Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 07, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Commission File Number | 1-9513 | |
Entity Registrant Name | CMS ENERGY CORPORATION | |
IRS Employer Identification No. | 38-2726431 | |
Entity Incorporation State | MI | |
Entity Address | One Energy Plaza | |
City | Jackson | |
State | MI | |
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 | |
Smaller reporting company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 286,280,694 | |
Entity Central Index Key | 0000811156 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Consumers Energy Company | ||
Document Information [Line Items] | ||
Commission File Number | 1-5611 | |
Entity Registrant Name | CONSUMERS ENERGY COMPANY | |
IRS Employer Identification No. | 38-0442310 | |
Entity Incorporation State | MI | |
Entity Address | One Energy Plaza | |
City | Jackson | |
State | MI | |
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 | |
Smaller reporting company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 84,108,789 | |
Entity Central Index Key | 0000201533 | |
Common Stock | ||
Document Information [Line Items] | ||
Title of each class | CMS Energy Corporation Common Stock, $0.01 par value | |
Trading Symbol | CMS | |
Security Exchange Name | NYSE | |
CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078 | ||
Document Information [Line Items] | ||
Title of each class | 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 each class | 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 each class | CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 | |
Trading Symbol | CMSD | |
Security Exchange Name | NYSE | |
Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series | ||
Document Information [Line Items] | ||
Title of each class | Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series | |
Trading Symbol | CMS-PB | |
Security Exchange Name | NYSE |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Revenue | $ 1,443 | $ 1,445 | $ 3,307 | $ 3,504 |
Operating Expenses | ||||
Fuel for electric generation | 63 | 119 | 166 | 261 |
Purchased power – related parties | 14 | 16 | 32 | 34 |
Maintenance and other operating expenses | 351 | 343 | 666 | 697 |
Depreciation and amortization | 223 | 216 | 539 | 514 |
General taxes | 75 | 71 | 189 | 177 |
Total operating expenses | 1,170 | 1,227 | 2,666 | 2,927 |
Operating Income | 273 | 218 | 641 | 577 |
Other Income (Expense) | ||||
Interest income | 1 | 2 | 2 | 3 |
Interest and dividend income – related parties | 0 | 0 | 7 | 0 |
Allowance for equity funds used during construction | 2 | 3 | 3 | 5 |
Income (loss) from equity method investees | (2) | 2 | 1 | 1 |
Nonoperating retirement benefits, net | 30 | 23 | 61 | 46 |
Other income | 2 | 2 | 2 | 3 |
Other expense | (1) | (5) | (5) | (8) |
Total other income | 32 | 27 | 71 | 50 |
Interest Charges | ||||
Interest on long-term debt | 121 | 110 | 237 | 216 |
Interest expense – related parties | 3 | 3 | 6 | 3 |
Other interest expense | 17 | 19 | 36 | 35 |
Allowance for borrowed funds used during construction | 0 | (1) | (1) | (2) |
Total interest charges | 141 | 131 | 278 | 252 |
Income Before Income Taxes | 164 | 114 | 434 | 375 |
Income Tax Expense | 27 | 20 | 54 | 68 |
Net Income | 137 | 94 | 380 | 307 |
Income Attributable to Noncontrolling Interests | 1 | 1 | 1 | 1 |
Net Income Available to Common Stockholders | $ 136 | $ 93 | $ 379 | $ 306 |
Basic earnings per average common share (in dollars per share) | $ 0.48 | $ 0.33 | $ 1.33 | $ 1.08 |
Diluted earnings per average common share (in dollars per share) | $ 0.48 | $ 0.33 | $ 1.33 | $ 1.08 |
Consumers Energy Company | ||||
Operating Revenue | $ 1,330 | $ 1,334 | $ 3,074 | $ 3,277 |
Operating Expenses | ||||
Fuel for electric generation | 43 | 88 | 122 | 194 |
Purchased and interchange power | 354 | 350 | 701 | 724 |
Purchased power – related parties | 14 | 16 | 32 | 34 |
Cost of gas sold | 80 | 104 | 350 | 505 |
Maintenance and other operating expenses | 302 | 320 | 580 | 639 |
Depreciation and amortization | 218 | 212 | 530 | 506 |
General taxes | 73 | 69 | 184 | 172 |
Total operating expenses | 1,084 | 1,159 | 2,499 | 2,774 |
Operating Income | 246 | 175 | 575 | 503 |
Other Income (Expense) | ||||
Interest income | 1 | 1 | 2 | 2 |
Interest and dividend income – related parties | 1 | 1 | 2 | 2 |
Allowance for equity funds used during construction | 2 | 3 | 3 | 5 |
Nonoperating retirement benefits, net | 28 | 22 | 57 | 43 |
Other income | 2 | 1 | 2 | 2 |
Other expense | (2) | (5) | (5) | (8) |
Total other income | 32 | 23 | 61 | 46 |
Interest Charges | ||||
Interest on long-term debt | 77 | 68 | 151 | 137 |
Interest expense – related parties | 3 | 3 | 6 | 3 |
Other interest expense | 2 | 4 | 5 | 7 |
Allowance for borrowed funds used during construction | 0 | (1) | (1) | (2) |
Total interest charges | 82 | 74 | 161 | 145 |
Income Before Income Taxes | 196 | 124 | 475 | 404 |
Income Tax Expense | 36 | 26 | 80 | 80 |
Net Income | 160 | 98 | 395 | 324 |
Preferred Stock Dividends | 1 | 1 | 1 | 1 |
Net Income Available to Common Stockholder | 159 | 97 | 394 | 323 |
Purchased and interchange power | ||||
Operating Expenses | ||||
Cost of sales | 362 | 356 | 719 | 734 |
Cost of gas sold | ||||
Operating Expenses | ||||
Cost of sales | $ 82 | $ 106 | $ 355 | $ 510 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net income | $ 137 | $ 94 | $ 380 | $ 307 |
Retirement Benefits Liability | ||||
Amortization of net actuarial loss, net of tax | 1 | 1 | 2 | 2 |
Amortization of prior service credit | (1) | 0 | (1) | (1) |
Derivatives | ||||
Unrealized loss on derivative instruments, net of tax of $-, $(1), $(1), and $(1) | 0 | (2) | (4) | (3) |
Other Comprehensive Loss | 0 | (1) | (3) | (2) |
Comprehensive Income | 137 | 93 | 377 | 305 |
Comprehensive Income Attributable to Noncontrolling Interests | 1 | 1 | 1 | 1 |
Comprehensive Income Attributable to CMS Energy | 136 | 92 | 376 | 304 |
Consumers Energy Company | ||||
Net income | 160 | 98 | 395 | 324 |
Retirement Benefits Liability | ||||
Amortization of net actuarial loss, net of tax | 0 | 1 | 0 | 1 |
Derivatives | ||||
Other Comprehensive Loss | 0 | 1 | 0 | 1 |
Comprehensive Income | $ 160 | $ 99 | $ 395 | $ 325 |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Amortization of net actuarial loss, TAX | $ 1 | $ 0 | $ 1 | $ 0 |
Amortization of prior service credit, TAX | 0 | 0 | 0 | 0 |
Unrealized loss on derivative instruments, TAX BENEFIT | 0 | (1) | (1) | (1) |
Consumers Energy Company | ||||
Amortization of net actuarial loss, TAX | $ 0 | $ 0 | $ 1 | $ 0 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flows from Operating Activities | ||
Net income | $ 380 | $ 307 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 539 | 514 |
Deferred income taxes and investment tax credits | 95 | 60 |
Pension contributions | (531) | 0 |
Other non-cash operating activities and reconciling adjustments | 20 | 9 |
Cash provided by (used in) changes in assets and liabilities | ||
Accounts and notes receivable and accrued revenue | 130 | 190 |
Inventories | 99 | 98 |
Accounts payable and accrued rate refunds | 23 | (48) |
Other current and non-current assets and liabilities | 41 | 55 |
Net cash provided by operating activities | 796 | 1,185 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under finance lease) | (946) | (973) |
Increase in EnerBank notes receivable | (148) | (170) |
Purchase of notes receivable by EnerBank | (15) | (220) |
Cost to retire property and other investing activities | (59) | (47) |
Net cash used in investing activities | (1,168) | (1,410) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of debt | 2,353 | 1,455 |
Retirement of debt | (392) | (1,104) |
Increase in EnerBank certificates of deposit | 132 | 371 |
Decrease in notes payable | (90) | (97) |
Issuance of common stock, net of issuance costs | 104 | 6 |
Payment of dividends on common and preferred stock | (234) | (218) |
Other financing costs | (54) | (29) |
Net cash provided by financing activities | 1,819 | 384 |
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts | 1,447 | 159 |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 157 | 175 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 1,604 | 334 |
Non-cash transactions | ||
Capital expenditures not paid | 167 | 150 |
Consumers Energy Company | ||
Cash Flows from Operating Activities | ||
Net income | 395 | 324 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 530 | 506 |
Deferred income taxes and investment tax credits | 67 | 41 |
Pension contributions | (518) | 0 |
Other non-cash operating activities and reconciling adjustments | (4) | 4 |
Cash provided by (used in) changes in assets and liabilities | ||
Accounts and notes receivable and accrued revenue | 158 | 187 |
Inventories | 99 | 96 |
Accounts payable and accrued rate refunds | 18 | (41) |
Other current and non-current assets and liabilities | 36 | (7) |
Net cash provided by operating activities | 781 | 1,110 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under finance lease) | (936) | (963) |
Cost to retire property and other investing activities | (57) | (63) |
Net cash used in investing activities | (993) | (1,026) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of debt | 1,528 | 297 |
Retirement of debt | (363) | (528) |
Decrease in notes payable | (90) | (97) |
Stockholder contribution | 650 | 675 |
Payment of dividends on common and preferred stock | (277) | (273) |
Other financing costs | (35) | (2) |
Net cash provided by financing activities | 1,413 | 72 |
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts | 1,201 | 156 |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 28 | 56 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 1,229 | 212 |
Non-cash transactions | ||
Capital expenditures not paid | $ 157 | $ 138 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 1,587 | $ 140 |
Restricted cash and cash equivalents | 17 | 17 |
Accounts receivable and accrued revenue, less allowance of $33 in 2020 and $20 in 2019 | 737 | 886 |
Notes receivable, less allowance of $35 in 2020 and $33 in 2019 | 264 | 242 |
Accounts and notes receivable – related parties | 20 | 17 |
Inventories at average cost | ||
Gas in underground storage | 285 | 399 |
Materials and supplies | 150 | 140 |
Generating plant fuel stock | 71 | 66 |
Deferred property taxes | 223 | 305 |
Regulatory assets | 16 | 33 |
Prepayments and other current assets | 162 | 86 |
Total current assets | 3,532 | 2,331 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 25,911 | 25,390 |
Less accumulated depreciation and amortization | 7,697 | 7,360 |
Plant, property, and equipment, net | 18,214 | 18,030 |
Construction work in progress | 1,222 | 896 |
Total plant, property, and equipment | 19,436 | 18,926 |
Other Non-current Assets | ||
Regulatory assets | 2,485 | 2,489 |
Accounts and notes receivable, less allowance | 2,353 | 2,281 |
Investments | 68 | 71 |
Other | 707 | 739 |
Total other non-current assets | 5,613 | 5,580 |
Total Assets | 28,581 | 26,837 |
Current Liabilities | ||
Current portion of long-term debt, finance leases, and other financing | 1,744 | 1,130 |
Notes payable | 0 | 90 |
Accounts payable | 629 | 622 |
Accounts payable – related parties | 6 | 13 |
Accrued rate refunds | 44 | 35 |
Accrued interest | 109 | 104 |
Accrued taxes | 326 | 437 |
Regulatory liabilities | 84 | 87 |
Other current liabilities | 181 | 186 |
Total current liabilities | 3,123 | 2,704 |
Non-current Liabilities | ||
Long-term debt | 13,414 | 11,951 |
Non-current portion of finance leases and other financing | 67 | 76 |
Regulatory liabilities | 3,809 | 3,742 |
Postretirement benefits | 140 | 674 |
Asset retirement obligations | 483 | 477 |
Deferred investment tax credit | 118 | 120 |
Deferred income taxes | 1,763 | 1,655 |
Other non-current liabilities | 413 | 383 |
Total non-current liabilities | 20,207 | 19,078 |
Commitments and contingencies | ||
Common stockholders’ equity | ||
Common stock | 3 | 3 |
Other paid-in capital | 5,217 | 5,113 |
Accumulated other comprehensive loss | (76) | (73) |
Retained earnings (accumulated deficit) | 70 | (25) |
Total common stockholders’ equity | 5,214 | 5,018 |
Noncontrolling interests | 37 | 37 |
Total equity | 5,251 | 5,055 |
Total Liabilities and Equity | 28,581 | 26,837 |
Consumers Energy Company | ||
Current Assets | ||
Cash and cash equivalents | 1,215 | 11 |
Restricted cash and cash equivalents | 14 | 17 |
Accounts receivable and accrued revenue, less allowance of $33 in 2020 and $20 in 2019 | 653 | 827 |
Accounts and notes receivable – related parties | 8 | 9 |
Inventories at average cost | ||
Gas in underground storage | 285 | 399 |
Materials and supplies | 145 | 135 |
Generating plant fuel stock | 68 | 63 |
Deferred property taxes | 223 | 305 |
Regulatory assets | 16 | 33 |
Prepayments and other current assets | 143 | 73 |
Total current assets | 2,770 | 1,872 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 25,468 | 24,963 |
Less accumulated depreciation and amortization | 7,600 | 7,272 |
Plant, property, and equipment, net | 17,868 | 17,691 |
Construction work in progress | 1,211 | 879 |
Total plant, property, and equipment | 19,079 | 18,570 |
Other Non-current Assets | ||
Regulatory assets | 2,485 | 2,489 |
Accounts and notes receivable, less allowance | 26 | 29 |
Accounts and notes receivable – related parties | 101 | 102 |
Other | 599 | 637 |
Total other non-current assets | 3,211 | 3,257 |
Total Assets | 25,060 | 23,699 |
Current Liabilities | ||
Current portion of long-term debt, finance leases, and other financing | 556 | 221 |
Notes payable | 0 | 90 |
Accounts payable | 595 | 593 |
Accounts payable – related parties | 13 | 20 |
Accrued rate refunds | 44 | 35 |
Accrued interest | 70 | 67 |
Accrued taxes | 341 | 481 |
Regulatory liabilities | 84 | 87 |
Other current liabilities | 117 | 118 |
Total current liabilities | 1,820 | 1,712 |
Non-current Liabilities | ||
Long-term debt | 7,867 | 7,048 |
Non-current portion of finance leases and other financing | 67 | 76 |
Regulatory liabilities | 3,809 | 3,742 |
Postretirement benefits | 102 | 622 |
Asset retirement obligations | 480 | 474 |
Deferred investment tax credit | 118 | 120 |
Deferred income taxes | 1,958 | 1,864 |
Other non-current liabilities | 334 | 304 |
Total non-current liabilities | 14,735 | 14,250 |
Commitments and contingencies | ||
Common stockholders’ equity | ||
Common stock | 841 | 841 |
Other paid-in capital | 6,024 | 5,374 |
Accumulated other comprehensive loss | (28) | (28) |
Retained earnings (accumulated deficit) | 1,631 | 1,513 |
Total common stockholders’ equity | 8,468 | 7,700 |
Cumulative preferred stock, $4.50 series | 37 | 37 |
Total equity | 8,505 | 7,737 |
Total Liabilities and Equity | $ 25,060 | $ 23,699 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts receivable and accrued revenue ALLOWANCE | $ 33 | $ 20 |
Notes receivable – current ALLOWANCE | 35 | 33 |
Accounts and notes receivable – non-current ALLOWANCE | $ 69 | $ 0 |
Common stock, authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock, outstanding (in shares) | 286,300,000 | 283,900,000 |
Consumers Energy Company | ||
Accounts receivable and accrued revenue ALLOWANCE | $ 33 | $ 20 |
Common stock, authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, outstanding (in shares) | 84,100,000 | 84,100,000 |
Preferred stock, par value (in dollars per share) | $ 4.50 | $ 4.50 |
Consolidated Statements of Chan
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 (Accumulated Deficit) | Noncontrolling Interests | Consumers Energy Company | Consumers Energy CompanyCommon Stock | Consumers Energy CompanyOther Paid-in Capital | Consumers Energy CompanyAccumulated Other Comprehensive Loss | Consumers Energy CompanyRetirement benefits liability | Consumers Energy CompanyRetained Earnings (Accumulated Deficit) | Consumers Energy CompanyPreferred Stock | Cumulative effect of change in accounting principleRetained Earnings (Accumulated Deficit) |
Total Equity at Beginning of Period at Dec. 31, 2018 | $ 4,792 | $ 3 | $ 5,088 | $ (65) | $ (63) | $ (2) | $ (271) | $ 37 | $ 6,920 | $ 841 | $ 4,699 | $ (21) | $ (21) | $ 1,364 | $ 37 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common stock issued | 17 | |||||||||||||||
Common stock repurchased | (8) | |||||||||||||||
Stockholder contribution | 675 | |||||||||||||||
Amortization of net actuarial loss | 2 | 2 | 1 | 1 | ||||||||||||
Amortization of prior service credit | (1) | (1) | ||||||||||||||
Unrealized loss on derivative instruments | (3) | (3) | ||||||||||||||
Net income | 307 | 306 | 1 | 324 | 324 | |||||||||||
Dividends declared on common stock | (217) | (272) | ||||||||||||||
Dividends declared on preferred stock | (1) | |||||||||||||||
Distributions and other changes in noncontrolling interests | (1) | |||||||||||||||
Total Equity at End of Period at Jun. 30, 2019 | $ 4,888 | 3 | 5,097 | (67) | (62) | (5) | (182) | 37 | 7,647 | 841 | 5,374 | (20) | (20) | 1,415 | 37 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.7650 | |||||||||||||||
Total Equity at Beginning of Period at Mar. 31, 2019 | $ 4,895 | 3 | 5,087 | (66) | (63) | (3) | (166) | 37 | 7,324 | 841 | 5,049 | (21) | (21) | 1,418 | 37 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common stock issued | 10 | |||||||||||||||
Common stock repurchased | 0 | |||||||||||||||
Stockholder contribution | 325 | |||||||||||||||
Amortization of net actuarial loss | 1 | 1 | 1 | 1 | ||||||||||||
Amortization of prior service credit | 0 | 0 | ||||||||||||||
Unrealized loss on derivative instruments | (2) | (2) | ||||||||||||||
Net income | 94 | 93 | 1 | 98 | 98 | |||||||||||
Dividends declared on common stock | (109) | (100) | ||||||||||||||
Dividends declared on preferred stock | (1) | |||||||||||||||
Distributions and other changes in noncontrolling interests | (1) | |||||||||||||||
Total Equity at End of Period at Jun. 30, 2019 | $ 4,888 | 3 | 5,097 | (67) | (62) | (5) | (182) | 37 | 7,647 | 841 | 5,374 | (20) | (20) | 1,415 | 37 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.3825 | |||||||||||||||
Total Equity at Beginning of Period at Dec. 31, 2019 | $ 5,055 | 3 | 5,113 | (73) | (69) | (4) | (25) | 37 | 7,737 | 841 | 5,374 | (28) | (28) | 1,513 | 37 | (51) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common stock issued | 117 | |||||||||||||||
Common stock repurchased | (13) | |||||||||||||||
Stockholder contribution | 650 | |||||||||||||||
Amortization of net actuarial loss | 2 | 2 | 0 | 0 | ||||||||||||
Amortization of prior service credit | (1) | (1) | ||||||||||||||
Unrealized loss on derivative instruments | (4) | (4) | ||||||||||||||
Net income | 380 | 379 | 1 | 395 | 395 | |||||||||||
Dividends declared on common stock | (233) | (276) | ||||||||||||||
Dividends declared on preferred stock | (1) | |||||||||||||||
Distributions and other changes in noncontrolling interests | (1) | |||||||||||||||
Total Equity at End of Period at Jun. 30, 2020 | $ 5,251 | 3 | 5,217 | (76) | (68) | (8) | 70 | 37 | 8,505 | 841 | 6,024 | (28) | (28) | 1,631 | 37 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.8150 | |||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||||||||
Total Equity at Beginning of Period at Mar. 31, 2020 | $ 5,222 | 3 | 5,207 | (76) | (68) | (8) | 51 | 37 | 8,103 | 841 | 5,724 | (28) | (28) | 1,529 | 37 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common stock issued | 11 | |||||||||||||||
Common stock repurchased | (1) | |||||||||||||||
Stockholder contribution | 300 | |||||||||||||||
Amortization of net actuarial loss | 1 | 1 | 0 | 0 | ||||||||||||
Amortization of prior service credit | (1) | (1) | ||||||||||||||
Unrealized loss on derivative instruments | 0 | 0 | ||||||||||||||
Net income | 137 | 136 | 1 | 160 | 160 | |||||||||||
Dividends declared on common stock | (117) | (57) | ||||||||||||||
Dividends declared on preferred stock | (1) | |||||||||||||||
Distributions and other changes in noncontrolling interests | (1) | |||||||||||||||
Total Equity at End of Period at Jun. 30, 2020 | $ 5,251 | $ 3 | $ 5,217 | $ (76) | $ (68) | $ (8) | $ 70 | $ 37 | $ 8,505 | $ 841 | $ 6,024 | $ (28) | $ (28) | $ 1,631 | $ 37 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.4075 |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Standards | New Accounting Standards Implementation of New Accounting Standards ASU 2016‑13, Measurement of Credit Losses on Financial Instruments: This standard, which was effective on January 1, 2020 for CMS Energy and Consumers, provides new guidance for measuring and recognizing credit losses on financial instruments. The standard applies to financial assets that are not measured at fair value through net income as well as to certain off‑balance-sheet credit exposures. CMS Energy and Consumers were required to apply the standard using a modified retrospective approach, under which the initial impacts of the standard are recorded through a cumulative‑effect adjustment to beginning retained earnings on the effective date. The standard required an increase to the allowance for loan losses at EnerBank. Prior to the standard, the allowance reflected expected credit losses over a 12‑month period, but the new guidance requires the allowance to reflect expected credit losses over the entire life of the loans. As a result, CMS Energy recorded a $65 million increase to its expected credit loss reserves on January 1, 2020, with the offsetting adjustment recorded to retained earnings, net of taxes of $14 million . The standard also requires an increase in the initial provision for loan losses recognized in net income for new loans originated in 2020 and beyond. The adoption of this standard resulted in a $9 million reduction to CMS Energy’s income before income taxes for the six months ended June 30, 2020 . For further information on EnerBank’s loans and the related allowance for loan losses, see Note 7, Notes Receivable . At Consumers, the standard applies to the allowance for uncollectible accounts, but did not result in any significant changes to the allowance methodology and did not have a material impact on Consumers’ consolidated financial statements . ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting: This standard, which was effective as of March 12, 2020 for CMS Energy and Consumers, provides optional guidance intended to ease the potential burden in accounting for the expected discontinuation of LIBOR as a reference rate in the financial markets. The guidance can be applied to modifications made to certain contracts to replace LIBOR with a new reference rate. The guidance, if elected, will permit entities to treat such modifications as the continuation of the original contract, without any required accounting reassessments or remeasurements. The guidance will also facilitate the continuation of hedge accounting for derivatives that may have to be modified to incorporate a new rate. The guidance is effective through December 31, 2022. CMS Energy and Consumers presently have various contracts that reference LIBOR and they are assessing how this standard may be applied to specific contract modifications. |
Consumers Energy Company | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Standards | New Accounting Standards Implementation of New Accounting Standards ASU 2016‑13, Measurement of Credit Losses on Financial Instruments: This standard, which was effective on January 1, 2020 for CMS Energy and Consumers, provides new guidance for measuring and recognizing credit losses on financial instruments. The standard applies to financial assets that are not measured at fair value through net income as well as to certain off‑balance-sheet credit exposures. CMS Energy and Consumers were required to apply the standard using a modified retrospective approach, under which the initial impacts of the standard are recorded through a cumulative‑effect adjustment to beginning retained earnings on the effective date. The standard required an increase to the allowance for loan losses at EnerBank. Prior to the standard, the allowance reflected expected credit losses over a 12‑month period, but the new guidance requires the allowance to reflect expected credit losses over the entire life of the loans. As a result, CMS Energy recorded a $65 million increase to its expected credit loss reserves on January 1, 2020, with the offsetting adjustment recorded to retained earnings, net of taxes of $14 million . The standard also requires an increase in the initial provision for loan losses recognized in net income for new loans originated in 2020 and beyond. The adoption of this standard resulted in a $9 million reduction to CMS Energy’s income before income taxes for the six months ended June 30, 2020 . For further information on EnerBank’s loans and the related allowance for loan losses, see Note 7, Notes Receivable . At Consumers, the standard applies to the allowance for uncollectible accounts, but did not result in any significant changes to the allowance methodology and did not have a material impact on Consumers’ consolidated financial statements . ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting: This standard, which was effective as of March 12, 2020 for CMS Energy and Consumers, provides optional guidance intended to ease the potential burden in accounting for the expected discontinuation of LIBOR as a reference rate in the financial markets. The guidance can be applied to modifications made to certain contracts to replace LIBOR with a new reference rate. The guidance, if elected, will permit entities to treat such modifications as the continuation of the original contract, without any required accounting reassessments or remeasurements. The guidance will also facilitate the continuation of hedge accounting for derivatives that may have to be modified to incorporate a new rate. The guidance is effective through December 31, 2022. CMS Energy and Consumers presently have various contracts that reference LIBOR and they are assessing how this standard may be applied to specific contract modifications. |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2020 | |
Public Utilities, General Disclosures [Line Items] | |
Regulatory Matters | Regulatory Matters Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. There are multiple appeals pending that involve various issues concerning cost recovery from customers, the adequacy of the record of evidence supporting the recovery of Smart Energy investments, and other matters. Consumers is unable to predict the outcome of these appeals. COVID‑19 Costs Accounting Deferral: In April 2020, the MPSC issued an order authorizing Consumers to defer uncollectible accounts expense incurred beginning March 24, 2020 that are in excess of the amount used to set existing rates. At June 30, 2020 , Consumers recorded $9 million of incremental uncollectible accounts expense as a non‑current regulatory asset. The order also requested that interested parties submit comments by the end of April 2020 regarding utility accounting for COVID‑19-related expenses and COVID‑19-related impacts to regulatory activities. In July 2020, the MPSC issued an order denying deferred accounting treatment for any additional cost categories beyond uncollectible accounts expense. Voluntary Transmission Asset Sale Gain Share: In September 2019, Consumers completed a sale of a portion of its electric utility’s substation transmission equipment to METC. In December 2019, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with customers; this application was approved by the MPSC in April 2020. As a result, Consumers deferred $17 million of the gain as a regulatory liability in 2019 and will share that gain with customers through an offset to additional spending in 2020 or through a bill credit to customers in 2021. During June 2020, Consumers recognized a portion of the deferred gain as an offset to storm costs that exceeded those currently recovered through rates. At June 30, 2020 , Consumers had a remaining current regulatory liability of $15 million . Energy Waste Reduction Plan Incentive: Consumers filed its 2019 waste reduction reconciliation in June 2020, requesting the MPSC’s approval to collect from customers the maximum performance incentive of $34 million for exceeding its statutory savings targets in 2019. Consumers recognized incentive revenue under this program of $34 million in 2019. |
Consumers Energy Company | |
Public Utilities, General Disclosures [Line Items] | |
Regulatory Matters | Regulatory Matters Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. There are multiple appeals pending that involve various issues concerning cost recovery from customers, the adequacy of the record of evidence supporting the recovery of Smart Energy investments, and other matters. Consumers is unable to predict the outcome of these appeals. COVID‑19 Costs Accounting Deferral: In April 2020, the MPSC issued an order authorizing Consumers to defer uncollectible accounts expense incurred beginning March 24, 2020 that are in excess of the amount used to set existing rates. At June 30, 2020 , Consumers recorded $9 million of incremental uncollectible accounts expense as a non‑current regulatory asset. The order also requested that interested parties submit comments by the end of April 2020 regarding utility accounting for COVID‑19-related expenses and COVID‑19-related impacts to regulatory activities. In July 2020, the MPSC issued an order denying deferred accounting treatment for any additional cost categories beyond uncollectible accounts expense. Voluntary Transmission Asset Sale Gain Share: In September 2019, Consumers completed a sale of a portion of its electric utility’s substation transmission equipment to METC. In December 2019, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with customers; this application was approved by the MPSC in April 2020. As a result, Consumers deferred $17 million of the gain as a regulatory liability in 2019 and will share that gain with customers through an offset to additional spending in 2020 or through a bill credit to customers in 2021. During June 2020, Consumers recognized a portion of the deferred gain as an offset to storm costs that exceeded those currently recovered through rates. At June 30, 2020 , Consumers had a remaining current regulatory liability of $15 million . Energy Waste Reduction Plan Incentive: Consumers filed its 2019 waste reduction reconciliation in June 2020, requesting the MPSC’s approval to collect from customers the maximum performance incentive of $34 million for exceeding its statutory savings targets in 2019. Consumers recognized incentive revenue under this program of $34 million in 2019. |
Contingencies and Commitments
Contingencies and Commitments | 6 Months Ended |
Jun. 30, 2020 | |
Site Contingency [Line Items] | |
Contingencies and Commitments | Contingencies and Commitments CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. CMS Energy Contingencies Gas Index Price Reporting Litigation : CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, were named as defendants in four class action lawsuits and one individual lawsuit arising as a result of alleged inaccurate natural gas price reporting to publications that report trade information. Allegations include price‑fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices in Kansas, Missouri, and Wisconsin. In 2016, CMS Energy entities reached a settlement with the plaintiffs in the Kansas and Missouri class action cases for an amount that was not material to CMS Energy. In 2017, the federal district court approved the settlement. Plaintiffs are making claims for treble damages, full consideration damages, exemplary damages, costs, interest, and/or attorneys’ fees. After removal to federal court, all of the cases were transferred to a single federal district court pursuant to the multidistrict litigation process. In 2010 and 2011, all claims against CMS Energy defendants were dismissed by the district court based on FERC preemption. In 2013, the U.S. Court of Appeals for the Ninth Circuit reversed the district court decision. The appellate court found that FERC preemption does not apply under the facts of these cases. The appellate court affirmed the district court’s denial of leave to amend to add federal antitrust claims. The matter was appealed to the U.S. Supreme Court, which in 2015 upheld the Ninth Circuit’s decision. The cases were remanded back to the federal district court. In 2016, the federal district court granted the defendants’ motion for summary judgment in the individual lawsuit filed in Kansas based on a release in a prior settlement involving similar allegations; the order of summary judgment was subsequently appealed. In 2018, the U.S. Court of Appeals for the Ninth Circuit reversed the lower court’s ruling and remanded the case back to the federal district court. In 2017, the federal district court denied plaintiffs’ motion for class certification in the two pending class action cases in Wisconsin. The plaintiffs appealed that decision to the U.S. Court of Appeals for the Ninth Circuit and in 2018, the Ninth Circuit Court of Appeals reversed and remanded the matter back to the federal district court for further consideration. In January 2019, the judge in the multidistrict litigation granted motions filed by plaintiffs for Suggestion of Remand of the actions back to the respective transferor courts in Wisconsin and Kansas for further handling. In the Kansas action, the Judicial Panel on Multidistrict Litigation ordered the remand and the case has been transferred. In the Wisconsin actions, oppositions to the remand were filed, but the Judicial Panel on Multidistrict Litigation granted the remand in June 2019. In 2019, CMS Energy and the plaintiffs in each of the Kansas and the Wisconsin actions engaged in settlement discussions and CMS Energy recorded a $30 million liability at December 31, 2019 as the probable estimate to settle the two cases. The parties executed a settlement agreement in the Kansas case in February 2020, and that case is now complete. The parties executed a settlement agreement in the Wisconsin case, and a motion for preliminary approval was filed with the Federal District Court in March 2020. In April 2020, the Wisconsin court issued a preliminary approval order. A fairness hearing will occur in August 2020. CMS Energy can give no assurances that the Wisconsin court will approve the settlement. If settlement is not approved and the outcome after appeals is unfavorable to CMS Energy, the remaining Wisconsin case could negatively affect CMS Energy’s liquidity, financial condition, and results of operations. 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 is valid through September 2020. CMS Land submitted a renewal request for the permit in April 2020. At June 30, 2020 , CMS Energy had a recorded liability of $45 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $56 million . CMS Energy expects to pay the following amounts for long‑term leachate disposal and operating and maintenance costs during the remainder of 2020 and in each of the next five years: In Millions 2020 2021 2022 2023 2024 2025 CMS Energy Long‑term leachate disposal and operating and maintenance costs $ 3 $ 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. Equatorial Guinea Tax Claim : In 2002, CMS Energy sold its oil, gas, and methanol investments in Equatorial Guinea. The government of Equatorial Guinea claims that, in connection with the sale, CMS Energy owes $152 million in taxes, plus substantial penalties and interest that could be up to or exceed the amount of the taxes claimed. In 2015, the matter was proceeding to formal arbitration; however, since then, the government of Equatorial Guinea has stopped communicating. CMS Energy has concluded that the government’s tax claim is without merit and will continue to contest the claim, but cannot predict the financial impact or outcome of the matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s liquidity, financial condition, and results of operations. Consumers Electric Utility Contingencies Electric Environmental Matters : Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under the 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 $3 million and $4 million . At June 30, 2020 , Consumers had a recorded liability of $3 million , the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount. Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB‑containing materials at portions of the site. In 2011, Consumers received a follow‑up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river. Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $3 million and $8 million . Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At June 30, 2020 , Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount. The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability. Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at the Ludington pumped-storage plant. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome. MCV PPA : In 2017, the MCV Partnership initiated arbitration against Consumers, asserting a breach of contract associated with the MCV PPA. Under this PPA, Consumers pays the MCV Partnership a fixed energy charge based on Consumers’ annual average baseload coal generating plant operating and maintenance cost, fuel inventory, and administrative and general expenses. The MCV Partnership asserts that, under the Clean Air Act, Consumers should have installed pollution control equipment on coal‑fueled electric generating units years before they were retired. The MCV Partnership also asserts that Consumers should have installed pollution control equipment earlier on its remaining coal‑fueled electric generating units. Additionally, the MCV Partnership claims that Consumers improperly characterized certain costs included in the calculation of the fixed energy charge. In January 2019, an arbitration panel issued an order concluding that the MCV Partnership is not entitled to any damages associated with its claim against Consumers related to the Clean Air Act; the majority of the MCV Partnership’s claim, which estimated damages and interest in excess of $270 million , was related to this dismissed claim. In April 2020, the MCV Partnership and Consumers signed a term sheet outlining a settlement in principle of all outstanding disputes between the parties. The settlement and associated agreements will require MPSC approval. Once those are approved, the parties will dismiss this matter with prejudice. If settlement is not approved, the arbitration panel will issue an order. Consumers believes that the MCV Partnership’s claims are without merit, but cannot predict the financial impact or outcome of the matter. Underwater Cables in Straits of Mackinac : Consumers owns certain underwater electric cables in the Straits of Mackinac, which were de‑energized and retired in 1990. Consumers was notified that some of these cables were damaged as a result of vessel activity in 2018. Following the notification, Consumers located, inspected, sampled, capped, and returned the damaged retired cables to their original location on the lake bottom, and did not find any substantive evidence of environmental contamination. After collaborating with the State of Michigan, local Native American tribes, and other stakeholders, Consumers submitted a permit application and removal work plan with EGLE and the U.S. Army Corps of Engineers in December 2019 for partial removal of all Consumers-owned cables. In March 2020, EGLE issued a permit for the removal work and, as a result, Consumers recorded an ARO liability of $5 million for the cost to remove partially its cables. Removal work is expected to be complete in August 2020. Consumers recovers the cost of recorded AROs through MPSC-approved depreciation rates. Consumers Gas Utility Contingencies Gas Environmental Matters : Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. At June 30, 2020 , 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 2020 and in each of the next five years: In Millions 2020 2021 2022 2023 2024 2025 Consumers Remediation and other response activity costs $ 7 $ 8 $ 20 $ 11 $ 2 $ 2 Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability. Pursuant to orders issued by the MPSC, Consumers defers its MGP‑related remediation costs and recovers them from its customers over a ten ‑year period. At June 30, 2020 , Consumers had a regulatory asset of $126 million related to the MGP sites. Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million . At June 30, 2020 , Consumers had a recorded liability of less than $1 million , the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount. Ray Compressor Station : On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity. As a result of the fire and the resulting curtailment, Consumers could be subject to disallowances of gas purchased and costs associated with the repairs to the Ray Compressor Station. Consumers’ incremental cost of gas purchased during the incident was $7 million . Additionally, at June 30, 2020 , Consumers had incurred capital expenditures of $12 million to restore the compressor station. In May 2020, the MPSC approved an administrative settlement agreement between Consumers and the MPSC Staff, which resulted in a $10,000 civil penalty in connection with the fire. Consumers may also be subject to various claims from impacted customers and claims for damages. At this time, Consumers cannot predict the outcome of these matters or other gas-related incidents and a reasonable estimate of a total loss cannot be made, but they could have a material adverse effect on Consumers’ results of operations, financial condition, or liquidity, and could subject Consumers’ gas utility to increased regulatory scrutiny. Guarantees Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2020 : In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from stock and asset sale agreements¹ various indefinite $ 153 $ 2 Guarantee² July 2011 indefinite 30 — Consumers Guarantee² July 2011 indefinite $ 30 $ — 1 These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. 2 This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. The carrying value of these indemnity obligations is $1 million . CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote. Other Contingencies In addition to the matters disclosed in this Note and Note 2, Regulatory Matters , t here 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 | |
Site Contingency [Line Items] | |
Contingencies and Commitments | Contingencies and Commitments CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. CMS Energy Contingencies Gas Index Price Reporting Litigation : CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, were named as defendants in four class action lawsuits and one individual lawsuit arising as a result of alleged inaccurate natural gas price reporting to publications that report trade information. Allegations include price‑fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices in Kansas, Missouri, and Wisconsin. In 2016, CMS Energy entities reached a settlement with the plaintiffs in the Kansas and Missouri class action cases for an amount that was not material to CMS Energy. In 2017, the federal district court approved the settlement. Plaintiffs are making claims for treble damages, full consideration damages, exemplary damages, costs, interest, and/or attorneys’ fees. After removal to federal court, all of the cases were transferred to a single federal district court pursuant to the multidistrict litigation process. In 2010 and 2011, all claims against CMS Energy defendants were dismissed by the district court based on FERC preemption. In 2013, the U.S. Court of Appeals for the Ninth Circuit reversed the district court decision. The appellate court found that FERC preemption does not apply under the facts of these cases. The appellate court affirmed the district court’s denial of leave to amend to add federal antitrust claims. The matter was appealed to the U.S. Supreme Court, which in 2015 upheld the Ninth Circuit’s decision. The cases were remanded back to the federal district court. In 2016, the federal district court granted the defendants’ motion for summary judgment in the individual lawsuit filed in Kansas based on a release in a prior settlement involving similar allegations; the order of summary judgment was subsequently appealed. In 2018, the U.S. Court of Appeals for the Ninth Circuit reversed the lower court’s ruling and remanded the case back to the federal district court. In 2017, the federal district court denied plaintiffs’ motion for class certification in the two pending class action cases in Wisconsin. The plaintiffs appealed that decision to the U.S. Court of Appeals for the Ninth Circuit and in 2018, the Ninth Circuit Court of Appeals reversed and remanded the matter back to the federal district court for further consideration. In January 2019, the judge in the multidistrict litigation granted motions filed by plaintiffs for Suggestion of Remand of the actions back to the respective transferor courts in Wisconsin and Kansas for further handling. In the Kansas action, the Judicial Panel on Multidistrict Litigation ordered the remand and the case has been transferred. In the Wisconsin actions, oppositions to the remand were filed, but the Judicial Panel on Multidistrict Litigation granted the remand in June 2019. In 2019, CMS Energy and the plaintiffs in each of the Kansas and the Wisconsin actions engaged in settlement discussions and CMS Energy recorded a $30 million liability at December 31, 2019 as the probable estimate to settle the two cases. The parties executed a settlement agreement in the Kansas case in February 2020, and that case is now complete. The parties executed a settlement agreement in the Wisconsin case, and a motion for preliminary approval was filed with the Federal District Court in March 2020. In April 2020, the Wisconsin court issued a preliminary approval order. A fairness hearing will occur in August 2020. CMS Energy can give no assurances that the Wisconsin court will approve the settlement. If settlement is not approved and the outcome after appeals is unfavorable to CMS Energy, the remaining Wisconsin case could negatively affect CMS Energy’s liquidity, financial condition, and results of operations. 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 is valid through September 2020. CMS Land submitted a renewal request for the permit in April 2020. At June 30, 2020 , CMS Energy had a recorded liability of $45 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $56 million . CMS Energy expects to pay the following amounts for long‑term leachate disposal and operating and maintenance costs during the remainder of 2020 and in each of the next five years: In Millions 2020 2021 2022 2023 2024 2025 CMS Energy Long‑term leachate disposal and operating and maintenance costs $ 3 $ 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. Equatorial Guinea Tax Claim : In 2002, CMS Energy sold its oil, gas, and methanol investments in Equatorial Guinea. The government of Equatorial Guinea claims that, in connection with the sale, CMS Energy owes $152 million in taxes, plus substantial penalties and interest that could be up to or exceed the amount of the taxes claimed. In 2015, the matter was proceeding to formal arbitration; however, since then, the government of Equatorial Guinea has stopped communicating. CMS Energy has concluded that the government’s tax claim is without merit and will continue to contest the claim, but cannot predict the financial impact or outcome of the matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s liquidity, financial condition, and results of operations. Consumers Electric Utility Contingencies Electric Environmental Matters : Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under the 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 $3 million and $4 million . At June 30, 2020 , Consumers had a recorded liability of $3 million , the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount. Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB‑containing materials at portions of the site. In 2011, Consumers received a follow‑up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river. Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $3 million and $8 million . Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At June 30, 2020 , Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount. The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability. Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at the Ludington pumped-storage plant. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome. MCV PPA : In 2017, the MCV Partnership initiated arbitration against Consumers, asserting a breach of contract associated with the MCV PPA. Under this PPA, Consumers pays the MCV Partnership a fixed energy charge based on Consumers’ annual average baseload coal generating plant operating and maintenance cost, fuel inventory, and administrative and general expenses. The MCV Partnership asserts that, under the Clean Air Act, Consumers should have installed pollution control equipment on coal‑fueled electric generating units years before they were retired. The MCV Partnership also asserts that Consumers should have installed pollution control equipment earlier on its remaining coal‑fueled electric generating units. Additionally, the MCV Partnership claims that Consumers improperly characterized certain costs included in the calculation of the fixed energy charge. In January 2019, an arbitration panel issued an order concluding that the MCV Partnership is not entitled to any damages associated with its claim against Consumers related to the Clean Air Act; the majority of the MCV Partnership’s claim, which estimated damages and interest in excess of $270 million , was related to this dismissed claim. In April 2020, the MCV Partnership and Consumers signed a term sheet outlining a settlement in principle of all outstanding disputes between the parties. The settlement and associated agreements will require MPSC approval. Once those are approved, the parties will dismiss this matter with prejudice. If settlement is not approved, the arbitration panel will issue an order. Consumers believes that the MCV Partnership’s claims are without merit, but cannot predict the financial impact or outcome of the matter. Underwater Cables in Straits of Mackinac : Consumers owns certain underwater electric cables in the Straits of Mackinac, which were de‑energized and retired in 1990. Consumers was notified that some of these cables were damaged as a result of vessel activity in 2018. Following the notification, Consumers located, inspected, sampled, capped, and returned the damaged retired cables to their original location on the lake bottom, and did not find any substantive evidence of environmental contamination. After collaborating with the State of Michigan, local Native American tribes, and other stakeholders, Consumers submitted a permit application and removal work plan with EGLE and the U.S. Army Corps of Engineers in December 2019 for partial removal of all Consumers-owned cables. In March 2020, EGLE issued a permit for the removal work and, as a result, Consumers recorded an ARO liability of $5 million for the cost to remove partially its cables. Removal work is expected to be complete in August 2020. Consumers recovers the cost of recorded AROs through MPSC-approved depreciation rates. Consumers Gas Utility Contingencies Gas Environmental Matters : Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. At June 30, 2020 , 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 2020 and in each of the next five years: In Millions 2020 2021 2022 2023 2024 2025 Consumers Remediation and other response activity costs $ 7 $ 8 $ 20 $ 11 $ 2 $ 2 Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability. Pursuant to orders issued by the MPSC, Consumers defers its MGP‑related remediation costs and recovers them from its customers over a ten ‑year period. At June 30, 2020 , Consumers had a regulatory asset of $126 million related to the MGP sites. Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million . At June 30, 2020 , Consumers had a recorded liability of less than $1 million , the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount. Ray Compressor Station : On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity. As a result of the fire and the resulting curtailment, Consumers could be subject to disallowances of gas purchased and costs associated with the repairs to the Ray Compressor Station. Consumers’ incremental cost of gas purchased during the incident was $7 million . Additionally, at June 30, 2020 , Consumers had incurred capital expenditures of $12 million to restore the compressor station. In May 2020, the MPSC approved an administrative settlement agreement between Consumers and the MPSC Staff, which resulted in a $10,000 civil penalty in connection with the fire. Consumers may also be subject to various claims from impacted customers and claims for damages. At this time, Consumers cannot predict the outcome of these matters or other gas-related incidents and a reasonable estimate of a total loss cannot be made, but they could have a material adverse effect on Consumers’ results of operations, financial condition, or liquidity, and could subject Consumers’ gas utility to increased regulatory scrutiny. Guarantees Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2020 : In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from stock and asset sale agreements¹ various indefinite $ 153 $ 2 Guarantee² July 2011 indefinite 30 — Consumers Guarantee² July 2011 indefinite $ 30 $ — 1 These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. 2 This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. The carrying value of these indemnity obligations is $1 million . CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote. Other Contingencies In addition to the matters disclosed in this Note and Note 2, Regulatory Matters , t here 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. |
Financings and Capitalization
Financings and Capitalization | 6 Months Ended |
Jun. 30, 2020 | |
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 six months ended June 30, 2020 : Principal (In Millions) Interest Rate Issuance Date Maturity Date CMS Energy, parent only Term loan facility¹ $ 300 variable February February 2021 Junior subordinated notes² 500 4.750 % May June 2050 Total CMS Energy, parent only $ 800 Consumers Term loan facility³ $ 300 variable January January 2021 First mortgage bonds 575 3.500 % March August 2051 First mortgage bonds 525 2.500 % May May 2060 First mortgage bonds 4 134 variable May May 2070 Total Consumers $ 1,534 Total CMS Energy $ 2,334 1 At June 30, 2020 , the interest rate on the balance of this term loan facility was 1.572 percent , based on an interest rate of six‑month LIBOR plus 0.500 percent . 2 These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. On June 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 4.116 percent . 3 At June 30, 2020 , the interest rate on the balance of this term loan facility was 0.556 percent , based on an interest rate of one‑week LIBOR plus 0.450 percent . 4 The variable rate bonds bear interest quarterly at a rate of three-month LIBOR minus 0.300 percent ( 0.077 percent at June 30, 2020 ). Presented in the following table is a summary of major long‑term debt retirements during the six months ended June 30, 2020 : Principal (In Millions) Interest Rate Retirement Date Maturity Date Consumers First mortgage bonds $ 100 3.770 % April October 2020 First mortgage bonds 250 5.300 % June September 2022 Total Consumers $ 350 Total CMS Energy $ 350 In July 2020, Consumers purchased, in lieu of redemption, $35 million of variable-rate tax-exempt revenue bonds due April 2035. Revolving Credit Facilities: The following revolving credit facilities with banks were available at June 30, 2020 : In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2023 $ 550 $ — $ 5 $ 545 CMS Enterprises, including subsidiaries September 30, 2025¹ $ 18 $ — $ 8 $ 10 Consumers² June 5, 2023 $ 850 $ — $ 7 $ 843 November 19, 2021 250 — 1 249 April 18, 2022 30 — 30 — 1 Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. 2 Obligations under these facilities are secured by first mortgage bonds of Consumers. Short‑term Borrowings : Under Consumers’ commercial paper program , Consumers may issue, in one or more placements , investment-grade commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers’ revolving credit facilities and may have an aggregate principal amount outstanding of up to $500 million . While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At June 30, 2020 , there were no commercial paper notes outstanding under this program. Dividend Restrictions : At June 30, 2020 , payment of dividends by CMS Energy on its common stock was limited to $5.2 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at June 30, 2020 , Consumers had $1.6 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. For the six months ended June 30, 2020 , Consumers paid $276 million in dividends on its common stock to CMS Energy. Issuance of Common Stock : In 2018, CMS Energy entered into an equity offering program under which it may sell, from time to time, shares of CMS Energy common stock having an aggregate sales price of up to $250 million . Under this program, CMS Energy may sell its common stock in privately negotiated transactions, in “at the market” offerings, through forward sales transactions or otherwise. During 2018 and 2019, CMS Energy entered into forward sales contracts having an aggregate sales price of $250 million . In March 2020, CMS Energy settled one of these contracts by issuing 2,017,783 shares of common stock for $47.95 per share , resulting in net proceeds of $97 million . At June 30, 2020 , CMS Energy’s remaining forward sales contracts under this program had an aggregate sales price of $150 million . Presented in the following table are details of these contracts: Forward Price Per Share Contract Date Maturity Date Number of Shares Initial June 30, 2020 November 20, 2018 March 31, 2021 777,899 $ 50.91 $ 49.32 February 21, 2019 March 31, 2021 2,083,340 52.27 50.88 These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then‑applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock. The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle the contracts as of June 30, 2020 , CMS Energy would have been required to deliver 390,008 shares. In April 2020, CMS Energy entered into a new equity offering program under which it may sell, from time to time, shares of CMS Energy common stock having an aggregate sales price of up to $500 million . Like the 2018 equity offering program, CMS Energy may sell its common stock in privately negotiated transactions, in “at the market” offerings, through forward sales transactions or otherwise. There have been no sales of securities under this program. |
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 six months ended June 30, 2020 : Principal (In Millions) Interest Rate Issuance Date Maturity Date CMS Energy, parent only Term loan facility¹ $ 300 variable February February 2021 Junior subordinated notes² 500 4.750 % May June 2050 Total CMS Energy, parent only $ 800 Consumers Term loan facility³ $ 300 variable January January 2021 First mortgage bonds 575 3.500 % March August 2051 First mortgage bonds 525 2.500 % May May 2060 First mortgage bonds 4 134 variable May May 2070 Total Consumers $ 1,534 Total CMS Energy $ 2,334 1 At June 30, 2020 , the interest rate on the balance of this term loan facility was 1.572 percent , based on an interest rate of six‑month LIBOR plus 0.500 percent . 2 These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. On June 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 4.116 percent . 3 At June 30, 2020 , the interest rate on the balance of this term loan facility was 0.556 percent , based on an interest rate of one‑week LIBOR plus 0.450 percent . 4 The variable rate bonds bear interest quarterly at a rate of three-month LIBOR minus 0.300 percent ( 0.077 percent at June 30, 2020 ). Presented in the following table is a summary of major long‑term debt retirements during the six months ended June 30, 2020 : Principal (In Millions) Interest Rate Retirement Date Maturity Date Consumers First mortgage bonds $ 100 3.770 % April October 2020 First mortgage bonds 250 5.300 % June September 2022 Total Consumers $ 350 Total CMS Energy $ 350 In July 2020, Consumers purchased, in lieu of redemption, $35 million of variable-rate tax-exempt revenue bonds due April 2035. Revolving Credit Facilities: The following revolving credit facilities with banks were available at June 30, 2020 : In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2023 $ 550 $ — $ 5 $ 545 CMS Enterprises, including subsidiaries September 30, 2025¹ $ 18 $ — $ 8 $ 10 Consumers² June 5, 2023 $ 850 $ — $ 7 $ 843 November 19, 2021 250 — 1 249 April 18, 2022 30 — 30 — 1 Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. 2 Obligations under these facilities are secured by first mortgage bonds of Consumers. Short‑term Borrowings : Under Consumers’ commercial paper program , Consumers may issue, in one or more placements , investment-grade commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers’ revolving credit facilities and may have an aggregate principal amount outstanding of up to $500 million . While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At June 30, 2020 , there were no commercial paper notes outstanding under this program. Dividend Restrictions : At June 30, 2020 , payment of dividends by CMS Energy on its common stock was limited to $5.2 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at June 30, 2020 , Consumers had $1.6 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. For the six months ended June 30, 2020 , Consumers paid $276 million in dividends on its common stock to CMS Energy. Issuance of Common Stock : In 2018, CMS Energy entered into an equity offering program under which it may sell, from time to time, shares of CMS Energy common stock having an aggregate sales price of up to $250 million . Under this program, CMS Energy may sell its common stock in privately negotiated transactions, in “at the market” offerings, through forward sales transactions or otherwise. During 2018 and 2019, CMS Energy entered into forward sales contracts having an aggregate sales price of $250 million . In March 2020, CMS Energy settled one of these contracts by issuing 2,017,783 shares of common stock for $47.95 per share , resulting in net proceeds of $97 million . At June 30, 2020 , CMS Energy’s remaining forward sales contracts under this program had an aggregate sales price of $150 million . Presented in the following table are details of these contracts: Forward Price Per Share Contract Date Maturity Date Number of Shares Initial June 30, 2020 November 20, 2018 March 31, 2021 777,899 $ 50.91 $ 49.32 February 21, 2019 March 31, 2021 2,083,340 52.27 50.88 These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then‑applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock. The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle the contracts as of June 30, 2020 , CMS Energy would have been required to deliver 390,008 shares. In April 2020, CMS Energy entered into a new equity offering program under which it may sell, from time to time, shares of CMS Energy common stock having an aggregate sales price of up to $500 million . Like the 2018 equity offering program, CMS Energy may sell its common stock in privately negotiated transactions, in “at the market” offerings, through forward sales transactions or otherwise. There have been no sales of securities under this program. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements | Fair Value Measurements Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are observable, market‑based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data. • Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities. CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety. Assets and Liabilities Measured at Fair Value on a Recurring Basis Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers June 30 December 31 June 30 December 31 Assets¹ Cash equivalents $ 100 $ — $ 100 $ — Restricted cash and cash equivalents 17 17 14 17 CMS Energy common stock — — 1 1 Nonqualified deferred compensation plan assets 19 18 15 14 Derivative instruments 3 1 3 1 Total $ 139 $ 36 $ 133 $ 33 Liabilities¹ Nonqualified deferred compensation plan liabilities $ 19 $ 18 $ 15 $ 14 Derivative instruments 21 8 1 — Total $ 40 $ 26 $ 16 $ 14 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3. Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity. For further details, see Note 12, Cash and Cash Equivalents . Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets . Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3. The derivatives classified as Level 2 are interest rate swaps at CMS Energy, which are valued using market‑based inputs. CMS Energy uses interest rate swaps to manage its interest rate risk on certain long‑term debt obligations and certain notes receivable at EnerBank. A subsidiary of CMS Enterprises uses floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with future interest payments on certain long‑term variable-rate debt. The interest rate swaps are accounted for as cash flow hedges of the future variability of interest payments on debt with a notional amount of $88 million at June 30, 2020 . Gains or losses on these swaps are initially reported in other comprehensive income (loss) and then, as interest payments are made on the hedged debt, are recognized in earnings within other interest expense on CMS Energy’s consolidated statements of income . The amount of losses recorded in other comprehensive loss was less than $1 million for the three months ended June 30, 2020 and $3 million for the three months ended June 30, 2019 . The amount of losses recorded in other comprehensive loss was $5 million for the six months ended June 30, 2020 and $4 million for the six months ended June 30, 2019 . There were no material impacts on other interest expense associated with these swaps during the periods presented. The fair value of these swaps recorded in other liabilities on CMS Energy’s consolidated balance sheets totaled $10 million at June 30, 2020 and $5 million at December 31, 2019 . CMS Energy also has other interest rate swaps that economically hedge interest rate risk on debt, but that do not qualify for cash flow hedge accounting; the amounts associated with these swaps were not material for the three and six months ended June 30, 2020 and 2019 . EnerBank uses fixed-to-floating interest rate swaps to manage interest rate risk exposure associated with changes in the fair value of certain long‑term fixed-rate loans. The interest rate swaps qualify as fair value hedges of long‑term, fixed-rate notes receivable with a notional amount of $134 million at June 30, 2020 . The fair value of these interest rate swaps recorded in other liabilities was $7 million at June 30, 2020 and $1 million at December 31, 2019 . CMS Energy is adjusting the carrying value of the hedged notes receivable for the change in their fair value due to the hedged risk. Both gains and losses on the swaps and the changes to the carrying value of the hedged notes receivable are recorded within operating revenue on CMS Energy’s consolidated statements of income . The net impact of these hedges on operating revenue was not material for the three and six months ended June 30, 2020 and 2019 . The majority of derivatives classified as Level 3 are FTRs held by Consumers. Consumers uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion‑related transmission charges. 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 Consumers Consumers June 30 December 31 June 30 December 31 Assets¹ Cash equivalents $ 100 $ — $ 100 $ — Restricted cash and cash equivalents 17 17 14 17 CMS Energy common stock — — 1 1 Nonqualified deferred compensation plan assets 19 18 15 14 Derivative instruments 3 1 3 1 Total $ 139 $ 36 $ 133 $ 33 Liabilities¹ Nonqualified deferred compensation plan liabilities $ 19 $ 18 $ 15 $ 14 Derivative instruments 21 8 1 — Total $ 40 $ 26 $ 16 $ 14 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3. Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity. For further details, see Note 12, Cash and Cash Equivalents . Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets . Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3. The derivatives classified as Level 2 are interest rate swaps at CMS Energy, which are valued using market‑based inputs. CMS Energy uses interest rate swaps to manage its interest rate risk on certain long‑term debt obligations and certain notes receivable at EnerBank. A subsidiary of CMS Enterprises uses floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with future interest payments on certain long‑term variable-rate debt. The interest rate swaps are accounted for as cash flow hedges of the future variability of interest payments on debt with a notional amount of $88 million at June 30, 2020 . Gains or losses on these swaps are initially reported in other comprehensive income (loss) and then, as interest payments are made on the hedged debt, are recognized in earnings within other interest expense on CMS Energy’s consolidated statements of income . The amount of losses recorded in other comprehensive loss was less than $1 million for the three months ended June 30, 2020 and $3 million for the three months ended June 30, 2019 . The amount of losses recorded in other comprehensive loss was $5 million for the six months ended June 30, 2020 and $4 million for the six months ended June 30, 2019 . There were no material impacts on other interest expense associated with these swaps during the periods presented. The fair value of these swaps recorded in other liabilities on CMS Energy’s consolidated balance sheets totaled $10 million at June 30, 2020 and $5 million at December 31, 2019 . CMS Energy also has other interest rate swaps that economically hedge interest rate risk on debt, but that do not qualify for cash flow hedge accounting; the amounts associated with these swaps were not material for the three and six months ended June 30, 2020 and 2019 . EnerBank uses fixed-to-floating interest rate swaps to manage interest rate risk exposure associated with changes in the fair value of certain long‑term fixed-rate loans. The interest rate swaps qualify as fair value hedges of long‑term, fixed-rate notes receivable with a notional amount of $134 million at June 30, 2020 . The fair value of these interest rate swaps recorded in other liabilities was $7 million at June 30, 2020 and $1 million at December 31, 2019 . CMS Energy is adjusting the carrying value of the hedged notes receivable for the change in their fair value due to the hedged risk. Both gains and losses on the swaps and the changes to the carrying value of the hedged notes receivable are recorded within operating revenue on CMS Energy’s consolidated statements of income . The net impact of these hedges on operating revenue was not material for the three and six months ended June 30, 2020 and 2019 . The majority of derivatives classified as Level 3 are FTRs held by Consumers. Consumers uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion‑related transmission charges. 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. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Financial Instruments | Financial Instruments Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short‑term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements . In Millions June 30, 2020 December 31, 2019 Fair Value Fair Value Carrying Level Carrying Level Amount Total 1 2 3 Amount Total 1 2 3 CMS Energy, including Consumers Assets Long-term receivables 1 $ 19 $ 19 $ — $ — $ 19 $ 20 $ 20 $ — $ — $ 20 Notes receivable 2 2,597 2,896 — — 2,896 2,500 2,652 — — 2,652 Securities held to maturity 29 29 — 29 — 26 26 — 26 — Liabilities Long-term debt 3 15,139 17,154 1,150 14,290 1,714 13,062 14,185 1,197 11,048 1,940 Long-term payables 4 31 32 — — 32 30 32 — — 32 Consumers Assets Long-term receivables 1 $ 19 $ 19 $ — $ — $ 19 $ 20 $ 20 $ — $ — $ 20 Notes receivable – related party 5 103 103 — — 103 103 103 — — 103 Liabilities Long-term debt 6 8,404 9,912 — 8,198 1,714 7,250 8,010 — 6,070 1,940 1 Includes current portion of long-term accounts receivable of $12 million at June 30, 2020 and $13 million at December 31, 2019 . 2 Includes current portion of notes receivable of $264 million at June 30, 2020 and $242 million at December 31, 2019 . For further details, see Note 7, Notes Receivable . 3 Includes current portion of long‑term debt of $1.7 billion at June 30, 2020 and $1.1 billion at December 31, 2019 . 4 Includes current portion of long‑term payables of $6 million at June 30, 2020 and $1 million at December 31, 2019 . 5 Includes current portion of notes receivable – related party of $7 million at June 30, 2020 and December 31, 2019 . For further details, see Note 7, Notes Receivable . 6 Includes current portion of long‑term debt of $537 million at June 30, 2020 and $202 million at December 31, 2019 . The effects of third‑party credit enhancements were excluded from the fair value measurements of long‑term debt. The principal amount of CMS Energy’s long‑term debt supported by third‑party credit enhancements was $35 million at June 30, 2020 and December 31, 2019 . The entirety of these amounts was at Consumers. Debt securities classified as held to maturity consisted primarily of mortgage‑backed securities and Utah Housing Corporation bonds held by EnerBank. Presented in the following table are these investment securities: In Millions June 30, 2020 December 31, 2019 Cost Unrealized Gains Unrealized Losses Fair Value Cost Unrealized Gains Unrealized Losses Fair Value CMS Energy Debt securities $ 29 $ — $ — $ 29 $ 26 $ — $ — $ 26 |
Consumers Energy Company | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Financial Instruments | Financial Instruments Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short‑term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements . In Millions June 30, 2020 December 31, 2019 Fair Value Fair Value Carrying Level Carrying Level Amount Total 1 2 3 Amount Total 1 2 3 CMS Energy, including Consumers Assets Long-term receivables 1 $ 19 $ 19 $ — $ — $ 19 $ 20 $ 20 $ — $ — $ 20 Notes receivable 2 2,597 2,896 — — 2,896 2,500 2,652 — — 2,652 Securities held to maturity 29 29 — 29 — 26 26 — 26 — Liabilities Long-term debt 3 15,139 17,154 1,150 14,290 1,714 13,062 14,185 1,197 11,048 1,940 Long-term payables 4 31 32 — — 32 30 32 — — 32 Consumers Assets Long-term receivables 1 $ 19 $ 19 $ — $ — $ 19 $ 20 $ 20 $ — $ — $ 20 Notes receivable – related party 5 103 103 — — 103 103 103 — — 103 Liabilities Long-term debt 6 8,404 9,912 — 8,198 1,714 7,250 8,010 — 6,070 1,940 1 Includes current portion of long-term accounts receivable of $12 million at June 30, 2020 and $13 million at December 31, 2019 . 2 Includes current portion of notes receivable of $264 million at June 30, 2020 and $242 million at December 31, 2019 . For further details, see Note 7, Notes Receivable . 3 Includes current portion of long‑term debt of $1.7 billion at June 30, 2020 and $1.1 billion at December 31, 2019 . 4 Includes current portion of long‑term payables of $6 million at June 30, 2020 and $1 million at December 31, 2019 . 5 Includes current portion of notes receivable – related party of $7 million at June 30, 2020 and December 31, 2019 . For further details, see Note 7, Notes Receivable . 6 Includes current portion of long‑term debt of $537 million at June 30, 2020 and $202 million at December 31, 2019 . The effects of third‑party credit enhancements were excluded from the fair value measurements of long‑term debt. The principal amount of CMS Energy’s long‑term debt supported by third‑party credit enhancements was $35 million at June 30, 2020 and December 31, 2019 . The entirety of these amounts was at Consumers. Debt securities classified as held to maturity consisted primarily of mortgage‑backed securities and Utah Housing Corporation bonds held by EnerBank. Presented in the following table are these investment securities: In Millions June 30, 2020 December 31, 2019 Cost Unrealized Gains Unrealized Losses Fair Value Cost Unrealized Gains Unrealized Losses Fair Value CMS Energy Debt securities $ 29 $ — $ — $ 29 $ 26 $ — $ — $ 26 |
Notes Receivable
Notes Receivable | 6 Months Ended |
Jun. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Notes Receivable | Notes Receivable Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable: In Millions June 30, 2020 December 31, 2019 CMS Energy, including Consumers Current EnerBank notes receivable, net of allowance for loan losses $ 264 $ 242 Non‑current EnerBank notes receivable, net of allowance for loan losses 2,333 2,258 Total notes receivable $ 2,597 $ 2,500 Consumers Current DB SERP note receivable – related party $ 7 $ 7 Non‑current DB SERP note receivable – related party 96 96 Total notes receivable $ 103 $ 103 EnerBank Notes Receivable EnerBank notes receivable are primarily unsecured, fixed-rate installment loans provided throughout the U.S. to finance home improvements . EnerBank records its notes receivable at cost, less an allowance for loan losses. Authorized contractors pay fees to EnerBank to provide borrowers with same‑as‑cash, zero interest, or reduced interest loans. Unearned income associated with the loan fees, which is recorded as a reduction to notes receivable on CMS Energy’s consolidated balance sheets , was $131 million at June 30, 2020 and $134 million at December 31, 2019 . During the six months ended June 30, 2020 , EnerBank purchased a portfolio of secured and unsecured consumer installment loans with a principal value of $17 million . EnerBank utilizes FICO scores as a key credit quality indicator when underwriting new loans and in assessing the credit exposures in its loan portfolio. The score is determined at the time of a borrower’s application and is generally not updated since the average duration of loans is about two years. At June 30, 2020 , 85 percent of EnerBank’s loans had a FICO score rating between good and excellent. At June 30, 2020, 97 percent of EnerBank’s loan portfolio was originated within the past five years. The allowance for loan losses at June 30, 2020 reflects expected credit losses over the entire lifetime of the loan portfolio. EnerBank estimates the allowance by using the “weighted-average remaining maturity” methodology for their term loans, and the “probability of default and loss given default” methodology for their same-as-cash loans. These methodologies consider historical loan loss experience, prepayment expectations, and credit quality indicators. EnerBank considers current and projected economic conditions, and other reasonable and supportable forecast information to determine if adjustments to the allowance are necessary. The allowance is increased by the provision for loan losses and decreased by loan charge‑offs net of recoveries. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due. Presented in the following table are the changes in the allowance for loan losses: In Millions June 30, 2020 Three Months Ended Six Months Ended Balance at beginning of period $ 99 $ 33 Effects of new accounting standard¹ — 62 Provisions for loan losses 13 26 Charge-offs (9 ) (20 ) Recoveries 1 3 Balance at end of period $ 104 $ 104 1 The allowance for loan losses at December 31, 2019 reflected expected credit losses over a 12-month period. On January 1, 2020, in accordance with ASU 2016-13 , Measurement of Credit Losses on Financial Instruments , the allowance for loan losses was adjusted to reflect expected credit losses over the life of the loan. Additionally, EnerBank recorded $3 million for expected credit losses related to unfunded loan commitments. For further details, see Note 1, New Accounting Standards . Loans that are 30 days or more past due are considered delinquent. The balance of EnerBank’s delinquent loans was $23 million at June 30, 2020 and $33 million at December 31, 2019 . At June 30, 2020 and December 31, 2019 , EnerBank’s loans that had been modified as troubled debt restructurings were immaterial. As a result of the COVID‑19 pandemic, EnerBank has instituted new payment accommodations for current customers. At June 30, 2020 , EnerBank had not experienced increased delinquent loans, charge-offs, or increased loan modifications due to the COVID‑19 pandemic. EnerBank did not make any material adjustments to their allowance for loan losses at June 30, 2020 due to the COVID‑19 pandemic. EnerBank cannot predict the longer-term impacts of the pandemic, but could experience slower lending growth, higher loan write-offs, and increased loan modifications . EnerBank issues loan commitments to meet customer-financing needs. These commitments are agreements to provide credit as long as certain conditions are met and expire after 120 days. EnerBank uses the same credit policies in making these commitments as it uses for loans. EnerBank had $513 million of off-balance-sheet unfunded loan commitments at June 30, 2020 , and had recorded a liability of $9 million for expected credit losses on those commitments. EnerBank has entered into interest rate swaps on $134 million of its loans (notes receivable). For information about interest rate swaps see Note 5, Fair Value Measurements . DB SERP Note Receivable – Related Party The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. |
Consumers Energy Company | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Notes Receivable | Notes Receivable Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable: In Millions June 30, 2020 December 31, 2019 CMS Energy, including Consumers Current EnerBank notes receivable, net of allowance for loan losses $ 264 $ 242 Non‑current EnerBank notes receivable, net of allowance for loan losses 2,333 2,258 Total notes receivable $ 2,597 $ 2,500 Consumers Current DB SERP note receivable – related party $ 7 $ 7 Non‑current DB SERP note receivable – related party 96 96 Total notes receivable $ 103 $ 103 EnerBank Notes Receivable EnerBank notes receivable are primarily unsecured, fixed-rate installment loans provided throughout the U.S. to finance home improvements . EnerBank records its notes receivable at cost, less an allowance for loan losses. Authorized contractors pay fees to EnerBank to provide borrowers with same‑as‑cash, zero interest, or reduced interest loans. Unearned income associated with the loan fees, which is recorded as a reduction to notes receivable on CMS Energy’s consolidated balance sheets , was $131 million at June 30, 2020 and $134 million at December 31, 2019 . During the six months ended June 30, 2020 , EnerBank purchased a portfolio of secured and unsecured consumer installment loans with a principal value of $17 million . EnerBank utilizes FICO scores as a key credit quality indicator when underwriting new loans and in assessing the credit exposures in its loan portfolio. The score is determined at the time of a borrower’s application and is generally not updated since the average duration of loans is about two years. At June 30, 2020 , 85 percent of EnerBank’s loans had a FICO score rating between good and excellent. At June 30, 2020, 97 percent of EnerBank’s loan portfolio was originated within the past five years. The allowance for loan losses at June 30, 2020 reflects expected credit losses over the entire lifetime of the loan portfolio. EnerBank estimates the allowance by using the “weighted-average remaining maturity” methodology for their term loans, and the “probability of default and loss given default” methodology for their same-as-cash loans. These methodologies consider historical loan loss experience, prepayment expectations, and credit quality indicators. EnerBank considers current and projected economic conditions, and other reasonable and supportable forecast information to determine if adjustments to the allowance are necessary. The allowance is increased by the provision for loan losses and decreased by loan charge‑offs net of recoveries. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due. Presented in the following table are the changes in the allowance for loan losses: In Millions June 30, 2020 Three Months Ended Six Months Ended Balance at beginning of period $ 99 $ 33 Effects of new accounting standard¹ — 62 Provisions for loan losses 13 26 Charge-offs (9 ) (20 ) Recoveries 1 3 Balance at end of period $ 104 $ 104 1 The allowance for loan losses at December 31, 2019 reflected expected credit losses over a 12-month period. On January 1, 2020, in accordance with ASU 2016-13 , Measurement of Credit Losses on Financial Instruments , the allowance for loan losses was adjusted to reflect expected credit losses over the life of the loan. Additionally, EnerBank recorded $3 million for expected credit losses related to unfunded loan commitments. For further details, see Note 1, New Accounting Standards . Loans that are 30 days or more past due are considered delinquent. The balance of EnerBank’s delinquent loans was $23 million at June 30, 2020 and $33 million at December 31, 2019 . At June 30, 2020 and December 31, 2019 , EnerBank’s loans that had been modified as troubled debt restructurings were immaterial. As a result of the COVID‑19 pandemic, EnerBank has instituted new payment accommodations for current customers. At June 30, 2020 , EnerBank had not experienced increased delinquent loans, charge-offs, or increased loan modifications due to the COVID‑19 pandemic. EnerBank did not make any material adjustments to their allowance for loan losses at June 30, 2020 due to the COVID‑19 pandemic. EnerBank cannot predict the longer-term impacts of the pandemic, but could experience slower lending growth, higher loan write-offs, and increased loan modifications . EnerBank issues loan commitments to meet customer-financing needs. These commitments are agreements to provide credit as long as certain conditions are met and expire after 120 days. EnerBank uses the same credit policies in making these commitments as it uses for loans. EnerBank had $513 million of off-balance-sheet unfunded loan commitments at June 30, 2020 , and had recorded a liability of $9 million for expected credit losses on those commitments. EnerBank has entered into interest rate swaps on $134 million of its loans (notes receivable). For information about interest rate swaps see Note 5, Fair Value Measurements . DB SERP Note Receivable – Related Party The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Jun. 30, 2020 | |
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. Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans: In Millions DB Pension Plans OPEB Plan Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30 2020 2019 2020 2019 2020 2019 2020 2019 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 13 $ 10 $ 25 $ 20 $ 4 $ 3 $ 8 $ 7 Interest cost 20 24 41 49 9 10 17 20 Expected return on plan assets (48 ) (41 ) (96 ) (81 ) (25 ) (22 ) (50 ) (44 ) Amortization of: Net loss 22 12 44 24 3 6 7 13 Prior service cost (credit) 1 1 1 1 (14 ) (15 ) (28 ) (31 ) Net periodic cost (credit) $ 8 $ 6 $ 15 $ 13 $ (23 ) $ (18 ) $ (46 ) $ (35 ) Consumers Net periodic cost (credit) Service cost $ 12 $ 10 $ 24 $ 20 $ 4 $ 4 $ 8 $ 7 Interest cost 19 23 39 46 8 10 16 20 Expected return on plan assets (46 ) (38 ) (91 ) (76 ) (24 ) (20 ) (47 ) (41 ) Amortization of: Net loss 21 11 42 23 3 6 7 13 Prior service cost (credit) 1 1 1 1 (13 ) (16 ) (27 ) (31 ) Net periodic cost (credit) $ 7 $ 7 $ 15 $ 14 $ (22 ) $ (16 ) $ (43 ) $ (32 ) Contributions: In January 2020, CMS Energy, including Consumers, contributed $531 million and Consumers contributed $518 million to the DB Pension Plans. |
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. Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans: In Millions DB Pension Plans OPEB Plan Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30 2020 2019 2020 2019 2020 2019 2020 2019 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 13 $ 10 $ 25 $ 20 $ 4 $ 3 $ 8 $ 7 Interest cost 20 24 41 49 9 10 17 20 Expected return on plan assets (48 ) (41 ) (96 ) (81 ) (25 ) (22 ) (50 ) (44 ) Amortization of: Net loss 22 12 44 24 3 6 7 13 Prior service cost (credit) 1 1 1 1 (14 ) (15 ) (28 ) (31 ) Net periodic cost (credit) $ 8 $ 6 $ 15 $ 13 $ (23 ) $ (18 ) $ (46 ) $ (35 ) Consumers Net periodic cost (credit) Service cost $ 12 $ 10 $ 24 $ 20 $ 4 $ 4 $ 8 $ 7 Interest cost 19 23 39 46 8 10 16 20 Expected return on plan assets (46 ) (38 ) (91 ) (76 ) (24 ) (20 ) (47 ) (41 ) Amortization of: Net loss 21 11 42 23 3 6 7 13 Prior service cost (credit) 1 1 1 1 (13 ) (16 ) (27 ) (31 ) Net periodic cost (credit) $ 7 $ 7 $ 15 $ 14 $ (22 ) $ (16 ) $ (43 ) $ (32 ) Contributions: In January 2020, CMS Energy, including Consumers, contributed $531 million and Consumers contributed $518 million to the DB Pension Plans. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations: Six Months Ended June 30 2020 2019 CMS Energy, including Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 4.6 5.4 TCJA excess deferred taxes¹ (4.0 ) (3.5 ) Production tax credits (2.8 ) (2.5 ) Research and development tax credits, net² (2.2 ) (0.2 ) Alternative minimum tax sequestration³ (2.1 ) — Accelerated flow-through of regulatory tax benefits 4 (1.5 ) (1.5 ) Other, net (0.6 ) (0.6 ) Effective tax rate 12.4 % 18.1 % Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.0 5.7 TCJA excess deferred taxes¹ (3.6 ) (3.2 ) Research and development tax credits, net² (1.9 ) (0.2 ) Production tax credits (1.6 ) (1.3 ) Accelerated flow-through of regulatory tax benefits 4 (1.6 ) (1.8 ) Other, net (0.5 ) (0.4 ) Effective tax rate 16.8 % 19.8 % 1 In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a net $1.6 billion regulatory liability. As a result of an order received in September 2019, Consumers began refunding these excess deferred taxes to customers. 2 In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, for the six months ended June 30, 2020 , CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers. 3 In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, for the six months ended June 30, 2020 , CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020. 4 In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow‑through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018 and the gas portion continuing through 2025. This change, which also accelerates Consumers’ recognition of the income tax benefits, reduced Consumers’ income tax expense by $7 million for the six months ended June 30, 2020 and by $7 million for the six months ended June 30, 2019 . |
Consumers Energy Company | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations: Six Months Ended June 30 2020 2019 CMS Energy, including Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 4.6 5.4 TCJA excess deferred taxes¹ (4.0 ) (3.5 ) Production tax credits (2.8 ) (2.5 ) Research and development tax credits, net² (2.2 ) (0.2 ) Alternative minimum tax sequestration³ (2.1 ) — Accelerated flow-through of regulatory tax benefits 4 (1.5 ) (1.5 ) Other, net (0.6 ) (0.6 ) Effective tax rate 12.4 % 18.1 % Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.0 5.7 TCJA excess deferred taxes¹ (3.6 ) (3.2 ) Research and development tax credits, net² (1.9 ) (0.2 ) Production tax credits (1.6 ) (1.3 ) Accelerated flow-through of regulatory tax benefits 4 (1.6 ) (1.8 ) Other, net (0.5 ) (0.4 ) Effective tax rate 16.8 % 19.8 % 1 In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a net $1.6 billion regulatory liability. As a result of an order received in September 2019, Consumers began refunding these excess deferred taxes to customers. 2 In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, for the six months ended June 30, 2020 , CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers. 3 In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, for the six months ended June 30, 2020 , CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020. 4 In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow‑through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018 and the gas portion continuing through 2025. This change, which also accelerates Consumers’ recognition of the income tax benefits, reduced Consumers’ income tax expense by $7 million for the six months ended June 30, 2020 and by $7 million for the six months ended June 30, 2019 . |
Earnings Per Share - CMS Energy
Earnings Per Share - CMS Energy | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share - CMS Energy | Earnings Per Share—CMS Energy Presented in the following table are CMS Energy’s basic and diluted EPS computations based on net income : In Millions, Except Per Share Amounts Three Months Ended Six Months Ended June 30 2020 2019 2020 2019 Income available to common stockholders Net income $ 137 $ 94 $ 380 $ 307 Less income attributable to noncontrolling interests 1 1 1 1 Net income available to common stockholders – basic and diluted $ 136 $ 93 $ 379 $ 306 Average common shares outstanding Weighted-average shares – basic 285.5 282.9 284.4 282.9 Add dilutive nonvested stock awards 0.6 0.6 0.7 0.6 Add dilutive forward equity sale contracts 0.4 0.5 0.7 0.3 Weighted-average shares – diluted 286.5 284.0 285.8 283.8 Net income per average common share available to common stockholders Basic $ 0.48 $ 0.33 $ 1.33 $ 1.08 Diluted 0.48 0.33 1.33 1.08 Nonvested Stock Awards CMS Energy’s nonvested stock awards are composed of participating and non‑participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the nonvested stock awards are considered participating securities. As such, the participating nonvested stock awards were included in the computation of basic EPS. The non‑participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non‑participating securities are also forfeited. Accordingly, the non‑participating awards and stock dividends were included in the computation of diluted EPS, but not in the computation of basic EPS. Forward Equity Sale Contracts CMS Energy has entered into forward equity sale contracts. These forward equity sale contracts are non‑participating securities. While the forward sale price in the forward equity sale contract is decreased on certain dates by certain predetermined amounts to reflect expected dividend payments, these price adjustments were set upon inception of the agreement and the forward contract does not give the owner the right to participate in undistributed earnings. Accordingly, the forward equity sale contracts were included in the computation of diluted EPS, but not in the computation of basic EPS. For further details on the forward equity sale contracts, see Note 4, Financings and Capitalization . |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue | Revenue Presented in the following tables are the components of operating revenue: In Millions Three Months Ended June 30, 2020 Electric Utility Gas Utility Enterprises¹ EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,020 $ 306 $ — $ — $ 1,326 Other — — 17 — 17 Revenue recognized from contracts with customers $ 1,020 $ 306 $ 17 $ — $ 1,343 Leasing income — — 35 — 35 Financing income 2 2 — 61 65 Total operating revenue – CMS Energy $ 1,022 $ 308 $ 52 $ 61 $ 1,443 Consumers Consumers utility revenue Residential $ 507 $ 206 $ 713 Commercial 341 51 392 Industrial 126 7 133 Other 46 42 88 Revenue recognized from contracts with customers $ 1,020 $ 306 $ 1,326 Financing income 2 2 4 Total operating revenue – Consumers $ 1,022 $ 308 $ 1,330 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $21 million for the three months ended June 30, 2020 . In Millions Three Months Ended June 30, 2019 Electric Utility Gas Utility Enterprises¹ EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,026 $ 305 $ — $ — $ 1,331 Other — — 16 — 16 Revenue recognized from contracts with customers $ 1,026 $ 305 $ 16 $ — $ 1,347 Leasing income — — 42 — 42 Financing income 1 2 — 53 56 Total operating revenue – CMS Energy $ 1,027 $ 307 $ 58 $ 53 $ 1,445 Consumers Consumers utility revenue Residential $ 423 $ 198 $ 621 Commercial 362 58 420 Industrial 174 8 182 Other 67 41 108 Revenue recognized from contracts with customers $ 1,026 $ 305 $ 1,331 Financing income 1 2 3 Total operating revenue – Consumers $ 1,027 $ 307 $ 1,334 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $29 million for the three months ended June 30, 2019 . In Millions Six Months Ended June 30, 2020 Electric Utility Gas Utility Enterprises¹ EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,045 $ 1,020 $ — $ — $ 3,065 Other — — 36 — 36 Revenue recognized from contracts with customers $ 2,045 $ 1,020 $ 36 $ — $ 3,101 Leasing income — — 74 — 74 Financing income 5 4 — 123 132 Total operating revenue – CMS Energy $ 2,050 $ 1,024 $ 110 $ 123 $ 3,307 Consumers Consumers utility revenue Residential $ 988 $ 699 $ 1,687 Commercial 680 200 880 Industrial 266 27 293 Other 111 94 205 Revenue recognized from contracts with customers $ 2,045 $ 1,020 $ 3,065 Financing income 5 4 9 Total operating revenue – Consumers $ 2,050 $ 1,024 $ 3,074 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $46 million for the six months ended June 30, 2020 . In Millions Six Months Ended June 30, 2019 Electric Utility Gas Utility Enterprises¹ EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,126 $ 1,143 $ — $ — $ 3,269 Other — — 35 — 35 Revenue recognized from contracts with customers $ 2,126 $ 1,143 $ 35 $ — $ 3,304 Leasing income — — 90 — 90 Financing income 4 4 — 102 110 Total operating revenue – CMS Energy $ 2,130 $ 1,147 $ 125 $ 102 $ 3,504 Consumers Consumers utility revenue Residential $ 946 $ 787 $ 1,733 Commercial 713 232 945 Industrial 336 33 369 Other 131 91 222 Revenue recognized from contracts with customers $ 2,126 $ 1,143 $ 3,269 Financing income 4 4 8 Total operating revenue – Consumers $ 2,130 $ 1,147 $ 3,277 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $63 million for the six months ended June 30, 2019 . Electric and Gas Utilities Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff‑based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff‑based sales performance obligations are described below. • Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate‑making process and represent the stand‑alone selling price of Consumers’ service to stand ready to deliver. • Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate‑making process and represent the stand‑alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity. In some instances, Consumers has specific fixed‑term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature. Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost, less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past‑due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due. CMS Energy and Consumers recorded uncollectible accounts expense of $8 million for the three months ended June 30, 2020 and $6 million for the three months ended June 30, 2019 . CMS Energy and Consumers recorded uncollectible accounts expense of $13 million for the six months ended June 30, 2020 and $12 million for the six months ended June 30, 2019 . At June 30, 2020 , Consumers deferred $9 million of incremental uncollectible accounts expense as a non‑current regulatory asset. For additional information see Note 2, Regulatory Matters . Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month‑end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable on CMS Energy’s and Consumers’ consolidated balance sheets , were $326 million at June 30, 2020 and $426 million at December 31, 2019 . Alternative‑Revenue Programs: The energy waste reduction incentive mechanism provides a financial incentive if the energy savings of Consumers’ customers exceed annual targets established by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the incentive as soon as energy savings exceed the annual targets established by the MPSC. 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. |
Consumers Energy Company | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue | Revenue Presented in the following tables are the components of operating revenue: In Millions Three Months Ended June 30, 2020 Electric Utility Gas Utility Enterprises¹ EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,020 $ 306 $ — $ — $ 1,326 Other — — 17 — 17 Revenue recognized from contracts with customers $ 1,020 $ 306 $ 17 $ — $ 1,343 Leasing income — — 35 — 35 Financing income 2 2 — 61 65 Total operating revenue – CMS Energy $ 1,022 $ 308 $ 52 $ 61 $ 1,443 Consumers Consumers utility revenue Residential $ 507 $ 206 $ 713 Commercial 341 51 392 Industrial 126 7 133 Other 46 42 88 Revenue recognized from contracts with customers $ 1,020 $ 306 $ 1,326 Financing income 2 2 4 Total operating revenue – Consumers $ 1,022 $ 308 $ 1,330 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $21 million for the three months ended June 30, 2020 . In Millions Three Months Ended June 30, 2019 Electric Utility Gas Utility Enterprises¹ EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,026 $ 305 $ — $ — $ 1,331 Other — — 16 — 16 Revenue recognized from contracts with customers $ 1,026 $ 305 $ 16 $ — $ 1,347 Leasing income — — 42 — 42 Financing income 1 2 — 53 56 Total operating revenue – CMS Energy $ 1,027 $ 307 $ 58 $ 53 $ 1,445 Consumers Consumers utility revenue Residential $ 423 $ 198 $ 621 Commercial 362 58 420 Industrial 174 8 182 Other 67 41 108 Revenue recognized from contracts with customers $ 1,026 $ 305 $ 1,331 Financing income 1 2 3 Total operating revenue – Consumers $ 1,027 $ 307 $ 1,334 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $29 million for the three months ended June 30, 2019 . In Millions Six Months Ended June 30, 2020 Electric Utility Gas Utility Enterprises¹ EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,045 $ 1,020 $ — $ — $ 3,065 Other — — 36 — 36 Revenue recognized from contracts with customers $ 2,045 $ 1,020 $ 36 $ — $ 3,101 Leasing income — — 74 — 74 Financing income 5 4 — 123 132 Total operating revenue – CMS Energy $ 2,050 $ 1,024 $ 110 $ 123 $ 3,307 Consumers Consumers utility revenue Residential $ 988 $ 699 $ 1,687 Commercial 680 200 880 Industrial 266 27 293 Other 111 94 205 Revenue recognized from contracts with customers $ 2,045 $ 1,020 $ 3,065 Financing income 5 4 9 Total operating revenue – Consumers $ 2,050 $ 1,024 $ 3,074 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $46 million for the six months ended June 30, 2020 . In Millions Six Months Ended June 30, 2019 Electric Utility Gas Utility Enterprises¹ EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,126 $ 1,143 $ — $ — $ 3,269 Other — — 35 — 35 Revenue recognized from contracts with customers $ 2,126 $ 1,143 $ 35 $ — $ 3,304 Leasing income — — 90 — 90 Financing income 4 4 — 102 110 Total operating revenue – CMS Energy $ 2,130 $ 1,147 $ 125 $ 102 $ 3,504 Consumers Consumers utility revenue Residential $ 946 $ 787 $ 1,733 Commercial 713 232 945 Industrial 336 33 369 Other 131 91 222 Revenue recognized from contracts with customers $ 2,126 $ 1,143 $ 3,269 Financing income 4 4 8 Total operating revenue – Consumers $ 2,130 $ 1,147 $ 3,277 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $63 million for the six months ended June 30, 2019 . Electric and Gas Utilities Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff‑based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff‑based sales performance obligations are described below. • Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate‑making process and represent the stand‑alone selling price of Consumers’ service to stand ready to deliver. • Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate‑making process and represent the stand‑alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity. In some instances, Consumers has specific fixed‑term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature. Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost, less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past‑due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due. CMS Energy and Consumers recorded uncollectible accounts expense of $8 million for the three months ended June 30, 2020 and $6 million for the three months ended June 30, 2019 . CMS Energy and Consumers recorded uncollectible accounts expense of $13 million for the six months ended June 30, 2020 and $12 million for the six months ended June 30, 2019 . At June 30, 2020 , Consumers deferred $9 million of incremental uncollectible accounts expense as a non‑current regulatory asset. For additional information see Note 2, Regulatory Matters . Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month‑end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable on CMS Energy’s and Consumers’ consolidated balance sheets , were $326 million at June 30, 2020 and $426 million at December 31, 2019 . Alternative‑Revenue Programs: The energy waste reduction incentive mechanism provides a financial incentive if the energy savings of Consumers’ customers exceed annual targets established by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the incentive as soon as energy savings exceed the annual targets established by the MPSC. 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. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2020 | |
Cash and Cash Equivalents [Line Items] | |
Cash and Cash Equivalents | Cash and Cash Equivalents Presented in the following table are the components of total cash and cash equivalents, including restricted amounts , and their location on CMS Energy’s and Consumers’ consolidated balance sheets : In Millions June 30, 2020 December 31, 2019 CMS Energy, including Consumers Cash and cash equivalents $ 1,587 $ 140 Restricted cash and cash equivalents 17 17 Cash and cash equivalents, including restricted amounts $ 1,604 $ 157 Consumers Cash and cash equivalents $ 1,215 $ 11 Restricted cash and cash equivalents 14 17 Cash and cash equivalents, including restricted amounts $ 1,229 $ 28 Cash and Cash Equivalents: Cash and cash equivalents include short‑term, highly liquid investments with original maturities of three months or less. Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year. |
Consumers Energy Company | |
Cash and Cash Equivalents [Line Items] | |
Cash and Cash Equivalents | Cash and Cash Equivalents Presented in the following table are the components of total cash and cash equivalents, including restricted amounts , and their location on CMS Energy’s and Consumers’ consolidated balance sheets : In Millions June 30, 2020 December 31, 2019 CMS Energy, including Consumers Cash and cash equivalents $ 1,587 $ 140 Restricted cash and cash equivalents 17 17 Cash and cash equivalents, including restricted amounts $ 1,604 $ 157 Consumers Cash and cash equivalents $ 1,215 $ 11 Restricted cash and cash equivalents 14 17 Cash and cash equivalents, including restricted amounts $ 1,229 $ 28 Cash and Cash Equivalents: Cash and cash equivalents include short‑term, highly liquid investments with original maturities of three months or less. Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year. |
Reportable Segments
Reportable Segments | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | |
Reportable Segments | Reportable Segments Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders . CMS Energy The segments reported for CMS Energy are: • electric utility, consisting of regulated activities associated with the generation, purchase, transmission, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan • enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production • EnerBank, a Utah state-chartered, FDIC-insured industrial bank providing primarily unsecured, fixed-rate installment loans throughout the U.S. to finance home improvements CMS Energy presents corporate interest and other expenses and Consumers’ other consolidated entities within other reconciling items. Consumers The segments reported for Consumers are: • electric utility, consisting of regulated activities associated with the generation, purchase, transmission, 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 Ended Six Months Ended June 30 2020 2019 2020 2019 CMS Energy, including Consumers Operating revenue Electric utility $ 1,022 $ 1,027 $ 2,050 $ 2,130 Gas utility 308 307 1,024 1,147 Enterprises 52 58 110 125 EnerBank 61 53 123 102 Total operating revenue – CMS Energy $ 1,443 $ 1,445 $ 3,307 $ 3,504 Consumers Operating revenue Electric utility $ 1,022 $ 1,027 $ 2,050 $ 2,130 Gas utility 308 307 1,024 1,147 Total operating revenue – Consumers $ 1,330 $ 1,334 $ 3,074 $ 3,277 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 119 $ 90 $ 237 $ 195 Gas utility 41 8 158 129 Enterprises¹ 1 16 21 23 EnerBank¹ 8 10 22 21 Other reconciling items¹ (33 ) (31 ) (59 ) (62 ) Total net income available to common stockholders – CMS Energy $ 136 $ 93 $ 379 $ 306 Consumers Net income (loss) available to common stockholder Electric utility $ 119 $ 90 $ 237 $ 195 Gas utility 41 8 158 129 Other reconciling items (1 ) (1 ) (1 ) (1 ) Total net income available to common stockholder – Consumers $ 159 $ 97 $ 394 $ 323 1 Prior period amounts have been reclassified to reflect changes in segment reporting. In Millions June 30, 2020 December 31, 2019 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility¹ $ 16,447 $ 16,158 Gas utility¹ 9,001 8,785 Enterprises 408 405 EnerBank 35 22 Other reconciling items 20 20 Total plant, property, and equipment, gross – CMS Energy $ 25,911 $ 25,390 Consumers Plant, property, and equipment, gross Electric utility¹ $ 16,447 $ 16,158 Gas utility¹ 9,001 8,785 Other reconciling items 20 20 Total plant, property, and equipment, gross – Consumers $ 25,468 $ 24,963 CMS Energy, including Consumers Total assets Electric utility¹ $ 15,925 $ 14,911 Gas utility¹ 9,006 8,659 Enterprises 542 527 EnerBank 2,799 2,692 Other reconciling items 309 48 Total assets – CMS Energy $ 28,581 $ 26,837 Consumers Total assets Electric utility¹ $ 15,987 $ 14,973 Gas utility¹ 9,052 8,706 Other reconciling items 21 20 Total assets – Consumers $ 25,060 $ 23,699 1 Amounts 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 Segments Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders . CMS Energy The segments reported for CMS Energy are: • electric utility, consisting of regulated activities associated with the generation, purchase, transmission, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan • enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production • EnerBank, a Utah state-chartered, FDIC-insured industrial bank providing primarily unsecured, fixed-rate installment loans throughout the U.S. to finance home improvements CMS Energy presents corporate interest and other expenses and Consumers’ other consolidated entities within other reconciling items. Consumers The segments reported for Consumers are: • electric utility, consisting of regulated activities associated with the generation, purchase, transmission, 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 Ended Six Months Ended June 30 2020 2019 2020 2019 CMS Energy, including Consumers Operating revenue Electric utility $ 1,022 $ 1,027 $ 2,050 $ 2,130 Gas utility 308 307 1,024 1,147 Enterprises 52 58 110 125 EnerBank 61 53 123 102 Total operating revenue – CMS Energy $ 1,443 $ 1,445 $ 3,307 $ 3,504 Consumers Operating revenue Electric utility $ 1,022 $ 1,027 $ 2,050 $ 2,130 Gas utility 308 307 1,024 1,147 Total operating revenue – Consumers $ 1,330 $ 1,334 $ 3,074 $ 3,277 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 119 $ 90 $ 237 $ 195 Gas utility 41 8 158 129 Enterprises¹ 1 16 21 23 EnerBank¹ 8 10 22 21 Other reconciling items¹ (33 ) (31 ) (59 ) (62 ) Total net income available to common stockholders – CMS Energy $ 136 $ 93 $ 379 $ 306 Consumers Net income (loss) available to common stockholder Electric utility $ 119 $ 90 $ 237 $ 195 Gas utility 41 8 158 129 Other reconciling items (1 ) (1 ) (1 ) (1 ) Total net income available to common stockholder – Consumers $ 159 $ 97 $ 394 $ 323 1 Prior period amounts have been reclassified to reflect changes in segment reporting. In Millions June 30, 2020 December 31, 2019 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility¹ $ 16,447 $ 16,158 Gas utility¹ 9,001 8,785 Enterprises 408 405 EnerBank 35 22 Other reconciling items 20 20 Total plant, property, and equipment, gross – CMS Energy $ 25,911 $ 25,390 Consumers Plant, property, and equipment, gross Electric utility¹ $ 16,447 $ 16,158 Gas utility¹ 9,001 8,785 Other reconciling items 20 20 Total plant, property, and equipment, gross – Consumers $ 25,468 $ 24,963 CMS Energy, including Consumers Total assets Electric utility¹ $ 15,925 $ 14,911 Gas utility¹ 9,006 8,659 Enterprises 542 527 EnerBank 2,799 2,692 Other reconciling items 309 48 Total assets – CMS Energy $ 28,581 $ 26,837 Consumers Total assets Electric utility¹ $ 15,987 $ 14,973 Gas utility¹ 9,052 8,706 Other reconciling items 21 20 Total assets – Consumers $ 25,060 $ 23,699 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. |
Exit Activities
Exit Activities | 6 Months Ended |
Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Exit Activities | Exit Activities Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled generating units in 2023 . In October 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million . Consumers is seeking recovery of these costs from customers in its 2020 electric rate case. As of June 30, 2020 , the cumulative cost incurred and charged to expense related to this program was $11 million ; an amount of $1 million has been capitalized as a cost of plant, property, and equipment. Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets : In Millions June 30, 2020 Six Months Ended Retention benefit liability at beginning of period $ 4 Costs incurred and charged to maintenance and other operating expenses¹ 7 Costs incurred and capitalized 1 Retention benefit liability at the end of the period² $ 12 1 Includes $3 million for the three months ended June 30, 2020 . 2 Includes current portion of other liabilities of $5 million . |
Consumers Energy Company | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Exit Activities | Exit Activities Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled generating units in 2023 . In October 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million . Consumers is seeking recovery of these costs from customers in its 2020 electric rate case. As of June 30, 2020 , the cumulative cost incurred and charged to expense related to this program was $11 million ; an amount of $1 million has been capitalized as a cost of plant, property, and equipment. Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets : In Millions June 30, 2020 Six Months Ended Retention benefit liability at beginning of period $ 4 Costs incurred and charged to maintenance and other operating expenses¹ 7 Costs incurred and capitalized 1 Retention benefit liability at the end of the period² $ 12 1 Includes $3 million for the three months ended June 30, 2020 . 2 Includes current portion of other liabilities of $5 million . |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New accounting standards | Implementation of New Accounting Standards ASU 2016‑13, Measurement of Credit Losses on Financial Instruments: This standard, which was effective on January 1, 2020 for CMS Energy and Consumers, provides new guidance for measuring and recognizing credit losses on financial instruments. The standard applies to financial assets that are not measured at fair value through net income as well as to certain off‑balance-sheet credit exposures. CMS Energy and Consumers were required to apply the standard using a modified retrospective approach, under which the initial impacts of the standard are recorded through a cumulative‑effect adjustment to beginning retained earnings on the effective date. The standard required an increase to the allowance for loan losses at EnerBank. Prior to the standard, the allowance reflected expected credit losses over a 12‑month period, but the new guidance requires the allowance to reflect expected credit losses over the entire life of the loans. As a result, CMS Energy recorded a $65 million increase to its expected credit loss reserves on January 1, 2020, with the offsetting adjustment recorded to retained earnings, net of taxes of $14 million . The standard also requires an increase in the initial provision for loan losses recognized in net income for new loans originated in 2020 and beyond. The adoption of this standard resulted in a $9 million reduction to CMS Energy’s income before income taxes for the six months ended June 30, 2020 . For further information on EnerBank’s loans and the related allowance for loan losses, see Note 7, Notes Receivable . At Consumers, the standard applies to the allowance for uncollectible accounts, but did not result in any significant changes to the allowance methodology and did not have a material impact on Consumers’ consolidated financial statements . ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting: This standard, which was effective as of March 12, 2020 for CMS Energy and Consumers, provides optional guidance intended to ease the potential burden in accounting for the expected discontinuation of LIBOR as a reference rate in the financial markets. The guidance can be applied to modifications made to certain contracts to replace LIBOR with a new reference rate. The guidance, if elected, will permit entities to treat such modifications as the continuation of the original contract, without any required accounting reassessments or remeasurements. The guidance will also facilitate the continuation of hedge accounting for derivatives that may have to be modified to incorporate a new rate. The guidance is effective through December 31, 2022. CMS Energy and Consumers presently have various contracts that reference LIBOR and they are assessing how this standard may be applied to specific contract modifications. |
Allowance for loan losses | The allowance for loan losses at June 30, 2020 |
Consumers Energy Company | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New accounting standards | Implementation of New Accounting Standards ASU 2016‑13, Measurement of Credit Losses on Financial Instruments: This standard, which was effective on January 1, 2020 for CMS Energy and Consumers, provides new guidance for measuring and recognizing credit losses on financial instruments. The standard applies to financial assets that are not measured at fair value through net income as well as to certain off‑balance-sheet credit exposures. CMS Energy and Consumers were required to apply the standard using a modified retrospective approach, under which the initial impacts of the standard are recorded through a cumulative‑effect adjustment to beginning retained earnings on the effective date. The standard required an increase to the allowance for loan losses at EnerBank. Prior to the standard, the allowance reflected expected credit losses over a 12‑month period, but the new guidance requires the allowance to reflect expected credit losses over the entire life of the loans. As a result, CMS Energy recorded a $65 million increase to its expected credit loss reserves on January 1, 2020, with the offsetting adjustment recorded to retained earnings, net of taxes of $14 million . The standard also requires an increase in the initial provision for loan losses recognized in net income for new loans originated in 2020 and beyond. The adoption of this standard resulted in a $9 million reduction to CMS Energy’s income before income taxes for the six months ended June 30, 2020 . For further information on EnerBank’s loans and the related allowance for loan losses, see Note 7, Notes Receivable . At Consumers, the standard applies to the allowance for uncollectible accounts, but did not result in any significant changes to the allowance methodology and did not have a material impact on Consumers’ consolidated financial statements . ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting: This standard, which was effective as of March 12, 2020 for CMS Energy and Consumers, provides optional guidance intended to ease the potential burden in accounting for the expected discontinuation of LIBOR as a reference rate in the financial markets. The guidance can be applied to modifications made to certain contracts to replace LIBOR with a new reference rate. The guidance, if elected, will permit entities to treat such modifications as the continuation of the original contract, without any required accounting reassessments or remeasurements. The guidance will also facilitate the continuation of hedge accounting for derivatives that may have to be modified to incorporate a new rate. The guidance is effective through December 31, 2022. CMS Energy and Consumers presently have various contracts that reference LIBOR and they are assessing how this standard may be applied to specific contract modifications. |
Contingencies And Commitments (
Contingencies And Commitments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Site Contingency [Line Items] | |
Guarantees | Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2020 : In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from stock and asset sale agreements¹ various indefinite $ 153 $ 2 Guarantee² July 2011 indefinite 30 — Consumers Guarantee² July 2011 indefinite $ 30 $ — 1 These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. 2 This 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] | |
Guarantees | Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2020 : In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from stock and asset sale agreements¹ various indefinite $ 153 $ 2 Guarantee² July 2011 indefinite 30 — Consumers Guarantee² July 2011 indefinite $ 30 $ — 1 These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. 2 This 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. |
Bay Harbor | |
Site Contingency [Line Items] | |
Expected Remediation Costs By Year | . CMS Energy expects to pay the following amounts for long‑term leachate disposal and operating and maintenance costs during the remainder of 2020 and in each of the next five years: In Millions 2020 2021 2022 2023 2024 2025 CMS Energy Long‑term leachate disposal and operating and maintenance costs $ 3 $ 4 $ 4 $ 4 $ 4 $ 4 |
Gas Utility | Manufactured Gas Plant | Consumers Energy Company | |
Site Contingency [Line Items] | |
Expected Remediation Costs By Year | . Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2020 and in each of the next five years: In Millions 2020 2021 2022 2023 2024 2025 Consumers Remediation and other response activity costs $ 7 $ 8 $ 20 $ 11 $ 2 $ 2 |
Financings and Capitalization (
Financings and Capitalization (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Instrument [Line Items] | |
Major Long-Term Debt Transactions | Presented in the following table is a summary of major long‑term debt issuances during the six months ended June 30, 2020 : Principal (In Millions) Interest Rate Issuance Date Maturity Date CMS Energy, parent only Term loan facility¹ $ 300 variable February February 2021 Junior subordinated notes² 500 4.750 % May June 2050 Total CMS Energy, parent only $ 800 Consumers Term loan facility³ $ 300 variable January January 2021 First mortgage bonds 575 3.500 % March August 2051 First mortgage bonds 525 2.500 % May May 2060 First mortgage bonds 4 134 variable May May 2070 Total Consumers $ 1,534 Total CMS Energy $ 2,334 1 At June 30, 2020 , the interest rate on the balance of this term loan facility was 1.572 percent , based on an interest rate of six‑month LIBOR plus 0.500 percent . 2 These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. On June 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 4.116 percent . 3 At June 30, 2020 , the interest rate on the balance of this term loan facility was 0.556 percent , based on an interest rate of one‑week LIBOR plus 0.450 percent . 4 The variable rate bonds bear interest quarterly at a rate of three-month LIBOR minus 0.300 percent ( 0.077 percent at June 30, 2020 ). Presented in the following table is a summary of major long‑term debt retirements during the six months ended June 30, 2020 : Principal (In Millions) Interest Rate Retirement Date Maturity Date Consumers First mortgage bonds $ 100 3.770 % April October 2020 First mortgage bonds 250 5.300 % June September 2022 Total Consumers $ 350 Total CMS Energy $ 350 |
Revolving Credit Facilities | The following revolving credit facilities with banks were available at June 30, 2020 : In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2023 $ 550 $ — $ 5 $ 545 CMS Enterprises, including subsidiaries September 30, 2025¹ $ 18 $ — $ 8 $ 10 Consumers² June 5, 2023 $ 850 $ — $ 7 $ 843 November 19, 2021 250 — 1 249 April 18, 2022 30 — 30 — 1 Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. 2 Obligations under these facilities are secured by first mortgage bonds of Consumers. |
Schedule of Forward Contracts Indexed to Issuer's Equity | Presented in the following table are details of these contracts: Forward Price Per Share Contract Date Maturity Date Number of Shares Initial June 30, 2020 November 20, 2018 March 31, 2021 777,899 $ 50.91 $ 49.32 February 21, 2019 March 31, 2021 2,083,340 52.27 50.88 |
Consumers Energy Company | |
Debt Instrument [Line Items] | |
Major Long-Term Debt Transactions | Presented in the following table is a summary of major long‑term debt issuances during the six months ended June 30, 2020 : Principal (In Millions) Interest Rate Issuance Date Maturity Date CMS Energy, parent only Term loan facility¹ $ 300 variable February February 2021 Junior subordinated notes² 500 4.750 % May June 2050 Total CMS Energy, parent only $ 800 Consumers Term loan facility³ $ 300 variable January January 2021 First mortgage bonds 575 3.500 % March August 2051 First mortgage bonds 525 2.500 % May May 2060 First mortgage bonds 4 134 variable May May 2070 Total Consumers $ 1,534 Total CMS Energy $ 2,334 1 At June 30, 2020 , the interest rate on the balance of this term loan facility was 1.572 percent , based on an interest rate of six‑month LIBOR plus 0.500 percent . 2 These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. On June 1, 2030, and every five years thereafter, the notes will reset to an interest rate equal to the five-year treasury rate plus 4.116 percent . 3 At June 30, 2020 , the interest rate on the balance of this term loan facility was 0.556 percent , based on an interest rate of one‑week LIBOR plus 0.450 percent . 4 The variable rate bonds bear interest quarterly at a rate of three-month LIBOR minus 0.300 percent ( 0.077 percent at June 30, 2020 ). Presented in the following table is a summary of major long‑term debt retirements during the six months ended June 30, 2020 : Principal (In Millions) Interest Rate Retirement Date Maturity Date Consumers First mortgage bonds $ 100 3.770 % April October 2020 First mortgage bonds 250 5.300 % June September 2022 Total Consumers $ 350 Total CMS Energy $ 350 |
Revolving Credit Facilities | The following revolving credit facilities with banks were available at June 30, 2020 : In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2023 $ 550 $ — $ 5 $ 545 CMS Enterprises, including subsidiaries September 30, 2025¹ $ 18 $ — $ 8 $ 10 Consumers² June 5, 2023 $ 850 $ — $ 7 $ 843 November 19, 2021 250 — 1 249 April 18, 2022 30 — 30 — 1 Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. 2 Obligations under these facilities are secured by first mortgage bonds of Consumers. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets And Liabilities Measured At Fair Value On A Recurring Basis | Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers June 30 December 31 June 30 December 31 Assets¹ Cash equivalents $ 100 $ — $ 100 $ — Restricted cash and cash equivalents 17 17 14 17 CMS Energy common stock — — 1 1 Nonqualified deferred compensation plan assets 19 18 15 14 Derivative instruments 3 1 3 1 Total $ 139 $ 36 $ 133 $ 33 Liabilities¹ Nonqualified deferred compensation plan liabilities $ 19 $ 18 $ 15 $ 14 Derivative instruments 21 8 1 — Total $ 40 $ 26 $ 16 $ 14 1 All 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 Consumers Consumers June 30 December 31 June 30 December 31 Assets¹ Cash equivalents $ 100 $ — $ 100 $ — Restricted cash and cash equivalents 17 17 14 17 CMS Energy common stock — — 1 1 Nonqualified deferred compensation plan assets 19 18 15 14 Derivative instruments 3 1 3 1 Total $ 139 $ 36 $ 133 $ 33 Liabilities¹ Nonqualified deferred compensation plan liabilities $ 19 $ 18 $ 15 $ 14 Derivative instruments 21 8 1 — Total $ 40 $ 26 $ 16 $ 14 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short‑term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements . In Millions June 30, 2020 December 31, 2019 Fair Value Fair Value Carrying Level Carrying Level Amount Total 1 2 3 Amount Total 1 2 3 CMS Energy, including Consumers Assets Long-term receivables 1 $ 19 $ 19 $ — $ — $ 19 $ 20 $ 20 $ — $ — $ 20 Notes receivable 2 2,597 2,896 — — 2,896 2,500 2,652 — — 2,652 Securities held to maturity 29 29 — 29 — 26 26 — 26 — Liabilities Long-term debt 3 15,139 17,154 1,150 14,290 1,714 13,062 14,185 1,197 11,048 1,940 Long-term payables 4 31 32 — — 32 30 32 — — 32 Consumers Assets Long-term receivables 1 $ 19 $ 19 $ — $ — $ 19 $ 20 $ 20 $ — $ — $ 20 Notes receivable – related party 5 103 103 — — 103 103 103 — — 103 Liabilities Long-term debt 6 8,404 9,912 — 8,198 1,714 7,250 8,010 — 6,070 1,940 1 Includes current portion of long-term accounts receivable of $12 million at June 30, 2020 and $13 million at December 31, 2019 . 2 Includes current portion of notes receivable of $264 million at June 30, 2020 and $242 million at December 31, 2019 . For further details, see Note 7, Notes Receivable . 3 Includes current portion of long‑term debt of $1.7 billion at June 30, 2020 and $1.1 billion at December 31, 2019 . 4 Includes current portion of long‑term payables of $6 million at June 30, 2020 and $1 million at December 31, 2019 . 5 Includes current portion of notes receivable – related party of $7 million at June 30, 2020 and December 31, 2019 . For further details, see Note 7, Notes Receivable . 6 Includes current portion of long‑term debt of $537 million at June 30, 2020 and $202 million at December 31, 2019 . |
Schedule Of Investment Securities | Presented in the following table are these investment securities: In Millions June 30, 2020 December 31, 2019 Cost Unrealized Gains Unrealized Losses Fair Value Cost Unrealized Gains Unrealized Losses Fair Value CMS Energy Debt securities $ 29 $ — $ — $ 29 $ 26 $ — $ — $ 26 |
Consumers Energy Company | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short‑term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements . In Millions June 30, 2020 December 31, 2019 Fair Value Fair Value Carrying Level Carrying Level Amount Total 1 2 3 Amount Total 1 2 3 CMS Energy, including Consumers Assets Long-term receivables 1 $ 19 $ 19 $ — $ — $ 19 $ 20 $ 20 $ — $ — $ 20 Notes receivable 2 2,597 2,896 — — 2,896 2,500 2,652 — — 2,652 Securities held to maturity 29 29 — 29 — 26 26 — 26 — Liabilities Long-term debt 3 15,139 17,154 1,150 14,290 1,714 13,062 14,185 1,197 11,048 1,940 Long-term payables 4 31 32 — — 32 30 32 — — 32 Consumers Assets Long-term receivables 1 $ 19 $ 19 $ — $ — $ 19 $ 20 $ 20 $ — $ — $ 20 Notes receivable – related party 5 103 103 — — 103 103 103 — — 103 Liabilities Long-term debt 6 8,404 9,912 — 8,198 1,714 7,250 8,010 — 6,070 1,940 1 Includes current portion of long-term accounts receivable of $12 million at June 30, 2020 and $13 million at December 31, 2019 . 2 Includes current portion of notes receivable of $264 million at June 30, 2020 and $242 million at December 31, 2019 . For further details, see Note 7, Notes Receivable . 3 Includes current portion of long‑term debt of $1.7 billion at June 30, 2020 and $1.1 billion at December 31, 2019 . 4 Includes current portion of long‑term payables of $6 million at June 30, 2020 and $1 million at December 31, 2019 . 5 Includes current portion of notes receivable – related party of $7 million at June 30, 2020 and December 31, 2019 . For further details, see Note 7, Notes Receivable . 6 Includes current portion of long‑term debt of $537 million at June 30, 2020 and $202 million at December 31, 2019 . |
Notes Receivable (Tables)
Notes Receivable (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule Of Current And Non-Current Notes Receivable | Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable: In Millions June 30, 2020 December 31, 2019 CMS Energy, including Consumers Current EnerBank notes receivable, net of allowance for loan losses $ 264 $ 242 Non‑current EnerBank notes receivable, net of allowance for loan losses 2,333 2,258 Total notes receivable $ 2,597 $ 2,500 Consumers Current DB SERP note receivable – related party $ 7 $ 7 Non‑current DB SERP note receivable – related party 96 96 Total notes receivable $ 103 $ 103 |
Financing Receivable, Allowance for Credit Loss | Presented in the following table are the changes in the allowance for loan losses: In Millions June 30, 2020 Three Months Ended Six Months Ended Balance at beginning of period $ 99 $ 33 Effects of new accounting standard¹ — 62 Provisions for loan losses 13 26 Charge-offs (9 ) (20 ) Recoveries 1 3 Balance at end of period $ 104 $ 104 1 The allowance for loan losses at December 31, 2019 reflected expected credit losses over a 12-month period. On January 1, 2020, in accordance with ASU 2016-13 , Measurement of Credit Losses on Financial Instruments , the allowance for loan losses was adjusted to reflect expected credit losses over the life of the loan. Additionally, EnerBank recorded $3 million for expected credit losses related to unfunded loan commitments. For further details, see Note 1, New Accounting Standards . |
Consumers Energy Company | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule Of Current And Non-Current Notes Receivable | Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable: In Millions June 30, 2020 December 31, 2019 CMS Energy, including Consumers Current EnerBank notes receivable, net of allowance for loan losses $ 264 $ 242 Non‑current EnerBank notes receivable, net of allowance for loan losses 2,333 2,258 Total notes receivable $ 2,597 $ 2,500 Consumers Current DB SERP note receivable – related party $ 7 $ 7 Non‑current DB SERP note receivable – related party 96 96 Total notes receivable $ 103 $ 103 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 benefits plans: In Millions DB Pension Plans OPEB Plan Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30 2020 2019 2020 2019 2020 2019 2020 2019 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 13 $ 10 $ 25 $ 20 $ 4 $ 3 $ 8 $ 7 Interest cost 20 24 41 49 9 10 17 20 Expected return on plan assets (48 ) (41 ) (96 ) (81 ) (25 ) (22 ) (50 ) (44 ) Amortization of: Net loss 22 12 44 24 3 6 7 13 Prior service cost (credit) 1 1 1 1 (14 ) (15 ) (28 ) (31 ) Net periodic cost (credit) $ 8 $ 6 $ 15 $ 13 $ (23 ) $ (18 ) $ (46 ) $ (35 ) Consumers Net periodic cost (credit) Service cost $ 12 $ 10 $ 24 $ 20 $ 4 $ 4 $ 8 $ 7 Interest cost 19 23 39 46 8 10 16 20 Expected return on plan assets (46 ) (38 ) (91 ) (76 ) (24 ) (20 ) (47 ) (41 ) Amortization of: Net loss 21 11 42 23 3 6 7 13 Prior service cost (credit) 1 1 1 1 (13 ) (16 ) (27 ) (31 ) Net periodic cost (credit) $ 7 $ 7 $ 15 $ 14 $ (22 ) $ (16 ) $ (43 ) $ (32 ) Contributions: In January 2020, CMS Energy, including Consumers, contributed $531 million and Consumers contributed $518 million to the DB Pension Plans. |
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 benefits plans: In Millions DB Pension Plans OPEB Plan Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30 2020 2019 2020 2019 2020 2019 2020 2019 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 13 $ 10 $ 25 $ 20 $ 4 $ 3 $ 8 $ 7 Interest cost 20 24 41 49 9 10 17 20 Expected return on plan assets (48 ) (41 ) (96 ) (81 ) (25 ) (22 ) (50 ) (44 ) Amortization of: Net loss 22 12 44 24 3 6 7 13 Prior service cost (credit) 1 1 1 1 (14 ) (15 ) (28 ) (31 ) Net periodic cost (credit) $ 8 $ 6 $ 15 $ 13 $ (23 ) $ (18 ) $ (46 ) $ (35 ) Consumers Net periodic cost (credit) Service cost $ 12 $ 10 $ 24 $ 20 $ 4 $ 4 $ 8 $ 7 Interest cost 19 23 39 46 8 10 16 20 Expected return on plan assets (46 ) (38 ) (91 ) (76 ) (24 ) (20 ) (47 ) (41 ) Amortization of: Net loss 21 11 42 23 3 6 7 13 Prior service cost (credit) 1 1 1 1 (13 ) (16 ) (27 ) (31 ) Net periodic cost (credit) $ 7 $ 7 $ 15 $ 14 $ (22 ) $ (16 ) $ (43 ) $ (32 ) Contributions: In January 2020, CMS Energy, including Consumers, contributed $531 million and Consumers contributed $518 million to the DB Pension Plans. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes [Line Items] | |
Schedule Of Effective Income Tax Rate Reconciliation | Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations: Six Months Ended June 30 2020 2019 CMS Energy, including Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 4.6 5.4 TCJA excess deferred taxes¹ (4.0 ) (3.5 ) Production tax credits (2.8 ) (2.5 ) Research and development tax credits, net² (2.2 ) (0.2 ) Alternative minimum tax sequestration³ (2.1 ) — Accelerated flow-through of regulatory tax benefits 4 (1.5 ) (1.5 ) Other, net (0.6 ) (0.6 ) Effective tax rate 12.4 % 18.1 % Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.0 5.7 TCJA excess deferred taxes¹ (3.6 ) (3.2 ) Research and development tax credits, net² (1.9 ) (0.2 ) Production tax credits (1.6 ) (1.3 ) Accelerated flow-through of regulatory tax benefits 4 (1.6 ) (1.8 ) Other, net (0.5 ) (0.4 ) Effective tax rate 16.8 % 19.8 % 1 In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a net $1.6 billion regulatory liability. As a result of an order received in September 2019, Consumers began refunding these excess deferred taxes to customers. 2 In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, for the six months ended June 30, 2020 , CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers. 3 In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, for the six months ended June 30, 2020 , CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020. 4 In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow‑through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018 and the gas portion continuing through 2025. This change, which also accelerates Consumers’ recognition of the income tax benefits, reduced Consumers’ income tax expense by $7 million for the six months ended June 30, 2020 and by $7 million for the six months ended June 30, 2019 . |
Consumers Energy Company | |
Income Taxes [Line Items] | |
Schedule Of Effective Income Tax Rate Reconciliation | Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations: Six Months Ended June 30 2020 2019 CMS Energy, including Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 4.6 5.4 TCJA excess deferred taxes¹ (4.0 ) (3.5 ) Production tax credits (2.8 ) (2.5 ) Research and development tax credits, net² (2.2 ) (0.2 ) Alternative minimum tax sequestration³ (2.1 ) — Accelerated flow-through of regulatory tax benefits 4 (1.5 ) (1.5 ) Other, net (0.6 ) (0.6 ) Effective tax rate 12.4 % 18.1 % Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.0 5.7 TCJA excess deferred taxes¹ (3.6 ) (3.2 ) Research and development tax credits, net² (1.9 ) (0.2 ) Production tax credits (1.6 ) (1.3 ) Accelerated flow-through of regulatory tax benefits 4 (1.6 ) (1.8 ) Other, net (0.5 ) (0.4 ) Effective tax rate 16.8 % 19.8 % 1 In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a net $1.6 billion regulatory liability. As a result of an order received in September 2019, Consumers began refunding these excess deferred taxes to customers. 2 In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, for the six months ended June 30, 2020 , CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers. 3 In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, for the six months ended June 30, 2020 , CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020. 4 In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow‑through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018 and the gas portion continuing through 2025. This change, which also accelerates Consumers’ recognition of the income tax benefits, reduced Consumers’ income tax expense by $7 million for the six months ended June 30, 2020 and by $7 million for the six months ended June 30, 2019 . |
Earnings Per Share - CMS Ener_2
Earnings Per Share - CMS Energy (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted EPS Computations | Presented in the following table are CMS Energy’s basic and diluted EPS computations based on net income : In Millions, Except Per Share Amounts Three Months Ended Six Months Ended June 30 2020 2019 2020 2019 Income available to common stockholders Net income $ 137 $ 94 $ 380 $ 307 Less income attributable to noncontrolling interests 1 1 1 1 Net income available to common stockholders – basic and diluted $ 136 $ 93 $ 379 $ 306 Average common shares outstanding Weighted-average shares – basic 285.5 282.9 284.4 282.9 Add dilutive nonvested stock awards 0.6 0.6 0.7 0.6 Add dilutive forward equity sale contracts 0.4 0.5 0.7 0.3 Weighted-average shares – diluted 286.5 284.0 285.8 283.8 Net income per average common share available to common stockholders Basic $ 0.48 $ 0.33 $ 1.33 $ 1.08 Diluted 0.48 0.33 1.33 1.08 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Components Of Operating Revenue | Presented in the following tables are the components of operating revenue: In Millions Three Months Ended June 30, 2020 Electric Utility Gas Utility Enterprises¹ EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,020 $ 306 $ — $ — $ 1,326 Other — — 17 — 17 Revenue recognized from contracts with customers $ 1,020 $ 306 $ 17 $ — $ 1,343 Leasing income — — 35 — 35 Financing income 2 2 — 61 65 Total operating revenue – CMS Energy $ 1,022 $ 308 $ 52 $ 61 $ 1,443 Consumers Consumers utility revenue Residential $ 507 $ 206 $ 713 Commercial 341 51 392 Industrial 126 7 133 Other 46 42 88 Revenue recognized from contracts with customers $ 1,020 $ 306 $ 1,326 Financing income 2 2 4 Total operating revenue – Consumers $ 1,022 $ 308 $ 1,330 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $21 million for the three months ended June 30, 2020 . In Millions Three Months Ended June 30, 2019 Electric Utility Gas Utility Enterprises¹ EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,026 $ 305 $ — $ — $ 1,331 Other — — 16 — 16 Revenue recognized from contracts with customers $ 1,026 $ 305 $ 16 $ — $ 1,347 Leasing income — — 42 — 42 Financing income 1 2 — 53 56 Total operating revenue – CMS Energy $ 1,027 $ 307 $ 58 $ 53 $ 1,445 Consumers Consumers utility revenue Residential $ 423 $ 198 $ 621 Commercial 362 58 420 Industrial 174 8 182 Other 67 41 108 Revenue recognized from contracts with customers $ 1,026 $ 305 $ 1,331 Financing income 1 2 3 Total operating revenue – Consumers $ 1,027 $ 307 $ 1,334 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $29 million for the three months ended June 30, 2019 . In Millions Six Months Ended June 30, 2020 Electric Utility Gas Utility Enterprises¹ EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,045 $ 1,020 $ — $ — $ 3,065 Other — — 36 — 36 Revenue recognized from contracts with customers $ 2,045 $ 1,020 $ 36 $ — $ 3,101 Leasing income — — 74 — 74 Financing income 5 4 — 123 132 Total operating revenue – CMS Energy $ 2,050 $ 1,024 $ 110 $ 123 $ 3,307 Consumers Consumers utility revenue Residential $ 988 $ 699 $ 1,687 Commercial 680 200 880 Industrial 266 27 293 Other 111 94 205 Revenue recognized from contracts with customers $ 2,045 $ 1,020 $ 3,065 Financing income 5 4 9 Total operating revenue – Consumers $ 2,050 $ 1,024 $ 3,074 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $46 million for the six months ended June 30, 2020 . In Millions Six Months Ended June 30, 2019 Electric Utility Gas Utility Enterprises¹ EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,126 $ 1,143 $ — $ — $ 3,269 Other — — 35 — 35 Revenue recognized from contracts with customers $ 2,126 $ 1,143 $ 35 $ — $ 3,304 Leasing income — — 90 — 90 Financing income 4 4 — 102 110 Total operating revenue – CMS Energy $ 2,130 $ 1,147 $ 125 $ 102 $ 3,504 Consumers Consumers utility revenue Residential $ 946 $ 787 $ 1,733 Commercial 713 232 945 Industrial 336 33 369 Other 131 91 222 Revenue recognized from contracts with customers $ 2,126 $ 1,143 $ 3,269 Financing income 4 4 8 Total operating revenue – Consumers $ 2,130 $ 1,147 $ 3,277 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $63 million for the six months ended June 30, 2019 . |
Consumers Energy Company | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Components Of Operating Revenue | Presented in the following tables are the components of operating revenue: In Millions Three Months Ended June 30, 2020 Electric Utility Gas Utility Enterprises¹ EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,020 $ 306 $ — $ — $ 1,326 Other — — 17 — 17 Revenue recognized from contracts with customers $ 1,020 $ 306 $ 17 $ — $ 1,343 Leasing income — — 35 — 35 Financing income 2 2 — 61 65 Total operating revenue – CMS Energy $ 1,022 $ 308 $ 52 $ 61 $ 1,443 Consumers Consumers utility revenue Residential $ 507 $ 206 $ 713 Commercial 341 51 392 Industrial 126 7 133 Other 46 42 88 Revenue recognized from contracts with customers $ 1,020 $ 306 $ 1,326 Financing income 2 2 4 Total operating revenue – Consumers $ 1,022 $ 308 $ 1,330 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $21 million for the three months ended June 30, 2020 . In Millions Three Months Ended June 30, 2019 Electric Utility Gas Utility Enterprises¹ EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,026 $ 305 $ — $ — $ 1,331 Other — — 16 — 16 Revenue recognized from contracts with customers $ 1,026 $ 305 $ 16 $ — $ 1,347 Leasing income — — 42 — 42 Financing income 1 2 — 53 56 Total operating revenue – CMS Energy $ 1,027 $ 307 $ 58 $ 53 $ 1,445 Consumers Consumers utility revenue Residential $ 423 $ 198 $ 621 Commercial 362 58 420 Industrial 174 8 182 Other 67 41 108 Revenue recognized from contracts with customers $ 1,026 $ 305 $ 1,331 Financing income 1 2 3 Total operating revenue – Consumers $ 1,027 $ 307 $ 1,334 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $29 million for the three months ended June 30, 2019 . In Millions Six Months Ended June 30, 2020 Electric Utility Gas Utility Enterprises¹ EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,045 $ 1,020 $ — $ — $ 3,065 Other — — 36 — 36 Revenue recognized from contracts with customers $ 2,045 $ 1,020 $ 36 $ — $ 3,101 Leasing income — — 74 — 74 Financing income 5 4 — 123 132 Total operating revenue – CMS Energy $ 2,050 $ 1,024 $ 110 $ 123 $ 3,307 Consumers Consumers utility revenue Residential $ 988 $ 699 $ 1,687 Commercial 680 200 880 Industrial 266 27 293 Other 111 94 205 Revenue recognized from contracts with customers $ 2,045 $ 1,020 $ 3,065 Financing income 5 4 9 Total operating revenue – Consumers $ 2,050 $ 1,024 $ 3,074 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $46 million for the six months ended June 30, 2020 . In Millions Six Months Ended June 30, 2019 Electric Utility Gas Utility Enterprises¹ EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,126 $ 1,143 $ — $ — $ 3,269 Other — — 35 — 35 Revenue recognized from contracts with customers $ 2,126 $ 1,143 $ 35 $ — $ 3,304 Leasing income — — 90 — 90 Financing income 4 4 — 102 110 Total operating revenue – CMS Energy $ 2,130 $ 1,147 $ 125 $ 102 $ 3,504 Consumers Consumers utility revenue Residential $ 946 $ 787 $ 1,733 Commercial 713 232 945 Industrial 336 33 369 Other 131 91 222 Revenue recognized from contracts with customers $ 2,126 $ 1,143 $ 3,269 Financing income 4 4 8 Total operating revenue – Consumers $ 2,130 $ 1,147 $ 3,277 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $63 million for the six months ended June 30, 2019 . |
Cash And Cash Equivalents (Tabl
Cash And Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Cash and Cash Equivalents [Line Items] | |
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts | Presented in the following table are the components of total cash and cash equivalents, including restricted amounts , and their location on CMS Energy’s and Consumers’ consolidated balance sheets : In Millions June 30, 2020 December 31, 2019 CMS Energy, including Consumers Cash and cash equivalents $ 1,587 $ 140 Restricted cash and cash equivalents 17 17 Cash and cash equivalents, including restricted amounts $ 1,604 $ 157 Consumers Cash and cash equivalents $ 1,215 $ 11 Restricted cash and cash equivalents 14 17 Cash and cash equivalents, including restricted amounts $ 1,229 $ 28 |
Consumers Energy Company | |
Cash and Cash Equivalents [Line Items] | |
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts | Presented in the following table are the components of total cash and cash equivalents, including restricted amounts , and their location on CMS Energy’s and Consumers’ consolidated balance sheets : In Millions June 30, 2020 December 31, 2019 CMS Energy, including Consumers Cash and cash equivalents $ 1,587 $ 140 Restricted cash and cash equivalents 17 17 Cash and cash equivalents, including restricted amounts $ 1,604 $ 157 Consumers Cash and cash equivalents $ 1,215 $ 11 Restricted cash and cash equivalents 14 17 Cash and cash equivalents, including restricted amounts $ 1,229 $ 28 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | |
Schedule Of Financial Information By Reportable Segments | Presented in the following tables is financial information by segment: In Millions Three Months Ended Six Months Ended June 30 2020 2019 2020 2019 CMS Energy, including Consumers Operating revenue Electric utility $ 1,022 $ 1,027 $ 2,050 $ 2,130 Gas utility 308 307 1,024 1,147 Enterprises 52 58 110 125 EnerBank 61 53 123 102 Total operating revenue – CMS Energy $ 1,443 $ 1,445 $ 3,307 $ 3,504 Consumers Operating revenue Electric utility $ 1,022 $ 1,027 $ 2,050 $ 2,130 Gas utility 308 307 1,024 1,147 Total operating revenue – Consumers $ 1,330 $ 1,334 $ 3,074 $ 3,277 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 119 $ 90 $ 237 $ 195 Gas utility 41 8 158 129 Enterprises¹ 1 16 21 23 EnerBank¹ 8 10 22 21 Other reconciling items¹ (33 ) (31 ) (59 ) (62 ) Total net income available to common stockholders – CMS Energy $ 136 $ 93 $ 379 $ 306 Consumers Net income (loss) available to common stockholder Electric utility $ 119 $ 90 $ 237 $ 195 Gas utility 41 8 158 129 Other reconciling items (1 ) (1 ) (1 ) (1 ) Total net income available to common stockholder – Consumers $ 159 $ 97 $ 394 $ 323 1 Prior period amounts have been reclassified to reflect changes in segment reporting. In Millions June 30, 2020 December 31, 2019 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility¹ $ 16,447 $ 16,158 Gas utility¹ 9,001 8,785 Enterprises 408 405 EnerBank 35 22 Other reconciling items 20 20 Total plant, property, and equipment, gross – CMS Energy $ 25,911 $ 25,390 Consumers Plant, property, and equipment, gross Electric utility¹ $ 16,447 $ 16,158 Gas utility¹ 9,001 8,785 Other reconciling items 20 20 Total plant, property, and equipment, gross – Consumers $ 25,468 $ 24,963 CMS Energy, including Consumers Total assets Electric utility¹ $ 15,925 $ 14,911 Gas utility¹ 9,006 8,659 Enterprises 542 527 EnerBank 2,799 2,692 Other reconciling items 309 48 Total assets – CMS Energy $ 28,581 $ 26,837 Consumers Total assets Electric utility¹ $ 15,987 $ 14,973 Gas utility¹ 9,052 8,706 Other reconciling items 21 20 Total assets – Consumers $ 25,060 $ 23,699 1 Amounts 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 Ended Six Months Ended June 30 2020 2019 2020 2019 CMS Energy, including Consumers Operating revenue Electric utility $ 1,022 $ 1,027 $ 2,050 $ 2,130 Gas utility 308 307 1,024 1,147 Enterprises 52 58 110 125 EnerBank 61 53 123 102 Total operating revenue – CMS Energy $ 1,443 $ 1,445 $ 3,307 $ 3,504 Consumers Operating revenue Electric utility $ 1,022 $ 1,027 $ 2,050 $ 2,130 Gas utility 308 307 1,024 1,147 Total operating revenue – Consumers $ 1,330 $ 1,334 $ 3,074 $ 3,277 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 119 $ 90 $ 237 $ 195 Gas utility 41 8 158 129 Enterprises¹ 1 16 21 23 EnerBank¹ 8 10 22 21 Other reconciling items¹ (33 ) (31 ) (59 ) (62 ) Total net income available to common stockholders – CMS Energy $ 136 $ 93 $ 379 $ 306 Consumers Net income (loss) available to common stockholder Electric utility $ 119 $ 90 $ 237 $ 195 Gas utility 41 8 158 129 Other reconciling items (1 ) (1 ) (1 ) (1 ) Total net income available to common stockholder – Consumers $ 159 $ 97 $ 394 $ 323 1 Prior period amounts have been reclassified to reflect changes in segment reporting. In Millions June 30, 2020 December 31, 2019 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility¹ $ 16,447 $ 16,158 Gas utility¹ 9,001 8,785 Enterprises 408 405 EnerBank 35 22 Other reconciling items 20 20 Total plant, property, and equipment, gross – CMS Energy $ 25,911 $ 25,390 Consumers Plant, property, and equipment, gross Electric utility¹ $ 16,447 $ 16,158 Gas utility¹ 9,001 8,785 Other reconciling items 20 20 Total plant, property, and equipment, gross – Consumers $ 25,468 $ 24,963 CMS Energy, including Consumers Total assets Electric utility¹ $ 15,925 $ 14,911 Gas utility¹ 9,006 8,659 Enterprises 542 527 EnerBank 2,799 2,692 Other reconciling items 309 48 Total assets – CMS Energy $ 28,581 $ 26,837 Consumers Total assets Electric utility¹ $ 15,987 $ 14,973 Gas utility¹ 9,052 8,706 Other reconciling items 21 20 Total assets – Consumers $ 25,060 $ 23,699 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. |
Exit Activities - (Tables)
Exit Activities - (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost | Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets : In Millions June 30, 2020 Six Months Ended Retention benefit liability at beginning of period $ 4 Costs incurred and charged to maintenance and other operating expenses¹ 7 Costs incurred and capitalized 1 Retention benefit liability at the end of the period² $ 12 1 Includes $3 million for the three months ended June 30, 2020 . 2 Includes current portion of other liabilities of $5 million . |
Consumers Energy Company | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost | Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets : In Millions June 30, 2020 Six Months Ended Retention benefit liability at beginning of period $ 4 Costs incurred and charged to maintenance and other operating expenses¹ 7 Costs incurred and capitalized 1 Retention benefit liability at the end of the period² $ 12 1 Includes $3 million for the three months ended June 30, 2020 . 2 Includes current portion of other liabilities of $5 million |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jan. 01, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reduction to income | $ (164) | $ (114) | $ (434) | $ (375) | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||
Cumulative effect of change in accounting principle | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Tax impact of ASU 2016-13 | $ 14 | ||||
Financing Receivables and Unfunded Loan Commitments | Cumulative effect of change in accounting principle | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for expected credit losses | $ 65 | ||||
Accounting Standards Update 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reduction to income | $ 9 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Public Utilities, General Disclosures [Line Items] | |||||
Regulatory assets, noncurrent | $ 2,485 | $ 2,485 | $ 2,489 | ||
Regulatory liabilities | 84 | 84 | 87 | ||
Revenue | 1,443 | $ 1,445 | 3,307 | $ 3,504 | |
Consumers Energy Company | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Regulatory assets, noncurrent | 2,485 | 2,485 | 2,489 | ||
Regulatory liabilities | 84 | 84 | 87 | ||
Revenue | 1,330 | $ 1,334 | 3,074 | $ 3,277 | |
Gain Shared with Customers for Substation Transmission Assets to METC | Consumers Energy Company | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Regulatory liabilities | 15 | 15 | 17 | ||
Energy Waste Reduction Plan Incentive | Consumers Energy Company | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Requested recovery collection | 34 | 34 | |||
Revenue | $ 34 | ||||
COVID-19 Costs Accounting Deferral | Consumers Energy Company | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Regulatory assets, noncurrent | $ 9 | $ 9 |
Contingencies And Commitments_2
Contingencies And Commitments (Contingencies And Commitments) (Details) $ in Thousands | Jan. 31, 2019USD ($) | May 30, 2020USD ($) | Jan. 31, 2019USD ($) | Jun. 30, 2020USD ($)site | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)lawsuitsite | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)lawsuit | Mar. 31, 2020USD ($) |
Loss Contingencies [Line Items] | |||||||||
Regulatory assets | $ 2,485,000 | $ 2,485,000 | $ 2,489,000 | ||||||
Consumers Energy Company | |||||||||
Loss Contingencies [Line Items] | |||||||||
Regulatory assets | 2,485,000 | 2,485,000 | $ 2,489,000 | ||||||
Cost of gas sold | 80,000 | $ 104,000 | 350,000 | $ 505,000 | |||||
Bay Harbor | |||||||||
Loss Contingencies [Line Items] | |||||||||
Accrual for obligations for environmental remediation | $ 45,000 | $ 45,000 | |||||||
Discounted projected costs rate | 4.34% | 4.34% | |||||||
Accrual for environmental loss contingencies, inflation rate | 1.00% | 1.00% | |||||||
Remaining undiscounted obligation amount | $ 56,000 | $ 56,000 | |||||||
Electric Utility | NREPA | Consumers Energy Company | |||||||||
Loss Contingencies [Line Items] | |||||||||
Accrual for obligations for environmental remediation | 3,000 | 3,000 | |||||||
Electric Utility | NREPA | Minimum | Consumers Energy Company | |||||||||
Loss Contingencies [Line Items] | |||||||||
Remediation and other response activity costs | 3,000 | 3,000 | |||||||
Electric Utility | NREPA | Maximum | Consumers Energy Company | |||||||||
Loss Contingencies [Line Items] | |||||||||
Remediation and other response activity costs | 4,000 | 4,000 | |||||||
Electric Utility | CERCLA Liability | Consumers Energy Company | |||||||||
Loss Contingencies [Line Items] | |||||||||
Accrual for obligations for environmental remediation | 3,000 | 3,000 | |||||||
Electric Utility | CERCLA Liability | Minimum | Consumers Energy Company | |||||||||
Loss Contingencies [Line Items] | |||||||||
Remediation and other response activity costs | 3,000 | 3,000 | |||||||
Electric Utility | CERCLA Liability | Maximum | Consumers Energy Company | |||||||||
Loss Contingencies [Line Items] | |||||||||
Remediation and other response activity costs | 8,000 | 8,000 | |||||||
Gas Utility | NREPA | Maximum | Consumers Energy Company | |||||||||
Loss Contingencies [Line Items] | |||||||||
Accrual for obligations for environmental remediation | 1,000 | 1,000 | |||||||
Remediation and other response activity costs | 3,000 | 3,000 | |||||||
Gas Utility | Manufactured Gas Plant | Consumers Energy Company | |||||||||
Loss Contingencies [Line Items] | |||||||||
Accrual for obligations for environmental remediation | $ 63,000 | $ 63,000 | |||||||
Discounted projected costs rate | 2.57% | 2.57% | |||||||
Accrual for environmental loss contingencies, inflation rate | 2.50% | 2.50% | |||||||
Remaining undiscounted obligation amount | $ 67,000 | $ 67,000 | |||||||
Number of former MGPs | site | 23 | 23 | |||||||
Authorized recovery, collection period | 10 years | ||||||||
Regulatory assets | $ 126,000 | $ 126,000 | |||||||
Equatorial Guinea Tax Claim | |||||||||
Loss Contingencies [Line Items] | |||||||||
Foreign government tax claim on sale | $ 152,000 | ||||||||
Class Action Lawsuits | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of lawsuits | lawsuit | 4 | ||||||||
Individual Lawsuits | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of lawsuits | lawsuit | 1 | ||||||||
Gas Index Price Reporting Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of lawsuits | lawsuit | 2 | ||||||||
Estimated litigation liability | $ 30,000 | ||||||||
MCV PPA | Consumers Energy Company | |||||||||
Loss Contingencies [Line Items] | |||||||||
Foreign government tax claim on sale | $ 270,000 | ||||||||
Underwater cables Straits of Mackinac | Minimum | Consumers Energy Company | |||||||||
Loss Contingencies [Line Items] | |||||||||
Asset retirement obligation | $ 5,000 | ||||||||
Civil Case, Consumers V. MPSC Staff [Member] | Consumers Energy Company | |||||||||
Loss Contingencies [Line Items] | |||||||||
Civil penalty settlement | $ 10 | ||||||||
Ray Compressor Station | Consumers Energy Company | |||||||||
Loss Contingencies [Line Items] | |||||||||
Cost of gas sold | $ 7,000 | ||||||||
Capital expenditures | $ 12,000 |
Contingencies And Commitments_3
Contingencies And Commitments (Expected Remediation Cost By Year) (Details) $ in Millions | Jun. 30, 2020USD ($) |
Bay Harbor | |
Site Contingency [Line Items] | |
2020 | $ 3 |
2021 | 4 |
2022 | 4 |
2023 | 4 |
2024 | 4 |
2025 | 4 |
Gas Utility | Manufactured Gas Plant | Consumers Energy Company | |
Site Contingency [Line Items] | |
2020 | 7 |
2021 | 8 |
2022 | 20 |
2023 | 11 |
2024 | 2 |
2025 | $ 2 |
Contingencies And Commitments_4
Contingencies And Commitments (Guarantees) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Guarantees | |
Guarantees And Other Contingencies [Line Items] | |
Guarantee Description | Guarantees |
Expiration Date | indefinite |
Maximum Obligation | $ 30 |
Carrying Amount | $ 0 |
Guarantees | Consumers Energy Company | |
Guarantees And Other Contingencies [Line Items] | |
Guarantee Description | Guarantee |
Expiration Date | indefinite |
Maximum Obligation | $ 30 |
Carrying Amount | $ 0 |
Indemnity Obligations From Stock And Asset Sales Agreements | |
Guarantees And Other Contingencies [Line Items] | |
Guarantee Description | Indemnity obligations from stock and asset sales agreements |
Expiration Date | indefinite |
Maximum Obligation | $ 153 |
Carrying Amount | 2 |
Tax And Other Indemnity Obligations | Consumers Energy Company | |
Guarantees And Other Contingencies [Line Items] | |
Carrying Amount | $ 1 |
Financings and Capitalization_2
Financings and Capitalization (Major Long-Term Debt Transactions) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Debt Instrument [Line Items] | |
Principal balance | $ 2,334 |
Consumers Energy Company | |
Debt Instrument [Line Items] | |
Principal balance | 1,534 |
First Mortgage Bonds Due August 2051 | Consumers Energy Company | |
Debt Instrument [Line Items] | |
Principal balance | $ 575 |
Interest Rate | 3.50% |
First Mortgage Bonds Due May 2060 | Consumers Energy Company | |
Debt Instrument [Line Items] | |
Principal balance | $ 525 |
Interest Rate | 2.50% |
First Mortgage Bonds Due May 2070 | Consumers Energy Company | |
Debt Instrument [Line Items] | |
Principal balance | $ 134 |
Effective interest rate | 0.077% |
CMS Energy Corporation | |
Debt Instrument [Line Items] | |
Principal balance | $ 800 |
CMS Energy Corporation | Junior subordinated notes | |
Debt Instrument [Line Items] | |
Principal balance | $ 500 |
Interest Rate | 4.75% |
Debt instrument interest rate reset term | 5 years |
London Interbank Offered Rate (LIBOR) | First Mortgage Bonds Due May 2070 | Consumers Energy Company | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.30% |
Five-year Treasury Rate | CMS Energy Corporation | Junior subordinated notes | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 4.116% |
Term Loan Facility Due February 2021 | CMS Energy Corporation | Term loan facility | |
Debt Instrument [Line Items] | |
Principal balance | $ 300 |
Effective interest rate | 1.572% |
Term Loan Facility Due February 2021 | London Interbank Offered Rate (LIBOR) | CMS Energy Corporation | Term loan facility | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.50% |
Term loan facility due January 2021 | Term loan facility | Consumers Energy Company | |
Debt Instrument [Line Items] | |
Principal balance | $ 300 |
Effective interest rate | 0.556% |
Term loan facility due January 2021 | London Interbank Offered Rate (LIBOR) | Term loan facility | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.45% |
Financings and Capitalization F
Financings and Capitalization Financings and Capitalization (Debt Retirements) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Debt Instrument [Line Items] | |
Redemption of debt | $ 350 |
Consumers Energy Company | |
Debt Instrument [Line Items] | |
Redemption of debt | 350 |
Consumers Energy Company | First Mortgage Bonds due October 2020 | |
Debt Instrument [Line Items] | |
Redemption of debt | $ 100 |
Interest Rate | 3.77% |
Consumers Energy Company | First Mortgage Bonds Due September 2022 | |
Debt Instrument [Line Items] | |
Redemption of debt | $ 250 |
Interest Rate | 5.30% |
Financings and Capitalization_3
Financings and Capitalization (Revolving Credit Facilities) (Details) | Jun. 30, 2020USD ($) |
Revolving Credit Facilities September 30, 2025 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | $ 18,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 8,000,000 |
Amount Available | 10,000,000 |
Revolving Credit Facilities June 5, 2023 | Consumers Energy Company | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 850,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 7,000,000 |
Amount Available | 843,000,000 |
Revolving Credit Facilities November 19, 2021 | Consumers Energy Company | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 250,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 1,000,000 |
Amount Available | 249,000,000 |
Revolving Credit Facilities April 18, 2022 | Consumers Energy Company | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 30,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 30,000,000 |
Amount Available | 0 |
CMS Energy Corporation | Revolving Credit Facilities June 5, 2023 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 550,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 5,000,000 |
Amount Available | 545,000,000 |
Letter of Credit | Revolving Credit Facilities September 30, 2025 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | $ 8,000,000 |
Financings and Capitalization_4
Financings and Capitalization (Narrative) (Details) - USD ($) | Jun. 30, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Jul. 31, 2020 |
Financing And Capitalization [Line Items] | ||||||||
Amount available for dividend payments | $ 5,200,000,000 | $ 5,200,000,000 | ||||||
Common stock dividends from Consumers | 276,000,000 | |||||||
Stock offering program maximum value | $ 500,000,000 | $ 250,000,000 | ||||||
Proceeds from settlement of forward contracts | $ 104,000,000 | $ 6,000,000 | ||||||
Settlement required (in shares) | 390,008 | 390,008 | ||||||
Consumers Energy Company | ||||||||
Financing And Capitalization [Line Items] | ||||||||
Unrestricted retained earnings | $ 1,600,000,000 | $ 1,600,000,000 | ||||||
Consumers Energy Company | Commercial Paper | ||||||||
Financing And Capitalization [Line Items] | ||||||||
Short-term debt, authorized borrowings | 500,000,000 | |||||||
Short-term debt | 0 | $ 0 | ||||||
Forward Contracts | ||||||||
Financing And Capitalization [Line Items] | ||||||||
Forward sales contracts aggregate price | $ 150,000,000 | $ 250,000,000 | ||||||
Settlement of Forward Contracts | ||||||||
Financing And Capitalization [Line Items] | ||||||||
Settlement of forward contract issued (in shares) | 2,017,783 | |||||||
Forward contract settlement (in dollars per share) | $ 47.95 | |||||||
Proceeds from settlement of forward contracts | $ 97,000,000 | |||||||
Subsequent Event | Tax Exempt Revenue Bonds | Tax Exempt Revenue Bonds Due 2035 | Consumers Energy Company | ||||||||
Financing And Capitalization [Line Items] | ||||||||
Debt repurchased | $ 35,000,000 |
Financings and Capitalization_5
Financings and Capitalization (Forward Stock Contracts) (Details) - $ / shares | Jun. 30, 2020 | Feb. 21, 2019 | Nov. 20, 2018 |
Forward Contracts Entered Into November 2018 and Maturing March 2021 | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of Shares | 777,899 | ||
Initial forward price (in dollars per share) | $ 49.32 | $ 50.91 | |
Forward Contracts Entered into February 2019 and Maturing March 2021 | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of Shares | 2,083,340 | ||
Initial forward price (in dollars per share) | $ 50.88 | $ 52.27 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Restricted cash and cash equivalents | $ 17 | $ 17 |
Derivative instruments | 3 | 1 |
Liabilities | ||
Derivative instruments | 21 | 8 |
Consumers Energy Company | ||
Assets | ||
Restricted cash and cash equivalents | 14 | 17 |
Derivative instruments | 3 | 1 |
Liabilities | ||
Derivative instruments | 1 | 0 |
Fair Value, Inputs, Level 1 | ||
Assets | ||
Cash equivalents | 100 | 0 |
Restricted cash and cash equivalents | 17 | 17 |
Nonqualified deferred compensation plan assets | 19 | 18 |
Liabilities | ||
Nonqualified deferred compensation plan liabilities | 19 | 18 |
Fair Value, Inputs, Level 1 | Consumers Energy Company | ||
Assets | ||
Cash equivalents | 100 | 0 |
Restricted cash and cash equivalents | 14 | 17 |
Nonqualified deferred compensation plan assets | 15 | 14 |
Liabilities | ||
Nonqualified deferred compensation plan liabilities | 15 | 14 |
Fair Value, Inputs, Level 1 | Common Stock | Consumers Energy Company | ||
Assets | ||
CMS Energy common stock | 1 | 1 |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Assets | ||
Total | 139 | 36 |
Liabilities | ||
Total | 40 | 26 |
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company | ||
Assets | ||
Total | 133 | 33 |
Liabilities | ||
Total | $ 16 | $ 14 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash flow hedge gain (loss) | $ (3) | $ (5) | $ (4) | ||
Derivative instruments | $ 21 | 21 | $ 8 | ||
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative notional amount | 88 | 88 | |||
Cash Flow Hedging | Other Liabilities | Designated as Hedging Instrument | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative instruments | 10 | 10 | 5 | ||
EnerBank | Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Swap Notes Receivable | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative notional amount | 134 | 134 | |||
EnerBank | Fair Value Hedging | Other Liabilities | Designated as Hedging Instrument | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative instruments | 7 | $ 7 | $ 1 | ||
Maximum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash flow hedge gain (loss) | $ (1) |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Securities held to maturity | $ 29 | $ 26 |
Liabilities | ||
EnerBank notes receivable, net of allowance for loan losses | 264 | 242 |
Long-term debt, current | 1,700 | 1,100 |
Other current liabilities | 6 | 1 |
Carrying Amount | ||
Assets | ||
Long-term receivables | 19 | 20 |
Notes receivable | 2,597 | 2,500 |
Securities held to maturity | 29 | 26 |
Liabilities | ||
Long-term debt | 15,139 | 13,062 |
Long-term payables | 31 | 30 |
Fair Value | ||
Assets | ||
Long-term receivables | 19 | 20 |
Notes receivable | 2,896 | 2,652 |
Securities held to maturity | 29 | 26 |
Liabilities | ||
Long-term debt | 17,154 | 14,185 |
Long-term payables | 32 | 32 |
Consumers Energy Company | ||
Liabilities | ||
Long-term debt, current | 537 | 202 |
Current portion notes receivable related party | 7 | 7 |
Consumers Energy Company | Carrying Amount | ||
Assets | ||
Long-term receivables | 19 | 20 |
Notes receivable related party | 103 | 103 |
Liabilities | ||
Long-term debt | 8,404 | 7,250 |
Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 19 | 20 |
Notes receivable related party | 103 | 103 |
Liabilities | ||
Long-term debt | 9,912 | 8,010 |
Other Receivables | ||
Liabilities | ||
Accounts receivable, current | 12 | 13 |
Other Receivables | Consumers Energy Company | ||
Liabilities | ||
Accounts receivable, current | 12 | 13 |
Fair Value, Inputs, Level 1 | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Notes receivable | 0 | 0 |
Securities held to maturity | 0 | 0 |
Liabilities | ||
Long-term debt | 1,150 | 1,197 |
Long-term payables | 0 | 0 |
Fair Value, Inputs, Level 1 | Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Notes receivable related party | 0 | 0 |
Liabilities | ||
Long-term debt | 0 | 0 |
Fair Value, Inputs, Level 2 | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Notes receivable | 0 | 0 |
Securities held to maturity | 29 | 26 |
Liabilities | ||
Long-term debt | 14,290 | 11,048 |
Long-term payables | 0 | 0 |
Fair Value, Inputs, Level 2 | Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Notes receivable related party | 0 | 0 |
Liabilities | ||
Long-term debt | 8,198 | 6,070 |
Fair Value, Inputs, Level 3 | Fair Value | ||
Assets | ||
Long-term receivables | 19 | 20 |
Notes receivable | 2,896 | 2,652 |
Securities held to maturity | 0 | 0 |
Liabilities | ||
Long-term debt | 1,714 | 1,940 |
Long-term payables | 32 | 32 |
Fair Value, Inputs, Level 3 | Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 19 | 20 |
Notes receivable related party | 103 | 103 |
Liabilities | ||
Long-term debt | 1,714 | 1,940 |
EnerBank | ||
Liabilities | ||
EnerBank notes receivable, net of allowance for loan losses | $ 264 | $ 242 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Portion of long-term debt supported by third-party credit enhancements | $ 35 | $ 35 |
Consumers Energy Company | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Portion of long-term debt supported by third-party credit enhancements | $ 35 | $ 35 |
Financial Instruments (Schedu_2
Financial Instruments (Schedule Of Investment Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Held to maturity | ||
Cost | $ 29 | $ 26 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Securities held to maturity | $ 29 | $ 26 |
Notes Receivable (Schedule Of C
Notes Receivable (Schedule Of Current And Non-Current Notes Receivable) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current | ||
EnerBank notes receivable, net of allowance for loan losses | $ 264 | $ 242 |
Non‑current | ||
Total notes receivable | 2,597 | 2,500 |
Consumers Energy Company | ||
Current | ||
DB SERP note receivable – related party | 7 | 7 |
Non‑current | ||
DB SERP note receivable – related party | 96 | 96 |
Total notes receivable | 103 | 103 |
EnerBank | ||
Current | ||
EnerBank notes receivable, net of allowance for loan losses | 264 | 242 |
Non‑current | ||
EnerBank notes receivable, net of allowance for loan losses | $ 2,333 | $ 2,258 |
Notes Receivable (Narrative) (D
Notes Receivable (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
CMS Energy Note Payable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest Rate | 4.10% | |
EnerBank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unearned income | $ 131 | $ 134 |
Delinquent loans | 23 | $ 33 |
EnerBank | Retail Installment Contracts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable purchases | 17 | |
Fair Value Hedging | Designated as Hedging Instrument | EnerBank | Interest Rate Swap Notes Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest rate swap | $ 134 | |
Credit Concentration Risk | FICO Score, between Good and Excellent | EnerBank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk percentage | 85.00% | |
Unfunded Loan Commitment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Off-balance sheet unfunded loan commitments | $ 513 | |
Unfunded Loan Commitment | EnerBank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for expected credit loss on off balance sheet commitments | $ 9 | |
Loans Originated Within Last Five Years | Credit Concentration Risk | EnerBank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk percentage | 97.00% |
Notes Receivable - Schedule of
Notes Receivable - Schedule of Allowance For Loan Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||
EnerBank | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 99 | $ 33 | ||
Effects of new accounting standard | 104 | 104 | $ 104 | |
Provisions for loan losses | 13 | 26 | ||
Charge-offs | (9) | (20) | ||
Recoveries | 1 | 3 | ||
Balance at end of period | 104 | 104 | ||
EnerBank | Cumulative effect of change in accounting principle | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 0 | 62 | ||
Effects of new accounting standard | $ 0 | $ 62 | ||
Unfunded Loan Commitment | EnerBank | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for expected credit loss on off balance sheet commitments | $ 9 | |||
Unfunded Loan Commitment | EnerBank | Cumulative effect of change in accounting principle | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for expected credit loss on off balance sheet commitments | $ 3 |
Retirement Benefits (Schedule O
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
DB Pension Plans | ||||
Net periodic cost (credit) | ||||
Service cost | $ 13 | $ 10 | $ 25 | $ 20 |
Interest cost | 20 | 24 | 41 | 49 |
Expected return on plan assets | (48) | (41) | (96) | (81) |
Amortization of: | ||||
Net loss | 22 | 12 | 44 | 24 |
Prior service cost (credit) | 1 | 1 | 1 | 1 |
Net periodic cost (credit) | 8 | 6 | 15 | 13 |
DB Pension Plans | Consumers Energy Company | ||||
Net periodic cost (credit) | ||||
Service cost | 12 | 10 | 24 | 20 |
Interest cost | 19 | 23 | 39 | 46 |
Expected return on plan assets | (46) | (38) | (91) | (76) |
Amortization of: | ||||
Net loss | 21 | 11 | 42 | 23 |
Prior service cost (credit) | 1 | 1 | 1 | 1 |
Net periodic cost (credit) | 7 | 7 | 15 | 14 |
OPEB Plan | ||||
Net periodic cost (credit) | ||||
Service cost | 4 | 3 | 8 | 7 |
Interest cost | 9 | 10 | 17 | 20 |
Expected return on plan assets | (25) | (22) | (50) | (44) |
Amortization of: | ||||
Net loss | 3 | 6 | 7 | 13 |
Prior service cost (credit) | (14) | (15) | (28) | (31) |
Net periodic cost (credit) | (23) | (18) | (46) | (35) |
OPEB Plan | Consumers Energy Company | ||||
Net periodic cost (credit) | ||||
Service cost | 4 | 4 | 8 | 7 |
Interest cost | 8 | 10 | 16 | 20 |
Expected return on plan assets | (24) | (20) | (47) | (41) |
Amortization of: | ||||
Net loss | 3 | 6 | 7 | 13 |
Prior service cost (credit) | (13) | (16) | (27) | (31) |
Net periodic cost (credit) | $ (22) | $ (16) | $ (43) | $ (32) |
Retirement Benefits Retirement
Retirement Benefits Retirement Benefits (Narrative) (Details) - DB Pension Plans $ in Millions | 1 Months Ended |
Jan. 31, 2020USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions by employer | $ 531 |
Consumers Energy Company | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions by employer | $ 518 |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2017 | |
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 | 4.60% | 5.40% | ||
TCJA excess deferred taxes | (4.00%) | (3.50%) | ||
Production tax credits | (2.80%) | (2.50%) | ||
Research and development tax credits, net | (2.20%) | (0.20%) | ||
Alternative minimum tax sequestration | (2.10%) | 0.00% | ||
Accelerated flow-through of regulatory tax benefits | (1.50%) | (1.50%) | ||
Other, net | (0.60%) | (0.60%) | ||
Effective tax rate | 12.40% | 18.10% | ||
AMT sequestration income tax benefit | $ 9 | |||
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 | 5.00% | 5.70% | ||
TCJA excess deferred taxes | (3.60%) | (3.20%) | ||
Production tax credits | (1.60%) | (1.30%) | ||
Research and development tax credits, net | (1.90%) | (0.20%) | ||
Accelerated flow-through of regulatory tax benefits | (1.60%) | (1.80%) | ||
Other, net | (0.50%) | (0.40%) | ||
Effective tax rate | 16.80% | 19.80% | ||
Reduction of income tax expense | $ 7 | $ 7 | ||
Research Tax Credit Carryforward | ||||
Increase (decrease) in income taxes from: | ||||
Increase in credit | 9 | |||
Research Tax Credit Carryforward | Consumers Energy Company | ||||
Increase (decrease) in income taxes from: | ||||
Increase in credit | $ 8 | |||
Plant, Property, And Equipment (Subject To Normalization) | Consumers Energy Company | ||||
Increase (decrease) in income taxes from: | ||||
Regulatory liabilities | $ 1,600 |
Earnings Per Share - CMS Ener_3
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income available to common stockholders | ||||
Net income | $ 137 | $ 94 | $ 380 | $ 307 |
Income Attributable to Noncontrolling Interests | 1 | 1 | 1 | 1 |
Net Income Available to Common Stockholders | $ 136 | $ 93 | $ 379 | $ 306 |
Average common shares outstanding | ||||
Weighted average shares - basic (in shares) | 285.5 | 282.9 | 284.4 | 282.9 |
Dilutive nonvested stock awards (in shares) | 0.6 | 0.6 | 0.7 | 0.6 |
Dilutive forward equity sale contracts (in shares) | 0.4 | 0.5 | 0.7 | 0.3 |
Weighted average shares - diluted (in shares) | 286.5 | 284 | 285.8 | 283.8 |
Net income per average common share available to common stockholders | ||||
Basic earnings per average common share (in dollars per share) | $ 0.48 | $ 0.33 | $ 1.33 | $ 1.08 |
Diluted earnings per average common share (in dollars per share) | $ 0.48 | $ 0.33 | $ 1.33 | $ 1.08 |
Revenue (Components Of Operatin
Revenue (Components Of Operating Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | $ 1,343 | $ 1,347 | $ 3,101 | $ 3,304 |
Leasing income | 35 | 42 | 74 | 90 |
Financing income | 65 | 56 | 132 | 110 |
Total operating revenue | 1,443 | 1,445 | 3,307 | 3,504 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 17 | 16 | 36 | 35 |
Consumers Energy Company | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 1,326 | 1,331 | 3,065 | 3,269 |
Financing income | 4 | 3 | 9 | 8 |
Total operating revenue | 1,330 | 1,334 | 3,074 | 3,277 |
Consumers Energy Company | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 713 | 621 | 1,687 | 1,733 |
Consumers Energy Company | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 392 | 420 | 880 | 945 |
Consumers Energy Company | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 133 | 182 | 293 | 369 |
Consumers Energy Company | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 88 | 108 | 205 | 222 |
Operating Segments | Electric Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 1,020 | 1,026 | 2,045 | 2,126 |
Financing income | 2 | 1 | 5 | 4 |
Total operating revenue | 1,022 | 1,027 | 2,050 | 2,130 |
Operating Segments | Gas Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 306 | 305 | 1,020 | 1,143 |
Financing income | 2 | 2 | 4 | 4 |
Total operating revenue | 308 | 307 | 1,024 | 1,147 |
Operating Segments | Enterprises | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 17 | 16 | 36 | 35 |
Leasing income | 35 | 42 | 74 | 90 |
Total operating revenue | 52 | 58 | 110 | 125 |
Variable lease income | 21 | 29 | 46 | 63 |
Operating Segments | Enterprises | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 17 | 16 | 36 | 35 |
Operating Segments | EnerBank | ||||
Disaggregation of Revenue [Line Items] | ||||
Financing income | 61 | 53 | 123 | 102 |
Total operating revenue | 61 | 53 | 123 | 102 |
Operating Segments | Consumers Energy Company | Electric Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 1,020 | 1,026 | 2,045 | 2,126 |
Financing income | 2 | 1 | 5 | 4 |
Total operating revenue | 1,022 | 1,027 | 2,050 | 2,130 |
Operating Segments | Consumers Energy Company | Electric Utility | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 507 | 423 | 988 | 946 |
Operating Segments | Consumers Energy Company | Electric Utility | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 341 | 362 | 680 | 713 |
Operating Segments | Consumers Energy Company | Electric Utility | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 126 | 174 | 266 | 336 |
Operating Segments | Consumers Energy Company | Electric Utility | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 46 | 67 | 111 | 131 |
Operating Segments | Consumers Energy Company | Gas Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 306 | 305 | 1,020 | 1,143 |
Financing income | 2 | 2 | 4 | 4 |
Total operating revenue | 308 | 307 | 1,024 | 1,147 |
Operating Segments | Consumers Energy Company | Gas Utility | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 206 | 198 | 699 | 787 |
Operating Segments | Consumers Energy Company | Gas Utility | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 51 | 58 | 200 | 232 |
Operating Segments | Consumers Energy Company | Gas Utility | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 7 | 8 | 27 | 33 |
Operating Segments | Consumers Energy Company | Gas Utility | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | $ 42 | $ 41 | $ 94 | $ 91 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Uncollectable expense | $ 8 | $ 6 | $ 13 | $ 12 | |
Regulatory assets | 2,485 | 2,485 | $ 2,489 | ||
Consumers Energy Company | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Regulatory assets | 2,485 | 2,485 | 2,489 | ||
Unbilled receivables | 326 | 326 | $ 426 | ||
COVID-19 Costs Accounting Deferral | Consumers Energy Company | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Regulatory assets | $ 9 | $ 9 |
Cash And Cash Equivalents (Sche
Cash And Cash Equivalents (Schedule Of Cash And Cash Equivalents, Including Restricted Amounts) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 1,587 | $ 140 | ||
Restricted cash and cash equivalents | 17 | 17 | ||
Cash and cash equivalents, including restricted amounts | 1,604 | 157 | $ 334 | $ 175 |
Consumers Energy Company | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 1,215 | 11 | ||
Restricted cash and cash equivalents | 14 | 17 | ||
Cash and cash equivalents, including restricted amounts | $ 1,229 | $ 28 | $ 212 | $ 56 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Operating Revenue | $ 1,443 | $ 1,445 | $ 3,307 | $ 3,504 | |
Net income (loss) available to common stockholders | 136 | 93 | 379 | 306 | |
Plant, property, and equipment, gross | 25,911 | 25,911 | $ 25,390 | ||
Total Assets | 28,581 | 28,581 | 26,837 | ||
Consumers Energy Company | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 1,330 | 1,334 | 3,074 | 3,277 | |
Net income (loss) available to common stockholder | 159 | 97 | 394 | 323 | |
Plant, property, and equipment, gross | 25,468 | 25,468 | 24,963 | ||
Total Assets | 25,060 | 25,060 | 23,699 | ||
Operating Segments | Electric Utility | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 1,022 | 1,027 | 2,050 | 2,130 | |
Net income (loss) available to common stockholders | 119 | 90 | 237 | 195 | |
Plant, property, and equipment, gross | 16,447 | 16,447 | 16,158 | ||
Total Assets | 15,925 | 15,925 | 14,911 | ||
Operating Segments | Electric Utility | Consumers Energy Company | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 1,022 | 1,027 | 2,050 | 2,130 | |
Net income (loss) available to common stockholder | 119 | 90 | 237 | 195 | |
Plant, property, and equipment, gross | 16,447 | 16,447 | 16,158 | ||
Total Assets | 15,987 | 15,987 | 14,973 | ||
Operating Segments | Gas Utility | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 308 | 307 | 1,024 | 1,147 | |
Net income (loss) available to common stockholders | 41 | 8 | 158 | 129 | |
Plant, property, and equipment, gross | 9,001 | 9,001 | 8,785 | ||
Total Assets | 9,006 | 9,006 | 8,659 | ||
Operating Segments | Gas Utility | Consumers Energy Company | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 308 | 307 | 1,024 | 1,147 | |
Net income (loss) available to common stockholder | 41 | 8 | 158 | 129 | |
Plant, property, and equipment, gross | 9,001 | 9,001 | 8,785 | ||
Total Assets | 9,052 | 9,052 | 8,706 | ||
Operating Segments | Enterprises | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 52 | 58 | 110 | 125 | |
Net income (loss) available to common stockholders | 1 | 16 | 21 | 23 | |
Plant, property, and equipment, gross | 408 | 408 | 405 | ||
Total Assets | 542 | 542 | 527 | ||
Operating Segments | EnerBank | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 61 | 53 | 123 | 102 | |
Net income (loss) available to common stockholders | 8 | 10 | 22 | 21 | |
Plant, property, and equipment, gross | 35 | 35 | 22 | ||
Total Assets | 2,799 | 2,799 | 2,692 | ||
Other reconciling items | |||||
Segment Reporting Information [Line Items] | |||||
Net income (loss) available to common stockholders | (33) | (31) | (59) | (62) | |
Plant, property, and equipment, gross | 20 | 20 | 20 | ||
Total Assets | 309 | 309 | 48 | ||
Other reconciling items | Consumers Energy Company | |||||
Segment Reporting Information [Line Items] | |||||
Net income (loss) available to common stockholder | (1) | $ (1) | (1) | $ (1) | |
Plant, property, and equipment, gross | 20 | 20 | 20 | ||
Total Assets | $ 21 | $ 21 | $ 20 |
Exit Activities - Narrative (De
Exit Activities - Narrative (Details) - D.E. Karn Generating Complex $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Expected cost | $ 35 | $ 35 | $ 35 |
Retention Benefits | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Retention costs | $ 3 | 7 | 11 |
Costs incurred and capitalized | $ 1 | ||
Property, Plant and Equipment | Retention Benefits | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Costs incurred and capitalized | $ 1 |
Exit Activities - Schedule of R
Exit Activities - Schedule of Retention Benefit Liability Roll Forward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Other current liabilities | $ 181 | $ 181 | $ 181 | $ 186 |
Retention Benefits | D.E. Karn Generating Complex | ||||
Restructuring Reserve [Roll Forward] | ||||
Retention benefit liability at beginning of period | 4 | |||
Costs incurred and charged to maintenance and other operating expenses | 3 | 7 | 11 | |
Costs incurred and capitalized | 1 | |||
Retention benefit liability at the end of the period | 12 | 12 | 12 | |
Other current liabilities | $ 5 | $ 5 | $ 5 |