CMS ENERGY CORP, 10-K filed on 2/11/2021
Annual Report
v3.20.4
Cover page - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Jan. 15, 2021
Jun. 30, 2020
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2020    
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     $ 16,647
Entity Common Stock, Shares Outstanding   288,943,354  
Documents Incorporated by Reference CMS Energy’s and Consumers’ proxy statement relating to their 2021 Annual Meetings of Shareholders to be held May 7, 2021.    
Entity Central Index Key 0000811156    
Document Fiscal Year Focus 2020    
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  
Documents Incorporated by Reference CMS Energy’s and Consumers’ proxy statement relating to their 2021 Annual Meetings of Shareholders to be held May 7, 2021.    
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, $0.01 par value    
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    
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: $4.50 Series    
Trading Symbol CMS-PB    
Security Exchange Name NYSE    
v3.20.4
Consolidated Statements Of Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Operating Revenue $ 6,680 $ 6,845 $ 6,873
Operating Expenses      
Fuel for electric generation 375 493 528
Purchased power – related parties 64 75 81
Maintenance and other operating expenses 1,403 1,448 1,417
Depreciation and amortization 1,048 992 933
General taxes 359 333 303
Total operating expenses 5,318 5,606 5,711
Operating Income 1,362 1,239 1,162
Other Income (Expense)      
Interest income 4 7 11
Interest and dividend income – related parties 7 0 0
Allowance for equity funds used during construction 6 10 6
Income from equity method investees 5 10 9
Nonoperating retirement benefits, net 118 91 90
Other income 6 4 2
Other expense (62) (13) (48)
Total other income 84 109 70
Interest Charges      
Interest on long-term debt 483 439 412
Interest expense – related parties 12 9 0
Other interest expense 68 75 49
Allowance for borrowed funds used during construction (2) (4) (3)
Total interest charges 561 519 458
Income Before Income Taxes 885 829 774
Income Tax Expense 133 147 115
Net Income 752 682 659
Income (Loss) Attributable to Noncontrolling Interests (3) 2 2
Net Income Available to Common Stockholders $ 755 $ 680 $ 657
Basic earnings per average common share (in dollars per share) $ 2.65 $ 2.40 $ 2.33
Diluted earnings per average common share (in dollars per share) $ 2.64 $ 2.39 $ 2.32
Consumers Energy Company      
Operating Revenue $ 6,189 $ 6,376 $ 6,464
Operating Expenses      
Fuel for electric generation 286 375 407
Purchased and interchange power 1,454 1,470 1,587
Purchased power – related parties 64 75 83
Cost of gas sold 568 754 819
Maintenance and other operating expenses 1,224 1,275 1,287
Depreciation and amortization 1,023 975 921
General taxes 349 322 295
Total operating expenses 4,968 5,246 5,399
Operating Income 1,221 1,130 1,065
Other Income (Expense)      
Interest income 3 5 8
Interest and dividend income – related parties 5 5 2
Allowance for equity funds used during construction 6 10 6
Nonoperating retirement benefits, net 112 85 83
Other income 5 3 2
Other expense (43) (13) (30)
Total other income 88 95 71
Interest Charges      
Interest on long-term debt 299 277 276
Interest expense – related parties 12 9 0
Other interest expense 11 15 16
Allowance for borrowed funds used during construction (2) (4) (3)
Total interest charges 320 297 289
Income Before Income Taxes 989 928 847
Income Tax Expense 173 185 142
Net Income 816 743 705
Preferred Stock Dividends 2 2 2
Net Income Available to Common Stockholders 814 741 703
Purchased and interchange power      
Operating Expenses      
Cost of goods and services sold 1,492 1,496 1,613
Cost of gas sold      
Operating Expenses      
Cost of goods and services sold $ 577 $ 769 $ 836
v3.20.4
Consolidated Statements Of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Net Income $ 752 $ 682 $ 659
Retirement Benefits Liability      
Net loss arising during the period, net of tax (15) (7) (4)
Settlement arising during the period, net of tax 1 0 0
Prior service credit adjustment, net of tax (1) 0 (1)
Amortization of net actuarial loss, net of tax 5 3 4
Amortization of prior service credit, net of tax (1) (2) (1)
Derivatives      
Unrealized loss on derivative instruments, net of tax of $(2), $(1), and $— (4) (3) (2)
Reclassification adjustments included in net income, net of tax of $— for all periods 2 1 0
Other Comprehensive Loss (13) (8) (4)
Comprehensive Income 739 674 655
Comprehensive Income (Loss) Attributable to Noncontrolling Interests (3) 2 2
Comprehensive Income Attributable to CMS Energy 742 672 653
Consumers Energy Company      
Net Income 816 743 705
Retirement Benefits Liability      
Net loss arising during the period, net of tax (9) (8) 6
Amortization of net actuarial loss, net of tax 1 1 2
Investments      
Unrealized gain on investments, net of tax 0 0 (1)
Reclassification adjustments included in net income, net of tax 0 0 1
Derivatives      
Other Comprehensive Loss (8) (7) 8
Comprehensive Income $ 808 $ 736 $ 713
v3.20.4
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Net loss arising during the period, TAX $ (4) $ (3) $ (1)
Settlement arising during the period, TAX 0 0 0
Prior service credit adjustment, TAX 0 0 0
Amortization of net actuarial loss, TAX 1 1 1
Amortization of prior service credit, TAX 0 0 (1)
Unrealized loss on derivative instruments, TAX (2) (1) 0
Reclassification adjustments included in net income , TAX 0 0 0
Consumers Energy Company      
Net loss arising during the period, TAX (3) (3) 2
Amortization of net actuarial loss, TAX 1 0 0
Unrealized loss on investments, TAX 0 0 0
Reclassification adjustments included in net income , TAX $ 0 $ 0 $ 0
v3.20.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Cash Flows from Operating Activities      
Net Income $ 752 $ 682 $ 659
Adjustments to reconcile net income to net cash provided by operating activities      
Depreciation and amortization 1,048 992 933
Deferred income taxes and investment tax credits 170 150 182
Bad debt expense 90 67 54
Other non‑cash operating activities and reconciling adjustments (22) (58) 22
Postretirement benefits contributions (712) (10) (252)
Cash provided by (used in) changes in assets and liabilities      
Accounts and notes receivable and accrued revenue (12) 45 15
Inventories 28 44 14
Accounts payable and accrued rate refunds 54 (69) 22
Other current and non‑current assets and liabilities (120) (53) 54
Net cash provided by operating activities 1,276 1,790 1,703
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) (2,317) (2,104) (2,074)
Increase in EnerBank notes receivable (657) (401) (307)
Purchase of notes receivable by EnerBank (17) (343) (225)
Proceeds from DB SERP investments 0 0 146
Proceeds from sale of EnerBank notes receivable 197 67 0
Proceeds from sale of transmission equipment 58 97 0
Cost to retire property and other investing activities (131) (132) (146)
Net cash used in investing activities (2,867) (2,816) (2,606)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 3,179 2,151 2,767
Retirement of debt (2,010) (1,285) (1,870)
Increase in EnerBank certificates of deposit 416 631 513
Decrease in notes payable (90) (7) (73)
Issuance of common stock, net of issuance costs 253 12 41
Payment of dividends on common and preferred stock (467) (436) (407)
Debt prepayment costs (59) (8) (36)
Proceeds from the sale of membership interest in VIE to tax equity investor 417 0 0
Contribution from noncontrolling interest 31 0 0
Other financing costs (51) (50) (61)
Net cash provided by financing activities 1,619 1,008 874
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 28 (18) (29)
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 157 175 204
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 185 157 175
Cash transactions      
Interest paid (net of amounts capitalized) 549 498 458
Income taxes paid (refunds received), net (58) (58) (123)
Non‑cash transactions      
Capital expenditures not paid 141 170 158
Consumers Energy Company      
Cash Flows from Operating Activities      
Net Income 816 743 705
Adjustments to reconcile net income to net cash provided by operating activities      
Depreciation and amortization 1,023 975 921
Deferred income taxes and investment tax credits 177 37 123
Bad debt expense     29
Other non‑cash operating activities and reconciling adjustments (30) (32) 13
Postretirement benefits contributions (690) (7) (242)
Cash provided by (used in) changes in assets and liabilities      
Accounts and notes receivable and accrued revenue (46) 8 (26)
Inventories 26 40 15
Accounts payable and accrued rate refunds 45 (63) 12
Other current and non‑current assets and liabilities (136) (129) (101)
Net cash provided by operating activities 1,218 1,601 1,449
Cash Flows from Investing Activities      
Capital expenditures (excludes assets placed under finance lease) (2,170) (2,085) (1,822)
Proceeds from DB SERP investments 0 0 106
DB SERP investment in note receivable – related party (5) 0 (106)
Proceeds from sale of transmission equipment 58 77 0
Cost to retire property and other investing activities (129) (129) (149)
Net cash used in investing activities (2,246) (2,137) (1,971)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 1,954 993 2,106
Retirement of debt (1,086) (541) (1,193)
Decrease in notes payable (90) (7) (73)
Increase in notes payable – related parties 307 0 0
Stockholder contribution 650 675 250
Payment of dividends on common and preferred stock (639) (594) (533)
Debt prepayment costs (43) (8) (20)
Other financing costs (18) (10) (24)
Net cash provided by financing activities 1,035 508 513
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 7 (28) (9)
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 28 56 65
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 35 28 56
Cash transactions      
Interest paid (net of amounts capitalized) 305 279 287
Income taxes paid (refunds received), net 51 132 156
Non‑cash transactions      
Capital expenditures not paid $ 130 $ 160 $ 143
v3.20.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Current Assets    
Cash and cash equivalents $ 168 $ 140
Restricted cash and cash equivalents 17 17
Accounts receivable and accrued revenue, less allowance of $29 in 2020 and $20 in 2019 863 886
Notes receivable, less allowance of $32 in 2020 and $33 in 2019 275 242
Accounts receivable – related parties 19 17
Inventories at average cost    
Gas in underground storage 353 399
Materials and supplies 155 140
Generating plant fuel stock 68 66
Deferred property taxes 332 305
Regulatory assets 42 33
Prepayments and other current assets 112 86
Total current assets 2,404 2,331
Plant, Property, and Equipment    
Plant, property, and equipment, gross 27,907 25,390
Less accumulated depreciation and amortization 7,953 7,360
Plant, property, and equipment, net 19,954 18,030
Construction work in progress 1,085 896
Total plant, property, and equipment 21,039 18,926
Other Non‑current Assets    
Regulatory assets 2,653 2,489
Accounts and notes receivable, less allowance of $91 in 2020 and $— in 2019 2,631 2,281
Investments 70 71
Other 869 739
Total other non‑current assets 6,223 5,580
Total Assets 29,666 26,837
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 1,506 1,130
Notes payable 0 90
Accounts payable 671 622
Accounts payable – related parties 7 13
Accrued rate refunds 20 35
Accrued interest 106 104
Accrued taxes 457 437
Regulatory liabilities 151 87
Other current liabilities 156 186
Total current liabilities 3,074 2,704
Non‑current Liabilities    
Long-term debt 13,634 11,951
Non-current portion of finance leases and other financing 56 76
Regulatory liabilities 3,744 3,742
Postretirement benefits 152 674
Asset retirement obligations 553 477
Deferred investment tax credit 115 120
Deferred income taxes 1,863 1,655
Other non‑current liabilities 398 383
Total non‑current liabilities 20,515 19,078
Commitments and Contingencies
Common stockholders’ equity    
Common stock 3 3
Other paid-in capital 5,365 5,113
Accumulated other comprehensive loss (86) (73)
Retained earnings (accumulated deficit) 214 (25)
Total common stockholders’ equity 5,496 5,018
Noncontrolling interests 581 37
Total equity 6,077 5,055
Total Liabilities and Equity 29,666 26,837
Consumers Energy Company    
Current Assets    
Cash and cash equivalents 20 11
Restricted cash and cash equivalents 15 17
Accounts receivable and accrued revenue, less allowance of $29 in 2020 and $20 in 2019 828 827
Accounts receivable – related parties 18 9
Inventories at average cost    
Gas in underground storage 353 399
Materials and supplies 149 135
Generating plant fuel stock 67 63
Deferred property taxes 332 305
Regulatory assets 42 33
Prepayments and other current assets 68 73
Total current assets 1,892 1,872
Plant, Property, and Equipment    
Plant, property, and equipment, gross 26,757 24,963
Less accumulated depreciation and amortization 7,844 7,272
Plant, property, and equipment, net 18,913 17,691
Construction work in progress 1,058 879
Total plant, property, and equipment 19,971 18,570
Other Non‑current Assets    
Regulatory assets 2,653 2,489
Accounts and notes receivable, less allowance of $91 in 2020 and $— in 2019 25 29
Accounts and notes receivable – related parties 105 102
Other 753 637
Total other non‑current assets 3,536 3,257
Total Assets 25,399 23,699
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 384 221
Notes payable 0 90
Notes payable – related parties 307 0
Accounts payable 636 593
Accounts payable – related parties 7 20
Accrued rate refunds 20 35
Accrued interest 72 67
Accrued taxes 458 481
Regulatory liabilities 151 87
Other current liabilities 104 118
Total current liabilities 2,139 1,712
Non‑current Liabilities    
Long-term debt 7,742 7,048
Non-current portion of finance leases and other financing 56 76
Regulatory liabilities 3,744 3,742
Postretirement benefits 112 622
Asset retirement obligations 530 474
Deferred investment tax credit 115 120
Deferred income taxes 2,094 1,864
Other non‑current liabilities 311 304
Total non‑current liabilities 14,704 14,250
Commitments and Contingencies
Common stockholders’ equity    
Common stock 841 841
Other paid-in capital 6,024 5,374
Accumulated other comprehensive loss (36) (28)
Retained earnings (accumulated deficit) 1,690 1,513
Total common stockholders’ equity 8,519 7,700
Cumulative preferred stock, $4.50 series 37 37
Total equity 8,556 7,737
Total Liabilities and Equity $ 25,399 $ 23,699
v3.20.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Accounts receivable and accrued revenue, ALLOWANCE $ 29 $ 20
Notes receivable, ALLOWANCE 32 33
Accounts and notes receivable, ALLOWANCE $ 91 $ 0
Common stock authorized (in shares) 350,000,000.0 350,000,000.0
Common stock outstanding (in shares) 288,900,000 283,900,000
Consumers Energy Company    
Accounts receivable and accrued revenue, ALLOWANCE $ 29 $ 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
v3.20.4
Consolidated Statements Of Changes In Equity - USD ($)
$ in Millions
Total
Common Stock
Other Paid-in Capital
Accumulated Other Comprehensive Loss
Retirement benefits liability
Retirement benefits liability
Cumulative Effect, Period of Adoption, Adjustment
Derivative instruments
Retained Earnings (Accumulated Deficit)
Retained Earnings (Accumulated Deficit)
Cumulative Effect, Period of Adoption, Adjustment
Noncontrolling Interests
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
Retirement benefits liability
Cumulative Effect, Period of Adoption, Adjustment
Consumers Energy Company
Investments
Consumers Energy Company
Investments
Cumulative Effect, Period of Adoption, Adjustment
Consumers Energy Company
Retained Earnings (Accumulated Deficit)
Consumers Energy Company
Retained Earnings (Accumulated Deficit)
Cumulative Effect, Period of Adoption, Adjustment
Consumers Energy Company
Cumulative Preferred Stock
Total Equity at Beginning of Period at Dec. 31, 2017 $ 4,478 $ 3 $ 5,019 $ (50) $ (50) $ (11) $ 0 $ (531) $ 8 $ 37 $ 6,488 $ 841 $ 4,449 $ (12) $ (24) $ (5) $ 12 $ (12) $ 1,173 $ 19 $ 37
Beginning of period (in shares) at Dec. 31, 2017   281,647,000                                      
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                          
Common stock issued (in shares)   1,554,000                                      
Common stock issued     59                                    
Common stock repurchased (in shares)   (224,000)                                      
Common stock repurchased     (10)                                    
Common stock reissued (in shares)   423,000                                      
Common stock reissued     20                                    
Common stock reacquired (in shares)   (26,000)                                      
Common stock reacquired     0                                    
Stockholder contribution                         250                
Net loss arising during the period (4)       (4)           6       6            
Settlement arising during the period 0       0                                
Prior service credit adjustment (1)       (1)                                
Amortization of net actuarial loss 4       4           2       2            
Amortization of prior service credit (1)       (1)                                
Unrealized gain (loss) on investments                     (1)           (1)        
Reclassification adjustments included in net income                     1           1        
Unrealized loss on derivative instruments (2)           (2)                            
Reclassification adjustments included in net income 0           0                            
Net Income 659             657   2 705               705    
Dividends declared on common stock               (405)                     (531)    
Dividends declared on preferred stock                                     (2)    
Impact of purchase and consolidation of VIE                   0                      
Sale of membership interest in VIE to tax equity investor                   0                      
Contribution from noncontrolling interest                   0                      
Distributions and other changes in noncontrolling interests                   (2)                      
End of period (in shares) at Dec. 31, 2018   283,374,000                                      
Total Equity at End of Period at Dec. 31, 2018 $ 4,792 $ 3 5,088 (65) (63) 0 (2) (271) 0 37 6,920 841 4,699 (21) (21) 0 0 0 1,364 0 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                          
Dividends declared per common share (in dollars per share) $ 1.43                                        
Common stock issued (in shares)   710,000                                      
Common stock issued     35                                    
Common stock repurchased (in shares)   (181,000)                                      
Common stock repurchased     (10)                                    
Common stock reissued (in shares)   8,000                                      
Common stock reissued     0                                    
Common stock reacquired (in shares)   (47,000)                                      
Common stock reacquired     0                                    
Stockholder contribution                         675                
Net loss arising during the period $ (7)       (7)           (8)       (8)            
Settlement arising during the period 0       0                                
Prior service credit adjustment 0       0                                
Amortization of net actuarial loss 3       3           1       1            
Amortization of prior service credit (2)       (2)                                
Unrealized gain (loss) on investments                     0           0        
Reclassification adjustments included in net income                     0           0        
Unrealized loss on derivative instruments (3)           (3)                            
Reclassification adjustments included in net income 1           1                            
Net Income $ 682             680   2 $ 743               743    
Dividends declared on common stock               (434)                     (592)    
Dividends declared on preferred stock                                     (2)    
Impact of purchase and consolidation of VIE                   0                      
Sale of membership interest in VIE to tax equity investor                   0                      
Contribution from noncontrolling interest                   0                      
Distributions and other changes in noncontrolling interests                   (2)                      
End of period (in shares) at Dec. 31, 2019 283,900,000 283,864,000                 84,100,000                    
Total Equity at End of Period at Dec. 31, 2019 $ 5,055 $ 3 5,113 (73) (69) $ 0 (4) (25) $ (51) 37 $ 7,737 841 5,374 (28) (28) $ 0 0 $ 0 1,513 $ 0 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                          
Dividends declared per common share (in dollars per share) $ 1.53                                        
Common stock issued (in shares)   5,609,000                                      
Common stock issued     265                                    
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)                                    
Stockholder contribution                         650                
Net loss arising during the period $ (15)       (15)           (9)       (9)            
Settlement arising during the period 1       1                                
Prior service credit adjustment (1)       (1)                                
Amortization of net actuarial loss 5       5           1       1            
Amortization of prior service credit (1)       (1)                                
Unrealized gain (loss) on investments                     0           0        
Reclassification adjustments included in net income                     0           0        
Unrealized loss on derivative instruments (4)           (4)                            
Reclassification adjustments included in net income 2           2                            
Net Income $ 752             755   (3) $ 816               816    
Dividends declared on common stock               (465)                     (637)    
Dividends declared on preferred stock                                     (2)    
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 288,900,000 288,940,000                 84,100,000                    
Total Equity at End of Period at Dec. 31, 2020 $ 6,077 $ 3 $ 5,365 $ (86) $ (80)   $ (6) $ 214   $ 581 $ 8,556 $ 841 $ 6,024 $ (36) $ (36)   $ 0   $ 1,690   $ 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                          
Dividends declared per common share (in dollars per share) $ 1.63                                        
v3.20.4
Significant Accounting Policies
12 Months Ended
Dec. 31, 2020
Significant Accounting Policies [Line Items]  
Significant Accounting Policies Significant Accounting Policies
Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, CMS Enterprises, EnerBank, 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 or is the primary beneficiary. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances.
Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates.
Contingencies: CMS Energy and Consumers record estimated liabilities for contingencies on their consolidated financial statements when it is probable that a liability 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 and notes receivable 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 6, 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 15, 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 or if there has been a decline in value that may be other than temporary.
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses.
CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary.
Investment Tax Credits: Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment. CMS Energy’s non‑regulated businesses use the deferral method of accounting for investment tax credits. Under the deferral method, the book basis of the associated assets is reduced by the amount of the credit, resulting in lower depreciation expense over the life of the assets. Furthermore, the tax basis of the assets is reduced by 50 percent of the related credit, resulting in a net deferred tax asset. CMS Energy recognizes the tax benefit of this basis difference as a reduction to income tax expense in the year in which the plant reaches commercial operation.
Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets.
CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. CMS Energy and Consumers classify these amounts within other assets on their consolidated balance sheets.
CMS Energy and Consumers evaluate inventory for impairment as required to ensure that its carrying value does not exceed the lower of cost or net realizable value.
MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements.
Property Taxes: Property taxes are based on the taxable value of Consumers’ real and personal property assessed by local taxing authorities. Consumers records property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
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 8, Notes Receivable
Note 9, Plant, Property, and Equipment
Note 11, Asset Retirement Obligations
Note 12, Retirement Benefits
Note 14, Income Taxes
Note 15, Earnings Per Share—CMS Energy
Note 16, Revenue
Note 18, Cash and Cash Equivalents
Note 21, Variable Interest Entities
Consumers Energy Company  
Significant Accounting Policies [Line Items]  
Significant Accounting Policies Significant Accounting Policies
Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, CMS Enterprises, EnerBank, 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 or is the primary beneficiary. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances.
Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates.
Contingencies: CMS Energy and Consumers record estimated liabilities for contingencies on their consolidated financial statements when it is probable that a liability 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 and notes receivable 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 6, 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 15, 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 or if there has been a decline in value that may be other than temporary.
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses.
CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary.
Investment Tax Credits: Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment. CMS Energy’s non‑regulated businesses use the deferral method of accounting for investment tax credits. Under the deferral method, the book basis of the associated assets is reduced by the amount of the credit, resulting in lower depreciation expense over the life of the assets. Furthermore, the tax basis of the assets is reduced by 50 percent of the related credit, resulting in a net deferred tax asset. CMS Energy recognizes the tax benefit of this basis difference as a reduction to income tax expense in the year in which the plant reaches commercial operation.
Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets.
CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. CMS Energy and Consumers classify these amounts within other assets on their consolidated balance sheets.
CMS Energy and Consumers evaluate inventory for impairment as required to ensure that its carrying value does not exceed the lower of cost or net realizable value.
MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements.
Property Taxes: Property taxes are based on the taxable value of Consumers’ real and personal property assessed by local taxing authorities. Consumers records property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
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 8, Notes Receivable
Note 9, Plant, Property, and Equipment
Note 11, Asset Retirement Obligations
Note 12, Retirement Benefits
Note 14, Income Taxes
Note 15, Earnings Per Share—CMS Energy
Note 16, Revenue
Note 18, Cash and Cash Equivalents
Note 21, Variable Interest Entities
v3.20.4
New Accounting Standards
12 Months Ended
Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
New Accounting Standards New Accounting Standards
Implementation of New Accounting Standards
ASU 2016‑13, Measurement of Credit Losses on Financial Instruments: This standard, which was effective on January 1, 2020 for CMS Energy and Consumers, provides new guidance for measuring and recognizing credit losses on financial instruments. The standard applies to financial assets that are not measured at fair value through net income as well as to certain off‑balance-sheet credit exposures. CMS Energy and Consumers were required to apply the standard using a modified retrospective approach, under which the initial impacts of the standard are recorded through a cumulative-effect adjustment to beginning retained earnings on the effective date.
The standard required an increase to the allowance for loan losses at EnerBank. Prior to the standard, the allowance reflected expected credit losses over a 12‑month period, but the new guidance requires the allowance to reflect expected credit losses over the entire life of the loans. As a result, CMS Energy recorded a $65 million increase to its expected credit loss reserves on January 1, 2020, with the offsetting adjustment recorded to retained earnings, net of taxes of $14 million. The standard also requires an increase in the initial provision for loan losses recognized in net income for new loans originated in 2020 and beyond. The adoption of this standard resulted in a $21 million reduction to CMS Energy’s income before income taxes for the year ended December 31, 2020. For further information on EnerBank’s loans and the related allowance for loan losses see Note 8, Notes Receivable. At Consumers, the standard applies to the allowance for uncollectible accounts, but did not result in any significant changes to the allowance methodology and did not have a material impact on Consumers’ consolidated financial statements.
ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting: This standard, which was effective as of March 12, 2020 for CMS Energy and Consumers, provides optional guidance intended to ease the potential burden in accounting for the expected discontinuation of LIBOR as a reference rate in the financial markets. The guidance can be applied to modifications made to certain contracts to replace LIBOR with a new reference rate. The guidance, if elected, will permit entities to treat such modifications as the continuation of the original contract, without any required accounting reassessments or remeasurements. The guidance will also facilitate the continuation of hedge accounting for derivatives that may have to be modified to incorporate a new rate. The guidance is effective through December 31, 2022. CMS Energy and Consumers presently have various contracts that reference LIBOR and they are assessing how this standard may be applied to specific contract modifications.
Consumers Energy Company  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
New Accounting Standards New Accounting Standards
Implementation of New Accounting Standards
ASU 2016‑13, Measurement of Credit Losses on Financial Instruments: This standard, which was effective on January 1, 2020 for CMS Energy and Consumers, provides new guidance for measuring and recognizing credit losses on financial instruments. The standard applies to financial assets that are not measured at fair value through net income as well as to certain off‑balance-sheet credit exposures. CMS Energy and Consumers were required to apply the standard using a modified retrospective approach, under which the initial impacts of the standard are recorded through a cumulative-effect adjustment to beginning retained earnings on the effective date.
The standard required an increase to the allowance for loan losses at EnerBank. Prior to the standard, the allowance reflected expected credit losses over a 12‑month period, but the new guidance requires the allowance to reflect expected credit losses over the entire life of the loans. As a result, CMS Energy recorded a $65 million increase to its expected credit loss reserves on January 1, 2020, with the offsetting adjustment recorded to retained earnings, net of taxes of $14 million. The standard also requires an increase in the initial provision for loan losses recognized in net income for new loans originated in 2020 and beyond. The adoption of this standard resulted in a $21 million reduction to CMS Energy’s income before income taxes for the year ended December 31, 2020. For further information on EnerBank’s loans and the related allowance for loan losses see Note 8, Notes Receivable. At Consumers, the standard applies to the allowance for uncollectible accounts, but did not result in any significant changes to the allowance methodology and did not have a material impact on Consumers’ consolidated financial statements.
ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting: This standard, which was effective as of March 12, 2020 for CMS Energy and Consumers, provides optional guidance intended to ease the potential burden in accounting for the expected discontinuation of LIBOR as a reference rate in the financial markets. The guidance can be applied to modifications made to certain contracts to replace LIBOR with a new reference rate. The guidance, if elected, will permit entities to treat such modifications as the continuation of the original contract, without any required accounting reassessments or remeasurements. The guidance will also facilitate the continuation of hedge accounting for derivatives that may have to be modified to incorporate a new rate. The guidance is effective through December 31, 2022. CMS Energy and Consumers presently have various contracts that reference LIBOR and they are assessing how this standard may be applied to specific contract modifications.
v3.20.4
Regulatory Matters
12 Months Ended
Dec. 31, 2020
Public Utilities, General Disclosures [Line Items]  
Regulatory Matters Regulatory Matters
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings.
There are multiple appeals pending that involve various issues concerning cost recovery from customers, the adequacy of the record of evidence supporting the recovery of Smart Energy investments, 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 Period20202019
Regulatory assets
Current
Energy waste reduction plan incentive1
2021$34 $33 
Deferred capital spending2
2021— 
Other2021— 
Total current regulatory assets$42 $33 
Non-current
Postretirement benefits3
various$1,231 $1,130 
Costs of coal-fueled electric generating units to be retired2
various678 667 
Securitized costs2
2029221 247 
ARO4
various216 191 
MGP sites4
various120 130 
Unamortized loss on reacquired debt4
various108 70 
Energy waste reduction plan incentive1
202242 34 
Energy waste reduction plan4
various16 10 
Demand response program4
various10 
COVID-19 costs accounting deferral4
various— 
Othervarious
Total non-current regulatory assets$2,653 $2,489 
Total regulatory assets$2,695 $2,522 
Regulatory liabilities
Current
Income taxes, net2021$105 $65 
Reserve for customer refunds202128 
Voluntary transmission asset sale gain share202114 17 
Other2021
Total current regulatory liabilities$151 $87 
Non-current
Cost of removalvarious$2,245 $2,126 
Income taxes, netvarious1,419 1,510 
Renewable energy grant204349 52 
AROvarious11 26 
Renewable energy plan202817 
Othervarious11 11 
Total non-current regulatory liabilities$3,744 $3,742 
Total regulatory liabilities$3,895 $3,829 
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 historically authorized and Consumers expects the MPSC to authorize a specific return on these regulatory assets.
3This regulatory asset is included in rate base, thereby providing a return.
4These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment.
Regulatory Assets
Energy Waste Reduction Plan Incentive: The energy waste reduction incentive mechanism provides a financial incentive if the energy savings of Consumers’ customers exceed annual targets established by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the incentive as soon as energy savings exceed the annual targets established by the MPSC.
In November 2020, the MPSC approved a settlement agreement authorizing Consumers to collect $34 million during 2021 as an incentive for exceeding its statutory savings targets in 2019. Consumers recognized incentive revenue under this program of $34 million in 2019.
Consumers also exceeded its statutory savings targets in 2020, achieved certain other goals, and will request the MPSC’s approval to collect $42 million, the maximum performance incentive, in the energy waste reduction reconciliation to be filed in 2021. Consumers recognized incentive revenue under this program of $42 million in 2020.
Deferred Capital Spending: In January 2019, the MPSC approved a settlement agreement in Consumers’ 2018 electric rate case, which provided deferred accounting treatment for distribution-related capital investments exceeding certain threshold amounts. Thus, for actual capital spending above the threshold amounts detailed in the settlement agreement, Consumers has deferred as a regulatory asset the associated depreciation and property tax expense as well as the debt component of the overall rate of return on such spending.
Postretirement Benefits: As part of the ratemaking process, the MPSC allows Consumers to recover the costs of postretirement benefits. Accordingly, Consumers defers the net impact of actuarial losses and gains, prior service costs and credits, and settlements associated with postretirement benefits as a regulatory asset or liability. The asset or liability will decrease as the deferred items are amortized and recognized as components of net periodic benefit cost. For details about settlements and the amortization periods, see Note 12, Retirement Benefits.
Costs of Coal-fueled Electric Generating Units to be Retired: In June 2019, the MPSC approved the settlement agreement reached in Consumers’ IRP, under which Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Under Michigan law, electric utilities have been permitted to use highly rated, low-cost securitization bonds to finance the recovery of qualified costs. In 2019, Consumers removed from total plant, property, and equipment an amount representing the projected remaining book value of the two coal-fueled electric generating units upon their retirement, and recorded it as a regulatory asset. Until securitization, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases.
In December 2020, the MPSC issued a securitization financing order authorizing Consumers to issue securitization bonds in order to finance the recovery of the remaining book value of the two coal-fueled electric generating units upon their retirement. An intervenor has appealed the order, contending that it should not have to pay the securitization surcharge.
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 5, Financings and Capitalization.
ARO: The recovery of the underlying asset investments and related removal and monitoring costs of recorded AROs is approved by the MPSC in depreciation rate cases. Consumers records a regulatory asset and a regulatory liability for timing differences between the recognition of AROs for financial reporting purposes and the recovery of these costs from customers. The recovery period approximates the useful life of the assets to be removed.
MGP Sites: Consumers is incurring environmental remediation and other response activity costs at 23 former MGP facilities. The MPSC allows Consumers to recover from its natural gas customers over a ten-year period the costs incurred to remediate the MGP sites.
Unamortized Loss on Reacquired Debt: Under regulatory accounting, any unamortized discount, premium, or expense related to debt redeemed with the proceeds of new debt is capitalized and amortized over the life of the new debt.
Energy Waste Reduction Plan: The MPSC allows Consumers to collect surcharges from customers to fund its energy waste reduction plan. The amount of spending incurred in excess of surcharges collected is recorded as a regulatory asset and amortized as surcharges are collected from customers over the plan period. The amount of surcharges collected in excess of spending incurred is recorded as a regulatory liability and amortized as costs are incurred.
Demand Response Program: In the IRP and in general electric 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 method of recovery of demand response costs will be determined in a future rate case.
COVID‑19 Costs Accounting Deferral: In April 2020, the MPSC issued an order authorizing Consumers to defer uncollectible accounts expense incurred beginning March 24, 2020 that are in excess of the amount used to set existing rates.
Regulatory Liabilities
Income Taxes, Net: Consumers records regulatory assets and liabilities to reflect the difference between deferred income taxes recognized for financial reporting purposes and amounts previously reflected in Consumers’ rates. This net balance will decrease over the remaining life of the related temporary differences and flow through income tax expense. The majority of the net regulatory liability recorded related to income taxes is associated with plant assets that are subject to normalization, which is governed by the Internal Revenue Code, and will be returned to customers over the remaining book life of the related plant assets, the average of which is 44 years for gas plant assets and 27 years for electric plant assets. For additional details on deferred income taxes, see Note 14, Income Taxes.
Reserve for Customer Refunds: In December 2020, the MPSC issued an order authorizing Consumers to refund $28 million voluntarily to utility customers. Consumers is required to submit another filing by the end of February 2021 proposing an appropriate method for making this refund.
Voluntary Transmission Asset Sale Gain Share: In October 2020, Consumers completed a sale of the electric utility’s remaining transmission equipment to METC. In December 2020, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with electric utility customers; this application was approved by the MPSC in February 2021. Consumers will share the gain through an offset to additional spending in 2021 or through a bill credit to electric utility customers in 2022. As a result, Consumers deferred $14 million of the gain in December 2020.
In September 2019, Consumers completed a sale of a portion of its electric utility’s substation transmission equipment to METC. In December 2019, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with customers; this application was approved by the MPSC in April 2020. As a result, Consumers deferred $17 million of the gain in December 2019 and shared that gain with customers in 2020.
Cost of Removal: The MPSC allows Consumers to collect amounts from customers to fund future asset removal activities. This regulatory liability is reduced as costs of removal are incurred. The refund period of this regulatory liability approximates the useful life of the assets to be removed.
Renewable Energy Grant: In 2013, Consumers received a $69 million renewable energy grant for Lake Winds® Energy Park, which began operations in 2012. This grant reduces Consumers’ cost of complying with Michigan’s renewable portfolio standard and, accordingly, reduces the overall renewable energy surcharge to be collected from customers. The regulatory liability recorded for the grant will be amortized over the life of Lake Winds® Energy Park.
Renewable Energy Plan: Consumers has collected surcharges to fund its renewable energy plan. Amounts not yet spent under the plan are recorded as a regulatory liability, which is amortized as incremental costs are incurred to operate and depreciate Consumers’ renewable generation facilities and to purchase RECs under renewable energy purchase agreements. Incremental costs represent costs incurred in excess of amounts recovered through the PSCR process.
Consumers Electric Utility
2020 Electric Rate Case: In February 2020, Consumers filed an application with the MPSC seeking an annual rate increase of $244 million, based on a 10.5 percent authorized return on equity and a projected twelve-month period ending December 31, 2021. In July 2020, Consumers reduced its requested annual rate increase to $230 million. In December 2020, the MPSC approved an annual rate increase of $90 million, based on a 9.9 percent authorized return on equity. This increase reflects a $36 million refund to customers of regulatory tax liabilities associated with the remeasurement of Consumers’ deferred income taxes as a result of the TCJA; excluding the impacts of this refund, the order resulted in a $126 million increase in annual rates.
The order also approved the recovery of $13 million associated with Consumers’ deferral of depreciation and property tax expense and the overall rate of return on distribution-related capital investments exceeding certain threshold amounts.
Additionally, the order approved the method of recovering amounts earned under the financial compensation mechanism approved by the MPSC in Consumers’ IRP. This mechanism allows Consumers to earn a return equal to Consumer’s weighted-average cost of capital on payments made under PPAs approved by the MPSC after January 1, 2019. The order authorizes Consumers to recover $3 million, beginning in January 2021, for incentives earned and to be earned on PPA payments during 2019 through 2021. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the mechanism as payments are made on MPSC-approved PPAs. Consumers recognized revenue under this mechanism of $1 million in 2020.
Consumers is also authorized in the order to replace the current net metering tariff with a new distributed generation tariff, pursuant to the 2016 Energy Law. The new distributed generation tariff is consistent with other distributed generation tariffs already approved by the MPSC and will reduce the subsidies paid by non-distributed generation customers under the current net metering program.
Consumers Gas Utility
2019 Gas Rate Case: In December 2019, Consumers filed an application with the MPSC seeking an annual rate increase of $245 million, based on a 10.5 percent authorized return on equity and a projected twelve-month period ending September 30, 2021. In May 2020, Consumers reduced its requested annual rate increase to $229 million. In September 2020, the MPSC approved a settlement agreement authorizing an annual rate increase of $144 million, based on a 9.9 percent authorized return on equity, effective October 1, 2020. As part of that agreement, Consumers agreed not to file a new gas rate case prior to December 2021. 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 by the MPSC. This reconciliation would start in October 2021 and continue until the MPSC resets rates in a subsequent rate case.
Additionally, the MPSC authorized Consumers to accelerate:
the refund of a regulatory liability associated with the unprotected, non‑property-related excess deferred income taxes resulting from the TCJA; Consumers was previously authorized to refund this through 2029
the flow-through of certain income tax benefits associated primarily with the cost of removal of gas plant assets placed in service before 1993; Consumers was previously authorized to refund this through 2025
Under the settlement agreement approved by the MPSC, these benefits, which total $84 million, will now be passed through to customers by September 2022. For additional details, see Note 14, Income Taxes.
Power Supply Cost Recovery and Gas Cost Recovery
The PSCR and GCR ratemaking processes are designed to allow Consumers to recover all of its power supply and purchased natural gas costs if incurred under reasonable and prudent policies and practices. The MPSC reviews these costs, policies, and practices in annual plan and reconciliation proceedings. Consumers adjusts its PSCR and GCR billing charges monthly in order to minimize the underrecovery or overrecovery amount in the annual reconciliations. Underrecoveries represent probable future revenues that will be recovered from customers; overrecoveries represent previously collected revenues that will be refunded to customers.
Presented in the following table are the liabilities for PSCR and GCR overrecoveries reflected on Consumers’ consolidated balance sheets:
In Millions
December 3120202019
Liabilities
PSCR overrecoveries$$33 
GCR overrecoveries15 
Accrued rate refunds$20 $35 
PSCR Plans and Reconciliations: In October 2020, the MPSC issued an order in Consumers’ 2018 PSCR reconciliation, authorizing recovery of $2.0 billion of power costs and authorizing Consumers to reflect in its 2019 PSCR reconciliation the underrecovery of $28 million.
In April 2020, the MPSC issued an order in Consumers’ 2019 PSCR plan authorizing the 2019 PSCR charge that Consumers self-implemented beginning in January 2019. In March 2020, Consumers filed its 2019 PSCR reconciliation, requesting full recovery of $1.9 billion of power costs and authorization to reflect in its 2020 PSCR reconciliation the overrecovery of $21 million.
Consumers submitted its 2020 PSCR plan to the MPSC in September 2019 and, in accordance with its proposed plan, self-implemented the 2020 PSCR charge beginning in January 2020.
GCR Plans and Reconciliations: In September 2020, the MPSC issued an order in Consumers’ 2018-2019 GCR reconciliation, authorizing recovery of $0.6 billion of gas costs and authorizing Consumers to reflect in its 2019-2020 GCR reconciliation the underrecovery of $11 million. The MPSC disallowed the recovery of $7 million in incremental gas purchases related to the Ray Compressor Station fire. For additional details, see Note 4, Contingencies and Commitments—Consumers Gas Utility Contingencies.
In June 2020, Consumers filed its 2019-2020 GCR reconciliation, requesting full recovery of $0.5 billion of gas costs and authorization to reflect in its 2020-2021 GCR reconciliation the underrecovery of $1 million.
In September 2020, the MPSC approved a settlement agreement in Consumers’ 2020-2021 GCR plan authorizing the 2020-2021 GCR charge that Consumers self-implemented beginning in April 2020.
Consumers Energy Company  
Public Utilities, General Disclosures [Line Items]  
Regulatory Matters Regulatory Matters
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings.
There are multiple appeals pending that involve various issues concerning cost recovery from customers, the adequacy of the record of evidence supporting the recovery of Smart Energy investments, 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 Period20202019
Regulatory assets
Current
Energy waste reduction plan incentive1
2021$34 $33 
Deferred capital spending2
2021— 
Other2021— 
Total current regulatory assets$42 $33 
Non-current
Postretirement benefits3
various$1,231 $1,130 
Costs of coal-fueled electric generating units to be retired2
various678 667 
Securitized costs2
2029221 247 
ARO4
various216 191 
MGP sites4
various120 130 
Unamortized loss on reacquired debt4
various108 70 
Energy waste reduction plan incentive1
202242 34 
Energy waste reduction plan4
various16 10 
Demand response program4
various10 
COVID-19 costs accounting deferral4
various— 
Othervarious
Total non-current regulatory assets$2,653 $2,489 
Total regulatory assets$2,695 $2,522 
Regulatory liabilities
Current
Income taxes, net2021$105 $65 
Reserve for customer refunds202128 
Voluntary transmission asset sale gain share202114 17 
Other2021
Total current regulatory liabilities$151 $87 
Non-current
Cost of removalvarious$2,245 $2,126 
Income taxes, netvarious1,419 1,510 
Renewable energy grant204349 52 
AROvarious11 26 
Renewable energy plan202817 
Othervarious11 11 
Total non-current regulatory liabilities$3,744 $3,742 
Total regulatory liabilities$3,895 $3,829 
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 historically authorized and Consumers expects the MPSC to authorize a specific return on these regulatory assets.
3This regulatory asset is included in rate base, thereby providing a return.
4These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment.
Regulatory Assets
Energy Waste Reduction Plan Incentive: The energy waste reduction incentive mechanism provides a financial incentive if the energy savings of Consumers’ customers exceed annual targets established by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the incentive as soon as energy savings exceed the annual targets established by the MPSC.
In November 2020, the MPSC approved a settlement agreement authorizing Consumers to collect $34 million during 2021 as an incentive for exceeding its statutory savings targets in 2019. Consumers recognized incentive revenue under this program of $34 million in 2019.
Consumers also exceeded its statutory savings targets in 2020, achieved certain other goals, and will request the MPSC’s approval to collect $42 million, the maximum performance incentive, in the energy waste reduction reconciliation to be filed in 2021. Consumers recognized incentive revenue under this program of $42 million in 2020.
Deferred Capital Spending: In January 2019, the MPSC approved a settlement agreement in Consumers’ 2018 electric rate case, which provided deferred accounting treatment for distribution-related capital investments exceeding certain threshold amounts. Thus, for actual capital spending above the threshold amounts detailed in the settlement agreement, Consumers has deferred as a regulatory asset the associated depreciation and property tax expense as well as the debt component of the overall rate of return on such spending.
Postretirement Benefits: As part of the ratemaking process, the MPSC allows Consumers to recover the costs of postretirement benefits. Accordingly, Consumers defers the net impact of actuarial losses and gains, prior service costs and credits, and settlements associated with postretirement benefits as a regulatory asset or liability. The asset or liability will decrease as the deferred items are amortized and recognized as components of net periodic benefit cost. For details about settlements and the amortization periods, see Note 12, Retirement Benefits.
Costs of Coal-fueled Electric Generating Units to be Retired: In June 2019, the MPSC approved the settlement agreement reached in Consumers’ IRP, under which Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Under Michigan law, electric utilities have been permitted to use highly rated, low-cost securitization bonds to finance the recovery of qualified costs. In 2019, Consumers removed from total plant, property, and equipment an amount representing the projected remaining book value of the two coal-fueled electric generating units upon their retirement, and recorded it as a regulatory asset. Until securitization, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases.
In December 2020, the MPSC issued a securitization financing order authorizing Consumers to issue securitization bonds in order to finance the recovery of the remaining book value of the two coal-fueled electric generating units upon their retirement. An intervenor has appealed the order, contending that it should not have to pay the securitization surcharge.
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 5, Financings and Capitalization.
ARO: The recovery of the underlying asset investments and related removal and monitoring costs of recorded AROs is approved by the MPSC in depreciation rate cases. Consumers records a regulatory asset and a regulatory liability for timing differences between the recognition of AROs for financial reporting purposes and the recovery of these costs from customers. The recovery period approximates the useful life of the assets to be removed.
MGP Sites: Consumers is incurring environmental remediation and other response activity costs at 23 former MGP facilities. The MPSC allows Consumers to recover from its natural gas customers over a ten-year period the costs incurred to remediate the MGP sites.
Unamortized Loss on Reacquired Debt: Under regulatory accounting, any unamortized discount, premium, or expense related to debt redeemed with the proceeds of new debt is capitalized and amortized over the life of the new debt.
Energy Waste Reduction Plan: The MPSC allows Consumers to collect surcharges from customers to fund its energy waste reduction plan. The amount of spending incurred in excess of surcharges collected is recorded as a regulatory asset and amortized as surcharges are collected from customers over the plan period. The amount of surcharges collected in excess of spending incurred is recorded as a regulatory liability and amortized as costs are incurred.
Demand Response Program: In the IRP and in general electric 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 method of recovery of demand response costs will be determined in a future rate case.
COVID‑19 Costs Accounting Deferral: In April 2020, the MPSC issued an order authorizing Consumers to defer uncollectible accounts expense incurred beginning March 24, 2020 that are in excess of the amount used to set existing rates.
Regulatory Liabilities
Income Taxes, Net: Consumers records regulatory assets and liabilities to reflect the difference between deferred income taxes recognized for financial reporting purposes and amounts previously reflected in Consumers’ rates. This net balance will decrease over the remaining life of the related temporary differences and flow through income tax expense. The majority of the net regulatory liability recorded related to income taxes is associated with plant assets that are subject to normalization, which is governed by the Internal Revenue Code, and will be returned to customers over the remaining book life of the related plant assets, the average of which is 44 years for gas plant assets and 27 years for electric plant assets. For additional details on deferred income taxes, see Note 14, Income Taxes.
Reserve for Customer Refunds: In December 2020, the MPSC issued an order authorizing Consumers to refund $28 million voluntarily to utility customers. Consumers is required to submit another filing by the end of February 2021 proposing an appropriate method for making this refund.
Voluntary Transmission Asset Sale Gain Share: In October 2020, Consumers completed a sale of the electric utility’s remaining transmission equipment to METC. In December 2020, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with electric utility customers; this application was approved by the MPSC in February 2021. Consumers will share the gain through an offset to additional spending in 2021 or through a bill credit to electric utility customers in 2022. As a result, Consumers deferred $14 million of the gain in December 2020.
In September 2019, Consumers completed a sale of a portion of its electric utility’s substation transmission equipment to METC. In December 2019, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with customers; this application was approved by the MPSC in April 2020. As a result, Consumers deferred $17 million of the gain in December 2019 and shared that gain with customers in 2020.
Cost of Removal: The MPSC allows Consumers to collect amounts from customers to fund future asset removal activities. This regulatory liability is reduced as costs of removal are incurred. The refund period of this regulatory liability approximates the useful life of the assets to be removed.
Renewable Energy Grant: In 2013, Consumers received a $69 million renewable energy grant for Lake Winds® Energy Park, which began operations in 2012. This grant reduces Consumers’ cost of complying with Michigan’s renewable portfolio standard and, accordingly, reduces the overall renewable energy surcharge to be collected from customers. The regulatory liability recorded for the grant will be amortized over the life of Lake Winds® Energy Park.
Renewable Energy Plan: Consumers has collected surcharges to fund its renewable energy plan. Amounts not yet spent under the plan are recorded as a regulatory liability, which is amortized as incremental costs are incurred to operate and depreciate Consumers’ renewable generation facilities and to purchase RECs under renewable energy purchase agreements. Incremental costs represent costs incurred in excess of amounts recovered through the PSCR process.
Consumers Electric Utility
2020 Electric Rate Case: In February 2020, Consumers filed an application with the MPSC seeking an annual rate increase of $244 million, based on a 10.5 percent authorized return on equity and a projected twelve-month period ending December 31, 2021. In July 2020, Consumers reduced its requested annual rate increase to $230 million. In December 2020, the MPSC approved an annual rate increase of $90 million, based on a 9.9 percent authorized return on equity. This increase reflects a $36 million refund to customers of regulatory tax liabilities associated with the remeasurement of Consumers’ deferred income taxes as a result of the TCJA; excluding the impacts of this refund, the order resulted in a $126 million increase in annual rates.
The order also approved the recovery of $13 million associated with Consumers’ deferral of depreciation and property tax expense and the overall rate of return on distribution-related capital investments exceeding certain threshold amounts.
Additionally, the order approved the method of recovering amounts earned under the financial compensation mechanism approved by the MPSC in Consumers’ IRP. This mechanism allows Consumers to earn a return equal to Consumer’s weighted-average cost of capital on payments made under PPAs approved by the MPSC after January 1, 2019. The order authorizes Consumers to recover $3 million, beginning in January 2021, for incentives earned and to be earned on PPA payments during 2019 through 2021. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the mechanism as payments are made on MPSC-approved PPAs. Consumers recognized revenue under this mechanism of $1 million in 2020.
Consumers is also authorized in the order to replace the current net metering tariff with a new distributed generation tariff, pursuant to the 2016 Energy Law. The new distributed generation tariff is consistent with other distributed generation tariffs already approved by the MPSC and will reduce the subsidies paid by non-distributed generation customers under the current net metering program.
Consumers Gas Utility
2019 Gas Rate Case: In December 2019, Consumers filed an application with the MPSC seeking an annual rate increase of $245 million, based on a 10.5 percent authorized return on equity and a projected twelve-month period ending September 30, 2021. In May 2020, Consumers reduced its requested annual rate increase to $229 million. In September 2020, the MPSC approved a settlement agreement authorizing an annual rate increase of $144 million, based on a 9.9 percent authorized return on equity, effective October 1, 2020. As part of that agreement, Consumers agreed not to file a new gas rate case prior to December 2021. 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 by the MPSC. This reconciliation would start in October 2021 and continue until the MPSC resets rates in a subsequent rate case.
Additionally, the MPSC authorized Consumers to accelerate:
the refund of a regulatory liability associated with the unprotected, non‑property-related excess deferred income taxes resulting from the TCJA; Consumers was previously authorized to refund this through 2029
the flow-through of certain income tax benefits associated primarily with the cost of removal of gas plant assets placed in service before 1993; Consumers was previously authorized to refund this through 2025
Under the settlement agreement approved by the MPSC, these benefits, which total $84 million, will now be passed through to customers by September 2022. For additional details, see Note 14, Income Taxes.
Power Supply Cost Recovery and Gas Cost Recovery
The PSCR and GCR ratemaking processes are designed to allow Consumers to recover all of its power supply and purchased natural gas costs if incurred under reasonable and prudent policies and practices. The MPSC reviews these costs, policies, and practices in annual plan and reconciliation proceedings. Consumers adjusts its PSCR and GCR billing charges monthly in order to minimize the underrecovery or overrecovery amount in the annual reconciliations. Underrecoveries represent probable future revenues that will be recovered from customers; overrecoveries represent previously collected revenues that will be refunded to customers.
Presented in the following table are the liabilities for PSCR and GCR overrecoveries reflected on Consumers’ consolidated balance sheets:
In Millions
December 3120202019
Liabilities
PSCR overrecoveries$$33 
GCR overrecoveries15 
Accrued rate refunds$20 $35 
PSCR Plans and Reconciliations: In October 2020, the MPSC issued an order in Consumers’ 2018 PSCR reconciliation, authorizing recovery of $2.0 billion of power costs and authorizing Consumers to reflect in its 2019 PSCR reconciliation the underrecovery of $28 million.
In April 2020, the MPSC issued an order in Consumers’ 2019 PSCR plan authorizing the 2019 PSCR charge that Consumers self-implemented beginning in January 2019. In March 2020, Consumers filed its 2019 PSCR reconciliation, requesting full recovery of $1.9 billion of power costs and authorization to reflect in its 2020 PSCR reconciliation the overrecovery of $21 million.
Consumers submitted its 2020 PSCR plan to the MPSC in September 2019 and, in accordance with its proposed plan, self-implemented the 2020 PSCR charge beginning in January 2020.
GCR Plans and Reconciliations: In September 2020, the MPSC issued an order in Consumers’ 2018-2019 GCR reconciliation, authorizing recovery of $0.6 billion of gas costs and authorizing Consumers to reflect in its 2019-2020 GCR reconciliation the underrecovery of $11 million. The MPSC disallowed the recovery of $7 million in incremental gas purchases related to the Ray Compressor Station fire. For additional details, see Note 4, Contingencies and Commitments—Consumers Gas Utility Contingencies.
In June 2020, Consumers filed its 2019-2020 GCR reconciliation, requesting full recovery of $0.5 billion of gas costs and authorization to reflect in its 2020-2021 GCR reconciliation the underrecovery of $1 million.
In September 2020, the MPSC approved a settlement agreement in Consumers’ 2020-2021 GCR plan authorizing the 2020-2021 GCR charge that Consumers self-implemented beginning in April 2020.
v3.20.4
Contingencies and Commitments
12 Months Ended
Dec. 31, 2020
Other Commitments [Line Items]  
Contingencies and Commitments Contingencies and Commitments
CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter.
CMS Energy Contingencies
Gas Index Price Reporting Litigation: CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, were named as defendants in four class action lawsuits filed in Kansas, Missouri, and Wisconsin and one individual lawsuit filed in Kansas; these lawsuits arose as a result of alleged inaccurate natural gas price reporting to publications that report trade information. Allegations included price-fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices. In 2016, CMS Energy entities reached a settlement with the plaintiffs in the Kansas and Missouri class action cases for an amount that was not material to CMS Energy. In 2017, the federal district court approved the settlement.
In 2019, CMS Energy and the plaintiffs in the remaining Kansas individual lawsuit and the Wisconsin class action lawsuit engaged in settlement discussions and CMS Energy recorded a $30 million liability at December 31, 2019 as the probable estimate to settle the two cases. The parties executed a settlement
agreement in the Kansas case in February 2020, and that case is now complete. In the Wisconsin case, a settlement agreement was approved in August 2020 and that case is now complete.
Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which was valid through September 2020. CMS Land submitted a renewal request for the permit in April 2020. CMS Land is allowed to continue operating under the previous NPDES permit until a response is received from EGLE.
At December 31, 2020, 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
20212022202320242025
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.
Equatorial Guinea Tax Claim: In 2002, CMS Energy sold its oil, gas, and methanol investments in Equatorial Guinea. The government of Equatorial Guinea claims that, in connection with the sale, CMS Energy owes $152 million in taxes, plus substantial penalties and interest that could be up to or exceed the amount of the taxes claimed. In 2015, the matter was proceeding to formal arbitration; however, since then, the government of Equatorial Guinea has stopped communicating. CMS Energy has concluded that the government’s tax claim is without merit and will continue to contest the claim, but cannot predict the financial impact or outcome of the matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s liquidity, financial condition, and results of operations.
Consumers Electric Utility Contingencies
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations.
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $2 million and $4 million. At December 31, 2020, Consumers had a recorded liability of $2 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount.
Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 2011, Consumers received a follow-up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river.
Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At December 31, 2020, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount.
The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability.
Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome.
MCV PPA: In 2017, the MCV Partnership initiated arbitration against Consumers, asserting a breach of contract associated with the MCV PPA. Under this PPA, Consumers pays the MCV Partnership a fixed energy charge based on Consumers’ annual average baseload coal generating plant operating and maintenance cost, fuel inventory, and administrative and general expenses. The MCV Partnership asserts that, under the Clean Air Act, Consumers should have installed pollution control equipment on coal-fueled electric generating units years before they were retired. The MCV Partnership also asserts that Consumers should have installed pollution control equipment earlier on its remaining coal-fueled electric generating units. Additionally, the MCV Partnership claims that Consumers improperly characterized certain costs included in the calculation of the fixed energy charge.

In January 2019, an arbitration panel issued an order concluding that the MCV Partnership is not entitled to any damages associated with its claim against Consumers related to the Clean Air Act; the majority of the MCV Partnership’s claim, which estimated damages and interest in excess of $270 million, was related to this dismissed claim. In November 2020, the MCV Partnership and Consumers signed a settlement agreement resolving all outstanding disputes between the parties, and filed the settlement and associated agreements with the MPSC for approval. Once those are approved, the parties will dismiss this matter with prejudice. If settlement is not approved, the arbitration panel will issue an order. Consumers believes that the MCV Partnership’s claims are without merit, but cannot predict the financial impact or outcome of the matter.
Underwater Cables in Straits of Mackinac: Consumers owns certain underwater electric cables in the Straits of Mackinac, which were de-energized and retired in 1990. Consumers was notified that some of
these cables were damaged as a result of vessel activity in 2018. Following the notification, Consumers located, inspected, sampled, capped, and returned the damaged retired cables to their original location on the lake bottom, and did not find any substantive evidence of environmental contamination. After collaborating with the State of Michigan, local Native American tribes, and other stakeholders, Consumers submitted a permit application and removal work plan with EGLE and the U.S. Army Corps of Engineers in December 2019 for partial removal of all Consumers-owned cables. In March 2020, EGLE issued a permit for the removal work and, as a result, Consumers recorded an ARO liability of $5 million for the cost to remove partially its cables. Removal work was completed in September 2020. Consumers recovers the cost of recorded AROs through MPSC-approved depreciation rates.
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, 2020, Consumers had a recorded liability of $56 million for its remaining obligations for these sites. This amount represents the present value of long-term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $61 million. Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years:
In Millions
20212022202320242025
Consumers
Remediation and other response activity costs$$$23 $10 $
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, 2020, Consumers had a regulatory asset of $120 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, 2020, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount.
Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in
July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity.
In September 2020, the MPSC disallowed the recovery of $7 million in incremental gas purchases related to the fire. In January 2021, the MPSC denied Consumers’ petition for a rehearing challenging this disallowance. Consumers will file an appeal of the MPSC’s denial with the Michigan Court of Appeals. Consumers could also be subject to disallowances of costs associated with the repair and modification of the Ray Compressor Station. At December 31, 2020, Consumers had incurred capital expenditures of $17 million to restore and modify the compressor station.
In May 2020, the MPSC approved an administrative settlement agreement between Consumers and the MPSC Staff, which resulted in a $10,000 civil penalty in connection with the fire. Consumers may also be subject to various claims from impacted customers and claims for damages. At this time, Consumers cannot predict the outcome of these matters or other gas-related incidents and a reasonable estimate of a total loss cannot be made, but they could have a material adverse effect on Consumers’ results of operations, financial condition, or liquidity, and could subject Consumers’ gas utility to increased regulatory scrutiny.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2020:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1
September 2020indefinite$349 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite153 
Guarantee3
July 2011indefinite30 — 
Consumers
Guarantee3
July 2011indefinite$30 $— 
1In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 21, 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, primarily claims related to taxes. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. The carrying value of these indemnity obligations is $1 million. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote.
Other Contingencies
In addition to the matters disclosed in this Note and Note 3, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity.
Contractual Commitments
Purchase Obligations: Purchase obligations arise from long-term contracts for the purchase of commodities and related services, and construction and service agreements. The commodities and related services include long-term PPAs, natural gas and associated transportation, and coal and associated transportation. Related-party PPAs are between Consumers and certain affiliates of CMS Enterprises. Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2020 for each of the periods shown:
In Millions
Payments Due
Total20212022202320242025Beyond 2025
CMS Energy, including Consumers
Total PPAs$8,898 $1,057 $791 $731 $784 $732 $4,803 
Other3,179 1,391 871 265 199 171 282 
Consumers
PPAs
MCV PPA$2,815 $349 $340 $358 $376 $329 $1,063 
Palisades PPA517 398 119 — — — — 
Related-party PPAs318 58 58 58 58 39 47 
Other PPAs5,248 252 274 315 350 364 3,693 
Total PPAs$8,898 $1,057 $791 $731 $784 $732 $4,803 
Other2,605 1,333 777 207 154 130 
MCV PPA: Consumers has a PPA with the MCV Partnership giving Consumers the right to purchase up to 1,240 MW of capacity and energy produced by the MCV Facility. The PPA was amended during 2020 and is pending MPSC approval. The amended and restated MCV PPA provides for:
an extension of the termination date from March 2025 to May 2030
a capacity charge of $10.14 per MWh of available capacity through March 2025 and $5.00 per MWh of available capacity from March 2025 through the termination date of the PPA
a fixed energy charge of $6.30 per MWh for on-peak hours and $6.00 for off-peak hours
a variable energy charge based on the MCV Partnership’s cost of production for energy delivered to Consumers
a $5 million annual contribution by the MCV Partnership to a renewable resources program through March 2025
Capacity and energy charges under the MCV PPA were $298 million in 2020, $318 million in 2019, and $353 million in 2018.
Palisades PPA: Consumers has a PPA expiring in 2022 with Entergy to purchase virtually all of the capacity and energy produced by Palisades, up to the annual average capacity of 798 MW. For all delivered energy, the Palisades PPA has escalating capacity and variable energy charges. Total capacity and energy charges under the Palisades PPA were $403 million in 2020, $395 million in 2019, and $375 million in 2018. For further details about Palisades, see Note 10, Leases and Palisades Financing.
Other PPAs: Consumers has PPAs expiring through 2040 with various counterparties. The majority of the PPAs have capacity and energy charges for delivered energy. In addition, CMS Energy and Consumers account for several of their PPAs as leases. Capacity and energy charges under these PPAs were $327 million in 2020, $336 million in 2019, and $350 million in 2018. See Note 10, Leases and Palisades Financing for more information about CMS Energy’s and Consumers’ lease obligations.
Consumers Energy Company  
Other Commitments [Line Items]  
Contingencies and Commitments Contingencies and Commitments
CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter.
CMS Energy Contingencies
Gas Index Price Reporting Litigation: CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, were named as defendants in four class action lawsuits filed in Kansas, Missouri, and Wisconsin and one individual lawsuit filed in Kansas; these lawsuits arose as a result of alleged inaccurate natural gas price reporting to publications that report trade information. Allegations included price-fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices. In 2016, CMS Energy entities reached a settlement with the plaintiffs in the Kansas and Missouri class action cases for an amount that was not material to CMS Energy. In 2017, the federal district court approved the settlement.
In 2019, CMS Energy and the plaintiffs in the remaining Kansas individual lawsuit and the Wisconsin class action lawsuit engaged in settlement discussions and CMS Energy recorded a $30 million liability at December 31, 2019 as the probable estimate to settle the two cases. The parties executed a settlement
agreement in the Kansas case in February 2020, and that case is now complete. In the Wisconsin case, a settlement agreement was approved in August 2020 and that case is now complete.
Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which was valid through September 2020. CMS Land submitted a renewal request for the permit in April 2020. CMS Land is allowed to continue operating under the previous NPDES permit until a response is received from EGLE.
At December 31, 2020, 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
20212022202320242025
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.
Equatorial Guinea Tax Claim: In 2002, CMS Energy sold its oil, gas, and methanol investments in Equatorial Guinea. The government of Equatorial Guinea claims that, in connection with the sale, CMS Energy owes $152 million in taxes, plus substantial penalties and interest that could be up to or exceed the amount of the taxes claimed. In 2015, the matter was proceeding to formal arbitration; however, since then, the government of Equatorial Guinea has stopped communicating. CMS Energy has concluded that the government’s tax claim is without merit and will continue to contest the claim, but cannot predict the financial impact or outcome of the matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s liquidity, financial condition, and results of operations.
Consumers Electric Utility Contingencies
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations.
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $2 million and $4 million. At December 31, 2020, Consumers had a recorded liability of $2 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount.
Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 2011, Consumers received a follow-up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river.
Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At December 31, 2020, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount.
The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability.
Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome.
MCV PPA: In 2017, the MCV Partnership initiated arbitration against Consumers, asserting a breach of contract associated with the MCV PPA. Under this PPA, Consumers pays the MCV Partnership a fixed energy charge based on Consumers’ annual average baseload coal generating plant operating and maintenance cost, fuel inventory, and administrative and general expenses. The MCV Partnership asserts that, under the Clean Air Act, Consumers should have installed pollution control equipment on coal-fueled electric generating units years before they were retired. The MCV Partnership also asserts that Consumers should have installed pollution control equipment earlier on its remaining coal-fueled electric generating units. Additionally, the MCV Partnership claims that Consumers improperly characterized certain costs included in the calculation of the fixed energy charge.

In January 2019, an arbitration panel issued an order concluding that the MCV Partnership is not entitled to any damages associated with its claim against Consumers related to the Clean Air Act; the majority of the MCV Partnership’s claim, which estimated damages and interest in excess of $270 million, was related to this dismissed claim. In November 2020, the MCV Partnership and Consumers signed a settlement agreement resolving all outstanding disputes between the parties, and filed the settlement and associated agreements with the MPSC for approval. Once those are approved, the parties will dismiss this matter with prejudice. If settlement is not approved, the arbitration panel will issue an order. Consumers believes that the MCV Partnership’s claims are without merit, but cannot predict the financial impact or outcome of the matter.
Underwater Cables in Straits of Mackinac: Consumers owns certain underwater electric cables in the Straits of Mackinac, which were de-energized and retired in 1990. Consumers was notified that some of
these cables were damaged as a result of vessel activity in 2018. Following the notification, Consumers located, inspected, sampled, capped, and returned the damaged retired cables to their original location on the lake bottom, and did not find any substantive evidence of environmental contamination. After collaborating with the State of Michigan, local Native American tribes, and other stakeholders, Consumers submitted a permit application and removal work plan with EGLE and the U.S. Army Corps of Engineers in December 2019 for partial removal of all Consumers-owned cables. In March 2020, EGLE issued a permit for the removal work and, as a result, Consumers recorded an ARO liability of $5 million for the cost to remove partially its cables. Removal work was completed in September 2020. Consumers recovers the cost of recorded AROs through MPSC-approved depreciation rates.
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, 2020, Consumers had a recorded liability of $56 million for its remaining obligations for these sites. This amount represents the present value of long-term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $61 million. Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years:
In Millions
20212022202320242025
Consumers
Remediation and other response activity costs$$$23 $10 $
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, 2020, Consumers had a regulatory asset of $120 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, 2020, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount.
Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in
July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity.
In September 2020, the MPSC disallowed the recovery of $7 million in incremental gas purchases related to the fire. In January 2021, the MPSC denied Consumers’ petition for a rehearing challenging this disallowance. Consumers will file an appeal of the MPSC’s denial with the Michigan Court of Appeals. Consumers could also be subject to disallowances of costs associated with the repair and modification of the Ray Compressor Station. At December 31, 2020, Consumers had incurred capital expenditures of $17 million to restore and modify the compressor station.
In May 2020, the MPSC approved an administrative settlement agreement between Consumers and the MPSC Staff, which resulted in a $10,000 civil penalty in connection with the fire. Consumers may also be subject to various claims from impacted customers and claims for damages. At this time, Consumers cannot predict the outcome of these matters or other gas-related incidents and a reasonable estimate of a total loss cannot be made, but they could have a material adverse effect on Consumers’ results of operations, financial condition, or liquidity, and could subject Consumers’ gas utility to increased regulatory scrutiny.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2020:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1
September 2020indefinite$349 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite153 
Guarantee3
July 2011indefinite30 — 
Consumers
Guarantee3
July 2011indefinite$30 $— 
1In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 21, 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, primarily claims related to taxes. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. The carrying value of these indemnity obligations is $1 million. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote.
Other Contingencies
In addition to the matters disclosed in this Note and Note 3, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity.
Contractual Commitments
Purchase Obligations: Purchase obligations arise from long-term contracts for the purchase of commodities and related services, and construction and service agreements. The commodities and related services include long-term PPAs, natural gas and associated transportation, and coal and associated transportation. Related-party PPAs are between Consumers and certain affiliates of CMS Enterprises. Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2020 for each of the periods shown:
In Millions
Payments Due
Total20212022202320242025Beyond 2025
CMS Energy, including Consumers
Total PPAs$8,898 $1,057 $791 $731 $784 $732 $4,803 
Other3,179 1,391 871 265 199 171 282 
Consumers
PPAs
MCV PPA$2,815 $349 $340 $358 $376 $329 $1,063 
Palisades PPA517 398 119 — — — — 
Related-party PPAs318 58 58 58 58 39 47 
Other PPAs5,248 252 274 315 350 364 3,693 
Total PPAs$8,898 $1,057 $791 $731 $784 $732 $4,803 
Other2,605 1,333 777 207 154 130 
MCV PPA: Consumers has a PPA with the MCV Partnership giving Consumers the right to purchase up to 1,240 MW of capacity and energy produced by the MCV Facility. The PPA was amended during 2020 and is pending MPSC approval. The amended and restated MCV PPA provides for:
an extension of the termination date from March 2025 to May 2030
a capacity charge of $10.14 per MWh of available capacity through March 2025 and $5.00 per MWh of available capacity from March 2025 through the termination date of the PPA
a fixed energy charge of $6.30 per MWh for on-peak hours and $6.00 for off-peak hours
a variable energy charge based on the MCV Partnership’s cost of production for energy delivered to Consumers
a $5 million annual contribution by the MCV Partnership to a renewable resources program through March 2025
Capacity and energy charges under the MCV PPA were $298 million in 2020, $318 million in 2019, and $353 million in 2018.
Palisades PPA: Consumers has a PPA expiring in 2022 with Entergy to purchase virtually all of the capacity and energy produced by Palisades, up to the annual average capacity of 798 MW. For all delivered energy, the Palisades PPA has escalating capacity and variable energy charges. Total capacity and energy charges under the Palisades PPA were $403 million in 2020, $395 million in 2019, and $375 million in 2018. For further details about Palisades, see Note 10, Leases and Palisades Financing.
Other PPAs: Consumers has PPAs expiring through 2040 with various counterparties. The majority of the PPAs have capacity and energy charges for delivered energy. In addition, CMS Energy and Consumers account for several of their PPAs as leases. Capacity and energy charges under these PPAs were $327 million in 2020, $336 million in 2019, and $350 million in 2018. See Note 10, Leases and Palisades Financing for more information about CMS Energy’s and Consumers’ lease obligations.
v3.20.4
Financings And Capitalization
12 Months Ended
Dec. 31, 2020
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
(%)
Maturity20202019
CMS Energy, including Consumers
CMS Energy, parent only
Senior notes5.050 2022$— $300 
3.875 2024250 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 $2,275 
Term loan facilityvariable
1
2021200 — 
Junior subordinated notes2
4.750 2050500 — 
3.750 2050400 — 
5.625 2078200 200 
5.875 2078280 280 
5.875 2079630 630 
$2,010 $1,110 
Total CMS Energy, parent only$4,185 $3,385 
Consumers8,197 7,322 
CMS Enterprises, including subsidiaries
Term loan facilityvariable
3
202585 92 
EnerBank
Certificates of deposit1.621 
4
2021-20282,805 2,389 
Total principal amount outstanding$15,272 $13,188 
Current amounts(1,486)(1,111)
Unamortized discounts(33)(27)
Unamortized issuance costs(119)(99)
Total long-term debt$13,634 $11,951 
1At December 31, 2020, the interest rate on the balance of this term loan facility was 0.600 percent, based on an interest rate of one-week LIBOR plus 0.500 percent.
2These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.
3A subsidiary of CMS Enterprises issued nonrecourse debt to finance the acquisition of a wind generation project in Northwest Ohio. The interest rate for the debt is three-month LIBOR plus 1.500 percent through October 2022 and three-month LIBOR plus 1.750 percent thereafter. At December 31, 2020 and 2019, the interest rate was 1.754 percent and 3.445 percent, respectively. The same subsidiary of CMS Enterprises entered into interest rate swaps with the lending banks to fix the interest charges associated with the debt, at a rate of 4.702 percent through October 2022 and 4.952 percent thereafter. Principal and interest payments are made quarterly. For information about the interest rate swaps, see Note 6, Fair Value Measurements.
4The weighted-average interest rate for EnerBank’s certificates of deposit was 1.621 percent at December 31, 2020 and 2.445 percent at December 31, 2019. EnerBank’s primary deposit product consists of brokered certificates of deposit with varying maturities and having a face value of $1,000.
Presented in the following table is Consumers’ long-term debt at December 31:
In Millions
Interest Rate
(%)
Maturity20202019
Consumers
First mortgage bonds3.770 2020$— $100 
2.850 2022— 375 
5.300 2022— 250 
0.350 2023300 — 
3.375 2023325 325 
3.125 2024250 250 
3.190 202452 52 
3.680 2027100 100 
3.390 202735 35 
3.800 2028300 300 
3.180 2032100 100 
5.800 2035175 175 
3.520 2037335 335 
4.010 2038215 215 
6.170 204050 50 
4.970 204050 50 
4.310 2042263 263 
3.950 2043425 425 
4.100 2045250 250 
3.250 2046450 450 
3.950 2047350 350 
4.050 2048550 550 
4.350 2049550 550 
3.750 2050300 300 
3.100 2050550 550 
3.500 2051575 — 
3.860 205250 50 
4.280 2057185 185 
2.500 2060525 — 
4.350 2064250 250 
variable
1
206976 76 
variable
1
2070134 — 
variable
1
2070127 — 
$7,897 $6,961 
Tax-exempt revenue bondsvariable2035— 35 
1.800 
2
204975 75 
$75 $110 
Securitization bonds3.250 
3
2025-2029
4
225 251 
Total principal amount outstanding$8,197 $7,322 
Current amounts(364)(202)
Unamortized discounts(29)(23)
Unamortized issuance costs(62)(49)
Total long-term debt$7,742 $7,048 
1The variable-rate bonds bear interest quarterly at a rate of three-month LIBOR minus 0.300 percent, subject to a zero-percent floor (zero percent at December 31, 2020). The holders of these variable-rate bonds may put them to Consumers for redemption on certain dates prior to their stated maturity, including dates within one year of December 31, 2020.
2The interest rate on these tax‑exempt revenue bonds will reset on October 1, 2024.
3The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2014 Securitization Funding, was 3.250 percent at December 31, 2020 and 3.220 percent at December 31, 2019.
4Principal and interest payments are made semiannually.
Financings: Presented in the following table is a summary of major long-term debt issuances during the year ended December 31, 2020:
Principal
(In Millions)
Interest RateIssuance DateMaturity Date
CMS Energy, parent only
Term loan facility1
$300 variableFebruaryFebruary 2021
Junior subordinated notes2
500 4.750 %MayJune 2050
Junior subordinated notes3
400 3.750 %NovemberDecember 2050
Total CMS Energy, parent only$1,200 
Consumers
Term loan facility$300 variableJanuaryJanuary 2021
First mortgage bonds575 3.500 %March August 2051
First mortgage bonds525 2.500 %MayMay 2060
First mortgage bonds134 variableMayMay 2070
First mortgage bonds127 variableOctoberOctober 2070
First mortgage bonds300 0.350 %DecemberJune 2023
Total Consumers$1,961 
Total CMS Energy$3,161 
1In December 2020, CMS Energy repaid $100 million of this facility and, in February 2021, amended the facility by extending its maturity date to November 2021.
2These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. On 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.
3These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. On December 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 2.900 percent.
Presented in the following table is a summary of major long-term debt retirements during the year ended December 31, 2020:
Principal
(In Millions)
Interest RateRetirement DateMaturity Date
CMS Energy, parent only
Senior notes1
$300 5.050 %DecemberMarch 2022
Total CMS Energy, parent only$300 
Consumers
First mortgage bonds$100 3.770 %AprilOctober 2020
First mortgage bonds250 5.300 %JuneSeptember 2022
First mortgage bonds375 2.850 %SeptemberMay 2022
Term loan facility300 variableDecemberJanuary 2021
Total Consumers$1,025 
Total CMS Energy$1,325 
1CMS Energy retired these senior notes at a premium and recorded a loss on extinguishment of $16 million in other expense on its consolidated statements of income.
In July 2020, Consumers purchased, in lieu of redemption, $35 million of variable-rate tax-exempt revenue bonds due April 2035. At December 31, 2020, Consumers held the variable-rate tax-exempt revenue bonds and may remarket the bonds or replace them with debt instruments of an equivalent value.
In September 2020, proceeds from the sale of a Class A membership interest in Aviator Wind to a tax equity investor and additional contributions from the Class B membership interest (of which CMS Enterprises owns 51 percent) were used to retire $492 million of debt assumed through the purchase of the VIE. For more information, see Note 21, 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 terminates on July 31, 2022. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements.
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, 2020, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20212022202320242025
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$200 $— $— $250 $250 
Consumers
364 28 654 332 31 
CMS Enterprises, including subsidiaries10 51 
EnerBank915 572 477 325 244 
Total CMS Energy$1,486 $608 $1,140 $917 $576 
Consumers
Long-term debt$364 $28 $654 $332 $31 
Credit Facilities: The following credit facilities with banks were available at December 31, 2020:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 20231
$550 $— $18 $532 
CMS Enterprises, including subsidiaries
September 25, 20252
$39 $— $39 $— 
September 30, 20253
18 — 10 
Consumers4
June 5, 2023$850 $— $$843 
November 19, 2022250 — 249 
April 18, 202230 — 30 — 
1During the year ended December 31, 2020, CMS Energy’s average borrowings totaled $1 million with a weighted-average interest rate of 1.888 percent.
2This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding the acquisition of Aviator Wind Equity Holdings, see Note 21, Variable Interest Entities.
3Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. There were no borrowings under this facility during the year ended December 31, 2020.
4Obligations under these facilities are secured by first mortgage bonds of Consumers. During the year ended December 31, 2020, Consumers’ average borrowings totaled less than $1 million with a weighted-average interest rate of 1.425 percent.
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, 2020, there were no commercial paper notes outstanding under this program.
In December 2020, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $350 million. For more information on the intercompany credit agreement between CMS Energy and Consumers, see Note 20, Related-Party Transactions—Consumers.
Dividend Restrictions: At December 31, 2020, payment of dividends by CMS Energy on its common stock was limited to $5.5 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at December 31, 2020, Consumers had $1.6 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.
For the year ended December 31, 2020, Consumers paid $637 million in dividends on its common stock to CMS Energy.
Capitalization: The authorized capital stock of CMS Energy consists of:
350 million shares of CMS Energy Common Stock, par value $0.01 per share
10 million shares of CMS Energy Preferred Stock, par value $0.01 per share
Issuance of Common Stock: In 2018 and 2020, CMS Energy entered into equity offering programs under which it may sell, from time to time, shares of CMS Energy common stock. Under both programs, CMS Energy may sell its common stock in privately negotiated transactions, in “at the market” offerings, through forward sales transactions, or otherwise.
During 2018 and 2019, CMS Energy entered into forward sales contracts having an aggregate sales price of  $250 million, the maximum allowed under the 2018 program. In 2020, CMS Energy settled the forward contracts under this program by issuing 4,879,022 shares of common stock at a weighted-average price of $48.86 per share, resulting in net proceeds of $238 million.
Under the 2020 program, CMS Energy may sell shares of its common stock having an aggregate sales price of up to $500 million. Presented in the following table are details of CMS Energy’s forward sales contracts under this program at December 31, 2020:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialDecember 31, 2020
September 15, 2020December 31, 2021846,759$61.04 $60.53 
December 22, 2020June 22, 2022115,59561.81 61.81 
These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock.
The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle the contracts as of December 31, 2020, CMS Energy would have been required to deliver 6,666 shares.
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, 2020 and 2019:
Par ValueOptional Redemption PriceNumber of Shares AuthorizedNumber of Shares Outstanding
Cumulative, with no mandatory redemption
$100 $110 7,500,000373,148
Consumers Energy Company  
Debt Instrument [Line Items]  
Financings and Capitalization Financings and Capitalization
Presented in the following table is CMS Energy’s long-term debt at December 31:
In Millions
Interest Rate
(%)
Maturity20202019
CMS Energy, including Consumers
CMS Energy, parent only
Senior notes5.050 2022$— $300 
3.875 2024250 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 $2,275 
Term loan facilityvariable
1
2021200 — 
Junior subordinated notes2
4.750 2050500 — 
3.750 2050400 — 
5.625 2078200 200 
5.875 2078280 280 
5.875 2079630 630 
$2,010 $1,110 
Total CMS Energy, parent only$4,185 $3,385 
Consumers8,197 7,322 
CMS Enterprises, including subsidiaries
Term loan facilityvariable
3
202585 92 
EnerBank
Certificates of deposit1.621 
4
2021-20282,805 2,389 
Total principal amount outstanding$15,272 $13,188 
Current amounts(1,486)(1,111)
Unamortized discounts(33)(27)
Unamortized issuance costs(119)(99)
Total long-term debt$13,634 $11,951 
1At December 31, 2020, the interest rate on the balance of this term loan facility was 0.600 percent, based on an interest rate of one-week LIBOR plus 0.500 percent.
2These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.
3A subsidiary of CMS Enterprises issued nonrecourse debt to finance the acquisition of a wind generation project in Northwest Ohio. The interest rate for the debt is three-month LIBOR plus 1.500 percent through October 2022 and three-month LIBOR plus 1.750 percent thereafter. At December 31, 2020 and 2019, the interest rate was 1.754 percent and 3.445 percent, respectively. The same subsidiary of CMS Enterprises entered into interest rate swaps with the lending banks to fix the interest charges associated with the debt, at a rate of 4.702 percent through October 2022 and 4.952 percent thereafter. Principal and interest payments are made quarterly. For information about the interest rate swaps, see Note 6, Fair Value Measurements.
4The weighted-average interest rate for EnerBank’s certificates of deposit was 1.621 percent at December 31, 2020 and 2.445 percent at December 31, 2019. EnerBank’s primary deposit product consists of brokered certificates of deposit with varying maturities and having a face value of $1,000.
Presented in the following table is Consumers’ long-term debt at December 31:
In Millions
Interest Rate
(%)
Maturity20202019
Consumers
First mortgage bonds3.770 2020$— $100 
2.850 2022— 375 
5.300 2022— 250 
0.350 2023300 — 
3.375 2023325 325 
3.125 2024250 250 
3.190 202452 52 
3.680 2027100 100 
3.390 202735 35 
3.800 2028300 300 
3.180 2032100 100 
5.800 2035175 175 
3.520 2037335 335 
4.010 2038215 215 
6.170 204050 50 
4.970 204050 50 
4.310 2042263 263 
3.950 2043425 425 
4.100 2045250 250 
3.250 2046450 450 
3.950 2047350 350 
4.050 2048550 550 
4.350 2049550 550 
3.750 2050300 300 
3.100 2050550 550 
3.500 2051575 — 
3.860 205250 50 
4.280 2057185 185 
2.500 2060525 — 
4.350 2064250 250 
variable
1
206976 76 
variable
1
2070134 — 
variable
1
2070127 — 
$7,897 $6,961 
Tax-exempt revenue bondsvariable2035— 35 
1.800 
2
204975 75 
$75 $110 
Securitization bonds3.250 
3
2025-2029
4
225 251 
Total principal amount outstanding$8,197 $7,322 
Current amounts(364)(202)
Unamortized discounts(29)(23)
Unamortized issuance costs(62)(49)
Total long-term debt$7,742 $7,048 
1The variable-rate bonds bear interest quarterly at a rate of three-month LIBOR minus 0.300 percent, subject to a zero-percent floor (zero percent at December 31, 2020). The holders of these variable-rate bonds may put them to Consumers for redemption on certain dates prior to their stated maturity, including dates within one year of December 31, 2020.
2The interest rate on these tax‑exempt revenue bonds will reset on October 1, 2024.
3The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2014 Securitization Funding, was 3.250 percent at December 31, 2020 and 3.220 percent at December 31, 2019.
4Principal and interest payments are made semiannually.
Financings: Presented in the following table is a summary of major long-term debt issuances during the year ended December 31, 2020:
Principal
(In Millions)
Interest RateIssuance DateMaturity Date
CMS Energy, parent only
Term loan facility1
$300 variableFebruaryFebruary 2021
Junior subordinated notes2
500 4.750 %MayJune 2050
Junior subordinated notes3
400 3.750 %NovemberDecember 2050
Total CMS Energy, parent only$1,200 
Consumers
Term loan facility$300 variableJanuaryJanuary 2021
First mortgage bonds575 3.500 %March August 2051
First mortgage bonds525 2.500 %MayMay 2060
First mortgage bonds134 variableMayMay 2070
First mortgage bonds127 variableOctoberOctober 2070
First mortgage bonds300 0.350 %DecemberJune 2023
Total Consumers$1,961 
Total CMS Energy$3,161 
1In December 2020, CMS Energy repaid $100 million of this facility and, in February 2021, amended the facility by extending its maturity date to November 2021.
2These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. On 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.
3These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. On December 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 2.900 percent.
Presented in the following table is a summary of major long-term debt retirements during the year ended December 31, 2020:
Principal
(In Millions)
Interest RateRetirement DateMaturity Date
CMS Energy, parent only
Senior notes1
$300 5.050 %DecemberMarch 2022
Total CMS Energy, parent only$300 
Consumers
First mortgage bonds$100 3.770 %AprilOctober 2020
First mortgage bonds250 5.300 %JuneSeptember 2022
First mortgage bonds375 2.850 %SeptemberMay 2022
Term loan facility300 variableDecemberJanuary 2021
Total Consumers$1,025 
Total CMS Energy$1,325 
1CMS Energy retired these senior notes at a premium and recorded a loss on extinguishment of $16 million in other expense on its consolidated statements of income.
In July 2020, Consumers purchased, in lieu of redemption, $35 million of variable-rate tax-exempt revenue bonds due April 2035. At December 31, 2020, Consumers held the variable-rate tax-exempt revenue bonds and may remarket the bonds or replace them with debt instruments of an equivalent value.
In September 2020, proceeds from the sale of a Class A membership interest in Aviator Wind to a tax equity investor and additional contributions from the Class B membership interest (of which CMS Enterprises owns 51 percent) were used to retire $492 million of debt assumed through the purchase of the VIE. For more information, see Note 21, 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 terminates on July 31, 2022. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements.
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, 2020, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20212022202320242025
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$200 $— $— $250 $250 
Consumers
364 28 654 332 31 
CMS Enterprises, including subsidiaries10 51 
EnerBank915 572 477 325 244 
Total CMS Energy$1,486 $608 $1,140 $917 $576 
Consumers
Long-term debt$364 $28 $654 $332 $31 
Credit Facilities: The following credit facilities with banks were available at December 31, 2020:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 20231
$550 $— $18 $532 
CMS Enterprises, including subsidiaries
September 25, 20252
$39 $— $39 $— 
September 30, 20253
18 — 10 
Consumers4
June 5, 2023$850 $— $$843 
November 19, 2022250 — 249 
April 18, 202230 — 30 — 
1During the year ended December 31, 2020, CMS Energy’s average borrowings totaled $1 million with a weighted-average interest rate of 1.888 percent.
2This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding the acquisition of Aviator Wind Equity Holdings, see Note 21, Variable Interest Entities.
3Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. There were no borrowings under this facility during the year ended December 31, 2020.
4Obligations under these facilities are secured by first mortgage bonds of Consumers. During the year ended December 31, 2020, Consumers’ average borrowings totaled less than $1 million with a weighted-average interest rate of 1.425 percent.
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, 2020, there were no commercial paper notes outstanding under this program.
In December 2020, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $350 million. For more information on the intercompany credit agreement between CMS Energy and Consumers, see Note 20, Related-Party Transactions—Consumers.
Dividend Restrictions: At December 31, 2020, payment of dividends by CMS Energy on its common stock was limited to $5.5 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at December 31, 2020, Consumers had $1.6 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.
For the year ended December 31, 2020, Consumers paid $637 million in dividends on its common stock to CMS Energy.
Capitalization: The authorized capital stock of CMS Energy consists of:
350 million shares of CMS Energy Common Stock, par value $0.01 per share
10 million shares of CMS Energy Preferred Stock, par value $0.01 per share
Issuance of Common Stock: In 2018 and 2020, CMS Energy entered into equity offering programs under which it may sell, from time to time, shares of CMS Energy common stock. Under both programs, CMS Energy may sell its common stock in privately negotiated transactions, in “at the market” offerings, through forward sales transactions, or otherwise.
During 2018 and 2019, CMS Energy entered into forward sales contracts having an aggregate sales price of  $250 million, the maximum allowed under the 2018 program. In 2020, CMS Energy settled the forward contracts under this program by issuing 4,879,022 shares of common stock at a weighted-average price of $48.86 per share, resulting in net proceeds of $238 million.
Under the 2020 program, CMS Energy may sell shares of its common stock having an aggregate sales price of up to $500 million. Presented in the following table are details of CMS Energy’s forward sales contracts under this program at December 31, 2020:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialDecember 31, 2020
September 15, 2020December 31, 2021846,759$61.04 $60.53 
December 22, 2020June 22, 2022115,59561.81 61.81 
These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock.
The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle the contracts as of December 31, 2020, CMS Energy would have been required to deliver 6,666 shares.
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, 2020 and 2019:
Par ValueOptional Redemption PriceNumber of Shares AuthorizedNumber of Shares Outstanding
Cumulative, with no mandatory redemption
$100 $110 7,500,000373,148
v3.20.4
Fair Value Measurements
12 Months Ended
Dec. 31, 2020
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 312020201920202019
Assets1
Restricted cash equivalents$17 $17 $15 $17 
CMS Energy common stock— — — 
Nonqualified deferred compensation plan assets23 18 18 14 
Derivative instruments
Total assets$41 $36 $34 $33 
Liabilities1
Nonqualified deferred compensation plan liabilities$23 $18 $18 $14 
Derivative instruments17 — — 
Total liabilities$40 $26 $18 $14 
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 18, Cash and Cash Equivalents.
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets.
Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3.
The derivatives classified as Level 2 are interest rate swaps at CMS Energy, which are valued using market-based inputs. CMS Energy uses interest rate swaps to manage its interest rate risk on certain long‑term debt obligations and certain notes receivable at EnerBank.
A subsidiary of CMS Enterprises uses floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with future interest payments on certain long‑term variable-rate debt. The interest rate swaps are accounted for as cash flow hedges of the future variability of interest payments on debt with a notional amount of $85 million at December 31, 2020. Gains or losses on these swaps are initially reported in other comprehensive income (loss) and then, as interest payments are made on the hedged debt, are recognized in earnings within other interest expense on CMS Energy’s consolidated statements of income. The amount of losses recorded in other comprehensive loss was $6 million for the
year ended December 31, 2020, $4 million for the year ended December 31, 2019 and $2 million for the year ended December 31, 2018. There were no material impacts on other interest expense associated with these swaps during the years presented. The fair value of these swaps recorded in other liabilities on CMS Energy’s consolidated balance sheets totaled $9 million at December 31, 2020 and $5 million at December 31, 2019. CMS Energy also has other interest rate swaps that economically hedge interest rate risk on debt, but that do not qualify for cash flow hedge accounting; the amounts associated with these swaps were not material for the years presented.
EnerBank uses fixed-to-floating interest rate swaps to manage interest rate risk exposure associated with changes in the fair value of certain long‑term fixed‑rate loans. The interest rate swaps qualify as fair value hedges of long‑term, fixed‑rate notes receivable with a notional amount of $134 million at December 31, 2020 and 2019. The fair value of these interest rate swaps recorded in other liabilities was $6 million at December 31, 2020 and $1 million at December 31, 2019. CMS Energy is adjusting the carrying value of the hedged notes receivable for the change in their fair value due to the hedged risk. For the year ended December 31, 2020, CMS Energy recorded a $5 million loss within operating revenue for the change in the fair value of the interest rate swaps and a $5 million gain within operating revenue for the change in the carrying value of the hedged notes receivable notes. Amounts recognized within operating revenue for the year ended December 31, 2019 were immaterial.
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 years presented.
Consumers Energy Company  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Measurements Fair Value Measurements
Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows:
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 inputs are observable, market-based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data.
Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities.
CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
December 312020201920202019
Assets1
Restricted cash equivalents$17 $17 $15 $17 
CMS Energy common stock— — — 
Nonqualified deferred compensation plan assets23 18 18 14 
Derivative instruments
Total assets$41 $36 $34 $33 
Liabilities1
Nonqualified deferred compensation plan liabilities$23 $18 $18 $14 
Derivative instruments17 — — 
Total liabilities$40 $26 $18 $14 
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 18, Cash and Cash Equivalents.
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets.
Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3.
The derivatives classified as Level 2 are interest rate swaps at CMS Energy, which are valued using market-based inputs. CMS Energy uses interest rate swaps to manage its interest rate risk on certain long‑term debt obligations and certain notes receivable at EnerBank.
A subsidiary of CMS Enterprises uses floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with future interest payments on certain long‑term variable-rate debt. The interest rate swaps are accounted for as cash flow hedges of the future variability of interest payments on debt with a notional amount of $85 million at December 31, 2020. Gains or losses on these swaps are initially reported in other comprehensive income (loss) and then, as interest payments are made on the hedged debt, are recognized in earnings within other interest expense on CMS Energy’s consolidated statements of income. The amount of losses recorded in other comprehensive loss was $6 million for the
year ended December 31, 2020, $4 million for the year ended December 31, 2019 and $2 million for the year ended December 31, 2018. There were no material impacts on other interest expense associated with these swaps during the years presented. The fair value of these swaps recorded in other liabilities on CMS Energy’s consolidated balance sheets totaled $9 million at December 31, 2020 and $5 million at December 31, 2019. CMS Energy also has other interest rate swaps that economically hedge interest rate risk on debt, but that do not qualify for cash flow hedge accounting; the amounts associated with these swaps were not material for the years presented.
EnerBank uses fixed-to-floating interest rate swaps to manage interest rate risk exposure associated with changes in the fair value of certain long‑term fixed‑rate loans. The interest rate swaps qualify as fair value hedges of long‑term, fixed‑rate notes receivable with a notional amount of $134 million at December 31, 2020 and 2019. The fair value of these interest rate swaps recorded in other liabilities was $6 million at December 31, 2020 and $1 million at December 31, 2019. CMS Energy is adjusting the carrying value of the hedged notes receivable for the change in their fair value due to the hedged risk. For the year ended December 31, 2020, CMS Energy recorded a $5 million loss within operating revenue for the change in the fair value of the interest rate swaps and a $5 million gain within operating revenue for the change in the carrying value of the hedged notes receivable notes. Amounts recognized within operating revenue for the year ended December 31, 2019 were immaterial.
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 years presented.
v3.20.4
Financial Instruments
12 Months Ended
Dec. 31, 2020
Financial Instruments [Line Items]  
Financial Instruments Financial Instruments
Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 6, Fair Value Measurements.
In Millions
December 31, 2020December 31, 2019
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
CMS Energy, including Consumers
Assets
Long-term receivables1
$17 $17 $— $— $17 $20 $20 $— $— $20 
Notes receivable2
2,887 3,248 — — 3,248 2,500 2,652 — — 2,652 
Securities held to maturity3
28 29 — 29 — 26 26 — 26 — 
Liabilities
Long-term debt4
15,120 17,512 1,249 14,178 2,085 13,062 14,185 1,197 11,048 1,940 
Long-term payables5
33 35 — — 35 30 32 — — 32 
Consumers
Assets
Long-term receivables1
$17 $17 $— $— $17 $20 $20 $— $— $20 
Notes receivable – related party6
107 107 — — 107 103 103 — — 103 
Liabilities
Long-term debt7
8,106 9,801 — 7,716 2,085 7,250 8,010 — 6,070 1,940 
1Includes current portion of long-term accounts receivable of $12 million at December 31, 2020 and $13 million at December 31, 2019.
2Includes current portion of notes receivable of $275 million at December 31, 2020 and $242 million at December 31, 2019. For further details, see Note 8, Notes Receivable.
3These investment securities consist primarily of mortgage-backed securities and Utah Housing Corporation bonds held by EnerBank. There were $1 million of unrealized gains in 2020 and no unrealized gains or losses in 2019.
4Includes current portion of long-term debt of $1.5 billion at December 31, 2020 and $1.1 billion at December 31, 2019.
5Includes current portion of long-term payables of $6 million at December 31, 2020 and $1 million at December 31, 2019.
6Includes current portion of notes receivable – related party of $7 million at December 31, 2020 and 2019. For further details on this note receivable, see Note 8, Notes Receivable.
7Includes current portion of long-term debt of $364 million at December 31, 2020 and $202 million at December 31, 2019.
The effects of third-party credit enhancements were excluded from the fair value measurements of long-term debt. The principal amount of CMS Energy’s long-term debt supported by third-party credit enhancements was $35 million at December 31, 2019. The entirety of this amount was at Consumers.
DB SERP Securities: In 2018, CMS Energy and Consumers sold available-for-sale investment securities held within the DB SERP, receiving proceeds of $142 million, $103 million of which was related to Consumers.
Consumers Energy Company  
Financial Instruments [Line Items]  
Financial Instruments Financial Instruments
Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 6, Fair Value Measurements.
In Millions
December 31, 2020December 31, 2019
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
CMS Energy, including Consumers
Assets
Long-term receivables1
$17 $17 $— $— $17 $20 $20 $— $— $20 
Notes receivable2
2,887 3,248 — — 3,248 2,500 2,652 — — 2,652 
Securities held to maturity3
28 29 — 29 — 26 26 — 26 — 
Liabilities
Long-term debt4
15,120 17,512 1,249 14,178 2,085 13,062 14,185 1,197 11,048 1,940 
Long-term payables5
33 35 — — 35 30 32 — — 32 
Consumers
Assets
Long-term receivables1
$17 $17 $— $— $17 $20 $20 $— $— $20 
Notes receivable – related party6
107 107 — — 107 103 103 — — 103 
Liabilities
Long-term debt7
8,106 9,801 — 7,716 2,085 7,250 8,010 — 6,070 1,940 
1Includes current portion of long-term accounts receivable of $12 million at December 31, 2020 and $13 million at December 31, 2019.
2Includes current portion of notes receivable of $275 million at December 31, 2020 and $242 million at December 31, 2019. For further details, see Note 8, Notes Receivable.
3These investment securities consist primarily of mortgage-backed securities and Utah Housing Corporation bonds held by EnerBank. There were $1 million of unrealized gains in 2020 and no unrealized gains or losses in 2019.
4Includes current portion of long-term debt of $1.5 billion at December 31, 2020 and $1.1 billion at December 31, 2019.
5Includes current portion of long-term payables of $6 million at December 31, 2020 and $1 million at December 31, 2019.
6Includes current portion of notes receivable – related party of $7 million at December 31, 2020 and 2019. For further details on this note receivable, see Note 8, Notes Receivable.
7Includes current portion of long-term debt of $364 million at December 31, 2020 and $202 million at December 31, 2019.
The effects of third-party credit enhancements were excluded from the fair value measurements of long-term debt. The principal amount of CMS Energy’s long-term debt supported by third-party credit enhancements was $35 million at December 31, 2019. The entirety of this amount was at Consumers.
DB SERP Securities: In 2018, CMS Energy and Consumers sold available-for-sale investment securities held within the DB SERP, receiving proceeds of $142 million, $103 million of which was related to Consumers.
v3.20.4
Notes Receivable
12 Months Ended
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Notes Receivable Notes Receivable
Presented in the following table are details of CMS Energy’s and Consumers’ notes receivable:
In Millions
December 3120202019
CMS Energy, including Consumers
Current
EnerBank notes receivable, net of allowance for loan losses$275 $242 
Non‑current
EnerBank notes receivable, net of allowance for loan losses2,612 2,258 
Total notes receivable$2,887 $2,500 
Consumers
Current
DB SERP note receivable – related party$$
Non‑current
DB SERP note receivable – related party100 96 
Total notes receivable$107 $103 
EnerBank Notes Receivable
EnerBank notes receivable are primarily unsecured, fixed-rate installment loans provided throughout the U.S. to finance home improvements. EnerBank records its notes receivable at cost, less an allowance for loan losses.
Authorized contractors pay fees to EnerBank to provide borrowers with same-as-cash, zero interest, or reduced interest loans. Unearned income associated with the loan fees, which is recorded as a reduction to notes receivable on CMS Energy’s consolidated balance sheets, was $128 million at December 31, 2020 and $134 million at December 31, 2019.
During 2020, EnerBank purchased portfolios of secured and unsecured consumer installment loans with a principal value of $90 million. During 2020, EnerBank completed sales of notes receivable with a principal value of $246 million and recorded gains of $6 million.
EnerBank utilizes FICO scores as a key credit quality indicator when underwriting new loans and in assessing the credit exposures in its loan portfolio. The score is determined at the time of a borrower’s application and is generally not updated since the average duration of loans is about two years. At December 31, 2020, 86 percent of EnerBank’s loans had a FICO score rating between good and excellent. At December 31, 2020, 97 percent of EnerBank’s loan portfolio was originated within the past five years.
The allowance for loan losses at December 31, 2020 reflects expected credit losses over the entire lifetime of the loan portfolio. EnerBank estimates the allowance by using the “weighted-average remaining maturity” methodology for their term loans, and the “probability of default and loss given default” methodology for their same-as-cash loans. These methodologies consider historical loan loss experience, prepayment expectations, and credit quality indicators. EnerBank considers current and projected economic conditions, and other reasonable and supportable forecast information to determine if adjustments to the allowance are necessary. The allowance is increased by the provision for loan losses and decreased by loan charge‑offs net of recoveries. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due.
Presented in the following table are the changes in the allowance for loan losses:
In Millions
Years Ended December 3120202019
Balance at beginning of period$33 $24 
Effects of new accounting standard1
62 — 
Provision for loan losses60 38 
Charge-offs(39)(35)
Recoveries
Balance at end of period$123 $33 
1The allowance for loan losses at December 31, 2019 reflected expected credit losses over a 12-month period. On January 1, 2020, in accordance with ASU 2016-13, Measurement of Credit Losses on Financial Instruments, the allowance for loan losses was adjusted to reflect expected credit losses over the life of the loan. Additionally, EnerBank recorded $3 million for expected credit losses related to unfunded loan commitments. For further details, see Note 2, New Accounting Standards.
Loans that are 30 days or more past due are considered delinquent. The balance of EnerBank’s delinquent loans was $32 million at December 31, 2020 and $33 million at December 31, 2019. At December 31, 2020 and 2019, EnerBank’s loans that had been modified as troubled debt restructurings were immaterial.
In response to the COVID-19 pandemic, and consistent with FDIC guidance, EnerBank offered new payment accommodations for current qualifying customers. At December 31, 2020, EnerBank had not experienced increased delinquent loans, charge-offs, or increased loan modifications due to the COVID-19 pandemic. EnerBank did not make any material adjustments to their allowance for loan losses at December 31, 2020 due to the COVID-19 pandemic. EnerBank cannot predict the longer-term impacts of the pandemic, but could experience slower lending growth, higher loan write-offs, and increased loan modifications.
EnerBank issues loan commitments to meet customer-financing needs. These commitments are agreements to provide credit as long as certain conditions are met and expire after 120 days. EnerBank uses the same credit policies in making these commitments as it uses for loans. EnerBank had $348 million of off-balance-sheet unfunded loan commitments at December 31, 2020, and had recorded a liability of $6 million for expected credit losses on those commitments.
EnerBank has entered into interest rate swaps on $134 million of its loans (notes receivable). For information about interest rate swaps, see Note 6, Fair Value Measurements.
DB SERP Note Receivable – Related Party
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  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Notes Receivable Notes Receivable
Presented in the following table are details of CMS Energy’s and Consumers’ notes receivable:
In Millions
December 3120202019
CMS Energy, including Consumers
Current
EnerBank notes receivable, net of allowance for loan losses$275 $242 
Non‑current
EnerBank notes receivable, net of allowance for loan losses2,612 2,258 
Total notes receivable$2,887 $2,500 
Consumers
Current
DB SERP note receivable – related party$$
Non‑current
DB SERP note receivable – related party100 96 
Total notes receivable$107 $103 
EnerBank Notes Receivable
EnerBank notes receivable are primarily unsecured, fixed-rate installment loans provided throughout the U.S. to finance home improvements. EnerBank records its notes receivable at cost, less an allowance for loan losses.
Authorized contractors pay fees to EnerBank to provide borrowers with same-as-cash, zero interest, or reduced interest loans. Unearned income associated with the loan fees, which is recorded as a reduction to notes receivable on CMS Energy’s consolidated balance sheets, was $128 million at December 31, 2020 and $134 million at December 31, 2019.
During 2020, EnerBank purchased portfolios of secured and unsecured consumer installment loans with a principal value of $90 million. During 2020, EnerBank completed sales of notes receivable with a principal value of $246 million and recorded gains of $6 million.
EnerBank utilizes FICO scores as a key credit quality indicator when underwriting new loans and in assessing the credit exposures in its loan portfolio. The score is determined at the time of a borrower’s application and is generally not updated since the average duration of loans is about two years. At December 31, 2020, 86 percent of EnerBank’s loans had a FICO score rating between good and excellent. At December 31, 2020, 97 percent of EnerBank’s loan portfolio was originated within the past five years.
The allowance for loan losses at December 31, 2020 reflects expected credit losses over the entire lifetime of the loan portfolio. EnerBank estimates the allowance by using the “weighted-average remaining maturity” methodology for their term loans, and the “probability of default and loss given default” methodology for their same-as-cash loans. These methodologies consider historical loan loss experience, prepayment expectations, and credit quality indicators. EnerBank considers current and projected economic conditions, and other reasonable and supportable forecast information to determine if adjustments to the allowance are necessary. The allowance is increased by the provision for loan losses and decreased by loan charge‑offs net of recoveries. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due.
Presented in the following table are the changes in the allowance for loan losses:
In Millions
Years Ended December 3120202019
Balance at beginning of period$33 $24 
Effects of new accounting standard1
62 — 
Provision for loan losses60 38 
Charge-offs(39)(35)
Recoveries
Balance at end of period$123 $33 
1The allowance for loan losses at December 31, 2019 reflected expected credit losses over a 12-month period. On January 1, 2020, in accordance with ASU 2016-13, Measurement of Credit Losses on Financial Instruments, the allowance for loan losses was adjusted to reflect expected credit losses over the life of the loan. Additionally, EnerBank recorded $3 million for expected credit losses related to unfunded loan commitments. For further details, see Note 2, New Accounting Standards.
Loans that are 30 days or more past due are considered delinquent. The balance of EnerBank’s delinquent loans was $32 million at December 31, 2020 and $33 million at December 31, 2019. At December 31, 2020 and 2019, EnerBank’s loans that had been modified as troubled debt restructurings were immaterial.
In response to the COVID-19 pandemic, and consistent with FDIC guidance, EnerBank offered new payment accommodations for current qualifying customers. At December 31, 2020, EnerBank had not experienced increased delinquent loans, charge-offs, or increased loan modifications due to the COVID-19 pandemic. EnerBank did not make any material adjustments to their allowance for loan losses at December 31, 2020 due to the COVID-19 pandemic. EnerBank cannot predict the longer-term impacts of the pandemic, but could experience slower lending growth, higher loan write-offs, and increased loan modifications.
EnerBank issues loan commitments to meet customer-financing needs. These commitments are agreements to provide credit as long as certain conditions are met and expire after 120 days. EnerBank uses the same credit policies in making these commitments as it uses for loans. EnerBank had $348 million of off-balance-sheet unfunded loan commitments at December 31, 2020, and had recorded a liability of $6 million for expected credit losses on those commitments.
EnerBank has entered into interest rate swaps on $134 million of its loans (notes receivable). For information about interest rate swaps, see Note 6, Fair Value Measurements.
DB SERP Note Receivable – Related Party
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.
v3.20.4
Plant, Property, and Equipment
12 Months Ended
Dec. 31, 2020
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
20202019
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 - 125
$26,757 $24,963 
Enterprises
Independent power production1
3 - 40
1,112 403 
Other
3 - 5
EnerBank
1 - 7
37 22 
Plant, property, and equipment, gross$27,907 $25,390 
Construction work in progress1,085 896 
Accumulated depreciation and amortization(7,953)(7,360)
Total plant, property, and equipment2
$21,039 $18,926 
Consumers
Plant, property, and equipment, gross
Electric
Generation
22 - 125
$6,376 $5,942 
Distribution
20 - 75
9,130 8,519 
Transmission
46 - 75
— 113 
Other
5 - 50
1,326 1,258 
Assets under finance leases and other financing3
323 326 
Gas
Distribution
20 - 85
5,702 5,235 
Transmission
17 - 75
2,003 1,752 
Underground storage facilities4
27 - 75
1,046 987 
Other
5 - 50
817 797 
Assets under finance leases3
13 14 
Other non-utility property
3 - 51
21 20 
Plant, property, and equipment, gross$26,757 $24,963 
Construction work in progress1,058 879 
Accumulated depreciation and amortization(7,844)(7,272)
Total plant, property, and equipment2
$19,971 $18,570 
1A significant portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 10, Leases and Palisades Financing.
2Consumers’ plant additions were $2.0 billion for the years ended December 31, 2020 and 2019. Consumers’ plant retirements were $220 million for the year ended December 31, 2020 and $380 million for the year ended December 31, 2019. Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Accordingly, in 2019, Consumers removed from total plant, property, and
equipment $667 million, representing the projected remaining book value of the two units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 3, Regulatory Matters.
3For information regarding the amortization terms of Consumers’ assets under finance leases and other financing, see Note 10, Leases and Palisades Financing.
4Underground storage includes base natural gas of $26 million at December 31, 2020 and 2019. Base natural gas is not subject to depreciation.
Intangible Assets: Included in net plant, property, and equipment are intangible assets. Presented in the following table are details about CMS Energy’s and Consumers’ intangible assets:
In Millions
DescriptionAmortization
Life in Years
December 31, 2020December 31, 2019
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
CMS Energy, including Consumers
Software development
1 - 15
$883 $577 $882 $529 
Rights of way
50 - 85
197 57 180 55 
Franchises and consents
5 - 50
16 10 16 
Leasehold improvements
various2
10 
Other intangiblesvarious28 16 27 15 
Total$1,134 $667 $1,114 $615 
Consumers
Software development
3 - 15
$856 $568 $869 $521 
Rights of way
50 - 85
197 57 180 55 
Franchises and consents
5 - 50
16 10 16 
Leasehold improvements
various2
10 
Other intangiblesvarious25 16 26 15 
Total$1,104 $658 $1,100 $607 
1Consumers’ intangible asset additions were $69 million for the year ended December 31, 2020 and $67 million for the year ended December 31, 2019. Consumers’ intangible asset retirements were $65 million for the year ended December 31, 2020 and $193 million for the year ended December 31, 2019.
2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.
Capitalization: CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general ratemaking process.
With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability.
Software: CMS Energy and Consumers capitalize the costs to purchase and develop internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware.
AFUDC: Consumers capitalizes AFUDC on regulated major construction projects, except pollution control facilities on its fossil-fuel-fired power plants. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset. Presented in the following table are Consumers’ average AFUDC capitalization rates:
Years Ended December 31202020192018
Electric6.9 %6.4 %6.9 %
Gas5.7 5.8 5.9 
Assets Under Finance Leases and Other Financing: Presented in the following table are further details about changes in Consumers’ assets under finance leases and other financing:
In Millions
Years Ended December 3120202019
Consumers
Balance at beginning of period$340 $309 
Additions— 26 
Net retirements and other adjustments(4)
Balance at end of period$336 $340 
Assets under finance leases and other financing are presented as gross amounts. Consumers’ accumulated amortization of assets under finance leases and other financing was $254 million at December 31, 2020 and $239 million at December 31, 2019.
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 3120202019
CMS Energy, including Consumers
Utility plant assets$7,841 $7,269 
Non-utility plant assets112 91 
Consumers
Utility plant assets$7,841 $7,269 
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 31202020192018
Electric utility property3.9 %3.9 %3.9 %
Gas utility property2.9 2.9 2.9 
Other property9.8 10.0 10.1 
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 31202020192018
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$902 $842 $778 
Amortization expense
Software116 121 127 
Other intangible assets
Securitized regulatory assets26 26 25 
Total depreciation and amortization expense$1,048 $992 $933 
Consumers
Depreciation expense – plant, property, and equipment$881 $827 $768 
Amortization expense
Software112 119 125 
Other intangible assets
Securitized regulatory assets26 26 25 
Total depreciation and amortization expense$1,023 $975 $921 
Presented in the following table is CMS Energy’s and Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20212022202320242025
CMS Energy, including Consumers
Intangible asset amortization expense$120 $115 $100 $89 $86 
Consumers
Intangible asset amortization expense$115 $111 $97 $86 $85 
Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2020:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3 %51.0 %various
Utility plant in service$1,743 $489 $381 
Accumulated depreciation(822)(188)(107)
Construction work in progress12 78 12 
Net investment$933 $379 $286 
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
20202019
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 - 125
$26,757 $24,963 
Enterprises
Independent power production1
3 - 40
1,112 403 
Other
3 - 5
EnerBank
1 - 7
37 22 
Plant, property, and equipment, gross$27,907 $25,390 
Construction work in progress1,085 896 
Accumulated depreciation and amortization(7,953)(7,360)
Total plant, property, and equipment2
$21,039 $18,926 
Consumers
Plant, property, and equipment, gross
Electric
Generation
22 - 125
$6,376 $5,942 
Distribution
20 - 75
9,130 8,519 
Transmission
46 - 75
— 113 
Other
5 - 50
1,326 1,258 
Assets under finance leases and other financing3
323 326 
Gas
Distribution
20 - 85
5,702 5,235 
Transmission
17 - 75
2,003 1,752 
Underground storage facilities4
27 - 75
1,046 987 
Other
5 - 50
817 797 
Assets under finance leases3
13 14 
Other non-utility property
3 - 51
21 20 
Plant, property, and equipment, gross$26,757 $24,963 
Construction work in progress1,058 879 
Accumulated depreciation and amortization(7,844)(7,272)
Total plant, property, and equipment2
$19,971 $18,570 
1A significant portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 10, Leases and Palisades Financing.
2Consumers’ plant additions were $2.0 billion for the years ended December 31, 2020 and 2019. Consumers’ plant retirements were $220 million for the year ended December 31, 2020 and $380 million for the year ended December 31, 2019. Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Accordingly, in 2019, Consumers removed from total plant, property, and
equipment $667 million, representing the projected remaining book value of the two units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 3, Regulatory Matters.
3For information regarding the amortization terms of Consumers’ assets under finance leases and other financing, see Note 10, Leases and Palisades Financing.
4Underground storage includes base natural gas of $26 million at December 31, 2020 and 2019. Base natural gas is not subject to depreciation.
Intangible Assets: Included in net plant, property, and equipment are intangible assets. Presented in the following table are details about CMS Energy’s and Consumers’ intangible assets:
In Millions
DescriptionAmortization
Life in Years
December 31, 2020December 31, 2019
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
CMS Energy, including Consumers
Software development
1 - 15
$883 $577 $882 $529 
Rights of way
50 - 85
197 57 180 55 
Franchises and consents
5 - 50
16 10 16 
Leasehold improvements
various2
10 
Other intangiblesvarious28 16 27 15 
Total$1,134 $667 $1,114 $615 
Consumers
Software development
3 - 15
$856 $568 $869 $521 
Rights of way
50 - 85
197 57 180 55 
Franchises and consents
5 - 50
16 10 16 
Leasehold improvements
various2
10 
Other intangiblesvarious25 16 26 15 
Total$1,104 $658 $1,100 $607 
1Consumers’ intangible asset additions were $69 million for the year ended December 31, 2020 and $67 million for the year ended December 31, 2019. Consumers’ intangible asset retirements were $65 million for the year ended December 31, 2020 and $193 million for the year ended December 31, 2019.
2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.
Capitalization: CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general ratemaking process.
With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability.
Software: CMS Energy and Consumers capitalize the costs to purchase and develop internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware.
AFUDC: Consumers capitalizes AFUDC on regulated major construction projects, except pollution control facilities on its fossil-fuel-fired power plants. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset. Presented in the following table are Consumers’ average AFUDC capitalization rates:
Years Ended December 31202020192018
Electric6.9 %6.4 %6.9 %
Gas5.7 5.8 5.9 
Assets Under Finance Leases and Other Financing: Presented in the following table are further details about changes in Consumers’ assets under finance leases and other financing:
In Millions
Years Ended December 3120202019
Consumers
Balance at beginning of period$340 $309 
Additions— 26 
Net retirements and other adjustments(4)
Balance at end of period$336 $340 
Assets under finance leases and other financing are presented as gross amounts. Consumers’ accumulated amortization of assets under finance leases and other financing was $254 million at December 31, 2020 and $239 million at December 31, 2019.
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 3120202019
CMS Energy, including Consumers
Utility plant assets$7,841 $7,269 
Non-utility plant assets112 91 
Consumers
Utility plant assets$7,841 $7,269 
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 31202020192018
Electric utility property3.9 %3.9 %3.9 %
Gas utility property2.9 2.9 2.9 
Other property9.8 10.0 10.1 
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 31202020192018
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$902 $842 $778 
Amortization expense
Software116 121 127 
Other intangible assets
Securitized regulatory assets26 26 25 
Total depreciation and amortization expense$1,048 $992 $933 
Consumers
Depreciation expense – plant, property, and equipment$881 $827 $768 
Amortization expense
Software112 119 125 
Other intangible assets
Securitized regulatory assets26 26 25 
Total depreciation and amortization expense$1,023 $975 $921 
Presented in the following table is CMS Energy’s and Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20212022202320242025
CMS Energy, including Consumers
Intangible asset amortization expense$120 $115 $100 $89 $86 
Consumers
Intangible asset amortization expense$115 $111 $97 $86 $85 
Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2020:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3 %51.0 %various
Utility plant in service$1,743 $489 $381 
Accumulated depreciation(822)(188)(107)
Construction work in progress12 78 12 
Net investment$933 $379 $286 
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.
v3.20.4
Leases and Palisades Financing
12 Months Ended
Dec. 31, 2020
Leases [Line Items]  
Leases and Palisades Financing Leases and Palisades Financing
Lessee
CMS Energy and Consumers lease various assets from third parties, including coal-carrying railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for several of their PPAs as leases.
CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their consolidated balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and service vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term.
CMS Energy and Consumers include future payments for all renewal options, fair market value extensions, and buyout provisions reasonably certain of exercise in their measurement of lease right-of-use assets and lease liabilities. In addition, certain leases for service vehicles contain end-of-lease adjustment clauses based on proceeds received from the sale or disposition of the vehicles. CMS Energy and Consumers also include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their coal-carrying railcar leases.
Most of Consumers’ PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a finance lease.
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
CMS Energy, including ConsumersConsumers
December 312020201920202019
Operating leases
Right-of-use assets1
$34$47$28$40
Lease liabilities
Current lease liabilities2
9978
Non-current lease liabilities3
25372132
Finance leases
Right-of-use assets$65$71$65$71
Lease liabilities4
Current lease liabilities7676
Non-current lease liabilities53605360
Weighted-average remaining lease term (in years)
Operating leases19171814
Finance leases12121212
Weighted-average discount rate
Operating leases3.9 %3.8 %3.8 %3.7 %
Finance leases5
1.8 %1.9 %1.8 %1.9 %
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, 2020 and December 31, 2019.
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 3120202019
CMS Energy, including Consumers
Operating lease costs$10 $11 
Finance lease costs
Amortization of right-of-use assets
Interest on lease liabilities17 18 
Variable lease costs94 95 
Short-term lease costs17 16 
Total lease costs$144 $146 
Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets
Interest on lease liabilities17 18 
Variable lease costs94 95 
Short-term lease costs16 16 
Total lease costs$142 $144 
Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120202019
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$11 $11 
Cash used in operating activities for finance leases17 18 
Cash used in financing activities for finance leases
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases17 18 
Cash used in financing activities for finance leases
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non-cancelable leases:
In Millions
Finance Leases
December 31, 2020Operating LeasesPipelines and PPAsOtherTotal
CMS Energy, including Consumers
2021$10 $17 $$22 
202214 19 
202313 18 
202413 16 
202513 14 
2026 and thereafter34 66 11 77 
Total minimum lease payments$52 $136 $30 $166 
Less discount18 103 106 
Present value of minimum lease payments$34 $33 $27 $60 
Consumers
2021$$17 $$22 
202214 19 
202313 18 
202413 16 
202513 14 
2026 and thereafter27 66 11 77 
Total minimum lease payments$43 $136 $30 $166 
Less discount15 103 106 
Present value of minimum lease payments$28 $33 $27 $60 
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, 2020, lease revenue from these power sales agreements was $148 million, which included variable lease payments of $93 million. For the year ended December 31, 2019, lease revenue from these power sales agreements was $174 million, which included variable lease payments of $119 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, 2020
2021$54 
202248 
202343 
202443 
202544 
2026 and thereafter18 
Total minimum lease payments$250 
Consumers has an agreement to build, own, operate, and maintain a compressed natural gas fueling station through December 2038. This agreement is accounted for as a direct finance lease, under which the lessee has the option to purchase the natural gas fueling station at the end of the lease term. Fixed monthly payments escalate annually with inflation.
In December 2018, Consumers and a subsidiary of CMS Energy executed a 20‑year natural gas transportation agreement, related to a pipeline owned by Consumers. This agreement is accounted for as a direct finance lease and will automatically extend annually unless terminated by either party. The effects of the lease are eliminated on CMS Energy’s consolidated financial statements.
Minimum rental payments to be received under Consumers’ direct financing leases are $1 million for each of the next five years and $18 million for the years thereafter. The lease receivable was $10 million as of December 31, 2020, which does not include unearned income of $13 million.
Minimum rental payments to be received under CMS Energy’s direct finance lease are less than $1 million for each of the next five years and $10 million for the years thereafter. The lease receivable was $5 million as of December 31, 2020, which does not include unearned income of $5 million.
Palisades Financing
In 2007, Consumers sold Palisades to Entergy and entered into a 15-year PPA to purchase virtually all of the capacity and energy produced by Palisades, up to the annual average capacity of 798 MW. Consumers accounted for this transaction as a financing because of its continuing involvement with Palisades through security provided to Entergy for the PPA obligation and other arrangements. Palisades has therefore remained on Consumers’ consolidated balance sheets and Consumers has continued to depreciate it. At the time of the sale, Consumers recorded the sales proceeds as a financing obligation, and has subsequently recorded a portion of the payments under the PPA as interest expense and as a reduction of the financing obligation.
Total amortization and interest charges under the financing were $14 million for the year ended December 31, 2020, $15 million for the year ended December 31, 2019, and $16 million for the year ended December 31, 2018. At December 31, 2020, the Palisades asset and financing obligation both had a balance of $16 million.
Presented in the following table are the minimum Palisades PPA payments included in the financing obligation:
In Millions
December 31, 2020
2021$14 
2022
Total minimum payments$17 
Less discount
Financing obligation$16 
Less current portion13 
Non-current portion$
Consumers Energy Company  
Leases [Line Items]  
Leases and Palisades Financing Leases and Palisades Financing
Lessee
CMS Energy and Consumers lease various assets from third parties, including coal-carrying railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for several of their PPAs as leases.
CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their consolidated balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and service vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term.
CMS Energy and Consumers include future payments for all renewal options, fair market value extensions, and buyout provisions reasonably certain of exercise in their measurement of lease right-of-use assets and lease liabilities. In addition, certain leases for service vehicles contain end-of-lease adjustment clauses based on proceeds received from the sale or disposition of the vehicles. CMS Energy and Consumers also include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their coal-carrying railcar leases.
Most of Consumers’ PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a finance lease.
Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:
In Millions, Except as Noted
CMS Energy, including ConsumersConsumers
December 312020201920202019
Operating leases
Right-of-use assets1
$34$47$28$40
Lease liabilities
Current lease liabilities2
9978
Non-current lease liabilities3
25372132
Finance leases
Right-of-use assets$65$71$65$71
Lease liabilities4
Current lease liabilities7676
Non-current lease liabilities53605360
Weighted-average remaining lease term (in years)
Operating leases19171814
Finance leases12121212
Weighted-average discount rate
Operating leases3.9 %3.8 %3.8 %3.7 %
Finance leases5
1.8 %1.9 %1.8 %1.9 %
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, 2020 and December 31, 2019.
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 3120202019
CMS Energy, including Consumers
Operating lease costs$10 $11 
Finance lease costs
Amortization of right-of-use assets
Interest on lease liabilities17 18 
Variable lease costs94 95 
Short-term lease costs17 16 
Total lease costs$144 $146 
Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets
Interest on lease liabilities17 18 
Variable lease costs94 95 
Short-term lease costs16 16 
Total lease costs$142 $144 
Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120202019
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$11 $11 
Cash used in operating activities for finance leases17 18 
Cash used in financing activities for finance leases
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases17 18 
Cash used in financing activities for finance leases
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, 2020Operating LeasesPipelines and PPAsOtherTotal
CMS Energy, including Consumers
2021$10 $17 $$22 
202214 19 
202313 18 
202413 16 
202513 14 
2026 and thereafter34 66 11 77 
Total minimum lease payments$52 $136 $30 $166 
Less discount18 103 106 
Present value of minimum lease payments$34 $33 $27 $60 
Consumers
2021$$17 $$22 
202214 19 
202313 18 
202413 16 
202513 14 
2026 and thereafter27 66 11 77 
Total minimum lease payments$43 $136 $30 $166 
Less discount15 103 106 
Present value of minimum lease payments$28 $33 $27 $60 
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, 2020, lease revenue from these power sales agreements was $148 million, which included variable lease payments of $93 million. For the year ended December 31, 2019, lease revenue from these power sales agreements was $174 million, which included variable lease payments of $119 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, 2020
2021$54 
202248 
202343 
202443 
202544 
2026 and thereafter18 
Total minimum lease payments$250 
Consumers has an agreement to build, own, operate, and maintain a compressed natural gas fueling station through December 2038. This agreement is accounted for as a direct finance lease, under which the lessee has the option to purchase the natural gas fueling station at the end of the lease term. Fixed monthly payments escalate annually with inflation.
In December 2018, Consumers and a subsidiary of CMS Energy executed a 20‑year natural gas transportation agreement, related to a pipeline owned by Consumers. This agreement is accounted for as a direct finance lease and will automatically extend annually unless terminated by either party. The effects of the lease are eliminated on CMS Energy’s consolidated financial statements.
Minimum rental payments to be received under Consumers’ direct financing leases are $1 million for each of the next five years and $18 million for the years thereafter. The lease receivable was $10 million as of December 31, 2020, which does not include unearned income of $13 million.
Minimum rental payments to be received under CMS Energy’s direct finance lease are less than $1 million for each of the next five years and $10 million for the years thereafter. The lease receivable was $5 million as of December 31, 2020, which does not include unearned income of $5 million.
Palisades Financing
In 2007, Consumers sold Palisades to Entergy and entered into a 15-year PPA to purchase virtually all of the capacity and energy produced by Palisades, up to the annual average capacity of 798 MW. Consumers accounted for this transaction as a financing because of its continuing involvement with Palisades through security provided to Entergy for the PPA obligation and other arrangements. Palisades has therefore remained on Consumers’ consolidated balance sheets and Consumers has continued to depreciate it. At the time of the sale, Consumers recorded the sales proceeds as a financing obligation, and has subsequently recorded a portion of the payments under the PPA as interest expense and as a reduction of the financing obligation.
Total amortization and interest charges under the financing were $14 million for the year ended December 31, 2020, $15 million for the year ended December 31, 2019, and $16 million for the year ended December 31, 2018. At December 31, 2020, the Palisades asset and financing obligation both had a balance of $16 million.
Presented in the following table are the minimum Palisades PPA payments included in the financing obligation:
In Millions
December 31, 2020
2021$14 
2022
Total minimum payments$17 
Less discount
Financing obligation$16 
Less current portion13 
Non-current portion$
v3.20.4
Asset Retirement Obligations
12 Months Ended
Dec. 31, 2020
Asset Retirement Obligations [Line Items]  
Asset Retirement Obligations Asset Retirement Obligations
CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities associated with the closure of certain gas wells that have an indeterminate life. CMS Energy and Consumers have not recorded liabilities for assets that have immaterial cumulative disposal costs, such as substation batteries.
CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers.
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
Company and ARO DescriptionIn-Service DateLong-Lived Assets
CMS Energy, including Consumers
Closure of coal ash disposal areasvariousGenerating plants coal ash areas
Gas distribution cut, purge, and capvariousGas distribution mains and services
Asbestos abatement1973Electric and gas utility plant
Closure of renewable generation assetsvariousWind and solar generation facilities
Gas wells plug and abandonvariousGas transmission and storage
Consumers
Closure of coal ash disposal areasvariousGenerating plants coal ash areas
Gas distribution cut, purge, and capvariousGas distribution mains and services
Asbestos abatement1973Electric and gas utility plant
Closure of renewable generation assetsvariousWind and solar generation facilities
Gas wells plug and abandonvariousGas transmission and storage
No assets have been restricted for purposes of settling AROs.
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2019IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2020
CMS Energy, including Consumers
Consumers$474 $46 $(41)$23 $28 $530 
Renewable generation assets19 — — 23 
Total CMS Energy$477 $65 $(41)$24 $28 $553 
Consumers
Coal ash disposal areas$166 $— $(24)$$— $148 
Gas distribution cut, purge, and cap231 (5)13 — 240 
Asbestos abatement34 — — — 36 
Renewable generation assets21 24 — 28 74 
Gas wells plug and abandon22 16 (7)— 32 
Cable under Straits of Mackinac1
— (5)— — — 
Total Consumers$474 $46 $(41)$23 $28 $530 
1    For further details, see Note 4, Contingencies and Commitments—Consumers Electric Utility Contingencies.
In Millions
Company and ARO DescriptionARO Liability 12/31/2018IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2019
CMS Energy, including Consumers
Consumers$428 $55 $(37)$21 $$474 
Gas treating plant and gas wells— (1)— — — 
Renewable generation assets— — — — 
Total CMS Energy$432 $55 $(38)$21 $$477 
Consumers
Coal ash disposal areas$179 $— $(27)$$$166 
Gas distribution cut, purge, and cap205 22 (8)12 — 231 
Asbestos abatement33 — (1)— 34 
Renewable generation assets11 10 — — — 21 
Gas wells plug and abandon— 23 (1)— — 22 
Total Consumers$428 $55 $(37)$21 $$474 
Consumers Energy Company  
Asset Retirement Obligations [Line Items]  
Asset Retirement Obligations Asset Retirement Obligations
CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities associated with the closure of certain gas wells that have an indeterminate life. CMS Energy and Consumers have not recorded liabilities for assets that have immaterial cumulative disposal costs, such as substation batteries.
CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers.
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
Company and ARO DescriptionIn-Service DateLong-Lived Assets
CMS Energy, including Consumers
Closure of coal ash disposal areasvariousGenerating plants coal ash areas
Gas distribution cut, purge, and capvariousGas distribution mains and services
Asbestos abatement1973Electric and gas utility plant
Closure of renewable generation assetsvariousWind and solar generation facilities
Gas wells plug and abandonvariousGas transmission and storage
Consumers
Closure of coal ash disposal areasvariousGenerating plants coal ash areas
Gas distribution cut, purge, and capvariousGas distribution mains and services
Asbestos abatement1973Electric and gas utility plant
Closure of renewable generation assetsvariousWind and solar generation facilities
Gas wells plug and abandonvariousGas transmission and storage
No assets have been restricted for purposes of settling AROs.
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2019IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2020
CMS Energy, including Consumers
Consumers$474 $46 $(41)$23 $28 $530 
Renewable generation assets19 — — 23 
Total CMS Energy$477 $65 $(41)$24 $28 $553 
Consumers
Coal ash disposal areas$166 $— $(24)$$— $148 
Gas distribution cut, purge, and cap231 (5)13 — 240 
Asbestos abatement34 — — — 36 
Renewable generation assets21 24 — 28 74 
Gas wells plug and abandon22 16 (7)— 32 
Cable under Straits of Mackinac1
— (5)— — — 
Total Consumers$474 $46 $(41)$23 $28 $530 
1    For further details, see Note 4, Contingencies and Commitments—Consumers Electric Utility Contingencies.
In Millions
Company and ARO DescriptionARO Liability 12/31/2018IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2019
CMS Energy, including Consumers
Consumers$428 $55 $(37)$21 $$474 
Gas treating plant and gas wells— (1)— — — 
Renewable generation assets— — — — 
Total CMS Energy$432 $55 $(38)$21 $$477 
Consumers
Coal ash disposal areas$179 $— $(27)$$$166 
Gas distribution cut, purge, and cap205 22 (8)12 — 231 
Asbestos abatement33 — (1)— 34 
Renewable generation assets11 10 — — — 21 
Gas wells plug and abandon— 23 (1)— — 22 
Total Consumers$428 $55 $(37)$21 $$474 
v3.20.4
Retirement Benefits
12 Months Ended
Dec. 31, 2020
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 September 2020, CMS Energy and Consumers determined it was probable that 2020 lump-sum payments to retired employees under DB Pension Plan A would exceed the plan’s service cost and interest cost components of net periodic cost for the year. These lump-sum payments constitute pension plan liability settlements; once such settlements meet the service and interest cost threshold, recognition in earnings is required. As a result, in accordance with GAAP, CMS Energy, including Consumers, performed a remeasurement of DB Pension Plan A as of August 31, 2020 and recognized a settlement loss of $36 million; $35 million of this amount was recognized by Consumers and deferred as a regulatory asset. At December 31, 2020, CMS Energy, including Consumers, recognized an additional settlement loss of $10 million for the period September 1, 2020 to December 31, 2020; $10 million of this amount was recognized by Consumers and deferred as a regulatory asset. CMS Energy and Consumers will amortize the regulatory asset over nine 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 seven percent of base pay, depending on years of service. Employees are not required to contribute in order to receive the plan’s employer contribution. DCCP expense for CMS Energy, including Consumers, was $33 million for the year ended December 31, 2020, $30 million for the year ended December 31, 2019, and $26 million for the year ended December 31, 2018. DCCP expense for Consumers was $31 million for the year ended December 31, 2020, $28 million for the year ended December 31, 2019, and $25 million for the year ended December 31, 2018.
DB SERP: The DB SERP is a nonqualified plan as defined by the Internal Revenue Code. DB SERP benefits are paid from a rabbi trust established in 1988. The trust assets are not considered plan assets under ASC 715. DB SERP rabbi trust earnings are taxable. Presented in the following table are the fair values of trust assets, ABO, and contributions for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120202019
CMS Energy, including Consumers
Trust assets$146 $143 
ABO159 149 
Contributions— 
Consumers
Trust assets$107 $104 
ABO115 107 
Contributions— 
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 $11 million at December 31, 2020 and $8 million at December 31, 2019. DC SERP assets are included in other non‑current assets on CMS Energy’s and Consumers’ consolidated balance sheets. CMS Energy’s and Consumers’ DC SERP expense was $2 million for the years ended December 31, 2020 and 2019, and $1 million for the year ended December 31, 2018.
401(k) Plan: The 401(k) plan employer match equals 100 percent of eligible contributions up to the first three percent of an employee’s wages and 50 percent of eligible contributions up to the next two percent of an employee’s wages. The total 401(k) plan cost for CMS Energy, including Consumers, was $30 million for the year ended December 31, 2020, $28 million for the year ended December 31, 2019, and $27 million for the year ended December 31, 2018. The total 401(k) plan cost for Consumers was $29 million for the year ended December 31, 2020, $27 million for the year ended December 31, 2019, and $26 million for the year ended December 31, 2018.
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 2021 and 6.75 percent in 2020 for those under 65 and would increase 7.00 percent in 2021 and 7.25 percent in 2020 for those over 65. The rate of increase was assumed to decline to 4.75 percent by 2027 and thereafter for all retirees.
Assumptions: Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefits plans to determine benefit obligations and net periodic benefit cost:
December 31202020192018
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A2.73 %3.37 %4.48 %
DB Pension Plan B2.41 3.17 4.32 
DB SERP2.40 3.15 4.32 
OPEB Plan2.69 3.32 4.42 
Rate of compensation increase
DB Pension Plan A3.70 3.50 3.50 
DB SERP5.50 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A3.44 %4.55 %3.85 %
DB SERP3.46 4.58 3.83 
OPEB Plan3.57 4.63 3.93 
Interest cost discount rate2,3
DB Pension Plan A2.92 4.08 3.39 
DB Pension Plan B2.74 3.93 3.24 
DB SERP2.74 3.94 3.26 
OPEB Plan2.88 4.03 3.35 
Expected long-term rate of return on plan assets4
DB Pension Plans6.75 7.00 7.00 
OPEB Plan6.75 7.00 7.00 
Rate of compensation increase
DB Pension Plan A3.50 3.50 3.50 
DB SERP5.50 5.50 5.50 
1The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table for 2020 and 2019 and the RP-2014 Mortality Table for 2018, with improvement scales MP-2020 for 2020, MP-2019 for 2019, and MP-2018 for 2018. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table for 2020 and the RP-2014 Mortality Table for 2019 and 2018, with improvement scales MP-2019 for 2020, MP-2018 for 2019, and MP-2017 for 2018.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
4CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the
expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 6.75 percent in 2020. The actual return (loss) on the assets of the DB Pension Plans was 13.6 percent in 2020, 21.0 percent in 2019, and (6.7) percent in 2018.
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 benefits plans:
In Millions
DB Pension Plans and DB SERPOPEB Plan
Years Ended December 31202020192018202020192018
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$50 $41 $48 $16 $14 $17 
Interest cost83 103 95 33 41 34 
Settlement loss— — — — — 
Expected return on plan assets(191)(162)(149)(100)(88)(97)
Amortization of:
Net loss95 50 76 15 26 15 
Prior service cost (credit)(56)(62)(67)
Settlement loss— — — — — 
Net periodic cost (credit)$41 $33 $73 $(92)$(69)$(98)
Consumers
Net periodic cost (credit)
Service cost$49 $40 $47 $15 $13 $16 
Interest cost78 97 88 31 40 33 
Expected return on plan assets(181)(153)(139)(93)(82)(91)
Amortization of:
Net loss90 47 73 15 26 16 
Prior service cost (credit)(54)(61)(65)
Settlement loss— — — — — 
Net periodic cost (credit)$39 $32 $72 $(86)$(64)$(91)
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 year ended December 31, 2020, and nine years for the years ended December 31, 2019 and 2018. For DB Pension Plan B, the estimated period of amortization of gains and losses was 19 years for the year ended December 31, 2020, and 20 years for the years ended December 31, 2019 and 2018. For the OPEB Plan, the estimated amortization period was nine years for the year ended December 31, 2020, and ten years for the years ended December 31, 2019 and 2018.
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 had new prior service credits for OPEB in 2018. The estimated period of amortization of these new prior service credits is nine 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 benefits plans with their retirement benefits plans’ liabilities:
In Millions
DB Pension PlansDB SERPOPEB Plan
Years Ended December 31202020192020201920202019
CMS Energy, including Consumers
Benefit obligation at beginning of period$2,973 $2,512 $150 $140 $1,165 $1,045 
Service cost50 41 — — 16 14 
Interest cost79 98 33 41 
Plan amendments24 — — — — — 
Actuarial loss355 
1
476 
1
16 15 39 
1
110 
1
Benefits paid(215)(154)(10)(10)(48)(45)
Benefit obligation at end of period$3,266 $2,973 $160 $150 $1,205 $1,165 
Plan assets at fair value at beginning of period$2,546 $2,247 $— $— $1,509 $1,280 
Actual return on plan assets371 453 — — 182 273 
Company contribution700 — 10 10 — 
Actual benefits paid(215)(154)(10)(10)(47)(44)
Plan assets at fair value at end of period$3,402 $2,546 $— $— $1,645 $1,509 
Funded status$136 
2
$(427)
2
$(160)$(150)$440 $344 
Consumers
Benefit obligation at beginning of period$109 $101 $1,120 $1,004 
Service cost— — 15 13 
Interest cost31 40 
Actuarial loss12 11 37 
1
106 
1
Benefits paid(7)(7)(45)(43)
Benefit obligation at end of period$117 $109 $1,158 $1,120 
Plan assets at fair value at beginning of period$— $— $1,410 $1,197 
Actual return on plan assets— — 169 255 
Company contribution— 
Actual benefits paid(7)(7)(45)(42)
Plan assets at fair value at end of period$— $— $1,535 $1,410 
Funded status$(117)$(109)$377 $290 
1The actuarial loss for 2020 and 2019 for the DB Pension Plans was primarily the result of lower discount rates and lower interest rates used to calculate the value of lump-sum payments. The actuarial loss for 2020 and 2019 for the OPEB Plan was primarily the result of lower discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $138 million at December 31, 2020 and $(408) million at December 31, 2019.
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120202019
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$136 $104 
OPEB Plan440 344 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB Pension Plans— 531 
DB SERP150 140 
Consumers
Non-current assets
DB Pension Plans$138 $109 
OPEB Plan377 290 
Current liabilities
DB SERP
Non-current liabilities
DB Pension Plans— 517 
DB SERP110 102 
The ABO for the DB Pension Plans was $2.9 billion at December 31, 2020 and $2.6 billion at December 31, 2019. At December 31, 2019, the PBO and ABO for one of the defined benefit pension plans exceeded plan assets; presented in the following table is information related to that plan:
In Millions
December 312019
CMS Energy, including Consumers
PBO$1,736 
ABO1,398 
Fair value of plan assets1,205 
Items Not Yet Recognized as a Component of Net Periodic Benefit Cost: Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets, see Note 3, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312020201920202019
CMS Energy, including Consumers
Regulatory assets
Net loss$1,194 $1,114 $254 $308 
Prior service cost (credit)29 (246)(300)
Regulatory assets$1,223 $1,122 $$
AOCI
Net loss (gain)120 105 (10)(6)
Prior service cost (credit)— (6)(8)
Total amounts recognized in regulatory assets and AOCI$1,344 $1,227 $(8)$(6)
Consumers
Regulatory assets
Net loss$1,194 $1,114 $254 $308 
Prior service cost (credit)29 (246)(300)
Regulatory assets$1,223 $1,122 $$
AOCI
Net loss47 36 — — 
Total amounts recognized in regulatory assets and AOCI$1,270 $1,158 $$
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 6, Fair Value Measurements.
In Millions
DB Pension Plans
December 31, 2020December 31, 2019
TotalLevel 1Level 2TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$115 $115 $— $44 $44 $— 
U.S. government and agencies securities150 — 150 66 — 66 
Corporate debt540 — 540 493 — 493 
State and municipal bonds11 — 11 17 — 17 
Foreign corporate bonds41 — 41 33 — 33 
Mutual funds971 971 — 640 640 — 
$1,828 $1,086 $742 $1,293 $684 $609 
Pooled funds1,574 1,253 
Total$3,402 $2,546 
In Millions
OPEB Plan
December 31, 2020December 31, 2019
TotalLevel 1Level 2TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$33 $33 $— $$$— 
U.S. government and agencies securities18 — 18 10 — 10 
Corporate debt64 — 64 71 — 71 
State and municipal bonds— — 
Foreign corporate bonds— — 
Common stocks66 66 — 55 55 — 
Mutual funds807 807 — 713 713 — 
$995 $906 $89 $865 $777 $88 
Pooled funds650 644 
Total$1,645 $1,509 
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, 2020:
DB Pension PlansOPEB Plan
Equity securities55.0 %50.0 %
Fixed-income securities34.0 30.0 
Multi-asset investments11.0 20.0 
100.0 %100.0 %
CMS Energy’s target 2020 asset allocation for the assets of the DB Pension Plans was 53 percent equity, 35 percent fixed income, and 12 percent multi-asset investments. The goal of this target asset allocation 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 plan. 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. Multi-assets are diversified across absolute return investment approaches and global tactical asset allocation, such as inflation protected securities, real estate investment trusts, commodities, currency, and preferred stock. CMS Energy uses annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocation.
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 2020 asset allocation for the health trusts was 50 percent equity, 30 percent fixed income, and 20 percent multi-asset investments. CMS Energy’s target asset allocation for the life trusts was 42 percent equity, 28 percent fixed income, and 30 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 SmallCap Index and Foreign Equity Funds. Fixed-income investments are diversified across investment grade instruments of government and corporate issuers. Multi-assets are diversified across absolute return investment approaches and global tactical asset allocation, such as inflation protected securities, real estate investment trusts, commodities, currency and preferred stock. CMS Energy uses annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocation.
Contributions: Presented in the following table are the contributions to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan:
In Millions
Years Ended December 3120202019
CMS Energy, including Consumers
DB Pension Plans$700 $— 
OPEB Plan— 
Consumers
DB Pension Plans$682 $— 
OPEB Plan— 
Contributions comprise required amounts and discretionary contributions. Neither CMS Energy nor Consumers plans to contribute to the DB Pension Plans or OPEB Plan in 2021. Actual future
contributions will depend on future investment performance, discount rates, and various factors related to the participants of the DB Pension Plans and OPEB Plan. CMS Energy and Consumers will, at a minimum, contribute to the plans as needed to comply with federal funding requirements.
Benefit Payments: Presented in the following table are the expected benefit payments for each of the next five years and the five-year period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2021$191 $10 $52 
2022188 10 54 
2023184 10 56 
2024182 10 57 
2025182 10 58 
2026-2030890 46 299 
Consumers
2021$181 $$50 
2022178 52 
2023175 53 
2024173 55 
2025172 56 
2026-2030845 32 286 
Collective Bargaining Agreements: At December 31, 2020, unions represented 41 percent of CMS Energy’s employees and 44 percent of Consumers’ employees. The UWUA represents Consumers’ operating, maintenance, construction, and customer contact center employees. The USW represents Zeeland plant employees. The UWUA and USW agreements expired and new agreements were ratified in 2020. These union contracts expire in 2025.
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement Benefits
Benefit Plans: CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. These plans include:
non‑contributory, qualified DB Pension Plans (closed to new non‑union participants as of July 1, 2003 and closed to new union participants as of September 1, 2005)
a non‑contributory, qualified DCCP for employees hired on or after July 1, 2003
benefits to certain management employees under a non‑contributory, nonqualified DB SERP (closed to new participants as of March 31, 2006)
a non‑contributory, nonqualified DC SERP for certain management employees hired or promoted on or after April 1, 2006
a contributory, qualified defined contribution 401(k) plan
health care and life insurance benefits under an OPEB Plan
DB Pension Plans: Participants in the pension plans include present and former employees of CMS Energy and Consumers, including certain present and former affiliates and subsidiaries. Pension plan trust assets are not distinguishable by company. Effective December 31, 2017, CMS Energy’s and Consumers’ then-existing pension plan was amended to include only retired and former employees already covered; this amended plan is referred to as DB Pension Plan B. Also effective December 31, 2017, active employees were moved to a newly created pension plan, referred to as DB Pension Plan A, whose benefits mirror those provided under DB Pension Plan B. Maintaining separate plans for the two groups allows CMS Energy and Consumers to employ a more targeted investment strategy and provides additional opportunities to mitigate risk and volatility.
In September 2020, CMS Energy and Consumers determined it was probable that 2020 lump-sum payments to retired employees under DB Pension Plan A would exceed the plan’s service cost and interest cost components of net periodic cost for the year. These lump-sum payments constitute pension plan liability settlements; once such settlements meet the service and interest cost threshold, recognition in earnings is required. As a result, in accordance with GAAP, CMS Energy, including Consumers, performed a remeasurement of DB Pension Plan A as of August 31, 2020 and recognized a settlement loss of $36 million; $35 million of this amount was recognized by Consumers and deferred as a regulatory asset. At December 31, 2020, CMS Energy, including Consumers, recognized an additional settlement loss of $10 million for the period September 1, 2020 to December 31, 2020; $10 million of this amount was recognized by Consumers and deferred as a regulatory asset. CMS Energy and Consumers will amortize the regulatory asset over nine 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 seven percent of base pay, depending on years of service. Employees are not required to contribute in order to receive the plan’s employer contribution. DCCP expense for CMS Energy, including Consumers, was $33 million for the year ended December 31, 2020, $30 million for the year ended December 31, 2019, and $26 million for the year ended December 31, 2018. DCCP expense for Consumers was $31 million for the year ended December 31, 2020, $28 million for the year ended December 31, 2019, and $25 million for the year ended December 31, 2018.
DB SERP: The DB SERP is a nonqualified plan as defined by the Internal Revenue Code. DB SERP benefits are paid from a rabbi trust established in 1988. The trust assets are not considered plan assets under ASC 715. DB SERP rabbi trust earnings are taxable. Presented in the following table are the fair values of trust assets, ABO, and contributions for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120202019
CMS Energy, including Consumers
Trust assets$146 $143 
ABO159 149 
Contributions— 
Consumers
Trust assets$107 $104 
ABO115 107 
Contributions— 
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 $11 million at December 31, 2020 and $8 million at December 31, 2019. DC SERP assets are included in other non‑current assets on CMS Energy’s and Consumers’ consolidated balance sheets. CMS Energy’s and Consumers’ DC SERP expense was $2 million for the years ended December 31, 2020 and 2019, and $1 million for the year ended December 31, 2018.
401(k) Plan: The 401(k) plan employer match equals 100 percent of eligible contributions up to the first three percent of an employee’s wages and 50 percent of eligible contributions up to the next two percent of an employee’s wages. The total 401(k) plan cost for CMS Energy, including Consumers, was $30 million for the year ended December 31, 2020, $28 million for the year ended December 31, 2019, and $27 million for the year ended December 31, 2018. The total 401(k) plan cost for Consumers was $29 million for the year ended December 31, 2020, $27 million for the year ended December 31, 2019, and $26 million for the year ended December 31, 2018.
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 2021 and 6.75 percent in 2020 for those under 65 and would increase 7.00 percent in 2021 and 7.25 percent in 2020 for those over 65. The rate of increase was assumed to decline to 4.75 percent by 2027 and thereafter for all retirees.
Assumptions: Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefits plans to determine benefit obligations and net periodic benefit cost:
December 31202020192018
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A2.73 %3.37 %4.48 %
DB Pension Plan B2.41 3.17 4.32 
DB SERP2.40 3.15 4.32 
OPEB Plan2.69 3.32 4.42 
Rate of compensation increase
DB Pension Plan A3.70 3.50 3.50 
DB SERP5.50 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A3.44 %4.55 %3.85 %
DB SERP3.46 4.58 3.83 
OPEB Plan3.57 4.63 3.93 
Interest cost discount rate2,3
DB Pension Plan A2.92 4.08 3.39 
DB Pension Plan B2.74 3.93 3.24 
DB SERP2.74 3.94 3.26 
OPEB Plan2.88 4.03 3.35 
Expected long-term rate of return on plan assets4
DB Pension Plans6.75 7.00 7.00 
OPEB Plan6.75 7.00 7.00 
Rate of compensation increase
DB Pension Plan A3.50 3.50 3.50 
DB SERP5.50 5.50 5.50 
1The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table for 2020 and 2019 and the RP-2014 Mortality Table for 2018, with improvement scales MP-2020 for 2020, MP-2019 for 2019, and MP-2018 for 2018. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table for 2020 and the RP-2014 Mortality Table for 2019 and 2018, with improvement scales MP-2019 for 2020, MP-2018 for 2019, and MP-2017 for 2018.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
4CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the
expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 6.75 percent in 2020. The actual return (loss) on the assets of the DB Pension Plans was 13.6 percent in 2020, 21.0 percent in 2019, and (6.7) percent in 2018.
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 benefits plans:
In Millions
DB Pension Plans and DB SERPOPEB Plan
Years Ended December 31202020192018202020192018
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$50 $41 $48 $16 $14 $17 
Interest cost83 103 95 33 41 34 
Settlement loss— — — — — 
Expected return on plan assets(191)(162)(149)(100)(88)(97)
Amortization of:
Net loss95 50 76 15 26 15 
Prior service cost (credit)(56)(62)(67)
Settlement loss— — — — — 
Net periodic cost (credit)$41 $33 $73 $(92)$(69)$(98)
Consumers
Net periodic cost (credit)
Service cost$49 $40 $47 $15 $13 $16 
Interest cost78 97 88 31 40 33 
Expected return on plan assets(181)(153)(139)(93)(82)(91)
Amortization of:
Net loss90 47 73 15 26 16 
Prior service cost (credit)(54)(61)(65)
Settlement loss— — — — — 
Net periodic cost (credit)$39 $32 $72 $(86)$(64)$(91)
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 year ended December 31, 2020, and nine years for the years ended December 31, 2019 and 2018. For DB Pension Plan B, the estimated period of amortization of gains and losses was 19 years for the year ended December 31, 2020, and 20 years for the years ended December 31, 2019 and 2018. For the OPEB Plan, the estimated amortization period was nine years for the year ended December 31, 2020, and ten years for the years ended December 31, 2019 and 2018.
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 had new prior service credits for OPEB in 2018. The estimated period of amortization of these new prior service credits is nine 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 benefits plans with their retirement benefits plans’ liabilities:
In Millions
DB Pension PlansDB SERPOPEB Plan
Years Ended December 31202020192020201920202019
CMS Energy, including Consumers
Benefit obligation at beginning of period$2,973 $2,512 $150 $140 $1,165 $1,045 
Service cost50 41 — — 16 14 
Interest cost79 98 33 41 
Plan amendments24 — — — — — 
Actuarial loss355 
1
476 
1
16 15 39 
1
110 
1
Benefits paid(215)(154)(10)(10)(48)(45)
Benefit obligation at end of period$3,266 $2,973 $160 $150 $1,205 $1,165 
Plan assets at fair value at beginning of period$2,546 $2,247 $— $— $1,509 $1,280 
Actual return on plan assets371 453 — — 182 273 
Company contribution700 — 10 10 — 
Actual benefits paid(215)(154)(10)(10)(47)(44)
Plan assets at fair value at end of period$3,402 $2,546 $— $— $1,645 $1,509 
Funded status$136 
2
$(427)
2
$(160)$(150)$440 $344 
Consumers
Benefit obligation at beginning of period$109 $101 $1,120 $1,004 
Service cost— — 15 13 
Interest cost31 40 
Actuarial loss12 11 37 
1
106 
1
Benefits paid(7)(7)(45)(43)
Benefit obligation at end of period$117 $109 $1,158 $1,120 
Plan assets at fair value at beginning of period$— $— $1,410 $1,197 
Actual return on plan assets— — 169 255 
Company contribution— 
Actual benefits paid(7)(7)(45)(42)
Plan assets at fair value at end of period$— $— $1,535 $1,410 
Funded status$(117)$(109)$377 $290 
1The actuarial loss for 2020 and 2019 for the DB Pension Plans was primarily the result of lower discount rates and lower interest rates used to calculate the value of lump-sum payments. The actuarial loss for 2020 and 2019 for the OPEB Plan was primarily the result of lower discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $138 million at December 31, 2020 and $(408) million at December 31, 2019.
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities:
In Millions
December 3120202019
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$136 $104 
OPEB Plan440 344 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB Pension Plans— 531 
DB SERP150 140 
Consumers
Non-current assets
DB Pension Plans$138 $109 
OPEB Plan377 290 
Current liabilities
DB SERP
Non-current liabilities
DB Pension Plans— 517 
DB SERP110 102 
The ABO for the DB Pension Plans was $2.9 billion at December 31, 2020 and $2.6 billion at December 31, 2019. At December 31, 2019, the PBO and ABO for one of the defined benefit pension plans exceeded plan assets; presented in the following table is information related to that plan:
In Millions
December 312019
CMS Energy, including Consumers
PBO$1,736 
ABO1,398 
Fair value of plan assets1,205 
Items Not Yet Recognized as a Component of Net Periodic Benefit Cost: Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets, see Note 3, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312020201920202019
CMS Energy, including Consumers
Regulatory assets
Net loss$1,194 $1,114 $254 $308 
Prior service cost (credit)29 (246)(300)
Regulatory assets$1,223 $1,122 $$
AOCI
Net loss (gain)120 105 (10)(6)
Prior service cost (credit)— (6)(8)
Total amounts recognized in regulatory assets and AOCI$1,344 $1,227 $(8)$(6)
Consumers
Regulatory assets
Net loss$1,194 $1,114 $254 $308 
Prior service cost (credit)29 (246)(300)
Regulatory assets$1,223 $1,122 $$
AOCI
Net loss47 36 — — 
Total amounts recognized in regulatory assets and AOCI$1,270 $1,158 $$
Plan Assets: Presented in the following tables are the fair values of the assets of CMS Energy’s DB Pension Plans and OPEB Plan, by asset category and by level within the fair value hierarchy. For additional details regarding the fair value hierarchy, see Note 6, Fair Value Measurements.
In Millions
DB Pension Plans
December 31, 2020December 31, 2019
TotalLevel 1Level 2TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$115 $115 $— $44 $44 $— 
U.S. government and agencies securities150 — 150 66 — 66 
Corporate debt540 — 540 493 — 493 
State and municipal bonds11 — 11 17 — 17 
Foreign corporate bonds41 — 41 33 — 33 
Mutual funds971 971 — 640 640 — 
$1,828 $1,086 $742 $1,293 $684 $609 
Pooled funds1,574 1,253 
Total$3,402 $2,546 
In Millions
OPEB Plan
December 31, 2020December 31, 2019
TotalLevel 1Level 2TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$33 $33 $— $$$— 
U.S. government and agencies securities18 — 18 10 — 10 
Corporate debt64 — 64 71 — 71 
State and municipal bonds— — 
Foreign corporate bonds— — 
Common stocks66 66 — 55 55 — 
Mutual funds807 807 — 713 713 — 
$995 $906 $89 $865 $777 $88 
Pooled funds650 644 
Total$1,645 $1,509 
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, 2020:
DB Pension PlansOPEB Plan
Equity securities55.0 %50.0 %
Fixed-income securities34.0 30.0 
Multi-asset investments11.0 20.0 
100.0 %100.0 %
CMS Energy’s target 2020 asset allocation for the assets of the DB Pension Plans was 53 percent equity, 35 percent fixed income, and 12 percent multi-asset investments. The goal of this target asset allocation 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 plan. 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. Multi-assets are diversified across absolute return investment approaches and global tactical asset allocation, such as inflation protected securities, real estate investment trusts, commodities, currency, and preferred stock. CMS Energy uses annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocation.
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 2020 asset allocation for the health trusts was 50 percent equity, 30 percent fixed income, and 20 percent multi-asset investments. CMS Energy’s target asset allocation for the life trusts was 42 percent equity, 28 percent fixed income, and 30 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 SmallCap Index and Foreign Equity Funds. Fixed-income investments are diversified across investment grade instruments of government and corporate issuers. Multi-assets are diversified across absolute return investment approaches and global tactical asset allocation, such as inflation protected securities, real estate investment trusts, commodities, currency and preferred stock. CMS Energy uses annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocation.
Contributions: Presented in the following table are the contributions to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan:
In Millions
Years Ended December 3120202019
CMS Energy, including Consumers
DB Pension Plans$700 $— 
OPEB Plan— 
Consumers
DB Pension Plans$682 $— 
OPEB Plan— 
Contributions comprise required amounts and discretionary contributions. Neither CMS Energy nor Consumers plans to contribute to the DB Pension Plans or OPEB Plan in 2021. Actual future
contributions will depend on future investment performance, discount rates, and various factors related to the participants of the DB Pension Plans and OPEB Plan. CMS Energy and Consumers will, at a minimum, contribute to the plans as needed to comply with federal funding requirements.
Benefit Payments: Presented in the following table are the expected benefit payments for each of the next five years and the five-year period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2021$191 $10 $52 
2022188 10 54 
2023184 10 56 
2024182 10 57 
2025182 10 58 
2026-2030890 46 299 
Consumers
2021$181 $$50 
2022178 52 
2023175 53 
2024173 55 
2025172 56 
2026-2030845 32 286 
Collective Bargaining Agreements: At December 31, 2020, unions represented 41 percent of CMS Energy’s employees and 44 percent of Consumers’ employees. The UWUA represents Consumers’ operating, maintenance, construction, and customer contact center employees. The USW represents Zeeland plant employees. The UWUA and USW agreements expired and new agreements were ratified in 2020. These union contracts expire in 2025.
v3.20.4
Stock-Based Compensation
12 Months Ended
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Stock-Based Compensation Stock-Based Compensation
CMS Energy and Consumers provide a PISP to officers, employees, and non‑employee directors based on their contributions to the successful management of the company. The PISP has a ten-year term, expiring in May 2030.
In 2020, 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 2020, 2019, or 2018.
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 6,477,579 shares of common stock under the PISP as of December 31, 2020. Shares for which payment or exercise is in cash, as well as shares that expire, terminate, or are canceled or forfeited, may be awarded or granted again under the PISP.
All awards under the PISP vest fully upon death. Upon a change of control of CMS Energy or termination under an officer separation agreement, the awards will vest in accordance with specific officer
agreements. If stated in the award, for restricted stock recipients who terminate employment due to retirement or disability, a pro-rata portion of the award will vest upon termination, with any market-based award also contingent upon the outcome of the market condition and any performance-based award contingent upon the outcome of the performance condition. The pro-rata portion is equal to the portion of the service period served between the award grant date and the employee’s termination date. The remaining portion of the awards will be forfeited. All awards for directors vest fully upon retirement. Restricted shares may be forfeited if employment terminates for any other reason or if the minimum service requirements are not met, as described in the award document.
Restricted Stock Awards: Restricted stock awards for employees under the PISP are in the form of performance-based, market-based, and time-lapse restricted stock. Award recipients receive shares of CMS Energy common stock that have dividend and voting rights. The dividends on time-lapse restricted stock are paid in cash or in CMS Energy common stock. The dividends on performance-based and market-based restricted stock are paid in restricted shares equal to the value of the dividends. These additional restricted shares are subject to the same vesting conditions as the underlying restricted stock shares.
Performance-based restricted stock vesting is contingent on meeting at least a 36-month service requirement and a performance condition. The performance condition is based on an adjusted measure of CMS Energy’s EPS growth relative to a peer group over a three-year period. The awards granted in 2020, 2019, and 2018 require a 38-month service period. Market-based restricted stock vesting is generally contingent on meeting a three-year service requirement and a market condition. The market condition is based on a comparison of CMS Energy’s total shareholder return with the median total shareholder return of a peer group over the same three-year period. Depending on the outcome of the performance condition or the market condition, a recipient may earn a total award ranging from zero to 200 percent of the initial grant. Time-lapse restricted stock generally vests after a service period of three years.
Restricted Stock Units: In 2020, 2019, and 2018, 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 2020.
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, 2020Number of
Shares
Weighted-Average
Grant Date Fair Value
per Share
Number of
Shares
Weighted-Average
Grant Date Fair Value
per Share
Nonvested at beginning of period1,186,962 $44.56 1,138,182 $44.57 
Granted
Restricted stock512,326 45.56 490,346 45.53 
Restricted stock units15,074 49.76 14,409 49.70 
Vested
Restricted stock(551,897)30.98 (532,833)31.04 
Restricted stock units(15,234)49.24 (14,517)49.50 
Forfeited – restricted stock(329,874)51.22 (314,056)51.22 
Nonvested at end of period817,357 $51.68 781,531 $51.73 
Year Ended December 31, 2020CMS Energy, including
Consumers
Consumers
Granted
Time-lapse awards106,520 101,439 
Market-based awards123,246 118,011 
Performance-based awards123,246 118,011 
Restricted stock units13,405 12,800 
Dividends on market-based awards17,937 17,152 
Dividends on performance-based awards17,505 16,736 
Dividends on restricted stock units1,669 1,609 
Additional market-based shares based on achievement of condition71,678 68,857 
Additional performance-based shares based on achievement of condition52,194 50,140 
Total granted527,400 504,755 
CMS Energy and Consumers charge the fair value of the restricted stock awards to expense over the required service period and charge the fair value of the restricted stock units to expense immediately. For performance-based awards, CMS Energy and Consumers estimate the number of shares expected to vest at the end of the performance period based on the probable achievement of the performance objective. Performance-based and market-based restricted stock awards have graded vesting features for retirement-eligible employees, and CMS Energy and Consumers recognize expense for those awards on a graded vesting schedule over the required service period. Expense for performance-based and market-based restricted stock awards for non‑retirement-eligible employees and time-lapse awards is recognized on a straight-line basis over the required service period.
The fair value of performance-based and time-lapse restricted stock and restricted stock units is based on the price of CMS Energy’s common stock on the grant date. The fair value of market-based restricted stock awards is calculated on the grant date using a Monte Carlo simulation. CMS Energy and Consumers base expected volatilities on the historical volatility of the price of CMS Energy common stock. The risk-free rate for valuation of the market-based restricted stock awards was based on the three-year U.S. Treasury yield at the award grant date.
Presented in the following table are the most significant assumptions used to estimate the fair value of the market-based restricted stock awards:
Years Ended December 31202020192018
Expected volatility14.2 %14.9 %16.7 %
Expected dividend yield2.4 2.8 2.8 
Risk-free rate1.6 2.5 2.1 
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$45.56 $43.57 $26.49 
Restricted stock units granted49.76 50.35 41.77 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$45.53 $43.57 $26.51 
Restricted stock units granted49.70 51.15 42.01 
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Fair value of shares that vested during the year$22 $26 $27 
Compensation expense recognized11 22 17 
Income tax benefit recognized
Consumers
Fair value of shares that vested during the year$21 $25 $26 
Compensation expense recognized10 21 16 
Income tax benefit recognized
At December 31, 2020, $18.5 million of total unrecognized compensation cost was related to restricted stock for CMS Energy, including Consumers, and $17.7 million of total unrecognized compensation cost was related to restricted stock for Consumers. CMS Energy and Consumers expect to recognize this cost over a weighted-average period of two years.
Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Stock-Based Compensation Stock-Based Compensation
CMS Energy and Consumers provide a PISP to officers, employees, and non‑employee directors based on their contributions to the successful management of the company. The PISP has a ten-year term, expiring in May 2030.
In 2020, 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 2020, 2019, or 2018.
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 6,477,579 shares of common stock under the PISP as of December 31, 2020. Shares for which payment or exercise is in cash, as well as shares that expire, terminate, or are canceled or forfeited, may be awarded or granted again under the PISP.
All awards under the PISP vest fully upon death. Upon a change of control of CMS Energy or termination under an officer separation agreement, the awards will vest in accordance with specific officer
agreements. If stated in the award, for restricted stock recipients who terminate employment due to retirement or disability, a pro-rata portion of the award will vest upon termination, with any market-based award also contingent upon the outcome of the market condition and any performance-based award contingent upon the outcome of the performance condition. The pro-rata portion is equal to the portion of the service period served between the award grant date and the employee’s termination date. The remaining portion of the awards will be forfeited. All awards for directors vest fully upon retirement. Restricted shares may be forfeited if employment terminates for any other reason or if the minimum service requirements are not met, as described in the award document.
Restricted Stock Awards: Restricted stock awards for employees under the PISP are in the form of performance-based, market-based, and time-lapse restricted stock. Award recipients receive shares of CMS Energy common stock that have dividend and voting rights. The dividends on time-lapse restricted stock are paid in cash or in CMS Energy common stock. The dividends on performance-based and market-based restricted stock are paid in restricted shares equal to the value of the dividends. These additional restricted shares are subject to the same vesting conditions as the underlying restricted stock shares.
Performance-based restricted stock vesting is contingent on meeting at least a 36-month service requirement and a performance condition. The performance condition is based on an adjusted measure of CMS Energy’s EPS growth relative to a peer group over a three-year period. The awards granted in 2020, 2019, and 2018 require a 38-month service period. Market-based restricted stock vesting is generally contingent on meeting a three-year service requirement and a market condition. The market condition is based on a comparison of CMS Energy’s total shareholder return with the median total shareholder return of a peer group over the same three-year period. Depending on the outcome of the performance condition or the market condition, a recipient may earn a total award ranging from zero to 200 percent of the initial grant. Time-lapse restricted stock generally vests after a service period of three years.
Restricted Stock Units: In 2020, 2019, and 2018, 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 2020.
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, 2020Number of
Shares
Weighted-Average
Grant Date Fair Value
per Share
Number of
Shares
Weighted-Average
Grant Date Fair Value
per Share
Nonvested at beginning of period1,186,962 $44.56 1,138,182 $44.57 
Granted
Restricted stock512,326 45.56 490,346 45.53 
Restricted stock units15,074 49.76 14,409 49.70 
Vested
Restricted stock(551,897)30.98 (532,833)31.04 
Restricted stock units(15,234)49.24 (14,517)49.50 
Forfeited – restricted stock(329,874)51.22 (314,056)51.22 
Nonvested at end of period817,357 $51.68 781,531 $51.73 
Year Ended December 31, 2020CMS Energy, including
Consumers
Consumers
Granted
Time-lapse awards106,520 101,439 
Market-based awards123,246 118,011 
Performance-based awards123,246 118,011 
Restricted stock units13,405 12,800 
Dividends on market-based awards17,937 17,152 
Dividends on performance-based awards17,505 16,736 
Dividends on restricted stock units1,669 1,609 
Additional market-based shares based on achievement of condition71,678 68,857 
Additional performance-based shares based on achievement of condition52,194 50,140 
Total granted527,400 504,755 
CMS Energy and Consumers charge the fair value of the restricted stock awards to expense over the required service period and charge the fair value of the restricted stock units to expense immediately. For performance-based awards, CMS Energy and Consumers estimate the number of shares expected to vest at the end of the performance period based on the probable achievement of the performance objective. Performance-based and market-based restricted stock awards have graded vesting features for retirement-eligible employees, and CMS Energy and Consumers recognize expense for those awards on a graded vesting schedule over the required service period. Expense for performance-based and market-based restricted stock awards for non‑retirement-eligible employees and time-lapse awards is recognized on a straight-line basis over the required service period.
The fair value of performance-based and time-lapse restricted stock and restricted stock units is based on the price of CMS Energy’s common stock on the grant date. The fair value of market-based restricted stock awards is calculated on the grant date using a Monte Carlo simulation. CMS Energy and Consumers base expected volatilities on the historical volatility of the price of CMS Energy common stock. The risk-free rate for valuation of the market-based restricted stock awards was based on the three-year U.S. Treasury yield at the award grant date.
Presented in the following table are the most significant assumptions used to estimate the fair value of the market-based restricted stock awards:
Years Ended December 31202020192018
Expected volatility14.2 %14.9 %16.7 %
Expected dividend yield2.4 2.8 2.8 
Risk-free rate1.6 2.5 2.1 
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$45.56 $43.57 $26.49 
Restricted stock units granted49.76 50.35 41.77 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$45.53 $43.57 $26.51 
Restricted stock units granted49.70 51.15 42.01 
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Fair value of shares that vested during the year$22 $26 $27 
Compensation expense recognized11 22 17 
Income tax benefit recognized
Consumers
Fair value of shares that vested during the year$21 $25 $26 
Compensation expense recognized10 21 16 
Income tax benefit recognized
At December 31, 2020, $18.5 million of total unrecognized compensation cost was related to restricted stock for CMS Energy, including Consumers, and $17.7 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.
v3.20.4
Income Taxes
12 Months Ended
Dec. 31, 2020
Income Taxes [Line Items]  
Income Taxes Income Taxes
CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement.
Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate:
In Millions, Except Tax Rate
Years Ended December 31202020192018
CMS Energy, including Consumers
Income from continuing operations before income taxes$885 $829 $774 
Income tax expense at statutory rate186 174 163 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect46 48 46 
TCJA excess deferred taxes1
(35)(31)(26)
Production tax credits(28)(20)(14)
Accelerated flow-through of regulatory tax benefits2
(13)(13)(39)
Research and development tax credits, net3
(11)(2)(11)
Refund of alternative minimum tax sequestration4
(9)— — 
Other, net(3)(9)(4)
Income tax expense$133 $147 $115 
Effective tax rate15.0 %17.7 %14.9 %
Consumers
Income from continuing operations before income taxes$989 $928 $847 
Income tax expense at statutory rate208 195 178 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
47 53 51 
TCJA excess deferred taxes1
(35)(31)(26)
Accelerated flow-through of regulatory tax benefits2
(13)(13)(39)
Production tax credits(19)(12)(12)
Research and development tax credits, net3
(11)(2)(11)
Other, net(4)(5)
Income tax expense$173 $185 $142 
Effective tax rate17.5 %19.9 %16.8 %
1In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a net $1.6 billion regulatory liability. As a result of an order received in September 2019, Consumers began refunding these excess deferred taxes to customers. In September 2020, the MPSC approved a settlement agreement in Consumers’ 2019 gas rate case including Consumers’ request to accelerate the amortization of its regulatory liability associated with the unprotected, nonproperty-related excess deferred income taxes resulting from the TCJA. Consumers will increase its TCJA amortization to fully refund this regulatory liability during the period October 2021 through September 2022 instead of the previous amortization schedule through 2029.
2In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow-through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed
in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018 and the gas portion expected to continue through 2025. In September 2020, the MPSC approved a settlement agreement in Consumers’ 2019 gas rate case including Consumers’ request to accelerate the amortization of this income tax benefit to fully amortize the balance during the period October 2021 through September 2022 instead of the previous amortization schedule through 2025.
3In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers. Also, in March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, CMS Energy and Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions, at that time.
4In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Current income taxes
Federal$(35)$(31)$(67)
State and local(2)28 — 
$(37)$(3)$(67)
Deferred income taxes
Federal115 97 112 
State and local60 32 58 
$175 $129 $170 
Deferred income tax credit(5)21 12 
Tax expense$133 $147 $115 
Consumers
Current income taxes
Federal$$107 $
State and local(7)41 13 
$(4)$148 $19 
Deferred income taxes
Federal115 (10)60 
State and local67 26 51 
$182 $16 $111 
Deferred income tax credit(5)21 12 
Tax expense$173 $185 $142 
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120202019
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$483 $239 
Net regulatory tax liability372 385 
Reserves and accruals62 43 
Total deferred income tax assets$917 $667 
Valuation allowance(1)(2)
Total deferred income tax assets, net of valuation allowance$916 $665 
Deferred income tax liabilities
Plant, property, and equipment$(2,287)$(2,033)
Employee benefits(364)(172)
Securitized costs(53)(59)
Gas inventory(24)(32)
Other(51)(24)
Total deferred income tax liabilities$(2,779)$(2,320)
Total net deferred income tax liabilities$(1,863)$(1,655)
Consumers
Deferred income tax assets
Net regulatory tax liability$372 $385 
Tax loss and credit carryforwards216 20 
Reserves and accruals24 24 
Total deferred income tax assets$612 $429 
Deferred income tax liabilities
Plant, property, and equipment$(2,230)$(1,995)
Employee benefits(365)(178)
Securitized costs(53)(59)
Gas inventory(24)(32)
Other(34)(29)
Total deferred income tax liabilities$(2,706)$(2,293)
Total net deferred income tax liabilities$(2,094)$(1,864)
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, 2020:
In Millions
Gross AmountTax AttributeExpiration
CMS Energy, including Consumers
Federal net operating loss carryforwards$747 $157 None
State net operating loss carryforwards1,241 78 2030
Local net operating loss carryforwards346 2024 – 2040
General business credits245 245 2026 – 2040
Total tax attributes$483 
Consumers
Federal net operating loss carryforwards$505 $106 None
State net operating loss carryforwards1,026 61 2030
General business credits49 49 2027 – 2040
Total tax attributes$216 
CMS Energy has provided a valuation allowance of $1 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.
As a result of a provision in the TCJA, as amended by the CARES Act, CMS Energy recovered all of its remaining alternative minimum tax credits in 2020. CMS Energy utilized $7 million of these credits on its 2019 consolidated tax return, and received the remaining $69 million through a cash refund.
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Balance at beginning of period$23 $19 $14 
Additions for current-year tax positions
Additions for prior-year tax positions
Reductions for prior-year tax positions(2)— — 
Balance at end of period$25 $23 $19 
Consumers
Balance at beginning of period$34 $28 $21 
Additions for current-year tax positions
Additions for prior-year tax positions
Reductions for prior-year tax positions(8)— — 
Balance at end of period$31 $34 $28 
If recognized, all of these uncertain tax benefits would affect CMS Energy’s and Consumers’ annual effective tax rates in future years. A trial is anticipated in 2021 with the Michigan Tax Tribunal related to the methodology of state apportionment for Consumers’ electricity sales to MISO. A favorable outcome
of the court case or a potential settlement could result in a tax benefit of up to $9 million 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 the years ended December 31, 2020, 2019, or 2018.
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 2017 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, 2020 were adequate for all years.
Consumers Energy Company  
Income Taxes [Line Items]  
Income Taxes Income Taxes
CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement.
Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate:
In Millions, Except Tax Rate
Years Ended December 31202020192018
CMS Energy, including Consumers
Income from continuing operations before income taxes$885 $829 $774 
Income tax expense at statutory rate186 174 163 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect46 48 46 
TCJA excess deferred taxes1
(35)(31)(26)
Production tax credits(28)(20)(14)
Accelerated flow-through of regulatory tax benefits2
(13)(13)(39)
Research and development tax credits, net3
(11)(2)(11)
Refund of alternative minimum tax sequestration4
(9)— — 
Other, net(3)(9)(4)
Income tax expense$133 $147 $115 
Effective tax rate15.0 %17.7 %14.9 %
Consumers
Income from continuing operations before income taxes$989 $928 $847 
Income tax expense at statutory rate208 195 178 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
47 53 51 
TCJA excess deferred taxes1
(35)(31)(26)
Accelerated flow-through of regulatory tax benefits2
(13)(13)(39)
Production tax credits(19)(12)(12)
Research and development tax credits, net3
(11)(2)(11)
Other, net(4)(5)
Income tax expense$173 $185 $142 
Effective tax rate17.5 %19.9 %16.8 %
1In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a net $1.6 billion regulatory liability. As a result of an order received in September 2019, Consumers began refunding these excess deferred taxes to customers. In September 2020, the MPSC approved a settlement agreement in Consumers’ 2019 gas rate case including Consumers’ request to accelerate the amortization of its regulatory liability associated with the unprotected, nonproperty-related excess deferred income taxes resulting from the TCJA. Consumers will increase its TCJA amortization to fully refund this regulatory liability during the period October 2021 through September 2022 instead of the previous amortization schedule through 2029.
2In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow-through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed
in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018 and the gas portion expected to continue through 2025. In September 2020, the MPSC approved a settlement agreement in Consumers’ 2019 gas rate case including Consumers’ request to accelerate the amortization of this income tax benefit to fully amortize the balance during the period October 2021 through September 2022 instead of the previous amortization schedule through 2025.
3In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers. Also, in March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, CMS Energy and Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions, at that time.
4In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Current income taxes
Federal$(35)$(31)$(67)
State and local(2)28 — 
$(37)$(3)$(67)
Deferred income taxes
Federal115 97 112 
State and local60 32 58 
$175 $129 $170 
Deferred income tax credit(5)21 12 
Tax expense$133 $147 $115 
Consumers
Current income taxes
Federal$$107 $
State and local(7)41 13 
$(4)$148 $19 
Deferred income taxes
Federal115 (10)60 
State and local67 26 51 
$182 $16 $111 
Deferred income tax credit(5)21 12 
Tax expense$173 $185 $142 
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 3120202019
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$483 $239 
Net regulatory tax liability372 385 
Reserves and accruals62 43 
Total deferred income tax assets$917 $667 
Valuation allowance(1)(2)
Total deferred income tax assets, net of valuation allowance$916 $665 
Deferred income tax liabilities
Plant, property, and equipment$(2,287)$(2,033)
Employee benefits(364)(172)
Securitized costs(53)(59)
Gas inventory(24)(32)
Other(51)(24)
Total deferred income tax liabilities$(2,779)$(2,320)
Total net deferred income tax liabilities$(1,863)$(1,655)
Consumers
Deferred income tax assets
Net regulatory tax liability$372 $385 
Tax loss and credit carryforwards216 20 
Reserves and accruals24 24 
Total deferred income tax assets$612 $429 
Deferred income tax liabilities
Plant, property, and equipment$(2,230)$(1,995)
Employee benefits(365)(178)
Securitized costs(53)(59)
Gas inventory(24)(32)
Other(34)(29)
Total deferred income tax liabilities$(2,706)$(2,293)
Total net deferred income tax liabilities$(2,094)$(1,864)
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, 2020:
In Millions
Gross AmountTax AttributeExpiration
CMS Energy, including Consumers
Federal net operating loss carryforwards$747 $157 None
State net operating loss carryforwards1,241 78 2030
Local net operating loss carryforwards346 2024 – 2040
General business credits245 245 2026 – 2040
Total tax attributes$483 
Consumers
Federal net operating loss carryforwards$505 $106 None
State net operating loss carryforwards1,026 61 2030
General business credits49 49 2027 – 2040
Total tax attributes$216 
CMS Energy has provided a valuation allowance of $1 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.
As a result of a provision in the TCJA, as amended by the CARES Act, CMS Energy recovered all of its remaining alternative minimum tax credits in 2020. CMS Energy utilized $7 million of these credits on its 2019 consolidated tax return, and received the remaining $69 million through a cash refund.
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Balance at beginning of period$23 $19 $14 
Additions for current-year tax positions
Additions for prior-year tax positions
Reductions for prior-year tax positions(2)— — 
Balance at end of period$25 $23 $19 
Consumers
Balance at beginning of period$34 $28 $21 
Additions for current-year tax positions
Additions for prior-year tax positions
Reductions for prior-year tax positions(8)— — 
Balance at end of period$31 $34 $28 
If recognized, all of these uncertain tax benefits would affect CMS Energy’s and Consumers’ annual effective tax rates in future years. A trial is anticipated in 2021 with the Michigan Tax Tribunal related to the methodology of state apportionment for Consumers’ electricity sales to MISO. A favorable outcome
of the court case or a potential settlement could result in a tax benefit of up to $9 million 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 the years ended December 31, 2020, 2019, or 2018.
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 2017 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, 2020 were adequate for all years.
v3.20.4
Earnings Per Share - CMS Energy
12 Months Ended
Dec. 31, 2020
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 net income:
In Millions, Except Per Share Amounts
Years Ended December 31202020192018
Income available to common stockholders
Net income$752 $682 $659 
Less income (loss) attributable to noncontrolling interests(3)
Net income available to common stockholders – basic and diluted$755 $680 $657 
Average common shares outstanding
Weighted-average shares – basic285.0 283.0 282.2 
Add dilutive nonvested stock awards0.7 0.7 0.7 
Add dilutive forward equity sale contracts0.6 0.6 — 
Weighted-average shares – diluted286.3 284.3 282.9 
Net income per average common share available to common stockholders
Basic$2.65 $2.40 $2.33 
Diluted2.64 2.39 2.32 
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 5, Financings and Capitalization.
v3.20.4
Revenue
12 Months Ended
Dec. 31, 2020
Disaggregation of Revenue [Line Items]  
Revenue Revenue
Presented in the following tables are the components of operating revenue:
In Millions
Year Ended December 31, 2020Electric UtilityGas Utility
Enterprises1
EnerBankConsolidated
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 — 262 279 
Consumers alternative-revenue programs29 14 — — 43 
Consumers revenues to be refunded(16)(12)— — (28)
Total operating revenue – CMS Energy$4,372 $1,817 $229 $262 $6,680 
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 the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2019Electric UtilityGas Utility
Enterprises1
EnerBankConsolidated
CMS Energy, including Consumers
Consumers utility revenue$4,407 $1,922 $— $— $6,329 
Other— — 74 — 74 
Revenue recognized from contracts with customers$4,407 $1,922 $74 $— $6,403 
Leasing income— — 174 — 174 
Financing income— 221 235 
Consumers alternative-revenue programs23 10 — — 33 
Total operating revenue – CMS Energy$4,439 $1,937 $248 $221 $6,845 
Consumers
Consumers utility revenue
Residential$1,988 $1,316 $3,304 
Commercial1,502 372 1,874 
Industrial669 51 720 
Other248 183 431 
Revenue recognized from contracts with customers$4,407 $1,922 $6,329 
Financing income14 
Alternative-revenue programs23 10 33 
Total operating revenue – Consumers$4,439 $1,937 $6,376 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2018Electric UtilityGas Utility
Enterprises1
EnerBankConsolidated
CMS Energy, including Consumers
Consumers utility revenue$4,528 $1,882 $— $— $6,410 
Other— — 92 — 92 
Revenue recognized from contracts with customers$4,528 $1,882 $92 $— $6,502 
Leasing income— — 160 — 160 
Financing income10 — 157 172 
Consumers alternative-revenue programs23 16 — — 39 
Total operating revenue – CMS Energy$4,561 $1,903 $252 $157 $6,873 
Consumers
Consumers utility revenue
Residential$2,049 $1,284 $3,333 
Commercial1,545 367 1,912 
Industrial674 55 729 
Other260 176 436 
Revenue recognized from contracts with customers$4,528 $1,882 $6,410 
Financing income10 15 
Alternative-revenue programs23 16 39 
Total operating revenue – Consumers$4,561 $1,903 $6,464 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
CMS Energy and Consumers recorded uncollectible accounts expense of $33 million for the year ended December 31, 2020, and $29 million for the years ended December 31, 2019 and 2018. At December 31, 2020, Consumers had deferred $4 million of uncollectible accounts expense as a non-current regulatory asset. For additional information, see Note 3, Regulatory Matters.
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 $437 million at December 31, 2020 and $426 million at December 31, 2019.
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 3, Regulatory Matters.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Revenues to Be Refunded: In December 2020, the MPSC issued an order authorizing Consumers to refund $28 million voluntarily to utility customers. For additional information, see Note 3, Regulatory Matters.
Consumers Energy Company  
Disaggregation of Revenue [Line Items]  
Revenue Revenue
Presented in the following tables are the components of operating revenue:
In Millions
Year Ended December 31, 2020Electric UtilityGas Utility
Enterprises1
EnerBankConsolidated
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 — 262 279 
Consumers alternative-revenue programs29 14 — — 43 
Consumers revenues to be refunded(16)(12)— — (28)
Total operating revenue – CMS Energy$4,372 $1,817 $229 $262 $6,680 
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 the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2019Electric UtilityGas Utility
Enterprises1
EnerBankConsolidated
CMS Energy, including Consumers
Consumers utility revenue$4,407 $1,922 $— $— $6,329 
Other— — 74 — 74 
Revenue recognized from contracts with customers$4,407 $1,922 $74 $— $6,403 
Leasing income— — 174 — 174 
Financing income— 221 235 
Consumers alternative-revenue programs23 10 — — 33 
Total operating revenue – CMS Energy$4,439 $1,937 $248 $221 $6,845 
Consumers
Consumers utility revenue
Residential$1,988 $1,316 $3,304 
Commercial1,502 372 1,874 
Industrial669 51 720 
Other248 183 431 
Revenue recognized from contracts with customers$4,407 $1,922 $6,329 
Financing income14 
Alternative-revenue programs23 10 33 
Total operating revenue – Consumers$4,439 $1,937 $6,376 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2018Electric UtilityGas Utility
Enterprises1
EnerBankConsolidated
CMS Energy, including Consumers
Consumers utility revenue$4,528 $1,882 $— $— $6,410 
Other— — 92 — 92 
Revenue recognized from contracts with customers$4,528 $1,882 $92 $— $6,502 
Leasing income— — 160 — 160 
Financing income10 — 157 172 
Consumers alternative-revenue programs23 16 — — 39 
Total operating revenue – CMS Energy$4,561 $1,903 $252 $157 $6,873 
Consumers
Consumers utility revenue
Residential$2,049 $1,284 $3,333 
Commercial1,545 367 1,912 
Industrial674 55 729 
Other260 176 436 
Revenue recognized from contracts with customers$4,528 $1,882 $6,410 
Financing income10 15 
Alternative-revenue programs23 16 39 
Total operating revenue – Consumers$4,561 $1,903 $6,464 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
CMS Energy and Consumers recorded uncollectible accounts expense of $33 million for the year ended December 31, 2020, and $29 million for the years ended December 31, 2019 and 2018. At December 31, 2020, Consumers had deferred $4 million of uncollectible accounts expense as a non-current regulatory asset. For additional information, see Note 3, Regulatory Matters.
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 $437 million at December 31, 2020 and $426 million at December 31, 2019.
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 3, Regulatory Matters.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Revenues to Be Refunded: In December 2020, the MPSC issued an order authorizing Consumers to refund $28 million voluntarily to utility customers. For additional information, see Note 3, Regulatory Matters.
v3.20.4
Other Income and Other Expense
12 Months Ended
Dec. 31, 2020
Other Income and Expenses [Line Items]  
Other Income and Other Expense Other Income and Other Expense
Other income was not significant for any of the periods presented. Presented in the following table are the components of other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Other expense
Donations$(35)$(3)$(13)
Civic and political expenditures(5)(6)(6)
Loss on reacquired and extinguished debt(16)— (16)
All other(6)(4)(13)
Total other expense – CMS Energy$(62)$(13)$(48)
Consumers
Other expense
Donations$(33)$(3)$(13)
Civic and political expenditures(5)(6)(6)
All other(5)(4)(11)
Total other expense – Consumers$(43)$(13)$(30)
Consumers Energy Company  
Other Income and Expenses [Line Items]  
Other Income and Other Expense Other Income and Other Expense
Other income was not significant for any of the periods presented. Presented in the following table are the components of other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Other expense
Donations$(35)$(3)$(13)
Civic and political expenditures(5)(6)(6)
Loss on reacquired and extinguished debt(16)— (16)
All other(6)(4)(13)
Total other expense – CMS Energy$(62)$(13)$(48)
Consumers
Other expense
Donations$(33)$(3)$(13)
Civic and political expenditures(5)(6)(6)
All other(5)(4)(11)
Total other expense – Consumers$(43)$(13)$(30)
v3.20.4
Cash And Cash Equivalents
12 Months Ended
Dec. 31, 2020
Cash and Cash Equivalents [Line Items]  
Cash And Cash Equivalents Cash and Cash Equivalents
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets:
In Millions
December 3120202019
CMS Energy, including Consumers
Cash and cash equivalents$168 $140 
Restricted cash and cash equivalents17 17 
Cash and cash equivalents, including restricted amounts$185 $157 
Consumers
Cash and cash equivalents$20 $11 
Restricted cash and cash equivalents15 17 
Cash and cash equivalents, including restricted amounts$35 $28 
Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Consumers Energy Company  
Cash and Cash Equivalents [Line Items]  
Cash And Cash Equivalents Cash and Cash Equivalents
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets:
In Millions
December 3120202019
CMS Energy, including Consumers
Cash and cash equivalents$168 $140 
Restricted cash and cash equivalents17 17 
Cash and cash equivalents, including restricted amounts$185 $157 
Consumers
Cash and cash equivalents$20 $11 
Restricted cash and cash equivalents15 17 
Cash and cash equivalents, including restricted amounts$35 $28 
Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
v3.20.4
Reportable Segments
12 Months Ended
Dec. 31, 2020
Segment Reporting Information [Line Items]  
Reportable Segments Reportable Segments
Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders.
Accounting policies for CMS Energy’s and Consumers’ segments are as described in Note 1, Significant Accounting Policies. The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of the individual segments when appropriate. Accounts are allocated among the segments when common accounts are attributable to more than one segment. The allocations are based on certain measures of business activities, such as revenue, labor dollars, customers, other operating and maintenance expense, construction expense, leased property, taxes, or functional surveys. For example, customer receivables are allocated based on revenue, and pension provisions are allocated based on labor dollars.
Inter-segment sales and transfers are accounted for at current market prices and are eliminated in consolidated net income available to common stockholders by segment.
CMS Energy
The segments reported for CMS Energy are:
electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production
EnerBank, a Utah state-chartered, FDIC-insured industrial bank providing primarily unsecured, fixed-rate installment loans throughout the U.S. to finance home improvements
CMS Energy presents corporate interest and other expenses 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 312020 2019 2018 
CMS Energy, including Consumers
Operating revenue
Electric utility$4,372 $4,439 $4,561 
Gas utility1,817 1,937 1,903 
Enterprises229 248 252 
EnerBank262 221 157 
Total operating revenue – CMS Energy$6,680 $6,845 $6,873 
Consumers
Operating revenue
Electric utility$4,372 $4,439 $4,561 
Gas utility1,817 1,937 1,903 
Total operating revenue – Consumers$6,189 $6,376 $6,464 
CMS Energy, including Consumers
Depreciation and amortization
Electric utility$739 $713 $682 
Gas utility283 261 239 
Enterprises20 14 
EnerBank
Other reconciling items— 
Total depreciation and amortization – CMS Energy$1,048 $992 $933 
Consumers
Depreciation and amortization
Electric utility$739 $713 $682 
Gas utility283 261 239 
Other reconciling items— 
Total depreciation and amortization – Consumers$1,023 $975 $921 
CMS Energy, including Consumers
Income from equity method investees1
Enterprises$$10 $
Total income from equity method investees – CMS Energy$$10 $
CMS Energy, including Consumers
Interest charges
Electric utility$217 $213 $209 
Gas utility102 83 79 
Enterprises
EnerBank56 59 32 
Other reconciling items179 157 136 
Total interest charges – CMS Energy$561 $519 $458 
In Millions
Years Ended December 312020 2019 2018 
Consumers
Interest charges
Electric utility$217 $213 $209 
Gas utility102 83 79 
Other reconciling items
Total interest charges – Consumers$320 $297 $289 
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility$115 $134 $109 
Gas utility58 51 33 
Enterprises(4)
EnerBank17 16 12 
Other reconciling items(53)(56)(41)
Total income tax expense – CMS Energy$133 $147 $115 
Consumers
Income tax expense
Electric utility$115 $134 $109 
Gas utility58 51 33 
Total income tax expense – Consumers$173 $185 $142 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$554 $509 $535 
Gas utility261 233 169 
Enterprises36 33 34 
EnerBank58 49 38 
Other reconciling items(154)(144)(119)
Total net income available to common stockholders – CMS Energy$755 $680 $657 
Consumers
Net income (loss) available to common stockholder
Electric utility$554 $509 $535 
Gas utility261 233 169 
Other reconciling items(1)(1)(1)
Total net income available to common stockholder – Consumers$814 $741 $703 
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2,3
$17,155 $16,158 $16,027 
Gas utility2
9,581 8,785 7,919 
Enterprises1,113 405 412 
EnerBank37 22 25 
Other reconciling items21 20 17 
Total plant, property, and equipment, gross – CMS Energy$27,907 $25,390 $24,400 
In Millions
Years Ended December 312020 2019 2018 
Consumers
Plant, property, and equipment, gross
Electric utility2,3
$17,155 $16,158 $16,027 
Gas utility2
9,581 8,785 7,919 
Other reconciling items21 20 17 
Total plant, property, and equipment, gross – Consumers$26,757 $24,963 $23,963 
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises$70 $71 $69 
Total investments in equity method investees – CMS Energy$70 $71 $69 
CMS Energy, including Consumers
Total assets
Electric utility2
$15,829 $14,911 $14,079 
Gas utility2
9,429 8,659 7,806 
Enterprises1,276 527 540 
EnerBank3,109 2,692 2,006 
Other reconciling items23 48 98 
Total assets – CMS Energy$29,666 $26,837 $24,529 
Consumers
Total assets
Electric utility2
$15,893 $14,973 $14,143 
Gas utility2
9,477 8,706 7,853 
Other reconciling items29 20 29 
Total assets – Consumers$25,399 $23,699 $22,025 
CMS Energy, including Consumers
Capital expenditures4
Electric utility5
$1,281 $1,162 $865 
Gas utility5
885 971 958 
Enterprises108 246 
EnerBank10 
Other reconciling items
Total capital expenditures – CMS Energy$2,280 $2,147 $2,081 
Consumers
Capital expenditures4
Electric utility5
$1,281 $1,162 $865 
Gas utility5
885 971 958 
Other reconciling items
Total capital expenditures – Consumers$2,167 $2,134 $1,825 
1Consumers had no significant equity method investments.
2Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
3Costs related to coal-fueled electric generating units to be retired in 2023 were removed and recorded as a regulatory asset in June 2019. For additional details, see Note 3, Regulatory Matters.
4Amounts include assets placed under finance lease.
5Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
Consumers Energy Company  
Segment Reporting Information [Line Items]  
Reportable Segments Reportable Segments
Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders.
Accounting policies for CMS Energy’s and Consumers’ segments are as described in Note 1, Significant Accounting Policies. The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of the individual segments when appropriate. Accounts are allocated among the segments when common accounts are attributable to more than one segment. The allocations are based on certain measures of business activities, such as revenue, labor dollars, customers, other operating and maintenance expense, construction expense, leased property, taxes, or functional surveys. For example, customer receivables are allocated based on revenue, and pension provisions are allocated based on labor dollars.
Inter-segment sales and transfers are accounted for at current market prices and are eliminated in consolidated net income available to common stockholders by segment.
CMS Energy
The segments reported for CMS Energy are:
electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production
EnerBank, a Utah state-chartered, FDIC-insured industrial bank providing primarily unsecured, fixed-rate installment loans throughout the U.S. to finance home improvements
CMS Energy presents corporate interest and other expenses 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 312020 2019 2018 
CMS Energy, including Consumers
Operating revenue
Electric utility$4,372 $4,439 $4,561 
Gas utility1,817 1,937 1,903 
Enterprises229 248 252 
EnerBank262 221 157 
Total operating revenue – CMS Energy$6,680 $6,845 $6,873 
Consumers
Operating revenue
Electric utility$4,372 $4,439 $4,561 
Gas utility1,817 1,937 1,903 
Total operating revenue – Consumers$6,189 $6,376 $6,464 
CMS Energy, including Consumers
Depreciation and amortization
Electric utility$739 $713 $682 
Gas utility283 261 239 
Enterprises20 14 
EnerBank
Other reconciling items— 
Total depreciation and amortization – CMS Energy$1,048 $992 $933 
Consumers
Depreciation and amortization
Electric utility$739 $713 $682 
Gas utility283 261 239 
Other reconciling items— 
Total depreciation and amortization – Consumers$1,023 $975 $921 
CMS Energy, including Consumers
Income from equity method investees1
Enterprises$$10 $
Total income from equity method investees – CMS Energy$$10 $
CMS Energy, including Consumers
Interest charges
Electric utility$217 $213 $209 
Gas utility102 83 79 
Enterprises
EnerBank56 59 32 
Other reconciling items179 157 136 
Total interest charges – CMS Energy$561 $519 $458 
In Millions
Years Ended December 312020 2019 2018 
Consumers
Interest charges
Electric utility$217 $213 $209 
Gas utility102 83 79 
Other reconciling items
Total interest charges – Consumers$320 $297 $289 
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility$115 $134 $109 
Gas utility58 51 33 
Enterprises(4)
EnerBank17 16 12 
Other reconciling items(53)(56)(41)
Total income tax expense – CMS Energy$133 $147 $115 
Consumers
Income tax expense
Electric utility$115 $134 $109 
Gas utility58 51 33 
Total income tax expense – Consumers$173 $185 $142 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$554 $509 $535 
Gas utility261 233 169 
Enterprises36 33 34 
EnerBank58 49 38 
Other reconciling items(154)(144)(119)
Total net income available to common stockholders – CMS Energy$755 $680 $657 
Consumers
Net income (loss) available to common stockholder
Electric utility$554 $509 $535 
Gas utility261 233 169 
Other reconciling items(1)(1)(1)
Total net income available to common stockholder – Consumers$814 $741 $703 
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2,3
$17,155 $16,158 $16,027 
Gas utility2
9,581 8,785 7,919 
Enterprises1,113 405 412 
EnerBank37 22 25 
Other reconciling items21 20 17 
Total plant, property, and equipment, gross – CMS Energy$27,907 $25,390 $24,400 
In Millions
Years Ended December 312020 2019 2018 
Consumers
Plant, property, and equipment, gross
Electric utility2,3
$17,155 $16,158 $16,027 
Gas utility2
9,581 8,785 7,919 
Other reconciling items21 20 17 
Total plant, property, and equipment, gross – Consumers$26,757 $24,963 $23,963 
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises$70 $71 $69 
Total investments in equity method investees – CMS Energy$70 $71 $69 
CMS Energy, including Consumers
Total assets
Electric utility2
$15,829 $14,911 $14,079 
Gas utility2
9,429 8,659 7,806 
Enterprises1,276 527 540 
EnerBank3,109 2,692 2,006 
Other reconciling items23 48 98 
Total assets – CMS Energy$29,666 $26,837 $24,529 
Consumers
Total assets
Electric utility2
$15,893 $14,973 $14,143 
Gas utility2
9,477 8,706 7,853 
Other reconciling items29 20 29 
Total assets – Consumers$25,399 $23,699 $22,025 
CMS Energy, including Consumers
Capital expenditures4
Electric utility5
$1,281 $1,162 $865 
Gas utility5
885 971 958 
Enterprises108 246 
EnerBank10 
Other reconciling items
Total capital expenditures – CMS Energy$2,280 $2,147 $2,081 
Consumers
Capital expenditures4
Electric utility5
$1,281 $1,162 $865 
Gas utility5
885 971 958 
Other reconciling items
Total capital expenditures – Consumers$2,167 $2,134 $1,825 
1Consumers had no significant equity method investments.
2Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
3Costs related to coal-fueled electric generating units to be retired in 2023 were removed and recorded as a regulatory asset in June 2019. For additional details, see Note 3, Regulatory Matters.
4Amounts include assets placed under finance lease.
5Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
v3.20.4
Related Party Transactions - Consumers
12 Months Ended
Dec. 31, 2020
Consumers Energy Company  
Related Party Transaction [Line Items]  
Related Party Transactions - Consumers Related-Party Transactions—Consumers
Consumers enters into a number of transactions with related parties in the normal course of business. These transactions include but are not limited to:
purchases of electricity from affiliates of CMS Enterprises
payments to and from CMS Energy related to parent company overhead costs
Transactions involving power supply purchases from certain affiliates of CMS Enterprises are based on avoided costs under PURPA, state law, and competitive bidding. The payment of parent company overhead costs is based on the use of accepted industry allocation methodologies. These payments are for costs that occur in the normal course of business.
Presented in the following table is Consumers’ expense recorded from related-party transactions for the years ended December 31:
In Millions
DescriptionRelated Party202020192018
Purchases of capacity and energyAffiliates of CMS Enterprises$64 $75 $83 
Amounts payable to related parties for purchased power and other services were $13 million at December 31, 2020 and $26 million at December 31, 2019. Accounts receivable from related parties were $16 million at December 31, 2020 and $8 million at December 31, 2019.
In 2018, CMS Energy and Consumers sold the DB SERP debt securities and CMS Energy issued a demand note payable to the DB SERP rabbi trust. 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, 2020 and December 31, 2019. For additional details about the note receivable – related party, see Note 8, Notes Receivable.
In December 2018, Consumers and a subsidiary of CMS Energy executed a 20‑year natural gas transportation agreement, related to a pipeline owned by Consumers. For additional details about the agreement, see Note 10, Leases and Palisades Financing.
Consumers owned no shares of CMS Energy common stock at December 31, 2020 and CMS Energy common stock with a fair value of $1 million at December 31, 2019.
In December 2020, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $350 million. As of December 31, 2020, $307 million was outstanding under the agreement with an interest rate of 0.042 percent.
v3.20.4
Variable Interest Entities
12 Months Ended
Dec. 31, 2020
Variable Interest Entities [Abstract]  
Variable Interest Entities Variable Interest Entities
In July 2020, CMS Enterprises purchased a 51-percent ownership interest in Aviator Wind Equity Holdings. At that time, Aviator Wind Equity Holdings owned 100 percent of Aviator Wind, a 525-MW wind generation project being developed and constructed in Coke County, Texas. Of Aviator Wind’s 525-MW nameplate capacity, 420 MW has been committed under long-term PPAs.
Aviator Wind became operational in September 2020 and, at that time, Aviator Wind Equity Holdings sold a Class A membership interest in Aviator Wind to a tax equity investor, BHE Renewables, LLC, a subsidiary of Berkshire Hathaway Energy Company. Aviator Wind Equity Holdings retained a Class B membership interest in Aviator Wind. Earnings, tax attributes, and cash flows generated by Aviator Wind are allocated among and distributed to the membership classes in accordance with the ratios specified in the associated limited liability company operating agreement; these ratios change over time and are not representative of the ownership interest percentages of each membership class.
Since Aviator Wind’s income and cash flows are not distributed among its investors based on ownership interest percentages, CMS Enterprises allocates Aviator Wind’s income (loss) among its investors by applying the hypothetical liquidation at book value method. This method calculates each investor’s earnings based on a hypothetical liquidation of Aviator Wind at the net book value of its underlying net assets as of the balance sheet date. The liquidation tax gain (loss) is allocated to each investor’s capital account, resulting in income (loss) equal to the period change in the investor’s capital account balance. CMS Enterprises then receives 51 percent of the earnings, tax attributes, and cash flows that were allocated to Aviator Wind Equity Holdings.
Aviator Wind Equity Holdings and Aviator Wind represent VIEs. In accordance with the associated limited liability company operating agreement, the tax equity investor is guaranteed preferred returns from Aviator Wind. However, CMS Enterprises manages and controls the operating activities of Aviator Wind Equity Holdings and, ultimately, Aviator Wind. As a result, CMS Enterprises is the primary beneficiary of Aviator Wind Equity Holdings and Aviator Wind, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies. CMS Enterprises consolidates Aviator Wind Equity Holdings and Aviator Wind and presents the Class A membership interest and 49 percent of the Class B membership interest in Aviator Wind as noncontrolling interests. No gain or loss was recognized upon initial consolidation of Aviator Wind Equity Holdings and Aviator Wind.
Presented in the following table are the carrying values of the VIEs’ assets and liabilities included in CMS Energy’s consolidated balance sheets:
In Millions
December 312020
Current
Cash and cash equivalents$
Accounts receivable
Prepayments and other current assets
Non-current
Plant, property, and equipment, net692 
Total assets1
$705 
Current
Accounts payable$
Non-current
Asset retirement obligations19 
Total liabilities$22 
1Assets may be used only to meet VIEs’ obligations and commitments.
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. Consumers has not provided any financial or other support during the periods presented that was not previously contractually required.CMS Energy’s investment in these partnerships is included in investments on its consolidated balance sheets in the amount of $70 million as of December 31, 2020 and $71 million as of December 31, 2019.
v3.20.4
Asset Sales and Exit Activities
12 Months Ended
Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Asset Sales and Exit Activities Asset Sale and Exit Activities
Asset Sale: In October 2020, Consumers completed a sale of the electric utility’s remaining transmission equipment to METC. In December 2020, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with electric utility customers; this application was approved by the MPSC in February 2021. As a result, during 2020, Consumers recorded a regulatory liability of $14 million and recognized a pre-tax gain of $14 million within maintenance and other operating expenses on its consolidated statements of income. For additional details on the sharing of the gain with customers, see Note 3, Regulatory Matters.
Exit Activities: Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. For additional details on Consumers’ plans to recover the remaining book value of the two units upon their retirement, see Note 3, Regulatory Matters.
In October 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 will begin deferring these costs as a regulatory asset in 2021.
As of December 31, 2020, the cumulative cost incurred and charged to expense related to this program was $16 million; an amount of $3 million has been capitalized as a cost of plant, property, and equipment. 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 3120202019
Retention benefit liability at beginning of period$$— 
Costs incurred and charged to maintenance and other operating expenses13 
Costs incurred and capitalized
Costs paid or settled(8)— 
Retention benefit liability at the end of the period1
$11 $
1Includes current portion of other liabilities of $3 million at December 31, 2020 and $2 million at December 31, 2019.
Consumers Energy Company  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Asset Sales and Exit Activities Asset Sale and Exit Activities
Asset Sale: In October 2020, Consumers completed a sale of the electric utility’s remaining transmission equipment to METC. In December 2020, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with electric utility customers; this application was approved by the MPSC in February 2021. As a result, during 2020, Consumers recorded a regulatory liability of $14 million and recognized a pre-tax gain of $14 million within maintenance and other operating expenses on its consolidated statements of income. For additional details on the sharing of the gain with customers, see Note 3, Regulatory Matters.
Exit Activities: Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. For additional details on Consumers’ plans to recover the remaining book value of the two units upon their retirement, see Note 3, Regulatory Matters.
In October 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 will begin deferring these costs as a regulatory asset in 2021.
As of December 31, 2020, the cumulative cost incurred and charged to expense related to this program was $16 million; an amount of $3 million has been capitalized as a cost of plant, property, and equipment. 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 3120202019
Retention benefit liability at beginning of period$$— 
Costs incurred and charged to maintenance and other operating expenses13 
Costs incurred and capitalized
Costs paid or settled(8)— 
Retention benefit liability at the end of the period1
$11 $
1Includes current portion of other liabilities of $3 million at December 31, 2020 and $2 million at December 31, 2019.
v3.20.4
Quarterly Financial And Common Stock Information (Unaudited)
12 Months Ended
Dec. 31, 2020
Quarterly Financial and Common Stock Information [Line Items]  
Quarterly Financial and Common Stock Information (Unaudited) Quarterly Financial and Common Stock Information (Unaudited)
In Millions, Except Per Share Amounts
2020
Three Months EndedMarch 31June 30September 30December 31
CMS Energy, including Consumers
Operating revenue$1,864 $1,443 $1,575 $1,798 
Operating income368 273 369 352 
Net income243 137 210 162 
Income (loss) attributable to noncontrolling interests— (8)
Net income available to common stockholders243 136 218 158 
Basic earnings per average common share1
0.86 0.48 0.76 0.55 
Diluted earnings per average common share1
0.85 0.48 0.76 0.55 
Consumers
Operating revenue$1,744 $1,330 $1,450 $1,665 
Operating income329 246 338 308 
Net income235 160 230 191 
Preferred stock dividends— — 
Net income available to common stockholder235 159 230 190 
1The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding.
In Millions, Except Per Share Amounts
2019
Three Months EndedMarch 31June 30September 30December 31
CMS Energy, including Consumers
Operating revenue$2,059 $1,445 $1,546 $1,795 
Operating income359 218 351 311 
Net income213 94 207 168 
Income attributable to noncontrolling interests— — 
Net income available to common stockholders213 93 207 167 
Basic earnings per average common share1
0.75 0.33 0.73 0.59 
Diluted earnings per average common share1
0.75 0.33 0.73 0.58 
Consumers
Operating revenue$1,943 $1,334 $1,429 $1,670 
Operating income328 175 319 308 
Net income226 98 213 206 
Preferred stock dividends— — 
Net income available to common stockholder226 97 213 205 
1The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding.
Consumers Energy Company  
Quarterly Financial and Common Stock Information [Line Items]  
Quarterly Financial and Common Stock Information (Unaudited) Quarterly Financial and Common Stock Information (Unaudited)
In Millions, Except Per Share Amounts
2020
Three Months EndedMarch 31June 30September 30December 31
CMS Energy, including Consumers
Operating revenue$1,864 $1,443 $1,575 $1,798 
Operating income368 273 369 352 
Net income243 137 210 162 
Income (loss) attributable to noncontrolling interests— (8)
Net income available to common stockholders243 136 218 158 
Basic earnings per average common share1
0.86 0.48 0.76 0.55 
Diluted earnings per average common share1
0.85 0.48 0.76 0.55 
Consumers
Operating revenue$1,744 $1,330 $1,450 $1,665 
Operating income329 246 338 308 
Net income235 160 230 191 
Preferred stock dividends— — 
Net income available to common stockholder235 159 230 190 
1The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding.
In Millions, Except Per Share Amounts
2019
Three Months EndedMarch 31June 30September 30December 31
CMS Energy, including Consumers
Operating revenue$2,059 $1,445 $1,546 $1,795 
Operating income359 218 351 311 
Net income213 94 207 168 
Income attributable to noncontrolling interests— — 
Net income available to common stockholders213 93 207 167 
Basic earnings per average common share1
0.75 0.33 0.73 0.59 
Diluted earnings per average common share1
0.75 0.33 0.73 0.58 
Consumers
Operating revenue$1,943 $1,334 $1,429 $1,670 
Operating income328 175 319 308 
Net income226 98 213 206 
Preferred stock dividends— — 
Net income available to common stockholder226 97 213 205 
1The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding.
v3.20.4
Schedule I - Condensed Financial Information of Registrant
12 Months Ended
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]  
Schedule I - Condensed Financial Information of Registrant
Condensed Statements of Income
In Millions
Years Ended December 31202020192018
Operating Expenses
Other operating expenses$(6)$(38)$(7)
Total operating expenses(6)(38)(7)
Operating Loss(6)(38)(7)
Other Income (Expense)
Equity earnings of subsidiaries909 826 780 
Nonoperating retirement benefits, net(1)(1)(1)
Interest income
Other income— 
Other expense(19)— (17)
Total other income891 827 764 
Interest Charges
Interest on long-term debt178 156 135 
Intercompany interest expense and other10 
Total interest charges185 166 142 
Income Before Income Taxes700 623 615 
Income Tax Benefit(55)(57)(42)
Net Income Available to Common Stockholders$755 $680 $657 
The accompanying notes are an integral part of these statements.
(Continued)
CMS Energy—Parent Company
Condensed Statements of Cash Flows
In Millions
Years Ended December 31202020192018
Cash Flows from Operating Activities
Net cash provided by operating activities$507 $697 $702 
Cash Flows from Investing Activities
Investment in subsidiaries(657)(683)(363)
Increase in notes receivable – intercompany(307)— — 
Proceeds from DB SERP investments— — 22 
Net cash used in investing activities(964)(683)(341)
Cash Flows from Financing Activities
Proceeds from issuance of debt1,225 1,158 560 
Issuance of common stock253 12 41 
Retirement of long-term debt(425)(738)(675)
Debt prepayment costs(16)— (16)
Payment of dividends on common stock(465)(434)(405)
Debt issuance costs and financing fees(10)(18)(8)
Change in notes payable – intercompany(105)142 
Net cash provided by (used in) financing activities457 (14)(361)
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts— — — 
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period— — — 
Cash and Cash Equivalents, Including Restricted Amounts, End of Period$— $— $— 
The accompanying notes are an integral part of these statements.
(Continued)
CMS Energy—Parent Company
Condensed Balance Sheets
ASSETS
In Millions
December 3120202019
Current Assets
Notes and accrued interest receivable – intercompany$358 $
Accounts receivable – intercompany and related parties
Federal income tax receivable— 18 
Accrued taxes48 — 
Prepayments and other current assets
Total current assets410 30 
Other Non‑current Assets
Deferred income taxes91 126 
Investments in subsidiaries9,372 8,526 
Other investments
Other16 
Total other non‑current assets9,473 8,672 
Total Assets$9,883 $8,702 
LIABILITIES AND EQUITY
In Millions
December 3120202019
Current Liabilities
Current portion of long-term debt$200 $— 
Accounts and notes payable – intercompany69 123 
Accrued interest, including intercompany33 34 
Accrued taxes— 
Other current liabilities38 
Total current liabilities311 200 
Non‑current Liabilities
Long-term debt3,926 3,334 
Notes payable – intercompany116 112 
Postretirement benefits21 21 
Other non‑current liabilities13 17 
Total non‑current liabilities4,076 3,484 
Equity
Common stockholders’ equity5,496 5,018 
Total Liabilities and Equity$9,883 $8,702 
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.Contingencies
Gas Index Price Reporting Litigation: CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, were named as defendants in four class action lawsuits filed in Kansas, Missouri, and Wisconsin and one individual lawsuit filed in Kansas; these lawsuits arose as a result of alleged inaccurate natural gas price reporting to publications that report trade information. Allegations included price-fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices. In 2016, CMS Energy entities reached a settlement with the plaintiffs in the Kansas and Missouri class action cases for an amount that was not material to CMS Energy. In 2017, the federal district court approved the settlement.
In 2019, CMS Energy and the plaintiffs in the remaining Kansas individual lawsuit and the Wisconsin class action lawsuit engaged in settlement discussions and CMS Energy recorded a $30 million liability at December 31, 2019 as the probable estimate to settle the two cases. The parties executed a settlement agreement in the Kansas case in February 2020, and that case is now complete. In the Wisconsin case, a settlement agreement was approved in August 2020 and that case is now complete.
Guarantees
CMS Energy has issued guarantees with a maximum potential obligation of $596 million on behalf of some of its wholly owned subsidiaries and related parties. CMS Energy’s maximum potential obligation consists primarily of potential payments:
to third parties under certain commodity purchase and swap agreements entered into with CMS ERM
to third parties under certain agreements entered into with Grand River Wind, LLC, a wholly owned subsidiary of CMS Enterprises
to EGLE on behalf of CMS Land and CMS Capital, for environmental remediation obligations at Bay Harbor
to the U.S. Department of Energy on behalf of Consumers, in connection with Consumers’ 2011 settlement agreement with the U.S. Department of Energy regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers
to a tax equity investor under certain agreements in connection with the purchase of a VIE
The expiry dates of these guarantees vary, depending upon contractual provisions or upon the statute of limitations under the relevant governing law.
Note PayableIntercompanyIn 2018, CMS Energy issued a demand note payable to the DB SERP rabbi trust, of which $124 million was attributable to CMS Energy’s subsidiaries. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. This note payable is not recorded at fair value; however, its carrying value approximates fair value at December 31, 2020. This fair value measurement is classified in Level 3 within the fair value hierarchy.
v3.20.4
Schedule II - Valuation and Qualifying Accounts and Reserves
12 Months Ended
Dec. 31, 2020
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, 2020, 2019, and 2018
In Millions
DescriptionBalance at Beginning of PeriodCharged to Expense
Charged to Other Accounts2
DeductionsBalance at End of Period
Allowance for uncollectible accounts1
2020$20 $33 $— $24 $29 
201920 29 — 29 20 
201820 29 — 29 20 
Deferred tax valuation allowance
2020$$— $— $$
2019— — 
201815 — 
Allowance for notes receivable1
2020$33 $60 $62 $32 $123 
201924 38 — 29 33 
201820 25 — 21 24 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
2On January 1, 2020, in accordance with ASU 2016‑13, Measurement of Credit Losses on Financial Instruments, CMS Energy adjusted the allowance for loan losses associated with its notes receivable, recording an offsetting adjustment to retained earnings. For further details, see Item 8. Financial Statements and Supplementary Data—Notes to the Consolidated Financial Statements—Note 2, New Accounting Standards and Note 8, Notes Receivable.
Consumers Energy Company
Years Ended December 31, 2020, 2019, and 2018
In Millions
DescriptionBalance at Beginning of PeriodCharged to ExpenseCharged to Other AccountsDeductionsBalance at End of Period
Allowance for uncollectible accounts1
2020$20 $33 $— $24 $29 
201920 29 — 29 20 
201820 29 — 29 20 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
Consumers Energy Company  
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]  
Schedule II - Valuation and Qualifying Accounts and Reserves
CMS Energy Corporation
Years Ended December 31, 2020, 2019, and 2018
In Millions
DescriptionBalance at Beginning of PeriodCharged to Expense
Charged to Other Accounts2
DeductionsBalance at End of Period
Allowance for uncollectible accounts1
2020$20 $33 $— $24 $29 
201920 29 — 29 20 
201820 29 — 29 20 
Deferred tax valuation allowance
2020$$— $— $$
2019— — 
201815 — 
Allowance for notes receivable1
2020$33 $60 $62 $32 $123 
201924 38 — 29 33 
201820 25 — 21 24 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
2On January 1, 2020, in accordance with ASU 2016‑13, Measurement of Credit Losses on Financial Instruments, CMS Energy adjusted the allowance for loan losses associated with its notes receivable, recording an offsetting adjustment to retained earnings. For further details, see Item 8. Financial Statements and Supplementary Data—Notes to the Consolidated Financial Statements—Note 2, New Accounting Standards and Note 8, Notes Receivable.
Consumers Energy Company
Years Ended December 31, 2020, 2019, and 2018
In Millions
DescriptionBalance at Beginning of PeriodCharged to ExpenseCharged to Other AccountsDeductionsBalance at End of Period
Allowance for uncollectible accounts1
2020$20 $33 $— $24 $29 
201920 29 — 29 20 
201820 29 — 29 20 
1Deductions represent write-offs of uncollectible accounts, net of recoveries.
v3.20.4
Significant Accounting Policies (Policy)
12 Months Ended
Dec. 31, 2020
Significant Accounting Policies [Line Items]  
Principles of Consolidation Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, CMS Enterprises, EnerBank, 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 or is the primary beneficiary. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances.
Use of Estimates Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates.
Contingencies Contingencies: CMS Energy and Consumers record estimated liabilities for contingencies on their consolidated financial statements when it is probable that a liability 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 and notes receivable 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 6, 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 15, Earnings Per Share—CMS Energy.
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 or if there has been a decline in value that may be other than temporary.
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses.
Impairment of Equity Method Investments CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary.
Investment Tax Credits Investment Tax Credits: Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment. CMS Energy’s non‑regulated businesses use the deferral method of accounting for investment tax credits. Under the deferral method, the book basis of the associated assets is reduced by the amount of the credit, resulting in lower depreciation expense over the life of the assets. Furthermore, the tax basis of the assets is reduced by 50 percent of the related credit, resulting in a net deferred tax asset. CMS Energy recognizes the tax benefit of this basis difference as a reduction to income tax expense in the year in which the plant reaches commercial operation.
Inventory - Gas and Coal Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets.
Inventory - RECs and Emission Allowances CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. CMS Energy and Consumers classify these amounts within other assets on their consolidated balance sheets.
Inventory - Impairment CMS Energy and Consumers evaluate inventory for impairment as required to ensure that its carrying value does not exceed the lower of cost or net realizable value.
MISO Transactions MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements.
Property Taxes Property Taxes: Property taxes are based on the taxable value of Consumers’ real and personal property assessed by local taxing authorities. Consumers records property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
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.
New Accounting Standards
Implementation of New Accounting Standards
ASU 2016‑13, Measurement of Credit Losses on Financial Instruments: This standard, which was effective on January 1, 2020 for CMS Energy and Consumers, provides new guidance for measuring and recognizing credit losses on financial instruments. The standard applies to financial assets that are not measured at fair value through net income as well as to certain off‑balance-sheet credit exposures. CMS Energy and Consumers were required to apply the standard using a modified retrospective approach, under which the initial impacts of the standard are recorded through a cumulative-effect adjustment to beginning retained earnings on the effective date.
The standard required an increase to the allowance for loan losses at EnerBank. Prior to the standard, the allowance reflected expected credit losses over a 12‑month period, but the new guidance requires the allowance to reflect expected credit losses over the entire life of the loans. As a result, CMS Energy recorded a $65 million increase to its expected credit loss reserves on January 1, 2020, with the offsetting adjustment recorded to retained earnings, net of taxes of $14 million. The standard also requires an increase in the initial provision for loan losses recognized in net income for new loans originated in 2020 and beyond. The adoption of this standard resulted in a $21 million reduction to CMS Energy’s income before income taxes for the year ended December 31, 2020. For further information on EnerBank’s loans and the related allowance for loan losses see Note 8, Notes Receivable. At Consumers, the standard applies to the allowance for uncollectible accounts, but did not result in any significant changes to the allowance methodology and did not have a material impact on Consumers’ consolidated financial statements.
ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting: This standard, which was effective as of March 12, 2020 for CMS Energy and Consumers, provides optional guidance intended to ease the potential burden in accounting for the expected discontinuation of LIBOR as a reference rate in the financial markets. The guidance can be applied to modifications made to certain contracts to replace LIBOR with a new reference rate. The guidance, if elected, will permit entities to treat such modifications as the continuation of the original contract, without any required accounting reassessments or remeasurements. The guidance will also facilitate the continuation of hedge accounting for derivatives that may have to be modified to incorporate a new rate. The guidance is effective through December 31, 2022. CMS Energy and Consumers presently have various contracts that reference LIBOR and they are assessing how this standard may be applied to specific contract modifications.
Allowance For Loan Losses Policy
Authorized contractors pay fees to EnerBank to provide borrowers with same-as-cash, zero interest, or reduced interest loans. Unearned income associated with the loan fees, which is recorded as a reduction to notes receivable on CMS Energy’s consolidated balance sheets, was $128 million at December 31, 2020 and $134 million at December 31, 2019.
During 2020, EnerBank purchased portfolios of secured and unsecured consumer installment loans with a principal value of $90 million. During 2020, EnerBank completed sales of notes receivable with a principal value of $246 million and recorded gains of $6 million.
EnerBank utilizes FICO scores as a key credit quality indicator when underwriting new loans and in assessing the credit exposures in its loan portfolio. The score is determined at the time of a borrower’s application and is generally not updated since the average duration of loans is about two years. At December 31, 2020, 86 percent of EnerBank’s loans had a FICO score rating between good and excellent. At December 31, 2020, 97 percent of EnerBank’s loan portfolio was originated within the past five years.
The allowance for loan losses at December 31, 2020 reflects expected credit losses over the entire lifetime of the loan portfolio. EnerBank estimates the allowance by using the “weighted-average remaining maturity” methodology for their term loans, and the “probability of default and loss given default” methodology for their same-as-cash loans. These methodologies consider historical loan loss experience, prepayment expectations, and credit quality indicators. EnerBank considers current and projected economic conditions, and other reasonable and supportable forecast information to determine if adjustments to the allowance are necessary. The allowance is increased by the provision for loan losses and decreased by loan charge‑offs net of recoveries. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due.
Property, Plant and Equipment, 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.
Plant Retirement and Abandonment Policy With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability.
AFUDC AFUDC: Consumers capitalizes AFUDC on regulated major construction projects, except pollution control facilities on its fossil-fuel-fired power plants. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset.
Property, Plant and Equipment, 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.
Asset Retirement Obligations Policy
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.
Income Tax Policy 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.
Revenue
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
CMS Energy and Consumers recorded uncollectible accounts expense of $33 million for the year ended December 31, 2020, and $29 million for the years ended December 31, 2019 and 2018. At December 31, 2020, Consumers had deferred $4 million of uncollectible accounts expense as a non-current regulatory asset. For additional information, see Note 3, Regulatory Matters.
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 $437 million at December 31, 2020 and $426 million at December 31, 2019.
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 3, Regulatory Matters.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Cash and Cash Equivalents Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Software development  
Significant Accounting Policies [Line Items]  
Property, Plant and Equipment, Capitalization 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.
Variable Interest Entity, Primary Beneficiary  
Significant Accounting Policies [Line Items]  
Consolidation, Variable Interest Entity, Policy Aviator Wind Equity Holdings and Aviator Wind represent VIEs. In accordance with the associated limited liability company operating agreement, the tax equity investor is guaranteed preferred returns from Aviator Wind. However, CMS Enterprises manages and controls the operating activities of Aviator Wind Equity Holdings and, ultimately, Aviator Wind. As a result, CMS Enterprises is the primary beneficiary of Aviator Wind Equity Holdings and Aviator Wind, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies.
Variable Interest Entity, Not Primary Beneficiary  
Significant Accounting Policies [Line Items]  
Consolidation, Variable Interest Entity, Policy CMS Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While CMS Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships.
Consumers Energy Company  
Significant Accounting Policies [Line Items]  
Principles of Consolidation Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, CMS Enterprises, EnerBank, 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 or is the primary beneficiary. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances.
Use of Estimates Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates.
Contingencies Contingencies: CMS Energy and Consumers record estimated liabilities for contingencies on their consolidated financial statements when it is probable that a liability 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 and notes receivable 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 6, 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 or if there has been a decline in value that may be other than temporary.
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses.
Investment Tax Credits Investment Tax Credits: Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment. CMS Energy’s non‑regulated businesses use the deferral method of accounting for investment tax credits. Under the deferral method, the book basis of the associated assets is reduced by the amount of the credit, resulting in lower depreciation expense over the life of the assets. Furthermore, the tax basis of the assets is reduced by 50 percent of the related credit, resulting in a net deferred tax asset. CMS Energy recognizes the tax benefit of this basis difference as a reduction to income tax expense in the year in which the plant reaches commercial operation.
Inventory - Gas and Coal Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets.
Inventory - RECs and Emission Allowances CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. CMS Energy and Consumers classify these amounts within other assets on their consolidated balance sheets.
Inventory - Impairment CMS Energy and Consumers evaluate inventory for impairment as required to ensure that its carrying value does not exceed the lower of cost or net realizable value.
MISO Transactions MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements.
Property Taxes Property Taxes: Property taxes are based on the taxable value of Consumers’ real and personal property assessed by local taxing authorities. Consumers records property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of Consumers’ accrued property tax that will be recognized over future governmental fiscal periods.
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.
New Accounting Standards
Implementation of New Accounting Standards
ASU 2016‑13, Measurement of Credit Losses on Financial Instruments: This standard, which was effective on January 1, 2020 for CMS Energy and Consumers, provides new guidance for measuring and recognizing credit losses on financial instruments. The standard applies to financial assets that are not measured at fair value through net income as well as to certain off‑balance-sheet credit exposures. CMS Energy and Consumers were required to apply the standard using a modified retrospective approach, under which the initial impacts of the standard are recorded through a cumulative-effect adjustment to beginning retained earnings on the effective date.
The standard required an increase to the allowance for loan losses at EnerBank. Prior to the standard, the allowance reflected expected credit losses over a 12‑month period, but the new guidance requires the allowance to reflect expected credit losses over the entire life of the loans. As a result, CMS Energy recorded a $65 million increase to its expected credit loss reserves on January 1, 2020, with the offsetting adjustment recorded to retained earnings, net of taxes of $14 million. The standard also requires an increase in the initial provision for loan losses recognized in net income for new loans originated in 2020 and beyond. The adoption of this standard resulted in a $21 million reduction to CMS Energy’s income before income taxes for the year ended December 31, 2020. For further information on EnerBank’s loans and the related allowance for loan losses see Note 8, Notes Receivable. At Consumers, the standard applies to the allowance for uncollectible accounts, but did not result in any significant changes to the allowance methodology and did not have a material impact on Consumers’ consolidated financial statements.
ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting: This standard, which was effective as of March 12, 2020 for CMS Energy and Consumers, provides optional guidance intended to ease the potential burden in accounting for the expected discontinuation of LIBOR as a reference rate in the financial markets. The guidance can be applied to modifications made to certain contracts to replace LIBOR with a new reference rate. The guidance, if elected, will permit entities to treat such modifications as the continuation of the original contract, without any required accounting reassessments or remeasurements. The guidance will also facilitate the continuation of hedge accounting for derivatives that may have to be modified to incorporate a new rate. The guidance is effective through December 31, 2022. CMS Energy and Consumers presently have various contracts that reference LIBOR and they are assessing how this standard may be applied to specific contract modifications.
Property, Plant and Equipment, 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.
Plant Retirement and Abandonment Policy With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability.
AFUDC AFUDC: Consumers capitalizes AFUDC on regulated major construction projects, except pollution control facilities on its fossil-fuel-fired power plants. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset.
Regulatory Depreciation and Amortization Consumers depreciates utility property on an asset-group basis, in which it applies a single MPSC-approved depreciation rate to the gross investment in a particular class of property within the electric and gas segments. Consumers performs depreciation studies periodically to determine appropriate group lives.
Property, Plant and Equipment, 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.
Asset Retirement Obligations Policy
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.
Income Tax Policy 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.
Revenue
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
CMS Energy and Consumers recorded uncollectible accounts expense of $33 million for the year ended December 31, 2020, and $29 million for the years ended December 31, 2019 and 2018. At December 31, 2020, Consumers had deferred $4 million of uncollectible accounts expense as a non-current regulatory asset. For additional information, see Note 3, Regulatory Matters.
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 $437 million at December 31, 2020 and $426 million at December 31, 2019.
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 3, Regulatory Matters.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Cash and Cash Equivalents Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Consumers Energy Company | Software development  
Significant Accounting Policies [Line Items]  
Property, Plant and Equipment, Capitalization 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.
v3.20.4
Regulatory Matters (Tables) - Consumers Energy Company
12 Months Ended
Dec. 31, 2020
Public Utility, Property, Plant and Equipment [Line Items]  
Schedule of Regulatory Assets and 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 Period20202019
Regulatory assets
Current
Energy waste reduction plan incentive1
2021$34 $33 
Deferred capital spending2
2021— 
Other2021— 
Total current regulatory assets$42 $33 
Non-current
Postretirement benefits3
various$1,231 $1,130 
Costs of coal-fueled electric generating units to be retired2
various678 667 
Securitized costs2
2029221 247 
ARO4
various216 191 
MGP sites4
various120 130 
Unamortized loss on reacquired debt4
various108 70 
Energy waste reduction plan incentive1
202242 34 
Energy waste reduction plan4
various16 10 
Demand response program4
various10 
COVID-19 costs accounting deferral4
various— 
Othervarious
Total non-current regulatory assets$2,653 $2,489 
Total regulatory assets$2,695 $2,522 
Regulatory liabilities
Current
Income taxes, net2021$105 $65 
Reserve for customer refunds202128 
Voluntary transmission asset sale gain share202114 17 
Other2021
Total current regulatory liabilities$151 $87 
Non-current
Cost of removalvarious$2,245 $2,126 
Income taxes, netvarious1,419 1,510 
Renewable energy grant204349 52 
AROvarious11 26 
Renewable energy plan202817 
Othervarious11 11 
Total non-current regulatory liabilities$3,744 $3,742 
Total regulatory liabilities$3,895 $3,829 
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 historically authorized and Consumers expects the MPSC to authorize a specific return on these regulatory assets.
3This regulatory asset is included in rate base, thereby providing a return.
4These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment.
Schedule of Assets and Liabilities for PSCR and GCR Underrecoveries and Overrecoveries
Presented in the following table are the liabilities for PSCR and GCR overrecoveries reflected on Consumers’ consolidated balance sheets:
In Millions
December 3120202019
Liabilities
PSCR overrecoveries$$33 
GCR overrecoveries15 
Accrued rate refunds$20 $35 
v3.20.4
Contingencies and Commitments (Tables)
12 Months Ended
Dec. 31, 2020
Site Contingency [Line Items]  
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2020:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1
September 2020indefinite$349 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite153 
Guarantee3
July 2011indefinite30 — 
Consumers
Guarantee3
July 2011indefinite$30 $— 
1In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 21, 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, primarily claims related to taxes. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Purchase Obligations Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2020 for each of the periods shown:
In Millions
Payments Due
Total20212022202320242025Beyond 2025
CMS Energy, including Consumers
Total PPAs$8,898 $1,057 $791 $731 $784 $732 $4,803 
Other3,179 1,391 871 265 199 171 282 
Consumers
PPAs
MCV PPA$2,815 $349 $340 $358 $376 $329 $1,063 
Palisades PPA517 398 119 — — — — 
Related-party PPAs318 58 58 58 58 39 47 
Other PPAs5,248 252 274 315 350 364 3,693 
Total PPAs$8,898 $1,057 $791 $731 $784 $732 $4,803 
Other2,605 1,333 777 207 154 130 
Consumers Energy Company  
Site Contingency [Line Items]  
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2020:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1
September 2020indefinite$349 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite153 
Guarantee3
July 2011indefinite30 — 
Consumers
Guarantee3
July 2011indefinite$30 $— 
1In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 21, 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, primarily claims related to taxes. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Purchase Obligations Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2020 for each of the periods shown:
In Millions
Payments Due
Total20212022202320242025Beyond 2025
CMS Energy, including Consumers
Total PPAs$8,898 $1,057 $791 $731 $784 $732 $4,803 
Other3,179 1,391 871 265 199 171 282 
Consumers
PPAs
MCV PPA$2,815 $349 $340 $358 $376 $329 $1,063 
Palisades PPA517 398 119 — — — — 
Related-party PPAs318 58 58 58 58 39 47 
Other PPAs5,248 252 274 315 350 364 3,693 
Total PPAs$8,898 $1,057 $791 $731 $784 $732 $4,803 
Other2,605 1,333 777 207 154 130 
Bay Harbor  
Site Contingency [Line Items]  
Expected Remediation Costs By Year . CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs in each of the next five years:
In Millions
20212022202320242025
CMS Energy
Long-term leachate disposal and operating and maintenance costs$$$$$
Manufactured Gas Plant | Consumers Energy Company  
Site Contingency [Line Items]  
Expected Remediation Costs By Year Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years:
In Millions
20212022202320242025
Consumers
Remediation and other response activity costs$$$23 $10 $
v3.20.4
Financings And Capitalization (Tables)
12 Months Ended
Dec. 31, 2020
Debt Instrument [Line Items]  
Summary Of Long-Term Debt Outstanding
Presented in the following table is CMS Energy’s long-term debt at December 31:
In Millions
Interest Rate
(%)
Maturity20202019
CMS Energy, including Consumers
CMS Energy, parent only
Senior notes5.050 2022$— $300 
3.875 2024250 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 $2,275 
Term loan facilityvariable
1
2021200 — 
Junior subordinated notes2
4.750 2050500 — 
3.750 2050400 — 
5.625 2078200 200 
5.875 2078280 280 
5.875 2079630 630 
$2,010 $1,110 
Total CMS Energy, parent only$4,185 $3,385 
Consumers8,197 7,322 
CMS Enterprises, including subsidiaries
Term loan facilityvariable
3
202585 92 
EnerBank
Certificates of deposit1.621 
4
2021-20282,805 2,389 
Total principal amount outstanding$15,272 $13,188 
Current amounts(1,486)(1,111)
Unamortized discounts(33)(27)
Unamortized issuance costs(119)(99)
Total long-term debt$13,634 $11,951 
1At December 31, 2020, the interest rate on the balance of this term loan facility was 0.600 percent, based on an interest rate of one-week LIBOR plus 0.500 percent.
2These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.
3A subsidiary of CMS Enterprises issued nonrecourse debt to finance the acquisition of a wind generation project in Northwest Ohio. The interest rate for the debt is three-month LIBOR plus 1.500 percent through October 2022 and three-month LIBOR plus 1.750 percent thereafter. At December 31, 2020 and 2019, the interest rate was 1.754 percent and 3.445 percent, respectively. The same subsidiary of CMS Enterprises entered into interest rate swaps with the lending banks to fix the interest charges associated with the debt, at a rate of 4.702 percent through October 2022 and 4.952 percent thereafter. Principal and interest payments are made quarterly. For information about the interest rate swaps, see Note 6, Fair Value Measurements.
4The weighted-average interest rate for EnerBank’s certificates of deposit was 1.621 percent at December 31, 2020 and 2.445 percent at December 31, 2019. EnerBank’s primary deposit product consists of brokered certificates of deposit with varying maturities and having a face value of $1,000.
Schedule of Debt Presented in the following table is a summary of major long-term debt issuances during the year ended December 31, 2020:
Principal
(In Millions)
Interest RateIssuance DateMaturity Date
CMS Energy, parent only
Term loan facility1
$300 variableFebruaryFebruary 2021
Junior subordinated notes2
500 4.750 %MayJune 2050
Junior subordinated notes3
400 3.750 %NovemberDecember 2050
Total CMS Energy, parent only$1,200 
Consumers
Term loan facility$300 variableJanuaryJanuary 2021
First mortgage bonds575 3.500 %March August 2051
First mortgage bonds525 2.500 %MayMay 2060
First mortgage bonds134 variableMayMay 2070
First mortgage bonds127 variableOctoberOctober 2070
First mortgage bonds300 0.350 %DecemberJune 2023
Total Consumers$1,961 
Total CMS Energy$3,161 
1In December 2020, CMS Energy repaid $100 million of this facility and, in February 2021, amended the facility by extending its maturity date to November 2021.
2These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. On 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.
3These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. On December 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 2.900 percent.
Presented in the following table is a summary of major long-term debt retirements during the year ended December 31, 2020:
Principal
(In Millions)
Interest RateRetirement DateMaturity Date
CMS Energy, parent only
Senior notes1
$300 5.050 %DecemberMarch 2022
Total CMS Energy, parent only$300 
Consumers
First mortgage bonds$100 3.770 %AprilOctober 2020
First mortgage bonds250 5.300 %JuneSeptember 2022
First mortgage bonds375 2.850 %SeptemberMay 2022
Term loan facility300 variableDecemberJanuary 2021
Total Consumers$1,025 
Total CMS Energy$1,325 
1CMS Energy retired these senior notes at a premium and recorded a loss on extinguishment of $16 million in other expense on its consolidated statements of income.
Debt Maturities At December 31, 2020, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20212022202320242025
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$200 $— $— $250 $250 
Consumers
364 28 654 332 31 
CMS Enterprises, including subsidiaries10 51 
EnerBank915 572 477 325 244 
Total CMS Energy$1,486 $608 $1,140 $917 $576 
Consumers
Long-term debt$364 $28 $654 $332 $31 
Revolving Credit Facilities The following credit facilities with banks were available at December 31, 2020:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 20231
$550 $— $18 $532 
CMS Enterprises, including subsidiaries
September 25, 20252
$39 $— $39 $— 
September 30, 20253
18 — 10 
Consumers4
June 5, 2023$850 $— $$843 
November 19, 2022250 — 249 
April 18, 202230 — 30 — 
1During the year ended December 31, 2020, CMS Energy’s average borrowings totaled $1 million with a weighted-average interest rate of 1.888 percent.
2This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding the acquisition of Aviator Wind Equity Holdings, see Note 21, Variable Interest Entities.
3Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. There were no borrowings under this facility during the year ended December 31, 2020.
4Obligations under these facilities are secured by first mortgage bonds of Consumers. During the year ended December 31, 2020, Consumers’ average borrowings totaled less than $1 million with a weighted-average interest rate of 1.425 percent.
Schedule of Forward Contracts Presented in the following table are details of CMS Energy’s forward sales contracts under this program at December 31, 2020:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialDecember 31, 2020
September 15, 2020December 31, 2021846,759$61.04 $60.53 
December 22, 2020June 22, 2022115,59561.81 61.81 
Consumers Energy Company  
Debt Instrument [Line Items]  
Summary Of Long-Term Debt Outstanding Presented in the following table is Consumers’ long-term debt at December 31:
In Millions
Interest Rate
(%)
Maturity20202019
Consumers
First mortgage bonds3.770 2020$— $100 
2.850 2022— 375 
5.300 2022— 250 
0.350 2023300 — 
3.375 2023325 325 
3.125 2024250 250 
3.190 202452 52 
3.680 2027100 100 
3.390 202735 35 
3.800 2028300 300 
3.180 2032100 100 
5.800 2035175 175 
3.520 2037335 335 
4.010 2038215 215 
6.170 204050 50 
4.970 204050 50 
4.310 2042263 263 
3.950 2043425 425 
4.100 2045250 250 
3.250 2046450 450 
3.950 2047350 350 
4.050 2048550 550 
4.350 2049550 550 
3.750 2050300 300 
3.100 2050550 550 
3.500 2051575 — 
3.860 205250 50 
4.280 2057185 185 
2.500 2060525 — 
4.350 2064250 250 
variable
1
206976 76 
variable
1
2070134 — 
variable
1
2070127 — 
$7,897 $6,961 
Tax-exempt revenue bondsvariable2035— 35 
1.800 
2
204975 75 
$75 $110 
Securitization bonds3.250 
3
2025-2029
4
225 251 
Total principal amount outstanding$8,197 $7,322 
Current amounts(364)(202)
Unamortized discounts(29)(23)
Unamortized issuance costs(62)(49)
Total long-term debt$7,742 $7,048 
1The variable-rate bonds bear interest quarterly at a rate of three-month LIBOR minus 0.300 percent, subject to a zero-percent floor (zero percent at December 31, 2020). The holders of these variable-rate bonds may put them to Consumers for redemption on certain dates prior to their stated maturity, including dates within one year of December 31, 2020.
2The interest rate on these tax‑exempt revenue bonds will reset on October 1, 2024.
3The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2014 Securitization Funding, was 3.250 percent at December 31, 2020 and 3.220 percent at December 31, 2019.
4Principal and interest payments are made semiannually.
Schedule of Debt Presented in the following table is a summary of major long-term debt issuances during the year ended December 31, 2020:
Principal
(In Millions)
Interest RateIssuance DateMaturity Date
CMS Energy, parent only
Term loan facility1
$300 variableFebruaryFebruary 2021
Junior subordinated notes2
500 4.750 %MayJune 2050
Junior subordinated notes3
400 3.750 %NovemberDecember 2050
Total CMS Energy, parent only$1,200 
Consumers
Term loan facility$300 variableJanuaryJanuary 2021
First mortgage bonds575 3.500 %March August 2051
First mortgage bonds525 2.500 %MayMay 2060
First mortgage bonds134 variableMayMay 2070
First mortgage bonds127 variableOctoberOctober 2070
First mortgage bonds300 0.350 %DecemberJune 2023
Total Consumers$1,961 
Total CMS Energy$3,161 
1In December 2020, CMS Energy repaid $100 million of this facility and, in February 2021, amended the facility by extending its maturity date to November 2021.
2These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. On 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.
3These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. On December 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 2.900 percent.
Presented in the following table is a summary of major long-term debt retirements during the year ended December 31, 2020:
Principal
(In Millions)
Interest RateRetirement DateMaturity Date
CMS Energy, parent only
Senior notes1
$300 5.050 %DecemberMarch 2022
Total CMS Energy, parent only$300 
Consumers
First mortgage bonds$100 3.770 %AprilOctober 2020
First mortgage bonds250 5.300 %JuneSeptember 2022
First mortgage bonds375 2.850 %SeptemberMay 2022
Term loan facility300 variableDecemberJanuary 2021
Total Consumers$1,025 
Total CMS Energy$1,325 
1CMS Energy retired these senior notes at a premium and recorded a loss on extinguishment of $16 million in other expense on its consolidated statements of income.
Debt Maturities At December 31, 2020, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20212022202320242025
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$200 $— $— $250 $250 
Consumers
364 28 654 332 31 
CMS Enterprises, including subsidiaries10 51 
EnerBank915 572 477 325 244 
Total CMS Energy$1,486 $608 $1,140 $917 $576 
Consumers
Long-term debt$364 $28 $654 $332 $31 
Presented in the following table are the minimum Palisades PPA payments included in the financing obligation:
In Millions
December 31, 2020
2021$14 
2022
Total minimum payments$17 
Less discount
Financing obligation$16 
Less current portion13 
Non-current portion$
Revolving Credit Facilities The following credit facilities with banks were available at December 31, 2020:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 20231
$550 $— $18 $532 
CMS Enterprises, including subsidiaries
September 25, 20252
$39 $— $39 $— 
September 30, 20253
18 — 10 
Consumers4
June 5, 2023$850 $— $$843 
November 19, 2022250 — 249 
April 18, 202230 — 30 — 
1During the year ended December 31, 2020, CMS Energy’s average borrowings totaled $1 million with a weighted-average interest rate of 1.888 percent.
2This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding the acquisition of Aviator Wind Equity Holdings, see Note 21, Variable Interest Entities.
3Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. There were no borrowings under this facility during the year ended December 31, 2020.
4Obligations under these facilities are secured by first mortgage bonds of Consumers. During the year ended December 31, 2020, Consumers’ average borrowings totaled less than $1 million with a weighted-average interest rate of 1.425 percent.
Preferred Stock Presented in the following table are details of Consumers’ preferred stock at December 31, 2020 and 2019:
Par ValueOptional Redemption PriceNumber of Shares AuthorizedNumber of Shares Outstanding
Cumulative, with no mandatory redemption
$100 $110 7,500,000373,148
v3.20.4
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2020
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 312020201920202019
Assets1
Restricted cash equivalents$17 $17 $15 $17 
CMS Energy common stock— — — 
Nonqualified deferred compensation plan assets23 18 18 14 
Derivative instruments
Total assets$41 $36 $34 $33 
Liabilities1
Nonqualified deferred compensation plan liabilities$23 $18 $18 $14 
Derivative instruments17 — — 
Total liabilities$40 $26 $18 $14 
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 312020201920202019
Assets1
Restricted cash equivalents$17 $17 $15 $17 
CMS Energy common stock— — — 
Nonqualified deferred compensation plan assets23 18 18 14 
Derivative instruments
Total assets$41 $36 $34 $33 
Liabilities1
Nonqualified deferred compensation plan liabilities$23 $18 $18 $14 
Derivative instruments17 — — 
Total liabilities$40 $26 $18 $14 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
v3.20.4
Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2020
Financial Instruments [Line Items]  
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 6, Fair Value Measurements.
In Millions
December 31, 2020December 31, 2019
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
CMS Energy, including Consumers
Assets
Long-term receivables1
$17 $17 $— $— $17 $20 $20 $— $— $20 
Notes receivable2
2,887 3,248 — — 3,248 2,500 2,652 — — 2,652 
Securities held to maturity3
28 29 — 29 — 26 26 — 26 — 
Liabilities
Long-term debt4
15,120 17,512 1,249 14,178 2,085 13,062 14,185 1,197 11,048 1,940 
Long-term payables5
33 35 — — 35 30 32 — — 32 
Consumers
Assets
Long-term receivables1
$17 $17 $— $— $17 $20 $20 $— $— $20 
Notes receivable – related party6
107 107 — — 107 103 103 — — 103 
Liabilities
Long-term debt7
8,106 9,801 — 7,716 2,085 7,250 8,010 — 6,070 1,940 
1Includes current portion of long-term accounts receivable of $12 million at December 31, 2020 and $13 million at December 31, 2019.
2Includes current portion of notes receivable of $275 million at December 31, 2020 and $242 million at December 31, 2019. For further details, see Note 8, Notes Receivable.
3These investment securities consist primarily of mortgage-backed securities and Utah Housing Corporation bonds held by EnerBank. There were $1 million of unrealized gains in 2020 and no unrealized gains or losses in 2019.
4Includes current portion of long-term debt of $1.5 billion at December 31, 2020 and $1.1 billion at December 31, 2019.
5Includes current portion of long-term payables of $6 million at December 31, 2020 and $1 million at December 31, 2019.
6Includes current portion of notes receivable – related party of $7 million at December 31, 2020 and 2019. For further details on this note receivable, see Note 8, Notes Receivable.
7Includes current portion of long-term debt of $364 million at December 31, 2020 and $202 million at December 31, 2019.
Consumers Energy Company  
Financial Instruments [Line Items]  
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 6, Fair Value Measurements.
In Millions
December 31, 2020December 31, 2019
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
CMS Energy, including Consumers
Assets
Long-term receivables1
$17 $17 $— $— $17 $20 $20 $— $— $20 
Notes receivable2
2,887 3,248 — — 3,248 2,500 2,652 — — 2,652 
Securities held to maturity3
28 29 — 29 — 26 26 — 26 — 
Liabilities
Long-term debt4
15,120 17,512 1,249 14,178 2,085 13,062 14,185 1,197 11,048 1,940 
Long-term payables5
33 35 — — 35 30 32 — — 32 
Consumers
Assets
Long-term receivables1
$17 $17 $— $— $17 $20 $20 $— $— $20 
Notes receivable – related party6
107 107 — — 107 103 103 — — 103 
Liabilities
Long-term debt7
8,106 9,801 — 7,716 2,085 7,250 8,010 — 6,070 1,940 
1Includes current portion of long-term accounts receivable of $12 million at December 31, 2020 and $13 million at December 31, 2019.
2Includes current portion of notes receivable of $275 million at December 31, 2020 and $242 million at December 31, 2019. For further details, see Note 8, Notes Receivable.
3These investment securities consist primarily of mortgage-backed securities and Utah Housing Corporation bonds held by EnerBank. There were $1 million of unrealized gains in 2020 and no unrealized gains or losses in 2019.
4Includes current portion of long-term debt of $1.5 billion at December 31, 2020 and $1.1 billion at December 31, 2019.
5Includes current portion of long-term payables of $6 million at December 31, 2020 and $1 million at December 31, 2019.
6Includes current portion of notes receivable – related party of $7 million at December 31, 2020 and 2019. For further details on this note receivable, see Note 8, Notes Receivable.
7Includes current portion of long-term debt of $364 million at December 31, 2020 and $202 million at December 31, 2019.
v3.20.4
Notes Receivable (Tables)
12 Months Ended
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Schedule Of Current And Non-Current Notes Receivable
Presented in the following table are details of CMS Energy’s and Consumers’ notes receivable:
In Millions
December 3120202019
CMS Energy, including Consumers
Current
EnerBank notes receivable, net of allowance for loan losses$275 $242 
Non‑current
EnerBank notes receivable, net of allowance for loan losses2,612 2,258 
Total notes receivable$2,887 $2,500 
Consumers
Current
DB SERP note receivable – related party$$
Non‑current
DB SERP note receivable – related party100 96 
Total notes receivable$107 $103 
Schedule Of Allowance For Loan Losses
Presented in the following table are the changes in the allowance for loan losses:
In Millions
Years Ended December 3120202019
Balance at beginning of period$33 $24 
Effects of new accounting standard1
62 — 
Provision for loan losses60 38 
Charge-offs(39)(35)
Recoveries
Balance at end of period$123 $33 
1The allowance for loan losses at December 31, 2019 reflected expected credit losses over a 12-month period. On January 1, 2020, in accordance with ASU 2016-13, Measurement of Credit Losses on Financial Instruments, the allowance for loan losses was adjusted to reflect expected credit losses over the life of the loan. Additionally, EnerBank recorded $3 million for expected credit losses related to unfunded loan commitments. For further details, see Note 2, New Accounting Standards.
Consumers Energy Company  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Schedule Of Current And Non-Current Notes Receivable
Presented in the following table are details of CMS Energy’s and Consumers’ notes receivable:
In Millions
December 3120202019
CMS Energy, including Consumers
Current
EnerBank notes receivable, net of allowance for loan losses$275 $242 
Non‑current
EnerBank notes receivable, net of allowance for loan losses2,612 2,258 
Total notes receivable$2,887 $2,500 
Consumers
Current
DB SERP note receivable – related party$$
Non‑current
DB SERP note receivable – related party100 96 
Total notes receivable$107 $103 
v3.20.4
Plant, Property, and Equipment (Tables)
12 Months Ended
Dec. 31, 2020
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
20202019
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 - 125
$26,757 $24,963 
Enterprises
Independent power production1
3 - 40
1,112 403 
Other
3 - 5
EnerBank
1 - 7
37 22 
Plant, property, and equipment, gross$27,907 $25,390 
Construction work in progress1,085 896 
Accumulated depreciation and amortization(7,953)(7,360)
Total plant, property, and equipment2
$21,039 $18,926 
Consumers
Plant, property, and equipment, gross
Electric
Generation
22 - 125
$6,376 $5,942 
Distribution
20 - 75
9,130 8,519 
Transmission
46 - 75
— 113 
Other
5 - 50
1,326 1,258 
Assets under finance leases and other financing3
323 326 
Gas
Distribution
20 - 85
5,702 5,235 
Transmission
17 - 75
2,003 1,752 
Underground storage facilities4
27 - 75
1,046 987 
Other
5 - 50
817 797 
Assets under finance leases3
13 14 
Other non-utility property
3 - 51
21 20 
Plant, property, and equipment, gross$26,757 $24,963 
Construction work in progress1,058 879 
Accumulated depreciation and amortization(7,844)(7,272)
Total plant, property, and equipment2
$19,971 $18,570 
1A significant portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 10, Leases and Palisades Financing.
2Consumers’ plant additions were $2.0 billion for the years ended December 31, 2020 and 2019. Consumers’ plant retirements were $220 million for the year ended December 31, 2020 and $380 million for the year ended December 31, 2019. Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Accordingly, in 2019, Consumers removed from total plant, property, and
equipment $667 million, representing the projected remaining book value of the two units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 3, Regulatory Matters.
3For information regarding the amortization terms of Consumers’ assets under finance leases and other financing, see Note 10, Leases and Palisades Financing.
4Underground storage includes base natural gas of $26 million at December 31, 2020 and 2019. Base natural gas is not subject to depreciation.
Schedule of Finite-Lived Intangible Assets by Major Class Table Presented in the following table are details about CMS Energy’s and Consumers’ intangible assets:
In Millions
DescriptionAmortization
Life in Years
December 31, 2020December 31, 2019
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
CMS Energy, including Consumers
Software development
1 - 15
$883 $577 $882 $529 
Rights of way
50 - 85
197 57 180 55 
Franchises and consents
5 - 50
16 10 16 
Leasehold improvements
various2
10 
Other intangiblesvarious28 16 27 15 
Total$1,134 $667 $1,114 $615 
Consumers
Software development
3 - 15
$856 $568 $869 $521 
Rights of way
50 - 85
197 57 180 55 
Franchises and consents
5 - 50
16 10 16 
Leasehold improvements
various2
10 
Other intangiblesvarious25 16 26 15 
Total$1,104 $658 $1,100 $607 
1Consumers’ intangible asset additions were $69 million for the year ended December 31, 2020 and $67 million for the year ended December 31, 2019. Consumers’ intangible asset retirements were $65 million for the year ended December 31, 2020 and $193 million for the year ended December 31, 2019.
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 3120202019
CMS Energy, including Consumers
Utility plant assets$7,841 $7,269 
Non-utility plant assets112 91 
Consumers
Utility plant assets$7,841 $7,269 
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 31202020192018
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$902 $842 $778 
Amortization expense
Software116 121 127 
Other intangible assets
Securitized regulatory assets26 26 25 
Total depreciation and amortization expense$1,048 $992 $933 
Consumers
Depreciation expense – plant, property, and equipment$881 $827 $768 
Amortization expense
Software112 119 125 
Other intangible assets
Securitized regulatory assets26 26 25 
Total depreciation and amortization expense$1,023 $975 $921 
Schedule Of Estimated Amortization Expense For Intangibles
Presented in the following table is CMS Energy’s and Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20212022202320242025
CMS Energy, including Consumers
Intangible asset amortization expense$120 $115 $100 $89 $86 
Consumers
Intangible asset amortization expense$115 $111 $97 $86 $85 
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
20202019
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 - 125
$26,757 $24,963 
Enterprises
Independent power production1
3 - 40
1,112 403 
Other
3 - 5
EnerBank
1 - 7
37 22 
Plant, property, and equipment, gross$27,907 $25,390 
Construction work in progress1,085 896 
Accumulated depreciation and amortization(7,953)(7,360)
Total plant, property, and equipment2
$21,039 $18,926 
Consumers
Plant, property, and equipment, gross
Electric
Generation
22 - 125
$6,376 $5,942 
Distribution
20 - 75
9,130 8,519 
Transmission
46 - 75
— 113 
Other
5 - 50
1,326 1,258 
Assets under finance leases and other financing3
323 326 
Gas
Distribution
20 - 85
5,702 5,235 
Transmission
17 - 75
2,003 1,752 
Underground storage facilities4
27 - 75
1,046 987 
Other
5 - 50
817 797 
Assets under finance leases3
13 14 
Other non-utility property
3 - 51
21 20 
Plant, property, and equipment, gross$26,757 $24,963 
Construction work in progress1,058 879 
Accumulated depreciation and amortization(7,844)(7,272)
Total plant, property, and equipment2
$19,971 $18,570 
1A significant portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 10, Leases and Palisades Financing.
2Consumers’ plant additions were $2.0 billion for the years ended December 31, 2020 and 2019. Consumers’ plant retirements were $220 million for the year ended December 31, 2020 and $380 million for the year ended December 31, 2019. Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Accordingly, in 2019, Consumers removed from total plant, property, and
equipment $667 million, representing the projected remaining book value of the two units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 3, Regulatory Matters.
3For information regarding the amortization terms of Consumers’ assets under finance leases and other financing, see Note 10, Leases and Palisades Financing.
4Underground storage includes base natural gas of $26 million at December 31, 2020 and 2019. Base natural gas is not subject to depreciation.
Assets Under Finance Leases and Other Financing: Presented in the following table are further details about changes in Consumers’ assets under finance leases and other financing:
In Millions
Years Ended December 3120202019
Consumers
Balance at beginning of period$340 $309 
Additions— 26 
Net retirements and other adjustments(4)
Balance at end of period$336 $340 
Schedule of Finite-Lived Intangible Assets by Major Class Table Presented in the following table are details about CMS Energy’s and Consumers’ intangible assets:
In Millions
DescriptionAmortization
Life in Years
December 31, 2020December 31, 2019
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
CMS Energy, including Consumers
Software development
1 - 15
$883 $577 $882 $529 
Rights of way
50 - 85
197 57 180 55 
Franchises and consents
5 - 50
16 10 16 
Leasehold improvements
various2
10 
Other intangiblesvarious28 16 27 15 
Total$1,134 $667 $1,114 $615 
Consumers
Software development
3 - 15
$856 $568 $869 $521 
Rights of way
50 - 85
197 57 180 55 
Franchises and consents
5 - 50
16 10 16 
Leasehold improvements
various2
10 
Other intangiblesvarious25 16 26 15 
Total$1,104 $658 $1,100 $607 
1Consumers’ intangible asset additions were $69 million for the year ended December 31, 2020 and $67 million for the year ended December 31, 2019. Consumers’ intangible asset retirements were $65 million for the year ended December 31, 2020 and $193 million for the year ended December 31, 2019.
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 31202020192018
Electric6.9 %6.4 %6.9 %
Gas5.7 5.8 5.9 
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 3120202019
CMS Energy, including Consumers
Utility plant assets$7,841 $7,269 
Non-utility plant assets112 91 
Consumers
Utility plant assets$7,841 $7,269 
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 31202020192018
Electric utility property3.9 %3.9 %3.9 %
Gas utility property2.9 2.9 2.9 
Other property9.8 10.0 10.1 
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 31202020192018
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$902 $842 $778 
Amortization expense
Software116 121 127 
Other intangible assets
Securitized regulatory assets26 26 25 
Total depreciation and amortization expense$1,048 $992 $933 
Consumers
Depreciation expense – plant, property, and equipment$881 $827 $768 
Amortization expense
Software112 119 125 
Other intangible assets
Securitized regulatory assets26 26 25 
Total depreciation and amortization expense$1,023 $975 $921 
Schedule Of Estimated Amortization Expense For Intangibles
Presented in the following table is CMS Energy’s and Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20212022202320242025
CMS Energy, including Consumers
Intangible asset amortization expense$120 $115 $100 $89 $86 
Consumers
Intangible asset amortization expense$115 $111 $97 $86 $85 
Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2020:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3 %51.0 %various
Utility plant in service$1,743 $489 $381 
Accumulated depreciation(822)(188)(107)
Construction work in progress12 78 12 
Net investment$933 $379 $286 
v3.20.4
Leases and Palisades Financing - (Tables)
12 Months Ended
Dec. 31, 2020
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 312020201920202019
Operating leases
Right-of-use assets1
$34$47$28$40
Lease liabilities
Current lease liabilities2
9978
Non-current lease liabilities3
25372132
Finance leases
Right-of-use assets$65$71$65$71
Lease liabilities4
Current lease liabilities7676
Non-current lease liabilities53605360
Weighted-average remaining lease term (in years)
Operating leases19171814
Finance leases12121212
Weighted-average discount rate
Operating leases3.9 %3.8 %3.8 %3.7 %
Finance leases5
1.8 %1.9 %1.8 %1.9 %
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, 2020 and December 31, 2019.
5This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.
Lease Cost Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
Years Ended December 3120202019
CMS Energy, including Consumers
Operating lease costs$10 $11 
Finance lease costs
Amortization of right-of-use assets
Interest on lease liabilities17 18 
Variable lease costs94 95 
Short-term lease costs17 16 
Total lease costs$144 $146 
Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets
Interest on lease liabilities17 18 
Variable lease costs94 95 
Short-term lease costs16 16 
Total lease costs$142 $144 
Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120202019
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$11 $11 
Cash used in operating activities for finance leases17 18 
Cash used in financing activities for finance leases
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases17 18 
Cash used in financing activities for finance leases
Lessee Operating Lease Liability and Finance Liability Maturity
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non-cancelable leases:
In Millions
Finance Leases
December 31, 2020Operating LeasesPipelines and PPAsOtherTotal
CMS Energy, including Consumers
2021$10 $17 $$22 
202214 19 
202313 18 
202413 16 
202513 14 
2026 and thereafter34 66 11 77 
Total minimum lease payments$52 $136 $30 $166 
Less discount18 103 106 
Present value of minimum lease payments$34 $33 $27 $60 
Consumers
2021$$17 $$22 
202214 19 
202313 18 
202413 16 
202513 14 
2026 and thereafter27 66 11 77 
Total minimum lease payments$43 $136 $30 $166 
Less discount15 103 106 
Present value of minimum lease payments$28 $33 $27 $60 
Lessor, Operating Lease, Payments to be Received, Maturity
Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases:
In Millions
December 31, 2020
2021$54 
202248 
202343 
202443 
202544 
2026 and thereafter18 
Total minimum lease payments$250 
Debt Maturities At December 31, 2020, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20212022202320242025
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$200 $— $— $250 $250 
Consumers
364 28 654 332 31 
CMS Enterprises, including subsidiaries10 51 
EnerBank915 572 477 325 244 
Total CMS Energy$1,486 $608 $1,140 $917 $576 
Consumers
Long-term debt$364 $28 $654 $332 $31 
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 312020201920202019
Operating leases
Right-of-use assets1
$34$47$28$40
Lease liabilities
Current lease liabilities2
9978
Non-current lease liabilities3
25372132
Finance leases
Right-of-use assets$65$71$65$71
Lease liabilities4
Current lease liabilities7676
Non-current lease liabilities53605360
Weighted-average remaining lease term (in years)
Operating leases19171814
Finance leases12121212
Weighted-average discount rate
Operating leases3.9 %3.8 %3.8 %3.7 %
Finance leases5
1.8 %1.9 %1.8 %1.9 %
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, 2020 and December 31, 2019.
5This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.
Lease Cost Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:
In Millions
Years Ended December 3120202019
CMS Energy, including Consumers
Operating lease costs$10 $11 
Finance lease costs
Amortization of right-of-use assets
Interest on lease liabilities17 18 
Variable lease costs94 95 
Short-term lease costs17 16 
Total lease costs$144 $146 
Consumers
Operating lease costs$$
Finance lease costs
Amortization of right-of-use assets
Interest on lease liabilities17 18 
Variable lease costs94 95 
Short-term lease costs16 16 
Total lease costs$142 $144 
Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities:
In Millions
Years Ended December 3120202019
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$11 $11 
Cash used in operating activities for finance leases17 18 
Cash used in financing activities for finance leases
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases$$
Cash used in operating activities for finance leases17 18 
Cash used in financing activities for finance leases
Lessee Operating Lease Liability and Finance Liability Maturity
Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non-cancelable leases:
In Millions
Finance Leases
December 31, 2020Operating LeasesPipelines and PPAsOtherTotal
CMS Energy, including Consumers
2021$10 $17 $$22 
202214 19 
202313 18 
202413 16 
202513 14 
2026 and thereafter34 66 11 77 
Total minimum lease payments$52 $136 $30 $166 
Less discount18 103 106 
Present value of minimum lease payments$34 $33 $27 $60 
Consumers
2021$$17 $$22 
202214 19 
202313 18 
202413 16 
202513 14 
2026 and thereafter27 66 11 77 
Total minimum lease payments$43 $136 $30 $166 
Less discount15 103 106 
Present value of minimum lease payments$28 $33 $27 $60 
Debt Maturities At December 31, 2020, the aggregate annual maturities for long-term debt for the next five years, based on stated maturities or earlier put dates, were:
In Millions
20212022202320242025
CMS Energy, including Consumers
Long-term debt
CMS Energy, parent only$200 $— $— $250 $250 
Consumers
364 28 654 332 31 
CMS Enterprises, including subsidiaries10 51 
EnerBank915 572 477 325 244 
Total CMS Energy$1,486 $608 $1,140 $917 $576 
Consumers
Long-term debt$364 $28 $654 $332 $31 
Presented in the following table are the minimum Palisades PPA payments included in the financing obligation:
In Millions
December 31, 2020
2021$14 
2022
Total minimum payments$17 
Less discount
Financing obligation$16 
Less current portion13 
Non-current portion$
v3.20.4
Asset Retirement Obligations (Tables)
12 Months Ended
Dec. 31, 2020
Asset Retirement Obligations [Line Items]  
Schedule of Asset Retirement Obligations
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
Company and ARO DescriptionIn-Service DateLong-Lived Assets
CMS Energy, including Consumers
Closure of coal ash disposal areasvariousGenerating plants coal ash areas
Gas distribution cut, purge, and capvariousGas distribution mains and services
Asbestos abatement1973Electric and gas utility plant
Closure of renewable generation assetsvariousWind and solar generation facilities
Gas wells plug and abandonvariousGas transmission and storage
Consumers
Closure of coal ash disposal areasvariousGenerating plants coal ash areas
Gas distribution cut, purge, and capvariousGas distribution mains and services
Asbestos abatement1973Electric and gas utility plant
Closure of renewable generation assetsvariousWind and solar generation facilities
Gas wells plug and abandonvariousGas transmission and storage
Schedule of Change in Asset Retirement Obligation
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2019IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2020
CMS Energy, including Consumers
Consumers$474 $46 $(41)$23 $28 $530 
Renewable generation assets19 — — 23 
Total CMS Energy$477 $65 $(41)$24 $28 $553 
Consumers
Coal ash disposal areas$166 $— $(24)$$— $148 
Gas distribution cut, purge, and cap231 (5)13 — 240 
Asbestos abatement34 — — — 36 
Renewable generation assets21 24 — 28 74 
Gas wells plug and abandon22 16 (7)— 32 
Cable under Straits of Mackinac1
— (5)— — — 
Total Consumers$474 $46 $(41)$23 $28 $530 
1    For further details, see Note 4, Contingencies and Commitments—Consumers Electric Utility Contingencies.
In Millions
Company and ARO DescriptionARO Liability 12/31/2018IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2019
CMS Energy, including Consumers
Consumers$428 $55 $(37)$21 $$474 
Gas treating plant and gas wells— (1)— — — 
Renewable generation assets— — — — 
Total CMS Energy$432 $55 $(38)$21 $$477 
Consumers
Coal ash disposal areas$179 $— $(27)$$$166 
Gas distribution cut, purge, and cap205 22 (8)12 — 231 
Asbestos abatement33 — (1)— 34 
Renewable generation assets11 10 — — — 21 
Gas wells plug and abandon— 23 (1)— — 22 
Total Consumers$428 $55 $(37)$21 $$474 
Consumers Energy Company  
Asset Retirement Obligations [Line Items]  
Schedule of Asset Retirement Obligations
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
Company and ARO DescriptionIn-Service DateLong-Lived Assets
CMS Energy, including Consumers
Closure of coal ash disposal areasvariousGenerating plants coal ash areas
Gas distribution cut, purge, and capvariousGas distribution mains and services
Asbestos abatement1973Electric and gas utility plant
Closure of renewable generation assetsvariousWind and solar generation facilities
Gas wells plug and abandonvariousGas transmission and storage
Consumers
Closure of coal ash disposal areasvariousGenerating plants coal ash areas
Gas distribution cut, purge, and capvariousGas distribution mains and services
Asbestos abatement1973Electric and gas utility plant
Closure of renewable generation assetsvariousWind and solar generation facilities
Gas wells plug and abandonvariousGas transmission and storage
Schedule of Change in Asset Retirement Obligation
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2019IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2020
CMS Energy, including Consumers
Consumers$474 $46 $(41)$23 $28 $530 
Renewable generation assets19 — — 23 
Total CMS Energy$477 $65 $(41)$24 $28 $553 
Consumers
Coal ash disposal areas$166 $— $(24)$$— $148 
Gas distribution cut, purge, and cap231 (5)13 — 240 
Asbestos abatement34 — — — 36 
Renewable generation assets21 24 — 28 74 
Gas wells plug and abandon22 16 (7)— 32 
Cable under Straits of Mackinac1
— (5)— — — 
Total Consumers$474 $46 $(41)$23 $28 $530 
1    For further details, see Note 4, Contingencies and Commitments—Consumers Electric Utility Contingencies.
In Millions
Company and ARO DescriptionARO Liability 12/31/2018IncurredSettledAccretionCash Flow RevisionsARO Liability 12/31/2019
CMS Energy, including Consumers
Consumers$428 $55 $(37)$21 $$474 
Gas treating plant and gas wells— (1)— — — 
Renewable generation assets— — — — 
Total CMS Energy$432 $55 $(38)$21 $$477 
Consumers
Coal ash disposal areas$179 $— $(27)$$$166 
Gas distribution cut, purge, and cap205 22 (8)12 — 231 
Asbestos abatement33 — (1)— 34 
Renewable generation assets11 10 — — — 21 
Gas wells plug and abandon— 23 (1)— — 22 
Total Consumers$428 $55 $(37)$21 $$474 
v3.20.4
Retirement Benefits (Tables)
12 Months Ended
Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]  
Schedule Of SERP Trust Assets, ABO And Contributions Presented in the following table are the fair values of trust assets, ABO, and contributions for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120202019
CMS Energy, including Consumers
Trust assets$146 $143 
ABO159 149 
Contributions— 
Consumers
Trust assets$107 $104 
ABO115 107 
Contributions— 
Schedule Of Assumptions Used Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefits plans to determine benefit obligations and net periodic benefit cost:
December 31202020192018
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A2.73 %3.37 %4.48 %
DB Pension Plan B2.41 3.17 4.32 
DB SERP2.40 3.15 4.32 
OPEB Plan2.69 3.32 4.42 
Rate of compensation increase
DB Pension Plan A3.70 3.50 3.50 
DB SERP5.50 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A3.44 %4.55 %3.85 %
DB SERP3.46 4.58 3.83 
OPEB Plan3.57 4.63 3.93 
Interest cost discount rate2,3
DB Pension Plan A2.92 4.08 3.39 
DB Pension Plan B2.74 3.93 3.24 
DB SERP2.74 3.94 3.26 
OPEB Plan2.88 4.03 3.35 
Expected long-term rate of return on plan assets4
DB Pension Plans6.75 7.00 7.00 
OPEB Plan6.75 7.00 7.00 
Rate of compensation increase
DB Pension Plan A3.50 3.50 3.50 
DB SERP5.50 5.50 5.50 
1The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table for 2020 and 2019 and the RP-2014 Mortality Table for 2018, with improvement scales MP-2020 for 2020, MP-2019 for 2019, and MP-2018 for 2018. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table for 2020 and the RP-2014 Mortality Table for 2019 and 2018, with improvement scales MP-2019 for 2020, MP-2018 for 2019, and MP-2017 for 2018.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
4CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the
expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 6.75 percent in 2020. The actual return (loss) on the assets of the DB Pension Plans was 13.6 percent in 2020, 21.0 percent in 2019, and (6.7) percent in 2018.
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 benefits plans:
In Millions
DB Pension Plans and DB SERPOPEB Plan
Years Ended December 31202020192018202020192018
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$50 $41 $48 $16 $14 $17 
Interest cost83 103 95 33 41 34 
Settlement loss— — — — — 
Expected return on plan assets(191)(162)(149)(100)(88)(97)
Amortization of:
Net loss95 50 76 15 26 15 
Prior service cost (credit)(56)(62)(67)
Settlement loss— — — — — 
Net periodic cost (credit)$41 $33 $73 $(92)$(69)$(98)
Consumers
Net periodic cost (credit)
Service cost$49 $40 $47 $15 $13 $16 
Interest cost78 97 88 31 40 33 
Expected return on plan assets(181)(153)(139)(93)(82)(91)
Amortization of:
Net loss90 47 73 15 26 16 
Prior service cost (credit)(54)(61)(65)
Settlement loss— — — — — 
Net periodic cost (credit)$39 $32 $72 $(86)$(64)$(91)
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 benefits plans with their retirement benefits plans’ liabilities:
In Millions
DB Pension PlansDB SERPOPEB Plan
Years Ended December 31202020192020201920202019
CMS Energy, including Consumers
Benefit obligation at beginning of period$2,973 $2,512 $150 $140 $1,165 $1,045 
Service cost50 41 — — 16 14 
Interest cost79 98 33 41 
Plan amendments24 — — — — — 
Actuarial loss355 
1
476 
1
16 15 39 
1
110 
1
Benefits paid(215)(154)(10)(10)(48)(45)
Benefit obligation at end of period$3,266 $2,973 $160 $150 $1,205 $1,165 
Plan assets at fair value at beginning of period$2,546 $2,247 $— $— $1,509 $1,280 
Actual return on plan assets371 453 — — 182 273 
Company contribution700 — 10 10 — 
Actual benefits paid(215)(154)(10)(10)(47)(44)
Plan assets at fair value at end of period$3,402 $2,546 $— $— $1,645 $1,509 
Funded status$136 
2
$(427)
2
$(160)$(150)$440 $344 
Consumers
Benefit obligation at beginning of period$109 $101 $1,120 $1,004 
Service cost— — 15 13 
Interest cost31 40 
Actuarial loss12 11 37 
1
106 
1
Benefits paid(7)(7)(45)(43)
Benefit obligation at end of period$117 $109 $1,158 $1,120 
Plan assets at fair value at beginning of period$— $— $1,410 $1,197 
Actual return on plan assets— — 169 255 
Company contribution— 
Actual benefits paid(7)(7)(45)(42)
Plan assets at fair value at end of period$— $— $1,535 $1,410 
Funded status$(117)$(109)$377 $290 
1The actuarial loss for 2020 and 2019 for the DB Pension Plans was primarily the result of lower discount rates and lower interest rates used to calculate the value of lump-sum payments. The actuarial loss for 2020 and 2019 for the OPEB Plan was primarily the result of lower discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $138 million at December 31, 2020 and $(408) million at December 31, 2019.
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 3120202019
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$136 $104 
OPEB Plan440 344 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB Pension Plans— 531 
DB SERP150 140 
Consumers
Non-current assets
DB Pension Plans$138 $109 
OPEB Plan377 290 
Current liabilities
DB SERP
Non-current liabilities
DB Pension Plans— 517 
DB SERP110 102 
Schedule Of Accumulated And Projected Benefit Obligations At December 31, 2019, the PBO and ABO for one of the defined benefit pension plans exceeded plan assets; presented in the following table is information related to that plan:
In Millions
December 312019
CMS Energy, including Consumers
PBO$1,736 
ABO1,398 
Fair value of plan assets1,205 
Schedule Of Net Periodic Benefit Cost Not Yet Recognized For additional details on regulatory assets, see Note 3, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312020201920202019
CMS Energy, including Consumers
Regulatory assets
Net loss$1,194 $1,114 $254 $308 
Prior service cost (credit)29 (246)(300)
Regulatory assets$1,223 $1,122 $$
AOCI
Net loss (gain)120 105 (10)(6)
Prior service cost (credit)— (6)(8)
Total amounts recognized in regulatory assets and AOCI$1,344 $1,227 $(8)$(6)
Consumers
Regulatory assets
Net loss$1,194 $1,114 $254 $308 
Prior service cost (credit)29 (246)(300)
Regulatory assets$1,223 $1,122 $$
AOCI
Net loss47 36 — — 
Total amounts recognized in regulatory assets and AOCI$1,270 $1,158 $$
Schedule Of Allocation Of Plan Assets For additional details regarding the fair value hierarchy, see Note 6, Fair Value Measurements.
In Millions
DB Pension Plans
December 31, 2020December 31, 2019
TotalLevel 1Level 2TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$115 $115 $— $44 $44 $— 
U.S. government and agencies securities150 — 150 66 — 66 
Corporate debt540 — 540 493 — 493 
State and municipal bonds11 — 11 17 — 17 
Foreign corporate bonds41 — 41 33 — 33 
Mutual funds971 971 — 640 640 — 
$1,828 $1,086 $742 $1,293 $684 $609 
Pooled funds1,574 1,253 
Total$3,402 $2,546 
In Millions
OPEB Plan
December 31, 2020December 31, 2019
TotalLevel 1Level 2TotalLevel 1Level 2
CMS Energy, including Consumers
Cash and short-term investments$33 $33 $— $$$— 
U.S. government and agencies securities18 — 18 10 — 10 
Corporate debt64 — 64 71 — 71 
State and municipal bonds— — 
Foreign corporate bonds— — 
Common stocks66 66 — 55 55 — 
Mutual funds807 807 — 713 713 — 
$995 $906 $89 $865 $777 $88 
Pooled funds650 644 
Total$1,645 $1,509 
Schedule Of Asset Allocation
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, 2020:
DB Pension PlansOPEB Plan
Equity securities55.0 %50.0 %
Fixed-income securities34.0 30.0 
Multi-asset investments11.0 20.0 
100.0 %100.0 %
Schedule Of Plan Contributions Presented in the following table are the contributions to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan:
In Millions
Years Ended December 3120202019
CMS Energy, including Consumers
DB Pension Plans$700 $— 
OPEB Plan— 
Consumers
DB Pension Plans$682 $— 
OPEB Plan— 
Schedule Of Expected Benefit Payments Presented in the following table are the expected benefit payments for each of the next five years and the five-year period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2021$191 $10 $52 
2022188 10 54 
2023184 10 56 
2024182 10 57 
2025182 10 58 
2026-2030890 46 299 
Consumers
2021$181 $$50 
2022178 52 
2023175 53 
2024173 55 
2025172 56 
2026-2030845 32 286 
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Schedule Of SERP Trust Assets, ABO And Contributions Presented in the following table are the fair values of trust assets, ABO, and contributions for CMS Energy’s and Consumers’ DB SERP:
In Millions
Years Ended December 3120202019
CMS Energy, including Consumers
Trust assets$146 $143 
ABO159 149 
Contributions— 
Consumers
Trust assets$107 $104 
ABO115 107 
Contributions— 
Schedule Of Assumptions Used Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefits plans to determine benefit obligations and net periodic benefit cost:
December 31202020192018
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A2.73 %3.37 %4.48 %
DB Pension Plan B2.41 3.17 4.32 
DB SERP2.40 3.15 4.32 
OPEB Plan2.69 3.32 4.42 
Rate of compensation increase
DB Pension Plan A3.70 3.50 3.50 
DB SERP5.50 5.50 5.50 
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan A3.44 %4.55 %3.85 %
DB SERP3.46 4.58 3.83 
OPEB Plan3.57 4.63 3.93 
Interest cost discount rate2,3
DB Pension Plan A2.92 4.08 3.39 
DB Pension Plan B2.74 3.93 3.24 
DB SERP2.74 3.94 3.26 
OPEB Plan2.88 4.03 3.35 
Expected long-term rate of return on plan assets4
DB Pension Plans6.75 7.00 7.00 
OPEB Plan6.75 7.00 7.00 
Rate of compensation increase
DB Pension Plan A3.50 3.50 3.50 
DB SERP5.50 5.50 5.50 
1The mortality assumption for benefit obligations was based on the Pri-2012 Mortality Table for 2020 and 2019 and the RP-2014 Mortality Table for 2018, with improvement scales MP-2020 for 2020, MP-2019 for 2019, and MP-2018 for 2018. The mortality assumption for net periodic benefit cost was based on the Pri-2012 Mortality Table for 2020 and the RP-2014 Mortality Table for 2019 and 2018, with improvement scales MP-2019 for 2020, MP-2018 for 2019, and MP-2017 for 2018.
2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.
3CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.
4CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the
expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 6.75 percent in 2020. The actual return (loss) on the assets of the DB Pension Plans was 13.6 percent in 2020, 21.0 percent in 2019, and (6.7) percent in 2018.
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 benefits plans:
In Millions
DB Pension Plans and DB SERPOPEB Plan
Years Ended December 31202020192018202020192018
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$50 $41 $48 $16 $14 $17 
Interest cost83 103 95 33 41 34 
Settlement loss— — — — — 
Expected return on plan assets(191)(162)(149)(100)(88)(97)
Amortization of:
Net loss95 50 76 15 26 15 
Prior service cost (credit)(56)(62)(67)
Settlement loss— — — — — 
Net periodic cost (credit)$41 $33 $73 $(92)$(69)$(98)
Consumers
Net periodic cost (credit)
Service cost$49 $40 $47 $15 $13 $16 
Interest cost78 97 88 31 40 33 
Expected return on plan assets(181)(153)(139)(93)(82)(91)
Amortization of:
Net loss90 47 73 15 26 16 
Prior service cost (credit)(54)(61)(65)
Settlement loss— — — — — 
Net periodic cost (credit)$39 $32 $72 $(86)$(64)$(91)
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 benefits plans with their retirement benefits plans’ liabilities:
In Millions
DB Pension PlansDB SERPOPEB Plan
Years Ended December 31202020192020201920202019
CMS Energy, including Consumers
Benefit obligation at beginning of period$2,973 $2,512 $150 $140 $1,165 $1,045 
Service cost50 41 — — 16 14 
Interest cost79 98 33 41 
Plan amendments24 — — — — — 
Actuarial loss355 
1
476 
1
16 15 39 
1
110 
1
Benefits paid(215)(154)(10)(10)(48)(45)
Benefit obligation at end of period$3,266 $2,973 $160 $150 $1,205 $1,165 
Plan assets at fair value at beginning of period$2,546 $2,247 $— $— $1,509 $1,280 
Actual return on plan assets371 453 — — 182 273 
Company contribution700 — 10 10 — 
Actual benefits paid(215)(154)(10)(10)(47)(44)
Plan assets at fair value at end of period$3,402 $2,546 $— $— $1,645 $1,509 
Funded status$136 
2
$(427)
2
$(160)$(150)$440 $344 
Consumers
Benefit obligation at beginning of period$109 $101 $1,120 $1,004 
Service cost— — 15 13 
Interest cost31 40 
Actuarial loss12 11 37 
1
106 
1
Benefits paid(7)(7)(45)(43)
Benefit obligation at end of period$117 $109 $1,158 $1,120 
Plan assets at fair value at beginning of period$— $— $1,410 $1,197 
Actual return on plan assets— — 169 255 
Company contribution— 
Actual benefits paid(7)(7)(45)(42)
Plan assets at fair value at end of period$— $— $1,535 $1,410 
Funded status$(117)$(109)$377 $290 
1The actuarial loss for 2020 and 2019 for the DB Pension Plans was primarily the result of lower discount rates and lower interest rates used to calculate the value of lump-sum payments. The actuarial loss for 2020 and 2019 for the OPEB Plan was primarily the result of lower discount rates.
2The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $138 million at December 31, 2020 and $(408) million at December 31, 2019.
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 3120202019
CMS Energy, including Consumers
Non-current assets
DB Pension Plans$136 $104 
OPEB Plan440 344 
Current liabilities
DB SERP10 10 
Non-current liabilities
DB Pension Plans— 531 
DB SERP150 140 
Consumers
Non-current assets
DB Pension Plans$138 $109 
OPEB Plan377 290 
Current liabilities
DB SERP
Non-current liabilities
DB Pension Plans— 517 
DB SERP110 102 
Schedule Of Net Periodic Benefit Cost Not Yet Recognized For additional details on regulatory assets, see Note 3, Regulatory Matters.
In Millions
DB Pension Plans and DB SERPOPEB Plan
December 312020201920202019
CMS Energy, including Consumers
Regulatory assets
Net loss$1,194 $1,114 $254 $308 
Prior service cost (credit)29 (246)(300)
Regulatory assets$1,223 $1,122 $$
AOCI
Net loss (gain)120 105 (10)(6)
Prior service cost (credit)— (6)(8)
Total amounts recognized in regulatory assets and AOCI$1,344 $1,227 $(8)$(6)
Consumers
Regulatory assets
Net loss$1,194 $1,114 $254 $308 
Prior service cost (credit)29 (246)(300)
Regulatory assets$1,223 $1,122 $$
AOCI
Net loss47 36 — — 
Total amounts recognized in regulatory assets and AOCI$1,270 $1,158 $$
Schedule Of Plan Contributions Presented in the following table are the contributions to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan:
In Millions
Years Ended December 3120202019
CMS Energy, including Consumers
DB Pension Plans$700 $— 
OPEB Plan— 
Consumers
DB Pension Plans$682 $— 
OPEB Plan— 
Schedule Of Expected Benefit Payments Presented in the following table are the expected benefit payments for each of the next five years and the five-year period thereafter:
In Millions
DB Pension PlansDB SERPOPEB Plan
CMS Energy, including Consumers
2021$191 $10 $52 
2022188 10 54 
2023184 10 56 
2024182 10 57 
2025182 10 58 
2026-2030890 46 299 
Consumers
2021$181 $$50 
2022178 52 
2023175 53 
2024173 55 
2025172 56 
2026-2030845 32 286 
v3.20.4
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2020
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, 2020Number of
Shares
Weighted-Average
Grant Date Fair Value
per Share
Number of
Shares
Weighted-Average
Grant Date Fair Value
per Share
Nonvested at beginning of period1,186,962 $44.56 1,138,182 $44.57 
Granted
Restricted stock512,326 45.56 490,346 45.53 
Restricted stock units15,074 49.76 14,409 49.70 
Vested
Restricted stock(551,897)30.98 (532,833)31.04 
Restricted stock units(15,234)49.24 (14,517)49.50 
Forfeited – restricted stock(329,874)51.22 (314,056)51.22 
Nonvested at end of period817,357 $51.68 781,531 $51.73 
Year Ended December 31, 2020CMS Energy, including
Consumers
Consumers
Granted
Time-lapse awards106,520 101,439 
Market-based awards123,246 118,011 
Performance-based awards123,246 118,011 
Restricted stock units13,405 12,800 
Dividends on market-based awards17,937 17,152 
Dividends on performance-based awards17,505 16,736 
Dividends on restricted stock units1,669 1,609 
Additional market-based shares based on achievement of condition71,678 68,857 
Additional performance-based shares based on achievement of condition52,194 50,140 
Total granted527,400 504,755 
Schedule of Share-based Payment Award, Restricted Stock, Valuation Assumptions
Presented in the following table are the most significant assumptions used to estimate the fair value of the market-based restricted stock awards:
Years Ended December 31202020192018
Expected volatility14.2 %14.9 %16.7 %
Expected dividend yield2.4 2.8 2.8 
Risk-free rate1.6 2.5 2.1 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$45.56 $43.57 $26.49 
Restricted stock units granted49.76 50.35 41.77 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$45.53 $43.57 $26.51 
Restricted stock units granted49.70 51.15 42.01 
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Fair value of shares that vested during the year$22 $26 $27 
Compensation expense recognized11 22 17 
Income tax benefit recognized
Consumers
Fair value of shares that vested during the year$21 $25 $26 
Compensation expense recognized10 21 16 
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, 2020Number of
Shares
Weighted-Average
Grant Date Fair Value
per Share
Number of
Shares
Weighted-Average
Grant Date Fair Value
per Share
Nonvested at beginning of period1,186,962 $44.56 1,138,182 $44.57 
Granted
Restricted stock512,326 45.56 490,346 45.53 
Restricted stock units15,074 49.76 14,409 49.70 
Vested
Restricted stock(551,897)30.98 (532,833)31.04 
Restricted stock units(15,234)49.24 (14,517)49.50 
Forfeited – restricted stock(329,874)51.22 (314,056)51.22 
Nonvested at end of period817,357 $51.68 781,531 $51.73 
Year Ended December 31, 2020CMS Energy, including
Consumers
Consumers
Granted
Time-lapse awards106,520 101,439 
Market-based awards123,246 118,011 
Performance-based awards123,246 118,011 
Restricted stock units13,405 12,800 
Dividends on market-based awards17,937 17,152 
Dividends on performance-based awards17,505 16,736 
Dividends on restricted stock units1,669 1,609 
Additional market-based shares based on achievement of condition71,678 68,857 
Additional performance-based shares based on achievement of condition52,194 50,140 
Total granted527,400 504,755 
Schedule of Share-based Payment Award, Restricted Stock, Valuation Assumptions
Presented in the following table are the most significant assumptions used to estimate the fair value of the market-based restricted stock awards:
Years Ended December 31202020192018
Expected volatility14.2 %14.9 %16.7 %
Expected dividend yield2.4 2.8 2.8 
Risk-free rate1.6 2.5 2.1 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$45.56 $43.57 $26.49 
Restricted stock units granted49.76 50.35 41.77 
Consumers
Weighted-average grant-date fair value per share
Restricted stock granted$45.53 $43.57 $26.51 
Restricted stock units granted49.70 51.15 42.01 
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan
Presented in the following table are amounts related to restricted stock awards and restricted stock units:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Fair value of shares that vested during the year$22 $26 $27 
Compensation expense recognized11 22 17 
Income tax benefit recognized
Consumers
Fair value of shares that vested during the year$21 $25 $26 
Compensation expense recognized10 21 16 
Income tax benefit recognized
v3.20.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
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 31202020192018
CMS Energy, including Consumers
Income from continuing operations before income taxes$885 $829 $774 
Income tax expense at statutory rate186 174 163 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect46 48 46 
TCJA excess deferred taxes1
(35)(31)(26)
Production tax credits(28)(20)(14)
Accelerated flow-through of regulatory tax benefits2
(13)(13)(39)
Research and development tax credits, net3
(11)(2)(11)
Refund of alternative minimum tax sequestration4
(9)— — 
Other, net(3)(9)(4)
Income tax expense$133 $147 $115 
Effective tax rate15.0 %17.7 %14.9 %
Consumers
Income from continuing operations before income taxes$989 $928 $847 
Income tax expense at statutory rate208 195 178 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
47 53 51 
TCJA excess deferred taxes1
(35)(31)(26)
Accelerated flow-through of regulatory tax benefits2
(13)(13)(39)
Production tax credits(19)(12)(12)
Research and development tax credits, net3
(11)(2)(11)
Other, net(4)(5)
Income tax expense$173 $185 $142 
Effective tax rate17.5 %19.9 %16.8 %
1In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a net $1.6 billion regulatory liability. As a result of an order received in September 2019, Consumers began refunding these excess deferred taxes to customers. In September 2020, the MPSC approved a settlement agreement in Consumers’ 2019 gas rate case including Consumers’ request to accelerate the amortization of its regulatory liability associated with the unprotected, nonproperty-related excess deferred income taxes resulting from the TCJA. Consumers will increase its TCJA amortization to fully refund this regulatory liability during the period October 2021 through September 2022 instead of the previous amortization schedule through 2029.
2In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow-through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed
in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018 and the gas portion expected to continue through 2025. In September 2020, the MPSC approved a settlement agreement in Consumers’ 2019 gas rate case including Consumers’ request to accelerate the amortization of this income tax benefit to fully amortize the balance during the period October 2021 through September 2022 instead of the previous amortization schedule through 2025.
3In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers. Also, in March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, CMS Energy and Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions, at that time.
4In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.
Significant Components Of Income Tax Expense
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Current income taxes
Federal$(35)$(31)$(67)
State and local(2)28 — 
$(37)$(3)$(67)
Deferred income taxes
Federal115 97 112 
State and local60 32 58 
$175 $129 $170 
Deferred income tax credit(5)21 12 
Tax expense$133 $147 $115 
Consumers
Current income taxes
Federal$$107 $
State and local(7)41 13 
$(4)$148 $19 
Deferred income taxes
Federal115 (10)60 
State and local67 26 51 
$182 $16 $111 
Deferred income tax credit(5)21 12 
Tax expense$173 $185 $142 
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 3120202019
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$483 $239 
Net regulatory tax liability372 385 
Reserves and accruals62 43 
Total deferred income tax assets$917 $667 
Valuation allowance(1)(2)
Total deferred income tax assets, net of valuation allowance$916 $665 
Deferred income tax liabilities
Plant, property, and equipment$(2,287)$(2,033)
Employee benefits(364)(172)
Securitized costs(53)(59)
Gas inventory(24)(32)
Other(51)(24)
Total deferred income tax liabilities$(2,779)$(2,320)
Total net deferred income tax liabilities$(1,863)$(1,655)
Consumers
Deferred income tax assets
Net regulatory tax liability$372 $385 
Tax loss and credit carryforwards216 20 
Reserves and accruals24 24 
Total deferred income tax assets$612 $429 
Deferred income tax liabilities
Plant, property, and equipment$(2,230)$(1,995)
Employee benefits(365)(178)
Securitized costs(53)(59)
Gas inventory(24)(32)
Other(34)(29)
Total deferred income tax liabilities$(2,706)$(2,293)
Total net deferred income tax liabilities$(2,094)$(1,864)
Loss And Credit Carryforwards
Presented in the following table are the tax loss and credit carryforwards at December 31, 2020:
In Millions
Gross AmountTax AttributeExpiration
CMS Energy, including Consumers
Federal net operating loss carryforwards$747 $157 None
State net operating loss carryforwards1,241 78 2030
Local net operating loss carryforwards346 2024 – 2040
General business credits245 245 2026 – 2040
Total tax attributes$483 
Consumers
Federal net operating loss carryforwards$505 $106 None
State net operating loss carryforwards1,026 61 2030
General business credits49 49 2027 – 2040
Total tax attributes$216 
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 31202020192018
CMS Energy, including Consumers
Balance at beginning of period$23 $19 $14 
Additions for current-year tax positions
Additions for prior-year tax positions
Reductions for prior-year tax positions(2)— — 
Balance at end of period$25 $23 $19 
Consumers
Balance at beginning of period$34 $28 $21 
Additions for current-year tax positions
Additions for prior-year tax positions
Reductions for prior-year tax positions(8)— — 
Balance at end of period$31 $34 $28 
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 31202020192018
CMS Energy, including Consumers
Income from continuing operations before income taxes$885 $829 $774 
Income tax expense at statutory rate186 174 163 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect46 48 46 
TCJA excess deferred taxes1
(35)(31)(26)
Production tax credits(28)(20)(14)
Accelerated flow-through of regulatory tax benefits2
(13)(13)(39)
Research and development tax credits, net3
(11)(2)(11)
Refund of alternative minimum tax sequestration4
(9)— — 
Other, net(3)(9)(4)
Income tax expense$133 $147 $115 
Effective tax rate15.0 %17.7 %14.9 %
Consumers
Income from continuing operations before income taxes$989 $928 $847 
Income tax expense at statutory rate208 195 178 
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
47 53 51 
TCJA excess deferred taxes1
(35)(31)(26)
Accelerated flow-through of regulatory tax benefits2
(13)(13)(39)
Production tax credits(19)(12)(12)
Research and development tax credits, net3
(11)(2)(11)
Other, net(4)(5)
Income tax expense$173 $185 $142 
Effective tax rate17.5 %19.9 %16.8 %
1In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a net $1.6 billion regulatory liability. As a result of an order received in September 2019, Consumers began refunding these excess deferred taxes to customers. In September 2020, the MPSC approved a settlement agreement in Consumers’ 2019 gas rate case including Consumers’ request to accelerate the amortization of its regulatory liability associated with the unprotected, nonproperty-related excess deferred income taxes resulting from the TCJA. Consumers will increase its TCJA amortization to fully refund this regulatory liability during the period October 2021 through September 2022 instead of the previous amortization schedule through 2029.
2In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow-through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed
in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018 and the gas portion expected to continue through 2025. In September 2020, the MPSC approved a settlement agreement in Consumers’ 2019 gas rate case including Consumers’ request to accelerate the amortization of this income tax benefit to fully amortize the balance during the period October 2021 through September 2022 instead of the previous amortization schedule through 2025.
3In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers. Also, in March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, CMS Energy and Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions, at that time.
4In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020.
Significant Components Of Income Tax Expense
Presented in the following table are the significant components of income tax expense on continuing operations:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Current income taxes
Federal$(35)$(31)$(67)
State and local(2)28 — 
$(37)$(3)$(67)
Deferred income taxes
Federal115 97 112 
State and local60 32 58 
$175 $129 $170 
Deferred income tax credit(5)21 12 
Tax expense$133 $147 $115 
Consumers
Current income taxes
Federal$$107 $
State and local(7)41 13 
$(4)$148 $19 
Deferred income taxes
Federal115 (10)60 
State and local67 26 51 
$182 $16 $111 
Deferred income tax credit(5)21 12 
Tax expense$173 $185 $142 
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 3120202019
CMS Energy, including Consumers
Deferred income tax assets
Tax loss and credit carryforwards$483 $239 
Net regulatory tax liability372 385 
Reserves and accruals62 43 
Total deferred income tax assets$917 $667 
Valuation allowance(1)(2)
Total deferred income tax assets, net of valuation allowance$916 $665 
Deferred income tax liabilities
Plant, property, and equipment$(2,287)$(2,033)
Employee benefits(364)(172)
Securitized costs(53)(59)
Gas inventory(24)(32)
Other(51)(24)
Total deferred income tax liabilities$(2,779)$(2,320)
Total net deferred income tax liabilities$(1,863)$(1,655)
Consumers
Deferred income tax assets
Net regulatory tax liability$372 $385 
Tax loss and credit carryforwards216 20 
Reserves and accruals24 24 
Total deferred income tax assets$612 $429 
Deferred income tax liabilities
Plant, property, and equipment$(2,230)$(1,995)
Employee benefits(365)(178)
Securitized costs(53)(59)
Gas inventory(24)(32)
Other(34)(29)
Total deferred income tax liabilities$(2,706)$(2,293)
Total net deferred income tax liabilities$(2,094)$(1,864)
Loss And Credit Carryforwards
Presented in the following table are the tax loss and credit carryforwards at December 31, 2020:
In Millions
Gross AmountTax AttributeExpiration
CMS Energy, including Consumers
Federal net operating loss carryforwards$747 $157 None
State net operating loss carryforwards1,241 78 2030
Local net operating loss carryforwards346 2024 – 2040
General business credits245 245 2026 – 2040
Total tax attributes$483 
Consumers
Federal net operating loss carryforwards$505 $106 None
State net operating loss carryforwards1,026 61 2030
General business credits49 49 2027 – 2040
Total tax attributes$216 
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 31202020192018
CMS Energy, including Consumers
Balance at beginning of period$23 $19 $14 
Additions for current-year tax positions
Additions for prior-year tax positions
Reductions for prior-year tax positions(2)— — 
Balance at end of period$25 $23 $19 
Consumers
Balance at beginning of period$34 $28 $21 
Additions for current-year tax positions
Additions for prior-year tax positions
Reductions for prior-year tax positions(8)— — 
Balance at end of period$31 $34 $28 
v3.20.4
Earnings Per Share - CMS Energy (Tables)
12 Months Ended
Dec. 31, 2020
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 net income:
In Millions, Except Per Share Amounts
Years Ended December 31202020192018
Income available to common stockholders
Net income$752 $682 $659 
Less income (loss) attributable to noncontrolling interests(3)
Net income available to common stockholders – basic and diluted$755 $680 $657 
Average common shares outstanding
Weighted-average shares – basic285.0 283.0 282.2 
Add dilutive nonvested stock awards0.7 0.7 0.7 
Add dilutive forward equity sale contracts0.6 0.6 — 
Weighted-average shares – diluted286.3 284.3 282.9 
Net income per average common share available to common stockholders
Basic$2.65 $2.40 $2.33 
Diluted2.64 2.39 2.32 
v3.20.4
Revenue (Tables)
12 Months Ended
Dec. 31, 2020
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, 2020Electric UtilityGas Utility
Enterprises1
EnerBankConsolidated
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 — 262 279 
Consumers alternative-revenue programs29 14 — — 43 
Consumers revenues to be refunded(16)(12)— — (28)
Total operating revenue – CMS Energy$4,372 $1,817 $229 $262 $6,680 
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 the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2019Electric UtilityGas Utility
Enterprises1
EnerBankConsolidated
CMS Energy, including Consumers
Consumers utility revenue$4,407 $1,922 $— $— $6,329 
Other— — 74 — 74 
Revenue recognized from contracts with customers$4,407 $1,922 $74 $— $6,403 
Leasing income— — 174 — 174 
Financing income— 221 235 
Consumers alternative-revenue programs23 10 — — 33 
Total operating revenue – CMS Energy$4,439 $1,937 $248 $221 $6,845 
Consumers
Consumers utility revenue
Residential$1,988 $1,316 $3,304 
Commercial1,502 372 1,874 
Industrial669 51 720 
Other248 183 431 
Revenue recognized from contracts with customers$4,407 $1,922 $6,329 
Financing income14 
Alternative-revenue programs23 10 33 
Total operating revenue – Consumers$4,439 $1,937 $6,376 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2018Electric UtilityGas Utility
Enterprises1
EnerBankConsolidated
CMS Energy, including Consumers
Consumers utility revenue$4,528 $1,882 $— $— $6,410 
Other— — 92 — 92 
Revenue recognized from contracts with customers$4,528 $1,882 $92 $— $6,502 
Leasing income— — 160 — 160 
Financing income10 — 157 172 
Consumers alternative-revenue programs23 16 — — 39 
Total operating revenue – CMS Energy$4,561 $1,903 $252 $157 $6,873 
Consumers
Consumers utility revenue
Residential$2,049 $1,284 $3,333 
Commercial1,545 367 1,912 
Industrial674 55 729 
Other260 176 436 
Revenue recognized from contracts with customers$4,528 $1,882 $6,410 
Financing income10 15 
Alternative-revenue programs23 16 39 
Total operating revenue – Consumers$4,561 $1,903 $6,464 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
Consumers Energy Company  
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue
Presented in the following tables are the components of operating revenue:
In Millions
Year Ended December 31, 2020Electric UtilityGas Utility
Enterprises1
EnerBankConsolidated
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 — 262 279 
Consumers alternative-revenue programs29 14 — — 43 
Consumers revenues to be refunded(16)(12)— — (28)
Total operating revenue – CMS Energy$4,372 $1,817 $229 $262 $6,680 
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 the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2019Electric UtilityGas Utility
Enterprises1
EnerBankConsolidated
CMS Energy, including Consumers
Consumers utility revenue$4,407 $1,922 $— $— $6,329 
Other— — 74 — 74 
Revenue recognized from contracts with customers$4,407 $1,922 $74 $— $6,403 
Leasing income— — 174 — 174 
Financing income— 221 235 
Consumers alternative-revenue programs23 10 — — 33 
Total operating revenue – CMS Energy$4,439 $1,937 $248 $221 $6,845 
Consumers
Consumers utility revenue
Residential$1,988 $1,316 $3,304 
Commercial1,502 372 1,874 
Industrial669 51 720 
Other248 183 431 
Revenue recognized from contracts with customers$4,407 $1,922 $6,329 
Financing income14 
Alternative-revenue programs23 10 33 
Total operating revenue – Consumers$4,439 $1,937 $6,376 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2018Electric UtilityGas Utility
Enterprises1
EnerBankConsolidated
CMS Energy, including Consumers
Consumers utility revenue$4,528 $1,882 $— $— $6,410 
Other— — 92 — 92 
Revenue recognized from contracts with customers$4,528 $1,882 $92 $— $6,502 
Leasing income— — 160 — 160 
Financing income10 — 157 172 
Consumers alternative-revenue programs23 16 — — 39 
Total operating revenue – CMS Energy$4,561 $1,903 $252 $157 $6,873 
Consumers
Consumers utility revenue
Residential$2,049 $1,284 $3,333 
Commercial1,545 367 1,912 
Industrial674 55 729 
Other260 176 436 
Revenue recognized from contracts with customers$4,528 $1,882 $6,410 
Financing income10 15 
Alternative-revenue programs23 16 39 
Total operating revenue – Consumers$4,561 $1,903 $6,464 
1Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities.
v3.20.4
Other Income and Other Expense (Tables)
12 Months Ended
Dec. 31, 2020
Other Income and Expenses [Line Items]  
Components Of Other Income And Other Expense Presented in the following table are the components of other expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Other expense
Donations$(35)$(3)$(13)
Civic and political expenditures(5)(6)(6)
Loss on reacquired and extinguished debt(16)— (16)
All other(6)(4)(13)
Total other expense – CMS Energy$(62)$(13)$(48)
Consumers
Other expense
Donations$(33)$(3)$(13)
Civic and political expenditures(5)(6)(6)
All other(5)(4)(11)
Total other expense – Consumers$(43)$(13)$(30)
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 expense at CMS Energy and Consumers:
In Millions
Years Ended December 31202020192018
CMS Energy, including Consumers
Other expense
Donations$(35)$(3)$(13)
Civic and political expenditures(5)(6)(6)
Loss on reacquired and extinguished debt(16)— (16)
All other(6)(4)(13)
Total other expense – CMS Energy$(62)$(13)$(48)
Consumers
Other expense
Donations$(33)$(3)$(13)
Civic and political expenditures(5)(6)(6)
All other(5)(4)(11)
Total other expense – Consumers$(43)$(13)$(30)
v3.20.4
Cash And Cash Equivalents (Tables)
12 Months Ended
Dec. 31, 2020
Cash and Cash Equivalents [Line Items]  
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets:
In Millions
December 3120202019
CMS Energy, including Consumers
Cash and cash equivalents$168 $140 
Restricted cash and cash equivalents17 17 
Cash and cash equivalents, including restricted amounts$185 $157 
Consumers
Cash and cash equivalents$20 $11 
Restricted cash and cash equivalents15 17 
Cash and cash equivalents, including restricted amounts$35 $28 
Consumers Energy Company  
Cash and Cash Equivalents [Line Items]  
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets:
In Millions
December 3120202019
CMS Energy, including Consumers
Cash and cash equivalents$168 $140 
Restricted cash and cash equivalents17 17 
Cash and cash equivalents, including restricted amounts$185 $157 
Consumers
Cash and cash equivalents$20 $11 
Restricted cash and cash equivalents15 17 
Cash and cash equivalents, including restricted amounts$35 $28 
v3.20.4
Reportable Segments (Tables)
12 Months Ended
Dec. 31, 2020
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 312020 2019 2018 
CMS Energy, including Consumers
Operating revenue
Electric utility$4,372 $4,439 $4,561 
Gas utility1,817 1,937 1,903 
Enterprises229 248 252 
EnerBank262 221 157 
Total operating revenue – CMS Energy$6,680 $6,845 $6,873 
Consumers
Operating revenue
Electric utility$4,372 $4,439 $4,561 
Gas utility1,817 1,937 1,903 
Total operating revenue – Consumers$6,189 $6,376 $6,464 
CMS Energy, including Consumers
Depreciation and amortization
Electric utility$739 $713 $682 
Gas utility283 261 239 
Enterprises20 14 
EnerBank
Other reconciling items— 
Total depreciation and amortization – CMS Energy$1,048 $992 $933 
Consumers
Depreciation and amortization
Electric utility$739 $713 $682 
Gas utility283 261 239 
Other reconciling items— 
Total depreciation and amortization – Consumers$1,023 $975 $921 
CMS Energy, including Consumers
Income from equity method investees1
Enterprises$$10 $
Total income from equity method investees – CMS Energy$$10 $
CMS Energy, including Consumers
Interest charges
Electric utility$217 $213 $209 
Gas utility102 83 79 
Enterprises
EnerBank56 59 32 
Other reconciling items179 157 136 
Total interest charges – CMS Energy$561 $519 $458 
In Millions
Years Ended December 312020 2019 2018 
Consumers
Interest charges
Electric utility$217 $213 $209 
Gas utility102 83 79 
Other reconciling items
Total interest charges – Consumers$320 $297 $289 
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility$115 $134 $109 
Gas utility58 51 33 
Enterprises(4)
EnerBank17 16 12 
Other reconciling items(53)(56)(41)
Total income tax expense – CMS Energy$133 $147 $115 
Consumers
Income tax expense
Electric utility$115 $134 $109 
Gas utility58 51 33 
Total income tax expense – Consumers$173 $185 $142 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$554 $509 $535 
Gas utility261 233 169 
Enterprises36 33 34 
EnerBank58 49 38 
Other reconciling items(154)(144)(119)
Total net income available to common stockholders – CMS Energy$755 $680 $657 
Consumers
Net income (loss) available to common stockholder
Electric utility$554 $509 $535 
Gas utility261 233 169 
Other reconciling items(1)(1)(1)
Total net income available to common stockholder – Consumers$814 $741 $703 
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2,3
$17,155 $16,158 $16,027 
Gas utility2
9,581 8,785 7,919 
Enterprises1,113 405 412 
EnerBank37 22 25 
Other reconciling items21 20 17 
Total plant, property, and equipment, gross – CMS Energy$27,907 $25,390 $24,400 
In Millions
Years Ended December 312020 2019 2018 
Consumers
Plant, property, and equipment, gross
Electric utility2,3
$17,155 $16,158 $16,027 
Gas utility2
9,581 8,785 7,919 
Other reconciling items21 20 17 
Total plant, property, and equipment, gross – Consumers$26,757 $24,963 $23,963 
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises$70 $71 $69 
Total investments in equity method investees – CMS Energy$70 $71 $69 
CMS Energy, including Consumers
Total assets
Electric utility2
$15,829 $14,911 $14,079 
Gas utility2
9,429 8,659 7,806 
Enterprises1,276 527 540 
EnerBank3,109 2,692 2,006 
Other reconciling items23 48 98 
Total assets – CMS Energy$29,666 $26,837 $24,529 
Consumers
Total assets
Electric utility2
$15,893 $14,973 $14,143 
Gas utility2
9,477 8,706 7,853 
Other reconciling items29 20 29 
Total assets – Consumers$25,399 $23,699 $22,025 
CMS Energy, including Consumers
Capital expenditures4
Electric utility5
$1,281 $1,162 $865 
Gas utility5
885 971 958 
Enterprises108 246 
EnerBank10 
Other reconciling items
Total capital expenditures – CMS Energy$2,280 $2,147 $2,081 
Consumers
Capital expenditures4
Electric utility5
$1,281 $1,162 $865 
Gas utility5
885 971 958 
Other reconciling items
Total capital expenditures – Consumers$2,167 $2,134 $1,825 
1Consumers had no significant equity method investments.
2Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
3Costs related to coal-fueled electric generating units to be retired in 2023 were removed and recorded as a regulatory asset in June 2019. For additional details, see Note 3, Regulatory Matters.
4Amounts include assets placed under finance lease.
5Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
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 312020 2019 2018 
CMS Energy, including Consumers
Operating revenue
Electric utility$4,372 $4,439 $4,561 
Gas utility1,817 1,937 1,903 
Enterprises229 248 252 
EnerBank262 221 157 
Total operating revenue – CMS Energy$6,680 $6,845 $6,873 
Consumers
Operating revenue
Electric utility$4,372 $4,439 $4,561 
Gas utility1,817 1,937 1,903 
Total operating revenue – Consumers$6,189 $6,376 $6,464 
CMS Energy, including Consumers
Depreciation and amortization
Electric utility$739 $713 $682 
Gas utility283 261 239 
Enterprises20 14 
EnerBank
Other reconciling items— 
Total depreciation and amortization – CMS Energy$1,048 $992 $933 
Consumers
Depreciation and amortization
Electric utility$739 $713 $682 
Gas utility283 261 239 
Other reconciling items— 
Total depreciation and amortization – Consumers$1,023 $975 $921 
CMS Energy, including Consumers
Income from equity method investees1
Enterprises$$10 $
Total income from equity method investees – CMS Energy$$10 $
CMS Energy, including Consumers
Interest charges
Electric utility$217 $213 $209 
Gas utility102 83 79 
Enterprises
EnerBank56 59 32 
Other reconciling items179 157 136 
Total interest charges – CMS Energy$561 $519 $458 
In Millions
Years Ended December 312020 2019 2018 
Consumers
Interest charges
Electric utility$217 $213 $209 
Gas utility102 83 79 
Other reconciling items
Total interest charges – Consumers$320 $297 $289 
CMS Energy, including Consumers
Income tax expense (benefit)
Electric utility$115 $134 $109 
Gas utility58 51 33 
Enterprises(4)
EnerBank17 16 12 
Other reconciling items(53)(56)(41)
Total income tax expense – CMS Energy$133 $147 $115 
Consumers
Income tax expense
Electric utility$115 $134 $109 
Gas utility58 51 33 
Total income tax expense – Consumers$173 $185 $142 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$554 $509 $535 
Gas utility261 233 169 
Enterprises36 33 34 
EnerBank58 49 38 
Other reconciling items(154)(144)(119)
Total net income available to common stockholders – CMS Energy$755 $680 $657 
Consumers
Net income (loss) available to common stockholder
Electric utility$554 $509 $535 
Gas utility261 233 169 
Other reconciling items(1)(1)(1)
Total net income available to common stockholder – Consumers$814 $741 $703 
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility2,3
$17,155 $16,158 $16,027 
Gas utility2
9,581 8,785 7,919 
Enterprises1,113 405 412 
EnerBank37 22 25 
Other reconciling items21 20 17 
Total plant, property, and equipment, gross – CMS Energy$27,907 $25,390 $24,400 
In Millions
Years Ended December 312020 2019 2018 
Consumers
Plant, property, and equipment, gross
Electric utility2,3
$17,155 $16,158 $16,027 
Gas utility2
9,581 8,785 7,919 
Other reconciling items21 20 17 
Total plant, property, and equipment, gross – Consumers$26,757 $24,963 $23,963 
CMS Energy, including Consumers
Investments in equity method investees1
Enterprises$70 $71 $69 
Total investments in equity method investees – CMS Energy$70 $71 $69 
CMS Energy, including Consumers
Total assets
Electric utility2
$15,829 $14,911 $14,079 
Gas utility2
9,429 8,659 7,806 
Enterprises1,276 527 540 
EnerBank3,109 2,692 2,006 
Other reconciling items23 48 98 
Total assets – CMS Energy$29,666 $26,837 $24,529 
Consumers
Total assets
Electric utility2
$15,893 $14,973 $14,143 
Gas utility2
9,477 8,706 7,853 
Other reconciling items29 20 29 
Total assets – Consumers$25,399 $23,699 $22,025 
CMS Energy, including Consumers
Capital expenditures4
Electric utility5
$1,281 $1,162 $865 
Gas utility5
885 971 958 
Enterprises108 246 
EnerBank10 
Other reconciling items
Total capital expenditures – CMS Energy$2,280 $2,147 $2,081 
Consumers
Capital expenditures4
Electric utility5
$1,281 $1,162 $865 
Gas utility5
885 971 958 
Other reconciling items
Total capital expenditures – Consumers$2,167 $2,134 $1,825 
1Consumers had no significant equity method investments.
2Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
3Costs related to coal-fueled electric generating units to be retired in 2023 were removed and recorded as a regulatory asset in June 2019. For additional details, see Note 3, Regulatory Matters.
4Amounts include assets placed under finance lease.
5Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses.
v3.20.4
Related Party Transactions - Consumers (Tables)
12 Months Ended
Dec. 31, 2020
Consumers Energy Company  
Related Party Transaction [Line Items]  
Schedule of Related Party Transactions, by Related Party Table
Presented in the following table is Consumers’ expense recorded from related-party transactions for the years ended December 31:
In Millions
DescriptionRelated Party202020192018
Purchases of capacity and energyAffiliates of CMS Enterprises$64 $75 $83 
v3.20.4
Variable Interest Entities (Tables)
12 Months Ended
Dec. 31, 2020
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 in CMS Energy’s consolidated balance sheets:
In Millions
December 312020
Current
Cash and cash equivalents$
Accounts receivable
Prepayments and other current assets
Non-current
Plant, property, and equipment, net692 
Total assets1
$705 
Current
Accounts payable$
Non-current
Asset retirement obligations19 
Total liabilities$22 
1Assets may be used only to meet VIEs’ obligations and commitments.
Presented in the following table is information about these partnerships:
NameNature of the EntityNature of CMS Energy’s Involvement
T.E.S. Filer City Coal-fueled power generatorLong-term PPA between partnership and Consumers
Employee assignment agreement
Grayling Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Genesee Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Craven Wood waste-fueled power generatorOperating and management contract
1Reduced dispatch agreements allow the facilities to be dispatched based on the market price of power compared with the cost of production of the plants. This results in fuel cost savings that each partnership shares with Consumers’ customers.
v3.20.4
Asset Sale and Exit Activities - (Tables)
12 Months Ended
Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Restructuring Reserve by Type of Cost 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 3120202019
Retention benefit liability at beginning of period$$— 
Costs incurred and charged to maintenance and other operating expenses13 
Costs incurred and capitalized
Costs paid or settled(8)— 
Retention benefit liability at the end of the period1
$11 $
1Includes current portion of other liabilities of $3 million at December 31, 2020 and $2 million at December 31, 2019.
Consumers Energy Company  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Restructuring Reserve by Type of Cost 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 3120202019
Retention benefit liability at beginning of period$$— 
Costs incurred and charged to maintenance and other operating expenses13 
Costs incurred and capitalized
Costs paid or settled(8)— 
Retention benefit liability at the end of the period1
$11 $
1Includes current portion of other liabilities of $3 million at December 31, 2020 and $2 million at December 31, 2019.
v3.20.4
Quarterly Financial And Common Stock Information (Tables)
12 Months Ended
Dec. 31, 2020
Quarterly Financial and Common Stock Information [Line Items]  
Schedule of Quarterly Financial Information Table
In Millions, Except Per Share Amounts
2020
Three Months EndedMarch 31June 30September 30December 31
CMS Energy, including Consumers
Operating revenue$1,864 $1,443 $1,575 $1,798 
Operating income368 273 369 352 
Net income243 137 210 162 
Income (loss) attributable to noncontrolling interests— (8)
Net income available to common stockholders243 136 218 158 
Basic earnings per average common share1
0.86 0.48 0.76 0.55 
Diluted earnings per average common share1
0.85 0.48 0.76 0.55 
Consumers
Operating revenue$1,744 $1,330 $1,450 $1,665 
Operating income329 246 338 308 
Net income235 160 230 191 
Preferred stock dividends— — 
Net income available to common stockholder235 159 230 190 
1The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding.
In Millions, Except Per Share Amounts
2019
Three Months EndedMarch 31June 30September 30December 31
CMS Energy, including Consumers
Operating revenue$2,059 $1,445 $1,546 $1,795 
Operating income359 218 351 311 
Net income213 94 207 168 
Income attributable to noncontrolling interests— — 
Net income available to common stockholders213 93 207 167 
Basic earnings per average common share1
0.75 0.33 0.73 0.59 
Diluted earnings per average common share1
0.75 0.33 0.73 0.58 
Consumers
Operating revenue$1,943 $1,334 $1,429 $1,670 
Operating income328 175 319 308 
Net income226 98 213 206 
Preferred stock dividends— — 
Net income available to common stockholder226 97 213 205 
1The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding.
Consumers Energy Company  
Quarterly Financial and Common Stock Information [Line Items]  
Schedule of Quarterly Financial Information Table
In Millions, Except Per Share Amounts
2020
Three Months EndedMarch 31June 30September 30December 31
CMS Energy, including Consumers
Operating revenue$1,864 $1,443 $1,575 $1,798 
Operating income368 273 369 352 
Net income243 137 210 162 
Income (loss) attributable to noncontrolling interests— (8)
Net income available to common stockholders243 136 218 158 
Basic earnings per average common share1
0.86 0.48 0.76 0.55 
Diluted earnings per average common share1
0.85 0.48 0.76 0.55 
Consumers
Operating revenue$1,744 $1,330 $1,450 $1,665 
Operating income329 246 338 308 
Net income235 160 230 191 
Preferred stock dividends— — 
Net income available to common stockholder235 159 230 190 
1The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding.
In Millions, Except Per Share Amounts
2019
Three Months EndedMarch 31June 30September 30December 31
CMS Energy, including Consumers
Operating revenue$2,059 $1,445 $1,546 $1,795 
Operating income359 218 351 311 
Net income213 94 207 168 
Income attributable to noncontrolling interests— — 
Net income available to common stockholders213 93 207 167 
Basic earnings per average common share1
0.75 0.33 0.73 0.59 
Diluted earnings per average common share1
0.75 0.33 0.73 0.58 
Consumers
Operating revenue$1,943 $1,334 $1,429 $1,670 
Operating income328 175 319 308 
Net income226 98 213 206 
Preferred stock dividends— — 
Net income available to common stockholder226 97 213 205 
1The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding.
v3.20.4
New Accounting Standards (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Jan. 01, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Allowance for credit loss $ 123 $ 33 $ 24  
Reduction to income (885) $ (829) $ (774)  
Cumulative Effect, Period of Adoption, Adjustment        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Tax impact of ASU 2016-13       $ 14
Cumulative Effect, Period of Adoption, Adjustment | Financing Receivables And Unfunded Loan Commitments        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Allowance for credit loss       $ 65
Accounting Standards Update 2016-13        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Reduction to income $ 21      
v3.20.4
Regulatory Matters (Schedule Of The Components Of Regulatory Assets and Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, current $ 42 $ 33
Regulatory assets, noncurrent 2,653 2,489
Regulatory liabilities, current 151 87
Regulatory liability, noncurrent 3,744 3,742
Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, current 42 33
Regulatory assets, noncurrent 2,653 2,489
Total regulatory assets 2,695 2,522
Regulatory liabilities, current 151 87
Regulatory liability, noncurrent 3,744 3,742
Total regulatory liabilities 3,895 3,829
Income taxes, net | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liabilities, current 105 65
Regulatory liability, noncurrent 1,419 1,510
Reserve for customer refunds | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liabilities, current 28 2
Gain shared with customers | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liabilities, current 14 17
Other | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liabilities, current 4 3
Regulatory liability, noncurrent 11 11
Cost of removal | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liability, noncurrent 2,245 2,126
Renewable energy grant | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liability, noncurrent 49 52
ARO | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liability, noncurrent 11 26
Renewable energy plan | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory liability, noncurrent 9 17
Energy Waste Reduction Plan Incentive | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, current 34 33
Regulatory assets, noncurrent 42 34
Deferred capital spending | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, current 6 0
Other | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, current 2 0
Regulatory assets, noncurrent 7 9
Postretirement benefits | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent 1,231 1,130
Costs of coal-fueled electric generating units to be retired | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent 678 667
Securitized costs | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent 221 247
ARO | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent 216 191
Manufactured Gas Plant | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent 120 130
Unamortized Loss On Reacquired Debt | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent 108 70
Energy Waste Reduction Plan | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent 16 10
Demand response program | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent 10 1
COVID-19 costs accounting deferral | Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Regulatory assets, noncurrent $ 4 $ 0
v3.20.4
Regulatory Matters (Narrative) (Details)
$ in Millions
1 Months Ended 3 Months Ended 12 Months Ended 25 Months Ended
Dec. 31, 2020
USD ($)
coal_fueled_electric_generating_unit
site
Sep. 30, 2020
USD ($)
Jul. 31, 2020
USD ($)
May 31, 2020
USD ($)
Feb. 29, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2020
USD ($)
coal_fueled_electric_generating_unit
site
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2020
USD ($)
coal_fueled_electric_generating_unit
site
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2016
site
Dec. 31, 2013
USD ($)
Sep. 30, 2022
USD ($)
Nov. 30, 2020
USD ($)
Public Utilities, General Disclosures [Line Items]                                              
Revenue             $ 1,798 $ 1,575 $ 1,443 $ 1,864 $ 1,795 $ 1,546 $ 1,445 $ 2,059 $ 6,680   $ 6,845   $ 6,873        
Regulatory liabilities, current $ 151         $ 87 151       87       151   87            
Income tax benefit                             (133)   (147)   (115)        
Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Revenue             1,665 $ 1,450 $ 1,330 1,744 1,670 $ 1,429 $ 1,334 1,943 $ 6,189   6,376   6,464        
Number of units retired | site                             10                
Regulatory liabilities, current $ 151         87 $ 151       87       $ 151   87            
Income tax benefit                             (173)   (185)   (142)        
Purchased and interchange power                             1,454   1,470   1,587        
Cost of gas sold                             $ 568   754   819        
Costs of coal-fueled electric generating units to be retired | Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Number of units | coal_fueled_electric_generating_unit 2           2               2                
Coal-Fueled Electric Generation | Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Number of units retired | site                                       7      
Gas-Fueled Electric Generation | Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Number of units retired | site                                       3      
Energy Waste Reduction Plan Incentive | Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Authorized recovery collection                                             $ 34
Revenue                             $ 42   34            
Requested recovery/collection $ 42           $ 42               42                
Electric Rate Case Tax Reform Rate Change | Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Annual rate increase authorized (36)                                            
Electric Rate Case Net Of TCJA Impact | Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Annual rate increase authorized 126                                            
Electric Rate Case | Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Annual rate increase requested         $ 244                                    
Rate of return on equity requested         10.50%                                    
Annual rate increase requested, amended     $ 230                                        
Annual rate increase authorized $ 90                                            
Rate of return on equity authorized 9.90%                                            
Gas Rate Case | Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Annual rate increase requested           $ 245                                  
Rate of return on equity requested           10.50%                                  
Annual rate increase requested, amended       $ 229                                      
Annual rate increase authorized   $ 144                                          
Rate of return on equity authorized   9.90%                                          
Gas Rate Case | Consumers Energy Company | Forecast                                              
Public Utilities, General Disclosures [Line Items]                                              
Income tax benefit                                           $ 84  
PSCR overrecoveries/underrecoveries | Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Purchased and interchange power                                 1,900   2,000        
Over (under) recovery authorized by the MPSC           $ 21         $ 21           $ 21   $ (28)        
GCR underrecoveries | Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Over (under) recovery authorized by the MPSC                   $ (1)       $ (11)   $ (1)   $ (11)          
Cost of gas sold                               $ 500   600          
GCR underrecoveries | Consumers Energy Company | Ray Compressor Station                                              
Public Utilities, General Disclosures [Line Items]                                              
Cost of gas sold                                   $ 7          
Deferred capital spending | Electric Rate Case | Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Authorized recovery collection $ 13           13               13                
Financial Compensation Mechanism PPAs | Electric Rate Case | Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Authorized recovery collection $ 3           $ 3               3                
Revenue                             $ 1                
Renewable energy grant | Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Proceeds from government grant                                         $ 69    
Income Taxes Subject To Normalization | Gas Rate Case Tax Reform Rate Change | Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Regulatory liability remaining book life                             44 years                
Income Taxes Subject To Normalization | Electric Rate Case Tax Reform Rate Change | Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Regulatory liability remaining book life                             27 years                
Manufactured Gas Plant | Consumers Energy Company                                              
Public Utilities, General Disclosures [Line Items]                                              
Number of former MGPs | site 23           23               23                
Regulatory asset collection period                             10 years                
v3.20.4
Regulatory Matters (Schedule Of The Components Of PSCR And GCR Over/(Under) Recoveries) (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Public Utilities, General Disclosures [Line Items]    
Accrued rate refunds $ 20 $ 35
Consumers Energy Company    
Public Utilities, General Disclosures [Line Items]    
Accrued rate refunds 20 35
Consumers Energy Company | PSCR overrecoveries/underrecoveries    
Public Utilities, General Disclosures [Line Items]    
Accrued rate refunds 5 33
Consumers Energy Company | GCR overrecoveries/underrecoveries    
Public Utilities, General Disclosures [Line Items]    
Accrued rate refunds $ 15 $ 2
v3.20.4
Contingencies and Commitments (Contingencies And Commitments) (Details)
$ in Thousands
1 Months Ended 12 Months Ended
May 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2020
USD ($)
lawsuit
site
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Jan. 31, 2019
USD ($)
Loss Contingencies [Line Items]                
ARO liability incurred     $ 65,000   $ 55,000      
Regulatory assets     2,653,000   2,489,000      
Consumers Energy Company                
Loss Contingencies [Line Items]                
ARO liability incurred     46,000   55,000      
Regulatory assets     2,653,000   2,489,000      
Cost of gas sold     568,000   754,000   $ 819,000  
Plant additions     2,000,000   2,000,000      
Consumers Energy Company | GCR underrecoveries                
Loss Contingencies [Line Items]                
Cost of gas sold       $ 500,000   $ 600,000    
Bay Harbor                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies     $ 45,000          
Discounted projected costs rate     4.34%          
Accrual for environmental loss contingencies, inflation rate     1.00%          
Remaining undiscounted obligation amount     $ 57,000          
CERCLA Liability | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies     3,000          
CERCLA Liability | Minimum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs     3,000          
CERCLA Liability | Maximum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs     8,000          
Manufactured Gas Plant | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies     $ 56,000          
Discounted projected costs rate     2.57%          
Accrual for environmental loss contingencies, inflation rate     2.50%          
Remaining undiscounted obligation amount     $ 61,000          
Number of former MGPs | site     23          
Regulatory asset collection period     10 years          
Electric Utility | NREPA | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies     $ 2,000          
Electric Utility | NREPA | Minimum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs     2,000          
Electric Utility | NREPA | Maximum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs     4,000          
Gas Utility | NREPA | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies     1,000          
Gas Utility | NREPA | Maximum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies     3,000          
Equatorial Guinea Tax Claim                
Loss Contingencies [Line Items]                
Foreign government tax claim on sale     $ 152,000          
Class Action Lawsuits                
Loss Contingencies [Line Items]                
Number of lawsuits | lawsuit     4          
Individual Lawsuits                
Loss Contingencies [Line Items]                
Number of lawsuits | lawsuit     1          
Gas Index Price Reporting Litigation                
Loss Contingencies [Line Items]                
Estimated current litigation liability         $ 30,000      
MCV PPA | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs               $ 270,000
Underwater cables Straits of Mackinac | Consumers Energy Company                
Loss Contingencies [Line Items]                
ARO liability incurred   $ 5,000            
Civil Case, Consumers V. MPSC Staff | Consumers Energy Company                
Loss Contingencies [Line Items]                
Civil penalty $ 10              
Ray Compressor Station | Consumers Energy Company                
Loss Contingencies [Line Items]                
Plant additions     $ 17,000          
Ray Compressor Station | Consumers Energy Company | GCR underrecoveries                
Loss Contingencies [Line Items]                
Cost of gas sold           $ 7,000    
v3.20.4
Contingencies and Commitments (Expected Remediation Cost By Year) (Details)
$ in Millions
Dec. 31, 2020
USD ($)
Bay Harbor  
Site Contingency [Line Items]  
2021 $ 4
2022 4
2023 4
2024 4
2025 4
Manufactured Gas Plant | Consumers Energy Company  
Site Contingency [Line Items]  
2021 3
2022 9
2023 23
2024 10
2025 $ 1
v3.20.4
Contingencies and Commitments (Guarantees) (Details)
$ in Millions
12 Months Ended
Dec. 31, 2020
USD ($)
$ / MW
$ / MWh
MW
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Jul. 31, 2020
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 Purchase Of Variable Interest Entity        
Guarantees And Other Contingencies [Line Items]        
Expiration Date indefinite      
Maximum Obligation $ 349      
Carrying Amount $ 0      
Indemnity Obligations From Stock And Asset Sales Agreements        
Guarantees And Other Contingencies [Line Items]        
Expiration Date indefinite      
Maximum Obligation $ 153      
Carrying Amount 2      
Tax And Other Indemnity Obligations | Consumers Energy Company        
Guarantees And Other Contingencies [Line Items]        
Carrying Amount 1      
MCV PPA | Consumers Energy Company        
Guarantees And Other Contingencies [Line Items]        
Total 2,815      
2021 349      
2022 340      
2023 358      
2024 376      
2025 329      
Beyond 2025 $ 1,063      
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 $ 298 $ 318 $ 353  
MCV PPA | Consumers Energy Company | Year End Through March 2025        
Guarantees And Other Contingencies [Line Items]        
PPA capacity charge per MWh (in dollars per MWh) | $ / MW 10.14      
MCV PPA | Consumers Energy Company | March 2025 Through Termination        
Guarantees And Other Contingencies [Line Items]        
PPA capacity charge per MWh (in dollars per MWh) | $ / MW 5.00      
Palisades PPA | Consumers Energy Company        
Guarantees And Other Contingencies [Line Items]        
Total $ 517      
2021 398      
2022 119      
2023 0      
2024 0      
2025 0      
Beyond 2025 0      
Purchases 403 395 375  
Related-party PPAs | Consumers Energy Company        
Guarantees And Other Contingencies [Line Items]        
Total 318      
2021 58      
2022 58      
2023 58      
2024 58      
2025 39      
Beyond 2025 47      
Other PPAs | Consumers Energy Company        
Guarantees And Other Contingencies [Line Items]        
Total 5,248      
2021 252      
2022 274      
2023 315      
2024 350      
2025 364      
Beyond 2025 3,693      
Purchases 327 $ 336 $ 350  
Total PPAs | Consumers Energy Company        
Guarantees And Other Contingencies [Line Items]        
Total 8,898      
2021 1,057      
2022 791      
2023 731      
2024 784      
2025 732      
Beyond 2025 4,803      
Other        
Guarantees And Other Contingencies [Line Items]        
Total 3,179      
2021 1,391      
2022 871      
2023 265      
2024 199      
2025 171      
Beyond 2025 282      
Other | Consumers Energy Company        
Guarantees And Other Contingencies [Line Items]        
Total 2,605      
2021 1,333      
2022 777      
2023 207      
2024 154      
2025 130      
Beyond 2025 $ 4      
Palisades Power Purchase Agreement | Financing Obligation | Consumers Energy Company        
Guarantees And Other Contingencies [Line Items]        
Annual average capacity (in MW) | MW 798      
v3.20.4
Financings and Capitalization (Summary of Long-Term Debt Outstanding) (Details) - USD ($)
1 Months Ended 12 Months Ended
Oct. 31, 2022
Dec. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]      
Principal amounts outstanding   $ 15,272,000,000 $ 13,188,000,000
Current amounts   (1,486,000,000) (1,111,000,000)
Unamortized discounts   (33,000,000) (27,000,000)
Unamortized issuance costs   (119,000,000) (99,000,000)
Long-term debt   13,634,000,000 11,951,000,000
Consumers Energy Company      
Debt Instrument [Line Items]      
Principal amounts outstanding   8,197,000,000 7,322,000,000
Current amounts   (364,000,000) (202,000,000)
Unamortized discounts   (29,000,000) (23,000,000)
Unamortized issuance costs   (62,000,000) (49,000,000)
Long-term debt   7,742,000,000 7,048,000,000
Certificates of deposit | EnerBank Certificates Of Deposit | EnerBank      
Debt Instrument [Line Items]      
Certificates of deposit   $ 2,805,000,000 $ 2,389,000,000
Weighted-average interest rate   1.621% 2.445%
Certificate of deposit face value   $ 1,000  
First Mortgage Bonds | Consumers Energy Company      
Debt Instrument [Line Items]      
Principal amounts outstanding   $ 7,897,000,000 $ 6,961,000,000
First Mortgage Bonds | Consumers Energy Company | 3.770% Percent First Mortgage Bonds Due 2020      
Debt Instrument [Line Items]      
Interest rate   3.77%  
Principal amounts outstanding   $ 0 100,000,000
First Mortgage Bonds | Consumers Energy Company | 2.850% First Mortgage Bonds Due 2022      
Debt Instrument [Line Items]      
Interest rate   2.85%  
Principal amounts outstanding   $ 0 375,000,000
First Mortgage Bonds | Consumers Energy Company | 5.300% First Mortgage Bonds Due 2022      
Debt Instrument [Line Items]      
Interest rate   5.30%  
Principal amounts outstanding   $ 0 250,000,000
First Mortgage Bonds | Consumers Energy Company | 3.375% First Mortgage Bonds Due 2023      
Debt Instrument [Line Items]      
Interest rate   3.375%  
Principal amounts outstanding   $ 325,000,000 325,000,000
First Mortgage Bonds | Consumers Energy Company | 0.350% First Mortgage Bonds Due 2023      
Debt Instrument [Line Items]      
Interest rate   0.35%  
Principal amounts outstanding   $ 300,000,000 0
First Mortgage Bonds | Consumers Energy Company | 3.125% First Mortgage Bonds Due 2024      
Debt Instrument [Line Items]      
Interest rate   3.125%  
Principal amounts outstanding   $ 250,000,000 250,000,000
First Mortgage Bonds | Consumers Energy Company | 3.190% First Mortgage Bonds Due 2024      
Debt Instrument [Line Items]      
Interest rate   3.19%  
Principal amounts outstanding   $ 52,000,000 52,000,000
First Mortgage Bonds | Consumers Energy Company | 3.680% First Mortgage Bonds Due 2027      
Debt Instrument [Line Items]      
Interest rate   3.68%  
Principal amounts outstanding   $ 100,000,000 100,000,000
First Mortgage Bonds | Consumers Energy Company | 3.390 % First Mortgage Bonds Due 2027      
Debt Instrument [Line Items]      
Interest rate   3.39%  
Principal amounts outstanding   $ 35,000,000 35,000,000
First Mortgage Bonds | Consumers Energy Company | 3.800% First Mortgage Bonds Due 2028      
Debt Instrument [Line Items]      
Interest rate   3.80%  
Principal amounts outstanding   $ 300,000,000 300,000,000
First Mortgage Bonds | Consumers Energy Company | 3.180% First Mortgage Bonds Due 2032      
Debt Instrument [Line Items]      
Interest rate   3.18%  
Principal amounts outstanding   $ 100,000,000 100,000,000
First Mortgage Bonds | Consumers Energy Company | 5.800 % First Mortgage Bonds Due 2035      
Debt Instrument [Line Items]      
Interest rate   5.80%  
Principal amounts outstanding   $ 175,000,000 175,000,000
First Mortgage Bonds | Consumers Energy Company | 3.520% First Mortgage Bonds Due 2037      
Debt Instrument [Line Items]      
Interest rate   3.52%  
Principal amounts outstanding   $ 335,000,000 335,000,000
First Mortgage Bonds | Consumers Energy Company | 4.010% First Mortgage Bonds Due 2038      
Debt Instrument [Line Items]      
Interest rate   4.01%  
Principal amounts outstanding   $ 215,000,000 215,000,000
First Mortgage Bonds | Consumers Energy Company | 6.170% First Mortgage Bonds Due 2040      
Debt Instrument [Line Items]      
Interest rate   6.17%  
Principal amounts outstanding   $ 50,000,000 50,000,000
First Mortgage Bonds | Consumers Energy Company | 4.970% First Mortgage Bonds Due 2040      
Debt Instrument [Line Items]      
Interest rate   4.97%  
Principal amounts outstanding   $ 50,000,000 50,000,000
First Mortgage Bonds | Consumers Energy Company | 4.310% First Mortgage Bonds Due 2042      
Debt Instrument [Line Items]      
Interest rate   4.31%  
Principal amounts outstanding   $ 263,000,000 263,000,000
First Mortgage Bonds | Consumers Energy Company | 3.950% First Mortgage Bonds Due 2043      
Debt Instrument [Line Items]      
Interest rate   3.95%  
Principal amounts outstanding   $ 425,000,000 425,000,000
First Mortgage Bonds | Consumers Energy Company | 4.100% First Mortgage Bonds Due 2045      
Debt Instrument [Line Items]      
Interest rate   4.10%  
Principal amounts outstanding   $ 250,000,000 250,000,000
First Mortgage Bonds | Consumers Energy Company | 3.250% First Mortgage Bonds Due 2046      
Debt Instrument [Line Items]      
Interest rate   3.25%  
Principal amounts outstanding   $ 450,000,000 450,000,000
First Mortgage Bonds | Consumers Energy Company | 3.950% First Mortgage Bonds Due 2047      
Debt Instrument [Line Items]      
Interest rate   3.95%  
Principal amounts outstanding   $ 350,000,000 350,000,000
First Mortgage Bonds | Consumers Energy Company | 4.050% First Mortgage Bonds Due 2048      
Debt Instrument [Line Items]      
Interest rate   4.05%  
Principal amounts outstanding   $ 550,000,000 550,000,000
First Mortgage Bonds | Consumers Energy Company | 4.350% First Mortgage Bonds Due 2049      
Debt Instrument [Line Items]      
Interest rate   4.35%  
Principal amounts outstanding   $ 550,000,000 550,000,000
First Mortgage Bonds | Consumers Energy Company | 3.750% First Mortgage Bonds Due 2050      
Debt Instrument [Line Items]      
Interest rate   3.75%  
Principal amounts outstanding   $ 300,000,000 300,000,000
First Mortgage Bonds | Consumers Energy Company | 3.100% First Mortgage Bonds Due 2050      
Debt Instrument [Line Items]      
Interest rate   3.10%  
Principal amounts outstanding   $ 550,000,000 550,000,000
First Mortgage Bonds | Consumers Energy Company | 3.500% First Mortgage Bonds Due 2051      
Debt Instrument [Line Items]      
Interest rate   3.50%  
Principal amounts outstanding   $ 575,000,000 0
First Mortgage Bonds | Consumers Energy Company | 3.860% First Mortgage Bonds Due 2052      
Debt Instrument [Line Items]      
Interest rate   3.86%  
Principal amounts outstanding   $ 50,000,000 50,000,000
First Mortgage Bonds | Consumers Energy Company | 4.280% First Mortgage Bonds Due 2057      
Debt Instrument [Line Items]      
Interest rate   4.28%  
Principal amounts outstanding   $ 185,000,000 185,000,000
First Mortgage Bonds | Consumers Energy Company | 2.500% First Mortgage Bonds Due 2060      
Debt Instrument [Line Items]      
Interest rate   2.50%  
Principal amounts outstanding   $ 525,000,000 0
First Mortgage Bonds | Consumers Energy Company | 4.350% First Mortgage Bonds Due 2064      
Debt Instrument [Line Items]      
Interest rate   4.35%  
Principal amounts outstanding   $ 250,000,000 250,000,000
First Mortgage Bonds | Consumers Energy Company | Variable Rate First Mortgage Bonds Due 2069      
Debt Instrument [Line Items]      
Principal amounts outstanding   76,000,000 76,000,000
First Mortgage Bonds | Consumers Energy Company | Variable Rate First Mortgage Bonds Due 2070      
Debt Instrument [Line Items]      
Principal amounts outstanding   134,000,000 0
First Mortgage Bonds | Consumers Energy Company | Variable Rate First Mortgage Bonds Due 2070      
Debt Instrument [Line Items]      
Principal amounts outstanding   $ 127,000,000 0
First Mortgage Bonds | Consumers Energy Company | Variable Rate First Mortgage Bonds      
Debt Instrument [Line Items]      
Interest rate at period end   0.00%  
Three-month LIBOR plus a spread   0.30%  
Tax Exempt Revenue Bonds | Consumers Energy Company      
Debt Instrument [Line Items]      
Principal amounts outstanding   $ 75,000,000 110,000,000
Tax Exempt Revenue Bonds | Consumers Energy Company | Tax Exempt Revenue Bonds Due 2035      
Debt Instrument [Line Items]      
Principal amounts outstanding   0 35,000,000
Tax Exempt Revenue Bonds | Consumers Energy Company | 1.800% Tax Exempt Revenue Bonds Due 2049      
Debt Instrument [Line Items]      
Principal amounts outstanding   $ 75,000,000 75,000,000
Weighted average interest rate   1.80%  
Securitization bonds | Consumers Energy Company | Securitization Bonds      
Debt Instrument [Line Items]      
Principal amounts outstanding   $ 225,000,000 $ 251,000,000
Weighted average interest rate   3.25% 3.22%
CMS Energy      
Debt Instrument [Line Items]      
Principal amounts outstanding   $ 4,185,000,000 $ 3,385,000,000
Long-term debt   3,926,000,000 3,334,000,000
CMS Energy | Senior notes      
Debt Instrument [Line Items]      
Principal amounts outstanding   $ 1,975,000,000 2,275,000,000
CMS Energy | Senior notes | 5.050% Senior Notes Due 2022      
Debt Instrument [Line Items]      
Interest rate   5.05%  
Principal amounts outstanding   $ 0 300,000,000
CMS Energy | Senior notes | 3.875% Senior Notes Due 2024      
Debt Instrument [Line Items]      
Interest rate   3.875%  
Principal amounts outstanding   $ 250,000,000 250,000,000
CMS Energy | Senior notes | 3.600% Senior Notes Due 2025      
Debt Instrument [Line Items]      
Interest rate   3.60%  
Principal amounts outstanding   $ 250,000,000 250,000,000
CMS Energy | Senior notes | 3.000% Senior Notes Due 2026      
Debt Instrument [Line Items]      
Interest rate   3.00%  
Principal amounts outstanding   $ 300,000,000 300,000,000
CMS Energy | Senior notes | 2.950% Senior Notes Due 2027      
Debt Instrument [Line Items]      
Interest rate   2.95%  
Principal amounts outstanding   $ 275,000,000 275,000,000
CMS Energy | Senior notes | 3.450% Senior Notes Due 2027      
Debt Instrument [Line Items]      
Interest rate   3.45%  
Principal amounts outstanding   $ 350,000,000 350,000,000
CMS Energy | Senior notes | 4.700% Senior Notes Due 2043      
Debt Instrument [Line Items]      
Interest rate   4.70%  
Principal amounts outstanding   $ 250,000,000 250,000,000
CMS Energy | Senior notes | 4.875% Senior Notes Due 2044      
Debt Instrument [Line Items]      
Interest rate   4.875%  
Principal amounts outstanding   $ 300,000,000 300,000,000
CMS Energy | Term loans and revolving credit agreements | Term Loan Facility Due 2021      
Debt Instrument [Line Items]      
Principal amounts outstanding   $ 200,000,000 0
Interest rate at period end   0.60%  
Three-month LIBOR plus a spread   0.50%  
CMS Energy | Junior subordinated notes      
Debt Instrument [Line Items]      
Principal amounts outstanding   $ 2,010,000,000 1,110,000,000
CMS Energy | Junior subordinated notes | 4.750% Junior Subordinated Notes Due 2050      
Debt Instrument [Line Items]      
Interest rate   4.75%  
Principal amounts outstanding   $ 500,000,000 0
CMS Energy | Junior subordinated notes | 3.750% Junior Subordinated Notes Due 2050      
Debt Instrument [Line Items]      
Interest rate   3.75%  
Principal amounts outstanding   $ 400,000,000 0
CMS Energy | Junior subordinated notes | 5.625% Junior Subordinated Notes Due 2078      
Debt Instrument [Line Items]      
Interest rate   5.625%  
Principal amounts outstanding   $ 200,000,000 200,000,000
CMS Energy | Junior subordinated notes | 5.875% Junior Subordinated Notes Due 2078      
Debt Instrument [Line Items]      
Interest rate   5.875%  
Principal amounts outstanding   $ 280,000,000 280,000,000
CMS Energy | Junior subordinated notes | 5.875% Junior Subordinated Notes Due 2079      
Debt Instrument [Line Items]      
Interest rate   5.875%  
Principal amounts outstanding   $ 630,000,000 630,000,000
CMS Enterprises Including Subsidiaries | Term loans and revolving credit agreements | Term Loan Facility Due 2025      
Debt Instrument [Line Items]      
Principal amounts outstanding   $ 85,000,000 $ 92,000,000
Interest rate at period end   1.754% 3.445%
Three-month LIBOR plus a spread   1.50%  
Fixed interest rate   4.702%  
Forecast | CMS Enterprises Including Subsidiaries | Term loans and revolving credit agreements | Term Loan Facility Due 2025      
Debt Instrument [Line Items]      
Three-month LIBOR plus a spread 1.75%    
Fixed interest rate 4.952%    
v3.20.4
Financings And Capitalization (Major Long-Term Debt Transactions) (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Dec. 31, 2020
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Debt Instrument [Line Items]        
Principal Balance $ 3,161 $ 3,161    
Debt retirement, principal   1,325    
Loss on extinguishment of debt   16 $ 0 $ 16
Consumers Energy Company        
Debt Instrument [Line Items]        
Principal Balance 1,961 1,961    
Debt retirement, principal   1,025    
Term loans and revolving credit agreements | Term loan facility due January 2021 | Consumers Energy Company        
Debt Instrument [Line Items]        
Principal Balance 300 300    
Debt retirement, principal   300    
First Mortgage Bonds | 3.500% First Mortgage Bonds Due 2051 | Consumers Energy Company        
Debt Instrument [Line Items]        
Principal Balance $ 575 $ 575    
Interest rate 3.50% 3.50%    
First Mortgage Bonds | 2.500% First Mortgage Bonds Due 2060 | Consumers Energy Company        
Debt Instrument [Line Items]        
Principal Balance $ 525 $ 525    
Interest rate 2.50% 2.50%    
First Mortgage Bonds | Variable Rate First Mortgage Bonds Due May 2070 | Consumers Energy Company        
Debt Instrument [Line Items]        
Principal Balance $ 134 $ 134    
First Mortgage Bonds | Variable Rate First Mortgage Bonds Due October 2070 | Consumers Energy Company        
Debt Instrument [Line Items]        
Principal Balance 127 127    
First Mortgage Bonds | 0.350% First Mortgage Bonds Due 2023 | Consumers Energy Company        
Debt Instrument [Line Items]        
Principal Balance $ 300 $ 300    
Interest rate 0.35% 0.35%    
First Mortgage Bonds | 3.770% Percent First Mortgage Bonds Due 2020 | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate 3.77% 3.77%    
Debt retirement, principal   $ 100    
First Mortgage Bonds | 5.300% First Mortgage Bonds Due 2022 | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate 5.30% 5.30%    
Debt retirement, principal   $ 250    
First Mortgage Bonds | 2.850% First Mortgage Bonds Due 2022 | Consumers Energy Company        
Debt Instrument [Line Items]        
Interest rate 2.85% 2.85%    
Debt retirement, principal   $ 375    
CMS Energy        
Debt Instrument [Line Items]        
Principal Balance $ 1,200 1,200    
Debt retirement, principal   300    
CMS Energy | Term loans and revolving credit agreements | Term Loan Facility Due February 2021        
Debt Instrument [Line Items]        
Principal Balance 300 $ 300    
Debt retirement, principal 100      
Basis spread on variable rate   0.50%    
CMS Energy | Junior subordinated notes | 4.750% Junior Subordinated Notes Due 2050        
Debt Instrument [Line Items]        
Principal Balance $ 500 $ 500    
Interest rate 4.75% 4.75%    
Interest rate reset term   5 years    
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%    
CMS Energy | Junior subordinated notes | 3.750% Junior Subordinated Notes Due 2050        
Debt Instrument [Line Items]        
Principal Balance $ 400 $ 400    
Interest rate 3.75% 3.75%    
Interest rate reset term   5 years    
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%    
CMS Energy | Senior notes | 5.050% Senior Notes Due 2022        
Debt Instrument [Line Items]        
Interest rate 5.05% 5.05%    
Debt retirement, principal   $ 300    
Loss on extinguishment of debt   $ 16    
v3.20.4
Financings And Capitalization (Narrative) (Details) - USD ($)
1 Months Ended 12 Months Ended 24 Months Ended
Sep. 30, 2020
Jul. 31, 2020
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2019
Financing And Capitalization [Line Items]            
Debt retirement, principal     $ 1,325,000,000      
Limitation on payment of stock dividends     5,500,000,000      
Dividends paid     $ 637,000,000      
Common stock authorized (in shares)     350,000,000.0 350,000,000.0   350,000,000.0
Par value of common stock (in dollars per share)     $ 0.01      
Preferred stock authorized (in shares)     10,000,000      
Par value of preferred stock (in dollars per share)     $ 0.01      
Issuance of common stock, net of issuance costs     $ 253,000,000 $ 12,000,000 $ 41,000,000  
Stock offering program maximum value     $ 500,000,000      
Number of shares required to settle forward contracts (in shares)     6,666      
Variable Interest Entity, Primary Beneficiary | Aviator Wind            
Financing And Capitalization [Line Items]            
Ownership interest 51.00% 51.00%        
Debt retirement, principal $ 492,000,000          
Consumers Energy Company            
Financing And Capitalization [Line Items]            
Debt retirement, principal     $ 1,025,000,000      
Interest rate coverage ratio multiplier minimum to issue FMBs     200.00%      
Unrestricted retained earnings     $ 1,600,000,000      
Common stock authorized (in shares)     125,000,000.0 125,000,000.0   125,000,000.0
Consumers Energy Company | Credit Agreement            
Financing And Capitalization [Line Items]            
Maximum borrowing capacity     $ 350,000,000      
Consumers Energy Company | Commercial Paper            
Financing And Capitalization [Line Items]            
Short-term debt authorized borrowings     500,000,000      
Short-term borrowings outstanding     $ 0      
Tax Exempt Revenue Bonds Due 2035 | Consumers Energy Company | Tax Exempt Revenue Bonds            
Financing And Capitalization [Line Items]            
Debt repurchased   $ 35,000,000        
Forward Contracts            
Financing And Capitalization [Line Items]            
Forward contract indexed to issuer's equity           $ 250,000,000
Settlement Of Forward Contracts            
Financing And Capitalization [Line Items]            
Settlement of forward contract indexed to issuer's equity (in shares)     4,879,022      
Settlement rate per share (in dollars per share)     $ 48.86      
Issuance of common stock, net of issuance costs     $ 238,000,000      
v3.20.4
Financings and Capitalization (Debt Maturities) (Details)
$ in Millions
Dec. 31, 2020
USD ($)
Debt Instrument [Line Items]  
2021 $ 1,486
2022 608
2023 1,140
2024 917
2025 576
EnerBank  
Debt Instrument [Line Items]  
2021 915
2022 572
2023 477
2024 325
2025 244
CMS Energy  
Debt Instrument [Line Items]  
2021 200
2022 0
2023 0
2024 250
2025 250
CMS Enterprises Including Subsidiaries  
Debt Instrument [Line Items]  
2021 7
2022 8
2023 9
2024 10
2025 51
Consumers Energy Company  
Debt Instrument [Line Items]  
2021 364
2022 28
2023 654
2024 332
2025 $ 31
v3.20.4
Financings And Capitalization (Revolving Credit Facilities) (Details)
12 Months Ended
Dec. 31, 2020
USD ($)
Revolving Credit Facilities June 5, 2023 | Consumers Energy Company  
Line of Credit Facility [Line Items]  
Amount of Facility $ 850,000,000
Amount Borrowed 0
Letters of Credit Outstanding 7,000,000
Amount Available 843,000,000
Revolving Credit Facilities November 19, 2020 | Consumers Energy Company  
Line of Credit Facility [Line Items]  
Amount of Facility 250,000,000
Amount Borrowed 0
Letters of Credit Outstanding 1,000,000
Amount Available 249,000,000
Revolving Credit Facilities April 18, 2022 | Consumers Energy Company  
Line of Credit Facility [Line Items]  
Amount of Facility 30,000,000
Amount Borrowed 0
Letters of Credit Outstanding 30,000,000
Amount Available 0
Revolving Credit Facility | Consumers Energy Company  
Line of Credit Facility [Line Items]  
Average borrowings $ 1,000,000
Weighted average interest rate 1.425%
CMS Energy | Revolving Credit Facilities June 5, 2023  
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
Average borrowings $ 1,000,000
Weighted average interest rate 1.888%
CMS Enterprises Including Subsidiaries | Revolving Credit Facilities September 25, 2025  
Line of Credit Facility [Line Items]  
Amount of Facility $ 39,000,000
Amount Borrowed 0
Letters of Credit Outstanding 39,000,000
Amount Available 0
CMS Enterprises Including Subsidiaries | Revolving Credit Facilities September 30, 2025  
Line of Credit Facility [Line Items]  
Amount of Facility 18,000,000
Amount Borrowed 0
Letters of Credit Outstanding 8,000,000
Amount Available 10,000,000
Letter of Credit | CMS Enterprises Including Subsidiaries | Revolving Credit Facilities September 30, 2025  
Line of Credit Facility [Line Items]  
Amount Available 8,000,000
Borrowings $ 0
v3.20.4
Financings and Capitalization (Forward Stock Contracts) (Details) - $ / shares
Dec. 31, 2020
Dec. 22, 2020
Sep. 15, 2020
Forward Contracts Entered Into September 15, 2020 And Maturing December 31, 2021      
Debt and Equity Securities, FV-NI [Line Items]      
Number of Shares     846,759
Initial forward price (in dollars per share) $ 60.53   $ 61.04
Forward Contracts Entered Into December 22, 2020 And Maturing June 22, 2022      
Debt and Equity Securities, FV-NI [Line Items]      
Number of Shares   115,595  
Initial forward price (in dollars per share) $ 61.81 $ 61.81  
v3.20.4
Financings and Capitalization (Preferred Stock of Subsidiary) (Details) - $ / shares
Dec. 31, 2020
Dec. 31, 2019
Debt and Equity Securities, FV-NI [Line Items]    
Par value of preferred stock (in dollars per share) $ 0.01  
Preferred stock authorized (in shares) 10,000,000  
Preferred Stock $4.50 Series | Consumers Energy Company    
Debt and Equity Securities, FV-NI [Line Items]    
Par value of preferred stock (in dollars per share) $ 100 $ 100
Optional redemption price (in dollars per share) $ 110 $ 110
Preferred stock authorized (in shares) 7,500,000 7,500,000
Number of shares outstanding (in shares) 373,148 373,148
v3.20.4
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Assets    
Restricted cash equivalents $ 17 $ 17
Derivative instruments 1 1
Liabilities    
Derivative instruments 17 8
Consumers Energy Company    
Assets    
Restricted cash equivalents 15 17
Derivative instruments 1 1
Liabilities    
Derivative instruments 0 0
Fair Value, Inputs, Level 1    
Assets    
Restricted cash equivalents 17 17
Nonqualified deferred compensation plan assets 23 18
Liabilities    
Nonqualified deferred compensation plan liabilities 23 18
Fair Value, Inputs, Level 1 | Consumers Energy Company    
Assets    
Restricted cash equivalents 15 17
Nonqualified deferred compensation plan assets 18 14
Liabilities    
Nonqualified deferred compensation plan liabilities 18 14
Fair Value, Inputs, Level 1, 2 and 3    
Assets    
Total assets 41 36
Liabilities    
Total liabilities 40 26
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company    
Assets    
Total assets 34 33
Liabilities    
Total liabilities 18 14
Common Stock | Fair Value, Inputs, Level 1 | Consumers Energy Company    
Assets    
CMS Energy common stock $ 0 $ 1
v3.20.4
Fair Value Measurements - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash flow hedge gain (loss) $ (6) $ (4) $ (2)
Derivative instruments 17 8  
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Notional amount 85    
Other Liabilities | Designated as Hedging Instrument | Cash Flow Hedging      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Derivative instruments 9 5  
EnerBank | Designated as Hedging Instrument | Fair Value Hedging | Interest Rate Swap, Notes Receivable      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Notional amount 134    
Loss on derivative 5    
Gain on hedged item 5    
EnerBank | Other Liabilities | Designated as Hedging Instrument | Fair Value Hedging      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Derivative instruments $ 6 $ 1  
v3.20.4
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Liabilities    
Current accounts receivable $ 12,000,000 $ 13,000,000
EnerBank notes receivable, net of allowance for loan losses 275,000,000 242,000,000
Current portion of long term debt 1,486,000,000 1,111,000,000
Current portion of long-term payables 6,000,000 1,000,000
Carrying Amount    
Assets    
Long-term receivables 17,000,000 20,000,000
Notes receivable 2,887,000,000 2,500,000,000
Debt Securities, Held-to-maturity, Fair Value 28,000,000 26,000,000
Liabilities    
Long-term debt 15,120,000,000 13,062,000,000
Long-term payables 33,000,000 30,000,000
Fair Value    
Assets    
Long-term receivables 17,000,000 20,000,000
Notes receivable 3,248,000,000 2,652,000,000
Debt Securities, Held-to-maturity, Fair Value 29,000,000 26,000,000
Liabilities    
Long-term debt 17,512,000,000 14,185,000,000
Long-term payables 35,000,000 32,000,000
Consumers Energy Company    
Liabilities    
Current portion of long term debt 364,000,000 202,000,000
DB SERP note receivable – related party 7,000,000 7,000,000
Consumers Energy Company | Carrying Amount    
Assets    
Long-term receivables 17,000,000 20,000,000
Notes receivable related party 107,000,000 103,000,000
Liabilities    
Long-term debt 8,106,000,000 7,250,000,000
Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 17,000,000 20,000,000
Notes receivable related party 107,000,000 103,000,000
Liabilities    
Long-term debt 9,801,000,000 8,010,000,000
Fair Value, Inputs, Level 1 | Fair Value    
Assets    
Long-term receivables 0 0
Notes receivable 0 0
Debt Securities, Held-to-maturity, Fair Value 0 0
Liabilities    
Long-term debt 1,249,000,000 1,197,000,000
Long-term payables 0 0
Fair Value, Inputs, 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
Notes receivable 0 0
Debt Securities, Held-to-maturity, Fair Value 29,000,000 26,000,000
Liabilities    
Long-term debt 14,178,000,000 11,048,000,000
Long-term payables 0 0
Level 2 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 0 0
Notes receivable related party 0 0
Liabilities    
Long-term debt 7,716,000,000 6,070,000,000
Level 3 | Fair Value    
Assets    
Long-term receivables 17,000,000 20,000,000
Notes receivable 3,248,000,000 2,652,000,000
Debt Securities, Held-to-maturity, Fair Value 0 0
Liabilities    
Long-term debt 2,085,000,000 1,940,000,000
Long-term payables 35,000,000 32,000,000
Level 3 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 17,000,000 20,000,000
Notes receivable related party 107,000,000 103,000,000
Liabilities    
Long-term debt 2,085,000,000 1,940,000,000
EnerBank    
Liabilities    
EnerBank notes receivable, net of allowance for loan losses 275,000,000 242,000,000
Unrealized gain on mortgage backed security $ 1,000,000 $ 0
v3.20.4
Financial Instruments (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Financial Instruments [Line Items]      
Portion of long-term debt supported by third-party credit enhancements   $ 35  
Proceeds from DB SERP investments $ 0 0 $ 146
Consumers Energy Company      
Financial Instruments [Line Items]      
Proceeds from DB SERP investments $ 0 $ 0 106
DB SERP      
Financial Instruments [Line Items]      
Proceeds from DB SERP investments     142
DB SERP | Consumers Energy Company      
Financial Instruments [Line Items]      
Proceeds from DB SERP investments     $ 103
v3.20.4
Notes Receivable (Schedule Of Current And Non-Current Notes Receivable) (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]    
EnerBank notes receivable, net of allowance for loan losses $ 275 $ 242
Total notes receivable 2,887 2,500
Consumers Energy Company    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
DB SERP note receivable – related party 7 7
DB SERP note receivable – related party 100 96
Total notes receivable 107 103
EnerBank    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
EnerBank notes receivable, net of allowance for loan losses 275 242
EnerBank notes receivable, net of allowance for loan losses $ 2,612 $ 2,258
v3.20.4
Notes Receivable (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
CMS Energy Note Payable      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Interest rate     4.10%
EnerBank      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Unearned income $ 128 $ 134  
Sale of notes receivable 246    
Gain on sale of notes receivable 6    
Delinquent loans 32 $ 33  
EnerBank | Unfunded Loan Commitment      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Unfunded loan commitments 348    
Allowance for expected credit loss on off balance sheet commitments $ 6    
EnerBank | Credit Concentration Risk | Loans Originated Within Last Five Years      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Concentration risk, percentage 97.00%    
EnerBank | Credit Concentration Risk | FICO Score, Between Good And Excellent      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Concentration risk, percentage 86.00%    
EnerBank | Retail Installment Contracts      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Consumer retail installment contracts $ 90    
EnerBank | Interest Rate Swap, Notes Receivable | Fair Value Hedging | Designated as Hedging Instrument      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Notional amount $ 134    
v3.20.4
Notes Receivable (Schedule Of Allowance For Loan Losses) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Jan. 01, 2020
Notes, Loans, And Financing Receivable, Net Rollforward [Roll Forward]      
Allowance for loan losses, at beginning of period $ 33 $ 24  
Provision for loan losses 60 38  
Charge-offs (39) (35)  
Recoveries 7 6  
Allowance for loan losses, at end of period 123 33  
Unfunded Loan Commitment | EnerBank      
Notes, Loans, And Financing Receivable, Net Rollforward [Roll Forward]      
Allowance for expected credit loss on off balance sheet commitments 6    
Cumulative Effect, Period of Adoption, Adjustment | EnerBank      
Notes, Loans, And Financing Receivable, Net Rollforward [Roll Forward]      
Allowance for loan losses, at beginning of period $ 62 0  
Allowance for loan losses, at end of period   $ 62  
Cumulative Effect, Period of Adoption, Adjustment | Unfunded Loan Commitment | EnerBank      
Notes, Loans, And Financing Receivable, Net Rollforward [Roll Forward]      
Allowance for expected credit loss on off balance sheet commitments     $ 3
v3.20.4
Plant, Property, and Equipment (Schedule Of Plant, Property, and Equipment) (Details)
$ in Millions
12 Months Ended
Dec. 31, 2020
USD ($)
coal_fueled_electric_generating_unit
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Public Utility, Property, Plant and Equipment [Line Items]      
Plant, property, and equipment, gross $ 27,907 $ 25,390 $ 24,400
Construction work in progress 1,085 896  
Accumulated depreciation and amortization (7,953) (7,360)  
Total plant, property, and equipment 21,039 18,926  
Regulatory assets 2,653 2,489  
Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Plant, property, and equipment, gross 26,757 24,963 23,963
Assets under finance leases and other financing 336 340 $ 309
Construction work in progress 1,058 879  
Accumulated depreciation and amortization (7,844) (7,272)  
Total plant, property, and equipment 19,971 18,570  
Plant additions 2,000 2,000  
Plant retirements 220 380  
Regulatory assets $ 2,653 2,489  
Consumers Energy Company | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, consumers 3 years    
Consumers Energy Company | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, consumers 125 years    
Generation | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Generation $ 6,376 5,942  
Generation | Consumers Energy Company | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, generation 22 years    
Generation | Consumers Energy Company | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, generation 125 years    
Distribution | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Distribution $ 9,130 8,519  
Distribution | Consumers Energy Company | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, distribution 20 years    
Distribution | Consumers Energy Company | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, distribution 75 years    
Transmission | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Transmission $ 0 113  
Transmission | Consumers Energy Company | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, transmission 46 years    
Transmission | Consumers Energy Company | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, transmission 75 years    
Other | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Other $ 1,326 1,258  
Other | Consumers Energy Company | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, other 5 years    
Other | Consumers Energy Company | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, other 50 years    
Assets under finance leases and other financing obligations | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Assets under finance leases and other financing $ 323 326  
Distribution | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Distribution $ 5,702 5,235  
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 $ 2,003 1,752  
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 $ 1,046 987  
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 $ 817 797  
Other | Consumers Energy Company | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, other 5 years    
Other | Consumers Energy Company | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, other 50 years    
Finance leases | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Assets under finance leases and other financing $ 13 14  
Other non-utility property | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Other non-utility property $ 21 20  
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    
Costs of coal-fueled electric generating units to be retired | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Number of units | coal_fueled_electric_generating_unit 2    
Natural Gas | Underground Storage Facilities | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Other $ 26 26  
EnerBank | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, Enterprises and EnerBank 1 year    
EnerBank | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, Enterprises and EnerBank 7 years    
Enterprises independent power production      
Public Utility, Property, Plant and Equipment [Line Items]      
Plant, property, and equipment, gross $ 1,112 403  
Enterprises independent power production | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, Enterprises and EnerBank 3 years    
Enterprises independent power production | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, Enterprises and EnerBank 40 years    
Enterprises Other      
Public Utility, Property, Plant and Equipment [Line Items]      
Plant, property, and equipment, gross $ 1 2  
Enterprises Other | Minimum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, Enterprises and EnerBank 3 years    
Enterprises Other | Maximum      
Public Utility, Property, Plant and Equipment [Line Items]      
Estimated depreciable life in years, Enterprises and EnerBank 5 years    
Costs of coal-fueled electric generating units to be retired | Consumers Energy Company      
Public Utility, Property, Plant and Equipment [Line Items]      
Regulatory assets $ 678 $ 667  
v3.20.4
Plant, Property, and Equipment (Schedule of Finite-Lived Intangible Assets by Major Class Table) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost $ 1,134 $ 1,114
Accumulated Amortization  667 615
Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 1,104 1,100
Accumulated Amortization  658 607
Plant additions 2,000 2,000
Plant retirements 220 380
Software development    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 883 882
Accumulated Amortization  577 529
Software development | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 856 869
Accumulated Amortization  568 521
Leasehold improvements    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 10 9
Accumulated Amortization  7 7
Leasehold improvements | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 10 9
Accumulated Amortization  7 7
Intangible Plant | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Plant additions 69 67
Plant retirements 65 193
Rights of way    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 197 180
Accumulated Amortization  57 55
Rights of way | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 197 180
Accumulated Amortization  57 55
Franchises and consents    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 16 16
Accumulated Amortization  10 9
Franchises and consents | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 16 16
Accumulated Amortization  10 9
Other intangible assets    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 28 27
Accumulated Amortization  16 15
Other intangible assets | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Gross cost 25 26
Accumulated Amortization  $ 16 $ 15
Minimum | Software development    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 1 year  
Minimum | Software development | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 3 years  
Minimum | Rights of way    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 50 years  
Minimum | Rights of way | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 50 years  
Minimum | Franchises and consents    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 5 years  
Minimum | Franchises and consents | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 5 years  
Maximum | Software development    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 15 years  
Maximum | Software development | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 15 years  
Maximum | Rights of way    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 85 years  
Maximum | Rights of way | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 85 years  
Maximum | Franchises and consents    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 50 years  
Maximum | Franchises and consents | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Amortization Life in Years 50 years  
v3.20.4
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, 2020
Dec. 31, 2019
Dec. 31, 2018
Electric Utility      
Property, Plant and Equipment [Line Items]      
AFUDC Capitalization rate 6.90% 6.40% 6.90%
Gas Utility      
Property, Plant and Equipment [Line Items]      
AFUDC Capitalization rate 5.70% 5.80% 5.90%
v3.20.4
Plant, Property, and Equipment (Schedule of Finance Leases and Other Financing Obligations) (Details) - Consumers Energy Company - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Finance Leases and Other Financing Obligations, Rollforward [Roll Forward]    
Balance at beginning of period $ 340 $ 309
Additions 0 26
Net retirements and other adjustments (4) 5
Balance at end of period 336 340
Finance lease accumulated amortization $ 254 $ 239
v3.20.4
Plant, Property, and Equipment (Schedule Of Depreciation And Amortization) (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Public Utility, Property, Plant and Equipment [Line Items]    
Accumulated depreciation and amortization $ 7,953 $ 7,360
Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Consumers accumulated depreciation and amortization 7,844 7,272
Non-utility plant assets    
Public Utility, Property, Plant and Equipment [Line Items]    
Accumulated depreciation and amortization 112 91
Non-utility plant assets | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Consumers accumulated depreciation and amortization 3 3
Utility plant assets    
Public Utility, Property, Plant and Equipment [Line Items]    
Accumulated depreciation and amortization 7,841 7,269
Utility plant assets | Consumers Energy Company    
Public Utility, Property, Plant and Equipment [Line Items]    
Consumers accumulated depreciation and amortization $ 7,841 $ 7,269
v3.20.4
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, 2020
Dec. 31, 2019
Dec. 31, 2018
Electric utility property      
Public Utility, Property, Plant and Equipment [Line Items]      
Composite depreciation rate 3.90% 3.90% 3.90%
Gas utility property      
Public Utility, Property, Plant and Equipment [Line Items]      
Composite depreciation rate 2.90% 2.90% 2.90%
Other property      
Public Utility, Property, Plant and Equipment [Line Items]      
Composite depreciation rate 9.80% 10.00% 10.10%
v3.20.4
Plant, Property, and Equipment (Schedule Of Depreciation And Amortization Expense) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Property, Plant and Equipment [Line Items]      
Depreciation expense – plant, property, and equipment $ 902 $ 842 $ 778
Total depreciation and amortization expense 1,048 992 933
Securitized regulatory assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 26 26 25
Software      
Property, Plant and Equipment [Line Items]      
Amortization expense 116 121 127
Other intangible assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 4 3 3
Consumers Energy Company      
Property, Plant and Equipment [Line Items]      
Depreciation expense – plant, property, and equipment 881 827 768
Total depreciation and amortization expense 1,023 975 921
Consumers Energy Company | Securitized regulatory assets      
Property, Plant and Equipment [Line Items]      
Amortization expense 26 26 25
Consumers Energy Company | Software      
Property, Plant and Equipment [Line Items]      
Amortization expense 112 119 125
Consumers Energy Company | Other intangible assets      
Property, Plant and Equipment [Line Items]      
Amortization expense $ 4 $ 3 $ 3
v3.20.4
Plant, Property, and Equipment (Schedule Of Estimated Amortization Expense For Intangibles) (Details)
$ in Millions
Dec. 31, 2020
USD ($)
Public Utility, Property, Plant and Equipment [Line Items]  
2021 $ 120
2022 115
2023 100
2024 89
2025 86
Consumers Energy Company  
Public Utility, Property, Plant and Equipment [Line Items]  
2021 115
2022 111
2023 97
2024 86
2025 $ 85
v3.20.4
Plant, Property, and Equipment (Jointly Owned Regulated Utility Facilities) (Details) - Consumers Energy Company
$ in Millions
Dec. 31, 2020
USD ($)
J.H. Campbell Unit 3  
Public Utility, Property, Plant and Equipment [Line Items]  
Ownership share 93.30%
Utility plant in service $ 1,743
Accumulated depreciation (822)
Construction work in progress 12
Net investment $ 933
Ludington  
Public Utility, Property, Plant and Equipment [Line Items]  
Ownership share 51.00%
Utility plant in service $ 489
Accumulated depreciation (188)
Construction work in progress 78
Net investment 379
Other  
Public Utility, Property, Plant and Equipment [Line Items]  
Utility plant in service 381
Accumulated depreciation (107)
Construction work in progress 12
Net investment $ 286
v3.20.4
Leases and Palisades Financing - Assets and Liabilities of Lessee (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Operating leases    
Right-of-use assets $ 34 $ 47
Lease liabilities    
Current lease liabilities 9 9
Noncurrent lease liabilities 25 37
Finance leases    
Right-of-use assets 65 71
Lease liabilities    
Finance lease liability 60  
Current lease liabilities 7 6
Non-current lease liabilities $ 53 $ 60
Weighted-average remaining lease term (in years)    
Operating leases 19 years 17 years
Finance leases 12 years 12 years
Weighted-average discount rate    
Operating leases 3.90% 3.80%
Finance leases 1.80% 1.90%
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] us-gaap:OtherAssetsNoncurrent  
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] us-gaap:OtherLiabilitiesCurrent us-gaap:OtherLiabilitiesCurrent
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] us-gaap:OtherLiabilitiesNoncurrent us-gaap:OtherLiabilitiesNoncurrent
Consumers Energy Company    
Operating leases    
Right-of-use assets $ 28 $ 40
Lease liabilities    
Current lease liabilities 7 8
Noncurrent lease liabilities 21 32
Finance leases    
Right-of-use assets 65 71
Lease liabilities    
Finance lease liability 60  
Current lease liabilities 7 6
Non-current lease liabilities $ 53 $ 60
Weighted-average remaining lease term (in years)    
Operating leases 18 years 14 years
Finance leases 12 years 12 years
Weighted-average discount rate    
Operating leases 3.80% 3.70%
Finance leases 1.80% 1.90%
Related Party Lease    
Lease liabilities    
Finance lease liability $ 25 $ 25
Current lease liabilities $ 1 $ 1
v3.20.4
Leases and Palisades Financing - Schedule of Lease Costs (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Lessee, Lease, Description [Line Items]    
Operating lease costs $ 10 $ 11
Finance lease costs    
Amortization of right-of-use assets 6 6
Interest on lease liabilities 17 18
Variable lease costs 94 95
Short-term lease costs 17 16
Total lease costs 144 146
Consumers Energy Company    
Lessee, Lease, Description [Line Items]    
Operating lease costs 9 9
Finance lease costs    
Amortization of right-of-use assets 6 6
Interest on lease liabilities 17 18
Variable lease costs 94 95
Short-term lease costs 16 16
Total lease costs $ 142 $ 144
v3.20.4
Leases and Palisades Financing - Schedule of Lessee Cash Flows (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Cash paid for amounts included in the measurement of lease liabilities    
Cash used in operating activities for operating leases $ 11 $ 11
Cash used in operating activities for finance leases 17 18
Cash used in financing activities for finance leases 6 7
Consumers Energy Company    
Cash paid for amounts included in the measurement of lease liabilities    
Cash used in operating activities for operating leases 9 9
Cash used in operating activities for finance leases 17 18
Cash used in financing activities for finance leases $ 6 $ 7
v3.20.4
Leases and Palisades Financing - Minimum Annual Rental Commitments post Topic 842 (Details)
$ in Millions
Dec. 31, 2020
USD ($)
Operating Leases  
2021 $ 10
2022 4
2023 2
2024 1
2025 1
2026 and thereafter 34
Total minimum lease payments 52
Less discount 18
Present value of minimum lease payments 34
Finance Leases  
2021 22
2022 19
2023 18
2024 16
2025 14
2026 and thereafter 77
Total minimum lease payments 166
Less discount 106
Present value of minimum lease payments 60
Consumers Energy Company  
Operating Leases  
2021 8
2022 4
2023 2
2024 1
2025 1
2026 and thereafter 27
Total minimum lease payments 43
Less discount 15
Present value of minimum lease payments 28
Finance Leases  
2021 22
2022 19
2023 18
2024 16
2025 14
2026 and thereafter 77
Total minimum lease payments 166
Less discount 106
Present value of minimum lease payments 60
Pipelines and PPAs  
Finance Leases  
2021 17
2022 14
2023 13
2024 13
2025 13
2026 and thereafter 66
Total minimum lease payments 136
Less discount 103
Present value of minimum lease payments 33
Pipelines and PPAs | Consumers Energy Company  
Finance Leases  
2021 17
2022 14
2023 13
2024 13
2025 13
2026 and thereafter 66
Total minimum lease payments 136
Less discount 103
Present value of minimum lease payments 33
Other  
Finance Leases  
2021 5
2022 5
2023 5
2024 3
2025 1
2026 and thereafter 11
Total minimum lease payments 30
Less discount 3
Present value of minimum lease payments 27
Other | Consumers Energy Company  
Finance Leases  
2021 5
2022 5
2023 5
2024 3
2025 1
2026 and thereafter 11
Total minimum lease payments 30
Less discount 3
Present value of minimum lease payments $ 27
v3.20.4
Leases and Palisades Financing - Lessor Leases Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]    
Minimum rental payments to be received 2026 and thereafter $ 10  
Lease receivables 5  
Unearned income 5  
Maximum    
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]    
Minimum rental payments to be received 2021 1  
Minimum annual rental payments to be received in 2022 1  
Minimum annual rental payments to be received in 2023 1  
Minimum annual rental payments to be received in 2024 1  
Minimum rental payments to be received in 2025 1  
Consumers Energy Company    
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]    
Minimum rental payments to be received 2021 1  
Minimum annual rental payments to be received in 2022 1  
Minimum annual rental payments to be received in 2023 1  
Minimum annual rental payments to be received in 2024 1  
Minimum rental payments to be received in 2025 1  
Minimum rental payments to be received 2026 and thereafter 18  
Lease receivables 10  
Unearned income 13  
Power Sales Agreement    
Lessor, Lease, Description [Line Items]    
Leasing income 148 $ 174
Variable lease income $ 93 $ 119
CMS Energy Subsidiary | Natural Gas Transportation Agreement | Consumers Energy Company    
Lessor, Lease, Description [Line Items]    
Direct financing lease term 20 years  
v3.20.4
Leases and Palisades Financing - Schedule of Future Payments to be Received (Details)
$ in Millions
Dec. 31, 2020
USD ($)
Operating Leases  
2021 $ 54
2022 48
2023 43
2024 43
2025 44
2026 and thereafter 18
Total minimum lease payments $ 250
v3.20.4
Leases and Palisades Financing - Palisades Financing (Details)
$ in Millions
12 Months Ended
Dec. 31, 2020
USD ($)
MW
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2007
Finance Obligation        
2021 $ 1,486      
2022 608      
Total minimum payments 15,272 $ 13,188    
Less discount 33 27    
Less current portion 1,486 1,111    
Non-current portion 13,634 11,951    
Consumers Energy Company        
Finance Obligation        
2021 364      
2022 28      
Total minimum payments 8,197 7,322    
Less discount 29 23    
Less current portion 364 202    
Non-current portion $ 7,742 7,048    
Financing Obligation | Consumers Energy Company | Palisades Power Purchase Agreement        
Other Commitments [Line Items]        
Finance obligation term       15 years
Annual average capacity (in MW) | MW 798      
Amortization and interest expense $ 14 $ 15 $ 16  
Palisades asset 16      
Palisades financing obligation 16      
Finance Obligation        
2021 14      
2022 3      
Total minimum payments 17      
Less discount 1      
Financing obligation 16      
Less current portion 13      
Non-current portion $ 3      
v3.20.4
Asset Retirement Obligations (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period $ 477 $ 432
Incurred 65 55
Settled (41) (38)
Accretion 24 21
Cash Flow Revisions 28 7
ARO Liability, end of period 553 477
Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 474 428
Incurred 46 55
Settled (41) (37)
Accretion 23 21
Cash Flow Revisions 28 7
ARO Liability, end of period 530 474
Gas treating plant and gas wells    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 0 1
Incurred   0
Settled   (1)
Accretion   0
Cash Flow Revisions   0
ARO Liability, end of period   0
Renewable generation assets    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 3 3
Incurred 19 0
Settled 0 0
Accretion 1 0
Cash Flow Revisions 0 0
ARO Liability, end of period 23 3
Renewable generation assets | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 21 11
Incurred 24 10
Settled 0 0
Accretion 1 0
Cash Flow Revisions 28 0
ARO Liability, end of period 74 21
Coal ash disposal areas | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 166 179
Incurred 0 0
Settled (24) (27)
Accretion 6 7
Cash Flow Revisions 0 7
ARO Liability, end of period 148 166
Gas distribution cut, purge, and cap | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 231 205
Incurred 1 22
Settled (5) (8)
Accretion 13 12
Cash Flow Revisions 0 0
ARO Liability, end of period 240 231
Asbestos abatement | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 34 33
Incurred 0 0
Settled 0 (1)
Accretion 2 2
Cash Flow Revisions 0 0
ARO Liability, end of period 36 34
Gas wells plug and abandon | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 22 0
Incurred 16 23
Settled (7) (1)
Accretion 1 0
Cash Flow Revisions 0 0
ARO Liability, end of period 32 22
Cable under Straits of Mackinac | Consumers Energy Company    
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]    
ARO Liability, at beginning of period 0  
Incurred 5  
Settled (5)  
Accretion 0  
Cash Flow Revisions 0  
ARO Liability, end of period $ 0 $ 0
v3.20.4
Retirement Benefits (Narrative) (Details)
$ in Millions
4 Months Ended 12 Months Ended
Aug. 31, 2020
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2020
USD ($)
year
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Defined Benefit Plan Disclosure [Line Items]          
Union employees percentage   41.00% 41.00%    
Consumers Energy Company          
Defined Benefit Plan Disclosure [Line Items]          
Union employees percentage   44.00% 44.00%    
DB Pension Plans          
Defined Benefit Plan Disclosure [Line Items]          
Settlement loss $ 36 $ 10      
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   2,900 $ 2,900 $ 2,600  
DB Pension Plans | Consumers Energy Company          
Defined Benefit Plan Disclosure [Line Items]          
Period for gains or losses to be included in market related value     5 years    
DB Pension Plans | Consumers Energy Company | Pension Costs          
Defined Benefit Plan Disclosure [Line Items]          
Settlement loss $ 35 $ 10      
DB Pension Plans | Equity securities          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   53.00% 53.00%    
DB Pension Plans | Fixed-income securities          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   35.00% 35.00%    
DB Pension Plans | Multi-asset investments          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   12.00% 12.00%    
OPEB Plan          
Defined Benefit Plan Disclosure [Line Items]          
Settlement loss     $ 0 $ 0 $ 0
Retirement age requirement | year     55    
Retirement years of service     10 years    
Retirement years of service with disability     15 years    
Ultimate health care cost trend rate   4.75% 4.75%    
Year health care cost trend rate reaches ultimate trend rate     2027    
Estimated time of amortization of gains losses     9 years 10 years 10 years
Estimated time of prior service cost     9 years    
OPEB Plan | Consumers Energy Company          
Defined Benefit Plan Disclosure [Line Items]          
Retirement age requirement | year     55    
Retirement years of service     10 years    
Retirement years of service with disability     15 years    
Ultimate health care cost trend rate   4.75% 4.75%    
Year health care cost trend rate reaches ultimate trend rate     2027    
Estimated time of prior service cost     9 years    
Postretirement Health Trusts | Equity securities          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   50.00% 50.00%    
Postretirement Health Trusts | Fixed-income securities          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   30.00% 30.00%    
Postretirement Health Trusts | Multi-asset investments          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   20.00% 20.00%    
Postretirement Life Trusts | Equity securities          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   42.00% 42.00%    
Postretirement Life Trusts | Fixed-income securities          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   28.00% 28.00%    
Postretirement Life Trusts | Multi-asset investments          
Defined Benefit Plan Disclosure [Line Items]          
Target allocation percentage   30.00% 30.00%    
Defined Company Contribution Plan          
Defined Benefit Plan Disclosure [Line Items]          
Plan cost, defined contribution plan     $ 33 $ 30 $ 26
Defined Company Contribution Plan | Consumers Energy Company          
Defined Benefit Plan Disclosure [Line Items]          
Plan cost, defined contribution plan     31 28 25
DC SERP          
Defined Benefit Plan Disclosure [Line Items]          
Plan cost, defined contribution plan     $ 2 2 1
Minimum years of participation before vesting     5 years    
Trust assets   $ 11 $ 11 8  
401 (K) Plan          
Defined Benefit Plan Disclosure [Line Items]          
Employer match of eligible wages     3.00%    
Plan cost, defined contribution plan     $ 30 28 27
Employer match of eligible contributions     100.00%    
Secondary employer match of eligible contributions     50.00%    
Secondary employer match of eligible wages     2.00%    
401 (K) Plan | Consumers Energy Company          
Defined Benefit Plan Disclosure [Line Items]          
Plan cost, defined contribution plan     $ 29 $ 27 $ 26
Pension Plan A | DB Pension Plans          
Defined Benefit Plan Disclosure [Line Items]          
Estimated time of amortization of gains losses     8 years 9 years 9 years
Estimated time of prior service cost     8 years    
ABO       $ 1,398  
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     19 years 20 years 20 years
DB Pension Plan A Settlement | DB Pension Plans | Pension Costs          
Defined Benefit Plan Disclosure [Line Items]          
Regulatory asset, amortization period     9 years    
Minimum | Defined Company Contribution Plan          
Defined Benefit Plan Disclosure [Line Items]          
Employer match of eligible wages     5.00%    
Minimum | DC SERP          
Defined Benefit Plan Disclosure [Line Items]          
Plan contribution percentage     5.00%    
Maximum | Defined Company Contribution Plan          
Defined Benefit Plan Disclosure [Line Items]          
Employer match of eligible wages     7.00%    
Maximum | DC SERP          
Defined Benefit Plan Disclosure [Line Items]          
Plan contribution percentage     15.00%    
Under Age 65 | OPEB Plan          
Defined Benefit Plan Disclosure [Line Items]          
Health care cost trend rate assumed next fiscal year   6.50% 6.50% 6.75%  
Under Age 65 | OPEB Plan | Consumers Energy Company          
Defined Benefit Plan Disclosure [Line Items]          
Health care cost trend rate assumed next fiscal year   6.50% 6.50% 6.75%  
Over Age 65 | OPEB Plan          
Defined Benefit Plan Disclosure [Line Items]          
Health care cost trend rate assumed next fiscal year   7.00% 7.00% 7.25%  
Over Age 65 | OPEB Plan | Consumers Energy Company          
Defined Benefit Plan Disclosure [Line Items]          
Health care cost trend rate assumed next fiscal year   7.00% 7.00% 7.25%  
v3.20.4
Retirement Benefits (Schedule Of SERP Trust Assets, ABO And Contributions) (Details) - DB SERP - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]      
Trust assets $ 0 $ 0 $ 0
ABO 159 149  
Contributions 8 0  
Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Trust assets 0 0 $ 0
ABO 115 107  
Contributions 5 0  
Trust assets      
Defined Benefit Plan Disclosure [Line Items]      
Trust assets 146 143  
Trust assets | Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Trust assets $ 107 $ 104  
v3.20.4
Retirement Benefits (Schedule Of Assumptions Used) (Details)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
DB Pension Plans      
Weighted average for net periodic benefit cost      
Expected long-term rate of return on plan assets 6.75% 7.00% 7.00%
Actual rate of return on plan assets 13.60% 21.00% (6.70%)
DB SERP      
Weighted average for benefit obligations      
Discount rate 2.40% 3.15% 4.32%
Rate of compensation increase 5.50% 5.50% 5.50%
Weighted average for net periodic benefit cost      
Service cost discount rate 3.46% 4.58% 3.83%
Interest cost discount rate 2.74% 3.94% 3.26%
Rate of compensation increase 5.50% 5.50% 5.50%
OPEB Plan      
Weighted average for benefit obligations      
Discount rate 2.69% 3.32% 4.42%
Weighted average for net periodic benefit cost      
Service cost discount rate 3.57% 4.63% 3.93%
Interest cost discount rate 2.88% 4.03% 3.35%
Expected long-term rate of return on plan assets 6.75% 7.00% 7.00%
Pension Plan A | DB Pension Plans      
Weighted average for benefit obligations      
Discount rate 2.73% 3.37% 4.48%
Rate of compensation increase 3.70% 3.50% 3.50%
Weighted average for net periodic benefit cost      
Service cost discount rate 3.44% 4.55% 3.85%
Interest cost discount rate 2.92% 4.08% 3.39%
Rate of compensation increase 3.50% 3.50% 3.50%
Pension Plan B | DB Pension Plans      
Weighted average for benefit obligations      
Discount rate 2.41% 3.17% 4.32%
Weighted average for net periodic benefit cost      
Interest cost discount rate 2.74% 3.93% 3.24%
v3.20.4
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
DB Pension Plans and DB SERP      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost $ 50 $ 41 $ 48
Interest cost 83 103 95
Settlement loss 1 0 0
Expected return on plan assets (191) (162) (149)
Amortization of      
Net loss 95 50 76
Prior service cost (credit) 1 1 3
Settlement loss 2 0 0
Net periodic cost (credit) 41 33 73
DB Pension Plans and DB SERP | Consumers Energy Company      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost 49 40 47
Interest cost 78 97 88
Expected return on plan assets (181) (153) (139)
Amortization of      
Net loss 90 47 73
Prior service cost (credit) 1 1 3
Settlement loss 2 0 0
Net periodic cost (credit) 39 32 72
OPEB Plan      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost 16 14 17
Interest cost 33 41 34
Settlement loss 0 0 0
Expected return on plan assets (100) (88) (97)
Amortization of      
Net loss 15 26 15
Prior service cost (credit) (56) (62) (67)
Settlement loss 0 0 0
Net periodic cost (credit) (92) (69) (98)
OPEB Plan | Consumers Energy Company      
Defined Benefit Plan, Roll Forwards [Abstract]      
Service cost 15 13 16
Interest cost 31 40 33
Expected return on plan assets (93) (82) (91)
Amortization of      
Net loss 15 26 16
Prior service cost (credit) (54) (61) (65)
Settlement loss 0 0 0
Net periodic cost (credit) $ (86) $ (64) $ (91)
v3.20.4
Retirement Benefits (Schedule Of Benefit Obligations In Excess Of Fair Value Of Plan Assets) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
DB Pension Plans      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period $ 2,973 $ 2,512  
Service cost 50 41  
Interest cost 79 98  
Plan amendments 24 0  
Actuarial loss 355 476  
Benefits paid (215) (154)  
Benefit obligation at end of period 3,266 2,973 $ 2,512
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 2,546 2,247  
Actual return on plan assets 371 453  
Company contribution 700 0  
Actual benefits paid (215) (154)  
Plan assets at fair value at end of period 3,402 2,546 2,247
Funded status 136 (427)  
DB Pension Plans | Consumers Energy Company      
Defined Benefit Plan, Roll Forwards [Abstract]      
Funded status 138 (408)  
DB SERP      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 150 140  
Service cost 0 0  
Interest cost 4 5  
Plan amendments 0 0  
Actuarial loss 16 15  
Benefits paid (10) (10)  
Benefit obligation at end of period 160 150 140
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 (160) (150)  
DB SERP | Consumers Energy Company      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 109 101  
Service cost 0 0  
Interest cost 3 4  
Actuarial loss 12 11  
Benefits paid (7) (7)  
Benefit obligation at end of period 117 109 101
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 (117) (109)  
OPEB Plan      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 1,165 1,045  
Service cost 16 14 17
Interest cost 33 41 34
Plan amendments 0 0  
Actuarial loss 39 110  
Benefits paid (48) (45)  
Benefit obligation at end of period 1,205 1,165 1,045
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 1,509 1,280  
Actual return on plan assets 182 273  
Company contribution 1 0  
Actual benefits paid (47) (44)  
Plan assets at fair value at end of period 1,645 1,509 1,280
Funded status 440 344  
OPEB Plan | Consumers Energy Company      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 1,120 1,004  
Service cost 15 13 16
Interest cost 31 40 33
Actuarial loss 37 106  
Benefits paid (45) (43)  
Benefit obligation at end of period 1,158 1,120 1,004
Defined Benefit Plan, Roll Forwards [Abstract]      
Plan assets at fair value at beginning of period 1,410 1,197  
Actual return on plan assets 169 255  
Company contribution 1 0  
Actual benefits paid (45) (42)  
Plan assets at fair value at end of period 1,535 1,410 $ 1,197
Funded status $ 377 $ 290  
v3.20.4
Retirement Benefits (Schedule Of Retirement Benefit Plan Assets (Liabilities)) (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]    
Non-current liabilities $ 152 $ 674
Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Non-current liabilities 112 622
DB Pension Plans    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 136 104
Non-current liabilities 0 531
DB Pension Plans | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 138 109
Non-current liabilities 0 517
OPEB Plan    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 440 344
OPEB Plan | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets 377 290
DB SERP    
Defined Benefit Plan Disclosure [Line Items]    
Current liabilities 10 10
Non-current liabilities 150 140
DB SERP | Consumers Energy Company    
Defined Benefit Plan Disclosure [Line Items]    
Current liabilities 7 7
Non-current liabilities $ 110 $ 102
v3.20.4
Retirement Benefits (Schedule Of Accumulated And Projected Benefit Obligations) (Details) - DB Pension Plans - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]      
PBO $ 3,266 $ 2,973 $ 2,512
ABO 2,900 2,600  
Fair value of plan assets $ 3,402 2,546 $ 2,247
Pension Plan A      
Defined Benefit Plan Disclosure [Line Items]      
PBO   1,736  
ABO   1,398  
Fair value of plan assets   $ 1,205  
v3.20.4
Retirement Benefits (Schedule Of Net Periodic Benefit Cost Not yet Recognized) (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Consumers Energy Company    
Regulatory assets    
Total regulatory assets $ 2,695 $ 2,522
DB Pension Plans and DB SERP    
Regulatory assets    
Net loss 1,194 1,114
Prior service cost (credit) 29 8
Total regulatory assets 1,223 1,122
AOCI    
Net loss (gain) 120 105
Prior service cost (credit) 1 0
Total amounts recognized in regulatory assets and AOCI 1,344 1,227
DB Pension Plans and DB SERP | Consumers Energy Company    
Regulatory assets    
Net loss 1,194 1,114
Prior service cost (credit) 29 8
Total regulatory assets 1,223 1,122
AOCI    
Net loss (gain) 47 36
Total amounts recognized in regulatory assets and AOCI 1,270 1,158
OPEB Plan    
Regulatory assets    
Net loss 254 308
Prior service cost (credit) (246) (300)
Total regulatory assets 8 8
AOCI    
Net loss (gain) (10) (6)
Prior service cost (credit) (6) (8)
Total amounts recognized in regulatory assets and AOCI (8) (6)
OPEB Plan | Consumers Energy Company    
Regulatory assets    
Net loss 254 308
Prior service cost (credit) (246) (300)
Total regulatory assets 8 8
AOCI    
Net loss (gain) 0 0
Total amounts recognized in regulatory assets and AOCI $ 8 $ 8
v3.20.4
Retirement Benefits (Schedule Of Allocation Of Plan Assets) (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 3,402 $ 2,546 $ 2,247
DB Pension Plans | Plan Assets Excluding Pooled Funds      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,828 1,293  
DB Pension Plans | Plan Assets Excluding Pooled Funds | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,086 684  
DB Pension Plans | Plan Assets Excluding Pooled Funds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 742 609  
DB Pension Plans | Cash and short-term investments      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 115 44  
DB Pension Plans | Cash and short-term investments | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 115 44  
DB Pension Plans | U.S. government and agencies securities      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 150 66  
DB Pension Plans | U.S. government and agencies securities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 150 66  
DB Pension Plans | Corporate debt      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 540 493  
DB Pension Plans | Corporate debt | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 540 493  
DB Pension Plans | State and municipal bonds      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 11 17  
DB Pension Plans | State and municipal bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 11 17  
DB Pension Plans | Foreign corporate bonds      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 41 33  
DB Pension Plans | Foreign corporate bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 41 33  
DB Pension Plans | Mutual funds      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 971 640  
DB Pension Plans | Mutual funds | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 971 640  
DB Pension Plans | Pooled funds      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,574 1,253  
OPEB Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,645 1,509 $ 1,280
OPEB Plan | Plan Assets Excluding Pooled Funds      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 995 865  
OPEB Plan | Plan Assets Excluding Pooled Funds | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 906 777  
OPEB Plan | Plan Assets Excluding Pooled Funds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 89 88  
OPEB Plan | Cash and short-term investments      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 33 9  
OPEB Plan | Cash and short-term investments | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 33 9  
OPEB Plan | U.S. government and agencies securities      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 18 10  
OPEB Plan | U.S. government and agencies securities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 18 10  
OPEB Plan | Corporate debt      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 64 71  
OPEB Plan | Corporate debt | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 64 71  
OPEB Plan | State and municipal bonds      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 2 2  
OPEB Plan | State and municipal bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 2 2  
OPEB Plan | Foreign corporate bonds      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 5 5  
OPEB Plan | Foreign corporate bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 5 5  
OPEB Plan | Common stocks      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 66 55  
OPEB Plan | Common stocks | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 66 55  
OPEB Plan | Mutual funds      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 807 713  
OPEB Plan | Mutual funds | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 807 713  
OPEB Plan | Pooled funds      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 650 $ 644  
v3.20.4
Retirement Benefits (Schedule Of Asset Allocations) (Details)
Dec. 31, 2020
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 55.00%
DB Pension Plans | Fixed-income securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 34.00%
DB Pension Plans | Multi-asset investments  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 11.00%
OPEB Plan  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 100.00%
OPEB Plan | Equity securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 50.00%
OPEB Plan | Fixed-income securities  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 30.00%
OPEB Plan | Multi-asset investments  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation 20.00%
v3.20.4
Retirement Benefits (Schedule Of Plan Contributions) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]      
Postretirement benefits contributions $ 712 $ 10 $ 252
Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Postretirement benefits contributions 690 7 $ 242
DB Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Postretirement benefits contributions 700 0  
DB Pension Plans | Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Postretirement benefits contributions 682 0  
OPEB Plan      
Defined Benefit Plan Disclosure [Line Items]      
Postretirement benefits contributions 1 0  
OPEB Plan | Consumers Energy Company      
Defined Benefit Plan Disclosure [Line Items]      
Postretirement benefits contributions $ 1 $ 0  
v3.20.4
Retirement Benefits (Schedule Of Expected Benefit Payments) (Details)
$ in Millions
Dec. 31, 2020
USD ($)
DB Pension Plans  
Defined Benefit Plan Disclosure [Line Items]  
2021 $ 191
2022 188
2023 184
2024 182
2025 182
2026-2030 890
DB Pension Plans | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
2021 181
2022 178
2023 175
2024 173
2025 172
2026-2030 845
DB SERP  
Defined Benefit Plan Disclosure [Line Items]  
2021 10
2022 10
2023 10
2024 10
2025 10
2026-2030 46
DB SERP | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
2021 7
2022 7
2023 7
2024 7
2025 7
2026-2030 32
OPEB Plan  
Defined Benefit Plan Disclosure [Line Items]  
2021 52
2022 54
2023 56
2024 57
2025 58
2026-2030 299
OPEB Plan | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
2021 50
2022 52
2023 53
2024 55
2025 56
2026-2030 $ 286
v3.20.4
Stock-Based Compensation (Narrative) (Details)
$ in Millions
12 Months Ended
Dec. 31, 2020
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) 6,477,579
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) 6,477,579
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) 329,874
Unrecognized compensation cost | $ $ 18.5
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) 314,056
Unrecognized compensation cost | $ $ 17.7
Unrecognized compensation cost recognition period 2 years
v3.20.4
Stock-Based Compensation (Schedule Of Restricted Stock Activity) (Details) - $ / shares
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Number of Shares      
Granted (in shares) 527,400    
Consumers Energy Company      
Number of Shares      
Granted (in shares) 504,755    
Restricted stock      
Number of Shares      
Granted (in shares) 512,326    
Vested (in shares) (551,897)    
Forfeited (in share) (329,874)    
Weighted-Average Grant Date Fair Value per Share      
Granted (in dollars per share) $ 45.56 $ 43.57 $ 26.49
Vested (in dollars per share) 30.98    
Forfeitured (in dollars per share) $ 51.22    
Restricted stock | Consumers Energy Company      
Number of Shares      
Granted (in shares) 490,346    
Vested (in shares) (532,833)    
Forfeited (in share) (314,056)    
Weighted-Average Grant Date Fair Value per Share      
Granted (in dollars per share) $ 45.53 43.57 26.51
Vested (in dollars per share) 31.04    
Forfeitured (in dollars per share) $ 51.22    
Restricted stock units      
Number of Shares      
Granted (in shares) 15,074    
Vested (in shares) (15,234)    
Forfeited (in share) 0    
Weighted-Average Grant Date Fair Value per Share      
Granted (in dollars per share) $ 49.76 50.35 41.77
Vested (in dollars per share) $ 49.24    
Restricted stock units | Consumers Energy Company      
Number of Shares      
Granted (in shares) 14,409    
Vested (in shares) (14,517)    
Forfeited (in share) 0    
Weighted-Average Grant Date Fair Value per Share      
Granted (in dollars per share) $ 49.70 $ 51.15 $ 42.01
Vested (in dollars per share) $ 49.50    
Restricted Stock and Restricted Stock Units      
Number of Shares      
Nonvested, at beginning of period (in shares) 1,186,962    
Nonvested, at end of period (in shares) 817,357 1,186,962  
Weighted-Average Grant Date Fair Value per Share      
Weighted-average grant date fair value per share, at beginning of period (in dollars per share) $ 44.56    
Weighted-average grant date fair value per share, at end of period (in dollars per share) $ 51.68 $ 44.56  
Restricted Stock and Restricted Stock Units | Consumers Energy Company      
Number of Shares      
Nonvested, at beginning of period (in shares) 1,138,182    
Nonvested, at end of period (in shares) 781,531 1,138,182  
Weighted-Average Grant Date Fair Value per Share      
Weighted-average grant date fair value per share, at beginning of period (in dollars per share) $ 44.57    
Weighted-average grant date fair value per share, at end of period (in dollars per share) $ 51.73 $ 44.57  
v3.20.4
Stock-Based Compensation (Schedule Of Restricted Stock Granted) (Details)
12 Months Ended
Dec. 31, 2020
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 527,400
Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 504,755
Time-lapse awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 106,520
Time-lapse awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 101,439
Market-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 123,246
Market-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 118,011
Performance-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 123,246
Performance-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 118,011
Restricted stock units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 13,405
Restricted stock units | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 12,800
Dividends on market-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 17,937
Dividends on market-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 17,152
Dividends on performance-based awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 17,505
Dividends on performance-based awards | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 16,736
Dividends on restricted stock units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 1,669
Dividends on restricted stock units | Consumers Energy Company  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 1,609
Additional market-based shares based on achievement of condition  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 71,678
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) 68,857
Additional performance-based shares based on achievement of condition  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted (in shares) 52,194
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) 50,140
v3.20.4
Stock-Based Compensation (Schedule Of Share-Based Payment Award, Restricted Stock, Valuation Assumptions) (Details)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share-based Payment Arrangement, Noncash Expense [Abstract]      
Expected volatility 14.20% 14.90% 16.70%
Expected dividend yield 2.40% 2.80% 2.80%
Risk-free rate 1.60% 2.50% 2.10%
v3.20.4
Stock-Based Compensation (Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Weighted Average Grant Date Fair Value) (Details) - $ / shares
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Restricted stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) $ 45.56 $ 43.57 $ 26.49
Restricted stock | Consumers Energy Company      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) 45.53 43.57 26.51
Restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) 49.76 50.35 41.77
Restricted stock units | Consumers Energy Company      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in dollars per share) $ 49.70 $ 51.15 $ 42.01
v3.20.4
Stock-Based Compensation (Schedule Of Compensation Cost For Share-Based Payment Arrangements, Allocation Of Share-Based Compensation Costs By Plan) (Details) - Restricted stock - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of shares that vested during the year $ 22 $ 26 $ 27
Compensation expense recognized 11 22 17
Income tax benefit recognized 3 1 1
Consumers Energy Company      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of shares that vested during the year 21 25 26
Compensation expense recognized 10 21 16
Income tax benefit recognized $ 3 $ 1 $ 1
v3.20.4
Income Taxes (Schedule Of Effective Income Rate Reconciliation) (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Mar. 31, 2020
Mar. 31, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Taxes [Line Items]            
Income from continuing operations before income taxes     $ 885 $ 829 $ 774  
Income tax expense at statutory rate     186 174 163  
Increase (decrease) in income taxes from:            
State and local income taxes, net of federal effect     46 48 46  
TCJA excess deferred taxes     (35) (31) (26)  
Production tax credits     (28) (20) (14)  
Accelerated flow-through of regulatory tax benefits     (13) (13) (39)  
Research and development tax credits, net     (11) (2) (11)  
Refund of alternative minimum tax sequestration     (9) 0 0  
Other, net     (3) (9) (4)  
Income tax expense     $ 133 $ 147 $ 115  
Effective tax rate     15.00% 17.70% 14.90%  
Increase (decrease) in tax credit carryforward     $ (7)      
Consumers Energy Company            
Income Taxes [Line Items]            
Income from continuing operations before income taxes     989 $ 928 $ 847  
Income tax expense at statutory rate     208 195 178  
Increase (decrease) in income taxes from:            
State and local income taxes, net of federal effect     47 53 51  
TCJA excess deferred taxes     (35) (31) (26)  
Production tax credits     (19) (12) (12)  
Accelerated flow-through of regulatory tax benefits     (13) (13) (39)  
Research and development tax credits, net     (11) (2) (11)  
Other, net     (4) (5) 1  
Income tax expense     $ 173 $ 185 $ 142  
Effective tax rate     17.50% 19.90% 16.80%  
Net regulatory tax liability     $ 3,895 $ 3,829    
Plant, property, and equipment (subject to normalization) | Consumers Energy Company            
Increase (decrease) in income taxes from:            
Net regulatory tax liability           $ 1,600
Research Tax Credit Carryforward            
Increase (decrease) in income taxes from:            
Increase (decrease) in tax credit carryforward $ 9          
Research Tax Credit Carryforward | Consumers Energy Company            
Increase (decrease) in income taxes from:            
Increase (decrease) in tax credit carryforward $ 8 $ 8        
v3.20.4
Income Taxes (Significant Components Of Income Tax Expense) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Current income taxes      
Federal $ (35) $ (31) $ (67)
State and local (2) 28 0
Total Current Income Tax Expense (37) (3) (67)
Deferred income taxes      
Federal 115 97 112
State and local 60 32 58
Total Deferred Income Tax Expense 175 129 170
Deferred income tax credit (5) 21 12
Income tax expense 133 147 115
Consumers Energy Company      
Current income taxes      
Federal 3 107 6
State and local (7) 41 13
Total Current Income Tax Expense (4) 148 19
Deferred income taxes      
Federal 115 (10) 60
State and local 67 26 51
Total Deferred Income Tax Expense 182 16 111
Deferred income tax credit (5) 21 12
Income tax expense $ 173 $ 185 $ 142
v3.20.4
Income Taxes (Principal Components Of Deferred Income Tax Assets And Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Deferred income tax assets    
Tax loss and credit carryforwards $ 483 $ 239
Net regulatory tax liability 372 385
Reserves and accruals 62 43
Total deferred income tax assets 917 667
Valuation allowance (1) (2)
Total deferred income tax assets, net of valuation allowance 916 665
Deferred income tax liabilities    
Plant, property, and equipment (2,287) (2,033)
Employee benefits (364) (172)
Securitized costs (53) (59)
Gas inventory (24) (32)
Other (51) (24)
Total deferred income tax liabilities (2,779) (2,320)
Total net deferred income tax liabilities (1,863) (1,655)
Consumers Energy Company    
Deferred income tax assets    
Tax loss and credit carryforwards 216 20
Net regulatory tax liability 372 385
Reserves and accruals 24 24
Total deferred income tax assets, net of valuation allowance 612 429
Deferred income tax liabilities    
Plant, property, and equipment (2,230) (1,995)
Employee benefits (365) (178)
Securitized costs (53) (59)
Gas inventory (24) (32)
Other (34) (29)
Total deferred income tax liabilities (2,706) (2,293)
Total net deferred income tax liabilities $ (2,094) $ (1,864)
v3.20.4
Income Taxes (Loss And Credit Carryforwards) (Details)
$ in Millions
Dec. 31, 2020
USD ($)
Operating Loss Carryforwards [Line Items]  
General business credits $ 245
Total tax attributes 483
Consumers Energy Company  
Operating Loss Carryforwards [Line Items]  
General business credits 49
Total tax attributes 216
Federal Tax Authority  
Operating Loss Carryforwards [Line Items]  
Net operating loss carryforwards 747
Federal net operating loss carryforwards 157
Federal Tax Authority | Consumers Energy Company  
Operating Loss Carryforwards [Line Items]  
Net operating loss carryforwards 505
Federal net operating loss carryforwards 106
State Tax Authority  
Operating Loss Carryforwards [Line Items]  
Net operating loss carryforwards 1,241
Local net operating loss carryforwards 78
State Tax Authority | Consumers Energy Company  
Operating Loss Carryforwards [Line Items]  
Net operating loss carryforwards 1,026
Local net operating loss carryforwards 61
Local Tax Authority  
Operating Loss Carryforwards [Line Items]  
Net operating loss carryforwards 346
Local net operating loss carryforwards 3
General business credits  
Operating Loss Carryforwards [Line Items]  
Tax credits 245
General business credits | Consumers Energy Company  
Operating Loss Carryforwards [Line Items]  
Tax credits $ 49
v3.20.4
Income Taxes (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Benefits [Line Items]      
Increase (decrease) in tax credit carryforward $ (7,000,000)    
Tax refunds 69,000,000    
Interest and penalties 0 $ 0 $ 0
Consumers Energy Company      
Income Tax Benefits [Line Items]      
Future tax benefit 9,000,000    
Interest and penalties 0 $ 0 $ 0
Local Tax Authority      
Income Tax Benefits [Line Items]      
Valuation allowance - loss carryforward $ 1,000,000    
v3.20.4
Income Taxes (Reconciliation Of Beginning And Ending Uncertain Tax Benefits) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of period $ 23 $ 19 $ 14
Additions for current-year tax positions 1 1 1
Additions for prior-year tax positions 3 3 4
Reductions for prior-year tax positions (2) 0 0
Balance at end of period 25 23 19
Consumers Energy Company      
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of period 34 28 21
Additions for current-year tax positions 1 1 2
Additions for prior-year tax positions 4 5 5
Reductions for prior-year tax positions (8) 0 0
Balance at end of period $ 31 $ 34 $ 28
v3.20.4
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income available to common stockholders                      
Net Income $ 162 $ 210 $ 137 $ 243 $ 168 $ 207 $ 94 $ 213 $ 752 $ 682 $ 659
Income (loss) attributable to noncontrolling interests 4 (8) 1 0 1 0 1 0 (3) 2 2
Net Income Available to Common Stockholders $ 158 $ 218 $ 136 $ 243 $ 167 $ 207 $ 93 $ 213 $ 755 $ 680 $ 657
Average common shares outstanding                      
Weighted average shares - basic (in shares)                 285.0 283.0 282.2
Dilutive nonvested stock awards (in shares)                 0.7 0.7 0.7
Dilutive forward equity sale contracts                 0.6 0.6 0.0
Weighted average shares - diluted (in shares)                 286.3 284.3 282.9
Basic net income per average common share available to common stockholders (in dollars per share) $ 0.55 $ 0.76 $ 0.48 $ 0.86 $ 0.59 $ 0.73 $ 0.33 $ 0.75 $ 2.65 $ 2.40 $ 2.33
Diluted net income per average common share available to common stockholders (in dollars per share) $ 0.55 $ 0.76 $ 0.48 $ 0.85 $ 0.58 $ 0.73 $ 0.33 $ 0.75 $ 2.64 $ 2.39 $ 2.32
v3.20.4
Revenue (Components of Operating Revenue) (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 $ 6,238 $ 6,403 $ 6,502
Leasing income                 148 174  
Leasing income                     160
Financing income                 279 235 172
Consumers alternative-revenue programs                 43 33 39
Consumers revenues to be refunded                 (28)    
Total operating revenue $ 1,798 $ 1,575 $ 1,443 $ 1,864 $ 1,795 $ 1,546 $ 1,445 $ 2,059 6,680 6,845 6,873
Electric Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 4,348 4,407 4,528
Financing income                 11 9 10
Consumers alternative-revenue programs                 29 23 23
Consumers revenues to be refunded                 (16)    
Total operating revenue                 4,372 4,439 4,561
Gas Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 1,809 1,922 1,882
Financing income                 6 5 5
Consumers alternative-revenue programs                 14 10 16
Consumers revenues to be refunded                 (12)    
Total operating revenue                 1,817 1,937 1,903
Enterprises | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 81 74 92
Leasing income                 148 174  
Leasing income                     160
Total operating revenue                 229 248 252
EnerBank | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Financing income                 262 221 157
Total operating revenue                 262 221 157
Consumers Energy Company                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 6,157 6,329 6,410
Financing income                 17 14 15
Consumers alternative-revenue programs                 43 33 39
Consumers revenues to be refunded                 (28)    
Total operating revenue $ 1,665 $ 1,450 $ 1,330 $ 1,744 $ 1,670 $ 1,429 $ 1,334 $ 1,943 6,189 6,376 6,464
Consumers Energy Company | Electric Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 4,348 4,407 4,528
Financing income                 11 9 10
Consumers alternative-revenue programs                 29 23 23
Consumers revenues to be refunded                 (16)    
Total operating revenue                 4,372 4,439 4,561
Consumers Energy Company | Gas Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 1,809 1,922 1,882
Financing income                 6 5 5
Consumers alternative-revenue programs                 14 10 16
Consumers revenues to be refunded                 (12)    
Total operating revenue                 1,817 1,937 1,903
Residential | Consumers Energy Company                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 3,341 3,304 3,333
Residential | Consumers Energy Company | Electric Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 2,109 1,988 2,049
Residential | Consumers Energy Company | Gas Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 1,232 1,316 1,284
Commercial | Consumers Energy Company                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 1,781 1,874 1,912
Commercial | Consumers Energy Company | Electric Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 1,444 1,502 1,545
Commercial | Consumers Energy Company | Gas Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 337 372 367
Industrial | Consumers Energy Company                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 616 720 729
Industrial | Consumers Energy Company | Electric Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 570 669 674
Industrial | Consumers Energy Company | Gas Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 46 51 55
Other                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 81 74 92
Other | Enterprises | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 81 74 92
Other | Consumers Energy Company                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 419 431 436
Other | Consumers Energy Company | Electric Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 225 248 260
Other | Consumers Energy Company | Gas Utility | Operating Segments                      
Disaggregation of Revenue [Line Items]                      
Revenue recognized from contracts with customers                 $ 194 $ 183 $ 176
v3.20.4
Revenue (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Disaggregation of Revenue [Line Items]      
Bad debt expense $ 90 $ 67 $ 54
Regulatory assets 2,653 2,489  
Unbilled receivables 437 426  
Regulatory liabilities 151 87  
Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Bad debt expense     29
Regulatory assets 2,653 2,489  
Unbilled receivables 437 426  
Regulatory liabilities 151 87  
Consumers Energy Company | Reserve for customer refunds      
Disaggregation of Revenue [Line Items]      
Regulatory liabilities 28 2  
Consumers Energy Company | COVID-19 costs accounting deferral      
Disaggregation of Revenue [Line Items]      
Regulatory assets 4 0  
Accounts Receivable      
Disaggregation of Revenue [Line Items]      
Bad debt expense 33 29 29
Accounts Receivable | Consumers Energy Company      
Disaggregation of Revenue [Line Items]      
Bad debt expense $ 33 $ 29 $ 29
v3.20.4
Other Income and Other Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Other Income and Expenses [Line Items]      
Donations $ (35) $ (3) $ (13)
Civic and political expenditures (5) (6) (6)
Loss on reacquired and extinguished debt (16) 0 (16)
All other (6) (4) (13)
Total other expense (62) (13) (48)
Consumers Energy Company      
Other Income and Expenses [Line Items]      
Donations (33) (3) (13)
Civic and political expenditures (5) (6) (6)
All other (5) (4) (11)
Total other expense $ (43) $ (13) $ (30)
v3.20.4
Cash And Cash Equivalents (Schedule Of Cash And Cash Equivalents, Including Restricted Amounts) (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 168 $ 140    
Restricted cash and cash equivalents 17 17    
Cash and cash equivalents, including restricted amounts 185 157 $ 175 $ 204
Consumers Energy Company        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents 20 11    
Restricted cash and cash equivalents 15 17    
Cash and cash equivalents, including restricted amounts $ 35 $ 28 $ 56 $ 65
v3.20.4
Reportable Segments (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Information [Line Items]                      
Operating Revenue $ 1,798 $ 1,575 $ 1,443 $ 1,864 $ 1,795 $ 1,546 $ 1,445 $ 2,059 $ 6,680 $ 6,845 $ 6,873
Depreciation and amortization                 1,048 992 933
Income from equity method investees                 5 10 9
Interest charges                 561 519 458
Income tax expense                 133 147 115
Net income available to common stockholders 158 218 136 243 167 207 93 213 755 680 657
Plant, property, and equipment, gross 27,907       25,390       27,907 25,390 24,400
Investments in equity method investees 70       71       70 71 69
Assets 29,666       26,837       29,666 26,837 24,529
Capital expenditures                 2,280 2,147 2,081
Consumers Energy Company                      
Segment Reporting Information [Line Items]                      
Operating Revenue 1,665 1,450 1,330 1,744 1,670 1,429 1,334 1,943 6,189 6,376 6,464
Depreciation and amortization                 1,023 975 921
Interest charges                 320 297 289
Income tax expense                 173 185 142
Net income available to common stockholders 190 $ 230 $ 159 $ 235 205 $ 213 $ 97 $ 226 814 741 703
Plant, property, and equipment, gross 26,757       24,963       26,757 24,963 23,963
Assets 25,399       23,699       25,399 23,699 22,025
Capital expenditures                 2,167 2,134 1,825
Other reconciling items                      
Segment Reporting Information [Line Items]                      
Depreciation and amortization                 1 1 0
Interest charges                 179 157 136
Income tax expense                 (53) (56) (41)
Net income available to common stockholders                 (154) (144) (119)
Plant, property, and equipment, gross 21       20       21 20 17
Assets 23       48       23 48 98
Capital expenditures                 1 1 2
Other reconciling items | Consumers Energy Company                      
Segment Reporting Information [Line Items]                      
Depreciation and amortization                 1 1 0
Interest charges                 1 1 1
Net income available to common stockholders                 (1) (1) (1)
Plant, property, and equipment, gross 21       20       21 20 17
Assets 29       20       29 20 29
Capital expenditures                 1 1 2
Electric Utility | Operating Segments                      
Segment Reporting Information [Line Items]                      
Operating Revenue                 4,372 4,439 4,561
Depreciation and amortization                 739 713 682
Interest charges                 217 213 209
Income tax expense                 115 134 109
Net income available to common stockholders                 554 509 535
Plant, property, and equipment, gross 17,155       16,158       17,155 16,158 16,027
Assets 15,829       14,911       15,829 14,911 14,079
Capital expenditures                 1,281 1,162 865
Electric Utility | Operating Segments | Consumers Energy Company                      
Segment Reporting Information [Line Items]                      
Operating Revenue                 4,372 4,439 4,561
Depreciation and amortization                 739 713 682
Interest charges                 217 213 209
Income tax expense                 115 134 109
Net income available to common stockholders                 554 509 535
Plant, property, and equipment, gross 17,155       16,158       17,155 16,158 16,027
Assets 15,893       14,973       15,893 14,973 14,143
Capital expenditures                 1,281 1,162 865
Gas Utility | Operating Segments                      
Segment Reporting Information [Line Items]                      
Operating Revenue                 1,817 1,937 1,903
Depreciation and amortization                 283 261 239
Interest charges                 102 83 79
Income tax expense                 58 51 33
Net income available to common stockholders                 261 233 169
Plant, property, and equipment, gross 9,581       8,785       9,581 8,785 7,919
Assets 9,429       8,659       9,429 8,659 7,806
Capital expenditures                 885 971 958
Gas Utility | Operating Segments | Consumers Energy Company                      
Segment Reporting Information [Line Items]                      
Operating Revenue                 1,817 1,937 1,903
Depreciation and amortization                 283 261 239
Interest charges                 102 83 79
Income tax expense                 58 51 33
Net income available to common stockholders                 261 233 169
Plant, property, and equipment, gross 9,581       8,785       9,581 8,785 7,919
Assets 9,477       8,706       9,477 8,706 7,853
Capital expenditures                 885 971 958
Enterprises | Operating Segments                      
Segment Reporting Information [Line Items]                      
Operating Revenue                 229 248 252
Depreciation and amortization                 20 14 8
Income from equity method investees                 5 10 9
Interest charges                 7 7 2
Income tax expense                 (4) 2 2
Net income available to common stockholders                 36 33 34
Plant, property, and equipment, gross 1,113       405       1,113 405 412
Investments in equity method investees 70       71       70 71 69
Assets 1,276       527       1,276 527 540
Capital expenditures                 108 5 246
EnerBank | Operating Segments                      
Segment Reporting Information [Line Items]                      
Operating Revenue                 262 221 157
Depreciation and amortization                 5 3 4
Interest charges                 56 59 32
Income tax expense                 17 16 12
Net income available to common stockholders                 58 49 38
Plant, property, and equipment, gross 37       22       37 22 25
Assets $ 3,109       $ 2,692       3,109 2,692 2,006
Capital expenditures                 $ 5 $ 8 $ 10
v3.20.4
Related Party Transactions - Consumers (Details) - Consumers Energy Company - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Related Party Transaction [Line Items]      
Purchased power – related parties $ 64,000,000 $ 75,000,000 $ 83,000,000
Due to related parties 13,000,000 26,000,000  
Accounts receivable related parties 16,000,000 8,000,000  
Investments   1,000,000  
Notes payable – related parties 307,000,000 $ 0  
Credit Agreement      
Related Party Transaction [Line Items]      
Maximum borrowing capacity 350,000,000    
Notes payable – related parties $ 307,000,000    
Weighted average interest rate 0.042%    
Natural Gas Transportation Agreement | CMS Energy Subsidiary      
Related Party Transaction [Line Items]      
Direct financing lease term 20 years    
v3.20.4
Variable Interest Entities (Narrative) (Details)
1 Months Ended 12 Months Ended
Sep. 30, 2020
Jul. 31, 2020
USD ($)
MW
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Variable Interest Entity [Line Items]          
Investments     $ 70,000,000 $ 71,000,000 $ 69,000,000
Variable Interest Entity, Primary Beneficiary | Aviator Wind          
Variable Interest Entity [Line Items]          
Ownership interest 51.00% 51.00%      
Nameplate capacity (in MW) | MW   525      
Capacity committed (in MW) | MW   420      
Gain (loss) on initial consolidation   $ 0      
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     $ 70,000,000 $ 71,000,000  
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%    
v3.20.4
Variable Interest Entities (Consolidated Information of Variable Interest Entity) (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Variable Interest Entity [Line Items]      
Cash and cash equivalents $ 168 $ 140  
Accounts receivable 863 886  
Prepayments and other current assets 112 86  
Plant, property, and equipment, net 21,039 18,926  
Total Assets 29,666 26,837 $ 24,529
Accounts payable 671 622  
Asset retirement obligations 553 $ 477  
Variable Interest Entity, Primary Beneficiary      
Variable Interest Entity [Line Items]      
Cash and cash equivalents 7    
Accounts receivable 5    
Prepayments and other current assets 1    
Plant, property, and equipment, net 692    
Total Assets 705    
Accounts payable 3    
Asset retirement obligations 19    
Total liabilities $ 22    
v3.20.4
Asset Sales and Exit Activities - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended 15 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Regulatory liabilities $ 151 $ 87 $ 151
Electric Utility | Gain shared with customers | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Gain on disposition of assets 14    
Consumers Energy Company      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Regulatory liabilities 151 87 151
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 13 3 16
Costs incurred and capitalized 2 1  
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     3
Gain shared with customers | Consumers Energy Company      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Regulatory liabilities $ 14 $ 17 $ 14
v3.20.4
Asset Sale and Exit Activities - Schedule of Retention Benefit Liability Roll Forward (Details) - USD ($)
$ in Millions
12 Months Ended 15 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2020
Restructuring Reserve [Roll Forward]      
Other current liabilities $ 156 $ 186 $ 156
Retention Benefits | D.E. Karn Generating Complex      
Restructuring Reserve [Roll Forward]      
Retention benefit liability at beginning of period 4 0  
Costs incurred and charged to maintenance and other operating expenses 13 3 16
Costs incurred and capitalized 2 1  
Costs paid or settled (8) 0  
Retention benefit liability at the end of the period 11 4 11
Other current liabilities $ 3 $ 2 $ 3
v3.20.4
Quarterly Financial And Common Stock Information (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]                      
Operating Revenue $ 1,798 $ 1,575 $ 1,443 $ 1,864 $ 1,795 $ 1,546 $ 1,445 $ 2,059 $ 6,680 $ 6,845 $ 6,873
Operating income 352 369 273 368 311 351 218 359 1,362 1,239 1,162
Net Income 162 210 137 243 168 207 94 213 752 682 659
Income (loss) attributable to noncontrolling interests 4 (8) 1 0 1 0 1 0 (3) 2 2
Net income available to common stockholders $ 158 $ 218 $ 136 $ 243 $ 167 $ 207 $ 93 $ 213 $ 755 $ 680 $ 657
Basic earnings per average common share (in dollars per share) $ 0.55 $ 0.76 $ 0.48 $ 0.86 $ 0.59 $ 0.73 $ 0.33 $ 0.75 $ 2.65 $ 2.40 $ 2.33
Diluted earnings per average common share (in dollars per share) $ 0.55 $ 0.76 $ 0.48 $ 0.85 $ 0.58 $ 0.73 $ 0.33 $ 0.75 $ 2.64 $ 2.39 $ 2.32
Consumers Energy Company                      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]                      
Operating Revenue $ 1,665 $ 1,450 $ 1,330 $ 1,744 $ 1,670 $ 1,429 $ 1,334 $ 1,943 $ 6,189 $ 6,376 $ 6,464
Operating income 308 338 246 329 308 319 175 328 1,221 1,130 1,065
Net Income 191 230 160 235 206 213 98 226 816 743 705
Preferred stock dividends 1 0 1 0 1 0 1 0 2 2 2
Net income available to common stockholders $ 190 $ 230 $ 159 $ 235 $ 205 $ 213 $ 97 $ 226 $ 814 $ 741 $ 703
v3.20.4
Schedule I - Condensed Financial Information of Registrant (Condensed Statements of Income) (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Operating Expenses                      
Other operating expense                 $ (1,403) $ (1,448) $ (1,417)
Total operating expenses                 (5,318) (5,606) (5,711)
Operating Loss $ 352 $ 369 $ 273 $ 368 $ 311 $ 351 $ 218 $ 359 1,362 1,239 1,162
Other Income and Expenses [Abstract]                      
Nonoperating retirement benefits, net                 118 91 90
Interest income                 4 7 11
Other income                 6 4 2
Other expense                 (62) (13) (48)
Total other income                 84 109 70
Interest Charges                      
Interest on long-term debt                 483 439 412
Interest on long-term debt                 68 75 49
Total interest charges                 561 519 458
Income Before Income Taxes                 885 829 774
Income tax expense                 133 147 115
Net income available to common stockholders $ 158 $ 218 $ 136 $ 243 $ 167 $ 207 $ 93 $ 213 755 680 657
CMS Energy                      
Operating Expenses                      
Other operating expense                 (6) (38) (7)
Total operating expenses                 (6) (38) (7)
Operating Loss                 (6) (38) (7)
Other Income and Expenses [Abstract]                      
Equity earnings of subsidiaries                 909 826 780
Nonoperating retirement benefits, net                 (1) (1) (1)
Interest income                 1 1 2
Other income                 1 1 0
Other expense                 (19) 0 (17)
Total other income                 891 827 764
Interest Charges                      
Interest on long-term debt                 178 156 135
Interest on long-term debt                 7 10 7
Total interest charges                 185 166 142
Income Before Income Taxes                 700 623 615
Income tax expense                 (55) (57) (42)
Net income available to common stockholders                 $ 755 $ 680 $ 657
v3.20.4
Schedule I - Condensed Financial Information of Registrant (Condensed Statements Of Cash Flows) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Cash Flows from Operating Activities      
Net cash provided by operating activities $ 1,276 $ 1,790 $ 1,703
Cash Flows from Investing Activities      
Proceeds from DB SERP investments 0 0 146
Net cash used in investing activities (2,867) (2,816) (2,606)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 3,179 2,151 2,767
Issuance of common stock, net of issuance costs 253 12 41
Retirement of long-term debt (2,010) (1,285) (1,870)
Debt prepayment costs (59) (8) (36)
Payment of dividends on common stock (467) (436) (407)
Net cash provided by financing activities 1,619 1,008 874
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 28 (18) (29)
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 157 175 204
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 185 157 175
CMS Energy      
Cash Flows from Operating Activities      
Net cash provided by operating activities 507 697 702
Cash Flows from Investing Activities      
Investment in subsidiaries (657) (683) (363)
Increase in notes receivable – intercompany (307) 0 0
Proceeds from DB SERP investments 0 0 22
Net cash used in investing activities (964) (683) (341)
Cash Flows from Financing Activities      
Proceeds from issuance of debt 1,225 1,158 560
Issuance of common stock, net of issuance costs 253 12 41
Retirement of long-term debt (425) (738) (675)
Debt prepayment costs (16) 0 (16)
Payment of dividends on common stock (465) (434) (405)
Debt issuance costs and financing fees (10) (18) (8)
Change in notes payable – intercompany (105) 6 142
Net cash provided by financing activities 457 (14) (361)
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 0 0 0
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 0 0 0
Cash and Cash Equivalents, Including Restricted Amounts, End of Period $ 0 $ 0 $ 0
v3.20.4
Schedule I - Condensed Financial Information of Registrant (Condensed Balance Sheets) (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Current Assets      
Accounts receivable – intercompany and related parties $ 19 $ 17  
Prepayments and other current assets 112 86  
Total current assets 2,404 2,331  
Other Non‑current Assets      
Other 869 739  
Total other non‑current assets 6,223 5,580  
Total Assets 29,666 26,837 $ 24,529
Current Liabilities      
Accounts and notes payable – intercompany 7 13  
Accrued interest, including intercompany 106 104  
Accrued taxes 457 437  
Other current liabilities 156 186  
Total current liabilities 3,074 2,704  
Non‑current Liabilities      
Long-term debt 13,634 11,951  
Postretirement benefits 152 674  
Other non‑current liabilities 398 383  
Total non‑current liabilities 20,515 19,078  
Equity      
Common stockholders’ equity 5,496 5,018  
Total Liabilities and Equity 29,666 26,837  
CMS Energy      
Current Assets      
DB SERP note receivable – related party 358 2  
Accounts receivable – intercompany and related parties 3 9  
Federal income tax receivable 0 18  
Accrued taxes 48 0  
Prepayments and other current assets 1 1  
Total current assets 410 30  
Other Non‑current Assets      
Deferred income taxes 91 126  
Investments in subsidiaries 9,372 8,526  
Other investments 5 4  
Other 5 16  
Total other non‑current assets 9,473 8,672  
Total Assets 9,883 8,702  
Current Liabilities      
Current portion of long-term debt 200 0  
Accounts and notes payable – intercompany 69 123  
Accrued interest, including intercompany 33 34  
Accrued taxes 0 5  
Other current liabilities 9 38  
Total current liabilities 311 200  
Non‑current Liabilities      
Long-term debt 3,926 3,334  
Notes payable – intercompany 116 112  
Postretirement benefits 21 21  
Other non‑current liabilities 13 17  
Total non‑current liabilities 4,076 3,484  
Equity      
Common stockholders’ equity 5,496 5,018  
Total Liabilities and Equity $ 9,883 $ 8,702  
v3.20.4
Schedule I - Condensed Financial Information of Registrant (Narrative) (Details)
$ in Millions
12 Months Ended
Dec. 31, 2020
USD ($)
lawsuit
Dec. 31, 2019
USD ($)
Dec. 31, 2018
Jul. 31, 2018
USD ($)
CMS Energy        
Condensed Financial Statements, Captions [Line Items]        
Maximum potential obligation $ 596      
CMS Energy Note Payable        
Condensed Financial Statements, Captions [Line Items]        
Interest rate     4.10%  
CMS Energy Note Payable | Subsidiaries        
Condensed Financial Statements, Captions [Line Items]        
Notes payable       $ 124
Class Action Lawsuits        
Condensed Financial Statements, Captions [Line Items]        
Number of lawsuits | lawsuit 4      
Individual Lawsuits        
Condensed Financial Statements, Captions [Line Items]        
Number of lawsuits | lawsuit 1      
Gas Index Price Reporting Litigation        
Condensed Financial Statements, Captions [Line Items]        
Estimated current litigation liability   $ 30    
v3.20.4
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Allowance for uncollectible accounts      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 20 $ 20 $ 20
Charged to Expense 33 29 29
Charged to Other Accounts 0 0 0
Deductions 24 29 29
Balance at End of Period 29 20 20
Allowance for uncollectible accounts | Consumers Energy Company      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 20 20 20
Charged to Expense 33 29 29
Charged to Other Accounts 0 0 0
Deductions 24 29 29
Balance at End of Period 29 20 20
Deferred tax valuation allowance      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 2 8 15
Charged to Expense 0 0 2
Charged to Other Accounts 0 0 0
Deductions 1 6 9
Balance at End of Period 1 2 8
Allowance for notes receivable      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 33 24 20
Charged to Expense 60 38 25
Charged to Other Accounts 62 0 0
Deductions 32 29 21
Balance at End of Period $ 123 $ 33 $ 24