Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 10, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 | 291,656,125 | |
Entity Central Index Key | 0000811156 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Consumers Energy Company | ||
Document Information [Line Items] | ||
Entity File Number | 1-5611 | |
Entity Registrant Name | CONSUMERS ENERGY COMPANY | |
Entity Tax Identification Number | 38-0442310 | |
Entity Incorporation, State or Country Code | MI | |
Entity Address, Address Line One | One Energy Plaza | |
Entity Address, City or Town | Jackson | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 49201 | |
City Area Code | 517 | |
Local Phone Number | 788‑0550 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 84,108,789 | |
Entity Central Index Key | 0000201533 | |
CMS Energy Corporation Common Stock, $0.01 par value | ||
Document Information [Line Items] | ||
Title of 12(b) Security | CMS Energy Corporation Common Stock | |
Trading Symbol | CMS | |
Security Exchange Name | NYSE | |
CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078 | |
Trading Symbol | CMSA | |
Security Exchange Name | NYSE | |
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078 | |
Trading Symbol | CMSC | |
Security Exchange Name | NYSE | |
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 | |
Trading Symbol | CMSD | |
Security Exchange Name | NYSE | |
CMS Energy Corporation Depositary Shares, each representing a 1/1,000th interest in a share of 4.200% Cumulative Redeemable Perpetual Preferred Stock, Series C | ||
Document Information [Line Items] | ||
Title of 12(b) Security | CMS Energy Corporation Depositary Shares | |
Trading Symbol | CMS PRC | |
Security Exchange Name | NYSE | |
Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series | |
Trading Symbol | CMS-PB | |
Security Exchange Name | NYSE |
CMS Energy Corporation Consolid
CMS Energy Corporation Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Revenue | $ 2,284 | $ 2,374 |
Operating Expenses | ||
Fuel for electric generation | 137 | 167 |
Purchased power – related parties | 19 | 17 |
Maintenance and other operating expenses | 431 | 334 |
Depreciation and amortization | 353 | 345 |
General taxes | 142 | 132 |
Total operating expenses | 1,970 | 1,918 |
Operating Income | 314 | 456 |
Other Income (Expense) | ||
Non-operating retirement benefits, net | 45 | 48 |
Other income | 15 | 4 |
Other expense | (4) | (4) |
Total other income | 56 | 48 |
Interest Charges | ||
Interest on long-term debt | 144 | 121 |
Interest expense – related parties | 3 | 3 |
Other interest expense | 0 | 1 |
Allowance for borrowed funds used during construction | 0 | (1) |
Total interest charges | 147 | 124 |
Income Before Income Taxes | 223 | 380 |
Income Tax Expense | 29 | 39 |
Income From Continuing Operations | 194 | 341 |
Income From Discontinued Operations, Net of Tax of $— and $1 | 0 | 4 |
Net Income | 194 | 345 |
Loss Attributable to Noncontrolling Interests | (10) | (8) |
Net Income Attributable to CMS Energy | 204 | 353 |
Preferred Stock Dividends | 2 | 2 |
Net Income Available to Common Stockholders | $ 202 | $ 351 |
Basic Earnings Per Average Common Share | ||
Basic earnings per average common share, income from continuing operations per average common share available to common stockholders (in dollars per share) | $ 0.69 | $ 1.20 |
Basic earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) | 0 | 0.01 |
Basic earnings per average common share (in dollars per share) | 0.69 | 1.21 |
Diluted Earnings Per Average Common Share | ||
Diluted earnings per average common share, income from continuing operations per average common share available to common stockholders (in dollars per share) | 0.69 | 1.20 |
Diluted earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) | 0 | 0.01 |
Diluted earnings per average common share (in dollars per share) | $ 0.69 | $ 1.21 |
Purchased and interchange power | ||
Operating Expenses | ||
Cost of goods and services sold | $ 341 | $ 455 |
Cost of gas sold | ||
Operating Expenses | ||
Cost of goods and services sold | $ 547 | $ 468 |
CMS Energy Corporation Consol_2
CMS Energy Corporation Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Tax effect of discontinued operations | $ 0 | $ 1 |
CMS Energy Corporation Consol_3
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 194 | $ 345 |
Retirement Benefits Liability | ||
Net gain arising during the period | 1 | 2 |
Amortization of net actuarial loss, net of tax | 0 | 1 |
Derivatives | ||
Unrealized gain on derivative instruments, net of tax | 0 | 2 |
Other Comprehensive Income | 1 | 5 |
Comprehensive Income | 195 | 350 |
Comprehensive Loss Attributable to Noncontrolling Interests | (10) | (8) |
Comprehensive Income Attributable to CMS Energy | $ 205 | $ 358 |
CMS Energy Corporation Consol_4
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net gain (loss) arising during the period, tax | $ 0 | $ 1 |
Amortization of net actuarial loss, tax | 0 | 0 |
Unrealized gain on derivative instruments, tax | $ 0 | $ 1 |
CMS Energy Corporation Consol_5
CMS Energy Corporation Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net Income | $ 194 | $ 345 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 353 | 345 |
Deferred income taxes and investment tax credits | 29 | 33 |
Other non‑cash operating activities and reconciling adjustments | (19) | (27) |
Changes in assets and liabilities | ||
Accounts receivable and accrued revenue | 174 | (121) |
Inventories | 391 | 213 |
Accounts payable and accrued rate refunds | (153) | (129) |
Other current assets and liabilities | (51) | 7 |
Other non‑current assets and liabilities | 122 | 41 |
Net cash provided by operating activities | 1,040 | 707 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under finance lease) | (617) | (520) |
Cost to retire property and other investing activities | (34) | (19) |
Net cash used in investing activities | (651) | (539) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of debt | 1,205 | 0 |
Retirement of debt | (1,000) | (3) |
Issuance of common stock | 4 | 4 |
Payment of dividends on common and preferred stock | (145) | (136) |
Contribution from noncontrolling interest | 6 | 2 |
Other financing costs | (23) | (37) |
Net cash provided by (used in) financing activities | 27 | (170) |
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts | 416 | (2) |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 182 | 476 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 598 | 474 |
Non‑cash transactions | ||
Capital expenditures not paid | 157 | 128 |
Nonrelated Party | ||
Cash Flows from Financing Activities | ||
Decrease in notes payable | $ (20) | $ 0 |
CMS Energy Corporation Consol_6
CMS Energy Corporation Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 571 | $ 164 |
Restricted cash and cash equivalents | 27 | 18 |
Accounts receivable and accrued revenue | 1,009 | 1,564 |
Accounts receivable – related parties | 13 | 16 |
Inventories at average cost | ||
Gas in underground storage | 437 | 840 |
Materials and supplies | 228 | 212 |
Generating plant fuel stock | 61 | 65 |
Deferred property taxes | 310 | 384 |
Regulatory assets | 203 | 57 |
Prepayments and other current assets | 130 | 113 |
Total current assets | 2,989 | 3,433 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 30,866 | 30,491 |
Less accumulated depreciation and amortization | 9,126 | 8,960 |
Plant, property, and equipment, net | 21,740 | 21,531 |
Construction work in progress | 1,263 | 1,182 |
Total plant, property, and equipment | 23,003 | 22,713 |
Other Non‑current Assets | ||
Regulatory assets | 3,804 | 3,595 |
Accounts receivable | 23 | 23 |
Investments | 72 | 71 |
Postretirement benefits | 1,241 | 1,208 |
Other | 254 | 310 |
Total other non‑current assets | 5,394 | 5,207 |
Total Assets | 31,386 | 31,353 |
Current Liabilities | ||
Current portion of long-term debt and finance leases | 1,433 | 1,099 |
Notes payable | 0 | 20 |
Accounts payable | 679 | 928 |
Accounts payable – related parties | 8 | 8 |
Accrued rate refunds | 28 | 0 |
Accrued interest | 125 | 122 |
Accrued taxes | 408 | 538 |
Regulatory liabilities | 107 | 104 |
Other current liabilities | 154 | 166 |
Total current liabilities | 2,942 | 2,985 |
Non‑current Liabilities | ||
Long-term debt | 12,985 | 13,122 |
Non-current portion of finance leases | 66 | 68 |
Regulatory liabilities | 3,886 | 3,796 |
Postretirement benefits | 107 | 108 |
Asset retirement obligations | 762 | 746 |
Deferred investment tax credit | 128 | 129 |
Deferred income taxes | 2,451 | 2,407 |
Other non‑current liabilities | 407 | 397 |
Total non‑current liabilities | 20,792 | 20,773 |
Commitments and Contingencies | ||
Common stockholders’ equity | ||
Common stock | 3 | 3 |
Other paid-in capital | 5,494 | 5,490 |
Accumulated other comprehensive loss | (51) | (52) |
Retained earnings | 1,410 | 1,350 |
Total common stockholders’ equity | 6,856 | 6,791 |
Cumulative preferred stock | 224 | 224 |
Total stockholders’ equity | 7,080 | 7,015 |
Noncontrolling interests | 572 | 580 |
Total equity | 7,652 | 7,595 |
Total Liabilities and Equity | $ 31,386 | $ 31,353 |
CMS Energy Corporation Consol_7
CMS Energy Corporation Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts receivable and accrued revenue, allowance | $ 26 | $ 27 |
Common stock authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock outstanding (in shares) | 291,700,000 | 291,300,000 |
Series C Preferred Stock Depositary Shares | ||
Preferred stock authorized (in shares) | 9,200,000 | 9,200,000 |
Preferred stock outstanding (in shares) | 9,200,000 | 9,200,000 |
CMS Energy Corporation Consol_8
CMS Energy Corporation Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Other Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retirement benefits liability | Derivative instruments | Retained Earnings | Cumulative Preferred Stock | Noncontrolling Interests |
Total Equity at Beginning of Period at Dec. 31, 2021 | $ 7,188 | $ 3 | $ 5,406 | $ (59) | $ (56) | $ (3) | $ 1,057 | $ 557 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock issued | 10 | ||||||||
Common stock repurchased | (10) | ||||||||
Net gain arising during the period | 2 | 2 | |||||||
Amortization of net actuarial loss | 1 | 1 | |||||||
Unrealized gain on derivative instruments | 2 | 2 | |||||||
Net Income | 345 | 353 | (8) | ||||||
Dividends declared on common stock | (133) | ||||||||
Dividends declared on preferred stock | (2) | ||||||||
Contribution from noncontrolling interest | 2 | ||||||||
Distributions and other changes in noncontrolling interests | 0 | ||||||||
Total Equity at End of Period at Mar. 31, 2022 | $ 7,405 | 3 | 5,406 | (54) | (53) | (1) | 1,275 | $ 224 | 551 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Dividends declared per common share (in dollars per share) | $ 0.4600 | ||||||||
Dividends declared per preferred stock Series C depositary share (in dollars per share) | $ 0.2625 | ||||||||
Total Equity at Beginning of Period at Dec. 31, 2022 | $ 7,595 | 3 | 5,490 | (52) | (52) | 0 | 1,350 | 580 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock issued | 11 | ||||||||
Common stock repurchased | (7) | ||||||||
Net gain arising during the period | 1 | 1 | |||||||
Amortization of net actuarial loss | 0 | 0 | |||||||
Unrealized gain on derivative instruments | 0 | 0 | |||||||
Net Income | 194 | 204 | (10) | ||||||
Dividends declared on common stock | (142) | ||||||||
Dividends declared on preferred stock | (2) | ||||||||
Contribution from noncontrolling interest | 6 | ||||||||
Distributions and other changes in noncontrolling interests | (4) | ||||||||
Total Equity at End of Period at Mar. 31, 2023 | $ 7,652 | $ 3 | $ 5,494 | $ (51) | $ (51) | $ 0 | $ 1,410 | $ 224 | $ 572 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Dividends declared per common share (in dollars per share) | $ 0.4875 | ||||||||
Dividends declared per preferred stock Series C depositary share (in dollars per share) | $ 0.2625 |
Consumers Energy Company Consol
Consumers Energy Company Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Revenue | $ 2,284 | $ 2,374 |
Operating Expenses | ||
Operating Income | 314 | 456 |
Other Income (Expense) | ||
Non-operating retirement benefits, net | 45 | 48 |
Other income | 15 | 4 |
Other expense | (4) | (4) |
Total other income | 56 | 48 |
Interest Charges | ||
Interest on long-term debt | 144 | 121 |
Interest expense – related parties | 3 | 3 |
Other interest expense | 0 | 1 |
Allowance for borrowed funds used during construction | 0 | (1) |
Total interest charges | 147 | 124 |
Income Before Income Taxes | 223 | 380 |
Income Tax Expense | 29 | 39 |
Net Income Available to Common Stockholders | 202 | 351 |
Consumers Energy Company | ||
Operating Revenue | 2,210 | 2,283 |
Operating Expenses | ||
Fuel for electric generation | 98 | 124 |
Purchased and interchange power | 334 | 437 |
Purchased power – related parties | 19 | 17 |
Cost of gas sold | 546 | 465 |
Maintenance and other operating expenses | 409 | 313 |
Depreciation and amortization | 344 | 336 |
General taxes | 139 | 129 |
Total operating expenses | 1,889 | 1,821 |
Operating Income | 321 | 462 |
Other Income (Expense) | ||
Non-operating retirement benefits, net | 43 | 45 |
Other income | 12 | 4 |
Other expense | (4) | (3) |
Total other income | 51 | 46 |
Interest Charges | ||
Interest on long-term debt | 99 | 75 |
Interest expense – related parties | 3 | 3 |
Other interest expense | 0 | 1 |
Allowance for borrowed funds used during construction | 0 | (1) |
Total interest charges | 102 | 78 |
Income Before Income Taxes | 270 | 430 |
Income Tax Expense | 38 | 47 |
Net Income Available to Common Stockholders | $ 232 | $ 383 |
Consumers Energy Company Cons_2
Consumers Energy Company Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net Income | $ 204 | $ 353 |
Retirement Benefits Liability | ||
Amortization of net actuarial loss, net of tax | 0 | 1 |
Other Comprehensive Income | 1 | 5 |
Comprehensive Income Attributable to CMS Energy | 205 | 358 |
Consumers Energy Company | ||
Net Income | 232 | 383 |
Retirement Benefits Liability | ||
Amortization of net actuarial loss, net of tax | 0 | 1 |
Other Comprehensive Income | 0 | 1 |
Comprehensive Income Attributable to CMS Energy | $ 232 | $ 384 |
Consumers Energy Company Cons_3
Consumers Energy Company Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Amortization of net actuarial loss, tax | $ 0 | $ 0 |
Consumers Energy Company | ||
Amortization of net actuarial loss, tax | $ 0 | $ 0 |
Consumers Energy Company Cons_4
Consumers Energy Company Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net Income | $ 204 | $ 353 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Deferred income taxes and investment tax credits | 29 | 33 |
Other non‑cash operating activities and reconciling adjustments | (19) | (27) |
Changes in assets and liabilities | ||
Accounts receivable and accrued revenue | 174 | (121) |
Inventories | 391 | 213 |
Accounts payable and accrued rate refunds | (153) | (129) |
Other current assets and liabilities | (51) | 7 |
Other non‑current assets and liabilities | 122 | 41 |
Net cash provided by operating activities | 1,040 | 707 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under finance lease) | (617) | (520) |
Cost to retire property and other investing activities | (34) | (19) |
Net cash used in investing activities | (651) | (539) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of debt | 1,205 | 0 |
Retirement of debt | (1,000) | (3) |
Payment of dividends on common and preferred stock | (145) | (136) |
Other financing costs | (23) | (37) |
Net cash provided by (used in) financing activities | 27 | (170) |
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts | 416 | (2) |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 182 | 476 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 598 | 474 |
Non‑cash transactions | ||
Capital expenditures not paid | 157 | 128 |
Nonrelated Party | ||
Cash Flows from Financing Activities | ||
Decrease in notes payable | (20) | 0 |
Consumers Energy Company | ||
Cash Flows from Operating Activities | ||
Net Income | 232 | 383 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 344 | 336 |
Deferred income taxes and investment tax credits | 37 | 47 |
Other non‑cash operating activities and reconciling adjustments | (17) | (21) |
Changes in assets and liabilities | ||
Accounts receivable and accrued revenue | 157 | (118) |
Inventories | 389 | 210 |
Accounts payable and accrued rate refunds | (140) | (128) |
Other current assets and liabilities | (48) | 0 |
Other non‑current assets and liabilities | 116 | 36 |
Net cash provided by operating activities | 1,070 | 745 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under finance lease) | (555) | (506) |
Cost to retire property and other investing activities | (33) | (23) |
Net cash used in investing activities | (588) | (529) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of debt | 1,120 | 0 |
Retirement of debt | (1,000) | 0 |
Stockholder contribution | 75 | 450 |
Payment of dividends on common and preferred stock | (287) | (275) |
Other financing costs | (12) | (5) |
Net cash provided by (used in) financing activities | (199) | (222) |
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts | 283 | (6) |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 60 | 44 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 343 | 38 |
Non‑cash transactions | ||
Capital expenditures not paid | 142 | 122 |
Consumers Energy Company | Nonrelated Party | ||
Cash Flows from Financing Activities | ||
Decrease in notes payable | (20) | 0 |
Consumers Energy Company | Related Party | ||
Cash Flows from Financing Activities | ||
Decrease in notes payable | $ (75) | $ (392) |
Consumers Energy Company Cons_5
Consumers Energy Company Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 571 | $ 164 |
Restricted cash and cash equivalents | 27 | 18 |
Accounts receivable and accrued revenue | 1,009 | 1,564 |
Accounts receivable – related parties | 13 | 16 |
Inventories at average cost | ||
Gas in underground storage | 437 | 840 |
Materials and supplies | 228 | 212 |
Generating plant fuel stock | 61 | 65 |
Deferred property taxes | 310 | 384 |
Regulatory assets | 203 | 57 |
Prepayments and other current assets | 130 | 113 |
Total current assets | 2,989 | 3,433 |
Other Non‑current Assets | ||
Regulatory assets | 3,804 | 3,595 |
Accounts receivable | 23 | 23 |
Postretirement benefits | 1,241 | 1,208 |
Other | 254 | 310 |
Total other non‑current assets | 5,394 | 5,207 |
Total Assets | 31,386 | 31,353 |
Current Liabilities | ||
Current portion of long-term debt and finance leases | 1,433 | 1,099 |
Notes payable | 0 | 20 |
Accounts payable | 679 | 928 |
Accounts payable – related parties | 8 | 8 |
Accrued rate refunds | 28 | 0 |
Accrued interest | 125 | 122 |
Accrued taxes | 408 | 538 |
Regulatory liabilities | 107 | 104 |
Other current liabilities | 154 | 166 |
Total current liabilities | 2,942 | 2,985 |
Non‑current Liabilities | ||
Long-term debt | 12,985 | 13,122 |
Non-current portion of finance leases | 66 | 68 |
Regulatory liabilities | 3,886 | 3,796 |
Postretirement benefits | 107 | 108 |
Asset retirement obligations | 762 | 746 |
Deferred investment tax credit | 128 | 129 |
Deferred income taxes | 2,451 | 2,407 |
Other non‑current liabilities | 407 | 397 |
Total non‑current liabilities | 20,792 | 20,773 |
Commitments and Contingencies | ||
Common stockholders’ equity | ||
Common stock | 3 | 3 |
Other paid-in capital | 5,494 | 5,490 |
Accumulated other comprehensive loss | (51) | (52) |
Retained earnings | 1,410 | 1,350 |
Total common stockholders’ equity | 6,856 | 6,791 |
Cumulative preferred stock | 224 | 224 |
Total stockholders’ equity | 7,080 | 7,015 |
Total Liabilities and Equity | 31,386 | 31,353 |
Consumers Energy Company | ||
Current Assets | ||
Cash and cash equivalents | 317 | 43 |
Restricted cash and cash equivalents | 26 | 17 |
Accounts receivable and accrued revenue | 980 | 1,524 |
Accounts receivable – related parties | 12 | 10 |
Inventories at average cost | ||
Gas in underground storage | 437 | 840 |
Materials and supplies | 222 | 206 |
Generating plant fuel stock | 57 | 59 |
Deferred property taxes | 310 | 384 |
Regulatory assets | 203 | 57 |
Prepayments and other current assets | 106 | 96 |
Total current assets | 2,670 | 3,236 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 29,721 | 29,342 |
Less accumulated depreciation and amortization | 8,948 | 8,791 |
Plant, property, and equipment, net | 20,773 | 20,551 |
Construction work in progress | 1,012 | 994 |
Total plant, property, and equipment | 21,785 | 21,545 |
Other Non‑current Assets | ||
Regulatory assets | 3,804 | 3,595 |
Accounts receivable | 29 | 29 |
Accounts and notes receivable – related parties | 98 | 99 |
Postretirement benefits | 1,156 | 1,126 |
Other | 230 | 286 |
Total other non‑current assets | 5,317 | 5,135 |
Total Assets | 29,772 | 29,916 |
Current Liabilities | ||
Current portion of long-term debt and finance leases | 998 | 1,000 |
Notes payable | 0 | 20 |
Notes payable – related parties | 0 | 75 |
Accounts payable | 633 | 864 |
Accounts payable – related parties | 15 | 15 |
Accrued rate refunds | 28 | 0 |
Accrued interest | 93 | 90 |
Accrued taxes | 433 | 556 |
Regulatory liabilities | 107 | 104 |
Other current liabilities | 123 | 147 |
Total current liabilities | 2,430 | 2,871 |
Non‑current Liabilities | ||
Long-term debt | 9,304 | 9,192 |
Non-current portion of finance leases | 43 | 45 |
Regulatory liabilities | 3,886 | 3,796 |
Postretirement benefits | 79 | 79 |
Asset retirement obligations | 737 | 722 |
Deferred investment tax credit | 128 | 129 |
Deferred income taxes | 2,636 | 2,585 |
Other non‑current liabilities | 354 | 342 |
Total non‑current liabilities | 17,167 | 16,890 |
Commitments and Contingencies | ||
Common stockholders’ equity | ||
Common stock | 841 | 841 |
Other paid-in capital | 7,359 | 7,284 |
Accumulated other comprehensive loss | (15) | (15) |
Retained earnings | 1,953 | 2,008 |
Total common stockholders’ equity | 10,138 | 10,118 |
Cumulative preferred stock | 37 | 37 |
Total stockholders’ equity | 10,175 | 10,155 |
Total Liabilities and Equity | $ 29,772 | $ 29,916 |
Consumers Energy Company Cons_6
Consumers Energy Company Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts receivable and accrued revenue, allowance | $ 26 | $ 27 |
Common stock authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock outstanding (in shares) | 291,700,000 | 291,300,000 |
Consumers Energy Company | ||
Accounts receivable and accrued revenue, allowance | $ 26 | $ 27 |
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 |
Consumers Energy Company Cons_7
Consumers Energy Company Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Other Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retirement benefits liability | Retained Earnings | Cumulative Preferred Stock | Consumers Energy Company | Consumers Energy Company Common Stock | Consumers Energy Company Other Paid-in Capital | Consumers Energy Company Accumulated Other Comprehensive Income (Loss) | Consumers Energy Company Retirement benefits liability | Consumers Energy Company Retained Earnings | Consumers Energy Company Cumulative Preferred Stock |
Total Equity at Beginning of Period at Dec. 31, 2021 | $ 7,188 | $ 3 | $ 5,406 | $ (59) | $ (56) | $ 1,057 | $ 9,279 | $ 841 | $ 6,599 | $ (32) | $ 1,834 | $ 37 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Stockholder contribution | 450 | |||||||||||||
Amortization of net actuarial loss | 1 | 1 | 1 | 1 | ||||||||||
Net Income | 353 | 383 | 383 | |||||||||||
Dividends declared on common stock | (133) | (275) | ||||||||||||
Total Equity at End of Period at Mar. 31, 2022 | 7,405 | 3 | 5,406 | (54) | (53) | 1,275 | $ 224 | 9,838 | 841 | 7,049 | $ (31) | 1,942 | 37 | |
Total Equity at Beginning of Period at Dec. 31, 2022 | 7,595 | 3 | 5,490 | (52) | (52) | 1,350 | 10,155 | 841 | 7,284 | (15) | 2,008 | 37 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Stockholder contribution | 75 | |||||||||||||
Amortization of net actuarial loss | 0 | 0 | 0 | $ 0 | ||||||||||
Net Income | 204 | 232 | 232 | |||||||||||
Dividends declared on common stock | (142) | (287) | ||||||||||||
Total Equity at End of Period at Mar. 31, 2023 | $ 7,652 | $ 3 | $ 5,494 | $ (51) | $ (51) | $ 1,410 | $ 224 | $ 10,175 | $ 841 | $ 7,359 | $ (15) | $ 1,953 | $ 37 |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2023 | |
Public Utilities, General Disclosures [Line Items] | |
Regulatory Matters | Regulatory Matters Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, residential customer advocacy groups, environmental organizations, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. There are multiple appeals pending that involve various issues concerning cost recovery from customers, the MPSC’s authority to approve voluntary revenue refunds, and other matters. Consumers is unable to predict the outcome of these appeals. 2022 Electric Rate Case: In January 2023, the MPSC approved a settlement agreement authorizing an annual rate increase of $155 million, based on a 9.9-percent authorized return on equity. The MPSC also approved a surcharge for the recovery of $6 million of depreciation, property tax, and interest expense related to distribution investments made in 2021 that exceeded what was authorized in rates in accordance with the December 2020 electric rate order. The new rates became effective January 20, 2023. Voluntary Refund Mechanism: In December 2022, the MPSC issued an order authorizing Consumers to refund $22 million voluntarily to utility customers. In January 2023, Consumers submitted a filing proposing that the refund take the form of incremental funding to cover the cost of, and return on, certain distribution capital investments above amounts included in rates and contributions to programs that assist vulnerable customers. In April 2023, the MPSC approved the refund of $5 million in the form of contributions to programs that assist vulnerable customers, but found that Consumers should demonstrate a more direct benefit to customers for the remaining $17 million. The MPSC stated that Consumers may propose a different methodology to refund that amount. Consumers filed a revised proposal, requesting that the remaining $17 million be refunded in the form of incremental forestry work and to provide bill assistance to support vulnerable electric customers. 2022 PSCR Underrecovery: Due to rising fuel prices during 2022, the cost of electric generation increased, resulting in higher market prices for electricity. Accordingly, Consumers’ power supply costs for 2022 were significantly higher than those projected in its 2022 PSCR plan. Consumers included a projection of its full-year 2022 underrecovery in the 2023 PSCR plan filed with the MPSC in September 2022. In January 2023, Consumers filed a motion for a temporary order in its 2023 PSCR plan, requesting that the MPSC approve only a third of the 2022 underrecovery amount for recovery in 2023, with the remaining amount to be recovered equally during 2024 and 2025. The MPSC approved Consumers’ motion in February 2023. Recovering the 2022 underrecovery over three years will provide immediate relief to electric customers, and the financial impact will be neutral to Consumers’ earnings. |
Consumers Energy Company | |
Public Utilities, General Disclosures [Line Items] | |
Regulatory Matters | Regulatory Matters Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, residential customer advocacy groups, environmental organizations, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. There are multiple appeals pending that involve various issues concerning cost recovery from customers, the MPSC’s authority to approve voluntary revenue refunds, and other matters. Consumers is unable to predict the outcome of these appeals. 2022 Electric Rate Case: In January 2023, the MPSC approved a settlement agreement authorizing an annual rate increase of $155 million, based on a 9.9-percent authorized return on equity. The MPSC also approved a surcharge for the recovery of $6 million of depreciation, property tax, and interest expense related to distribution investments made in 2021 that exceeded what was authorized in rates in accordance with the December 2020 electric rate order. The new rates became effective January 20, 2023. Voluntary Refund Mechanism: In December 2022, the MPSC issued an order authorizing Consumers to refund $22 million voluntarily to utility customers. In January 2023, Consumers submitted a filing proposing that the refund take the form of incremental funding to cover the cost of, and return on, certain distribution capital investments above amounts included in rates and contributions to programs that assist vulnerable customers. In April 2023, the MPSC approved the refund of $5 million in the form of contributions to programs that assist vulnerable customers, but found that Consumers should demonstrate a more direct benefit to customers for the remaining $17 million. The MPSC stated that Consumers may propose a different methodology to refund that amount. Consumers filed a revised proposal, requesting that the remaining $17 million be refunded in the form of incremental forestry work and to provide bill assistance to support vulnerable electric customers. 2022 PSCR Underrecovery: Due to rising fuel prices during 2022, the cost of electric generation increased, resulting in higher market prices for electricity. Accordingly, Consumers’ power supply costs for 2022 were significantly higher than those projected in its 2022 PSCR plan. Consumers included a projection of its full-year 2022 underrecovery in the 2023 PSCR plan filed with the MPSC in September 2022. In January 2023, Consumers filed a motion for a temporary order in its 2023 PSCR plan, requesting that the MPSC approve only a third of the 2022 underrecovery amount for recovery in 2023, with the remaining amount to be recovered equally during 2024 and 2025. The MPSC approved Consumers’ motion in February 2023. Recovering the 2022 underrecovery over three years will provide immediate relief to electric customers, and the financial impact will be neutral to Consumers’ earnings. |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2023 | |
Other Commitments [Line Items] | |
Contingencies and Commitments | Contingencies and Commitments CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures stating that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. CMS Energy Contingencies Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement establishing the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which is valid through 2025. At March 31, 2023, CMS Energy had a recorded liability of $45 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $56 million. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2023 and in each of the next five years: In Millions 2023 2024 2025 2026 2027 2028 CMS Energy Long-term leachate disposal and operating and maintenance costs $ 3 $ 4 $ 4 $ 4 $ 4 $ 4 CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. Consumers Electric Utility Contingencies Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates its liability for NREPA sites for which it can estimate a range of loss to be between $2 million and $4 million. At March 31, 2023, Consumers had a recorded liability of $2 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount. Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA had reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 2011, Consumers received a follow-up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties asked to participate in the removal action plan, including Consumers, declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river. Based on its experience, Consumers estimates its share of the total liability for known CERCLA sites to be between $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At March 31, 2023, 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 Plant Overhaul Contract Dispute: Consumers and DTE Electric, co-owners of Ludington, are parties to a 2010 engineering, procurement, and construction agreement with TAES, under which TAES contracted to perform a major overhaul and upgrade of Ludington. The overhauled Ludington units are operational, but TAES’ work has been defective and non-conforming. Consumers and DTE Electric have demanded that TAES provide a comprehensive plan to resolve quality control concerns, including adherence to its warranty commitments and other contractual obligations. Consumers and DTE Electric have taken extensive efforts to resolve these issues with TAES, including a formal demand to TAES’ parent, Toshiba Corporation, a non-affiliated company, under a parent guaranty it provided in the contract. TAES has not provided a comprehensive plan or otherwise met its performance obligations. In order to enforce the contract, Consumers and DTE Electric filed a complaint against TAES and Toshiba Corporation in the U.S. District Court for the Eastern District of Michigan in April 2022. In June 2022, TAES and Toshiba Corporation filed a motion to dismiss the complaint, along with an answer and counterclaims seeking approximately $15 million in damages related to payments allegedly owed under the parties’ contract. As a co-owner of Ludington, Consumers would be liable for 51 percent of any such damages. In September 2022, the court denied the motion to dismiss filed by TAES and Toshiba Corporation. Consumers believes the counterclaims are without merit, but cannot predict the financial impact or outcome of this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity. In November 2022, Consumers and DTE Electric jointly filed an application with the MPSC, requesting authority to defer as a regulatory asset the costs associated with repairing or replacing the defective work performed by TAES while the litigation with TAES and Toshiba Corporation moves forward; such costs would be offset by potential future litigation proceeds received from TAES or Toshiba Corporation. If this application is approved by the MPSC, Consumers and DTE Electric will have the opportunity to seek appropriate recovery and ratemaking treatment for amounts recorded as a regulatory asset following resolution of the litigation. J.H. Campbell 3 Plant Retirement Contract Dispute: In May 2022, Consumers filed a complaint against Wolverine Power Supply Cooperative, Inc. in the Ottawa County Circuit Court and requested a ruling that Consumers has sole authority to decide to retire the J.H. Campbell 3 coal-fueled generating unit under the unit’s Joint Ownership and Operating Agreement. In July 2022, Wolverine Power Supply Cooperative, Inc. filed an answer, affirmative defenses, and a counterclaim seeking approximately $37 million in damages allegedly caused by Consumers’ decision to retire the unit before the end of its useful life. In July 2022, Consumers filed a motion for summary disposition, which was heard in August 2022. In October 2022, the state circuit court judge found that Consumers may, in its sole discretion, retire the J.H. Campbell 3 coal-fueled generating unit, provided that Consumers continues to operate and make necessary improvements to the unit while the litigation concerning Wolverine Power Supply Cooperative, Inc.’s claim for damages is pending. Consumers believes Wolverine Power Supply Cooperative, Inc.’s claim has no merit, but cannot predict the final impact or outcome on this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity. Consumers Gas Utility Contingencies Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. At March 31, 2023, Consumers had a recorded liability of $63 million for its remaining obligations for these sites. This amount represents the present value of long-term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $67 million. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2023 and in each of the next five years: In Millions 2023 2024 2025 2026 2027 2028 Consumers Remediation and other response activity costs $ 5 $ 11 $ 31 $ 6 $ 1 $ 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 March 31, 2023, Consumers had a regulatory asset of $106 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 March 31, 2023, 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. Guarantees Presented in the following table are CMS Energy’s and Consumers’ guarantees at March 31, 2023: In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from sale of membership interests in VIEs 1 various indefinite $ 318 $ — Indemnity obligations from stock and asset sale agreements 2 various indefinite 226 3 Guarantee 3 2011 indefinite 30 — Consumers Guarantee 3 2011 indefinite $ 30 $ — 1 These obligations arose from the sale of membership interests in NWO Holdco and Aviator Wind to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on NorthStar Clean Energy’s ownership interest in NWO Holdco and Aviator Wind, see Note 11, 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, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim. 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. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities and those disclosed in the table to be remote. Other Contingencies In addition to the matters disclosed in this Note and Note 1, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity. |
Consumers Energy Company | |
Other Commitments [Line Items] | |
Contingencies and Commitments | Contingencies and Commitments CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures stating that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. CMS Energy Contingencies Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement establishing the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which is valid through 2025. At March 31, 2023, CMS Energy had a recorded liability of $45 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $56 million. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2023 and in each of the next five years: In Millions 2023 2024 2025 2026 2027 2028 CMS Energy Long-term leachate disposal and operating and maintenance costs $ 3 $ 4 $ 4 $ 4 $ 4 $ 4 CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. Consumers Electric Utility Contingencies Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates its liability for NREPA sites for which it can estimate a range of loss to be between $2 million and $4 million. At March 31, 2023, Consumers had a recorded liability of $2 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount. Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA had reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 2011, Consumers received a follow-up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties asked to participate in the removal action plan, including Consumers, declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river. Based on its experience, Consumers estimates its share of the total liability for known CERCLA sites to be between $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At March 31, 2023, 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 Plant Overhaul Contract Dispute: Consumers and DTE Electric, co-owners of Ludington, are parties to a 2010 engineering, procurement, and construction agreement with TAES, under which TAES contracted to perform a major overhaul and upgrade of Ludington. The overhauled Ludington units are operational, but TAES’ work has been defective and non-conforming. Consumers and DTE Electric have demanded that TAES provide a comprehensive plan to resolve quality control concerns, including adherence to its warranty commitments and other contractual obligations. Consumers and DTE Electric have taken extensive efforts to resolve these issues with TAES, including a formal demand to TAES’ parent, Toshiba Corporation, a non-affiliated company, under a parent guaranty it provided in the contract. TAES has not provided a comprehensive plan or otherwise met its performance obligations. In order to enforce the contract, Consumers and DTE Electric filed a complaint against TAES and Toshiba Corporation in the U.S. District Court for the Eastern District of Michigan in April 2022. In June 2022, TAES and Toshiba Corporation filed a motion to dismiss the complaint, along with an answer and counterclaims seeking approximately $15 million in damages related to payments allegedly owed under the parties’ contract. As a co-owner of Ludington, Consumers would be liable for 51 percent of any such damages. In September 2022, the court denied the motion to dismiss filed by TAES and Toshiba Corporation. Consumers believes the counterclaims are without merit, but cannot predict the financial impact or outcome of this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity. In November 2022, Consumers and DTE Electric jointly filed an application with the MPSC, requesting authority to defer as a regulatory asset the costs associated with repairing or replacing the defective work performed by TAES while the litigation with TAES and Toshiba Corporation moves forward; such costs would be offset by potential future litigation proceeds received from TAES or Toshiba Corporation. If this application is approved by the MPSC, Consumers and DTE Electric will have the opportunity to seek appropriate recovery and ratemaking treatment for amounts recorded as a regulatory asset following resolution of the litigation. J.H. Campbell 3 Plant Retirement Contract Dispute: In May 2022, Consumers filed a complaint against Wolverine Power Supply Cooperative, Inc. in the Ottawa County Circuit Court and requested a ruling that Consumers has sole authority to decide to retire the J.H. Campbell 3 coal-fueled generating unit under the unit’s Joint Ownership and Operating Agreement. In July 2022, Wolverine Power Supply Cooperative, Inc. filed an answer, affirmative defenses, and a counterclaim seeking approximately $37 million in damages allegedly caused by Consumers’ decision to retire the unit before the end of its useful life. In July 2022, Consumers filed a motion for summary disposition, which was heard in August 2022. In October 2022, the state circuit court judge found that Consumers may, in its sole discretion, retire the J.H. Campbell 3 coal-fueled generating unit, provided that Consumers continues to operate and make necessary improvements to the unit while the litigation concerning Wolverine Power Supply Cooperative, Inc.’s claim for damages is pending. Consumers believes Wolverine Power Supply Cooperative, Inc.’s claim has no merit, but cannot predict the final impact or outcome on this matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s and Consumers’ financial condition, results of operations, or liquidity. Consumers Gas Utility Contingencies Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. At March 31, 2023, Consumers had a recorded liability of $63 million for its remaining obligations for these sites. This amount represents the present value of long-term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $67 million. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2023 and in each of the next five years: In Millions 2023 2024 2025 2026 2027 2028 Consumers Remediation and other response activity costs $ 5 $ 11 $ 31 $ 6 $ 1 $ 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 March 31, 2023, Consumers had a regulatory asset of $106 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 March 31, 2023, 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. Guarantees Presented in the following table are CMS Energy’s and Consumers’ guarantees at March 31, 2023: In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from sale of membership interests in VIEs 1 various indefinite $ 318 $ — Indemnity obligations from stock and asset sale agreements 2 various indefinite 226 3 Guarantee 3 2011 indefinite 30 — Consumers Guarantee 3 2011 indefinite $ 30 $ — 1 These obligations arose from the sale of membership interests in NWO Holdco and Aviator Wind to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on NorthStar Clean Energy’s ownership interest in NWO Holdco and Aviator Wind, see Note 11, 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, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim. 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. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities and those disclosed in the table to be remote. Other Contingencies In addition to the matters disclosed in this Note and Note 1, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity. |
Financings and Capitalization
Financings and Capitalization | 3 Months Ended |
Mar. 31, 2023 | |
Debt Instrument [Line Items] | |
Financings and Capitalization | Financings and Capitalization Financings: Presented in the following table is a summary of major long-term debt issuances during the three months ended March 31, 2023: Principal Interest Rate (%) Issuance Date Maturity Date NorthStar Clean Energy, including subsidiaries Term loan facility 1 $ 85 variable February 2023 September 2023 Total NorthStar Clean Energy, including subsidiaries $ 85 Consumers First mortgage bonds $ 425 4.650 % January 2023 March 2028 First mortgage bonds 700 4.625 February 2023 May 2033 Total Consumers $ 1,125 Total CMS Energy $ 1,210 1 In December 2022, a subsidiary of NorthStar Clean Energy entered into a $185 million unsecured term loan credit agreement. Under this credit agreement, a subsidiary of NorthStar Clean Energy borrowed $85 million in 2023. As of March 31, 2023, there was $185 million of loans outstanding bearing an interest rate of 5.806 percent under the unsecured term loan credit agreement. In January 2023, Consumers entered into a bond purchase agreement to issue an aggregate principal amount of $400 million of first mortgage bonds through a private placement offering. The bonds, which were priced in November 2022, carry a weighted average interest rate of 5.251 percent and mature at varying dates between 2026 and 2037. The bonds are expected to be issued in May 2023. The proceeds of the bonds will be used to finance a portion of the purchase price of the New Covert Generating Facility and for general corporate purposes. Presented in the following table is a summary of major long-term debt retirements during the three months ended March 31, 2023: Principal Interest Rate (%) Retirement Date Maturity Date Consumers Term loan facility $ 1,000 variable February 2023 January 2024 Credit Facilities: The following credit facilities with banks were available at March 31, 2023: In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only December 14, 2027 1 $ 550 $ — $ 21 $ 529 September 22, 2024 50 — 50 — NorthStar Clean Energy, including subsidiaries September 25, 2025 2 $ 37 $ — $ 37 $ — Consumers 3 December 14, 2027 $ 1,100 $ — $ 27 $ 1,073 November 18, 2024 250 — 27 223 1 There were no borrowings under this facility during the three months ended March 31, 2023. 2 This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 11, Variable Interest Entities. 3 Obligations under these facilities are secured by first mortgage bonds of Consumers. There were no borrowings under these facilities during the three months ended March 31, 2023. Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. In March 2023, FERC granted Consumers the authority to issue securities between April 1, 2023 and March 31, 2025. 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 March 31, 2023, there were no commercial paper notes outstanding under this program. In December 2022, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million. At March 31, 2023, there were no outstanding borrowings under the agreement. Dividend Restrictions: At March 31, 2023, payment of dividends by CMS Energy on its common stock was limited to $6.8 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at March 31, 2023, Consumers had $1.9 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. During the three months ended March 31, 2023, Consumers paid $287 million in dividends on its common stock to CMS Energy. Issuance of Common Stock: Presented in the following table are details of CMS Energy’s forward sales contracts under its equity offering program at March 31, 2023: Forward Price Per Share Contract Date Maturity Date Number of Shares Initial March 31, 2023 August 3, 2022 February 1, 2024 2,944,207 67.59 67.98 August 24, 2022 February 26, 2024 1,677,938 69.46 69.89 August 29, 2022 February 26, 2024 1,783,388 68.18 68.56 Under these contracts, CMS Energy may either settle physically by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or settle net by delivering or receiving cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock. The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle or net cash settle the contracts as of March 31, 2023, CMS Energy would not have been required to deliver shares or pay cash. |
Consumers Energy Company | |
Debt Instrument [Line Items] | |
Financings and Capitalization | Financings and Capitalization Financings: Presented in the following table is a summary of major long-term debt issuances during the three months ended March 31, 2023: Principal Interest Rate (%) Issuance Date Maturity Date NorthStar Clean Energy, including subsidiaries Term loan facility 1 $ 85 variable February 2023 September 2023 Total NorthStar Clean Energy, including subsidiaries $ 85 Consumers First mortgage bonds $ 425 4.650 % January 2023 March 2028 First mortgage bonds 700 4.625 February 2023 May 2033 Total Consumers $ 1,125 Total CMS Energy $ 1,210 1 In December 2022, a subsidiary of NorthStar Clean Energy entered into a $185 million unsecured term loan credit agreement. Under this credit agreement, a subsidiary of NorthStar Clean Energy borrowed $85 million in 2023. As of March 31, 2023, there was $185 million of loans outstanding bearing an interest rate of 5.806 percent under the unsecured term loan credit agreement. In January 2023, Consumers entered into a bond purchase agreement to issue an aggregate principal amount of $400 million of first mortgage bonds through a private placement offering. The bonds, which were priced in November 2022, carry a weighted average interest rate of 5.251 percent and mature at varying dates between 2026 and 2037. The bonds are expected to be issued in May 2023. The proceeds of the bonds will be used to finance a portion of the purchase price of the New Covert Generating Facility and for general corporate purposes. Presented in the following table is a summary of major long-term debt retirements during the three months ended March 31, 2023: Principal Interest Rate (%) Retirement Date Maturity Date Consumers Term loan facility $ 1,000 variable February 2023 January 2024 Credit Facilities: The following credit facilities with banks were available at March 31, 2023: In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only December 14, 2027 1 $ 550 $ — $ 21 $ 529 September 22, 2024 50 — 50 — NorthStar Clean Energy, including subsidiaries September 25, 2025 2 $ 37 $ — $ 37 $ — Consumers 3 December 14, 2027 $ 1,100 $ — $ 27 $ 1,073 November 18, 2024 250 — 27 223 1 There were no borrowings under this facility during the three months ended March 31, 2023. 2 This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 11, Variable Interest Entities. 3 Obligations under these facilities are secured by first mortgage bonds of Consumers. There were no borrowings under these facilities during the three months ended March 31, 2023. Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. In March 2023, FERC granted Consumers the authority to issue securities between April 1, 2023 and March 31, 2025. 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 March 31, 2023, there were no commercial paper notes outstanding under this program. In December 2022, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million. At March 31, 2023, there were no outstanding borrowings under the agreement. Dividend Restrictions: At March 31, 2023, payment of dividends by CMS Energy on its common stock was limited to $6.8 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at March 31, 2023, Consumers had $1.9 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. During the three months ended March 31, 2023, Consumers paid $287 million in dividends on its common stock to CMS Energy. Issuance of Common Stock: Presented in the following table are details of CMS Energy’s forward sales contracts under its equity offering program at March 31, 2023: Forward Price Per Share Contract Date Maturity Date Number of Shares Initial March 31, 2023 August 3, 2022 February 1, 2024 2,944,207 67.59 67.98 August 24, 2022 February 26, 2024 1,677,938 69.46 69.89 August 29, 2022 February 26, 2024 1,783,388 68.18 68.56 Under these contracts, CMS Energy may either settle physically by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or settle net by delivering or receiving cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock. The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle or net cash settle the contracts as of March 31, 2023, CMS Energy would not have been required to deliver shares or pay cash. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31 December 31 March 31 December 31 Assets 1 Cash equivalents $ 216 $ — $ 166 $ — Restricted cash equivalents 27 18 26 17 Nonqualified deferred compensation plan assets 26 24 20 18 Derivative instruments 1 2 1 2 Total assets $ 270 $ 44 $ 213 $ 37 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 26 $ 24 $ 20 $ 18 Total liabilities $ 26 $ 24 $ 20 $ 18 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 3. Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity. 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 3. 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 March 31 December 31 March 31 December 31 Assets 1 Cash equivalents $ 216 $ — $ 166 $ — Restricted cash equivalents 27 18 26 17 Nonqualified deferred compensation plan assets 26 24 20 18 Derivative instruments 1 2 1 2 Total assets $ 270 $ 44 $ 213 $ 37 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 26 $ 24 $ 20 $ 18 Total liabilities $ 26 $ 24 $ 20 $ 18 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 3. Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity. 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 3. 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 December 31, 2022 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 $ 13 $ 13 $ — $ — $ 13 $ 14 $ 14 $ — $ — $ 14 Liabilities Long-term debt 2 14,410 12,928 1,076 10,066 1,786 14,212 12,384 987 8,741 2,656 Long-term payables 3 8 7 — — 7 9 7 — — 7 Consumers Assets Long-term receivables 1 $ 13 $ 13 $ — $ — $ 13 $ 14 $ 14 $ — $ — $ 14 Notes receivable – related party 4 100 100 — — 100 101 101 — — 101 Liabilities Long-term debt 5 10,295 9,060 — 7,459 1,601 10,183 8,728 — 6,172 2,556 1 Includes current portion of long-term accounts receivable and notes receivable of $7 million at March 31, 2023 and December 31, 2022. 2 Includes current portion of long-term debt of $1,425 million at March 31, 2023 and $1,090 million at December 31, 2022. 3 Includes current portion of long-term payables of $1 million at March 31, 2023 and $2 million at December 31, 2022. 4 Includes current portion of notes receivable – related party of $7 million at March 31, 2023 and December 31, 2022. 5 Includes current portion of long-term debt of $991 million at March 31, 2023 and December 31, 2022. The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. |
Consumers Energy Company | |
Financial Instruments [Line Items] | |
Financial Instruments | Financial Instruments Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements. In Millions March 31, 2023 December 31, 2022 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 $ 13 $ 13 $ — $ — $ 13 $ 14 $ 14 $ — $ — $ 14 Liabilities Long-term debt 2 14,410 12,928 1,076 10,066 1,786 14,212 12,384 987 8,741 2,656 Long-term payables 3 8 7 — — 7 9 7 — — 7 Consumers Assets Long-term receivables 1 $ 13 $ 13 $ — $ — $ 13 $ 14 $ 14 $ — $ — $ 14 Notes receivable – related party 4 100 100 — — 100 101 101 — — 101 Liabilities Long-term debt 5 10,295 9,060 — 7,459 1,601 10,183 8,728 — 6,172 2,556 1 Includes current portion of long-term accounts receivable and notes receivable of $7 million at March 31, 2023 and December 31, 2022. 2 Includes current portion of long-term debt of $1,425 million at March 31, 2023 and $1,090 million at December 31, 2022. 3 Includes current portion of long-term payables of $1 million at March 31, 2023 and $2 million at December 31, 2022. 4 Includes current portion of notes receivable – related party of $7 million at March 31, 2023 and December 31, 2022. 5 Includes current portion of long-term debt of $991 million at March 31, 2023 and December 31, 2022. The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2023 | |
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 benefit plans: In Millions DB Pension Plans OPEB Plan Three Months Ended March 31 2023 2022 2023 2022 CMS Energy, including Consumers Net periodic credit Service cost $ 7 $ 12 $ 3 $ 4 Interest cost 27 18 11 7 Expected return on plan assets (55) (52) (26) (29) Amortization of: Net loss 3 17 3 — Prior service cost (credit) 1 1 (10) (12) Settlement loss 2 2 — — Net periodic credit $ (15) $ (2) $ (19) $ (30) Consumers Net periodic credit Service cost $ 7 $ 12 $ 3 $ 4 Interest cost 25 16 11 7 Expected return on plan assets (52) (49) (24) (27) Amortization of: Net loss 3 16 3 — Prior service cost (credit) 1 1 (10) (12) Settlement loss 2 2 — — Net periodic credit $ (14) $ (2) $ (17) $ (28) In Consumers’ 2022 electric rate case, the MPSC approved a mechanism allowing Consumers to defer the future recovery or refund of pension and OPEB expenses above or below the amounts used to set existing rates. At March 31, 2023. CMS Energy, including Consumers, had deferred $3 million of pension credits and $6 million of OPEB costs under this mechanism. |
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 benefit plans: In Millions DB Pension Plans OPEB Plan Three Months Ended March 31 2023 2022 2023 2022 CMS Energy, including Consumers Net periodic credit Service cost $ 7 $ 12 $ 3 $ 4 Interest cost 27 18 11 7 Expected return on plan assets (55) (52) (26) (29) Amortization of: Net loss 3 17 3 — Prior service cost (credit) 1 1 (10) (12) Settlement loss 2 2 — — Net periodic credit $ (15) $ (2) $ (19) $ (30) Consumers Net periodic credit Service cost $ 7 $ 12 $ 3 $ 4 Interest cost 25 16 11 7 Expected return on plan assets (52) (49) (24) (27) Amortization of: Net loss 3 16 3 — Prior service cost (credit) 1 1 (10) (12) Settlement loss 2 2 — — Net periodic credit $ (14) $ (2) $ (17) $ (28) In Consumers’ 2022 electric rate case, the MPSC approved a mechanism allowing Consumers to defer the future recovery or refund of pension and OPEB expenses above or below the amounts used to set existing rates. At March 31, 2023. CMS Energy, including Consumers, had deferred $3 million of pension credits and $6 million of OPEB costs under this mechanism. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
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: Three Months Ended March 31 2023 2022 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 1 (0.5) 5.5 Production tax credits (4.2) (4.7) TCJA excess deferred taxes 2 (3.7) (7.2) Accelerated flow-through of regulatory tax benefits 3 — (4.3) Other, net 0.4 — Effective tax rate 13.0 % 10.3 % 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 1 — 5.0 Production tax credits (3.6) (2.7) TCJA excess deferred taxes 2 (3.2) (6.7) Accelerated flow-through of regulatory tax benefits 3 — (5.1) Other, net (0.1) (0.6) Effective tax rate 14.1 % 10.9 % 1 CMS Energy initiated a plan to divest immaterial business activities in the state of Wisconsin and will no longer have a taxable presence within the state after 2023. As a result of these actions, CMS Energy reversed a $13 million Wisconsin-related state reserve, all of which was recognized at Consumers. 2 In 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, non ‑ property-related excess deferred income taxes resulting from the TCJA. The regulatory liability was fully amortized in 2022. 3 In 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 were fully amortized in 2022. |
Consumers Energy Company | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations: Three Months Ended March 31 2023 2022 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 1 (0.5) 5.5 Production tax credits (4.2) (4.7) TCJA excess deferred taxes 2 (3.7) (7.2) Accelerated flow-through of regulatory tax benefits 3 — (4.3) Other, net 0.4 — Effective tax rate 13.0 % 10.3 % 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 1 — 5.0 Production tax credits (3.6) (2.7) TCJA excess deferred taxes 2 (3.2) (6.7) Accelerated flow-through of regulatory tax benefits 3 — (5.1) Other, net (0.1) (0.6) Effective tax rate 14.1 % 10.9 % 1 CMS Energy initiated a plan to divest immaterial business activities in the state of Wisconsin and will no longer have a taxable presence within the state after 2023. As a result of these actions, CMS Energy reversed a $13 million Wisconsin-related state reserve, all of which was recognized at Consumers. 2 In 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, non ‑ property-related excess deferred income taxes resulting from the TCJA. The regulatory liability was fully amortized in 2022. 3 In 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 were fully amortized in 2022. |
Earnings Per Share - CMS Energy
Earnings Per Share - CMS Energy | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31 2023 2022 Income available to common stockholders Income from continuing operations $ 194 $ 341 Less loss attributable to noncontrolling interests (10) (8) Less preferred stock dividends 2 2 Income from continuing operations available to common stockholders – basic and diluted $ 202 $ 347 Average common shares outstanding Weighted-average shares – basic 290.7 289.3 Add dilutive nonvested stock awards 0.5 0.5 Add dilutive forward equity sale contracts — 0.1 Weighted-average shares – diluted 291.2 289.9 Income from continuing operations per average common share available to common stockholders Basic $ 0.69 $ 1.20 Diluted 0.69 1.20 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 | 3 Months Ended |
Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | |
Revenue | RevenuePresented in the following tables are the components of operating revenue: In Millions Three Months Ended March 31, 2023 Electric Utility Gas Utility NorthStar Clean Energy 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,089 $ 1,116 $ — $ 2,205 Other — — 43 43 Revenue recognized from contracts with customers $ 1,089 $ 1,116 $ 43 $ 2,248 Leasing income — — 31 31 Financing income 2 3 — 5 Total operating revenue – CMS Energy $ 1,091 $ 1,119 $ 74 $ 2,284 Consumers Consumers utility revenue Residential $ 528 $ 776 $ 1,304 Commercial 347 247 594 Industrial 161 31 192 Other 53 62 115 Revenue recognized from contracts with customers $ 1,089 $ 1,116 $ 2,205 Financing income 2 3 5 Total operating revenue – Consumers $ 1,091 $ 1,119 $ 2,210 1 Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $22 million for the three months ended March 31, 2023. In Millions Three Months Ended March 31, 2022 Electric Utility Gas Utility NorthStar Clean Energy 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,238 $ 1,047 $ — $ 2,285 Other — — 33 33 Revenue recognized from contracts with customers $ 1,238 $ 1,047 $ 33 $ 2,318 Leasing income — — 58 58 Financing income 3 2 — 5 Consumers alternative-revenue programs — (7) — (7) Total operating revenue – CMS Energy $ 1,241 $ 1,042 $ 91 $ 2,374 Consumers Consumers utility revenue Residential $ 591 $ 740 $ 1,331 Commercial 384 221 605 Industrial 168 28 196 Other 95 58 153 Revenue recognized from contracts with customers $ 1,238 $ 1,047 $ 2,285 Financing income 3 2 5 Alternative-revenue programs — (7) (7) Total operating revenue – Consumers $ 1,241 $ 1,042 $ 2,283 1 Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $44 million for the three months ended March 31, 2022. 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 $9 million for the three months ended March 31, 2023 and $4 million for the three months ended March 31, 2022. 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 $447 million at March 31, 2023 and $663 million at December 31, 2022. |
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 March 31, 2023 Electric Utility Gas Utility NorthStar Clean Energy 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,089 $ 1,116 $ — $ 2,205 Other — — 43 43 Revenue recognized from contracts with customers $ 1,089 $ 1,116 $ 43 $ 2,248 Leasing income — — 31 31 Financing income 2 3 — 5 Total operating revenue – CMS Energy $ 1,091 $ 1,119 $ 74 $ 2,284 Consumers Consumers utility revenue Residential $ 528 $ 776 $ 1,304 Commercial 347 247 594 Industrial 161 31 192 Other 53 62 115 Revenue recognized from contracts with customers $ 1,089 $ 1,116 $ 2,205 Financing income 2 3 5 Total operating revenue – Consumers $ 1,091 $ 1,119 $ 2,210 1 Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $22 million for the three months ended March 31, 2023. In Millions Three Months Ended March 31, 2022 Electric Utility Gas Utility NorthStar Clean Energy 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,238 $ 1,047 $ — $ 2,285 Other — — 33 33 Revenue recognized from contracts with customers $ 1,238 $ 1,047 $ 33 $ 2,318 Leasing income — — 58 58 Financing income 3 2 — 5 Consumers alternative-revenue programs — (7) — (7) Total operating revenue – CMS Energy $ 1,241 $ 1,042 $ 91 $ 2,374 Consumers Consumers utility revenue Residential $ 591 $ 740 $ 1,331 Commercial 384 221 605 Industrial 168 28 196 Other 95 58 153 Revenue recognized from contracts with customers $ 1,238 $ 1,047 $ 2,285 Financing income 3 2 5 Alternative-revenue programs — (7) (7) Total operating revenue – Consumers $ 1,241 $ 1,042 $ 2,283 1 Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $44 million for the three months ended March 31, 2022. 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 $9 million for the three months ended March 31, 2023 and $4 million for the three months ended March 31, 2022. 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 $447 million at March 31, 2023 and $663 million at December 31, 2022. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | |
Reportable Segments | Reportable SegmentsReportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders. CMS Energy The segments reported for CMS Energy are: • electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan • NorthStar Clean Energy, 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 CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items. Consumers The segments reported for Consumers are: • electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan Consumers’ other consolidated entities are presented within other reconciling items. Presented in the following tables is financial information by segment: In Millions Three Months Ended March 31 2023 2022 CMS Energy, including Consumers Operating revenue Electric utility $ 1,091 $ 1,241 Gas utility 1,119 1,042 NorthStar Clean Energy 74 91 Total operating revenue – CMS Energy $ 2,284 $ 2,374 Consumers Operating revenue Electric utility $ 1,091 $ 1,241 Gas utility 1,119 1,042 Total operating revenue – Consumers $ 2,210 $ 2,283 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 70 $ 167 Gas utility 154 216 NorthStar Clean Energy 7 8 Other reconciling items (29) (40) Total net income available to common stockholders – CMS Energy $ 202 $ 351 Consumers Net income available to common stockholder Electric utility $ 70 $ 167 Gas utility 154 216 Other reconciling items 8 — Total net income available to common stockholder – Consumers $ 232 $ 383 In Millions March 31, 2023 December 31, 2022 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 18,056 $ 17,870 Gas utility 1 11,631 11,443 NorthStar Clean Energy 1,151 1,148 Other reconciling items 28 30 Total plant, property, and equipment, gross – CMS Energy $ 30,866 $ 30,491 Consumers Plant, property, and equipment, gross Electric utility 1 $ 18,056 $ 17,870 Gas utility 1 11,631 11,443 Other reconciling items 34 29 Total plant, property, and equipment, gross – Consumers $ 29,721 $ 29,342 CMS Energy, including Consumers Total assets Electric utility 1 $ 18,117 $ 17,907 Gas utility 1 11,507 11,873 NorthStar Clean Energy 1,534 1,464 Other reconciling items 228 109 Total assets – CMS Energy $ 31,386 $ 31,353 Consumers Total assets Electric utility 1 $ 18,177 $ 17,968 Gas utility 1 11,552 11,918 Other reconciling items 43 30 Total assets – Consumers $ 29,772 $ 29,916 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 • NorthStar Clean Energy, 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 CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items. Consumers The segments reported for Consumers are: • electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan Consumers’ other consolidated entities are presented within other reconciling items. Presented in the following tables is financial information by segment: In Millions Three Months Ended March 31 2023 2022 CMS Energy, including Consumers Operating revenue Electric utility $ 1,091 $ 1,241 Gas utility 1,119 1,042 NorthStar Clean Energy 74 91 Total operating revenue – CMS Energy $ 2,284 $ 2,374 Consumers Operating revenue Electric utility $ 1,091 $ 1,241 Gas utility 1,119 1,042 Total operating revenue – Consumers $ 2,210 $ 2,283 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 70 $ 167 Gas utility 154 216 NorthStar Clean Energy 7 8 Other reconciling items (29) (40) Total net income available to common stockholders – CMS Energy $ 202 $ 351 Consumers Net income available to common stockholder Electric utility $ 70 $ 167 Gas utility 154 216 Other reconciling items 8 — Total net income available to common stockholder – Consumers $ 232 $ 383 In Millions March 31, 2023 December 31, 2022 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 18,056 $ 17,870 Gas utility 1 11,631 11,443 NorthStar Clean Energy 1,151 1,148 Other reconciling items 28 30 Total plant, property, and equipment, gross – CMS Energy $ 30,866 $ 30,491 Consumers Plant, property, and equipment, gross Electric utility 1 $ 18,056 $ 17,870 Gas utility 1 11,631 11,443 Other reconciling items 34 29 Total plant, property, and equipment, gross – Consumers $ 29,721 $ 29,342 CMS Energy, including Consumers Total assets Electric utility 1 $ 18,117 $ 17,907 Gas utility 1 11,507 11,873 NorthStar Clean Energy 1,534 1,464 Other reconciling items 228 109 Total assets – CMS Energy $ 31,386 $ 31,353 Consumers Total assets Electric utility 1 $ 18,177 $ 17,968 Gas utility 1 11,552 11,918 Other reconciling items 43 30 Total assets – Consumers $ 29,772 $ 29,916 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 | 3 Months Ended |
Mar. 31, 2023 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities NorthStar Clean Energy holds a Class B membership interest in NWO Holdco, which owns 100 percent of Northwest Ohio Wind, LLC, a 100‑MW wind generation project in Paulding County, Ohio. The Class A membership interest in NWO Holdco is held by a tax equity investor. NorthStar Clean Energy has a 51‑percent ownership interest in Aviator Wind Equity Holdings, which holds a Class B membership interest in Aviator Wind, the holding company of a 525‑MW wind generation project in Coke County, Texas. The Class A membership interest in Aviator Wind is held by a tax equity investor. Earnings, tax attributes, and cash flows generated by NWO Holdco and Aviator Wind are allocated among and distributed to the membership classes in accordance with the ratios specified in the associated limited liability company agreements; these ratios change over time and are not representative of the ownership interest percentages of each membership class. Since NWO Holdco’s and Aviator Wind’s income and cash flows are not distributed among their investors based on ownership interest percentages, NorthStar Clean Energy allocates the entities’ income (loss) among the investors by applying the hypothetical liquidation at book value method. This method calculates each investor’s earnings based on a hypothetical liquidation of the entities at the net book value of underlying assets as of the balance sheet date. The liquidation tax gain (loss) is allocated to each investor’s capital account, resulting in income (loss) equal to the period change in the investor’s capital account balance. NWO Holdco, Aviator Wind Equity Holdings, and Aviator Wind are VIEs. In accordance with the associated limited liability company agreements, the tax equity investors are guaranteed preferred returns from NWO Holdco and Aviator Wind. However, NorthStar Clean Energy manages and controls the operating activities of NWO Holdco and Aviator Wind Equity Holdings (and, thereby, Aviator Wind). As a result, NorthStar Clean Energy is the primary beneficiary, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies. NorthStar Clean Energy consolidates NWO Holdco, Aviator Wind Equity Holdings, and Aviator Wind and presents the Class A membership interests and 49 percent of the Class B membership interest in Aviator Wind as noncontrolling interests. Presented in the following table are the carrying values of the VIEs’ assets and liabilities included on CMS Energy’s consolidated balance sheets: In Millions March 31, 2023 December 31, 2022 Current Cash and cash equivalents $ 21 $ 28 Accounts receivable 3 7 Prepayments and other current assets 4 3 Non-current Plant, property, and equipment, net 818 825 Total assets 1 $ 846 $ 863 Current Accounts payable $ 4 $ 15 Non-current Asset retirement obligations 24 24 Total liabilities $ 28 $ 39 1 Assets may be used only to meet VIEs’ obligations and commitments. NorthStar Clean Energy is obligated under certain indemnities that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. For additional details on these indemnity obligations, see Note 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. CMS Energy’s maximum risk exposure to these partnerships is generally limited to its investment in the partnerships, which is included in investments on its consolidated balance sheets in the amount of $72 million at March 31, 2023 and $71 million at December 31, 2022. |
Exit Activities
Exit Activities | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | |
Exit Activities | Exit Activities Under its Clean Energy Plan, Consumers will retire the D.E. Karn coal-fueled electric generating units in May 2023 and the J.H. Campbell coal-fueled generating units in 2025. Consumers has announced retention incentive programs to ensure necessary staffing at both locations through the anticipated retirements. The aggregate cost of the D.E. Karn program through 2022 was $31 million, and Consumers expects to recognize an additional $2 million of retention benefit costs in the first half of 2023. The aggregate cost of the J.H. Campbell program through 2025 is estimated to be $50 million. The MPSC has approved deferred accounting treatment for these costs; this expense will be deferred as a regulatory asset. As of March 31, 2023, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $12 million has been deferred as a regulatory asset. The cumulative cost incurred and deferred as a regulatory asset related to the J.H. Campbell retention incentive program was $24 million. Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets: In Millions Three Months Ended March 31 2023 2022 Retention benefit liability at beginning of period $ 21 $ 14 Costs deferred as a regulatory asset 5 1 Retention benefit liability at the end of the period 1 $ 26 $ 15 1 Includes current portion of other liabilities of $16 million at March 31, 2023 and $5 million at March 31, 2022. |
Consumers Energy Company | |
Restructuring Cost and Reserve [Line Items] | |
Exit Activities | Exit Activities Under its Clean Energy Plan, Consumers will retire the D.E. Karn coal-fueled electric generating units in May 2023 and the J.H. Campbell coal-fueled generating units in 2025. Consumers has announced retention incentive programs to ensure necessary staffing at both locations through the anticipated retirements. The aggregate cost of the D.E. Karn program through 2022 was $31 million, and Consumers expects to recognize an additional $2 million of retention benefit costs in the first half of 2023. The aggregate cost of the J.H. Campbell program through 2025 is estimated to be $50 million. The MPSC has approved deferred accounting treatment for these costs; this expense will be deferred as a regulatory asset. As of March 31, 2023, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $12 million has been deferred as a regulatory asset. The cumulative cost incurred and deferred as a regulatory asset related to the J.H. Campbell retention incentive program was $24 million. Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets: In Millions Three Months Ended March 31 2023 2022 Retention benefit liability at beginning of period $ 21 $ 14 Costs deferred as a regulatory asset 5 1 Retention benefit liability at the end of the period 1 $ 26 $ 15 1 Includes current portion of other liabilities of $16 million at March 31, 2023 and $5 million at March 31, 2022. |
Significant Accounting Policies
Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2023 | |
Significant Accounting Policies [Line Items] | |
EPS | Nonvested Stock Awards CMS Energy’s nonvested stock awards are composed of participating and non‑participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the nonvested stock awards are considered participating securities. As such, the participating nonvested stock awards were included in the computation of basic EPS. The non‑participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non‑participating securities are also forfeited. Accordingly, the non‑participating awards and stock dividends were included in the computation of diluted EPS, but not in the computation of basic EPS. Forward Equity Sale Contracts CMS Energy has entered into forward equity sale contracts. These forward equity sale contracts are non‑participating securities. While the forward sale price in the forward equity sale contract is decreased on certain dates by certain predetermined amounts to reflect expected dividend payments, these price adjustments were set upon inception of the agreement and the forward contract does not give the owner the right to participate in undistributed earnings. Accordingly, the forward equity sale contracts were included in the computation of diluted EPS, but not in the computation of basic EPS. For further details on the forward equity sale contracts, see Note 3, Financings and Capitalization. |
Accounts Receivable | Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due. |
Consolidation, Variable Interest Entity | NWO Holdco, Aviator Wind Equity Holdings, and Aviator Wind are VIEs. In accordance with the associated limited liability company agreements, the tax equity investors are guaranteed preferred returns from NWO Holdco and Aviator Wind. However, NorthStar Clean Energy manages and controls the operating activities of NWO Holdco and Aviator Wind Equity Holdings (and, thereby, Aviator Wind). As a result, NorthStar Clean Energy is the primary beneficiary, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies.CMS Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While CMS Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships. |
Consumers Energy Company | |
Significant Accounting Policies [Line Items] | |
Consumers Utility Revenue | Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below. • Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver. • Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity. In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature. |
Accounts Receivable | Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due. |
Unbilled Revenues | Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Site Contingency [Line Items] | |
Schedule of Remediation and Other Response Activity Costs by Year | CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2023 and in each of the next five years: In Millions 2023 2024 2025 2026 2027 2028 CMS Energy Long-term leachate disposal and operating and maintenance costs $ 3 $ 4 $ 4 $ 4 $ 4 $ 4 |
Summary of Guarantees | Presented in the following table are CMS Energy’s and Consumers’ guarantees at March 31, 2023: In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from sale of membership interests in VIEs 1 various indefinite $ 318 $ — Indemnity obligations from stock and asset sale agreements 2 various indefinite 226 3 Guarantee 3 2011 indefinite 30 — Consumers Guarantee 3 2011 indefinite $ 30 $ — 1 These obligations arose from the sale of membership interests in NWO Holdco and Aviator Wind to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on NorthStar Clean Energy’s ownership interest in NWO Holdco and Aviator Wind, see Note 11, 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, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim. 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] | |
Schedule of Remediation and Other Response Activity Costs by Year | Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2023 and in each of the next five years: In Millions 2023 2024 2025 2026 2027 2028 Consumers Remediation and other response activity costs $ 5 $ 11 $ 31 $ 6 $ 1 $ 1 |
Summary of Guarantees | Presented in the following table are CMS Energy’s and Consumers’ guarantees at March 31, 2023: In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from sale of membership interests in VIEs 1 various indefinite $ 318 $ — Indemnity obligations from stock and asset sale agreements 2 various indefinite 226 3 Guarantee 3 2011 indefinite 30 — Consumers Guarantee 3 2011 indefinite $ 30 $ — 1 These obligations arose from the sale of membership interests in NWO Holdco and Aviator Wind to tax equity investors. NorthStar Clean Energy provided certain indemnity obligations that protect the tax equity investors against losses incurred as a result of breaches of representations and warranties under the associated limited liability company agreements. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest. For any indemnity obligations related to Aviator Wind, NorthStar Clean Energy would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on NorthStar Clean Energy’s ownership interest in NWO Holdco and Aviator Wind, see Note 11, 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, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim. 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) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Instrument [Line Items] | |
Schedule of Major Long-Term Debt Issuances and Retirements | Presented in the following table is a summary of major long-term debt retirements during the three months ended March 31, 2023: Principal Interest Rate (%) Retirement Date Maturity Date Consumers Term loan facility $ 1,000 variable February 2023 January 2024 |
Schedule of Revolving Credit Facilities | The following credit facilities with banks were available at March 31, 2023: In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only December 14, 2027 1 $ 550 $ — $ 21 $ 529 September 22, 2024 50 — 50 — NorthStar Clean Energy, including subsidiaries September 25, 2025 2 $ 37 $ — $ 37 $ — Consumers 3 December 14, 2027 $ 1,100 $ — $ 27 $ 1,073 November 18, 2024 250 — 27 223 1 There were no borrowings under this facility during the three months ended March 31, 2023. 2 This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 11, Variable Interest Entities. 3 Obligations under these facilities are secured by first mortgage bonds of Consumers. There were no borrowings under these facilities during the three months ended March 31, 2023. |
Schedule of Forward Contracts | Presented in the following table are details of CMS Energy’s forward sales contracts under its equity offering program at March 31, 2023: Forward Price Per Share Contract Date Maturity Date Number of Shares Initial March 31, 2023 August 3, 2022 February 1, 2024 2,944,207 67.59 67.98 August 24, 2022 February 26, 2024 1,677,938 69.46 69.89 August 29, 2022 February 26, 2024 1,783,388 68.18 68.56 |
Consumers Energy Company | |
Debt Instrument [Line Items] | |
Schedule of Major Long-Term Debt Issuances and Retirements | Presented in the following table is a summary of major long-term debt issuances during the three months ended March 31, 2023: Principal Interest Rate (%) Issuance Date Maturity Date NorthStar Clean Energy, including subsidiaries Term loan facility 1 $ 85 variable February 2023 September 2023 Total NorthStar Clean Energy, including subsidiaries $ 85 Consumers First mortgage bonds $ 425 4.650 % January 2023 March 2028 First mortgage bonds 700 4.625 February 2023 May 2033 Total Consumers $ 1,125 Total CMS Energy $ 1,210 1 In December 2022, a subsidiary of NorthStar Clean Energy entered into a $185 million unsecured term loan credit agreement. Under this credit agreement, a subsidiary of NorthStar Clean Energy borrowed $85 million in 2023. As of March 31, 2023, there was $185 million of loans outstanding bearing an interest rate of 5.806 percent under the unsecured term loan credit agreement. |
Schedule of Revolving Credit Facilities | The following credit facilities with banks were available at March 31, 2023: In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only December 14, 2027 1 $ 550 $ — $ 21 $ 529 September 22, 2024 50 — 50 — NorthStar Clean Energy, including subsidiaries September 25, 2025 2 $ 37 $ — $ 37 $ — Consumers 3 December 14, 2027 $ 1,100 $ — $ 27 $ 1,073 November 18, 2024 250 — 27 223 1 There were no borrowings under this facility during the three months ended March 31, 2023. 2 This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 11, Variable Interest Entities. 3 Obligations under these facilities are secured by first mortgage bonds of Consumers. There were no borrowings under these facilities during the three months ended March 31, 2023. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31 December 31 March 31 December 31 Assets 1 Cash equivalents $ 216 $ — $ 166 $ — Restricted cash equivalents 27 18 26 17 Nonqualified deferred compensation plan assets 26 24 20 18 Derivative instruments 1 2 1 2 Total assets $ 270 $ 44 $ 213 $ 37 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 26 $ 24 $ 20 $ 18 Total liabilities $ 26 $ 24 $ 20 $ 18 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as 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 March 31 December 31 March 31 December 31 Assets 1 Cash equivalents $ 216 $ — $ 166 $ — Restricted cash equivalents 27 18 26 17 Nonqualified deferred compensation plan assets 26 24 20 18 Derivative instruments 1 2 1 2 Total assets $ 270 $ 44 $ 213 $ 37 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 26 $ 24 $ 20 $ 18 Total liabilities $ 26 $ 24 $ 20 $ 18 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 3. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 December 31, 2022 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 $ 13 $ 13 $ — $ — $ 13 $ 14 $ 14 $ — $ — $ 14 Liabilities Long-term debt 2 14,410 12,928 1,076 10,066 1,786 14,212 12,384 987 8,741 2,656 Long-term payables 3 8 7 — — 7 9 7 — — 7 Consumers Assets Long-term receivables 1 $ 13 $ 13 $ — $ — $ 13 $ 14 $ 14 $ — $ — $ 14 Notes receivable – related party 4 100 100 — — 100 101 101 — — 101 Liabilities Long-term debt 5 10,295 9,060 — 7,459 1,601 10,183 8,728 — 6,172 2,556 1 Includes current portion of long-term accounts receivable and notes receivable of $7 million at March 31, 2023 and December 31, 2022. 2 Includes current portion of long-term debt of $1,425 million at March 31, 2023 and $1,090 million at December 31, 2022. 3 Includes current portion of long-term payables of $1 million at March 31, 2023 and $2 million at December 31, 2022. 4 Includes current portion of notes receivable – related party of $7 million at March 31, 2023 and December 31, 2022. 5 Includes current portion of long-term debt of $991 million at March 31, 2023 and December 31, 2022. |
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 March 31, 2023 December 31, 2022 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 $ 13 $ 13 $ — $ — $ 13 $ 14 $ 14 $ — $ — $ 14 Liabilities Long-term debt 2 14,410 12,928 1,076 10,066 1,786 14,212 12,384 987 8,741 2,656 Long-term payables 3 8 7 — — 7 9 7 — — 7 Consumers Assets Long-term receivables 1 $ 13 $ 13 $ — $ — $ 13 $ 14 $ 14 $ — $ — $ 14 Notes receivable – related party 4 100 100 — — 100 101 101 — — 101 Liabilities Long-term debt 5 10,295 9,060 — 7,459 1,601 10,183 8,728 — 6,172 2,556 1 Includes current portion of long-term accounts receivable and notes receivable of $7 million at March 31, 2023 and December 31, 2022. 2 Includes current portion of long-term debt of $1,425 million at March 31, 2023 and $1,090 million at December 31, 2022. 3 Includes current portion of long-term payables of $1 million at March 31, 2023 and $2 million at December 31, 2022. 4 Includes current portion of notes receivable – related party of $7 million at March 31, 2023 and December 31, 2022. 5 Includes current portion of long-term debt of $991 million at March 31, 2023 and December 31, 2022. |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Net Benefit Costs | Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans: In Millions DB Pension Plans OPEB Plan Three Months Ended March 31 2023 2022 2023 2022 CMS Energy, including Consumers Net periodic credit Service cost $ 7 $ 12 $ 3 $ 4 Interest cost 27 18 11 7 Expected return on plan assets (55) (52) (26) (29) Amortization of: Net loss 3 17 3 — Prior service cost (credit) 1 1 (10) (12) Settlement loss 2 2 — — Net periodic credit $ (15) $ (2) $ (19) $ (30) Consumers Net periodic credit Service cost $ 7 $ 12 $ 3 $ 4 Interest cost 25 16 11 7 Expected return on plan assets (52) (49) (24) (27) Amortization of: Net loss 3 16 3 — Prior service cost (credit) 1 1 (10) (12) Settlement loss 2 2 — — Net periodic credit $ (14) $ (2) $ (17) $ (28) |
Consumers Energy Company | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Net Benefit Costs | Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans: In Millions DB Pension Plans OPEB Plan Three Months Ended March 31 2023 2022 2023 2022 CMS Energy, including Consumers Net periodic credit Service cost $ 7 $ 12 $ 3 $ 4 Interest cost 27 18 11 7 Expected return on plan assets (55) (52) (26) (29) Amortization of: Net loss 3 17 3 — Prior service cost (credit) 1 1 (10) (12) Settlement loss 2 2 — — Net periodic credit $ (15) $ (2) $ (19) $ (30) Consumers Net periodic credit Service cost $ 7 $ 12 $ 3 $ 4 Interest cost 25 16 11 7 Expected return on plan assets (52) (49) (24) (27) Amortization of: Net loss 3 16 3 — Prior service cost (credit) 1 1 (10) (12) Settlement loss 2 2 — — Net periodic credit $ (14) $ (2) $ (17) $ (28) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: Three Months Ended March 31 2023 2022 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 1 (0.5) 5.5 Production tax credits (4.2) (4.7) TCJA excess deferred taxes 2 (3.7) (7.2) Accelerated flow-through of regulatory tax benefits 3 — (4.3) Other, net 0.4 — Effective tax rate 13.0 % 10.3 % 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 1 — 5.0 Production tax credits (3.6) (2.7) TCJA excess deferred taxes 2 (3.2) (6.7) Accelerated flow-through of regulatory tax benefits 3 — (5.1) Other, net (0.1) (0.6) Effective tax rate 14.1 % 10.9 % 1 CMS Energy initiated a plan to divest immaterial business activities in the state of Wisconsin and will no longer have a taxable presence within the state after 2023. As a result of these actions, CMS Energy reversed a $13 million Wisconsin-related state reserve, all of which was recognized at Consumers. 2 In 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, non ‑ property-related excess deferred income taxes resulting from the TCJA. The regulatory liability was fully amortized in 2022. 3 In 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 were fully amortized in 2022. |
Consumers Energy Company | |
Income Taxes [Line Items] | |
Schedule Of Effective Income Tax Rate Reconciliation | Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations: Three Months Ended March 31 2023 2022 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 1 (0.5) 5.5 Production tax credits (4.2) (4.7) TCJA excess deferred taxes 2 (3.7) (7.2) Accelerated flow-through of regulatory tax benefits 3 — (4.3) Other, net 0.4 — Effective tax rate 13.0 % 10.3 % 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 1 — 5.0 Production tax credits (3.6) (2.7) TCJA excess deferred taxes 2 (3.2) (6.7) Accelerated flow-through of regulatory tax benefits 3 — (5.1) Other, net (0.1) (0.6) Effective tax rate 14.1 % 10.9 % 1 CMS Energy initiated a plan to divest immaterial business activities in the state of Wisconsin and will no longer have a taxable presence within the state after 2023. As a result of these actions, CMS Energy reversed a $13 million Wisconsin-related state reserve, all of which was recognized at Consumers. 2 In 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, non ‑ property-related excess deferred income taxes resulting from the TCJA. The regulatory liability was fully amortized in 2022. 3 In 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 were fully amortized in 2022. |
Earnings Per Share - CMS Ener_2
Earnings Per Share - CMS Energy (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31 2023 2022 Income available to common stockholders Income from continuing operations $ 194 $ 341 Less loss attributable to noncontrolling interests (10) (8) Less preferred stock dividends 2 2 Income from continuing operations available to common stockholders – basic and diluted $ 202 $ 347 Average common shares outstanding Weighted-average shares – basic 290.7 289.3 Add dilutive nonvested stock awards 0.5 0.5 Add dilutive forward equity sale contracts — 0.1 Weighted-average shares – diluted 291.2 289.9 Income from continuing operations per average common share available to common stockholders Basic $ 0.69 $ 1.20 Diluted 0.69 1.20 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | Presented in the following tables are the components of operating revenue: In Millions Three Months Ended March 31, 2023 Electric Utility Gas Utility NorthStar Clean Energy 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,089 $ 1,116 $ — $ 2,205 Other — — 43 43 Revenue recognized from contracts with customers $ 1,089 $ 1,116 $ 43 $ 2,248 Leasing income — — 31 31 Financing income 2 3 — 5 Total operating revenue – CMS Energy $ 1,091 $ 1,119 $ 74 $ 2,284 Consumers Consumers utility revenue Residential $ 528 $ 776 $ 1,304 Commercial 347 247 594 Industrial 161 31 192 Other 53 62 115 Revenue recognized from contracts with customers $ 1,089 $ 1,116 $ 2,205 Financing income 2 3 5 Total operating revenue – Consumers $ 1,091 $ 1,119 $ 2,210 In Millions Three Months Ended March 31, 2022 Electric Utility Gas Utility NorthStar Clean Energy 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,238 $ 1,047 $ — $ 2,285 Other — — 33 33 Revenue recognized from contracts with customers $ 1,238 $ 1,047 $ 33 $ 2,318 Leasing income — — 58 58 Financing income 3 2 — 5 Consumers alternative-revenue programs — (7) — (7) Total operating revenue – CMS Energy $ 1,241 $ 1,042 $ 91 $ 2,374 Consumers Consumers utility revenue Residential $ 591 $ 740 $ 1,331 Commercial 384 221 605 Industrial 168 28 196 Other 95 58 153 Revenue recognized from contracts with customers $ 1,238 $ 1,047 $ 2,285 Financing income 3 2 5 Alternative-revenue programs — (7) (7) Total operating revenue – Consumers $ 1,241 $ 1,042 $ 2,283 1 Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $44 million for the three months ended March 31, 2022. |
Consumers Energy Company | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | Presented in the following tables are the components of operating revenue: In Millions Three Months Ended March 31, 2023 Electric Utility Gas Utility NorthStar Clean Energy 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,089 $ 1,116 $ — $ 2,205 Other — — 43 43 Revenue recognized from contracts with customers $ 1,089 $ 1,116 $ 43 $ 2,248 Leasing income — — 31 31 Financing income 2 3 — 5 Total operating revenue – CMS Energy $ 1,091 $ 1,119 $ 74 $ 2,284 Consumers Consumers utility revenue Residential $ 528 $ 776 $ 1,304 Commercial 347 247 594 Industrial 161 31 192 Other 53 62 115 Revenue recognized from contracts with customers $ 1,089 $ 1,116 $ 2,205 Financing income 2 3 5 Total operating revenue – Consumers $ 1,091 $ 1,119 $ 2,210 In Millions Three Months Ended March 31, 2022 Electric Utility Gas Utility NorthStar Clean Energy 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,238 $ 1,047 $ — $ 2,285 Other — — 33 33 Revenue recognized from contracts with customers $ 1,238 $ 1,047 $ 33 $ 2,318 Leasing income — — 58 58 Financing income 3 2 — 5 Consumers alternative-revenue programs — (7) — (7) Total operating revenue – CMS Energy $ 1,241 $ 1,042 $ 91 $ 2,374 Consumers Consumers utility revenue Residential $ 591 $ 740 $ 1,331 Commercial 384 221 605 Industrial 168 28 196 Other 95 58 153 Revenue recognized from contracts with customers $ 1,238 $ 1,047 $ 2,285 Financing income 3 2 5 Alternative-revenue programs — (7) (7) Total operating revenue – Consumers $ 1,241 $ 1,042 $ 2,283 1 Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. NorthStar Clean Energy’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $44 million for the three months ended March 31, 2022. |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31 2023 2022 CMS Energy, including Consumers Operating revenue Electric utility $ 1,091 $ 1,241 Gas utility 1,119 1,042 NorthStar Clean Energy 74 91 Total operating revenue – CMS Energy $ 2,284 $ 2,374 Consumers Operating revenue Electric utility $ 1,091 $ 1,241 Gas utility 1,119 1,042 Total operating revenue – Consumers $ 2,210 $ 2,283 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 70 $ 167 Gas utility 154 216 NorthStar Clean Energy 7 8 Other reconciling items (29) (40) Total net income available to common stockholders – CMS Energy $ 202 $ 351 Consumers Net income available to common stockholder Electric utility $ 70 $ 167 Gas utility 154 216 Other reconciling items 8 — Total net income available to common stockholder – Consumers $ 232 $ 383 In Millions March 31, 2023 December 31, 2022 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 18,056 $ 17,870 Gas utility 1 11,631 11,443 NorthStar Clean Energy 1,151 1,148 Other reconciling items 28 30 Total plant, property, and equipment, gross – CMS Energy $ 30,866 $ 30,491 Consumers Plant, property, and equipment, gross Electric utility 1 $ 18,056 $ 17,870 Gas utility 1 11,631 11,443 Other reconciling items 34 29 Total plant, property, and equipment, gross – Consumers $ 29,721 $ 29,342 CMS Energy, including Consumers Total assets Electric utility 1 $ 18,117 $ 17,907 Gas utility 1 11,507 11,873 NorthStar Clean Energy 1,534 1,464 Other reconciling items 228 109 Total assets – CMS Energy $ 31,386 $ 31,353 Consumers Total assets Electric utility 1 $ 18,177 $ 17,968 Gas utility 1 11,552 11,918 Other reconciling items 43 30 Total assets – Consumers $ 29,772 $ 29,916 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 March 31 2023 2022 CMS Energy, including Consumers Operating revenue Electric utility $ 1,091 $ 1,241 Gas utility 1,119 1,042 NorthStar Clean Energy 74 91 Total operating revenue – CMS Energy $ 2,284 $ 2,374 Consumers Operating revenue Electric utility $ 1,091 $ 1,241 Gas utility 1,119 1,042 Total operating revenue – Consumers $ 2,210 $ 2,283 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 70 $ 167 Gas utility 154 216 NorthStar Clean Energy 7 8 Other reconciling items (29) (40) Total net income available to common stockholders – CMS Energy $ 202 $ 351 Consumers Net income available to common stockholder Electric utility $ 70 $ 167 Gas utility 154 216 Other reconciling items 8 — Total net income available to common stockholder – Consumers $ 232 $ 383 In Millions March 31, 2023 December 31, 2022 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 18,056 $ 17,870 Gas utility 1 11,631 11,443 NorthStar Clean Energy 1,151 1,148 Other reconciling items 28 30 Total plant, property, and equipment, gross – CMS Energy $ 30,866 $ 30,491 Consumers Plant, property, and equipment, gross Electric utility 1 $ 18,056 $ 17,870 Gas utility 1 11,631 11,443 Other reconciling items 34 29 Total plant, property, and equipment, gross – Consumers $ 29,721 $ 29,342 CMS Energy, including Consumers Total assets Electric utility 1 $ 18,117 $ 17,907 Gas utility 1 11,507 11,873 NorthStar Clean Energy 1,534 1,464 Other reconciling items 228 109 Total assets – CMS Energy $ 31,386 $ 31,353 Consumers Total assets Electric utility 1 $ 18,177 $ 17,968 Gas utility 1 11,552 11,918 Other reconciling items 43 30 Total assets – Consumers $ 29,772 $ 29,916 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) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 December 31, 2022 Current Cash and cash equivalents $ 21 $ 28 Accounts receivable 3 7 Prepayments and other current assets 4 3 Non-current Plant, property, and equipment, net 818 825 Total assets 1 $ 846 $ 863 Current Accounts payable $ 4 $ 15 Non-current Asset retirement obligations 24 24 Total liabilities $ 28 $ 39 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 - (Tables)
Exit Activities - (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Retention Benefit Liability Roll Forward | Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets: In Millions Three Months Ended March 31 2023 2022 Retention benefit liability at beginning of period $ 21 $ 14 Costs deferred as a regulatory asset 5 1 Retention benefit liability at the end of the period 1 $ 26 $ 15 1 Includes current portion of other liabilities of $16 million at March 31, 2023 and $5 million at March 31, 2022. |
Consumers Energy Company | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Retention Benefit Liability Roll Forward | Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets: In Millions Three Months Ended March 31 2023 2022 Retention benefit liability at beginning of period $ 21 $ 14 Costs deferred as a regulatory asset 5 1 Retention benefit liability at the end of the period 1 $ 26 $ 15 1 Includes current portion of other liabilities of $16 million at March 31, 2023 and $5 million at March 31, 2022. |
Regulatory Matters - Quarterly
Regulatory Matters - Quarterly Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | |||
Jan. 31, 2023 | Apr. 27, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Public Utilities, General Disclosures [Line Items] | ||||
Regulatory liabilities | $ 107 | $ 104 | ||
Consumers Energy Company | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Regulatory liabilities | $ 107 | 104 | ||
Consumers Energy Company | Electric Rate Case | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Additional annual rate increase authorized | $ 155 | |||
Rate of return on equity authorized | 9.90% | |||
Surcharge for the recovery of excess distribution investments | $ 6 | |||
Consumers Energy Company | Voluntary refund mechanism | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Regulatory liabilities | $ 22 | |||
Consumers Energy Company | Contributions to programs assisting vulnerable customers | Subsequent Event | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Regulatory liabilities | $ 5 | |||
Consumers Energy Company | Direct benefit to customers | Subsequent Event | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Regulatory liabilities | $ 17 |
Contingencies and Commitments_2
Contingencies and Commitments (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jul. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2023 USD ($) site | Dec. 31, 2022 USD ($) | |
Loss Contingencies [Line Items] | ||||
Regulatory assets | $ 3,804 | $ 3,595 | ||
Environmental Loss Contingency, Statement Of Financial Position, Extensible Enumeration, Not Disclosed Flag | recorded liability | |||
Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Regulatory assets | $ 3,804 | $ 3,595 | ||
Consumers Energy Company | MGP Sites | ||||
Loss Contingencies [Line Items] | ||||
Regulatory assets | $ 106 | |||
Consumers Energy Company | Ludington | ||||
Loss Contingencies [Line Items] | ||||
Ownership share | 51% | |||
Consumers Energy Company | Ludington Plant Overhaul Contract Dispute | ||||
Loss Contingencies [Line Items] | ||||
Damages sought | $ 15 | |||
Consumers Energy Company | J.H. Campbell 3 Plant Retirement Contract Dispute | ||||
Loss Contingencies [Line Items] | ||||
Damages sought | $ 37 | |||
Bay Harbor | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | $ 45 | |||
Discount rate | 4.34% | |||
Accrual for environmental loss contingencies, inflation rate | 1% | |||
Accrual for environmental loss contingencies, gross | $ 56 | |||
NREPA | Electric Utility | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | 2 | |||
NREPA | Gas Utility | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | 1 | |||
NREPA | Minimum | Electric Utility | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Remediation and other response activity costs | 2 | |||
NREPA | Maximum | Electric Utility | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Remediation and other response activity costs | 4 | |||
NREPA | Maximum | Gas Utility | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Remediation and other response activity costs | 3 | |||
CERCLA Liability | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | 3 | |||
CERCLA Liability | Minimum | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Remediation and other response activity costs | 3 | |||
CERCLA Liability | Maximum | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Remediation and other response activity costs | 8 | |||
MGP Sites | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | $ 63 | |||
Discount rate | 2.57% | |||
Accrual for environmental loss contingencies, inflation rate | 2.50% | |||
Accrual for environmental loss contingencies, gross | $ 67 | |||
Number of former MGPs | site | 23 | |||
Regulatory asset collection period | 10 years |
Contingencies and Commitments_3
Contingencies and Commitments (Schedule of Remediation and Other Response Activity Costs by Year) (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Bay Harbor | |
Site Contingency [Line Items] | |
2023 | $ 3 |
2024 | 4 |
2025 | 4 |
2026 | 4 |
2027 | 4 |
2028 | 4 |
Consumers Energy Company | MGP Sites | |
Site Contingency [Line Items] | |
2023 | 5 |
2024 | 11 |
2025 | 31 |
2026 | 6 |
2027 | 1 |
2028 | $ 1 |
Contingencies and Commitments_4
Contingencies and Commitments (Summary of Guarantees) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership | |
Guarantees And Other Contingencies [Line Items] | |
Ownership percentage | 49% |
Guarantees | |
Guarantees And Other Contingencies [Line Items] | |
Expiration Date | indefinite |
Maximum Obligation | $ 30 |
Carrying Amount | $ 0 |
Guarantees | Consumers Energy Company | |
Guarantees And Other Contingencies [Line Items] | |
Expiration Date | indefinite |
Maximum Obligation | $ 30 |
Carrying Amount | $ 0 |
Indemnification agreement from sale of membership interests in VIEs | |
Guarantees And Other Contingencies [Line Items] | |
Expiration Date | indefinite |
Maximum Obligation | $ 318 |
Carrying Amount | $ 0 |
Indemnity obligations from stock and asset sale agreements | |
Guarantees And Other Contingencies [Line Items] | |
Expiration Date | indefinite |
Maximum Obligation | $ 226 |
Carrying Amount | $ 3 |
Financings and Capitalization_2
Financings and Capitalization (Major Long-Term Debt Issuances and Retirements) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Jan. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Principal (In Millions) | $ 1,210 | ||
NorthStar Clean Energy, Including Subsidiaries | |||
Debt Instrument [Line Items] | |||
Principal (In Millions) | 85 | ||
Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Principal (In Millions) | 1,125 | ||
Term loan facility | Term Loan Facility Due 2023 | NorthStar Clean Energy, Including Subsidiaries | |||
Debt Instrument [Line Items] | |||
Principal (In Millions) | $ 85 | ||
Interest rate | 5.806% | ||
Maximum borrowing capacity | $ 185 | ||
Total principal amount outstanding | $ 185 | ||
Term loan facility | Term Loan Facility Due 2024 | |||
Debt Instrument [Line Items] | |||
Principal (In Millions) | 1,000 | ||
First mortgage bonds | 4.650% First Mortgage Bonds Due March 2028 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Principal (In Millions) | $ 425 | ||
Interest rate | 4.65% | ||
First mortgage bonds | 4.625% First Mortgage Bonds Due May 2033 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Principal (In Millions) | $ 700 | ||
Interest rate | 4.625% | ||
First mortgage bonds | 5.251% First Mortgage Bonds | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Principal (In Millions) | $ 400 | ||
Weighted average interest rate | 5.251% |
Financings and Capitalization_3
Financings and Capitalization (Schedule of Revolving Credit Facilities) (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Consumers Energy Company | Letter of Credit | |
Line of Credit Facility [Line Items] | |
Borrowings | $ 0 |
Consumers Energy Company | Revolving Credit Facilities December 14, 2027 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 1,100,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 27,000,000 |
Amount Available | 1,073,000,000 |
Consumers Energy Company | Revolving Credit Facilities November 18, 2024 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 250,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 27,000,000 |
Amount Available | 223,000,000 |
CMS Energy | Revolving Credit Facilities December 14, 2027 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 550,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 21,000,000 |
Amount Available | 529,000,000 |
CMS Energy | Revolving Credit Facilities December 14, 2027 | Letter of Credit | |
Line of Credit Facility [Line Items] | |
Borrowings | 0 |
CMS Energy | Revolving Credit Facilities September 22, 2024 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 50,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 50,000,000 |
Amount Available | 0 |
NorthStar Clean Energy, Including Subsidiaries | Revolving Credit Facilities September 25, 2025 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 37,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 37,000,000 |
Amount Available | $ 0 |
Financings and Capitalization_4
Financings and Capitalization (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Financing And Capitalization [Line Items] | ||
Limitation on payment of stock dividends | $ 6,800,000,000 | |
Dividends paid | 287,000,000 | |
Consumers Energy Company | ||
Financing And Capitalization [Line Items] | ||
Notes payable – related parties | 0 | $ 75,000,000 |
Unrestricted retained earnings | 1,900,000,000 | |
Consumers Energy Company | Credit Agreement | ||
Financing And Capitalization [Line Items] | ||
Maximum borrowing capacity | $ 500,000,000 | |
Notes payable – related parties | 0 | |
Consumers Energy Company | Commercial Paper | ||
Financing And Capitalization [Line Items] | ||
Short-term debt authorized borrowings | 500,000,000 | |
Short-term borrowings outstanding | $ 0 |
Financings and Capitalization_5
Financings and Capitalization (Schedule of Forward Stock Contracts) (Details) - $ / shares | Mar. 31, 2023 | Aug. 29, 2022 | Aug. 24, 2022 | Aug. 03, 2022 |
Forward contracts entered into 8/3/2022 | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Number of Shares (in shares) | 2,944,207 | |||
Initial forward price (in dollars per share) | $ 67.98 | $ 67.59 | ||
Forward contracts entered into 8/24/2022 | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Number of Shares (in shares) | 1,677,938 | |||
Initial forward price (in dollars per share) | 69.89 | $ 69.46 | ||
Forward contracts entered into 8/29/2022 | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Number of Shares (in shares) | 1,783,388 | |||
Initial forward price (in dollars per share) | $ 68.56 | $ 68.18 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Restricted cash equivalents | $ 27 | $ 18 |
Derivative instruments | 1 | 2 |
Consumers Energy Company | ||
Assets | ||
Restricted cash equivalents | 26 | 17 |
Derivative instruments | 1 | 2 |
Level 1 | ||
Assets | ||
Cash equivalents | 216 | 0 |
Restricted cash equivalents | 27 | 18 |
Nonqualified deferred compensation plan assets | 26 | 24 |
Liabilities | ||
Nonqualified deferred compensation plan liabilities | 26 | 24 |
Level 1 | Consumers Energy Company | ||
Assets | ||
Cash equivalents | 166 | 0 |
Restricted cash equivalents | 26 | 17 |
Nonqualified deferred compensation plan assets | 20 | 18 |
Liabilities | ||
Nonqualified deferred compensation plan liabilities | 20 | 18 |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Assets | ||
Total assets | 270 | 44 |
Liabilities | ||
Total liabilities | 26 | 24 |
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company | ||
Assets | ||
Total assets | 213 | 37 |
Liabilities | ||
Total liabilities | $ 20 | $ 18 |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Liabilities | ||
Current accounts receivable and notes receivable | $ 7 | $ 7 |
Current portion of long term debt | 1,425 | 1,090 |
Current portion of long-term payables | 1 | 2 |
Carrying Amount | ||
Assets | ||
Long-term receivables | 13 | 14 |
Liabilities | ||
Long-term debt | 14,410 | 14,212 |
Long-term payables | 8 | 9 |
Fair Value | ||
Assets | ||
Long-term receivables | 13 | 14 |
Liabilities | ||
Long-term debt | 12,928 | 12,384 |
Long-term payables | 7 | 7 |
Consumers Energy Company | ||
Liabilities | ||
Current accounts receivable and notes receivable | 7 | 7 |
Current portion of long term debt | 991 | 991 |
DB SERP note receivable – related party | 7 | 7 |
Consumers Energy Company | Carrying Amount | ||
Assets | ||
Long-term receivables | 13 | 14 |
Notes receivable related party | 100 | 101 |
Liabilities | ||
Long-term debt | 10,295 | 10,183 |
Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 13 | 14 |
Notes receivable related party | 100 | 101 |
Liabilities | ||
Long-term debt | 9,060 | 8,728 |
Level 1 | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Liabilities | ||
Long-term debt | 1,076 | 987 |
Long-term payables | 0 | 0 |
Level 1 | Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Notes receivable related party | 0 | 0 |
Liabilities | ||
Long-term debt | 0 | 0 |
Level 2 | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Liabilities | ||
Long-term debt | 10,066 | 8,741 |
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 | 7,459 | 6,172 |
Level 3 | Fair Value | ||
Assets | ||
Long-term receivables | 13 | 14 |
Liabilities | ||
Long-term debt | 1,786 | 2,656 |
Long-term payables | 7 | 7 |
Level 3 | Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 13 | 14 |
Notes receivable related party | 100 | 101 |
Liabilities | ||
Long-term debt | $ 1,601 | $ 2,556 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) | Mar. 31, 2023 |
Consumers Energy Company | CMS Energy Note Payable | |
Financial Instruments [Line Items] | |
Interest rate | 4.10% |
Retirement Benefits (Schedule O
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
DB Pension Plans | ||
Defined Benefit Plan, Roll Forwards [Abstract] | ||
Service cost | $ 7 | $ 12 |
Interest cost | 27 | 18 |
Expected return on plan assets | (55) | (52) |
Amortization of | ||
Net loss | 3 | 17 |
Prior service cost (credit) | 1 | 1 |
Settlement loss | 2 | 2 |
Net periodic credit | (15) | (2) |
DB Pension Plans | Volatility Mechanism | ||
Amortization of | ||
Deferred costs (credits) | 3 | |
DB Pension Plans | Consumers Energy Company | ||
Defined Benefit Plan, Roll Forwards [Abstract] | ||
Service cost | 7 | 12 |
Interest cost | 25 | 16 |
Expected return on plan assets | (52) | (49) |
Amortization of | ||
Net loss | 3 | 16 |
Prior service cost (credit) | 1 | 1 |
Settlement loss | 2 | 2 |
Net periodic credit | (14) | (2) |
OPEB Plan | ||
Defined Benefit Plan, Roll Forwards [Abstract] | ||
Service cost | 3 | 4 |
Interest cost | 11 | 7 |
Expected return on plan assets | (26) | (29) |
Amortization of | ||
Net loss | 3 | 0 |
Prior service cost (credit) | (10) | (12) |
Settlement loss | 0 | 0 |
Net periodic credit | (19) | (30) |
OPEB Plan | Volatility Mechanism | ||
Amortization of | ||
Deferred costs (credits) | (6) | |
OPEB Plan | Consumers Energy Company | ||
Defined Benefit Plan, Roll Forwards [Abstract] | ||
Service cost | 3 | 4 |
Interest cost | 11 | 7 |
Expected return on plan assets | (24) | (27) |
Amortization of | ||
Net loss | 3 | 0 |
Prior service cost (credit) | (10) | (12) |
Settlement loss | 0 | 0 |
Net periodic credit | $ (17) | $ (28) |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Rate Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Increase (decrease) in income taxes from: | ||
U.S. federal income tax rate | 21% | 21% |
State and local income taxes, net of federal effect | (0.50%) | 5.50% |
Production tax credits | (4.20%) | (4.70%) |
TCJA excess deferred taxes | (3.70%) | (7.20%) |
Accelerated flow-through of regulatory tax benefits | 0% | (4.30%) |
Other, net | 0.40% | 0% |
Effective tax rate | 13% | 10.30% |
Consumers Energy Company | ||
Increase (decrease) in income taxes from: | ||
U.S. federal income tax rate | 21% | 21% |
State and local income taxes, net of federal effect | 0% | 5% |
Production tax credits | (3.60%) | (2.70%) |
TCJA excess deferred taxes | (3.20%) | (6.70%) |
Accelerated flow-through of regulatory tax benefits | 0% | (5.10%) |
Other, net | (0.10%) | (0.60%) |
Effective tax rate | 14.10% | 10.90% |
Consumers Energy Company | Wisconsin | ||
Increase (decrease) in income taxes from: | ||
Reversal of tax reserve | $ 13 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income available to common stockholders | ||
Income from continuing operations | $ 194 | $ 341 |
Loss attributable to noncontrolling interests | (10) | (8) |
Preferred stock dividends | 2 | 2 |
Income from continuing operations available to common stockholders – basic and diluted | $ 202 | $ 347 |
Average common shares outstanding | ||
Weighted average shares - basic (in shares) | 290.7 | 289.3 |
Dilutive nonvested stock awards (in shares) | 0.5 | 0.5 |
Dilutive forward equity sale contracts (in shares) | 0 | 0.1 |
Weighted average shares - diluted (in shares) | 291.2 | 289.9 |
Income from continuing operations per average common share available to common stockholders | ||
Basic (in dollars per share) | $ 0.69 | $ 1.20 |
Diluted (in dollars per share) | $ 0.69 | $ 1.20 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | $ 2,248 | $ 2,318 |
Leasing income | 31 | 58 |
Financing income | 5 | 5 |
Consumers alternative-revenue programs | (7) | |
Total operating revenue | 2,284 | 2,374 |
Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 1,089 | 1,238 |
Financing income | 2 | 3 |
Consumers alternative-revenue programs | 0 | |
Total operating revenue | 1,091 | 1,241 |
Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 1,116 | 1,047 |
Financing income | 3 | 2 |
Consumers alternative-revenue programs | (7) | |
Total operating revenue | 1,119 | 1,042 |
NorthStar Clean Energy | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 43 | 33 |
Leasing income | 31 | 58 |
Total operating revenue | 74 | 91 |
Variable lease income | 22 | 44 |
Consumers Energy Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 2,205 | 2,285 |
Financing income | 5 | 5 |
Consumers alternative-revenue programs | (7) | |
Total operating revenue | 2,210 | 2,283 |
Consumers Energy Company | Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 1,089 | 1,238 |
Financing income | 2 | 3 |
Consumers alternative-revenue programs | 0 | |
Total operating revenue | 1,091 | 1,241 |
Consumers Energy Company | Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 1,116 | 1,047 |
Financing income | 3 | 2 |
Consumers alternative-revenue programs | (7) | |
Total operating revenue | 1,119 | 1,042 |
Residential | Consumers Energy Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 1,304 | 1,331 |
Residential | Consumers Energy Company | Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 528 | 591 |
Residential | Consumers Energy Company | Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 776 | 740 |
Commercial | Consumers Energy Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 594 | 605 |
Commercial | Consumers Energy Company | Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 347 | 384 |
Commercial | Consumers Energy Company | Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 247 | 221 |
Industrial | Consumers Energy Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 192 | 196 |
Industrial | Consumers Energy Company | Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 161 | 168 |
Industrial | Consumers Energy Company | Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 31 | 28 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 43 | 33 |
Other | NorthStar Clean Energy | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 43 | 33 |
Other | Consumers Energy Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 115 | 153 |
Other | Consumers Energy Company | Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 53 | 95 |
Other | Consumers Energy Company | Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | $ 62 | $ 58 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Unbilled receivables | $ 447 | $ 663 | |
Consumers Energy Company | |||
Disaggregation of Revenue [Line Items] | |||
Unbilled receivables | 447 | $ 663 | |
Accounts Receivable | |||
Disaggregation of Revenue [Line Items] | |||
Bad debt expense | 9 | $ 4 | |
Accounts Receivable | Consumers Energy Company | |||
Disaggregation of Revenue [Line Items] | |||
Bad debt expense | $ 9 | $ 4 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Operating Revenue | $ 2,284 | $ 2,374 | |
Net income (loss) available to common stockholders | 202 | 351 | |
Plant, property, and equipment, gross | 30,866 | $ 30,491 | |
Total assets | 31,386 | 31,353 | |
Consumers Energy Company | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 2,210 | 2,283 | |
Net income (loss) available to common stockholders | 232 | 383 | |
Plant, property, and equipment, gross | 29,721 | 29,342 | |
Total assets | 29,772 | 29,916 | |
Other reconciling items | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) available to common stockholders | (29) | (40) | |
Plant, property, and equipment, gross | 28 | 30 | |
Total assets | 228 | 109 | |
Other reconciling items | Consumers Energy Company | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) available to common stockholders | 8 | 0 | |
Plant, property, and equipment, gross | 34 | 29 | |
Total assets | 43 | 30 | |
Electric Utility | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 1,091 | 1,241 | |
Net income (loss) available to common stockholders | 70 | 167 | |
Plant, property, and equipment, gross | 18,056 | 17,870 | |
Total assets | 18,117 | 17,907 | |
Electric Utility | Operating Segments | Consumers Energy Company | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 1,091 | 1,241 | |
Net income (loss) available to common stockholders | 70 | 167 | |
Plant, property, and equipment, gross | 18,056 | 17,870 | |
Total assets | 18,177 | 17,968 | |
Gas Utility | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 1,119 | 1,042 | |
Net income (loss) available to common stockholders | 154 | 216 | |
Plant, property, and equipment, gross | 11,631 | 11,443 | |
Total assets | 11,507 | 11,873 | |
Gas Utility | Operating Segments | Consumers Energy Company | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 1,119 | 1,042 | |
Net income (loss) available to common stockholders | 154 | 216 | |
Plant, property, and equipment, gross | 11,631 | 11,443 | |
Total assets | 11,552 | 11,918 | |
NorthStar Clean Energy | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 74 | 91 | |
Net income (loss) available to common stockholders | 7 | $ 8 | |
Plant, property, and equipment, gross | 1,151 | 1,148 | |
Total assets | $ 1,534 | $ 1,464 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) MW | Dec. 31, 2022 USD ($) | |
Variable Interest Entity [Line Items] | ||
Investments | $ | $ 72 | $ 71 |
NWO Holdco, L.L.C | ||
Variable Interest Entity [Line Items] | ||
Nameplate capacity (in MW) | MW | 100 | |
Variable Interest Entity, Primary Beneficiary | Aviator Wind | ||
Variable Interest Entity [Line Items] | ||
Nameplate capacity (in MW) | MW | 525 | |
Ownership interest | 51% | |
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership | ||
Variable Interest Entity [Line Items] | ||
Noncontrolling ownership interest | 49% | |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments | $ | $ 72 | $ 71 |
Variable Interest Entity, Not Primary Beneficiary | T.E.S. Filer City | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50% | |
Variable Interest Entity, Not Primary Beneficiary | Grayling | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50% | |
Variable Interest Entity, Not Primary Beneficiary | Genesee | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50% | |
Variable Interest Entity, Not Primary Beneficiary | Craven | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50% |
Variable Interest Entities (Con
Variable Interest Entities (Consolidated Information of Variable Interest Entity) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 571 | $ 164 |
Accounts receivable | 1,009 | 1,564 |
Prepayments and other current assets | 130 | 113 |
Plant, property, and equipment, net | 23,003 | 22,713 |
Total assets | 31,386 | 31,353 |
Accounts payable | 679 | 928 |
Asset retirement obligations | 762 | 746 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | 21 | 28 |
Accounts receivable | 3 | 7 |
Prepayments and other current assets | 4 | 3 |
Plant, property, and equipment, net | 818 | 825 |
Total assets | 846 | 863 |
Accounts payable | 4 | 15 |
Asset retirement obligations | 24 | 24 |
Total liabilities | $ 28 | $ 39 |
Exit Activities - Narrative (De
Exit Activities - Narrative (Details) - Retention Benefits - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 42 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Cost deferred | $ 5 | $ 1 | ||||
D.E. Karn Generating Complex | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Aggregate cost incurred | $ 31 | |||||
Retention and severance costs | $ 16 | |||||
D.E. Karn Generating Complex | Forecast | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected cost | $ 2 | |||||
D.E. Karn Generating Complex | Retention Incentive Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cost deferred | 12 | |||||
D.E. Karn Generating Complex | Property, Plant and Equipment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Costs incurred and capitalized | 4 | |||||
J.H. Campbell Generating Units | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected cost | $ 50 | $ 50 | $ 50 | |||
J.H. Campbell Generating Units | Retention Incentive Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cost deferred | $ 24 |
Exit Activities - Schedule of R
Exit Activities - Schedule of Retention Benefit Liability Roll Forward (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Restructuring Reserve [Roll Forward] | |||
Other current liabilities | $ 154 | $ 166 | |
Retention Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Retention benefit liability at beginning of period | 21 | $ 14 | |
Costs deferred as a regulatory asset | 5 | 1 | |
Retention benefit liability at the end of the period | 26 | 15 | |
Other current liabilities | $ 16 | $ 5 |