSC in September 2022.
Consumers Energy Company  
Public Utilities, General Disclosures [Line Items]  
Regulatory Matters Regulatory Matters
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, the Residential Customer Group, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings.
There are multiple appeals pending that involve various issues concerning cost recovery from customers, the MPSC’s authority to approve voluntary revenue refunds, and other matters. Consumers is unable to predict the outcome of these appeals.
Electric Rate Case Proceedings: In Consumers’ recent electric rate proceedings, the MPSC and the MPSC Staff have recommended that Consumers be disallowed recovery of certain categories of capital expenditures.
In December 2021, the MPSC issued a final order in Consumers’ 2021 general electric rate case, disallowing cost recovery for fleet assets and certain other categories of recently completed capital expenditures incurred by Consumers. As a result, Consumers impaired a portion of these capital expenditures in 2021.
For other categories of capital expenditures, the MPSC ordered Consumers to, and Consumers believes it can, provide additional cost/benefit analysis and other information to support cost recovery. Further, some of these are joint (or common) projects undertaken by both the electric and gas business units. Consumers
has incurred $22 million related to these programs as of June 30, 2022 and, for certain ongoing projects, expects to incur additional capital expenditures during 2022 and beyond.
While Consumers has provided the additional analysis and information requested by the MPSC to provide evidence of the prudency of such capital expenditures in its pending electric rate case proceeding, it is reasonably possible that the MPSC will disallow some or all of these capital expenditures. Any material disallowance of incurred capital costs could negatively affect CMS Energy’s and Consumers’ future results of operations. Consumers expects the MPSC to issue a final order in its pending electric rate case by March 2023. Consumers cannot predict the outcome of this proceeding.
In January 2022, Consumers filed a petition for rehearing that, among other things, requested that the MPSC reconsider its disallowance in the 2021 electric rate case of $11 million in capital expenditures for which the MPSC had already approved recovery in a previous rate order. In March 2022, the MPSC approved Consumers’ rehearing petition in full and authorized that the $11 million of capital expenditures be included in rate base, which resulted an additional annual rate increase of $5 million prospectively.
Energy Waste Reduction Plan Incentive: Consumers filed its 2021 energy waste reduction reconciliation in May 2022, requesting the MPSC’s approval to collect from customers the maximum performance incentive of $46 million for exceeding statutory savings targets in 2021. Consumers recognized incentive revenue under this program of $46 million in 2021.
Costs of Coal-fueled Electric Generating Units to be Retired: In June 2022, the MPSC approved the settlement agreement reached in Consumers’ 2021 IRP, under which Consumers plans to retire the J.H. Campbell coal-fueled generating units in 2025. Under the 2021 IRP, upon the units’ retirement, Consumers will receive regulatory asset treatment to recover their remaining book value, as well as 9.0 percent return on equity, over their original design lives. Until retirement, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases.
In June 2022, Consumers removed from total plant, property, and equipment an amount of $1.3 billion, representing the projected remaining book value of the electric generating units upon their retirement, and recorded it as a non-current regulatory asset on its consolidated balance sheets.
Voluntary Radio Tower Asset Sale Gain Share: In May 2022, Consumers completed a sale of various radio tower assets. In June 2022, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with its electric and gas utility customers. Of the amount to be shared with customers, Consumers proposes to share two-thirds with electric customers through additional spending for tree trimming in 2022 and one-third with gas customers through a donation to nonprofit agencies that provide customer energy bill assistance. As a result, Consumers deferred $7 million of the gain in June 2022, and recorded it as a non-current regulatory liability on its consolidated balance sheets.
Gas Cost Recovery and Power Supply Cost Recovery: Due to rising natural gas prices, Consumers’gas fuel costs for the six months ended June 30, 2022 were higher than those projected in its 2022-2023 GCR plan. As a result, Consumers had recorded a $23 million underrecovery in accounts receivable and accrued revenue on its consolidated balance sheets at June 30, 2022. Consumers expects that higher gas fuel costs will continue into the 2022-2023 GCR plan year. Consequently, in June 2022, Consumers filed with the MPSC a revised GCR plan requesting an increase to the GCR factor and to self-implement that increased factor in October 2022.
The recent spikes in fuel prices also increased the cost of electric generation and resulted in higher market prices for electricity. As a result, Consumers’ power supply costs for the six months ended June 30, 2022 were significantly higher than those projected in the 2022 PSCR plan it submitted to the MPSC in
September 2021. Consequently, Consumers had recorded a $153 million underrecovery in accounts receivable and accrued revenue on its consolidated balance sheets at June 30, 2022. The statutory window to file a revised PSCR plan and self-implement an increased PSCR factor closed in March 2022. Consumers expects to include the 2022 underrecovery in its 2023 PSCR plan to be filed with the MPSC in September 2022.
v3.22.2
Contingencies and Commitments
 6 Months Ended
Jun. 30, 2022
Other Commitments [Line Items]  
Contingencies and Commitments Contingencies and Commitments
CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter.
CMS Energy Contingencies
Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which was renewed in January 2022 and is valid through 2025.
At June 30, 2022, CMS Energy had a recorded liability of $44 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $55 million. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2022 and in each of the next five years:
In Millions
202220232024202520262027
CMS Energy
Long-term leachate disposal and operating and maintenance costs$2 $4 $4 $4 $4 $4 
CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter.
Consumers Electric Utility Contingencies
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations.
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $2 million and $4 million. At June 30, 2022, Consumers had a recorded liability of $2 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount.
Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 2011, Consumers received a follow-up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river.
Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At June 30, 2022, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount.
The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability.
Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome.
Electric Lineworker Arbitration: In February 2021, the Utility Workers Union of America, AFL-CIO requested that Consumers conduct wage reevaluation of various electric lineworker positions. When the union and Consumers did not reach agreement on the appropriate wage levels, the union initiated arbitration proceedings. Arbitration hearings began in October 2021, but were postponed and resumed in January 2022. In May 2022, Consumers and the union entered into a settlement agreement that resulted in a prospective wage adjustment for certain electric lineworker positions.
Ludington Plant Overhaul Contract Dispute: Consumers and DTE Electric, co-owners of Ludington, are parties to a 2010 engineering, procurement, and construction contract with TAES, under which TAES is charged with performing a major overhaul and upgrade of Ludington. TAES’ performance has been unsatisfactory and resulted in overhaul project delays. Consumers and DTE Electric have demanded that TAES provide a comprehensive plan to resolve quality control concerns, including adherence to its warranty commitments and other contractual obligations. Consumers and DTE Electric have taken extensive efforts to resolve these issues with TAES, including a formal demand to TAES’ parent, Toshiba
Corporation, under a parent guaranty it provided in the contract. TAES has not provided a comprehensive plan or otherwise met its performance obligations.
In order to enforce the contract, Consumers and DTE Electric filed a complaint against TAES and Toshiba Corporation in the U.S. District Court for the Eastern District of Michigan in April 2022. In June 2022, TAES and Toshiba Corporation filed a motion to dismiss the complaint, along with an answer and counterclaims seeking approximately $15 million in damages related to payments allegedly owed under the parties’ contract. As a co-owner of Ludington, Consumers would be liable for 51 percent of any such damages. Consumers believes the motion to dismiss and counterclaims are without merit, but cannot predict the financial impact or outcome of this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity.
J.H. Campbell 3 Plant Retirement Contract Dispute: In May 2022, Consumers filed a complaint against Wolverine Power Supply Cooperative, Inc. in the Ottawa County Circuit Court and requested a ruling that Consumers has sole authority to decide to retire the J.H. Campbell 3 coal-fueled generating unit under the unit’s Joint Ownership and Operating Agreement. In July 2022, Wolverine Power Supply Cooperative, Inc. filed an answer, affirmative defenses, and a counterclaim seeking approximately $37 million in damages allegedly caused by Consumers’ decision to retire the unit before the end of its useful life. In July 2022, Consumers filed a motion for summary disposition, which is scheduled to be heard in August 2022. Consumers believes Wolverine Power Supply Cooperative, Inc.’s claims have no merit, but cannot predict the final impact or outcome on this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity.
Consumers Gas Utility Contingencies
Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site.
At June 30, 2022, Consumers had a recorded liability of $57 million for its remaining obligations for these sites. This amount represents the present value of long-term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $60 million. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2022 and in each of the next five years:
In Millions
202220232024202520262027
Consumers
Remediation and other response activity costs$3 $9 $24 $11 $1 $1 
Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability.
Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten-year period. At June 30, 2022, Consumers had a regulatory asset of $107 million related to the MGP sites.
Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million. At June 30, 2022, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount.
Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity.
In September 2020, the MPSC disallowed the recovery of $7 million in incremental gas purchases related to the fire. In January 2021, the MPSC denied Consumers’ petition for a rehearing challenging this disallowance. In February 2021, Consumers filed an appeal of the MPSC’s denial with the Michigan Court of Appeals.
In December 2021, Consumers filed a gas rate case with the MPSC that included a request for recovery of the capital expenditures incurred to restore and modify the compressor station. Consumers incurred capital expenditures of $17 million during 2020 and 2021 to restore and modify the compressor station.
During the six months ended June 30, 2022, Consumers received insurance proceeds of $13 million, representing recovery of costs incurred to restore the compressor station and incremental gas purchases related to the fire. Consumers had recognized the insurance recovery during 2021.
In June 2022, Consumers, the MPSC Staff, and other intervenors reached a settlement of the gas rate case and the MPSC approved it in July 2022. As a part of the settlement agreement, Consumers agreed, at this time, to not seek recovery of the capital expenditures, net of insurance proceeds, related to restoring and modifying the Ray Compressor Station. As a result, Consumers recorded an impairment charge of $10 million within maintenance and other operating expenses on its consolidated statements of income for the three and six months ended June 30, 2022.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2022:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousindefinite$342 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite226 4 
Guarantee3
July 2011indefinite30 — 
Consumers
Guarantee3
July 2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in NWO Holdco and Aviator Wind to tax equity investors. CMS Enterprises 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, CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in NWO Holdco and Aviator Wind, see Note 12, Variable Interest Entities.
2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 13, Exit Activities and Discontinued Operations. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. At June 30, 2022, the carrying value of these indemnity obligations was $1 million. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote.
Other Contingencies
In addition to the matters disclosed in this Note and Note 1, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits,
proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity.
Consumers Energy Company  
Other Commitments [Line Items]  
Contingencies and Commitments Contingencies and Commitments
CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter.
CMS Energy Contingencies
Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which was renewed in January 2022 and is valid through 2025.
At June 30, 2022, CMS Energy had a recorded liability of $44 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $55 million. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2022 and in each of the next five years:
In Millions
202220232024202520262027
CMS Energy
Long-term leachate disposal and operating and maintenance costs$2 $4 $4 $4 $4 $4 
CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter.
Consumers Electric Utility Contingencies
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations.
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $2 million and $4 million. At June 30, 2022, Consumers had a recorded liability of $2 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount.
Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 2011, Consumers received a follow-up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river.
Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At June 30, 2022, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount.
The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability.
Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome.
Electric Lineworker Arbitration: In February 2021, the Utility Workers Union of America, AFL-CIO requested that Consumers conduct wage reevaluation of various electric lineworker positions. When the union and Consumers did not reach agreement on the appropriate wage levels, the union initiated arbitration proceedings. Arbitration hearings began in October 2021, but were postponed and resumed in January 2022. In May 2022, Consumers and the union entered into a settlement agreement that resulted in a prospective wage adjustment for certain electric lineworker positions.
Ludington Plant Overhaul Contract Dispute: Consumers and DTE Electric, co-owners of Ludington, are parties to a 2010 engineering, procurement, and construction contract with TAES, under which TAES is charged with performing a major overhaul and upgrade of Ludington. TAES’ performance has been unsatisfactory and resulted in overhaul project delays. Consumers and DTE Electric have demanded that TAES provide a comprehensive plan to resolve quality control concerns, including adherence to its warranty commitments and other contractual obligations. Consumers and DTE Electric have taken extensive efforts to resolve these issues with TAES, including a formal demand to TAES’ parent, Toshiba
Corporation, under a parent guaranty it provided in the contract. TAES has not provided a comprehensive plan or otherwise met its performance obligations.
In order to enforce the contract, Consumers and DTE Electric filed a complaint against TAES and Toshiba Corporation in the U.S. District Court for the Eastern District of Michigan in April 2022. In June 2022, TAES and Toshiba Corporation filed a motion to dismiss the complaint, along with an answer and counterclaims seeking approximately $15 million in damages related to payments allegedly owed under the parties’ contract. As a co-owner of Ludington, Consumers would be liable for 51 percent of any such damages. Consumers believes the motion to dismiss and counterclaims are without merit, but cannot predict the financial impact or outcome of this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity.
J.H. Campbell 3 Plant Retirement Contract Dispute: In May 2022, Consumers filed a complaint against Wolverine Power Supply Cooperative, Inc. in the Ottawa County Circuit Court and requested a ruling that Consumers has sole authority to decide to retire the J.H. Campbell 3 coal-fueled generating unit under the unit’s Joint Ownership and Operating Agreement. In July 2022, Wolverine Power Supply Cooperative, Inc. filed an answer, affirmative defenses, and a counterclaim seeking approximately $37 million in damages allegedly caused by Consumers’ decision to retire the unit before the end of its useful life. In July 2022, Consumers filed a motion for summary disposition, which is scheduled to be heard in August 2022. Consumers believes Wolverine Power Supply Cooperative, Inc.’s claims have no merit, but cannot predict the final impact or outcome on this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity.
Consumers Gas Utility Contingencies
Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site.
At June 30, 2022, Consumers had a recorded liability of $57 million for its remaining obligations for these sites. This amount represents the present value of long-term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $60 million. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2022 and in each of the next five years:
In Millions
202220232024202520262027
Consumers
Remediation and other response activity costs$3 $9 $24 $11 $1 $1 
Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability.
Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten-year period. At June 30, 2022, Consumers had a regulatory asset of $107 million related to the MGP sites.
Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million. At June 30, 2022, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount.
Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity.
In September 2020, the MPSC disallowed the recovery of $7 million in incremental gas purchases related to the fire. In January 2021, the MPSC denied Consumers’ petition for a rehearing challenging this disallowance. In February 2021, Consumers filed an appeal of the MPSC’s denial with the Michigan Court of Appeals.
In December 2021, Consumers filed a gas rate case with the MPSC that included a request for recovery of the capital expenditures incurred to restore and modify the compressor station. Consumers incurred capital expenditures of $17 million during 2020 and 2021 to restore and modify the compressor station.
During the six months ended June 30, 2022, Consumers received insurance proceeds of $13 million, representing recovery of costs incurred to restore the compressor station and incremental gas purchases related to the fire. Consumers had recognized the insurance recovery during 2021.
In June 2022, Consumers, the MPSC Staff, and other intervenors reached a settlement of the gas rate case and the MPSC approved it in July 2022. As a part of the settlement agreement, Consumers agreed, at this time, to not seek recovery of the capital expenditures, net of insurance proceeds, related to restoring and modifying the Ray Compressor Station. As a result, Consumers recorded an impairment charge of $10 million within maintenance and other operating expenses on its consolidated statements of income for the three and six months ended June 30, 2022.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2022:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousindefinite$342 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite226 4 
Guarantee3
July 2011indefinite30 — 
Consumers
Guarantee3
July 2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in NWO Holdco and Aviator Wind to tax equity investors. CMS Enterprises 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, CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in NWO Holdco and Aviator Wind, see Note 12, Variable Interest Entities.
2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 13, Exit Activities and Discontinued Operations. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. At June 30, 2022, the carrying value of these indemnity obligations was $1 million. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote.
Other Contingencies
In addition to the matters disclosed in this Note and Note 1, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits,
proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity.
v3.22.2
Financings and Capitalization
 6 Months Ended
Jun. 30, 2022
Debt Instrument [Line Items]  
Financings and Capitalization Financings and Capitalization
Presented in the following table is a summary of major long-term debt retirements during the six months ended June 30, 2022:
Principal
(In Millions)		Interest RateRetirement DateMaturity Date
CMS Enterprises, including subsidiaries
Term loan facility$76 variableJune 2022October 2025
In June 2022, CMS Enterprises sold a Class A membership interest in NWO Holdco to a tax equity investor for $49 million. Proceeds from the sale were used to retire the non-recourse debt held by a subsidiary of CMS Enterprises. For more information, see Note 12, Variable Interest Entities.
New Term Loan Credit Agreement: In July 2022, Consumers entered into a delayed-draw $1.0 billion unsecured term loan credit agreement with an interest rate of SOFR plus 0.650 percent. The proceeds of the loan will be used to fund working capital and for general corporate purposes. The term loan matures in January 2024. Consumers has until November 2022 to draw funds under the facility. At July 28, 2022, Consumers had not drawn on this facility.
Credit Facilities: The following credit facilities with banks were available at June 30, 2022:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 2024
$550 $— $14 $536 
September 23, 2022
50 — 50 — 
CMS Enterprises, including subsidiaries
September 25, 20251
$37 $— $37 $— 
Consumers2
June 5, 2024
$850 $— $13 $837 
November 19, 2023
250 — 61 189 
1This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities.
2Obligations under these facilities are secured by first mortgage bonds of Consumers.
Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. In March 2022, the FERC issued an
authorization for financings that was set to expire on March 31, 2023. In April 2022, FERC issued a revision of its March authorization for financings that extends the expiration to March 31, 2024.
Short-term Borrowings: Under Consumers’ commercial paper program, Consumers may issue, in one or more placements, investment-grade commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers’ revolving credit facilities and may have an aggregate principal amount outstanding of up to $500 million. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At June 30, 2022, there were $45 million of commercial paper notes outstanding under this program at an interest rate of 1.950 percent, recorded as current notes payable on CMS Energy’s and Consumers’ consolidated balance sheets.
In December 2021, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million at an interest rate of the prior month’s average one-month LIBOR minus 0.100 percent. At June 30, 2022, outstanding borrowings under the agreement were $32 million bearing an interest rate of 0.825 percent.
Dividend Restrictions: At June 30, 2022, payment of dividends by CMS Energy on its common stock was limited to $6.6 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at June 30, 2022, Consumers had $1.9 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process.
During the six months ended June 30, 2022, Consumers paid $433 million in dividends on its common stock to CMS Energy.
Issuance of Common Stock: Under an existing equity offering program, CMS Energy may sell shares of its common stock having an aggregate sales price of up to $500 million in privately negotiated transactions, in “at the market” offerings, through forward sales transactions, or otherwise.
Presented in the following table are details of CMS Energy’s forward sales contracts under this program at June 30, 2022:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialJune 30, 2022
September 15, 2020December 31, 2022846,759$61.04 $57.57 
December 22, 2020December 31, 2023115,59561.81 58.72 
These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock.
The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net cash settle the contracts as of June 30, 2022, it would have been required to pay $9 million. If CMS Energy had elected to net share settle the contracts as of June 30, 2022, CMS Energy would have been required to deliver 139,666 shares.
Consumers Energy Company  
Debt Instrument [Line Items]  
Financings and Capitalization Financings and Capitalization
Presented in the following table is a summary of major long-term debt retirements during the six months ended June 30, 2022:
Principal
(In Millions)		Interest RateRetirement DateMaturity Date
CMS Enterprises, including subsidiaries
Term loan facility$76 variableJune 2022October 2025
In June 2022, CMS Enterprises sold a Class A membership interest in NWO Holdco to a tax equity investor for $49 million. Proceeds from the sale were used to retire the non-recourse debt held by a subsidiary of CMS Enterprises. For more information, see Note 12, Variable Interest Entities.
New Term Loan Credit Agreement: In July 2022, Consumers entered into a delayed-draw $1.0 billion unsecured term loan credit agreement with an interest rate of SOFR plus 0.650 percent. The proceeds of the loan will be used to fund working capital and for general corporate purposes. The term loan matures in January 2024. Consumers has until November 2022 to draw funds under the facility. At July 28, 2022, Consumers had not drawn on this facility.
Credit Facilities: The following credit facilities with banks were available at June 30, 2022:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 2024
$550 $— $14 $536 
September 23, 2022
50 — 50 — 
CMS Enterprises, including subsidiaries
September 25, 20251
$37 $— $37 $— 
Consumers2
June 5, 2024
$850 $— $13 $837 
November 19, 2023
250 — 61 189 
1This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities.
2Obligations under these facilities are secured by first mortgage bonds of Consumers.
Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. In March 2022, the FERC issued an
authorization for financings that was set to expire on March 31, 2023. In April 2022, FERC issued a revision of its March authorization for financings that extends the expiration to March 31, 2024.
Short-term Borrowings: Under Consumers’ commercial paper program, Consumers may issue, in one or more placements, investment-grade commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers’ revolving credit facilities and may have an aggregate principal amount outstanding of up to $500 million. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At June 30, 2022, there were $45 million of commercial paper notes outstanding under this program at an interest rate of 1.950 percent, recorded as current notes payable on CMS Energy’s and Consumers’ consolidated balance sheets.
In December 2021, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million at an interest rate of the prior month’s average one-month LIBOR minus 0.100 percent. At June 30, 2022, outstanding borrowings under the agreement were $32 million bearing an interest rate of 0.825 percent.
Dividend Restrictions: At June 30, 2022, payment of dividends by CMS Energy on its common stock was limited to $6.6 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at June 30, 2022, Consumers had $1.9 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process.
During the six months ended June 30, 2022, Consumers paid $433 million in dividends on its common stock to CMS Energy.
Issuance of Common Stock: Under an existing equity offering program, CMS Energy may sell shares of its common stock having an aggregate sales price of up to $500 million in privately negotiated transactions, in “at the market” offerings, through forward sales transactions, or otherwise.
Presented in the following table are details of CMS Energy’s forward sales contracts under this program at June 30, 2022:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialJune 30, 2022
September 15, 2020December 31, 2022846,759$61.04 $57.57 
December 22, 2020December 31, 2023115,59561.81 58.72 
These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock.
The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net cash settle the contracts as of June 30, 2022, it would have been required to pay $9 million. If CMS Energy had elected to net share settle the contracts as of June 30, 2022, CMS Energy would have been required to deliver 139,666 shares.
v3.22.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Measurements Fair Value Measurements
Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows:
•Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
•Level 2 inputs are observable, market-based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data.
•Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities.
CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
June 30
2022		December 31
2021		June 30
2022		December 31
2021
Assets1
Restricted cash equivalents$19 $24 $18 $22 
Nonqualified deferred compensation plan assets23 27 17 21 
Derivative instruments4 2 3 2 
Total assets$46 $53 $38 $45 
Liabilities1
Nonqualified deferred compensation plan liabilities$23 $27 $17 $21 
Derivative instruments4 7 — — 
Total liabilities$27 $34 $17 $21 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Restricted Cash Equivalents: Restricted cash equivalents consist of money market funds with daily liquidity. For further details, see Note 10, Cash and Cash Equivalents.
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets.
Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3.
The derivatives classified as Level 2 were interest rate swaps at CMS Energy, which were valued using market-based inputs. CMS Energy used interest rate swaps to manage its interest rate risk on certain long‑term debt obligations.
A subsidiary of CMS Enterprises used floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with future interest payments on certain long‑term variable-rate debt. The interest rate swaps were accounted for as cash flow hedges of the future variability of interest payments on the debt. In June 2022, CMS Enterprises repaid the hedged debt and terminated the related interest rate swaps. As a result, the associated unrecognized losses recorded in other comprehensive income were recognized in interest on long-term debt on CMS Energy’s consolidated statements of income; this amount was immaterial. CMS Enterprises also had other interest rate swaps that economically hedged interest rate risk on debt, but that did not qualify for cash flow hedge accounting. These swaps were also terminated in June 2022; the amounts associated with these swaps were not material for the periods presented.
The majority of derivatives classified as Level 3 are FTRs held by Consumers. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. There was no material activity within the Level 3 categories of assets and liabilities during the periods presented.
Consumers Energy Company  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Measurements Fair Value Measurements
Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows:
•Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
•Level 2 inputs are observable, market-based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data.
•Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities.
CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
June 30
2022		December 31
2021		June 30
2022		December 31
2021
Assets1
Restricted cash equivalents$19 $24 $18 $22 
Nonqualified deferred compensation plan assets23 27 17 21 
Derivative instruments4 2 3 2 
Total assets$46 $53 $38 $45 
Liabilities1
Nonqualified deferred compensation plan liabilities$23 $27 $17 $21 
Derivative instruments4 7 — — 
Total liabilities$27 $34 $17 $21 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Restricted Cash Equivalents: Restricted cash equivalents consist of money market funds with daily liquidity. For further details, see Note 10, Cash and Cash Equivalents.
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets.
Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3.
The derivatives classified as Level 2 were interest rate swaps at CMS Energy, which were valued using market-based inputs. CMS Energy used interest rate swaps to manage its interest rate risk on certain long‑term debt obligations.
A subsidiary of CMS Enterprises used floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with future interest payments on certain long‑term variable-rate debt. The interest rate swaps were accounted for as cash flow hedges of the future variability of interest payments on the debt. In June 2022, CMS Enterprises repaid the hedged debt and terminated the related interest rate swaps. As a result, the associated unrecognized losses recorded in other comprehensive income were recognized in interest on long-term debt on CMS Energy’s consolidated statements of income; this amount was immaterial. CMS Enterprises also had other interest rate swaps that economically hedged interest rate risk on debt, but that did not qualify for cash flow hedge accounting. These swaps were also terminated in June 2022; the amounts associated with these swaps were not material for the periods presented.
The majority of derivatives classified as Level 3 are FTRs held by Consumers. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. There was no material activity within the Level 3 categories of assets and liabilities during the periods presented.
v3.22.2
Financial Instruments
 6 Months Ended
Jun. 30, 2022
Financial Instruments [Line Items]  
Financial Instruments Financial Instruments
Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements.
In Millions
June 30, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$12 $12 $— $— $12 $14 $14 $— $— $14 
Liabilities
Long-term debt2
12,332 11,227 1,058 8,539 1,630 12,419 13,800 1,189 10,656 1,955 
Long-term payables3
9 9 — — 9 31 32 — — 32 
Consumers
Assets
Long-term receivables1
$12 $12 $— $— $12 $14 $14 $— $— $14 
Notes receivable – related party4
102 102 — — 102 104 104 — — 104 
Liabilities
Long-term debt5
8,403 7,529 — 5,899 1,630 8,415 9,410 — 7,455 1,955 
1Includes current portion of long-term accounts receivable of $8 million at June 30, 2022 and $9 million at December 31, 2021.
2Includes current portion of long-term debt of $665 million at June 30, 2022 and $373 million at December 31, 2021.
3Includes current portion of long-term payables of $1 million at June 30, 2022 and $23 million at December 31, 2021.
4Includes current portion of notes receivable – related party of $7 million at June 30, 2022 and December 31, 2021.
5Includes current portion of long-term debt of $665 million at June 30, 2022 and $365 million at December 31, 2021.
The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028.
Consumers Energy Company  
Financial Instruments [Line Items]  
Financial Instruments Financial Instruments
Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements.
In Millions
June 30, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$12 $12 $— $— $12 $14 $14 $— $— $14 
Liabilities
Long-term debt2
12,332 11,227 1,058 8,539 1,630 12,419 13,800 1,189 10,656 1,955 
Long-term payables3
9 9 — — 9 31 32 — — 32 
Consumers
Assets
Long-term receivables1
$12 $12 $— $— $12 $14 $14 $— $— $14 
Notes receivable – related party4
102 102 — — 102 104 104 — — 104 
Liabilities
Long-term debt5
8,403 7,529 — 5,899 1,630 8,415 9,410 — 7,455 1,955 
1Includes current portion of long-term accounts receivable of $8 million at June 30, 2022 and $9 million at December 31, 2021.
2Includes current portion of long-term debt of $665 million at June 30, 2022 and $373 million at December 31, 2021.
3Includes current portion of long-term payables of $1 million at June 30, 2022 and $23 million at December 31, 2021.
4Includes current portion of notes receivable – related party of $7 million at June 30, 2022 and December 31, 2021.
5Includes current portion of long-term debt of $665 million at June 30, 2022 and $365 million at December 31, 2021.
The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028.
v3.22.2
Retirement Benefits
 6 Months Ended
Jun. 30, 2022
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement Benefits
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.
In March 2022, CMS Energy and Consumers determined it was probable that 2022 lump-sum payments to participants under DB Pension Plan A would exceed the plan’s service cost and interest cost components of net periodic cost for the year. These lump-sum payments constitute pension plan liability settlements; once it is probable such settlements will meet the service and interest cost threshold, recognition in earnings is required. As a result, in accordance with GAAP, CMS Energy, including Consumers, performed a remeasurement of DB Pension Plan A as of March 31, 2022 and June 30, 2022. For the six months ended June 30, 2022, CMS Energy, including Consumers, recognized a settlement loss of $8 million; of this amount, $8 million was deferred as a regulatory asset. Consumers recognized a settlement loss of $8 million, all of which was deferred as a regulatory asset. CMS Energy and Consumers will amortize the regulatory asset over eight years.
As a result of the remeasurements, the non-current asset for DB Pension Plan A increased by $113 million from December 31, 2021 at CMS Energy, with an offsetting decrease in the associated regulatory asset of $110 million and a $3 million gain to accumulated other comprehensive loss. At Consumers, the non‑current asset increased by $110 million and the associated regulatory asset decreased by $110 million.
Costs: Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans:
In Millions
DB Pension PlansOPEB Plan
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
June 3020222021202220212022202120222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$11 $13 $23 $27 $5 $5 $9 $9 
Interest cost20 15 38 30 7 5 14 11 
Expected return on plan assets(52)(52)(104)(104)(29)(27)(58)(54)
Amortization of:
Net loss10 26 27 51 1 2 1 4 
Prior service cost (credit)1 1 2 2 (14)(13)(26)(26)
Settlement loss2 2 4 3 — — — — 
Net periodic cost (credit)$(8)$5 $(10)$9 $(30)$(28)$(60)$(56)
Consumers
Net periodic cost (credit)
Service cost$11 $13 $23 $26 $5 $5 $9 $9 
Interest cost20 14 36 28 7 5 14 11 
Expected return on plan assets(50)(49)(99)(98)(27)(26)(54)(51)
Amortization of:
Net loss9 24 25 49 — 2 — 4 
Prior service cost (credit)1 1 2 2 (13)(13)(25)(26)
Settlement loss2 2 4 3 — — — — 
Net periodic cost (credit)$(7)$5 $(9)$10 $(28)$(27)$(56)$(53)
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement Benefits
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.
In March 2022, CMS Energy and Consumers determined it was probable that 2022 lump-sum payments to participants under DB Pension Plan A would exceed the plan’s service cost and interest cost components of net periodic cost for the year. These lump-sum payments constitute pension plan liability settlements; once it is probable such settlements will meet the service and interest cost threshold, recognition in earnings is required. As a result, in accordance with GAAP, CMS Energy, including Consumers, performed a remeasurement of DB Pension Plan A as of March 31, 2022 and June 30, 2022. For the six months ended June 30, 2022, CMS Energy, including Consumers, recognized a settlement loss of $8 million; of this amount, $8 million was deferred as a regulatory asset. Consumers recognized a settlement loss of $8 million, all of which was deferred as a regulatory asset. CMS Energy and Consumers will amortize the regulatory asset over eight years.
As a result of the remeasurements, the non-current asset for DB Pension Plan A increased by $113 million from December 31, 2021 at CMS Energy, with an offsetting decrease in the associated regulatory asset of $110 million and a $3 million gain to accumulated other comprehensive loss. At Consumers, the non‑current asset increased by $110 million and the associated regulatory asset decreased by $110 million.
Costs: Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans:
In Millions
DB Pension PlansOPEB Plan
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
June 3020222021202220212022202120222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$11 $13 $23 $27 $5 $5 $9 $9 
Interest cost20 15 38 30 7 5 14 11 
Expected return on plan assets(52)(52)(104)(104)(29)(27)(58)(54)
Amortization of:
Net loss10 26 27 51 1 2 1 4 
Prior service cost (credit)1 1 2 2 (14)(13)(26)(26)
Settlement loss2 2 4 3 — — — — 
Net periodic cost (credit)$(8)$5 $(10)$9 $(30)$(28)$(60)$(56)
Consumers
Net periodic cost (credit)
Service cost$11 $13 $23 $26 $5 $5 $9 $9 
Interest cost20 14 36 28 7 5 14 11 
Expected return on plan assets(50)(49)(99)(98)(27)(26)(54)(51)
Amortization of:
Net loss9 24 25 49 — 2 — 4 
Prior service cost (credit)1 1 2 2 (13)(13)(25)(26)
Settlement loss2 2 4 3 — — — — 
Net periodic cost (credit)$(7)$5 $(9)$10 $(28)$(27)$(56)$(53)
v3.22.2
Income Taxes
 6 Months Ended
Jun. 30, 2022
Income Taxes [Line Items]  
Income Taxes Income Taxes
Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:
Six Months Ended June 3020222021
CMS Energy, including Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect5.5 5.4 
TCJA excess deferred taxes1
(7.2)(5.9)
Production tax credits(5.1)(5.1)
Accelerated flow-through of regulatory tax benefits2
(4.3)(3.3)
Other, net— 0.1 
Effective tax rate9.9 %12.2 %
Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
5.2 5.2 
TCJA excess deferred taxes1
(6.0)(4.9)
Production tax credits(3.8)(3.2)
Accelerated flow-through of regulatory tax benefits2
(3.6)(3.0)
Other, net(0.4)(0.5)
Effective tax rate12.4 %14.6 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022.
2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022.
Consumers Energy Company  
Income Taxes [Line Items]  
Income Taxes Income Taxes
Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:
Six Months Ended June 3020222021
CMS Energy, including Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect5.5 5.4 
TCJA excess deferred taxes1
(7.2)(5.9)
Production tax credits(5.1)(5.1)
Accelerated flow-through of regulatory tax benefits2
(4.3)(3.3)
Other, net— 0.1 
Effective tax rate9.9 %12.2 %
Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
5.2 5.2 
TCJA excess deferred taxes1
(6.0)(4.9)
Production tax credits(3.8)(3.2)
Accelerated flow-through of regulatory tax benefits2
(3.6)(3.0)
Other, net(0.4)(0.5)
Effective tax rate12.4 %14.6 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022.
2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022.
v3.22.2
Earnings Per Share - CMS Energy
 6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Earnings Per Share - CMS Energy Earnings Per Share—CMS Energy
Presented in the following table are CMS Energy’s basic and diluted EPS computations based on income from continuing operations:
In Millions, Except Per Share Amounts
Three Months EndedSix Months Ended
June 302022202120222021
Income available to common stockholders
Income from continuing operations$142 $153 $483 $461 
Less loss attributable to noncontrolling interests(6)(5)(14)(12)
Less preferred stock dividends3 — 5 — 
Income from continuing operations available to common stockholders – basic and diluted$145 $158 $492 $473 
Average common shares outstanding
Weighted-average shares – basic289.5 289.0 289.4 288.8 
Add dilutive nonvested stock awards0.4 0.4 0.4 0.5 
Add dilutive forward equity sale contracts0.2 — 0.2 — 
Weighted-average shares – diluted290.1 289.4 290.0 289.3 
Income from continuing operations per average common share available to common stockholders
Basic$0.50 $0.55 $1.70 $1.64 
Diluted0.50 0.55 1.70 1.64 
Nonvested Stock Awards
CMS Energy’s nonvested stock awards are composed of participating and non‑participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the nonvested stock awards are considered participating securities. As such, the participating nonvested stock awards were included in the computation of basic EPS. The non‑participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non‑participating securities are also forfeited. Accordingly, the non‑participating awards and stock dividends were included in the computation of diluted EPS, but not in the computation of basic EPS.
Forward Equity Sale Contracts
CMS Energy has entered into forward equity sale contracts. These forward equity sale contracts are non‑participating securities. While the forward sale price in the forward equity sale contract is decreased on certain dates by certain predetermined amounts to reflect expected dividend payments, these price adjustments were set upon inception of the agreement and the forward contract does not give the owner the right to participate in undistributed earnings. Accordingly, the forward equity sale contracts were included in the computation of diluted EPS, but not in the computation of basic EPS. For further details on the forward equity sale contracts, see Note 3, Financings and Capitalization.
v3.22.2
Revenue
 6 Months Ended
Jun. 30, 2022
Disaggregation of Revenue [Line Items]  
Revenue RevenuePresented in the following tables are the components of operating revenue:
In Millions
Three Months Ended June 30, 2022Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,322 $468 $— $1,790 
Other— — 52 52 
Revenue recognized from contracts with customers$1,322 $468 $52 $1,842 
Leasing income— — 66 66 
Financing income2 2 — 4 
Consumers alternative-revenue programs1 7 — 8 
Total operating revenue – CMS Energy$1,325 $477 $118 $1,920 
Consumers
Consumers utility revenue
Residential$597 $309 $906 
Commercial420 99 519 
Industrial207 15 222 
Other98 45 143 
Revenue recognized from contracts with customers$1,322 $468 $1,790 
Financing income2 2 4 
Alternative-revenue programs1 7 8 
Total operating revenue – Consumers$1,325 $477 $1,802 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $53 million for the three months ended June 30, 2022.
In Millions
Three Months Ended June 30, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,158 $332 $— $1,490 
Other— — 25 25 
Revenue recognized from contracts with customers$1,158 $332 $25 $1,515 
Leasing income— — 40 40 
Financing income2 1 — 3 
Total operating revenue – CMS Energy$1,160 $333 $65 $1,558 
Consumers
Consumers utility revenue
Residential$561 $220 $781 
Commercial390 59 449 
Industrial153 8 161 
Other54 45 99 
Revenue recognized from contracts with customers$1,158 $332 $1,490 
Financing income2 1 3 
Total operating revenue – Consumers$1,160 $333 $1,493 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $26 million for the three months ended June 30, 2021.
In Millions
Six Months Ended June 30, 2022Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$2,560 $1,515 $— $4,075 
Other— — 85 85 
Revenue recognized from contracts with customers$2,560 $1,515 $85 $4,160 
Leasing income— — 124 124 
Financing income5 4 — 9 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$2,566 $1,519 $209 $4,294 
Consumers
Consumers utility revenue
Residential$1,188 $1,049 $2,237 
Commercial804 320 1,124 
Industrial375 43 418 
Other193 103 296 
Revenue recognized from contracts with customers$2,560 $1,515 $4,075 
Financing income5 4 9 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$2,566 $1,519 $4,085 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $97 million for the six months ended June 30, 2022.
In Millions
Six Months Ended June 30, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$2,289 $1,133 $— $3,422 
Other— — 55 55 
Revenue recognized from contracts with customers$2,289 $1,133 $55 $3,477 
Leasing income— — 86 86 
Financing income5 3 — 8 
Total operating revenue – CMS Energy$2,294 $1,136 $141 $3,571 
Consumers
Consumers utility revenue
Residential$1,129 $774 $1,903 
Commercial735 222 957 
Industrial291 31 322 
Other134 106 240 
Revenue recognized from contracts with customers$2,289 $1,133 $3,422 
Financing income5 3 8 
Total operating revenue – Consumers$2,294 $1,136 $3,430 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $59 million for the six months ended June 30, 2021.
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
•Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
•Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and
remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Alternative-Revenue Program: Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather-normalized, non-fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
CMS Energy and Consumers recorded uncollectible accounts expense of $14 million for the three months ended June 30, 2022 and $5 million for the three months ended June 30, 2021. CMS Energy and Consumers recorded uncollectible accounts expense of $18 million for the six months ended June 30, 2022 and $11 million for the six months ended June 30, 2021.
Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable and accrued revenue on CMS Energy’s and Consumers’ consolidated balance sheets, were $387 million at June 30, 2022 and $486 million at December 31, 2021.
Consumers Energy Company  
Disaggregation of Revenue [Line Items]  
Revenue RevenuePresented in the following tables are the components of operating revenue:
In Millions
Three Months Ended June 30, 2022Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,322 $468 $— $1,790 
Other— — 52 52 
Revenue recognized from contracts with customers$1,322 $468 $52 $1,842 
Leasing income— — 66 66 
Financing income2 2 — 4 
Consumers alternative-revenue programs1 7 — 8 
Total operating revenue – CMS Energy$1,325 $477 $118 $1,920 
Consumers
Consumers utility revenue
Residential$597 $309 $906 
Commercial420 99 519 
Industrial207 15 222 
Other98 45 143 
Revenue recognized from contracts with customers$1,322 $468 $1,790 
Financing income2 2 4 
Alternative-revenue programs1 7 8 
Total operating revenue – Consumers$1,325 $477 $1,802 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $53 million for the three months ended June 30, 2022.
In Millions
Three Months Ended June 30, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,158 $332 $— $1,490 
Other— — 25 25 
Revenue recognized from contracts with customers$1,158 $332 $25 $1,515 
Leasing income— — 40 40 
Financing income2 1 — 3 
Total operating revenue – CMS Energy$1,160 $333 $65 $1,558 
Consumers
Consumers utility revenue
Residential$561 $220 $781 
Commercial390 59 449 
Industrial153 8 161 
Other54 45 99 
Revenue recognized from contracts with customers$1,158 $332 $1,490 
Financing income2 1 3 
Total operating revenue – Consumers$1,160 $333 $1,493 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $26 million for the three months ended June 30, 2021.
In Millions
Six Months Ended June 30, 2022Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$2,560 $1,515 $— $4,075 
Other— — 85 85 
Revenue recognized from contracts with customers$2,560 $1,515 $85 $4,160 
Leasing income— — 124 124 
Financing income5 4 — 9 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$2,566 $1,519 $209 $4,294 
Consumers
Consumers utility revenue
Residential$1,188 $1,049 $2,237 
Commercial804 320 1,124 
Industrial375 43 418 
Other193 103 296 
Revenue recognized from contracts with customers$2,560 $1,515 $4,075 
Financing income5 4 9 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$2,566 $1,519 $4,085 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $97 million for the six months ended June 30, 2022.
In Millions
Six Months Ended June 30, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$2,289 $1,133 $— $3,422 
Other— — 55 55 
Revenue recognized from contracts with customers$2,289 $1,133 $55 $3,477 
Leasing income— — 86 86 
Financing income5 3 — 8 
Total operating revenue – CMS Energy$2,294 $1,136 $141 $3,571 
Consumers
Consumers utility revenue
Residential$1,129 $774 $1,903 
Commercial735 222 957 
Industrial291 31 322 
Other134 106 240 
Revenue recognized from contracts with customers$2,289 $1,133 $3,422 
Financing income5 3 8 
Total operating revenue – Consumers$2,294 $1,136 $3,430 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $59 million for the six months ended June 30, 2021.
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
•Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
•Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and
remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Alternative-Revenue Program: Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather-normalized, non-fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
CMS Energy and Consumers recorded uncollectible accounts expense of $14 million for the three months ended June 30, 2022 and $5 million for the three months ended June 30, 2021. CMS Energy and Consumers recorded uncollectible accounts expense of $18 million for the six months ended June 30, 2022 and $11 million for the six months ended June 30, 2021.
Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable and accrued revenue on CMS Energy’s and Consumers’ consolidated balance sheets, were $387 million at June 30, 2022 and $486 million at December 31, 2021.
v3.22.2
Cash and Cash Equivalents
 6 Months Ended
Jun. 30, 2022
Cash and Cash Equivalents [Line Items]  
Cash And Cash Equivalents Cash and Cash Equivalents
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets:
In Millions
June 30, 2022December 31, 2021
CMS Energy, including Consumers
Cash and cash equivalents$77 $452 
Restricted cash and cash equivalents19 24 
Cash and cash equivalents, including restricted amounts – CMS Energy$96 $476 
Consumers
Cash and cash equivalents$8 $22 
Restricted cash and cash equivalents18 22 
Cash and cash equivalents, including restricted amounts – Consumers$26 $44 
Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Consumers Energy Company  
Cash and Cash Equivalents [Line Items]  
Cash And Cash Equivalents Cash and Cash Equivalents
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets:
In Millions
June 30, 2022December 31, 2021
CMS Energy, including Consumers
Cash and cash equivalents$77 $452 
Restricted cash and cash equivalents19 24 
Cash and cash equivalents, including restricted amounts – CMS Energy$96 $476 
Consumers
Cash and cash equivalents$8 $22 
Restricted cash and cash equivalents18 22 
Cash and cash equivalents, including restricted amounts – Consumers$26 $44 
Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
v3.22.2
Reportable Segments
 6 Months Ended
Jun. 30, 2022
Segment Reporting Information [Line Items]  
Reportable Segments Reportable SegmentsReportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders.
CMS Energy
The segments reported for CMS Energy are:
•electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
•gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
•enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production
On October 1, 2021, EnerBank was acquired by Regions Bank. As a result, EnerBank was removed from the composition of CMS Energy’s reportable segments. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income. For information regarding the sale of EnerBank, see Note 13, Exit Activities and Discontinued Operations.
CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items.
Consumers
The segments reported for Consumers are:
•electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
•gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
Consumers’ other consolidated entities are presented within other reconciling items.
Presented in the following tables is financial information by segment:
In Millions
Three Months EndedSix Months Ended
June 302022202120222021
CMS Energy, including Consumers
Operating revenue
Electric utility$1,325 $1,160 $2,566 $2,294 
Gas utility477 333 1,519 1,136 
Enterprises118 65 209 141 
Total operating revenue – CMS Energy$1,920 $1,558 $4,294 $3,571 
Consumers
Operating revenue
Electric utility$1,325 $1,160 $2,566 $2,294 
Gas utility477 333 1,519 1,136 
Total operating revenue – Consumers$1,802 $1,493 $4,085 $3,430 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$140 $154 $307 $309 
Gas utility36 36 252 217 
Enterprises7 5 15 19 
Other reconciling items(38)(19)(78)(20)
Total net income available to common stockholders – CMS Energy$145 $176 $496 $525 
Consumers
Net income (loss) available to common stockholder
Electric utility$140 $154 $307 $309 
Gas utility36 36 252 217 
Other reconciling items(4)(1)(4)(1)
Total net income available to common stockholder – Consumers$172 $189 $555 $525 
In Millions
June 30, 2022December 31, 2021
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1
$17,333 $18,147 
Gas utility1
10,946 10,601 
Enterprises1,122 1,122 
Other reconciling items25 23 
Total plant, property, and equipment, gross – CMS Energy$29,426 $29,893 
Consumers
Plant, property, and equipment, gross
Electric utility1
$17,333 $18,147 
Gas utility1
10,946 10,601 
Other reconciling items25 23 
Total plant, property, and equipment, gross – Consumers$28,304 $28,771 
CMS Energy, including Consumers
Total assets
Electric utility1
$16,860 $16,493 
Gas utility1
10,725 10,517 
Enterprises1,387 1,312 
Other reconciling items68 431 
Total assets – CMS Energy$29,040 $28,753 
Consumers
Total assets
Electric utility1
$16,922 $16,555 
Gas utility1
10,771 10,564 
Other reconciling items22 21 
Total assets – Consumers$27,715 $27,140 
1Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
Consumers Energy Company  
Segment Reporting Information [Line Items]  
Reportable Segments Reportable SegmentsReportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders.
CMS Energy
The segments reported for CMS Energy are:
•electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
•gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
•enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production
On October 1, 2021, EnerBank was acquired by Regions Bank. As a result, EnerBank was removed from the composition of CMS Energy’s reportable segments. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income. For information regarding the sale of EnerBank, see Note 13, Exit Activities and Discontinued Operations.
CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items.
Consumers
The segments reported for Consumers are:
•electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
•gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
Consumers’ other consolidated entities are presented within other reconciling items.
Presented in the following tables is financial information by segment:
In Millions
Three Months EndedSix Months Ended
June 302022202120222021
CMS Energy, including Consumers
Operating revenue
Electric utility$1,325 $1,160 $2,566 $2,294 
Gas utility477 333 1,519 1,136 
Enterprises118 65 209 141 
Total operating revenue – CMS Energy$1,920 $1,558 $4,294 $3,571 
Consumers
Operating revenue
Electric utility$1,325 $1,160 $2,566 $2,294 
Gas utility477 333 1,519 1,136 
Total operating revenue – Consumers$1,802 $1,493 $4,085 $3,430 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$140 $154 $307 $309 
Gas utility36 36 252 217 
Enterprises7 5 15 19 
Other reconciling items(38)(19)(78)(20)
Total net income available to common stockholders – CMS Energy$145 $176 $496 $525 
Consumers
Net income (loss) available to common stockholder
Electric utility$140 $154 $307 $309 
Gas utility36 36 252 217 
Other reconciling items(4)(1)(4)(1)
Total net income available to common stockholder – Consumers$172 $189 $555 $525 
In Millions
June 30, 2022December 31, 2021
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1
$17,333 $18,147 
Gas utility1
10,946 10,601 
Enterprises1,122 1,122 
Other reconciling items25 23 
Total plant, property, and equipment, gross – CMS Energy$29,426 $29,893 
Consumers
Plant, property, and equipment, gross
Electric utility1
$17,333 $18,147 
Gas utility1
10,946 10,601 
Other reconciling items25 23 
Total plant, property, and equipment, gross – Consumers$28,304 $28,771 
CMS Energy, including Consumers
Total assets
Electric utility1
$16,860 $16,493 
Gas utility1
10,725 10,517 
Enterprises1,387 1,312 
Other reconciling items68 431 
Total assets – CMS Energy$29,040 $28,753 
Consumers
Total assets
Electric utility1
$16,922 $16,555 
Gas utility1
10,771 10,564 
Other reconciling items22 21 
Total assets – Consumers$27,715 $27,140 
1Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
v3.22.2
Variable Interest Entities
 6 Months Ended
Jun. 30, 2022
Variable Interest Entities [Abstract]  
Variable Interest Entities Variable Interest Entities
In June 2022, CMS Enterprises sold a Class A membership interest in NWO Holdco to a tax equity investor for $49 million. NWO Holdco owns 100 percent of Northwest Ohio Wind, LLC, a 105‑MW wind generation project in Paulding County, Ohio. CMS Enterprises retained a Class B membership interest in NWO Holdco.
CMS Enterprises has a 51‑percent ownership interest in Aviator Wind Equity Holdings, which holds a Class B membership interest in Aviator Wind, a 525‑MW wind generation project in Coke County, Texas. The Class A membership interest in Aviator Wind is held by a tax equity investor.
Earnings, tax attributes, and cash flows generated by NWO Holdco and Aviator Wind are allocated among and distributed to the membership classes in accordance with the ratios specified in the associated limited liability company agreements; these ratios change over time and are not representative of the ownership interest percentages of each membership class. Since NWO Holdco’s and Aviator Wind’s income and cash flows are not distributed among their investors based on ownership interest percentages,
CMS Enterprises 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.
NWO Holdco, Aviator Wind Equity Holdings, and Aviator Wind are VIEs. In accordance with the associated limited liability company agreements, the tax equity investors are guaranteed preferred returns from NWO Holdco and Aviator Wind. However, CMS Enterprises manages and controls the operating activities of NWO Holdco and Aviator Wind Equity Holdings (and, thereby, Aviator Wind). As a result, CMS Enterprises is the primary beneficiary, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies. CMS Enterprises consolidates NWO Holdco, Aviator Wind Equity Holdings, and Aviator Wind and presents the Class A membership interests and 49 percent of the Class B membership interest in Aviator Wind as noncontrolling interests.
Presented in the following table are the carrying values of the VIEs’ assets and liabilities included on CMS Energy’s consolidated balance sheets:
In Millions
June 30, 2022December 31, 2021
Current
Cash and cash equivalents$24 $21 
Restricted cash and cash equivalents— 1 
Accounts receivable10 3 
Prepayments and other current assets3 2 
Non-current
Plant, property, and equipment, net841 856 
Total assets1
$878 $883 
Current
Accounts payable$18 $17 
Other Liabilities— 2 
Non-current
Asset retirement obligations23 23 
Other Liabilities4 
Total liabilities$41 $46 
1Assets may be used only to meet VIEs’ obligations and commitments.
CMS Enterprises 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 2, Contingencies and Commitments—Guarantees.
Other VIEs: CMS Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While CMS Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships.
Presented in the following table is information about these partnerships:
NameNature of the EntityNature of CMS Energy’s Involvement
T.E.S. Filer City Coal-fueled power generatorLong-term PPA between partnership and Consumers
Employee assignment agreement
Grayling Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Genesee Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Craven Wood waste-fueled power generatorOperating and management contract
1Reduced dispatch agreements allow the facilities to be dispatched based on the market price of power compared with the cost of production of the plants. This results in fuel cost savings that each partnership shares with Consumers’ customers.
The creditors of these partnerships do not have recourse to the general credit of CMS Energy or Consumers. CMS Energy and Consumers have not provided any financial or other support during the periods presented that was not previously contractually required.
CMS Energy’s investment in these partnerships is included in investments on its consolidated balance sheets in the amount of $69 million at June 30, 2022 and $71 million at December 31, 2021.
v3.22.2
Exit Activities and Discontinued Operations
 6 Months Ended
Jun. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Exit Activities and Discontinued Operations Exit Activities and Discontinued Operations
Exit Activities: Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn coal-fueled electric generating units in 2023. In 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million. In its order in Consumers’ 2020 electric rate case, the MPSC approved deferred accounting treatment for these costs; Consumers began deferring these costs as a regulatory asset in 2021.
Under the 2021 IRP, Consumers will retire the J.H. Campbell coal-fueled generating units in 2025. Similar to the D.E. Karn program, Consumers will provide a retention incentive program to ensure necessary staffing at the J.H. Campbell generating complex through retirement. Based on the number of employees expected to participate, the aggregate cost of the program through 2025 is estimated to be $50 million. Additionally, Consumers recognized $4 million related to severance benefits during the six months ended June 30, 2022. This amount was recorded in other liabilities on its consolidated balance sheets at June 30, 2022. The 2021 IRP provides deferred accounting treatment for the retention and severance costs recognized during 2022; deferral of costs beyond 2022 will be addressed in future rate cases.
As of June 30, 2022, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $9 million has been deferred as a regulatory asset. The cumulative cost incurred and deferred as a regulatory asset related to the J.H. Campbell retention incentive program was less than $1 million.
Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Six Months Ended
June 3020222021
Retention benefit liability at beginning of period$14 $11 
Costs deferred as a regulatory asset1
3 4 
Retention benefit liability at the end of the period2
$17 $15 
1Includes $2 million for the three months ended June 30, 2022 and 2021.
2Includes current portion of other liabilities of $6 million at June 30, 2022 and $5 million at June 30, 2021.
Discontinued Operations: On October 1, 2021, EnerBank was acquired by Regions Bank. CMS Energy received proceeds of over $1 billion from the transaction and recognized a pre-tax gain of $657 million in 2021. In March 2022, CMS Energy received $6 million of additional proceeds as the result of a post-closing adjustment. Net of related transaction costs, CMS Energy recognized a pre-tax gain of $5 million during the six months ended June 30, 2022.
In December 2021, CMS Energy submitted a notice of disagreement to Regions Bank relating to a $36 million negative post-closing purchase price adjustment that it believed was inconsistent with the merger agreement. In accordance with the merger agreement, the disputed adjustment was submitted to a mutually agreed upon independent accounting firm for final determination. In June 2022, the accounting firm rendered a determination on the disputed items entirely in favor of CMS Energy. As a result, no further adjustment was required in 2022.
EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three and six months ended
June 30, 2021. The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Three Months EndedSix Months Ended
June 302022202120222021
Operating revenue$— $69 $— $139 
Expenses
Operating expenses— 28 — 43 
Interest expense— 11 — 23 
Income before income taxes$— $30 $— $73 
Gain on sale1
— (5)5 (5)
Income from discontinued operations before income taxes$— $25 $5 $68 
Income tax expense— 7 1 16 
Income from discontinued operations, net of tax$— $18 $4 $52 
1Amounts in 2021 represent transaction costs.
Consumers Energy Company  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Exit Activities and Discontinued Operations Exit Activities and Discontinued Operations
Exit Activities: Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn coal-fueled electric generating units in 2023. In 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million. In its order in Consumers’ 2020 electric rate case, the MPSC approved deferred accounting treatment for these costs; Consumers began deferring these costs as a regulatory asset in 2021.
Under the 2021 IRP, Consumers will retire the J.H. Campbell coal-fueled generating units in 2025. Similar to the D.E. Karn program, Consumers will provide a retention incentive program to ensure necessary staffing at the J.H. Campbell generating complex through retirement. Based on the number of employees expected to participate, the aggregate cost of the program through 2025 is estimated to be $50 million. Additionally, Consumers recognized $4 million related to severance benefits during the six months ended June 30, 2022. This amount was recorded in other liabilities on its consolidated balance sheets at June 30, 2022. The 2021 IRP provides deferred accounting treatment for the retention and severance costs recognized during 2022; deferral of costs beyond 2022 will be addressed in future rate cases.
As of June 30, 2022, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $9 million has been deferred as a regulatory asset. The cumulative cost incurred and deferred as a regulatory asset related to the J.H. Campbell retention incentive program was less than $1 million.
Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Six Months Ended
June 3020222021
Retention benefit liability at beginning of period$14 $11 
Costs deferred as a regulatory asset1
3 4 
Retention benefit liability at the end of the period2
$17 $15 
1Includes $2 million for the three months ended June 30, 2022 and 2021.
2Includes current portion of other liabilities of $6 million at June 30, 2022 and $5 million at June 30, 2021.
Discontinued Operations: On October 1, 2021, EnerBank was acquired by Regions Bank. CMS Energy received proceeds of over $1 billion from the transaction and recognized a pre-tax gain of $657 million in 2021. In March 2022, CMS Energy received $6 million of additional proceeds as the result of a post-closing adjustment. Net of related transaction costs, CMS Energy recognized a pre-tax gain of $5 million during the six months ended June 30, 2022.
In December 2021, CMS Energy submitted a notice of disagreement to Regions Bank relating to a $36 million negative post-closing purchase price adjustment that it believed was inconsistent with the merger agreement. In accordance with the merger agreement, the disputed adjustment was submitted to a mutually agreed upon independent accounting firm for final determination. In June 2022, the accounting firm rendered a determination on the disputed items entirely in favor of CMS Energy. As a result, no further adjustment was required in 2022.
EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three and six months ended
June 30, 2021. The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Three Months EndedSix Months Ended
June 302022202120222021
Operating revenue$— $69 $— $139 
Expenses
Operating expenses— 28 — 43 
Interest expense— 11 — 23 
Income before income taxes$— $30 $— $73 
Gain on sale1
— (5)5 (5)
Income from discontinued operations before income taxes$— $25 $5 $68 
Income tax expense— 7 1 16 
Income from discontinued operations, net of tax$— $18 $4 $52 
1Amounts in 2021 represent transaction costs.
v3.22.2
Significant Accounting Policies (Policy)
 6 Months Ended
Jun. 30, 2022
Significant Accounting Policies [Line Items]  
EPS
Nonvested Stock Awards
CMS Energy’s nonvested stock awards are composed of participating and non‑participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the nonvested stock awards are considered participating securities. As such, the participating nonvested stock awards were included in the computation of basic EPS. The non‑participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non‑participating securities are also forfeited. Accordingly, the non‑participating awards and stock dividends were included in the computation of diluted EPS, but not in the computation of basic EPS.
Forward Equity Sale Contracts
CMS Energy has entered into forward equity sale contracts. These forward equity sale contracts are non‑participating securities. While the forward sale price in the forward equity sale contract is decreased on certain dates by certain predetermined amounts to reflect expected dividend payments, these price adjustments were set upon inception of the agreement and the forward contract does not give the owner the right to participate in undistributed earnings. Accordingly, the forward equity sale contracts were included in the computation of diluted EPS, but not in the computation of basic EPS. For further details on the forward equity sale contracts, see Note 3, Financings and Capitalization.
Accounts Receivable Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
Cash and Cash Equivalents Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Consolidation, Variable Interest Entity Aviator Wind Equity Holdings, and Aviator Wind are VIEs. In accordance with the associated limited liability company agreements, the tax equity investors are guaranteed preferred returns from NWO Holdco and Aviator Wind. However, CMS Enterprises manages and controls the operating activities of NWO Holdco and Aviator Wind Equity Holdings (and, thereby, Aviator Wind). As a result, CMS Enterprises is the primary beneficiary, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies.CMS Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While CMS Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships.
Consumers Energy Company  
Significant Accounting Policies [Line Items]  
Consumers Utility Revenue
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
•Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
•Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and
remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Alternative-Revenue Program: Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather-normalized, non-fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Accounts Receivable Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
Unbilled Revenues Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class.
Cash and Cash Equivalents Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
v3.22.2
Contingencies and Commitments (Tables)
 6 Months Ended
Jun. 30, 2022
Site Contingency [Line Items]  
Expected Remediation Costs By Year CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2022 and in each of the next five years:
In Millions
202220232024202520262027
CMS Energy
Long-term leachate disposal and operating and maintenance costs$2 $4 $4 $4 $4 $4 
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2022:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousindefinite$342 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite226 4 
Guarantee3
July 2011indefinite30 — 
Consumers
Guarantee3
July 2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in NWO Holdco and Aviator Wind to tax equity investors. CMS Enterprises 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, CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in NWO Holdco and Aviator Wind, see Note 12, Variable Interest Entities.
2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 13, Exit Activities and Discontinued Operations. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Consumers Energy Company  
Site Contingency [Line Items]  
Expected Remediation Costs By Year Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2022 and in each of the next five years:
In Millions
202220232024202520262027
Consumers
Remediation and other response activity costs$3 $9 $24 $11 $1 $1 
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2022:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousindefinite$342 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite226 4 
Guarantee3
July 2011indefinite30 — 
Consumers
Guarantee3
July 2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in NWO Holdco and Aviator Wind to tax equity investors. CMS Enterprises 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, CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in NWO Holdco and Aviator Wind, see Note 12, Variable Interest Entities.
2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 13, Exit Activities and Discontinued Operations. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
v3.22.2
Financings and Capitalization (Tables)
 6 Months Ended
Jun. 30, 2022
Debt Instrument [Line Items]  
Schedule of Major Long-Term Debt Retirements
Presented in the following table is a summary of major long-term debt retirements during the six months ended June 30, 2022:
Principal
(In Millions)		Interest RateRetirement DateMaturity Date
CMS Enterprises, including subsidiaries
Term loan facility$76 variableJune 2022October 2025
Schedule of Revolving Credit Facilities The following credit facilities with banks were available at June 30, 2022:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 2024
$550 $— $14 $536 
September 23, 2022
50 — 50 — 
CMS Enterprises, including subsidiaries
September 25, 20251
$37 $— $37 $— 
Consumers2
June 5, 2024
$850 $— $13 $837 
November 19, 2023
250 — 61 189 
1This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities.
2Obligations under these facilities are secured by first mortgage bonds of Consumers.
Schedule of Forward Contracts
Presented in the following table are details of CMS Energy’s forward sales contracts under this program at June 30, 2022:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialJune 30, 2022
September 15, 2020December 31, 2022846,759$61.04 $57.57 
December 22, 2020December 31, 2023115,59561.81 58.72 
Consumers Energy Company  
Debt Instrument [Line Items]  
Schedule of Revolving Credit Facilities The following credit facilities with banks were available at June 30, 2022:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 2024
$550 $— $14 $536 
September 23, 2022
50 — 50 — 
CMS Enterprises, including subsidiaries
September 25, 20251
$37 $— $37 $— 
Consumers2
June 5, 2024
$850 $— $13 $837 
November 19, 2023
250 — 61 189 
1This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities.
2Obligations under these facilities are secured by first mortgage bonds of Consumers.
v3.22.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Assets And Liabilities Measured At Fair Value On A Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
June 30
2022		December 31
2021		June 30
2022		December 31
2021
Assets1
Restricted cash equivalents$19 $24 $18 $22 
Nonqualified deferred compensation plan assets23 27 17 21 
Derivative instruments4 2 3 2 
Total assets$46 $53 $38 $45 
Liabilities1
Nonqualified deferred compensation plan liabilities$23 $27 $17 $21 
Derivative instruments4 7 — — 
Total liabilities$27 $34 $17 $21 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Consumers Energy Company  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Assets And Liabilities Measured At Fair Value On A Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
June 30
2022		December 31
2021		June 30
2022		December 31
2021
Assets1
Restricted cash equivalents$19 $24 $18 $22 
Nonqualified deferred compensation plan assets23 27 17 21 
Derivative instruments4 2 3 2 
Total assets$46 $53 $38 $45 
Liabilities1
Nonqualified deferred compensation plan liabilities$23 $27 $17 $21 
Derivative instruments4 7 — — 
Total liabilities$27 $34 $17 $21 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
v3.22.2
Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2022
Financial Instruments [Line Items]  
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements.
In Millions
June 30, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$12 $12 $— $— $12 $14 $14 $— $— $14 
Liabilities
Long-term debt2
12,332 11,227 1,058 8,539 1,630 12,419 13,800 1,189 10,656 1,955 
Long-term payables3
9 9 — — 9 31 32 — — 32 
Consumers
Assets
Long-term receivables1
$12 $12 $— $— $12 $14 $14 $— $— $14 
Notes receivable – related party4
102 102 — — 102 104 104 — — 104 
Liabilities
Long-term debt5
8,403 7,529 — 5,899 1,630 8,415 9,410 — 7,455 1,955 
1Includes current portion of long-term accounts receivable of $8 million at June 30, 2022 and $9 million at December 31, 2021.
2Includes current portion of long-term debt of $665 million at June 30, 2022 and $373 million at December 31, 2021.
3Includes current portion of long-term payables of $1 million at June 30, 2022 and $23 million at December 31, 2021.
4Includes current portion of notes receivable – related party of $7 million at June 30, 2022 and December 31, 2021.
5Includes current portion of long-term debt of $665 million at June 30, 2022 and $365 million at December 31, 2021.
Consumers Energy Company  
Financial Instruments [Line Items]  
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements.
In Millions
June 30, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$12 $12 $— $— $12 $14 $14 $— $— $14 
Liabilities
Long-term debt2
12,332 11,227 1,058 8,539 1,630 12,419 13,800 1,189 10,656 1,955 
Long-term payables3
9 9 — — 9 31 32 — — 32 
Consumers
Assets
Long-term receivables1
$12 $12 $— $— $12 $14 $14 $— $— $14 
Notes receivable – related party4
102 102 — — 102 104 104 — — 104 
Liabilities
Long-term debt5
8,403 7,529 — 5,899 1,630 8,415 9,410 — 7,455 1,955 
1Includes current portion of long-term accounts receivable of $8 million at June 30, 2022 and $9 million at December 31, 2021.
2Includes current portion of long-term debt of $665 million at June 30, 2022 and $373 million at December 31, 2021.
3Includes current portion of long-term payables of $1 million at June 30, 2022 and $23 million at December 31, 2021.
4Includes current portion of notes receivable – related party of $7 million at June 30, 2022 and December 31, 2021.
5Includes current portion of long-term debt of $665 million at June 30, 2022 and $365 million at December 31, 2021.
v3.22.2
Retirement Benefits (Tables)
 6 Months Ended
Jun. 30, 2022
Defined Benefit Plan Disclosure [Line Items]  
Schedule Of Net Benefit Costs Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans:
In Millions
DB Pension PlansOPEB Plan
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
June 3020222021202220212022202120222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$11 $13 $23 $27 $5 $5 $9 $9 
Interest cost20 15 38 30 7 5 14 11 
Expected return on plan assets(52)(52)(104)(104)(29)(27)(58)(54)
Amortization of:
Net loss10 26 27 51 1 2 1 4 
Prior service cost (credit)1 1 2 2 (14)(13)(26)(26)
Settlement loss2 2 4 3 — — — — 
Net periodic cost (credit)$(8)$5 $(10)$9 $(30)$(28)$(60)$(56)
Consumers
Net periodic cost (credit)
Service cost$11 $13 $23 $26 $5 $5 $9 $9 
Interest cost20 14 36 28 7 5 14 11 
Expected return on plan assets(50)(49)(99)(98)(27)(26)(54)(51)
Amortization of:
Net loss9 24 25 49 — 2 — 4 
Prior service cost (credit)1 1 2 2 (13)(13)(25)(26)
Settlement loss2 2 4 3 — — — — 
Net periodic cost (credit)$(7)$5 $(9)$10 $(28)$(27)$(56)$(53)
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Schedule Of Net Benefit Costs Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans:
In Millions
DB Pension PlansOPEB Plan
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
June 3020222021202220212022202120222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$11 $13 $23 $27 $5 $5 $9 $9 
Interest cost20 15 38 30 7 5 14 11 
Expected return on plan assets(52)(52)(104)(104)(29)(27)(58)(54)
Amortization of:
Net loss10 26 27 51 1 2 1 4 
Prior service cost (credit)1 1 2 2 (14)(13)(26)(26)
Settlement loss2 2 4 3 — — — — 
Net periodic cost (credit)$(8)$5 $(10)$9 $(30)$(28)$(60)$(56)
Consumers
Net periodic cost (credit)
Service cost$11 $13 $23 $26 $5 $5 $9 $9 
Interest cost20 14 36 28 7 5 14 11 
Expected return on plan assets(50)(49)(99)(98)(27)(26)(54)(51)
Amortization of:
Net loss9 24 25 49 — 2 — 4 
Prior service cost (credit)1 1 2 2 (13)(13)(25)(26)
Settlement loss2 2 4 3 — — — — 
Net periodic cost (credit)$(7)$5 $(9)$10 $(28)$(27)$(56)$(53)
v3.22.2
Income Taxes (Tables)
 6 Months Ended
Jun. 30, 2022
Income Taxes [Line Items]  
Schedule Of Effective Income Tax Rate Reconciliation
Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:
Six Months Ended June 3020222021
CMS Energy, including Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect5.5 5.4 
TCJA excess deferred taxes1
(7.2)(5.9)
Production tax credits(5.1)(5.1)
Accelerated flow-through of regulatory tax benefits2
(4.3)(3.3)
Other, net— 0.1 
Effective tax rate9.9 %12.2 %
Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
5.2 5.2 
TCJA excess deferred taxes1
(6.0)(4.9)
Production tax credits(3.8)(3.2)
Accelerated flow-through of regulatory tax benefits2
(3.6)(3.0)
Other, net(0.4)(0.5)
Effective tax rate12.4 %14.6 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022.
2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022.
Consumers Energy Company  
Income Taxes [Line Items]  
Schedule Of Effective Income Tax Rate Reconciliation
Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:
Six Months Ended June 3020222021
CMS Energy, including Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect5.5 5.4 
TCJA excess deferred taxes1
(7.2)(5.9)
Production tax credits(5.1)(5.1)
Accelerated flow-through of regulatory tax benefits2
(4.3)(3.3)
Other, net— 0.1 
Effective tax rate9.9 %12.2 %
Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
5.2 5.2 
TCJA excess deferred taxes1
(6.0)(4.9)
Production tax credits(3.8)(3.2)
Accelerated flow-through of regulatory tax benefits2
(3.6)(3.0)
Other, net(0.4)(0.5)
Effective tax rate12.4 %14.6 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022.
2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022.
v3.22.2
Earnings Per Share - CMS Energy (Tables)
 6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Basic And Diluted EPS Computations
Presented in the following table are CMS Energy’s basic and diluted EPS computations based on income from continuing operations:
In Millions, Except Per Share Amounts
Three Months EndedSix Months Ended
June 302022202120222021
Income available to common stockholders
Income from continuing operations$142 $153 $483 $461 
Less loss attributable to noncontrolling interests(6)(5)(14)(12)
Less preferred stock dividends3 — 5 — 
Income from continuing operations available to common stockholders – basic and diluted$145 $158 $492 $473 
Average common shares outstanding
Weighted-average shares – basic289.5 289.0 289.4 288.8 
Add dilutive nonvested stock awards0.4 0.4 0.4 0.5 
Add dilutive forward equity sale contracts0.2 — 0.2 — 
Weighted-average shares – diluted290.1 289.4 290.0 289.3 
Income from continuing operations per average common share available to common stockholders
Basic$0.50 $0.55 $1.70 $1.64 
Diluted0.50 0.55 1.70 1.64 
v3.22.2
Revenue (Tables)
 6 Months Ended
Jun. 30, 2022
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue Presented in the following tables are the components of operating revenue:
In Millions
Three Months Ended June 30, 2022Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,322 $468 $— $1,790 
Other— — 52 52 
Revenue recognized from contracts with customers$1,322 $468 $52 $1,842 
Leasing income— — 66 66 
Financing income2 2 — 4 
Consumers alternative-revenue programs1 7 — 8 
Total operating revenue – CMS Energy$1,325 $477 $118 $1,920 
Consumers
Consumers utility revenue
Residential$597 $309 $906 
Commercial420 99 519 
Industrial207 15 222 
Other98 45 143 
Revenue recognized from contracts with customers$1,322 $468 $1,790 
Financing income2 2 4 
Alternative-revenue programs1 7 8 
Total operating revenue – Consumers$1,325 $477 $1,802 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $53 million for the three months ended June 30, 2022.
In Millions
Three Months Ended June 30, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,158 $332 $— $1,490 
Other— — 25 25 
Revenue recognized from contracts with customers$1,158 $332 $25 $1,515 
Leasing income— — 40 40 
Financing income2 1 — 3 
Total operating revenue – CMS Energy$1,160 $333 $65 $1,558 
Consumers
Consumers utility revenue
Residential$561 $220 $781 
Commercial390 59 449 
Industrial153 8 161 
Other54 45 99 
Revenue recognized from contracts with customers$1,158 $332 $1,490 
Financing income2 1 3 
Total operating revenue – Consumers$1,160 $333 $1,493 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $26 million for the three months ended June 30, 2021.
In Millions
Six Months Ended June 30, 2022Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$2,560 $1,515 $— $4,075 
Other— — 85 85 
Revenue recognized from contracts with customers$2,560 $1,515 $85 $4,160 
Leasing income— — 124 124 
Financing income5 4 — 9 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$2,566 $1,519 $209 $4,294 
Consumers
Consumers utility revenue
Residential$1,188 $1,049 $2,237 
Commercial804 320 1,124 
Industrial375 43 418 
Other193 103 296 
Revenue recognized from contracts with customers$2,560 $1,515 $4,075 
Financing income5 4 9 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$2,566 $1,519 $4,085 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $97 million for the six months ended June 30, 2022.
In Millions
Six Months Ended June 30, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$2,289 $1,133 $— $3,422 
Other— — 55 55 
Revenue recognized from contracts with customers$2,289 $1,133 $55 $3,477 
Leasing income— — 86 86 
Financing income5 3 — 8 
Total operating revenue – CMS Energy$2,294 $1,136 $141 $3,571 
Consumers
Consumers utility revenue
Residential$1,129 $774 $1,903 
Commercial735 222 957 
Industrial291 31 322 
Other134 106 240 
Revenue recognized from contracts with customers$2,289 $1,133 $3,422 
Financing income5 3 8 
Total operating revenue – Consumers$2,294 $1,136 $3,430 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $59 million for the six months ended June 30, 2021.
Consumers Energy Company  
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue Presented in the following tables are the components of operating revenue:
In Millions
Three Months Ended June 30, 2022Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,322 $468 $— $1,790 
Other— — 52 52 
Revenue recognized from contracts with customers$1,322 $468 $52 $1,842 
Leasing income— — 66 66 
Financing income2 2 — 4 
Consumers alternative-revenue programs1 7 — 8 
Total operating revenue – CMS Energy$1,325 $477 $118 $1,920 
Consumers
Consumers utility revenue
Residential$597 $309 $906 
Commercial420 99 519 
Industrial207 15 222 
Other98 45 143 
Revenue recognized from contracts with customers$1,322 $468 $1,790 
Financing income2 2 4 
Alternative-revenue programs1 7 8 
Total operating revenue – Consumers$1,325 $477 $1,802 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $53 million for the three months ended June 30, 2022.
In Millions
Three Months Ended June 30, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,158 $332 $— $1,490 
Other— — 25 25 
Revenue recognized from contracts with customers$1,158 $332 $25 $1,515 
Leasing income— — 40 40 
Financing income2 1 — 3 
Total operating revenue – CMS Energy$1,160 $333 $65 $1,558 
Consumers
Consumers utility revenue
Residential$561 $220 $781 
Commercial390 59 449 
Industrial153 8 161 
Other54 45 99 
Revenue recognized from contracts with customers$1,158 $332 $1,490 
Financing income2 1 3 
Total operating revenue – Consumers$1,160 $333 $1,493 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $26 million for the three months ended June 30, 2021.
In Millions
Six Months Ended June 30, 2022Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$2,560 $1,515 $— $4,075 
Other— — 85 85 
Revenue recognized from contracts with customers$2,560 $1,515 $85 $4,160 
Leasing income— — 124 124 
Financing income5 4 — 9 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$2,566 $1,519 $209 $4,294 
Consumers
Consumers utility revenue
Residential$1,188 $1,049 $2,237 
Commercial804 320 1,124 
Industrial375 43 418 
Other193 103 296 
Revenue recognized from contracts with customers$2,560 $1,515 $4,075 
Financing income5 4 9 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$2,566 $1,519 $4,085 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $97 million for the six months ended June 30, 2022.
In Millions
Six Months Ended June 30, 2021Electric UtilityGas Utility
Enterprises1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$2,289 $1,133 $— $3,422 
Other— — 55 55 
Revenue recognized from contracts with customers$2,289 $1,133 $55 $3,477 
Leasing income— — 86 86 
Financing income5 3 — 8 
Total operating revenue – CMS Energy$2,294 $1,136 $141 $3,571 
Consumers
Consumers utility revenue
Residential$1,129 $774 $1,903 
Commercial735 222 957 
Industrial291 31 322 
Other134 106 240 
Revenue recognized from contracts with customers$2,289 $1,133 $3,422 
Financing income5 3 8 
Total operating revenue – Consumers$2,294 $1,136 $3,430 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $59 million for the six months ended June 30, 2021.
v3.22.2
Cash and Cash Equivalents (Tables)
 6 Months Ended
Jun. 30, 2022
Cash and Cash Equivalents [Line Items]  
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets:
In Millions
June 30, 2022December 31, 2021
CMS Energy, including Consumers
Cash and cash equivalents$77 $452 
Restricted cash and cash equivalents19 24 
Cash and cash equivalents, including restricted amounts – CMS Energy$96 $476 
Consumers
Cash and cash equivalents$8 $22 
Restricted cash and cash equivalents18 22 
Cash and cash equivalents, including restricted amounts – Consumers$26 $44 
Consumers Energy Company  
Cash and Cash Equivalents [Line Items]  
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets:
In Millions
June 30, 2022December 31, 2021
CMS Energy, including Consumers
Cash and cash equivalents$77 $452 
Restricted cash and cash equivalents19 24 
Cash and cash equivalents, including restricted amounts – CMS Energy$96 $476 
Consumers
Cash and cash equivalents$8 $22 
Restricted cash and cash equivalents18 22 
Cash and cash equivalents, including restricted amounts – Consumers$26 $44 
v3.22.2
Reportable Segments (Tables)
 6 Months Ended
Jun. 30, 2022
Segment Reporting Information [Line Items]  
Schedule Of Financial Information By Reportable Segments
Presented in the following tables is financial information by segment:
In Millions
Three Months EndedSix Months Ended
June 302022202120222021
CMS Energy, including Consumers
Operating revenue
Electric utility$1,325 $1,160 $2,566 $2,294 
Gas utility477 333 1,519 1,136 
Enterprises118 65 209 141 
Total operating revenue – CMS Energy$1,920 $1,558 $4,294 $3,571 
Consumers
Operating revenue
Electric utility$1,325 $1,160 $2,566 $2,294 
Gas utility477 333 1,519 1,136 
Total operating revenue – Consumers$1,802 $1,493 $4,085 $3,430 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$140 $154 $307 $309 
Gas utility36 36 252 217 
Enterprises7 5 15 19 
Other reconciling items(38)(19)(78)(20)
Total net income available to common stockholders – CMS Energy$145 $176 $496 $525 
Consumers
Net income (loss) available to common stockholder
Electric utility$140 $154 $307 $309 
Gas utility36 36 252 217 
Other reconciling items(4)(1)(4)(1)
Total net income available to common stockholder – Consumers$172 $189 $555 $525 
In Millions
June 30, 2022December 31, 2021
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1
$17,333 $18,147 
Gas utility1
10,946 10,601 
Enterprises1,122 1,122 
Other reconciling items25 23 
Total plant, property, and equipment, gross – CMS Energy$29,426 $29,893 
Consumers
Plant, property, and equipment, gross
Electric utility1
$17,333 $18,147 
Gas utility1
10,946 10,601 
Other reconciling items25 23 
Total plant, property, and equipment, gross – Consumers$28,304 $28,771 
CMS Energy, including Consumers
Total assets
Electric utility1
$16,860 $16,493 
Gas utility1
10,725 10,517 
Enterprises1,387 1,312 
Other reconciling items68 431 
Total assets – CMS Energy$29,040 $28,753 
Consumers
Total assets
Electric utility1
$16,922 $16,555 
Gas utility1
10,771 10,564 
Other reconciling items22 21 
Total assets – Consumers$27,715 $27,140 
1Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
Consumers Energy Company  
Segment Reporting Information [Line Items]  
Schedule Of Financial Information By Reportable Segments
Presented in the following tables is financial information by segment:
In Millions
Three Months EndedSix Months Ended
June 302022202120222021
CMS Energy, including Consumers
Operating revenue
Electric utility$1,325 $1,160 $2,566 $2,294 
Gas utility477 333 1,519 1,136 
Enterprises118 65 209 141 
Total operating revenue – CMS Energy$1,920 $1,558 $4,294 $3,571 
Consumers
Operating revenue
Electric utility$1,325 $1,160 $2,566 $2,294 
Gas utility477 333 1,519 1,136 
Total operating revenue – Consumers$1,802 $1,493 $4,085 $3,430 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$140 $154 $307 $309 
Gas utility36 36 252 217 
Enterprises7 5 15 19 
Other reconciling items(38)(19)(78)(20)
Total net income available to common stockholders – CMS Energy$145 $176 $496 $525 
Consumers
Net income (loss) available to common stockholder
Electric utility$140 $154 $307 $309 
Gas utility36 36 252 217 
Other reconciling items(4)(1)(4)(1)
Total net income available to common stockholder – Consumers$172 $189 $555 $525 
In Millions
June 30, 2022December 31, 2021
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1
$17,333 $18,147 
Gas utility1
10,946 10,601 
Enterprises1,122 1,122 
Other reconciling items25 23 
Total plant, property, and equipment, gross – CMS Energy$29,426 $29,893 
Consumers
Plant, property, and equipment, gross
Electric utility1
$17,333 $18,147 
Gas utility1
10,946 10,601 
Other reconciling items25 23 
Total plant, property, and equipment, gross – Consumers$28,304 $28,771 
CMS Energy, including Consumers
Total assets
Electric utility1
$16,860 $16,493 
Gas utility1
10,725 10,517 
Enterprises1,387 1,312 
Other reconciling items68 431 
Total assets – CMS Energy$29,040 $28,753 
Consumers
Total assets
Electric utility1
$16,922 $16,555 
Gas utility1
10,771 10,564 
Other reconciling items22 21 
Total assets – Consumers$27,715 $27,140 
1Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
v3.22.2
Variable Interest Entities (Tables)
 6 Months Ended
Jun. 30, 2022
Variable Interest Entities [Abstract]  
Schedule of Variable Interest Entities
Presented in the following table are the carrying values of the VIEs’ assets and liabilities included on CMS Energy’s consolidated balance sheets:
In Millions
June 30, 2022December 31, 2021
Current
Cash and cash equivalents$24 $21 
Restricted cash and cash equivalents— 1 
Accounts receivable10 3 
Prepayments and other current assets3 2 
Non-current
Plant, property, and equipment, net841 856 
Total assets1
$878 $883 
Current
Accounts payable$18 $17 
Other Liabilities— 2 
Non-current
Asset retirement obligations23 23 
Other Liabilities4 
Total liabilities$41 $46 
1Assets may be used only to meet VIEs’ obligations and commitments.
Presented in the following table is information about these partnerships:
NameNature of the EntityNature of CMS Energy’s Involvement
T.E.S. Filer City Coal-fueled power generatorLong-term PPA between partnership and Consumers
Employee assignment agreement
Grayling Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Genesee Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Craven Wood waste-fueled power generatorOperating and management contract
1Reduced dispatch agreements allow the facilities to be dispatched based on the market price of power compared with the cost of production of the plants. This results in fuel cost savings that each partnership shares with Consumers’ customers.
v3.22.2
Exit Activities and Discontinued Operations - (Tables)
 6 Months Ended
Jun. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Retention Benefit Liability Roll Forward
Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Six Months Ended
June 3020222021
Retention benefit liability at beginning of period$14 $11 
Costs deferred as a regulatory asset1
3 4 
Retention benefit liability at the end of the period2
$17 $15 
1Includes $2 million for the three months ended June 30, 2022 and 2021.
2Includes current portion of other liabilities of $6 million at June 30, 2022 and $5 million at June 30, 2021.
Schedule of Income, Assets, and Liabilities from Discontinued Operations The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Three Months EndedSix Months Ended
June 302022202120222021
Operating revenue$— $69 $— $139 
Expenses
Operating expenses— 28 — 43 
Interest expense— 11 — 23 
Income before income taxes$— $30 $— $73 
Gain on sale1
— (5)5 (5)
Income from discontinued operations before income taxes$— $25 $5 $68 
Income tax expense— 7 1 16 
Income from discontinued operations, net of tax$— $18 $4 $52 
1Amounts in 2021 represent transaction costs.
Consumers Energy Company  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Retention Benefit Liability Roll Forward
Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Six Months Ended
June 3020222021
Retention benefit liability at beginning of period$14 $11 
Costs deferred as a regulatory asset1
3 4 
Retention benefit liability at the end of the period2
$17 $15 
1Includes $2 million for the three months ended June 30, 2022 and 2021.
2Includes current portion of other liabilities of $6 million at June 30, 2022 and $5 million at June 30, 2021.
v3.22.2
Regulatory Matters - Quarterly Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Jan. 31, 2022
Public Utilities, General Disclosures [Line Items]                
Operating Revenue     $ 1,920 $ 1,558 $ 4,294 $ 3,571    
Regulatory assets $ 3,367   3,367   3,367   $ 2,259  
Regulatory liabilities 3,873   3,873   3,873   3,802  
Consumers Energy Company                
Public Utilities, General Disclosures [Line Items]                
Operating Revenue     1,802 $ 1,493 4,085 $ 3,430    
Regulatory assets 3,367   3,367   3,367   2,259  
Regulatory liabilities 3,873   3,873   3,873   3,802  
Consumers Energy Company | Radio Tower Assets                
Public Utilities, General Disclosures [Line Items]                
Regulatory liabilities $ 7   7   7      
Consumers Energy Company | J.H. Campbell Generating Units                
Public Utilities, General Disclosures [Line Items]                
Rate of return on equity authorized 9.00%              
Regulatory assets $ 1,300   1,300   1,300      
Consumers Energy Company | Electric Rate Case                
Public Utilities, General Disclosures [Line Items]                
Estimate of disallowed costs 22   22   22      
Recommended disallowed costs               $ 11
Additional annual rate increase authorized   $ 5            
Consumers Energy Company | Energy Waste Reduction Plan Incentive                
Public Utilities, General Disclosures [Line Items]                
Requested recovery/collection 46   46   46      
Operating Revenue             $ 46  
Consumers Energy Company | GCR underrecoveries                
Public Utilities, General Disclosures [Line Items]                
Underrecovery for gas fuel and power supply costs 23   23   23      
Consumers Energy Company | PSCR underrecoveries                
Public Utilities, General Disclosures [Line Items]                
Underrecovery for gas fuel and power supply costs $ 153   $ 153   $ 153      
v3.22.2
Contingencies and Commitments (Contingencies And Commitments) (Details)
$ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended 24 Months Ended
Jul. 31, 2022
USD ($)
Jun. 30, 2022
USD ($)
site
Sep. 30, 2020
USD ($)
Jun. 30, 2022
USD ($)
site
Jun. 30, 2021
USD ($)
Jun. 30, 2022
USD ($)
site
Jun. 30, 2021
USD ($)
Dec. 31, 2021
USD ($)
Loss Contingencies [Line Items]                
Regulatory assets   $ 3,367   $ 3,367   $ 3,367   $ 2,259
Operating Revenue       1,920 $ 1,558 4,294 $ 3,571  
Consumers Energy Company                
Loss Contingencies [Line Items]                
Regulatory assets   $ 3,367   3,367   3,367   2,259
Cost of gas sold       213 94 678 372  
Operating Revenue       $ 1,802 $ 1,493 $ 4,085 $ 3,430  
Consumers Energy Company | Ludington                
Loss Contingencies [Line Items]                
Ownership share   51.00%   51.00%   51.00%    
Consumers Energy Company | Ludington Plant Overhaul Contract Dispute                
Loss Contingencies [Line Items]                
Damages sought   $ 15            
Consumers Energy Company | J.H. Campbell 3 Plant Retirement Contract Dispute | Subsequent Event                
Loss Contingencies [Line Items]                
Damages sought $ 37              
Consumers Energy Company | Tax And Other Indemnity Obligations                
Loss Contingencies [Line Items]                
Carrying value of indemnity obligations   1   $ 1   $ 1    
Consumers Energy Company | Manufactured Gas Plant                
Loss Contingencies [Line Items]                
Regulatory assets   107   107   107    
Bay Harbor                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies   $ 44   $ 44   $ 44    
Discounted projected costs rate   4.34%   4.34%   4.34%    
Accrual for environmental loss contingencies, inflation rate   1.00%   1.00%   1.00%    
Remaining undiscounted obligation amount   $ 55   $ 55   $ 55    
CERCLA Liability | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies   3   3   3    
CERCLA Liability | Minimum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs   3   3   3    
CERCLA Liability | Maximum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs   8   8   8    
Manufactured Gas Plant | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies   $ 57   $ 57   $ 57    
Discounted projected costs rate   2.57%   2.57%   2.57%    
Accrual for environmental loss contingencies, inflation rate   2.50%   2.50%   2.50%    
Remaining undiscounted obligation amount   $ 60   $ 60   $ 60    
Number of former MGPs | site   23   23   23    
Regulatory asset collection period           10 years    
Electric Utility | NREPA | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies   $ 2   $ 2   $ 2    
Electric Utility | NREPA | Minimum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs   2   2   2    
Electric Utility | NREPA | Maximum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs   4   4   4    
Gas Utility | NREPA | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies   1   1   1    
Gas Utility | NREPA | Maximum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies   $ 3   3   3    
Ray Compressor Station | Consumers Energy Company                
Loss Contingencies [Line Items]                
Plant additions               $ 17
Insurance recoveries received           13    
Impairment charge       $ 10   $ 10    
Ray Compressor Station | Consumers Energy Company | GCR underrecoveries                
Loss Contingencies [Line Items]                
Cost of gas sold     $ 7          
v3.22.2
Contingencies and Commitments (Expected Remediation Cost By Year) (Details)
$ in Millions
Jun. 30, 2022
USD ($)
Bay Harbor  
Site Contingency [Line Items]  
2022 $ 2
2023 4
2024 4
2025 4
2026 4
2027 4
Manufactured Gas Plant | Consumers Energy Company  
Site Contingency [Line Items]  
2022 3
2023 9
2024 24
2025 11
2026 1
2027 $ 1
v3.22.2
Contingencies and Commitments (Guarantees) (Details)
$ in Millions
 6 Months Ended
Jun. 30, 2022
USD ($)
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership  
Guarantees And Other Contingencies [Line Items]  
Ownership percentage 49.00%
Guarantees  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 30
Carrying Amount $ 0
Guarantees | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 30
Carrying Amount $ 0
Indemnification agreement from sale of membership interests in VIEs  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 342
Carrying Amount $ 0
Indemnity obligations from stock and asset sale agreements  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 226
Carrying Amount $ 4
v3.22.2
Financings and Capitalization (Major Long-Term Debt Retirements) (Details) - USD ($)
$ in Millions
 1 Months Ended
Jul. 31, 2022
Jun. 30, 2022
NWO Holdco, L.L.C    
Debt Instrument [Line Items]    
Sale of noncontrolling interest   $ 49
Term loan facility | Term Loan Facility Due October 2025    
Debt Instrument [Line Items]    
Principal (In Millions)   $ 76
Term loan facility | Unsecured Term Loan Credit Agreement Due January 2024 | Subsequent Event    
Debt Instrument [Line Items]    
Principal (In Millions) $ 1,000  
Term loan facility | Unsecured Term Loan Credit Agreement Due January 2024 | Subsequent Event | SOFR    
Debt Instrument [Line Items]    
Basis spread on variable rate 0.65%  
v3.22.2
Financings and Capitalization (Schedule of Revolving Credit Facilities) (Details)
Jun. 30, 2022
USD ($)
Consumers Energy Company | Revolving Credit Facilities June 5, 2024  
Line of Credit Facility [Line Items]  
Amount of Facility $ 850,000,000
Amount Borrowed 0
Letters of Credit Outstanding 13,000,000
Amount Available 837,000,000
Consumers Energy Company | Revolving Credit Facilities November 19, 2023  
Line of Credit Facility [Line Items]  
Amount of Facility 250,000,000
Amount Borrowed 0
Letters of Credit Outstanding 61,000,000
Amount Available 189,000,000
CMS Energy | Revolving Credit Facilities June 5, 2024  
Line of Credit Facility [Line Items]  
Amount of Facility 550,000,000
Amount Borrowed 0
Letters of Credit Outstanding 14,000,000
Amount Available 536,000,000
CMS Energy | Revolving Credit Facilities September 23, 2022  
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
CMS Enterprises Including Subsidiaries | Revolving Credit Facilities September 25, 2025  
Line of Credit Facility [Line Items]  
Amount of Facility 37,000,000
Amount Borrowed 0
Letters of Credit Outstanding 37,000,000
Amount Available $ 0
v3.22.2
Financings and Capitalization (Narrative) (Details) - USD ($)
 6 Months Ended
Jun. 30, 2022
Dec. 31, 2021
Financing And Capitalization [Line Items]    
Limitation on payment of stock dividends $ 6,600,000,000  
Dividends paid 433,000,000  
Stock offering program maximum value 500,000,000  
Net cash required to settle forward contracts $ 9,000,000  
Number of shares required to settle forward contracts (in shares) 139,666  
Consumers Energy Company    
Financing And Capitalization [Line Items]    
Notes payable – related parties $ 32,000,000 $ 392,000,000
Unrestricted retained earnings 1,900,000,000  
Consumers Energy Company | Credit Agreement    
Financing And Capitalization [Line Items]    
Maximum borrowing capacity 500,000,000  
Notes payable – related parties $ 32,000,000  
Interest rate at period end 0.825%  
Consumers Energy Company | Credit Agreement | London Interbank Offered Rate (LIBOR)    
Financing And Capitalization [Line Items]    
Basis spread on variable rate 0.10%  
Consumers Energy Company | Commercial Paper    
Financing And Capitalization [Line Items]    
Short-term debt authorized borrowings $ 500,000,000  
Short-term borrowings outstanding $ 45,000,000  
Interest rate 1.95%  
v3.22.2
Financings and Capitalization (Schedule of Forward Stock Contracts) (Details) - $ / shares
Jun. 30, 2022
Dec. 22, 2020
Sep. 15, 2020
Forward Contracts Entered Into September 15, 2020 And Maturing December 31, 2022      
Debt and Equity Securities, FV-NI [Line Items]      
Number of Shares     846,759
Initial forward price (in dollars per share) $ 57.57   $ 61.04
Forward Contracts Entered Into December 22, 2020 And Maturing December 31, 2023      
Debt and Equity Securities, FV-NI [Line Items]      
Number of Shares   115,595  
Initial forward price (in dollars per share) $ 58.72 $ 61.81  
v3.22.2
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Assets    
Restricted cash equivalents $ 19 $ 24
Derivative instruments 4 2
Liabilities    
Derivative instruments 4 7
Consumers Energy Company    
Assets    
Restricted cash equivalents 18 22
Derivative instruments 3 2
Liabilities    
Derivative instruments 0 0
Fair Value, Inputs, Level 1    
Assets    
Restricted cash equivalents 19 24
Nonqualified deferred compensation plan assets 23 27
Liabilities    
Nonqualified deferred compensation plan liabilities 23 27
Fair Value, Inputs, Level 1 | Consumers Energy Company    
Assets    
Restricted cash equivalents 18 22
Nonqualified deferred compensation plan assets 17 21
Liabilities    
Nonqualified deferred compensation plan liabilities 17 21
Fair Value, Inputs, Level 1, 2 and 3    
Assets    
Total assets 46 53
Liabilities    
Total liabilities 27 34
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company    
Assets    
Total assets 38 45
Liabilities    
Total liabilities $ 17 $ 21
v3.22.2
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Liabilities    
Current accounts receivable $ 8 $ 9
Current portion of long term debt 665 373
Current portion of long-term payables 1 23
Carrying Amount    
Assets    
Long-term receivables 12 14
Liabilities    
Long-term debt 12,332 12,419
Long-term payables 9 31
Fair Value    
Assets    
Long-term receivables 12 14
Liabilities    
Long-term debt 11,227 13,800
Long-term payables 9 32
Consumers Energy Company    
Liabilities    
Current accounts receivable 8 9
Current portion of long term debt 665 365
DB SERP note receivable – related party 7 7
Consumers Energy Company | Carrying Amount    
Assets    
Long-term receivables 12 14
Notes receivable related party 102 104
Liabilities    
Long-term debt 8,403 8,415
Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 12 14
Notes receivable related party 102 104
Liabilities    
Long-term debt 7,529 9,410
Level 1 | Fair Value    
Assets    
Long-term receivables 0 0
Liabilities    
Long-term debt 1,058 1,189
Long-term payables 0 0
Level 1 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 0 0
Notes receivable related party 0 0
Liabilities    
Long-term debt 0 0
Level 2 | Fair Value    
Assets    
Long-term receivables 0 0
Liabilities    
Long-term debt 8,539 10,656
Long-term payables 0 0
Level 2 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 0 0
Notes receivable related party 0 0
Liabilities    
Long-term debt 5,899 7,455
Level 3 | Fair Value    
Assets    
Long-term receivables 12 14
Liabilities    
Long-term debt 1,630 1,955
Long-term payables 9 32
Level 3 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 12 14
Notes receivable related party 102 104
Liabilities    
Long-term debt $ 1,630 $ 1,955
v3.22.2
Financial Instruments (Narrative) (Details)
Jun. 30, 2022
Consumers Energy Company | CMS Energy Note Payable  
Financial Instruments [Line Items]  
Interest rate 4.10%
v3.22.2
Retirement Benefits (Quarterly Narrative) (Details) - DB Pension Plans
$ in Millions
 6 Months Ended
Jun. 30, 2022
USD ($)
Defined Benefit Plan Disclosure [Line Items]  
Settlement loss $ 8
Increase (decrease) in non-current pension plan assets 113
Loss to AOCI 3
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Increase (decrease) in non-current pension plan assets 110
Pension Costs  
Defined Benefit Plan Disclosure [Line Items]  
Settlement loss 8
Increase (decrease) in non-current pension plan assets $ (110)
Pension Costs | DB Pension Plan A Settlement  
Defined Benefit Plan Disclosure [Line Items]  
Regulatory asset collection period 8 years
Pension Costs | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Settlement loss $ 8
Increase (decrease) in non-current pension plan assets $ (110)
v3.22.2
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
DB Pension Plans        
Defined Benefit Plan, Roll Forwards [Abstract]        
Service cost $ 11 $ 13 $ 23 $ 27
Interest cost 20 15 38 30
Expected return on plan assets (52) (52) (104) (104)
Amortization of        
Net loss 10 26 27 51
Prior service cost (credit) 1 1 2 2
Settlement loss 2 2 4 3
Net periodic cost (credit) (8) 5 (10) 9
DB Pension Plans | Consumers Energy Company        
Defined Benefit Plan, Roll Forwards [Abstract]        
Service cost 11 13 23 26
Interest cost 20 14 36 28
Expected return on plan assets (50) (49) (99) (98)
Amortization of        
Net loss 9 24 25 49
Prior service cost (credit) 1 1 2 2
Settlement loss 2 2 4 3
Net periodic cost (credit) (7) 5 (9) 10
OPEB Plan        
Defined Benefit Plan, Roll Forwards [Abstract]        
Service cost 5 5 9 9
Interest cost 7 5 14 11
Expected return on plan assets (29) (27) (58) (54)
Amortization of        
Net loss 1 2 1 4
Prior service cost (credit) (14) (13) (26) (26)
Settlement loss 0 0 0 0
Net periodic cost (credit) (30) (28) (60) (56)
OPEB Plan | Consumers Energy Company        
Defined Benefit Plan, Roll Forwards [Abstract]        
Service cost 5 5 9 9
Interest cost 7 5 14 11
Expected return on plan assets (27) (26) (54) (51)
Amortization of        
Net loss 0 2 0 4
Prior service cost (credit) (13) (13) (25) (26)
Settlement loss 0 0 0 0
Net periodic cost (credit) $ (28) $ (27) $ (56) $ (53)
v3.22.2
Income Taxes (Schedule Of Effective Income Rate Reconciliation) (Details)
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Income Taxes [Line Items]    
U.S. federal income tax rate 21.00% 21.00%
Increase (decrease) in income taxes from:    
State and local income taxes, net of federal effect 5.50% 5.40%
TCJA excess deferred taxes (7.20%) (5.90%)
Production tax credits (5.10%) (5.10%)
Accelerated flow-through of regulatory tax benefits (4.30%) (3.30%)
Other, net 0.00% 0.10%
Effective tax rate 9.90% 12.20%
Consumers Energy Company    
Income Taxes [Line Items]    
U.S. federal income tax rate 21.00% 21.00%
Increase (decrease) in income taxes from:    
State and local income taxes, net of federal effect 5.20% 5.20%
TCJA excess deferred taxes (6.00%) (4.90%)
Production tax credits (3.80%) (3.20%)
Accelerated flow-through of regulatory tax benefits (3.60%) (3.00%)
Other, net (0.40%) (0.50%)
Effective tax rate 12.40% 14.60%
v3.22.2
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Income available to common stockholders        
Income from continuing operations $ 142 $ 153 $ 483 $ 461
Loss attributable to noncontrolling interests (6) (5) (14) (12)
Preferred stock dividends 3 0 5 0
Income from continuing operations available to common stockholders – basic and diluted $ 145 $ 158 $ 492 $ 473
Average common shares outstanding        
Weighted average shares - basic (in shares) 289.5 289.0 289.4 288.8
Dilutive nonvested stock awards (in shares) 0.4 0.4 0.4 0.5
Dilutive forward equity sale contracts (in shares) 0.2 0.0 0.2 0.0
Weighted average shares - diluted (in shares) 290.1 289.4 290.0 289.3
Income from continuing operations per average common share available to common stockholders        
Basic (in dollars per share) $ 0.50 $ 0.55 $ 1.70 $ 1.64
Diluted (in dollars per share) $ 0.50 $ 0.55 $ 1.70 $ 1.64
v3.22.2
Revenue (Disaggregation of Revenue) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers $ 1,842 $ 1,515 $ 4,160 $ 3,477
Leasing income 66 40 124 86
Financing income 4 3 9 8
Consumers alternative-revenue programs     1  
Total operating revenue 1,920 1,558 4,294 3,571
Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 1,322 1,158 2,560 2,289
Financing income 2 2 5 5
Consumers alternative-revenue programs     1  
Total operating revenue 1,325 1,160 2,566 2,294
Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 468 332 1,515 1,133
Financing income 2 1 4 3
Consumers alternative-revenue programs     0  
Total operating revenue 477 333 1,519 1,136
Enterprises | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 52 25 85 55
Leasing income 66 40 124 86
Total operating revenue 118 65 209 141
Variable lease income 53 26 97 59
Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 1,790 1,490 4,075 3,422
Financing income 4 3 9 8
Consumers alternative-revenue programs 8   1  
Total operating revenue 1,802 1,493 4,085 3,430
Consumers Energy Company | Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 1,322 1,158 2,560 2,289
Financing income 2 2 5 5
Consumers alternative-revenue programs 1   1  
Total operating revenue 1,325 1,160 2,566 2,294
Consumers Energy Company | Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 468 332 1,515 1,133
Financing income 2 1 4 3
Consumers alternative-revenue programs 7   0  
Total operating revenue 477 333 1,519 1,136
Residential | Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 906 781 2,237 1,903
Residential | Consumers Energy Company | Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 597 561 1,188 1,129
Residential | Consumers Energy Company | Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 309 220 1,049 774
Commercial | Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 519 449 1,124 957
Commercial | Consumers Energy Company | Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 420 390 804 735
Commercial | Consumers Energy Company | Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 99 59 320 222
Industrial | Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 222 161 418 322
Industrial | Consumers Energy Company | Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 207 153 375 291
Industrial | Consumers Energy Company | Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 15 8 43 31
Other        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 52 25 85 55
Other | Enterprises | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 52 25 85 55
Other | Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 143 99 296 240
Other | Consumers Energy Company | Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 98 54 193 134
Other | Consumers Energy Company | Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers $ 45 $ 45 $ 103 $ 106
v3.22.2
Revenue (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Disaggregation of Revenue [Line Items]          
Unbilled receivables $ 387   $ 387   $ 486
Consumers Energy Company          
Disaggregation of Revenue [Line Items]          
Unbilled receivables 387   387   $ 486
Accounts Receivable          
Disaggregation of Revenue [Line Items]          
Bad debt expense 14 $ 5 18 $ 11  
Accounts Receivable | Consumers Energy Company          
Disaggregation of Revenue [Line Items]          
Bad debt expense $ 14 $ 5 $ 18 $ 11  
v3.22.2
Cash and Cash Equivalents (Schedule Of Cash And Cash Equivalents, Including Restricted Amounts) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Jun. 30, 2021
Dec. 31, 2020
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 77 $ 452    
Restricted cash and cash equivalents 19 24    
Cash and cash equivalents, including restricted amounts 96 476 $ 292 $ 185
Consumers Energy Company        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents 8 22    
Restricted cash and cash equivalents 18 22    
Cash and cash equivalents, including restricted amounts $ 26 $ 44 $ 68 $ 35
v3.22.2
Reportable Segments (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Segment Reporting Information [Line Items]          
Operating Revenue $ 1,920 $ 1,558 $ 4,294 $ 3,571  
Net income (loss) available to common stockholders 145 176 496 525  
Plant, property, and equipment, gross 29,426   29,426   $ 29,893
Total assets 29,040   29,040   28,753
Consumers Energy Company          
Segment Reporting Information [Line Items]          
Operating Revenue 1,802 1,493 4,085 3,430  
Net income (loss) available to common stockholders 172 189 555 525  
Plant, property, and equipment, gross 28,304   28,304   28,771
Total assets 27,715   27,715   27,140
Other reconciling items          
Segment Reporting Information [Line Items]          
Net income (loss) available to common stockholders (38) (19) (78) (20)  
Plant, property, and equipment, gross 25   25   23
Total assets 68   68   431
Other reconciling items | Consumers Energy Company          
Segment Reporting Information [Line Items]          
Net income (loss) available to common stockholders (4) (1) (4) (1)  
Plant, property, and equipment, gross 25   25   23
Total assets 22   22   21
Electric Utility | Operating Segments          
Segment Reporting Information [Line Items]          
Operating Revenue 1,325 1,160 2,566 2,294  
Net income (loss) available to common stockholders 140 154 307 309  
Plant, property, and equipment, gross 17,333   17,333   18,147
Total assets 16,860   16,860   16,493
Electric Utility | Operating Segments | Consumers Energy Company          
Segment Reporting Information [Line Items]          
Operating Revenue 1,325 1,160 2,566 2,294  
Net income (loss) available to common stockholders 140 154 307 309  
Plant, property, and equipment, gross 17,333   17,333   18,147
Total assets 16,922   16,922   16,555
Gas Utility | Operating Segments          
Segment Reporting Information [Line Items]          
Operating Revenue 477 333 1,519 1,136  
Net income (loss) available to common stockholders 36 36 252 217  
Plant, property, and equipment, gross 10,946   10,946   10,601
Total assets 10,725   10,725   10,517
Gas Utility | Operating Segments | Consumers Energy Company          
Segment Reporting Information [Line Items]          
Operating Revenue 477 333 1,519 1,136  
Net income (loss) available to common stockholders 36 36 252 217  
Plant, property, and equipment, gross 10,946   10,946   10,601
Total assets 10,771   10,771   10,564
Enterprises | Operating Segments          
Segment Reporting Information [Line Items]          
Operating Revenue 118 65 209 141  
Net income (loss) available to common stockholders 7 $ 5 15 $ 19  
Plant, property, and equipment, gross 1,122   1,122   1,122
Total assets $ 1,387   $ 1,387   $ 1,312
v3.22.2
Variable Interest Entities (Narrative) (Details)
$ in Millions
 1 Months Ended 6 Months Ended
Jun. 30, 2022
USD ($)
Jun. 30, 2022
USD ($)
MW
Dec. 31, 2021
USD ($)
Variable Interest Entity [Line Items]      
Investments $ 69 $ 69 $ 71
NWO Holdco, L.L.C      
Variable Interest Entity [Line Items]      
Sale of noncontrolling interest $ 49    
Nameplate capacity (in MW) | MW   105  
Variable Interest Entity, Primary Beneficiary | Aviator Wind      
Variable Interest Entity [Line Items]      
Nameplate capacity (in MW) | MW   525  
Ownership interest   51.00%  
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership      
Variable Interest Entity [Line Items]      
Noncontrolling ownership interest 49.00% 49.00%  
Variable Interest Entity, Not Primary Beneficiary      
Variable Interest Entity [Line Items]      
Investments $ 69 $ 69 $ 71
Variable Interest Entity, Not Primary Beneficiary | T.E.S. Filer City      
Variable Interest Entity [Line Items]      
Ownership interest   50.00%  
Variable Interest Entity, Not Primary Beneficiary | Grayling      
Variable Interest Entity [Line Items]      
Ownership interest   50.00%  
Variable Interest Entity, Not Primary Beneficiary | Genesee      
Variable Interest Entity [Line Items]      
Ownership interest   50.00%  
Variable Interest Entity, Not Primary Beneficiary | Craven      
Variable Interest Entity [Line Items]      
Ownership interest   50.00%  
v3.22.2
Variable Interest Entities (Consolidated Information of Variable Interest Entity) (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Variable Interest Entity [Line Items]    
Cash and cash equivalents $ 77 $ 452
Restricted cash and cash equivalents 19 24
Accounts receivable 991 931
Prepayments and other current assets 167 139
Plant, property, and equipment, net 21,627 22,352
Total assets 29,040 28,753
Accounts payable 906 875
Other current liabilities 181 156
Asset retirement obligations 620 628
Other non‑current liabilities 382 375
Variable Interest Entity, Primary Beneficiary    
Variable Interest Entity [Line Items]    
Cash and cash equivalents 24 21
Restricted cash and cash equivalents 0 1
Accounts receivable 10 3
Prepayments and other current assets 3 2
Plant, property, and equipment, net 841 856
Total assets 878 883
Accounts payable 18 17
Other current liabilities 0 2
Asset retirement obligations 23 23
Other non‑current liabilities 4
Total liabilities $ 41 $ 46
v3.22.2
Exit Activities and Discontinued Operations - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended 33 Months Ended
Oct. 01, 2021
Mar. 31, 2022
Oct. 31, 2021
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Gain from divestiture of business           $ 5 $ 0    
Discontinued Operations, Held-for-sale | EnerBank                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Proceeds from divestiture of businesses $ 1,000                
Gain from divestiture of business     $ 657 $ 0 $ (5) 5 (5)    
Gain from divestiture of business related to post-closing adjustment   $ 6              
Post-closing purchase price adjustment                 $ 36
Retention Benefits                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Cost deferred       2 $ 2 3 $ 4    
Retention Benefits | D.E. Karn Generating Complex                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Expected cost       35   35   $ 35  
Retention and severance costs               16  
Retention Benefits | D.E. Karn Generating Complex | Retention Incentive Program                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Cost deferred               9  
Retention Benefits | D.E. Karn Generating Complex | Property, Plant and Equipment                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Costs incurred and capitalized               4  
Retention Benefits | J.H. Campbell Generating Units                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Expected cost       $ 50   50   $ 50  
Retention Benefits | J.H. Campbell Generating Units | Retention Incentive Program                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Cost deferred           1      
Severance Benefits | J.H. Campbell Generating Units                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Retention and severance costs           $ 4      
v3.22.2
Exit Activities and Discontinued Operations - Schedule of Retention Benefit Liability Roll Forward (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Restructuring Reserve [Roll Forward]          
Other current liabilities $ 181   $ 181   $ 156
Retention Benefits          
Restructuring Reserve [Roll Forward]          
Retention benefit liability at beginning of period     14 $ 11  
Costs deferred as a regulatory asset 2 $ 2 3 4  
Retention benefit liability at the end of the period 17 15 17 15  
Other current liabilities $ 6 $ 5 $ 6 $ 5  
v3.22.2
Exit Activities and Discontinued Operations - Income from Discontinued Operations (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended
Oct. 31, 2021
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Gain on sale1       $ 5 $ 0
Income tax expense   $ 0 $ 7 1 16
Income from discontinued operations, net of tax   0 18 4 52
Discontinued Operations, Held-for-sale | EnerBank          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Operating revenue   0 69 0 139
Operating expenses   0 28 0 43
Interest expense   0 11 0 23
Income before income taxes   0 30 0 73
Gain on sale1 $ 657 0 (5) 5 (5)
Income from discontinued operations before income taxes   0 25 5 68
Income tax expense   0 7 1 16
Income from discontinued operations, net of tax   $ 0 $ 18 $ 4 $ 52