CMS ENERGY CORP, 10-K filed on 2/9/2023
Annual Report
v3.22.4
Cover Page - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Jan. 13, 2023
Jun. 30, 2022
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2022    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 1-9513    
Entity Registrant Name CMS ENERGY CORPORATION    
Entity Tax Identification Number 38-2726431    
Entity Incorporation, State or Country Code MI    
Entity Address, Address Line One One Energy Plaza    
Entity Address, City or Town Jackson    
Entity Address, State or Province MI    
Entity Address, Postal Zip Code 49201    
City Area Code 517    
Local Phone Number 788‑0550    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filer No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 19,588
Entity Common Stock, Shares Outstanding   291,264,195  
Documents Incorporated by Reference CMS Energy’s and Consumers’ proxy statement relating to their 2023 Annual Meetings of Shareholders to be held May 5, 2023.    
Entity Central Index Key 0000811156    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Amendment Flag false    
Consumers Energy Company      
Document Information [Line Items]      
Entity File Number 1-5611    
Entity Registrant Name CONSUMERS ENERGY COMPANY    
Entity Tax Identification Number 38-0442310    
Entity Incorporation, State or Country Code MI    
Entity Address, Address Line One One Energy Plaza    
Entity Address, City or Town Jackson    
Entity Address, State or Province MI    
Entity Address, Postal Zip Code 49201    
City Area Code 517    
Local Phone Number 788‑0550    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filer No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Non-accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
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: $4.50 Series    
Trading Symbol CMS-PB    
Security Exchange Name NYSE    
v3.22.4
Audit Information
12 Months Ended
Dec. 31, 2022
Document Information [Line Items]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Detroit, Michigan
Consumers Energy Company  
Document Information [Line Items]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Detroit, Michigan
v3.22.4
CMS Energy Corporation Consolidated Statements of Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating Revenue $ 8,596 $ 7,329 $ 6,418
Operating Expenses      
Fuel for electric generation 905 593 375
Purchased power – related parties 76 77 64
Maintenance and other operating expenses 1,669 1,610 1,280
Depreciation and amortization 1,126 1,114 1,043
General taxes 412 389 357
Total operating expenses 7,372 6,183 5,188
Operating Income 1,224 1,146 1,230
Other Income (Expense)      
Non-operating retirement benefits, net 205 165 118
Other income 19 30 28
Other expense (27) (18) (62)
Total other income 197 177 84
Interest Charges      
Interest on long-term debt 509 481 483
Interest expense – related parties 12 12 12
Other interest expense 0 10 12
Allowance for borrowed funds used during construction (2) (3) (2)
Total interest charges 519 500 505
Income Before Income Taxes 902 823 809
Income Tax Expense 93 95 115
Income From Continuing Operations 809 728 694
Income From Discontinued Operations, Net of Tax of $1, $170, and $18 4 602 58
Net Income 813 1,330 752
Loss Attributable to Noncontrolling Interests (24) (23) (3)
Net Income Attributable to CMS Energy 837 1,353 755
Preferred Stock Dividends 10 5 0
Net Income Available to Common Stockholders $ 827 $ 1,348 $ 755
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) $ 2.84 $ 2.58 $ 2.45
Basic earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) 0.01 2.08 0.20
Basic earnings per average common share (in dollars per share) 2.85 4.66 2.65
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) 2.84 2.58 2.44
Diluted earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) 0.01 2.08 0.20
Diluted earnings per average common share (in dollars per share) $ 2.85 $ 4.66 $ 2.64
Purchased and interchange power      
Operating Expenses      
Cost of goods and services sold $ 1,928 $ 1,665 $ 1,492
Cost of gas sold      
Operating Expenses      
Cost of goods and services sold $ 1,256 $ 735 $ 577
v3.22.4
CMS Energy Corporation Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net Income $ 813 $ 1,330 $ 752
Retirement Benefits Liability      
Net gain (loss) arising during the period 1 19 (15)
Settlement arising during the period 0 1 1
Prior service credit adjustment 0 0 (1)
Amortization of net actuarial loss, net of tax 4 5 5
Amortization of prior service credit (1) (1) (1)
Derivatives      
Unrealized gain on derivative instruments, net of tax 2 2 (4)
Reclassification adjustments included in net income 1 1 2
Other Comprehensive Income (Loss) 7 27 (13)
Comprehensive Income 820 1,357 739
Comprehensive Loss Attributable to Noncontrolling Interests (24) (23) (3)
Comprehensive Income Attributable to CMS Energy $ 844 $ 1,380 $ 742
v3.22.4
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net gain (loss) arising during the period, tax $ 0 $ 6 $ (4)
Settlement arising during the period, tax 0 0 0
Prior service credit adjustment, tax 0 0 0
Amortization of net actuarial loss, tax 1 2 1
Amortization of prior service credit, tax 0 0 0
Unrealized gain on derivative instruments, tax 1 0 (2)
Reclassification adjustments included in net income , tax $ 0 $ 1 $ 0
v3.22.4
CMS Energy Corporation Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash Flows from Operating Activities      
Net Income $ 813 $ 1,330 $ 752
Adjustments to reconcile net income to net cash provided by operating activities      
Depreciation and amortization 1,126 1,114 1,043
Deferred income taxes and investment tax credits 89 249 170
Bad debt expense 50 22 30
Postretirement benefits contributions (12) (12) (712)
Gain from sale of EnerBank (5) (657)  
Other non‑cash operating activities and reconciling adjustments (93) (70) (15)
Net cash provided by (used in) discontinued operations 0 (111) 33
Changes in assets and liabilities      
Accounts receivable and accrued revenue (677) (103) (5)
Inventories (450) (93) 28
Accounts payable and accrued rate refunds 4 153 56
Other current assets and liabilities 14 13 (68)
Other non‑current assets and liabilities (4) (16) (36)
Net cash provided by operating activities 855 1,819 1,276
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) (2,374) (2,076) (2,311)
Net proceeds from sale of EnerBank 5 898 0
Proceeds from sale of transmission equipment 0 0 58
Net cash provided by (used in) discontinued operations 0 78 (485)
Cost to retire property and other investing activities (107) (133) (129)
Net cash used in investing activities (2,476) (1,233) (2,867)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 1,899 335 3,179
Retirement of debt (106) (235) (2,010)
Increase (decrease) in notes payable 20    
Increase (decrease) in notes payable   0 (90)
Issuance of common stock 69 26 253
Issuance of preferred stock, net of issuance costs 0 224 0
Payment of dividends on common and preferred stock (546) (509) (467)
Debt prepayment costs 0 0 (59)
Proceeds from the sale of membership interest in VIE to tax equity investor 49 0 417
Contribution from noncontrolling interest 2 1 31
Net cash provided by (used in) discontinued operations 0 (84) 416
Other financing costs (60) (53) (51)
Net cash provided by (used in) financing activities 1,327 (295) 1,619
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts (294) 291 28
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 476 185 157
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 182 476 185
Cash transactions      
Interest paid (net of amounts capitalized) 490 489 549
Income taxes paid (refunds received), net 1 16 (58)
Non‑cash transactions      
Capital expenditures not paid $ 228 $ 196 141
Discontinued Operations | EnerBank      
Adjustments to reconcile net income to net cash provided by operating activities      
Gain from sale of EnerBank     $ 0
v3.22.4
CMS Energy Corporation Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Current Assets    
Cash and cash equivalents $ 164 $ 452
Restricted cash and cash equivalents 18 24
Accounts receivable and accrued revenue 1,564 931
Accounts receivable – related parties 16 12
Inventories at average cost    
Gas in underground storage 840 462
Materials and supplies 212 168
Generating plant fuel stock 65 37
Deferred property taxes 384 356
Regulatory assets 57 46
Prepayments and other current assets 113 139
Total current assets 3,433 2,627
Plant, Property, and Equipment    
Plant, property, and equipment, gross 30,491 29,893
Less accumulated depreciation and amortization 8,960 8,502
Plant, property, and equipment, net 21,531 21,391
Construction work in progress 1,182 961
Total plant, property, and equipment 22,713 22,352
Other Non‑current Assets    
Regulatory assets 3,595 2,259
Accounts receivable 23 30
Investments 71 71
Postretirement benefits 1,208 1,150
Other 310 264
Total other non‑current assets 5,207 3,774
Total Assets 31,353 28,753
Current Liabilities    
Current portion of long-term debt and finance leases 1,099 382
Notes payable 20 0
Accounts payable 928 875
Accounts payable – related parties 8 11
Accrued rate refunds 0 12
Accrued interest 122 107
Accrued taxes 538 515
Regulatory liabilities 104 146
Other current liabilities 166 156
Total current liabilities 2,985 2,204
Non‑current Liabilities    
Long-term debt 13,122 12,046
Non-current portion of finance leases 68 46
Regulatory liabilities 3,796 3,802
Postretirement benefits 108 142
Asset retirement obligations 746 628
Deferred investment tax credit 129 112
Deferred income taxes 2,407 2,210
Other non‑current liabilities 397 375
Total non‑current liabilities 20,773 19,361
Commitments and Contingencies
Common stockholders’ equity    
Common stock 3 3
Other paid-in capital 5,490 5,406
Accumulated other comprehensive loss (52) (59)
Retained earnings 1,350 1,057
Total common stockholders’ equity 6,791 6,407
Cumulative preferred stock 224 224
Total stockholders’ equity 7,015 6,631
Noncontrolling interests 580 557
Total equity 7,595 7,188
Total Liabilities and Equity $ 31,353 $ 28,753
v3.22.4
CMS Energy Corporation Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Accounts receivable and accrued revenue, allowance $ 27 $ 20
Common stock authorized (in shares) 350,000,000 350,000,000.0
Common stock outstanding (in shares) 291,300,000 289,800,000
Preferred stock authorized (in shares) 10,000,000  
Series C Preferred Stock Depositary Shares    
Preferred stock authorized (in shares) 9,200,000 9,200,000
Preferred stock outstanding (in shares) 9,200,000 9,200,000
v3.22.4
CMS Energy Corporation Consolidated Statements of Changes in Equity - USD ($)
$ in Millions
Total
Common Stock
Other Paid-in Capital
Accumulated Other Comprehensive Loss
Retirement benefits liability
Derivative instruments
Retained Earnings
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
Cumulative Preferred Stock
Noncontrolling Interests
Beginning of period (in shares) at Dec. 31, 2019   283,864,000                
Total Equity at Beginning of Period at Dec. 31, 2019 $ 5,055 $ 3 $ 5,113 $ (73) $ (69) $ (4) $ (25) $ (51) $ 0 $ 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Common stock issued (in shares)   5,609,000                
Common stock issued     265           0  
Common stock repurchased (in shares)   (216,000)                
Common stock repurchased     (13)              
Common stock reissued (in shares)   12,000                
Common stock reissued     1              
Common stock reacquired (in shares)   (329,000)                
Common stock reacquired     (1)              
Net gain (loss) arising during the period (15)       (15)          
Settlement arising during the period 1       1          
Prior service credit adjustment (1)       (1)          
Amortization of net actuarial loss 5       5          
Amortization of prior service credit (1)       (1)          
Unrealized gain (loss) on derivative instruments (4)         (4)        
Reclassification adjustments included in net income 2         2        
Net Income 752           755     (3)
Dividends declared on common stock             (465)      
Dividends declared on preferred stock             0      
Impact of purchase and consolidation of VIE                   101
Sale of membership interest in VIE to tax equity investor                   417
Contribution from noncontrolling interest                   31
Distributions and other changes in noncontrolling interests                   (2)
End of period (in shares) at Dec. 31, 2020   288,940,000                
Total Equity at End of Period at Dec. 31, 2020 $ 6,077 $ 3 5,365 (86) (80) (6) 214 0 0 581
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Dividends declared per common share (in dollars per share) $ 1.6300                  
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0                  
Common stock issued (in shares)   997,000                
Common stock issued     50           224  
Common stock repurchased (in shares)   (157,000)                
Common stock repurchased     (9)              
Common stock reissued (in shares)   0                
Common stock reissued     0              
Common stock reacquired (in shares)   (22,000)                
Common stock reacquired     0              
Net gain (loss) arising during the period $ 19       19          
Settlement arising during the period 1       1          
Prior service credit adjustment 0       0          
Amortization of net actuarial loss 5       5          
Amortization of prior service credit (1)       (1)          
Unrealized gain (loss) on derivative instruments 2         2        
Reclassification adjustments included in net income 1         1        
Net Income $ 1,330           1,353     (23)
Dividends declared on common stock             (505)      
Dividends declared on preferred stock             (5)      
Impact of purchase and consolidation of VIE                   0
Sale of membership interest in VIE to tax equity investor                   0
Contribution from noncontrolling interest                   1
Distributions and other changes in noncontrolling interests                   (2)
End of period (in shares) at Dec. 31, 2021 289,800,000 289,758,000                
Total Equity at End of Period at Dec. 31, 2021 $ 7,188 $ 3 5,406 (59) (56) (3) 1,057 $ 0 224 557
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Dividends declared per common share (in dollars per share) $ 1.7400                  
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0.5688                  
Common stock issued (in shares)   1,704,000                
Common stock issued     93           0  
Common stock repurchased (in shares)   (151,000)                
Common stock repurchased     (9)              
Common stock reissued (in shares)   0                
Common stock reissued     0              
Common stock reacquired (in shares)   (43,000)                
Common stock reacquired     0              
Net gain (loss) arising during the period $ 1       1          
Settlement arising during the period 0       0          
Prior service credit adjustment 0       0          
Amortization of net actuarial loss 4       4          
Amortization of prior service credit (1)       (1)          
Unrealized gain (loss) on derivative instruments 2         2        
Reclassification adjustments included in net income 1         1        
Net Income $ 813           837     (24)
Dividends declared on common stock             (534)      
Dividends declared on preferred stock             (10)      
Impact of purchase and consolidation of VIE                   0
Sale of membership interest in VIE to tax equity investor                   49
Contribution from noncontrolling interest                   2
Distributions and other changes in noncontrolling interests                   (4)
End of period (in shares) at Dec. 31, 2022 291,300,000 291,268,000                
Total Equity at End of Period at Dec. 31, 2022 $ 7,595 $ 3 $ 5,490 $ (52) $ (52) $ 0 $ 1,350   $ 224 $ 580
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Dividends declared per common share (in dollars per share) $ 1.8400                  
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 1.0500                  
v3.22.4
Consumers Energy Company Consolidated Statements of Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating Revenue $ 8,596 $ 7,329 $ 6,418
Operating Expenses      
Operating Income 1,224 1,146 1,230
Other Income (Expense)      
Non-operating retirement benefits, net 205 165 118
Other income 19 30 28
Other expense (27) (18) (62)
Total other income 197 177 84
Interest Charges      
Interest on long-term debt 509 481 483
Interest expense – related parties 12 12 12
Other interest expense 0 10 12
Allowance for borrowed funds used during construction (2) (3) (2)
Total interest charges 519 500 505
Income Before Income Taxes 902 823 809
Income Tax Expense 93 95 115
Net Income Attributable to CMS Energy 837 1,353 755
Preferred Stock Dividends 10 5 0
Net income (loss) available to common stockholders 827 1,348 755
Consumers Energy Company      
Operating Revenue 8,151 7,021 6,189
Operating Expenses      
Fuel for electric generation 662 463 286
Purchased and interchange power 1,867 1,599 1,454
Purchased power – related parties 76 77 64
Cost of gas sold 1,243 726 568
Maintenance and other operating expenses 1,582 1,531 1,224
Depreciation and amortization 1,088 1,077 1,023
General taxes 400 373 349
Total operating expenses 6,918 5,846 4,968
Operating Income 1,233 1,175 1,221
Other Income (Expense)      
Non-operating retirement benefits, net 195 155 112
Other income 17 23 19
Other expense (25) (18) (43)
Total other income 187 160 88
Interest Charges      
Interest on long-term debt 325 294 299
Interest expense – related parties 12 12 12
Other interest expense 0 8 11
Allowance for borrowed funds used during construction (2) (3) (2)
Total interest charges 335 311 320
Income Before Income Taxes 1,085 1,024 989
Income Tax Expense 140 156 173
Net Income Attributable to CMS Energy 945 868 816
Preferred Stock Dividends 2 2 2
Net income (loss) available to common stockholders $ 943 $ 866 $ 814
v3.22.4
Consumers Energy Company Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Net Income $ 837 $ 1,353 $ 755
Retirement Benefits Liability      
Net gain (loss) arising during the period 1 19 (15)
Amortization of net actuarial loss, net of tax 4 5 5
Other Comprehensive Income (Loss) 7 27 (13)
Comprehensive Income Attributable to CMS Energy 844 1,380 742
Consumers Energy Company      
Net Income 945 868 816
Retirement Benefits Liability      
Net gain (loss) arising during the period 15 2 (9)
Amortization of net actuarial loss, net of tax 2 2 1
Other Comprehensive Income (Loss) 17 4 (8)
Comprehensive Income Attributable to CMS Energy $ 962 $ 872 $ 808
v3.22.4
Consumers Energy Company Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Net gain (loss) arising during the period, tax $ 0 $ 6 $ (4)
Amortization of net actuarial loss, tax 1 2 1
Consumers Energy Company      
Net gain (loss) arising during the period, tax 5 1 (3)
Amortization of net actuarial loss, tax $ 0 $ 1 $ 1
v3.22.4
Consumers Energy Company Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash Flows from Operating Activities      
Net Income $ 837 $ 1,353 $ 755
Adjustments to reconcile net income to net cash provided by operating activities      
Deferred income taxes and investment tax credits 89 249 170
Bad debt expense 50 22 30
Postretirement benefits contributions (12) (12) (712)
Other non‑cash operating activities and reconciling adjustments (93) (70) (15)
Changes in assets and liabilities      
Accounts receivable and accrued revenue (677) (103) (5)
Inventories (450) (93) 28
Accounts payable and accrued rate refunds 4 153 56
Other current assets and liabilities 14 13 (68)
Other non‑current assets and liabilities (4) (16) (36)
Net cash provided by operating activities 855 1,819 1,276
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) (2,374) (2,076) (2,311)
Proceeds from sale of transmission equipment 0 0 58
Cost to retire property and other investing activities (107) (133) (129)
Net cash used in investing activities (2,476) (1,233) (2,867)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 1,899 335 3,179
Retirement of debt (106) (235) (2,010)
Increase (decrease) in notes payable 20    
Increase (decrease) in notes payable   0 (90)
Payment of dividends on common and preferred stock (546) (509) (467)
Debt prepayment costs 0 0 (59)
Other financing costs (60) (53) (51)
Net cash provided by (used in) financing activities 1,327 (295) 1,619
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts (294) 291 28
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 476 185 157
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 182 476 185
Cash transactions      
Interest paid (net of amounts capitalized) 490 489 549
Income taxes paid (refunds received), net 1 16 (58)
Non‑cash transactions      
Capital expenditures not paid 228 196 141
Consumers Energy Company      
Cash Flows from Operating Activities      
Net Income 945 868 816
Adjustments to reconcile net income to net cash provided by operating activities      
Depreciation and amortization 1,088 1,077 1,023
Deferred income taxes and investment tax credits 134 154 177
Bad debt expense 50 22 33
Postretirement benefits contributions (9) (9) (690)
Other non‑cash operating activities and reconciling adjustments (87) (64) (30)
Changes in assets and liabilities      
Accounts receivable and accrued revenue (660) (103) (46)
Inventories (447) (90) 26
Accounts payable and accrued rate refunds (9) 140 45
Other current assets and liabilities 18 27 (78)
Other non‑current assets and liabilities (29) (40) (58)
Net cash provided by operating activities 994 1,982 1,218
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) (2,239) (2,052) (2,170)
DB SERP investment in note receivable – related party 0 0 (5)
Proceeds from sale of transmission equipment 0 0 58
Cost to retire property and other investing activities (105) (133) (129)
Net cash used in investing activities (2,344) (2,185) (2,246)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 1,799 335 1,954
Retirement of debt (28) (27) (1,086)
Increase (decrease) in notes payable 20    
Increase (decrease) in notes payable   0 (90)
Increase (decrease) in notes payable – related parties (317) 85 307
Stockholder contribution 685 575 650
Payment of dividends on common and preferred stock (771) (724) (639)
Debt prepayment costs 0 0 (43)
Other financing costs (22) (32) (18)
Net cash provided by (used in) financing activities 1,366 212 1,035
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 16 9 7
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 44 35 28
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 60 44 35
Cash transactions      
Interest paid (net of amounts capitalized) 309 298 305
Income taxes paid (refunds received), net (2) (10) 51
Non‑cash transactions      
Capital expenditures not paid $ 210 $ 192 $ 130
v3.22.4
Consumers Energy Company Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Current Assets    
Cash and cash equivalents $ 164 $ 452
Restricted cash and cash equivalents 18 24
Accounts receivable and accrued revenue 1,564 931
Accounts receivable – related parties 16 12
Inventories at average cost    
Gas in underground storage 840 462
Materials and supplies 212 168
Generating plant fuel stock 65 37
Deferred property taxes 384 356
Regulatory assets 57 46
Prepayments and other current assets 113 139
Total current assets 3,433 2,627
Other Non‑current Assets    
Regulatory assets 3,595 2,259
Accounts receivable 23 30
Postretirement benefits 1,208 1,150
Other 310 264
Total other non‑current assets 5,207 3,774
Total Assets 31,353 28,753
Current Liabilities    
Current portion of long-term debt and finance leases 1,099 382
Notes payable 20 0
Accounts payable 928 875
Accounts payable – related parties 8 11
Accrued rate refunds 0 12
Accrued interest 122 107
Accrued taxes 538 515
Regulatory liabilities 104 146
Other current liabilities 166 156
Total current liabilities 2,985 2,204
Non‑current Liabilities    
Long-term debt 13,122 12,046
Non-current portion of finance leases 68 46
Regulatory liabilities 3,796 3,802
Postretirement benefits 108 142
Asset retirement obligations 746 628
Deferred investment tax credit 129 112
Deferred income taxes 2,407 2,210
Other non‑current liabilities 397 375
Total non‑current liabilities 20,773 19,361
Commitments and Contingencies
Common stockholders’ equity    
Common stock 3 3
Other paid-in capital 5,490 5,406
Accumulated other comprehensive loss (52) (59)
Retained earnings 1,350 1,057
Total common stockholders’ equity 6,791 6,407
Cumulative preferred stock 224 224
Total stockholders’ equity 7,015 6,631
Total Liabilities and Equity 31,353 28,753
Consumers Energy Company    
Current Assets    
Cash and cash equivalents 43 22
Restricted cash and cash equivalents 17 22
Accounts receivable and accrued revenue 1,524 905
Accounts receivable – related parties 10 9
Inventories at average cost    
Gas in underground storage 840 462
Materials and supplies 206 163
Generating plant fuel stock 59 33
Deferred property taxes 384 356
Regulatory assets 57 46
Prepayments and other current assets 96 103
Total current assets 3,236 2,121
Plant, Property, and Equipment    
Plant, property, and equipment, gross 29,342 28,771
Less accumulated depreciation and amortization 8,791 8,371
Plant, property, and equipment, net 20,551 20,400
Construction work in progress 994 915
Total plant, property, and equipment 21,545 21,315
Other Non‑current Assets    
Regulatory assets 3,595 2,259
Accounts receivable 29 36
Accounts and notes receivable – related parties 99 102
Postretirement benefits 1,126 1,056
Other 286 251
Total other non‑current assets 5,135 3,704
Total Assets 29,916 27,140
Current Liabilities    
Current portion of long-term debt and finance leases 1,000 374
Notes payable 20 0
Notes payable – related parties 75 392
Accounts payable 864 835
Accounts payable – related parties 15 16
Accrued rate refunds 0 12
Accrued interest 90 75
Accrued taxes 556 529
Regulatory liabilities 104 146
Other current liabilities 147 109
Total current liabilities 2,871 2,488
Non‑current Liabilities    
Long-term debt 9,192 8,050
Non-current portion of finance leases 45 46
Regulatory liabilities 3,796 3,802
Postretirement benefits 79 104
Asset retirement obligations 722 605
Deferred investment tax credit 129 112
Deferred income taxes 2,585 2,340
Other non‑current liabilities 342 314
Total non‑current liabilities 16,890 15,373
Commitments and Contingencies
Common stockholders’ equity    
Common stock 841 841
Other paid-in capital 7,284 6,599
Accumulated other comprehensive loss (15) (32)
Retained earnings 2,008 1,834
Total common stockholders’ equity 10,118 9,242
Cumulative preferred stock 37 37
Total stockholders’ equity 10,155 9,279
Total Liabilities and Equity $ 29,916 $ 27,140
v3.22.4
Consumers Energy Company Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Accounts receivable and accrued revenue, allowance $ 27 $ 20
Common stock authorized (in shares) 350,000,000 350,000,000.0
Common stock outstanding (in shares) 291,300,000 289,800,000
Preferred stock authorized (in shares) 10,000,000  
Consumers Energy Company    
Accounts receivable and accrued revenue, allowance $ 27 $ 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
v3.22.4
Consumers Energy Company Consolidated Statements of Changes in Equity - USD ($)
$ in Millions
Total
Common Stock
Other Paid-in Capital
Accumulated Other Comprehensive Loss
Retirement benefits liability
Retained Earnings
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, 2019 $ 5,055 $ 3 $ 5,113 $ (73) $ (69) $ (25) $ 0 $ 7,737 $ 841 $ 5,374 $ (28) $ (28) $ 1,513 $ 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   650        
Net gain (loss) arising during the period (15)       (15)     (9)       (9)    
Amortization of net actuarial loss 5       5     1       1    
Net Income 755             816         816  
Dividends declared on common stock           (465)             (637)  
Dividends declared on preferred stock           0             (2)  
Total Equity at End of Period at Dec. 31, 2020 6,077 3 5,365 (86) (80) 214 0 8,556 841 6,024 (36) (36) 1,690 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   575        
Net gain (loss) arising during the period 19       19     2       2    
Amortization of net actuarial loss 5       5     2       2    
Net Income 1,353             868         868  
Dividends declared on common stock           (505)             (722)  
Dividends declared on preferred stock           (5)             (2)  
Total Equity at End of Period at Dec. 31, 2021 7,188 3 5,406 (59) (56) 1,057 224 9,279 841 6,599 (32) (32) 1,834 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   685        
Net gain (loss) arising during the period 1       1     15       15    
Amortization of net actuarial loss 4       4     2       2    
Net Income 837             945         945  
Dividends declared on common stock           (534)             (769)  
Dividends declared on preferred stock           (10)             (2)  
Total Equity at End of Period at Dec. 31, 2022 $ 7,595 $ 3 $ 5,490 $ (52) $ (52) $ 1,350 $ 224 $ 10,155 $ 841 $ 7,284 $ (15) $ (15) $ 2,008 $ 37
v3.22.4
CMS Energy Corporation Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Statement [Abstract]      
Tax effect of discontinued operations $ 1 $ 170 $ 18
v3.22.4
Significant Accounting Policies
12 Months Ended
Dec. 31, 2022
Significant Accounting Policies [Line Items]  
Significant Accounting Policies Significant Accounting Policies
Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, NorthStar Clean Energy, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances.
Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates.
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Contingencies: CMS Energy and Consumers record estimated loss contingencies on their consolidated financial statements when it is probable that a loss has been incurred and when the amount of loss can be reasonably estimated. For environmental remediation projects in which the timing of estimated expenditures is considered reliably determinable, CMS Energy and Consumers record the liability at its net present value, using a discount rate equal to the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability. CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed.
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: Upon the issuance of long-term debt, CMS Energy and Consumers defer issuance costs, discounts, and premiums and amortize those amounts over the terms of the associated debt. Debt issuance costs are presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Upon the refinancing of long-term debt, Consumers, as a regulated entity, defers any remaining unamortized issuance costs, discounts, and premiums associated with the refinanced debt and amortizes those amounts over the term of the newly issued debt. For the non‑regulated portions of CMS Energy’s business, any remaining unamortized issuance costs, discounts, and premiums associated with extinguished debt are charged to earnings.
Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the
commodity at a contracted price. Most of these contracts are not subject to derivative accounting for one or more of the following reasons:
they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas)
they qualify for the normal purchases and sales exception
they cannot be net settled due in part to the absence of an active market for the commodity
Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives.
Additionally, CMS Energy uses interest rate swaps to manage its interest rate risk on certain long-term debt transactions.
CMS Energy and Consumers record derivative contracts that do not qualify for the normal purchases and sales exception at fair value on their consolidated balance sheets. At CMS Energy, if the derivative is accounted for as a cash flow hedge, unrealized gains and losses from changes in the fair value of the derivative are recognized in AOCI and subsequently recognized in earnings when the hedged transactions impact earnings. If the derivative is accounted for as a fair value hedge, changes in the fair value of the derivative and changes in the fair value of the hedged item due to the hedged risk are recognized in earnings. For the FTRs at Consumers, changes in fair value are deferred as regulatory assets or liabilities. For details regarding CMS Energy’s and Consumers’ derivative instruments recorded at fair value, see Note 5, Fair Value Measurements.
EPS: CMS Energy calculates basic and diluted EPS using the weighted-average number of shares of common stock and dilutive potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted EPS, includes the effects of nonvested stock awards and forward equity sales. CMS Energy computes the effect on potential common stock using the treasury stock method. Diluted EPS excludes the impact of antidilutive securities, which are those securities resulting in an increase in EPS or a decrease in loss per share. For EPS computations, see Note 13, Earnings Per Share—CMS Energy.
Impairment of Long-Lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur that indicate the carrying amount of an asset may not be recoverable or that there has been a decline in value that may be other than temporary.
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses.
CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary.
Investment Tax Credits: Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment. CMS Energy’s non‑regulated businesses use the deferral method of accounting for investment tax credits. Under the deferral method, the book basis of the associated assets is reduced by the amount of the credit, resulting in lower depreciation expense over the life of the assets. Furthermore, the tax basis of the assets is reduced by 50 percent of the related credit, resulting in a net deferred tax asset. CMS Energy recognizes the tax benefit of this basis difference as a reduction to income tax expense in the year in which the plant reaches commercial operation.
Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets.
CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. CMS Energy and Consumers classify these amounts within other assets on their consolidated balance sheets.
CMS Energy and Consumers evaluate inventory for impairment as required to ensure that its carrying value does not exceed the lower of cost or net realizable value.
MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements.
Property Taxes: Property taxes are based on the taxable value of CMS Energy’s and Consumers’ real and personal property assessed by local taxing authorities. CMS Energy and Consumers record property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of CMS Energy’s and Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
Reclassifications: CMS Energy and Consumers have reclassified certain prior period amounts to conform to the presentation in the present period. The most significant of these reclassifications is related to CMS Energy’s sale of EnerBank to Regions Bank in October 2021. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the years ended December 31, 2021 and 2020. For information regarding the sale of EnerBank, see Note 19, Exit Activities and Discontinued Operations.
CMS Energy and Consumers also reclassified certain prior period amounts relating to postretirement benefits. The asset balances for postretirement benefits are presented discretely within other non-current assets on CMS Energy’s and Consumers’ consolidated balance sheets for the years ended December 31, 2022 and 2021.
Renewable Energy Grant: In 2013, Consumers received a renewable energy cash grant for Lake Winds® Energy Park under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Upon receipt of the grant, Consumers recorded a regulatory liability, which Consumers is amortizing over the life of Lake Winds® Energy Park. Consumers presents the amortization as a reduction to maintenance
and other operating expenses on its consolidated statements of income. Consumers recorded the deferred income taxes related to the grant as a reduction of the book basis of Lake Winds® Energy Park.
Other: For additional accounting policies, see:
Note 7, Plant, Property, and Equipment
Note 8, Leases
Note 9, Asset Retirement Obligations
Note 10, Retirement Benefits
Note 12, Income Taxes
Note 13, Earnings Per Share—CMS Energy
Note 14, Revenue
Note 18, Variable Interest Entities
Consumers Energy Company  
Significant Accounting Policies [Line Items]  
Significant Accounting Policies Significant Accounting Policies
Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, NorthStar Clean Energy, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances.
Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates.
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Contingencies: CMS Energy and Consumers record estimated loss contingencies on their consolidated financial statements when it is probable that a loss has been incurred and when the amount of loss can be reasonably estimated. For environmental remediation projects in which the timing of estimated expenditures is considered reliably determinable, CMS Energy and Consumers record the liability at its net present value, using a discount rate equal to the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability. CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed.
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: Upon the issuance of long-term debt, CMS Energy and Consumers defer issuance costs, discounts, and premiums and amortize those amounts over the terms of the associated debt. Debt issuance costs are presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Upon the refinancing of long-term debt, Consumers, as a regulated entity, defers any remaining unamortized issuance costs, discounts, and premiums associated with the refinanced debt and amortizes those amounts over the term of the newly issued debt. For the non‑regulated portions of CMS Energy’s business, any remaining unamortized issuance costs, discounts, and premiums associated with extinguished debt are charged to earnings.
Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the
commodity at a contracted price. Most of these contracts are not subject to derivative accounting for one or more of the following reasons:
they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas)
they qualify for the normal purchases and sales exception
they cannot be net settled due in part to the absence of an active market for the commodity
Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives.
Additionally, CMS Energy uses interest rate swaps to manage its interest rate risk on certain long-term debt transactions.
CMS Energy and Consumers record derivative contracts that do not qualify for the normal purchases and sales exception at fair value on their consolidated balance sheets. At CMS Energy, if the derivative is accounted for as a cash flow hedge, unrealized gains and losses from changes in the fair value of the derivative are recognized in AOCI and subsequently recognized in earnings when the hedged transactions impact earnings. If the derivative is accounted for as a fair value hedge, changes in the fair value of the derivative and changes in the fair value of the hedged item due to the hedged risk are recognized in earnings. For the FTRs at Consumers, changes in fair value are deferred as regulatory assets or liabilities. For details regarding CMS Energy’s and Consumers’ derivative instruments recorded at fair value, see Note 5, Fair Value Measurements.
EPS: CMS Energy calculates basic and diluted EPS using the weighted-average number of shares of common stock and dilutive potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted EPS, includes the effects of nonvested stock awards and forward equity sales. CMS Energy computes the effect on potential common stock using the treasury stock method. Diluted EPS excludes the impact of antidilutive securities, which are those securities resulting in an increase in EPS or a decrease in loss per share. For EPS computations, see Note 13, Earnings Per Share—CMS Energy.
Impairment of Long-Lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur that indicate the carrying amount of an asset may not be recoverable or that there has been a decline in value that may be other than temporary.
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses.
CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary.
Investment Tax Credits: Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment. CMS Energy’s non‑regulated businesses use the deferral method of accounting for investment tax credits. Under the deferral method, the book basis of the associated assets is reduced by the amount of the credit, resulting in lower depreciation expense over the life of the assets. Furthermore, the tax basis of the assets is reduced by 50 percent of the related credit, resulting in a net deferred tax asset. CMS Energy recognizes the tax benefit of this basis difference as a reduction to income tax expense in the year in which the plant reaches commercial operation.
Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets.
CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. CMS Energy and Consumers classify these amounts within other assets on their consolidated balance sheets.
CMS Energy and Consumers evaluate inventory for impairment as required to ensure that its carrying value does not exceed the lower of cost or net realizable value.
MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements.
Property Taxes: Property taxes are based on the taxable value of CMS Energy’s and Consumers’ real and personal property assessed by local taxing authorities. CMS Energy and Consumers record property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of CMS Energy’s and Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
Reclassifications: CMS Energy and Consumers have reclassified certain prior period amounts to conform to the presentation in the present period. The most significant of these reclassifications is related to CMS Energy’s sale of EnerBank to Regions Bank in October 2021. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the years ended December 31, 2021 and 2020. For information regarding the sale of EnerBank, see Note 19, Exit Activities and Discontinued Operations.
CMS Energy and Consumers also reclassified certain prior period amounts relating to postretirement benefits. The asset balances for postretirement benefits are presented discretely within other non-current assets on CMS Energy’s and Consumers’ consolidated balance sheets for the years ended December 31, 2022 and 2021.
Renewable Energy Grant: In 2013, Consumers received a renewable energy cash grant for Lake Winds® Energy Park under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Upon receipt of the grant, Consumers recorded a regulatory liability, which Consumers is amortizing over the life of Lake Winds® Energy Park. Consumers presents the amortization as a reduction to maintenance
and other operating expenses on its consolidated statements of income. Consumers recorded the deferred income taxes related to the grant as a reduction of the book basis of Lake Winds® Energy Park.
Other: For additional accounting policies, see:
Note 7, Plant, Property, and Equipment
Note 8, Leases
Note 9, Asset Retirement Obligations
Note 10, Retirement Benefits
Note 12, Income Taxes
Note 13, Earnings Per Share—CMS Energy
Note 14, Revenue
Note 18, Variable Interest Entities
v3.22.4
Regulatory Matters
12 Months Ended
Dec. 31, 2022
Public Utilities, General Disclosures [Line Items]  
Regulatory Matters Regulatory Matters
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, residential customer advocacy groups, environmental organizations, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings.
There are multiple appeals pending that involve various issues concerning cost recovery from customers, the MPSC’s authority to approve voluntary revenue refunds, and other matters. Consumers is unable to predict the outcome of these appeals.
Regulatory Assets and Liabilities
Consumers is subject to the actions of the MPSC and FERC and therefore prepares its consolidated financial statements in accordance with the provisions of regulatory accounting. A utility must apply regulatory accounting when its rates are designed to recover specific costs of providing regulated services. Under regulatory accounting, Consumers records regulatory assets or liabilities for certain transactions that would have been treated as expense or revenue by non‑regulated businesses.
Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets:
In Millions
December 31End of Recovery or Refund Period20222021
Regulatory assets
Current
Energy waste reduction plan incentive1
2023$47 $42 
Other202310 
Total current regulatory assets$57 $46 
Non-current
Costs of coal-fueled electric generating units to be retired2
various$1,960 $678 
Postretirement benefits3
various856 837 
ARO4
various281 247 
Securitized costs2
2029165 193 
MGP sites4
various108 112 
Unamortized loss on reacquired debt4
various100 104 
Energy waste reduction plan incentive1
202455 46 
Retention incentive program4
various31 
Demand response program4
various12 10 
Energy waste reduction plan4
various10 13 
Othervarious17 12 
Total non-current regulatory assets$3,595 $2,259 
Total regulatory assets$3,652 $2,305 
Regulatory liabilities
Current
Income taxes, net2023$48 $138 
Reserve for customer refunds202347 
Other2023
Total current regulatory liabilities$104 $146 
Non-current
Cost of removalvarious$2,426 $2,375 
Income taxes, netvarious1,267 1,297 
Renewable energy grant204345 47 
Renewable energy plan202832 13 
Demand response programvarious12 
Energy waste reduction planvarious— 
Postretirement benefitsvarious— 54 
Othervarious
Total non-current regulatory liabilities$3,796 $3,802 
Total regulatory liabilities$3,900 $3,948 
1These regulatory assets have arisen from an alternative revenue program and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return.
2The MPSC has provided a specific return on these regulatory assets.
3This regulatory asset is included in rate base, thereby providing a return.
4These regulatory assets represent incurred costs for which the MPSC has provided recovery without a return on investment.
Regulatory Assets
Energy Waste Reduction Plan Incentive: The energy waste reduction incentive mechanism provides a financial incentive if the energy savings of Consumers’ customers exceed annual targets established by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the incentive as soon as energy savings exceed the annual targets established by the MPSC.
In October 2022, the MPSC approved a settlement agreement authorizing Consumers to collect $46 million during 2023 as an incentive for exceeding its statutory savings targets in 2021. Consumers recognized incentive revenue under this program of $46 million in 2021.
Consumers also exceeded its statutory savings targets in 2022, achieved certain other goals, and will request the MPSC’s approval to collect $55 million, the maximum performance incentive, in the energy waste reduction reconciliation to be filed in May 2023. Consumers recognized incentive revenue under this program of $55 million in 2022.
Costs of Coal-fueled Electric Generating Units to be Retired: In 2019, the MPSC approved the settlement agreement reached in Consumers’ 2018 IRP, under which Consumers will retire the D.E. Karn coal-fueled electric generating units in 2023. Under Michigan law, electric utilities have been permitted to use highly rated, low-cost securitization bonds to finance the recovery of qualified costs. In 2019, Consumers removed from total plant, property, and equipment an amount representing the projected remaining book value of the two coal-fueled electric generating units upon their retirement, and recorded it as a regulatory asset. In 2020, the MPSC issued a securitization financing order authorizing Consumers to issue securitization bonds in order to finance the recovery of the remaining book value of the two coal-fueled electric generating units upon their retirement. Until securitization, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases.
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 a 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.
Postretirement Benefits: As part of the ratemaking process, the MPSC allows Consumers to recover the costs of postretirement benefits. Accordingly, Consumers defers the net impact of actuarial losses and gains, prior service costs and credits, and settlements associated with postretirement benefits as a regulatory asset or liability. The asset or liability will decrease as the deferred items are amortized and recognized as components of net periodic benefit cost. For details about settlements and the amortization periods, see Note 10, Retirement Benefits.
ARO: The recovery of the underlying asset investments and related removal and monitoring costs of recorded AROs is approved by the MPSC in depreciation rate cases. Consumers records a regulatory asset and a regulatory liability for timing differences between the recognition of AROs for financial reporting purposes and the recovery of these costs from customers. The recovery period approximates the useful life of the assets to be removed.
Securitized Costs: In 2013, the MPSC issued a securitization financing order authorizing Consumers to issue securitization bonds in order to finance the recovery of the remaining book value of seven smaller coal-fueled electric generating units that Consumers retired in 2016 and three smaller natural gas-fueled electric generating units that Consumers retired in 2015. Upon receipt of the MPSC’s order, Consumers removed the book value of the ten units from plant, property, and equipment and recorded this amount as a regulatory asset. Consumers is amortizing the regulatory asset over the life of the related securitization bonds, which it issued through a subsidiary in 2014. For additional details regarding the securitization bonds, see Note 4, Financings and Capitalization.
MGP Sites: Consumers is incurring environmental remediation and other response activity costs at 23 former MGP facilities. The MPSC allows Consumers to recover from its natural gas customers over a ten-year period the costs incurred to remediate the MGP sites.
Unamortized Loss on Reacquired Debt: Under regulatory accounting, any unamortized discount, premium, or expense related to debt redeemed with the proceeds of new debt is capitalized and amortized over the life of the new debt.
Retention Incentive Program: To ensure necessary staffing at the D.E. Karn and J.H. Campbell generating complexes through the anticipated retirement of the coal-fueled generating units, Consumers has established retention incentive programs. In 2020, the MPSC approved deferred accounting treatment for the retention and severance costs incurred under the D.E. Karn program, and Consumers began deferring these costs as a regulatory asset in 2021. In addition, under the 2021 IRP, the MPSC approved deferred accounting treatment for the retention and severance costs incurred under the J.H. Campbell program during 2022; deferral of costs beyond 2022 was approved as part of the 2022 electric rate case settlement. For additional details regarding the retention incentive program, see Note 19, Exit Activities and Discontinued Operations.
Demand Response Program: In Consumers’ 2018 IRP and general rate cases, the MPSC has approved the recovery of demand response costs. Consumers annually files a reconciliation with the MPSC to review actual demand response costs against amounts approved. The amount of spending incurred in excess of amounts included in rates for recovery is recorded as a regulatory asset and amortized when it is collected from customers. The amount included in rates for recovery in excess of spending incurred is recorded as a regulatory liability to be refunded to customers.
Energy Waste Reduction Plan: The MPSC allows Consumers to collect surcharges from customers to fund its energy waste reduction plan. The amount of spending incurred in excess of surcharges collected is recorded as a regulatory asset and amortized as surcharges are collected from customers over the plan period. The amount of surcharges collected in excess of spending incurred is recorded as a regulatory liability and amortized as costs are incurred.
Regulatory Liabilities
Income Taxes, Net: Consumers records regulatory assets and liabilities to reflect the difference between deferred income taxes recognized for financial reporting purposes and amounts previously reflected in Consumers’ rates. This net balance will decrease over the remaining life of the related temporary differences and flow through income tax expense. The majority of the net regulatory liability recorded
related to income taxes is associated with plant assets that are subject to normalization, which is governed by the Internal Revenue Code, and will be returned to customers over the remaining book life of the related plant assets. For additional details on deferred income taxes, see Note 12, Income Taxes.
Reserve for Customer Refunds: In December 2022, the MPSC issued an order authorizing Consumers to refund $22 million voluntarily to utility customers. In January 2023, Consumers submitted a filing proposing that the refund take the form of incremental funding to cover the cost of, and return on, certain distribution capital investments above amounts included in rates and contributions to programs that assist vulnerable customers.
Additionally, in the settlement of its 2022 electric rate case, Consumers agreed to refund voluntarily $15 million of 2022 revenues to utility customers through a one-time bill credit and to fund $10 million in contributions to programs that directly assist vulnerable customers with utility bills.
Cost of Removal: The MPSC allows Consumers to collect amounts from customers to fund future asset removal activities. This regulatory liability is reduced as costs are incurred to remove the assets at the end of their useful lives.
Renewable Energy Grant: In 2013, Consumers received a $69 million renewable energy grant for Lake Winds® Energy Park, which began operations in 2012. This grant reduces Consumers’ cost of complying with Michigan’s renewable portfolio standard and, accordingly, reduces the overall renewable energy surcharge to be collected from customers. The regulatory liability recorded for the grant will be amortized over the life of Lake Winds® Energy Park.
Renewable Energy Plan: Consumers has collected surcharges to fund its renewable energy plan. Amounts not yet spent under the plan are recorded as a regulatory liability, which is amortized as incremental costs are incurred to operate and depreciate Consumers’ renewable generation facilities and to purchase RECs under renewable energy purchase agreements. Incremental costs represent costs incurred in excess of amounts recovered through the PSCR process.
Consumers Electric Utility
2021 Electric Rate Case: In December 2021, the MPSC issued a final order in Consumers’ 2021 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 certain of these capital expenditures, a portion of which were held by the gas utility, and recorded impairment charges totaling $45 million within maintenance and other operating expenses on its consolidated statements of income for the year ended December 31, 2021.
2022 Electric Rate Case: In April 2022, Consumers filed an application with the MPSC seeking a rate increase of $272 million, based on a 10.25-percent authorized return on equity for the projected twelve-month period ending December 31, 2023. In September 2022, Consumers revised its requested increase to $292 million. The filing requested authority to recover future investments associated with distribution system reliability, solar generation, environmental compliance, and enhanced technology.
In January 2023, the MPSC approved a settlement agreement authorizing an annual rate increase of $155 million, based on a 9.9-percent authorized return on equity. The MPSC also approved a surcharge for the recovery of $6 million of depreciation, property tax, and interest expense related to distribution investments made in 2021 that exceeded what was authorized in rates in accordance with the December 2020 electric rate order. Additionally, the approved settlement provides for the following:
a pension and OPEB tracker that will allow Consumers to defer the future recovery or refund of pension and OPEB expenses above or below the amounts used to set existing rates, respectively
a refund of $15 million of 2022 revenues to utility customers through a one-time bill credit
a commitment to fund $10 million in contributions to programs that directly assist vulnerable customers with utility bills
deferred accounting treatment for depreciation and property tax expense as well as the debt component of the overall rate of return for distribution-related capital investments exceeding a certain threshold amount
an increase to the distributed generation cap from two percent to four percent on Consumers’ system
There were no direct disallowances of historical capital expenditures within the approved settlement agreement. The new rates became effective January 20, 2023.
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; this application was approved by the MPSC in October 2022. During 2022, Consumers shared two-thirds with electric customers through additional spending for tree trimming and one-third with gas customers through a donation to nonprofit agencies that provide customer energy bill assistance.
Consumers Gas Utility
2021 Gas Rate Case: In December 2021, Consumers filed an application with the MPSC seeking an annual rate increase of $278 million, based on a 10.5-percent authorized return on equity for the projected twelve-month period ending September 30, 2023. In April 2022, Consumers reduced its requested annual rate increase to $233 million, based on a 10.25-percent authorized return on equity. In July 2022, the MPSC approved a settlement agreement authorizing an annual rate increase of $170 million, based on a 9.9-percent authorized return on equity, effective October 1, 2022. The MPSC also approved the continuation of a revenue decoupling mechanism, which annually reconciles Consumers’ actual weather-normalized non-fuel revenues with the revenues approved.
Power Supply Cost Recovery and Gas Cost Recovery
The PSCR and GCR ratemaking processes are designed to allow Consumers to recover all of its power supply and purchased natural gas costs if incurred under reasonable and prudent policies and practices. The MPSC reviews these costs, policies, and practices in annual plan and reconciliation proceedings. Consumers adjusts its PSCR and GCR billing charges monthly, subject to ceiling factor limitations, in order to minimize the underrecovery or overrecovery amount in the annual reconciliations. Underrecoveries represent probable future revenues that will be recovered from customers; overrecoveries represent previously collected revenues that will be refunded to customers.
Presented in the following table are the assets and liabilities for PSCR and GCR underrecoveries and overrecoveries reflected on Consumers’ consolidated balance sheets:
In Millions
December 3120222021
Assets
PSCR underrecoveries$401 $— 
GCR underrecoveries25 
Accounts receivable and accrued revenue$409 $25 
Liabilities
PSCR overrecoveries$— $12 
Accrued rate refunds$— $12 
Due to spikes in fuel prices during 2022, the cost of electric generation increased, resulting in higher market prices for electricity. Accordingly, Consumers’ power supply costs for 2022 were significantly higher than those projected in its 2022 PSCR plan. Consumers included a projection of its full-year 2022 underrecovery in the 2023 PSCR plan filed with the MPSC in September 2022. In January 2023, Consumers filed a motion for a temporary order in its 2023 PSCR plan, requesting that the MPSC approve only a third of the 2022 underrecovery amount for recovery in 2023, with the remaining amount to be recovered equally during 2024 and 2025. Recovering the 2022 underrecovery over three years will provide immediate relief to electric customers, and the financial impact will be neutral to Consumers’ earnings.
PSCR Plans and Reconciliations: In August 2022, the MPSC issued an order in Consumers’ 2020 PSCR reconciliation, authorizing recovery of $1.8 billion of power costs and authorizing Consumers to reflect in its 2021 PSCR reconciliation the underrecovery of $1 million. In its order, the MPSC disallowed the recovery of $1 million of replacement power costs associated with an extended outage at Ludington. Consumers filed an appeal of the MPSC’s order with the Michigan Court of Appeals in September 2022.
In March 2022, Consumers filed its 2021 PSCR reconciliation, requesting full recovery of $2.1 billion of power costs and authorization to reflect in its 2022 PSCR reconciliation the overrecovery of $8 million.
Consumers submitted its 2022 PSCR plan to the MPSC in September 2021 and self-implemented its proposed 2022 PSCR charge in January 2022.
GCR Plans and Reconciliations: In April 2022, the MPSC approved a settlement agreement in Consumers’ 2020-2021 GCR reconciliation, authorizing recovery of $0.4 billion of gas costs and authorizing Consumers to reflect in its 2021-2022 GCR reconciliation the overrecovery of $2 million.
In June 2022, Consumers filed its 2021-2022 GCR reconciliation, requesting full recovery of $0.7 billion of gas costs and authorization to reflect in its 2022-2023 GCR reconciliation the underrecovery of $9 million.
Consumers submitted its 2022-2023 GCR plan to the MPSC in December 2021 and self-implemented its proposed 2022-2023 GCR charge in April 2022. In June 2022, Consumers filed with the MPSC a revised GCR plan requesting an increase to the GCR factor due to rising natural gas prices. Consumers self-implemented that increased factor in October 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, residential customer advocacy groups, environmental organizations, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings.
There are multiple appeals pending that involve various issues concerning cost recovery from customers, the MPSC’s authority to approve voluntary revenue refunds, and other matters. Consumers is unable to predict the outcome of these appeals.
Regulatory Assets and Liabilities
Consumers is subject to the actions of the MPSC and FERC and therefore prepares its consolidated financial statements in accordance with the provisions of regulatory accounting. A utility must apply regulatory accounting when its rates are designed to recover specific costs of providing regulated services. Under regulatory accounting, Consumers records regulatory assets or liabilities for certain transactions that would have been treated as expense or revenue by non‑regulated businesses.
Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets:
In Millions
December 31End of Recovery or Refund Period20222021
Regulatory assets
Current
Energy waste reduction plan incentive1
2023$47 $42 
Other202310 
Total current regulatory assets$57 $46 
Non-current
Costs of coal-fueled electric generating units to be retired2
various$1,960 $678 
Postretirement benefits3
various856 837 
ARO4
various281 247 
Securitized costs2
2029165 193 
MGP sites4
various108 112 
Unamortized loss on reacquired debt4
various100 104 
Energy waste reduction plan incentive1
202455 46 
Retention incentive program4
various31 
Demand response program4
various12 10 
Energy waste reduction plan4
various10 13 
Othervarious17 12 
Total non-current regulatory assets$3,595 $2,259 
Total regulatory assets$3,652 $2,305 
Regulatory liabilities
Current
Income taxes, net2023$48 $138 
Reserve for customer refunds202347 
Other2023
Total current regulatory liabilities$104 $146 
Non-current
Cost of removalvarious$2,426 $2,375 
Income taxes, netvarious1,267 1,297 
Renewable energy grant204345 47 
Renewable energy plan202832 13 
Demand response programvarious12 
Energy waste reduction planvarious— 
Postretirement benefitsvarious— 54 
Othervarious
Total non-current regulatory liabilities$3,796 $3,802 
Total regulatory liabilities$3,900 $3,948 
1These regulatory assets have arisen from an alternative revenue program and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return.
2The MPSC has provided a specific return on these regulatory assets.
3This regulatory asset is included in rate base, thereby providing a return.
4These regulatory assets represent incurred costs for which the MPSC has provided recovery without a return on investment.
Regulatory Assets
Energy Waste Reduction Plan Incentive: The energy waste reduction incentive mechanism provides a financial incentive if the energy savings of Consumers’ customers exceed annual targets established by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the incentive as soon as energy savings exceed the annual targets established by the MPSC.
In October 2022, the MPSC approved a settlement agreement authorizing Consumers to collect $46 million during 2023 as an incentive for exceeding its statutory savings targets in 2021. Consumers recognized incentive revenue under this program of $46 million in 2021.
Consumers also exceeded its statutory savings targets in 2022, achieved certain other goals, and will request the MPSC’s approval to collect $55 million, the maximum performance incentive, in the energy waste reduction reconciliation to be filed in May 2023. Consumers recognized incentive revenue under this program of $55 million in 2022.
Costs of Coal-fueled Electric Generating Units to be Retired: In 2019, the MPSC approved the settlement agreement reached in Consumers’ 2018 IRP, under which Consumers will retire the D.E. Karn coal-fueled electric generating units in 2023. Under Michigan law, electric utilities have been permitted to use highly rated, low-cost securitization bonds to finance the recovery of qualified costs. In 2019, Consumers removed from total plant, property, and equipment an amount representing the projected remaining book value of the two coal-fueled electric generating units upon their retirement, and recorded it as a regulatory asset. In 2020, the MPSC issued a securitization financing order authorizing Consumers to issue securitization bonds in order to finance the recovery of the remaining book value of the two coal-fueled electric generating units upon their retirement. Until securitization, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases.
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 a 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.
Postretirement Benefits: As part of the ratemaking process, the MPSC allows Consumers to recover the costs of postretirement benefits. Accordingly, Consumers defers the net impact of actuarial losses and gains, prior service costs and credits, and settlements associated with postretirement benefits as a regulatory asset or liability. The asset or liability will decrease as the deferred items are amortized and recognized as components of net periodic benefit cost. For details about settlements and the amortization periods, see Note 10, Retirement Benefits.
ARO: The recovery of the underlying asset investments and related removal and monitoring costs of recorded AROs is approved by the MPSC in depreciation rate cases. Consumers records a regulatory asset and a regulatory liability for timing differences between the recognition of AROs for financial reporting purposes and the recovery of these costs from customers. The recovery period approximates the useful life of the assets to be removed.
Securitized Costs: In 2013, the MPSC issued a securitization financing order authorizing Consumers to issue securitization bonds in order to finance the recovery of the remaining book value of seven smaller coal-fueled electric generating units that Consumers retired in 2016 and three smaller natural gas-fueled electric generating units that Consumers retired in 2015. Upon receipt of the MPSC’s order, Consumers removed the book value of the ten units from plant, property, and equipment and recorded this amount as a regulatory asset. Consumers is amortizing the regulatory asset over the life of the related securitization bonds, which it issued through a subsidiary in 2014. For additional details regarding the securitization bonds, see Note 4, Financings and Capitalization.
MGP Sites: Consumers is incurring environmental remediation and other response activity costs at 23 former MGP facilities. The MPSC allows Consumers to recover from its natural gas customers over a ten-year period the costs incurred to remediate the MGP sites.
Unamortized Loss on Reacquired Debt: Under regulatory accounting, any unamortized discount, premium, or expense related to debt redeemed with the proceeds of new debt is capitalized and amortized over the life of the new debt.
Retention Incentive Program: To ensure necessary staffing at the D.E. Karn and J.H. Campbell generating complexes through the anticipated retirement of the coal-fueled generating units, Consumers has established retention incentive programs. In 2020, the MPSC approved deferred accounting treatment for the retention and severance costs incurred under the D.E. Karn program, and Consumers began deferring these costs as a regulatory asset in 2021. In addition, under the 2021 IRP, the MPSC approved deferred accounting treatment for the retention and severance costs incurred under the J.H. Campbell program during 2022; deferral of costs beyond 2022 was approved as part of the 2022 electric rate case settlement. For additional details regarding the retention incentive program, see Note 19, Exit Activities and Discontinued Operations.
Demand Response Program: In Consumers’ 2018 IRP and general rate cases, the MPSC has approved the recovery of demand response costs. Consumers annually files a reconciliation with the MPSC to review actual demand response costs against amounts approved. The amount of spending incurred in excess of amounts included in rates for recovery is recorded as a regulatory asset and amortized when it is collected from customers. The amount included in rates for recovery in excess of spending incurred is recorded as a regulatory liability to be refunded to customers.
Energy Waste Reduction Plan: The MPSC allows Consumers to collect surcharges from customers to fund its energy waste reduction plan. The amount of spending incurred in excess of surcharges collected is recorded as a regulatory asset and amortized as surcharges are collected from customers over the plan period. The amount of surcharges collected in excess of spending incurred is recorded as a regulatory liability and amortized as costs are incurred.
Regulatory Liabilities
Income Taxes, Net: Consumers records regulatory assets and liabilities to reflect the difference between deferred income taxes recognized for financial reporting purposes and amounts previously reflected in Consumers’ rates. This net balance will decrease over the remaining life of the related temporary differences and flow through income tax expense. The majority of the net regulatory liability recorded
related to income taxes is associated with plant assets that are subject to normalization, which is governed by the Internal Revenue Code, and will be returned to customers over the remaining book life of the related plant assets. For additional details on deferred income taxes, see Note 12, Income Taxes.
Reserve for Customer Refunds: In December 2022, the MPSC issued an order authorizing Consumers to refund $22 million voluntarily to utility customers. In January 2023, Consumers submitted a filing proposing that the refund take the form of incremental funding to cover the cost of, and return on, certain distribution capital investments above amounts included in rates and contributions to programs that assist vulnerable customers.
Additionally, in the settlement of its 2022 electric rate case, Consumers agreed to refund voluntarily $15 million of 2022 revenues to utility customers through a one-time bill credit and to fund $10 million in contributions to programs that directly assist vulnerable customers with utility bills.
Cost of Removal: The MPSC allows Consumers to collect amounts from customers to fund future asset removal activities. This regulatory liability is reduced as costs are incurred to remove the assets at the end of their useful lives.
Renewable Energy Grant: In 2013, Consumers received a $69 million renewable energy grant for Lake Winds® Energy Park, which began operations in 2012. This grant reduces Consumers’ cost of complying with Michigan’s renewable portfolio standard and, accordingly, reduces the overall renewable energy surcharge to be collected from customers. The regulatory liability recorded for the grant will be amortized over the life of Lake Winds® Energy Park.
Renewable Energy Plan: Consumers has collected surcharges to fund its renewable energy plan. Amounts not yet spent under the plan are recorded as a regulatory liability, which is amortized as incremental costs are incurred to operate and depreciate Consumers’ renewable generation facilities and to purchase RECs under renewable energy purchase agreements. Incremental costs represent costs incurred in excess of amounts recovered through the PSCR process.
Consumers Electric Utility
2021 Electric Rate Case: In December 2021, the MPSC issued a final order in Consumers’ 2021 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 certain of these capital expenditures, a portion of which were held by the gas utility, and recorded impairment charges totaling $45 million within maintenance and other operating expenses on its consolidated statements of income for the year ended December 31, 2021.
2022 Electric Rate Case: In April 2022, Consumers filed an application with the MPSC seeking a rate increase of $272 million, based on a 10.25-percent authorized return on equity for the projected twelve-month period ending December 31, 2023. In September 2022, Consumers revised its requested increase to $292 million. The filing requested authority to recover future investments associated with distribution system reliability, solar generation, environmental compliance, and enhanced technology.
In January 2023, the MPSC approved a settlement agreement authorizing an annual rate increase of $155 million, based on a 9.9-percent authorized return on equity. The MPSC also approved a surcharge for the recovery of $6 million of depreciation, property tax, and interest expense related to distribution investments made in 2021 that exceeded what was authorized in rates in accordance with the December 2020 electric rate order. Additionally, the approved settlement provides for the following:
a pension and OPEB tracker that will allow Consumers to defer the future recovery or refund of pension and OPEB expenses above or below the amounts used to set existing rates, respectively
a refund of $15 million of 2022 revenues to utility customers through a one-time bill credit
a commitment to fund $10 million in contributions to programs that directly assist vulnerable customers with utility bills
deferred accounting treatment for depreciation and property tax expense as well as the debt component of the overall rate of return for distribution-related capital investments exceeding a certain threshold amount
an increase to the distributed generation cap from two percent to four percent on Consumers’ system
There were no direct disallowances of historical capital expenditures within the approved settlement agreement. The new rates became effective January 20, 2023.
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; this application was approved by the MPSC in October 2022. During 2022, Consumers shared two-thirds with electric customers through additional spending for tree trimming and one-third with gas customers through a donation to nonprofit agencies that provide customer energy bill assistance.
Consumers Gas Utility
2021 Gas Rate Case: In December 2021, Consumers filed an application with the MPSC seeking an annual rate increase of $278 million, based on a 10.5-percent authorized return on equity for the projected twelve-month period ending September 30, 2023. In April 2022, Consumers reduced its requested annual rate increase to $233 million, based on a 10.25-percent authorized return on equity. In July 2022, the MPSC approved a settlement agreement authorizing an annual rate increase of $170 million, based on a 9.9-percent authorized return on equity, effective October 1, 2022. The MPSC also approved the continuation of a revenue decoupling mechanism, which annually reconciles Consumers’ actual weather-normalized non-fuel revenues with the revenues approved.
Power Supply Cost Recovery and Gas Cost Recovery
The PSCR and GCR ratemaking processes are designed to allow Consumers to recover all of its power supply and purchased natural gas costs if incurred under reasonable and prudent policies and practices. The MPSC reviews these costs, policies, and practices in annual plan and reconciliation proceedings. Consumers adjusts its PSCR and GCR billing charges monthly, subject to ceiling factor limitations, in order to minimize the underrecovery or overrecovery amount in the annual reconciliations. Underrecoveries represent probable future revenues that will be recovered from customers; overrecoveries represent previously collected revenues that will be refunded to customers.
Presented in the following table are the assets and liabilities for PSCR and GCR underrecoveries and overrecoveries reflected on Consumers’ consolidated balance sheets:
In Millions
December 3120222021
Assets
PSCR underrecoveries$401 $— 
GCR underrecoveries25 
Accounts receivable and accrued revenue$409 $25 
Liabilities
PSCR overrecoveries$— $12 
Accrued rate refunds$— $12 
Due to spikes in fuel prices during 2022, the cost of electric generation increased, resulting in higher market prices for electricity. Accordingly, Consumers’ power supply costs for 2022 were significantly higher than those projected in its 2022 PSCR plan. Consumers included a projection of its full-year 2022 underrecovery in the 2023 PSCR plan filed with the MPSC in September 2022. In January 2023, Consumers filed a motion for a temporary order in its 2023 PSCR plan, requesting that the MPSC approve only a third of the 2022 underrecovery amount for recovery in 2023, with the remaining amount to be recovered equally during 2024 and 2025. Recovering the 2022 underrecovery over three years will provide immediate relief to electric customers, and the financial impact will be neutral to Consumers’ earnings.
PSCR Plans and Reconciliations: In August 2022, the MPSC issued an order in Consumers’ 2020 PSCR reconciliation, authorizing recovery of $1.8 billion of power costs and authorizing Consumers to reflect in its 2021 PSCR reconciliation the underrecovery of $1 million. In its order, the MPSC disallowed the recovery of $1 million of replacement power costs associated with an extended outage at Ludington. Consumers filed an appeal of the MPSC’s order with the Michigan Court of Appeals in September 2022.
In March 2022, Consumers filed its 2021 PSCR reconciliation, requesting full recovery of $2.1 billion of power costs and authorization to reflect in its 2022 PSCR reconciliation the overrecovery of $8 million.
Consumers submitted its 2022 PSCR plan to the MPSC in September 2021 and self-implemented its proposed 2022 PSCR charge in January 2022.
GCR Plans and Reconciliations: In April 2022, the MPSC approved a settlement agreement in Consumers’ 2020-2021 GCR reconciliation, authorizing recovery of $0.4 billion of gas costs and authorizing Consumers to reflect in its 2021-2022 GCR reconciliation the overrecovery of $2 million.
In June 2022, Consumers filed its 2021-2022 GCR reconciliation, requesting full recovery of $0.7 billion of gas costs and authorization to reflect in its 2022-2023 GCR reconciliation the underrecovery of $9 million.
Consumers submitted its 2022-2023 GCR plan to the MPSC in December 2021 and self-implemented its proposed 2022-2023 GCR charge in April 2022. In June 2022, Consumers filed with the MPSC a revised GCR plan requesting an increase to the GCR factor due to rising natural gas prices. Consumers self-implemented that increased factor in October 2022.
v3.22.4
Contingencies and Commitments
12 Months Ended
Dec. 31, 2022
Other Commitments [Line Items]  
Contingencies and Commitments Contingencies and Commitments
CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures stating that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter.
CMS Energy Contingencies
Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement establishing the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which was renewed in January 2022 and is valid through 2025.
At December 31, 2022, CMS Energy had a recorded liability of $45 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $57 million. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs in each of the next five years:
In Millions
20232024202520262027
CMS Energy
Long-term leachate disposal and operating and maintenance costs$$$$$
CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter.
Consumers Electric Utility Contingencies
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations.
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates its liability for NREPA sites for which it can estimate a range of loss to be between $2 million and $4 million. At December 31, 2022, Consumers had
a recorded liability of $2 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount.
Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA had reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 2011, Consumers received a follow-up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties asked to participate in the removal action plan, including Consumers, declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river.
Based on its experience, Consumers estimates its share of the total liability for known CERCLA sites to be between $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At December 31, 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.
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, a non-affiliated company, 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. In September 2022, the court denied the motion to dismiss filed by TAES and Toshiba Corporation. Consumers believes the 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.
In November 2022, Consumers and DTE Electric jointly filed an application with the MPSC, requesting authority to defer as a regulatory asset the costs associated with repairing or replacing the defective work performed by TAES while the litigation with TAES and Toshiba Corporation moves forward; such costs would be offset by potential future litigation proceeds received from TAES or Toshiba Corporation. If this application is approved by the MPSC, Consumers and DTE Electric will have the opportunity to seek appropriate recovery and ratemaking treatment for amounts recorded as a regulatory asset following resolution of the litigation.
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 was heard in August 2022. In October 2022, the state circuit court judge found that Consumers may, in its sole discretion, retire the J.H. Campbell 3 coal-fueled generating unit, provided that Consumers continues to operate and make necessary improvements to the unit while the litigation concerning Wolverine Power Supply Cooperative, Inc.’s claim for damages is pending. Consumers believes Wolverine Power Supply Cooperative, Inc.’s claim has no merit, but cannot predict the final impact or outcome on this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity.
Consumers Gas Utility Contingencies
Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site.
At December 31, 2022, Consumers had a recorded liability of $62 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 $67 million. Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years:
In Millions
20232024202520262027
Consumers
Remediation and other response activity costs$$11 $31 $$
Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability.
Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten-year period. At December 31, 2022, Consumers had a regulatory asset of $108 million related to the MGP sites.
Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million. At December 31, 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 February 2021, after the MPSC denied Consumers’ petition for rehearing challenging this disallowance, Consumers filed an appeal with the Michigan Court of Appeals. In December 2022, the Michigan Court of Appeals issued a decision rejecting Consumers’ appeal. Consumers plans to file an application for leave to appeal with the Michigan Supreme Court in February 2023.
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 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 in 2022.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2022:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousindefinite$325 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite226 
Guarantee3
2011indefinite30 — 
Consumers
Guarantee3
2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in NWO Holdco and Aviator Wind to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on NorthStar Clean Energy’s ownership interest in NWO Holdco and Aviator Wind, see Note 18, Variable Interest Entities.
2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes 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 19, Exit Activities and Discontinued Operations.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities and those disclosed in the table to be remote.
Other Contingencies
In addition to the matters disclosed in this Note and Note 2, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further,
CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity.
Contractual Commitments
Purchase Obligations: Purchase obligations arise from long-term contracts for the purchase of commodities and related services, plant purchase commitments, and construction and service agreements. The commodities and related services include long-term PPAs, natural gas and associated transportation, and coal and associated transportation. Related-party PPAs are between Consumers and certain affiliates of NorthStar Clean Energy. Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2022 for each of the periods shown:
In Millions
Payments Due
Total20232024202520262027Beyond 2027
CMS Energy, including Consumers
Total PPAs$8,479 $652 $792 $809 $812 $847 $4,567 
Other4,042 2,513 903 335 41 31 219 
Total purchase obligations$12,521 $3,165 $1,695 $1,144 $853 $878 $4,786 
Consumers
PPAs
MCV PPA$2,317 $286 $369 $357 $384 $406 $515 
Related-party PPAs320 76 76 53 35 38 42 
Other PPAs5,842 290 347 399 393 403 4,010 
Total PPAs$8,479 $652 $792 $809 $812 $847 $4,567 
Other3,422 2,394 836 177 11 
Total purchase obligations$11,901 $3,046 $1,628 $986 $823 $848 $4,570 
MCV PPA: Consumers has a PPA with the MCV Partnership giving Consumers the right to purchase up to 1,240 MW of capacity and energy produced by the MCV Facility through May 2030. The MCV PPA provides for:
a capacity charge of $10.14 per MWh of available capacity through March 2025 and $5.00 per MWh of available capacity from March 2025 through the termination date of the PPA
a fixed energy charge of $6.30 per MWh for on-peak hours and $6.00 for off-peak hours
a variable energy charge based on the MCV Partnership’s cost of production for energy delivered to Consumers
a $5 million annual contribution by the MCV Partnership to a renewable resources program through March 2025
Capacity and energy charges under the MCV PPA were $519 million in 2022, $348 million in 2021, and $298 million in 2020.
Other PPAs: Consumers has PPAs expiring through 2050 with various counterparties. The majority of the PPAs have capacity and energy charges for delivered energy. Capacity and energy charges under these PPAs were $510 million in 2022, $338 million in 2021, and $327 million in 2020. In addition,
CMS Energy and Consumers account for several of their PPAs as leases. See Note 8, Leases for more information about CMS Energy’s and Consumers’ lease obligations.
Consumers Energy Company  
Other Commitments [Line Items]  
Contingencies and Commitments Contingencies and Commitments
CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures stating that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter.
CMS Energy Contingencies
Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement establishing the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which was renewed in January 2022 and is valid through 2025.
At December 31, 2022, CMS Energy had a recorded liability of $45 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $57 million. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs in each of the next five years:
In Millions
20232024202520262027
CMS Energy
Long-term leachate disposal and operating and maintenance costs$$$$$
CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter.
Consumers Electric Utility Contingencies
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations.
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates its liability for NREPA sites for which it can estimate a range of loss to be between $2 million and $4 million. At December 31, 2022, Consumers had
a recorded liability of $2 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount.
Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA had reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 2011, Consumers received a follow-up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties asked to participate in the removal action plan, including Consumers, declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river.
Based on its experience, Consumers estimates its share of the total liability for known CERCLA sites to be between $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At December 31, 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.
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, a non-affiliated company, 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. In September 2022, the court denied the motion to dismiss filed by TAES and Toshiba Corporation. Consumers believes the 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.
In November 2022, Consumers and DTE Electric jointly filed an application with the MPSC, requesting authority to defer as a regulatory asset the costs associated with repairing or replacing the defective work performed by TAES while the litigation with TAES and Toshiba Corporation moves forward; such costs would be offset by potential future litigation proceeds received from TAES or Toshiba Corporation. If this application is approved by the MPSC, Consumers and DTE Electric will have the opportunity to seek appropriate recovery and ratemaking treatment for amounts recorded as a regulatory asset following resolution of the litigation.
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 was heard in August 2022. In October 2022, the state circuit court judge found that Consumers may, in its sole discretion, retire the J.H. Campbell 3 coal-fueled generating unit, provided that Consumers continues to operate and make necessary improvements to the unit while the litigation concerning Wolverine Power Supply Cooperative, Inc.’s claim for damages is pending. Consumers believes Wolverine Power Supply Cooperative, Inc.’s claim has no merit, but cannot predict the final impact or outcome on this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity.
Consumers Gas Utility Contingencies
Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site.
At December 31, 2022, Consumers had a recorded liability of $62 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 $67 million. Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years:
In Millions
20232024202520262027
Consumers
Remediation and other response activity costs$$11 $31 $$
Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability.
Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten-year period. At December 31, 2022, Consumers had a regulatory asset of $108 million related to the MGP sites.
Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million. At December 31, 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 February 2021, after the MPSC denied Consumers’ petition for rehearing challenging this disallowance, Consumers filed an appeal with the Michigan Court of Appeals. In December 2022, the Michigan Court of Appeals issued a decision rejecting Consumers’ appeal. Consumers plans to file an application for leave to appeal with the Michigan Supreme Court in February 2023.
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 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 in 2022.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2022:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousindefinite$325 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite226 
Guarantee3
2011indefinite30 — 
Consumers
Guarantee3
2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in NWO Holdco and Aviator Wind to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on NorthStar Clean Energy’s ownership interest in NWO Holdco and Aviator Wind, see Note 18, Variable Interest Entities.
2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes 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 19, Exit Activities and Discontinued Operations.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities and those disclosed in the table to be remote.
Other Contingencies
In addition to the matters disclosed in this Note and Note 2, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further,
CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity.
Contractual Commitments
Purchase Obligations: Purchase obligations arise from long-term contracts for the purchase of commodities and related services, plant purchase commitments, and construction and service agreements. The commodities and related services include long-term PPAs, natural gas and associated transportation, and coal and associated transportation. Related-party PPAs are between Consumers and certain affiliates of NorthStar Clean Energy. Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2022 for each of the periods shown:
In Millions
Payments Due
Total20232024202520262027Beyond 2027
CMS Energy, including Consumers
Total PPAs$8,479 $652 $792 $809 $812 $847 $4,567 
Other4,042 2,513 903 335 41 31 219 
Total purchase obligations$12,521 $3,165 $1,695 $1,144 $853 $878 $4,786 
Consumers
PPAs
MCV PPA$2,317 $286 $369 $357 $384 $406 $515 
Related-party PPAs320 76 76 53 35 38 42 
Other PPAs5,842 290 347 399 393 403 4,010 
Total PPAs$8,479 $652 $792 $809 $812 $847 $4,567 
Other3,422 2,394 836 177 11 
Total purchase obligations$11,901 $3,046 $1,628 $986 $823 $848 $4,570 
MCV PPA: Consumers has a PPA with the MCV Partnership giving Consumers the right to purchase up to 1,240 MW of capacity and energy produced by the MCV Facility through May 2030. The MCV PPA provides for:
a capacity charge of $10.14 per MWh of available capacity through March 2025 and $5.00 per MWh of available capacity from March 2025 through the termination date of the PPA
a fixed energy charge of $6.30 per MWh for on-peak hours and $6.00 for off-peak hours
a variable energy charge based on the MCV Partnership’s cost of production for energy delivered to Consumers
a $5 million annual contribution by the MCV Partnership to a renewable resources program through March 2025
Capacity and energy charges under the MCV PPA were $519 million in 2022, $348 million in 2021, and $298 million in 2020.
Other PPAs: Consumers has PPAs expiring through 2050 with various counterparties. The majority of the PPAs have capacity and energy charges for delivered energy. Capacity and energy charges under these PPAs were $510 million in 2022, $338 million in 2021, and $327 million in 2020. In addition,
CMS Energy and Consumers account for several of their PPAs as leases. See Note 8, Leases for more information about CMS Energy’s and Consumers’ lease obligations.
v3.22.4
Financings and Capitalization
12 Months Ended
Dec. 31, 2022
Debt Instrument [Line Items]  
Financings and Capitalization Financings and Capitalization
Presented in the following table is CMS Energy’s long-term debt at December 31:
In Millions
Interest Rate
(%)
Maturity20222021
CMS Energy, including Consumers
CMS Energy, parent only
Senior notes3.875 2024$250 $250 
3.600 2025250 250 
3.000 2026300 300 
2.950 2027275 275 
3.450 2027350 350 
4.700 2043250 250 
4.875 2044300 300 
$1,975 $1,975 
Junior subordinated notes1
4.750 
2
2050500 500 
3.750 
3
2050400 400 
5.625 2078200 200 
5.875 2078280 280 
5.875 2079630 630 
$2,010 $2,010 
Total CMS Energy, parent only$3,985 $3,985 
Consumers10,277 8,505 
NorthStar Clean Energy, including subsidiaries
Term loan facilityvariable2025— 78 
Term loan facilityvariable
4
2023100 — 
Total principal amount outstanding$14,362 $12,568 
Current amounts(1,090)(373)
Unamortized discounts(30)(31)
Unamortized issuance costs(120)(118)
Total long-term debt$13,122 $12,046 
1These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.
2On June 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 4.116 percent.
3On December 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 2.900 percent
4Funds borrowed under this facility have an interest rate of one-month Term SOFR plus a spread of one percent. At December 31, 2022, the interest rate for the loan issued under this facility was 5.423 percent.
Presented in the following table is Consumers’ long-term debt at December 31:
In Millions
Interest Rate
(%)
Maturity20222021
Consumers
First mortgage bonds
0.350 2023$300 $300 
3.375 2023325 325 
3.125 2024250 250 
3.190 202452 52 
3.680 2027100 100 
3.390 202735 35 
3.800 2028300 300 
3.600 2032350 — 
3.180 2032100 100 
5.800 2035175 175 
3.520 2037335 335 
4.010 2038215 215 
6.170 204050 50 
4.970 204050 50 
4.310 2042263 263 
3.950 2043425 425 
4.100 2045250 250 
3.250 2046450 450 
3.950 2047350 350 
4.050 2048550 550 
4.350 2049550 550 
3.750 2050300 300 
3.100 2050550 550 
3.500 2051575 575 
2.650 2052300 300 
4.200 2052450 — 
3.860 205250 50 
4.280 2057185 185 
2.500 2060525 525 
4.350 2064250 250 
variable
1
206976 76 
variable
1
2070134 134 
variable
1
2070127 127 
$8,997 $8,197 
Tax-exempt revenue bonds0.875 
2
203535 35 
1.800 
3
204975 75 
$110 $110 
Securitization bonds3.343 
4
2025-2029
5
170 198 
Term loan facilityvariable
6
20241,000 — 
Total principal amount outstanding$10,277 $8,505 
Current amounts(991)(365)
Unamortized discounts(27)(28)
Unamortized issuance costs(67)(62)
Total long-term debt$9,192 $8,050 
1The variable-rate bonds bear interest quarterly at a rate of three-month LIBOR minus 0.300 percent, subject to a zero-percent floor. At December 31, 2022, the interest rates were 4.469 percent for bonds due
September 2069, 4.375 percent for bonds due May 2070, and 3.484 percent for bonds due October 2070. The interest rate for all variable-rate bonds at December 31, 2021 was zero percent. The holders of these variable-rate bonds may put them to Consumers for redemption on certain dates prior to their stated maturity, including dates within one year of December 31, 2022.
2The interest rate on these tax-exempt revenue bonds will reset on October 8, 2026.
3The interest rate on these tax‑exempt revenue bonds will reset on October 1, 2024.
4The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2014 Securitization Funding, was 3.343 percent at December 31, 2022 and 3.290 percent at December 31, 2021.
5Principal and interest payments are made semiannually.
6Loans under this facility have an interest rate of one-month Term SOFR plus 0.650 percent. At December 31, 2022, the weighted-average interest rate for the loans issued under this facility was 4.975 percent at December 31, 2022.
Financings: Presented in the following table is a summary of major long-term debt issuances during 2022:
Principal
(In Millions)
Interest RateIssuance DateMaturity Date
NorthStar Clean Energy, including subsidiaries
Term loan facility1
$100 variableDecember 2022September 2023
Total NorthStar Clean Energy, including subsidiaries$100 
Consumers
Term loan facility2
$1,000 variableJuly 2022January 2024
First mortgage bonds350 3.600 %August 2022August 2032
First mortgage bonds 450 4.200 %August 2022September 2052
Total Consumers$1,800 
Total CMS Energy$1,900 
1    In December 2022, a subsidiary of NorthStar Clean Energy entered into a $185 million unsecured term loan credit agreement. Under this credit agreement, $100 million of loans have been issued as of December 31, 2022. In January 2023, an additional $30 million was borrowed under the unsecured term loan credit agreement.
2    In July 2022, Consumers entered into a delayed-draw $1.0 billion unsecured term loan credit agreement. Under this credit agreement, Consumers issued loans of $550 million in September 2022 and $450 million in November 2022. In January 2023, Consumers repaid $500 million of the term loan credit agreement.
In January 2023, Consumers entered into a bond purchase agreement to issue an aggregate principal amount of $400 million of first mortgage bonds through a private placement offering. The bonds, which were priced in November 2022, carry a weighted average interest rate of 5.251 percent and mature at varying dates between 2026 and 2037. The bonds are expected to be issued in May 2023. The proceeds of the bonds will be used to finance a portion of the purchase price of the New Covert Generating Facility and for general corporate purposes.
Also in January 2023, Consumers issued $425 million of first mortgage bonds that mature in March 2028 and bear interest at a rate of 4.650 percent. The proceeds of the bonds have been used to repay a portion of the $1.0 billion aggregate principal amount outstanding under Consumers’ term loan credit agreement and for general corporate purposes.
Presented in the following table is a summary of major long-term debt retirements during 2022:
Principal
(In Millions)
Interest RateRetirement DateMaturity Date
NorthStar Clean Energy, including subsidiaries
Term loan facility$76 variableJune 2022October 2025
In June 2022, NorthStar Clean Energy 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 NorthStar Clean Energy. For more information, see Note 18, Variable Interest Entities.
First Mortgage Bonds: Consumers secures its first mortgage bonds by a mortgage and lien on substantially all of its property. Consumers’ ability to issue first mortgage bonds is restricted by certain provisions in the First Mortgage Bond Indenture and the need for regulatory approvals under federal law. Restrictive issuance provisions in the First Mortgage Bond Indenture include achieving a two-times interest coverage ratio and having sufficient unfunded net property additions.Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Its current authorization expires on March 31, 2024. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. In December 2022, Consumers filed an application for authority to issue securities between April 1, 2023 and March 31 2025. Securitization Bonds: Certain regulatory assets held by Consumers’ subsidiary, Consumers 2014 Securitization Funding, collateralize Consumers’ securitization bonds. The bondholders have no recourse to Consumers’ assets except for those held by the subsidiary that issued the bonds. Consumers collects securitization surcharges to cover the principal and interest on the bonds as well as certain other qualified costs. The surcharges collected are remitted to a trustee and are not available to creditors of Consumers or creditors of Consumers’ affiliates other than the subsidiary that issued the bonds.
Debt Maturities: At December 31, 2022, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20232024202520262027
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$— $250 $250 $300 $625 
Consumers
991 1,332 31 32 168 
NorthStar Clean Energy, including subsidiaries100 — — — — 
Total CMS Energy1
$1,091 $1,582 $281 $332 $793 
Consumers
Long-term debt$991 $1,332 $31 $32 $168 
1    This amount excludes debt issuance costs, related to the term loan agreement of a subsidiary of NorthStar Clean Energy, of less than $1 million
Credit Facilities: The following credit facilities with banks were available at December 31, 2022:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
December 14, 20271
$550 $— $18 $532 
September 22, 2024
50 — 50 — 
NorthStar Clean Energy, including subsidiaries
September 25, 20252
$37 $— $37 $— 
Consumers3
December 14, 2027
$1,100 $— $29 $1,071 
November 18, 2024
250 — 27 223 
1There were no borrowings under this facility during the year ended December 31, 2022.
2This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 18, Variable Interest Entities.
3Obligations under these facilities are secured by first mortgage bonds of Consumers. There were no borrowings under these facilities during the year ended December 31, 2022.
Short-term Borrowings: Under Consumers’ commercial paper program, Consumers may issue, in one or more placements, investment-grade commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers’ revolving credit facilities and may have an aggregate principal amount outstanding of up to $500 million. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At December 31, 2022, there were $20 million of commercial paper notes outstanding under this program at an annual interest rate of 4.710 percent, recorded as current notes payable on the consolidated balance sheets of CMS Energy and Consumers.
In December 2022, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million. At December 31, 2022, outstanding borrowings under the agreement were $75 million bearing the maximum interest rate authorized by FERC for this short-term credit agreement of 3.500 percent.
Dividend Restrictions: At December 31, 2022, payment of dividends by CMS Energy on its common stock was limited to $6.8 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at December 31, 2022, Consumers had $1.9 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process.
During the year ended December 31, 2022, Consumers paid $769 million in dividends on its common stock to CMS Energy.
Capitalization: The authorized capital stock of CMS Energy consists of:
350 million shares of CMS Energy Common Stock, par value $0.01 per share
10 million shares of CMS Energy Preferred Stock, par value $0.01 per share
Issuance of Common Stock: 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. In 2022, CMS Energy settled forward contracts under this program by issuing 962,354 shares of common stock at a weighted-average price of $57.36 per share, resulting in net proceeds of $55 million.
Presented in the following table are details of CMS Energy’s forward sales contracts under this program at December 31, 2022:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialDecember 31, 2022
August 3, 2022February 1, 20242,944,20767.59 67.83 
August 24, 2022February 26, 20241,677,93869.46 69.69 
August 29, 2022February 26, 20241,783,38868.18 68.38 
These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock.
The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur.
If CMS Energy had elected to net share settle or net cash settle the contracts as of December 31, 2022, CMS Energy would not have been required to deliver shares or pay cash.
Preferred Stock: CMS Energy’s Series C preferred stock is traded on the New York Stock Exchange under the symbol CMS PRC. Depositary shares represent a 1/1000th interest in a share of its Series C preferred stock. The Series C preferred stock has no maturity or mandatory redemption date and is not redeemable at the option of the holders. CMS Energy may, at its option, redeem the Series C preferred stock, in whole or in part, at any time on or after July 15, 2026. The Series C preferred stock ranks senior to CMS Energy’s common stock with respect to dividend rights and distribution rights upon liquidation. Presented in the following table are details of CMS Energy’s Series C preferred stock at December 31, 2022 and 2021:
Depositary Share Par Value Depositary Share Optional Redemption PriceNumber of Depositary Shares AuthorizedNumber of Depositary Shares Outstanding
Cumulative, redeemable perpetual$25 $25 9,200,000 9,200,000 
Preferred Stock of Subsidiary: Consumers’ preferred stock is traded on the New York Stock Exchange under the symbol CMS-PB. Presented in the following table are details of Consumers’ preferred stock at December 31, 2022 and 2021:
Par ValueOptional Redemption PriceNumber of Shares AuthorizedNumber of Shares Outstanding
Cumulative, with no mandatory redemption
$100 $110 7,500,000 373,148 
Consumers Energy Company  
Debt Instrument [Line Items]  
Financings and Capitalization Financings and Capitalization
Presented in the following table is CMS Energy’s long-term debt at December 31:
In Millions
Interest Rate
(%)
Maturity20222021
CMS Energy, including Consumers
CMS Energy, parent only
Senior notes3.875 2024$250 $250 
3.600 2025250 250 
3.000 2026300 300 
2.950 2027275 275 
3.450 2027350 350 
4.700 2043250 250 
4.875 2044300 300 
$1,975 $1,975 
Junior subordinated notes1
4.750 
2
2050500 500 
3.750 
3
2050400 400 
5.625 2078200 200 
5.875 2078280 280 
5.875 2079630 630 
$2,010 $2,010 
Total CMS Energy, parent only$3,985 $3,985 
Consumers10,277 8,505 
NorthStar Clean Energy, including subsidiaries
Term loan facilityvariable2025— 78 
Term loan facilityvariable
4
2023100 — 
Total principal amount outstanding$14,362 $12,568 
Current amounts(1,090)(373)
Unamortized discounts(30)(31)
Unamortized issuance costs(120)(118)
Total long-term debt$13,122 $12,046 
1These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.
2On June 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 4.116 percent.
3On December 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 2.900 percent
4Funds borrowed under this facility have an interest rate of one-month Term SOFR plus a spread of one percent. At December 31, 2022, the interest rate for the loan issued under this facility was 5.423 percent.
Presented in the following table is Consumers’ long-term debt at December 31:
In Millions
Interest Rate
(%)
Maturity20222021
Consumers
First mortgage bonds
0.350 2023$300 $300 
3.375 2023325 325 
3.125 2024250 250 
3.190 202452 52 
3.680 2027100 100 
3.390 202735 35 
3.800 2028300 300 
3.600 2032350 — 
3.180 2032100 100 
5.800 2035175 175 
3.520 2037335 335 
4.010 2038215 215 
6.170 204050 50 
4.970 204050 50 
4.310 2042263 263 
3.950 2043425 425 
4.100 2045250 250 
3.250 2046450 450 
3.950 2047350 350 
4.050 2048550 550 
4.350 2049550 550 
3.750 2050300 300 
3.100 2050550 550 
3.500 2051575 575 
2.650 2052300 300 
4.200 2052450 — 
3.860 205250 50 
4.280 2057185 185 
2.500 2060525 525 
4.350 2064250 250 
variable
1
206976 76 
variable
1
2070134 134 
variable
1
2070127 127 
$8,997 $8,197 
Tax-exempt revenue bonds0.875 
2
203535 35 
1.800 
3
204975 75 
$110 $110 
Securitization bonds3.343 
4
2025-2029
5
170 198 
Term loan facilityvariable
6
20241,000 — 
Total principal amount outstanding$10,277 $8,505 
Current amounts(991)(365)
Unamortized discounts(27)(28)
Unamortized issuance costs(67)(62)
Total long-term debt$9,192 $8,050 
1The variable-rate bonds bear interest quarterly at a rate of three-month LIBOR minus 0.300 percent, subject to a zero-percent floor. At December 31, 2022, the interest rates were 4.469 percent for bonds due
September 2069, 4.375 percent for bonds due May 2070, and 3.484 percent for bonds due October 2070. The interest rate for all variable-rate bonds at December 31, 2021 was zero percent. The holders of these variable-rate bonds may put them to Consumers for redemption on certain dates prior to their stated maturity, including dates within one year of December 31, 2022.
2The interest rate on these tax-exempt revenue bonds will reset on October 8, 2026.
3The interest rate on these tax‑exempt revenue bonds will reset on October 1, 2024.
4The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2014 Securitization Funding, was 3.343 percent at December 31, 2022 and 3.290 percent at December 31, 2021.
5Principal and interest payments are made semiannually.
6Loans under this facility have an interest rate of one-month Term SOFR plus 0.650 percent. At December 31, 2022, the weighted-average interest rate for the loans issued under this facility was 4.975 percent at December 31, 2022.
Financings: Presented in the following table is a summary of major long-term debt issuances during 2022:
Principal
(In Millions)
Interest RateIssuance DateMaturity Date
NorthStar Clean Energy, including subsidiaries
Term loan facility1
$100 variableDecember 2022September 2023
Total NorthStar Clean Energy, including subsidiaries$100 
Consumers
Term loan facility2
$1,000 variableJuly 2022January 2024
First mortgage bonds350 3.600 %August 2022August 2032
First mortgage bonds 450 4.200 %August 2022September 2052
Total Consumers$1,800 
Total CMS Energy$1,900 
1    In December 2022, a subsidiary of NorthStar Clean Energy entered into a $185 million unsecured term loan credit agreement. Under this credit agreement, $100 million of loans have been issued as of December 31, 2022. In January 2023, an additional $30 million was borrowed under the unsecured term loan credit agreement.
2    In July 2022, Consumers entered into a delayed-draw $1.0 billion unsecured term loan credit agreement. Under this credit agreement, Consumers issued loans of $550 million in September 2022 and $450 million in November 2022. In January 2023, Consumers repaid $500 million of the term loan credit agreement.
In January 2023, Consumers entered into a bond purchase agreement to issue an aggregate principal amount of $400 million of first mortgage bonds through a private placement offering. The bonds, which were priced in November 2022, carry a weighted average interest rate of 5.251 percent and mature at varying dates between 2026 and 2037. The bonds are expected to be issued in May 2023. The proceeds of the bonds will be used to finance a portion of the purchase price of the New Covert Generating Facility and for general corporate purposes.
Also in January 2023, Consumers issued $425 million of first mortgage bonds that mature in March 2028 and bear interest at a rate of 4.650 percent. The proceeds of the bonds have been used to repay a portion of the $1.0 billion aggregate principal amount outstanding under Consumers’ term loan credit agreement and for general corporate purposes.
Presented in the following table is a summary of major long-term debt retirements during 2022:
Principal
(In Millions)
Interest RateRetirement DateMaturity Date
NorthStar Clean Energy, including subsidiaries
Term loan facility$76 variableJune 2022October 2025
In June 2022, NorthStar Clean Energy 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 NorthStar Clean Energy. For more information, see Note 18, Variable Interest Entities.
First Mortgage Bonds: Consumers secures its first mortgage bonds by a mortgage and lien on substantially all of its property. Consumers’ ability to issue first mortgage bonds is restricted by certain provisions in the First Mortgage Bond Indenture and the need for regulatory approvals under federal law. Restrictive issuance provisions in the First Mortgage Bond Indenture include achieving a two-times interest coverage ratio and having sufficient unfunded net property additions.Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Its current authorization expires on March 31, 2024. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. In December 2022, Consumers filed an application for authority to issue securities between April 1, 2023 and March 31 2025. Securitization Bonds: Certain regulatory assets held by Consumers’ subsidiary, Consumers 2014 Securitization Funding, collateralize Consumers’ securitization bonds. The bondholders have no recourse to Consumers’ assets except for those held by the subsidiary that issued the bonds. Consumers collects securitization surcharges to cover the principal and interest on the bonds as well as certain other qualified costs. The surcharges collected are remitted to a trustee and are not available to creditors of Consumers or creditors of Consumers’ affiliates other than the subsidiary that issued the bonds.
Debt Maturities: At December 31, 2022, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20232024202520262027
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$— $250 $250 $300 $625 
Consumers
991 1,332 31 32 168 
NorthStar Clean Energy, including subsidiaries100 — — — — 
Total CMS Energy1
$1,091 $1,582 $281 $332 $793 
Consumers
Long-term debt$991 $1,332 $31 $32 $168 
1    This amount excludes debt issuance costs, related to the term loan agreement of a subsidiary of NorthStar Clean Energy, of less than $1 million
Credit Facilities: The following credit facilities with banks were available at December 31, 2022:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
December 14, 20271
$550 $— $18 $532 
September 22, 2024
50 — 50 — 
NorthStar Clean Energy, including subsidiaries
September 25, 20252
$37 $— $37 $— 
Consumers3
December 14, 2027
$1,100 $— $29 $1,071 
November 18, 2024
250 — 27 223 
1There were no borrowings under this facility during the year ended December 31, 2022.
2This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 18, Variable Interest Entities.
3Obligations under these facilities are secured by first mortgage bonds of Consumers. There were no borrowings under these facilities during the year ended December 31, 2022.
Short-term Borrowings: Under Consumers’ commercial paper program, Consumers may issue, in one or more placements, investment-grade commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers’ revolving credit facilities and may have an aggregate principal amount outstanding of up to $500 million. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At December 31, 2022, there were $20 million of commercial paper notes outstanding under this program at an annual interest rate of 4.710 percent, recorded as current notes payable on the consolidated balance sheets of CMS Energy and Consumers.
In December 2022, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million. At December 31, 2022, outstanding borrowings under the agreement were $75 million bearing the maximum interest rate authorized by FERC for this short-term credit agreement of 3.500 percent.
Dividend Restrictions: At December 31, 2022, payment of dividends by CMS Energy on its common stock was limited to $6.8 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at December 31, 2022, Consumers had $1.9 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process.
During the year ended December 31, 2022, Consumers paid $769 million in dividends on its common stock to CMS Energy.
Capitalization: The authorized capital stock of CMS Energy consists of:
350 million shares of CMS Energy Common Stock, par value $0.01 per share
10 million shares of CMS Energy Preferred Stock, par value $0.01 per share
Issuance of Common Stock: 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. In 2022, CMS Energy settled forward contracts under this program by issuing 962,354 shares of common stock at a weighted-average price of $57.36 per share, resulting in net proceeds of $55 million.
Presented in the following table are details of CMS Energy’s forward sales contracts under this program at December 31, 2022:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialDecember 31, 2022
August 3, 2022February 1, 20242,944,20767.59 67.83 
August 24, 2022February 26, 20241,677,93869.46 69.69 
August 29, 2022February 26, 20241,783,38868.18 68.38 
These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock.
The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur.
If CMS Energy had elected to net share settle or net cash settle the contracts as of December 31, 2022, CMS Energy would not have been required to deliver shares or pay cash.
Preferred Stock: CMS Energy’s Series C preferred stock is traded on the New York Stock Exchange under the symbol CMS PRC. Depositary shares represent a 1/1000th interest in a share of its Series C preferred stock. The Series C preferred stock has no maturity or mandatory redemption date and is not redeemable at the option of the holders. CMS Energy may, at its option, redeem the Series C preferred stock, in whole or in part, at any time on or after July 15, 2026. The Series C preferred stock ranks senior to CMS Energy’s common stock with respect to dividend rights and distribution rights upon liquidation. Presented in the following table are details of CMS Energy’s Series C preferred stock at December 31, 2022 and 2021:
Depositary Share Par Value Depositary Share Optional Redemption PriceNumber of Depositary Shares AuthorizedNumber of Depositary Shares Outstanding
Cumulative, redeemable perpetual$25 $25 9,200,000 9,200,000 
Preferred Stock of Subsidiary: Consumers’ preferred stock is traded on the New York Stock Exchange under the symbol CMS-PB. Presented in the following table are details of Consumers’ preferred stock at December 31, 2022 and 2021:
Par ValueOptional Redemption PriceNumber of Shares AuthorizedNumber of Shares Outstanding
Cumulative, with no mandatory redemption
$100 $110 7,500,000 373,148 
v3.22.4
Fair Value Measurements
12 Months Ended
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Measurements Fair Value Measurements
Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows:
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 inputs are observable, market-based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data.
Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities.
CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
December 312022202120222021
Assets1
Restricted cash equivalents$18 $24 $17 $22 
Nonqualified deferred compensation plan assets24 27 18 21 
Derivative instruments
Total assets$44 $53 $37 $45 
Liabilities1
Nonqualified deferred compensation plan liabilities$24 $27 $18 $21 
Derivative instruments— — — 
Total liabilities$24 $34 $18 $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 1, Significant Accounting Policies.
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 NorthStar Clean Energy 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, NorthStar Clean Energy 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. NorthStar Clean Energy 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.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Presented in the following table are Consumers’ assets, by level within the fair value hierarchy, reported at fair value on a nonrecurring basis during the year ended December 31, 2021:
In Millions
Level 1Level 2Level 3Gains (Losses)
Assets held for sale$— $15 $— $(4)
In 2021, Consumers wrote down fleet assets held for sale from their carrying amount of $19 million to their fair value, less selling costs, of $15 million, resulting in an impairment charge of $4 million, which was recorded within maintenance and other operating expenses on its consolidated statements of income for the year ended December 31, 2021. The fair value was determined based on the market prices of similar fleet vehicles at the time of measurement. These vehicles were subsequently sold at an amount exceeding their recorded fair value in 2022. For additional information, see Item 8. Financial Statements and Supplementary Data—Notes to the Consolidated Financial Statements—Note 2, Regulatory Matters.
Consumers Energy Company  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Measurements Fair Value Measurements
Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows:
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 inputs are observable, market-based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data.
Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities.
CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
December 312022202120222021
Assets1
Restricted cash equivalents$18 $24 $17 $22 
Nonqualified deferred compensation plan assets24 27 18 21 
Derivative instruments
Total assets$44 $53 $37 $45 
Liabilities1
Nonqualified deferred compensation plan liabilities$24 $27 $18 $21 
Derivative instruments— — — 
Total liabilities$24 $34 $18 $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 1, Significant Accounting Policies.
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 NorthStar Clean Energy 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, NorthStar Clean Energy 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. NorthStar Clean Energy 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.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Presented in the following table are Consumers’ assets, by level within the fair value hierarchy, reported at fair value on a nonrecurring basis during the year ended December 31, 2021:
In Millions
Level 1Level 2Level 3Gains (Losses)
Assets held for sale$— $15 $— $(4)
In 2021, Consumers wrote down fleet assets held for sale from their carrying amount of $19 million to their fair value, less selling costs, of $15 million, resulting in an impairment charge of $4 million, which was recorded within maintenance and other operating expenses on its consolidated statements of income for the year ended December 31, 2021. The fair value was determined based on the market prices of similar fleet vehicles at the time of measurement. These vehicles were subsequently sold at an amount exceeding their recorded fair value in 2022. For additional information, see Item 8. Financial Statements and Supplementary Data—Notes to the Consolidated Financial Statements—Note 2, Regulatory Matters.
v3.22.4
Financial Instruments
12 Months Ended
Dec. 31, 2022
Financial Instruments [Line Items]  
Financial Instruments Financial Instruments
Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
December 31, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $14 $14 $— $— $14 
Liabilities
Long-term debt2
14,212 12,384 987 8,741 2,656 12,419 13,800 1,189 10,656 1,955 
Long-term payables3
— — 31 32 — — 32 
Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $14 $14 $— $— $14 
Notes receivable – related party4
101 101 — — 101 104 104 — — 104 
Liabilities
Long-term debt5
10,183 8,728 — 6,172 2,556 8,415 9,410 — 7,455 1,955 
1Includes current portion of long-term accounts receivable and notes receivable of $7 million at December 31, 2022 and $9 million at December 31, 2021.
2Includes current portion of long-term debt of $1,090 million at December 31, 2022 and $373 million at December 31, 2021.
3Includes current portion of long-term payables of $2 million at December 31, 2022 and $23 million at December 31, 2021.
4Includes current portion of notes receivable – related party of $7 million at December 31, 2022 and 2021.
5Includes current portion of long-term debt of $991 million at December 31, 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 5, Fair Value Measurements.
In Millions
December 31, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $14 $14 $— $— $14 
Liabilities
Long-term debt2
14,212 12,384 987 8,741 2,656 12,419 13,800 1,189 10,656 1,955 
Long-term payables3
— — 31 32 — — 32 
Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $14 $14 $— $— $14 
Notes receivable – related party4
101 101 — — 101 104 104 — — 104 
Liabilities
Long-term debt5
10,183 8,728 — 6,172 2,556 8,415 9,410 — 7,455 1,955 
1Includes current portion of long-term accounts receivable and notes receivable of $7 million at December 31, 2022 and $9 million at December 31, 2021.
2Includes current portion of long-term debt of $1,090 million at December 31, 2022 and $373 million at December 31, 2021.
3Includes current portion of long-term payables of $2 million at December 31, 2022 and $23 million at December 31, 2021.
4Includes current portion of notes receivable – related party of $7 million at December 31, 2022 and 2021.
5Includes current portion of long-term debt of $991 million at December 31, 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.
v3.22.4
Plant, Property, and Equipment
12 Months Ended
Dec. 31, 2022
Public Utility, Property, Plant and Equipment [Line Items]  
Plant, Property, and Equipment Plant, Property, and Equipment
Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment:
In Millions
December 31Estimated
Depreciable
Life in Years
20222021
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 - 125
$29,342 $28,771 
NorthStar Clean Energy
Independent power production1
3 - 40
1,124 1,121 
Assets under finance leases2
24 — 
Other
3 - 5
Plant, property, and equipment, gross$30,491 $29,893 
Construction work in progress1,182 961 
Accumulated depreciation and amortization(8,960)(8,502)
Total plant, property, and equipment3
$22,713 $22,352 
Consumers
Plant, property, and equipment, gross
Electric
Generation
15 - 125
$5,780 $6,704 
Distribution
15 - 75
10,590 9,815 
Other
5 - 55
1,374 1,309 
Assets under finance leases2
126 319 
Gas
Distribution
20 - 85
6,951 6,338 
Transmission
17 - 75
2,440 2,319 
Underground storage facilities4
27 - 75
1,197 1,117 
Other
5 - 55
835 814 
Assets under finance leases2
20 13 
Other non-utility property
3 - 51
29 23 
Plant, property, and equipment, gross$29,342 $28,771 
Construction work in progress994 915 
Accumulated depreciation and amortization(8,791)(8,371)
Total plant, property, and equipment2
$21,545 $21,315 
1A portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 8, Leases.
2For information regarding the amortization terms of CMS Energy’s and Consumers’ assets under finance leases, see Note 8, Leases.
3Consumers’ plant additions were $2.3 billion for the year ended December 31, 2022 and $2.4 billion for the year ended December 31, 2021. Consumers’ plant retirements, which include the impact of disallowances and transfers to held for sale, were $290 million for the year ended December 31, 2022 and $361 million
for the year ended December 31, 2021. Consumers plans to retire the J.H. Campbell 1, 2, & 3 coal-fueled electric generating units in 2025. Accordingly, in 2022, Consumers removed from total plant, property, and equipment $1.3 billion, representing the remaining book value of the three units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 2, Regulatory Matters.
4Underground storage includes base natural gas of $26 million at December 31, 2022 and 2021. Base natural gas is not subject to depreciation.
Intangible Assets: Included in net plant, property, and equipment are intangible assets. Presented in the following table are details about Consumers’ intangible assets:
In Millions
DescriptionAmortization Life in YearsDecember 31, 2022December 31, 2021
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
Consumers
Software development
3 - 15
$846 $593 $840 $592 
Rights of way
50 - 85
218 61 211 60 
Franchises and consents
5 - 50
16 10 16 10 
Leasehold improvements
various2
Other intangiblesvarious25 16 26 16 
Total$1,114 $686 $1,102 $684 
1Consumers’ intangible asset additions were $116 million for the year ended December 31, 2022 and $88 million for the year ended December 31, 2021. Consumers’ intangible asset retirements were $104 million for the year ended December 31, 2022 and $91 million for the year ended December 31, 2021.
2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.
Capitalization: CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general ratemaking process.
With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability.
Software: CMS Energy and Consumers capitalize the costs to purchase and develop internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware.
AFUDC: Consumers capitalizes AFUDC on regulated major construction projects. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated
statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset. Presented in the following table are Consumers’ average AFUDC capitalization rates:
Years Ended December 31202220212020
Electric6.2 %6.2 %6.9 %
Gas5.6 5.6 5.7 
Assets Under Finance Leases: Presented in the following table are further details about changes in CMS Energy’s and Consumers’ assets under finance leases:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Balance at beginning of period$332 $336 
Additions44 — 
Net retirements and other adjustments(206)(4)
Balance at end of period$170 $332 
Consumers
Balance at beginning of period$332 $336 
Additions20 — 
Net retirements and other adjustments(206)(4)
Balance at end of period$146 $332 
Assets under finance leases are presented as gross amounts. CMS Energy and Consumers’ accumulated amortization of assets under finance leases was $88 million at December 31, 2022 and $272 million at December 31, 2021.
Depreciation and Amortization: Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Utility plant assets$8,785 $8,366 
Non-utility plant assets175 136 
Consumers
Utility plant assets$8,785 $8,366 
Non-utility plant assets
Consumers depreciates utility property on an asset-group basis, in which it applies a single MPSC-approved depreciation rate to the gross investment in a particular class of property within the electric and
gas segments. Consumers performs depreciation studies periodically to determine appropriate group lives. Presented in the following table are the composite depreciation rates for Consumers’ segment properties:
Years Ended December 31202220212020
Electric utility property3.7 %3.9 %3.9 %
Gas utility property2.9 2.9 2.9 
Other property8.9 9.4 9.8 
CMS Energy and Consumers record property repairs and minor property replacement as maintenance expense. CMS Energy and Consumers record planned major maintenance activities as operating expense unless the cost represents the acquisition of additional long-lived assets or the replacement of an existing long-lived asset.
Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$990 $975 $901 
Amortization expense
Software103 108 112 
Other intangible assets
Securitized regulatory assets28 27 26 
Total depreciation and amortization expense$1,126 $1,114 $1,043 
Consumers
Depreciation expense – plant, property, and equipment$952 $938 $881 
Amortization expense
Software103 108 112 
Other intangible assets
Securitized regulatory assets28 27 26 
Total depreciation and amortization expense$1,088 $1,077 $1,023 
Presented in the following table is Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20232024202520262027
Consumers
Intangible asset amortization expense$96 $82 $80 $76 $64 
Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2022:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3 %51.0 %various
Utility plant in service$1,767 $591 $412 
Accumulated depreciation(816)(210)(93)
Construction work in progress10 21 21 
Net investment$961 $402 $340 
Consumers includes its share of the direct expenses of the jointly owned plants in operating expenses. Consumers shares operation, maintenance, and other expenses of these jointly owned utility facilities in proportion to each participant’s undivided ownership interest. Consumers is required to provide only its share of financing for the jointly owned utility facilities.
Consumers Energy Company  
Public Utility, Property, Plant and Equipment [Line Items]  
Plant, Property, and Equipment Plant, Property, and Equipment
Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment:
In Millions
December 31Estimated
Depreciable
Life in Years
20222021
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 - 125
$29,342 $28,771 
NorthStar Clean Energy
Independent power production1
3 - 40
1,124 1,121 
Assets under finance leases2
24 — 
Other
3 - 5
Plant, property, and equipment, gross$30,491 $29,893 
Construction work in progress1,182 961 
Accumulated depreciation and amortization(8,960)(8,502)
Total plant, property, and equipment3
$22,713 $22,352 
Consumers
Plant, property, and equipment, gross
Electric
Generation
15 - 125
$5,780 $6,704 
Distribution
15 - 75
10,590 9,815 
Other
5 - 55
1,374 1,309 
Assets under finance leases2
126 319 
Gas
Distribution
20 - 85
6,951 6,338 
Transmission
17 - 75
2,440 2,319 
Underground storage facilities4
27 - 75
1,197 1,117 
Other
5 - 55
835 814 
Assets under finance leases2
20 13 
Other non-utility property
3 - 51
29 23 
Plant, property, and equipment, gross$29,342 $28,771 
Construction work in progress994 915 
Accumulated depreciation and amortization(8,791)(8,371)
Total plant, property, and equipment2
$21,545 $21,315 
1A portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 8, Leases.
2For information regarding the amortization terms of CMS Energy’s and Consumers’ assets under finance leases, see Note 8, Leases.
3Consumers’ plant additions were $2.3 billion for the year ended December 31, 2022 and $2.4 billion for the year ended December 31, 2021. Consumers’ plant retirements, which include the impact of disallowances and transfers to held for sale, were $290 million for the year ended December 31, 2022 and $361 million
for the year ended December 31, 2021. Consumers plans to retire the J.H. Campbell 1, 2, & 3 coal-fueled electric generating units in 2025. Accordingly, in 2022, Consumers removed from total plant, property, and equipment $1.3 billion, representing the remaining book value of the three units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 2, Regulatory Matters.
4Underground storage includes base natural gas of $26 million at December 31, 2022 and 2021. Base natural gas is not subject to depreciation.
Intangible Assets: Included in net plant, property, and equipment are intangible assets. Presented in the following table are details about Consumers’ intangible assets:
In Millions
DescriptionAmortization Life in YearsDecember 31, 2022December 31, 2021
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
Consumers
Software development
3 - 15
$846 $593 $840 $592 
Rights of way
50 - 85
218 61 211 60 
Franchises and consents
5 - 50
16 10 16 10 
Leasehold improvements
various2
Other intangiblesvarious25 16 26 16 
Total$1,114 $686 $1,102 $684 
1Consumers’ intangible asset additions were $116 million for the year ended December 31, 2022 and $88 million for the year ended December 31, 2021. Consumers’ intangible asset retirements were $104 million for the year ended December 31, 2022 and $91 million for the year ended December 31, 2021.
2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.
Capitalization: CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general ratemaking process.
With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability.
Software: CMS Energy and Consumers capitalize the costs to purchase and develop internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware.
AFUDC: Consumers capitalizes AFUDC on regulated major construction projects. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated
statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset. Presented in the following table are Consumers’ average AFUDC capitalization rates:
Years Ended December 31202220212020
Electric6.2 %6.2 %6.9 %
Gas5.6 5.6 5.7 
Assets Under Finance Leases: Presented in the following table are further details about changes in CMS Energy’s and Consumers’ assets under finance leases:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Balance at beginning of period$332 $336 
Additions44 — 
Net retirements and other adjustments(206)(4)
Balance at end of period$170 $332 
Consumers
Balance at beginning of period$332 $336 
Additions20 — 
Net retirements and other adjustments(206)(4)
Balance at end of period$146 $332 
Assets under finance leases are presented as gross amounts. CMS Energy and Consumers’ accumulated amortization of assets under finance leases was $88 million at December 31, 2022 and $272 million at December 31, 2021.
Depreciation and Amortization: Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Utility plant assets$8,785 $8,366 
Non-utility plant assets175 136 
Consumers
Utility plant assets$8,785 $8,366 
Non-utility plant assets
Consumers depreciates utility property on an asset-group basis, in which it applies a single MPSC-approved depreciation rate to the gross investment in a particular class of property within the electric and
gas segments. Consumers performs depreciation studies periodically to determine appropriate group lives. Presented in the following table are the composite depreciation rates for Consumers’ segment properties:
Years Ended December 31202220212020
Electric utility property3.7 %3.9 %3.9 %
Gas utility property2.9 2.9 2.9 
Other property8.9 9.4 9.8 
CMS Energy and Consumers record property repairs and minor property replacement as maintenance expense. CMS Energy and Consumers record planned major maintenance activities as operating expense unless the cost represents the acquisition of additional long-lived assets or the replacement of an existing long-lived asset.
Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$990 $975 $901 
Amortization expense
Software103 108 112 
Other intangible assets
Securitized regulatory assets28 27 26 
Total depreciation and amortization expense$1,126 $1,114 $1,043 
Consumers
Depreciation expense – plant, property, and equipment$952 $938 $881 
Amortization expense
Software103 108 112 
Other intangible assets
Securitized regulatory assets28 27 26 
Total depreciation and amortization expense$1,088 $1,077 $1,023 
Presented in the following table is Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20232024202520262027
Consumers
Intangible asset amortization expense$96 $82 $80 $76 $64 
Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2022:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3 %51.0 %various
Utility plant in service$1,767 $591 $412 
Accumulated depreciation(816)(210)(93)
Construction work in progress10 21 21 
Net investment$961 $402 $340 
Consumers includes its share of the direct expenses of the jointly owned plants in operating expenses. Consumers shares operation, maintenance, and other expenses of these jointly owned utility facilities in proportion to each participant’s undivided ownership interest. Consumers is required to provide only its share of financing for the jointly owned utility facilities.
v3.22.4
Leases
12 Months Ended
Dec. 31, 2022
Leases [Line Items]  
Leases Leases
Lessee
CMS Energy and Consumers lease various assets from third parties, including coal-carrying railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for several of their PPAs as leases.
CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their consolidated balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and service vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term.
CMS Energy and Consumers include future payments for all renewal options, fair market value extensions, and buyout provisions reasonably certain of exercise in their measurement of lease right-of-use assets and lease liabilities. In addition, certain leases for service vehicles contain end-of-lease adjustment clauses based on proceeds received from the sale or disposition of the vehicles. CMS Energy and Consumers also include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their coal-carrying railcar leases.
Most of Consumers’ PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a finance lease.
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
CMS Energy, including ConsumersConsumers
December 312022202120222021
Operating leases
Right-of-use assets1
$31$26$27$22
Lease liabilities
Current lease liabilities2
4343
Non-current lease liabilities3
27252319
Finance leases
Right-of-use assets82575857
Lease liabilities4
Current lease liabilities9696
Non-current lease liabilities68464546
Weighted-average remaining lease term (in years)
Operating leases20231821
Finance leases18121012
Weighted-average discount rate
Operating leases4.0 %4.0 %3.9 %3.9 %
Finance leases5
5.2 1.7 1.6 1.7 
1CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other noncurrent assets on their consolidated balance sheets.
2The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.
3The noncurrent portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other noncurrent liabilities on their consolidated balance sheets.
4Includes related-party lease liabilities of $25 million, of which less than $1 million was current, at December 31, 2022 and 2021.
5This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.
CMS Energy and Consumers report operating, variable, and short-term lease costs as operating expenses on their consolidated statements of income, except for certain amounts that may be capitalized to other assets. Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets12 
Interest on lease liabilities14 16 
Variable lease costs93 90 
Short-term lease costs23 22 
Total lease costs$148 $143 
Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets12 
Interest on lease liabilities14 16 
Variable lease costs93 90 
Short-term lease costs22 21 
Total lease costs$147 $142 
Presented in the following table is supplemental cash flow information related to CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases14 16 
Cash used in financing activities for finance leases13 
Lease liabilities arising from obtaining right-of-use assets
Operating leases10 
Finance leases36 — 
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases14 16 
Cash used in financing activities for finance leases12 
Lease liabilities arising from obtaining right-of-use assets
Operating leases10 
Finance leases12 — 
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non-cancelable leases:
In Millions
Finance Leases
December 31, 2022Operating LeasesPipelines and PPAsOtherTotal
CMS Energy, including Consumers
2023$$15 $$23 
202413 19 
202513 16 
202613 17 
202713 15 
2028 and thereafter31 39 67 106 
Total minimum lease payments$48 $106 $90 $196 
Less discount17 75 44 119 
Present value of minimum lease payments$31 $31 $46 $77 
Consumers
2023$$15 $$22 
202413 18 
202513 15 
202613 15 
202713 14 
2028 and thereafter26 39 47 
Total minimum lease payments$41 $106 $25 $131 
Less discount14 75 77 
Present value of minimum lease payments$27 $31 $23 $54 
Lessor
CMS Energy and Consumers are the lessor under power sales and natural gas delivery agreements that are accounted for as leases.
CMS Energy has power sales agreements that are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. For the year ended December 31, 2022, lease revenue from these power sales agreements was $240 million, which included variable lease payments of $191 million. For the year ended December 31, 2021, lease revenue from these power sales agreements was $194 million, which included variable lease payments of $138 million.
Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases:
In Millions
December 31, 2022
2023$43 
202443 
202544 
202618 
Total minimum lease payments$148 
Consumers has a natural gas transportation agreement with a subsidiary of CMS Energy that extends through 2038, related to a pipeline owned by Consumers. This agreement is accounted for as a direct finance lease and will automatically extend annually unless terminated by either party. The effects of the lease are eliminated on CMS Energy’s consolidated financial statements.
Minimum rental payments to be received under Consumers’ direct financing leases are less than $1 million for each of the next five years and $8 million for the years thereafter. The lease receivable was $6 million as of December 31, 2022, which does not include unearned income of $7 million.
Consumers Energy Company  
Leases [Line Items]  
Leases Leases
Lessee
CMS Energy and Consumers lease various assets from third parties, including coal-carrying railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for several of their PPAs as leases.
CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their consolidated balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and service vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term.
CMS Energy and Consumers include future payments for all renewal options, fair market value extensions, and buyout provisions reasonably certain of exercise in their measurement of lease right-of-use assets and lease liabilities. In addition, certain leases for service vehicles contain end-of-lease adjustment clauses based on proceeds received from the sale or disposition of the vehicles. CMS Energy and Consumers also include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their coal-carrying railcar leases.
Most of Consumers’ PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a finance lease.
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
CMS Energy, including ConsumersConsumers
December 312022202120222021
Operating leases
Right-of-use assets1
$31$26$27$22
Lease liabilities
Current lease liabilities2
4343
Non-current lease liabilities3
27252319
Finance leases
Right-of-use assets82575857
Lease liabilities4
Current lease liabilities9696
Non-current lease liabilities68464546
Weighted-average remaining lease term (in years)
Operating leases20231821
Finance leases18121012
Weighted-average discount rate
Operating leases4.0 %4.0 %3.9 %3.9 %
Finance leases5
5.2 1.7 1.6 1.7 
1CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other noncurrent assets on their consolidated balance sheets.
2The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.
3The noncurrent portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other noncurrent liabilities on their consolidated balance sheets.
4Includes related-party lease liabilities of $25 million, of which less than $1 million was current, at December 31, 2022 and 2021.
5This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.
CMS Energy and Consumers report operating, variable, and short-term lease costs as operating expenses on their consolidated statements of income, except for certain amounts that may be capitalized to other assets. Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets12 
Interest on lease liabilities14 16 
Variable lease costs93 90 
Short-term lease costs23 22 
Total lease costs$148 $143 
Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets12 
Interest on lease liabilities14 16 
Variable lease costs93 90 
Short-term lease costs22 21 
Total lease costs$147 $142 
Presented in the following table is supplemental cash flow information related to CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases14 16 
Cash used in financing activities for finance leases13 
Lease liabilities arising from obtaining right-of-use assets
Operating leases10 
Finance leases36 — 
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases14 16 
Cash used in financing activities for finance leases12 
Lease liabilities arising from obtaining right-of-use assets
Operating leases10 
Finance leases12 — 
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non-cancelable leases:
In Millions
Finance Leases
December 31, 2022Operating LeasesPipelines and PPAsOtherTotal
CMS Energy, including Consumers
2023$$15 $$23 
202413 19 
202513 16 
202613 17 
202713 15 
2028 and thereafter31 39 67 106 
Total minimum lease payments$48 $106 $90 $196 
Less discount17 75 44 119 
Present value of minimum lease payments$31 $31 $46 $77 
Consumers
2023$$15 $$22 
202413 18 
202513 15 
202613 15 
202713 14 
2028 and thereafter26 39 47 
Total minimum lease payments$41 $106 $25 $131 
Less discount14 75 77 
Present value of minimum lease payments$27 $31 $23 $54 
Lessor
CMS Energy and Consumers are the lessor under power sales and natural gas delivery agreements that are accounted for as leases.
CMS Energy has power sales agreements that are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. For the year ended December 31, 2022, lease revenue from these power sales agreements was $240 million, which included variable lease payments of $191 million. For the year ended December 31, 2021, lease revenue from these power sales agreements was $194 million, which included variable lease payments of $138 million.
Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases:
In Millions
December 31, 2022
2023$43 
202443 
202544 
202618 
Total minimum lease payments$148 
Consumers has a natural gas transportation agreement with a subsidiary of CMS Energy that extends through 2038, related to a pipeline owned by Consumers. This agreement is accounted for as a direct finance lease and will automatically extend annually unless terminated by either party. The effects of the lease are eliminated on CMS Energy’s consolidated financial statements.
Minimum rental payments to be received under Consumers’ direct financing leases are less than $1 million for each of the next five years and $8 million for the years thereafter. The lease receivable was $6 million as of December 31, 2022, which does not include unearned income of $7 million.
v3.22.4
Asset Retirement Obligations
12 Months Ended
Dec. 31, 2022
Asset Retirement Obligations [Line Items]  
Asset Retirement Obligations Asset Retirement Obligations
CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities associated with the closure of certain gas wells that have an indeterminate life. CMS Energy and Consumers have not recorded liabilities for assets that have immaterial cumulative disposal costs, such as substation batteries.
CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers.
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
ARO DescriptionIn-Service DateLong-Lived Assets
Closure of coal ash disposal areasvariousGenerating plants coal ash areas
Gas distribution cut, purge, and capvariousGas distribution mains and services
Asbestos abatement1973Electric and gas utility plant
Closure of renewable generation assetsvariousWind and solar generation facilities
Gas wells plug and abandonvariousGas transmission and storage
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2021IncurredSettledAccretion
Cash Flow Revisions1
ARO Liability 12/31/2022
CMS Energy, including Consumers
Consumers$605 $$(39)$27 $128 $722 
Renewable generation assets23 — — — 24 
Total CMS Energy$628 $$(39)$28 $128 $746 
Consumers
Coal ash disposal areas$157 $— $(20)$$128 $272 
Gas distribution cut, purge, and cap282 (11)15 — 287 
Asbestos abatement38 — (1)— 39 
Renewable generation assets93 — — — 95 
Gas wells plug and abandon35 — (7)— 29 
Total Consumers$605 $$(39)$27 $128 $722 
1Increase was attributable to a proposed change for closure work at the J.H. Campbell 3 ash disposal landfill and an updated cost estimate for other coal ash disposal areas.
In Millions
Company and ARO DescriptionARO Liability 12/31/2020IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2021
CMS Energy, including Consumers
Consumers$530 $71 $(53)$24 $33 $605 
Renewable generation assets23 — — — — 23 
Total CMS Energy$553 $71 $(53)$24 $33 $628 
Consumers
Coal ash disposal areas$148 $— $(34)$$38 $157 
Gas distribution cut, purge, and cap240 39 (10)13 — 282 
Asbestos abatement36 — — — 38 
Renewable generation assets74 16 — — 93 
Gas wells plug and abandon32 16 (9)(5)35 
Total Consumers$530 $71 $(53)$24 $33 $605 
Consumers Energy Company  
Asset Retirement Obligations [Line Items]  
Asset Retirement Obligations Asset Retirement Obligations
CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities associated with the closure of certain gas wells that have an indeterminate life. CMS Energy and Consumers have not recorded liabilities for assets that have immaterial cumulative disposal costs, such as substation batteries.
CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers.
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
ARO DescriptionIn-Service DateLong-Lived Assets
Closure of coal ash disposal areasvariousGenerating plants coal ash areas
Gas distribution cut, purge, and capvariousGas distribution mains and services
Asbestos abatement1973Electric and gas utility plant
Closure of renewable generation assetsvariousWind and solar generation facilities
Gas wells plug and abandonvariousGas transmission and storage
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2021IncurredSettledAccretion
Cash Flow Revisions1
ARO Liability 12/31/2022
CMS Energy, including Consumers
Consumers$605 $$(39)$27 $128 $722 
Renewable generation assets23 — — — 24 
Total CMS Energy$628 $$(39)$28 $128 $746 
Consumers
Coal ash disposal areas$157 $— $(20)$$128 $272 
Gas distribution cut, purge, and cap282 (11)15 — 287 
Asbestos abatement38 — (1)— 39 
Renewable generation assets93 — — — 95 
Gas wells plug and abandon35 — (7)— 29 
Total Consumers$605 $$(39)$27 $128 $722 
1Increase was attributable to a proposed change for closure work at the J.H. Campbell 3 ash disposal landfill and an updated cost estimate for other coal ash disposal areas.
In Millions
Company and ARO DescriptionARO Liability 12/31/2020IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2021
CMS Energy, including Consumers
Consumers$530 $71 $(53)$24 $33 $605 
Renewable generation assets23 — — — — 23 
Total CMS Energy$553 $71 $(53)$24 $33 $628 
Consumers
Coal ash disposal areas$148 $— $(34)$$38 $157 
Gas distribution cut, purge, and cap240 39 (10)13 — 282 
Asbestos abatement36 — — — 38 
Renewable generation assets74 16 — — 93 
Gas wells plug and abandon32 16 (9)(5)35 
Total Consumers$530 $71 $(53)$24 $33 $605 
v3.22.4
Retirement Benefits
12 Months Ended
Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement Benefits
Benefit Plans: CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. These plans include:
non‑contributory, qualified DB Pension Plans (closed to new non‑union participants as of July 1, 2003 and closed to new union participants as of September 1, 2005)
a non‑contributory, qualified DCCP for employees hired on or after July 1, 2003
benefits to certain management employees under a non‑contributory, nonqualified DB SERP (closed to new participants as of March 31, 2006)
a non‑contributory, nonqualified DC SERP for certain management employees hired or promoted on or after April 1, 2006
a contributory, qualified defined contribution 401(k) plan
health care and life insurance benefits under an OPEB Plan
DB Pension Plans: Participants in the pension plans include present and former employees of CMS Energy and Consumers, including certain present and former affiliates and subsidiaries. Pension plan trust assets are not distinguishable by company. Effective December 31, 2017, CMS Energy’s and Consumers’ then-existing pension plan was amended to include only retired and former employees already covered; this amended plan is referred to as DB Pension Plan B. Also effective December 31, 2017, active employees were moved to a newly created pension plan, referred to as DB Pension Plan A, whose benefits mirror those provided under DB Pension Plan B. Maintaining separate plans for the two groups allows CMS Energy and Consumers to employ a more targeted investment strategy and provides additional opportunities to mitigate risk and volatility.
In March 2022, CMS Energy and Consumers determined that 2022 lump-sum payments to retired employees under DB Pension Plan A would exceed the plan’s service cost and interest cost components of net periodic cost for the year. These lump-sum payments constitute pension plan liability settlements; once such settlements meet the service and interest cost threshold, recognition in earnings is required. As a result, in accordance with GAAP, CMS Energy, including Consumers, performed a remeasurement of DB Pension Plan A at the end of each quarter in 2022. For the year ended December 31, 2022, CMS Energy, including Consumers, recognized a settlement loss of $22 million; $21 million of this amount was deferred as a regulatory asset. Consumers recognized a settlement loss of $21 million, all of which was deferred as a regulatory asset. CMS Energy and Consumers will amortize the regulatory asset over eight years.
DCCP: CMS Energy and Consumers provide an employer contribution to the DCCP 401(k) plan for employees hired on or after July 1, 2003. The contribution ranges from five percent to ten percent of base pay, depending on years of service and employee class. Employees are not required to contribute in order to receive the plan’s employer contribution. DCCP expense for CMS Energy, including Consumers, was $48 million for the year ended December 31, 2022, $41 million for the year ended December 31, 2021, and $31 million for the year ended December 31, 2020. DCCP expense for Consumers was $48 million for the year ended December 31, 2022, $41 million for the year ended December 31, 2021, and $31 million for the year ended December 31, 2020.
DB SERP: The DB SERP is a nonqualified plan as defined by the Internal Revenue Code. DB SERP benefits are paid from a rabbi trust established in 1988. The trust assets are not considered plan assets under ASC 715. DB SERP rabbi trust earnings are taxable. Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Trust assets$137 $142 
ABO118 149 
Consumers
Trust assets$101 $104 
ABO85 108 
Neither CMS Energy nor Consumers made any contributions to the DB SERP in 2022 or 2021.
DC SERP: On April 1, 2006, CMS Energy and Consumers implemented a DC SERP and froze further new participation in the DB SERP. The DC SERP provides participants benefits ranging from five percent to 15 percent of total compensation. The DC SERP requires a minimum of five years of participation before vesting. CMS Energy’s and Consumers’ contributions to the plan, if any, are placed in a grantor trust. For CMS Energy and Consumers, trust assets were $12 million at December 31, 2022 and $13 million at December 31, 2021. DC SERP assets are included in other non‑current assets on CMS Energy’s and Consumers’ consolidated balance sheets. CMS Energy’s and Consumers’ DC SERP expense was $1 million for the year ended December 31, 2022, and $2 million for the years ended December 31, 2021 and 2020.
401(k) Plan: The 401(k) plan employer match equals four to six percent of employee eligible contributions based on an employee’s wages and class. The total 401(k) plan cost for CMS Energy, including Consumers, was $44 million for the year ended December 31, 2022, $31 million for the year ended December 31, 2021, and $29 million for the year ended December 31, 2020. The total 401(k) plan cost for Consumers was $43 million for the year ended December 31, 2022, $31 million for the year ended December 31, 2021, and $29 million for the year ended December 31, 2020.
OPEB Plan: Participants in the OPEB Plan include all regular full-time employees covered by the employee health care plan on the day before retirement from either CMS Energy or Consumers at age 55 or older with at least ten full years of applicable continuous service. Regular full-time employees who qualify for disability retirement under the DB Pension Plans or are disabled and covered by the DCCP and who have 15 years of applicable continuous service may also participate in the OPEB Plan. Retiree health care costs were based on the assumption that costs would increase 6.50 percent in 2023 and 6.25 percent in 2022 for those under 65 and would increase 6.75 percent in 2023 and 2022 for those over 65. The rate of increase was assumed to decline to 4.75 percent by 2032 and thereafter for all retirees.
Assumptions: Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefit plans to determine benefit obligations and net periodic benefit cost:
December 31202220212020
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A5.24 %3.02 %2.73 %
DB Pension Plan B5.14 2.79 2.41 
DB SERP5.13 2.78 2.40 
OPEB Plan5.21 2.99 2.69 
Rate of compensation increase
DB Pension Plan A3.60 3.60 3.70 
DB SERP5.50 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A3.09 %2.83 %3.44 %
DB SERP3.09 2.84 3.46 
OPEB Plan3.23 3.03 3.57 
Interest cost discount rate2,3
DB Pension Plan A2.44 1.97 2.92 
DB Pension Plan B2.21 1.70 2.74 
DB SERP2.21 1.72 2.74 
OPEB Plan2.45 1.99 2.88 
Expected long-term rate of return on plan assets4
DB Pension Plans6.50 6.75 6.75 
OPEB Plan6.50 6.75 6.75 
Rate of compensation increase
DB Pension Plan A3.60 3.70 3.50 
DB SERP5.50 5.50 5.50 
1The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2022 and 2021 and improvement scale MP-2020 for 2020. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scales MP-2021 for 2022, MP-2020 for 2021, and MP-2019 for 2020.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
4CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers
considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 6.50 percent in 2022. The actual return (loss) on the assets of the DB Pension Plans was (15.9) percent in 2022, 12.0 percent in 2021, and 13.6 percent in 2020.
Costs: Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans:
In Millions
DB Pension Plans and DB SERPOPEB Plan
Years Ended December 31202220212020202220212020
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$41 $53 $50 $17 $18 $16 
Interest cost84 63 83 28 23 33 
Settlement loss— — — 
Expected return on plan assets(206)(208)(191)(115)(109)(100)
Amortization of:
Net loss40 100 95 15 
Prior service cost (credit)(51)(53)(56)
Settlement loss— — — 
Net periodic cost (credit)$(27)$19 $41 $(120)$(113)$(92)
Consumers
Net periodic cost (credit)
Service cost$39 $51 $49 $17 $17 $15 
Interest cost79 59 78 27 23 31 
Expected return on plan assets(194)(197)(181)(107)(102)(93)
Amortization of:
Net loss37 96 90 — 15 
Prior service cost (credit)(50)(51)(54)
Settlement loss— — — 
Net periodic cost (credit)$(26)$19 $39 $(113)$(105)$(86)
CMS Energy and Consumers amortize net gains and losses in excess of ten percent of the greater of the PBO or the MRV over the average remaining service period for DB Pension Plan A and the OPEB Plan and over the average remaining life expectancy of participants for DB Pension Plan B. For DB Pension Plan A, the estimated period of amortization of gains and losses was eight years for the years ended December 31, 2022, 2021, and 2020. For DB Pension Plan B, the estimated period of amortization of gains and losses was 18 years for the years ended December 31, 2022 and 2021, and 19 years for the year ended December 31, 2020. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2022, 2021, and 2020.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for DB Pension Plan A in 2020. The estimated period of amortization of these new prior service costs is eight years.
CMS Energy and Consumers determine the MRV for the assets of the DB Pension Plans as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five-year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date.
Reconciliations: Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefit plans with their retirement benefit plans’ liabilities:
In Millions
DB Pension PlansDB SERPOPEB Plan
Years Ended December 31202220212022202120222021
CMS Energy, including Consumers
Benefit obligation at beginning of period$3,070 $3,266 $149 $160 $1,166 $1,205 
Service cost41 53 — — 17 18 
Interest cost81 60 28 23 
Plan amendments— — — — — 
Actuarial gain(811)
1
(108)
1
(25)(4)(274)
1
(32)
1
Benefits paid(212)(201)(10)(10)(48)(53)
Benefit obligation at end of period$2,169 $3,070 $117 $149 $889 $1,166 
Plan assets at fair value at beginning of period$3,599 $3,402 $— $— $1,787 $1,645 
Actual return on plan assets(567)398 — — (294)194 
Company contribution— — 10 10 — — 
Actual benefits paid(212)(201)(10)(10)(47)(52)
Plan assets at fair value at end of period$2,820 $3,599 $— $— $1,446 $1,787 
Funded status$651 
2
$529 
2
$(117)$(149)$557 $621 
Consumers
Benefit obligation at beginning of period$109 $117 $1,122 $1,158 
Service cost— — 17 17 
Interest cost27 23 
Plan amendments— — — 
Actuarial gain(19)(3)(265)
1
(30)
1
Benefits paid(7)(7)(45)(51)
Benefit obligation at end of period$85 $109 $856 $1,122 
Plan assets at fair value at beginning of period$— $— $1,668 $1,535 
Actual return on plan assets— — (273)182 
Company contribution— — 
Actual benefits paid(7)(7)(45)(49)
Plan assets at fair value at end of period$— $— $1,350 $1,668 
Funded status$(85)$(109)$494 $546 
1The actuarial gains for 2022 and 2021 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $632 million at December 31, 2022 and $510 million at December 31, 2021.
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120222021
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$651 $529 
OPEB Plan557 621 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP107 139 
Consumers
Non-current assets
DB Pension Plans$632 $510 
OPEB Plan494 546 
Current liabilities
DB SERP
Non-current liabilities
DB SERP78 102 
The ABO for the DB Pension Plans was $2.0 billion at December 31, 2022 and $2.7 billion at December 31, 2021. At December 31, 2022 and 2021, the PBO and ABO did not exceed plan assets for any of the defined benefit pension plans.
Items Not Yet Recognized as a Component of Net Periodic Benefit Cost: Presented in the following table are the amounts recognized in regulatory assets, regulatory liabilities, and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets and regulatory liabilities, see Note 2, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312022202120222021
CMS Energy, including Consumers
Regulatory assets (liabilities)
Net loss$724 $812 $251 $136 
Prior service cost (credit)21 25 (140)(190)
Regulatory assets (liabilities)$745 $837 $111 $(54)
AOCI
Net loss (gain)69 94 (17)
Prior service cost (credit)— (3)(5)
Total amounts recognized in regulatory assets (liabilities) and AOCI$815 $931 $110 $(76)
Consumers
Regulatory assets (liabilities)
Net loss$724 $812 $251 $136 
Prior service cost (credit)21 25 (140)(190)
Regulatory assets (liabilities)$745 $837 $111 $(54)
AOCI
Net loss20 41 — — 
Total amounts recognized in regulatory assets (liabilities) and AOCI$765 $878 $111 $(54)
Plan Assets: Presented in the following tables are the fair values of the assets of CMS Energy’s DB Pension Plans and OPEB Plan, by asset category and by level within the fair value hierarchy. For additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
DB Pension Plans
December 31, 2022December 31, 2021
TotalLevel 1TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$122 $122 $30 $30 $— 
U.S. government and agencies securities— — 209 — 209 
Corporate debt— — 595 — 595 
State and municipal bonds— — 13 — 13 
Foreign corporate bonds— — 66 — 66 
Mutual funds263 263 785 785 — 
$385 $385 $1,698 $815 $883 
Pooled funds2,435 1,901 
Total$2,820 $3,599 
In Millions
OPEB Plan
December 31, 2022December 31, 2021
TotalLevel 1TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$28 $28 $21 $21 $— 
U.S. government and agencies securities— — 25 — 25 
Corporate debt— — 73 — 73 
State and municipal bonds— — — 
Foreign corporate bonds— — — 
Common stocks69 69 85 85 — 
Mutual funds754 754 941 941 — 
$851 $851 $1,155 $1,047 $108 
Pooled funds595 632 
Total$1,446 $1,787 
Cash and Short-Term Investments: Cash and short-term investments consist of money market funds with daily liquidity.
U.S. Government and Agencies Securities: U.S. government and agencies securities consist of U.S. Treasury notes and other debt securities backed by the U.S. government and related agencies. These securities are valued based on quoted market prices.
Corporate Debt: Corporate debt investments consist of investment grade bonds of U.S. issuers from diverse industries. These securities are valued based on quoted market prices, when available, or yields available on comparable securities of issuers with similar credit ratings.
State and Municipal Bonds: State and municipal bonds are valued using a matrix-pricing model that incorporates Level 2 market-based information. The fair value of the bonds is derived from various observable inputs, including benchmark yields, reported securities trades, broker/dealer quotes, bond ratings, and general information on market movements for investment grade state and municipal securities normally considered by market participants when pricing such debt securities.
Foreign Corporate Bonds: Foreign corporate debt securities are valued based on quoted market prices, when available, or on yields available on comparable securities of issuers with similar credit ratings.
Common Stocks: Common stocks in the OPEB Plan consist of equity securities that are actively managed and tracked to the S&P 500 Index. These securities are valued at their quoted closing prices.
Mutual Funds: Mutual funds represent shares in registered investment companies that are priced based on the daily quoted net asset values that are publicly available and are the basis for transactions to buy or sell shares in the funds.
Pooled Funds: Pooled funds include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. These funds primarily consist of U.S. and foreign equity securities, but also include U.S. and foreign fixed-income securities and multi-asset investments. Since these investments are valued at their net asset value as a practical expedient, they are not classified in the fair value hierarchy.
Asset Allocations: Presented in the following table are the investment components of the assets of CMS Energy’s DB Pension Plans and OPEB Plan as of December 31, 2022:
DB Pension PlansOPEB Plan
Equity securities38.0 %55.0 %
Fixed-income securities47.0 38.0 
Real asset investments11.0 5.0 
Cash and cash equivalents4.0 2.0 
100.0 %100.0 %
CMS Energy’s target 2022 asset allocation for the assets of the DB Pension Plans was 50‑percent equity, 40‑percent fixed income, and ten‑percent real assets.
CMS Energy established union and non‑union VEBA trusts to fund future retiree health and life insurance benefits. These trusts are funded through the ratemaking process for Consumers and through direct contributions from the non‑utility subsidiaries. CMS Energy’s target 2022 asset allocation for the health trusts was 51‑percent equity, 39‑percent fixed income, and ten‑percent real assets. CMS Energy’s target asset allocation for the life trusts was 53‑percent equity, 32‑percent fixed income, and 15‑percent multi-asset investments.
The goal of these target allocations was to maximize the long-term return on plan assets, while maintaining a prudent level of risk. The level of acceptable risk is a function of the liabilities of the plans. Equity investments are diversified mostly across the S&P 500 Index, with lesser allocations to the S&P MidCap and SmallCap Indexes and Foreign Equity Funds. Fixed-income investments are diversified across investment grade instruments of government and corporate issuers, as well as high-yield and global bond funds. Real asset investments are diversified across real estate investment trusts, public infrastructure, and public resource equity. Multi-asset investments are global tactical asset allocations. CMS Energy uses annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocations.
Contributions: Contributions comprise required amounts and discretionary contributions. Neither CMS Energy nor Consumers made any contributions in 2022 or 2021, or plans to contribute to the DB Pension Plans or OPEB Plan in 2023. Actual future contributions will depend on future investment performance, discount rates, and various factors related to the participants of the DB Pension Plans and OPEB Plan. CMS Energy and Consumers will, at a minimum, contribute to the plans as needed to comply with federal funding requirements.
Benefit Payments: Presented in the following table are the expected benefit payments for each of the next five years and the fiveyear period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2023$160 $10 $55 
2024158 10 57 
2025161 10 58 
2026160 10 59 
2027159 10 60 
2028-2032790 45 312 
Consumers
2023$150 $$52 
2024149 54 
2025151 55 
2026151 56 
2027150 58 
2028-2032745 30 298 
Collective Bargaining Agreements: At December 31, 2022, unions represented 41 percent of CMS Energy’s employees and 42 percent of Consumers’ employees. The UWUA represents Consumers’ operating, maintenance, construction, and customer contact center employees. The USW represents Zeeland plant employees. The UWUA and USW agreements expire in 2025.
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement Benefits
Benefit Plans: CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. These plans include:
non‑contributory, qualified DB Pension Plans (closed to new non‑union participants as of July 1, 2003 and closed to new union participants as of September 1, 2005)
a non‑contributory, qualified DCCP for employees hired on or after July 1, 2003
benefits to certain management employees under a non‑contributory, nonqualified DB SERP (closed to new participants as of March 31, 2006)
a non‑contributory, nonqualified DC SERP for certain management employees hired or promoted on or after April 1, 2006
a contributory, qualified defined contribution 401(k) plan
health care and life insurance benefits under an OPEB Plan
DB Pension Plans: Participants in the pension plans include present and former employees of CMS Energy and Consumers, including certain present and former affiliates and subsidiaries. Pension plan trust assets are not distinguishable by company. Effective December 31, 2017, CMS Energy’s and Consumers’ then-existing pension plan was amended to include only retired and former employees already covered; this amended plan is referred to as DB Pension Plan B. Also effective December 31, 2017, active employees were moved to a newly created pension plan, referred to as DB Pension Plan A, whose benefits mirror those provided under DB Pension Plan B. Maintaining separate plans for the two groups allows CMS Energy and Consumers to employ a more targeted investment strategy and provides additional opportunities to mitigate risk and volatility.
In March 2022, CMS Energy and Consumers determined that 2022 lump-sum payments to retired employees under DB Pension Plan A would exceed the plan’s service cost and interest cost components of net periodic cost for the year. These lump-sum payments constitute pension plan liability settlements; once such settlements meet the service and interest cost threshold, recognition in earnings is required. As a result, in accordance with GAAP, CMS Energy, including Consumers, performed a remeasurement of DB Pension Plan A at the end of each quarter in 2022. For the year ended December 31, 2022, CMS Energy, including Consumers, recognized a settlement loss of $22 million; $21 million of this amount was deferred as a regulatory asset. Consumers recognized a settlement loss of $21 million, all of which was deferred as a regulatory asset. CMS Energy and Consumers will amortize the regulatory asset over eight years.
DCCP: CMS Energy and Consumers provide an employer contribution to the DCCP 401(k) plan for employees hired on or after July 1, 2003. The contribution ranges from five percent to ten percent of base pay, depending on years of service and employee class. Employees are not required to contribute in order to receive the plan’s employer contribution. DCCP expense for CMS Energy, including Consumers, was $48 million for the year ended December 31, 2022, $41 million for the year ended December 31, 2021, and $31 million for the year ended December 31, 2020. DCCP expense for Consumers was $48 million for the year ended December 31, 2022, $41 million for the year ended December 31, 2021, and $31 million for the year ended December 31, 2020.
DB SERP: The DB SERP is a nonqualified plan as defined by the Internal Revenue Code. DB SERP benefits are paid from a rabbi trust established in 1988. The trust assets are not considered plan assets under ASC 715. DB SERP rabbi trust earnings are taxable. Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Trust assets$137 $142 
ABO118 149 
Consumers
Trust assets$101 $104 
ABO85 108 
Neither CMS Energy nor Consumers made any contributions to the DB SERP in 2022 or 2021.
DC SERP: On April 1, 2006, CMS Energy and Consumers implemented a DC SERP and froze further new participation in the DB SERP. The DC SERP provides participants benefits ranging from five percent to 15 percent of total compensation. The DC SERP requires a minimum of five years of participation before vesting. CMS Energy’s and Consumers’ contributions to the plan, if any, are placed in a grantor trust. For CMS Energy and Consumers, trust assets were $12 million at December 31, 2022 and $13 million at December 31, 2021. DC SERP assets are included in other non‑current assets on CMS Energy’s and Consumers’ consolidated balance sheets. CMS Energy’s and Consumers’ DC SERP expense was $1 million for the year ended December 31, 2022, and $2 million for the years ended December 31, 2021 and 2020.
401(k) Plan: The 401(k) plan employer match equals four to six percent of employee eligible contributions based on an employee’s wages and class. The total 401(k) plan cost for CMS Energy, including Consumers, was $44 million for the year ended December 31, 2022, $31 million for the year ended December 31, 2021, and $29 million for the year ended December 31, 2020. The total 401(k) plan cost for Consumers was $43 million for the year ended December 31, 2022, $31 million for the year ended December 31, 2021, and $29 million for the year ended December 31, 2020.
OPEB Plan: Participants in the OPEB Plan include all regular full-time employees covered by the employee health care plan on the day before retirement from either CMS Energy or Consumers at age 55 or older with at least ten full years of applicable continuous service. Regular full-time employees who qualify for disability retirement under the DB Pension Plans or are disabled and covered by the DCCP and who have 15 years of applicable continuous service may also participate in the OPEB Plan. Retiree health care costs were based on the assumption that costs would increase 6.50 percent in 2023 and 6.25 percent in 2022 for those under 65 and would increase 6.75 percent in 2023 and 2022 for those over 65. The rate of increase was assumed to decline to 4.75 percent by 2032 and thereafter for all retirees.
Assumptions: Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefit plans to determine benefit obligations and net periodic benefit cost:
December 31202220212020
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A5.24 %3.02 %2.73 %
DB Pension Plan B5.14 2.79 2.41 
DB SERP5.13 2.78 2.40 
OPEB Plan5.21 2.99 2.69 
Rate of compensation increase
DB Pension Plan A3.60 3.60 3.70 
DB SERP5.50 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A3.09 %2.83 %3.44 %
DB SERP3.09 2.84 3.46 
OPEB Plan3.23 3.03 3.57 
Interest cost discount rate2,3
DB Pension Plan A2.44 1.97 2.92 
DB Pension Plan B2.21 1.70 2.74 
DB SERP2.21 1.72 2.74 
OPEB Plan2.45 1.99 2.88 
Expected long-term rate of return on plan assets4
DB Pension Plans6.50 6.75 6.75 
OPEB Plan6.50 6.75 6.75 
Rate of compensation increase
DB Pension Plan A3.60 3.70 3.50 
DB SERP5.50 5.50 5.50 
1The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2022 and 2021 and improvement scale MP-2020 for 2020. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scales MP-2021 for 2022, MP-2020 for 2021, and MP-2019 for 2020.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
4CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers
considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 6.50 percent in 2022. The actual return (loss) on the assets of the DB Pension Plans was (15.9) percent in 2022, 12.0 percent in 2021, and 13.6 percent in 2020.
Costs: Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans:
In Millions
DB Pension Plans and DB SERPOPEB Plan
Years Ended December 31202220212020202220212020
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$41 $53 $50 $17 $18 $16 
Interest cost84 63 83 28 23 33 
Settlement loss— — — 
Expected return on plan assets(206)(208)(191)(115)(109)(100)
Amortization of:
Net loss40 100 95 15 
Prior service cost (credit)(51)(53)(56)
Settlement loss— — — 
Net periodic cost (credit)$(27)$19 $41 $(120)$(113)$(92)
Consumers
Net periodic cost (credit)
Service cost$39 $51 $49 $17 $17 $15 
Interest cost79 59 78 27 23 31 
Expected return on plan assets(194)(197)(181)(107)(102)(93)
Amortization of:
Net loss37 96 90 — 15 
Prior service cost (credit)(50)(51)(54)
Settlement loss— — — 
Net periodic cost (credit)$(26)$19 $39 $(113)$(105)$(86)
CMS Energy and Consumers amortize net gains and losses in excess of ten percent of the greater of the PBO or the MRV over the average remaining service period for DB Pension Plan A and the OPEB Plan and over the average remaining life expectancy of participants for DB Pension Plan B. For DB Pension Plan A, the estimated period of amortization of gains and losses was eight years for the years ended December 31, 2022, 2021, and 2020. For DB Pension Plan B, the estimated period of amortization of gains and losses was 18 years for the years ended December 31, 2022 and 2021, and 19 years for the year ended December 31, 2020. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2022, 2021, and 2020.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for DB Pension Plan A in 2020. The estimated period of amortization of these new prior service costs is eight years.
CMS Energy and Consumers determine the MRV for the assets of the DB Pension Plans as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five-year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date.
Reconciliations: Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefit plans with their retirement benefit plans’ liabilities:
In Millions
DB Pension PlansDB SERPOPEB Plan
Years Ended December 31202220212022202120222021
CMS Energy, including Consumers
Benefit obligation at beginning of period$3,070 $3,266 $149 $160 $1,166 $1,205 
Service cost41 53 — — 17 18 
Interest cost81 60 28 23 
Plan amendments— — — — — 
Actuarial gain(811)
1
(108)
1
(25)(4)(274)
1
(32)
1
Benefits paid(212)(201)(10)(10)(48)(53)
Benefit obligation at end of period$2,169 $3,070 $117 $149 $889 $1,166 
Plan assets at fair value at beginning of period$3,599 $3,402 $— $— $1,787 $1,645 
Actual return on plan assets(567)398 — — (294)194 
Company contribution— — 10 10 — — 
Actual benefits paid(212)(201)(10)(10)(47)(52)
Plan assets at fair value at end of period$2,820 $3,599 $— $— $1,446 $1,787 
Funded status$651 
2
$529 
2
$(117)$(149)$557 $621 
Consumers
Benefit obligation at beginning of period$109 $117 $1,122 $1,158 
Service cost— — 17 17 
Interest cost27 23 
Plan amendments— — — 
Actuarial gain(19)(3)(265)
1
(30)
1
Benefits paid(7)(7)(45)(51)
Benefit obligation at end of period$85 $109 $856 $1,122 
Plan assets at fair value at beginning of period$— $— $1,668 $1,535 
Actual return on plan assets— — (273)182 
Company contribution— — 
Actual benefits paid(7)(7)(45)(49)
Plan assets at fair value at end of period$— $— $1,350 $1,668 
Funded status$(85)$(109)$494 $546 
1The actuarial gains for 2022 and 2021 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $632 million at December 31, 2022 and $510 million at December 31, 2021.
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120222021
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$651 $529 
OPEB Plan557 621 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP107 139 
Consumers
Non-current assets
DB Pension Plans$632 $510 
OPEB Plan494 546 
Current liabilities
DB SERP
Non-current liabilities
DB SERP78 102 
The ABO for the DB Pension Plans was $2.0 billion at December 31, 2022 and $2.7 billion at December 31, 2021. At December 31, 2022 and 2021, the PBO and ABO did not exceed plan assets for any of the defined benefit pension plans.
Items Not Yet Recognized as a Component of Net Periodic Benefit Cost: Presented in the following table are the amounts recognized in regulatory assets, regulatory liabilities, and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets and regulatory liabilities, see Note 2, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312022202120222021
CMS Energy, including Consumers
Regulatory assets (liabilities)
Net loss$724 $812 $251 $136 
Prior service cost (credit)21 25 (140)(190)
Regulatory assets (liabilities)$745 $837 $111 $(54)
AOCI
Net loss (gain)69 94 (17)
Prior service cost (credit)— (3)(5)
Total amounts recognized in regulatory assets (liabilities) and AOCI$815 $931 $110 $(76)
Consumers
Regulatory assets (liabilities)
Net loss$724 $812 $251 $136 
Prior service cost (credit)21 25 (140)(190)
Regulatory assets (liabilities)$745 $837 $111 $(54)
AOCI
Net loss20 41 — — 
Total amounts recognized in regulatory assets (liabilities) and AOCI$765 $878 $111 $(54)
Plan Assets: Presented in the following tables are the fair values of the assets of CMS Energy’s DB Pension Plans and OPEB Plan, by asset category and by level within the fair value hierarchy. For additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
DB Pension Plans
December 31, 2022December 31, 2021
TotalLevel 1TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$122 $122 $30 $30 $— 
U.S. government and agencies securities— — 209 — 209 
Corporate debt— — 595 — 595 
State and municipal bonds— — 13 — 13 
Foreign corporate bonds— — 66 — 66 
Mutual funds263 263 785 785 — 
$385 $385 $1,698 $815 $883 
Pooled funds2,435 1,901 
Total$2,820 $3,599 
In Millions
OPEB Plan
December 31, 2022December 31, 2021
TotalLevel 1TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$28 $28 $21 $21 $— 
U.S. government and agencies securities— — 25 — 25 
Corporate debt— — 73 — 73 
State and municipal bonds— — — 
Foreign corporate bonds— — — 
Common stocks69 69 85 85 — 
Mutual funds754 754 941 941 — 
$851 $851 $1,155 $1,047 $108 
Pooled funds595 632 
Total$1,446 $1,787 
Cash and Short-Term Investments: Cash and short-term investments consist of money market funds with daily liquidity.
U.S. Government and Agencies Securities: U.S. government and agencies securities consist of U.S. Treasury notes and other debt securities backed by the U.S. government and related agencies. These securities are valued based on quoted market prices.
Corporate Debt: Corporate debt investments consist of investment grade bonds of U.S. issuers from diverse industries. These securities are valued based on quoted market prices, when available, or yields available on comparable securities of issuers with similar credit ratings.
State and Municipal Bonds: State and municipal bonds are valued using a matrix-pricing model that incorporates Level 2 market-based information. The fair value of the bonds is derived from various observable inputs, including benchmark yields, reported securities trades, broker/dealer quotes, bond ratings, and general information on market movements for investment grade state and municipal securities normally considered by market participants when pricing such debt securities.
Foreign Corporate Bonds: Foreign corporate debt securities are valued based on quoted market prices, when available, or on yields available on comparable securities of issuers with similar credit ratings.
Common Stocks: Common stocks in the OPEB Plan consist of equity securities that are actively managed and tracked to the S&P 500 Index. These securities are valued at their quoted closing prices.
Mutual Funds: Mutual funds represent shares in registered investment companies that are priced based on the daily quoted net asset values that are publicly available and are the basis for transactions to buy or sell shares in the funds.
Pooled Funds: Pooled funds include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. These funds primarily consist of U.S. and foreign equity securities, but also include U.S. and foreign fixed-income securities and multi-asset investments. Since these investments are valued at their net asset value as a practical expedient, they are not classified in the fair value hierarchy.
Asset Allocations: Presented in the following table are the investment components of the assets of CMS Energy’s DB Pension Plans and OPEB Plan as of December 31, 2022:
DB Pension PlansOPEB Plan
Equity securities38.0 %55.0 %
Fixed-income securities47.0 38.0 
Real asset investments11.0 5.0 
Cash and cash equivalents4.0 2.0 
100.0 %100.0 %
CMS Energy’s target 2022 asset allocation for the assets of the DB Pension Plans was 50‑percent equity, 40‑percent fixed income, and ten‑percent real assets.
CMS Energy established union and non‑union VEBA trusts to fund future retiree health and life insurance benefits. These trusts are funded through the ratemaking process for Consumers and through direct contributions from the non‑utility subsidiaries. CMS Energy’s target 2022 asset allocation for the health trusts was 51‑percent equity, 39‑percent fixed income, and ten‑percent real assets. CMS Energy’s target asset allocation for the life trusts was 53‑percent equity, 32‑percent fixed income, and 15‑percent multi-asset investments.
The goal of these target allocations was to maximize the long-term return on plan assets, while maintaining a prudent level of risk. The level of acceptable risk is a function of the liabilities of the plans. Equity investments are diversified mostly across the S&P 500 Index, with lesser allocations to the S&P MidCap and SmallCap Indexes and Foreign Equity Funds. Fixed-income investments are diversified across investment grade instruments of government and corporate issuers, as well as high-yield and global bond funds. Real asset investments are diversified across real estate investment trusts, public infrastructure, and public resource equity. Multi-asset investments are global tactical asset allocations. CMS Energy uses annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocations.
Contributions: Contributions comprise required amounts and discretionary contributions. Neither CMS Energy nor Consumers made any contributions in 2022 or 2021, or plans to contribute to the DB Pension Plans or OPEB Plan in 2023. Actual future contributions will depend on future investment performance, discount rates, and various factors related to the participants of the DB Pension Plans and OPEB Plan. CMS Energy and Consumers will, at a minimum, contribute to the plans as needed to comply with federal funding requirements.
Benefit Payments: Presented in the following table are the expected benefit payments for each of the next five years and the fiveyear period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2023$160 $10 $55 
2024158 10 57 
2025161 10 58 
2026160 10 59 
2027159 10 60 
2028-2032790 45 312 
Consumers
2023$150 $$52 
2024149 54 
2025151 55 
2026151 56 
2027150 58 
2028-2032745 30 298 
Collective Bargaining Agreements: At December 31, 2022, unions represented 41 percent of CMS Energy’s employees and 42 percent of Consumers’ employees. The UWUA represents Consumers’ operating, maintenance, construction, and customer contact center employees. The USW represents Zeeland plant employees. The UWUA and USW agreements expire in 2025.
v3.22.4
Stock-Based Compensation
12 Months Ended
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Stock-Based Compensation Stock-based Compensation
CMS Energy and Consumers provide a PISP to officers, employees, and non‑employee directors based on their contributions to the successful management of the company. The PISP has a tenyear term, expiring in May 2030.
In 2022, all awards were in the form of restricted stock or restricted stock units. The PISP also allows for unrestricted common stock, stock options, stock appreciation rights, phantom shares, performance units, and incentive options, none of which was granted in 2022, 2021, or 2020.
Shares awarded or subject to stock options, phantom shares, or performance units may not exceed 6.5 million shares from June 2020 through May 2030. CMS Energy and Consumers may issue awards of up to 5,417,727 shares of common stock under the PISP as of December 31, 2022. Shares for which payment or exercise is in cash, as well as shares that expire, terminate, or are canceled or forfeited, may be awarded or granted again under the PISP.
All awards under the PISP vest fully upon death. Upon a change of control of CMS Energy or termination under an officer separation agreement, the awards will vest in accordance with specific officer agreements. If stated in the award, for restricted stock recipients who terminate employment due to retirement or disability, a pro-rata portion of the award will vest upon termination, with any market-based award also contingent upon the outcome of the market condition and any performance-based award contingent upon the outcome of the performance condition. The pro-rata portion is equal to the portion of the service period served between the award grant date and the employee’s termination date. The remaining portion of the awards will be forfeited. All awards for directors vest fully upon retirement. Restricted shares may be forfeited if employment terminates for any other reason or if the minimum service requirements are not met, as described in the award document.
Restricted Stock Awards: Restricted stock awards for employees under the PISP are in the form of performance-based, market-based, and time-lapse restricted stock. Award recipients receive shares of CMS Energy common stock that have dividend and voting rights. The dividends on time-lapse restricted stock are paid in cash or in CMS Energy common stock. The dividends on performance-based and market-based restricted stock are paid in restricted shares equal to the value of the dividends. These additional restricted shares are subject to the same vesting conditions as the underlying restricted stock shares.
Performance-based restricted stock vesting is contingent on meeting at least a 36month service requirement and a performance condition. The performance condition is based on an adjusted measure of CMS Energy’s EPS growth relative to a peer group over a threeyear period. The awards granted in 2022, 2021, and 2020 require a 38month service period. Market-based restricted stock vesting is generally contingent on meeting a three-year service requirement and a market condition. The market condition is based on a comparison of CMS Energy’s total shareholder return with the median total shareholder return of a peer group over the same threeyear period. Depending on the outcome of the performance condition or the market condition, a recipient may earn a total award ranging from zero to 200 percent of the initial grant. Time-lapse restricted stock generally vests after a service period of three years.
Restricted Stock Units: In 2022, 2021, and 2020, CMS Energy and Consumers granted restricted stock units to certain non‑employee directors who elected to defer their restricted stock awards. The restricted stock units generally vest after a service period of one year or, if earlier, at the next annual meeting. The restricted stock units will be distributed to the recipients as shares in accordance with the directors’ deferral agreements. Restricted stock units do not have voting rights, but do have dividend rights. In lieu of cash dividend payments, the dividends on restricted stock units are paid in additional units equal to the value of the dividends. These additional restricted stock units are subject to the same vesting and distribution conditions as the underlying restricted stock units. No restricted stock units were forfeited during 2022.
Presented in the following tables is the activity for restricted stock and restricted stock units under the PISP:
CMS Energy, including ConsumersConsumers
Year Ended December 31, 2022Number of
Shares
Weighted-Average
Grant Date Fair Value
per Share
Number of
Shares
Weighted-Average
Grant Date Fair Value
per Share
Nonvested at beginning of period932,573 $56.56 887,085 $56.56 
Granted
Restricted stock534,386 48.69 506,911 48.57 
Restricted stock units14,255 56.13 13,611 56.07 
Vested
Restricted stock(395,069)36.27 (378,759)36.28 
Restricted stock units(14,170)52.95 (13,377)52.79 
Forfeited – restricted stock(42,452)60.75 (37,325)60.87 
Nonvested at end of period1,029,523 $60.13 978,146 $60.15 
Year Ended December 31, 2022CMS Energy, including
Consumers
Consumers
Granted
Time-lapse awards123,067 116,881 
Market-based awards141,287 133,450 
Performance-based awards141,287 133,450 
Restricted stock units11,810 11,265 
Dividends on market-based awards15,864 15,085 
Dividends on performance-based awards16,216 15,423 
Dividends on restricted stock units2,445 2,346 
Additional market-based shares based on achievement of condition52,627 50,428 
Additional performance-based shares based on achievement of condition44,038 42,194 
Total granted548,641 520,522 
CMS Energy and Consumers charge the fair value of the restricted stock awards to expense over the required service period and charge the fair value of the restricted stock units to expense immediately. For performance-based awards, CMS Energy and Consumers estimate the number of shares expected to vest at the end of the performance period based on the probable achievement of the performance objective. Performance-based and market-based restricted stock awards have graded vesting features for retirement-eligible employees, and CMS Energy and Consumers recognize expense for those awards on a graded vesting schedule over the required service period. Expense for performance-based and market-based restricted stock awards for non‑retirement-eligible employees and time-lapse awards is recognized on a straight-line basis over the required service period.
The fair value of performance-based and time-lapse restricted stock and restricted stock units is based on the price of CMS Energy’s common stock on the grant date. The fair value of market-based restricted stock awards is calculated on the grant date using a Monte Carlo simulation. CMS Energy and Consumers base expected volatilities on the historical volatility of the price of CMS Energy common stock. The risk-free rate for valuation of the market-based restricted stock awards was based on the threeyear U.S. Treasury yield at the award grant date.
Presented in the following table are the most significant assumptions used to estimate the fair value of the market-based restricted stock awards:
Years Ended December 31202220212020
Expected volatility27.3 %27.6 %14.2 %
Expected dividend yield2.8 2.8 2.4 
Risk-free rate1.4 0.2 1.6 
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$48.69 $43.52 $45.56 
Restricted stock units granted56.13 54.11 49.76 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$48.57 $42.85 $45.53 
Restricted stock units granted56.07 53.93 49.70 
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Fair value of shares that vested during the year$27 $25 $22 
Compensation expense recognized26 22 11 
Income tax benefit recognized— 
Consumers
Fair value of shares that vested during the year$25 $24 $21 
Compensation expense recognized25 21 10 
Income tax benefit recognized— 
At December 31, 2022, $28 million of total unrecognized compensation cost was related to restricted stock for CMS Energy, including Consumers, and $27 million of total unrecognized compensation cost was related to restricted stock for Consumers. CMS Energy and Consumers expect to recognize this cost over a weighted-average period of two years.
Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Stock-Based Compensation Stock-based Compensation
CMS Energy and Consumers provide a PISP to officers, employees, and non‑employee directors based on their contributions to the successful management of the company. The PISP has a tenyear term, expiring in May 2030.
In 2022, all awards were in the form of restricted stock or restricted stock units. The PISP also allows for unrestricted common stock, stock options, stock appreciation rights, phantom shares, performance units, and incentive options, none of which was granted in 2022, 2021, or 2020.
Shares awarded or subject to stock options, phantom shares, or performance units may not exceed 6.5 million shares from June 2020 through May 2030. CMS Energy and Consumers may issue awards of up to 5,417,727 shares of common stock under the PISP as of December 31, 2022. Shares for which payment or exercise is in cash, as well as shares that expire, terminate, or are canceled or forfeited, may be awarded or granted again under the PISP.
All awards under the PISP vest fully upon death. Upon a change of control of CMS Energy or termination under an officer separation agreement, the awards will vest in accordance with specific officer agreements. If stated in the award, for restricted stock recipients who terminate employment due to retirement or disability, a pro-rata portion of the award will vest upon termination, with any market-based award also contingent upon the outcome of the market condition and any performance-based award contingent upon the outcome of the performance condition. The pro-rata portion is equal to the portion of the service period served between the award grant date and the employee’s termination date. The remaining portion of the awards will be forfeited. All awards for directors vest fully upon retirement. Restricted shares may be forfeited if employment terminates for any other reason or if the minimum service requirements are not met, as described in the award document.
Restricted Stock Awards: Restricted stock awards for employees under the PISP are in the form of performance-based, market-based, and time-lapse restricted stock. Award recipients receive shares of CMS Energy common stock that have dividend and voting rights. The dividends on time-lapse restricted stock are paid in cash or in CMS Energy common stock. The dividends on performance-based and market-based restricted stock are paid in restricted shares equal to the value of the dividends. These additional restricted shares are subject to the same vesting conditions as the underlying restricted stock shares.
Performance-based restricted stock vesting is contingent on meeting at least a 36month service requirement and a performance condition. The performance condition is based on an adjusted measure of CMS Energy’s EPS growth relative to a peer group over a threeyear period. The awards granted in 2022, 2021, and 2020 require a 38month service period. Market-based restricted stock vesting is generally contingent on meeting a three-year service requirement and a market condition. The market condition is based on a comparison of CMS Energy’s total shareholder return with the median total shareholder return of a peer group over the same threeyear period. Depending on the outcome of the performance condition or the market condition, a recipient may earn a total award ranging from zero to 200 percent of the initial grant. Time-lapse restricted stock generally vests after a service period of three years.
Restricted Stock Units: In 2022, 2021, and 2020, CMS Energy and Consumers granted restricted stock units to certain non‑employee directors who elected to defer their restricted stock awards. The restricted stock units generally vest after a service period of one year or, if earlier, at the next annual meeting. The restricted stock units will be distributed to the recipients as shares in accordance with the directors’ deferral agreements. Restricted stock units do not have voting rights, but do have dividend rights. In lieu of cash dividend payments, the dividends on restricted stock units are paid in additional units equal to the value of the dividends. These additional restricted stock units are subject to the same vesting and distribution conditions as the underlying restricted stock units. No restricted stock units were forfeited during 2022.
Presented in the following tables is the activity for restricted stock and restricted stock units under the PISP:
CMS Energy, including ConsumersConsumers
Year Ended December 31, 2022Number of
Shares
Weighted-Average
Grant Date Fair Value
per Share
Number of
Shares
Weighted-Average
Grant Date Fair Value
per Share
Nonvested at beginning of period932,573 $56.56 887,085 $56.56 
Granted
Restricted stock534,386 48.69 506,911 48.57 
Restricted stock units14,255 56.13 13,611 56.07 
Vested
Restricted stock(395,069)36.27 (378,759)36.28 
Restricted stock units(14,170)52.95 (13,377)52.79 
Forfeited – restricted stock(42,452)60.75 (37,325)60.87 
Nonvested at end of period1,029,523 $60.13 978,146 $60.15 
Year Ended December 31, 2022CMS Energy, including
Consumers
Consumers
Granted
Time-lapse awards123,067 116,881 
Market-based awards141,287 133,450 
Performance-based awards141,287 133,450 
Restricted stock units11,810 11,265 
Dividends on market-based awards15,864 15,085 
Dividends on performance-based awards16,216 15,423 
Dividends on restricted stock units2,445 2,346 
Additional market-based shares based on achievement of condition52,627 50,428 
Additional performance-based shares based on achievement of condition44,038 42,194 
Total granted548,641 520,522 
CMS Energy and Consumers charge the fair value of the restricted stock awards to expense over the required service period and charge the fair value of the restricted stock units to expense immediately. For performance-based awards, CMS Energy and Consumers estimate the number of shares expected to vest at the end of the performance period based on the probable achievement of the performance objective. Performance-based and market-based restricted stock awards have graded vesting features for retirement-eligible employees, and CMS Energy and Consumers recognize expense for those awards on a graded vesting schedule over the required service period. Expense for performance-based and market-based restricted stock awards for non‑retirement-eligible employees and time-lapse awards is recognized on a straight-line basis over the required service period.
The fair value of performance-based and time-lapse restricted stock and restricted stock units is based on the price of CMS Energy’s common stock on the grant date. The fair value of market-based restricted stock awards is calculated on the grant date using a Monte Carlo simulation. CMS Energy and Consumers base expected volatilities on the historical volatility of the price of CMS Energy common stock. The risk-free rate for valuation of the market-based restricted stock awards was based on the threeyear U.S. Treasury yield at the award grant date.
Presented in the following table are the most significant assumptions used to estimate the fair value of the market-based restricted stock awards:
Years Ended December 31202220212020
Expected volatility27.3 %27.6 %14.2 %
Expected dividend yield2.8 2.8 2.4 
Risk-free rate1.4 0.2 1.6 
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$48.69 $43.52 $45.56 
Restricted stock units granted56.13 54.11 49.76 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$48.57 $42.85 $45.53 
Restricted stock units granted56.07 53.93 49.70 
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Fair value of shares that vested during the year$27 $25 $22 
Compensation expense recognized26 22 11 
Income tax benefit recognized— 
Consumers
Fair value of shares that vested during the year$25 $24 $21 
Compensation expense recognized25 21 10 
Income tax benefit recognized— 
At December 31, 2022, $28 million of total unrecognized compensation cost was related to restricted stock for CMS Energy, including Consumers, and $27 million of total unrecognized compensation cost was related to restricted stock for Consumers. CMS Energy and Consumers expect to recognize this cost over a weighted-average period of two years.
v3.22.4
Income Taxes
12 Months Ended
Dec. 31, 2022
Income Taxes [Line Items]  
Income Taxes Income TaxesCMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement.
Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate:
In Millions, Except Tax Rate
Years Ended December 31202220212020
CMS Energy, including Consumers
Income from continuing operations before income taxes$902 $823 $809 
Income tax expense at statutory rate189 173 170 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect51 39 44 
TCJA excess deferred taxes1
(65)(50)(35)
Production tax credits(45)(40)(28)
Accelerated flow-through of regulatory tax benefits2
(39)(28)(13)
Research and development tax credits, net3
(2)(3)(11)
Refund of alternative minimum tax sequestration4
— — (9)
Other, net(3)
Income tax expense$93 $95 $115 
Effective tax rate10.3 %11.5 %14.2 %
Consumers
Income from continuing operations before income taxes$1,085 $1,024 $989 
Income tax expense at statutory rate228 215 208 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
59 54 47 
TCJA excess deferred taxes1
(65)(50)(35)
Accelerated flow-through of regulatory tax benefits2
(39)(28)(13)
Production tax credits(40)(33)(19)
Research and development tax credits, net3
(1)(3)(11)
Other, net(2)(4)
Income tax expense$140 $156 $173 
Effective tax rate12.9 %15.2 %17.5 %
1In 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, nonproperty-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, has now been fully amortized.
2In 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, have now been fully amortized.
3In 2022, CMS Energy finalized a study of research and development tax credits for tax years 2019 through 2021. As a result, Consumers recognized a $1 million decrease in the credit, net of reserves for uncertain tax positions. There was no impact at the consolidated level. In 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers.
4In 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Current income taxes
Federal$$(1)$(35)
State and local— (2)
$$— $(37)
Deferred income taxes
Federal49 100 
State and local65 49 57 
$69 $98 $157 
Deferred income tax credit18 (3)(5)
Tax expense$93 $95 $115 
Consumers
Current income taxes
Federal$(2)$(13)$
State and local15 (7)
$$$(4)
Deferred income taxes
Federal50 103 115 
State and local66 54 67 
$116 $157 $182 
Deferred income tax credit18 (3)(5)
Tax expense$140 $156 $173 
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120222021
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$385 $332 
Net regulatory tax liability318 349 
Reserves and accruals35 32 
Total deferred income tax assets$738 $713 
Valuation allowance(2)(2)
Total deferred income tax assets, net of valuation allowance$736 $711 
Deferred income tax liabilities
Plant, property, and equipment$(2,515)$(2,395)
Employee benefits(433)(399)
Gas inventory(53)(22)
Securitized costs(39)(46)
Other(103)(59)
Total deferred income tax liabilities$(3,143)$(2,921)
Total net deferred income tax liabilities$(2,407)$(2,210)
Consumers
Deferred income tax assets
Net regulatory tax liability$318 $349 
Tax loss and credit carryforwards145 134 
Reserves and accruals28 24 
Total deferred income tax assets$491 $507 
Deferred income tax liabilities
Plant, property, and equipment$(2,458)$(2,341)
Employee benefits(423)(388)
Gas inventory(53)(22)
Securitized costs(39)(46)
Other(103)(50)
Total deferred income tax liabilities$(3,076)$(2,847)
Total net deferred income tax liabilities$(2,585)$(2,340)
Deferred tax assets and liabilities are recognized for the estimated future tax effect of temporary differences between the tax basis of assets or liabilities and the reported amounts on CMS Energy’s and Consumers’ consolidated financial statements.
Presented in the following table are the tax loss and credit carryforwards at December 31, 2022:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
State net operating loss carryforwards$60 2030 – 2032
Local net operating loss carryforwards2024 – 2040
General business credits320 2035 – 2042
Federal charitable contribution carryforwards2025
Total tax attributes$385 
Consumers
State net operating loss carryforwards$46 2030
General business credits99 2035 – 2042
Total tax attributes$145 
CMS Energy has provided a valuation allowance of $2 million for the local tax loss carryforward. CMS Energy and Consumers expect to utilize fully their tax loss and credit carryforwards for which no valuation allowance has been provided. It is reasonably possible that further adjustments will be made to the valuation allowances within one year.
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Balance at beginning of period$27 $25 $23 
Additions for current-year tax positions
Additions for prior-year tax positions— 
Reductions for prior-year tax positions(1)— (2)
Balance at end of period$28 $27 $25 
Consumers
Balance at beginning of period$34 $31 $34 
Additions for current-year tax positions
Additions for prior-year tax positions— 
Reductions for prior-year tax positions(2)— (8)
Balance at end of period$36 $34 $31 
If recognized, all of these uncertain tax benefits would affect CMS Energy’s and Consumers’ annual effective tax rates in future years. One uncertain tax benefit relates to the methodology of state apportionment for Consumers’ electricity sales to MISO. The Michigan Tax Tribunal heard oral arguments on this methodology during 2022. A final conclusion is not anticipated in the next 12 months.
CMS Energy and Consumers recognize accrued interest and penalties, where applicable, as part of income tax expense. CMS Energy, including Consumers, recognized no interest or penalties for each of the years ended December 31, 2022, 2021, or 2020.
The amount of income taxes paid is subject to ongoing audits by federal, state, local, and foreign tax authorities, which can result in proposed assessments. CMS Energy’s federal income tax returns for 2019 and subsequent years remain subject to examination by the IRS. CMS Energy’s Michigan Corporate Income Tax returns for 2013 and subsequent years remain subject to examination by the State of Michigan. CMS Energy’s and Consumers’ estimate of the potential outcome for any uncertain tax issue is highly judgmental. CMS Energy and Consumers believe that their accrued tax liabilities at December 31, 2022 were adequate for all years.
Consumers Energy Company  
Income Taxes [Line Items]  
Income Taxes Income TaxesCMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement.
Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate:
In Millions, Except Tax Rate
Years Ended December 31202220212020
CMS Energy, including Consumers
Income from continuing operations before income taxes$902 $823 $809 
Income tax expense at statutory rate189 173 170 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect51 39 44 
TCJA excess deferred taxes1
(65)(50)(35)
Production tax credits(45)(40)(28)
Accelerated flow-through of regulatory tax benefits2
(39)(28)(13)
Research and development tax credits, net3
(2)(3)(11)
Refund of alternative minimum tax sequestration4
— — (9)
Other, net(3)
Income tax expense$93 $95 $115 
Effective tax rate10.3 %11.5 %14.2 %
Consumers
Income from continuing operations before income taxes$1,085 $1,024 $989 
Income tax expense at statutory rate228 215 208 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
59 54 47 
TCJA excess deferred taxes1
(65)(50)(35)
Accelerated flow-through of regulatory tax benefits2
(39)(28)(13)
Production tax credits(40)(33)(19)
Research and development tax credits, net3
(1)(3)(11)
Other, net(2)(4)
Income tax expense$140 $156 $173 
Effective tax rate12.9 %15.2 %17.5 %
1In 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, nonproperty-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, has now been fully amortized.
2In 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, have now been fully amortized.
3In 2022, CMS Energy finalized a study of research and development tax credits for tax years 2019 through 2021. As a result, Consumers recognized a $1 million decrease in the credit, net of reserves for uncertain tax positions. There was no impact at the consolidated level. In 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers.
4In 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Current income taxes
Federal$$(1)$(35)
State and local— (2)
$$— $(37)
Deferred income taxes
Federal49 100 
State and local65 49 57 
$69 $98 $157 
Deferred income tax credit18 (3)(5)
Tax expense$93 $95 $115 
Consumers
Current income taxes
Federal$(2)$(13)$
State and local15 (7)
$$$(4)
Deferred income taxes
Federal50 103 115 
State and local66 54 67 
$116 $157 $182 
Deferred income tax credit18 (3)(5)
Tax expense$140 $156 $173 
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120222021
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$385 $332 
Net regulatory tax liability318 349 
Reserves and accruals35 32 
Total deferred income tax assets$738 $713 
Valuation allowance(2)(2)
Total deferred income tax assets, net of valuation allowance$736 $711 
Deferred income tax liabilities
Plant, property, and equipment$(2,515)$(2,395)
Employee benefits(433)(399)
Gas inventory(53)(22)
Securitized costs(39)(46)
Other(103)(59)
Total deferred income tax liabilities$(3,143)$(2,921)
Total net deferred income tax liabilities$(2,407)$(2,210)
Consumers
Deferred income tax assets
Net regulatory tax liability$318 $349 
Tax loss and credit carryforwards145 134 
Reserves and accruals28 24 
Total deferred income tax assets$491 $507 
Deferred income tax liabilities
Plant, property, and equipment$(2,458)$(2,341)
Employee benefits(423)(388)
Gas inventory(53)(22)
Securitized costs(39)(46)
Other(103)(50)
Total deferred income tax liabilities$(3,076)$(2,847)
Total net deferred income tax liabilities$(2,585)$(2,340)
Deferred tax assets and liabilities are recognized for the estimated future tax effect of temporary differences between the tax basis of assets or liabilities and the reported amounts on CMS Energy’s and Consumers’ consolidated financial statements.
Presented in the following table are the tax loss and credit carryforwards at December 31, 2022:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
State net operating loss carryforwards$60 2030 – 2032
Local net operating loss carryforwards2024 – 2040
General business credits320 2035 – 2042
Federal charitable contribution carryforwards2025
Total tax attributes$385 
Consumers
State net operating loss carryforwards$46 2030
General business credits99 2035 – 2042
Total tax attributes$145 
CMS Energy has provided a valuation allowance of $2 million for the local tax loss carryforward. CMS Energy and Consumers expect to utilize fully their tax loss and credit carryforwards for which no valuation allowance has been provided. It is reasonably possible that further adjustments will be made to the valuation allowances within one year.
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Balance at beginning of period$27 $25 $23 
Additions for current-year tax positions
Additions for prior-year tax positions— 
Reductions for prior-year tax positions(1)— (2)
Balance at end of period$28 $27 $25 
Consumers
Balance at beginning of period$34 $31 $34 
Additions for current-year tax positions
Additions for prior-year tax positions— 
Reductions for prior-year tax positions(2)— (8)
Balance at end of period$36 $34 $31 
If recognized, all of these uncertain tax benefits would affect CMS Energy’s and Consumers’ annual effective tax rates in future years. One uncertain tax benefit relates to the methodology of state apportionment for Consumers’ electricity sales to MISO. The Michigan Tax Tribunal heard oral arguments on this methodology during 2022. A final conclusion is not anticipated in the next 12 months.
CMS Energy and Consumers recognize accrued interest and penalties, where applicable, as part of income tax expense. CMS Energy, including Consumers, recognized no interest or penalties for each of the years ended December 31, 2022, 2021, or 2020.
The amount of income taxes paid is subject to ongoing audits by federal, state, local, and foreign tax authorities, which can result in proposed assessments. CMS Energy’s federal income tax returns for 2019 and subsequent years remain subject to examination by the IRS. CMS Energy’s Michigan Corporate Income Tax returns for 2013 and subsequent years remain subject to examination by the State of Michigan. CMS Energy’s and Consumers’ estimate of the potential outcome for any uncertain tax issue is highly judgmental. CMS Energy and Consumers believe that their accrued tax liabilities at December 31, 2022 were adequate for all years.
v3.22.4
Earnings Per Share - CMS Energy
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Earnings Per Share - CMS Energy Earnings Per Share—CMS Energy
Presented in the following table are CMS Energy’s basic and diluted EPS computations based on income from continuing operations:
In Millions, Except Per Share Amounts
Years Ended December 31202220212020
Income available to common stockholders
Income from continuing operations$809 $728 $694 
Less loss attributable to noncontrolling interests(24)(23)(3)
Less preferred stock dividends10 — 
Income from continuing operations available to common stockholders – basic and diluted$823 $746 $697 
Average common shares outstanding
Weighted-average shares – basic289.5 289.0 285.0 
Add dilutive nonvested stock awards0.3 0.5 0.7 
Add dilutive forward equity sale contracts0.2 — 0.6 
Weighted-average shares – diluted290.0 289.5 286.3 
Income from continuing operations per average common share available to common stockholders
Basic$2.84 $2.58 $2.45 
Diluted2.84 2.58 2.44 
Nonvested Stock Awards
CMS Energy’s nonvested stock awards are composed of participating and non‑participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the nonvested stock awards are considered participating securities. As such, the participating nonvested stock awards were included in the computation of basic EPS. The non‑participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non‑participating securities are also forfeited. Accordingly, the non‑participating awards and stock dividends were included in the computation of diluted EPS, but not in the computation of basic EPS.
Forward Equity Sale Contracts
CMS Energy has entered into forward equity sale contracts. These forward equity sale contracts are non‑participating securities. While the forward sale price in the forward equity sale contract is decreased on certain dates by certain predetermined amounts to reflect expected dividend payments, these price
adjustments were set upon inception of the agreement and the forward contract does not give the owner the right to participate in undistributed earnings. Accordingly, the forward equity sale contracts were included in the computation of diluted EPS, but not in the computation of basic EPS. For further details on the forward equity sale contracts, see Note 4, Financings and Capitalization.
v3.22.4
Revenue
12 Months Ended
Dec. 31, 2022
Disaggregation of Revenue [Line Items]  
Revenue RevenuePresented in the following tables are the components of operating revenue:
In Millions
Year Ended December 31, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$5,395 $2,720 $— $8,115 
Other— — 205 205 
Revenue recognized from contracts with customers$5,395 $2,720 $205 $8,320 
Leasing income— — 240 240 
Financing income10 — 16 
Consumers alternative-revenue programs43 14 — 57 
Consumers revenues to be refunded(29)(8)— (37)
Total operating revenue – CMS Energy$5,419 $2,732 $445 $8,596 
Consumers
Consumers utility revenue
Residential$2,523 $1,879 $4,402 
Commercial1,733 559 2,292 
Industrial792 75 867 
Other347 207 554 
Revenue recognized from contracts with customers$5,395 $2,720 $8,115 
Financing income10 16 
Alternative-revenue programs43 14 57 
Revenues to be refunded(29)(8)(37)
Total operating revenue – Consumers$5,419 $2,732 $8,151 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2021Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,915 $2,046 $— $6,961 
Other— — 114 114 
Revenue recognized from contracts with customers$4,915 $2,046 $114 $7,075 
Leasing income— — 194 194 
Financing income10 — 15 
Consumers alternative-revenue programs33 12 — 45 
Total operating revenue – CMS Energy$4,958 $2,063 $308 $7,329 
Consumers
Consumers utility revenue
Residential$2,402 $1,396 $3,798 
Commercial1,573 396 1,969 
Industrial624 54 678 
Other316 200 516 
Revenue recognized from contracts with customers$4,915 $2,046 $6,961 
Financing income10 15 
Alternative-revenue programs33 12 45 
Total operating revenue – Consumers$4,958 $2,063 $7,021 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2020Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,348 $1,809 $— $6,157 
Other— — 81 81 
Revenue recognized from contracts with customers$4,348 $1,809 $81 $6,238 
Leasing income— — 148 148 
Financing income11 — 17 
Consumers alternative-revenue programs29 14 — 43 
Consumers revenues to be refunded(16)(12)— (28)
Total operating revenue – CMS Energy$4,372 $1,817 $229 $6,418 
Consumers
Consumers utility revenue
Residential$2,109 $1,232 $3,341 
Commercial1,444 337 1,781 
Industrial570 46 616 
Other225 194 419 
Revenue recognized from contracts with customers$4,348 $1,809 $6,157 
Financing income11 17 
Alternative-revenue programs29 14 43 
Revenues to be refunded(16)(12)(28)
Total operating revenue – Consumers$4,372 $1,817 $6,189 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled
product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
For the year ended December 31, 2022, CMS Energy and Consumers recorded uncollectible accounts expense of $50 million, which included a commitment to contribute $10 million to directly assist vulnerable customers with utility bills. CMS Energy and Consumers recorded uncollectible accounts expense of $22 million for the year ended December 31, 2021 and $33 million for the year ended December 31, 2020.
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 $663 million at December 31, 2022 and $486 million at December 31, 2021.
AlternativeRevenue Programs: Consumers accounts for its energy waste reduction incentive mechanism and financial compensation mechanism as alternative-revenue programs. Consumers recognizes revenue related to the energy waste reduction incentive as soon as energy savings exceed the annual targets established by the MPSC and recognizes revenue related to the financial compensation mechanism as payments are made on MPSC-approved PPAs. For additional information on these mechanisms, see Note 2, Regulatory Matters.
Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather‑normalized, non‑fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative‑revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Revenues to Be Refunded: In 2020, the MPSC issued an order authorizing Consumers to refund $28 million voluntarily to utility customers. This amount was refunded to customers during 2021 and 2022 in the form of incremental spending above amounts included in rates on various programs.In December 2022, the MPSC issued an order authorizing Consumers to refund $22 million voluntarily to utility customers. Additionally, in the settlement of its 2022 electric rate case, Consumers agreed to refund voluntarily $15 million of 2022 revenues to utility customers through a one-time bill credit. For additional information, see Note 2, Regulatory Matters
Consumers Energy Company  
Disaggregation of Revenue [Line Items]  
Revenue RevenuePresented in the following tables are the components of operating revenue:
In Millions
Year Ended December 31, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$5,395 $2,720 $— $8,115 
Other— — 205 205 
Revenue recognized from contracts with customers$5,395 $2,720 $205 $8,320 
Leasing income— — 240 240 
Financing income10 — 16 
Consumers alternative-revenue programs43 14 — 57 
Consumers revenues to be refunded(29)(8)— (37)
Total operating revenue – CMS Energy$5,419 $2,732 $445 $8,596 
Consumers
Consumers utility revenue
Residential$2,523 $1,879 $4,402 
Commercial1,733 559 2,292 
Industrial792 75 867 
Other347 207 554 
Revenue recognized from contracts with customers$5,395 $2,720 $8,115 
Financing income10 16 
Alternative-revenue programs43 14 57 
Revenues to be refunded(29)(8)(37)
Total operating revenue – Consumers$5,419 $2,732 $8,151 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2021Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,915 $2,046 $— $6,961 
Other— — 114 114 
Revenue recognized from contracts with customers$4,915 $2,046 $114 $7,075 
Leasing income— — 194 194 
Financing income10 — 15 
Consumers alternative-revenue programs33 12 — 45 
Total operating revenue – CMS Energy$4,958 $2,063 $308 $7,329 
Consumers
Consumers utility revenue
Residential$2,402 $1,396 $3,798 
Commercial1,573 396 1,969 
Industrial624 54 678 
Other316 200 516 
Revenue recognized from contracts with customers$4,915 $2,046 $6,961 
Financing income10 15 
Alternative-revenue programs33 12 45 
Total operating revenue – Consumers$4,958 $2,063 $7,021 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2020Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,348 $1,809 $— $6,157 
Other— — 81 81 
Revenue recognized from contracts with customers$4,348 $1,809 $81 $6,238 
Leasing income— — 148 148 
Financing income11 — 17 
Consumers alternative-revenue programs29 14 — 43 
Consumers revenues to be refunded(16)(12)— (28)
Total operating revenue – CMS Energy$4,372 $1,817 $229 $6,418 
Consumers
Consumers utility revenue
Residential$2,109 $1,232 $3,341 
Commercial1,444 337 1,781 
Industrial570 46 616 
Other225 194 419 
Revenue recognized from contracts with customers$4,348 $1,809 $6,157 
Financing income11 17 
Alternative-revenue programs29 14 43 
Revenues to be refunded(16)(12)(28)
Total operating revenue – Consumers$4,372 $1,817 $6,189 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled
product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
For the year ended December 31, 2022, CMS Energy and Consumers recorded uncollectible accounts expense of $50 million, which included a commitment to contribute $10 million to directly assist vulnerable customers with utility bills. CMS Energy and Consumers recorded uncollectible accounts expense of $22 million for the year ended December 31, 2021 and $33 million for the year ended December 31, 2020.
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 $663 million at December 31, 2022 and $486 million at December 31, 2021.
AlternativeRevenue Programs: Consumers accounts for its energy waste reduction incentive mechanism and financial compensation mechanism as alternative-revenue programs. Consumers recognizes revenue related to the energy waste reduction incentive as soon as energy savings exceed the annual targets established by the MPSC and recognizes revenue related to the financial compensation mechanism as payments are made on MPSC-approved PPAs. For additional information on these mechanisms, see Note 2, Regulatory Matters.
Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather‑normalized, non‑fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative‑revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Revenues to Be Refunded: In 2020, the MPSC issued an order authorizing Consumers to refund $28 million voluntarily to utility customers. This amount was refunded to customers during 2021 and 2022 in the form of incremental spending above amounts included in rates on various programs.In December 2022, the MPSC issued an order authorizing Consumers to refund $22 million voluntarily to utility customers. Additionally, in the settlement of its 2022 electric rate case, Consumers agreed to refund voluntarily $15 million of 2022 revenues to utility customers through a one-time bill credit. For additional information, see Note 2, Regulatory Matters
v3.22.4
Other Income and Other Expense
12 Months Ended
Dec. 31, 2022
Other Income and Expenses [Line Items]  
Other Income and Other Expense Other Income and Other Expense
Presented in the following table are the components of other income and other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Other income
Interest income$$$
Interest income - related parties— — 
Allowance for equity funds used during construction
Income from equity method investees10 
All other
Total other income – CMS Energy$19 $30 $28 
Consumers
Other income
Interest income$$$
Interest income - related parties
Allowance for equity funds used during construction
All other
Total other income – Consumers$17 $23 $19 
CMS Energy, including Consumers
Other expense
Donations$(9)$(6)$(35)
Civic and political expenditures(6)(5)(5)
Loss on reacquired and extinguished debt— — (16)
All other(12)(7)(6)
Total other expense – CMS Energy$(27)$(18)$(62)
Consumers
Other expense
Donations$(9)$(6)$(33)
Civic and political expenditures(6)(5)(5)
All other(10)(7)(5)
Total other expense – Consumers$(25)$(18)$(43)
Consumers Energy Company  
Other Income and Expenses [Line Items]  
Other Income and Other Expense Other Income and Other Expense
Presented in the following table are the components of other income and other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Other income
Interest income$$$
Interest income - related parties— — 
Allowance for equity funds used during construction
Income from equity method investees10 
All other
Total other income – CMS Energy$19 $30 $28 
Consumers
Other income
Interest income$$$
Interest income - related parties
Allowance for equity funds used during construction
All other
Total other income – Consumers$17 $23 $19 
CMS Energy, including Consumers
Other expense
Donations$(9)$(6)$(35)
Civic and political expenditures(6)(5)(5)
Loss on reacquired and extinguished debt— — (16)
All other(12)(7)(6)
Total other expense – CMS Energy$(27)$(18)$(62)
Consumers
Other expense
Donations$(9)$(6)$(33)
Civic and political expenditures(6)(5)(5)
All other(10)(7)(5)
Total other expense – Consumers$(25)$(18)$(43)
v3.22.4
Reportable Segments
12 Months Ended
Dec. 31, 2022
Segment Reporting Information [Line Items]  
Reportable Segments Reportable SegmentsReportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders.
Accounting policies for CMS Energy’s and Consumers’ segments are as described in Note 1, Significant Accounting Policies. The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of the individual segments when appropriate. Accounts are allocated among the segments when common accounts are attributable to more than one segment. The allocations are based on certain measures of business activities, such as revenue, labor dollars, customers, other operating and maintenance expense, construction expense, leased property, taxes, or functional surveys. For example, customer receivables are allocated based on revenue, and pension provisions are allocated based on labor dollars.
Inter-segment sales and transfers are accounted for at current market prices and are eliminated in consolidated net income available to common stockholders by segment. Inter-segment sales and transfers were immaterial for all periods presented.
CMS Energy
The segments reported for CMS Energy are:
electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
NorthStar Clean Energy (formerly known as the enterprises segment), 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
In August 2022, CMS Enterprises Company changed its legal name to NorthStar Clean Energy Company. To align the segment reporting with the legal organizational structure and the internal reporting of CMS Energy, the enterprises segment will now be referred to as NorthStar Clean Energy. There were no changes to CMS Energy’s reportable segment composition as a result of this name change.
In October 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 19, 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
Years Ended December 31202220212020
CMS Energy, including Consumers
Operating revenue
Electric utility$5,419 $4,958 $4,372 
Gas utility2,732 2,063 1,817 
NorthStar Clean Energy445 308 229 
Total operating revenue – CMS Energy$8,596 $7,329 $6,418 
Consumers
Operating revenue
Electric utility$5,419 $4,958 $4,372 
Gas utility2,732 2,063 1,817 
Total operating revenue – Consumers$8,151 $7,021 $6,189 
CMS Energy, including Consumers
Depreciation and amortization
Electric utility$757 $772 $739 
Gas utility330 304 283 
NorthStar Clean Energy38 37 20 
Other reconciling items
Total depreciation and amortization – CMS Energy$1,126 $1,114 $1,043 
Consumers
Depreciation and amortization
Electric utility$757 $772 $739 
Gas utility330 304 283 
Other reconciling items
Total depreciation and amortization – Consumers$1,088 $1,077 $1,023 
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Income from equity method investees1
NorthStar Clean Energy$$10 $
Total income from equity method investees – CMS Energy$$10 $
CMS Energy, including Consumers
Interest charges
Electric utility$218 $207 $217 
Gas utility116 104 102 
NorthStar Clean Energy
Other reconciling items182 183 179 
Total interest charges – CMS Energy$519 $500 $505 
Consumers
Interest charges
Electric utility$218 $207 $217 
Gas utility116 104 102 
Other reconciling items— 
Total interest charges – Consumers$335 $311 $320 
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility$109 $117 $115 
Gas utility32 39 58 
NorthStar Clean Energy(2)(4)
Other reconciling items(51)(59)(54)
Total income tax expense – CMS Energy$93 $95 $115 
Consumers
Income tax expense (benefit)
Electric utility$109 $117 $115 
Gas utility32 39 58 
Other reconciling items(1)— — 
Total income tax expense – Consumers$140 $156 $173 
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$567 $565 $554 
Gas utility378 302 261 
NorthStar Clean Energy34 23 36 
Other reconciling items(152)458 (96)
Total net income available to common stockholders – CMS Energy$827 $1,348 $755 
Consumers
Net income (loss) available to common stockholder
Electric utility$567 $565 $554 
Gas utility378 302 261 
Other reconciling items(2)(1)(1)
Total net income available to common stockholder – Consumers$943 $866 $814 
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2
$17,870 $18,147 $17,155 
Gas utility2
11,443 10,601 9,581 
NorthStar Clean Energy1,148 1,122 1,113 
Other reconciling items30 23 21 
Total plant, property, and equipment, gross – CMS Energy$30,491 $29,893 $27,870 
Consumers
Plant, property, and equipment, gross
Electric utility2
$17,870 $18,147 $17,155 
Gas utility2
11,443 10,601 9,581 
Other reconciling items29 23 21 
Total plant, property, and equipment, gross – Consumers$29,342 $28,771 $26,757 
CMS Energy, including Consumers
Investments in equity method investees1
NorthStar Clean Energy$71 $71 $70 
Total investments in equity method investees – CMS Energy$71 $71 $70 
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Total assets
Electric utility2
$17,907 $16,493 $15,829 
Gas utility2
11,873 10,517 9,429 
NorthStar Clean Energy1,464 1,312 1,276 
Other reconciling items109 431 3,132 
Total assets – CMS Energy$31,353 $28,753 $29,666 
Consumers
Total assets
Electric utility2
$17,968 $16,555 $15,893 
Gas utility2
11,918 10,564 9,477 
Other reconciling items30 21 29 
Total assets – Consumers$29,916 $27,140 $25,399 
CMS Energy, including Consumers
Capital expenditures3
Electric utility4
$1,265 $1,153 $1,281 
Gas utility4
1,008 989 885 
NorthStar Clean Energy113 17 108 
Other reconciling items
Total capital expenditures – CMS Energy$2,393 $2,161 $2,275 
Consumers
Capital expenditures3
Electric utility4
$1,265 $1,153 $1,281 
Gas utility4
1,008 989 885 
Other reconciling items
Total capital expenditures – Consumers$2,280 $2,144 $2,167 
1Consumers had no equity method investments.
2Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
3Amounts include assets placed under finance lease.
4Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
Consumers Energy Company  
Segment Reporting Information [Line Items]  
Reportable Segments Reportable SegmentsReportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders.
Accounting policies for CMS Energy’s and Consumers’ segments are as described in Note 1, Significant Accounting Policies. The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of the individual segments when appropriate. Accounts are allocated among the segments when common accounts are attributable to more than one segment. The allocations are based on certain measures of business activities, such as revenue, labor dollars, customers, other operating and maintenance expense, construction expense, leased property, taxes, or functional surveys. For example, customer receivables are allocated based on revenue, and pension provisions are allocated based on labor dollars.
Inter-segment sales and transfers are accounted for at current market prices and are eliminated in consolidated net income available to common stockholders by segment. Inter-segment sales and transfers were immaterial for all periods presented.
CMS Energy
The segments reported for CMS Energy are:
electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
NorthStar Clean Energy (formerly known as the enterprises segment), 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
In August 2022, CMS Enterprises Company changed its legal name to NorthStar Clean Energy Company. To align the segment reporting with the legal organizational structure and the internal reporting of CMS Energy, the enterprises segment will now be referred to as NorthStar Clean Energy. There were no changes to CMS Energy’s reportable segment composition as a result of this name change.
In October 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 19, 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
Years Ended December 31202220212020
CMS Energy, including Consumers
Operating revenue
Electric utility$5,419 $4,958 $4,372 
Gas utility2,732 2,063 1,817 
NorthStar Clean Energy445 308 229 
Total operating revenue – CMS Energy$8,596 $7,329 $6,418 
Consumers
Operating revenue
Electric utility$5,419 $4,958 $4,372 
Gas utility2,732 2,063 1,817 
Total operating revenue – Consumers$8,151 $7,021 $6,189 
CMS Energy, including Consumers
Depreciation and amortization
Electric utility$757 $772 $739 
Gas utility330 304 283 
NorthStar Clean Energy38 37 20 
Other reconciling items
Total depreciation and amortization – CMS Energy$1,126 $1,114 $1,043 
Consumers
Depreciation and amortization
Electric utility$757 $772 $739 
Gas utility330 304 283 
Other reconciling items
Total depreciation and amortization – Consumers$1,088 $1,077 $1,023 
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Income from equity method investees1
NorthStar Clean Energy$$10 $
Total income from equity method investees – CMS Energy$$10 $
CMS Energy, including Consumers
Interest charges
Electric utility$218 $207 $217 
Gas utility116 104 102 
NorthStar Clean Energy
Other reconciling items182 183 179 
Total interest charges – CMS Energy$519 $500 $505 
Consumers
Interest charges
Electric utility$218 $207 $217 
Gas utility116 104 102 
Other reconciling items— 
Total interest charges – Consumers$335 $311 $320 
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility$109 $117 $115 
Gas utility32 39 58 
NorthStar Clean Energy(2)(4)
Other reconciling items(51)(59)(54)
Total income tax expense – CMS Energy$93 $95 $115 
Consumers
Income tax expense (benefit)
Electric utility$109 $117 $115 
Gas utility32 39 58 
Other reconciling items(1)— — 
Total income tax expense – Consumers$140 $156 $173 
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$567 $565 $554 
Gas utility378 302 261 
NorthStar Clean Energy34 23 36 
Other reconciling items(152)458 (96)
Total net income available to common stockholders – CMS Energy$827 $1,348 $755 
Consumers
Net income (loss) available to common stockholder
Electric utility$567 $565 $554 
Gas utility378 302 261 
Other reconciling items(2)(1)(1)
Total net income available to common stockholder – Consumers$943 $866 $814 
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2
$17,870 $18,147 $17,155 
Gas utility2
11,443 10,601 9,581 
NorthStar Clean Energy1,148 1,122 1,113 
Other reconciling items30 23 21 
Total plant, property, and equipment, gross – CMS Energy$30,491 $29,893 $27,870 
Consumers
Plant, property, and equipment, gross
Electric utility2
$17,870 $18,147 $17,155 
Gas utility2
11,443 10,601 9,581 
Other reconciling items29 23 21 
Total plant, property, and equipment, gross – Consumers$29,342 $28,771 $26,757 
CMS Energy, including Consumers
Investments in equity method investees1
NorthStar Clean Energy$71 $71 $70 
Total investments in equity method investees – CMS Energy$71 $71 $70 
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Total assets
Electric utility2
$17,907 $16,493 $15,829 
Gas utility2
11,873 10,517 9,429 
NorthStar Clean Energy1,464 1,312 1,276 
Other reconciling items109 431 3,132 
Total assets – CMS Energy$31,353 $28,753 $29,666 
Consumers
Total assets
Electric utility2
$17,968 $16,555 $15,893 
Gas utility2
11,918 10,564 9,477 
Other reconciling items30 21 29 
Total assets – Consumers$29,916 $27,140 $25,399 
CMS Energy, including Consumers
Capital expenditures3
Electric utility4
$1,265 $1,153 $1,281 
Gas utility4
1,008 989 885 
NorthStar Clean Energy113 17 108 
Other reconciling items
Total capital expenditures – CMS Energy$2,393 $2,161 $2,275 
Consumers
Capital expenditures3
Electric utility4
$1,265 $1,153 $1,281 
Gas utility4
1,008 989 885 
Other reconciling items
Total capital expenditures – Consumers$2,280 $2,144 $2,167 
1Consumers had no equity method investments.
2Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
3Amounts include assets placed under finance lease.
4Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
v3.22.4
Related Party Transactions - Consumers
12 Months Ended
Dec. 31, 2022
Consumers Energy Company  
Related Party Transaction [Line Items]  
Related Party Transactions - Consumers Related-Party Transactions—Consumers
Consumers enters into a number of transactions with related parties in the normal course of business. These transactions include but are not limited to:
purchases of electricity from affiliates of NorthStar Clean Energy
payments to and from CMS Energy related to parent company overhead costs
Transactions involving power supply purchases from certain affiliates of NorthStar Clean Energy are based on avoided costs under PURPA, state law, and competitive bidding. The payment of parent company overhead costs is based on the use of accepted industry allocation methodologies. These payments are for costs that occur in the normal course of business.
Presented in the following table is Consumers’ expense recorded from related-party transactions for the years ended December 31:
In Millions
DescriptionRelated Party202220212020
Purchases of capacity and energyAffiliates of NorthStar Clean Energy$76 $77 $64 
Amounts payable to related parties for purchased power and other services were $20 million at December 31, 2022 and $22 million at December 31, 2021. Accounts receivable from related parties were $8 million at December 31, 2022 and $7 million at December 31, 2021.
CMS Energy has a demand note payable to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. The portion of the demand note attributable to Consumers was recorded as a note receivable – related party on Consumers’ consolidated balance sheets at December 31, 2022 and 2021.
Consumers has a natural gas transportation agreement with a subsidiary of CMS Energy that extends through 2038, related to a pipeline owned by Consumers. For additional details about the agreement, see Note 8, Leases.
In June 2021, Consumers entered into an agreement with DIG, CMS Generation Michigan Power, and CMS ERM to purchase NorthStar Clean Energy’s three natural gas-fueled generating units for $515 million, subject to certain adjustments. Consumers had proposed purchasing these generating units as part of its 2021 IRP. However, in accordance with the terms of the settlement agreement of its 2021 IRP, which was approved by the MPSC in June 2022, Consumers will not purchase these generating units.
In December 2022, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million. For additional details about the agreement, see Note 4, Financings and Capitalization
v3.22.4
Variable Interest Entities
12 Months Ended
Dec. 31, 2022
Variable Interest Entities [Abstract]  
Variable Interest Entities Variable Interest Entities
In June 2022, NorthStar Clean Energy 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 100‑MW wind generation project in Paulding County, Ohio. NorthStar Clean Energy retained a Class B membership interest in NWO Holdco.
NorthStar Clean Energy has a 51‑percent ownership interest in Aviator Wind Equity Holdings, which holds a Class B membership interest in Aviator Wind, the holding company of a 525‑MW wind generation project in Coke County, Texas. The Class A membership interest in Aviator Wind is held by a tax equity investor.
Earnings, tax attributes, and cash flows generated by 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, NorthStar Clean Energy allocates the entities’ income (loss) among the investors by applying the hypothetical liquidation at book value method. This method calculates each investor’s earnings based on a hypothetical liquidation of the entities at the net book value of underlying assets as of the balance sheet date. The liquidation tax gain (loss) is allocated to each investor’s capital account, resulting in income (loss) equal to the period change in the investor’s capital account balance.
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, NorthStar Clean Energy manages and controls the operating activities of NWO Holdco and Aviator Wind Equity Holdings (and, thereby, Aviator Wind). As a result, NorthStar Clean Energy is the primary beneficiary, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies. NorthStar Clean Energy consolidates 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
December 3120222021
Current
Cash and cash equivalents$28 $21 
Restricted cash and cash equivalents— 
Accounts receivable
Prepayments and other current assets
Non-current
Plant, property, and equipment, net825 856 
Total assets1
$863 $883 
Current
Accounts payable$15 $17 
Other current liabilities— 
Non-current
Asset retirement obligations24 23 
Other non-current liabilities— 
Total liabilities$39 $46 
1Assets may be used only to meet VIEs’ obligations and commitments.
NorthStar Clean Energy is obligated under certain indemnities that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. For additional details on these indemnity obligations, see Note 3, Contingencies and Commitments—Guarantees.
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’s maximum risk exposure to these partnerships is generally limited to its investment in the partnerships, which is included in investments on its consolidated balance sheets in the amount of $71 million at December 31, 2022 and 2021.
v3.22.4
Exit Activities and Discontinued Operations
12 Months Ended
Dec. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Exit Activities and Discontinued Operations Exit Activities and Discontinued Operations
Exit Activities: Under its Clean Energy Plan, Consumers will 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 is providing a retention incentive program to ensure necessary staffing at the J.H. Campbell generating complex through retirement. Based on the number of employees that have chosen 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 year ended December 31, 2022. This amount was recorded in other non-current liabilities on its consolidated balance sheets at December 31, 2022. The 2021 IRP provides deferred accounting treatment for the retention and severance costs recognized during 2022; deferral of costs beyond 2022 was approved as part of the 2022 electric rate case settlement.
As of December 31, 2022, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $11 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 $20 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
Years Ended December 3120222021
Retention benefit liability at beginning of period$14 $11 
Costs deferred as a regulatory asset
24 
Costs incurred and capitalized— 
Costs paid or settled(17)(5)
Retention benefit liability at the end of the period1
$21 $14 
1Includes current portion of other liabilities of $13 million at December 31, 2022 and $5 million at December 31, 2021.
Discontinued Operations: In October 2021, EnerBank was acquired by Regions Bank. CMS Energy received proceeds of over $1.0 billion from the transaction and recognized a pre-tax gain of $657 million in 2021. In March 2022, CMS Energy received $6 million of additional proceeds as the result of a post-closing adjustment. Net of related transaction costs, CMS Energy recognized a pre-tax gain of $5 million during 2022.
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 year ended December 31, 2021. The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Years Ended December 31202220212020
Operating revenue$— $209 $262 
Expenses
Operating expenses— 60 130 
Interest expense— 34 56 
Income before income taxes$— $115 $76 
Gain on sale657 — 
Income from discontinued operations before income taxes$$772 $76 
Income tax expense170 18 
Income from discontinued operations, net of tax$$602 $58 
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 will 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 is providing a retention incentive program to ensure necessary staffing at the J.H. Campbell generating complex through retirement. Based on the number of employees that have chosen 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 year ended December 31, 2022. This amount was recorded in other non-current liabilities on its consolidated balance sheets at December 31, 2022. The 2021 IRP provides deferred accounting treatment for the retention and severance costs recognized during 2022; deferral of costs beyond 2022 was approved as part of the 2022 electric rate case settlement.
As of December 31, 2022, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $11 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 $20 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
Years Ended December 3120222021
Retention benefit liability at beginning of period$14 $11 
Costs deferred as a regulatory asset
24 
Costs incurred and capitalized— 
Costs paid or settled(17)(5)
Retention benefit liability at the end of the period1
$21 $14 
1Includes current portion of other liabilities of $13 million at December 31, 2022 and $5 million at December 31, 2021.
Discontinued Operations: In October 2021, EnerBank was acquired by Regions Bank. CMS Energy received proceeds of over $1.0 billion from the transaction and recognized a pre-tax gain of $657 million in 2021. In March 2022, CMS Energy received $6 million of additional proceeds as the result of a post-closing adjustment. Net of related transaction costs, CMS Energy recognized a pre-tax gain of $5 million during 2022.
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 year ended December 31, 2021. The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Years Ended December 31202220212020
Operating revenue$— $209 $262 
Expenses
Operating expenses— 60 130 
Interest expense— 34 56 
Income before income taxes$— $115 $76 
Gain on sale657 — 
Income from discontinued operations before income taxes$$772 $76 
Income tax expense170 18 
Income from discontinued operations, net of tax$$602 $58 
v3.22.4
Schedule I - Condensed Financial Information of Registrant
12 Months Ended
Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract]  
Schedule I - Condensed Financial Information of Registrant
Condensed Statements of Income
In Millions
Years Ended December 31202220212020
Operating Expenses
Other operating expenses$(7)$(7)$(6)
Total operating expenses(7)(7)(6)
Operating Loss(7)(7)(6)
Other Income (Expense)
Equity earnings of subsidiaries980 1,482 909 
Nonoperating retirement benefits, net(1)(1)(1)
Interest income— — 
Interest income - intercompany
Other income
Other expense(1)— (19)
Total other income983 1,483 891 
Interest Charges
Interest on long-term debt181 183 178 
Intercompany interest expense and other
Total interest charges189 190 185 
Income Before Income Taxes787 1,286 700 
Income Tax Benefit(50)(60)(55)
Income From Continuing Operations837 1,346 755 
Income From Discontinued Operations, Net of Tax of $—, $(5), and $—
— — 
Net Income Attributable to CMS Energy837 1,353 755 
Preferred Stock Dividends10 — 
Net Income Available to Common Stockholders$827 $1,348 $755 
The accompanying notes are an integral part of these statements.
CMS Energy—Parent Company
Condensed Statements of Cash Flows
In Millions
Years Ended December 31202220212020
Cash Flows from Operating Activities
Net cash provided by operating activities$565 $1,549 $507 
Cash Flows from Investing Activities
Investment in subsidiaries(796)(581)(657)
Decrease (increase) in notes receivable – intercompany286 (83)(307)
Net cash used in investing activities(510)(664)(964)
Cash Flows from Financing Activities
Proceeds from issuance of debt— — 1,225 
Issuance of common stock69 26 253 
Issuance of preferred stock— 224 — 
Retirement of long-term debt— (200)(425)
Debt prepayment costs— — (16)
Payment of dividends on common and preferred stock(544)(507)(465)
Debt issuance costs and financing fees(11)(10)(10)
Change in notes payable – intercompany77 (28)(105)
Net cash provided by (used in) financing activities(409)(495)457 
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts(354)390 — 
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period390 — — 
Cash and Cash Equivalents, Including Restricted Amounts, End of Period$36 $390 $— 
The accompanying notes are an integral part of these statements.
CMS Energy—Parent Company
Condensed Balance Sheets
ASSETS
In Millions
December 3120222021
Current Assets
Cash and cash equivalents$36 $390 
Notes and accrued interest receivable – intercompany107 463 
Accounts receivable – intercompany and related parties
Accrued taxes45 — 
Prepayments and other current assets
Total current assets197 859 
Other Non‑current Assets
Deferred income taxes105 147 
Investments in subsidiaries10,881 9,870 
Other investments
Other11 
Total other non‑current assets11,003 10,031 
Total Assets$11,200 $10,890 
LIABILITIES AND EQUITY
In Millions
December 3120222021
Current Liabilities
Accounts and notes payable – intercompany$74 $61 
Accrued interest, including intercompany33 33 
Accrued taxes— 83 
Other current liabilities
Total current liabilities116 185 
Non‑current Liabilities
Long-term debt3,930 3,928 
Notes payable – intercompany109 112 
Postretirement benefits15 19 
Other non‑current liabilities15 15 
Total non‑current liabilities4,069 4,074 
Equity
Common stockholders’ equity6,791 6,407 
Preferred stock224 224 
Total equity7,015 6,631 
Total Liabilities and Equity$11,200 $10,890 
The accompanying notes are an integral part of these statements.
Basis of PresentationCMS Energy’s condensed financial statements have been prepared on a parent-only basis. In accordance with Rule 12-04 of Regulation S-X, these parent-only financial statements do not include all of the information and notes required by GAAP for annual financial statements, and therefore these parent-only financial statements and other information included should be read in conjunction with CMS Energy’s audited consolidated financial statements contained within Item 8. Financial Statements and Supplementary Data.Guarantees
CMS Energy has issued guarantees with a maximum potential obligation of $1.0 billion on behalf of some of its wholly owned subsidiaries and related parties. CMS Energy’s maximum potential obligation consists primarily of potential payments:
to third parties under certain commodity purchase and sales agreements entered into by CMS ERM and other subsidiaries of NorthStar Clean Energy
to third parties under a credit agreement entered into by a subsidiary of NorthStar Clean Energy
to tax equity investors that hold membership interests in certain VIEs held by NorthStar Clean Energy
to Regions Bank related to the sale of EnerBank
to EGLE on behalf of CMS Land and CMS Capital, for environmental remediation obligations at Bay Harbor
to the U.S. Department of Energy on behalf of Consumers, in connection with Consumers’ 2011 settlement agreement with the U.S. Department of Energy regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers
The expiry dates of these guarantees vary, depending upon contractual provisions or upon the statute of limitations under the relevant governing law.
v3.22.4
Schedule II - Valuation and Qualifying Accounts and Reserves
12 Months Ended
Dec. 31, 2022
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]  
Schedule II - Valuation and Qualifying Accounts and Reserves
CMS Energy Corporation
Years Ended December 31, 2022, 2021, and 2020
In Millions
DescriptionBalance at Beginning of PeriodCharged to Expense
Charged to Other Accounts
DeductionsBalance at End of Period
Allowance for uncollectible accounts1
2022$20 $50 $— $43 $27 
202129 22 — 31 20 
202020 33 — 24 29 
Deferred tax valuation allowance
2022$$— $— $— $
2021— — 
2020— — 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
Consumers Energy Company
Years Ended December 31, 2022, 2021, and 2020
In Millions
DescriptionBalance at Beginning of PeriodCharged to ExpenseCharged to Other AccountsDeductionsBalance at End of Period
Allowance for uncollectible accounts1
2022$20 $50 $— $43 $27 
202129 22 — 31 20 
202020 33 — 24 29 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
Consumers Energy Company  
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]  
Schedule II - Valuation and Qualifying Accounts and Reserves
CMS Energy Corporation
Years Ended December 31, 2022, 2021, and 2020
In Millions
DescriptionBalance at Beginning of PeriodCharged to Expense
Charged to Other Accounts
DeductionsBalance at End of Period
Allowance for uncollectible accounts1
2022$20 $50 $— $43 $27 
202129 22 — 31 20 
202020 33 — 24 29 
Deferred tax valuation allowance
2022$$— $— $— $
2021— — 
2020— — 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
Consumers Energy Company
Years Ended December 31, 2022, 2021, and 2020
In Millions
DescriptionBalance at Beginning of PeriodCharged to ExpenseCharged to Other AccountsDeductionsBalance at End of Period
Allowance for uncollectible accounts1
2022$20 $50 $— $43 $27 
202129 22 — 31 20 
202020 33 — 24 29 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
v3.22.4
Significant Accounting Policies (Policy)
12 Months Ended
Dec. 31, 2022
Significant Accounting Policies [Line Items]  
Principles of Consolidation Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, NorthStar Clean Energy, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances.
Use of Estimates Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates.
Cash and Cash Equivalents Cash and Cash Equivalents and Restricted Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Restricted Cash and Cash Equivalents Cash and Cash Equivalents and Restricted Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Contingencies Contingencies: CMS Energy and Consumers record estimated loss contingencies on their consolidated financial statements when it is probable that a loss has been incurred and when the amount of loss can be reasonably estimated. For environmental remediation projects in which the timing of estimated expenditures is considered reliably determinable, CMS Energy and Consumers record the liability at its net present value, using a discount rate equal to the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability. CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed.
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: Upon the issuance of long-term debt, CMS Energy and Consumers defer issuance costs, discounts, and premiums and amortize those amounts over the terms of the associated debt. Debt issuance costs are presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Upon the refinancing of long-term debt, Consumers, as a regulated entity, defers any remaining unamortized issuance costs, discounts, and premiums associated with the refinanced debt and amortizes those amounts over the term of the newly issued debt. For the non‑regulated portions of CMS Energy’s business, any remaining unamortized issuance costs, discounts, and premiums associated with extinguished debt are charged to earnings.
Derivative Instruments Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the
commodity at a contracted price. Most of these contracts are not subject to derivative accounting for one or more of the following reasons:
they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas)
they qualify for the normal purchases and sales exception
they cannot be net settled due in part to the absence of an active market for the commodity
Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives.
Additionally, CMS Energy uses interest rate swaps to manage its interest rate risk on certain long-term debt transactions.
CMS Energy and Consumers record derivative contracts that do not qualify for the normal purchases and sales exception at fair value on their consolidated balance sheets. At CMS Energy, if the derivative is accounted for as a cash flow hedge, unrealized gains and losses from changes in the fair value of the derivative are recognized in AOCI and subsequently recognized in earnings when the hedged transactions impact earnings. If the derivative is accounted for as a fair value hedge, changes in the fair value of the derivative and changes in the fair value of the hedged item due to the hedged risk are recognized in earnings. For the FTRs at Consumers, changes in fair value are deferred as regulatory assets or liabilities. For details regarding CMS Energy’s and Consumers’ derivative instruments recorded at fair value, see Note 5, Fair Value Measurements.
EPS EPS: CMS Energy calculates basic and diluted EPS using the weighted-average number of shares of common stock and dilutive potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted EPS, includes the effects of nonvested stock awards and forward equity sales. CMS Energy computes the effect on potential common stock using the treasury stock method. Diluted EPS excludes the impact of antidilutive securities, which are those securities resulting in an increase in EPS or a decrease in loss per share. For EPS computations, see Note 13, Earnings Per Share—CMS Energy.
Nonvested Stock Awards
CMS Energy’s nonvested stock awards are composed of participating and non‑participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the nonvested stock awards are considered participating securities. As such, the participating nonvested stock awards were included in the computation of basic EPS. The non‑participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non‑participating securities are also forfeited. Accordingly, the non‑participating awards and stock dividends were included in the computation of diluted EPS, but not in the computation of basic EPS.
Forward Equity Sale Contracts
CMS Energy has entered into forward equity sale contracts. These forward equity sale contracts are non‑participating securities. While the forward sale price in the forward equity sale contract is decreased on certain dates by certain predetermined amounts to reflect expected dividend payments, these price
adjustments were set upon inception of the agreement and the forward contract does not give the owner the right to participate in undistributed earnings. Accordingly, the forward equity sale contracts were included in the computation of diluted EPS, but not in the computation of basic EPS. For further details on the forward equity sale contracts, see Note 4, Financings and Capitalization.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur that indicate the carrying amount of an asset may not be recoverable or that there has been a decline in value that may be other than temporary.
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses.
Impairment of Equity Method Investments CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary.
Investment Tax Credits Investment Tax Credits: Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment. CMS Energy’s non‑regulated businesses use the deferral method of accounting for investment tax credits. Under the deferral method, the book basis of the associated assets is reduced by the amount of the credit, resulting in lower depreciation expense over the life of the assets. Furthermore, the tax basis of the assets is reduced by 50 percent of the related credit, resulting in a net deferred tax asset. CMS Energy recognizes the tax benefit of this basis difference as a reduction to income tax expense in the year in which the plant reaches commercial operation.
Inventory - Gas and Coal Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets.
Inventory - RECs and Emission Allowances CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. CMS Energy and Consumers classify these amounts within other assets on their consolidated balance sheets.
Inventory - Impairment CMS Energy and Consumers evaluate inventory for impairment as required to ensure that its carrying value does not exceed the lower of cost or net realizable value.
MISO Transactions MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements.
Property Taxes Property Taxes: Property taxes are based on the taxable value of CMS Energy’s and Consumers’ real and personal property assessed by local taxing authorities. CMS Energy and Consumers record property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of CMS Energy’s and Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
Reclassifications Reclassifications: CMS Energy and Consumers have reclassified certain prior period amounts to conform to the presentation in the present period. The most significant of these reclassifications is related to CMS Energy’s sale of EnerBank to Regions Bank in October 2021. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the years ended December 31, 2021 and 2020. For information regarding the sale of EnerBank, see Note 19, Exit Activities and Discontinued Operations.CMS Energy and Consumers also reclassified certain prior period amounts relating to postretirement benefits. The asset balances for postretirement benefits are presented discretely within other non-current assets on CMS Energy’s and Consumers’ consolidated balance sheets for the years ended December 31, 2022 and 2021.
Renewable Energy Grant Renewable Energy Grant: In 2013, Consumers received a renewable energy cash grant for Lake Winds® Energy Park under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Upon receipt of the grant, Consumers recorded a regulatory liability, which Consumers is amortizing over the life of Lake Winds® Energy Park. Consumers presents the amortization as a reduction to maintenance and other operating expenses on its consolidated statements of income. Consumers recorded the deferred income taxes related to the grant as a reduction of the book basis of Lake Winds® Energy Park.
Capitalization Capitalization: CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general ratemaking process.Software: CMS Energy and Consumers capitalize the costs to purchase and develop internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware.
AFUDC AFUDC: Consumers capitalizes AFUDC on regulated major construction projects. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset.
Plant Retirement and Abandonment With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability.
Planned Major Maintenance Activities CMS Energy and Consumers record property repairs and minor property replacement as maintenance expense. CMS Energy and Consumers record planned major maintenance activities as operating expense unless the cost represents the acquisition of additional long-lived assets or the replacement of an existing long-lived asset.
Lessee
Lessee
CMS Energy and Consumers lease various assets from third parties, including coal-carrying railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for several of their PPAs as leases.
CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their consolidated balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and service vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term.
CMS Energy and Consumers include future payments for all renewal options, fair market value extensions, and buyout provisions reasonably certain of exercise in their measurement of lease right-of-use assets and lease liabilities. In addition, certain leases for service vehicles contain end-of-lease adjustment clauses based on proceeds received from the sale or disposition of the vehicles. CMS Energy and Consumers also include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their coal-carrying railcar leases.
Most of Consumers’ PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a finance lease.
Asset Retirement Obligations
CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities associated with the closure of certain gas wells that have an indeterminate life. CMS Energy and Consumers have not recorded liabilities for assets that have immaterial cumulative disposal costs, such as substation batteries.
CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers.
Retirement Benefits - Pension The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2022 and 2021 and improvement scale MP-2020 for 2020. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scales MP-2021 for 2022, MP-2020 for 2021, and MP-2019 for 2020.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
4CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers
considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 6.50 percent in 2022. The actual return (loss) on the assets of the DB Pension Plans was (15.9) percent in 2022, 12.0 percent in 2021, and 13.6 percent in 2020.
CMS Energy and Consumers amortize net gains and losses in excess of ten percent of the greater of the PBO or the MRV over the average remaining service period for DB Pension Plan A and the OPEB Plan and over the average remaining life expectancy of participants for DB Pension Plan B. For DB Pension Plan A, the estimated period of amortization of gains and losses was eight years for the years ended December 31, 2022, 2021, and 2020. For DB Pension Plan B, the estimated period of amortization of gains and losses was 18 years for the years ended December 31, 2022 and 2021, and 19 years for the year ended December 31, 2020. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2022, 2021, and 2020.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for DB Pension Plan A in 2020. The estimated period of amortization of these new prior service costs is eight years.
CMS Energy and Consumers determine the MRV for the assets of the DB Pension Plans as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five-year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date.
Retirement Benefits - Nonpension The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2022 and 2021 and improvement scale MP-2020 for 2020. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scales MP-2021 for 2022, MP-2020 for 2021, and MP-2019 for 2020.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
4CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers
considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 6.50 percent in 2022. The actual return (loss) on the assets of the DB Pension Plans was (15.9) percent in 2022, 12.0 percent in 2021, and 13.6 percent in 2020.
CMS Energy and Consumers amortize net gains and losses in excess of ten percent of the greater of the PBO or the MRV over the average remaining service period for DB Pension Plan A and the OPEB Plan and over the average remaining life expectancy of participants for DB Pension Plan B. For DB Pension Plan A, the estimated period of amortization of gains and losses was eight years for the years ended December 31, 2022, 2021, and 2020. For DB Pension Plan B, the estimated period of amortization of gains and losses was 18 years for the years ended December 31, 2022 and 2021, and 19 years for the year ended December 31, 2020. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2022, 2021, and 2020.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for DB Pension Plan A in 2020. The estimated period of amortization of these new prior service costs is eight years.
CMS Energy and Consumers determine the MRV for the assets of the DB Pension Plans as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five-year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date.
Income taxes CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement.
Accounts Receivable Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
Consolidation, Variable Interest Entity 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, NorthStar Clean Energy manages and controls the operating activities of NWO Holdco and Aviator Wind Equity Holdings (and, thereby, Aviator Wind). As a result, NorthStar Clean Energy is the primary beneficiary, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies.CMS Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While CMS Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships.
Consumers Energy Company  
Significant Accounting Policies [Line Items]  
Principles of Consolidation Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, NorthStar Clean Energy, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances.
Use of Estimates Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates.
Cash and Cash Equivalents Cash and Cash Equivalents and Restricted Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Restricted Cash and Cash Equivalents Cash and Cash Equivalents and Restricted Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Contingencies Contingencies: CMS Energy and Consumers record estimated loss contingencies on their consolidated financial statements when it is probable that a loss has been incurred and when the amount of loss can be reasonably estimated. For environmental remediation projects in which the timing of estimated expenditures is considered reliably determinable, CMS Energy and Consumers record the liability at its net present value, using a discount rate equal to the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability. CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed.
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: Upon the issuance of long-term debt, CMS Energy and Consumers defer issuance costs, discounts, and premiums and amortize those amounts over the terms of the associated debt. Debt issuance costs are presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Upon the refinancing of long-term debt, Consumers, as a regulated entity, defers any remaining unamortized issuance costs, discounts, and premiums associated with the refinanced debt and amortizes those amounts over the term of the newly issued debt. For the non‑regulated portions of CMS Energy’s business, any remaining unamortized issuance costs, discounts, and premiums associated with extinguished debt are charged to earnings.
Derivative Instruments Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the
commodity at a contracted price. Most of these contracts are not subject to derivative accounting for one or more of the following reasons:
they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas)
they qualify for the normal purchases and sales exception
they cannot be net settled due in part to the absence of an active market for the commodity
Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives.
Additionally, CMS Energy uses interest rate swaps to manage its interest rate risk on certain long-term debt transactions.
CMS Energy and Consumers record derivative contracts that do not qualify for the normal purchases and sales exception at fair value on their consolidated balance sheets. At CMS Energy, if the derivative is accounted for as a cash flow hedge, unrealized gains and losses from changes in the fair value of the derivative are recognized in AOCI and subsequently recognized in earnings when the hedged transactions impact earnings. If the derivative is accounted for as a fair value hedge, changes in the fair value of the derivative and changes in the fair value of the hedged item due to the hedged risk are recognized in earnings. For the FTRs at Consumers, changes in fair value are deferred as regulatory assets or liabilities. For details regarding CMS Energy’s and Consumers’ derivative instruments recorded at fair value, see Note 5, Fair Value Measurements.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur that indicate the carrying amount of an asset may not be recoverable or that there has been a decline in value that may be other than temporary.
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses.
Investment Tax Credits Investment Tax Credits: Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment. CMS Energy’s non‑regulated businesses use the deferral method of accounting for investment tax credits. Under the deferral method, the book basis of the associated assets is reduced by the amount of the credit, resulting in lower depreciation expense over the life of the assets. Furthermore, the tax basis of the assets is reduced by 50 percent of the related credit, resulting in a net deferred tax asset. CMS Energy recognizes the tax benefit of this basis difference as a reduction to income tax expense in the year in which the plant reaches commercial operation.
Inventory - Gas and Coal Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets.
Inventory - RECs and Emission Allowances CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. CMS Energy and Consumers classify these amounts within other assets on their consolidated balance sheets.
Inventory - Impairment CMS Energy and Consumers evaluate inventory for impairment as required to ensure that its carrying value does not exceed the lower of cost or net realizable value.
MISO Transactions MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements.
Property Taxes Property Taxes: Property taxes are based on the taxable value of CMS Energy’s and Consumers’ real and personal property assessed by local taxing authorities. CMS Energy and Consumers record property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of CMS Energy’s and Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
Reclassifications Reclassifications: CMS Energy and Consumers have reclassified certain prior period amounts to conform to the presentation in the present period. The most significant of these reclassifications is related to CMS Energy’s sale of EnerBank to Regions Bank in October 2021. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the years ended December 31, 2021 and 2020. For information regarding the sale of EnerBank, see Note 19, Exit Activities and Discontinued Operations.CMS Energy and Consumers also reclassified certain prior period amounts relating to postretirement benefits. The asset balances for postretirement benefits are presented discretely within other non-current assets on CMS Energy’s and Consumers’ consolidated balance sheets for the years ended December 31, 2022 and 2021.
Renewable Energy Grant Renewable Energy Grant: In 2013, Consumers received a renewable energy cash grant for Lake Winds® Energy Park under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Upon receipt of the grant, Consumers recorded a regulatory liability, which Consumers is amortizing over the life of Lake Winds® Energy Park. Consumers presents the amortization as a reduction to maintenance and other operating expenses on its consolidated statements of income. Consumers recorded the deferred income taxes related to the grant as a reduction of the book basis of Lake Winds® Energy Park.
Capitalization Capitalization: CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general ratemaking process.Software: CMS Energy and Consumers capitalize the costs to purchase and develop internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware.
AFUDC AFUDC: Consumers capitalizes AFUDC on regulated major construction projects. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset.
Plant Retirement and Abandonment With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability.
Regulatory Depreciation and Amortization Consumers depreciates utility property on an asset-group basis, in which it applies a single MPSC-approved depreciation rate to the gross investment in a particular class of property within the electric and gas segments. Consumers performs depreciation studies periodically to determine appropriate group lives.
Planned Major Maintenance Activities CMS Energy and Consumers record property repairs and minor property replacement as maintenance expense. CMS Energy and Consumers record planned major maintenance activities as operating expense unless the cost represents the acquisition of additional long-lived assets or the replacement of an existing long-lived asset.
Lessee
Lessee
CMS Energy and Consumers lease various assets from third parties, including coal-carrying railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for several of their PPAs as leases.
CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their consolidated balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and service vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term.
CMS Energy and Consumers include future payments for all renewal options, fair market value extensions, and buyout provisions reasonably certain of exercise in their measurement of lease right-of-use assets and lease liabilities. In addition, certain leases for service vehicles contain end-of-lease adjustment clauses based on proceeds received from the sale or disposition of the vehicles. CMS Energy and Consumers also include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their coal-carrying railcar leases.
Most of Consumers’ PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a finance lease.
Asset Retirement Obligations
CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities associated with the closure of certain gas wells that have an indeterminate life. CMS Energy and Consumers have not recorded liabilities for assets that have immaterial cumulative disposal costs, such as substation batteries.
CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers.
Retirement Benefits - Pension The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2022 and 2021 and improvement scale MP-2020 for 2020. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scales MP-2021 for 2022, MP-2020 for 2021, and MP-2019 for 2020.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
4CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers
considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 6.50 percent in 2022. The actual return (loss) on the assets of the DB Pension Plans was (15.9) percent in 2022, 12.0 percent in 2021, and 13.6 percent in 2020.
CMS Energy and Consumers amortize net gains and losses in excess of ten percent of the greater of the PBO or the MRV over the average remaining service period for DB Pension Plan A and the OPEB Plan and over the average remaining life expectancy of participants for DB Pension Plan B. For DB Pension Plan A, the estimated period of amortization of gains and losses was eight years for the years ended December 31, 2022, 2021, and 2020. For DB Pension Plan B, the estimated period of amortization of gains and losses was 18 years for the years ended December 31, 2022 and 2021, and 19 years for the year ended December 31, 2020. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2022, 2021, and 2020.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for DB Pension Plan A in 2020. The estimated period of amortization of these new prior service costs is eight years.
CMS Energy and Consumers determine the MRV for the assets of the DB Pension Plans as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five-year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date.
Retirement Benefits - Nonpension The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2022 and 2021 and improvement scale MP-2020 for 2020. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scales MP-2021 for 2022, MP-2020 for 2021, and MP-2019 for 2020.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
4CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers
considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 6.50 percent in 2022. The actual return (loss) on the assets of the DB Pension Plans was (15.9) percent in 2022, 12.0 percent in 2021, and 13.6 percent in 2020.
CMS Energy and Consumers amortize net gains and losses in excess of ten percent of the greater of the PBO or the MRV over the average remaining service period for DB Pension Plan A and the OPEB Plan and over the average remaining life expectancy of participants for DB Pension Plan B. For DB Pension Plan A, the estimated period of amortization of gains and losses was eight years for the years ended December 31, 2022, 2021, and 2020. For DB Pension Plan B, the estimated period of amortization of gains and losses was 18 years for the years ended December 31, 2022 and 2021, and 19 years for the year ended December 31, 2020. For the OPEB Plan, the estimated amortization period was nine years for the years ended December 31, 2022, 2021, and 2020.
Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs for DB Pension Plan A in 2020. The estimated period of amortization of these new prior service costs is eight years.
CMS Energy and Consumers determine the MRV for the assets of the DB Pension Plans as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five-year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date.
Income taxes CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement.
Consumers Utility Revenue
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled
product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Accounts Receivable Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
Unbilled Revenues Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class.
Alternative-Revenue Programs
AlternativeRevenue Programs: Consumers accounts for its energy waste reduction incentive mechanism and financial compensation mechanism as alternative-revenue programs. Consumers recognizes revenue related to the energy waste reduction incentive as soon as energy savings exceed the annual targets established by the MPSC and recognizes revenue related to the financial compensation mechanism as payments are made on MPSC-approved PPAs. For additional information on these mechanisms, see Note 2, Regulatory Matters.
Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather‑normalized, non‑fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative‑revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
v3.22.4
Regulatory Matters (Tables) - Consumers Energy Company
12 Months Ended
Dec. 31, 2022
Public Utility, Property, Plant and Equipment [Line Items]  
Schedule of Regulatory Assets
Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets:
In Millions
December 31End of Recovery or Refund Period20222021
Regulatory assets
Current
Energy waste reduction plan incentive1
2023$47 $42 
Other202310 
Total current regulatory assets$57 $46 
Non-current
Costs of coal-fueled electric generating units to be retired2
various$1,960 $678 
Postretirement benefits3
various856 837 
ARO4
various281 247 
Securitized costs2
2029165 193 
MGP sites4
various108 112 
Unamortized loss on reacquired debt4
various100 104 
Energy waste reduction plan incentive1
202455 46 
Retention incentive program4
various31 
Demand response program4
various12 10 
Energy waste reduction plan4
various10 13 
Othervarious17 12 
Total non-current regulatory assets$3,595 $2,259 
Total regulatory assets$3,652 $2,305 
Regulatory liabilities
Current
Income taxes, net2023$48 $138 
Reserve for customer refunds202347 
Other2023
Total current regulatory liabilities$104 $146 
Non-current
Cost of removalvarious$2,426 $2,375 
Income taxes, netvarious1,267 1,297 
Renewable energy grant204345 47 
Renewable energy plan202832 13 
Demand response programvarious12 
Energy waste reduction planvarious— 
Postretirement benefitsvarious— 54 
Othervarious
Total non-current regulatory liabilities$3,796 $3,802 
Total regulatory liabilities$3,900 $3,948 
1These regulatory assets have arisen from an alternative revenue program and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return.
2The MPSC has provided a specific return on these regulatory assets.
3This regulatory asset is included in rate base, thereby providing a return.
4These regulatory assets represent incurred costs for which the MPSC has provided recovery without a return on investment.
Schedule of Regulatory Liabilities
Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets:
In Millions
December 31End of Recovery or Refund Period20222021
Regulatory assets
Current
Energy waste reduction plan incentive1
2023$47 $42 
Other202310 
Total current regulatory assets$57 $46 
Non-current
Costs of coal-fueled electric generating units to be retired2
various$1,960 $678 
Postretirement benefits3
various856 837 
ARO4
various281 247 
Securitized costs2
2029165 193 
MGP sites4
various108 112 
Unamortized loss on reacquired debt4
various100 104 
Energy waste reduction plan incentive1
202455 46 
Retention incentive program4
various31 
Demand response program4
various12 10 
Energy waste reduction plan4
various10 13 
Othervarious17 12 
Total non-current regulatory assets$3,595 $2,259 
Total regulatory assets$3,652 $2,305 
Regulatory liabilities
Current
Income taxes, net2023$48 $138 
Reserve for customer refunds202347 
Other2023
Total current regulatory liabilities$104 $146 
Non-current
Cost of removalvarious$2,426 $2,375 
Income taxes, netvarious1,267 1,297 
Renewable energy grant204345 47 
Renewable energy plan202832 13 
Demand response programvarious12 
Energy waste reduction planvarious— 
Postretirement benefitsvarious— 54 
Othervarious
Total non-current regulatory liabilities$3,796 $3,802 
Total regulatory liabilities$3,900 $3,948 
1These regulatory assets have arisen from an alternative revenue program and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return.
2The MPSC has provided a specific return on these regulatory assets.
3This regulatory asset is included in rate base, thereby providing a return.4These regulatory assets represent incurred costs for which the MPSC has provided recovery without a return on investment
Schedule of Assets and Liabilities for PSCR and GCR Underrecoveries and Overrecoveries
Presented in the following table are the assets and liabilities for PSCR and GCR underrecoveries and overrecoveries reflected on Consumers’ consolidated balance sheets:
In Millions
December 3120222021
Assets
PSCR underrecoveries$401 $— 
GCR underrecoveries25 
Accounts receivable and accrued revenue$409 $25 
Liabilities
PSCR overrecoveries$— $12 
Accrued rate refunds$— $12 
v3.22.4
Contingencies and Commitments (Tables)
12 Months Ended
Dec. 31, 2022
Site Contingency [Line Items]  
Schedule of Remediation and Other Response Activity Costs by Year CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs in each of the next five years:
In Millions
20232024202520262027
CMS Energy
Long-term leachate disposal and operating and maintenance costs$$$$$
Summary of Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2022:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousindefinite$325 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite226 
Guarantee3
2011indefinite30 — 
Consumers
Guarantee3
2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in NWO Holdco and Aviator Wind to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on NorthStar Clean Energy’s ownership interest in NWO Holdco and Aviator Wind, see Note 18, Variable Interest Entities.
2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes 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 19, Exit Activities and Discontinued Operations.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Schedule of Contractual Purchase Obligations Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2022 for each of the periods shown:
In Millions
Payments Due
Total20232024202520262027Beyond 2027
CMS Energy, including Consumers
Total PPAs$8,479 $652 $792 $809 $812 $847 $4,567 
Other4,042 2,513 903 335 41 31 219 
Total purchase obligations$12,521 $3,165 $1,695 $1,144 $853 $878 $4,786 
Consumers
PPAs
MCV PPA$2,317 $286 $369 $357 $384 $406 $515 
Related-party PPAs320 76 76 53 35 38 42 
Other PPAs5,842 290 347 399 393 403 4,010 
Total PPAs$8,479 $652 $792 $809 $812 $847 $4,567 
Other3,422 2,394 836 177 11 
Total purchase obligations$11,901 $3,046 $1,628 $986 $823 $848 $4,570 
Consumers Energy Company  
Site Contingency [Line Items]  
Schedule of Remediation and Other Response Activity Costs by Year Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years:
In Millions
20232024202520262027
Consumers
Remediation and other response activity costs$$11 $31 $$
Summary of Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2022:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousindefinite$325 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite226 
Guarantee3
2011indefinite30 — 
Consumers
Guarantee3
2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in NWO Holdco and Aviator Wind to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on NorthStar Clean Energy’s ownership interest in NWO Holdco and Aviator Wind, see Note 18, Variable Interest Entities.
2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes 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 19, Exit Activities and Discontinued Operations.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Schedule of Contractual Purchase Obligations Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2022 for each of the periods shown:
In Millions
Payments Due
Total20232024202520262027Beyond 2027
CMS Energy, including Consumers
Total PPAs$8,479 $652 $792 $809 $812 $847 $4,567 
Other4,042 2,513 903 335 41 31 219 
Total purchase obligations$12,521 $3,165 $1,695 $1,144 $853 $878 $4,786 
Consumers
PPAs
MCV PPA$2,317 $286 $369 $357 $384 $406 $515 
Related-party PPAs320 76 76 53 35 38 42 
Other PPAs5,842 290 347 399 393 403 4,010 
Total PPAs$8,479 $652 $792 $809 $812 $847 $4,567 
Other3,422 2,394 836 177 11 
Total purchase obligations$11,901 $3,046 $1,628 $986 $823 $848 $4,570 
v3.22.4
Financings and Capitalization (Tables)
12 Months Ended
Dec. 31, 2022
Debt Instrument [Line Items]  
Summary of Long-Term Debt
Presented in the following table is CMS Energy’s long-term debt at December 31:
In Millions
Interest Rate
(%)
Maturity20222021
CMS Energy, including Consumers
CMS Energy, parent only
Senior notes3.875 2024$250 $250 
3.600 2025250 250 
3.000 2026300 300 
2.950 2027275 275 
3.450 2027350 350 
4.700 2043250 250 
4.875 2044300 300 
$1,975 $1,975 
Junior subordinated notes1
4.750 
2
2050500 500 
3.750 
3
2050400 400 
5.625 2078200 200 
5.875 2078280 280 
5.875 2079630 630 
$2,010 $2,010 
Total CMS Energy, parent only$3,985 $3,985 
Consumers10,277 8,505 
NorthStar Clean Energy, including subsidiaries
Term loan facilityvariable2025— 78 
Term loan facilityvariable
4
2023100 — 
Total principal amount outstanding$14,362 $12,568 
Current amounts(1,090)(373)
Unamortized discounts(30)(31)
Unamortized issuance costs(120)(118)
Total long-term debt$13,122 $12,046 
1These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.
2On June 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 4.116 percent.
3On December 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 2.900 percent
4Funds borrowed under this facility have an interest rate of one-month Term SOFR plus a spread of one percent. At December 31, 2022, the interest rate for the loan issued under this facility was 5.423 percent.
Schedule of Major Long-Term Debt Issuances and Retirements
Presented in the following table is a summary of major long-term debt retirements during 2022:
Principal
(In Millions)
Interest RateRetirement DateMaturity Date
NorthStar Clean Energy, including subsidiaries
Term loan facility$76 variableJune 2022October 2025
Schedule of Debt Maturities
Debt Maturities: At December 31, 2022, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20232024202520262027
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$— $250 $250 $300 $625 
Consumers
991 1,332 31 32 168 
NorthStar Clean Energy, including subsidiaries100 — — — — 
Total CMS Energy1
$1,091 $1,582 $281 $332 $793 
Consumers
Long-term debt$991 $1,332 $31 $32 $168 
1    This amount excludes debt issuance costs, related to the term loan agreement of a subsidiary of NorthStar Clean Energy, of less than $1 million
Schedule of Revolving Credit Facilities The following credit facilities with banks were available at December 31, 2022:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
December 14, 20271
$550 $— $18 $532 
September 22, 2024
50 — 50 — 
NorthStar Clean Energy, including subsidiaries
September 25, 20252
$37 $— $37 $— 
Consumers3
December 14, 2027
$1,100 $— $29 $1,071 
November 18, 2024
250 — 27 223 
1There were no borrowings under this facility during the year ended December 31, 2022.
2This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 18, Variable Interest Entities.
3Obligations under these facilities are secured by first mortgage bonds of Consumers. There were no borrowings under these facilities during the year ended December 31, 2022.
Schedule of Forward Contracts
Presented in the following table are details of CMS Energy’s forward sales contracts under this program at December 31, 2022:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialDecember 31, 2022
August 3, 2022February 1, 20242,944,20767.59 67.83 
August 24, 2022February 26, 20241,677,93869.46 69.69 
August 29, 2022February 26, 20241,783,38868.18 68.38 
Schedule of Preferred Stock Presented in the following table are details of CMS Energy’s Series C preferred stock at December 31, 2022 and 2021:
Depositary Share Par Value Depositary Share Optional Redemption PriceNumber of Depositary Shares AuthorizedNumber of Depositary Shares Outstanding
Cumulative, redeemable perpetual$25 $25 9,200,000 9,200,000 
Consumers Energy Company  
Debt Instrument [Line Items]  
Summary of Long-Term Debt
Presented in the following table is Consumers’ long-term debt at December 31:
In Millions
Interest Rate
(%)
Maturity20222021
Consumers
First mortgage bonds
0.350 2023$300 $300 
3.375 2023325 325 
3.125 2024250 250 
3.190 202452 52 
3.680 2027100 100 
3.390 202735 35 
3.800 2028300 300 
3.600 2032350 — 
3.180 2032100 100 
5.800 2035175 175 
3.520 2037335 335 
4.010 2038215 215 
6.170 204050 50 
4.970 204050 50 
4.310 2042263 263 
3.950 2043425 425 
4.100 2045250 250 
3.250 2046450 450 
3.950 2047350 350 
4.050 2048550 550 
4.350 2049550 550 
3.750 2050300 300 
3.100 2050550 550 
3.500 2051575 575 
2.650 2052300 300 
4.200 2052450 — 
3.860 205250 50 
4.280 2057185 185 
2.500 2060525 525 
4.350 2064250 250 
variable
1
206976 76 
variable
1
2070134 134 
variable
1
2070127 127 
$8,997 $8,197 
Tax-exempt revenue bonds0.875 
2
203535 35 
1.800 
3
204975 75 
$110 $110 
Securitization bonds3.343 
4
2025-2029
5
170 198 
Term loan facilityvariable
6
20241,000 — 
Total principal amount outstanding$10,277 $8,505 
Current amounts(991)(365)
Unamortized discounts(27)(28)
Unamortized issuance costs(67)(62)
Total long-term debt$9,192 $8,050 
1The variable-rate bonds bear interest quarterly at a rate of three-month LIBOR minus 0.300 percent, subject to a zero-percent floor. At December 31, 2022, the interest rates were 4.469 percent for bonds due
September 2069, 4.375 percent for bonds due May 2070, and 3.484 percent for bonds due October 2070. The interest rate for all variable-rate bonds at December 31, 2021 was zero percent. The holders of these variable-rate bonds may put them to Consumers for redemption on certain dates prior to their stated maturity, including dates within one year of December 31, 2022.
2The interest rate on these tax-exempt revenue bonds will reset on October 8, 2026.
3The interest rate on these tax‑exempt revenue bonds will reset on October 1, 2024.
4The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2014 Securitization Funding, was 3.343 percent at December 31, 2022 and 3.290 percent at December 31, 2021.
5Principal and interest payments are made semiannually.
6Loans under this facility have an interest rate of one-month Term SOFR plus 0.650 percent. At December 31, 2022, the weighted-average interest rate for the loans issued under this facility was 4.975 percent at December 31, 2022.
Schedule of Major Long-Term Debt Issuances and Retirements Presented in the following table is a summary of major long-term debt issuances during 2022:
Principal
(In Millions)
Interest RateIssuance DateMaturity Date
NorthStar Clean Energy, including subsidiaries
Term loan facility1
$100 variableDecember 2022September 2023
Total NorthStar Clean Energy, including subsidiaries$100 
Consumers
Term loan facility2
$1,000 variableJuly 2022January 2024
First mortgage bonds350 3.600 %August 2022August 2032
First mortgage bonds 450 4.200 %August 2022September 2052
Total Consumers$1,800 
Total CMS Energy$1,900 
1    In December 2022, a subsidiary of NorthStar Clean Energy entered into a $185 million unsecured term loan credit agreement. Under this credit agreement, $100 million of loans have been issued as of December 31, 2022. In January 2023, an additional $30 million was borrowed under the unsecured term loan credit agreement.
2    In July 2022, Consumers entered into a delayed-draw $1.0 billion unsecured term loan credit agreement. Under this credit agreement, Consumers issued loans of $550 million in September 2022 and $450 million in November 2022. In January 2023, Consumers repaid $500 million of the term loan credit agreement.
Schedule of Debt Maturities
Debt Maturities: At December 31, 2022, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20232024202520262027
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$— $250 $250 $300 $625 
Consumers
991 1,332 31 32 168 
NorthStar Clean Energy, including subsidiaries100 — — — — 
Total CMS Energy1
$1,091 $1,582 $281 $332 $793 
Consumers
Long-term debt$991 $1,332 $31 $32 $168 
1    This amount excludes debt issuance costs, related to the term loan agreement of a subsidiary of NorthStar Clean Energy, of less than $1 million
Schedule of Revolving Credit Facilities The following credit facilities with banks were available at December 31, 2022:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
December 14, 20271
$550 $— $18 $532 
September 22, 2024
50 — 50 — 
NorthStar Clean Energy, including subsidiaries
September 25, 20252
$37 $— $37 $— 
Consumers3
December 14, 2027
$1,100 $— $29 $1,071 
November 18, 2024
250 — 27 223 
1There were no borrowings under this facility during the year ended December 31, 2022.
2This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 18, Variable Interest Entities.
3Obligations under these facilities are secured by first mortgage bonds of Consumers. There were no borrowings under these facilities during the year ended December 31, 2022.
Schedule of Preferred Stock Presented in the following table are details of Consumers’ preferred stock at December 31, 2022 and 2021:
Par ValueOptional Redemption PriceNumber of Shares AuthorizedNumber of Shares Outstanding
Cumulative, with no mandatory redemption
$100 $110 7,500,000 373,148 
v3.22.4
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Assets And Liabilities Measured At Fair Value On A Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
December 312022202120222021
Assets1
Restricted cash equivalents$18 $24 $17 $22 
Nonqualified deferred compensation plan assets24 27 18 21 
Derivative instruments
Total assets$44 $53 $37 $45 
Liabilities1
Nonqualified deferred compensation plan liabilities$24 $27 $18 $21 
Derivative instruments— — — 
Total liabilities$24 $34 $18 $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
December 312022202120222021
Assets1
Restricted cash equivalents$18 $24 $17 $22 
Nonqualified deferred compensation plan assets24 27 18 21 
Derivative instruments
Total assets$44 $53 $37 $45 
Liabilities1
Nonqualified deferred compensation plan liabilities$24 $27 $18 $21 
Derivative instruments— — — 
Total liabilities$24 $34 $18 $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.
Assets Reported at Fair Value on a Nonrecurring Basis
Presented in the following table are Consumers’ assets, by level within the fair value hierarchy, reported at fair value on a nonrecurring basis during the year ended December 31, 2021:
In Millions
Level 1Level 2Level 3Gains (Losses)
Assets held for sale$— $15 $— $(4)
v3.22.4
Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2022
Financial Instruments [Line Items]  
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
December 31, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $14 $14 $— $— $14 
Liabilities
Long-term debt2
14,212 12,384 987 8,741 2,656 12,419 13,800 1,189 10,656 1,955 
Long-term payables3
— — 31 32 — — 32 
Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $14 $14 $— $— $14 
Notes receivable – related party4
101 101 — — 101 104 104 — — 104 
Liabilities
Long-term debt5
10,183 8,728 — 6,172 2,556 8,415 9,410 — 7,455 1,955 
1Includes current portion of long-term accounts receivable and notes receivable of $7 million at December 31, 2022 and $9 million at December 31, 2021.
2Includes current portion of long-term debt of $1,090 million at December 31, 2022 and $373 million at December 31, 2021.
3Includes current portion of long-term payables of $2 million at December 31, 2022 and $23 million at December 31, 2021.
4Includes current portion of notes receivable – related party of $7 million at December 31, 2022 and 2021.
5Includes current portion of long-term debt of $991 million at December 31, 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 5, Fair Value Measurements.
In Millions
December 31, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $14 $14 $— $— $14 
Liabilities
Long-term debt2
14,212 12,384 987 8,741 2,656 12,419 13,800 1,189 10,656 1,955 
Long-term payables3
— — 31 32 — — 32 
Consumers
Assets
Long-term receivables1
$14 $14 $— $— $14 $14 $14 $— $— $14 
Notes receivable – related party4
101 101 — — 101 104 104 — — 104 
Liabilities
Long-term debt5
10,183 8,728 — 6,172 2,556 8,415 9,410 — 7,455 1,955 
1Includes current portion of long-term accounts receivable and notes receivable of $7 million at December 31, 2022 and $9 million at December 31, 2021.
2Includes current portion of long-term debt of $1,090 million at December 31, 2022 and $373 million at December 31, 2021.
3Includes current portion of long-term payables of $2 million at December 31, 2022 and $23 million at December 31, 2021.
4Includes current portion of notes receivable – related party of $7 million at December 31, 2022 and 2021.
5Includes current portion of long-term debt of $991 million at December 31, 2022 and $365 million at December 31, 2021.
v3.22.4
Plant, Property, and Equipment (Tables)
12 Months Ended
Dec. 31, 2022
Public Utility, Property, Plant and Equipment [Line Items]  
Schedule Of Property, Plant And Equipment
Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment:
In Millions
December 31Estimated
Depreciable
Life in Years
20222021
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 - 125
$29,342 $28,771 
NorthStar Clean Energy
Independent power production1
3 - 40
1,124 1,121 
Assets under finance leases2
24 — 
Other
3 - 5
Plant, property, and equipment, gross$30,491 $29,893 
Construction work in progress1,182 961 
Accumulated depreciation and amortization(8,960)(8,502)
Total plant, property, and equipment3
$22,713 $22,352 
Consumers
Plant, property, and equipment, gross
Electric
Generation
15 - 125
$5,780 $6,704 
Distribution
15 - 75
10,590 9,815 
Other
5 - 55
1,374 1,309 
Assets under finance leases2
126 319 
Gas
Distribution
20 - 85
6,951 6,338 
Transmission
17 - 75
2,440 2,319 
Underground storage facilities4
27 - 75
1,197 1,117 
Other
5 - 55
835 814 
Assets under finance leases2
20 13 
Other non-utility property
3 - 51
29 23 
Plant, property, and equipment, gross$29,342 $28,771 
Construction work in progress994 915 
Accumulated depreciation and amortization(8,791)(8,371)
Total plant, property, and equipment2
$21,545 $21,315 
1A portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 8, Leases.
2For information regarding the amortization terms of CMS Energy’s and Consumers’ assets under finance leases, see Note 8, Leases.
3Consumers’ plant additions were $2.3 billion for the year ended December 31, 2022 and $2.4 billion for the year ended December 31, 2021. Consumers’ plant retirements, which include the impact of disallowances and transfers to held for sale, were $290 million for the year ended December 31, 2022 and $361 million
for the year ended December 31, 2021. Consumers plans to retire the J.H. Campbell 1, 2, & 3 coal-fueled electric generating units in 2025. Accordingly, in 2022, Consumers removed from total plant, property, and equipment $1.3 billion, representing the remaining book value of the three units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 2, Regulatory Matters.
4Underground storage includes base natural gas of $26 million at December 31, 2022 and 2021. Base natural gas is not subject to depreciation.
Schedule of Finite-Lived Intangible Assets by Major Class Table Presented in the following table are details about Consumers’ intangible assets:
In Millions
DescriptionAmortization Life in YearsDecember 31, 2022December 31, 2021
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
Consumers
Software development
3 - 15
$846 $593 $840 $592 
Rights of way
50 - 85
218 61 211 60 
Franchises and consents
5 - 50
16 10 16 10 
Leasehold improvements
various2
Other intangiblesvarious25 16 26 16 
Total$1,114 $686 $1,102 $684 
1Consumers’ intangible asset additions were $116 million for the year ended December 31, 2022 and $88 million for the year ended December 31, 2021. Consumers’ intangible asset retirements were $104 million for the year ended December 31, 2022 and $91 million for the year ended December 31, 2021.
2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.
Public Utilities Property Plant and Equipment Schedule of Accumulated Depreciation and Amortization Table Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Utility plant assets$8,785 $8,366 
Non-utility plant assets175 136 
Consumers
Utility plant assets$8,785 $8,366 
Non-utility plant assets
Schedule Of Depreciation And Amortization
Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$990 $975 $901 
Amortization expense
Software103 108 112 
Other intangible assets
Securitized regulatory assets28 27 26 
Total depreciation and amortization expense$1,126 $1,114 $1,043 
Consumers
Depreciation expense – plant, property, and equipment$952 $938 $881 
Amortization expense
Software103 108 112 
Other intangible assets
Securitized regulatory assets28 27 26 
Total depreciation and amortization expense$1,088 $1,077 $1,023 
Schedule Of Estimated Amortization Expense For Intangibles
Presented in the following table is Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20232024202520262027
Consumers
Intangible asset amortization expense$96 $82 $80 $76 $64 
Consumers Energy Company  
Public Utility, Property, Plant and Equipment [Line Items]  
Schedule Of Property, Plant And Equipment
Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment:
In Millions
December 31Estimated
Depreciable
Life in Years
20222021
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 - 125
$29,342 $28,771 
NorthStar Clean Energy
Independent power production1
3 - 40
1,124 1,121 
Assets under finance leases2
24 — 
Other
3 - 5
Plant, property, and equipment, gross$30,491 $29,893 
Construction work in progress1,182 961 
Accumulated depreciation and amortization(8,960)(8,502)
Total plant, property, and equipment3
$22,713 $22,352 
Consumers
Plant, property, and equipment, gross
Electric
Generation
15 - 125
$5,780 $6,704 
Distribution
15 - 75
10,590 9,815 
Other
5 - 55
1,374 1,309 
Assets under finance leases2
126 319 
Gas
Distribution
20 - 85
6,951 6,338 
Transmission
17 - 75
2,440 2,319 
Underground storage facilities4
27 - 75
1,197 1,117 
Other
5 - 55
835 814 
Assets under finance leases2
20 13 
Other non-utility property
3 - 51
29 23 
Plant, property, and equipment, gross$29,342 $28,771 
Construction work in progress994 915 
Accumulated depreciation and amortization(8,791)(8,371)
Total plant, property, and equipment2
$21,545 $21,315 
1A portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 8, Leases.
2For information regarding the amortization terms of CMS Energy’s and Consumers’ assets under finance leases, see Note 8, Leases.
3Consumers’ plant additions were $2.3 billion for the year ended December 31, 2022 and $2.4 billion for the year ended December 31, 2021. Consumers’ plant retirements, which include the impact of disallowances and transfers to held for sale, were $290 million for the year ended December 31, 2022 and $361 million
for the year ended December 31, 2021. Consumers plans to retire the J.H. Campbell 1, 2, & 3 coal-fueled electric generating units in 2025. Accordingly, in 2022, Consumers removed from total plant, property, and equipment $1.3 billion, representing the remaining book value of the three units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 2, Regulatory Matters.
4Underground storage includes base natural gas of $26 million at December 31, 2022 and 2021. Base natural gas is not subject to depreciation.
Assets Under Finance Leases: Presented in the following table are further details about changes in CMS Energy’s and Consumers’ assets under finance leases:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Balance at beginning of period$332 $336 
Additions44 — 
Net retirements and other adjustments(206)(4)
Balance at end of period$170 $332 
Consumers
Balance at beginning of period$332 $336 
Additions20 — 
Net retirements and other adjustments(206)(4)
Balance at end of period$146 $332 
Schedule of Finite-Lived Intangible Assets by Major Class Table Presented in the following table are details about Consumers’ intangible assets:
In Millions
DescriptionAmortization Life in YearsDecember 31, 2022December 31, 2021
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
Consumers
Software development
3 - 15
$846 $593 $840 $592 
Rights of way
50 - 85
218 61 211 60 
Franchises and consents
5 - 50
16 10 16 10 
Leasehold improvements
various2
Other intangiblesvarious25 16 26 16 
Total$1,114 $686 $1,102 $684 
1Consumers’ intangible asset additions were $116 million for the year ended December 31, 2022 and $88 million for the year ended December 31, 2021. Consumers’ intangible asset retirements were $104 million for the year ended December 31, 2022 and $91 million for the year ended December 31, 2021.
2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.
Public Utilities, Allowance For Funds Used During Construction Average Rate Presented in the following table are Consumers’ average AFUDC capitalization rates:
Years Ended December 31202220212020
Electric6.2 %6.2 %6.9 %
Gas5.6 5.6 5.7 
Public Utilities Property Plant and Equipment Schedule of Accumulated Depreciation and Amortization Table Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Utility plant assets$8,785 $8,366 
Non-utility plant assets175 136 
Consumers
Utility plant assets$8,785 $8,366 
Non-utility plant assets
Public Utilities Property Plant and Equipment Schedule of Composite Depreciation Rate Table Presented in the following table are the composite depreciation rates for Consumers’ segment properties:
Years Ended December 31202220212020
Electric utility property3.7 %3.9 %3.9 %
Gas utility property2.9 2.9 2.9 
Other property8.9 9.4 9.8 
Schedule Of Depreciation And Amortization
Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$990 $975 $901 
Amortization expense
Software103 108 112 
Other intangible assets
Securitized regulatory assets28 27 26 
Total depreciation and amortization expense$1,126 $1,114 $1,043 
Consumers
Depreciation expense – plant, property, and equipment$952 $938 $881 
Amortization expense
Software103 108 112 
Other intangible assets
Securitized regulatory assets28 27 26 
Total depreciation and amortization expense$1,088 $1,077 $1,023 
Schedule Of Estimated Amortization Expense For Intangibles
Presented in the following table is Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20232024202520262027
Consumers
Intangible asset amortization expense$96 $82 $80 $76 $64 
Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2022:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3 %51.0 %various
Utility plant in service$1,767 $591 $412 
Accumulated depreciation(816)(210)(93)
Construction work in progress10 21 21 
Net investment$961 $402 $340 
v3.22.4
Leases (Tables)
12 Months Ended
Dec. 31, 2022
Leases [Line Items]  
Assets and Liabilities of Lessee
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
CMS Energy, including ConsumersConsumers
December 312022202120222021
Operating leases
Right-of-use assets1
$31$26$27$22
Lease liabilities
Current lease liabilities2
4343
Non-current lease liabilities3
27252319
Finance leases
Right-of-use assets82575857
Lease liabilities4
Current lease liabilities9696
Non-current lease liabilities68464546
Weighted-average remaining lease term (in years)
Operating leases20231821
Finance leases18121012
Weighted-average discount rate
Operating leases4.0 %4.0 %3.9 %3.9 %
Finance leases5
5.2 1.7 1.6 1.7 
1CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other noncurrent assets on their consolidated balance sheets.
2The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.
3The noncurrent portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other noncurrent liabilities on their consolidated balance sheets.
4Includes related-party lease liabilities of $25 million, of which less than $1 million was current, at December 31, 2022 and 2021.
5This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.
Schedule of Lease Cost Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets12 
Interest on lease liabilities14 16 
Variable lease costs93 90 
Short-term lease costs23 22 
Total lease costs$148 $143 
Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets12 
Interest on lease liabilities14 16 
Variable lease costs93 90 
Short-term lease costs22 21 
Total lease costs$147 $142 
Presented in the following table is supplemental cash flow information related to CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases14 16 
Cash used in financing activities for finance leases13 
Lease liabilities arising from obtaining right-of-use assets
Operating leases10 
Finance leases36 — 
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases14 16 
Cash used in financing activities for finance leases12 
Lease liabilities arising from obtaining right-of-use assets
Operating leases10 
Finance leases12 — 
Summary of Minimum Annual Rental Commitments
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non-cancelable leases:
In Millions
Finance Leases
December 31, 2022Operating LeasesPipelines and PPAsOtherTotal
CMS Energy, including Consumers
2023$$15 $$23 
202413 19 
202513 16 
202613 17 
202713 15 
2028 and thereafter31 39 67 106 
Total minimum lease payments$48 $106 $90 $196 
Less discount17 75 44 119 
Present value of minimum lease payments$31 $31 $46 $77 
Consumers
2023$$15 $$22 
202413 18 
202513 15 
202613 15 
202713 14 
2028 and thereafter26 39 47 
Total minimum lease payments$41 $106 $25 $131 
Less discount14 75 77 
Present value of minimum lease payments$27 $31 $23 $54 
Summary of Future Payments to be Received
Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases:
In Millions
December 31, 2022
2023$43 
202443 
202544 
202618 
Total minimum lease payments$148 
Consumers Energy Company  
Leases [Line Items]  
Assets and Liabilities of Lessee
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
CMS Energy, including ConsumersConsumers
December 312022202120222021
Operating leases
Right-of-use assets1
$31$26$27$22
Lease liabilities
Current lease liabilities2
4343
Non-current lease liabilities3
27252319
Finance leases
Right-of-use assets82575857
Lease liabilities4
Current lease liabilities9696
Non-current lease liabilities68464546
Weighted-average remaining lease term (in years)
Operating leases20231821
Finance leases18121012
Weighted-average discount rate
Operating leases4.0 %4.0 %3.9 %3.9 %
Finance leases5
5.2 1.7 1.6 1.7 
1CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other noncurrent assets on their consolidated balance sheets.
2The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.
3The noncurrent portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other noncurrent liabilities on their consolidated balance sheets.
4Includes related-party lease liabilities of $25 million, of which less than $1 million was current, at December 31, 2022 and 2021.
5This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.
Schedule of Lease Cost Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets12 
Interest on lease liabilities14 16 
Variable lease costs93 90 
Short-term lease costs23 22 
Total lease costs$148 $143 
Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets12 
Interest on lease liabilities14 16 
Variable lease costs93 90 
Short-term lease costs22 21 
Total lease costs$147 $142 
Presented in the following table is supplemental cash flow information related to CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases14 16 
Cash used in financing activities for finance leases13 
Lease liabilities arising from obtaining right-of-use assets
Operating leases10 
Finance leases36 — 
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases14 16 
Cash used in financing activities for finance leases12 
Lease liabilities arising from obtaining right-of-use assets
Operating leases10 
Finance leases12 — 
Summary of Minimum Annual Rental Commitments
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non-cancelable leases:
In Millions
Finance Leases
December 31, 2022Operating LeasesPipelines and PPAsOtherTotal
CMS Energy, including Consumers
2023$$15 $$23 
202413 19 
202513 16 
202613 17 
202713 15 
2028 and thereafter31 39 67 106 
Total minimum lease payments$48 $106 $90 $196 
Less discount17 75 44 119 
Present value of minimum lease payments$31 $31 $46 $77 
Consumers
2023$$15 $$22 
202413 18 
202513 15 
202613 15 
202713 14 
2028 and thereafter26 39 47 
Total minimum lease payments$41 $106 $25 $131 
Less discount14 75 77 
Present value of minimum lease payments$27 $31 $23 $54 
v3.22.4
Asset Retirement Obligations (Tables)
12 Months Ended
Dec. 31, 2022
Asset Retirement Obligations [Line Items]  
Schedule of Categories of Assets for which an ARO Liability is Recorded
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
ARO DescriptionIn-Service DateLong-Lived Assets
Closure of coal ash disposal areasvariousGenerating plants coal ash areas
Gas distribution cut, purge, and capvariousGas distribution mains and services
Asbestos abatement1973Electric and gas utility plant
Closure of renewable generation assetsvariousWind and solar generation facilities
Gas wells plug and abandonvariousGas transmission and storage
Schedule of Change in Asset Retirement Obligation
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2021IncurredSettledAccretion
Cash Flow Revisions1
ARO Liability 12/31/2022
CMS Energy, including Consumers
Consumers$605 $$(39)$27 $128 $722 
Renewable generation assets23 — — — 24 
Total CMS Energy$628 $$(39)$28 $128 $746 
Consumers
Coal ash disposal areas$157 $— $(20)$$128 $272 
Gas distribution cut, purge, and cap282 (11)15 — 287 
Asbestos abatement38 — (1)— 39 
Renewable generation assets93 — — — 95 
Gas wells plug and abandon35 — (7)— 29 
Total Consumers$605 $$(39)$27 $128 $722 
1Increase was attributable to a proposed change for closure work at the J.H. Campbell 3 ash disposal landfill and an updated cost estimate for other coal ash disposal areas.
In Millions
Company and ARO DescriptionARO Liability 12/31/2020IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2021
CMS Energy, including Consumers
Consumers$530 $71 $(53)$24 $33 $605 
Renewable generation assets23 — — — — 23 
Total CMS Energy$553 $71 $(53)$24 $33 $628 
Consumers
Coal ash disposal areas$148 $— $(34)$$38 $157 
Gas distribution cut, purge, and cap240 39 (10)13 — 282 
Asbestos abatement36 — — — 38 
Renewable generation assets74 16 — — 93 
Gas wells plug and abandon32 16 (9)(5)35 
Total Consumers$530 $71 $(53)$24 $33 $605 
Consumers Energy Company  
Asset Retirement Obligations [Line Items]  
Schedule of Categories of Assets for which an ARO Liability is Recorded
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
ARO DescriptionIn-Service DateLong-Lived Assets
Closure of coal ash disposal areasvariousGenerating plants coal ash areas
Gas distribution cut, purge, and capvariousGas distribution mains and services
Asbestos abatement1973Electric and gas utility plant
Closure of renewable generation assetsvariousWind and solar generation facilities
Gas wells plug and abandonvariousGas transmission and storage
Schedule of Change in Asset Retirement Obligation
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2021IncurredSettledAccretion
Cash Flow Revisions1
ARO Liability 12/31/2022
CMS Energy, including Consumers
Consumers$605 $$(39)$27 $128 $722 
Renewable generation assets23 — — — 24 
Total CMS Energy$628 $$(39)$28 $128 $746 
Consumers
Coal ash disposal areas$157 $— $(20)$$128 $272 
Gas distribution cut, purge, and cap282 (11)15 — 287 
Asbestos abatement38 — (1)— 39 
Renewable generation assets93 — — — 95 
Gas wells plug and abandon35 — (7)— 29 
Total Consumers$605 $$(39)$27 $128 $722 
1Increase was attributable to a proposed change for closure work at the J.H. Campbell 3 ash disposal landfill and an updated cost estimate for other coal ash disposal areas.
In Millions
Company and ARO DescriptionARO Liability 12/31/2020IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2021
CMS Energy, including Consumers
Consumers$530 $71 $(53)$24 $33 $605 
Renewable generation assets23 — — — — 23 
Total CMS Energy$553 $71 $(53)$24 $33 $628 
Consumers
Coal ash disposal areas$148 $— $(34)$$38 $157 
Gas distribution cut, purge, and cap240 39 (10)13 — 282 
Asbestos abatement36 — — — 38 
Renewable generation assets74 16 — — 93 
Gas wells plug and abandon32 16 (9)(5)35 
Total Consumers$530 $71 $(53)$24 $33 $605 
v3.22.4
Retirement Benefits (Tables)
12 Months Ended
Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]  
Schedule Of SERP Trust Assets, ABO And Contributions Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Trust assets$137 $142 
ABO118 149 
Consumers
Trust assets$101 $104 
ABO85 108 
Schedule Of Assumptions Used Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefit plans to determine benefit obligations and net periodic benefit cost:
December 31202220212020
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A5.24 %3.02 %2.73 %
DB Pension Plan B5.14 2.79 2.41 
DB SERP5.13 2.78 2.40 
OPEB Plan5.21 2.99 2.69 
Rate of compensation increase
DB Pension Plan A3.60 3.60 3.70 
DB SERP5.50 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A3.09 %2.83 %3.44 %
DB SERP3.09 2.84 3.46 
OPEB Plan3.23 3.03 3.57 
Interest cost discount rate2,3
DB Pension Plan A2.44 1.97 2.92 
DB Pension Plan B2.21 1.70 2.74 
DB SERP2.21 1.72 2.74 
OPEB Plan2.45 1.99 2.88 
Expected long-term rate of return on plan assets4
DB Pension Plans6.50 6.75 6.75 
OPEB Plan6.50 6.75 6.75 
Rate of compensation increase
DB Pension Plan A3.60 3.70 3.50 
DB SERP5.50 5.50 5.50 
1The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2022 and 2021 and improvement scale MP-2020 for 2020. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scales MP-2021 for 2022, MP-2020 for 2021, and MP-2019 for 2020.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
4CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers
considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 6.50 percent in 2022. The actual return (loss) on the assets of the DB Pension Plans was (15.9) percent in 2022, 12.0 percent in 2021, and 13.6 percent in 2020.
Schedule Of Net Benefit Costs Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans:
In Millions
DB Pension Plans and DB SERPOPEB Plan
Years Ended December 31202220212020202220212020
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$41 $53 $50 $17 $18 $16 
Interest cost84 63 83 28 23 33 
Settlement loss— — — 
Expected return on plan assets(206)(208)(191)(115)(109)(100)
Amortization of:
Net loss40 100 95 15 
Prior service cost (credit)(51)(53)(56)
Settlement loss— — — 
Net periodic cost (credit)$(27)$19 $41 $(120)$(113)$(92)
Consumers
Net periodic cost (credit)
Service cost$39 $51 $49 $17 $17 $15 
Interest cost79 59 78 27 23 31 
Expected return on plan assets(194)(197)(181)(107)(102)(93)
Amortization of:
Net loss37 96 90 — 15 
Prior service cost (credit)(50)(51)(54)
Settlement loss— — — 
Net periodic cost (credit)$(26)$19 $39 $(113)$(105)$(86)
Schedule Of Funded Status Of Retirement Benefit Plans Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefit plans with their retirement benefit plans’ liabilities:
In Millions
DB Pension PlansDB SERPOPEB Plan
Years Ended December 31202220212022202120222021
CMS Energy, including Consumers
Benefit obligation at beginning of period$3,070 $3,266 $149 $160 $1,166 $1,205 
Service cost41 53 — — 17 18 
Interest cost81 60 28 23 
Plan amendments— — — — — 
Actuarial gain(811)
1
(108)
1
(25)(4)(274)
1
(32)
1
Benefits paid(212)(201)(10)(10)(48)(53)
Benefit obligation at end of period$2,169 $3,070 $117 $149 $889 $1,166 
Plan assets at fair value at beginning of period$3,599 $3,402 $— $— $1,787 $1,645 
Actual return on plan assets(567)398 — — (294)194 
Company contribution— — 10 10 — — 
Actual benefits paid(212)(201)(10)(10)(47)(52)
Plan assets at fair value at end of period$2,820 $3,599 $— $— $1,446 $1,787 
Funded status$651 
2
$529 
2
$(117)$(149)$557 $621 
Consumers
Benefit obligation at beginning of period$109 $117 $1,122 $1,158 
Service cost— — 17 17 
Interest cost27 23 
Plan amendments— — — 
Actuarial gain(19)(3)(265)
1
(30)
1
Benefits paid(7)(7)(45)(51)
Benefit obligation at end of period$85 $109 $856 $1,122 
Plan assets at fair value at beginning of period$— $— $1,668 $1,535 
Actual return on plan assets— — (273)182 
Company contribution— — 
Actual benefits paid(7)(7)(45)(49)
Plan assets at fair value at end of period$— $— $1,350 $1,668 
Funded status$(85)$(109)$494 $546 
1The actuarial gains for 2022 and 2021 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $632 million at December 31, 2022 and $510 million at December 31, 2021.
Schedule Of Retirement Benefit Plan Assets (Liabilities)
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120222021
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$651 $529 
OPEB Plan557 621 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP107 139 
Consumers
Non-current assets
DB Pension Plans$632 $510 
OPEB Plan494 546 
Current liabilities
DB SERP
Non-current liabilities
DB SERP78 102 
Schedule Of Net Periodic Benefit Cost Not Yet Recognized Presented in the following table are the amounts recognized in regulatory assets, regulatory liabilities, and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets and regulatory liabilities, see Note 2, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312022202120222021
CMS Energy, including Consumers
Regulatory assets (liabilities)
Net loss$724 $812 $251 $136 
Prior service cost (credit)21 25 (140)(190)
Regulatory assets (liabilities)$745 $837 $111 $(54)
AOCI
Net loss (gain)69 94 (17)
Prior service cost (credit)— (3)(5)
Total amounts recognized in regulatory assets (liabilities) and AOCI$815 $931 $110 $(76)
Consumers
Regulatory assets (liabilities)
Net loss$724 $812 $251 $136 
Prior service cost (credit)21 25 (140)(190)
Regulatory assets (liabilities)$745 $837 $111 $(54)
AOCI
Net loss20 41 — — 
Total amounts recognized in regulatory assets (liabilities) and AOCI$765 $878 $111 $(54)
Schedule Of Allocation Of Plan Assets Presented in the following tables are the fair values of the assets of CMS Energy’s DB Pension Plans and OPEB Plan, by asset category and by level within the fair value hierarchy. For additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements.
In Millions
DB Pension Plans
December 31, 2022December 31, 2021
TotalLevel 1TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$122 $122 $30 $30 $— 
U.S. government and agencies securities— — 209 — 209 
Corporate debt— — 595 — 595 
State and municipal bonds— — 13 — 13 
Foreign corporate bonds— — 66 — 66 
Mutual funds263 263 785 785 — 
$385 $385 $1,698 $815 $883 
Pooled funds2,435 1,901 
Total$2,820 $3,599 
In Millions
OPEB Plan
December 31, 2022December 31, 2021
TotalLevel 1TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$28 $28 $21 $21 $— 
U.S. government and agencies securities— — 25 — 25 
Corporate debt— — 73 — 73 
State and municipal bonds— — — 
Foreign corporate bonds— — — 
Common stocks69 69 85 85 — 
Mutual funds754 754 941 941 — 
$851 $851 $1,155 $1,047 $108 
Pooled funds595 632 
Total$1,446 $1,787 
Schedule Of Asset Allocation Presented in the following table are the investment components of the assets of CMS Energy’s DB Pension Plans and OPEB Plan as of December 31, 2022:
DB Pension PlansOPEB Plan
Equity securities38.0 %55.0 %
Fixed-income securities47.0 38.0 
Real asset investments11.0 5.0 
Cash and cash equivalents4.0 2.0 
100.0 %100.0 %
Schedule Of Expected Benefit Payments Presented in the following table are the expected benefit payments for each of the next five years and the fiveyear period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2023$160 $10 $55 
2024158 10 57 
2025161 10 58 
2026160 10 59 
2027159 10 60 
2028-2032790 45 312 
Consumers
2023$150 $$52 
2024149 54 
2025151 55 
2026151 56 
2027150 58 
2028-2032745 30 298 
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Schedule Of SERP Trust Assets, ABO And Contributions Presented in the following table are the fair values of trust assets and ABO for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120222021
CMS Energy, including Consumers
Trust assets$137 $142 
ABO118 149 
Consumers
Trust assets$101 $104 
ABO85 108 
Schedule Of Assumptions Used Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefit plans to determine benefit obligations and net periodic benefit cost:
December 31202220212020
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A5.24 %3.02 %2.73 %
DB Pension Plan B5.14 2.79 2.41 
DB SERP5.13 2.78 2.40 
OPEB Plan5.21 2.99 2.69 
Rate of compensation increase
DB Pension Plan A3.60 3.60 3.70 
DB SERP5.50 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A3.09 %2.83 %3.44 %
DB SERP3.09 2.84 3.46 
OPEB Plan3.23 3.03 3.57 
Interest cost discount rate2,3
DB Pension Plan A2.44 1.97 2.92 
DB Pension Plan B2.21 1.70 2.74 
DB SERP2.21 1.72 2.74 
OPEB Plan2.45 1.99 2.88 
Expected long-term rate of return on plan assets4
DB Pension Plans6.50 6.75 6.75 
OPEB Plan6.50 6.75 6.75 
Rate of compensation increase
DB Pension Plan A3.60 3.70 3.50 
DB SERP5.50 5.50 5.50 
1The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table, with improvement scale MP-2021 for 2022 and 2021 and improvement scale MP-2020 for 2020. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table, with improvement scales MP-2021 for 2022, MP-2020 for 2021, and MP-2019 for 2020.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
4CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers
considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 6.50 percent in 2022. The actual return (loss) on the assets of the DB Pension Plans was (15.9) percent in 2022, 12.0 percent in 2021, and 13.6 percent in 2020.
Schedule Of Net Benefit Costs Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans:
In Millions
DB Pension Plans and DB SERPOPEB Plan
Years Ended December 31202220212020202220212020
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$41 $53 $50 $17 $18 $16 
Interest cost84 63 83 28 23 33 
Settlement loss— — — 
Expected return on plan assets(206)(208)(191)(115)(109)(100)
Amortization of:
Net loss40 100 95 15 
Prior service cost (credit)(51)(53)(56)
Settlement loss— — — 
Net periodic cost (credit)$(27)$19 $41 $(120)$(113)$(92)
Consumers
Net periodic cost (credit)
Service cost$39 $51 $49 $17 $17 $15 
Interest cost79 59 78 27 23 31 
Expected return on plan assets(194)(197)(181)(107)(102)(93)
Amortization of:
Net loss37 96 90 — 15 
Prior service cost (credit)(50)(51)(54)
Settlement loss— — — 
Net periodic cost (credit)$(26)$19 $39 $(113)$(105)$(86)
Schedule Of Funded Status Of Retirement Benefit Plans Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefit plans with their retirement benefit plans’ liabilities:
In Millions
DB Pension PlansDB SERPOPEB Plan
Years Ended December 31202220212022202120222021
CMS Energy, including Consumers
Benefit obligation at beginning of period$3,070 $3,266 $149 $160 $1,166 $1,205 
Service cost41 53 — — 17 18 
Interest cost81 60 28 23 
Plan amendments— — — — — 
Actuarial gain(811)
1
(108)
1
(25)(4)(274)
1
(32)
1
Benefits paid(212)(201)(10)(10)(48)(53)
Benefit obligation at end of period$2,169 $3,070 $117 $149 $889 $1,166 
Plan assets at fair value at beginning of period$3,599 $3,402 $— $— $1,787 $1,645 
Actual return on plan assets(567)398 — — (294)194 
Company contribution— — 10 10 — — 
Actual benefits paid(212)(201)(10)(10)(47)(52)
Plan assets at fair value at end of period$2,820 $3,599 $— $— $1,446 $1,787 
Funded status$651 
2
$529 
2
$(117)$(149)$557 $621 
Consumers
Benefit obligation at beginning of period$109 $117 $1,122 $1,158 
Service cost— — 17 17 
Interest cost27 23 
Plan amendments— — — 
Actuarial gain(19)(3)(265)
1
(30)
1
Benefits paid(7)(7)(45)(51)
Benefit obligation at end of period$85 $109 $856 $1,122 
Plan assets at fair value at beginning of period$— $— $1,668 $1,535 
Actual return on plan assets— — (273)182 
Company contribution— — 
Actual benefits paid(7)(7)(45)(49)
Plan assets at fair value at end of period$— $— $1,350 $1,668 
Funded status$(85)$(109)$494 $546 
1The actuarial gains for 2022 and 2021 for the DB Pension Plans and OPEB Plan were primarily the result of higher discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $632 million at December 31, 2022 and $510 million at December 31, 2021.
Schedule Of Retirement Benefit Plan Assets (Liabilities)
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120222021
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$651 $529 
OPEB Plan557 621 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB SERP107 139 
Consumers
Non-current assets
DB Pension Plans$632 $510 
OPEB Plan494 546 
Current liabilities
DB SERP
Non-current liabilities
DB SERP78 102 
Schedule Of Net Periodic Benefit Cost Not Yet Recognized Presented in the following table are the amounts recognized in regulatory assets, regulatory liabilities, and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets and regulatory liabilities, see Note 2, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312022202120222021
CMS Energy, including Consumers
Regulatory assets (liabilities)
Net loss$724 $812 $251 $136 
Prior service cost (credit)21 25 (140)(190)
Regulatory assets (liabilities)$745 $837 $111 $(54)
AOCI
Net loss (gain)69 94 (17)
Prior service cost (credit)— (3)(5)
Total amounts recognized in regulatory assets (liabilities) and AOCI$815 $931 $110 $(76)
Consumers
Regulatory assets (liabilities)
Net loss$724 $812 $251 $136 
Prior service cost (credit)21 25 (140)(190)
Regulatory assets (liabilities)$745 $837 $111 $(54)
AOCI
Net loss20 41 — — 
Total amounts recognized in regulatory assets (liabilities) and AOCI$765 $878 $111 $(54)
Schedule Of Expected Benefit Payments Presented in the following table are the expected benefit payments for each of the next five years and the fiveyear period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2023$160 $10 $55 
2024158 10 57 
2025161 10 58 
2026160 10 59 
2027159 10 60 
2028-2032790 45 312 
Consumers
2023$150 $$52 
2024149 54 
2025151 55 
2026151 56 
2027150 58 
2028-2032745 30 298 
v3.22.4
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule Of Restricted Stock Activity
Presented in the following tables is the activity for restricted stock and restricted stock units under the PISP:
CMS Energy, including ConsumersConsumers
Year Ended December 31, 2022Number of
Shares
Weighted-Average
Grant Date Fair Value
per Share
Number of
Shares
Weighted-Average
Grant Date Fair Value
per Share
Nonvested at beginning of period932,573 $56.56 887,085 $56.56 
Granted
Restricted stock534,386 48.69 506,911 48.57 
Restricted stock units14,255 56.13 13,611 56.07 
Vested
Restricted stock(395,069)36.27 (378,759)36.28 
Restricted stock units(14,170)52.95 (13,377)52.79 
Forfeited – restricted stock(42,452)60.75 (37,325)60.87 
Nonvested at end of period1,029,523 $60.13 978,146 $60.15 
Year Ended December 31, 2022CMS Energy, including
Consumers
Consumers
Granted
Time-lapse awards123,067 116,881 
Market-based awards141,287 133,450 
Performance-based awards141,287 133,450 
Restricted stock units11,810 11,265 
Dividends on market-based awards15,864 15,085 
Dividends on performance-based awards16,216 15,423 
Dividends on restricted stock units2,445 2,346 
Additional market-based shares based on achievement of condition52,627 50,428 
Additional performance-based shares based on achievement of condition44,038 42,194 
Total granted548,641 520,522 
Schedule of Significant Assumptions Used to Estimate Fair Value of Market-based Restricted Stock Awards
Presented in the following table are the most significant assumptions used to estimate the fair value of the market-based restricted stock awards:
Years Ended December 31202220212020
Expected volatility27.3 %27.6 %14.2 %
Expected dividend yield2.8 2.8 2.4 
Risk-free rate1.4 0.2 1.6 
Summary of Weighted-average Grant-date Fair Value
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$48.69 $43.52 $45.56 
Restricted stock units granted56.13 54.11 49.76 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$48.57 $42.85 $45.53 
Restricted stock units granted56.07 53.93 49.70 
Schedule of Amounts Related to Restricted Stock Awards and Restricted Stock Units
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Fair value of shares that vested during the year$27 $25 $22 
Compensation expense recognized26 22 11 
Income tax benefit recognized— 
Consumers
Fair value of shares that vested during the year$25 $24 $21 
Compensation expense recognized25 21 10 
Income tax benefit recognized— 
Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule Of Restricted Stock Activity
Presented in the following tables is the activity for restricted stock and restricted stock units under the PISP:
CMS Energy, including ConsumersConsumers
Year Ended December 31, 2022Number of
Shares
Weighted-Average
Grant Date Fair Value
per Share
Number of
Shares
Weighted-Average
Grant Date Fair Value
per Share
Nonvested at beginning of period932,573 $56.56 887,085 $56.56 
Granted
Restricted stock534,386 48.69 506,911 48.57 
Restricted stock units14,255 56.13 13,611 56.07 
Vested
Restricted stock(395,069)36.27 (378,759)36.28 
Restricted stock units(14,170)52.95 (13,377)52.79 
Forfeited – restricted stock(42,452)60.75 (37,325)60.87 
Nonvested at end of period1,029,523 $60.13 978,146 $60.15 
Year Ended December 31, 2022CMS Energy, including
Consumers
Consumers
Granted
Time-lapse awards123,067 116,881 
Market-based awards141,287 133,450 
Performance-based awards141,287 133,450 
Restricted stock units11,810 11,265 
Dividends on market-based awards15,864 15,085 
Dividends on performance-based awards16,216 15,423 
Dividends on restricted stock units2,445 2,346 
Additional market-based shares based on achievement of condition52,627 50,428 
Additional performance-based shares based on achievement of condition44,038 42,194 
Total granted548,641 520,522 
Schedule of Significant Assumptions Used to Estimate Fair Value of Market-based Restricted Stock Awards
Presented in the following table are the most significant assumptions used to estimate the fair value of the market-based restricted stock awards:
Years Ended December 31202220212020
Expected volatility27.3 %27.6 %14.2 %
Expected dividend yield2.8 2.8 2.4 
Risk-free rate1.4 0.2 1.6 
Summary of Weighted-average Grant-date Fair Value
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$48.69 $43.52 $45.56 
Restricted stock units granted56.13 54.11 49.76 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$48.57 $42.85 $45.53 
Restricted stock units granted56.07 53.93 49.70 
Schedule of Amounts Related to Restricted Stock Awards and Restricted Stock Units
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Fair value of shares that vested during the year$27 $25 $22 
Compensation expense recognized26 22 11 
Income tax benefit recognized— 
Consumers
Fair value of shares that vested during the year$25 $24 $21 
Compensation expense recognized25 21 10 
Income tax benefit recognized— 
v3.22.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Taxes [Line Items]  
Schedule Of Effective Income Tax Rate Reconciliation
Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate:
In Millions, Except Tax Rate
Years Ended December 31202220212020
CMS Energy, including Consumers
Income from continuing operations before income taxes$902 $823 $809 
Income tax expense at statutory rate189 173 170 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect51 39 44 
TCJA excess deferred taxes1
(65)(50)(35)
Production tax credits(45)(40)(28)
Accelerated flow-through of regulatory tax benefits2
(39)(28)(13)
Research and development tax credits, net3
(2)(3)(11)
Refund of alternative minimum tax sequestration4
— — (9)
Other, net(3)
Income tax expense$93 $95 $115 
Effective tax rate10.3 %11.5 %14.2 %
Consumers
Income from continuing operations before income taxes$1,085 $1,024 $989 
Income tax expense at statutory rate228 215 208 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
59 54 47 
TCJA excess deferred taxes1
(65)(50)(35)
Accelerated flow-through of regulatory tax benefits2
(39)(28)(13)
Production tax credits(40)(33)(19)
Research and development tax credits, net3
(1)(3)(11)
Other, net(2)(4)
Income tax expense$140 $156 $173 
Effective tax rate12.9 %15.2 %17.5 %
1In 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, nonproperty-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, has now been fully amortized.
2In 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, have now been fully amortized.
3In 2022, CMS Energy finalized a study of research and development tax credits for tax years 2019 through 2021. As a result, Consumers recognized a $1 million decrease in the credit, net of reserves for uncertain tax positions. There was no impact at the consolidated level. In 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers.
4In 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.
Significant Components Of Income Tax Expense
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Current income taxes
Federal$$(1)$(35)
State and local— (2)
$$— $(37)
Deferred income taxes
Federal49 100 
State and local65 49 57 
$69 $98 $157 
Deferred income tax credit18 (3)(5)
Tax expense$93 $95 $115 
Consumers
Current income taxes
Federal$(2)$(13)$
State and local15 (7)
$$$(4)
Deferred income taxes
Federal50 103 115 
State and local66 54 67 
$116 $157 $182 
Deferred income tax credit18 (3)(5)
Tax expense$140 $156 $173 
Principal Components Of Deferred Income Tax Assets And Liailities
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120222021
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$385 $332 
Net regulatory tax liability318 349 
Reserves and accruals35 32 
Total deferred income tax assets$738 $713 
Valuation allowance(2)(2)
Total deferred income tax assets, net of valuation allowance$736 $711 
Deferred income tax liabilities
Plant, property, and equipment$(2,515)$(2,395)
Employee benefits(433)(399)
Gas inventory(53)(22)
Securitized costs(39)(46)
Other(103)(59)
Total deferred income tax liabilities$(3,143)$(2,921)
Total net deferred income tax liabilities$(2,407)$(2,210)
Consumers
Deferred income tax assets
Net regulatory tax liability$318 $349 
Tax loss and credit carryforwards145 134 
Reserves and accruals28 24 
Total deferred income tax assets$491 $507 
Deferred income tax liabilities
Plant, property, and equipment$(2,458)$(2,341)
Employee benefits(423)(388)
Gas inventory(53)(22)
Securitized costs(39)(46)
Other(103)(50)
Total deferred income tax liabilities$(3,076)$(2,847)
Total net deferred income tax liabilities$(2,585)$(2,340)
Loss And Credit Carryforwards
Presented in the following table are the tax loss and credit carryforwards at December 31, 2022:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
State net operating loss carryforwards$60 2030 – 2032
Local net operating loss carryforwards2024 – 2040
General business credits320 2035 – 2042
Federal charitable contribution carryforwards2025
Total tax attributes$385 
Consumers
State net operating loss carryforwards$46 2030
General business credits99 2035 – 2042
Total tax attributes$145 
Reconciliation Of Beginning And Ending Uncertain Tax Benefits
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Balance at beginning of period$27 $25 $23 
Additions for current-year tax positions
Additions for prior-year tax positions— 
Reductions for prior-year tax positions(1)— (2)
Balance at end of period$28 $27 $25 
Consumers
Balance at beginning of period$34 $31 $34 
Additions for current-year tax positions
Additions for prior-year tax positions— 
Reductions for prior-year tax positions(2)— (8)
Balance at end of period$36 $34 $31 
Consumers Energy Company  
Income Taxes [Line Items]  
Schedule Of Effective Income Tax Rate Reconciliation
Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate:
In Millions, Except Tax Rate
Years Ended December 31202220212020
CMS Energy, including Consumers
Income from continuing operations before income taxes$902 $823 $809 
Income tax expense at statutory rate189 173 170 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect51 39 44 
TCJA excess deferred taxes1
(65)(50)(35)
Production tax credits(45)(40)(28)
Accelerated flow-through of regulatory tax benefits2
(39)(28)(13)
Research and development tax credits, net3
(2)(3)(11)
Refund of alternative minimum tax sequestration4
— — (9)
Other, net(3)
Income tax expense$93 $95 $115 
Effective tax rate10.3 %11.5 %14.2 %
Consumers
Income from continuing operations before income taxes$1,085 $1,024 $989 
Income tax expense at statutory rate228 215 208 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
59 54 47 
TCJA excess deferred taxes1
(65)(50)(35)
Accelerated flow-through of regulatory tax benefits2
(39)(28)(13)
Production tax credits(40)(33)(19)
Research and development tax credits, net3
(1)(3)(11)
Other, net(2)(4)
Income tax expense$140 $156 $173 
Effective tax rate12.9 %15.2 %17.5 %
1In 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, nonproperty-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, has now been fully amortized.
2In 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, have now been fully amortized.
3In 2022, CMS Energy finalized a study of research and development tax credits for tax years 2019 through 2021. As a result, Consumers recognized a $1 million decrease in the credit, net of reserves for uncertain tax positions. There was no impact at the consolidated level. In 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers.
4In 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.
Significant Components Of Income Tax Expense
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Current income taxes
Federal$$(1)$(35)
State and local— (2)
$$— $(37)
Deferred income taxes
Federal49 100 
State and local65 49 57 
$69 $98 $157 
Deferred income tax credit18 (3)(5)
Tax expense$93 $95 $115 
Consumers
Current income taxes
Federal$(2)$(13)$
State and local15 (7)
$$$(4)
Deferred income taxes
Federal50 103 115 
State and local66 54 67 
$116 $157 $182 
Deferred income tax credit18 (3)(5)
Tax expense$140 $156 $173 
Principal Components Of Deferred Income Tax Assets And Liailities
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120222021
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$385 $332 
Net regulatory tax liability318 349 
Reserves and accruals35 32 
Total deferred income tax assets$738 $713 
Valuation allowance(2)(2)
Total deferred income tax assets, net of valuation allowance$736 $711 
Deferred income tax liabilities
Plant, property, and equipment$(2,515)$(2,395)
Employee benefits(433)(399)
Gas inventory(53)(22)
Securitized costs(39)(46)
Other(103)(59)
Total deferred income tax liabilities$(3,143)$(2,921)
Total net deferred income tax liabilities$(2,407)$(2,210)
Consumers
Deferred income tax assets
Net regulatory tax liability$318 $349 
Tax loss and credit carryforwards145 134 
Reserves and accruals28 24 
Total deferred income tax assets$491 $507 
Deferred income tax liabilities
Plant, property, and equipment$(2,458)$(2,341)
Employee benefits(423)(388)
Gas inventory(53)(22)
Securitized costs(39)(46)
Other(103)(50)
Total deferred income tax liabilities$(3,076)$(2,847)
Total net deferred income tax liabilities$(2,585)$(2,340)
Loss And Credit Carryforwards
Presented in the following table are the tax loss and credit carryforwards at December 31, 2022:
In Millions
Tax AttributeExpiration
CMS Energy, including Consumers
State net operating loss carryforwards$60 2030 – 2032
Local net operating loss carryforwards2024 – 2040
General business credits320 2035 – 2042
Federal charitable contribution carryforwards2025
Total tax attributes$385 
Consumers
State net operating loss carryforwards$46 2030
General business credits99 2035 – 2042
Total tax attributes$145 
Reconciliation Of Beginning And Ending Uncertain Tax Benefits
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Balance at beginning of period$27 $25 $23 
Additions for current-year tax positions
Additions for prior-year tax positions— 
Reductions for prior-year tax positions(1)— (2)
Balance at end of period$28 $27 $25 
Consumers
Balance at beginning of period$34 $31 $34 
Additions for current-year tax positions
Additions for prior-year tax positions— 
Reductions for prior-year tax positions(2)— (8)
Balance at end of period$36 $34 $31 
v3.22.4
Earnings Per Share - CMS Energy (Tables)
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Basic And Diluted EPS Computations
Presented in the following table are CMS Energy’s basic and diluted EPS computations based on income from continuing operations:
In Millions, Except Per Share Amounts
Years Ended December 31202220212020
Income available to common stockholders
Income from continuing operations$809 $728 $694 
Less loss attributable to noncontrolling interests(24)(23)(3)
Less preferred stock dividends10 — 
Income from continuing operations available to common stockholders – basic and diluted$823 $746 $697 
Average common shares outstanding
Weighted-average shares – basic289.5 289.0 285.0 
Add dilutive nonvested stock awards0.3 0.5 0.7 
Add dilutive forward equity sale contracts0.2 — 0.6 
Weighted-average shares – diluted290.0 289.5 286.3 
Income from continuing operations per average common share available to common stockholders
Basic$2.84 $2.58 $2.45 
Diluted2.84 2.58 2.44 
v3.22.4
Revenue (Tables)
12 Months Ended
Dec. 31, 2022
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue Presented in the following tables are the components of operating revenue:
In Millions
Year Ended December 31, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$5,395 $2,720 $— $8,115 
Other— — 205 205 
Revenue recognized from contracts with customers$5,395 $2,720 $205 $8,320 
Leasing income— — 240 240 
Financing income10 — 16 
Consumers alternative-revenue programs43 14 — 57 
Consumers revenues to be refunded(29)(8)— (37)
Total operating revenue – CMS Energy$5,419 $2,732 $445 $8,596 
Consumers
Consumers utility revenue
Residential$2,523 $1,879 $4,402 
Commercial1,733 559 2,292 
Industrial792 75 867 
Other347 207 554 
Revenue recognized from contracts with customers$5,395 $2,720 $8,115 
Financing income10 16 
Alternative-revenue programs43 14 57 
Revenues to be refunded(29)(8)(37)
Total operating revenue – Consumers$5,419 $2,732 $8,151 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2021Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,915 $2,046 $— $6,961 
Other— — 114 114 
Revenue recognized from contracts with customers$4,915 $2,046 $114 $7,075 
Leasing income— — 194 194 
Financing income10 — 15 
Consumers alternative-revenue programs33 12 — 45 
Total operating revenue – CMS Energy$4,958 $2,063 $308 $7,329 
Consumers
Consumers utility revenue
Residential$2,402 $1,396 $3,798 
Commercial1,573 396 1,969 
Industrial624 54 678 
Other316 200 516 
Revenue recognized from contracts with customers$4,915 $2,046 $6,961 
Financing income10 15 
Alternative-revenue programs33 12 45 
Total operating revenue – Consumers$4,958 $2,063 $7,021 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2020Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,348 $1,809 $— $6,157 
Other— — 81 81 
Revenue recognized from contracts with customers$4,348 $1,809 $81 $6,238 
Leasing income— — 148 148 
Financing income11 — 17 
Consumers alternative-revenue programs29 14 — 43 
Consumers revenues to be refunded(16)(12)— (28)
Total operating revenue – CMS Energy$4,372 $1,817 $229 $6,418 
Consumers
Consumers utility revenue
Residential$2,109 $1,232 $3,341 
Commercial1,444 337 1,781 
Industrial570 46 616 
Other225 194 419 
Revenue recognized from contracts with customers$4,348 $1,809 $6,157 
Financing income11 17 
Alternative-revenue programs29 14 43 
Revenues to be refunded(16)(12)(28)
Total operating revenue – Consumers$4,372 $1,817 $6,189 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
Consumers Energy Company  
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue Presented in the following tables are the components of operating revenue:
In Millions
Year Ended December 31, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$5,395 $2,720 $— $8,115 
Other— — 205 205 
Revenue recognized from contracts with customers$5,395 $2,720 $205 $8,320 
Leasing income— — 240 240 
Financing income10 — 16 
Consumers alternative-revenue programs43 14 — 57 
Consumers revenues to be refunded(29)(8)— (37)
Total operating revenue – CMS Energy$5,419 $2,732 $445 $8,596 
Consumers
Consumers utility revenue
Residential$2,523 $1,879 $4,402 
Commercial1,733 559 2,292 
Industrial792 75 867 
Other347 207 554 
Revenue recognized from contracts with customers$5,395 $2,720 $8,115 
Financing income10 16 
Alternative-revenue programs43 14 57 
Revenues to be refunded(29)(8)(37)
Total operating revenue – Consumers$5,419 $2,732 $8,151 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2021Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,915 $2,046 $— $6,961 
Other— — 114 114 
Revenue recognized from contracts with customers$4,915 $2,046 $114 $7,075 
Leasing income— — 194 194 
Financing income10 — 15 
Consumers alternative-revenue programs33 12 — 45 
Total operating revenue – CMS Energy$4,958 $2,063 $308 $7,329 
Consumers
Consumers utility revenue
Residential$2,402 $1,396 $3,798 
Commercial1,573 396 1,969 
Industrial624 54 678 
Other316 200 516 
Revenue recognized from contracts with customers$4,915 $2,046 $6,961 
Financing income10 15 
Alternative-revenue programs33 12 45 
Total operating revenue – Consumers$4,958 $2,063 $7,021 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2020Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,348 $1,809 $— $6,157 
Other— — 81 81 
Revenue recognized from contracts with customers$4,348 $1,809 $81 $6,238 
Leasing income— — 148 148 
Financing income11 — 17 
Consumers alternative-revenue programs29 14 — 43 
Consumers revenues to be refunded(16)(12)— (28)
Total operating revenue – CMS Energy$4,372 $1,817 $229 $6,418 
Consumers
Consumers utility revenue
Residential$2,109 $1,232 $3,341 
Commercial1,444 337 1,781 
Industrial570 46 616 
Other225 194 419 
Revenue recognized from contracts with customers$4,348 $1,809 $6,157 
Financing income11 17 
Alternative-revenue programs29 14 43 
Revenues to be refunded(16)(12)(28)
Total operating revenue – Consumers$4,372 $1,817 $6,189 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
v3.22.4
Other Income and Other Expense (Tables)
12 Months Ended
Dec. 31, 2022
Other Income and Expenses [Line Items]  
Components Of Other Income and Other Expense
Presented in the following table are the components of other income and other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Other income
Interest income$$$
Interest income - related parties— — 
Allowance for equity funds used during construction
Income from equity method investees10 
All other
Total other income – CMS Energy$19 $30 $28 
Consumers
Other income
Interest income$$$
Interest income - related parties
Allowance for equity funds used during construction
All other
Total other income – Consumers$17 $23 $19 
CMS Energy, including Consumers
Other expense
Donations$(9)$(6)$(35)
Civic and political expenditures(6)(5)(5)
Loss on reacquired and extinguished debt— — (16)
All other(12)(7)(6)
Total other expense – CMS Energy$(27)$(18)$(62)
Consumers
Other expense
Donations$(9)$(6)$(33)
Civic and political expenditures(6)(5)(5)
All other(10)(7)(5)
Total other expense – Consumers$(25)$(18)$(43)
Consumers Energy Company  
Other Income and Expenses [Line Items]  
Components Of Other Income and Other Expense
Presented in the following table are the components of other income and other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Other income
Interest income$$$
Interest income - related parties— — 
Allowance for equity funds used during construction
Income from equity method investees10 
All other
Total other income – CMS Energy$19 $30 $28 
Consumers
Other income
Interest income$$$
Interest income - related parties
Allowance for equity funds used during construction
All other
Total other income – Consumers$17 $23 $19 
CMS Energy, including Consumers
Other expense
Donations$(9)$(6)$(35)
Civic and political expenditures(6)(5)(5)
Loss on reacquired and extinguished debt— — (16)
All other(12)(7)(6)
Total other expense – CMS Energy$(27)$(18)$(62)
Consumers
Other expense
Donations$(9)$(6)$(33)
Civic and political expenditures(6)(5)(5)
All other(10)(7)(5)
Total other expense – Consumers$(25)$(18)$(43)
v3.22.4
Reportable Segments (Tables)
12 Months Ended
Dec. 31, 2022
Segment Reporting Information [Line Items]  
Schedule Of Financial Information By Reportable Segments
Presented in the following tables is financial information by segment:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Operating revenue
Electric utility$5,419 $4,958 $4,372 
Gas utility2,732 2,063 1,817 
NorthStar Clean Energy445 308 229 
Total operating revenue – CMS Energy$8,596 $7,329 $6,418 
Consumers
Operating revenue
Electric utility$5,419 $4,958 $4,372 
Gas utility2,732 2,063 1,817 
Total operating revenue – Consumers$8,151 $7,021 $6,189 
CMS Energy, including Consumers
Depreciation and amortization
Electric utility$757 $772 $739 
Gas utility330 304 283 
NorthStar Clean Energy38 37 20 
Other reconciling items
Total depreciation and amortization – CMS Energy$1,126 $1,114 $1,043 
Consumers
Depreciation and amortization
Electric utility$757 $772 $739 
Gas utility330 304 283 
Other reconciling items
Total depreciation and amortization – Consumers$1,088 $1,077 $1,023 
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Income from equity method investees1
NorthStar Clean Energy$$10 $
Total income from equity method investees – CMS Energy$$10 $
CMS Energy, including Consumers
Interest charges
Electric utility$218 $207 $217 
Gas utility116 104 102 
NorthStar Clean Energy
Other reconciling items182 183 179 
Total interest charges – CMS Energy$519 $500 $505 
Consumers
Interest charges
Electric utility$218 $207 $217 
Gas utility116 104 102 
Other reconciling items— 
Total interest charges – Consumers$335 $311 $320 
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility$109 $117 $115 
Gas utility32 39 58 
NorthStar Clean Energy(2)(4)
Other reconciling items(51)(59)(54)
Total income tax expense – CMS Energy$93 $95 $115 
Consumers
Income tax expense (benefit)
Electric utility$109 $117 $115 
Gas utility32 39 58 
Other reconciling items(1)— — 
Total income tax expense – Consumers$140 $156 $173 
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$567 $565 $554 
Gas utility378 302 261 
NorthStar Clean Energy34 23 36 
Other reconciling items(152)458 (96)
Total net income available to common stockholders – CMS Energy$827 $1,348 $755 
Consumers
Net income (loss) available to common stockholder
Electric utility$567 $565 $554 
Gas utility378 302 261 
Other reconciling items(2)(1)(1)
Total net income available to common stockholder – Consumers$943 $866 $814 
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2
$17,870 $18,147 $17,155 
Gas utility2
11,443 10,601 9,581 
NorthStar Clean Energy1,148 1,122 1,113 
Other reconciling items30 23 21 
Total plant, property, and equipment, gross – CMS Energy$30,491 $29,893 $27,870 
Consumers
Plant, property, and equipment, gross
Electric utility2
$17,870 $18,147 $17,155 
Gas utility2
11,443 10,601 9,581 
Other reconciling items29 23 21 
Total plant, property, and equipment, gross – Consumers$29,342 $28,771 $26,757 
CMS Energy, including Consumers
Investments in equity method investees1
NorthStar Clean Energy$71 $71 $70 
Total investments in equity method investees – CMS Energy$71 $71 $70 
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Total assets
Electric utility2
$17,907 $16,493 $15,829 
Gas utility2
11,873 10,517 9,429 
NorthStar Clean Energy1,464 1,312 1,276 
Other reconciling items109 431 3,132 
Total assets – CMS Energy$31,353 $28,753 $29,666 
Consumers
Total assets
Electric utility2
$17,968 $16,555 $15,893 
Gas utility2
11,918 10,564 9,477 
Other reconciling items30 21 29 
Total assets – Consumers$29,916 $27,140 $25,399 
CMS Energy, including Consumers
Capital expenditures3
Electric utility4
$1,265 $1,153 $1,281 
Gas utility4
1,008 989 885 
NorthStar Clean Energy113 17 108 
Other reconciling items
Total capital expenditures – CMS Energy$2,393 $2,161 $2,275 
Consumers
Capital expenditures3
Electric utility4
$1,265 $1,153 $1,281 
Gas utility4
1,008 989 885 
Other reconciling items
Total capital expenditures – Consumers$2,280 $2,144 $2,167 
1Consumers had no equity method investments.
2Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
3Amounts include assets placed under finance lease.
4Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
Consumers Energy Company  
Segment Reporting Information [Line Items]  
Schedule Of Financial Information By Reportable Segments
Presented in the following tables is financial information by segment:
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Operating revenue
Electric utility$5,419 $4,958 $4,372 
Gas utility2,732 2,063 1,817 
NorthStar Clean Energy445 308 229 
Total operating revenue – CMS Energy$8,596 $7,329 $6,418 
Consumers
Operating revenue
Electric utility$5,419 $4,958 $4,372 
Gas utility2,732 2,063 1,817 
Total operating revenue – Consumers$8,151 $7,021 $6,189 
CMS Energy, including Consumers
Depreciation and amortization
Electric utility$757 $772 $739 
Gas utility330 304 283 
NorthStar Clean Energy38 37 20 
Other reconciling items
Total depreciation and amortization – CMS Energy$1,126 $1,114 $1,043 
Consumers
Depreciation and amortization
Electric utility$757 $772 $739 
Gas utility330 304 283 
Other reconciling items
Total depreciation and amortization – Consumers$1,088 $1,077 $1,023 
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Income from equity method investees1
NorthStar Clean Energy$$10 $
Total income from equity method investees – CMS Energy$$10 $
CMS Energy, including Consumers
Interest charges
Electric utility$218 $207 $217 
Gas utility116 104 102 
NorthStar Clean Energy
Other reconciling items182 183 179 
Total interest charges – CMS Energy$519 $500 $505 
Consumers
Interest charges
Electric utility$218 $207 $217 
Gas utility116 104 102 
Other reconciling items— 
Total interest charges – Consumers$335 $311 $320 
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility$109 $117 $115 
Gas utility32 39 58 
NorthStar Clean Energy(2)(4)
Other reconciling items(51)(59)(54)
Total income tax expense – CMS Energy$93 $95 $115 
Consumers
Income tax expense (benefit)
Electric utility$109 $117 $115 
Gas utility32 39 58 
Other reconciling items(1)— — 
Total income tax expense – Consumers$140 $156 $173 
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$567 $565 $554 
Gas utility378 302 261 
NorthStar Clean Energy34 23 36 
Other reconciling items(152)458 (96)
Total net income available to common stockholders – CMS Energy$827 $1,348 $755 
Consumers
Net income (loss) available to common stockholder
Electric utility$567 $565 $554 
Gas utility378 302 261 
Other reconciling items(2)(1)(1)
Total net income available to common stockholder – Consumers$943 $866 $814 
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2
$17,870 $18,147 $17,155 
Gas utility2
11,443 10,601 9,581 
NorthStar Clean Energy1,148 1,122 1,113 
Other reconciling items30 23 21 
Total plant, property, and equipment, gross – CMS Energy$30,491 $29,893 $27,870 
Consumers
Plant, property, and equipment, gross
Electric utility2
$17,870 $18,147 $17,155 
Gas utility2
11,443 10,601 9,581 
Other reconciling items29 23 21 
Total plant, property, and equipment, gross – Consumers$29,342 $28,771 $26,757 
CMS Energy, including Consumers
Investments in equity method investees1
NorthStar Clean Energy$71 $71 $70 
Total investments in equity method investees – CMS Energy$71 $71 $70 
In Millions
Years Ended December 31202220212020
CMS Energy, including Consumers
Total assets
Electric utility2
$17,907 $16,493 $15,829 
Gas utility2
11,873 10,517 9,429 
NorthStar Clean Energy1,464 1,312 1,276 
Other reconciling items109 431 3,132 
Total assets – CMS Energy$31,353 $28,753 $29,666 
Consumers
Total assets
Electric utility2
$17,968 $16,555 $15,893 
Gas utility2
11,918 10,564 9,477 
Other reconciling items30 21 29 
Total assets – Consumers$29,916 $27,140 $25,399 
CMS Energy, including Consumers
Capital expenditures3
Electric utility4
$1,265 $1,153 $1,281 
Gas utility4
1,008 989 885 
NorthStar Clean Energy113 17 108 
Other reconciling items
Total capital expenditures – CMS Energy$2,393 $2,161 $2,275 
Consumers
Capital expenditures3
Electric utility4
$1,265 $1,153 $1,281 
Gas utility4
1,008 989 885 
Other reconciling items
Total capital expenditures – Consumers$2,280 $2,144 $2,167 
1Consumers had no equity method investments.
2Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
3Amounts include assets placed under finance lease.
4Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
v3.22.4
Related Party Transactions - Consumers (Tables)
12 Months Ended
Dec. 31, 2022
Consumers Energy Company  
Related Party Transaction [Line Items]  
Schedule of Related Party Transactions, by Related Party
Presented in the following table is Consumers’ expense recorded from related-party transactions for the years ended December 31:
In Millions
DescriptionRelated Party202220212020
Purchases of capacity and energyAffiliates of NorthStar Clean Energy$76 $77 $64 
v3.22.4
Variable Interest Entities (Tables)
12 Months Ended
Dec. 31, 2022
Variable Interest Entities [Abstract]  
Schedule of Variable Interest Entities
Presented in the following table are the carrying values of the VIEs’ assets and liabilities included on CMS Energy’s consolidated balance sheets:
In Millions
December 3120222021
Current
Cash and cash equivalents$28 $21 
Restricted cash and cash equivalents— 
Accounts receivable
Prepayments and other current assets
Non-current
Plant, property, and equipment, net825 856 
Total assets1
$863 $883 
Current
Accounts payable$15 $17 
Other current liabilities— 
Non-current
Asset retirement obligations24 23 
Other non-current liabilities— 
Total liabilities$39 $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.
v3.22.4
Exit Activities and Discontinued Operations - (Tables)
12 Months Ended
Dec. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Retention Benefit Liability Roll Forward
Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Years Ended December 3120222021
Retention benefit liability at beginning of period$14 $11 
Costs deferred as a regulatory asset
24 
Costs incurred and capitalized— 
Costs paid or settled(17)(5)
Retention benefit liability at the end of the period1
$21 $14 
1Includes current portion of other liabilities of $13 million at December 31, 2022 and $5 million at December 31, 2021.
Schedule of Income, Assets, and Liabilities from Discontinued Operations The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Years Ended December 31202220212020
Operating revenue$— $209 $262 
Expenses
Operating expenses— 60 130 
Interest expense— 34 56 
Income before income taxes$— $115 $76 
Gain on sale657 — 
Income from discontinued operations before income taxes$$772 $76 
Income tax expense170 18 
Income from discontinued operations, net of tax$$602 $58 
Consumers Energy Company  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Retention Benefit Liability Roll Forward
Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Years Ended December 3120222021
Retention benefit liability at beginning of period$14 $11 
Costs deferred as a regulatory asset
24 
Costs incurred and capitalized— 
Costs paid or settled(17)(5)
Retention benefit liability at the end of the period1
$21 $14 
1Includes current portion of other liabilities of $13 million at December 31, 2022 and $5 million at December 31, 2021.
v3.22.4
Regulatory Matters (Schedule Of Regulatory Assets and Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Public Utilities, General Disclosures [Line Items]      
Total current regulatory assets $ 57 $ 46  
Total non-current regulatory assets 3,595 2,259  
Total current regulatory liabilities 104 146  
Total non-current regulatory liabilities 3,796 3,802  
Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total current regulatory assets 57 46  
Total non-current regulatory assets 3,595 2,259  
Total regulatory assets 3,652 2,305  
Total current regulatory liabilities 104 146  
Total non-current regulatory liabilities 3,796 3,802  
Total regulatory liabilities 3,900 3,948  
Cost of removal | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total non-current regulatory liabilities 2,426 2,375  
Income taxes, net | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total current regulatory liabilities 48 138  
Total non-current regulatory liabilities 1,267 1,297  
Reserve for customer refunds | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total current regulatory liabilities 47 2 $ 28
Renewable energy grant | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total non-current regulatory liabilities 45 47  
Renewable energy plan | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total non-current regulatory liabilities 32 13  
Postretirement benefits | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total non-current regulatory liabilities 0 54  
Other | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total current regulatory liabilities 9 6  
Total non-current regulatory liabilities 8 9  
Costs of coal-fueled electric generating units to be retired | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total non-current regulatory assets 1,960 678  
Postretirement benefits | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total non-current regulatory assets 856 837  
ARO | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total non-current regulatory assets 281 247  
Securitized costs | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total non-current regulatory assets 165 193  
MGP Sites | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total non-current regulatory assets 108 112  
Unamortized Loss On Reacquired Debt | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total non-current regulatory assets 100 104  
Energy Waste Reduction Plan Incentive | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total current regulatory assets 47 42  
Total non-current regulatory assets 55 46  
Retention Incentive Program | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total non-current regulatory assets 31 7  
Demand response program | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total non-current regulatory assets 12 10  
Total non-current regulatory liabilities 12 7  
Energy Waste Reduction Plan | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total non-current regulatory assets 10 13  
Total non-current regulatory liabilities 6 0  
Other | Consumers Energy Company      
Public Utilities, General Disclosures [Line Items]      
Total current regulatory assets 10 4  
Total non-current regulatory assets $ 17 $ 12  
v3.22.4
Regulatory Matters (Narrative) (Details)
$ in Millions
1 Months Ended 12 Months Ended
Dec. 31, 2021
USD ($)
Jan. 31, 2023
USD ($)
Sep. 30, 2022
USD ($)
Jul. 31, 2022
USD ($)
Jun. 30, 2022
Apr. 30, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2022
USD ($)
coal_fueled_electric_generating_unit
site
Mar. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Mar. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2016
site
Dec. 31, 2015
site
Dec. 31, 2013
USD ($)
Oct. 31, 2022
USD ($)
Aug. 31, 2022
USD ($)
Public Utilities, General Disclosures [Line Items]                                  
Incentive revenue               $ 8,596   $ 7,329   $ 6,418          
Regulatory assets $ 2,259           $ 2,259 3,595   2,259              
Regulatory liabilities 146           146 104   146              
Consumers revenues to be refunded               37       28          
Subsequent Event                                  
Public Utilities, General Disclosures [Line Items]                                  
Proposed recovery term for 2022 underrecovery   3 years                              
Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Incentive revenue               8,151   7,021   6,189          
Regulatory assets 2,259           2,259 $ 3,595   2,259              
Number of units retired | site               10                  
Regulatory liabilities 146           146 $ 104   146              
Consumers revenues to be refunded               37       28          
Purchased and interchange power               1,867   1,599   1,454          
Cost of gas sold               1,243   726   568          
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                  
Costs of coal-fueled electric generating units to be retired | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Regulatory assets, number of units | coal_fueled_electric_generating_unit               2                  
Coal-Fueled Electric Generation | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Number of units retired | site                         7        
Gas-Fueled Electric Generation | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Number of units retired | site                           3      
Energy Waste Reduction Plan Incentive | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Authorized recovery collection                               $ 46  
Incentive revenue               $ 55   46              
Requested recovery/collection               $ 55                  
Electric Rate Case | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Impairment charge 4                 45              
Requested annual rate increase           $ 272                      
Requested annual rate increase, as a percent           10.25%                      
Amended requested annual rate increase     $ 292                            
Distributed generation cap, percent               2.00%                  
Electric Rate Case | Consumers Energy Company | Subsequent Event                                  
Public Utilities, General Disclosures [Line Items]                                  
Rate of return on equity authorized   9.90%                              
Surcharge for the recovery of excess distribution investments   $ 6                              
Distributed generation cap, percent   4.00%                              
Additional annual rate increase authorized   $ 155                              
Gas Rate Case | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Rate of return on equity authorized       9.90%                          
Requested annual rate increase             $ 278                    
Requested annual rate increase, as a percent           10.25% 10.50%                    
Amended requested annual rate increase           $ 233                      
Additional annual rate increase authorized       $ 170                          
PSCR underrecoveries | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Purchased and interchange power                   2,100   1,800          
Underrecovery for gas fuel and power supply costs 8           $ 8     8   (1)          
Recommended disallowed costs                                 $ 1
GCR underrecoveries | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Underrecovery for gas fuel and power supply costs                 $ 9   $ 2            
Cost of gas sold                 $ 700   $ 400            
Voluntary refund mechanism | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Regulatory liabilities               $ 22                  
Reserve for customer refunds | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Regulatory liabilities $ 2           $ 2 47   $ 2   $ 28          
Consumers revenues to be refunded               15                  
Commitment to fund contributions to assist low-income customers               $ 10                  
Renewable energy grant | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Proceeds from government grant                             $ 69    
MGP Sites | Consumers Energy Company                                  
Public Utilities, General Disclosures [Line Items]                                  
Number of former MGPs | site               23                  
Regulatory asset collection period               10 years                  
v3.22.4
Regulatory Matters (Schedule Of Assets and Liabilities for PSCR And GCR Over/(Under) Recoveries) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Public Utilities, General Disclosures [Line Items]    
Accrued rate refunds $ 0 $ 12
Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Accounts receivable and accrued revenue 409 25
Accrued rate refunds 0 12
Consumers Energy Company | PSCR underrecoveries    
Public Utilities, General Disclosures [Line Items]    
PSCR underrecoveries 401 0
Accrued rate refunds 0 12
Consumers Energy Company | GCR underrecoveries    
Public Utilities, General Disclosures [Line Items]    
GCR underrecoveries $ 8 $ 25
v3.22.4
Contingencies and Commitments (Narrative) (Details)
$ in Millions
1 Months Ended 12 Months Ended 24 Months Ended
Jul. 31, 2022
USD ($)
Jun. 30, 2022
USD ($)
Sep. 30, 2020
USD ($)
Dec. 31, 2022
USD ($)
$ / MWh
$ / MW
site
MW
Mar. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Mar. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2021
USD ($)
Loss Contingencies [Line Items]                  
Regulatory assets       $ 3,595   $ 2,259     $ 2,259
Environmental Loss Contingency, Statement Of Financial Position, Extensible Enumeration, Not Disclosed Flag       recorded liability          
Consumers Energy Company                  
Loss Contingencies [Line Items]                  
Regulatory assets       $ 3,595   2,259     2,259
Cost of gas sold       1,243   726   $ 568  
Plant additions       $ 2,300   2,400      
Consumers Energy Company | MCV PPA                  
Loss Contingencies [Line Items]                  
PPA minimum quantity required | MW       1,240          
PPA fixed energy charge per MWh, on-peak (in dollars per MWh) | $ / MWh       6.30          
PPA fixed energy charge per MWh, off-peak (in dollars per MWh) | $ / MWh       6.00          
Annual contribution to renewable resources program by counterparty       $ 5          
Purchases       $ 519   348   298  
Consumers Energy Company | MCV PPA | Year End Through March 2025                  
Loss Contingencies [Line Items]                  
PPA capacity charge per MWh (in dollars per MWh) | $ / MW       10.14          
Consumers Energy Company | MCV PPA | March 2025 Through Termination                  
Loss Contingencies [Line Items]                  
PPA capacity charge per MWh (in dollars per MWh) | $ / MW       5.00          
Consumers Energy Company | Other PPAs                  
Loss Contingencies [Line Items]                  
Purchases       $ 510   338   $ 327  
Consumers Energy Company | GCR underrecoveries                  
Loss Contingencies [Line Items]                  
Cost of gas sold         $ 700   $ 400    
Consumers Energy Company | Ray Compressor Station                  
Loss Contingencies [Line Items]                  
Plant additions                 17
Insurance recoveries received       13          
Impairment charge       10          
Consumers Energy Company | Ray Compressor Station | GCR underrecoveries                  
Loss Contingencies [Line Items]                  
Cost of gas sold     $ 7            
Consumers Energy Company | MGP Sites                  
Loss Contingencies [Line Items]                  
Regulatory assets       $ 108   $ 112     $ 112
Consumers Energy Company | Ludington                  
Loss Contingencies [Line Items]                  
Ownership share       51.00%          
Consumers Energy Company | Ludington Plant Overhaul Contract Dispute                  
Loss Contingencies [Line Items]                  
Damages sought   $ 15              
Consumers Energy Company | J.H. Campbell 3 Plant Retirement Contract Dispute                  
Loss Contingencies [Line Items]                  
Damages sought $ 37                
Bay Harbor                  
Loss Contingencies [Line Items]                  
Accrual for environmental loss contingencies       $ 45          
Discount rate       4.34%          
Accrual for environmental loss contingencies, inflation rate       1.00%          
Accrual for environmental loss contingencies, gross       $ 57          
NREPA | Electric Utility | Consumers Energy Company                  
Loss Contingencies [Line Items]                  
Accrual for environmental loss contingencies       2          
NREPA | Gas Utility | Consumers Energy Company                  
Loss Contingencies [Line Items]                  
Accrual for environmental loss contingencies       1          
NREPA | Minimum | Electric Utility | Consumers Energy Company                  
Loss Contingencies [Line Items]                  
Remediation and other response activity costs       2          
NREPA | Maximum | Electric Utility | Consumers Energy Company                  
Loss Contingencies [Line Items]                  
Remediation and other response activity costs       4          
NREPA | Maximum | Gas Utility | Consumers Energy Company                  
Loss Contingencies [Line Items]                  
Remediation and other response activity costs       3          
CERCLA Liability | Consumers Energy Company                  
Loss Contingencies [Line Items]                  
Accrual for environmental loss contingencies       3          
CERCLA Liability | Minimum | Consumers Energy Company                  
Loss Contingencies [Line Items]                  
Remediation and other response activity costs       3          
CERCLA Liability | Maximum | Consumers Energy Company                  
Loss Contingencies [Line Items]                  
Remediation and other response activity costs       8          
MGP Sites | Consumers Energy Company                  
Loss Contingencies [Line Items]                  
Accrual for environmental loss contingencies       $ 62          
Discount rate       2.57%          
Accrual for environmental loss contingencies, inflation rate       2.50%          
Accrual for environmental loss contingencies, gross       $ 67          
Number of former MGPs | site       23          
Regulatory asset collection period       10 years          
v3.22.4
Contingencies and Commitments (Schedule of Remediation and Other Response Activity Costs by Year) (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Bay Harbor  
Site Contingency [Line Items]  
2023 $ 4
2024 4
2025 4
2026 4
2027 4
Consumers Energy Company | MGP Sites  
Site Contingency [Line Items]  
2023 5
2024 11
2025 31
2026 6
2027 $ 1
v3.22.4
Contingencies and Commitments (Summary of Guarantees) (Details)
$ in Millions
12 Months Ended
Dec. 31, 2022
USD ($)
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership  
Guarantees And Other Contingencies [Line Items]  
Ownership percentage 49.00%
Guarantees  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 30
Carrying Amount $ 0
Guarantees | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 30
Carrying Amount $ 0
Indemnification agreement from sale of membership interests in VIEs  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 325
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 $ 3
v3.22.4
Contingencies and Commitments (Schedule of Contractual Purchase Obligations) (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Guarantees And Other Contingencies [Line Items]  
Unrecorded Unconditional Purchase Obligation $ 12,521
2023 3,165
2024 1,695
2025 1,144
2026 853
2027 878
Beyond 2027 4,786
Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Unrecorded Unconditional Purchase Obligation 11,901
2023 3,046
2024 1,628
2025 986
2026 823
2027 848
Beyond 2027 4,570
Total PPAs | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Unrecorded Unconditional Purchase Obligation 8,479
2023 652
2024 792
2025 809
2026 812
2027 847
Beyond 2027 4,567
Other  
Guarantees And Other Contingencies [Line Items]  
Unrecorded Unconditional Purchase Obligation 4,042
2023 2,513
2024 903
2025 335
2026 41
2027 31
Beyond 2027 219
Other | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Unrecorded Unconditional Purchase Obligation 3,422
2023 2,394
2024 836
2025 177
2026 11
2027 1
Beyond 2027 3
MCV PPA | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Unrecorded Unconditional Purchase Obligation 2,317
2023 286
2024 369
2025 357
2026 384
2027 406
Beyond 2027 515
Related-party PPAs | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Unrecorded Unconditional Purchase Obligation 320
2023 76
2024 76
2025 53
2026 35
2027 38
Beyond 2027 42
Other PPAs | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Unrecorded Unconditional Purchase Obligation 5,842
2023 290
2024 347
2025 399
2026 393
2027 403
Beyond 2027 $ 4,010
v3.22.4
Financings and Capitalization (Summary of Long-Term Debt) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 01, 2030
Jun. 01, 2030
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 14,362 $ 12,568
Current amounts     (1,090) (373)
Unamortized discounts     (30) (31)
Unamortized issuance costs     (120) (118)
Long-term debt     13,122 12,046
Consumers Energy Company        
Debt Instrument [Line Items]        
Total principal amount outstanding     10,277 8,505
Current amounts     (991) (365)
Unamortized discounts     (27) (28)
Unamortized issuance costs     (67) (62)
Long-term debt     $ 9,192 8,050
Term loan facility | Consumers Energy Company | Term Loan Facility Due 2024        
Debt Instrument [Line Items]        
Weighted average interest rate     4.975%  
Total principal amount outstanding     $ 1,000 0
Term loan facility | Consumers Energy Company | Term Loan Facility Due 2024 | Secured Overnight Financing Rate (SOFR)        
Debt Instrument [Line Items]        
Basis spread on variable rate     0.65%  
First mortgage bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 8,997 8,197
First mortgage bonds | Consumers Energy Company | 0.350% First Mortgage Bonds Due 2023        
Debt Instrument [Line Items]        
Interest rate     0.35%  
Total principal amount outstanding     $ 300 300
First mortgage bonds | Consumers Energy Company | 3.375% First Mortgage Bonds Due 2023        
Debt Instrument [Line Items]        
Interest rate     3.375%  
Total principal amount outstanding     $ 325 325
First mortgage bonds | Consumers Energy Company | 3.125% First Mortgage Bonds Due 2024        
Debt Instrument [Line Items]        
Interest rate     3.125%  
Total principal amount outstanding     $ 250 250
First mortgage bonds | Consumers Energy Company | 3.190% First Mortgage Bonds Due 2024        
Debt Instrument [Line Items]        
Interest rate     3.19%  
Total principal amount outstanding     $ 52 52
First mortgage bonds | Consumers Energy Company | 3.680% First Mortgage Bonds Due 2027        
Debt Instrument [Line Items]        
Interest rate     3.68%  
Total principal amount outstanding     $ 100 100
First mortgage bonds | Consumers Energy Company | 3.390 % First Mortgage Bonds Due 2027        
Debt Instrument [Line Items]        
Interest rate     3.39%  
Total principal amount outstanding     $ 35 35
First mortgage bonds | Consumers Energy Company | 3.800% First Mortgage Bonds Due 2028        
Debt Instrument [Line Items]        
Interest rate     3.80%  
Total principal amount outstanding     $ 300 300
First mortgage bonds | Consumers Energy Company | 3.600% First Mortgage Bonds Due 2032        
Debt Instrument [Line Items]        
Interest rate     3.60%  
Total principal amount outstanding     $ 350 0
First mortgage bonds | Consumers Energy Company | 3.180% First Mortgage Bonds Due 2032        
Debt Instrument [Line Items]        
Interest rate     3.18%  
Total principal amount outstanding     $ 100 100
First mortgage bonds | Consumers Energy Company | 5.800 % First Mortgage Bonds Due 2035        
Debt Instrument [Line Items]        
Interest rate     5.80%  
Total principal amount outstanding     $ 175 175
First mortgage bonds | Consumers Energy Company | 3.520% First Mortgage Bonds Due 2037        
Debt Instrument [Line Items]        
Interest rate     3.52%  
Total principal amount outstanding     $ 335 335
First mortgage bonds | Consumers Energy Company | 4.010% First Mortgage Bonds Due 2038        
Debt Instrument [Line Items]        
Interest rate     4.01%  
Total principal amount outstanding     $ 215 215
First mortgage bonds | Consumers Energy Company | 6.170% First Mortgage Bonds Due 2040        
Debt Instrument [Line Items]        
Interest rate     6.17%  
Total principal amount outstanding     $ 50 50
First mortgage bonds | Consumers Energy Company | 4.970% First Mortgage Bonds Due 2040        
Debt Instrument [Line Items]        
Interest rate     4.97%  
Total principal amount outstanding     $ 50 50
First mortgage bonds | Consumers Energy Company | 4.310% First Mortgage Bonds Due 2042        
Debt Instrument [Line Items]        
Interest rate     4.31%  
Total principal amount outstanding     $ 263 263
First mortgage bonds | Consumers Energy Company | 3.950% First Mortgage Bonds Due 2043        
Debt Instrument [Line Items]        
Interest rate     3.95%  
Total principal amount outstanding     $ 425 425
First mortgage bonds | Consumers Energy Company | 4.100% First Mortgage Bonds Due 2045        
Debt Instrument [Line Items]        
Interest rate     4.10%  
Total principal amount outstanding     $ 250 250
First mortgage bonds | Consumers Energy Company | 3.250% First Mortgage Bonds Due 2046        
Debt Instrument [Line Items]        
Interest rate     3.25%  
Total principal amount outstanding     $ 450 450
First mortgage bonds | Consumers Energy Company | 3.950% First Mortgage Bonds Due 2047        
Debt Instrument [Line Items]        
Interest rate     3.95%  
Total principal amount outstanding     $ 350 350
First mortgage bonds | Consumers Energy Company | 4.050% First Mortgage Bonds Due 2048        
Debt Instrument [Line Items]        
Interest rate     4.05%  
Total principal amount outstanding     $ 550 550
First mortgage bonds | Consumers Energy Company | 4.350% First Mortgage Bonds Due 2049        
Debt Instrument [Line Items]        
Interest rate     4.35%  
Total principal amount outstanding     $ 550 550
First mortgage bonds | Consumers Energy Company | 3.750% First Mortgage Bonds Due 2050        
Debt Instrument [Line Items]        
Interest rate     3.75%  
Total principal amount outstanding     $ 300 300
First mortgage bonds | Consumers Energy Company | 3.100% First Mortgage Bonds Due 2050        
Debt Instrument [Line Items]        
Interest rate     3.10%  
Total principal amount outstanding     $ 550 550
First mortgage bonds | Consumers Energy Company | 3.500% First Mortgage Bonds Due 2051        
Debt Instrument [Line Items]        
Interest rate     3.50%  
Total principal amount outstanding     $ 575 575
First mortgage bonds | Consumers Energy Company | 2.650% First Mortgage Bonds Due 2052        
Debt Instrument [Line Items]        
Interest rate     2.65%  
Total principal amount outstanding     $ 300 300
First mortgage bonds | Consumers Energy Company | 4.200% First Mortgage Bonds Due 2052        
Debt Instrument [Line Items]        
Interest rate     4.20%  
Total principal amount outstanding     $ 450 0
First mortgage bonds | Consumers Energy Company | 3.860% First Mortgage Bonds Due 2052        
Debt Instrument [Line Items]        
Interest rate     3.86%  
Total principal amount outstanding     $ 50 50
First mortgage bonds | Consumers Energy Company | 4.280% First Mortgage Bonds Due 2057        
Debt Instrument [Line Items]        
Interest rate     4.28%  
Total principal amount outstanding     $ 185 185
First mortgage bonds | Consumers Energy Company | 2.500% First Mortgage Bonds Due 2060        
Debt Instrument [Line Items]        
Interest rate     2.50%  
Total principal amount outstanding     $ 525 525
First mortgage bonds | Consumers Energy Company | 4.350% First Mortgage Bonds Due 2064        
Debt Instrument [Line Items]        
Interest rate     4.35%  
Total principal amount outstanding     $ 250 250
First mortgage bonds | Consumers Energy Company | Variable Rate First Mortgage Bonds Due 2069        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 76 76
Interest rate at period end     4.469%  
First mortgage bonds | Consumers Energy Company | Variable Rate First Mortgage Bonds Due 2070        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 134 134
Interest rate at period end     4.375%  
First mortgage bonds | Consumers Energy Company | Variable Rate First Mortgage Bonds Due 2070        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 127 $ 127
Interest rate at period end     3.484%  
First mortgage bonds | Consumers Energy Company | Variable Rate First Mortgage Bonds        
Debt Instrument [Line Items]        
Interest rate at period end       0.00%
First mortgage bonds | Consumers Energy Company | Variable Rate First Mortgage Bonds | London Interbank Offered Rate (LIBOR)        
Debt Instrument [Line Items]        
Basis spread on variable rate     0.30%  
Tax-exempt revenue bonds | Consumers Energy Company        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 110 $ 110
Tax-exempt revenue bonds | Consumers Energy Company | 0.875% Tax Exempt Revenue Bonds Due 2035        
Debt Instrument [Line Items]        
Interest rate     0.875%  
Total principal amount outstanding     $ 35 35
Tax-exempt revenue bonds | Consumers Energy Company | 1.800% Tax Exempt Revenue Bonds Due 2049        
Debt Instrument [Line Items]        
Interest rate     1.80%  
Total principal amount outstanding     $ 75 $ 75
Securitization bonds | Consumers Energy Company | Securitization Bonds        
Debt Instrument [Line Items]        
Weighted average interest rate     3.343% 3.29%
Total principal amount outstanding     $ 170 $ 198
CMS Energy        
Debt Instrument [Line Items]        
Total principal amount outstanding     3,985 3,985
Long-term debt     3,930 3,928
CMS Energy | Senior notes        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 1,975 1,975
CMS Energy | Senior notes | 3.875% Senior Notes Due 2024        
Debt Instrument [Line Items]        
Interest rate     3.875%  
Total principal amount outstanding     $ 250 250
CMS Energy | Senior notes | 3.600% Senior Notes Due 2025        
Debt Instrument [Line Items]        
Interest rate     3.60%  
Total principal amount outstanding     $ 250 250
CMS Energy | Senior notes | 3.000% Senior Notes Due 2026        
Debt Instrument [Line Items]        
Interest rate     3.00%  
Total principal amount outstanding     $ 300 300
CMS Energy | Senior notes | 2.950% Senior Notes Due 2027        
Debt Instrument [Line Items]        
Interest rate     2.95%  
Total principal amount outstanding     $ 275 275
CMS Energy | Senior notes | 3.450% Senior Notes Due 2027        
Debt Instrument [Line Items]        
Interest rate     3.45%  
Total principal amount outstanding     $ 350 350
CMS Energy | Senior notes | 4.700% Senior Notes Due 2043        
Debt Instrument [Line Items]        
Interest rate     4.70%  
Total principal amount outstanding     $ 250 250
CMS Energy | Senior notes | 4.875% Senior Notes Due 2044        
Debt Instrument [Line Items]        
Interest rate     4.875%  
Total principal amount outstanding     $ 300 300
CMS Energy | Junior subordinated notes        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 2,010 2,010
CMS Energy | Junior subordinated notes | 4.750% Junior Subordinated Notes Due 2050        
Debt Instrument [Line Items]        
Interest rate     4.75%  
Total principal amount outstanding     $ 500 500
CMS Energy | Junior subordinated notes | 3.750% Junior Subordinated Notes Due 2050        
Debt Instrument [Line Items]        
Interest rate     3.75%  
Total principal amount outstanding     $ 400 400
CMS Energy | Junior subordinated notes | 5.625% Junior Subordinated Notes Due 2078        
Debt Instrument [Line Items]        
Interest rate     5.625%  
Total principal amount outstanding     $ 200 200
CMS Energy | Junior subordinated notes | 5.875% Junior Subordinated Notes Due 2078        
Debt Instrument [Line Items]        
Interest rate     5.875%  
Total principal amount outstanding     $ 280 280
CMS Energy | Junior subordinated notes | 5.875% Junior Subordinated Notes Due 2079        
Debt Instrument [Line Items]        
Interest rate     5.875%  
Total principal amount outstanding     $ 630 630
NorthStar Clean Energy, Including Subsidiaries        
Debt Instrument [Line Items]        
Unamortized issuance costs     (1)  
NorthStar Clean Energy, Including Subsidiaries | Term loan facility | Term Loan Facility Due 2025        
Debt Instrument [Line Items]        
Total principal amount outstanding     $ 0 78
NorthStar Clean Energy, Including Subsidiaries | Term loan facility | Term Loan Facility Due 2023        
Debt Instrument [Line Items]        
Interest rate     5.423%  
Total principal amount outstanding     $ 100 $ 0
NorthStar Clean Energy, Including Subsidiaries | Term loan facility | Term Loan Facility Due 2023 | Secured Overnight Financing Rate (SOFR)        
Debt Instrument [Line Items]        
Basis spread on variable rate     1.00%  
Forecast | CMS Energy | Junior subordinated notes | 4.750% Junior Subordinated Notes Due 2050 | US Treasury (UST) Interest Rate        
Debt Instrument [Line Items]        
Basis spread on variable rate   4.116%    
Forecast | CMS Energy | Junior subordinated notes | 3.750% Junior Subordinated Notes Due 2050 | US Treasury (UST) Interest Rate        
Debt Instrument [Line Items]        
Basis spread on variable rate 2.90%      
v3.22.4
Financings and Capitalization (Major Long-Term Debt Issuances and Retirements) (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Jan. 31, 2023
Jun. 30, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Nov. 30, 2022
Sep. 30, 2022
Jul. 31, 2022
Debt Instrument [Line Items]                
Principal (In Millions)     $ 1,900          
Loans outstanding     14,362 $ 12,568        
Repayment of debt     106 235 $ 2,010      
NorthStar Clean Energy, Including Subsidiaries                
Debt Instrument [Line Items]                
Principal (In Millions)     100          
Consumers Energy Company                
Debt Instrument [Line Items]                
Principal (In Millions)     1,800          
Loans outstanding     10,277 8,505        
Repayment of debt     28 27 $ 1,086      
NWO Holdco, L.L.C                
Debt Instrument [Line Items]                
Sale of noncontrolling interest   $ 49            
Term loan facility | Term Loan Facility Due 2023 | NorthStar Clean Energy, Including Subsidiaries                
Debt Instrument [Line Items]                
Principal (In Millions)     $ 100          
Interest rate     5.423%          
Maximum borrowing capacity     $ 185          
Loans outstanding     100 0        
Term loan facility | Term Loan Facility Due 2023 | Subsequent Event | NorthStar Clean Energy, Including Subsidiaries                
Debt Instrument [Line Items]                
Principal (In Millions) $ 30              
Term loan facility | Term Loan Facility Due January 2024 | Consumers Energy Company                
Debt Instrument [Line Items]                
Principal (In Millions)     1,000          
Term loan facility | Unsecured Term Loan Credit Agreement Due January 2024 | Consumers Energy Company                
Debt Instrument [Line Items]                
Principal (In Millions)               $ 1,000
Term loan facility | Unsecured Term Loan Credit Agreement Due January 2024 | Consumers Energy Company | Subsequent Event                
Debt Instrument [Line Items]                
Repayment of debt 500              
Term loan facility | Tranche 1 | Consumers Energy Company                
Debt Instrument [Line Items]                
Loans outstanding             $ 550  
Term loan facility | Tranche 2 | Consumers Energy Company                
Debt Instrument [Line Items]                
Loans outstanding           $ 450    
Term loan facility | Term Loan Facility Due October 2025                
Debt Instrument [Line Items]                
Principal (In Millions)     76          
First mortgage bonds | Consumers Energy Company                
Debt Instrument [Line Items]                
Loans outstanding     8,997 $ 8,197        
First mortgage bonds | First Mortgage Bonds Due August 2032 | Consumers Energy Company                
Debt Instrument [Line Items]                
Principal (In Millions)     $ 350          
Interest rate     3.60%          
First mortgage bonds | First Mortgage Bonds Due September 2052 | Consumers Energy Company                
Debt Instrument [Line Items]                
Principal (In Millions)     $ 450          
Interest rate     4.20%          
First mortgage bonds | 5.250% First Mortgage Bonds | Consumers Energy Company | Subsequent Event                
Debt Instrument [Line Items]                
Principal (In Millions) $ 400              
Weighted average interest rate 5.251%              
First mortgage bonds | 4.650% First Mortgage Bonds Due March 2028 | Consumers Energy Company | Subsequent Event                
Debt Instrument [Line Items]                
Principal (In Millions) $ 425              
Interest rate 4.65%              
v3.22.4
Financings and Capitalization (Schedule of Debt Maturities) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
2023 $ 1,091  
2024 1,582  
2025 281  
2026 332  
2027 793  
Debt issuance costs (less than) 120 $ 118
CMS Energy    
Debt Instrument [Line Items]    
2023 0  
2024 250  
2025 250  
2026 300  
2027 625  
NorthStar Clean Energy, Including Subsidiaries    
Debt Instrument [Line Items]    
2023 100  
2024 0  
2025 0  
2026 0  
2027 0  
Debt issuance costs (less than) 1  
Consumers Energy Company    
Debt Instrument [Line Items]    
2023 991  
2024 1,332  
2025 31  
2026 32  
2027 168  
Debt issuance costs (less than) $ 67 $ 62
v3.22.4
Financings and Capitalization (Schedule of Revolving Credit Facilities) (Details)
12 Months Ended
Dec. 31, 2022
USD ($)
Consumers Energy Company | Letter of Credit  
Line of Credit Facility [Line Items]  
Borrowings $ 0
Consumers Energy Company | Revolving Credit Facilities June 5, 2024  
Line of Credit Facility [Line Items]  
Amount of Facility 1,100,000,000
Amount Borrowed 0
Letters of Credit Outstanding 29,000,000
Amount Available 1,071,000,000
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 27,000,000
Amount Available 223,000,000
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 18,000,000
Amount Available 532,000,000
CMS Energy | Revolving Credit Facilities June 5, 2024 | Letter of Credit  
Line of Credit Facility [Line Items]  
Borrowings 0
CMS Energy | Revolving Credit Facilities September 22, 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
NorthStar Clean Energy, Including Subsidiaries | Revolving Credit Facilities September 25, 2025  
Line of Credit Facility [Line Items]  
Amount of Facility 37,000,000
Amount Borrowed 0
Letters of Credit Outstanding 37,000,000
Amount Available $ 0
v3.22.4
Financings and Capitalization (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Financing And Capitalization [Line Items]      
Limitation on payment of stock dividends $ 6,800,000,000    
Dividends paid $ 769,000,000    
Common stock authorized (in shares) 350,000,000 350,000,000.0  
Common stock, par value (in dollars per share) $ 0.01    
Preferred stock authorized (in shares) 10,000,000    
Preferred stock, par value (in dollars per share) $ 0.01    
Stock offering program maximum value $ 500,000,000    
Issuance of common stock $ 69,000,000 $ 26,000,000 $ 253,000,000
Settlement Of Forward Contracts      
Financing And Capitalization [Line Items]      
Settlement of forward contracts through issuance of stock (in shares) 962,354    
Settlement of forward contracts through issuance of stock (in dollars per shares) $ 57.36    
Issuance of common stock $ 55,000,000    
Consumers Energy Company      
Financing And Capitalization [Line Items]      
Notes payable – related parties 75,000,000 $ 392,000,000  
Unrestricted retained earnings $ 1,900,000,000    
Common stock authorized (in shares) 125,000,000.0 125,000,000.0  
Preferred stock authorized (in shares) 7,500,000 7,500,000  
Consumers Energy Company | Credit Agreement      
Financing And Capitalization [Line Items]      
Maximum borrowing capacity $ 500,000,000    
Notes payable – related parties $ 75,000,000    
Consumers Energy Company | Credit Agreement | Maximum      
Financing And Capitalization [Line Items]      
Interest rate 3.50%    
Consumers Energy Company | Commercial Paper      
Financing And Capitalization [Line Items]      
Short-term debt authorized borrowings $ 500,000,000    
Short-term borrowings outstanding $ 20,000,000    
Interest rate 4.71%    
v3.22.4
Financings and Capitalization (Schedule of Forward Stock Contracts) (Details) - $ / shares
Dec. 31, 2022
Aug. 29, 2022
Aug. 24, 2022
Aug. 03, 2022
Forward contracts entered into 8/3/2022        
Debt and Equity Securities, FV-NI [Line Items]        
Number of Shares (in shares)       2,944,207
Initial forward price (in dollars per share) $ 67.83     $ 67.59
Forward contracts entered into 8/24/2022        
Debt and Equity Securities, FV-NI [Line Items]        
Number of Shares (in shares)     1,677,938  
Initial forward price (in dollars per share) 69.69   $ 69.46  
Forward contracts entered into 8/29/2022        
Debt and Equity Securities, FV-NI [Line Items]        
Number of Shares (in shares)   1,783,388    
Initial forward price (in dollars per share) $ 68.38 $ 68.18    
v3.22.4
Financings and Capitalization (Schedule of Preferred Stock) (Details)
12 Months Ended
Dec. 31, 2022
$ / shares
shares
Dec. 31, 2021
$ / shares
shares
Debt and Equity Securities, FV-NI [Line Items]    
Preferred stock, par value (in dollars per share) | $ / shares $ 0.01  
Preferred stock authorized (in shares) 10,000,000  
Consumers Energy Company    
Debt and Equity Securities, FV-NI [Line Items]    
Preferred stock authorized (in shares) 7,500,000 7,500,000
Preferred Stock $4.50 Series | Consumers Energy Company    
Debt and Equity Securities, FV-NI [Line Items]    
Preferred stock, par value (in dollars per share) | $ / shares $ 100 $ 100
Optional redemption price (in dollars per share) | $ / shares $ 110 $ 110
Preferred stock authorized (in shares) 7,500,000 7,500,000
Number of shares outstanding (in shares) 373,148 373,148
Series C Preferred Stock Depositary Shares    
Debt and Equity Securities, FV-NI [Line Items]    
Trading symbol CMS PRC  
Depositary share conversion ratio 0.001  
Preferred stock, par value (in dollars per share) | $ / shares $ 25 $ 25
Optional redemption price (in dollars per share) | $ / shares $ 25 $ 25
Preferred stock authorized (in shares) 9,200,000 9,200,000
Number of shares outstanding (in shares) 9,200,000 9,200,000
v3.22.4
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Assets    
Restricted cash equivalents $ 18 $ 24
Derivative instruments 2 2
Liabilities    
Derivative instruments 0 7
Consumers Energy Company    
Assets    
Restricted cash equivalents 17 22
Derivative instruments 2 2
Liabilities    
Derivative instruments 0 0
Level 1    
Assets    
Restricted cash equivalents 18 24
Nonqualified deferred compensation plan assets 24 27
Liabilities    
Nonqualified deferred compensation plan liabilities 24 27
Level 1 | Consumers Energy Company    
Assets    
Restricted cash equivalents 17 22
Nonqualified deferred compensation plan assets 18 21
Liabilities    
Nonqualified deferred compensation plan liabilities 18 21
Fair Value, Inputs, Level 1, 2 and 3    
Assets    
Total assets 44 53
Liabilities    
Total liabilities 24 34
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company    
Assets    
Total assets 37 45
Liabilities    
Total liabilities $ 18 $ 21
v3.22.4
Fair Value Measurements (Assets Reported at Fair Value on a Nonrecurring Basis) (Details) - Consumers Energy Company
$ in Millions
12 Months Ended
Dec. 31, 2021
USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Assets held for sale $ 19
Fair Value, Nonrecurring  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Gains (Losses) (4)
Level 1 | Fair Value, Nonrecurring  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Assets held for sale 0
Level 2 | Fair Value, Nonrecurring  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Assets held for sale 15
Level 3 | Fair Value, Nonrecurring  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Assets held for sale $ 0
v3.22.4
Fair Value Measurements (Narrative) (Details) - Consumers Energy Company
$ in Millions
12 Months Ended
Dec. 31, 2021
USD ($)
Dec. 31, 2021
USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fleet assets held for sale $ 19 $ 19
Electric Rate Case    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Plant retirements, impact of disallowances and transfers to held for sale 15  
Impairment charge $ 4 $ 45
v3.22.4
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Liabilities    
Current accounts receivable and notes receivable $ 7 $ 9
Current portion of long term debt 1,090 373
Current portion of long-term payables 2 23
Carrying Amount    
Assets    
Long-term receivables 14 14
Liabilities    
Long-term debt 14,212 12,419
Long-term payables 9 31
Fair Value    
Assets    
Long-term receivables 14 14
Liabilities    
Long-term debt 12,384 13,800
Long-term payables 7 32
Consumers Energy Company    
Liabilities    
Current accounts receivable and notes receivable 7 9
Current portion of long term debt 991 365
DB SERP note receivable – related party 7 7
Consumers Energy Company | Carrying Amount    
Assets    
Long-term receivables 14 14
Notes receivable related party 101 104
Liabilities    
Long-term debt 10,183 8,415
Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 14 14
Notes receivable related party 101 104
Liabilities    
Long-term debt 8,728 9,410
Level 1 | Fair Value    
Assets    
Long-term receivables 0 0
Liabilities    
Long-term debt 987 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 8,741 10,656
Long-term payables 0 0
Level 2 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 0 0
Notes receivable related party 0 0
Liabilities    
Long-term debt 6,172 7,455
Level 3 | Fair Value    
Assets    
Long-term receivables 14 14
Liabilities    
Long-term debt 2,656 1,955
Long-term payables 7 32
Level 3 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 14 14
Notes receivable related party 101 104
Liabilities    
Long-term debt $ 2,556 $ 1,955
v3.22.4
Financial Instruments (Narrative) (Details) - CMS Energy Note Payable
Dec. 31, 2022
Financial Instruments [Line Items]  
Interest rate 4.10%
Consumers Energy Company  
Financial Instruments [Line Items]  
Interest rate 4.10%
v3.22.4
Plant, Property, and Equipment (Schedule Of Plant, Property, and Equipment) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Public Utility, Property, Plant and Equipment [Line Items]      
Plant, property, and equipment, gross $ 30,491 $ 29,893 $ 27,870
Construction work in progress 1,182 961  
Accumulated depreciation and amortization (8,960) (8,502)  
Total plant, property, and equipment 22,713 22,352  
Assets under finance leases 170 332 336
Regulatory assets 3,595 2,259  
Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Plant, property, and equipment, gross 29,342 28,771 26,757
Assets under finance leases 146 332 $ 336
Construction work in progress 994 915  
Accumulated depreciation and amortization (8,791) (8,371)  
Total plant, property, and equipment 21,545 21,315  
Plant additions 2,300 2,400  
Plant retirements 290 361  
Regulatory assets 3,595 2,259  
Consumers Energy Company | J.H. Campbell Generating Units      
Public Utility, Property, Plant and Equipment [Line Items]      
Regulatory assets $ 1,300    
Consumers Energy Company | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, consumers 3 years    
Consumers Energy Company | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, consumers 125 years    
Generation | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Generation $ 5,780 6,704  
Generation | Consumers Energy Company | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, generation 15 years    
Generation | Consumers Energy Company | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, generation 125 years    
Distribution | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Distribution $ 10,590 9,815  
Distribution | Consumers Energy Company | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, distribution 15 years    
Distribution | Consumers Energy Company | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, distribution 75 years    
Other | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Other $ 1,374 1,309  
Other | Consumers Energy Company | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, other 5 years    
Other | Consumers Energy Company | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, other 55 years    
Assets under finance leases | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Assets under finance leases $ 126 319  
Distribution | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Distribution $ 6,951 6,338  
Distribution | Consumers Energy Company | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, distribution 20 years    
Distribution | Consumers Energy Company | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, distribution 85 years    
Transmission | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Transmission $ 2,440 2,319  
Transmission | Consumers Energy Company | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, transmission 17 years    
Transmission | Consumers Energy Company | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, transmission 75 years    
Underground storage facilities | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Other $ 1,197 1,117  
Underground storage facilities | Consumers Energy Company | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, other 27 years    
Underground storage facilities | Consumers Energy Company | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, other 75 years    
Other | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Other $ 835 814  
Other | Consumers Energy Company | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, other 5 years    
Other | Consumers Energy Company | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, other 55 years    
Finance leases | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Assets under finance leases $ 20 13  
Other non-utility property | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Other non-utility property $ 29 23  
Other non-utility property | Consumers Energy Company | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, other 3 years    
Other non-utility property | Consumers Energy Company | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, other 51 years    
Natural Gas | Underground storage facilities | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Other $ 26 26  
NorthStar Clean Energy      
Public Utility, Property, Plant and Equipment [Line Items]      
Assets under finance leases 24 0  
Independent power production      
Public Utility, Property, Plant and Equipment [Line Items]      
Plant, property, and equipment, gross $ 1,124 1,121  
Independent power production | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, Enterprises 3 years    
Independent power production | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, Enterprises 40 years    
Other      
Public Utility, Property, Plant and Equipment [Line Items]      
Plant, property, and equipment, gross $ 1 $ 1  
Other | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, Enterprises 3 years    
Other | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, Enterprises 5 years    
v3.22.4
Plant, Property, and Equipment (Schedule of Finite-Lived Intangible Assets by Major Class Table) (Details) - Consumers Energy Company - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost $ 1,114 $ 1,102
Accumulated Amortization  686 684
Plant additions 2,300 2,400
Plant retirements 290 361
Software development    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 846 840
Accumulated Amortization  593 592
Leasehold improvements    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 9 9
Accumulated Amortization  6 6
Intangible plant    
Public Utility, Property, Plant and Equipment [Line Items]    
Plant additions 116 88
Plant retirements 104 91
Rights of way    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 218 211
Accumulated Amortization  61 60
Franchises and consents    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 16 16
Accumulated Amortization  10 10
Other intangible assets    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 25 26
Accumulated Amortization  $ 16 $ 16
Minimum | Software development    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 3 years  
Minimum | Rights of way    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 50 years  
Minimum | Franchises and consents    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 5 years  
Maximum | Software development    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 15 years  
Maximum | Rights of way    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 85 years  
Maximum | Franchises and consents    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 50 years  
v3.22.4
Plant, Property, and Equipment (Public Utilities, Allowance for Funds Used During Construction, Schedule of Composite Rate Table) (Details) - Consumers Energy Company
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Electric Utility      
Property, Plant and Equipment [Line Items]      
AFUDC capitalization rate 6.20% 6.20% 6.90%
Gas Utility      
Property, Plant and Equipment [Line Items]      
AFUDC capitalization rate 5.60% 5.60% 5.70%
v3.22.4
Plant, Property, and Equipment (Schedule of Finance Leases and Other Financing Obligations) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Finance Leases and Other Financing Obligations, Rollforward [Roll Forward]    
Balance at beginning of period $ 332 $ 336
Additions 44 0
Net retirements and other adjustments (206) (4)
Balance at end of period 170 332
Consumers Energy Company    
Finance Leases and Other Financing Obligations, Rollforward [Roll Forward]    
Balance at beginning of period 332 336
Additions 20 0
Net retirements and other adjustments (206) (4)
Balance at end of period 146 332
Finance lease accumulated amortization $ 88 $ 272
v3.22.4
Plant, Property, and Equipment (Schedule Of Depreciation And Amortization) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Public Utility, Property, Plant and Equipment [Line Items]    
Accumulated depreciation and amortization $ 8,960 $ 8,502
Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Consumers accumulated depreciation and amortization 8,791 8,371
Non-utility plant assets    
Public Utility, Property, Plant and Equipment [Line Items]    
Accumulated depreciation and amortization 175 136
Non-utility plant assets | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Consumers accumulated depreciation and amortization 6 5
Utility plant assets    
Public Utility, Property, Plant and Equipment [Line Items]    
Accumulated depreciation and amortization 8,785 8,366
Utility plant assets | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Consumers accumulated depreciation and amortization $ 8,785 $ 8,366
v3.22.4
Plant, Property, and Equipment (Public Utilities Property Plant and Equipment Schedule of Composite Depreciation Rate Table) (Details) - Consumers Energy Company
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Electric utility property      
Public Utility, Property, Plant and Equipment [Line Items]      
Composite depreciation rate 3.70% 3.90% 3.90%
Gas utility property      
Public Utility, Property, Plant and Equipment [Line Items]      
Composite depreciation rate 2.90% 2.90% 2.90%
Other property      
Public Utility, Property, Plant and Equipment [Line Items]      
Composite depreciation rate 8.90% 9.40% 9.80%
v3.22.4
Plant, Property, and Equipment (Schedule Of Depreciation And Amortization Expense) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]      
Depreciation expense – plant, property, and equipment $ 990 $ 975 $ 901
Total depreciation and amortization expense 1,126 1,114 1,043
Securitized regulatory assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 28 27 26
Software      
Property, Plant and Equipment [Line Items]      
Amortization expense 103 108 112
Other intangible assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 5 4 4
Consumers Energy Company      
Property, Plant and Equipment [Line Items]      
Depreciation expense – plant, property, and equipment 952 938 881
Total depreciation and amortization expense 1,088 1,077 1,023
Consumers Energy Company | Securitized regulatory assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 28 27 26
Consumers Energy Company | Software      
Property, Plant and Equipment [Line Items]      
Amortization expense 103 108 112
Consumers Energy Company | Other intangible assets      
Property, Plant and Equipment [Line Items]      
Amortization expense $ 5 $ 4 $ 4
v3.22.4
Plant, Property, and Equipment (Schedule Of Estimated Amortization Expense For Intangibles) (Details) - Consumers Energy Company
$ in Millions
Dec. 31, 2022
USD ($)
Public Utility, Property, Plant and Equipment [Line Items]  
2023 $ 96
2024 82
2025 80
2026 76
2027 $ 64
v3.22.4
Plant, Property, and Equipment (Jointly Owned Regulated Utility Facilities) (Details) - Consumers Energy Company
$ in Millions
Dec. 31, 2022
USD ($)
J.H. Campbell Unit 3  
Public Utility, Property, Plant and Equipment [Line Items]  
Ownership share 93.30%
Utility plant in service $ 1,767
Accumulated depreciation (816)
Construction work in progress 10
Net investment $ 961
Ludington  
Public Utility, Property, Plant and Equipment [Line Items]  
Ownership share 51.00%
Utility plant in service $ 591
Accumulated depreciation (210)
Construction work in progress 21
Net investment 402
Other  
Public Utility, Property, Plant and Equipment [Line Items]  
Utility plant in service 412
Accumulated depreciation (93)
Construction work in progress 21
Net investment $ 340
v3.22.4
Leases - Assets and Liabilities of Lessee (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Operating leases    
Right-of-use assets $ 31 $ 26
Lease liabilities    
Current lease liabilities 4 3
Noncurrent lease liabilities 27 25
Finance leases    
Right-of-use assets 82 57
Lease liabilities    
Current lease liabilities 9 6
Non-current lease liabilities $ 68 $ 46
Weighted-average remaining lease term (in years)    
Operating leases 20 years 23 years
Finance leases 18 years 12 years
Weighted-average discount rate    
Operating leases 4.00% 4.00%
Finance leases 5.20% 1.70%
Finance lease liability $ 77  
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other Other
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other non‑current liabilities Other non‑current liabilities
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Plant, property, and equipment, net Plant, property, and equipment, net
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Current portion of long-term debt and finance leases Current portion of long-term debt and finance leases
Consumers Energy Company    
Operating leases    
Right-of-use assets $ 27 $ 22
Lease liabilities    
Current lease liabilities 4 3
Noncurrent lease liabilities 23 19
Finance leases    
Right-of-use assets 58 57
Lease liabilities    
Current lease liabilities 9 6
Non-current lease liabilities $ 45 $ 46
Weighted-average remaining lease term (in years)    
Operating leases 18 years 21 years
Finance leases 10 years 12 years
Weighted-average discount rate    
Operating leases 3.90% 3.90%
Finance leases 1.60% 1.70%
Finance lease liability $ 54  
Related Party Lease    
Lease liabilities    
Current lease liabilities 1 $ 1
Weighted-average discount rate    
Finance lease liability $ 25 $ 25
v3.22.4
Leases - Schedule of Lease Costs (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Lessee, Lease, Description [Line Items]    
Operating lease costs $ 6 $ 8
Finance lease costs    
Amortization of right-of-use assets 12 7
Interest on lease liabilities 14 16
Variable lease costs 93 90
Short-term lease costs 23 22
Total lease costs 148 143
Consumers Energy Company    
Lessee, Lease, Description [Line Items]    
Operating lease costs 6 8
Finance lease costs    
Amortization of right-of-use assets 12 7
Interest on lease liabilities 14 16
Variable lease costs 93 90
Short-term lease costs 22 21
Total lease costs $ 147 $ 142
v3.22.4
Leases - Schedule of Lessee Cash Flows (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities    
Cash used in operating activities for operating leases $ 6 $ 8
Cash used in operating activities for finance leases 14 16
Cash used in financing activities for finance leases 13 7
Lease liabilities arising from obtaining right-of-use assets    
Operating leases 10 2
Finance leases 36 0
Consumers Energy Company    
Cash paid for amounts included in the measurement of lease liabilities    
Cash used in operating activities for operating leases 6 8
Cash used in operating activities for finance leases 14 16
Cash used in financing activities for finance leases 12 7
Lease liabilities arising from obtaining right-of-use assets    
Operating leases 10 2
Finance leases $ 12 $ 0
v3.22.4
Leases - Minimum Annual Rental Commitments (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Operating Leases  
2023 $ 5
2024 5
2025 3
2026 2
2027 2
2028 and thereafter 31
Total minimum lease payments 48
Less discount 17
Present value of minimum lease payments 31
Finance Leases  
2023 23
2024 19
2025 16
2026 17
2027 15
2028 and thereafter 106
Total minimum lease payments 196
Less discount 119
Present value of minimum lease payments 77
Consumers Energy Company  
Operating Leases  
2023 5
2024 4
2025 3
2026 2
2027 1
2028 and thereafter 26
Total minimum lease payments 41
Less discount 14
Present value of minimum lease payments 27
Finance Leases  
2023 22
2024 18
2025 15
2026 15
2027 14
2028 and thereafter 47
Total minimum lease payments 131
Less discount 77
Present value of minimum lease payments 54
Pipelines and PPAs  
Finance Leases  
2023 15
2024 13
2025 13
2026 13
2027 13
2028 and thereafter 39
Total minimum lease payments 106
Less discount 75
Present value of minimum lease payments 31
Pipelines and PPAs | Consumers Energy Company  
Finance Leases  
2023 15
2024 13
2025 13
2026 13
2027 13
2028 and thereafter 39
Total minimum lease payments 106
Less discount 75
Present value of minimum lease payments 31
Other  
Finance Leases  
2023 8
2024 6
2025 3
2026 4
2027 2
2028 and thereafter 67
Total minimum lease payments 90
Less discount 44
Present value of minimum lease payments 46
Other | Consumers Energy Company  
Finance Leases  
2023 7
2024 5
2025 2
2026 2
2027 1
2028 and thereafter 8
Total minimum lease payments 25
Less discount 2
Present value of minimum lease payments $ 23
v3.22.4
Leases - Lessor Leases Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Consumers Energy Company    
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]    
Minimum rental payments to be received 2022 $ 1  
Minimum annual rental payments to be received in 2023 1  
Minimum annual rental payments to be received in 2024 1  
Minimum annual rental payments to be received in 2025 1  
Minimum rental payments to be received in 2026 1  
Minimum rental payments to be received 2027 and thereafter 8  
Lease receivables 6  
Unearned income 7  
Power Sales Agreement    
Lessor, Lease, Description [Line Items]    
Leasing income 240 $ 194
Variable lease income $ 191 $ 138
v3.22.4
Leases - Schedule of Future Payments to be Received (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Operating Leases  
2023 $ 43
2024 43
2025 44
2026 18
Total minimum lease payments $ 148
v3.22.4
Asset Retirement Obligations (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period $ 628 $ 553
Incurred 1 71
Settled (39) (53)
Accretion 28 24
Cash Flow Revisions 128 33
ARO Liability, end of period 746 628
Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 605 530
Incurred 1 71
Settled (39) (53)
Accretion 27 24
Cash Flow Revisions 128 33
ARO Liability, end of period 722 605
Renewable generation assets    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 23 23
Incurred 0 0
Settled 0 0
Accretion 1 0
Cash Flow Revisions 0 0
ARO Liability, end of period 24 23
Renewable generation assets | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 93 74
Incurred 0 16
Settled 0 0
Accretion 2 3
Cash Flow Revisions 0 0
ARO Liability, end of period 95 93
Coal ash disposal areas | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 157 148
Incurred 0 0
Settled (20) (34)
Accretion 7 5
Cash Flow Revisions 128 38
ARO Liability, end of period 272 157
Gas distribution cut, purge, and cap | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 282 240
Incurred 1 39
Settled (11) (10)
Accretion 15 13
Cash Flow Revisions 0 0
ARO Liability, end of period 287 282
Asbestos abatement | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 38 36
Incurred 0 0
Settled (1) 0
Accretion 2 2
Cash Flow Revisions 0 0
ARO Liability, end of period 39 38
Gas wells plug and abandon | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 35 32
Incurred 0 16
Settled (7) (9)
Accretion 1 1
Cash Flow Revisions 0 (5)
ARO Liability, end of period $ 29 $ 35
v3.22.4
Retirement Benefits (Narrative) (Details)
$ in Millions
12 Months Ended
Dec. 31, 2022
USD ($)
year
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Defined Benefit Plan Disclosure [Line Items]      
Union employees percentage 41.00%    
Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Union employees percentage 42.00%    
DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Settlement loss $ 22    
Amortized net gains and losses in excess of PBO or MRV 10.00%    
Period for gains or losses to be included in market related value 5 years    
ABO $ 2,000 $ 2,700  
DB Pension Plans | Pension Costs      
Defined Benefit Plan Disclosure [Line Items]      
Settlement loss 21    
DB Pension Plans | Consumers Energy Company | Pension Costs      
Defined Benefit Plan Disclosure [Line Items]      
Settlement loss $ 21    
DB Pension Plans | Equity securities      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 50.00%    
DB Pension Plans | Fixed-income securities      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 40.00%    
DB Pension Plans | Real asset investments      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 10.00%    
OPEB Plan      
Defined Benefit Plan Disclosure [Line Items]      
Settlement loss $ 0 $ 0 $ 0
Retirement age requirement | year 55    
Retirement years of service 10 years    
Retirement years of service with disability 15 years    
Ultimate health care cost trend rate 4.75%    
Year health care cost trend rate reaches ultimate trend rate 2032    
Estimated time of amortization of gains losses 9 years 9 years 9 years
OPEB Plan | Under Age 65      
Defined Benefit Plan Disclosure [Line Items]      
Health care cost trend rate assumed next fiscal year 6.50% 6.25%  
OPEB Plan | Over Age 65      
Defined Benefit Plan Disclosure [Line Items]      
Health care cost trend rate assumed next fiscal year 6.75%    
OPEB Plan | Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Retirement age requirement | year 55    
Retirement years of service 10 years    
Retirement years of service with disability 15 years    
Ultimate health care cost trend rate 4.75%    
Year health care cost trend rate reaches ultimate trend rate 2032    
OPEB Plan | Consumers Energy Company | Under Age 65      
Defined Benefit Plan Disclosure [Line Items]      
Health care cost trend rate assumed next fiscal year 6.50% 6.25%  
OPEB Plan | Consumers Energy Company | Over Age 65      
Defined Benefit Plan Disclosure [Line Items]      
Health care cost trend rate assumed next fiscal year 6.75%    
Postretirement Health Trusts | Equity securities      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 51.00%    
Postretirement Health Trusts | Fixed-income securities      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 39.00%    
Postretirement Health Trusts | Real asset investments      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 10.00%    
Postretirement Life Trusts | Equity securities      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 53.00%    
Postretirement Life Trusts | Fixed-income securities      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 32.00%    
Postretirement Life Trusts | Multi-asset investments      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentage 15.00%    
DB Pension Plan A Settlement | DB Pension Plans | Pension Costs      
Defined Benefit Plan Disclosure [Line Items]      
Regulatory asset, amortization period 8 years    
Defined Company Contribution Plan      
Defined Benefit Plan Disclosure [Line Items]      
Plan cost, defined contribution plan $ 48 $ 41 $ 31
Defined Company Contribution Plan | Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Plan cost, defined contribution plan 48 41 31
DC SERP      
Defined Benefit Plan Disclosure [Line Items]      
Plan cost, defined contribution plan $ 1 2 2
Minimum years of participation before vesting 5 years    
Trust assets $ 12 13  
401 (K) Plan      
Defined Benefit Plan Disclosure [Line Items]      
Plan cost, defined contribution plan 44 31 29
401 (K) Plan | Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Plan cost, defined contribution plan $ 43 $ 31 $ 29
Pension Plan A | DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Estimated time of amortization of gains losses 8 years 8 years 8 years
Estimated time of prior service cost     8 years
Pension Plan A | DB Pension Plans | Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Estimated time of prior service cost     8 years
Pension Plan B | DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Estimated time of amortization of gains (losses) life expectancy 18 years 18 years 19 years
Minimum | Defined Company Contribution Plan      
Defined Benefit Plan Disclosure [Line Items]      
Employer match of eligible wages 5.00%    
Minimum | DC SERP      
Defined Benefit Plan Disclosure [Line Items]      
Plan contribution percentage 5.00%    
Minimum | 401 (K) Plan      
Defined Benefit Plan Disclosure [Line Items]      
Employer match of eligible wages 4.00%    
Maximum | Defined Company Contribution Plan      
Defined Benefit Plan Disclosure [Line Items]      
Employer match of eligible wages 10.00%    
Maximum | DC SERP      
Defined Benefit Plan Disclosure [Line Items]      
Plan contribution percentage 15.00%    
Maximum | 401 (K) Plan      
Defined Benefit Plan Disclosure [Line Items]      
Employer match of eligible wages 6.00%    
v3.22.4
Retirement Benefits (Schedule Of SERP Trust Assets, ABO And Contributions) (Details) - DB SERP - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]      
Trust assets $ 0 $ 0 $ 0
Nonqualified Plan      
Defined Benefit Plan Disclosure [Line Items]      
ABO 118 149  
Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Trust assets 0 0 $ 0
Consumers Energy Company | Nonqualified Plan      
Defined Benefit Plan Disclosure [Line Items]      
ABO 85 108  
Trust assets | Nonqualified Plan      
Defined Benefit Plan Disclosure [Line Items]      
Trust assets 137 142  
Trust assets | Consumers Energy Company | Nonqualified Plan      
Defined Benefit Plan Disclosure [Line Items]      
Trust assets $ 101 $ 104  
v3.22.4
Retirement Benefits (Schedule Of Assumptions Used) (Details)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
DB Pension Plans      
Weighted average for net periodic benefit cost      
Expected long-term rate of return on plan assets 6.50% 6.75% 6.75%
Actual rate of return on plan assets (15.90%) 12.00% 13.60%
DB SERP      
Weighted average for benefit obligations      
Discount rate 5.13% 2.78% 2.40%
Rate of compensation increase 5.50% 5.50% 5.50%
Weighted average for net periodic benefit cost      
Service cost discount rate 3.09% 2.84% 3.46%
Interest cost discount rate 2.21% 1.72% 2.74%
Rate of compensation increase 5.50% 5.50% 5.50%
OPEB Plan      
Weighted average for benefit obligations      
Discount rate 5.21% 2.99% 2.69%
Weighted average for net periodic benefit cost      
Service cost discount rate 3.23% 3.03% 3.57%
Interest cost discount rate 2.45% 1.99% 2.88%
Expected long-term rate of return on plan assets 6.50% 6.75% 6.75%
Pension Plan A | DB Pension Plans      
Weighted average for benefit obligations      
Discount rate 5.24% 3.02% 2.73%
Rate of compensation increase 3.60% 3.60% 3.70%
Weighted average for net periodic benefit cost      
Service cost discount rate 3.09% 2.83% 3.44%
Interest cost discount rate 2.44% 1.97% 2.92%
Rate of compensation increase 3.60% 3.70% 3.50%
Pension Plan B | DB Pension Plans      
Weighted average for benefit obligations      
Discount rate 5.14% 2.79% 2.41%
Weighted average for net periodic benefit cost      
Interest cost discount rate 2.21% 1.70% 2.74%
v3.22.4
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
DB Pension Plans and DB SERP      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost $ 41 $ 53 $ 50
Interest cost 84 63 83
Settlement loss (1) (1) (1)
Expected return on plan assets (206) (208) (191)
Amortization of      
Net loss 40 100 95
Prior service cost (credit) 4 4 1
Settlement loss 9 6 2
Net periodic cost (credit) (27) 19 41
DB Pension Plans and DB SERP | Consumers Energy Company      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost 39 51 49
Interest cost 79 59 78
Expected return on plan assets (194) (197) (181)
Amortization of      
Net loss 37 96 90
Prior service cost (credit) 4 4 1
Settlement loss 9 6 2
Net periodic cost (credit) (26) 19 39
OPEB Plan      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost 17 18 16
Interest cost 28 23 33
Settlement loss 0 0 0
Expected return on plan assets (115) (109) (100)
Amortization of      
Net loss 1 8 15
Prior service cost (credit) (51) (53) (56)
Settlement loss 0 0 0
Net periodic cost (credit) (120) (113) (92)
OPEB Plan | Consumers Energy Company      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost 17 17 15
Interest cost 27 23 31
Expected return on plan assets (107) (102) (93)
Amortization of      
Net loss 0 8 15
Prior service cost (credit) (50) (51) (54)
Settlement loss 0 0 0
Net periodic cost (credit) $ (113) $ (105) $ (86)
v3.22.4
Retirement Benefits (Schedule Of Funded Status Of Retirement Benefit Plans) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
DB Pension Plans      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period $ 3,070 $ 3,266  
Service cost 41 53  
Interest cost 81 60  
Plan amendments 0 0  
Actuarial gain (811) (108)  
Benefits paid (212) (201)  
Benefit obligation at end of period 2,169 3,070 $ 3,266
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 3,599 3,402  
Actual return on plan assets (567) 398  
Company contribution 0 0  
Actual benefits paid (212) (201)  
Plan assets at fair value at end of period 2,820 3,599 3,402
Funded status 651 529  
DB Pension Plans | Consumers Energy Company      
Defined Benefit Plan, Roll Forwards [Abstract]      
Funded status 632 510  
DB SERP      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 149 160  
Service cost 0 0  
Interest cost 3 3  
Plan amendments 0 0  
Actuarial gain (25) (4)  
Benefits paid (10) (10)  
Benefit obligation at end of period 117 149 160
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 0 0  
Actual return on plan assets 0 0  
Company contribution 10 10  
Actual benefits paid (10) (10)  
Plan assets at fair value at end of period 0 0 0
Funded status (117) (149)  
DB SERP | Consumers Energy Company      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 109 117  
Service cost 0 0  
Interest cost 2 2  
Plan amendments 0 0  
Actuarial gain (19) (3)  
Benefits paid (7) (7)  
Benefit obligation at end of period 85 109 117
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 0 0  
Actual return on plan assets 0 0  
Company contribution 7 7  
Actual benefits paid (7) (7)  
Plan assets at fair value at end of period 0 0 0
Funded status (85) (109)  
OPEB Plan      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 1,166 1,205  
Service cost 17 18 16
Interest cost 28 23 33
Plan amendments 0 5  
Actuarial gain (274) (32)  
Benefits paid (48) (53)  
Benefit obligation at end of period 889 1,166 1,205
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 1,787 1,645  
Actual return on plan assets (294) 194  
Company contribution 0 0  
Actual benefits paid (47) (52)  
Plan assets at fair value at end of period 1,446 1,787 1,645
Funded status 557 621  
OPEB Plan | Consumers Energy Company      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 1,122 1,158  
Service cost 17 17 15
Interest cost 27 23 31
Plan amendments 0 5  
Actuarial gain (265) (30)  
Benefits paid (45) (51)  
Benefit obligation at end of period 856 1,122 1,158
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 1,668 1,535  
Actual return on plan assets (273) 182  
Company contribution 0 0  
Actual benefits paid (45) (49)  
Plan assets at fair value at end of period 1,350 1,668 $ 1,535
Funded status $ 494 $ 546  
v3.22.4
Retirement Benefits (Schedule Of Retirement Benefit Plan Assets (Liabilities)) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets $ 1,208 $ 1,150
Non-current liabilities 108 142
Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 1,126 1,056
Non-current liabilities 79 104
DB Pension Plans    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 651 529
DB Pension Plans | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 632 510
OPEB Plan    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 557 621
OPEB Plan | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 494 546
DB SERP    
Defined Benefit Plan Disclosure [Line Items]    
Current liabilities 10 10
Non-current liabilities 107 139
DB SERP | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Current liabilities 7 7
Non-current liabilities $ 78 $ 102
v3.22.4
Retirement Benefits (Schedule Of Net Periodic Benefit Cost Not yet Recognized) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Consumers Energy Company    
Regulatory assets (liabilities)    
Total regulatory assets $ 3,652 $ 2,305
Total regulatory liabilities (3,900) (3,948)
DB Pension Plans and DB SERP    
Regulatory assets (liabilities)    
Net loss 724 812
Prior service cost (credit) 21 25
Total regulatory assets 745 837
AOCI    
Net loss (gain) 69 94
Prior service cost (credit) 1 0
Total amounts recognized in regulatory assets (liabilities) and AOCI 815 931
DB Pension Plans and DB SERP | Consumers Energy Company    
Regulatory assets (liabilities)    
Net loss 724 812
Prior service cost (credit) 21 25
Total regulatory assets 745 837
AOCI    
Net loss (gain) 20 41
Total amounts recognized in regulatory assets (liabilities) and AOCI 765 878
OPEB Plan    
Regulatory assets (liabilities)    
Net loss 251 136
Prior service cost (credit) (140) (190)
Total regulatory assets 111  
Total regulatory liabilities   (54)
AOCI    
Net loss (gain) 2 (17)
Prior service cost (credit) (3) (5)
Total amounts recognized in regulatory assets (liabilities) and AOCI 110 (76)
OPEB Plan | Consumers Energy Company    
Regulatory assets (liabilities)    
Net loss 251 136
Prior service cost (credit) (140) (190)
Total regulatory assets 111  
Total regulatory liabilities   (54)
AOCI    
Net loss (gain) 0 0
Total amounts recognized in regulatory assets (liabilities) and AOCI $ 111 $ (54)
v3.22.4
Retirement Benefits (Schedule Of Allocation Of Plan Assets) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets $ 2,820 $ 3,599 $ 3,402
DB Pension Plans | Plan Assets Excluding Pooled Funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 385 1,698  
DB Pension Plans | Plan Assets Excluding Pooled Funds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 385 815  
DB Pension Plans | Plan Assets Excluding Pooled Funds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets   883  
DB Pension Plans | Cash and short-term investments      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 122 30  
DB Pension Plans | Cash and short-term investments | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 122 30  
DB Pension Plans | U.S. government and agencies securities      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 209  
DB Pension Plans | U.S. government and agencies securities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets   209  
DB Pension Plans | Corporate debt      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 595  
DB Pension Plans | Corporate debt | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets   595  
DB Pension Plans | State and municipal bonds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 13  
DB Pension Plans | State and municipal bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets   13  
DB Pension Plans | Foreign corporate bonds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 66  
DB Pension Plans | Foreign corporate bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets   66  
DB Pension Plans | Mutual funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 263 785  
DB Pension Plans | Mutual funds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 263 785  
DB Pension Plans | Pooled funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 2,435 1,901  
OPEB Plan      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 1,446 1,787 $ 1,645
OPEB Plan | Plan Assets Excluding Pooled Funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 851 1,155  
OPEB Plan | Plan Assets Excluding Pooled Funds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 851 1,047  
OPEB Plan | Plan Assets Excluding Pooled Funds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets   108  
OPEB Plan | Cash and short-term investments      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 28 21  
OPEB Plan | Cash and short-term investments | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 28 21  
OPEB Plan | U.S. government and agencies securities      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 25  
OPEB Plan | U.S. government and agencies securities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets   25  
OPEB Plan | Corporate debt      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 73  
OPEB Plan | Corporate debt | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets   73  
OPEB Plan | State and municipal bonds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 2  
OPEB Plan | State and municipal bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets   2  
OPEB Plan | Foreign corporate bonds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 0 8  
OPEB Plan | Foreign corporate bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets   8  
OPEB Plan | Common stocks      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 69 85  
OPEB Plan | Common stocks | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 69 85  
OPEB Plan | Mutual funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 754 941  
OPEB Plan | Mutual funds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets 754 941  
OPEB Plan | Pooled funds      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets $ 595 $ 632  
v3.22.4
Retirement Benefits (Schedule Of Asset Allocation) (Details)
Dec. 31, 2022
DB Pension Plans  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 100.00%
DB Pension Plans | Equity securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 38.00%
DB Pension Plans | Fixed-income securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 47.00%
DB Pension Plans | Real asset investments  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 11.00%
DB Pension Plans | Cash and cash equivalents  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 4.00%
OPEB Plan  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 100.00%
OPEB Plan | Equity securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 55.00%
OPEB Plan | Fixed-income securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 38.00%
OPEB Plan | Real asset investments  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 5.00%
OPEB Plan | Cash and cash equivalents  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 2.00%
v3.22.4
Retirement Benefits (Schedule Of Expected Benefit Payments) (Details)
$ in Millions
Dec. 31, 2022
USD ($)
DB Pension Plans  
Defined Benefit Plan Disclosure [Line Items]  
2023 $ 160
2024 158
2025 161
2026 160
2027 159
2028-2032 790
DB Pension Plans | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
2023 150
2024 149
2025 151
2026 151
2027 150
2028-2032 745
DB SERP  
Defined Benefit Plan Disclosure [Line Items]  
2023 10
2024 10
2025 10
2026 10
2027 10
2028-2032 45
DB SERP | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
2023 7
2024 7
2025 7
2026 7
2027 7
2028-2032 30
OPEB Plan  
Defined Benefit Plan Disclosure [Line Items]  
2023 55
2024 57
2025 58
2026 59
2027 60
2028-2032 312
OPEB Plan | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
2023 52
2024 54
2025 55
2026 56
2027 58
2028-2032 $ 298
v3.22.4
Stock-Based Compensation (Narrative) (Details)
$ in Millions
12 Months Ended
Dec. 31, 2022
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Deferred compensation arrangements plan term 10 years
Number of shares authorized (in shares) 6,500,000
Shares available for grant (in shares) 5,417,727
Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Deferred compensation arrangements plan term 10 years
Number of shares authorized (in shares) 6,500,000
Shares available for grant (in shares) 5,417,727
Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Percent of initial grant issued on vesting date 0.00%
Minimum | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Percent of initial grant issued on vesting date 0.00%
Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Percent of initial grant issued on vesting date 200.00%
Maximum | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Percent of initial grant issued on vesting date 200.00%
Performance-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 38 months
Vesting period 3 years
Performance-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 38 months
Vesting period 3 years
Performance-based awards | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 36 months
Performance-based awards | Minimum | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 36 months
Market-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 3 years
Vesting period 3 years
Market-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 3 years
Vesting period 3 years
Time-lapse awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 3 years
Time-lapse awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 3 years
Restricted stock units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 1 year
Shares forfeited (in shares) 0
Restricted stock units | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period 1 year
Shares forfeited (in shares) 0
Restricted stock  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares forfeited (in shares) 42,452
Unrecognized compensation cost | $ $ 28
Unrecognized compensation cost recognition period 2 years
Restricted stock | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares forfeited (in shares) 37,325
Unrecognized compensation cost | $ $ 27
Unrecognized compensation cost recognition period 2 years
v3.22.4
Stock-Based Compensation (Schedule Of Restricted Stock Activity) (Details) - $ / shares
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Number of Shares      
Granted (in shares) 548,641    
Consumers Energy Company      
Number of Shares      
Granted (in shares) 520,522    
Restricted stock      
Number of Shares      
Granted (in shares) 534,386    
Vested (in shares) (395,069)    
Forfeited (in shares) (42,452)    
Weighted-Average Grant Date Fair Value per Share      
Granted (in dollars per share) $ 48.69 $ 43.52 $ 45.56
Vested (in dollars per share) 36.27    
Forfeitured (in dollars per share) $ 60.75    
Restricted stock | Consumers Energy Company      
Number of Shares      
Granted (in shares) 506,911    
Vested (in shares) (378,759)    
Forfeited (in shares) (37,325)    
Weighted-Average Grant Date Fair Value per Share      
Granted (in dollars per share) $ 48.57 42.85 45.53
Vested (in dollars per share) 36.28    
Forfeitured (in dollars per share) $ 60.87    
Restricted stock units      
Number of Shares      
Granted (in shares) 14,255    
Vested (in shares) (14,170)    
Forfeited (in shares) 0    
Weighted-Average Grant Date Fair Value per Share      
Granted (in dollars per share) $ 56.13 54.11 49.76
Vested (in dollars per share) $ 52.95    
Restricted stock units | Consumers Energy Company      
Number of Shares      
Granted (in shares) 13,611    
Vested (in shares) (13,377)    
Forfeited (in shares) 0    
Weighted-Average Grant Date Fair Value per Share      
Granted (in dollars per share) $ 56.07 $ 53.93 $ 49.70
Vested (in dollars per share) $ 52.79    
Restricted Stock and Restricted Stock Units      
Number of Shares      
Nonvested, at beginning of period (in shares) 932,573    
Nonvested, at end of period (in shares) 1,029,523 932,573  
Weighted-Average Grant Date Fair Value per Share      
Weighted-average grant date fair value per share, at beginning of period (in dollars per share) $ 56.56    
Weighted-average grant date fair value per share, at end of period (in dollars per share) $ 60.13 $ 56.56  
Restricted Stock and Restricted Stock Units | Consumers Energy Company      
Number of Shares      
Nonvested, at beginning of period (in shares) 887,085    
Nonvested, at end of period (in shares) 978,146 887,085  
Weighted-Average Grant Date Fair Value per Share      
Weighted-average grant date fair value per share, at beginning of period (in dollars per share) $ 56.56    
Weighted-average grant date fair value per share, at end of period (in dollars per share) $ 60.15 $ 56.56  
v3.22.4
Stock-Based Compensation (Schedule Of Restricted Stock Activity - Granted) (Details)
12 Months Ended
Dec. 31, 2022
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 548,641
Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 520,522
Time-lapse awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 123,067
Time-lapse awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 116,881
Market-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 141,287
Market-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 133,450
Performance-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 141,287
Performance-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 133,450
Restricted stock units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 11,810
Restricted stock units | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 11,265
Dividends on market-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 15,864
Dividends on market-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 15,085
Dividends on performance-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 16,216
Dividends on performance-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 15,423
Dividends on restricted stock units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 2,445
Dividends on restricted stock units | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 2,346
Additional market-based shares based on achievement of condition  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 52,627
Additional market-based shares based on achievement of condition | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 50,428
Additional performance-based shares based on achievement of condition  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 44,038
Additional performance-based shares based on achievement of condition | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 42,194
v3.22.4
Stock-Based Compensation (Schedule of Significant Assumptions Used to Estimate Fair Value of Market-based Restricted Stock Awards) (Details)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-Based Payment Arrangement, Noncash Expense [Abstract]      
Expected volatility 27.30% 27.60% 14.20%
Expected dividend yield 2.80% 2.80% 2.40%
Risk-free rate 1.40% 0.20% 1.60%
v3.22.4
Stock-Based Compensation (Summary of Weighted-average Grant-date Fair Value) (Details) - $ / shares
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Restricted stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) $ 48.69 $ 43.52 $ 45.56
Restricted stock | Consumers Energy Company      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) 48.57 42.85 45.53
Restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) 56.13 54.11 49.76
Restricted stock units | Consumers Energy Company      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) $ 56.07 $ 53.93 $ 49.70
v3.22.4
Stock-Based Compensation (Schedule of Amounts Related to Restricted Stock Awards and Restricted Stock Units) (Details) - Restricted stock - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of shares that vested during the year $ 27 $ 25 $ 22
Compensation expense recognized 26 22 11
Income tax benefit recognized 0 1 3
Consumers Energy Company      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of shares that vested during the year 25 24 21
Compensation expense recognized 25 21 10
Income tax benefit recognized $ 0 $ 1 $ 3
v3.22.4
Income Taxes (Schedule Of Effective Income Rate Reconciliation) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Taxes [Line Items]      
Income from continuing operations before income taxes $ 902 $ 823 $ 809
Income tax expense at statutory rate 189 173 170
Increase (decrease) in income taxes from:      
State and local income taxes, net of federal effect 51 39 44
TCJA excess deferred taxes (65) (50) (35)
Production tax credits (45) (40) (28)
Accelerated flow-through of regulatory tax benefits (39) (28) (13)
Research and development tax credits, net (2) (3) (11)
Refund of alternative minimum tax sequestration 0 0 (9)
Other, net 4 4 (3)
Income tax expense $ 93 $ 95 $ 115
Effective tax rate 10.30% 11.50% 14.20%
Income tax benefit for sequestered amounts $ 0 $ 0 $ 9
Research Tax Credit Carryforward      
Increase (decrease) in income taxes from:      
Increase in tax credit carryforward 1   9
Consumers Energy Company      
Income Taxes [Line Items]      
Income from continuing operations before income taxes 1,085 1,024 989
Income tax expense at statutory rate 228 215 208
Increase (decrease) in income taxes from:      
State and local income taxes, net of federal effect 59 54 47
TCJA excess deferred taxes (65) (50) (35)
Production tax credits (40) (33) (19)
Accelerated flow-through of regulatory tax benefits (39) (28) (13)
Research and development tax credits, net (1) (3) (11)
Other, net (2) 1 (4)
Income tax expense $ 140 $ 156 $ 173
Effective tax rate 12.90% 15.20% 17.50%
Consumers Energy Company | Research Tax Credit Carryforward      
Increase (decrease) in income taxes from:      
Increase in tax credit carryforward     $ 8
v3.22.4
Income Taxes (Significant Components Of Income Tax Expense) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current income taxes      
Federal $ 6 $ (1) $ (35)
State and local 0 1 (2)
Total current income tax expense 6 0 (37)
Deferred income taxes      
Federal 4 49 100
State and local 65 49 57
Total deferred income tax expense 69 98 157
Deferred income tax credit 18 (3) (5)
Income tax expense 93 95 115
Consumers Energy Company      
Current income taxes      
Federal (2) (13) 3
State and local 8 15 (7)
Total current income tax expense 6 2 (4)
Deferred income taxes      
Federal 50 103 115
State and local 66 54 67
Total deferred income tax expense 116 157 182
Deferred income tax credit 18 (3) (5)
Income tax expense $ 140 $ 156 $ 173
v3.22.4
Income Taxes (Principal Components Of Deferred Income Tax Assets And Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Deferred income tax assets    
Tax loss and credit carryforwards $ 385 $ 332
Net regulatory tax liability 318 349
Reserves and accruals 35 32
Total deferred income tax assets 738 713
Valuation allowance (2) (2)
Total deferred income tax assets, net of valuation allowance 736 711
Deferred income tax liabilities    
Plant, property, and equipment (2,515) (2,395)
Employee benefits (433) (399)
Gas inventory (53) (22)
Securitized costs (39) (46)
Other (103) (59)
Total deferred income tax liabilities (3,143) (2,921)
Total net deferred income tax liabilities (2,407) (2,210)
Consumers Energy Company    
Deferred income tax assets    
Tax loss and credit carryforwards 145 134
Net regulatory tax liability 318 349
Reserves and accruals 28 24
Total deferred income tax assets, net of valuation allowance 491 507
Deferred income tax liabilities    
Plant, property, and equipment (2,458) (2,341)
Employee benefits (423) (388)
Gas inventory (53) (22)
Securitized costs (39) (46)
Other (103) (50)
Total deferred income tax liabilities (3,076) (2,847)
Total net deferred income tax liabilities $ (2,585) $ (2,340)
v3.22.4
Income Taxes (Loss And Credit Carryforwards) (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Operating Loss Carryforwards [Line Items]  
General business credits $ 320
Total tax attributes 385
Consumers Energy Company  
Operating Loss Carryforwards [Line Items]  
General business credits 99
Total tax attributes 145
State Tax Authority  
Operating Loss Carryforwards [Line Items]  
Local net operating loss carryforwards 60
State Tax Authority | Consumers Energy Company  
Operating Loss Carryforwards [Line Items]  
Local net operating loss carryforwards 46
Local Tax Authority  
Operating Loss Carryforwards [Line Items]  
Local net operating loss carryforwards 3
Federal Tax Authority  
Operating Loss Carryforwards [Line Items]  
Federal charitable contribution carryforwards $ 2
v3.22.4
Income Taxes (Narrative) (Details) - USD ($)
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Benefits [Line Items]      
Interest and penalties $ 0 $ 0 $ 0
Consumers Energy Company      
Income Tax Benefits [Line Items]      
Interest and penalties 0 $ 0 $ 0
Local Tax Authority      
Income Tax Benefits [Line Items]      
Valuation allowance - loss carryforward $ 2,000,000    
v3.22.4
Income Taxes (Reconciliation Of Beginning And Ending Uncertain Tax Benefits) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of period $ 27 $ 25 $ 23
Additions for current-year tax positions 1 2 1
Additions for prior-year tax positions 1 0 3
Reductions for prior-year tax positions (1) 0 (2)
Balance at end of period 28 27 25
Consumers Energy Company      
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of period 34 31 34
Additions for current-year tax positions 3 3 1
Additions for prior-year tax positions 1 0 4
Reductions for prior-year tax positions (2) 0 (8)
Balance at end of period $ 36 $ 34 $ 31
v3.22.4
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income available to common stockholders      
Income from continuing operations $ 809 $ 728 $ 694
Loss attributable to noncontrolling interests (24) (23) (3)
Preferred stock dividends 10 5 0
Income from continuing operations available to common stockholders – basic and diluted $ 823 $ 746 $ 697
Average common shares outstanding      
Weighted average shares - basic (in shares) 289.5 289.0 285.0
Dilutive nonvested stock awards (in shares) 0.3 0.5 0.7
Dilutive forward equity sale contracts (in shares) 0.2 0.0 0.6
Weighted average shares - diluted (in shares) 290.0 289.5 286.3
Income from continuing operations per average common share available to common stockholders      
Basic (in dollars per share) $ 2.84 $ 2.58 $ 2.45
Diluted (in dollars per share) $ 2.84 $ 2.58 $ 2.44
v3.22.4
Revenue (Disaggregation of Revenue) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers $ 8,320 $ 7,075 $ 6,238
Leasing income 240 194 148
Financing income 16 15 17
Consumers alternative-revenue programs 57 45 43
Consumers revenues to be refunded (37)   (28)
Total operating revenue 8,596 7,329 6,418
Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 5,395 4,915 4,348
Financing income 10 10 11
Consumers alternative-revenue programs 43 33 29
Consumers revenues to be refunded (29)   (16)
Total operating revenue 5,419 4,958 4,372
Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 2,720 2,046 1,809
Financing income 6 5 6
Consumers alternative-revenue programs 14 12 14
Consumers revenues to be refunded (8)   (12)
Total operating revenue 2,732 2,063 1,817
NorthStar Clean Energy | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 205 114 81
Leasing income 240 194 148
Total operating revenue 445 308 229
Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 8,115 6,961 6,157
Financing income 16 15 17
Consumers alternative-revenue programs 57 45 43
Consumers revenues to be refunded (37)   (28)
Total operating revenue 8,151 7,021 6,189
Consumers Energy Company | Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 5,395 4,915 4,348
Financing income 10 10 11
Consumers alternative-revenue programs 43 33 29
Consumers revenues to be refunded (29)   (16)
Total operating revenue 5,419 4,958 4,372
Consumers Energy Company | Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 2,720 2,046 1,809
Financing income 6 5 6
Consumers alternative-revenue programs 14 12 14
Consumers revenues to be refunded (8)   (12)
Total operating revenue 2,732 2,063 1,817
Residential | Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 4,402 3,798 3,341
Residential | Consumers Energy Company | Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 2,523 2,402 2,109
Residential | Consumers Energy Company | Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 1,879 1,396 1,232
Commercial | Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 2,292 1,969 1,781
Commercial | Consumers Energy Company | Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 1,733 1,573 1,444
Commercial | Consumers Energy Company | Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 559 396 337
Industrial | Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 867 678 616
Industrial | Consumers Energy Company | Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 792 624 570
Industrial | Consumers Energy Company | Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 75 54 46
Other      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 205 114 81
Other | NorthStar Clean Energy | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 205 114 81
Other | Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 554 516 419
Other | Consumers Energy Company | Electric Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers 347 316 225
Other | Consumers Energy Company | Gas Utility | Operating Segments      
Disaggregation of Revenue [Line Items]      
Revenue recognized from contracts with customers $ 207 $ 200 $ 194
v3.22.4
Revenue (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation of Revenue [Line Items]      
Bad debt expense $ 50 $ 22 $ 30
Unbilled receivables 663 486  
Regulatory liabilities 104 146  
Consumers revenues to be refunded 37   28
Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Bad debt expense 50 22 33
Unbilled receivables 663 486  
Regulatory liabilities 104 146  
Consumers revenues to be refunded 37   28
Consumers Energy Company | Reserve for customer refunds      
Disaggregation of Revenue [Line Items]      
Commitment to fund contributions to assist low-income customers 10    
Regulatory liabilities 47 2 28
Consumers revenues to be refunded 15    
Consumers Energy Company | Voluntary refund mechanism      
Disaggregation of Revenue [Line Items]      
Regulatory liabilities 22    
Accounts Receivable      
Disaggregation of Revenue [Line Items]      
Bad debt expense 50 22 33
Accounts Receivable | Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Bad debt expense $ 50 $ 22 $ 33
v3.22.4
Other Income and Other Expense (Components Of Other Income and Other Expense) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Other Income and Expenses [Line Items]      
Interest income $ 5 $ 3 $ 4
Interest income – related parties 0 0 7
Allowance for equity funds used during construction 6 8 6
Income from equity method investees 3 10 5
All other 5 9 6
Other income 19 30 28
Donations (9) (6) (35)
Civic and political expenditures (6) (5) (5)
Loss on reacquired and extinguished debt 0 0 (16)
All other (12) (7) (6)
Total other expense (27) (18) (62)
Consumers Energy Company      
Other Income and Expenses [Line Items]      
Interest income 2 2 3
Interest income – related parties 5 5 5
Allowance for equity funds used during construction 6 8 6
All other 4 8 5
Other income 17 23 19
Donations (9) (6) (33)
Civic and political expenditures (6) (5) (5)
All other (10) (7) (5)
Total other expense $ (25) $ (18) $ (43)
v3.22.4
Reportable Segments (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting Information [Line Items]      
Operating Revenue $ 8,596 $ 7,329 $ 6,418
Depreciation and amortization 1,126 1,114 1,043
Income from equity method investees 3 10 5
Interest charges 519 500 505
Income tax expense (benefit) 93 95 115
Net income (loss) available to common stockholders 827 1,348 755
Plant, property, and equipment, gross 30,491 29,893 27,870
Investments in equity method investees 71 71 70
Total assets 31,353 28,753 29,666
Capital expenditures 2,393 2,161 2,275
Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 8,151 7,021 6,189
Depreciation and amortization 1,088 1,077 1,023
Interest charges 335 311 320
Income tax expense (benefit) 140 156 173
Net income (loss) available to common stockholders 943 866 814
Plant, property, and equipment, gross 29,342 28,771 26,757
Total assets 29,916 27,140 25,399
Capital expenditures 2,280 2,144 2,167
Other reconciling items      
Segment Reporting Information [Line Items]      
Depreciation and amortization 1 1 1
Interest charges 182 183 179
Income tax expense (benefit) (51) (59) (54)
Net income (loss) available to common stockholders (152) 458 (96)
Plant, property, and equipment, gross 30 23 21
Total assets 109 431 3,132
Capital expenditures 7 2 1
Other reconciling items | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Depreciation and amortization 1 1 1
Interest charges 1 0 1
Income tax expense (benefit) (1) 0 0
Net income (loss) available to common stockholders (2) (1) (1)
Plant, property, and equipment, gross 29 23 21
Total assets 30 21 29
Capital expenditures 7 2 1
Electric Utility | Operating Segments      
Segment Reporting Information [Line Items]      
Operating Revenue 5,419 4,958 4,372
Depreciation and amortization 757 772 739
Interest charges 218 207 217
Income tax expense (benefit) 109 117 115
Net income (loss) available to common stockholders 567 565 554
Plant, property, and equipment, gross 17,870 18,147 17,155
Total assets 17,907 16,493 15,829
Capital expenditures 1,265 1,153 1,281
Electric Utility | Operating Segments | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 5,419 4,958 4,372
Depreciation and amortization 757 772 739
Interest charges 218 207 217
Income tax expense (benefit) 109 117 115
Net income (loss) available to common stockholders 567 565 554
Plant, property, and equipment, gross 17,870 18,147 17,155
Total assets 17,968 16,555 15,893
Capital expenditures 1,265 1,153 1,281
Gas Utility | Operating Segments      
Segment Reporting Information [Line Items]      
Operating Revenue 2,732 2,063 1,817
Depreciation and amortization 330 304 283
Interest charges 116 104 102
Income tax expense (benefit) 32 39 58
Net income (loss) available to common stockholders 378 302 261
Plant, property, and equipment, gross 11,443 10,601 9,581
Total assets 11,873 10,517 9,429
Capital expenditures 1,008 989 885
Gas Utility | Operating Segments | Consumers Energy Company      
Segment Reporting Information [Line Items]      
Operating Revenue 2,732 2,063 1,817
Depreciation and amortization 330 304 283
Interest charges 116 104 102
Income tax expense (benefit) 32 39 58
Net income (loss) available to common stockholders 378 302 261
Plant, property, and equipment, gross 11,443 10,601 9,581
Total assets 11,918 10,564 9,477
Capital expenditures 1,008 989 885
NorthStar Clean Energy | Operating Segments      
Segment Reporting Information [Line Items]      
Operating Revenue 445 308 229
Depreciation and amortization 38 37 20
Income from equity method investees 3 10 5
Interest charges 3 6 7
Income tax expense (benefit) 3 (2) (4)
Net income (loss) available to common stockholders 34 23 36
Plant, property, and equipment, gross 1,148 1,122 1,113
Investments in equity method investees 71 71 70
Total assets 1,464 1,312 1,276
Capital expenditures $ 113 $ 17 $ 108
v3.22.4
Related Party Transactions - Consumers (Details) - USD ($)
1 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Consumers Energy Company        
Related Party Transaction [Line Items]        
Purchased power – related parties   $ 76,000,000 $ 77,000,000 $ 64,000,000
Due to related parties   20,000,000 22,000,000  
Accounts receivable related parties   8,000,000 $ 7,000,000  
Consumers Energy Company | Enterprise Segment Generating Units        
Related Party Transaction [Line Items]        
Long-term purchase commitment, amount $ 515,000,000      
Consumers Energy Company | Credit Agreement        
Related Party Transaction [Line Items]        
Maximum borrowing capacity   $ 500,000,000    
CMS Energy Note Payable        
Related Party Transaction [Line Items]        
Interest rate   4.10%    
CMS Energy Note Payable | Consumers Energy Company        
Related Party Transaction [Line Items]        
Interest rate   4.10%    
v3.22.4
Variable Interest Entities (Narrative) (Details)
$ in Millions
1 Months Ended 12 Months Ended
Jun. 30, 2022
USD ($)
Dec. 31, 2022
USD ($)
MW
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Variable Interest Entity [Line Items]        
Investments   $ 71 $ 71 $ 70
NWO Holdco, L.L.C        
Variable Interest Entity [Line Items]        
Sale of noncontrolling interest $ 49      
Nameplate capacity (in MW) | MW   100    
Variable Interest Entity, Primary Beneficiary | Aviator Wind        
Variable Interest Entity [Line Items]        
Nameplate capacity (in MW) | MW   525    
Ownership interest   51.00%    
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership        
Variable Interest Entity [Line Items]        
Noncontrolling ownership interest   49.00%    
Variable Interest Entity, Not Primary Beneficiary        
Variable Interest Entity [Line Items]        
Investments   $ 71 $ 71  
Variable Interest Entity, Not Primary Beneficiary | T.E.S. Filer City        
Variable Interest Entity [Line Items]        
Ownership interest   50.00%    
Variable Interest Entity, Not Primary Beneficiary | Grayling        
Variable Interest Entity [Line Items]        
Ownership interest   50.00%    
Variable Interest Entity, Not Primary Beneficiary | Genesee        
Variable Interest Entity [Line Items]        
Ownership interest   50.00%    
Variable Interest Entity, Not Primary Beneficiary | Craven        
Variable Interest Entity [Line Items]        
Ownership interest   50.00%    
v3.22.4
Variable Interest Entities (Consolidated Information of Variable Interest Entity) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Variable Interest Entity [Line Items]      
Cash and cash equivalents $ 164 $ 452  
Restricted cash and cash equivalents 18 24  
Accounts receivable 1,564 931  
Prepayments and other current assets 113 139  
Plant, property, and equipment, net 22,713 22,352  
Total assets 31,353 28,753 $ 29,666
Accounts payable 928 875  
Other current liabilities 166 156  
Asset retirement obligations 746 628  
Other non‑current liabilities 397 375  
Variable Interest Entity, Primary Beneficiary      
Variable Interest Entity [Line Items]      
Cash and cash equivalents 28 21  
Restricted cash and cash equivalents 0 1  
Accounts receivable 7 3  
Prepayments and other current assets 3 2  
Plant, property, and equipment, net 825 856  
Total assets 863 883  
Accounts payable 15 17  
Other current liabilities 0 2  
Asset retirement obligations 24 23  
Other non‑current liabilities 0 4  
Total liabilities $ 39 $ 46  
v3.22.4
Exit Activities and Discontinued Operations - Narrative (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended 39 Months Ended
Oct. 01, 2021
Mar. 31, 2022
Oct. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Gain from divestiture of business       $ 5 $ 657    
Discontinued Operations, Held-for-sale | EnerBank              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Proceeds from divestiture of businesses $ 1,000            
Gain from divestiture of business     $ 657 5 657 $ 0  
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       24 7    
Retention Benefits | D.E. Karn Generating Complex              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Expected cost       35     $ 35
Retention and severance costs             16
Costs incurred and capitalized       0 $ 1    
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             11
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
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       20      
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      
v3.22.4
Exit Activities and Discontinued Operations - Schedule of Retention Benefit Liability Roll Forward (Details)
$ in Millions
12 Months Ended
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Restructuring Reserve [Roll Forward]    
Other current liabilities $ 166 $ 156
Retention Benefits    
Restructuring Reserve [Roll Forward]    
Retention benefit liability at beginning of period 14 11
Costs deferred as a regulatory asset 24 7
Costs paid or settled (17) (5)
Retention benefit liability at the end of the period 21 14
Other current liabilities 13 5
Retention Benefits | D.E. Karn Generating Complex    
Restructuring Reserve [Roll Forward]    
Costs incurred and capitalized $ 0 $ 1
v3.22.4
Exit Activities and Discontinued Operations - Income from Discontinued Operations (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Oct. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Gain on sale   $ 5 $ 657  
Income tax expense   1 170 $ 18
Income from discontinued operations, net of tax   4 602 58
Discontinued Operations, Held-for-sale | EnerBank        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Operating revenue   0 209 262
Operating expenses   0 60 130
Interest expense   0 34 56
Income before income taxes   0 115 76
Gain on sale $ 657 5 657 0
Income from discontinued operations before income taxes   5 772 76
Income tax expense   1 170 18
Income from discontinued operations, net of tax   $ 4 $ 602 $ 58
v3.22.4
Schedule I - Condensed Financial Information of Registrant (Condensed Statements of Income) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating Expenses      
Other operating expense $ (1,669) $ (1,610) $ (1,280)
Total operating expenses (7,372) (6,183) (5,188)
Operating income (loss) 1,224 1,146 1,230
Other Income (Expense)      
Non-operating retirement benefits, net 205 165 118
Interest income – related parties 0 0 7
Other income 19 30 28
Other expense (27) (18) (62)
Total other income 197 177 84
Interest Charges      
Interest on long-term debt 509 481 483
Intercompany interest expense and other 0 10 12
Total interest charges 519 500 505
Income Before Income Taxes 902 823 809
Income tax expense (benefit) 93 95 115
Income From Continuing Operations 809 728 694
Income (Loss) From Discontinued Operations, Net of Tax 4 602 58
Net Income Attributable to CMS Energy 837 1,353 755
Preferred Stock Dividends 10 5 0
Net Income Available to Common Stockholders 827 1,348 755
CMS Energy      
Operating Expenses      
Other operating expense (7) (7) (6)
Total operating expenses (7) (7) (6)
Operating income (loss) (7) (7) (6)
Other Income (Expense)      
Equity earnings of subsidiaries 980 1,482 909
Non-operating retirement benefits, net (1) (1) (1)
Interest income 2 0 0
Interest income – related parties 2 1 1
Other income 1 1 1
Other expense (1) 0 (19)
Total other income 983 1,483 891
Interest Charges      
Interest on long-term debt 181 183 178
Intercompany interest expense and other 8 7 7
Total interest charges 189 190 185
Income Before Income Taxes 787 1,286 700
Income tax expense (benefit) (50) (60) (55)
Income From Continuing Operations 837 1,346 755
Income (Loss) From Discontinued Operations, Net of Tax 0 7 0
Net Income Attributable to CMS Energy 837 1,353 755
Preferred Stock Dividends 10 5 0
Net Income Available to Common Stockholders $ 827 $ 1,348 $ 755
v3.22.4
Schedule 1 - Condensed Financial Information of Registrant (Condensed Statements of Income - Parenthetical) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Condensed Income Statements, Captions [Line Items]      
Tax effect of discontinued operations $ 1 $ 170 $ 18
CMS Energy      
Condensed Income Statements, Captions [Line Items]      
Tax effect of discontinued operations $ 0 $ (5) $ 0
v3.22.4
Schedule I - Condensed Financial Information of Registrant (Condensed Statements Of Cash Flows) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash Flows from Operating Activities      
Net cash provided by operating activities $ 855 $ 1,819 $ 1,276
Cash Flows from Investing Activities      
Net cash used in investing activities (2,476) (1,233) (2,867)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 1,899 335 3,179
Issuance of common stock 69 26 253
Issuance of preferred stock, net of issuance costs 0 224 0
Retirement of long-term debt (106) (235) (2,010)
Debt prepayment costs 0 0 (59)
Payment of dividends on common and preferred stock (546) (509) (467)
Net cash provided by (used in) financing activities 1,327 (295) 1,619
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts (294) 291 28
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 476 185 157
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 182 476 185
CMS Energy      
Cash Flows from Operating Activities      
Net cash provided by operating activities 565 1,549 507
Cash Flows from Investing Activities      
Investment in subsidiaries (796) (581) (657)
Decrease (increase) in notes receivable – intercompany 286    
Decrease (increase) in notes receivable – intercompany   (83) (307)
Net cash used in investing activities (510) (664) (964)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 0 0 1,225
Issuance of common stock 69 26 253
Issuance of preferred stock, net of issuance costs 0 224 0
Retirement of long-term debt 0 (200) (425)
Debt prepayment costs 0 0 (16)
Payment of dividends on common and preferred stock (544) (507) (465)
Debt issuance costs and financing fees (11) (10) (10)
Change in notes payable – intercompany 77 (28) (105)
Net cash provided by (used in) financing activities (409) (495) 457
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts (354) 390 0
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 390 0 0
Cash and Cash Equivalents, Including Restricted Amounts, End of Period $ 36 $ 390 $ 0
v3.22.4
Schedule I - Condensed Financial Information of Registrant (Condensed Balance Sheets) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current Assets      
Cash and cash equivalents $ 164 $ 452  
Accounts receivable – intercompany and related parties 16 12  
Prepayments and other current assets 113 139  
Total current assets 3,433 2,627  
Other Non‑current Assets      
Other 310 264  
Total other non‑current assets 5,207 3,774  
Total Assets 31,353 28,753 $ 29,666
Current Liabilities      
Accounts and notes payable – intercompany 8 11  
Accrued interest, including intercompany 122 107  
Accrued taxes 538 515  
Other current liabilities 166 156  
Total current liabilities 2,985 2,204  
Non‑current Liabilities      
Long-term debt 13,122 12,046  
Postretirement benefits 108 142  
Other non‑current liabilities 397 375  
Total non‑current liabilities 20,773 19,361  
Equity      
Total common stockholders’ equity 6,791 6,407  
Preferred stock 224 224  
Total stockholders’ equity 7,015 6,631  
Total Liabilities and Equity 31,353 28,753  
CMS Energy      
Current Assets      
Cash and cash equivalents 36 390  
DB SERP note receivable – related party 107 463  
Accounts receivable – intercompany and related parties 8 5  
Accrued taxes 45 0  
Prepayments and other current assets 1 1  
Total current assets 197 859  
Other Non‑current Assets      
Deferred income taxes 105 147  
Investments in subsidiaries 10,881 9,870  
Other investments 6 6  
Other 11 8  
Total other non‑current assets 11,003 10,031  
Total Assets 11,200 10,890  
Current Liabilities      
Accounts and notes payable – intercompany 74 61  
Accrued interest, including intercompany 33 33  
Accrued taxes 0 83  
Other current liabilities 9 8  
Total current liabilities 116 185  
Non‑current Liabilities      
Long-term debt 3,930 3,928  
Notes payable – intercompany 109 112  
Postretirement benefits 15 19  
Other non‑current liabilities 15 15  
Total non‑current liabilities 4,069 4,074  
Equity      
Total common stockholders’ equity 6,791 6,407  
Preferred stock 224 224  
Total stockholders’ equity 7,015 6,631  
Total Liabilities and Equity $ 11,200 $ 10,890  
v3.22.4
Schedule I - Condensed Financial Information of Registrant (Narrative) (Details)
$ in Billions
Dec. 31, 2022
USD ($)
CMS Energy  
Condensed Financial Statements, Captions [Line Items]  
Maximum potential obligation $ 1.0
v3.22.4
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Allowance for uncollectible accounts      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 20 $ 29 $ 20
Charged to Expense 50 22 33
Charged to Other Accounts 0 0 0
Deductions 43 31 24
Balance at End of Period 27 20 29
Allowance for uncollectible accounts | Consumers Energy Company      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 20 29 20
Charged to Expense 50 22 33
Charged to Other Accounts 0 0 0
Deductions 43 31 24
Balance at End of Period 27 20 29
Deferred tax valuation allowance      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 2 1 2
Charged to Expense 0 1 0
Charged to Other Accounts 0 0 0
Deductions 0 0 1
Balance at End of Period $ 2 $ 2 $ 1