CMS ENERGY CORP, 10-Q filed on 10/27/2022
Quarterly Report
v3.22.2.2
Cover Page - shares
 9 Months Ended
Sep. 30, 2022
Oct. 10, 2022
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2022  
Document Transition Report false  
Entity File Number 1-9513  
Entity Registrant Name CMS ENERGY CORPORATION  
Entity Tax Identification Number 38-2726431  
Entity Incorporation, State or Country Code MI  
Entity Address, Address Line One One Energy Plaza  
Entity Address, City or Town Jackson  
Entity Address, State or Province MI  
Entity Address, Postal Zip Code 49201  
City Area Code 517  
Local Phone Number 788‑0550  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   290,251,602
Entity Central Index Key 0000811156  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Consumers Energy Company    
Document Information [Line Items]    
Entity File Number 1-5611  
Entity Registrant Name CONSUMERS ENERGY COMPANY  
Entity Tax Identification Number 38-0442310  
Entity Incorporation, State or Country Code MI  
Entity Address, Address Line One One Energy Plaza  
Entity Address, City or Town Jackson  
Entity Address, State or Province MI  
Entity Address, Postal Zip Code 49201  
City Area Code 517  
Local Phone Number 788‑0550  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   84,108,789
Entity Central Index Key 0000201533  
CMS Energy Corporation Common Stock, $0.01 par value    
Document Information [Line Items]    
Title of 12(b) Security CMS Energy Corporation Common Stock  
Trading Symbol CMS  
Security Exchange Name NYSE  
CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078    
Document Information [Line Items]    
Title of 12(b) Security CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078  
Trading Symbol CMSA  
Security Exchange Name NYSE  
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078    
Document Information [Line Items]    
Title of 12(b) Security CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078  
Trading Symbol CMSC  
Security Exchange Name NYSE  
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079    
Document Information [Line Items]    
Title of 12(b) Security CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079  
Trading Symbol CMSD  
Security Exchange Name NYSE  
CMS Energy Corporation Depositary Shares, each representing a 1/1,000th interest in a share of 4.200% Cumulative Redeemable Perpetual Preferred Stock, Series C    
Document Information [Line Items]    
Title of 12(b) Security CMS Energy Corporation Depositary Shares  
Trading Symbol CMS PRC  
Security Exchange Name NYSE  
Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series    
Document Information [Line Items]    
Title of 12(b) Security Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series  
Trading Symbol CMS-PB  
Security Exchange Name NYSE  
v3.22.2.2
CMS Energy Corporation Consolidated Statements of Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Operating Revenue $ 2,024 $ 1,725 $ 6,318 $ 5,296
Operating Expenses        
Fuel for electric generation 312 184 720 438
Purchased power – related parties 21 21 56 56
Maintenance and other operating expenses 413 410 1,139 1,076
Depreciation and amortization 243 250 830 832
General taxes 87 81 308 290
Total operating expenses 1,766 1,465 5,365 4,354
Operating Income 258 260 953 942
Other Income (Expense)        
Interest income 1 0 3 2
Allowance for equity funds used during construction 1 2 4 5
Income from equity method investees 1 4 1 8
Non-operating retirement benefits, net 54 40 154 121
Other income 2 1 3 7
Other expense (5) (3) (20) (7)
Total other income 54 44 145 136
Interest Charges        
Interest on long-term debt 127 120 370 359
Interest expense – related parties 3 3 9 9
Other interest expense 0 3 2 8
Allowance for borrowed funds used during construction 0 (1) (1) (2)
Total interest charges 130 125 380 374
Income Before Income Taxes 182 179 718 704
Income Tax Expense 19 26 72 90
Income From Continuing Operations 163 153 646 614
Income From Discontinued Operations, Net of Tax of $—, $9, $1, and $25 0 30 4 82
Net Income 163 183 650 696
Loss Attributable to Noncontrolling Interests (2) (6) (16) (18)
Net Income Attributable to CMS Energy 165 189 666 714
Preferred Stock Dividends 2 3 7 3
Net Income Available to Common Stockholders $ 163 $ 186 $ 659 $ 711
Basic Earnings Per Average Common Share        
Basic earnings per average common share, income from continuing operations per average common share available to common stockholders (in dollars per share) $ 0.56 $ 0.54 $ 2.26 $ 2.18
Basic earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) 0 0.10 0.01 0.28
Basic earnings per average common share (in dollars per share) 0.56 0.64 2.27 2.46
Diluted Earnings Per Average Common Share        
Diluted earnings per average common share, income from continuing operations per average common share available to common stockholders (in dollars per share) 0.56 0.54 2.26 2.18
Diluted earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) 0 0.10 0.01 0.28
Diluted earnings per average common share (in dollars per share) $ 0.56 $ 0.64 $ 2.27 $ 2.46
Purchased and interchange power        
Operating Expenses        
Cost of goods and services sold $ 572 $ 462 $ 1,510 $ 1,230
Cost of gas sold        
Operating Expenses        
Cost of goods and services sold $ 118 $ 57 $ 802 $ 432
v3.22.2.2
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Statement of Comprehensive Income [Abstract]        
Net Income $ 163 $ 183 $ 650 $ 696
Retirement Benefits Liability        
Net gain (loss) arising during the period (1) 0 1 0
Amortization of net actuarial loss, net of tax 1 1 3 5
Amortization of prior service credit 0 0 0 (1)
Derivatives        
Unrealized gain on derivative instruments, net of tax 0 0 2 1
Reclassification adjustments included in net income 0 0 1 0
Other Comprehensive Income 0 1 7 5
Comprehensive Income 163 184 657 701
Comprehensive Loss Attributable to Noncontrolling Interests (2) (6) (16) (18)
Comprehensive Income Attributable to CMS Energy $ 165 $ 190 $ 673 $ 719
v3.22.2.2
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Statement of Comprehensive Income [Abstract]        
Net gain (loss) arising during the period, tax $ (1) $ 0 $ 0 $ 0
Amortization of net actuarial loss, tax 0 0 1 1
Amortization of prior service credit, tax 0 0 0 0
Unrealized gain on derivative instruments, tax 0 0 1 0
Reclassification adjustments included in net income , tax $ 0 $ 0 $ 0 $ 1
v3.22.2.2
CMS Energy Corporation Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Cash Flows from Operating Activities    
Net Income $ 650 $ 696
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation and amortization 830 832
Deferred income taxes and investment tax credits 58 110
Gain from sale of EnerBank (5) 0
Other non‑cash operating activities and reconciling adjustments (60) (71)
Net cash used in discontinued operations 0 (111)
Changes in assets and liabilities    
Accounts receivable and accrued revenue (257) 129
Inventories (637) (185)
Accounts payable and accrued rate refunds 25 84
Other current assets and liabilities 18 (30)
Other non‑current assets and liabilities 45 29
Net cash provided by operating activities 667 1,483
Cash Flows from Investing Activities    
Capital expenditures (excludes assets placed under finance lease) (1,738) (1,442)
Net proceeds from sale of EnerBank 5 (8)
Net cash provided by discontinued operations 0 78
Cost to retire property and other investing activities (75) (88)
Net cash used in investing activities (1,808) (1,460)
Cash Flows from Financing Activities    
Proceeds from issuance of debt 1,349 300
Retirement of debt (92) (18)
Issuance of common stock 10 23
Issuance of preferred stock, net of issuance costs 0 224
Payment of dividends on common and preferred stock (410) (380)
Proceeds from the sale of membership interest in VIE to tax equity investor 49 0
Net cash used in discontinued operations 0 (84)
Other financing costs (46) (37)
Net cash provided by financing activities 860 28
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts (281) 51
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 476 185
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 195 236
Non‑cash transactions    
Capital expenditures not paid $ 227 $ 172
v3.22.2.2
CMS Energy Corporation Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Current Assets    
Cash and cash equivalents $ 168 $ 452
Restricted cash and cash equivalents 27 24
Accounts receivable and accrued revenue 1,161 931
Accounts receivable – related parties 14 12
Inventories at average cost    
Gas in underground storage 1,057 462
Materials and supplies 196 168
Generating plant fuel stock 51 37
Deferred property taxes 234 356
Regulatory assets 15 46
Prepayments and other current assets 103 139
Total current assets 3,026 2,627
Plant, Property, and Equipment    
Plant, property, and equipment, gross 30,125 29,893
Less accumulated depreciation and amortization 8,863 8,502
Plant, property, and equipment, net 21,262 21,391
Construction work in progress 1,078 961
Total plant, property, and equipment 22,340 22,352
Other Non‑current Assets    
Regulatory assets 3,427 2,259
Accounts receivable 28 30
Investments 70 71
Other 1,481 1,414
Total other non‑current assets 5,006 3,774
Total Assets 30,372 28,753
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 1,000 382
Accounts payable 949 875
Accounts payable – related parties 7 11
Accrued rate refunds 0 12
Accrued interest 117 107
Accrued taxes 178 515
Regulatory liabilities 67 146
Other current liabilities 170 156
Total current liabilities 2,488 2,204
Non‑current Liabilities    
Long-term debt 12,685 12,046
Non-current portion of finance leases and other financing 70 46
Regulatory liabilities 3,862 3,802
Postretirement benefits 136 142
Asset retirement obligations 747 628
Deferred investment tax credit 130 112
Deferred income taxes 2,367 2,210
Other non‑current liabilities 383 375
Total non‑current liabilities 20,380 19,361
Commitments and Contingencies
Common stockholders’ equity    
Common stock 3 3
Other paid-in capital 5,423 5,406
Accumulated other comprehensive loss (52) (59)
Retained earnings 1,315 1,057
Total common stockholders’ equity 6,689 6,407
Cumulative preferred stock 224 224
Total stockholders’ equity 6,913 6,631
Noncontrolling interests 591 557
Total equity 7,504 7,188
Total Liabilities and Equity $ 30,372 $ 28,753
v3.22.2.2
CMS Energy Corporation Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Accounts receivable and accrued revenue, allowance $ 26 $ 20
Common stock authorized (in shares) 350,000,000.0 350,000,000.0
Common stock outstanding (in shares) 290,300,000 289,800,000
Series C Preferred Stock Depositary Shares    
Preferred stock authorized (in shares) 9,200,000 9,200,000
Preferred stock outstanding (in shares) 9,200,000 9,200,000
v3.22.2.2
CMS Energy Corporation Consolidated Statements of Changes in Equity (Unaudited) - USD ($)
$ in Millions
Total
Common Stock
Other Paid-in Capital
Accumulated Other Comprehensive Loss
Retirement benefits liability
Derivative instruments
Retained Earnings
Cumulative Preferred Stock
Noncontrolling Interests
Total Equity at Beginning of Period at Dec. 31, 2020 $ 6,077 $ 3 $ 5,365 $ (86) $ (80) $ (6) $ 214 $ 0 $ 581
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Common stock issued     41         224  
Common stock repurchased     (9)            
Net gain (loss) arising during the period 0       0        
Amortization of net actuarial loss 5       5        
Amortization of prior service credit (1)       (1)        
Unrealized gain on derivative instruments 1         1      
Reclassification adjustments included in net income 0         0      
Net Income 696           714   (18)
Dividends declared on common stock             (378)    
Dividends declared on preferred stock             (3)    
Sale of membership interest in VIE to tax equity investor                 0
Contribution from noncontrolling interest                 1
Distributions and other changes in noncontrolling interests                 (1)
Total Equity at End of Period at Sep. 30, 2021 $ 6,653 3 5,397 (81) (76) (5) 547 224 563
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Dividends declared per common share (in dollars per share) $ 1.3050                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0.3063                
Total Equity at Beginning of Period at Jun. 30, 2021 $ 6,366 3 5,389 (82) (77) (5) 487 0 569
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Common stock issued     8         224  
Common stock repurchased     0            
Net gain (loss) arising during the period 0       0        
Amortization of net actuarial loss 1       1        
Amortization of prior service credit 0       0        
Unrealized gain on derivative instruments 0         0      
Reclassification adjustments included in net income 0         0      
Net Income 183           189   (6)
Dividends declared on common stock             (126)    
Dividends declared on preferred stock             (3)    
Sale of membership interest in VIE to tax equity investor                 0
Contribution from noncontrolling interest                 0
Distributions and other changes in noncontrolling interests                 0
Total Equity at End of Period at Sep. 30, 2021 $ 6,653 3 5,397 (81) (76) (5) 547 224 563
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Dividends declared per common share (in dollars per share) $ 0.4350                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0.3063                
Total Equity at Beginning of Period at Dec. 31, 2021 $ 7,188 3 5,406 (59) (56) (3) 1,057 224 557
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Common stock issued     27         0  
Common stock repurchased     (10)            
Net gain (loss) arising during the period 1       1        
Amortization of net actuarial loss 3       3        
Amortization of prior service credit 0       0        
Unrealized gain on derivative instruments 2         2      
Reclassification adjustments included in net income 1         1      
Net Income 650           666   (16)
Dividends declared on common stock             (401)    
Dividends declared on preferred stock             (7)    
Sale of membership interest in VIE to tax equity investor                 49
Contribution from noncontrolling interest                 2
Distributions and other changes in noncontrolling interests                 (1)
Total Equity at End of Period at Sep. 30, 2022 $ 7,504 3 5,423 (52) (52) 0 1,315 224 591
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Dividends declared per common share (in dollars per share) $ 1.3800                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0.7875                
Total Equity at Beginning of Period at Jun. 30, 2022 $ 7,471 3 5,417 (52) (52) 0 1,286 224 593
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Common stock issued     6         0  
Common stock repurchased     0            
Net gain (loss) arising during the period (1)       (1)        
Amortization of net actuarial loss 1       1        
Amortization of prior service credit 0       0        
Unrealized gain on derivative instruments 0         0      
Reclassification adjustments included in net income 0         0      
Net Income 163           165   (2)
Dividends declared on common stock             (134)    
Dividends declared on preferred stock             (2)    
Sale of membership interest in VIE to tax equity investor                 0
Contribution from noncontrolling interest                 0
Distributions and other changes in noncontrolling interests                 0
Total Equity at End of Period at Sep. 30, 2022 $ 7,504 $ 3 $ 5,423 $ (52) $ (52) $ 0 $ 1,315 $ 224 $ 591
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Dividends declared per common share (in dollars per share) $ 0.4600                
Dividends declared per preferred stock Series C depositary share (in dollars per share) $ 0.2625                
v3.22.2.2
Consumers Energy Company Consolidated Statements of Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Operating Revenue $ 2,024 $ 1,725 $ 6,318 $ 5,296
Operating Expenses        
Operating Income 258 260 953 942
Other Income (Expense)        
Interest income 1 0 3 2
Allowance for equity funds used during construction 1 2 4 5
Non-operating retirement benefits, net 54 40 154 121
Other income 2 1 3 7
Other expense (5) (3) (20) (7)
Total other income 54 44 145 136
Interest Charges        
Interest on long-term debt 127 120 370 359
Interest expense – related parties 3 3 9 9
Other interest expense 0 3 2 8
Allowance for borrowed funds used during construction 0 (1) (1) (2)
Total interest charges 130 125 380 374
Income Before Income Taxes 182 179 718 704
Income Tax Expense 19 26 72 90
Net Income Attributable to CMS Energy 165 189 666 714
Preferred Stock Dividends 2 3 7 3
Net income (loss) available to common stockholders 163 186 659 711
Consumers Energy Company        
Operating Revenue 1,886 1,644 5,971 5,074
Operating Expenses        
Fuel for electric generation 233 147 530 340
Purchased and interchange power 556 450 1,461 1,200
Purchased power – related parties 21 21 56 56
Cost of gas sold 114 53 792 425
Maintenance and other operating expenses 393 390 1,076 1,021
Depreciation and amortization 233 241 802 804
General taxes 84 77 299 277
Total operating expenses 1,634 1,379 5,016 4,123
Operating Income 252 265 955 951
Other Income (Expense)        
Interest income 1 1 2 2
Interest and dividend income – related parties 1 1 4 4
Allowance for equity funds used during construction 1 2 4 5
Non-operating retirement benefits, net 52 37 146 113
Other income 1 1 2 7
Other expense (5) (3) (19) (7)
Total other income 51 39 139 124
Interest Charges        
Interest on long-term debt 81 74 231 220
Interest expense – related parties 3 3 9 9
Other interest expense 1 2 2 6
Allowance for borrowed funds used during construction 0 (1) (1) (2)
Total interest charges 85 78 241 233
Income Before Income Taxes 218 226 853 842
Income Tax Expense 29 40 108 130
Net Income Attributable to CMS Energy 189 186 745 712
Preferred Stock Dividends 0 0 1 1
Net income (loss) available to common stockholders $ 189 $ 186 $ 744 $ 711
v3.22.2.2
Consumers Energy Company Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Net Income $ 165 $ 189 $ 666 $ 714
Retirement Benefits Liability        
Amortization of net actuarial loss, net of tax 1 1 3 5
Other Comprehensive Income 0 1 7 5
Comprehensive Income Attributable to CMS Energy 165 190 673 719
Consumers Energy Company        
Net Income 189 186 745 712
Retirement Benefits Liability        
Amortization of net actuarial loss, net of tax 1 1 2 2
Other Comprehensive Income 1 1 2 2
Comprehensive Income Attributable to CMS Energy $ 190 $ 187 $ 747 $ 714
v3.22.2.2
Consumers Energy Company Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Amortization of net actuarial loss, tax $ 0 $ 0 $ 1 $ 1
Consumers Energy Company        
Amortization of net actuarial loss, tax $ 0 $ 0 $ 0 $ 0
v3.22.2.2
Consumers Energy Company Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Cash Flows from Operating Activities    
Net Income $ 666 $ 714
Adjustments to reconcile net income to net cash provided by operating activities    
Deferred income taxes and investment tax credits 58 110
Other non‑cash operating activities and reconciling adjustments (60) (71)
Changes in assets and liabilities    
Accounts receivable and accrued revenue (257) 129
Inventories (637) (185)
Accounts payable and accrued rate refunds 25 84
Other current assets and liabilities 18 (30)
Other non‑current assets and liabilities 45 29
Net cash provided by operating activities 667 1,483
Cash Flows from Investing Activities    
Capital expenditures (excludes assets placed under finance lease) (1,738) (1,442)
Cost to retire property and other investing activities (75) (88)
Net cash used in investing activities (1,808) (1,460)
Cash Flows from Financing Activities    
Proceeds from issuance of debt 1,349 300
Retirement of debt (92) (18)
Payment of dividends on common and preferred stock (410) (380)
Other financing costs (46) (37)
Net cash provided by financing activities 860 28
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts (281) 51
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 476 185
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 195 236
Non‑cash transactions    
Capital expenditures not paid 227 172
Consumers Energy Company    
Cash Flows from Operating Activities    
Net Income 745 712
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation and amortization 802 804
Deferred income taxes and investment tax credits 79 129
Other non‑cash operating activities and reconciling adjustments (57) (65)
Changes in assets and liabilities    
Accounts receivable and accrued revenue (242) 137
Inventories (636) (186)
Accounts payable and accrued rate refunds (2) 60
Other current assets and liabilities 38 (24)
Other non‑current assets and liabilities 34 16
Net cash provided by operating activities 761 1,583
Cash Flows from Investing Activities    
Capital expenditures (excludes assets placed under finance lease) (1,642) (1,433)
Cost to retire property and other investing activities (73) (86)
Net cash used in investing activities (1,715) (1,519)
Cash Flows from Financing Activities    
Proceeds from issuance of debt 1,349 300
Retirement of debt (14) (13)
Decrease in notes payable – related parties (392) (307)
Stockholder contribution 685 575
Payment of dividends on common and preferred stock (594) (571)
Other financing costs (14) (28)
Net cash provided by financing activities 1,020 (44)
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts 66 20
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period 44 35
Cash and Cash Equivalents, Including Restricted Amounts, End of Period 110 55
Non‑cash transactions    
Capital expenditures not paid $ 216 $ 168
v3.22.2.2
Consumers Energy Company Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Current Assets    
Cash and cash equivalents $ 168 $ 452
Restricted cash and cash equivalents 27 24
Accounts receivable and accrued revenue 1,161 931
Accounts receivable – related parties 14 12
Inventories at average cost    
Gas in underground storage 1,057 462
Materials and supplies 196 168
Generating plant fuel stock 51 37
Deferred property taxes 234 356
Regulatory assets 15 46
Prepayments and other current assets 103 139
Total current assets 3,026 2,627
Other Non‑current Assets    
Regulatory assets 3,427 2,259
Accounts receivable 28 30
Other 1,481 1,414
Total other non‑current assets 5,006 3,774
Total Assets 30,372 28,753
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 1,000 382
Accounts payable 949 875
Accounts payable – related parties 7 11
Accrued rate refunds 0 12
Accrued interest 117 107
Accrued taxes 178 515
Regulatory liabilities 67 146
Other current liabilities 170 156
Total current liabilities 2,488 2,204
Non‑current Liabilities    
Long-term debt 12,685 12,046
Non-current portion of finance leases and other financing 70 46
Regulatory liabilities 3,862 3,802
Postretirement benefits 136 142
Asset retirement obligations 747 628
Deferred investment tax credit 130 112
Deferred income taxes 2,367 2,210
Other non‑current liabilities 383 375
Total non‑current liabilities 20,380 19,361
Commitments and Contingencies
Common stockholders’ equity    
Common stock 3 3
Other paid-in capital 5,423 5,406
Accumulated other comprehensive loss (52) (59)
Retained earnings 1,315 1,057
Total common stockholders’ equity 6,689 6,407
Cumulative preferred stock 224 224
Total stockholders’ equity 6,913 6,631
Total Liabilities and Equity 30,372 28,753
Consumers Energy Company    
Current Assets    
Cash and cash equivalents 83 22
Restricted cash and cash equivalents 27 22
Accounts receivable and accrued revenue 1,121 905
Accounts receivable – related parties 9 9
Inventories at average cost    
Gas in underground storage 1,057 462
Materials and supplies 190 163
Generating plant fuel stock 46 33
Deferred property taxes 234 356
Regulatory assets 15 46
Prepayments and other current assets 85 103
Total current assets 2,867 2,121
Plant, Property, and Equipment    
Plant, property, and equipment, gross 28,978 28,771
Less accumulated depreciation and amortization 8,704 8,371
Plant, property, and equipment, net 20,274 20,400
Construction work in progress 939 915
Total plant, property, and equipment 21,213 21,315
Other Non‑current Assets    
Regulatory assets 3,427 2,259
Accounts receivable 34 36
Accounts and notes receivable – related parties 99 102
Other 1,352 1,307
Total other non‑current assets 4,912 3,704
Total Assets 28,992 27,140
Current Liabilities    
Current portion of long-term debt, finance leases, and other financing 1,000 374
Notes payable – related parties 0 392
Accounts payable 881 835
Accounts payable – related parties 12 16
Accrued rate refunds 0 12
Accrued interest 86 75
Accrued taxes 218 529
Regulatory liabilities 67 146
Other current liabilities 147 109
Total current liabilities 2,411 2,488
Non‑current Liabilities    
Long-term debt 8,756 8,050
Non-current portion of finance leases and other financing 47 46
Regulatory liabilities 3,862 3,802
Postretirement benefits 100 104
Asset retirement obligations 723 605
Deferred investment tax credit 130 112
Deferred income taxes 2,516 2,340
Other non‑current liabilities 330 314
Total non‑current liabilities 16,464 15,373
Commitments and Contingencies
Common stockholders’ equity    
Common stock 841 841
Other paid-in capital 7,284 6,599
Accumulated other comprehensive loss (30) (32)
Retained earnings 1,985 1,834
Total common stockholders’ equity 10,080 9,242
Cumulative preferred stock 37 37
Total stockholders’ equity 10,117 9,279
Total Liabilities and Equity $ 28,992 $ 27,140
v3.22.2.2
Consumers Energy Company Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Accounts receivable and accrued revenue, allowance $ 26 $ 20
Common stock authorized (in shares) 350,000,000.0 350,000,000.0
Common stock outstanding (in shares) 290,300,000 289,800,000
Consumers Energy Company    
Accounts receivable and accrued revenue, allowance $ 26 $ 20
Common stock authorized (in shares) 125,000,000.0 125,000,000.0
Common stock outstanding (in shares) 84,100,000 84,100,000
Preferred stock authorized (in shares) 7,500,000 7,500,000
Preferred stock outstanding (in shares) 400,000 400,000
v3.22.2.2
Consumers Energy Company Consolidated Statements of Changes in Equity (Unaudited) - USD ($)
$ in Millions
Total
Common Stock
Other Paid-in Capital
Accumulated Other Comprehensive Loss
Retirement benefits liability
Retained Earnings
Cumulative Preferred Stock
Consumers Energy Company
Consumers Energy Company
Common Stock
Consumers Energy Company
Other Paid-in Capital
Consumers Energy Company
Accumulated Other Comprehensive Loss
Consumers Energy Company
Retirement benefits liability
Consumers Energy Company
Retained Earnings
Consumers Energy Company
Cumulative Preferred Stock
Total Equity at Beginning of Period at Dec. 31, 2020 $ 6,077 $ 3 $ 5,365 $ (86) $ (80) $ 214 $ 0 $ 8,556 $ 841 $ 6,024 $ (36) $ (36) $ 1,690 $ 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   575        
Amortization of net actuarial loss 5       5     2       2    
Net Income 714             712         712  
Dividends declared on common stock           (378)             (570)  
Dividends declared on preferred stock           (3)             (1)  
Total Equity at End of Period at Sep. 30, 2021 6,653 3 5,397 (81) (76) 547 224 9,274 841 6,599 (34) (34) 1,831 37
Total Equity at Beginning of Period at Jun. 30, 2021 6,366 3 5,389 (82) (77) 487 0 8,977 841 6,299 (35) (35) 1,835 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   300        
Amortization of net actuarial loss 1       1     1       1    
Net Income 189             186         186  
Dividends declared on common stock           (126)             (190)  
Dividends declared on preferred stock           (3)             0  
Total Equity at End of Period at Sep. 30, 2021 6,653 3 5,397 (81) (76) 547 224 9,274 841 6,599 (34) (34) 1,831 37
Total Equity at Beginning of Period at Dec. 31, 2021 7,188 3 5,406 (59) (56) 1,057 224 9,279 841 6,599 (32) (32) 1,834 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   685        
Amortization of net actuarial loss 3       3     2       2    
Net Income 666             745         745  
Dividends declared on common stock           (401)             (593)  
Dividends declared on preferred stock           (7)             (1)  
Total Equity at End of Period at Sep. 30, 2022 7,504 3 5,423 (52) (52) 1,315 224 10,117 841 7,284 (30) (30) 1,985 37
Total Equity at Beginning of Period at Jun. 30, 2022 7,471 3 5,417 (52) (52) 1,286 224 10,087 841 7,284 (31) (31) 1,956 37
Increase (Decrease) in Stockholders' Equity [Roll Forward]                            
Stockholder contribution                   0        
Amortization of net actuarial loss 1       1     1       1    
Net Income 165             189         189  
Dividends declared on common stock           (134)             (160)  
Dividends declared on preferred stock           (2)             0  
Total Equity at End of Period at Sep. 30, 2022 $ 7,504 $ 3 $ 5,423 $ (52) $ (52) $ 1,315 $ 224 $ 10,117 $ 841 $ 7,284 $ (30) $ (30) $ 1,985 $ 37
v3.22.2.2
CMS Energy Corporation Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Income Statement [Abstract]        
Tax effect of discontinued operations $ 0 $ 9 $ 1 $ 25
v3.22.2.2
Regulatory Matters
 9 Months Ended
Sep. 30, 2022
Public Utilities, General Disclosures [Line Items]  
Regulatory Matters Regulatory Matters
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, the Residential Customer Group, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings.
There are multiple appeals pending that involve various issues concerning cost recovery from customers, the MPSC’s authority to approve voluntary revenue refunds, and other matters. Consumers is unable to predict the outcome of these appeals.
Electric Rate Case Proceedings: In Consumers’ recent electric rate proceedings, the MPSC and the MPSC Staff have recommended that Consumers be disallowed recovery of certain categories of capital expenditures.
In December 2021, the MPSC issued a final order in Consumers’ 2021 general electric rate case, disallowing cost recovery for fleet assets and certain other categories of recently completed capital expenditures incurred by Consumers. As a result, Consumers impaired a portion of these capital expenditures in 2021.
For other categories of capital expenditures, the MPSC ordered Consumers to provide additional cost/benefit analysis and other information to support cost recovery. Consumers believes it has provided such analysis and information in its 2022 electric rate case. In August 2022, the MPSC Staff recommended
disallowance of additional categories of capital expenditures incurred by Consumers during 2022. Further, some of these are joint (or common) projects undertaken by both the electric and gas business units. Consumers has incurred $19 million related to these programs as of September 30, 2022 and, for certain ongoing projects, expects to incur additional capital expenditures during the remainder of 2022 and beyond.
While Consumers has provided the additional analysis and information requested by the MPSC as supporting evidence of the prudency of such capital expenditures in its pending electric rate case proceeding, it is reasonably possible that the MPSC will disallow some or all of these capital expenditures. Any material disallowance of incurred capital costs could negatively affect CMS Energy’s and Consumers’ future results of operations. Consumers expects the MPSC to issue a final order in its pending electric rate case by March 2023. Consumers cannot predict the outcome of this proceeding.
In January 2022, Consumers filed a petition for rehearing that, among other things, requested that the MPSC reconsider its disallowance in the 2021 electric rate case of $11 million in capital expenditures for which the MPSC had already approved recovery in a previous rate order. In March 2022, the MPSC approved Consumers’ rehearing petition in full and authorized that the $11 million of capital expenditures be included in rate base, which resulted an additional annual rate increase of $5 million prospectively.
Energy Waste Reduction Plan Incentive: Consumers filed its 2021 energy waste reduction reconciliation in May 2022, requesting the MPSC’s approval to collect from customers the maximum performance incentive of $46 million for exceeding statutory savings targets in 2021. Consumers recognized incentive revenue under this program of $46 million in 2021.
Costs of Coal-fueled Electric Generating Units to be Retired: In June 2022, the MPSC approved the settlement agreement reached in Consumers’ 2021 IRP, under which Consumers plans to retire the J.H. Campbell coal-fueled generating units in 2025. Under the 2021 IRP, upon the units’ retirement, Consumers will receive regulatory asset treatment to recover their remaining book value, as well as a 9.0‑percent return on equity, over their original design lives. Until retirement, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases.
In June 2022, Consumers removed from total plant, property, and equipment an amount of $1.3 billion, representing the projected remaining book value of the electric generating units upon their retirement, and recorded it as a non-current regulatory asset on its consolidated balance sheets.
Voluntary Radio Tower Asset Sale Gain Share: In May 2022, Consumers completed a sale of various radio tower assets. In June 2022, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with its electric and gas utility customers. Of the amount to be shared with customers, Consumers proposes to share two-thirds with electric customers through additional spending for tree trimming in 2022 and one-third with gas customers through a donation to nonprofit agencies that provide customer energy bill assistance. As a result, Consumers deferred $7 million of the gain in June 2022, and recorded it as a non-current regulatory liability on its consolidated balance sheets.
GCR and PSCR: Due to rising natural gas prices, Consumers’ gas fuel costs for the nine months ended September 30, 2022 were higher than those projected in its 2022-2023 GCR plan. As a result, Consumers had recorded a $45 million underrecovery in accounts receivable and accrued revenue on its consolidated balance sheets at September 30, 2022. Consumers expects that higher gas fuel costs will continue into the 2022-2023 GCR plan year. Consequently, in June 2022, Consumers filed with the MPSC a revised GCR plan requesting an increase to the GCR factor and self-implemented that increased factor in October 2022.
The recent spikes in fuel prices also increased the cost of electric generation and resulted in higher market prices for electricity. As a result, Consumers’ power supply costs for the nine months ended September 30, 2022 were significantly higher than those projected in the 2022 PSCR plan it submitted to the MPSC in September 2021. Consequently, Consumers had recorded a $375 million underrecovery in accounts receivable and accrued revenue on its consolidated balance sheets at September 30, 2022. Consumers included a projection of its full-year 2022 underrecovery in its 2023 PSCR plan filed with the MPSC in September 2022.
Consumers Energy Company  
Public Utilities, General Disclosures [Line Items]  
Regulatory Matters Regulatory Matters
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, the Residential Customer Group, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings.
There are multiple appeals pending that involve various issues concerning cost recovery from customers, the MPSC’s authority to approve voluntary revenue refunds, and other matters. Consumers is unable to predict the outcome of these appeals.
Electric Rate Case Proceedings: In Consumers’ recent electric rate proceedings, the MPSC and the MPSC Staff have recommended that Consumers be disallowed recovery of certain categories of capital expenditures.
In December 2021, the MPSC issued a final order in Consumers’ 2021 general electric rate case, disallowing cost recovery for fleet assets and certain other categories of recently completed capital expenditures incurred by Consumers. As a result, Consumers impaired a portion of these capital expenditures in 2021.
For other categories of capital expenditures, the MPSC ordered Consumers to provide additional cost/benefit analysis and other information to support cost recovery. Consumers believes it has provided such analysis and information in its 2022 electric rate case. In August 2022, the MPSC Staff recommended
disallowance of additional categories of capital expenditures incurred by Consumers during 2022. Further, some of these are joint (or common) projects undertaken by both the electric and gas business units. Consumers has incurred $19 million related to these programs as of September 30, 2022 and, for certain ongoing projects, expects to incur additional capital expenditures during the remainder of 2022 and beyond.
While Consumers has provided the additional analysis and information requested by the MPSC as supporting evidence of the prudency of such capital expenditures in its pending electric rate case proceeding, it is reasonably possible that the MPSC will disallow some or all of these capital expenditures. Any material disallowance of incurred capital costs could negatively affect CMS Energy’s and Consumers’ future results of operations. Consumers expects the MPSC to issue a final order in its pending electric rate case by March 2023. Consumers cannot predict the outcome of this proceeding.
In January 2022, Consumers filed a petition for rehearing that, among other things, requested that the MPSC reconsider its disallowance in the 2021 electric rate case of $11 million in capital expenditures for which the MPSC had already approved recovery in a previous rate order. In March 2022, the MPSC approved Consumers’ rehearing petition in full and authorized that the $11 million of capital expenditures be included in rate base, which resulted an additional annual rate increase of $5 million prospectively.
Energy Waste Reduction Plan Incentive: Consumers filed its 2021 energy waste reduction reconciliation in May 2022, requesting the MPSC’s approval to collect from customers the maximum performance incentive of $46 million for exceeding statutory savings targets in 2021. Consumers recognized incentive revenue under this program of $46 million in 2021.
Costs of Coal-fueled Electric Generating Units to be Retired: In June 2022, the MPSC approved the settlement agreement reached in Consumers’ 2021 IRP, under which Consumers plans to retire the J.H. Campbell coal-fueled generating units in 2025. Under the 2021 IRP, upon the units’ retirement, Consumers will receive regulatory asset treatment to recover their remaining book value, as well as a 9.0‑percent return on equity, over their original design lives. Until retirement, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases.
In June 2022, Consumers removed from total plant, property, and equipment an amount of $1.3 billion, representing the projected remaining book value of the electric generating units upon their retirement, and recorded it as a non-current regulatory asset on its consolidated balance sheets.
Voluntary Radio Tower Asset Sale Gain Share: In May 2022, Consumers completed a sale of various radio tower assets. In June 2022, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with its electric and gas utility customers. Of the amount to be shared with customers, Consumers proposes to share two-thirds with electric customers through additional spending for tree trimming in 2022 and one-third with gas customers through a donation to nonprofit agencies that provide customer energy bill assistance. As a result, Consumers deferred $7 million of the gain in June 2022, and recorded it as a non-current regulatory liability on its consolidated balance sheets.
GCR and PSCR: Due to rising natural gas prices, Consumers’ gas fuel costs for the nine months ended September 30, 2022 were higher than those projected in its 2022-2023 GCR plan. As a result, Consumers had recorded a $45 million underrecovery in accounts receivable and accrued revenue on its consolidated balance sheets at September 30, 2022. Consumers expects that higher gas fuel costs will continue into the 2022-2023 GCR plan year. Consequently, in June 2022, Consumers filed with the MPSC a revised GCR plan requesting an increase to the GCR factor and self-implemented that increased factor in October 2022.
The recent spikes in fuel prices also increased the cost of electric generation and resulted in higher market prices for electricity. As a result, Consumers’ power supply costs for the nine months ended September 30, 2022 were significantly higher than those projected in the 2022 PSCR plan it submitted to the MPSC in September 2021. Consequently, Consumers had recorded a $375 million underrecovery in accounts receivable and accrued revenue on its consolidated balance sheets at September 30, 2022. Consumers included a projection of its full-year 2022 underrecovery in its 2023 PSCR plan filed with the MPSC in September 2022.
v3.22.2.2
Contingencies and Commitments
 9 Months Ended
Sep. 30, 2022
Other Commitments [Line Items]  
Contingencies and Commitments Contingencies and Commitments
CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter.
CMS Energy Contingencies
Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which was renewed in January 2022 and is valid through 2025.
At September 30, 2022, CMS Energy had a recorded liability of $44 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $54 million. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2022 and in each of the next five years:
In Millions
202220232024202520262027
CMS Energy
Long-term leachate disposal and operating and maintenance costs$1 $4 $4 $4 $4 $4 
CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter.
Consumers Electric Utility Contingencies
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations.
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $2 million and $4 million. At September 30, 2022, Consumers had a recorded liability of $2 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount.
Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 2011, Consumers received a follow-up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river.
Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At September 30, 2022, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount.
The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability.
Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome.
Ludington Plant Overhaul Contract Dispute: Consumers and DTE Electric, co-owners of Ludington, are parties to a 2010 engineering, procurement, and construction contract with TAES, under which TAES is charged with performing a major overhaul and upgrade of Ludington. TAES’ performance has been unsatisfactory and resulted in overhaul project delays. Consumers and DTE Electric have demanded that TAES provide a comprehensive plan to resolve quality control concerns, including adherence to its warranty commitments and other contractual obligations. Consumers and DTE Electric have taken extensive efforts to resolve these issues with TAES, including a formal demand to TAES’ parent, Toshiba Corporation, under a parent guaranty it provided in the contract. TAES has not provided a comprehensive plan or otherwise met its performance obligations.
In order to enforce the contract, Consumers and DTE Electric filed a complaint against TAES and Toshiba Corporation in the U.S. District Court for the Eastern District of Michigan in April 2022. In June 2022, TAES and Toshiba Corporation filed a motion to dismiss the complaint, along with an answer and counterclaims seeking approximately $15 million in damages related to payments allegedly owed under the parties’ contract. As a co-owner of Ludington, Consumers would be liable for 51 percent of any such damages. In September 2022, the court denied the motion to dismiss filed by TAES and Toshiba Corporation. Consumers believes the counterclaims are without merit, but cannot predict the financial impact or outcome of this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity.
J.H. Campbell 3 Plant Retirement Contract Dispute: In May 2022, Consumers filed a complaint against Wolverine Power Supply Cooperative, Inc. in the Ottawa County Circuit Court and requested a ruling that Consumers has sole authority to decide to retire the J.H. Campbell 3 coal-fueled generating unit under the unit’s Joint Ownership and Operating Agreement. In July 2022, Wolverine Power Supply Cooperative, Inc. filed an answer, affirmative defenses, and a counterclaim seeking approximately $37 million in damages allegedly caused by Consumers’ decision to retire the unit before the end of its useful life. In July 2022, Consumers filed a motion for summary disposition, which was heard in August 2022. In October 2022, the state circuit court judge found that Consumers may, in its sole discretion, retire the J.H. Campbell 3 coal-fueled generating unit, provided that Consumers continues to operate and make necessary improvements to the unit while the litigation concerning Wolverine Power Supply Cooperative, Inc.’s claim for damages is pending. Consumers believes Wolverine Power Supply Cooperative, Inc.’s claim has no merit, but cannot predict the final impact or outcome on this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity.
Consumers Gas Utility Contingencies
Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site.
At September 30, 2022, Consumers had a recorded liability of $63 million for its remaining obligations for these sites. This amount represents the present value of long-term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $67 million. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2022 and in each of the next five years:
In Millions
202220232024202520262027
Consumers
Remediation and other response activity costs$1 $5 $11 $31 $6 $1 
Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability.
Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten-year period. At September 30, 2022, Consumers had a regulatory asset of $111 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 September 30, 2022, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount.
Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity.
In September 2020, the MPSC disallowed the recovery of $7 million in incremental gas purchases related to the fire. In January 2021, the MPSC denied Consumers’ petition for a rehearing challenging this disallowance. In February 2021, Consumers filed an appeal of the MPSC’s denial with the Michigan Court of Appeals.
In December 2021, Consumers filed a gas rate case with the MPSC that included a request for recovery of the capital expenditures incurred to restore and modify the compressor station. Consumers incurred capital expenditures of $17 million during 2020 and 2021 to restore and modify the compressor station.
During the nine months ended September 30, 2022, Consumers received insurance proceeds of $13 million, representing recovery of costs incurred to restore the compressor station and incremental gas purchases related to the fire. Consumers had recognized the insurance recovery during 2021.
In June 2022, Consumers, the MPSC Staff, and other intervenors reached a settlement of the gas rate case and the MPSC approved it in July 2022. As a part of the settlement agreement, Consumers agreed, at this time, to not seek recovery of the capital expenditures, net of insurance proceeds, related to restoring and modifying the Ray Compressor Station. As a result, Consumers recorded an impairment charge of $10 million within maintenance and other operating expenses on its consolidated statements of income for the nine months ended September 30, 2022.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at September 30, 2022:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousindefinite$336 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite226 3 
Guarantee3
2011indefinite30 — 
Consumers
Guarantee3
2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in NWO Holdco and Aviator Wind to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on NorthStar Clean Energy’s ownership interest in NWO Holdco and Aviator Wind, see Note 13, Variable Interest Entities.
2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 14, Exit Activities and Discontinued Operations.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities and those disclosed in the table to be remote.
Other Contingencies
In addition to the matters disclosed in this Note and Note 1, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further,
CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity.
Consumers Energy Company  
Other Commitments [Line Items]  
Contingencies and Commitments Contingencies and Commitments
CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter.
CMS Energy Contingencies
Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which was renewed in January 2022 and is valid through 2025.
At September 30, 2022, CMS Energy had a recorded liability of $44 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $54 million. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2022 and in each of the next five years:
In Millions
202220232024202520262027
CMS Energy
Long-term leachate disposal and operating and maintenance costs$1 $4 $4 $4 $4 $4 
CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter.
Consumers Electric Utility Contingencies
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations.
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $2 million and $4 million. At September 30, 2022, Consumers had a recorded liability of $2 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount.
Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 2011, Consumers received a follow-up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river.
Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At September 30, 2022, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount.
The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability.
Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome.
Ludington Plant Overhaul Contract Dispute: Consumers and DTE Electric, co-owners of Ludington, are parties to a 2010 engineering, procurement, and construction contract with TAES, under which TAES is charged with performing a major overhaul and upgrade of Ludington. TAES’ performance has been unsatisfactory and resulted in overhaul project delays. Consumers and DTE Electric have demanded that TAES provide a comprehensive plan to resolve quality control concerns, including adherence to its warranty commitments and other contractual obligations. Consumers and DTE Electric have taken extensive efforts to resolve these issues with TAES, including a formal demand to TAES’ parent, Toshiba Corporation, under a parent guaranty it provided in the contract. TAES has not provided a comprehensive plan or otherwise met its performance obligations.
In order to enforce the contract, Consumers and DTE Electric filed a complaint against TAES and Toshiba Corporation in the U.S. District Court for the Eastern District of Michigan in April 2022. In June 2022, TAES and Toshiba Corporation filed a motion to dismiss the complaint, along with an answer and counterclaims seeking approximately $15 million in damages related to payments allegedly owed under the parties’ contract. As a co-owner of Ludington, Consumers would be liable for 51 percent of any such damages. In September 2022, the court denied the motion to dismiss filed by TAES and Toshiba Corporation. Consumers believes the counterclaims are without merit, but cannot predict the financial impact or outcome of this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity.
J.H. Campbell 3 Plant Retirement Contract Dispute: In May 2022, Consumers filed a complaint against Wolverine Power Supply Cooperative, Inc. in the Ottawa County Circuit Court and requested a ruling that Consumers has sole authority to decide to retire the J.H. Campbell 3 coal-fueled generating unit under the unit’s Joint Ownership and Operating Agreement. In July 2022, Wolverine Power Supply Cooperative, Inc. filed an answer, affirmative defenses, and a counterclaim seeking approximately $37 million in damages allegedly caused by Consumers’ decision to retire the unit before the end of its useful life. In July 2022, Consumers filed a motion for summary disposition, which was heard in August 2022. In October 2022, the state circuit court judge found that Consumers may, in its sole discretion, retire the J.H. Campbell 3 coal-fueled generating unit, provided that Consumers continues to operate and make necessary improvements to the unit while the litigation concerning Wolverine Power Supply Cooperative, Inc.’s claim for damages is pending. Consumers believes Wolverine Power Supply Cooperative, Inc.’s claim has no merit, but cannot predict the final impact or outcome on this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity.
Consumers Gas Utility Contingencies
Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site.
At September 30, 2022, Consumers had a recorded liability of $63 million for its remaining obligations for these sites. This amount represents the present value of long-term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $67 million. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2022 and in each of the next five years:
In Millions
202220232024202520262027
Consumers
Remediation and other response activity costs$1 $5 $11 $31 $6 $1 
Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability.
Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten-year period. At September 30, 2022, Consumers had a regulatory asset of $111 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 September 30, 2022, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount.
Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity.
In September 2020, the MPSC disallowed the recovery of $7 million in incremental gas purchases related to the fire. In January 2021, the MPSC denied Consumers’ petition for a rehearing challenging this disallowance. In February 2021, Consumers filed an appeal of the MPSC’s denial with the Michigan Court of Appeals.
In December 2021, Consumers filed a gas rate case with the MPSC that included a request for recovery of the capital expenditures incurred to restore and modify the compressor station. Consumers incurred capital expenditures of $17 million during 2020 and 2021 to restore and modify the compressor station.
During the nine months ended September 30, 2022, Consumers received insurance proceeds of $13 million, representing recovery of costs incurred to restore the compressor station and incremental gas purchases related to the fire. Consumers had recognized the insurance recovery during 2021.
In June 2022, Consumers, the MPSC Staff, and other intervenors reached a settlement of the gas rate case and the MPSC approved it in July 2022. As a part of the settlement agreement, Consumers agreed, at this time, to not seek recovery of the capital expenditures, net of insurance proceeds, related to restoring and modifying the Ray Compressor Station. As a result, Consumers recorded an impairment charge of $10 million within maintenance and other operating expenses on its consolidated statements of income for the nine months ended September 30, 2022.
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at September 30, 2022:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousindefinite$336 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite226 3 
Guarantee3
2011indefinite30 — 
Consumers
Guarantee3
2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in NWO Holdco and Aviator Wind to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on NorthStar Clean Energy’s ownership interest in NWO Holdco and Aviator Wind, see Note 13, Variable Interest Entities.
2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 14, Exit Activities and Discontinued Operations.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities and those disclosed in the table to be remote.
Other Contingencies
In addition to the matters disclosed in this Note and Note 1, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further,
CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity.
v3.22.2.2
Financings and Capitalization
 9 Months Ended
Sep. 30, 2022
Debt Instrument [Line Items]  
Financings and Capitalization Financings and Capitalization
Financings: Presented in the following table is a summary of major long-term debt issuances during the nine months ended September 30, 2022:
Principal
(In Millions)		Interest RateIssuance DateMaturity Date
Consumers
Term loan facility1
$550 variableJuly 2022January 2024
First mortgage bonds350 3.600 %August 2022August 2032
First mortgage bonds 450 4.200 %August 2022September 2052
1    In July 2022, Consumers entered into a delayed-draw $1.0 billion unsecured term loan credit agreement. Loans under this facility have an interest rate of one-month SOFR plus 0.650 percent. At September 30, 2022, Consumers had loans outstanding of $300 million at a rate of 3.456 percent and $250 million at a rate of 3.714 percent.
Presented in the following table is a summary of major long-term debt retirements during the nine months ended September 30, 2022:
Principal
(In Millions)		Interest RateRetirement DateMaturity Date
NorthStar Clean Energy, including subsidiaries
Term loan facility$76 variableJune 2022October 2025
In June 2022, NorthStar Clean Energy sold a Class A membership interest in NWO Holdco to a tax equity investor for $49 million. Proceeds from the sale were used to retire the non-recourse debt held by a subsidiary of NorthStar Clean Energy. For more information, see Note 13, Variable Interest Entities.
Credit Facilities: The following credit facilities with banks were available at September 30, 2022:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 2024
$550 $— $14 $536 
September 22, 2024
50 — 50 — 
NorthStar Clean Energy, including subsidiaries
September 25, 20251
$37 $— $37 $— 
Consumers2
June 5, 2024
$850 $— $29 $821 
November 19, 2023
250 — 62 188 
1This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 13, Variable Interest Entities.
2Obligations under these facilities are secured by first mortgage bonds of Consumers.
Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. In March 2022, the FERC issued an authorization for financings that was set to expire on March 31, 2023. In April 2022, FERC issued a revision of its March authorization for financings that extends the expiration to March 31, 2024.
Short-term Borrowings: Under Consumers’ commercial paper program, Consumers may issue, in one or more placements, investment-grade commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers’ revolving credit facilities and may have an aggregate principal amount outstanding of up to $500 million. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At September 30, 2022, there were no commercial paper notes outstanding under this program.
In December 2021, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million at an interest rate of the prior month’s average one-month LIBOR minus 0.100 percent. At September 30, 2022, there were no outstanding borrowings under the agreement.
Dividend Restrictions: At September 30, 2022, payment of dividends by CMS Energy on its common stock was limited to $6.7 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at September 30, 2022, Consumers had $1.9 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process.
During the nine months ended September 30, 2022, Consumers paid $593 million in dividends on its common stock to CMS Energy.
Issuance of Common Stock: Under an existing equity offering program, CMS Energy may sell shares of its common stock having an aggregate sales price of up to $500 million in privately negotiated transactions, in “at the market” offerings, through forward sales transactions, or otherwise.
Presented in the following table are details of CMS Energy’s forward sales contracts under this program at September 30, 2022:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialSeptember 30, 2022
September 15, 2020December 31, 2022846,759$61.04 $57.31 
December 22, 2020December 31, 2023115,59561.81 58.65 
August 3, 2022February 1, 20242,944,20767.59 67.78 
August 24, 2022February 26, 20241,677,93869.46 69.59 
August 29, 2022February 26, 20241,783,38868.18 68.29 
These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock.
The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net cash settle the contracts as of September 30, 2022, it would have been required to pay less than $1 million. If CMS Energy had elected to net share settle the contracts as of September 30, 2022, CMS Energy would have been required to deliver 13,504 shares.
Consumers Energy Company  
Debt Instrument [Line Items]  
Financings and Capitalization Financings and Capitalization
Financings: Presented in the following table is a summary of major long-term debt issuances during the nine months ended September 30, 2022:
Principal
(In Millions)		Interest RateIssuance DateMaturity Date
Consumers
Term loan facility1
$550 variableJuly 2022January 2024
First mortgage bonds350 3.600 %August 2022August 2032
First mortgage bonds 450 4.200 %August 2022September 2052
1    In July 2022, Consumers entered into a delayed-draw $1.0 billion unsecured term loan credit agreement. Loans under this facility have an interest rate of one-month SOFR plus 0.650 percent. At September 30, 2022, Consumers had loans outstanding of $300 million at a rate of 3.456 percent and $250 million at a rate of 3.714 percent.
Presented in the following table is a summary of major long-term debt retirements during the nine months ended September 30, 2022:
Principal
(In Millions)		Interest RateRetirement DateMaturity Date
NorthStar Clean Energy, including subsidiaries
Term loan facility$76 variableJune 2022October 2025
In June 2022, NorthStar Clean Energy sold a Class A membership interest in NWO Holdco to a tax equity investor for $49 million. Proceeds from the sale were used to retire the non-recourse debt held by a subsidiary of NorthStar Clean Energy. For more information, see Note 13, Variable Interest Entities.
Credit Facilities: The following credit facilities with banks were available at September 30, 2022:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 2024
$550 $— $14 $536 
September 22, 2024
50 — 50 — 
NorthStar Clean Energy, including subsidiaries
September 25, 20251
$37 $— $37 $— 
Consumers2
June 5, 2024
$850 $— $29 $821 
November 19, 2023
250 — 62 188 
1This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 13, Variable Interest Entities.
2Obligations under these facilities are secured by first mortgage bonds of Consumers.
Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. In March 2022, the FERC issued an authorization for financings that was set to expire on March 31, 2023. In April 2022, FERC issued a revision of its March authorization for financings that extends the expiration to March 31, 2024.
Short-term Borrowings: Under Consumers’ commercial paper program, Consumers may issue, in one or more placements, investment-grade commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers’ revolving credit facilities and may have an aggregate principal amount outstanding of up to $500 million. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At September 30, 2022, there were no commercial paper notes outstanding under this program.
In December 2021, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million at an interest rate of the prior month’s average one-month LIBOR minus 0.100 percent. At September 30, 2022, there were no outstanding borrowings under the agreement.
Dividend Restrictions: At September 30, 2022, payment of dividends by CMS Energy on its common stock was limited to $6.7 billion under provisions of the Michigan Business Corporation Act of 1972.
Under the provisions of its articles of incorporation, at September 30, 2022, Consumers had $1.9 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process.
During the nine months ended September 30, 2022, Consumers paid $593 million in dividends on its common stock to CMS Energy.
Issuance of Common Stock: Under an existing equity offering program, CMS Energy may sell shares of its common stock having an aggregate sales price of up to $500 million in privately negotiated transactions, in “at the market” offerings, through forward sales transactions, or otherwise.
Presented in the following table are details of CMS Energy’s forward sales contracts under this program at September 30, 2022:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialSeptember 30, 2022
September 15, 2020December 31, 2022846,759$61.04 $57.31 
December 22, 2020December 31, 2023115,59561.81 58.65 
August 3, 2022February 1, 20242,944,20767.59 67.78 
August 24, 2022February 26, 20241,677,93869.46 69.59 
August 29, 2022February 26, 20241,783,38868.18 68.29 
These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock.
The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net cash settle the contracts as of September 30, 2022, it would have been required to pay less than $1 million. If CMS Energy had elected to net share settle the contracts as of September 30, 2022, CMS Energy would have been required to deliver 13,504 shares.
v3.22.2.2
Fair Value Measurements
 9 Months Ended
Sep. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Measurements Fair Value Measurements
Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows:
•Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
•Level 2 inputs are observable, market-based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data.
•Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities.
CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
September 30
2022		December 31
2021		September 30
2022		December 31
2021
Assets1
Restricted cash equivalents$27 $24 $27 $22 
Nonqualified deferred compensation plan assets22 27 17 21 
Derivative instruments3 2 3 2 
Total assets$52 $53 $47 $45 
Liabilities1
Nonqualified deferred compensation plan liabilities$22 $27 $17 $21 
Derivative instruments— 7 — — 
Total liabilities$22 $34 $17 $21 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Restricted Cash Equivalents: Restricted cash equivalents consist of money market funds with daily liquidity. For further details, see Note 11, Cash and Cash Equivalents.
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets.
Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3.
The derivatives classified as Level 2 were interest rate swaps at CMS Energy, which were valued using market-based inputs. CMS Energy used interest rate swaps to manage its interest rate risk on certain long‑term debt obligations.
A subsidiary of NorthStar Clean Energy used floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with future interest payments on certain long‑term variable-rate debt. The interest rate swaps were accounted for as cash flow hedges of the future variability of interest payments on the debt. In June 2022, NorthStar Clean Energy repaid the hedged debt and terminated the related interest rate swaps. As a result, the associated unrecognized losses recorded in other comprehensive income were recognized in interest on long-term debt on CMS Energy’s consolidated statements of income; this amount was immaterial. NorthStar Clean Energy also had other interest rate
swaps that economically hedged interest rate risk on debt, but that did not qualify for cash flow hedge accounting. These swaps were also terminated in June 2022; the amounts associated with these swaps were not material for the periods presented.
The majority of derivatives classified as Level 3 are FTRs held by Consumers. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. There was no material activity within the Level 3 categories of assets and liabilities during the periods presented.
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
September 30
2022		December 31
2021		September 30
2022		December 31
2021
Assets1
Restricted cash equivalents$27 $24 $27 $22 
Nonqualified deferred compensation plan assets22 27 17 21 
Derivative instruments3 2 3 2 
Total assets$52 $53 $47 $45 
Liabilities1
Nonqualified deferred compensation plan liabilities$22 $27 $17 $21 
Derivative instruments— 7 — — 
Total liabilities$22 $34 $17 $21 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Restricted Cash Equivalents: Restricted cash equivalents consist of money market funds with daily liquidity. For further details, see Note 11, Cash and Cash Equivalents.
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets.
Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3.
The derivatives classified as Level 2 were interest rate swaps at CMS Energy, which were valued using market-based inputs. CMS Energy used interest rate swaps to manage its interest rate risk on certain long‑term debt obligations.
A subsidiary of NorthStar Clean Energy used floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with future interest payments on certain long‑term variable-rate debt. The interest rate swaps were accounted for as cash flow hedges of the future variability of interest payments on the debt. In June 2022, NorthStar Clean Energy repaid the hedged debt and terminated the related interest rate swaps. As a result, the associated unrecognized losses recorded in other comprehensive income were recognized in interest on long-term debt on CMS Energy’s consolidated statements of income; this amount was immaterial. NorthStar Clean Energy also had other interest rate
swaps that economically hedged interest rate risk on debt, but that did not qualify for cash flow hedge accounting. These swaps were also terminated in June 2022; the amounts associated with these swaps were not material for the periods presented.
The majority of derivatives classified as Level 3 are FTRs held by Consumers. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. There was no material activity within the Level 3 categories of assets and liabilities during the periods presented.
v3.22.2.2
Financial Instruments
 9 Months Ended
Sep. 30, 2022
Financial Instruments [Line Items]  
Financial Instruments Financial Instruments
Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements.
In Millions
September 30, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$11 $11 $— $— $11 $14 $14 $— $— $14 
Liabilities
Long-term debt2
13,675 11,679 1,034 8,566 2,079 12,419 13,800 1,189 10,656 1,955 
Long-term payables3
9 9 — — 9 31 32 — — 32 
Consumers
Assets
Long-term receivables1
$11 $11 $— $— $11 $14 $14 $— $— $14 
Notes receivable – related party4
101 101 — — 101 104 104 — — 104 
Liabilities
Long-term debt5
9,746 8,132 — 6,053 2,079 8,415 9,410 — 7,455 1,955 
1Includes current portion of long-term accounts receivable of $7 million at September 30, 2022 and $9 million at December 31, 2021.
2Includes current portion of long-term debt of $990 million at September 30, 2022 and $373 million at December 31, 2021.
3Includes current portion of long-term payables of $1 million at September 30, 2022 and $23 million at December 31, 2021.
4Includes current portion of notes receivable – related party of $7 million at September 30, 2022 and December 31, 2021.
5Includes current portion of long-term debt of $990 million at September 30, 2022 and $365 million at December 31, 2021.
The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028.
Consumers Energy Company  
Financial Instruments [Line Items]  
Financial Instruments Financial Instruments
Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements.
In Millions
September 30, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$11 $11 $— $— $11 $14 $14 $— $— $14 
Liabilities
Long-term debt2
13,675 11,679 1,034 8,566 2,079 12,419 13,800 1,189 10,656 1,955 
Long-term payables3
9 9 — — 9 31 32 — — 32 
Consumers
Assets
Long-term receivables1
$11 $11 $— $— $11 $14 $14 $— $— $14 
Notes receivable – related party4
101 101 — — 101 104 104 — — 104 
Liabilities
Long-term debt5
9,746 8,132 — 6,053 2,079 8,415 9,410 — 7,455 1,955 
1Includes current portion of long-term accounts receivable of $7 million at September 30, 2022 and $9 million at December 31, 2021.
2Includes current portion of long-term debt of $990 million at September 30, 2022 and $373 million at December 31, 2021.
3Includes current portion of long-term payables of $1 million at September 30, 2022 and $23 million at December 31, 2021.
4Includes current portion of notes receivable – related party of $7 million at September 30, 2022 and December 31, 2021.
5Includes current portion of long-term debt of $990 million at September 30, 2022 and $365 million at December 31, 2021.
The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028.
v3.22.2.2
Asset Retirement Obligations
 9 Months Ended
Sep. 30, 2022
Asset Retirement Obligations [Line Items]  
Asset Retirement Obligations Asset Retirement ObligationsIn September 2022, Consumers increased its ARO liability for coal ash disposal areas. The increase was attributable to a proposed change for closure work at the J.H. Campbell 3 ash disposal landfill and an updated cost estimate for other coal ash disposal areas. These changes provided Consumers with sufficient information to reasonably estimate a revision to the ARO liability associated with the coal ash disposal areas. Presented in the following table are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2021IncurredSettledAccretionCash Flow RevisionsARO Liability 9/30/2022
CMS Energy, including Consumers
Consumers$605 $— $(30)$19 $129 $723 
Renewable generation assets23 — — 1 — 24 
Total CMS Energy$628 $— $(30)$20 $129 $747 
Consumers
Coal ash disposal areas$157 $— $(17)$4 $129 $273 
Gas distribution cut, purge, and cap282 — (10)11 — 283 
Asbestos abatement38 — (1)1 — 38 
Renewable generation assets93 — — 2 — 95 
Gas wells plug and abandon35 — (2)1 — 34 
Total Consumers$605 $— $(30)$19 $129 $723 
Consumers Energy Company  
Asset Retirement Obligations [Line Items]  
Asset Retirement Obligations Asset Retirement ObligationsIn September 2022, Consumers increased its ARO liability for coal ash disposal areas. The increase was attributable to a proposed change for closure work at the J.H. Campbell 3 ash disposal landfill and an updated cost estimate for other coal ash disposal areas. These changes provided Consumers with sufficient information to reasonably estimate a revision to the ARO liability associated with the coal ash disposal areas. Presented in the following table are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2021IncurredSettledAccretionCash Flow RevisionsARO Liability 9/30/2022
CMS Energy, including Consumers
Consumers$605 $— $(30)$19 $129 $723 
Renewable generation assets23 — — 1 — 24 
Total CMS Energy$628 $— $(30)$20 $129 $747 
Consumers
Coal ash disposal areas$157 $— $(17)$4 $129 $273 
Gas distribution cut, purge, and cap282 — (10)11 — 283 
Asbestos abatement38 — (1)1 — 38 
Renewable generation assets93 — — 2 — 95 
Gas wells plug and abandon35 — (2)1 — 34 
Total Consumers$605 $— $(30)$19 $129 $723 
v3.22.2.2
Retirement Benefits
 9 Months Ended
Sep. 30, 2022
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement Benefits
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.
In March 2022, CMS Energy and Consumers determined it was probable that 2022 lump-sum payments to participants under DB Pension Plan A would exceed the plan’s service cost and interest cost components of net periodic cost for the year. These lump-sum payments constitute pension plan liability settlements; once it is probable such settlements will meet the service and interest cost threshold, recognition in earnings is required. As a result, in accordance with GAAP, CMS Energy, including Consumers, performed a remeasurement of DB Pension Plan A as of March 31, 2022, June 30, 2022, and September 30, 2022. For the nine months ended September 30, 2022, CMS Energy, including Consumers, recognized a settlement loss of $19 million; of this amount, $19 million was deferred as a regulatory asset. Consumers recognized a settlement loss of $19 million, all of which was deferred as a regulatory asset. CMS Energy and Consumers will amortize the regulatory asset over eight years.
As a result of the remeasurements, the non-current asset for DB Pension Plan A increased by $69 million from December 31, 2021 at CMS Energy, with an offsetting decrease in the associated regulatory asset of $67 million and a $2 million gain to accumulated other comprehensive loss. At Consumers, the non‑current asset increased by $67 million and the associated regulatory asset decreased by $67 million.
Costs: Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans:
In Millions
DB Pension PlansOPEB Plan
Three Months EndedNine Months EndedThree Months EndedNine Months Ended
September 3020222021202220212022202120222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$9 $14 $32 $41 $4 $5 $13 $14 
Interest cost21 14 59 44 7 6 21 17 
Expected return on plan assets(51)(51)(155)(155)(29)(28)(87)(82)
Amortization of:
Net loss5 25 32 76 — 2 1 6 
Prior service cost (credit)1 1 3 3 (12)(14)(38)(40)
Settlement loss2 1 6 4 — — — — 
Net periodic cost (credit)$(13)$4 $(23)$13 $(30)$(29)$(90)$(85)
Consumers
Net periodic cost (credit)
Service cost$9 $14 $32 $40 $4 $4 $13 $13 
Interest cost20 14 56 42 6 6 20 17 
Expected return on plan assets(48)(49)(147)(147)(26)(26)(80)(77)
Amortization of:
Net loss5 24 30 73 — 2 — 6 
Prior service cost (credit)1 1 3 3 (13)(12)(38)(38)
Settlement loss2 1 6 4 — — — — 
Net periodic cost (credit)$(11)$5 $(20)$15 $(29)$(26)$(85)$(79)
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Retirement Benefits Retirement Benefits
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans.
In March 2022, CMS Energy and Consumers determined it was probable that 2022 lump-sum payments to participants under DB Pension Plan A would exceed the plan’s service cost and interest cost components of net periodic cost for the year. These lump-sum payments constitute pension plan liability settlements; once it is probable such settlements will meet the service and interest cost threshold, recognition in earnings is required. As a result, in accordance with GAAP, CMS Energy, including Consumers, performed a remeasurement of DB Pension Plan A as of March 31, 2022, June 30, 2022, and September 30, 2022. For the nine months ended September 30, 2022, CMS Energy, including Consumers, recognized a settlement loss of $19 million; of this amount, $19 million was deferred as a regulatory asset. Consumers recognized a settlement loss of $19 million, all of which was deferred as a regulatory asset. CMS Energy and Consumers will amortize the regulatory asset over eight years.
As a result of the remeasurements, the non-current asset for DB Pension Plan A increased by $69 million from December 31, 2021 at CMS Energy, with an offsetting decrease in the associated regulatory asset of $67 million and a $2 million gain to accumulated other comprehensive loss. At Consumers, the non‑current asset increased by $67 million and the associated regulatory asset decreased by $67 million.
Costs: Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans:
In Millions
DB Pension PlansOPEB Plan
Three Months EndedNine Months EndedThree Months EndedNine Months Ended
September 3020222021202220212022202120222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$9 $14 $32 $41 $4 $5 $13 $14 
Interest cost21 14 59 44 7 6 21 17 
Expected return on plan assets(51)(51)(155)(155)(29)(28)(87)(82)
Amortization of:
Net loss5 25 32 76 — 2 1 6 
Prior service cost (credit)1 1 3 3 (12)(14)(38)(40)
Settlement loss2 1 6 4 — — — — 
Net periodic cost (credit)$(13)$4 $(23)$13 $(30)$(29)$(90)$(85)
Consumers
Net periodic cost (credit)
Service cost$9 $14 $32 $40 $4 $4 $13 $13 
Interest cost20 14 56 42 6 6 20 17 
Expected return on plan assets(48)(49)(147)(147)(26)(26)(80)(77)
Amortization of:
Net loss5 24 30 73 — 2 — 6 
Prior service cost (credit)1 1 3 3 (13)(12)(38)(38)
Settlement loss2 1 6 4 — — — — 
Net periodic cost (credit)$(11)$5 $(20)$15 $(29)$(26)$(85)$(79)
v3.22.2.2
Income Taxes
 9 Months Ended
Sep. 30, 2022
Income Taxes [Line Items]  
Income Taxes Income Taxes
Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:
Nine Months Ended September 3020222021
CMS Energy, including Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect5.6 5.5 
TCJA excess deferred taxes1
(7.2)(5.8)
Production tax credits(5.2)(4.8)
Accelerated flow-through of regulatory tax benefits2
(4.3)(3.2)
Other, net0.1 0.1 
Effective tax rate10.0 %12.8 %
Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
5.3 5.2 
TCJA excess deferred taxes1
(5.9)(4.6)
Production tax credits(3.8)(3.5)
Accelerated flow-through of regulatory tax benefits2
(3.5)(2.2)
Other, net(0.4)(0.5)
Effective tax rate12.7 %15.4 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022.
2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022.
Consumers Energy Company  
Income Taxes [Line Items]  
Income Taxes Income Taxes
Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:
Nine Months Ended September 3020222021
CMS Energy, including Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect5.6 5.5 
TCJA excess deferred taxes1
(7.2)(5.8)
Production tax credits(5.2)(4.8)
Accelerated flow-through of regulatory tax benefits2
(4.3)(3.2)
Other, net0.1 0.1 
Effective tax rate10.0 %12.8 %
Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
5.3 5.2 
TCJA excess deferred taxes1
(5.9)(4.6)
Production tax credits(3.8)(3.5)
Accelerated flow-through of regulatory tax benefits2
(3.5)(2.2)
Other, net(0.4)(0.5)
Effective tax rate12.7 %15.4 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022.
2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022.
v3.22.2.2
Earnings Per Share - CMS Energy
 9 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
Earnings Per Share - CMS Energy Earnings Per Share—CMS Energy
Presented in the following table are CMS Energy’s basic and diluted EPS computations based on income from continuing operations:
In Millions, Except Per Share Amounts
Three Months EndedNine Months Ended
September 302022202120222021
Income available to common stockholders
Income from continuing operations$163 $153 $646 $614 
Less loss attributable to noncontrolling interests(2)(6)(16)(18)
Less preferred stock dividends2 3 7 3 
Income from continuing operations available to common stockholders – basic and diluted$163 $156 $655 $629 
Average common shares outstanding
Weighted-average shares – basic289.6 289.1 289.5 288.9 
Add dilutive nonvested stock awards0.4 0.5 0.4 0.5 
Add dilutive forward equity sale contracts0.1 — 0.1 — 
Weighted-average shares – diluted290.1 289.6 290.0 289.4 
Income from continuing operations per average common share available to common stockholders
Basic$0.56 $0.54 $2.26 $2.18 
Diluted0.56 0.54 2.26 2.18 
Nonvested Stock Awards
CMS Energy’s nonvested stock awards are composed of participating and non‑participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the nonvested stock awards are considered participating securities. As such, the participating nonvested stock awards were included in the computation of basic EPS. The non‑participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non‑participating securities are also forfeited. Accordingly, the non‑participating awards and stock dividends were included in the computation of diluted EPS, but not in the computation of basic EPS.
Forward Equity Sale Contracts
CMS Energy has entered into forward equity sale contracts. These forward equity sale contracts are non‑participating securities. While the forward sale price in the forward equity sale contract is decreased on certain dates by certain predetermined amounts to reflect expected dividend payments, these price adjustments were set upon inception of the agreement and the forward contract does not give the owner the right to participate in undistributed earnings. Accordingly, the forward equity sale contracts were included in the computation of diluted EPS, but not in the computation of basic EPS. For further details on the forward equity sale contracts, see Note 3, Financings and Capitalization.
v3.22.2.2
Revenue
 9 Months Ended
Sep. 30, 2022
Disaggregation of Revenue [Line Items]  
Revenue RevenuePresented in the following tables are the components of operating revenue:
In Millions
Three Months Ended September 30, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,591 $294 $— $1,885 
Other— — 70 70 
Revenue recognized from contracts with customers$1,591 $294 $70 $1,955 
Leasing income— — 68 68 
Financing income3 1 — 4 
Consumers alternative-revenue programs— (3)— (3)
Total operating revenue – CMS Energy$1,594 $292 $138 $2,024 
Consumers
Consumers utility revenue
Residential$767 $190 $957 
Commercial515 51 566 
Industrial226 10 236 
Other83 43 126 
Revenue recognized from contracts with customers$1,591 $294 $1,885 
Financing income3 1 4 
Alternative-revenue programs— (3)(3)
Total operating revenue – Consumers$1,594 $292 $1,886 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $57 million for the three months ended September 30, 2022.
In Millions
Three Months Ended September 30, 2021Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,416 $224 $— $1,640 
Other— — 31 31 
Revenue recognized from contracts with customers$1,416 $224 $31 $1,671 
Leasing income— — 50 50 
Financing income2 1 — 3 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$1,419 $225 $81 $1,725 
Consumers
Consumers utility revenue
Residential$718 $143 $861 
Commercial456 36 492 
Industrial167 5 172 
Other75 40 115 
Revenue recognized from contracts with customers$1,416 $224 $1,640 
Financing income2 1 3 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$1,419 $225 $1,644 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $35 million for the three months ended September 30, 2021.
In Millions
Nine Months Ended September 30, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,151 $1,809 $— $5,960 
Other— — 155 155 
Revenue recognized from contracts with customers$4,151 $1,809 $155 $6,115 
Leasing income— — 192 192 
Financing income8 5 — 13 
Consumers alternative-revenue programs1 (3)— (2)
Total operating revenue – CMS Energy$4,160 $1,811 $347 $6,318 
Consumers
Consumers utility revenue
Residential$1,955 $1,239 $3,194 
Commercial1,319 371 1,690 
Industrial601 53 654 
Other276 146 422 
Revenue recognized from contracts with customers$4,151 $1,809 $5,960 
Financing income8 5 13 
Alternative-revenue programs1 (3)(2)
Total operating revenue – Consumers$4,160 $1,811 $5,971 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $154 million for the nine months ended September 30, 2022.
In Millions
Nine Months Ended September 30, 2021Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$3,705 $1,357 $— $5,062 
Other— — 86 86 
Revenue recognized from contracts with customers$3,705 $1,357 $86 $5,148 
Leasing income— — 136 136 
Financing income7 4 — 11 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$3,713 $1,361 $222 $5,296 
Consumers
Consumers utility revenue
Residential$1,847 $917 $2,764 
Commercial1,191 258 1,449 
Industrial458 36 494 
Other209 146 355 
Revenue recognized from contracts with customers$3,705 $1,357 $5,062 
Financing income7 4 11 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$3,713 $1,361 $5,074 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $94 million for the nine months ended September 30, 2021.
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
•Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
•Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled
product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Alternative-Revenue Program: Consumers accounts for its financial compensation mechanism as an alternative-revenue program. Consumers recognizes revenue related to the financial compensation mechanism as payments are made on MPSC-approved PPAs.
Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather-normalized, non-fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
CMS Energy and Consumers recorded uncollectible accounts expense of $13 million for the three months ended September 30, 2022 and $6 million for the three months ended September 30, 2021. CMS Energy and Consumers recorded uncollectible accounts expense of $31 million for the nine months ended September 30, 2022 and $17 million for the nine months ended September 30, 2021.
Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable and accrued revenue on CMS Energy’s and Consumers’ consolidated balance sheets, were $369 million at September 30, 2022 and $486 million at December 31, 2021.
Consumers Energy Company  
Disaggregation of Revenue [Line Items]  
Revenue RevenuePresented in the following tables are the components of operating revenue:
In Millions
Three Months Ended September 30, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,591 $294 $— $1,885 
Other— — 70 70 
Revenue recognized from contracts with customers$1,591 $294 $70 $1,955 
Leasing income— — 68 68 
Financing income3 1 — 4 
Consumers alternative-revenue programs— (3)— (3)
Total operating revenue – CMS Energy$1,594 $292 $138 $2,024 
Consumers
Consumers utility revenue
Residential$767 $190 $957 
Commercial515 51 566 
Industrial226 10 236 
Other83 43 126 
Revenue recognized from contracts with customers$1,591 $294 $1,885 
Financing income3 1 4 
Alternative-revenue programs— (3)(3)
Total operating revenue – Consumers$1,594 $292 $1,886 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $57 million for the three months ended September 30, 2022.
In Millions
Three Months Ended September 30, 2021Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,416 $224 $— $1,640 
Other— — 31 31 
Revenue recognized from contracts with customers$1,416 $224 $31 $1,671 
Leasing income— — 50 50 
Financing income2 1 — 3 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$1,419 $225 $81 $1,725 
Consumers
Consumers utility revenue
Residential$718 $143 $861 
Commercial456 36 492 
Industrial167 5 172 
Other75 40 115 
Revenue recognized from contracts with customers$1,416 $224 $1,640 
Financing income2 1 3 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$1,419 $225 $1,644 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $35 million for the three months ended September 30, 2021.
In Millions
Nine Months Ended September 30, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,151 $1,809 $— $5,960 
Other— — 155 155 
Revenue recognized from contracts with customers$4,151 $1,809 $155 $6,115 
Leasing income— — 192 192 
Financing income8 5 — 13 
Consumers alternative-revenue programs1 (3)— (2)
Total operating revenue – CMS Energy$4,160 $1,811 $347 $6,318 
Consumers
Consumers utility revenue
Residential$1,955 $1,239 $3,194 
Commercial1,319 371 1,690 
Industrial601 53 654 
Other276 146 422 
Revenue recognized from contracts with customers$4,151 $1,809 $5,960 
Financing income8 5 13 
Alternative-revenue programs1 (3)(2)
Total operating revenue – Consumers$4,160 $1,811 $5,971 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $154 million for the nine months ended September 30, 2022.
In Millions
Nine Months Ended September 30, 2021Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$3,705 $1,357 $— $5,062 
Other— — 86 86 
Revenue recognized from contracts with customers$3,705 $1,357 $86 $5,148 
Leasing income— — 136 136 
Financing income7 4 — 11 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$3,713 $1,361 $222 $5,296 
Consumers
Consumers utility revenue
Residential$1,847 $917 $2,764 
Commercial1,191 258 1,449 
Industrial458 36 494 
Other209 146 355 
Revenue recognized from contracts with customers$3,705 $1,357 $5,062 
Financing income7 4 11 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$3,713 $1,361 $5,074 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $94 million for the nine months ended September 30, 2021.
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
•Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
•Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled
product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Alternative-Revenue Program: Consumers accounts for its financial compensation mechanism as an alternative-revenue program. Consumers recognizes revenue related to the financial compensation mechanism as payments are made on MPSC-approved PPAs.
Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather-normalized, non-fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
CMS Energy and Consumers recorded uncollectible accounts expense of $13 million for the three months ended September 30, 2022 and $6 million for the three months ended September 30, 2021. CMS Energy and Consumers recorded uncollectible accounts expense of $31 million for the nine months ended September 30, 2022 and $17 million for the nine months ended September 30, 2021.
Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable and accrued revenue on CMS Energy’s and Consumers’ consolidated balance sheets, were $369 million at September 30, 2022 and $486 million at December 31, 2021.
v3.22.2.2
Cash and Cash Equivalents
 9 Months Ended
Sep. 30, 2022
Cash and Cash Equivalents [Line Items]  
Cash and Cash Equivalents Cash and Cash Equivalents
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets:
In Millions
September 30, 2022December 31, 2021
CMS Energy, including Consumers
Cash and cash equivalents$168 $452 
Restricted cash and cash equivalents27 24 
Cash and cash equivalents, including restricted amounts – CMS Energy$195 $476 
Consumers
Cash and cash equivalents$83 $22 
Restricted cash and cash equivalents27 22 
Cash and cash equivalents, including restricted amounts – Consumers$110 $44 
Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Consumers Energy Company  
Cash and Cash Equivalents [Line Items]  
Cash and Cash Equivalents Cash and Cash Equivalents
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets:
In Millions
September 30, 2022December 31, 2021
CMS Energy, including Consumers
Cash and cash equivalents$168 $452 
Restricted cash and cash equivalents27 24 
Cash and cash equivalents, including restricted amounts – CMS Energy$195 $476 
Consumers
Cash and cash equivalents$83 $22 
Restricted cash and cash equivalents27 22 
Cash and cash equivalents, including restricted amounts – Consumers$110 $44 
Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
v3.22.2.2
Reportable Segments
 9 Months Ended
Sep. 30, 2022
Segment Reporting Information [Line Items]  
Reportable Segments Reportable SegmentsReportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders.
CMS Energy
The segments reported for CMS Energy are:
•electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
•gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
•NorthStar Clean Energy (formerly known as the enterprises segment), consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production
In August 2022, CMS Enterprises Company changed its legal name to NorthStar Clean Energy Company. To align the segment reporting with the legal organizational structure and the internal reporting of CMS Energy, the enterprises segment will now be referred to as NorthStar Clean Energy. There were no changes to CMS Energy’s reportable segment composition as a result of this name change.
In October 2021, EnerBank was acquired by Regions Bank. As a result, EnerBank was removed from the composition of CMS Energy’s reportable segments. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income. For information regarding the sale of EnerBank, see Note 14, Exit Activities and Discontinued Operations.
CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items.
Consumers
The segments reported for Consumers are:
•electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
•gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
Consumers’ other consolidated entities are presented within other reconciling items.
Presented in the following tables is financial information by segment:
In Millions
Three Months EndedNine Months Ended
September 302022202120222021
CMS Energy, including Consumers
Operating revenue
Electric utility$1,594 $1,419 $4,160 $3,713 
Gas utility292 225 1,811 1,361 
NorthStar Clean Energy138 81 347 222 
Total operating revenue – CMS Energy$2,024 $1,725 $6,318 $5,296 
Consumers
Operating revenue
Electric utility$1,594 $1,419 $4,160 $3,713 
Gas utility292 225 1,811 1,361 
Total operating revenue – Consumers$1,886 $1,644 $5,971 $5,074 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$194 $195 $501 $504 
Gas utility(13)(9)239 208 
NorthStar Clean Energy11 7 26 26 
Other reconciling items(29)(7)(107)(27)
Total net income available to common stockholders – CMS Energy$163 $186 $659 $711 
Consumers
Net income (loss) available to common stockholder
Electric utility$194 $195 $501 $504 
Gas utility(13)(9)239 208 
Other reconciling items8 — 4 (1)
Total net income available to common stockholder – Consumers$189 $186 $744 $711 
In Millions
September 30, 2022December 31, 2021
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1
$17,720 $18,147 
Gas utility1
11,233 10,601 
NorthStar Clean Energy1,146 1,122 
Other reconciling items26 23 
Total plant, property, and equipment, gross – CMS Energy$30,125 $29,893 
Consumers
Plant, property, and equipment, gross
Electric utility1
$17,720 $18,147 
Gas utility1
11,233 10,601 
Other reconciling items25 23 
Total plant, property, and equipment, gross – Consumers$28,978 $28,771 
CMS Energy, including Consumers
Total assets
Electric utility1
$17,362 $16,493 
Gas utility1
11,499 10,517 
NorthStar Clean Energy1,434 1,312 
Other reconciling items77 431 
Total assets – CMS Energy$30,372 $28,753 
Consumers
Total assets
Electric utility1
$17,423 $16,555 
Gas utility1
11,545 10,564 
Other reconciling items24 21 
Total assets – Consumers$28,992 $27,140 
1Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
Consumers Energy Company  
Segment Reporting Information [Line Items]  
Reportable Segments Reportable SegmentsReportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders.
CMS Energy
The segments reported for CMS Energy are:
•electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
•gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
•NorthStar Clean Energy (formerly known as the enterprises segment), consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production
In August 2022, CMS Enterprises Company changed its legal name to NorthStar Clean Energy Company. To align the segment reporting with the legal organizational structure and the internal reporting of CMS Energy, the enterprises segment will now be referred to as NorthStar Clean Energy. There were no changes to CMS Energy’s reportable segment composition as a result of this name change.
In October 2021, EnerBank was acquired by Regions Bank. As a result, EnerBank was removed from the composition of CMS Energy’s reportable segments. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income. For information regarding the sale of EnerBank, see Note 14, Exit Activities and Discontinued Operations.
CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items.
Consumers
The segments reported for Consumers are:
•electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan
•gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan
Consumers’ other consolidated entities are presented within other reconciling items.
Presented in the following tables is financial information by segment:
In Millions
Three Months EndedNine Months Ended
September 302022202120222021
CMS Energy, including Consumers
Operating revenue
Electric utility$1,594 $1,419 $4,160 $3,713 
Gas utility292 225 1,811 1,361 
NorthStar Clean Energy138 81 347 222 
Total operating revenue – CMS Energy$2,024 $1,725 $6,318 $5,296 
Consumers
Operating revenue
Electric utility$1,594 $1,419 $4,160 $3,713 
Gas utility292 225 1,811 1,361 
Total operating revenue – Consumers$1,886 $1,644 $5,971 $5,074 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$194 $195 $501 $504 
Gas utility(13)(9)239 208 
NorthStar Clean Energy11 7 26 26 
Other reconciling items(29)(7)(107)(27)
Total net income available to common stockholders – CMS Energy$163 $186 $659 $711 
Consumers
Net income (loss) available to common stockholder
Electric utility$194 $195 $501 $504 
Gas utility(13)(9)239 208 
Other reconciling items8 — 4 (1)
Total net income available to common stockholder – Consumers$189 $186 $744 $711 
In Millions
September 30, 2022December 31, 2021
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1
$17,720 $18,147 
Gas utility1
11,233 10,601 
NorthStar Clean Energy1,146 1,122 
Other reconciling items26 23 
Total plant, property, and equipment, gross – CMS Energy$30,125 $29,893 
Consumers
Plant, property, and equipment, gross
Electric utility1
$17,720 $18,147 
Gas utility1
11,233 10,601 
Other reconciling items25 23 
Total plant, property, and equipment, gross – Consumers$28,978 $28,771 
CMS Energy, including Consumers
Total assets
Electric utility1
$17,362 $16,493 
Gas utility1
11,499 10,517 
NorthStar Clean Energy1,434 1,312 
Other reconciling items77 431 
Total assets – CMS Energy$30,372 $28,753 
Consumers
Total assets
Electric utility1
$17,423 $16,555 
Gas utility1
11,545 10,564 
Other reconciling items24 21 
Total assets – Consumers$28,992 $27,140 
1Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
v3.22.2.2
Variable Interest Entities
 9 Months Ended
Sep. 30, 2022
Variable Interest Entities [Abstract]  
Variable Interest Entities Variable Interest Entities
In June 2022, NorthStar Clean Energy sold a Class A membership interest in NWO Holdco to a tax equity investor for $49 million. NWO Holdco owns 100 percent of Northwest Ohio Wind, LLC, a 105‑MW wind generation project in Paulding County, Ohio. NorthStar Clean Energy retained a Class B membership interest in NWO Holdco.
NorthStar Clean Energy has a 51‑percent ownership interest in Aviator Wind Equity Holdings, which holds a Class B membership interest in Aviator Wind, a 525‑MW wind generation project in Coke County, Texas. The Class A membership interest in Aviator Wind is held by a tax equity investor.
Earnings, tax attributes, and cash flows generated by NWO Holdco and Aviator Wind are allocated among and distributed to the membership classes in accordance with the ratios specified in the associated limited liability company agreements; these ratios change over time and are not representative of the ownership interest percentages of each membership class. Since NWO Holdco’s and Aviator Wind’s income and cash flows are not distributed among their investors based on ownership interest percentages,
NorthStar Clean Energy allocates the entities’ income (loss) among the investors by applying the hypothetical liquidation at book value method. This method calculates each investor’s earnings based on a hypothetical liquidation of the entities at the net book value of underlying assets as of the balance sheet date. The liquidation tax gain (loss) is allocated to each investor’s capital account, resulting in income (loss) equal to the period change in the investor’s capital account balance.
NWO Holdco, Aviator Wind Equity Holdings, and Aviator Wind are VIEs. In accordance with the associated limited liability company agreements, the tax equity investors are guaranteed preferred returns from NWO Holdco and Aviator Wind. However, NorthStar Clean Energy manages and controls the operating activities of NWO Holdco and Aviator Wind Equity Holdings (and, thereby, Aviator Wind). As a result, NorthStar Clean Energy is the primary beneficiary, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies. NorthStar Clean Energy consolidates NWO Holdco, Aviator Wind Equity Holdings, and Aviator Wind and presents the Class A membership interests and 49 percent of the Class B membership interest in Aviator Wind as noncontrolling interests.
Presented in the following table are the carrying values of the VIEs’ assets and liabilities included on CMS Energy’s consolidated balance sheets:
In Millions
September 30, 2022December 31, 2021
Current
Cash and cash equivalents$33 $21 
Restricted cash and cash equivalents— 1 
Accounts receivable6 3 
Prepayments and other current assets3 2 
Non-current
Plant, property, and equipment, net833 856 
Total assets1
$875 $883 
Current
Accounts payable$15 $17 
Other Liabilities— 2 
Non-current
Asset retirement obligations24 23 
Other Liabilities4 
Total liabilities$39 $46 
1Assets may be used only to meet VIEs’ obligations and commitments.
is obligated under certain indemnities that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. For additional details on these indemnity obligations, see Note 2, Contingencies and Commitments—Guarantees.Other VIEs: CMS Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While CMS Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships.
Presented in the following table is information about these partnerships:
NameNature of the EntityNature of CMS Energy’s Involvement
T.E.S. Filer City Coal-fueled power generatorLong-term PPA between partnership and Consumers
Employee assignment agreement
Grayling Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Genesee Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Craven Wood waste-fueled power generatorOperating and management contract
1Reduced dispatch agreements allow the facilities to be dispatched based on the market price of power compared with the cost of production of the plants. This results in fuel cost savings that each partnership shares with Consumers’ customers.
The creditors of these partnerships do not have recourse to the general credit of CMS Energy or Consumers. CMS Energy and Consumers have not provided any financial or other support during the periods presented that was not previously contractually required.
CMS Energy’s investment in these partnerships is included in investments on its consolidated balance sheets in the amount of $70 million at September 30, 2022 and $71 million at December 31, 2021.
v3.22.2.2
Exit Activities and Discontinued Operations
 9 Months Ended
Sep. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Exit Activities and Discontinued Operations Exit Activities and Discontinued Operations
Exit Activities: Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn coal-fueled electric generating units in 2023. In 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million. In its order in Consumers’ 2020 electric rate case, the MPSC approved deferred accounting treatment for these costs; Consumers began deferring these costs as a regulatory asset in 2021.
Under the 2021 IRP, Consumers will retire the J.H. Campbell coal-fueled generating units in 2025. Similar to the D.E. Karn program, Consumers is providing a retention incentive program to ensure necessary staffing at the J.H. Campbell generating complex through retirement. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2025 is estimated to be $50 million. Additionally, Consumers recognized $4 million related to severance benefits during the nine months ended September 30, 2022. This amount was recorded in other non-current liabilities on its consolidated balance sheets at September 30, 2022. The 2021 IRP provides deferred accounting treatment for the retention and severance costs recognized during 2022; deferral of costs beyond 2022 will be addressed in future rate cases.
As of September 30, 2022, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $11 million has been deferred as a regulatory asset. The cumulative cost incurred and deferred as a regulatory asset related to the J.H. Campbell retention incentive program was $10 million.
Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Nine Months Ended
September 3020222021
Retention benefit liability at beginning of period$14 $11 
Costs deferred as a regulatory asset1
14 5 
Costs incurred and capitalized— 1 
Retention benefit liability at the end of the period2
$28 $17 
1Includes $11 million for the three months ended September 30, 2022 and $2 million for the three months ended September 30, 2021.
2Includes current portion of other liabilities of $25 million at September 30, 2022 and $5 million at September 30, 2021.
Discontinued Operations: In October 2021, EnerBank was acquired by Regions Bank. CMS Energy received proceeds of over $1.0 billion from the transaction and recognized a pre-tax gain of $657 million in 2021. In March 2022, CMS Energy received $6 million of additional proceeds as the result of a post-closing adjustment. Net of related transaction costs, CMS Energy recognized a pre-tax gain of $5 million during the nine months ended September 30, 2022.
In December 2021, CMS Energy submitted a notice of disagreement to Regions Bank relating to a $36 million negative post-closing purchase price adjustment that it believed was inconsistent with the merger agreement. In accordance with the merger agreement, the disputed adjustment was submitted to a mutually agreed upon independent accounting firm for final determination. In June 2022, the accounting firm rendered a determination on the disputed items entirely in favor of CMS Energy. As a result, no further adjustment was required in 2022.
EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three and nine months ended
September 30, 2021. The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Three Months EndedNine Months Ended
September 302022202120222021
Operating revenue$— $70 $— $209 
Expenses
Operating expenses— 17 — 60 
Interest expense— 11 — 34 
Income before income taxes$— $42 $— $115 
Gain on sale1
— (3)5 (8)
Income from discontinued operations before income taxes$— $39 $5 $107 
Income tax expense— 9 1 25 
Income from discontinued operations, net of tax$— $30 $4 $82 
1Amounts in 2021 represent transaction costs.
Consumers Energy Company  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Exit Activities and Discontinued Operations Exit Activities and Discontinued Operations
Exit Activities: Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn coal-fueled electric generating units in 2023. In 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million. In its order in Consumers’ 2020 electric rate case, the MPSC approved deferred accounting treatment for these costs; Consumers began deferring these costs as a regulatory asset in 2021.
Under the 2021 IRP, Consumers will retire the J.H. Campbell coal-fueled generating units in 2025. Similar to the D.E. Karn program, Consumers is providing a retention incentive program to ensure necessary staffing at the J.H. Campbell generating complex through retirement. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2025 is estimated to be $50 million. Additionally, Consumers recognized $4 million related to severance benefits during the nine months ended September 30, 2022. This amount was recorded in other non-current liabilities on its consolidated balance sheets at September 30, 2022. The 2021 IRP provides deferred accounting treatment for the retention and severance costs recognized during 2022; deferral of costs beyond 2022 will be addressed in future rate cases.
As of September 30, 2022, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $11 million has been deferred as a regulatory asset. The cumulative cost incurred and deferred as a regulatory asset related to the J.H. Campbell retention incentive program was $10 million.
Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Nine Months Ended
September 3020222021
Retention benefit liability at beginning of period$14 $11 
Costs deferred as a regulatory asset1
14 5 
Costs incurred and capitalized— 1 
Retention benefit liability at the end of the period2
$28 $17 
1Includes $11 million for the three months ended September 30, 2022 and $2 million for the three months ended September 30, 2021.
2Includes current portion of other liabilities of $25 million at September 30, 2022 and $5 million at September 30, 2021.
Discontinued Operations: In October 2021, EnerBank was acquired by Regions Bank. CMS Energy received proceeds of over $1.0 billion from the transaction and recognized a pre-tax gain of $657 million in 2021. In March 2022, CMS Energy received $6 million of additional proceeds as the result of a post-closing adjustment. Net of related transaction costs, CMS Energy recognized a pre-tax gain of $5 million during the nine months ended September 30, 2022.
In December 2021, CMS Energy submitted a notice of disagreement to Regions Bank relating to a $36 million negative post-closing purchase price adjustment that it believed was inconsistent with the merger agreement. In accordance with the merger agreement, the disputed adjustment was submitted to a mutually agreed upon independent accounting firm for final determination. In June 2022, the accounting firm rendered a determination on the disputed items entirely in favor of CMS Energy. As a result, no further adjustment was required in 2022.
EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three and nine months ended
September 30, 2021. The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Three Months EndedNine Months Ended
September 302022202120222021
Operating revenue$— $70 $— $209 
Expenses
Operating expenses— 17 — 60 
Interest expense— 11 — 34 
Income before income taxes$— $42 $— $115 
Gain on sale1
— (3)5 (8)
Income from discontinued operations before income taxes$— $39 $5 $107 
Income tax expense— 9 1 25 
Income from discontinued operations, net of tax$— $30 $4 $82 
1Amounts in 2021 represent transaction costs.
v3.22.2.2
Significant Accounting Policies (Policy)
 9 Months Ended
Sep. 30, 2022
Significant Accounting Policies [Line Items]  
EPS
Nonvested Stock Awards
CMS Energy’s nonvested stock awards are composed of participating and non‑participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the nonvested stock awards are considered participating securities. As such, the participating nonvested stock awards were included in the computation of basic EPS. The non‑participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non‑participating securities are also forfeited. Accordingly, the non‑participating awards and stock dividends were included in the computation of diluted EPS, but not in the computation of basic EPS.
Forward Equity Sale Contracts
CMS Energy has entered into forward equity sale contracts. These forward equity sale contracts are non‑participating securities. While the forward sale price in the forward equity sale contract is decreased on certain dates by certain predetermined amounts to reflect expected dividend payments, these price adjustments were set upon inception of the agreement and the forward contract does not give the owner the right to participate in undistributed earnings. Accordingly, the forward equity sale contracts were included in the computation of diluted EPS, but not in the computation of basic EPS. For further details on the forward equity sale contracts, see Note 3, Financings and Capitalization.
Accounts Receivable Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
Cash and Cash Equivalents Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
Consolidation, Variable Interest Entity NWO Holdco, Aviator Wind Equity Holdings, and Aviator Wind are VIEs. In accordance with the associated limited liability company agreements, the tax equity investors are guaranteed preferred returns from NWO Holdco and Aviator Wind. However, NorthStar Clean Energy manages and controls the operating activities of NWO Holdco and Aviator Wind Equity Holdings (and, thereby, Aviator Wind). As a result, NorthStar Clean Energy is the primary beneficiary, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies.CMS Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While CMS Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships.
Consumers Energy Company  
Significant Accounting Policies [Line Items]  
Consumers Utility Revenue
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
•Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
•Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled
product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Alternative-Revenue Program: Consumers accounts for its financial compensation mechanism as an alternative-revenue program. Consumers recognizes revenue related to the financial compensation mechanism as payments are made on MPSC-approved PPAs.
Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather-normalized, non-fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Accounts Receivable Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
Unbilled Revenues Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class.
Cash and Cash Equivalents Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less.
Restricted Cash and Cash Equivalents Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year.
v3.22.2.2
Contingencies and Commitments (Tables)
 9 Months Ended
Sep. 30, 2022
Site Contingency [Line Items]  
Expected Remediation Costs By Year CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2022 and in each of the next five years:
In Millions
202220232024202520262027
CMS Energy
Long-term leachate disposal and operating and maintenance costs$1 $4 $4 $4 $4 $4 
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at September 30, 2022:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousindefinite$336 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite226 3 
Guarantee3
2011indefinite30 — 
Consumers
Guarantee3
2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in NWO Holdco and Aviator Wind to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on NorthStar Clean Energy’s ownership interest in NWO Holdco and Aviator Wind, see Note 13, Variable Interest Entities.
2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 14, Exit Activities and Discontinued Operations.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
Consumers Energy Company  
Site Contingency [Line Items]  
Expected Remediation Costs By Year Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2022 and in each of the next five years:
In Millions
202220232024202520262027
Consumers
Remediation and other response activity costs$1 $5 $11 $31 $6 $1 
Guarantees
Presented in the following table are CMS Energy’s and Consumers’ guarantees at September 30, 2022:
In Millions
Guarantee DescriptionIssue DateExpiration DateMaximum ObligationCarrying Amount
CMS Energy, including Consumers
Indemnity obligations from sale of membership interests in VIEs1
variousindefinite$336 $— 
Indemnity obligations from stock and asset sale agreements2
variousindefinite226 3 
Guarantee3
2011indefinite30 — 
Consumers
Guarantee3
2011indefinite$30 $— 
1These obligations arose from the sale of membership interests in NWO Holdco and Aviator Wind to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on NorthStar Clean Energy’s ownership interest in NWO Holdco and Aviator Wind, see Note 13, Variable Interest Entities.
2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 14, Exit Activities and Discontinued Operations.
3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.
v3.22.2.2
Financings and Capitalization (Tables)
 9 Months Ended
Sep. 30, 2022
Debt Instrument [Line Items]  
Schedule of Major Long-Term Debt Issuances and Retirements
Presented in the following table is a summary of major long-term debt retirements during the nine months ended September 30, 2022:
Principal
(In Millions)		Interest RateRetirement DateMaturity Date
NorthStar Clean Energy, including subsidiaries
Term loan facility$76 variableJune 2022October 2025
Schedule of Revolving Credit Facilities The following credit facilities with banks were available at September 30, 2022:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 2024
$550 $— $14 $536 
September 22, 2024
50 — 50 — 
NorthStar Clean Energy, including subsidiaries
September 25, 20251
$37 $— $37 $— 
Consumers2
June 5, 2024
$850 $— $29 $821 
November 19, 2023
250 — 62 188 
1This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 13, Variable Interest Entities.
2Obligations under these facilities are secured by first mortgage bonds of Consumers.
Schedule of Forward Contracts
Presented in the following table are details of CMS Energy’s forward sales contracts under this program at September 30, 2022:
Forward Price Per Share
Contract DateMaturity DateNumber of SharesInitialSeptember 30, 2022
September 15, 2020December 31, 2022846,759$61.04 $57.31 
December 22, 2020December 31, 2023115,59561.81 58.65 
August 3, 2022February 1, 20242,944,20767.59 67.78 
August 24, 2022February 26, 20241,677,93869.46 69.59 
August 29, 2022February 26, 20241,783,38868.18 68.29 
Consumers Energy Company  
Debt Instrument [Line Items]  
Schedule of Major Long-Term Debt Issuances and Retirements Presented in the following table is a summary of major long-term debt issuances during the nine months ended September 30, 2022:
Principal
(In Millions)		Interest RateIssuance DateMaturity Date
Consumers
Term loan facility1
$550 variableJuly 2022January 2024
First mortgage bonds350 3.600 %August 2022August 2032
First mortgage bonds 450 4.200 %August 2022September 2052
1    In July 2022, Consumers entered into a delayed-draw $1.0 billion unsecured term loan credit agreement. Loans under this facility have an interest rate of one-month SOFR plus 0.650 percent. At September 30, 2022, Consumers had loans outstanding of $300 million at a rate of 3.456 percent and $250 million at a rate of 3.714 percent.
Schedule of Revolving Credit Facilities The following credit facilities with banks were available at September 30, 2022:
In Millions
Expiration DateAmount of FacilityAmount BorrowedLetters of Credit OutstandingAmount Available
CMS Energy, parent only
June 5, 2024
$550 $— $14 $536 
September 22, 2024
50 — 50 — 
NorthStar Clean Energy, including subsidiaries
September 25, 20251
$37 $— $37 $— 
Consumers2
June 5, 2024
$850 $— $29 $821 
November 19, 2023
250 — 62 188 
1This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 13, Variable Interest Entities.
2Obligations under these facilities are secured by first mortgage bonds of Consumers.
v3.22.2.2
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Assets And Liabilities Measured At Fair Value On A Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
September 30
2022		December 31
2021		September 30
2022		December 31
2021
Assets1
Restricted cash equivalents$27 $24 $27 $22 
Nonqualified deferred compensation plan assets22 27 17 21 
Derivative instruments3 2 3 2 
Total assets$52 $53 $47 $45 
Liabilities1
Nonqualified deferred compensation plan liabilities$22 $27 $17 $21 
Derivative instruments— 7 — — 
Total liabilities$22 $34 $17 $21 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
Consumers Energy Company  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Assets And Liabilities Measured At Fair Value On A Recurring Basis
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:
In Millions
CMS Energy, including ConsumersConsumers
September 30
2022		December 31
2021		September 30
2022		December 31
2021
Assets1
Restricted cash equivalents$27 $24 $27 $22 
Nonqualified deferred compensation plan assets22 27 17 21 
Derivative instruments3 2 3 2 
Total assets$52 $53 $47 $45 
Liabilities1
Nonqualified deferred compensation plan liabilities$22 $27 $17 $21 
Derivative instruments— 7 — — 
Total liabilities$22 $34 $17 $21 
1All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3.
v3.22.2.2
Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2022
Financial Instruments [Line Items]  
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements.
In Millions
September 30, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$11 $11 $— $— $11 $14 $14 $— $— $14 
Liabilities
Long-term debt2
13,675 11,679 1,034 8,566 2,079 12,419 13,800 1,189 10,656 1,955 
Long-term payables3
9 9 — — 9 31 32 — — 32 
Consumers
Assets
Long-term receivables1
$11 $11 $— $— $11 $14 $14 $— $— $14 
Notes receivable – related party4
101 101 — — 101 104 104 — — 104 
Liabilities
Long-term debt5
9,746 8,132 — 6,053 2,079 8,415 9,410 — 7,455 1,955 
1Includes current portion of long-term accounts receivable of $7 million at September 30, 2022 and $9 million at December 31, 2021.
2Includes current portion of long-term debt of $990 million at September 30, 2022 and $373 million at December 31, 2021.
3Includes current portion of long-term payables of $1 million at September 30, 2022 and $23 million at December 31, 2021.
4Includes current portion of notes receivable – related party of $7 million at September 30, 2022 and December 31, 2021.
5Includes current portion of long-term debt of $990 million at September 30, 2022 and $365 million at December 31, 2021.
Consumers Energy Company  
Financial Instruments [Line Items]  
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements.
In Millions
September 30, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
TotalLevelTotalLevel
123123
CMS Energy, including Consumers
Assets
Long-term receivables1
$11 $11 $— $— $11 $14 $14 $— $— $14 
Liabilities
Long-term debt2
13,675 11,679 1,034 8,566 2,079 12,419 13,800 1,189 10,656 1,955 
Long-term payables3
9 9 — — 9 31 32 — — 32 
Consumers
Assets
Long-term receivables1
$11 $11 $— $— $11 $14 $14 $— $— $14 
Notes receivable – related party4
101 101 — — 101 104 104 — — 104 
Liabilities
Long-term debt5
9,746 8,132 — 6,053 2,079 8,415 9,410 — 7,455 1,955 
1Includes current portion of long-term accounts receivable of $7 million at September 30, 2022 and $9 million at December 31, 2021.
2Includes current portion of long-term debt of $990 million at September 30, 2022 and $373 million at December 31, 2021.
3Includes current portion of long-term payables of $1 million at September 30, 2022 and $23 million at December 31, 2021.
4Includes current portion of notes receivable – related party of $7 million at September 30, 2022 and December 31, 2021.
5Includes current portion of long-term debt of $990 million at September 30, 2022 and $365 million at December 31, 2021.
v3.22.2.2
Asset Retirement Obligations (Tables)
 9 Months Ended
Sep. 30, 2022
Asset Retirement Obligations [Line Items]  
Schedule of Change in Asset Retirement Obligation Presented in the following table are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2021IncurredSettledAccretionCash Flow RevisionsARO Liability 9/30/2022
CMS Energy, including Consumers
Consumers$605 $— $(30)$19 $129 $723 
Renewable generation assets23 — — 1 — 24 
Total CMS Energy$628 $— $(30)$20 $129 $747 
Consumers
Coal ash disposal areas$157 $— $(17)$4 $129 $273 
Gas distribution cut, purge, and cap282 — (10)11 — 283 
Asbestos abatement38 — (1)1 — 38 
Renewable generation assets93 — — 2 — 95 
Gas wells plug and abandon35 — (2)1 — 34 
Total Consumers$605 $— $(30)$19 $129 $723 
Consumers Energy Company  
Asset Retirement Obligations [Line Items]  
Schedule of Change in Asset Retirement Obligation Presented in the following table are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
Company and ARO DescriptionARO Liability 12/31/2021IncurredSettledAccretionCash Flow RevisionsARO Liability 9/30/2022
CMS Energy, including Consumers
Consumers$605 $— $(30)$19 $129 $723 
Renewable generation assets23 — — 1 — 24 
Total CMS Energy$628 $— $(30)$20 $129 $747 
Consumers
Coal ash disposal areas$157 $— $(17)$4 $129 $273 
Gas distribution cut, purge, and cap282 — (10)11 — 283 
Asbestos abatement38 — (1)1 — 38 
Renewable generation assets93 — — 2 — 95 
Gas wells plug and abandon35 — (2)1 — 34 
Total Consumers$605 $— $(30)$19 $129 $723 
v3.22.2.2
Retirement Benefits (Tables)
 9 Months Ended
Sep. 30, 2022
Defined Benefit Plan Disclosure [Line Items]  
Schedule Of Net Benefit Costs Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans:
In Millions
DB Pension PlansOPEB Plan
Three Months EndedNine Months EndedThree Months EndedNine Months Ended
September 3020222021202220212022202120222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$9 $14 $32 $41 $4 $5 $13 $14 
Interest cost21 14 59 44 7 6 21 17 
Expected return on plan assets(51)(51)(155)(155)(29)(28)(87)(82)
Amortization of:
Net loss5 25 32 76 — 2 1 6 
Prior service cost (credit)1 1 3 3 (12)(14)(38)(40)
Settlement loss2 1 6 4 — — — — 
Net periodic cost (credit)$(13)$4 $(23)$13 $(30)$(29)$(90)$(85)
Consumers
Net periodic cost (credit)
Service cost$9 $14 $32 $40 $4 $4 $13 $13 
Interest cost20 14 56 42 6 6 20 17 
Expected return on plan assets(48)(49)(147)(147)(26)(26)(80)(77)
Amortization of:
Net loss5 24 30 73 — 2 — 6 
Prior service cost (credit)1 1 3 3 (13)(12)(38)(38)
Settlement loss2 1 6 4 — — — — 
Net periodic cost (credit)$(11)$5 $(20)$15 $(29)$(26)$(85)$(79)
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Schedule Of Net Benefit Costs Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans:
In Millions
DB Pension PlansOPEB Plan
Three Months EndedNine Months EndedThree Months EndedNine Months Ended
September 3020222021202220212022202120222021
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost$9 $14 $32 $41 $4 $5 $13 $14 
Interest cost21 14 59 44 7 6 21 17 
Expected return on plan assets(51)(51)(155)(155)(29)(28)(87)(82)
Amortization of:
Net loss5 25 32 76 — 2 1 6 
Prior service cost (credit)1 1 3 3 (12)(14)(38)(40)
Settlement loss2 1 6 4 — — — — 
Net periodic cost (credit)$(13)$4 $(23)$13 $(30)$(29)$(90)$(85)
Consumers
Net periodic cost (credit)
Service cost$9 $14 $32 $40 $4 $4 $13 $13 
Interest cost20 14 56 42 6 6 20 17 
Expected return on plan assets(48)(49)(147)(147)(26)(26)(80)(77)
Amortization of:
Net loss5 24 30 73 — 2 — 6 
Prior service cost (credit)1 1 3 3 (13)(12)(38)(38)
Settlement loss2 1 6 4 — — — — 
Net periodic cost (credit)$(11)$5 $(20)$15 $(29)$(26)$(85)$(79)
v3.22.2.2
Income Taxes (Tables)
 9 Months Ended
Sep. 30, 2022
Income Taxes [Line Items]  
Schedule Of Effective Income Tax Rate Reconciliation
Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:
Nine Months Ended September 3020222021
CMS Energy, including Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect5.6 5.5 
TCJA excess deferred taxes1
(7.2)(5.8)
Production tax credits(5.2)(4.8)
Accelerated flow-through of regulatory tax benefits2
(4.3)(3.2)
Other, net0.1 0.1 
Effective tax rate10.0 %12.8 %
Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
5.3 5.2 
TCJA excess deferred taxes1
(5.9)(4.6)
Production tax credits(3.8)(3.5)
Accelerated flow-through of regulatory tax benefits2
(3.5)(2.2)
Other, net(0.4)(0.5)
Effective tax rate12.7 %15.4 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022.
2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022.
Consumers Energy Company  
Income Taxes [Line Items]  
Schedule Of Effective Income Tax Rate Reconciliation
Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations:
Nine Months Ended September 3020222021
CMS Energy, including Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect5.6 5.5 
TCJA excess deferred taxes1
(7.2)(5.8)
Production tax credits(5.2)(4.8)
Accelerated flow-through of regulatory tax benefits2
(4.3)(3.2)
Other, net0.1 0.1 
Effective tax rate10.0 %12.8 %
Consumers
U.S. federal income tax rate21.0 %21.0 %
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect
5.3 5.2 
TCJA excess deferred taxes1
(5.9)(4.6)
Production tax credits(3.8)(3.5)
Accelerated flow-through of regulatory tax benefits2
(3.5)(2.2)
Other, net(0.4)(0.5)
Effective tax rate12.7 %15.4 %
1In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, non‑property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022.
2In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022.
v3.22.2.2
Earnings Per Share - CMS Energy (Tables)
 9 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
Basic And Diluted EPS Computations
Presented in the following table are CMS Energy’s basic and diluted EPS computations based on income from continuing operations:
In Millions, Except Per Share Amounts
Three Months EndedNine Months Ended
September 302022202120222021
Income available to common stockholders
Income from continuing operations$163 $153 $646 $614 
Less loss attributable to noncontrolling interests(2)(6)(16)(18)
Less preferred stock dividends2 3 7 3 
Income from continuing operations available to common stockholders – basic and diluted$163 $156 $655 $629 
Average common shares outstanding
Weighted-average shares – basic289.6 289.1 289.5 288.9 
Add dilutive nonvested stock awards0.4 0.5 0.4 0.5 
Add dilutive forward equity sale contracts0.1 — 0.1 — 
Weighted-average shares – diluted290.1 289.6 290.0 289.4 
Income from continuing operations per average common share available to common stockholders
Basic$0.56 $0.54 $2.26 $2.18 
Diluted0.56 0.54 2.26 2.18 
v3.22.2.2
Revenue (Tables)
 9 Months Ended
Sep. 30, 2022
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue Presented in the following tables are the components of operating revenue:
In Millions
Three Months Ended September 30, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,591 $294 $— $1,885 
Other— — 70 70 
Revenue recognized from contracts with customers$1,591 $294 $70 $1,955 
Leasing income— — 68 68 
Financing income3 1 — 4 
Consumers alternative-revenue programs— (3)— (3)
Total operating revenue – CMS Energy$1,594 $292 $138 $2,024 
Consumers
Consumers utility revenue
Residential$767 $190 $957 
Commercial515 51 566 
Industrial226 10 236 
Other83 43 126 
Revenue recognized from contracts with customers$1,591 $294 $1,885 
Financing income3 1 4 
Alternative-revenue programs— (3)(3)
Total operating revenue – Consumers$1,594 $292 $1,886 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $57 million for the three months ended September 30, 2022.
In Millions
Three Months Ended September 30, 2021Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,416 $224 $— $1,640 
Other— — 31 31 
Revenue recognized from contracts with customers$1,416 $224 $31 $1,671 
Leasing income— — 50 50 
Financing income2 1 — 3 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$1,419 $225 $81 $1,725 
Consumers
Consumers utility revenue
Residential$718 $143 $861 
Commercial456 36 492 
Industrial167 5 172 
Other75 40 115 
Revenue recognized from contracts with customers$1,416 $224 $1,640 
Financing income2 1 3 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$1,419 $225 $1,644 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $35 million for the three months ended September 30, 2021.
In Millions
Nine Months Ended September 30, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,151 $1,809 $— $5,960 
Other— — 155 155 
Revenue recognized from contracts with customers$4,151 $1,809 $155 $6,115 
Leasing income— — 192 192 
Financing income8 5 — 13 
Consumers alternative-revenue programs1 (3)— (2)
Total operating revenue – CMS Energy$4,160 $1,811 $347 $6,318 
Consumers
Consumers utility revenue
Residential$1,955 $1,239 $3,194 
Commercial1,319 371 1,690 
Industrial601 53 654 
Other276 146 422 
Revenue recognized from contracts with customers$4,151 $1,809 $5,960 
Financing income8 5 13 
Alternative-revenue programs1 (3)(2)
Total operating revenue – Consumers$4,160 $1,811 $5,971 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $154 million for the nine months ended September 30, 2022.
In Millions
Nine Months Ended September 30, 2021Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$3,705 $1,357 $— $5,062 
Other— — 86 86 
Revenue recognized from contracts with customers$3,705 $1,357 $86 $5,148 
Leasing income— — 136 136 
Financing income7 4 — 11 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$3,713 $1,361 $222 $5,296 
Consumers
Consumers utility revenue
Residential$1,847 $917 $2,764 
Commercial1,191 258 1,449 
Industrial458 36 494 
Other209 146 355 
Revenue recognized from contracts with customers$3,705 $1,357 $5,062 
Financing income7 4 11 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$3,713 $1,361 $5,074 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $94 million for the nine months ended September 30, 2021.
Consumers Energy Company  
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue Presented in the following tables are the components of operating revenue:
In Millions
Three Months Ended September 30, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,591 $294 $— $1,885 
Other— — 70 70 
Revenue recognized from contracts with customers$1,591 $294 $70 $1,955 
Leasing income— — 68 68 
Financing income3 1 — 4 
Consumers alternative-revenue programs— (3)— (3)
Total operating revenue – CMS Energy$1,594 $292 $138 $2,024 
Consumers
Consumers utility revenue
Residential$767 $190 $957 
Commercial515 51 566 
Industrial226 10 236 
Other83 43 126 
Revenue recognized from contracts with customers$1,591 $294 $1,885 
Financing income3 1 4 
Alternative-revenue programs— (3)(3)
Total operating revenue – Consumers$1,594 $292 $1,886 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $57 million for the three months ended September 30, 2022.
In Millions
Three Months Ended September 30, 2021Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,416 $224 $— $1,640 
Other— — 31 31 
Revenue recognized from contracts with customers$1,416 $224 $31 $1,671 
Leasing income— — 50 50 
Financing income2 1 — 3 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$1,419 $225 $81 $1,725 
Consumers
Consumers utility revenue
Residential$718 $143 $861 
Commercial456 36 492 
Industrial167 5 172 
Other75 40 115 
Revenue recognized from contracts with customers$1,416 $224 $1,640 
Financing income2 1 3 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$1,419 $225 $1,644 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $35 million for the three months ended September 30, 2021.
In Millions
Nine Months Ended September 30, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,151 $1,809 $— $5,960 
Other— — 155 155 
Revenue recognized from contracts with customers$4,151 $1,809 $155 $6,115 
Leasing income— — 192 192 
Financing income8 5 — 13 
Consumers alternative-revenue programs1 (3)— (2)
Total operating revenue – CMS Energy$4,160 $1,811 $347 $6,318 
Consumers
Consumers utility revenue
Residential$1,955 $1,239 $3,194 
Commercial1,319 371 1,690 
Industrial601 53 654 
Other276 146 422 
Revenue recognized from contracts with customers$4,151 $1,809 $5,960 
Financing income8 5 13 
Alternative-revenue programs1 (3)(2)
Total operating revenue – Consumers$4,160 $1,811 $5,971 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $154 million for the nine months ended September 30, 2022.
In Millions
Nine Months Ended September 30, 2021Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$3,705 $1,357 $— $5,062 
Other— — 86 86 
Revenue recognized from contracts with customers$3,705 $1,357 $86 $5,148 
Leasing income— — 136 136 
Financing income7 4 — 11 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$3,713 $1,361 $222 $5,296 
Consumers
Consumers utility revenue
Residential$1,847 $917 $2,764 
Commercial1,191 258 1,449 
Industrial458 36 494 
Other209 146 355 
Revenue recognized from contracts with customers$3,705 $1,357 $5,062 
Financing income7 4 11 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$3,713 $1,361 $5,074 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $94 million for the nine months ended September 30, 2021.
v3.22.2.2
Cash and Cash Equivalents (Tables)
 9 Months Ended
Sep. 30, 2022
Cash and Cash Equivalents [Line Items]  
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets:
In Millions
September 30, 2022December 31, 2021
CMS Energy, including Consumers
Cash and cash equivalents$168 $452 
Restricted cash and cash equivalents27 24 
Cash and cash equivalents, including restricted amounts – CMS Energy$195 $476 
Consumers
Cash and cash equivalents$83 $22 
Restricted cash and cash equivalents27 22 
Cash and cash equivalents, including restricted amounts – Consumers$110 $44 
Consumers Energy Company  
Cash and Cash Equivalents [Line Items]  
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts
Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets:
In Millions
September 30, 2022December 31, 2021
CMS Energy, including Consumers
Cash and cash equivalents$168 $452 
Restricted cash and cash equivalents27 24 
Cash and cash equivalents, including restricted amounts – CMS Energy$195 $476 
Consumers
Cash and cash equivalents$83 $22 
Restricted cash and cash equivalents27 22 
Cash and cash equivalents, including restricted amounts – Consumers$110 $44 
v3.22.2.2
Reportable Segments (Tables)
 9 Months Ended
Sep. 30, 2022
Segment Reporting Information [Line Items]  
Schedule Of Financial Information By Reportable Segments
Presented in the following tables is financial information by segment:
In Millions
Three Months EndedNine Months Ended
September 302022202120222021
CMS Energy, including Consumers
Operating revenue
Electric utility$1,594 $1,419 $4,160 $3,713 
Gas utility292 225 1,811 1,361 
NorthStar Clean Energy138 81 347 222 
Total operating revenue – CMS Energy$2,024 $1,725 $6,318 $5,296 
Consumers
Operating revenue
Electric utility$1,594 $1,419 $4,160 $3,713 
Gas utility292 225 1,811 1,361 
Total operating revenue – Consumers$1,886 $1,644 $5,971 $5,074 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$194 $195 $501 $504 
Gas utility(13)(9)239 208 
NorthStar Clean Energy11 7 26 26 
Other reconciling items(29)(7)(107)(27)
Total net income available to common stockholders – CMS Energy$163 $186 $659 $711 
Consumers
Net income (loss) available to common stockholder
Electric utility$194 $195 $501 $504 
Gas utility(13)(9)239 208 
Other reconciling items8 — 4 (1)
Total net income available to common stockholder – Consumers$189 $186 $744 $711 
In Millions
September 30, 2022December 31, 2021
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1
$17,720 $18,147 
Gas utility1
11,233 10,601 
NorthStar Clean Energy1,146 1,122 
Other reconciling items26 23 
Total plant, property, and equipment, gross – CMS Energy$30,125 $29,893 
Consumers
Plant, property, and equipment, gross
Electric utility1
$17,720 $18,147 
Gas utility1
11,233 10,601 
Other reconciling items25 23 
Total plant, property, and equipment, gross – Consumers$28,978 $28,771 
CMS Energy, including Consumers
Total assets
Electric utility1
$17,362 $16,493 
Gas utility1
11,499 10,517 
NorthStar Clean Energy1,434 1,312 
Other reconciling items77 431 
Total assets – CMS Energy$30,372 $28,753 
Consumers
Total assets
Electric utility1
$17,423 $16,555 
Gas utility1
11,545 10,564 
Other reconciling items24 21 
Total assets – Consumers$28,992 $27,140 
1Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
Consumers Energy Company  
Segment Reporting Information [Line Items]  
Schedule Of Financial Information By Reportable Segments
Presented in the following tables is financial information by segment:
In Millions
Three Months EndedNine Months Ended
September 302022202120222021
CMS Energy, including Consumers
Operating revenue
Electric utility$1,594 $1,419 $4,160 $3,713 
Gas utility292 225 1,811 1,361 
NorthStar Clean Energy138 81 347 222 
Total operating revenue – CMS Energy$2,024 $1,725 $6,318 $5,296 
Consumers
Operating revenue
Electric utility$1,594 $1,419 $4,160 $3,713 
Gas utility292 225 1,811 1,361 
Total operating revenue – Consumers$1,886 $1,644 $5,971 $5,074 
CMS Energy, including Consumers
Net income (loss) available to common stockholders
Electric utility$194 $195 $501 $504 
Gas utility(13)(9)239 208 
NorthStar Clean Energy11 7 26 26 
Other reconciling items(29)(7)(107)(27)
Total net income available to common stockholders – CMS Energy$163 $186 $659 $711 
Consumers
Net income (loss) available to common stockholder
Electric utility$194 $195 $501 $504 
Gas utility(13)(9)239 208 
Other reconciling items8 — 4 (1)
Total net income available to common stockholder – Consumers$189 $186 $744 $711 
In Millions
September 30, 2022December 31, 2021
CMS Energy, including Consumers
Plant, property, and equipment, gross
Electric utility1
$17,720 $18,147 
Gas utility1
11,233 10,601 
NorthStar Clean Energy1,146 1,122 
Other reconciling items26 23 
Total plant, property, and equipment, gross – CMS Energy$30,125 $29,893 
Consumers
Plant, property, and equipment, gross
Electric utility1
$17,720 $18,147 
Gas utility1
11,233 10,601 
Other reconciling items25 23 
Total plant, property, and equipment, gross – Consumers$28,978 $28,771 
CMS Energy, including Consumers
Total assets
Electric utility1
$17,362 $16,493 
Gas utility1
11,499 10,517 
NorthStar Clean Energy1,434 1,312 
Other reconciling items77 431 
Total assets – CMS Energy$30,372 $28,753 
Consumers
Total assets
Electric utility1
$17,423 $16,555 
Gas utility1
11,545 10,564 
Other reconciling items24 21 
Total assets – Consumers$28,992 $27,140 
1Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses.
v3.22.2.2
Variable Interest Entities (Tables)
 9 Months Ended
Sep. 30, 2022
Variable Interest Entities [Abstract]  
Schedule of Variable Interest Entities
Presented in the following table are the carrying values of the VIEs’ assets and liabilities included on CMS Energy’s consolidated balance sheets:
In Millions
September 30, 2022December 31, 2021
Current
Cash and cash equivalents$33 $21 
Restricted cash and cash equivalents— 1 
Accounts receivable6 3 
Prepayments and other current assets3 2 
Non-current
Plant, property, and equipment, net833 856 
Total assets1
$875 $883 
Current
Accounts payable$15 $17 
Other Liabilities— 2 
Non-current
Asset retirement obligations24 23 
Other Liabilities4 
Total liabilities$39 $46 
1Assets may be used only to meet VIEs’ obligations and commitments.
Presented in the following table is information about these partnerships:
NameNature of the EntityNature of CMS Energy’s Involvement
T.E.S. Filer City Coal-fueled power generatorLong-term PPA between partnership and Consumers
Employee assignment agreement
Grayling Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Genesee Wood waste-fueled power generatorLong-term PPA between partnership and Consumers
Reduced dispatch agreement with Consumers1
Operating and management contract
Craven Wood waste-fueled power generatorOperating and management contract
1Reduced dispatch agreements allow the facilities to be dispatched based on the market price of power compared with the cost of production of the plants. This results in fuel cost savings that each partnership shares with Consumers’ customers.
v3.22.2.2
Exit Activities and Discontinued Operations - (Tables)
 9 Months Ended
Sep. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Retention Benefit Liability Roll Forward
Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Nine Months Ended
September 3020222021
Retention benefit liability at beginning of period$14 $11 
Costs deferred as a regulatory asset1
14 5 
Costs incurred and capitalized— 1 
Retention benefit liability at the end of the period2
$28 $17 
1Includes $11 million for the three months ended September 30, 2022 and $2 million for the three months ended September 30, 2021.
2Includes current portion of other liabilities of $25 million at September 30, 2022 and $5 million at September 30, 2021.
Schedule of Income, Assets, and Liabilities from Discontinued Operations The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Three Months EndedNine Months Ended
September 302022202120222021
Operating revenue$— $70 $— $209 
Expenses
Operating expenses— 17 — 60 
Interest expense— 11 — 34 
Income before income taxes$— $42 $— $115 
Gain on sale1
— (3)5 (8)
Income from discontinued operations before income taxes$— $39 $5 $107 
Income tax expense— 9 1 25 
Income from discontinued operations, net of tax$— $30 $4 $82 
1Amounts in 2021 represent transaction costs.
Consumers Energy Company  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Schedule of Retention Benefit Liability Roll Forward
Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Nine Months Ended
September 3020222021
Retention benefit liability at beginning of period$14 $11 
Costs deferred as a regulatory asset1
14 5 
Costs incurred and capitalized— 1 
Retention benefit liability at the end of the period2
$28 $17 
1Includes $11 million for the three months ended September 30, 2022 and $2 million for the three months ended September 30, 2021.
2Includes current portion of other liabilities of $25 million at September 30, 2022 and $5 million at September 30, 2021.
v3.22.2.2
Regulatory Matters - Quarterly Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Jan. 31, 2022
Public Utilities, General Disclosures [Line Items]                
Operating Revenue     $ 2,024 $ 1,725 $ 6,318 $ 5,296    
Regulatory assets     3,427   3,427   $ 2,259  
Regulatory liabilities     3,862   3,862   3,802  
Consumers Energy Company                
Public Utilities, General Disclosures [Line Items]                
Operating Revenue     1,886 $ 1,644 5,971 $ 5,074    
Regulatory assets     3,427   3,427   2,259  
Regulatory liabilities     3,862   3,862   3,802  
Consumers Energy Company | Radio Tower Assets                
Public Utilities, General Disclosures [Line Items]                
Regulatory liabilities $ 7              
Consumers Energy Company | J.H. Campbell Generating Units                
Public Utilities, General Disclosures [Line Items]                
Rate of return on equity authorized 9.00%              
Regulatory assets $ 1,300              
Consumers Energy Company | Electric Rate Case                
Public Utilities, General Disclosures [Line Items]                
Estimate of disallowed costs     19   19      
Recommended disallowed costs               $ 11
Additional annual rate increase authorized   $ 5            
Consumers Energy Company | Energy Waste Reduction Plan Incentive                
Public Utilities, General Disclosures [Line Items]                
Requested recovery/collection     46   46      
Operating Revenue             $ 46  
Consumers Energy Company | GCR underrecoveries                
Public Utilities, General Disclosures [Line Items]                
Underrecovery for gas fuel and power supply costs     45   45      
Consumers Energy Company | PSCR underrecoveries                
Public Utilities, General Disclosures [Line Items]                
Underrecovery for gas fuel and power supply costs     $ 375   $ 375      
v3.22.2.2
Contingencies and Commitments (Contingencies And Commitments) (Details)
$ in Millions
 1 Months Ended 3 Months Ended 9 Months Ended 24 Months Ended
Jul. 31, 2022
USD ($)
Jun. 30, 2022
USD ($)
Sep. 30, 2020
USD ($)
Sep. 30, 2022
USD ($)
site
Sep. 30, 2021
USD ($)
Sep. 30, 2022
USD ($)
site
Sep. 30, 2021
USD ($)
Dec. 31, 2021
USD ($)
Loss Contingencies [Line Items]                
Regulatory assets       $ 3,427   $ 3,427   $ 2,259
Consumers Energy Company                
Loss Contingencies [Line Items]                
Regulatory assets       3,427   3,427   2,259
Cost of gas sold       $ 114 $ 53 $ 792 $ 425  
Consumers Energy Company | Ludington                
Loss Contingencies [Line Items]                
Ownership share       51.00%   51.00%    
Consumers Energy Company | Ludington Plant Overhaul Contract Dispute                
Loss Contingencies [Line Items]                
Damages sought   $ 15            
Consumers Energy Company | J.H. Campbell 3 Plant Retirement Contract Dispute                
Loss Contingencies [Line Items]                
Damages sought $ 37              
Consumers Energy Company | Manufactured Gas Plant                
Loss Contingencies [Line Items]                
Regulatory assets       $ 111   $ 111    
Bay Harbor                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies       $ 44   $ 44    
Discounted projected costs rate       4.34%   4.34%    
Accrual for environmental loss contingencies, inflation rate       1.00%   1.00%    
Remaining undiscounted obligation amount       $ 54   $ 54    
CERCLA Liability | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies       3   3    
CERCLA Liability | Minimum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs       3   3    
CERCLA Liability | Maximum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs       8   8    
Manufactured Gas Plant | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies       $ 63   $ 63    
Discounted projected costs rate       2.57%   2.57%    
Accrual for environmental loss contingencies, inflation rate       2.50%   2.50%    
Remaining undiscounted obligation amount       $ 67   $ 67    
Number of former MGPs | site       23   23    
Regulatory asset collection period           10 years    
Electric Utility | NREPA | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies       $ 2   $ 2    
Electric Utility | NREPA | Minimum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs       2   2    
Electric Utility | NREPA | Maximum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs       4   4    
Gas Utility | NREPA | Consumers Energy Company                
Loss Contingencies [Line Items]                
Accrual for environmental loss contingencies       1   1    
Gas Utility | NREPA | Maximum | Consumers Energy Company                
Loss Contingencies [Line Items]                
Remediation and other response activity costs       $ 3   3    
Ray Compressor Station | Consumers Energy Company                
Loss Contingencies [Line Items]                
Plant additions               $ 17
Insurance recoveries received           13    
Impairment charge           $ 10    
Ray Compressor Station | Consumers Energy Company | GCR underrecoveries                
Loss Contingencies [Line Items]                
Cost of gas sold     $ 7          
v3.22.2.2
Contingencies and Commitments (Expected Remediation Cost By Year) (Details)
$ in Millions
Sep. 30, 2022
USD ($)
Bay Harbor  
Site Contingency [Line Items]  
2022 $ 1
2023 4
2024 4
2025 4
2026 4
2027 4
Manufactured Gas Plant | Consumers Energy Company  
Site Contingency [Line Items]  
2022 1
2023 5
2024 11
2025 31
2026 6
2027 $ 1
v3.22.2.2
Contingencies and Commitments (Guarantees) (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2022
USD ($)
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership  
Guarantees And Other Contingencies [Line Items]  
Ownership percentage 49.00%
Guarantees  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 30
Carrying Amount $ 0
Guarantees | Consumers Energy Company  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 30
Carrying Amount $ 0
Indemnification agreement from sale of membership interests in VIEs  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 336
Carrying Amount $ 0
Indemnity obligations from stock and asset sale agreements  
Guarantees And Other Contingencies [Line Items]  
Expiration Date indefinite
Maximum Obligation $ 226
Carrying Amount $ 3
v3.22.2.2
Financings and Capitalization (Major Long-Term Debt Issuances and Retirements) (Details) - USD ($)
$ in Millions
 1 Months Ended
Jul. 31, 2022
Jun. 30, 2022
Sep. 30, 2022
NWO Holdco, L.L.C      
Debt Instrument [Line Items]      
Sale of noncontrolling interest   $ 49  
Term loan facility | Term Loan Facility Due January 2024 | Consumers Energy Company      
Debt Instrument [Line Items]      
Principal (In Millions)     $ 550
Term loan facility | Unsecured Term Loan Credit Agreement Due January 2024 | Consumers Energy Company      
Debt Instrument [Line Items]      
Principal (In Millions) $ 1,000    
Term loan facility | Unsecured Term Loan Credit Agreement Due January 2024 | Consumers Energy Company | SOFR      
Debt Instrument [Line Items]      
Basis spread on variable rate 0.65%    
Term loan facility | Tranche 1 | Consumers Energy Company      
Debt Instrument [Line Items]      
Loans outstanding     $ 300
Interest rate at period end     3.456%
Term loan facility | Tranche 2 | Consumers Energy Company      
Debt Instrument [Line Items]      
Loans outstanding     $ 250
Interest rate at period end     3.714%
Term loan facility | Term Loan Facility Due October 2025      
Debt Instrument [Line Items]      
Principal (In Millions)     $ 76
First mortgage bonds | First Mortgage Bonds Due August 2032 | Consumers Energy Company      
Debt Instrument [Line Items]      
Principal (In Millions)     $ 350
Interest rate     3.60%
First mortgage bonds | First Mortgage Bonds Due September 2052 | Consumers Energy Company      
Debt Instrument [Line Items]      
Principal (In Millions)     $ 450
Interest rate     4.20%
v3.22.2.2
Financings and Capitalization (Schedule of Revolving Credit Facilities) (Details)
Sep. 30, 2022
USD ($)
Consumers Energy Company | Revolving Credit Facilities June 5, 2024  
Line of Credit Facility [Line Items]  
Amount of Facility $ 850,000,000
Amount Borrowed 0
Letters of Credit Outstanding 29,000,000
Amount Available 821,000,000
Consumers Energy Company | Revolving Credit Facilities November 19, 2023  
Line of Credit Facility [Line Items]  
Amount of Facility 250,000,000
Amount Borrowed 0
Letters of Credit Outstanding 62,000,000
Amount Available 188,000,000
CMS Energy | Revolving Credit Facilities June 5, 2024  
Line of Credit Facility [Line Items]  
Amount of Facility 550,000,000
Amount Borrowed 0
Letters of Credit Outstanding 14,000,000
Amount Available 536,000,000
CMS Energy | Revolving Credit Facilities September 23, 2022  
Line of Credit Facility [Line Items]  
Amount of Facility 50,000,000
Amount Borrowed 0
Letters of Credit Outstanding 50,000,000
Amount Available 0
NorthStar Clean Energy, Including Subsidiaries | Revolving Credit Facilities September 25, 2025  
Line of Credit Facility [Line Items]  
Amount of Facility 37,000,000
Amount Borrowed 0
Letters of Credit Outstanding 37,000,000
Amount Available $ 0
v3.22.2.2
Financings and Capitalization (Narrative) (Details) - USD ($)
 9 Months Ended
Sep. 30, 2022
Dec. 31, 2021
Financing And Capitalization [Line Items]    
Limitation on payment of stock dividends $ 6,700,000,000  
Dividends paid 593,000,000  
Stock offering program maximum value 500,000,000  
Net cash required to settle forward contracts $ 1,000,000  
Number of shares required to settle forward contracts (in shares) 13,504  
Consumers Energy Company    
Financing And Capitalization [Line Items]    
Notes payable – related parties $ 0 $ 392,000,000
Unrestricted retained earnings 1,900,000,000  
Consumers Energy Company | Credit Agreement    
Financing And Capitalization [Line Items]    
Maximum borrowing capacity 500,000,000  
Notes payable – related parties $ 0  
Consumers Energy Company | Credit Agreement | London Interbank Offered Rate (LIBOR)    
Financing And Capitalization [Line Items]    
Basis spread on variable rate 0.10%  
Consumers Energy Company | Commercial Paper    
Financing And Capitalization [Line Items]    
Short-term debt authorized borrowings $ 500,000,000  
Short-term borrowings outstanding $ 0  
v3.22.2.2
Financings and Capitalization (Schedule of Forward Stock Contracts) (Details) - $ / shares
Sep. 30, 2022
Aug. 29, 2022
Aug. 24, 2022
Aug. 03, 2022
Dec. 22, 2020
Sep. 15, 2020
Forward contracts entered into 9/15/2020            
Debt and Equity Securities, FV-NI [Line Items]            
Number of Shares (in shares)           846,759
Initial forward price (in dollars per share) $ 57.31         $ 61.04
Forward contracts entered into 12/22/2020            
Debt and Equity Securities, FV-NI [Line Items]            
Number of Shares (in shares)         115,595  
Initial forward price (in dollars per share) 58.65       $ 61.81  
Forward contracts entered into 8/3/2022            
Debt and Equity Securities, FV-NI [Line Items]            
Number of Shares (in shares)       2,944,207    
Initial forward price (in dollars per share) 67.78     $ 67.59    
Forward contracts entered into 8/24/2022            
Debt and Equity Securities, FV-NI [Line Items]            
Number of Shares (in shares)     1,677,938      
Initial forward price (in dollars per share) 69.59   $ 69.46      
Forward contracts entered into 8/29/2022            
Debt and Equity Securities, FV-NI [Line Items]            
Number of Shares (in shares)   1,783,388        
Initial forward price (in dollars per share) $ 68.29 $ 68.18        
v3.22.2.2
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Assets    
Restricted cash equivalents $ 27 $ 24
Derivative instruments 3 2
Liabilities    
Derivative instruments 0 7
Consumers Energy Company    
Assets    
Restricted cash equivalents 27 22
Derivative instruments 3 2
Liabilities    
Derivative instruments 0 0
Fair Value, Inputs, Level 1    
Assets    
Restricted cash equivalents 27 24
Nonqualified deferred compensation plan assets 22 27
Liabilities    
Nonqualified deferred compensation plan liabilities 22 27
Fair Value, Inputs, Level 1 | Consumers Energy Company    
Assets    
Restricted cash equivalents 27 22
Nonqualified deferred compensation plan assets 17 21
Liabilities    
Nonqualified deferred compensation plan liabilities 17 21
Fair Value, Inputs, Level 1, 2 and 3    
Assets    
Total assets 52 53
Liabilities    
Total liabilities 22 34
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company    
Assets    
Total assets 47 45
Liabilities    
Total liabilities $ 17 $ 21
v3.22.2.2
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Liabilities    
Current accounts receivable $ 7 $ 9
Current portion of long term debt 990 373
Current portion of long-term payables 1 23
Carrying Amount    
Assets    
Long-term receivables 11 14
Liabilities    
Long-term debt 13,675 12,419
Long-term payables 9 31
Fair Value    
Assets    
Long-term receivables 11 14
Liabilities    
Long-term debt 11,679 13,800
Long-term payables 9 32
Consumers Energy Company    
Liabilities    
Current accounts receivable 7 9
Current portion of long term debt 990 365
DB SERP note receivable – related party 7 7
Consumers Energy Company | Carrying Amount    
Assets    
Long-term receivables 11 14
Notes receivable related party 101 104
Liabilities    
Long-term debt 9,746 8,415
Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 11 14
Notes receivable related party 101 104
Liabilities    
Long-term debt 8,132 9,410
Level 1 | Fair Value    
Assets    
Long-term receivables 0 0
Liabilities    
Long-term debt 1,034 1,189
Long-term payables 0 0
Level 1 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 0 0
Notes receivable related party 0 0
Liabilities    
Long-term debt 0 0
Level 2 | Fair Value    
Assets    
Long-term receivables 0 0
Liabilities    
Long-term debt 8,566 10,656
Long-term payables 0 0
Level 2 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 0 0
Notes receivable related party 0 0
Liabilities    
Long-term debt 6,053 7,455
Level 3 | Fair Value    
Assets    
Long-term receivables 11 14
Liabilities    
Long-term debt 2,079 1,955
Long-term payables 9 32
Level 3 | Consumers Energy Company | Fair Value    
Assets    
Long-term receivables 11 14
Notes receivable related party 101 104
Liabilities    
Long-term debt $ 2,079 $ 1,955
v3.22.2.2
Financial Instruments (Narrative) (Details)
Sep. 30, 2022
Consumers Energy Company | CMS Energy Note Payable  
Financial Instruments [Line Items]  
Interest rate 4.10%
v3.22.2.2
Asset Retirement Obligations (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2022
USD ($)
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]  
ARO Liability, at beginning of period $ 628
Incurred 0
Settled (30)
Accretion 20
Cash Flow Revisions 129
ARO Liability, end of period 747
Consumers Energy Company  
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]  
ARO Liability, at beginning of period 605
Incurred 0
Settled (30)
Accretion 19
Cash Flow Revisions 129
ARO Liability, end of period 723
Renewable generation assets  
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]  
ARO Liability, at beginning of period 23
Incurred 0
Settled 0
Accretion 1
Cash Flow Revisions 0
ARO Liability, end of period 24
Renewable generation assets | Consumers Energy Company  
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]  
ARO Liability, at beginning of period 93
Incurred 0
Settled 0
Accretion 2
Cash Flow Revisions 0
ARO Liability, end of period 95
Coal ash disposal areas | Consumers Energy Company  
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]  
ARO Liability, at beginning of period 157
Incurred 0
Settled (17)
Accretion 4
Cash Flow Revisions 129
ARO Liability, end of period 273
Gas distribution cut, purge, and cap | Consumers Energy Company  
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]  
ARO Liability, at beginning of period 282
Incurred 0
Settled (10)
Accretion 11
Cash Flow Revisions 0
ARO Liability, end of period 283
Asbestos abatement | Consumers Energy Company  
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]  
ARO Liability, at beginning of period 38
Incurred 0
Settled (1)
Accretion 1
Cash Flow Revisions 0
ARO Liability, end of period 38
Gas wells plug and abandon | Consumers Energy Company  
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]  
ARO Liability, at beginning of period 35
Incurred 0
Settled (2)
Accretion 1
Cash Flow Revisions 0
ARO Liability, end of period $ 34
v3.22.2.2
Retirement Benefits (Quarterly Narrative) (Details) - DB Pension Plans
$ in Millions
 9 Months Ended
Sep. 30, 2022
USD ($)
Defined Benefit Plan Disclosure [Line Items]  
Settlement loss $ 19
Increase (decrease) in non-current pension plan assets 69
Gain to AOCI 2
Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Increase (decrease) in non-current pension plan assets 67
Pension Costs  
Defined Benefit Plan Disclosure [Line Items]  
Settlement loss 19
Increase (decrease) in non-current pension plan assets $ (67)
Pension Costs | DB Pension Plan A Settlement  
Defined Benefit Plan Disclosure [Line Items]  
Regulatory asset collection period 8 years
Pension Costs | Consumers Energy Company  
Defined Benefit Plan Disclosure [Line Items]  
Settlement loss $ 19
Increase (decrease) in non-current pension plan assets $ (67)
v3.22.2.2
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
DB Pension Plans        
Defined Benefit Plan, Roll Forwards [Abstract]        
Service cost $ 9 $ 14 $ 32 $ 41
Interest cost 21 14 59 44
Expected return on plan assets (51) (51) (155) (155)
Amortization of        
Net loss 5 25 32 76
Prior service cost (credit) 1 1 3 3
Settlement loss 2 1 6 4
Net periodic cost (credit) (13) 4 (23) 13
DB Pension Plans | Consumers Energy Company        
Defined Benefit Plan, Roll Forwards [Abstract]        
Service cost 9 14 32 40
Interest cost 20 14 56 42
Expected return on plan assets (48) (49) (147) (147)
Amortization of        
Net loss 5 24 30 73
Prior service cost (credit) 1 1 3 3
Settlement loss 2 1 6 4
Net periodic cost (credit) (11) 5 (20) 15
OPEB Plan        
Defined Benefit Plan, Roll Forwards [Abstract]        
Service cost 4 5 13 14
Interest cost 7 6 21 17
Expected return on plan assets (29) (28) (87) (82)
Amortization of        
Net loss 0 2 1 6
Prior service cost (credit) (12) (14) (38) (40)
Settlement loss 0 0 0 0
Net periodic cost (credit) (30) (29) (90) (85)
OPEB Plan | Consumers Energy Company        
Defined Benefit Plan, Roll Forwards [Abstract]        
Service cost 4 4 13 13
Interest cost 6 6 20 17
Expected return on plan assets (26) (26) (80) (77)
Amortization of        
Net loss 0 2 0 6
Prior service cost (credit) (13) (12) (38) (38)
Settlement loss 0 0 0 0
Net periodic cost (credit) $ (29) $ (26) $ (85) $ (79)
v3.22.2.2
Income Taxes (Schedule Of Effective Income Rate Reconciliation) (Details)
 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Income Taxes [Line Items]    
U.S. federal income tax rate 21.00% 21.00%
Increase (decrease) in income taxes from:    
State and local income taxes, net of federal effect 5.60% 5.50%
TCJA excess deferred taxes (7.20%) (5.80%)
Production tax credits (5.20%) (4.80%)
Accelerated flow-through of regulatory tax benefits (4.30%) (3.20%)
Other, net 0.10% 0.10%
Effective tax rate 10.00% 12.80%
Consumers Energy Company    
Income Taxes [Line Items]    
U.S. federal income tax rate 21.00% 21.00%
Increase (decrease) in income taxes from:    
State and local income taxes, net of federal effect 5.30% 5.20%
TCJA excess deferred taxes (5.90%) (4.60%)
Production tax credits (3.80%) (3.50%)
Accelerated flow-through of regulatory tax benefits (3.50%) (2.20%)
Other, net (0.40%) (0.50%)
Effective tax rate 12.70% 15.40%
v3.22.2.2
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Income available to common stockholders        
Income from continuing operations $ 163 $ 153 $ 646 $ 614
Loss attributable to noncontrolling interests (2) (6) (16) (18)
Preferred stock dividends 2 3 7 3
Income from continuing operations available to common stockholders – basic and diluted $ 163 $ 156 $ 655 $ 629
Average common shares outstanding        
Weighted average shares - basic (in shares) 289.6 289.1 289.5 288.9
Dilutive nonvested stock awards (in shares) 0.4 0.5 0.4 0.5
Dilutive forward equity sale contracts (in shares) 0.1 0.0 0.1 0.0
Weighted average shares - diluted (in shares) 290.1 289.6 290.0 289.4
Income from continuing operations per average common share available to common stockholders        
Basic (in dollars per share) $ 0.56 $ 0.54 $ 2.26 $ 2.18
Diluted (in dollars per share) $ 0.56 $ 0.54 $ 2.26 $ 2.18
v3.22.2.2
Revenue (Disaggregation of Revenue) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers $ 1,955 $ 1,671 $ 6,115 $ 5,148
Leasing income 68 50 192 136
Financing income 4 3 13 11
Consumers alternative-revenue programs     (2) 1
Total operating revenue 2,024 1,725 6,318 5,296
Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 1,591 1,416 4,151 3,705
Financing income 3 2 8 7
Consumers alternative-revenue programs     1 1
Total operating revenue 1,594 1,419 4,160 3,713
Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 294 224 1,809 1,357
Financing income 1 1 5 4
Consumers alternative-revenue programs     (3) 0
Total operating revenue 292 225 1,811 1,361
NorthStar Clean Energy | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 70 31 155 86
Leasing income 68 50 192 136
Total operating revenue 138 81 347 222
Variable lease income 57 35 154 94
Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 1,885 1,640 5,960 5,062
Financing income 4 3 13 11
Consumers alternative-revenue programs (3) 1 (2) 1
Total operating revenue 1,886 1,644 5,971 5,074
Consumers Energy Company | Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 1,591 1,416 4,151 3,705
Financing income 3 2 8 7
Consumers alternative-revenue programs 0 1 1 1
Total operating revenue 1,594 1,419 4,160 3,713
Consumers Energy Company | Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 294 224 1,809 1,357
Financing income 1 1 5 4
Consumers alternative-revenue programs (3) 0 (3) 0
Total operating revenue 292 225 1,811 1,361
Residential | Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 957 861 3,194 2,764
Residential | Consumers Energy Company | Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 767 718 1,955 1,847
Residential | Consumers Energy Company | Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 190 143 1,239 917
Commercial | Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 566 492 1,690 1,449
Commercial | Consumers Energy Company | Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 515 456 1,319 1,191
Commercial | Consumers Energy Company | Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 51 36 371 258
Industrial | Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 236 172 654 494
Industrial | Consumers Energy Company | Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 226 167 601 458
Industrial | Consumers Energy Company | Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 10 5 53 36
Other        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 70 31 155 86
Other | NorthStar Clean Energy | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 70 31 155 86
Other | Consumers Energy Company        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 126 115 422 355
Other | Consumers Energy Company | Electric Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers 83 75 276 209
Other | Consumers Energy Company | Gas Utility | Operating Segments        
Disaggregation of Revenue [Line Items]        
Revenue recognized from contracts with customers $ 43 $ 40 $ 146 $ 146
v3.22.2.2
Revenue (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Disaggregation of Revenue [Line Items]          
Unbilled receivables $ 369   $ 369   $ 486
Consumers Energy Company          
Disaggregation of Revenue [Line Items]          
Unbilled receivables 369   369   $ 486
Accounts Receivable          
Disaggregation of Revenue [Line Items]          
Bad debt expense 13 $ 6 31 $ 17  
Accounts Receivable | Consumers Energy Company          
Disaggregation of Revenue [Line Items]          
Bad debt expense $ 13 $ 6 $ 31 $ 17  
v3.22.2.2
Cash and Cash Equivalents (Schedule Of Cash And Cash Equivalents, Including Restricted Amounts) (Details) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Sep. 30, 2021
Dec. 31, 2020
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents $ 168 $ 452    
Restricted cash and cash equivalents 27 24    
Cash and cash equivalents, including restricted amounts 195 476 $ 236 $ 185
Consumers Energy Company        
Cash and Cash Equivalents [Line Items]        
Cash and cash equivalents 83 22    
Restricted cash and cash equivalents 27 22    
Cash and cash equivalents, including restricted amounts $ 110 $ 44 $ 55 $ 35
v3.22.2.2
Reportable Segments (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Segment Reporting Information [Line Items]          
Operating Revenue $ 2,024 $ 1,725 $ 6,318 $ 5,296  
Net income (loss) available to common stockholders 163 186 659 711  
Plant, property, and equipment, gross 30,125   30,125   $ 29,893
Total assets 30,372   30,372   28,753
Consumers Energy Company          
Segment Reporting Information [Line Items]          
Operating Revenue 1,886 1,644 5,971 5,074  
Net income (loss) available to common stockholders 189 186 744 711  
Plant, property, and equipment, gross 28,978   28,978   28,771
Total assets 28,992   28,992   27,140
Other reconciling items          
Segment Reporting Information [Line Items]          
Net income (loss) available to common stockholders (29) (7) (107) (27)  
Plant, property, and equipment, gross 26   26   23
Total assets 77   77   431
Other reconciling items | Consumers Energy Company          
Segment Reporting Information [Line Items]          
Net income (loss) available to common stockholders 8 0 4 (1)  
Plant, property, and equipment, gross 25   25   23
Total assets 24   24   21
Electric Utility | Operating Segments          
Segment Reporting Information [Line Items]          
Operating Revenue 1,594 1,419 4,160 3,713  
Net income (loss) available to common stockholders 194 195 501 504  
Plant, property, and equipment, gross 17,720   17,720   18,147
Total assets 17,362   17,362   16,493
Electric Utility | Operating Segments | Consumers Energy Company          
Segment Reporting Information [Line Items]          
Operating Revenue 1,594 1,419 4,160 3,713  
Net income (loss) available to common stockholders 194 195 501 504  
Plant, property, and equipment, gross 17,720   17,720   18,147
Total assets 17,423   17,423   16,555
Gas Utility | Operating Segments          
Segment Reporting Information [Line Items]          
Operating Revenue 292 225 1,811 1,361  
Net income (loss) available to common stockholders (13) (9) 239 208  
Plant, property, and equipment, gross 11,233   11,233   10,601
Total assets 11,499   11,499   10,517
Gas Utility | Operating Segments | Consumers Energy Company          
Segment Reporting Information [Line Items]          
Operating Revenue 292 225 1,811 1,361  
Net income (loss) available to common stockholders (13) (9) 239 208  
Plant, property, and equipment, gross 11,233   11,233   10,601
Total assets 11,545   11,545   10,564
NorthStar Clean Energy | Operating Segments          
Segment Reporting Information [Line Items]          
Operating Revenue 138 81 347 222  
Net income (loss) available to common stockholders 11 $ 7 26 $ 26  
Plant, property, and equipment, gross 1,146   1,146   1,122
Total assets $ 1,434   $ 1,434   $ 1,312
v3.22.2.2
Variable Interest Entities (Narrative) (Details)
$ in Millions
 1 Months Ended 9 Months Ended
Jun. 30, 2022
USD ($)
Sep. 30, 2022
USD ($)
MW
Dec. 31, 2021
USD ($)
Variable Interest Entity [Line Items]      
Investments   $ 70 $ 71
NWO Holdco, L.L.C      
Variable Interest Entity [Line Items]      
Sale of noncontrolling interest $ 49    
Nameplate capacity (in MW) | MW   105  
Variable Interest Entity, Primary Beneficiary | Aviator Wind      
Variable Interest Entity [Line Items]      
Nameplate capacity (in MW) | MW   525  
Ownership interest   51.00%  
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership      
Variable Interest Entity [Line Items]      
Noncontrolling ownership interest   49.00%  
Variable Interest Entity, Not Primary Beneficiary      
Variable Interest Entity [Line Items]      
Investments   $ 70 $ 71
Variable Interest Entity, Not Primary Beneficiary | T.E.S. Filer City      
Variable Interest Entity [Line Items]      
Ownership interest   50.00%  
Variable Interest Entity, Not Primary Beneficiary | Grayling      
Variable Interest Entity [Line Items]      
Ownership interest   50.00%  
Variable Interest Entity, Not Primary Beneficiary | Genesee      
Variable Interest Entity [Line Items]      
Ownership interest   50.00%  
Variable Interest Entity, Not Primary Beneficiary | Craven      
Variable Interest Entity [Line Items]      
Ownership interest   50.00%  
v3.22.2.2
Variable Interest Entities (Consolidated Information of Variable Interest Entity) (Details) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Variable Interest Entity [Line Items]    
Cash and cash equivalents $ 168 $ 452
Restricted cash and cash equivalents 27 24
Accounts receivable 1,161 931
Prepayments and other current assets 103 139
Plant, property, and equipment, net 22,340 22,352
Total assets 30,372 28,753
Accounts payable 949 875
Other current liabilities 170 156
Asset retirement obligations 747 628
Other non‑current liabilities 383 375
Variable Interest Entity, Primary Beneficiary    
Variable Interest Entity [Line Items]    
Cash and cash equivalents 33 21
Restricted cash and cash equivalents 0 1
Accounts receivable 6 3
Prepayments and other current assets 3 2
Plant, property, and equipment, net 833 856
Total assets 875 883
Accounts payable 15 17
Other current liabilities 0 2
Asset retirement obligations 24 23
Other non‑current liabilities 4
Total liabilities $ 39 $ 46
v3.22.2.2
Exit Activities and Discontinued Operations - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 9 Months Ended 36 Months Ended
Oct. 01, 2021
Mar. 31, 2022
Oct. 31, 2021
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Gain from divestiture of business           $ 5 $ 0    
Discontinued Operations, Held-for-sale | EnerBank                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Proceeds from divestiture of businesses $ 1,000                
Gain from divestiture of business     $ 657 $ 0 $ (3) 5 (8)    
Gain from divestiture of business related to post-closing adjustment   $ 6              
Post-closing purchase price adjustment                 $ 36
Retention Benefits                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Cost deferred       11 $ 2 14 5    
Retention Benefits | D.E. Karn Generating Complex                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Expected cost       35   35   $ 35  
Retention and severance costs               16  
Costs incurred and capitalized           0 $ 1    
Retention Benefits | D.E. Karn Generating Complex | Retention Incentive Program                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Cost deferred               11  
Retention Benefits | D.E. Karn Generating Complex | Property, Plant and Equipment                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Costs incurred and capitalized               4  
Retention Benefits | J.H. Campbell Generating Units                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Expected cost       $ 50   50   $ 50  
Retention Benefits | J.H. Campbell Generating Units | Retention Incentive Program                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Cost deferred           10      
Severance Benefits | J.H. Campbell Generating Units                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Retention and severance costs           $ 4      
v3.22.2.2
Exit Activities and Discontinued Operations - Schedule of Retention Benefit Liability Roll Forward (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Restructuring Reserve [Roll Forward]          
Other current liabilities $ 170   $ 170   $ 156
Retention Benefits          
Restructuring Reserve [Roll Forward]          
Retention benefit liability at beginning of period     14 $ 11  
Costs deferred as a regulatory asset 11 $ 2 14 5  
Retention benefit liability at the end of the period 28 17 28 17  
Other current liabilities $ 25 $ 5 $ 25 $ 5  
v3.22.2.2
Exit Activities and Discontinued Operations - Income from Discontinued Operations (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 9 Months Ended
Oct. 31, 2021
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Gain on sale       $ 5 $ 0
Income tax expense   $ 0 $ 9 1 25
Income from discontinued operations, net of tax   0 30 4 82
Discontinued Operations, Held-for-sale | EnerBank          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Operating revenue   0 70 0 209
Operating expenses   0 17 0 60
Interest expense   0 11 0 34
Income before income taxes   0 42 0 115
Gain on sale $ 657 0 (3) 5 (8)
Income from discontinued operations before income taxes   0 39 5 107
Income tax expense   0 9 1 25
Income from discontinued operations, net of tax   $ 0 $ 30 $ 4 $ 82