Cover page
Cover page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 12, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-9513 | |
Entity Registrant Name | CMS ENERGY CORPORATION | |
Entity Tax Identification Number | 38-2726431 | |
Entity Incorporation, State or Country Code | MI | |
Entity Address, Address Line One | One Energy Plaza | |
Entity Address, City or Town | Jackson | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 49201 | |
City Area Code | 517 | |
Local Phone Number | 788‑0550 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 289,654,238 | |
Entity Central Index Key | 0000811156 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Consumers Energy Company | ||
Document Information [Line Items] | ||
Entity File Number | 1-5611 | |
Entity Registrant Name | CONSUMERS ENERGY COMPANY | |
Entity Tax Identification Number | 38-0442310 | |
Entity Incorporation, State or Country Code | MI | |
Entity Address, Address Line One | One Energy Plaza | |
Entity Address, City or Town | Jackson | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 49201 | |
City Area Code | 517 | |
Local Phone Number | 788‑0550 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 84,108,789 | |
Entity Central Index Key | 0000201533 | |
CMS Energy Corporation Common Stock, $0.01 par value | ||
Document Information [Line Items] | ||
Title of 12(b) Security | CMS Energy Corporation Common Stock, $0.01 par value | |
Trading Symbol | CMS | |
Security Exchange Name | NYSE | |
CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078 | |
Trading Symbol | CMSA | |
Security Exchange Name | NYSE | |
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078 | |
Trading Symbol | CMSC | |
Security Exchange Name | NYSE | |
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 | |
Trading Symbol | CMSD | |
Security Exchange Name | NYSE | |
CMS Energy Corporation Depositary Shares, each representing a 1/1,000th interest in a share of 4.200% Cumulative Redeemable Perpetual Preferred Stock, Series C | ||
Document Information [Line Items] | ||
Title of 12(b) Security | CMS Energy Corporation Depositary Shares | |
Trading Symbol | CMS-PRC | |
Security Exchange Name | NYSE | |
Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series | |
Trading Symbol | CMS-PB | |
Security Exchange Name | NYSE |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Revenue | $ 1,558 | $ 1,382 | $ 3,571 | $ 3,184 |
Operating Expenses | ||||
Fuel for electric generation | 116 | 63 | 254 | 166 |
Purchased power – related parties | 17 | 14 | 35 | 32 |
Maintenance and other operating expenses | 355 | 316 | 666 | 604 |
Depreciation and amortization | 244 | 222 | 582 | 537 |
General taxes | 87 | 75 | 209 | 188 |
Total operating expenses | 1,306 | 1,134 | 2,889 | 2,601 |
Operating Income | 252 | 248 | 682 | 583 |
Other Income (Expense) | ||||
Interest income | 1 | 1 | 2 | 2 |
Interest and dividend income – related parties | 0 | 0 | 0 | 7 |
Allowance for equity funds used during construction | 2 | 2 | 3 | 3 |
Income (loss) from equity method investees | 2 | (2) | 4 | 1 |
Non-operating retirement benefits, net | 40 | 30 | 81 | 61 |
Other income | 5 | 2 | 6 | 2 |
Other expense | (2) | (1) | (4) | (5) |
Total other income | 48 | 32 | 92 | 71 |
Interest Charges | ||||
Interest on long-term debt | 120 | 121 | 239 | 237 |
Interest expense – related parties | 3 | 3 | 6 | 6 |
Other interest expense | 2 | 3 | 5 | 6 |
Allowance for borrowed funds used during construction | 0 | 0 | (1) | (1) |
Total interest charges | 125 | 127 | 249 | 248 |
Income Before Income Taxes | 175 | 153 | 525 | 406 |
Income Tax Expense | 22 | 24 | 64 | 48 |
Income From Continuing Operations | 153 | 129 | 461 | 358 |
Income From Discontinued Operations, Net of Tax of $7, $3, $16, and $6 | 18 | 8 | 52 | 22 |
Net Income | 171 | 137 | 513 | 380 |
Income (Loss) Attributable to Noncontrolling Interests | (5) | 1 | (12) | 1 |
Net Income Available to Common Stockholders | $ 176 | $ 136 | $ 525 | $ 379 |
Basic earnings per average common share, income from continuing operations per average common share available to common stockholders (in dollars per share) | $ 0.55 | $ 0.45 | $ 1.64 | $ 1.25 |
Basic earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) | 0.06 | 0.03 | 0.18 | 0.08 |
Basic earnings per average common share (in dollars per share) | 0.61 | 0.48 | 1.82 | 1.33 |
Diluted earnings per average common share, income from continuing operations per average common share available to common stockholders (in dollars per share) | 0.55 | 0.45 | 1.64 | 1.25 |
Diluted earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) | 0.06 | 0.03 | 0.18 | 0.08 |
Diluted earnings per average common share (in dollars per share) | $ 0.61 | $ 0.48 | $ 1.82 | $ 1.33 |
Consumers Energy Company | ||||
Operating Revenue | $ 1,493 | $ 1,330 | $ 3,430 | $ 3,074 |
Operating Expenses | ||||
Fuel for electric generation | 87 | 43 | 193 | 122 |
Purchased and interchange power | 383 | 354 | 750 | 701 |
Purchased power – related parties | 17 | 14 | 35 | 32 |
Cost of gas sold | 94 | 80 | 372 | 350 |
Maintenance and other operating expenses | 339 | 302 | 631 | 580 |
Depreciation and amortization | 234 | 218 | 563 | 530 |
General taxes | 82 | 73 | 200 | 184 |
Total operating expenses | 1,236 | 1,084 | 2,744 | 2,499 |
Operating Income | 257 | 246 | 686 | 575 |
Other Income (Expense) | ||||
Interest income | 0 | 1 | 1 | 2 |
Interest and dividend income – related parties | 2 | 1 | 3 | 2 |
Allowance for equity funds used during construction | 2 | 2 | 3 | 3 |
Non-operating retirement benefits, net | 38 | 28 | 76 | 57 |
Other income | 5 | 2 | 6 | 2 |
Other expense | (2) | (2) | (4) | (5) |
Total other income | 45 | 32 | 85 | 61 |
Interest Charges | ||||
Interest on long-term debt | 73 | 77 | 146 | 151 |
Interest expense – related parties | 3 | 3 | 6 | 6 |
Other interest expense | 2 | 2 | 4 | 5 |
Allowance for borrowed funds used during construction | 0 | 0 | (1) | (1) |
Total interest charges | 78 | 82 | 155 | 161 |
Income Before Income Taxes | 224 | 196 | 616 | 475 |
Income Tax Expense | 34 | 36 | 90 | 80 |
Net Income | 190 | 160 | 526 | 395 |
Preferred stock dividends | 1 | 1 | 1 | 1 |
Net Income Available to Common Stockholders | 189 | 159 | 525 | 394 |
Purchased and interchange power | ||||
Operating Expenses | ||||
Cost of goods and services sold | 391 | 362 | 768 | 719 |
Cost of gas sold | ||||
Operating Expenses | ||||
Cost of goods and services sold | $ 96 | $ 82 | $ 375 | $ 355 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net Income | $ 171 | $ 137 | $ 513 | $ 380 |
Retirement Benefits Liability | ||||
Amortization of net actuarial loss, net of tax | 3 | 1 | 4 | 2 |
Amortization of prior service credit | (1) | (1) | (1) | (1) |
Derivatives | ||||
Unrealized gain (loss) on derivative instruments, net of tax of $—, $—, $—, and $(1) | 0 | 0 | 1 | (4) |
Reclassification adjustments included in net income, net of tax of $1, $—, $1, and $— | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss) | 2 | 0 | 4 | (3) |
Comprehensive Income | 173 | 137 | 517 | 377 |
Comprehensive Income (Loss) Attributable to Noncontrolling Interests | (5) | 1 | (12) | 1 |
Comprehensive Income Attributable to CMS Energy | 178 | 136 | 529 | 376 |
Consumers Energy Company | ||||
Net Income | 190 | 160 | 526 | 395 |
Retirement Benefits Liability | ||||
Amortization of net actuarial loss, net of tax | 1 | 0 | 1 | 0 |
Derivatives | ||||
Other Comprehensive Income (Loss) | 1 | 0 | 1 | 0 |
Comprehensive Income | $ 191 | $ 160 | $ 527 | $ 395 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Amortization of net actuarial loss, TAX | $ 1 | $ 1 | $ 1 | $ 1 |
Amortization of prior service credit, TAX | 0 | 0 | 0 | 0 |
Unrealized loss on derivative instruments, TAX | 0 | 0 | 0 | (1) |
Reclassification adjustments included in net income , TAX | 1 | 0 | 1 | 0 |
Consumers Energy Company | ||||
Amortization of net actuarial loss, TAX | $ 0 | $ 0 | $ 0 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows from Operating Activities | ||
Net Income | $ 513 | $ 380 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 582 | 537 |
Deferred income taxes and investment tax credits | 75 | 95 |
Other non‑cash operating activities and reconciling adjustments | (29) | (5) |
Pension contributions | 0 | (531) |
Net cash provided by (used in) discontinued operations | (23) | 22 |
Changes in assets and liabilities | ||
Accounts and notes receivable and accrued revenue | 101 | 132 |
Inventories | 36 | 99 |
Accounts payable and accrued rate refunds | 0 | 17 |
Other current assets and liabilities | 78 | 13 |
Other non‑current assets and liabilities | 34 | 37 |
Net cash provided by operating activities | 1,367 | 796 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under finance lease) | (878) | (944) |
Net cash provided by (used in) discontinued operations | 90 | (167) |
Cost to retire property and other investing activities | (63) | (57) |
Net cash used in investing activities | (851) | (1,168) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of debt | 0 | 2,353 |
Retirement of debt | (18) | (392) |
Decrease in notes payable | 0 | (90) |
Issuance of common stock, net of issuance costs | 20 | 104 |
Payment of dividends on common and preferred stock | (253) | (234) |
Net cash provided by (used in) discontinued operations | (138) | 132 |
Other financing costs | (20) | (54) |
Net cash provided by (used in) financing activities | (409) | 1,819 |
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts | 107 | 1,447 |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 185 | 157 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 292 | 1,604 |
Non‑cash transactions | ||
Capital expenditures not paid | 138 | 167 |
Consumers Energy Company | ||
Cash Flows from Operating Activities | ||
Net Income | 526 | 395 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 563 | 530 |
Deferred income taxes and investment tax credits | 89 | 67 |
Other non‑cash operating activities and reconciling adjustments | (26) | (4) |
Pension contributions | 0 | (518) |
Changes in assets and liabilities | ||
Accounts and notes receivable and accrued revenue | 104 | 158 |
Inventories | 35 | 99 |
Accounts payable and accrued rate refunds | 0 | 18 |
Other current assets and liabilities | 76 | 4 |
Other non‑current assets and liabilities | 33 | 32 |
Net cash provided by operating activities | 1,400 | 781 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under finance lease) | (873) | (936) |
Cost to retire property and other investing activities | (57) | (57) |
Net cash used in investing activities | (930) | (993) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of debt | 0 | 1,528 |
Retirement of debt | (13) | (363) |
Decrease in notes payable | 0 | (90) |
Decrease in notes payable – related parties | (307) | 0 |
Stockholder contribution | 275 | 650 |
Payment of dividends on common and preferred stock | (381) | (277) |
Other financing costs | (11) | (35) |
Net cash provided by (used in) financing activities | (437) | 1,413 |
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts | 33 | 1,201 |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 35 | 28 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 68 | 1,229 |
Non‑cash transactions | ||
Capital expenditures not paid | $ 134 | $ 157 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 153 | $ 32 |
Restricted cash and cash equivalents | 18 | 17 |
Accounts receivable and accrued revenue | 745 | 853 |
Accounts receivable – related parties | 16 | 19 |
Inventories at average cost | ||
Gas in underground storage | 318 | 353 |
Materials and supplies | 172 | 155 |
Generating plant fuel stock | 49 | 68 |
Deferred property taxes | 243 | 332 |
Regulatory assets | 21 | 42 |
Assets held for sale | 448 | 429 |
Prepayments and other current assets | 139 | 104 |
Total current assets | 2,322 | 2,404 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 29,027 | 27,870 |
Less accumulated depreciation and amortization | 8,326 | 7,938 |
Plant, property, and equipment, net | 20,701 | 19,932 |
Construction work in progress | 832 | 1,085 |
Total plant, property, and equipment | 21,533 | 21,017 |
Other Non‑current Assets | ||
Regulatory assets | 2,606 | 2,653 |
Accounts receivable | 18 | 19 |
Investments | 71 | 70 |
Assets held for sale | 2,584 | 2,680 |
Other | 819 | 823 |
Total other non‑current assets | 6,098 | 6,245 |
Total Assets | 29,953 | 29,666 |
Current Liabilities | ||
Current portion of long-term debt, finance leases, and other financing | 589 | 591 |
Accounts payable | 659 | 661 |
Accounts payable – related parties | 7 | 7 |
Accrued rate refunds | 21 | 20 |
Accrued interest | 103 | 104 |
Accrued taxes | 357 | 454 |
Regulatory liabilities | 214 | 151 |
Liabilities held for sale | 990 | 953 |
Other current liabilities | 174 | 133 |
Total current liabilities | 3,114 | 3,074 |
Non‑current Liabilities | ||
Long-term debt | 11,728 | 11,744 |
Non-current portion of finance leases and other financing | 50 | 56 |
Regulatory liabilities | 3,761 | 3,744 |
Postretirement benefits | 149 | 152 |
Asset retirement obligations | 607 | 553 |
Deferred investment tax credit | 113 | 115 |
Deferred income taxes | 1,966 | 1,863 |
Liabilities held for sale | 1,717 | 1,894 |
Other non‑current liabilities | 382 | 394 |
Total non‑current liabilities | 20,473 | 20,515 |
Commitments and Contingencies | ||
Common stockholders’ equity | ||
Common stock | 3 | 3 |
Other paid-in capital | 5,389 | 5,365 |
Accumulated other comprehensive loss | (82) | (86) |
Retained earnings | 487 | 214 |
Total common stockholders’ equity | 5,797 | 5,496 |
Noncontrolling interests | 569 | 581 |
Total equity | 6,366 | 6,077 |
Total Liabilities and Equity | 29,953 | 29,666 |
Consumers Energy Company | ||
Current Assets | ||
Cash and cash equivalents | 52 | 20 |
Restricted cash and cash equivalents | 16 | 15 |
Accounts receivable and accrued revenue | 718 | 828 |
Accounts receivable – related parties | 11 | 18 |
Inventories at average cost | ||
Gas in underground storage | 318 | 353 |
Materials and supplies | 166 | 149 |
Generating plant fuel stock | 49 | 67 |
Deferred property taxes | 243 | 332 |
Regulatory assets | 21 | 42 |
Prepayments and other current assets | 125 | 68 |
Total current assets | 1,719 | 1,892 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 27,910 | 26,757 |
Less accumulated depreciation and amortization | 8,214 | 7,844 |
Plant, property, and equipment, net | 19,696 | 18,913 |
Construction work in progress | 791 | 1,058 |
Total plant, property, and equipment | 20,487 | 19,971 |
Other Non‑current Assets | ||
Regulatory assets | 2,606 | 2,653 |
Accounts receivable | 24 | 25 |
Accounts and notes receivable – related parties | 104 | 105 |
Other | 740 | 753 |
Total other non‑current assets | 3,474 | 3,536 |
Total Assets | 25,680 | 25,399 |
Current Liabilities | ||
Current portion of long-term debt, finance leases, and other financing | 381 | 384 |
Notes payable – related parties | 0 | 307 |
Accounts payable | 630 | 636 |
Accounts payable – related parties | 13 | 7 |
Accrued rate refunds | 21 | 20 |
Accrued interest | 72 | 72 |
Accrued taxes | 369 | 458 |
Regulatory liabilities | 214 | 151 |
Other current liabilities | 122 | 104 |
Total current liabilities | 1,822 | 2,139 |
Non‑current Liabilities | ||
Long-term debt | 7,730 | 7,742 |
Non-current portion of finance leases and other financing | 50 | 56 |
Regulatory liabilities | 3,761 | 3,744 |
Postretirement benefits | 110 | 112 |
Asset retirement obligations | 584 | 530 |
Deferred investment tax credit | 113 | 115 |
Deferred income taxes | 2,213 | 2,094 |
Other non‑current liabilities | 320 | 311 |
Total non‑current liabilities | 14,881 | 14,704 |
Commitments and Contingencies | ||
Common stockholders’ equity | ||
Common stock | 841 | 841 |
Other paid-in capital | 6,299 | 6,024 |
Accumulated other comprehensive loss | (35) | (36) |
Retained earnings | 1,835 | 1,690 |
Total common stockholders’ equity | 8,940 | 8,519 |
Cumulative preferred stock, $4.50 series, authorized 7.5 shares; outstanding 0.4 shares in both periods | 37 | 37 |
Total equity | 8,977 | 8,556 |
Total Liabilities and Equity | $ 25,680 | $ 25,399 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts receivable and accrued revenue, ALLOWANCE | $ 27 | $ 29 |
Common stock authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock outstanding (in shares) | 289,700,000 | 288,900,000 |
Consumers Energy Company | ||
Accounts receivable and accrued revenue, ALLOWANCE | $ 27 | $ 29 |
Common stock authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock outstanding (in shares) | 84,100,000 | 84,100,000 |
Preferred stock authorized (in shares) | 7,500,000 | 7,500,000 |
Preferred stock outstanding (in shares) | 400,000 | 400,000 |
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) | Retained Earnings (Accumulated Deficit)Cumulative Effect, Period of Adoption, Adjustment | 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 CompanyCumulative Preferred Stock |
Total Equity at Beginning of Period at Dec. 31, 2019 | $ 5,055 | $ 3 | $ 5,113 | $ (73) | $ (69) | $ (4) | $ (25) | $ (51) | $ 37 | $ 7,737 | $ 841 | $ 5,374 | $ (28) | $ (28) | $ 1,513 | $ 37 |
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 gain (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) | |||||||||||||||
Contribution from noncontrolling interest | 0 | |||||||||||||||
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 | |||||||||||||||
Total Equity at Beginning of Period at Mar. 31, 2020 | $ 5,222 | 3 | 5,207 | (76) | (68) | (8) | 51 | 0 | 37 | 8,103 | 841 | 5,724 | (28) | (28) | 1,529 | 37 |
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 gain (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) | |||||||||||||||
Contribution from noncontrolling interest | 0 | |||||||||||||||
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 | |||||||||||||||
Total Equity at Beginning of Period at Dec. 31, 2020 | $ 6,077 | 3 | 5,365 | (86) | (80) | (6) | 214 | 0 | 581 | 8,556 | 841 | 6,024 | (36) | (36) | 1,690 | 37 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common stock issued | 33 | |||||||||||||||
Common stock repurchased | (9) | |||||||||||||||
Stockholder contribution | 275 | |||||||||||||||
Amortization of net actuarial loss | 4 | 4 | 1 | 1 | ||||||||||||
Amortization of prior service credit | (1) | (1) | ||||||||||||||
Unrealized gain (loss) on derivative instruments | 1 | 1 | ||||||||||||||
Net Income | 513 | 525 | (12) | 526 | 526 | |||||||||||
Dividends declared on common stock | (252) | (380) | ||||||||||||||
Dividends declared on preferred stock | (1) | |||||||||||||||
Contribution from noncontrolling interest | 1 | |||||||||||||||
Distributions and other changes in noncontrolling interests | (1) | |||||||||||||||
Total Equity at End of Period at Jun. 30, 2021 | $ 6,366 | 3 | 5,389 | (82) | (77) | (5) | 487 | 569 | 8,977 | 841 | 6,299 | (35) | (35) | 1,835 | 37 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.8700 | |||||||||||||||
Total Equity at Beginning of Period at Mar. 31, 2021 | $ 6,302 | 3 | 5,371 | (84) | (79) | (5) | 437 | $ 0 | 575 | 8,766 | 841 | 6,174 | (36) | (36) | 1,750 | 37 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common stock issued | 18 | |||||||||||||||
Common stock repurchased | 0 | |||||||||||||||
Stockholder contribution | 125 | |||||||||||||||
Amortization of net actuarial loss | 3 | 3 | 1 | 1 | ||||||||||||
Amortization of prior service credit | (1) | (1) | ||||||||||||||
Unrealized gain (loss) on derivative instruments | 0 | 0 | ||||||||||||||
Net Income | 171 | 176 | (5) | 190 | 190 | |||||||||||
Dividends declared on common stock | (126) | (104) | ||||||||||||||
Dividends declared on preferred stock | (1) | |||||||||||||||
Contribution from noncontrolling interest | 0 | |||||||||||||||
Distributions and other changes in noncontrolling interests | (1) | |||||||||||||||
Total Equity at End of Period at Jun. 30, 2021 | $ 6,366 | $ 3 | $ 5,389 | $ (82) | $ (77) | $ (5) | $ 487 | $ 569 | $ 8,977 | $ 841 | $ 6,299 | $ (35) | $ (35) | $ 1,835 | $ 37 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.4350 |
Consolidated Statements of In_2
Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Tax effect of discontinued operation | $ 7 | $ 3 | $ 16 | $ 6 |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2021 | |
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. Electric Rate Case: In June 2021, the MPSC Staff filed testimony in the general electric rate case that Consumers filed in March 2021. In its testimony, the MPSC Staff recommended the disallowance of cost recovery for certain categories of recently completed capital expenditures incurred by Consumers. At June 30, 2021, Consumers had incurred $39 million of such expenditures. A material disallowance of incurred capital costs could negatively affect CMS Energy’s and Consumers’ results of operations. Consumers cannot predict the outcome of this proceeding. Reserve for Customer Refunds: In December 2020, the MPSC issued an order authorizing Consumers to refund $28 million voluntarily to utility customers. In May 2021, the MPSC approved a filing submitted by Consumers that proposed the refund take the form of incremental spending in 2021 above amounts included in rates on various programs, including electric service restoration and gas and electric technology expenses. If Consumers does not achieve the incremental spending, the remaining balance will be provided to electric or gas utility customers through a bill credit. Consumers had recorded a current regulatory liability of $23 million at June 30, 2021 and $28 million at December 31, 2020 related to this voluntary refund. Voluntary Transmission Asset Sale Gain Share: In October 2020, Consumers completed a sale of the electric utility’s remaining transmission equipment to METC. In December 2020, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with electric utility customers; this application was approved by the MPSC in February 2021. Consumers will share the gain through incremental service restoration spending in 2021 above amounts included in rates or through a bill credit to electric utility customers in 2022. As a result, the $14 million gain to be shared with customers was recorded on Consumers’ consolidated balance sheets as a current regulatory liability at June 30, 2021 and December 31, 2020. |
Consumers Energy Company | |
Public Utilities, General Disclosures [Line Items] | |
Regulatory Matters | Regulatory Matters Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. There are multiple appeals pending that involve various issues concerning cost recovery from customers, the adequacy of the record of evidence supporting the recovery of Smart Energy investments, and other matters. Consumers is unable to predict the outcome of these appeals. Electric Rate Case: In June 2021, the MPSC Staff filed testimony in the general electric rate case that Consumers filed in March 2021. In its testimony, the MPSC Staff recommended the disallowance of cost recovery for certain categories of recently completed capital expenditures incurred by Consumers. At June 30, 2021, Consumers had incurred $39 million of such expenditures. A material disallowance of incurred capital costs could negatively affect CMS Energy’s and Consumers’ results of operations. Consumers cannot predict the outcome of this proceeding. Reserve for Customer Refunds: In December 2020, the MPSC issued an order authorizing Consumers to refund $28 million voluntarily to utility customers. In May 2021, the MPSC approved a filing submitted by Consumers that proposed the refund take the form of incremental spending in 2021 above amounts included in rates on various programs, including electric service restoration and gas and electric technology expenses. If Consumers does not achieve the incremental spending, the remaining balance will be provided to electric or gas utility customers through a bill credit. Consumers had recorded a current regulatory liability of $23 million at June 30, 2021 and $28 million at December 31, 2020 related to this voluntary refund. Voluntary Transmission Asset Sale Gain Share: In October 2020, Consumers completed a sale of the electric utility’s remaining transmission equipment to METC. In December 2020, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with electric utility customers; this application was approved by the MPSC in February 2021. Consumers will share the gain through incremental service restoration spending in 2021 above amounts included in rates or through a bill credit to electric utility customers in 2022. As a result, the $14 million gain to be shared with customers was recorded on Consumers’ consolidated balance sheets as a current regulatory liability at June 30, 2021 and December 31, 2020. |
Contingencies and Commitments
Contingencies and Commitments | 6 Months Ended |
Jun. 30, 2021 | |
Other Commitments [Line Items] | |
Contingencies and Commitments | Contingencies and Commitments CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. CMS Energy Contingencies Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which was valid through September 2020. CMS Land submitted a renewal request for the permit in April 2020. CMS Land is allowed to continue operating under the previous NPDES permit until a response is received from EGLE. At June 30, 2021, CMS Energy had a recorded liability of $44 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $55 million. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2021 and in each of the next five years: In Millions 2021 2022 2023 2024 2025 2026 CMS Energy Long-term leachate disposal and operating and maintenance costs $ 2 $ 4 $ 4 $ 4 $ 4 $ 4 CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. 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 believes the likelihood of material loss to be remote, but cannot predict the financial impact or outcome of the matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s liquidity, financial condition, and results of operations. Consumers Electric Utility Contingencies Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $3 million and $4 million. At June 30, 2021, 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, 2021, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount. The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability. Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome. MCV PPA: In 2017, the MCV Partnership initiated arbitration against Consumers, asserting a breach of contract associated with the MCV PPA. In 2019, an arbitration panel issued an order concluding that the MCV Partnership is not entitled to any damages associated with a claim against Consumers that was related to the Clean Air Act. In November 2020, the MCV Partnership and Consumers signed a settlement agreement resolving all remaining disputes between the parties, and filed the settlement and associated agreements with the MPSC for approval. In March 2021, the MPSC approved the settlement and associated agreements. Plant Purchase Commitment: In conjunction with its 2021 IRP, Consumers executed agreements to purchase: • the New Covert Generating Facility, a natural gas-fueled generating unit with 1,176 MW of nameplate capacity in Van Buren County, Michigan, for $810 million, subject to certain adjustments, in 2023 • the enterprises segment’s three natural gas-fueled generating units, totaling 1,001 MW of nameplate capacity, for $515 million, subject to certain adjustments, in 2025 These agreements are subject to the approval of the MPSC and FERC and the New Covert Generating Facility agreement is subject to the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Consumers Gas Utility Contingencies Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. At June 30, 2021, Consumers had a recorded liability of $56 million for its remaining obligations for these sites. This amount represents the present value of long-term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $61 million. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2021 and in each of the next five years: In Millions 2021 2022 2023 2024 2025 2026 Consumers Remediation and other response activity costs $ 3 $ 9 $ 23 $ 11 $ 2 $ 1 Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability. Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten-year period. At June 30, 2021, Consumers had a regulatory asset of $115 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, 2021, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount. Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity. In 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. In September 2020, the MPSC disallowed the recovery of $7 million in incremental gas purchases related to the fire. In January 2021, the MPSC denied Consumers’ petition for a rehearing challenging this disallowance. In February 2021, Consumers filed an appeal of the MPSC’s denial with the Michigan Court of Appeals. Consumers could also be subject to disallowances of costs associated with the repair and modification of the Ray Compressor Station. At June 30, 2021, Consumers had incurred capital expenditures of $17 million to restore and modify the compressor station. As of June 30, 2021, Consumers had recorded an insurance recovery of $10 million related to the compressor station; of this amount, $7 million represented recovery of the costs to repair the station and $3 million represented recovery of incremental gas purchases related to the fire. Consumers recognized $4 million of the insurance recovery as a reduction to plant, property, and equipment, $3 million as a reduction of maintenance and other operating expenses, and $3 million as operating revenue. 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 CMS Energy’s and 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, 2021: In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from purchase of VIE 1 September 2020 indefinite $ 331 $ — Indemnity obligations from stock and asset sale agreements 2 various indefinite 153 2 Guarantee 3 July 2011 indefinite 30 — Consumers Guarantee 3 July 2011 indefinite $ 30 $ — 1 In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities. 2 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. 3 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. At June 30, 2021, the carrying value of these indemnity obligations was $1 million. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote. Other Contingencies In addition to the matters disclosed in this Note and Note 1, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which |
Consumers Energy Company | |
Other Commitments [Line Items] | |
Contingencies and Commitments | Contingencies and Commitments CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. CMS Energy Contingencies Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which was valid through September 2020. CMS Land submitted a renewal request for the permit in April 2020. CMS Land is allowed to continue operating under the previous NPDES permit until a response is received from EGLE. At June 30, 2021, CMS Energy had a recorded liability of $44 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $55 million. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2021 and in each of the next five years: In Millions 2021 2022 2023 2024 2025 2026 CMS Energy Long-term leachate disposal and operating and maintenance costs $ 2 $ 4 $ 4 $ 4 $ 4 $ 4 CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. 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 believes the likelihood of material loss to be remote, but cannot predict the financial impact or outcome of the matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s liquidity, financial condition, and results of operations. Consumers Electric Utility Contingencies Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $3 million and $4 million. At June 30, 2021, 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, 2021, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount. The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability. Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome. MCV PPA: In 2017, the MCV Partnership initiated arbitration against Consumers, asserting a breach of contract associated with the MCV PPA. In 2019, an arbitration panel issued an order concluding that the MCV Partnership is not entitled to any damages associated with a claim against Consumers that was related to the Clean Air Act. In November 2020, the MCV Partnership and Consumers signed a settlement agreement resolving all remaining disputes between the parties, and filed the settlement and associated agreements with the MPSC for approval. In March 2021, the MPSC approved the settlement and associated agreements. Plant Purchase Commitment: In conjunction with its 2021 IRP, Consumers executed agreements to purchase: • the New Covert Generating Facility, a natural gas-fueled generating unit with 1,176 MW of nameplate capacity in Van Buren County, Michigan, for $810 million, subject to certain adjustments, in 2023 • the enterprises segment’s three natural gas-fueled generating units, totaling 1,001 MW of nameplate capacity, for $515 million, subject to certain adjustments, in 2025 These agreements are subject to the approval of the MPSC and FERC and the New Covert Generating Facility agreement is subject to the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Consumers Gas Utility Contingencies Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. At June 30, 2021, Consumers had a recorded liability of $56 million for its remaining obligations for these sites. This amount represents the present value of long-term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $61 million. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2021 and in each of the next five years: In Millions 2021 2022 2023 2024 2025 2026 Consumers Remediation and other response activity costs $ 3 $ 9 $ 23 $ 11 $ 2 $ 1 Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability. Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten-year period. At June 30, 2021, Consumers had a regulatory asset of $115 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, 2021, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount. Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity. In 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. In September 2020, the MPSC disallowed the recovery of $7 million in incremental gas purchases related to the fire. In January 2021, the MPSC denied Consumers’ petition for a rehearing challenging this disallowance. In February 2021, Consumers filed an appeal of the MPSC’s denial with the Michigan Court of Appeals. Consumers could also be subject to disallowances of costs associated with the repair and modification of the Ray Compressor Station. At June 30, 2021, Consumers had incurred capital expenditures of $17 million to restore and modify the compressor station. As of June 30, 2021, Consumers had recorded an insurance recovery of $10 million related to the compressor station; of this amount, $7 million represented recovery of the costs to repair the station and $3 million represented recovery of incremental gas purchases related to the fire. Consumers recognized $4 million of the insurance recovery as a reduction to plant, property, and equipment, $3 million as a reduction of maintenance and other operating expenses, and $3 million as operating revenue. 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 CMS Energy’s and 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, 2021: In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from purchase of VIE 1 September 2020 indefinite $ 331 $ — Indemnity obligations from stock and asset sale agreements 2 various indefinite 153 2 Guarantee 3 July 2011 indefinite 30 — Consumers Guarantee 3 July 2011 indefinite $ 30 $ — 1 In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities. 2 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. 3 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. At June 30, 2021, the carrying value of these indemnity obligations was $1 million. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote. Other Contingencies In addition to the matters disclosed in this Note and Note 1, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which |
Financings And Capitalization
Financings And Capitalization | 6 Months Ended |
Jun. 30, 2021 | |
Debt Instrument [Line Items] | |
Financings and Capitalization | Financings and Capitalization Credit Facilities: The following credit facilities with banks were available at June 30, 2021: In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2024 $ 550 $ — $ 18 $ 532 CMS Enterprises, including subsidiaries September 25, 2025 1 $ 39 $ — $ 39 $ — September 30, 2025 2 18 — 8 10 Consumers 3 June 5, 2024 $ 850 $ — $ 12 $ 838 November 19, 2022 250 — 1 249 April 18, 2022 30 — 30 — 1 This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities. 2 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. 3 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, 2021, there were no commercial paper notes outstanding under this program. In December 2020, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $350 million at an interest rate of one month LIBOR minus 0.100 percent. At June 30, 2021, there were no outstanding loans under the agreement. Dividend Restrictions: At June 30, 2021, payment of dividends by CMS Energy on its common stock was limited to $5.8 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at June 30, 2021, Consumers had $1.8 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. During the six months ended June 30, 2021, Consumers paid $380 million in dividends on its common stock to CMS Energy. Issuance of Common Stock: In 2020, CMS Energy entered into an equity offering program under which it may sell, from time to time, shares of CMS Energy common stock. Under the program, CMS Energy may sell its common stock in privately negotiated transactions, in “at the market” offerings, through forward sales transactions, or otherwise. CMS Energy may sell shares of its common stock having an aggregate sales price of up to $500 million. Presented in the following table are details of CMS Energy’s forward sales contracts under this program at June 30, 2021: Forward Price Per Share Contract Date Maturity Date Number of Shares Initial June 30, 2021 September 15, 2020 June 30, 2022 846,759 $ 61.04 $ 59.51 December 22, 2020 June 22, 2022 115,595 61.81 60.80 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, 2021, CMS Energy would not have been required to deliver shares. |
Consumers Energy Company | |
Debt Instrument [Line Items] | |
Financings and Capitalization | Financings and Capitalization Credit Facilities: The following credit facilities with banks were available at June 30, 2021: In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2024 $ 550 $ — $ 18 $ 532 CMS Enterprises, including subsidiaries September 25, 2025 1 $ 39 $ — $ 39 $ — September 30, 2025 2 18 — 8 10 Consumers 3 June 5, 2024 $ 850 $ — $ 12 $ 838 November 19, 2022 250 — 1 249 April 18, 2022 30 — 30 — 1 This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities. 2 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. 3 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, 2021, there were no commercial paper notes outstanding under this program. In December 2020, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $350 million at an interest rate of one month LIBOR minus 0.100 percent. At June 30, 2021, there were no outstanding loans under the agreement. Dividend Restrictions: At June 30, 2021, payment of dividends by CMS Energy on its common stock was limited to $5.8 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at June 30, 2021, Consumers had $1.8 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. During the six months ended June 30, 2021, Consumers paid $380 million in dividends on its common stock to CMS Energy. Issuance of Common Stock: In 2020, CMS Energy entered into an equity offering program under which it may sell, from time to time, shares of CMS Energy common stock. Under the program, CMS Energy may sell its common stock in privately negotiated transactions, in “at the market” offerings, through forward sales transactions, or otherwise. CMS Energy may sell shares of its common stock having an aggregate sales price of up to $500 million. Presented in the following table are details of CMS Energy’s forward sales contracts under this program at June 30, 2021: Forward Price Per Share Contract Date Maturity Date Number of Shares Initial June 30, 2021 September 15, 2020 June 30, 2022 846,759 $ 61.04 $ 59.51 December 22, 2020 June 22, 2022 115,595 61.81 60.80 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, 2021, CMS Energy would not have been required to deliver shares. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
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 Assets 1 Restricted cash equivalents $ 18 $ 17 $ 16 $ 15 Nonqualified deferred compensation plan assets 25 23 19 18 Derivative instruments 3 1 3 1 Total assets $ 46 $ 41 $ 38 $ 34 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 25 $ 23 $ 19 $ 18 Derivative instruments 10 11 1 — Total liabilities $ 35 $ 34 $ 20 $ 18 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. Restricted Cash Equivalents: Restricted cash equivalents consist of money market funds with daily liquidity. For further details, see Note 10, Cash and Cash Equivalents. Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets. Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3. The derivatives classified as Level 2 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. 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 $81 million at June 30, 2021 and $85 million at December 31, 2020. Gains or losses on these swaps are initially reported in other comprehensive income (loss) and then, as interest payments are made on the hedged debt, are recognized in earnings within interest on long-term debt on CMS Energy’s consolidated statements of income. CMS Energy recorded gains (losses) in other comprehensive income (loss) of $1 million for the six months ended June 30, 2021 and $(5) million for the six months ended June 30, 2020. There were no material impacts on interest on long-term debt 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 $7 million at June 30, 2021 and $9 million at December 31, 2020. 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 periods presented. The majority of derivatives classified as Level 3 are FTRs held by Consumers. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. There was no material activity within the Level 3 categories of assets and liabilities during the periods presented. |
Consumers Energy Company | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements | Fair Value Measurements Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are observable, market-based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data. • Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities. CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety. Assets and Liabilities Measured at Fair Value on a Recurring Basis Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers June 30 December 31 June 30 December 31 Assets 1 Restricted cash equivalents $ 18 $ 17 $ 16 $ 15 Nonqualified deferred compensation plan assets 25 23 19 18 Derivative instruments 3 1 3 1 Total assets $ 46 $ 41 $ 38 $ 34 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 25 $ 23 $ 19 $ 18 Derivative instruments 10 11 1 — Total liabilities $ 35 $ 34 $ 20 $ 18 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. Restricted Cash Equivalents: Restricted cash equivalents consist of money market funds with daily liquidity. For further details, see Note 10, Cash and Cash Equivalents. Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets. Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3. The derivatives classified as Level 2 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. 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 $81 million at June 30, 2021 and $85 million at December 31, 2020. Gains or losses on these swaps are initially reported in other comprehensive income (loss) and then, as interest payments are made on the hedged debt, are recognized in earnings within interest on long-term debt on CMS Energy’s consolidated statements of income. CMS Energy recorded gains (losses) in other comprehensive income (loss) of $1 million for the six months ended June 30, 2021 and $(5) million for the six months ended June 30, 2020. There were no material impacts on interest on long-term debt 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 $7 million at June 30, 2021 and $9 million at December 31, 2020. 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 periods presented. The majority of derivatives classified as Level 3 are FTRs held by Consumers. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. There was no material activity within the Level 3 categories of assets and liabilities during the periods presented. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Financial Instruments [Line Items] | |
Financial Instruments | Financial Instruments Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements. In Millions June 30, 2021 December 31, 2020 Carrying Amount Fair Value Carrying Amount Fair Value Total Level Total Level 1 2 3 1 2 3 CMS Energy, including Consumers Assets Long-term receivables 1 $ 15 $ 15 $ — $ — $ 15 $ 17 $ 17 $ — $ — $ 17 Liabilities Long-term debt 2 12,300 13,923 1,220 10,706 1,997 12,315 14,601 1,249 11,267 2,085 Long-term payables 3 30 32 — — 32 33 35 — — 35 Consumers Assets Long-term receivables 1 $ 15 $ 15 $ — $ — $ 15 $ 17 $ 17 $ — $ — $ 17 Notes receivable – related party 4 105 105 — — 105 107 107 — — 107 Liabilities Long-term debt 5 8,094 9,234 — 7,237 1,997 8,106 9,801 — 7,716 2,085 1 Includes current portion of long-term accounts receivable of $10 million at June 30, 2021 and $12 million at December 31, 2020. 2 Includes current portion of long-term debt of $572 million at June 30, 2021 and $571 million at December 31, 2020. 3 Includes current portion of long-term payables of $22 million at June 30, 2021 and $6 million at December 31, 2020. 4 Includes current portion of notes receivable – related party of $7 million at June 30, 2021 and December 31, 2020. 5 Includes current portion of long-term debt of $364 million at June 30, 2021 and December 31, 2020. |
Consumers Energy Company | |
Financial Instruments [Line Items] | |
Financial Instruments | Financial Instruments Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements. In Millions June 30, 2021 December 31, 2020 Carrying Amount Fair Value Carrying Amount Fair Value Total Level Total Level 1 2 3 1 2 3 CMS Energy, including Consumers Assets Long-term receivables 1 $ 15 $ 15 $ — $ — $ 15 $ 17 $ 17 $ — $ — $ 17 Liabilities Long-term debt 2 12,300 13,923 1,220 10,706 1,997 12,315 14,601 1,249 11,267 2,085 Long-term payables 3 30 32 — — 32 33 35 — — 35 Consumers Assets Long-term receivables 1 $ 15 $ 15 $ — $ — $ 15 $ 17 $ 17 $ — $ — $ 17 Notes receivable – related party 4 105 105 — — 105 107 107 — — 107 Liabilities Long-term debt 5 8,094 9,234 — 7,237 1,997 8,106 9,801 — 7,716 2,085 1 Includes current portion of long-term accounts receivable of $10 million at June 30, 2021 and $12 million at December 31, 2020. 2 Includes current portion of long-term debt of $572 million at June 30, 2021 and $571 million at December 31, 2020. 3 Includes current portion of long-term payables of $22 million at June 30, 2021 and $6 million at December 31, 2020. 4 Includes current portion of notes receivable – related party of $7 million at June 30, 2021 and December 31, 2020. 5 Includes current portion of long-term debt of $364 million at June 30, 2021 and December 31, 2020. |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement Benefits | Retirement BenefitsCMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. 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 2021 2020 2021 2020 2021 2020 2021 2020 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 13 $ 13 $ 27 $ 25 $ 5 $ 4 $ 9 $ 8 Interest cost 15 20 30 41 5 9 11 17 Expected return on plan assets (52) (48) (104) (96) (27) (25) (54) (50) Amortization of: Net loss 26 22 51 44 2 3 4 7 Prior service cost (credit) 1 1 2 1 (13) (14) (26) (28) Settlement loss 2 — 3 — — — — — Net periodic cost (credit) $ 5 $ 8 $ 9 $ 15 $ (28) $ (23) $ (56) $ (46) Consumers Net periodic cost (credit) Service cost $ 13 $ 12 $ 26 $ 24 $ 5 $ 4 $ 9 $ 8 Interest cost 14 19 28 39 5 8 11 16 Expected return on plan assets (49) (46) (98) (91) (26) (24) (51) (47) Amortization of: Net loss 24 21 49 42 2 3 4 7 Prior service cost (credit) 1 1 2 1 (13) (13) (26) (27) Settlement loss 2 — 3 — — — — — Net periodic cost (credit) $ 5 $ 7 $ 10 $ 15 $ (27) $ (22) $ (53) $ (43) |
Consumers Energy Company | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement Benefits | Retirement BenefitsCMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. 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 2021 2020 2021 2020 2021 2020 2021 2020 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 13 $ 13 $ 27 $ 25 $ 5 $ 4 $ 9 $ 8 Interest cost 15 20 30 41 5 9 11 17 Expected return on plan assets (52) (48) (104) (96) (27) (25) (54) (50) Amortization of: Net loss 26 22 51 44 2 3 4 7 Prior service cost (credit) 1 1 2 1 (13) (14) (26) (28) Settlement loss 2 — 3 — — — — — Net periodic cost (credit) $ 5 $ 8 $ 9 $ 15 $ (28) $ (23) $ (56) $ (46) Consumers Net periodic cost (credit) Service cost $ 13 $ 12 $ 26 $ 24 $ 5 $ 4 $ 9 $ 8 Interest cost 14 19 28 39 5 8 11 16 Expected return on plan assets (49) (46) (98) (91) (26) (24) (51) (47) Amortization of: Net loss 24 21 49 42 2 3 4 7 Prior service cost (credit) 1 1 2 1 (13) (13) (26) (27) Settlement loss 2 — 3 — — — — — Net periodic cost (credit) $ 5 $ 7 $ 10 $ 15 $ (27) $ (22) $ (53) $ (43) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
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 2021 2020 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 5.4 4.7 TCJA excess deferred taxes 1 (5.9) (4.3) Production tax credits (5.1) (3.1) Accelerated flow-through of regulatory tax benefits 2 (3.3) (1.6) Research and development tax credits, net 3 (0.3) (2.3) Refund of alternative minimum tax sequestration 4 — (2.3) Other, net 0.4 (0.3) Effective tax rate 12.2 % 11.8 % 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 5.2 5.0 TCJA excess deferred taxes 1 (4.9) (3.6) Production tax credits (3.2) (1.6) Accelerated flow-through of regulatory tax benefits 2 (3.0) (1.6) Research and development tax credits, net 3 (0.2) (1.9) Other, net (0.3) (0.5) Effective tax rate 14.6 % 16.8 % 1 In September 2020, the MPSC authorized Consumers to accelerate the amortization of a regulatory liability associated with unprotected, non ‑ property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022. 2 In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022. 3 In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers. 4 In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020. |
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 2021 2020 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 5.4 4.7 TCJA excess deferred taxes 1 (5.9) (4.3) Production tax credits (5.1) (3.1) Accelerated flow-through of regulatory tax benefits 2 (3.3) (1.6) Research and development tax credits, net 3 (0.3) (2.3) Refund of alternative minimum tax sequestration 4 — (2.3) Other, net 0.4 (0.3) Effective tax rate 12.2 % 11.8 % 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 5.2 5.0 TCJA excess deferred taxes 1 (4.9) (3.6) Production tax credits (3.2) (1.6) Accelerated flow-through of regulatory tax benefits 2 (3.0) (1.6) Research and development tax credits, net 3 (0.2) (1.9) Other, net (0.3) (0.5) Effective tax rate 14.6 % 16.8 % 1 In September 2020, the MPSC authorized Consumers to accelerate the amortization of a regulatory liability associated with unprotected, non ‑ property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022. 2 In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022. 3 In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers. 4 In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020. |
Earnings Per Share - CMS Energy
Earnings Per Share - CMS Energy | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share - CMS Energy | Earnings Per Share—CMS Energy Presented in the following table are CMS Energy’s basic and diluted EPS computations based on income from continuing operations: In Millions, Except Per Share Amounts Three Months Ended Six Months Ended June 30 2021 2020 2021 2020 Income available to common stockholders Income from continuing operations $ 153 $ 129 $ 461 $ 358 Less income (loss) attributable to noncontrolling interests (5) 1 (12) 1 Income from continuing operations available to common stockholders – basic and diluted $ 158 $ 128 $ 473 $ 357 Average common shares outstanding Weighted-average shares – basic 289.0 285.5 288.8 284.4 Add dilutive nonvested stock awards 0.4 0.6 0.5 0.7 Add dilutive forward equity sale contracts — 0.4 — 0.7 Weighted-average shares – diluted 289.4 286.5 289.3 285.8 Income from continuing operations per average common share available to common stockholders Basic $ 0.55 $ 0.45 $ 1.64 $ 1.25 Diluted 0.55 0.45 1.64 1.25 Nonvested Stock Awards CMS Energy’s nonvested stock awards are composed of participating and non‑participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the nonvested stock awards are considered participating securities. As such, the participating nonvested stock awards were included in the computation of basic EPS. The non‑participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non‑participating securities are also forfeited. Accordingly, the non‑participating awards and stock dividends were included in the computation of diluted EPS, but not in the computation of basic EPS. Forward Equity Sale Contracts CMS Energy has entered into forward equity sale contracts. These forward equity sale contracts are non‑participating securities. While the forward sale price in the forward equity sale contract is decreased on certain dates by certain predetermined amounts to reflect expected dividend payments, these price adjustments were set upon inception of the agreement and the forward contract does not give the owner the right to participate in undistributed earnings. Accordingly, the forward equity sale contracts were included in the computation of diluted EPS, but not in the computation of basic EPS. For further details on the forward equity sale contracts, see Note 3, Financings and Capitalization. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |
Revenue | RevenuePresented in the following tables are the components of operating revenue In Millions Three Months Ended June 30, 2021 Electric Utility Gas Utility Enterprises 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,158 $ 332 $ — $ 1,490 Other — — 25 25 Revenue recognized from contracts with customers $ 1,158 $ 332 $ 25 $ 1,515 Leasing income — — 40 40 Financing income 2 1 — 3 Total operating revenue – CMS Energy $ 1,160 $ 333 $ 65 $ 1,558 Consumers Consumers utility revenue Residential $ 561 $ 220 $ 781 Commercial 390 59 449 Industrial 153 8 161 Other 54 45 99 Revenue recognized from contracts with customers $ 1,158 $ 332 $ 1,490 Financing income 2 1 3 Total operating revenue – Consumers $ 1,160 $ 333 $ 1,493 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 $26 million for the three months ended June 30, 2021. In Millions Three Months Ended June 30, 2020 Electric Utility Gas Utility Enterprises 1 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 — 4 Total operating revenue – CMS Energy $ 1,022 $ 308 $ 52 $ 1,382 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 Six Months Ended June 30, 2021 Electric Utility Gas Utility Enterprises 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,289 $ 1,133 $ — $ 3,422 Other — — 55 55 Revenue recognized from contracts with customers $ 2,289 $ 1,133 $ 55 $ 3,477 Leasing income — — 86 86 Financing income 5 3 — 8 Total operating revenue – CMS Energy $ 2,294 $ 1,136 $ 141 $ 3,571 Consumers Consumers utility revenue Residential $ 1,129 $ 774 $ 1,903 Commercial 735 222 957 Industrial 291 31 322 Other 134 106 240 Revenue recognized from contracts with customers $ 2,289 $ 1,133 $ 3,422 Financing income 5 3 8 Total operating revenue – Consumers $ 2,294 $ 1,136 $ 3,430 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 $59 million for the six months ended June 30, 2021. In Millions Six Months Ended June 30, 2020 Electric Utility Gas Utility Enterprises 1 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 — 9 Total operating revenue – CMS Energy $ 2,050 $ 1,024 $ 110 $ 3,184 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. 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 $5 million for the three months ended June 30, 2021 and $8 million for the three months ended June 30, 2020. CMS Energy and Consumers recorded uncollectible accounts expense of $11 million for the six months ended June 30, 2021 and $13 million for the six months ended June 30, 2020. Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable and accrued revenue on CMS Energy’s and Consumers’ consolidated balance sheets, were $361 million at June 30, 2021 and $437 million at December 31, 2020. |
Consumers Energy Company | |
Disaggregation of Revenue [Line Items] | |
Revenue | RevenuePresented in the following tables are the components of operating revenue In Millions Three Months Ended June 30, 2021 Electric Utility Gas Utility Enterprises 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,158 $ 332 $ — $ 1,490 Other — — 25 25 Revenue recognized from contracts with customers $ 1,158 $ 332 $ 25 $ 1,515 Leasing income — — 40 40 Financing income 2 1 — 3 Total operating revenue – CMS Energy $ 1,160 $ 333 $ 65 $ 1,558 Consumers Consumers utility revenue Residential $ 561 $ 220 $ 781 Commercial 390 59 449 Industrial 153 8 161 Other 54 45 99 Revenue recognized from contracts with customers $ 1,158 $ 332 $ 1,490 Financing income 2 1 3 Total operating revenue – Consumers $ 1,160 $ 333 $ 1,493 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 $26 million for the three months ended June 30, 2021. In Millions Three Months Ended June 30, 2020 Electric Utility Gas Utility Enterprises 1 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 — 4 Total operating revenue – CMS Energy $ 1,022 $ 308 $ 52 $ 1,382 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 Six Months Ended June 30, 2021 Electric Utility Gas Utility Enterprises 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,289 $ 1,133 $ — $ 3,422 Other — — 55 55 Revenue recognized from contracts with customers $ 2,289 $ 1,133 $ 55 $ 3,477 Leasing income — — 86 86 Financing income 5 3 — 8 Total operating revenue – CMS Energy $ 2,294 $ 1,136 $ 141 $ 3,571 Consumers Consumers utility revenue Residential $ 1,129 $ 774 $ 1,903 Commercial 735 222 957 Industrial 291 31 322 Other 134 106 240 Revenue recognized from contracts with customers $ 2,289 $ 1,133 $ 3,422 Financing income 5 3 8 Total operating revenue – Consumers $ 2,294 $ 1,136 $ 3,430 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 $59 million for the six months ended June 30, 2021. In Millions Six Months Ended June 30, 2020 Electric Utility Gas Utility Enterprises 1 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 — 9 Total operating revenue – CMS Energy $ 2,050 $ 1,024 $ 110 $ 3,184 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. 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 $5 million for the three months ended June 30, 2021 and $8 million for the three months ended June 30, 2020. CMS Energy and Consumers recorded uncollectible accounts expense of $11 million for the six months ended June 30, 2021 and $13 million for the six months ended June 30, 2020. Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable and accrued revenue on CMS Energy’s and Consumers’ consolidated balance sheets, were $361 million at June 30, 2021 and $437 million at December 31, 2020. |
Cash And Cash Equivalents
Cash And Cash Equivalents | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 December 31, 2020 CMS Energy, including Consumers Cash and cash equivalents $ 153 $ 32 Restricted cash and cash equivalents 18 17 Current assets held for sale 121 136 Cash and cash equivalents, including restricted amounts $ 292 $ 185 Consumers Cash and cash equivalents $ 52 $ 20 Restricted cash and cash equivalents 16 15 Cash and cash equivalents, including restricted amounts $ 68 $ 35 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. Current Assets Held for Sale: In June 2021, CMS Energy entered into an agreement for EnerBank to merge with Regions Bank. As a result, EnerBank’s cash and cash equivalents are presented as assets held for sale on CMS Energy’s consolidated balance sheets at June 30, 2021 and December 31, 2020. For information regarding the pending merger of EnerBank, see Note 13, Exit Activities and Discontinued Operations. |
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, 2021 December 31, 2020 CMS Energy, including Consumers Cash and cash equivalents $ 153 $ 32 Restricted cash and cash equivalents 18 17 Current assets held for sale 121 136 Cash and cash equivalents, including restricted amounts $ 292 $ 185 Consumers Cash and cash equivalents $ 52 $ 20 Restricted cash and cash equivalents 16 15 Cash and cash equivalents, including restricted amounts $ 68 $ 35 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. Current Assets Held for Sale: In June 2021, CMS Energy entered into an agreement for EnerBank to merge with Regions Bank. As a result, EnerBank’s cash and cash equivalents are presented as assets held for sale on CMS Energy’s consolidated balance sheets at June 30, 2021 and December 31, 2020. For information regarding the pending merger of EnerBank, see Note 13, Exit Activities and Discontinued Operations. |
Reportable Segments
Reportable Segments | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |
Reportable Segments | Reportable SegmentsReportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders. CMS Energy The segments reported for CMS Energy are: • electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan • enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production In June 2021, CMS Energy entered into an agreement for EnerBank to merge with Regions Bank. As a result, EnerBank is not included in the composition of CMS Energy’s reportable segments. EnerBank’s results of operations are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three and six months ended June 30, 2021 and 2020. The assets and liabilities of EnerBank are presented as held for sale on CMS Energy’s consolidated balance sheets at June 30, 2021 and December 31, 2020. For information regarding the pending merger of EnerBank, see Note 13, Exit Activities and Discontinued Operations. CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items. Beginning in 2021, CMS Land, which holds the environmental remediation obligations at Bay Harbor, will be included within other reconciling items rather than within the enterprises segment. This change was not material and was made to align segment reporting with the legal organization and internal reporting of CMS Energy. Consumers The segments reported for Consumers are: • electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan Consumers’ other consolidated entities are presented within other reconciling items. Presented in the following tables is financial information by segment: In Millions Three Months Ended Six Months Ended June 30 2021 2020 2021 2020 CMS Energy, including Consumers Operating revenue Electric utility $ 1,160 $ 1,022 $ 2,294 $ 2,050 Gas utility 333 308 1,136 1,024 Enterprises 65 52 141 110 Total operating revenue – CMS Energy $ 1,558 $ 1,382 $ 3,571 $ 3,184 Consumers Operating revenue Electric utility $ 1,160 $ 1,022 $ 2,294 $ 2,050 Gas utility 333 308 1,136 1,024 Total operating revenue – Consumers $ 1,493 $ 1,330 $ 3,430 $ 3,074 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 154 $ 119 $ 309 $ 237 Gas utility 36 41 217 158 Enterprises 5 1 19 21 Other reconciling items (19) (25) (20) (37) Total net income available to common stockholders – CMS Energy $ 176 $ 136 $ 525 $ 379 Consumers Net income (loss) available to common stockholder Electric utility $ 154 $ 119 $ 309 $ 237 Gas utility 36 41 217 158 Other reconciling items (1) (1) (1) (1) Total net income available to common stockholder – Consumers $ 189 $ 159 $ 525 $ 394 In Millions June 30, 2021 December 31, 2020 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 17,816 $ 17,155 Gas utility 1 10,072 9,581 Enterprises 1,117 1,113 Other reconciling items 22 21 Total plant, property, and equipment, gross – CMS Energy $ 29,027 $ 27,870 Consumers Plant, property, and equipment, gross Electric utility 1 $ 17,816 $ 17,155 Gas utility 1 10,072 9,581 Other reconciling items 22 21 Total plant, property, and equipment, gross – Consumers $ 27,910 $ 26,757 CMS Energy, including Consumers Total assets Electric utility 1 $ 16,078 $ 15,829 Gas utility 1 9,470 9,429 Enterprises 1,266 1,276 Other reconciling items 3,139 3,132 Total assets – CMS Energy $ 29,953 $ 29,666 Consumers Total assets Electric utility 1 $ 16,141 $ 15,893 Gas utility 1 9,518 9,477 Other reconciling items 21 29 Total assets – Consumers $ 25,680 $ 25,399 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 SegmentsReportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders. CMS Energy The segments reported for CMS Energy are: • electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan • enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production In June 2021, CMS Energy entered into an agreement for EnerBank to merge with Regions Bank. As a result, EnerBank is not included in the composition of CMS Energy’s reportable segments. EnerBank’s results of operations are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three and six months ended June 30, 2021 and 2020. The assets and liabilities of EnerBank are presented as held for sale on CMS Energy’s consolidated balance sheets at June 30, 2021 and December 31, 2020. For information regarding the pending merger of EnerBank, see Note 13, Exit Activities and Discontinued Operations. CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items. Beginning in 2021, CMS Land, which holds the environmental remediation obligations at Bay Harbor, will be included within other reconciling items rather than within the enterprises segment. This change was not material and was made to align segment reporting with the legal organization and internal reporting of CMS Energy. Consumers The segments reported for Consumers are: • electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan Consumers’ other consolidated entities are presented within other reconciling items. Presented in the following tables is financial information by segment: In Millions Three Months Ended Six Months Ended June 30 2021 2020 2021 2020 CMS Energy, including Consumers Operating revenue Electric utility $ 1,160 $ 1,022 $ 2,294 $ 2,050 Gas utility 333 308 1,136 1,024 Enterprises 65 52 141 110 Total operating revenue – CMS Energy $ 1,558 $ 1,382 $ 3,571 $ 3,184 Consumers Operating revenue Electric utility $ 1,160 $ 1,022 $ 2,294 $ 2,050 Gas utility 333 308 1,136 1,024 Total operating revenue – Consumers $ 1,493 $ 1,330 $ 3,430 $ 3,074 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 154 $ 119 $ 309 $ 237 Gas utility 36 41 217 158 Enterprises 5 1 19 21 Other reconciling items (19) (25) (20) (37) Total net income available to common stockholders – CMS Energy $ 176 $ 136 $ 525 $ 379 Consumers Net income (loss) available to common stockholder Electric utility $ 154 $ 119 $ 309 $ 237 Gas utility 36 41 217 158 Other reconciling items (1) (1) (1) (1) Total net income available to common stockholder – Consumers $ 189 $ 159 $ 525 $ 394 In Millions June 30, 2021 December 31, 2020 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 17,816 $ 17,155 Gas utility 1 10,072 9,581 Enterprises 1,117 1,113 Other reconciling items 22 21 Total plant, property, and equipment, gross – CMS Energy $ 29,027 $ 27,870 Consumers Plant, property, and equipment, gross Electric utility 1 $ 17,816 $ 17,155 Gas utility 1 10,072 9,581 Other reconciling items 22 21 Total plant, property, and equipment, gross – Consumers $ 27,910 $ 26,757 CMS Energy, including Consumers Total assets Electric utility 1 $ 16,078 $ 15,829 Gas utility 1 9,470 9,429 Enterprises 1,266 1,276 Other reconciling items 3,139 3,132 Total assets – CMS Energy $ 29,953 $ 29,666 Consumers Total assets Electric utility 1 $ 16,141 $ 15,893 Gas utility 1 9,518 9,477 Other reconciling items 21 29 Total assets – Consumers $ 25,680 $ 25,399 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2021 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities CMS Enterprises has a 51-percent ownership interest in Aviator Wind Equity Holdings, which holds a Class B membership interest in Aviator Wind, a 525-MW wind generation project in Coke County, Texas. The Class A membership interest in Aviator Wind is held by a tax equity investor, BHE Renewables, LLC, a subsidiary of Berkshire Hathaway Energy Company. Earnings, tax attributes, and cash flows generated by Aviator Wind are allocated among and distributed to the membership classes in accordance with the ratios specified in the associated limited liability company operating agreement; these ratios change over time and are not representative of the ownership interest percentages of each membership class. Since Aviator Wind’s income and cash flows are not distributed among its investors based on ownership interest percentages, CMS Enterprises allocates Aviator Wind’s income (loss) among its investors by applying the hypothetical liquidation at book value method. This method calculates each investor’s earnings based on a hypothetical liquidation of Aviator Wind at the net book value of its underlying net assets as of the balance sheet date. The liquidation tax gain (loss) is allocated to each investor’s capital account, resulting in income (loss) equal to the period change in the investor’s capital account balance. CMS Enterprises then receives 51 percent of the earnings, tax attributes, and cash flows that were allocated to Aviator Wind Equity Holdings. Aviator Wind Equity Holdings and Aviator Wind represent VIEs. In accordance with the associated limited liability company operating agreement, the tax equity investor is guaranteed preferred returns from Aviator Wind. However, CMS Enterprises manages and controls the operating activities of Aviator Wind Equity Holdings and, ultimately, Aviator Wind. As a result, CMS Enterprises is the primary beneficiary of Aviator Wind Equity Holdings and Aviator Wind, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies. CMS Enterprises consolidates Aviator Wind Equity Holdings and Aviator Wind and presents the Class A membership interest and 49 percent of the Class B membership interest in Aviator Wind as noncontrolling interests. Presented in the following table are the carrying values of the VIEs’ assets and liabilities included on CMS Energy’s consolidated balance sheets: In Millions June 30, 2021 December 31, 2020 Current Cash and cash equivalents $ 12 $ 7 Accounts receivable 7 5 Prepayments and other current assets 1 1 Non-current Plant, property, and equipment, net 680 692 Total assets 1 $ 700 $ 705 Current Accounts payable $ 10 $ 3 Non-current Asset retirement obligations 20 19 Total liabilities $ 30 $ 22 1 Assets may be used only to meet VIEs’ obligations and commitments. CMS Enterprises is obligated under certain indemnities that protect the tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. For additional details on these indemnity obligations, see Note 2, Contingencies and Commitments—Guarantees. Other VIEs : CMS Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While CMS Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships. Presented in the following table is information about these partnerships: Name Nature of the Entity Nature of CMS Energy’s Involvement T.E.S. Filer City Coal-fueled power generator Long-term PPA between partnership and Consumers Employee assignment agreement Grayling Wood waste-fueled power generator Long-term PPA between partnership and Consumers Reduced dispatch agreement with Consumers 1 Operating and management contract Genesee Wood waste-fueled power generator Long-term PPA between partnership and Consumers Reduced dispatch agreement with Consumers 1 Operating and management contract Craven Wood waste-fueled power generator Operating and management contract 1 Reduced dispatch agreements allow the facilities to be dispatched based on the market price of power compared with the cost of production of the plants. This results in fuel cost savings that each partnership shares with Consumers’ customers. The creditors of these partnerships do not have recourse to the general credit of CMS Energy or Consumers. Consumers has not provided any financial or other support during the periods presented that was not previously contractually required. |
Exit Activities and Discontinue
Exit Activities and Discontinued Operations | 6 Months Ended |
Jun. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Exit Activities and Discontinued Operations | Exit Activities and Discontinued Operations Exit Activities : Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn coal-fueled electric generating units in 2023. In 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million. In its order in Consumers’ 2020 electric rate case, the MPSC approved deferred accounting treatment for these costs; Consumers began deferring these costs as a regulatory asset in 2021. Within its 2021 IRP, Consumers proposes to retire the J.H. Campbell coal-fueled generating units. No retention incentive costs related to this retirement will be recognized unless Consumers’ 2021 IRP is approved by the MPSC. As of June 30, 2021, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $3 million has been capitalized as a cost of plant, property, and equipment and an amount of $4 million has been deferred as a regulatory asset. Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets: In Millions Six Months Ended June 30 2021 2020 Retention benefit liability at beginning of period $ 11 $ 4 Costs incurred and charged to maintenance and other operating expenses — 7 Costs deferred as a regulatory asset 1 4 — Costs incurred and capitalized — 1 Retention benefit liability at the end of the period 2 $ 15 $ 12 1 Includes $2 million for the three months ended June 30, 2021. 2 Includes current portion of other liabilities of $5 million at June 30, 2021 and 2020. Discontinued Operations : In June 2021, CMS Energy entered into an agreement for EnerBank to merge with Regions Bank; in exchange, CMS Energy will receive a base purchase price of $960 million in cash, subject to certain adjustments. The merger is expected to close in the fourth quarter of 2021 and is dependent upon the receipt of required regulatory approvals, among other closing conditions. CMS Energy intends to use the proceeds from the merger to fund key initiatives in its core energy business related to safety, reliability, and its clean energy transformation. As a result of the agreement, EnerBank’s results of operations are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three and six months ended June 30, 2021 and 2020. The assets and liabilities of EnerBank are presented as held for sale on CMS Energy’s consolidated balance sheets at June 30, 2021 and December 31, 2020. Also, as a result of the agreement, EnerBank is not included in the composition of CMS Energy’s reportable segments. For more information regarding the composition of CMS Energy’s reportable segments, see Note 11, Reportable Segments. The table below presents the financial results of EnerBank included in income from discontinued operations: In Millions Three Months Ended Six Months Ended June 30 2021 2020 2021 2020 Operating revenue $ 69 $ 61 $ 139 $ 123 Expenses Operating expenses 28 36 43 65 Interest expense 11 14 23 30 Income before income taxes $ 30 $ 11 $ 73 $ 28 Transaction costs (5) — (5) — Income from discontinued operations before income taxes $ 25 $ 11 $ 68 $ 28 Income tax expense 7 3 16 6 Income from discontinued operations, net of tax $ 18 $ 8 $ 52 $ 22 The table below presents the aggregate carrying amounts for the major classes of assets and liabilities held for sale related to EnerBank: In Millions June 30, 2021 December 31, 2020 Assets Current Cash and cash equivalents $ 121 $ 136 Accounts receivable and other current assets 73 18 Notes receivable, less allowance of $28 in 2021 and $32 in 2020 254 275 Total current assets $ 448 $ 429 Non‑current Plant, property, and equipment, net $ 27 $ 22 Notes receivable, less allowance of $92 in 2021 and $91 in 2020 2,511 2,612 Other non‑current assets 46 46 Total non‑current assets $ 2,584 $ 2,680 Total assets $ 3,032 $ 3,109 Liabilities Current Current portion of long-term debt $ 952 $ 915 Accounts payable and other current liabilities 38 38 Total current liabilities $ 990 $ 953 Non‑current Long-term debt $ 1,715 $ 1,890 Other non‑current liabilities 2 4 Total non‑current liabilities $ 1,717 $ 1,894 Total liabilities $ 2,707 $ 2,847 |
Consumers Energy Company | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Exit Activities and Discontinued Operations | Exit Activities and Discontinued Operations Exit Activities : Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn coal-fueled electric generating units in 2023. In 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million. In its order in Consumers’ 2020 electric rate case, the MPSC approved deferred accounting treatment for these costs; Consumers began deferring these costs as a regulatory asset in 2021. Within its 2021 IRP, Consumers proposes to retire the J.H. Campbell coal-fueled generating units. No retention incentive costs related to this retirement will be recognized unless Consumers’ 2021 IRP is approved by the MPSC. As of June 30, 2021, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $3 million has been capitalized as a cost of plant, property, and equipment and an amount of $4 million has been deferred as a regulatory asset. Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets: In Millions Six Months Ended June 30 2021 2020 Retention benefit liability at beginning of period $ 11 $ 4 Costs incurred and charged to maintenance and other operating expenses — 7 Costs deferred as a regulatory asset 1 4 — Costs incurred and capitalized — 1 Retention benefit liability at the end of the period 2 $ 15 $ 12 1 Includes $2 million for the three months ended June 30, 2021. 2 Includes current portion of other liabilities of $5 million at June 30, 2021 and 2020. Discontinued Operations : In June 2021, CMS Energy entered into an agreement for EnerBank to merge with Regions Bank; in exchange, CMS Energy will receive a base purchase price of $960 million in cash, subject to certain adjustments. The merger is expected to close in the fourth quarter of 2021 and is dependent upon the receipt of required regulatory approvals, among other closing conditions. CMS Energy intends to use the proceeds from the merger to fund key initiatives in its core energy business related to safety, reliability, and its clean energy transformation. As a result of the agreement, EnerBank’s results of operations are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three and six months ended June 30, 2021 and 2020. The assets and liabilities of EnerBank are presented as held for sale on CMS Energy’s consolidated balance sheets at June 30, 2021 and December 31, 2020. Also, as a result of the agreement, EnerBank is not included in the composition of CMS Energy’s reportable segments. For more information regarding the composition of CMS Energy’s reportable segments, see Note 11, Reportable Segments. The table below presents the financial results of EnerBank included in income from discontinued operations: In Millions Three Months Ended Six Months Ended June 30 2021 2020 2021 2020 Operating revenue $ 69 $ 61 $ 139 $ 123 Expenses Operating expenses 28 36 43 65 Interest expense 11 14 23 30 Income before income taxes $ 30 $ 11 $ 73 $ 28 Transaction costs (5) — (5) — Income from discontinued operations before income taxes $ 25 $ 11 $ 68 $ 28 Income tax expense 7 3 16 6 Income from discontinued operations, net of tax $ 18 $ 8 $ 52 $ 22 The table below presents the aggregate carrying amounts for the major classes of assets and liabilities held for sale related to EnerBank: In Millions June 30, 2021 December 31, 2020 Assets Current Cash and cash equivalents $ 121 $ 136 Accounts receivable and other current assets 73 18 Notes receivable, less allowance of $28 in 2021 and $32 in 2020 254 275 Total current assets $ 448 $ 429 Non‑current Plant, property, and equipment, net $ 27 $ 22 Notes receivable, less allowance of $92 in 2021 and $91 in 2020 2,511 2,612 Other non‑current assets 46 46 Total non‑current assets $ 2,584 $ 2,680 Total assets $ 3,032 $ 3,109 Liabilities Current Current portion of long-term debt $ 952 $ 915 Accounts payable and other current liabilities 38 38 Total current liabilities $ 990 $ 953 Non‑current Long-term debt $ 1,715 $ 1,890 Other non‑current liabilities 2 4 Total non‑current liabilities $ 1,717 $ 1,894 Total liabilities $ 2,707 $ 2,847 |
Significant Accounting Policies
Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2021 | |
Significant Accounting Policies [Line Items] | |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year. |
Variable Interest Entity, Primary Beneficiary | |
Significant Accounting Policies [Line Items] | |
Consolidation, Variable Interest Entity, Policy | Aviator Wind Equity Holdings and Aviator Wind represent VIEs. In accordance with the associated limited liability company operating agreement, the tax equity investor is guaranteed preferred returns from Aviator Wind. However, CMS Enterprises manages and controls the operating activities of Aviator Wind Equity Holdings and, ultimately, Aviator Wind. As a result, CMS Enterprises is the primary beneficiary of Aviator Wind Equity Holdings and Aviator Wind, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies. |
Variable Interest Entity, Not Primary Beneficiary | |
Significant Accounting Policies [Line Items] | |
Consolidation, Variable Interest Entity, Policy | CMS Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While CMS Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships. |
Consumers Energy Company | |
Significant Accounting Policies [Line Items] | |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year. |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 2021 and in each of the next five years: In Millions 2021 2022 2023 2024 2025 2026 CMS Energy Long-term leachate disposal and operating and maintenance costs $ 2 $ 4 $ 4 $ 4 $ 4 $ 4 |
Guarantees | Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2021: In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from purchase of VIE 1 September 2020 indefinite $ 331 $ — Indemnity obligations from stock and asset sale agreements 2 various indefinite 153 2 Guarantee 3 July 2011 indefinite 30 — Consumers Guarantee 3 July 2011 indefinite $ 30 $ — 1 In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities. 2 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. 3 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] | |
Expected Remediation Costs By Year | Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2021 and in each of the next five years: In Millions 2021 2022 2023 2024 2025 2026 Consumers Remediation and other response activity costs $ 3 $ 9 $ 23 $ 11 $ 2 $ 1 |
Guarantees | Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2021: In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from purchase of VIE 1 September 2020 indefinite $ 331 $ — Indemnity obligations from stock and asset sale agreements 2 various indefinite 153 2 Guarantee 3 July 2011 indefinite 30 — Consumers Guarantee 3 July 2011 indefinite $ 30 $ — 1 In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities. 2 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. 3 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. |
Financings And Capitalization (
Financings And Capitalization (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Instrument [Line Items] | |
Revolving Credit Facilities | The following credit facilities with banks were available at June 30, 2021: In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2024 $ 550 $ — $ 18 $ 532 CMS Enterprises, including subsidiaries September 25, 2025 1 $ 39 $ — $ 39 $ — September 30, 2025 2 18 — 8 10 Consumers 3 June 5, 2024 $ 850 $ — $ 12 $ 838 November 19, 2022 250 — 1 249 April 18, 2022 30 — 30 — 1 This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities. 2 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. 3 Obligations under these facilities are secured by first mortgage bonds of Consumers. |
Schedule of Forward Contracts | Presented in the following table are details of CMS Energy’s forward sales contracts under this program at June 30, 2021: Forward Price Per Share Contract Date Maturity Date Number of Shares Initial June 30, 2021 September 15, 2020 June 30, 2022 846,759 $ 61.04 $ 59.51 December 22, 2020 June 22, 2022 115,595 61.81 60.80 |
Consumers Energy Company | |
Debt Instrument [Line Items] | |
Revolving Credit Facilities | The following credit facilities with banks were available at June 30, 2021: In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2024 $ 550 $ — $ 18 $ 532 CMS Enterprises, including subsidiaries September 25, 2025 1 $ 39 $ — $ 39 $ — September 30, 2025 2 18 — 8 10 Consumers 3 June 5, 2024 $ 850 $ — $ 12 $ 838 November 19, 2022 250 — 1 249 April 18, 2022 30 — 30 — 1 This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities. 2 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. 3 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, 2021 | |
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 Assets 1 Restricted cash equivalents $ 18 $ 17 $ 16 $ 15 Nonqualified deferred compensation plan assets 25 23 19 18 Derivative instruments 3 1 3 1 Total assets $ 46 $ 41 $ 38 $ 34 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 25 $ 23 $ 19 $ 18 Derivative instruments 10 11 1 — Total liabilities $ 35 $ 34 $ 20 $ 18 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 Assets 1 Restricted cash equivalents $ 18 $ 17 $ 16 $ 15 Nonqualified deferred compensation plan assets 25 23 19 18 Derivative instruments 3 1 3 1 Total assets $ 46 $ 41 $ 38 $ 34 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 25 $ 23 $ 19 $ 18 Derivative instruments 10 11 1 — Total liabilities $ 35 $ 34 $ 20 $ 18 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, 2021 | |
Financial Instruments [Line Items] | |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements. In Millions June 30, 2021 December 31, 2020 Carrying Amount Fair Value Carrying Amount Fair Value Total Level Total Level 1 2 3 1 2 3 CMS Energy, including Consumers Assets Long-term receivables 1 $ 15 $ 15 $ — $ — $ 15 $ 17 $ 17 $ — $ — $ 17 Liabilities Long-term debt 2 12,300 13,923 1,220 10,706 1,997 12,315 14,601 1,249 11,267 2,085 Long-term payables 3 30 32 — — 32 33 35 — — 35 Consumers Assets Long-term receivables 1 $ 15 $ 15 $ — $ — $ 15 $ 17 $ 17 $ — $ — $ 17 Notes receivable – related party 4 105 105 — — 105 107 107 — — 107 Liabilities Long-term debt 5 8,094 9,234 — 7,237 1,997 8,106 9,801 — 7,716 2,085 1 Includes current portion of long-term accounts receivable of $10 million at June 30, 2021 and $12 million at December 31, 2020. 2 Includes current portion of long-term debt of $572 million at June 30, 2021 and $571 million at December 31, 2020. 3 Includes current portion of long-term payables of $22 million at June 30, 2021 and $6 million at December 31, 2020. 4 Includes current portion of notes receivable – related party of $7 million at June 30, 2021 and December 31, 2020. 5 Includes current portion of long-term debt of $364 million at June 30, 2021 and December 31, 2020. |
Consumers Energy Company | |
Financial Instruments [Line Items] | |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements. In Millions June 30, 2021 December 31, 2020 Carrying Amount Fair Value Carrying Amount Fair Value Total Level Total Level 1 2 3 1 2 3 CMS Energy, including Consumers Assets Long-term receivables 1 $ 15 $ 15 $ — $ — $ 15 $ 17 $ 17 $ — $ — $ 17 Liabilities Long-term debt 2 12,300 13,923 1,220 10,706 1,997 12,315 14,601 1,249 11,267 2,085 Long-term payables 3 30 32 — — 32 33 35 — — 35 Consumers Assets Long-term receivables 1 $ 15 $ 15 $ — $ — $ 15 $ 17 $ 17 $ — $ — $ 17 Notes receivable – related party 4 105 105 — — 105 107 107 — — 107 Liabilities Long-term debt 5 8,094 9,234 — 7,237 1,997 8,106 9,801 — 7,716 2,085 1 Includes current portion of long-term accounts receivable of $10 million at June 30, 2021 and $12 million at December 31, 2020. 2 Includes current portion of long-term debt of $572 million at June 30, 2021 and $571 million at December 31, 2020. 3 Includes current portion of long-term payables of $22 million at June 30, 2021 and $6 million at December 31, 2020. 4 Includes current portion of notes receivable – related party of $7 million at June 30, 2021 and December 31, 2020. 5 Includes current portion of long-term debt of $364 million at June 30, 2021 and December 31, 2020. |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 2021 2020 2021 2020 2021 2020 2021 2020 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 13 $ 13 $ 27 $ 25 $ 5 $ 4 $ 9 $ 8 Interest cost 15 20 30 41 5 9 11 17 Expected return on plan assets (52) (48) (104) (96) (27) (25) (54) (50) Amortization of: Net loss 26 22 51 44 2 3 4 7 Prior service cost (credit) 1 1 2 1 (13) (14) (26) (28) Settlement loss 2 — 3 — — — — — Net periodic cost (credit) $ 5 $ 8 $ 9 $ 15 $ (28) $ (23) $ (56) $ (46) Consumers Net periodic cost (credit) Service cost $ 13 $ 12 $ 26 $ 24 $ 5 $ 4 $ 9 $ 8 Interest cost 14 19 28 39 5 8 11 16 Expected return on plan assets (49) (46) (98) (91) (26) (24) (51) (47) Amortization of: Net loss 24 21 49 42 2 3 4 7 Prior service cost (credit) 1 1 2 1 (13) (13) (26) (27) Settlement loss 2 — 3 — — — — — Net periodic cost (credit) $ 5 $ 7 $ 10 $ 15 $ (27) $ (22) $ (53) $ (43) |
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 2021 2020 2021 2020 2021 2020 2021 2020 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 13 $ 13 $ 27 $ 25 $ 5 $ 4 $ 9 $ 8 Interest cost 15 20 30 41 5 9 11 17 Expected return on plan assets (52) (48) (104) (96) (27) (25) (54) (50) Amortization of: Net loss 26 22 51 44 2 3 4 7 Prior service cost (credit) 1 1 2 1 (13) (14) (26) (28) Settlement loss 2 — 3 — — — — — Net periodic cost (credit) $ 5 $ 8 $ 9 $ 15 $ (28) $ (23) $ (56) $ (46) Consumers Net periodic cost (credit) Service cost $ 13 $ 12 $ 26 $ 24 $ 5 $ 4 $ 9 $ 8 Interest cost 14 19 28 39 5 8 11 16 Expected return on plan assets (49) (46) (98) (91) (26) (24) (51) (47) Amortization of: Net loss 24 21 49 42 2 3 4 7 Prior service cost (credit) 1 1 2 1 (13) (13) (26) (27) Settlement loss 2 — 3 — — — — — Net periodic cost (credit) $ 5 $ 7 $ 10 $ 15 $ (27) $ (22) $ (53) $ (43) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 2021 2020 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 5.4 4.7 TCJA excess deferred taxes 1 (5.9) (4.3) Production tax credits (5.1) (3.1) Accelerated flow-through of regulatory tax benefits 2 (3.3) (1.6) Research and development tax credits, net 3 (0.3) (2.3) Refund of alternative minimum tax sequestration 4 — (2.3) Other, net 0.4 (0.3) Effective tax rate 12.2 % 11.8 % 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 5.2 5.0 TCJA excess deferred taxes 1 (4.9) (3.6) Production tax credits (3.2) (1.6) Accelerated flow-through of regulatory tax benefits 2 (3.0) (1.6) Research and development tax credits, net 3 (0.2) (1.9) Other, net (0.3) (0.5) Effective tax rate 14.6 % 16.8 % 1 In September 2020, the MPSC authorized Consumers to accelerate the amortization of a regulatory liability associated with unprotected, non ‑ property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022. 2 In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022. 3 In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers. 4 In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020. |
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 2021 2020 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 5.4 4.7 TCJA excess deferred taxes 1 (5.9) (4.3) Production tax credits (5.1) (3.1) Accelerated flow-through of regulatory tax benefits 2 (3.3) (1.6) Research and development tax credits, net 3 (0.3) (2.3) Refund of alternative minimum tax sequestration 4 — (2.3) Other, net 0.4 (0.3) Effective tax rate 12.2 % 11.8 % 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 5.2 5.0 TCJA excess deferred taxes 1 (4.9) (3.6) Production tax credits (3.2) (1.6) Accelerated flow-through of regulatory tax benefits 2 (3.0) (1.6) Research and development tax credits, net 3 (0.2) (1.9) Other, net (0.3) (0.5) Effective tax rate 14.6 % 16.8 % 1 In September 2020, the MPSC authorized Consumers to accelerate the amortization of a regulatory liability associated with unprotected, non ‑ property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022. 2 In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022. 3 In March 2020, CMS Energy finalized a study of research and development tax credits for tax years 2012 through 2018. As a result, in 2020, CMS Energy, including Consumers, recognized a $9 million increase in the credit, net of reserves for uncertain tax positions. Of this amount, $8 million was recognized at Consumers. 4 In January 2020, the IRS issued a decision restoring alternative minimum tax credit refunds sequestered in years prior to 2018. As a result, in 2020, CMS Energy recognized a $9 million income tax benefit for sequestered amounts related to its 2017 tax return. CMS Energy received the refund in April 2020. |
Earnings Per Share - CMS Ener_2
Earnings Per Share - CMS Energy (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Basic And Diluted EPS Computations | Presented in the following table are CMS Energy’s basic and diluted EPS computations based on income from continuing operations: In Millions, Except Per Share Amounts Three Months Ended Six Months Ended June 30 2021 2020 2021 2020 Income available to common stockholders Income from continuing operations $ 153 $ 129 $ 461 $ 358 Less income (loss) attributable to noncontrolling interests (5) 1 (12) 1 Income from continuing operations available to common stockholders – basic and diluted $ 158 $ 128 $ 473 $ 357 Average common shares outstanding Weighted-average shares – basic 289.0 285.5 288.8 284.4 Add dilutive nonvested stock awards 0.4 0.6 0.5 0.7 Add dilutive forward equity sale contracts — 0.4 — 0.7 Weighted-average shares – diluted 289.4 286.5 289.3 285.8 Income from continuing operations per average common share available to common stockholders Basic $ 0.55 $ 0.45 $ 1.64 $ 1.25 Diluted 0.55 0.45 1.64 1.25 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | In Millions Three Months Ended June 30, 2021 Electric Utility Gas Utility Enterprises 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,158 $ 332 $ — $ 1,490 Other — — 25 25 Revenue recognized from contracts with customers $ 1,158 $ 332 $ 25 $ 1,515 Leasing income — — 40 40 Financing income 2 1 — 3 Total operating revenue – CMS Energy $ 1,160 $ 333 $ 65 $ 1,558 Consumers Consumers utility revenue Residential $ 561 $ 220 $ 781 Commercial 390 59 449 Industrial 153 8 161 Other 54 45 99 Revenue recognized from contracts with customers $ 1,158 $ 332 $ 1,490 Financing income 2 1 3 Total operating revenue – Consumers $ 1,160 $ 333 $ 1,493 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 $26 million for the three months ended June 30, 2021. In Millions Three Months Ended June 30, 2020 Electric Utility Gas Utility Enterprises 1 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 — 4 Total operating revenue – CMS Energy $ 1,022 $ 308 $ 52 $ 1,382 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 Six Months Ended June 30, 2021 Electric Utility Gas Utility Enterprises 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,289 $ 1,133 $ — $ 3,422 Other — — 55 55 Revenue recognized from contracts with customers $ 2,289 $ 1,133 $ 55 $ 3,477 Leasing income — — 86 86 Financing income 5 3 — 8 Total operating revenue – CMS Energy $ 2,294 $ 1,136 $ 141 $ 3,571 Consumers Consumers utility revenue Residential $ 1,129 $ 774 $ 1,903 Commercial 735 222 957 Industrial 291 31 322 Other 134 106 240 Revenue recognized from contracts with customers $ 2,289 $ 1,133 $ 3,422 Financing income 5 3 8 Total operating revenue – Consumers $ 2,294 $ 1,136 $ 3,430 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 $59 million for the six months ended June 30, 2021. In Millions Six Months Ended June 30, 2020 Electric Utility Gas Utility Enterprises 1 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 — 9 Total operating revenue – CMS Energy $ 2,050 $ 1,024 $ 110 $ 3,184 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. |
Consumers Energy Company | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | In Millions Three Months Ended June 30, 2021 Electric Utility Gas Utility Enterprises 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,158 $ 332 $ — $ 1,490 Other — — 25 25 Revenue recognized from contracts with customers $ 1,158 $ 332 $ 25 $ 1,515 Leasing income — — 40 40 Financing income 2 1 — 3 Total operating revenue – CMS Energy $ 1,160 $ 333 $ 65 $ 1,558 Consumers Consumers utility revenue Residential $ 561 $ 220 $ 781 Commercial 390 59 449 Industrial 153 8 161 Other 54 45 99 Revenue recognized from contracts with customers $ 1,158 $ 332 $ 1,490 Financing income 2 1 3 Total operating revenue – Consumers $ 1,160 $ 333 $ 1,493 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 $26 million for the three months ended June 30, 2021. In Millions Three Months Ended June 30, 2020 Electric Utility Gas Utility Enterprises 1 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 — 4 Total operating revenue – CMS Energy $ 1,022 $ 308 $ 52 $ 1,382 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 Six Months Ended June 30, 2021 Electric Utility Gas Utility Enterprises 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,289 $ 1,133 $ — $ 3,422 Other — — 55 55 Revenue recognized from contracts with customers $ 2,289 $ 1,133 $ 55 $ 3,477 Leasing income — — 86 86 Financing income 5 3 — 8 Total operating revenue – CMS Energy $ 2,294 $ 1,136 $ 141 $ 3,571 Consumers Consumers utility revenue Residential $ 1,129 $ 774 $ 1,903 Commercial 735 222 957 Industrial 291 31 322 Other 134 106 240 Revenue recognized from contracts with customers $ 2,289 $ 1,133 $ 3,422 Financing income 5 3 8 Total operating revenue – Consumers $ 2,294 $ 1,136 $ 3,430 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 $59 million for the six months ended June 30, 2021. In Millions Six Months Ended June 30, 2020 Electric Utility Gas Utility Enterprises 1 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 — 9 Total operating revenue – CMS Energy $ 2,050 $ 1,024 $ 110 $ 3,184 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. |
Cash And Cash Equivalents (Tabl
Cash And Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 December 31, 2020 CMS Energy, including Consumers Cash and cash equivalents $ 153 $ 32 Restricted cash and cash equivalents 18 17 Current assets held for sale 121 136 Cash and cash equivalents, including restricted amounts $ 292 $ 185 Consumers Cash and cash equivalents $ 52 $ 20 Restricted cash and cash equivalents 16 15 Cash and cash equivalents, including restricted amounts $ 68 $ 35 |
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, 2021 December 31, 2020 CMS Energy, including Consumers Cash and cash equivalents $ 153 $ 32 Restricted cash and cash equivalents 18 17 Current assets held for sale 121 136 Cash and cash equivalents, including restricted amounts $ 292 $ 185 Consumers Cash and cash equivalents $ 52 $ 20 Restricted cash and cash equivalents 16 15 Cash and cash equivalents, including restricted amounts $ 68 $ 35 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 2021 2020 2021 2020 CMS Energy, including Consumers Operating revenue Electric utility $ 1,160 $ 1,022 $ 2,294 $ 2,050 Gas utility 333 308 1,136 1,024 Enterprises 65 52 141 110 Total operating revenue – CMS Energy $ 1,558 $ 1,382 $ 3,571 $ 3,184 Consumers Operating revenue Electric utility $ 1,160 $ 1,022 $ 2,294 $ 2,050 Gas utility 333 308 1,136 1,024 Total operating revenue – Consumers $ 1,493 $ 1,330 $ 3,430 $ 3,074 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 154 $ 119 $ 309 $ 237 Gas utility 36 41 217 158 Enterprises 5 1 19 21 Other reconciling items (19) (25) (20) (37) Total net income available to common stockholders – CMS Energy $ 176 $ 136 $ 525 $ 379 Consumers Net income (loss) available to common stockholder Electric utility $ 154 $ 119 $ 309 $ 237 Gas utility 36 41 217 158 Other reconciling items (1) (1) (1) (1) Total net income available to common stockholder – Consumers $ 189 $ 159 $ 525 $ 394 In Millions June 30, 2021 December 31, 2020 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 17,816 $ 17,155 Gas utility 1 10,072 9,581 Enterprises 1,117 1,113 Other reconciling items 22 21 Total plant, property, and equipment, gross – CMS Energy $ 29,027 $ 27,870 Consumers Plant, property, and equipment, gross Electric utility 1 $ 17,816 $ 17,155 Gas utility 1 10,072 9,581 Other reconciling items 22 21 Total plant, property, and equipment, gross – Consumers $ 27,910 $ 26,757 CMS Energy, including Consumers Total assets Electric utility 1 $ 16,078 $ 15,829 Gas utility 1 9,470 9,429 Enterprises 1,266 1,276 Other reconciling items 3,139 3,132 Total assets – CMS Energy $ 29,953 $ 29,666 Consumers Total assets Electric utility 1 $ 16,141 $ 15,893 Gas utility 1 9,518 9,477 Other reconciling items 21 29 Total assets – Consumers $ 25,680 $ 25,399 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 2021 2020 2021 2020 CMS Energy, including Consumers Operating revenue Electric utility $ 1,160 $ 1,022 $ 2,294 $ 2,050 Gas utility 333 308 1,136 1,024 Enterprises 65 52 141 110 Total operating revenue – CMS Energy $ 1,558 $ 1,382 $ 3,571 $ 3,184 Consumers Operating revenue Electric utility $ 1,160 $ 1,022 $ 2,294 $ 2,050 Gas utility 333 308 1,136 1,024 Total operating revenue – Consumers $ 1,493 $ 1,330 $ 3,430 $ 3,074 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 154 $ 119 $ 309 $ 237 Gas utility 36 41 217 158 Enterprises 5 1 19 21 Other reconciling items (19) (25) (20) (37) Total net income available to common stockholders – CMS Energy $ 176 $ 136 $ 525 $ 379 Consumers Net income (loss) available to common stockholder Electric utility $ 154 $ 119 $ 309 $ 237 Gas utility 36 41 217 158 Other reconciling items (1) (1) (1) (1) Total net income available to common stockholder – Consumers $ 189 $ 159 $ 525 $ 394 In Millions June 30, 2021 December 31, 2020 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 17,816 $ 17,155 Gas utility 1 10,072 9,581 Enterprises 1,117 1,113 Other reconciling items 22 21 Total plant, property, and equipment, gross – CMS Energy $ 29,027 $ 27,870 Consumers Plant, property, and equipment, gross Electric utility 1 $ 17,816 $ 17,155 Gas utility 1 10,072 9,581 Other reconciling items 22 21 Total plant, property, and equipment, gross – Consumers $ 27,910 $ 26,757 CMS Energy, including Consumers Total assets Electric utility 1 $ 16,078 $ 15,829 Gas utility 1 9,470 9,429 Enterprises 1,266 1,276 Other reconciling items 3,139 3,132 Total assets – CMS Energy $ 29,953 $ 29,666 Consumers Total assets Electric utility 1 $ 16,141 $ 15,893 Gas utility 1 9,518 9,477 Other reconciling items 21 29 Total assets – Consumers $ 25,680 $ 25,399 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities | Presented in the following table are the carrying values of the VIEs’ assets and liabilities included on CMS Energy’s consolidated balance sheets: In Millions June 30, 2021 December 31, 2020 Current Cash and cash equivalents $ 12 $ 7 Accounts receivable 7 5 Prepayments and other current assets 1 1 Non-current Plant, property, and equipment, net 680 692 Total assets 1 $ 700 $ 705 Current Accounts payable $ 10 $ 3 Non-current Asset retirement obligations 20 19 Total liabilities $ 30 $ 22 1 Assets may be used only to meet VIEs’ obligations and commitments. Presented in the following table is information about these partnerships: Name Nature of the Entity Nature of CMS Energy’s Involvement T.E.S. Filer City Coal-fueled power generator Long-term PPA between partnership and Consumers Employee assignment agreement Grayling Wood waste-fueled power generator Long-term PPA between partnership and Consumers Reduced dispatch agreement with Consumers 1 Operating and management contract Genesee Wood waste-fueled power generator Long-term PPA between partnership and Consumers Reduced dispatch agreement with Consumers 1 Operating and management contract Craven Wood waste-fueled power generator Operating and management contract 1 Reduced dispatch agreements allow the facilities to be dispatched based on the market price of power compared with the cost of production of the plants. This results in fuel cost savings that each partnership shares with Consumers’ customers. |
Exit Activities and Discontin_2
Exit Activities and Discontinued Operations - (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended June 30 2021 2020 Retention benefit liability at beginning of period $ 11 $ 4 Costs incurred and charged to maintenance and other operating expenses — 7 Costs deferred as a regulatory asset 1 4 — Costs incurred and capitalized — 1 Retention benefit liability at the end of the period 2 $ 15 $ 12 1 Includes $2 million for the three months ended June 30, 2021. 2 Includes current portion of other liabilities of $5 million at June 30, 2021 and 2020. |
Schedule of Discontinued Operations | The table below presents the financial results of EnerBank included in income from discontinued operations: In Millions Three Months Ended Six Months Ended June 30 2021 2020 2021 2020 Operating revenue $ 69 $ 61 $ 139 $ 123 Expenses Operating expenses 28 36 43 65 Interest expense 11 14 23 30 Income before income taxes $ 30 $ 11 $ 73 $ 28 Transaction costs (5) — (5) — Income from discontinued operations before income taxes $ 25 $ 11 $ 68 $ 28 Income tax expense 7 3 16 6 Income from discontinued operations, net of tax $ 18 $ 8 $ 52 $ 22 The table below presents the aggregate carrying amounts for the major classes of assets and liabilities held for sale related to EnerBank: In Millions June 30, 2021 December 31, 2020 Assets Current Cash and cash equivalents $ 121 $ 136 Accounts receivable and other current assets 73 18 Notes receivable, less allowance of $28 in 2021 and $32 in 2020 254 275 Total current assets $ 448 $ 429 Non‑current Plant, property, and equipment, net $ 27 $ 22 Notes receivable, less allowance of $92 in 2021 and $91 in 2020 2,511 2,612 Other non‑current assets 46 46 Total non‑current assets $ 2,584 $ 2,680 Total assets $ 3,032 $ 3,109 Liabilities Current Current portion of long-term debt $ 952 $ 915 Accounts payable and other current liabilities 38 38 Total current liabilities $ 990 $ 953 Non‑current Long-term debt $ 1,715 $ 1,890 Other non‑current liabilities 2 4 Total non‑current liabilities $ 1,717 $ 1,894 Total liabilities $ 2,707 $ 2,847 |
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 Six Months Ended June 30 2021 2020 Retention benefit liability at beginning of period $ 11 $ 4 Costs incurred and charged to maintenance and other operating expenses — 7 Costs deferred as a regulatory asset 1 4 — Costs incurred and capitalized — 1 Retention benefit liability at the end of the period 2 $ 15 $ 12 1 Includes $2 million for the three months ended June 30, 2021. 2 Includes current portion of other liabilities of $5 million at June 30, 2021 and 2020. |
Regulatory Matters - Quarterly
Regulatory Matters - Quarterly Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Public Utilities, General Disclosures [Line Items] | |||||
Regulatory liabilities | $ 214 | $ 214 | $ 151 | ||
Operating Revenue | 1,558 | $ 1,382 | 3,571 | $ 3,184 | |
Consumers Energy Company | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Regulatory liabilities | 214 | 214 | 151 | ||
Operating Revenue | 1,493 | $ 1,330 | 3,430 | $ 3,074 | |
Consumers Energy Company | Electric Rate Case | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Recommended disallowed costs | 39 | 39 | |||
Consumers Energy Company | Energy Waste Reduction Plan Incentive | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Requested recovery/collection | 42 | 42 | |||
Operating Revenue | 42 | ||||
Reserve for customer refunds | Consumers Energy Company | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Regulatory liabilities | 23 | 23 | 28 | ||
Gain shared with customers | Consumers Energy Company | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Regulatory liabilities | $ 14 | $ 14 | $ 14 |
Contingencies and Commitments_2
Contingencies and Commitments (Contingencies And Commitments) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 29 Months Ended | ||||
Sep. 30, 2020USD ($) | May 30, 2020USD ($) | Jun. 30, 2021USD ($)siteMW | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)siteMW | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)siteMW | Dec. 31, 2020USD ($) | |
Loss Contingencies [Line Items] | ||||||||
Regulatory assets | $ 2,606,000 | $ 2,606,000 | $ 2,606,000 | $ 2,653,000 | ||||
Operating Revenue | 1,558,000 | $ 1,382,000 | 3,571,000 | $ 3,184,000 | ||||
Consumers Energy Company | ||||||||
Loss Contingencies [Line Items] | ||||||||
Regulatory assets | 2,606,000 | 2,606,000 | 2,606,000 | $ 2,653,000 | ||||
Cost of gas sold | 94,000 | 80,000 | 372,000 | 350,000 | ||||
Maintenance and other operating expenses | (339,000) | (302,000) | (631,000) | (580,000) | ||||
Operating Revenue | 1,493,000 | $ 1,330,000 | 3,430,000 | $ 3,074,000 | ||||
Consumers Energy Company | Manufactured Gas Plant | ||||||||
Loss Contingencies [Line Items] | ||||||||
Regulatory assets | 115,000 | 115,000 | 115,000 | |||||
Bay Harbor | ||||||||
Loss Contingencies [Line Items] | ||||||||
Accrual for environmental loss contingencies | $ 44,000 | $ 44,000 | $ 44,000 | |||||
Discounted projected costs rate | 4.34% | 4.34% | 4.34% | |||||
Accrual for environmental loss contingencies, inflation rate | 1.00% | 1.00% | 1.00% | |||||
Remaining undiscounted obligation amount | $ 55,000 | $ 55,000 | $ 55,000 | |||||
CERCLA Liability | Consumers Energy Company | ||||||||
Loss Contingencies [Line Items] | ||||||||
Accrual for environmental loss contingencies | 3,000 | 3,000 | 3,000 | |||||
CERCLA Liability | Minimum | Consumers Energy Company | ||||||||
Loss Contingencies [Line Items] | ||||||||
Remediation and other response activity costs | 3,000 | 3,000 | 3,000 | |||||
CERCLA Liability | Maximum | Consumers Energy Company | ||||||||
Loss Contingencies [Line Items] | ||||||||
Remediation and other response activity costs | 8,000 | 8,000 | 8,000 | |||||
Manufactured Gas Plant | Consumers Energy Company | ||||||||
Loss Contingencies [Line Items] | ||||||||
Accrual for environmental loss contingencies | $ 56,000 | $ 56,000 | $ 56,000 | |||||
Discounted projected costs rate | 2.57% | 2.57% | 2.57% | |||||
Accrual for environmental loss contingencies, inflation rate | 2.50% | 2.50% | 2.50% | |||||
Remaining undiscounted obligation amount | $ 61,000 | $ 61,000 | $ 61,000 | |||||
Number of former MGPs | site | 23 | 23 | 23 | |||||
Regulatory asset collection period | 10 years | |||||||
Electric Utility | NREPA | Consumers Energy Company | ||||||||
Loss Contingencies [Line Items] | ||||||||
Accrual for environmental loss contingencies | $ 3,000 | $ 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 | 3,000 | |||||
Electric Utility | NREPA | Maximum | Consumers Energy Company | ||||||||
Loss Contingencies [Line Items] | ||||||||
Remediation and other response activity costs | 4,000 | 4,000 | 4,000 | |||||
Gas Utility | NREPA | Consumers Energy Company | ||||||||
Loss Contingencies [Line Items] | ||||||||
Accrual for environmental loss contingencies | 1,000 | 1,000 | 1,000 | |||||
Gas Utility | NREPA | Maximum | Consumers Energy Company | ||||||||
Loss Contingencies [Line Items] | ||||||||
Accrual for environmental loss contingencies | 3,000 | 3,000 | 3,000 | |||||
Equatorial Guinea Tax Claim | ||||||||
Loss Contingencies [Line Items] | ||||||||
Foreign government tax claim on sale | 152,000 | 152,000 | 152,000 | |||||
Civil Case, Consumers V. MPSC Staff | Consumers Energy Company | ||||||||
Loss Contingencies [Line Items] | ||||||||
Civil penalty | $ 10 | |||||||
Ray Compressor Station | Consumers Energy Company | ||||||||
Loss Contingencies [Line Items] | ||||||||
Plant additions | 17,000 | |||||||
Insurance recoveries | 10,000 | 10,000 | 10,000 | |||||
Ray Compressor Station | Consumers Energy Company | Repair Costs | ||||||||
Loss Contingencies [Line Items] | ||||||||
Insurance recoveries | 7,000 | 7,000 | 7,000 | |||||
Ray Compressor Station | Consumers Energy Company | Incremental Gas Purchases | ||||||||
Loss Contingencies [Line Items] | ||||||||
Insurance recoveries | $ 3,000 | 3,000 | $ 3,000 | |||||
Ray Compressor Station | Consumers Energy Company | Insurance Recoveries | ||||||||
Loss Contingencies [Line Items] | ||||||||
Reduction to plant, property and equipment | 4,000 | |||||||
Maintenance and other operating expenses | 3,000 | |||||||
Operating Revenue | $ 3,000 | |||||||
Ray Compressor Station | Consumers Energy Company | GCR underrecoveries | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cost of gas sold | $ 7,000 | |||||||
New Covert Generating Facility | Consumers Energy Company | ||||||||
Loss Contingencies [Line Items] | ||||||||
Nameplate capacity (in MW) | MW | 1,176 | 1,176 | 1,176 | |||||
Long-term purchase commitment, amount | $ 810,000 | |||||||
Enterprise Segment Generating Units | Consumers Energy Company | ||||||||
Loss Contingencies [Line Items] | ||||||||
Nameplate capacity (in MW) | MW | 1,001 | 1,001 | 1,001 | |||||
Long-term purchase commitment, amount | $ 515,000 |
Contingencies and Commitments_3
Contingencies and Commitments (Expected Remediation Cost By Year) (Details) $ in Millions | Jun. 30, 2021USD ($) |
Bay Harbor | |
Site Contingency [Line Items] | |
2021 | $ 2 |
2022 | 4 |
2023 | 4 |
2024 | 4 |
2025 | 4 |
2026 | 4 |
Manufactured Gas Plant | Consumers Energy Company | |
Site Contingency [Line Items] | |
2021 | 3 |
2022 | 9 |
2023 | 23 |
2024 | 11 |
2025 | 2 |
2026 | $ 1 |
Contingencies and Commitments_4
Contingencies and Commitments (Guarantees) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership | |
Guarantees And Other Contingencies [Line Items] | |
Ownership percentage | 49.00% |
Guarantees | |
Guarantees And Other Contingencies [Line Items] | |
Expiration Date | indefinite |
Maximum Obligation | $ 30 |
Carrying Amount | $ 0 |
Guarantees | Consumers Energy Company | |
Guarantees And Other Contingencies [Line Items] | |
Expiration Date | indefinite |
Maximum Obligation | $ 30 |
Carrying Amount | $ 0 |
Indemnification Agreement From Purchase Of Variable Interest Entity | |
Guarantees And Other Contingencies [Line Items] | |
Expiration Date | indefinite |
Maximum Obligation | $ 331 |
Carrying Amount | $ 0 |
Indemnity Obligations From Stock And Asset Sales Agreements | |
Guarantees And Other Contingencies [Line Items] | |
Expiration Date | indefinite |
Maximum Obligation | $ 153 |
Carrying Amount | 2 |
Tax And Other Indemnity Obligations | Consumers Energy Company | |
Guarantees And Other Contingencies [Line Items] | |
Carrying Amount | $ 1 |
Financings And Capitalization_2
Financings And Capitalization (Revolving Credit Facilities) (Details) | Jun. 30, 2021USD ($) |
Revolving Credit Facilities June 5, 2024 | Consumers Energy Company | |
Line of Credit Facility [Line Items] | |
Amount of Facility | $ 850,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 12,000,000 |
Amount Available | 838,000,000 |
Revolving Credit Facilities November 19, 2022 | 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 | Revolving Credit Facilities June 5, 2024 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 550,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 18,000,000 |
Amount Available | 532,000,000 |
CMS Enterprises Including Subsidiaries | Revolving Credit Facilities September 25, 2025 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 39,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 39,000,000 |
Amount Available | 0 |
CMS Enterprises Including Subsidiaries | Revolving Credit Facilities September 30, 2025 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 18,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 8,000,000 |
Amount Available | 10,000,000 |
Letter of Credit | CMS Enterprises Including Subsidiaries | Revolving Credit Facilities September 30, 2025 | |
Line of Credit Facility [Line Items] | |
Amount Available | $ 8,000,000 |
Financings And Capitalization_3
Financings And Capitalization (Narrative) (Details) | Jul. 01, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($) | Jun. 30, 2021USD ($) |
Financing And Capitalization [Line Items] | |||
Limitation on payment of stock dividends | $ 5,800,000,000 | ||
Dividends paid | 380,000,000 | ||
Stock offering program maximum value | 500,000,000 | ||
Series C Preferred Stock Depositary Shares | Subsequent Event | |||
Financing And Capitalization [Line Items] | |||
Depositary share conversion ratio | 0.001 | ||
Number of shares issued (in shares) | shares | 9,200,000 | ||
Issue price (in dollars per share) | $ / shares | $ 25 | ||
Proceeds from issuance of preferred stock | $ 224,000,000 | ||
Dividend rate | 4.20% | ||
Optional redemption price (in dollars per share) | $ / shares | $ 25 | ||
Series C Preferred Stock | Subsequent Event | |||
Financing And Capitalization [Line Items] | |||
Optional redemption price (in dollars per share) | $ / shares | $ 25,000 | ||
Consumers Energy Company | |||
Financing And Capitalization [Line Items] | |||
Notes payable – related parties | $ 307,000,000 | 0 | |
Unrestricted retained earnings | 1,800,000,000 | ||
Consumers Energy Company | Credit Agreement | |||
Financing And Capitalization [Line Items] | |||
Maximum borrowing capacity | $ 350,000,000 | ||
Notes payable – related parties | 0 | ||
Consumers Energy Company | Credit Agreement | London Interbank Offered Rate (LIBOR) | |||
Financing And Capitalization [Line Items] | |||
Basis spread on variable rate | 0.10% | ||
Consumers Energy Company | Commercial Paper | |||
Financing And Capitalization [Line Items] | |||
Short-term debt authorized borrowings | 500,000,000 | ||
Short-term borrowings outstanding | $ 0 |
Financings and Capitalization_4
Financings and Capitalization (Forward Stock Contracts) (Details) - $ / shares | Jun. 30, 2021 | Dec. 22, 2020 | Sep. 15, 2020 |
Forward Contracts Entered Into September 15, 2020 And Maturing June 30, 2022 | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of Shares | 846,759 | ||
Initial forward price (in dollars per share) | $ 59.51 | $ 61.04 | |
Forward Contracts Entered Into December 22, 2020 And Maturing June 22, 2022 | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of Shares | 115,595 | ||
Initial forward price (in dollars per share) | $ 60.80 | $ 61.81 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Restricted cash equivalents | $ 18 | $ 17 |
Derivative instruments | 3 | 1 |
Liabilities | ||
Derivative instruments | 10 | 11 |
Consumers Energy Company | ||
Assets | ||
Restricted cash equivalents | 16 | 15 |
Derivative instruments | 3 | 1 |
Liabilities | ||
Derivative instruments | 1 | 0 |
Fair Value, Inputs, Level 1 | ||
Assets | ||
Restricted cash equivalents | 18 | 17 |
Nonqualified deferred compensation plan assets | 25 | 23 |
Liabilities | ||
Nonqualified deferred compensation plan liabilities | 25 | 23 |
Fair Value, Inputs, Level 1 | Consumers Energy Company | ||
Assets | ||
Restricted cash equivalents | 16 | 15 |
Nonqualified deferred compensation plan assets | 19 | 18 |
Liabilities | ||
Nonqualified deferred compensation plan liabilities | 19 | 18 |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Assets | ||
Total assets | 46 | 41 |
Liabilities | ||
Total liabilities | 35 | 34 |
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company | ||
Assets | ||
Total assets | 38 | 34 |
Liabilities | ||
Total liabilities | $ 20 | $ 18 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash flow hedge gain (loss) | $ 1 | $ (5) | |
Derivative instruments | 10 | $ 11 | |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional amount | 81 | 85 | |
Other Liabilities | Designated as Hedging Instrument | Cash Flow Hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative instruments | $ 7 | $ 9 |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Liabilities | ||
Current accounts receivable | $ 10 | $ 12 |
Current portion of long term debt | 572 | 571 |
Current portion of long-term payables | 22 | 6 |
Carrying Amount | ||
Assets | ||
Long-term receivables | 15 | 17 |
Liabilities | ||
Long-term debt | 12,300 | 12,315 |
Long-term payables | 30 | 33 |
Fair Value | ||
Assets | ||
Long-term receivables | 15 | 17 |
Liabilities | ||
Long-term debt | 13,923 | 14,601 |
Long-term payables | 32 | 35 |
Consumers Energy Company | ||
Liabilities | ||
Current accounts receivable | 10 | 12 |
Current portion of long term debt | 364 | 364 |
DB SERP note receivable – related party | 7 | 7 |
Consumers Energy Company | Carrying Amount | ||
Assets | ||
Long-term receivables | 15 | 17 |
Notes receivable related party | 105 | 107 |
Liabilities | ||
Long-term debt | 8,094 | 8,106 |
Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 15 | 17 |
Notes receivable related party | 105 | 107 |
Liabilities | ||
Long-term debt | 9,234 | 9,801 |
Fair Value, Inputs, Level 1 | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Liabilities | ||
Long-term debt | 1,220 | 1,249 |
Long-term payables | 0 | 0 |
Fair Value, Inputs, Level 1 | Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Notes receivable related party | 0 | 0 |
Liabilities | ||
Long-term debt | 0 | 0 |
Level 2 | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Liabilities | ||
Long-term debt | 10,706 | 11,267 |
Long-term payables | 0 | 0 |
Level 2 | Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Notes receivable related party | 0 | 0 |
Liabilities | ||
Long-term debt | 7,237 | 7,716 |
Level 3 | Fair Value | ||
Assets | ||
Long-term receivables | 15 | 17 |
Liabilities | ||
Long-term debt | 1,997 | 2,085 |
Long-term payables | 32 | 35 |
Level 3 | Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 15 | 17 |
Notes receivable related party | 105 | 107 |
Liabilities | ||
Long-term debt | $ 1,997 | $ 2,085 |
Retirement Benefits (Schedule O
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
DB Pension Plans | ||||
Defined Benefit Plan, Roll Forwards [Abstract] | ||||
Service cost | $ 13 | $ 13 | $ 27 | $ 25 |
Interest cost | 15 | 20 | 30 | 41 |
Expected return on plan assets | (52) | (48) | (104) | (96) |
Amortization of | ||||
Net loss | 26 | 22 | 51 | 44 |
Prior service cost (credit) | 1 | 1 | 2 | 1 |
Settlement loss | 2 | 0 | 3 | 0 |
Net periodic cost (credit) | 5 | 8 | 9 | 15 |
DB Pension Plans | Consumers Energy Company | ||||
Defined Benefit Plan, Roll Forwards [Abstract] | ||||
Service cost | 13 | 12 | 26 | 24 |
Interest cost | 14 | 19 | 28 | 39 |
Expected return on plan assets | (49) | (46) | (98) | (91) |
Amortization of | ||||
Net loss | 24 | 21 | 49 | 42 |
Prior service cost (credit) | 1 | 1 | 2 | 1 |
Settlement loss | 2 | 0 | 3 | 0 |
Net periodic cost (credit) | 5 | 7 | 10 | 15 |
OPEB Plan | ||||
Defined Benefit Plan, Roll Forwards [Abstract] | ||||
Service cost | 5 | 4 | 9 | 8 |
Interest cost | 5 | 9 | 11 | 17 |
Expected return on plan assets | (27) | (25) | (54) | (50) |
Amortization of | ||||
Net loss | 2 | 3 | 4 | 7 |
Prior service cost (credit) | (13) | (14) | (26) | (28) |
Settlement loss | 0 | 0 | 0 | 0 |
Net periodic cost (credit) | (28) | (23) | (56) | (46) |
OPEB Plan | Consumers Energy Company | ||||
Defined Benefit Plan, Roll Forwards [Abstract] | ||||
Service cost | 5 | 4 | 9 | 8 |
Interest cost | 5 | 8 | 11 | 16 |
Expected return on plan assets | (26) | (24) | (51) | (47) |
Amortization of | ||||
Net loss | 2 | 3 | 4 | 7 |
Prior service cost (credit) | (13) | (13) | (26) | (27) |
Settlement loss | 0 | 0 | 0 | 0 |
Net periodic cost (credit) | $ (27) | $ (22) | $ (53) | $ (43) |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Rate Reconciliation) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
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 | 5.40% | 4.70% | |
TCJA excess deferred taxes | (5.90%) | (4.30%) | |
Production tax credits | (5.10%) | (3.10%) | |
Accelerated flow-through of regulatory tax benefits | (3.30%) | (1.60%) | |
Research and development tax credits, net | (0.30%) | (2.30%) | |
Refund of alternative minimum tax sequestration | 0.00% | (2.30%) | |
Other, net | 0.40% | (0.30%) | |
Effective tax rate | 12.20% | 11.80% | |
Refund of alternative minimum tax sequestration | $ (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 | 5.20% | 5.00% | |
TCJA excess deferred taxes | (4.90%) | (3.60%) | |
Production tax credits | (3.20%) | (1.60%) | |
Accelerated flow-through of regulatory tax benefits | (3.00%) | (1.60%) | |
Research and development tax credits, net | (0.20%) | (1.90%) | |
Other, net | (0.30%) | (0.50%) | |
Effective tax rate | 14.60% | 16.80% | |
Research Tax Credit Carryforward | |||
Increase (decrease) in income taxes from: | |||
Increase (decrease) in tax credit carryforward | 9 | ||
Research Tax Credit Carryforward | Consumers Energy Company | |||
Increase (decrease) in income taxes from: | |||
Increase (decrease) in tax credit carryforward | $ 8 |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income available to common stockholders | ||||
Income from continuing operations | $ 153 | $ 129 | $ 461 | $ 358 |
Income (loss) attributable to noncontrolling interests | (5) | 1 | (12) | 1 |
Income from continuing operations available to common stockholders – basic and diluted | $ 158 | $ 128 | $ 473 | $ 357 |
Average common shares outstanding | ||||
Weighted average shares - basic (in shares) | 289 | 285.5 | 288.8 | 284.4 |
Dilutive nonvested stock awards (in shares) | 0.4 | 0.6 | 0.5 | 0.7 |
Dilutive forward equity sale contracts | 0 | 0.4 | 0 | 0.7 |
Weighted average shares - diluted (in shares) | 289.4 | 286.5 | 289.3 | 285.8 |
Income from continuing operations per average common share available to common stockholders - Basic (in dollars per share) | $ 0.55 | $ 0.45 | $ 1.64 | $ 1.25 |
Income from continuing operations per average common share available to common stockholders - Diluted (in dollars per share) | $ 0.55 | $ 0.45 | $ 1.64 | $ 1.25 |
Revenue (Components of Operatin
Revenue (Components of Operating Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | $ 1,515 | $ 1,343 | $ 3,477 | $ 3,101 |
Leasing income | 40 | 35 | 86 | 74 |
Financing income | 3 | 4 | 8 | 9 |
Total operating revenue | 1,558 | 1,382 | 3,571 | 3,184 |
Electric Utility | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 1,158 | 1,020 | 2,289 | 2,045 |
Financing income | 2 | 2 | 5 | 5 |
Total operating revenue | 1,160 | 1,022 | 2,294 | 2,050 |
Gas Utility | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 332 | 306 | 1,133 | 1,020 |
Financing income | 1 | 2 | 3 | 4 |
Total operating revenue | 333 | 308 | 1,136 | 1,024 |
Enterprises | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 25 | 17 | 55 | 36 |
Leasing income | 40 | 35 | 86 | 74 |
Total operating revenue | 65 | 52 | 141 | 110 |
Variable lease income | 26 | 21 | 59 | 46 |
Consumers Energy Company | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 1,490 | 1,326 | 3,422 | 3,065 |
Financing income | 3 | 4 | 8 | 9 |
Total operating revenue | 1,493 | 1,330 | 3,430 | 3,074 |
Consumers Energy Company | Electric Utility | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 1,158 | 1,020 | 2,289 | 2,045 |
Financing income | 2 | 2 | 5 | 5 |
Total operating revenue | 1,160 | 1,022 | 2,294 | 2,050 |
Consumers Energy Company | Gas Utility | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 332 | 306 | 1,133 | 1,020 |
Financing income | 1 | 2 | 3 | 4 |
Total operating revenue | 333 | 308 | 1,136 | 1,024 |
Residential | Consumers Energy Company | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 781 | 713 | 1,903 | 1,687 |
Residential | Consumers Energy Company | Electric Utility | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 561 | 507 | 1,129 | 988 |
Residential | Consumers Energy Company | Gas Utility | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 220 | 206 | 774 | 699 |
Commercial | Consumers Energy Company | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 449 | 392 | 957 | 880 |
Commercial | Consumers Energy Company | Electric Utility | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 390 | 341 | 735 | 680 |
Commercial | Consumers Energy Company | Gas Utility | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 59 | 51 | 222 | 200 |
Industrial | Consumers Energy Company | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 161 | 133 | 322 | 293 |
Industrial | Consumers Energy Company | Electric Utility | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 153 | 126 | 291 | 266 |
Industrial | Consumers Energy Company | Gas Utility | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 8 | 7 | 31 | 27 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 25 | 17 | 55 | 36 |
Other | Enterprises | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 25 | 17 | 55 | 36 |
Other | Consumers Energy Company | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 99 | 88 | 240 | 205 |
Other | Consumers Energy Company | Electric Utility | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 54 | 46 | 134 | 111 |
Other | Consumers Energy Company | Gas Utility | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | $ 45 | $ 42 | $ 106 | $ 94 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||||
Unbilled receivables | $ 361 | $ 361 | $ 437 | ||
Consumers Energy Company | |||||
Disaggregation of Revenue [Line Items] | |||||
Unbilled receivables | 361 | 361 | $ 437 | ||
Accounts Receivable | |||||
Disaggregation of Revenue [Line Items] | |||||
Bad debt expense | 5 | $ 8 | 11 | $ 13 | |
Accounts Receivable | Consumers Energy Company | |||||
Disaggregation of Revenue [Line Items] | |||||
Bad debt expense | $ 5 | $ 8 | $ 11 | $ 13 |
Cash And Cash Equivalents (Sche
Cash And Cash Equivalents (Schedule Of Cash And Cash Equivalents, Including Restricted Amounts) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 153 | $ 32 | ||
Restricted cash and cash equivalents | 18 | 17 | ||
Cash and cash equivalents, including restricted amounts | 292 | 185 | $ 1,604 | $ 157 |
Discontinued Operations, Held-for-sale | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 121 | 136 | ||
Consumers Energy Company | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 52 | 20 | ||
Restricted cash and cash equivalents | 16 | 15 | ||
Cash and cash equivalents, including restricted amounts | $ 68 | $ 35 | $ 1,229 | $ 28 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Operating Revenue | $ 1,558 | $ 1,382 | $ 3,571 | $ 3,184 | |
Net income available to common stockholders | 176 | 136 | 525 | 379 | |
Plant, property, and equipment, gross | 29,027 | 29,027 | $ 27,870 | ||
Assets | 29,953 | 29,953 | 29,666 | ||
Consumers Energy Company | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 1,493 | 1,330 | 3,430 | 3,074 | |
Net income available to common stockholders | 189 | 159 | 525 | 394 | |
Plant, property, and equipment, gross | 27,910 | 27,910 | 26,757 | ||
Assets | 25,680 | 25,680 | 25,399 | ||
Other reconciling items | |||||
Segment Reporting Information [Line Items] | |||||
Net income available to common stockholders | (19) | (25) | (20) | (37) | |
Plant, property, and equipment, gross | 22 | 22 | 21 | ||
Assets | 3,139 | 3,139 | 3,132 | ||
Other reconciling items | Consumers Energy Company | |||||
Segment Reporting Information [Line Items] | |||||
Net income available to common stockholders | (1) | (1) | (1) | (1) | |
Plant, property, and equipment, gross | 22 | 22 | 21 | ||
Assets | 21 | 21 | 29 | ||
Electric Utility | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 1,160 | 1,022 | 2,294 | 2,050 | |
Net income available to common stockholders | 154 | 119 | 309 | 237 | |
Plant, property, and equipment, gross | 17,816 | 17,816 | 17,155 | ||
Assets | 16,078 | 16,078 | 15,829 | ||
Electric Utility | Operating Segments | Consumers Energy Company | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 1,160 | 1,022 | 2,294 | 2,050 | |
Net income available to common stockholders | 154 | 119 | 309 | 237 | |
Plant, property, and equipment, gross | 17,816 | 17,816 | 17,155 | ||
Assets | 16,141 | 16,141 | 15,893 | ||
Gas Utility | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 333 | 308 | 1,136 | 1,024 | |
Net income available to common stockholders | 36 | 41 | 217 | 158 | |
Plant, property, and equipment, gross | 10,072 | 10,072 | 9,581 | ||
Assets | 9,470 | 9,470 | 9,429 | ||
Gas Utility | Operating Segments | Consumers Energy Company | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 333 | 308 | 1,136 | 1,024 | |
Net income available to common stockholders | 36 | 41 | 217 | 158 | |
Plant, property, and equipment, gross | 10,072 | 10,072 | 9,581 | ||
Assets | 9,518 | 9,518 | 9,477 | ||
Enterprises | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 65 | 52 | 141 | 110 | |
Net income available to common stockholders | 5 | $ 1 | 19 | $ 21 | |
Plant, property, and equipment, gross | 1,117 | 1,117 | 1,113 | ||
Assets | $ 1,266 | $ 1,266 | $ 1,276 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2021USD ($)MW | Dec. 31, 2020USD ($) | |
Variable Interest Entity [Line Items] | ||
Investments | $ 71 | $ 70 |
Variable Interest Entity, Primary Beneficiary | Aviator Wind | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 51.00% | |
Nameplate capacity (in MW) | MW | 525 | |
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership | ||
Variable Interest Entity [Line Items] | ||
Noncontrolling ownership interest | 49.00% | |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments | $ 71 | $ 70 |
Variable Interest Entity, Not Primary Beneficiary | T.E.S. Filer City | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50.00% | |
Variable Interest Entity, Not Primary Beneficiary | Grayling | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50.00% | |
Variable Interest Entity, Not Primary Beneficiary | Genesee | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50.00% | |
Variable Interest Entity, Not Primary Beneficiary | Craven | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50.00% |
Variable Interest Entities (Con
Variable Interest Entities (Consolidated Information of Variable Interest Entity) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 153 | $ 32 |
Accounts receivable | 745 | 853 |
Prepayments and other current assets | 139 | 104 |
Plant, property, and equipment, net | 21,533 | 21,017 |
Total Assets | 29,953 | 29,666 |
Accounts payable | 659 | 661 |
Asset retirement obligations | 607 | 553 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | 12 | 7 |
Accounts receivable | 7 | 5 |
Prepayments and other current assets | 1 | 1 |
Plant, property, and equipment, net | 680 | 692 |
Total Assets | 700 | 705 |
Accounts payable | 10 | 3 |
Asset retirement obligations | 20 | 19 |
Total liabilities | $ 30 | $ 22 |
Exit Activities and Discontin_3
Exit Activities and Discontinued Operations - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 18 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | |
Discontinued Operations, Held-for-sale | EnerBank | Forecast | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from divestiture of businesses | $ 960 | |||
Retention Benefits | D.E. Karn Generating Complex | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Expected cost | $ 35 | |||
Retention and severance costs | 0 | $ 7 | $ 16 | |
Costs incurred and capitalized | 0 | $ 1 | ||
Retention Benefits | D.E. Karn Generating Complex | Retention Incentive Program | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Regulatory asset | $ 4 | |||
Retention Benefits | D.E. Karn Generating Complex | Property, Plant and Equipment | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Costs incurred and capitalized | $ 3 |
Exit Activities and Discontin_4
Exit Activities and Discontinued Operations - Schedule of Retention Benefit Liability Roll Forward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 18 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||||
Other current liabilities | $ 174 | $ 174 | $ 133 | ||
Retention Benefits | D.E. Karn Generating Complex | |||||
Restructuring Reserve [Roll Forward] | |||||
Retention benefit liability at beginning of period | 11 | $ 4 | |||
Costs incurred and charged to maintenance and other operating expenses | 0 | 7 | $ 16 | ||
Costs deferred as a regulatory asset | 2 | 4 | 0 | ||
Costs incurred and capitalized | 0 | 1 | |||
Retention benefit liability at the end of the period | 15 | 15 | 12 | ||
Other current liabilities | $ 5 | $ 5 | $ 5 |
Exit Activities and Discontin_5
Exit Activities and Discontinued Operations - Income from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income tax expense | $ 7 | $ 3 | $ 16 | $ 6 |
Income from discontinued operations, net of tax | 18 | 8 | 52 | 22 |
Discontinued Operations, Held-for-sale | EnerBank | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Operating revenue | 69 | 61 | 139 | 123 |
Operating expenses | 28 | 36 | 43 | 65 |
Interest expense | 11 | 14 | 23 | 30 |
Income before income taxes | 30 | 11 | 73 | 28 |
Transaction costs | (5) | 0 | (5) | 0 |
Income from discontinued operations before income taxes | 25 | 11 | 68 | 28 |
Income tax expense | 7 | 3 | 16 | 6 |
Income from discontinued operations, net of tax | $ 18 | $ 8 | $ 52 | $ 22 |
Exit Activities and Discontin_6
Exit Activities and Discontinued Operations - Assets and Liabilities of Discontinued Operation (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current | ||
Total current assets | $ 448 | $ 429 |
Non‑current | ||
Total non‑current assets | 2,584 | 2,680 |
Current | ||
Total current liabilities | 990 | 953 |
Non‑current | ||
Total non‑current liabilities | 1,717 | 1,894 |
Discontinued Operations, Held-for-sale | ||
Current | ||
Cash and cash equivalents | 121 | 136 |
Discontinued Operations, Held-for-sale | EnerBank | ||
Current | ||
Cash and cash equivalents | 121 | 136 |
Accounts receivable and other current assets | 73 | 18 |
Notes receivable, allowance, current | 28 | 32 |
Notes receivable, less allowance of $28 in 2021 and $32 in 2020 | 254 | 275 |
Total current assets | 448 | 429 |
Non‑current | ||
Plant, property, and equipment, net | 27 | 22 |
Notes receivable, allowance, noncurrent | 92 | 91 |
Notes receivable, less allowance of $92 in 2021 and $91 in 2020 | 2,511 | 2,612 |
Other non‑current assets | 46 | 46 |
Total non‑current assets | 2,584 | 2,680 |
Total assets | 3,032 | 3,109 |
Current | ||
Current portion of long-term debt | 952 | 915 |
Accounts payable and other current liabilities | 38 | 38 |
Total current liabilities | 990 | 953 |
Non‑current | ||
Long-term debt | 1,715 | 1,890 |
Other non‑current liabilities | 2 | 4 |
Total non‑current liabilities | 1,717 | 1,894 |
Total liabilities | $ 2,707 | $ 2,847 |