Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 08, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | 298,635,428 | |
Entity Central Index Key | 0000811156 | |
Document Fiscal Year Focus | 2024 | |
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 | |
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 | |
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 | |
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, 2024 | Mar. 31, 2023 | |
Operating Revenue | $ 2,176 | $ 2,284 |
Operating Expenses | ||
Fuel for electric generation | 156 | 137 |
Purchased power – related parties | 18 | 19 |
Maintenance and other operating expenses | 402 | 431 |
Depreciation and amortization | 368 | 353 |
General taxes | 155 | 142 |
Total operating expenses | 1,764 | 1,970 |
Operating Income | 412 | 314 |
Other Income (Expense) | ||
Non-operating retirement benefits, net | 44 | 45 |
Other income | 44 | 15 |
Other expense | (2) | (4) |
Total other income | 86 | 56 |
Interest Charges | ||
Interest on long-term debt | 172 | 144 |
Total interest charges | 177 | 147 |
Income Before Income Taxes | 321 | 223 |
Income Tax Expense | 58 | 29 |
Net Income | 263 | 194 |
Loss Attributable to Noncontrolling Interests | (24) | (10) |
Net Income | 287 | 204 |
Preferred Stock Dividends | 2 | 2 |
Net Income Available to Common Stockholders | $ 285 | $ 202 |
Earnings Per Average Common Share | ||
Basic earnings per average common share (in dollars per share) | $ 0.96 | $ 0.69 |
Diluted earnings per average common share (in dollars per share) | $ 0.96 | $ 0.69 |
Related Party | ||
Interest Charges | ||
Other interest expense | $ 3 | $ 3 |
Nonrelated Party | ||
Interest Charges | ||
Other interest expense | 2 | 0 |
Purchased and interchange power | ||
Operating Expenses | ||
Cost of goods and services sold | 314 | 341 |
Cost of gas sold | ||
Operating Expenses | ||
Cost of goods and services sold | $ 351 | $ 547 |
CMS Energy Corporation Consol_2
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 263 | $ 194 |
Retirement Benefits Liability | ||
Net gain arising during the period | 0 | 1 |
Amortization of net actuarial loss, net of tax | 1 | 0 |
Other Comprehensive Income | 1 | 1 |
Comprehensive Income | 264 | 195 |
Comprehensive Loss Attributable to Noncontrolling Interests | (24) | (10) |
Comprehensive Income Attributable to CMS Energy | $ 288 | $ 205 |
CMS Energy Corporation Consol_3
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net gain (loss) arising during the period, tax | $ 0 | ||
Amortization of net actuarial loss, tax | $ 0 |
CMS Energy Corporation Consol_4
CMS Energy Corporation Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows from Operating Activities | ||
Net Income | $ 263 | $ 194 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 368 | 353 |
Deferred income taxes and investment tax credits | 51 | 29 |
Other non‑cash operating activities and reconciling adjustments | (36) | (19) |
Changes in assets and liabilities | ||
Accounts receivable and accrued revenue | 27 | 174 |
Inventories | 259 | 391 |
Accounts payable and accrued rate refunds | (69) | (153) |
Other current assets and liabilities | (1) | (51) |
Other non‑current assets and liabilities | 94 | 122 |
Net cash provided by operating activities | 956 | 1,040 |
Cash Flows from Investing Activities | ||
Cost to retire property and other investing activities | (24) | (34) |
Net cash used in investing activities | (637) | (651) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of debt | 599 | 1,205 |
Retirement of debt | (319) | (1,000) |
Decrease in notes payable | (93) | (20) |
Issuance of common stock | 272 | 4 |
Payment of dividends on common and preferred stock | (156) | (145) |
Other financing costs | (9) | (17) |
Net cash provided by financing activities | 294 | 27 |
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts | 613 | 416 |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 248 | 182 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 861 | 598 |
Non‑cash transactions | ||
Capital expenditures not paid | 156 | 157 |
Capital Expenditures | ||
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under finance lease) | $ (613) | $ (617) |
CMS Energy Corporation Consol_5
CMS Energy Corporation Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets | ||
Cash and cash equivalents | $ 802 | $ 227 |
Restricted cash and cash equivalents | 59 | 21 |
Inventories at average cost | ||
Gas in underground storage | 326 | 587 |
Materials and supplies | 273 | 267 |
Generating plant fuel stock | 78 | 84 |
Deferred property taxes | 344 | 426 |
Regulatory assets | 201 | 203 |
Prepayments and other current assets | 110 | 80 |
Total current assets | 3,091 | 2,839 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 33,236 | 33,135 |
Less accumulated depreciation and amortization | 9,006 | 9,007 |
Plant, property, and equipment, net | 24,230 | 24,128 |
Construction work in progress | 1,050 | 944 |
Total plant, property, and equipment | 25,280 | 25,072 |
Other Non‑current Assets | ||
Regulatory assets | 3,608 | 3,683 |
Accounts receivable | 22 | 22 |
Investments | 73 | 76 |
Postretirement benefits | 1,509 | 1,468 |
Other | 318 | 357 |
Total other non‑current assets | 5,530 | 5,606 |
Total Assets | 33,901 | 33,517 |
Current Liabilities | ||
Current portion of long-term debt and finance leases | 772 | 980 |
Notes payable | 0 | 93 |
Accrued rate refunds | 28 | 54 |
Accrued interest | 169 | 142 |
Accrued taxes | 455 | 612 |
Regulatory liabilities | 72 | 56 |
Other current liabilities | 148 | 149 |
Total current liabilities | 2,295 | 2,895 |
Non‑current Liabilities | ||
Long-term debt | 14,973 | 14,508 |
Non-current portion of finance leases | 61 | 62 |
Regulatory liabilities | 3,968 | 3,894 |
Postretirement benefits | 104 | 106 |
Asset retirement obligations | 777 | 771 |
Deferred investment tax credit | 125 | 126 |
Deferred income taxes | 2,679 | 2,615 |
Other non‑current liabilities | 413 | 415 |
Total non‑current liabilities | 23,100 | 22,497 |
Commitments and Contingencies | ||
Common stockholders’ equity | ||
Common stock | 3 | 3 |
Other paid-in capital | 5,975 | 5,705 |
Accumulated other comprehensive loss | (45) | (46) |
Retained earnings | 1,789 | 1,658 |
Total common stockholders’ equity | 7,722 | 7,320 |
Cumulative preferred stock | 224 | 224 |
Total stockholders’ equity | 7,946 | 7,544 |
Noncontrolling interests | 560 | 581 |
Total equity | 8,506 | 8,125 |
Total Liabilities and Equity | 33,901 | 33,517 |
Nonrelated Party | ||
Current Assets | ||
Accounts receivable and accrued revenue, less allowance of $23 in 2024 and $21 in 2023 | 889 | 933 |
Current Liabilities | ||
Accounts payable | 644 | 802 |
Related Party | ||
Current Assets | ||
Accounts receivable – related parties | 9 | 11 |
Current Liabilities | ||
Accounts payable | $ 7 | $ 7 |
CMS Energy Corporation Consol_6
CMS Energy Corporation Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts receivable and accrued revenue, allowance | $ 23 | $ 21 |
Common stock authorized (in shares) | 350 | 350 |
Common stock outstanding (in shares) | 298.6 | 294.4 |
Series C Preferred Stock Depositary Shares | ||
Preferred stock authorized (in shares) | 9.2 | |
Preferred stock outstanding (in shares) | 9.2 |
CMS Energy Corporation Consol_7
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 | Retained Earnings | Cumulative Preferred Stock | Noncontrolling Interests |
Total Equity at Beginning of Period at Dec. 31, 2022 | $ 7,595 | $ 3 | $ 5,490 | $ (52) | $ 1,350 | $ 224 | $ 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 | ||||||
Net Income | 194 | 204 | (10) | |||||
Dividends declared on common stock | (142) | |||||||
Dividends declared on preferred stock | (2) | |||||||
Other changes in noncontrolling interests | 2 | |||||||
Total Equity at End of Period at Mar. 31, 2023 | $ 7,652 | 3 | 5,494 | $ (51) | 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 | |||||||
Total Equity at Beginning of Period at Dec. 31, 2023 | $ 8,125 | 3 | 5,705 | (46) | 1,658 | 224 | 581 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock issued | 281 | |||||||
Common stock repurchased | (11) | |||||||
Net gain arising during the period | 0 | 0 | ||||||
Amortization of net actuarial loss | 1 | $ 1 | ||||||
Net Income | 263 | 287 | (24) | |||||
Dividends declared on common stock | (154) | |||||||
Dividends declared on preferred stock | (2) | |||||||
Other changes in noncontrolling interests | 3 | |||||||
Total Equity at End of Period at Mar. 31, 2024 | $ 8,506 | $ 3 | $ 5,975 | $ (45) | $ 1,789 | $ 224 | $ 560 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared per common share (in dollars per share) | $ 0.5150 | |||||||
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, 2024 | Mar. 31, 2023 | |
Operating Revenue | $ 2,176 | $ 2,284 |
Operating Expenses | ||
Operating Income | 412 | 314 |
Other Income (Expense) | ||
Non-operating retirement benefits, net | 44 | 45 |
Other income | 44 | 15 |
Other expense | (2) | (4) |
Total other income | 86 | 56 |
Interest Charges | ||
Interest on long-term debt | 172 | 144 |
Total interest charges | 177 | 147 |
Income Before Income Taxes | 321 | 223 |
Income Tax Expense | 58 | 29 |
Net income (loss) available to common stockholders | 285 | 202 |
Related Party | ||
Interest Charges | ||
Other interest expense | 3 | 3 |
Nonrelated Party | ||
Interest Charges | ||
Other interest expense | 2 | 0 |
Consumers Energy Company | ||
Operating Revenue | 2,097 | 2,210 |
Operating Expenses | ||
Fuel for electric generation | 125 | 98 |
Purchased and interchange power | 306 | 334 |
Purchased power – related parties | 18 | 19 |
Cost of gas sold | 350 | 546 |
Maintenance and other operating expenses | 378 | 409 |
Depreciation and amortization | 356 | 344 |
General taxes | 152 | 139 |
Total operating expenses | 1,685 | 1,889 |
Operating Income | 412 | 321 |
Other Income (Expense) | ||
Non-operating retirement benefits, net | 41 | 43 |
Other income | 17 | 12 |
Other expense | (2) | (4) |
Total other income | 56 | 51 |
Interest Charges | ||
Interest on long-term debt | 121 | 99 |
Total interest charges | 129 | 102 |
Income Before Income Taxes | 339 | 270 |
Income Tax Expense | 64 | 38 |
Net income (loss) available to common stockholders | 275 | 232 |
Consumers Energy Company | Related Party | ||
Interest Charges | ||
Other interest expense | 6 | 3 |
Consumers Energy Company | Nonrelated Party | ||
Interest Charges | ||
Other interest expense | $ 2 | $ 0 |
Consumers Energy Company Cons_2
Consumers Energy Company Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net Income | $ 287 | $ 204 |
Other Comprehensive Income | 1 | 1 |
Comprehensive Income Attributable to CMS Energy | 288 | 205 |
Consumers Energy Company | ||
Net Income | 275 | 232 |
Other Comprehensive Income | 0 | 0 |
Comprehensive Income Attributable to CMS Energy | $ 275 | $ 232 |
Consumers Energy Company Cons_3
Consumers Energy Company Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows from Operating Activities | ||
Net Income | $ 287 | $ 204 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Deferred income taxes and investment tax credits | 51 | 29 |
Other non‑cash operating activities and reconciling adjustments | (36) | (19) |
Changes in assets and liabilities | ||
Accounts receivable and accrued revenue | 27 | 174 |
Inventories | 259 | 391 |
Accounts payable and accrued rate refunds | (69) | (153) |
Other current assets and liabilities | (1) | (51) |
Other non‑current assets and liabilities | 94 | 122 |
Net cash provided by operating activities | 956 | 1,040 |
Cash Flows from Investing Activities | ||
Cost to retire property and other investing activities | (24) | (34) |
Net cash used in investing activities | (637) | (651) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of debt | 599 | 1,205 |
Retirement of debt | (319) | (1,000) |
Decrease in notes payable | (93) | (20) |
Other financing costs | (9) | (17) |
Net cash provided by financing activities | 294 | 27 |
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts | 613 | 416 |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 248 | 182 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 861 | 598 |
Non‑cash transactions | ||
Capital expenditures not paid | 156 | 157 |
Capital Expenditures | ||
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under finance lease) | (613) | (617) |
Consumers Energy Company | ||
Cash Flows from Operating Activities | ||
Net Income | 275 | 232 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 356 | 344 |
Deferred income taxes and investment tax credits | 52 | 37 |
Other non‑cash operating activities and reconciling adjustments | (16) | (17) |
Changes in assets and liabilities | ||
Accounts receivable and accrued revenue | 28 | 157 |
Inventories | 258 | 389 |
Accounts payable and accrued rate refunds | (57) | (140) |
Other current assets and liabilities | (6) | (48) |
Other non‑current assets and liabilities | 89 | 116 |
Net cash provided by operating activities | 979 | 1,070 |
Cash Flows from Investing Activities | ||
Cost to retire property and other investing activities | (23) | (33) |
Net cash used in investing activities | (607) | (588) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of debt | 599 | 1,120 |
Retirement of debt | 0 | (1,000) |
Stockholder contribution | 320 | 75 |
Return of stockholder contribution | (320) | 0 |
Payment of dividends on common and preferred stock | (265) | (287) |
Other financing costs | (3) | (12) |
Net cash provided by financing activities | 238 | (199) |
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts | 610 | 283 |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 56 | 60 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 666 | 343 |
Non‑cash transactions | ||
Capital expenditures not paid | 152 | 142 |
Consumers Energy Company | Capital Expenditures | ||
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under finance lease) | (584) | (555) |
Consumers Energy Company | Nonrelated Party | ||
Cash Flows from Financing Activities | ||
Decrease in notes payable | (93) | (20) |
Consumers Energy Company | Related Party | ||
Cash Flows from Financing Activities | ||
Decrease in notes payable | $ 0 | $ (75) |
Consumers Energy Company Cons_4
Consumers Energy Company Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets | ||
Cash and cash equivalents | $ 802 | $ 227 |
Restricted cash and cash equivalents | 59 | 21 |
Inventories at average cost | ||
Gas in underground storage | 326 | 587 |
Materials and supplies | 273 | 267 |
Generating plant fuel stock | 78 | 84 |
Deferred property taxes | 344 | 426 |
Regulatory assets | 201 | 203 |
Prepayments and other current assets | 110 | 80 |
Total current assets | 3,091 | 2,839 |
Other Non‑current Assets | ||
Regulatory assets | 3,608 | 3,683 |
Accounts and notes receivable – related parties | 22 | 22 |
Postretirement benefits | 1,509 | 1,468 |
Other | 318 | 357 |
Total other non‑current assets | 5,530 | 5,606 |
Total Assets | 33,901 | 33,517 |
Current Liabilities | ||
Current portion of long-term debt and finance leases | 772 | 980 |
Notes payable | 0 | 93 |
Accrued rate refunds | 28 | 54 |
Accrued interest | 169 | 142 |
Accrued taxes | 455 | 612 |
Regulatory liabilities | 72 | 56 |
Other current liabilities | 148 | 149 |
Total current liabilities | 2,295 | 2,895 |
Non‑current Liabilities | ||
Long-term debt | 14,973 | 14,508 |
Non-current portion of finance leases | 61 | 62 |
Regulatory liabilities | 3,968 | 3,894 |
Postretirement benefits | 104 | 106 |
Asset retirement obligations | 777 | 771 |
Deferred investment tax credit | 125 | 126 |
Deferred income taxes | 2,679 | 2,615 |
Other non‑current liabilities | 413 | 415 |
Total non‑current liabilities | 23,100 | 22,497 |
Commitments and Contingencies | ||
Common stockholders’ equity | ||
Common stock | 3 | 3 |
Other paid-in capital | 5,975 | 5,705 |
Accumulated other comprehensive loss | (45) | (46) |
Retained earnings | 1,789 | 1,658 |
Total common stockholders’ equity | 7,722 | 7,320 |
Cumulative preferred stock | 224 | 224 |
Total stockholders’ equity | 7,946 | 7,544 |
Total Liabilities and Equity | 33,901 | 33,517 |
Nonrelated Party | ||
Current Assets | ||
Accounts receivable and accrued revenue, less allowance of $23 in 2024 and $21 in 2023 | 889 | 933 |
Current Liabilities | ||
Accounts payable | 644 | 802 |
Related Party | ||
Current Liabilities | ||
Accounts payable | 7 | 7 |
Consumers Energy Company | ||
Current Assets | ||
Cash and cash equivalents | 607 | 35 |
Restricted cash and cash equivalents | 59 | 21 |
Inventories at average cost | ||
Gas in underground storage | 326 | 587 |
Materials and supplies | 263 | 257 |
Generating plant fuel stock | 75 | 80 |
Deferred property taxes | 344 | 426 |
Regulatory assets | 201 | 203 |
Prepayments and other current assets | 94 | 65 |
Total current assets | 2,842 | 2,594 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 31,820 | 31,723 |
Less accumulated depreciation and amortization | 8,784 | 8,796 |
Plant, property, and equipment, net | 23,036 | 22,927 |
Construction work in progress | 942 | 845 |
Total plant, property, and equipment | 23,978 | 23,772 |
Other Non‑current Assets | ||
Regulatory assets | 3,608 | 3,683 |
Postretirement benefits | 1,405 | 1,367 |
Other | 253 | 313 |
Total other non‑current assets | 5,389 | 5,486 |
Total Assets | 32,209 | 31,852 |
Current Liabilities | ||
Current portion of long-term debt and finance leases | 772 | 731 |
Accrued rate refunds | 28 | 54 |
Accrued interest | 125 | 110 |
Accrued taxes | 462 | 614 |
Regulatory liabilities | 72 | 56 |
Other current liabilities | 127 | 128 |
Total current liabilities | 2,214 | 2,563 |
Non‑current Liabilities | ||
Non-current portion of finance leases | 38 | 39 |
Regulatory liabilities | 3,968 | 3,894 |
Postretirement benefits | 76 | 77 |
Asset retirement obligations | 744 | 739 |
Deferred investment tax credit | 125 | 126 |
Deferred income taxes | 2,854 | 2,789 |
Other non‑current liabilities | 364 | 364 |
Total non‑current liabilities | 19,185 | 18,489 |
Commitments and Contingencies | ||
Common stockholders’ equity | ||
Common stock | 841 | 841 |
Other paid-in capital | 7,759 | 7,759 |
Accumulated other comprehensive loss | (15) | (15) |
Retained earnings | 2,188 | 2,178 |
Total common stockholders’ equity | 10,773 | 10,763 |
Cumulative preferred stock | 37 | 37 |
Total stockholders’ equity | 10,810 | 10,800 |
Total Liabilities and Equity | 32,209 | 31,852 |
Consumers Energy Company | Nonrelated Party | ||
Current Assets | ||
Accounts receivable and accrued revenue, less allowance of $23 in 2024 and $21 in 2023 | 863 | 909 |
Other Non‑current Assets | ||
Accounts receivable | 28 | 28 |
Current Liabilities | ||
Notes payable | 0 | 93 |
Accounts payable | 613 | 764 |
Non‑current Liabilities | ||
Long-term debt | 10,501 | 10,037 |
Consumers Energy Company | Related Party | ||
Current Assets | ||
Accounts and notes receivable – related parties | 10 | 11 |
Other Non‑current Assets | ||
Accounts and notes receivable – related parties | 95 | 95 |
Current Liabilities | ||
Accounts payable | 15 | 13 |
Non‑current Liabilities | ||
Long-term debt | $ 515 | $ 424 |
Consumers Energy Company Cons_5
Consumers Energy Company Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts receivable and accrued revenue, allowance | $ 23 | $ 21 |
Common stock authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock outstanding (in shares) | 298,600,000 | 294,400,000 |
Consumers Energy Company | ||
Accounts receivable and accrued revenue, allowance | $ 23 | $ 21 |
Common stock authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock outstanding (in shares) | 84,100,000 | 84,100,000 |
Preferred stock, par value (in dollars per share) | $ 4.50 | $ 4.50 |
Preferred stock authorized (in shares) | 7,500,000 | 7,500,000 |
Preferred stock outstanding (in shares) | 400,000 | 400,000 |
Consumers Energy Company Cons_6
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) | 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 Retained Earnings | Consumers Energy Company Cumulative Preferred Stock |
Total Equity at Beginning of Period at Dec. 31, 2022 | $ 7,595 | $ 3 | $ 5,490 | $ 1,350 | $ 224 | $ 10,155 | $ 841 | $ 7,284 | $ (15) | $ 2,008 | $ 37 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stockholder contribution | 75 | |||||||||||
Return of stockholder contribution | 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) | 1,410 | 224 | 10,175 | 841 | 7,359 | (15) | 1,953 | 37 |
Total Equity at Beginning of Period at Dec. 31, 2023 | 8,125 | 3 | 5,705 | 1,658 | 224 | 10,800 | 841 | 7,759 | (15) | 2,178 | 37 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stockholder contribution | 320 | |||||||||||
Return of stockholder contribution | (320) | |||||||||||
Net Income | 287 | 275 | 275 | |||||||||
Dividends declared on common stock | (154) | (265) | ||||||||||
Total Equity at End of Period at Mar. 31, 2024 | $ 8,506 | $ 3 | $ 5,975 | $ (45) | $ 1,789 | $ 224 | $ 10,810 | $ 841 | $ 7,759 | $ (15) | $ 2,188 | $ 37 |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2024 | |
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 power supply cost recovery and gas cost recovery processes. Intervenors also participate in certain FERC matters, including FERC’s regulation of certain wholesale rates that affect Consumers’ power supply costs. 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 and FERC 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. 2023 Electric Rate Case: In May 2023, Consumers filed an application with the MPSC seeking a rate increase of $216 million, based on an authorized return on equity of 10.25 percent for the projected 12 ‑ month period ending February 28, 2025. In September 2023, Consumers revised its requested increase to $169 million. The filing requested authority to recover costs related to new infrastructure investment primarily in distribution system reliability and cleaner energy resources. In March 2024, the MPSC issued an order authorizing an annual rate increase of $92 million, which is inclusive of a $9 million surcharge for the recovery of select distribution investments made in 2022 that exceeded the rates authorized in accordance with the December 2021 electric rate order. The approved rate increase is based on a 9.9-percent authorized return on equity. The new rates became effective March 15, 2024. Meter Investigation: In July 2023, the MPSC issued an order initiating an investigation into Consumers’ handling of malfunctioning meters and meters requiring transition from 3G to 4G, estimated billing, and new service installations. The order directed Consumers to provide information on such meters and their replacement, meter-reading performance, communications with customers and the MPSC regarding these issues, and other information. Subsequently, the MPSC issued a show-cause order directing Consumers to provide further information on consecutive estimated billings, the provision of actual meter readings, and new service installation issues. In April 2024, Consumers signed an agreement with the MPSC Staff and Attorney General settling this matter. Under the settlement agreement, Consumers will pay a $1 million penalty to the MPSC and will return to customers a minimum of $3 million, which may be satisfied with amounts received through an associated claim Consumers has filed against a vendor. The settlement agreement is subject to MPSC approval. |
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 power supply cost recovery and gas cost recovery processes. Intervenors also participate in certain FERC matters, including FERC’s regulation of certain wholesale rates that affect Consumers’ power supply costs. 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 and FERC 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. 2023 Electric Rate Case: In May 2023, Consumers filed an application with the MPSC seeking a rate increase of $216 million, based on an authorized return on equity of 10.25 percent for the projected 12 ‑ month period ending February 28, 2025. In September 2023, Consumers revised its requested increase to $169 million. The filing requested authority to recover costs related to new infrastructure investment primarily in distribution system reliability and cleaner energy resources. In March 2024, the MPSC issued an order authorizing an annual rate increase of $92 million, which is inclusive of a $9 million surcharge for the recovery of select distribution investments made in 2022 that exceeded the rates authorized in accordance with the December 2021 electric rate order. The approved rate increase is based on a 9.9-percent authorized return on equity. The new rates became effective March 15, 2024. Meter Investigation: In July 2023, the MPSC issued an order initiating an investigation into Consumers’ handling of malfunctioning meters and meters requiring transition from 3G to 4G, estimated billing, and new service installations. The order directed Consumers to provide information on such meters and their replacement, meter-reading performance, communications with customers and the MPSC regarding these issues, and other information. Subsequently, the MPSC issued a show-cause order directing Consumers to provide further information on consecutive estimated billings, the provision of actual meter readings, and new service installation issues. In April 2024, Consumers signed an agreement with the MPSC Staff and Attorney General settling this matter. Under the settlement agreement, Consumers will pay a $1 million penalty to the MPSC and will return to customers a minimum of $3 million, which may be satisfied with amounts received through an associated claim Consumers has filed against a vendor. The settlement agreement is subject to MPSC approval. |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024, CMS Energy had a recorded liability of $44 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $56 million. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2024 and in each of the next five years: In Millions 2024 2025 2026 2027 2028 2029 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 $4 million and $5 million. At March 31, 2024, Consumers had a recorded liability of $4 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, 2024, 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 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 those matters, 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, under a parent guaranty it provided. 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 in the U.S. District Court for the Eastern District of Michigan in 2022. TAES and Toshiba 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, if liability and damages were proven. The court denied the motion to dismiss filed by TAES and Toshiba. The parties are engaged in ongoing litigation, including discovery, pursuant to a court-ordered schedule. Consumers believes the counterclaims filed by TAES and Toshiba 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. Toshiba has announced that, through a common stock purchase, TBJH became the majority shareholder and new parent company of Toshiba. TBJH is a subsidiary of a Japanese private equity firm. Consumers and DTE Electric continue to monitor this development, but do not believe that this affects their rights under the parent guaranty provided by Toshiba. In May 2023, the MPSC approved Consumers’ and DTE Electric’s jointly-filed request for 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 moves forward; such costs will be offset by potential future litigation proceeds received from TAES or Toshiba. 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, but cannot predict the financial impact or outcome of such proceedings. J.H. Campbell 3 Contract Dispute: In 2022, Consumers filed a complaint against Wolverine Power 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 Consumers’ and Wolverine Power’s agreement to jointly own and operate the unit. Wolverine Power 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. The state circuit court judge found that Consumers may, in its sole discretion, retire J.H. Campbell 3, provided that Consumers continues to operate and make necessary improvements to the unit while the litigation concerning Wolverine Power’s claim for damages is pending. In May 2023, the circuit court judge issued an order granting Consumers’ motion for clarification confirming that Consumers may continue to operate and invest in J.H. Campbell 3 consistent with the May 2025 retirement date. In March 2024, the circuit court judge issued an order denying Wolverine Power’s motion for partial summary disposition and granting in part and denying in part Consumers’ motion for summary disposition. The judge granted Consumers’ motion for summary disposition on Wolverine Power’s claim that Consumers acted in bad faith in deciding to retire J.H. Campbell 3 early, finding no evidence to support that claim. The judge held that Wolverine Power did identify a genuine issue of material fact as to whether Consumers breached the joint ownership and operating agreement by failing to notify and consult with Wolverine Power regarding the unit’s early retirement. Consumers believes Wolverine Power’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 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, 2024, Consumers had a recorded liability of $62 million for its remaining obligations for these sites. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2024 and in each of the next five years: In Millions 2024 2025 2026 2027 2028 2029 Consumers Remediation and other response activity costs $ 2 $ 1 $ 7 $ 10 $ 25 $ 7 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, 2024, Consumers had a regulatory asset of $97 million related to the MGP sites. Guarantees Presented in the following table are CMS Energy’s and Consumers’ guarantees at March 31, 2024: 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 $ 294 $ — Indemnity obligations from stock and asset sale agreements 2 various indefinite 153 1 Guarantee 3 2011 indefinite 30 — Consumers Guarantee 3 2011 indefinite $ 30 $ — 1 These obligations arose from the sale of membership interests in Aviator Wind, Newport Solar Holdings, and NWO Holdco 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 Aviator Wind, Newport Solar Holdings, and NWO Holdco, 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. 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, 2024, CMS Energy had a recorded liability of $44 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $56 million. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2024 and in each of the next five years: In Millions 2024 2025 2026 2027 2028 2029 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 $4 million and $5 million. At March 31, 2024, Consumers had a recorded liability of $4 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, 2024, 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 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 those matters, 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, under a parent guaranty it provided. 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 in the U.S. District Court for the Eastern District of Michigan in 2022. TAES and Toshiba 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, if liability and damages were proven. The court denied the motion to dismiss filed by TAES and Toshiba. The parties are engaged in ongoing litigation, including discovery, pursuant to a court-ordered schedule. Consumers believes the counterclaims filed by TAES and Toshiba 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. Toshiba has announced that, through a common stock purchase, TBJH became the majority shareholder and new parent company of Toshiba. TBJH is a subsidiary of a Japanese private equity firm. Consumers and DTE Electric continue to monitor this development, but do not believe that this affects their rights under the parent guaranty provided by Toshiba. In May 2023, the MPSC approved Consumers’ and DTE Electric’s jointly-filed request for 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 moves forward; such costs will be offset by potential future litigation proceeds received from TAES or Toshiba. 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, but cannot predict the financial impact or outcome of such proceedings. J.H. Campbell 3 Contract Dispute: In 2022, Consumers filed a complaint against Wolverine Power 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 Consumers’ and Wolverine Power’s agreement to jointly own and operate the unit. Wolverine Power 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. The state circuit court judge found that Consumers may, in its sole discretion, retire J.H. Campbell 3, provided that Consumers continues to operate and make necessary improvements to the unit while the litigation concerning Wolverine Power’s claim for damages is pending. In May 2023, the circuit court judge issued an order granting Consumers’ motion for clarification confirming that Consumers may continue to operate and invest in J.H. Campbell 3 consistent with the May 2025 retirement date. In March 2024, the circuit court judge issued an order denying Wolverine Power’s motion for partial summary disposition and granting in part and denying in part Consumers’ motion for summary disposition. The judge granted Consumers’ motion for summary disposition on Wolverine Power’s claim that Consumers acted in bad faith in deciding to retire J.H. Campbell 3 early, finding no evidence to support that claim. The judge held that Wolverine Power did identify a genuine issue of material fact as to whether Consumers breached the joint ownership and operating agreement by failing to notify and consult with Wolverine Power regarding the unit’s early retirement. Consumers believes Wolverine Power’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 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, 2024, Consumers had a recorded liability of $62 million for its remaining obligations for these sites. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2024 and in each of the next five years: In Millions 2024 2025 2026 2027 2028 2029 Consumers Remediation and other response activity costs $ 2 $ 1 $ 7 $ 10 $ 25 $ 7 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, 2024, Consumers had a regulatory asset of $97 million related to the MGP sites. Guarantees Presented in the following table are CMS Energy’s and Consumers’ guarantees at March 31, 2024: 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 $ 294 $ — Indemnity obligations from stock and asset sale agreements 2 various indefinite 153 1 Guarantee 3 2011 indefinite 30 — Consumers Guarantee 3 2011 indefinite $ 30 $ — 1 These obligations arose from the sale of membership interests in Aviator Wind, Newport Solar Holdings, and NWO Holdco 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 Aviator Wind, Newport Solar Holdings, and NWO Holdco, 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. 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, 2024 | |
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, 2024: Principal Interest Rate (%) Issuance Date Maturity Date Consumers First Mortgage Bonds $ 600 4.600 January 2024 May 2029 Total Consumers $ 600 Retirements: Presented in the following table is a summary of major long-term debt retirements during the three months ended March 31, 2024: Principal Interest Rate (%) Retirement Date Maturity Date CMS Energy, parent only Senior Notes $ 250 3.875 January 2024 March 2024 CMS Energy, parent only $ 250 CMS Energy’s Purchase of Consumers’ First Mortgage Bonds: During the three months ended March 31, 2024, CMS Energy purchased Consumers’ first mortgage bonds with a principal balance of $91 million in exchange for cash of $69 million. On a consolidated basis, CMS Energy’s repurchase of Consumers’ first mortgage bonds was accounted for as a debt extinguishment and resulted in a pre-tax gain of $22 million. Credit Facilities: The following credit facilities with banks were available at March 31, 2024: In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only December 14, 2027 1 $ 550 $ — $ 29 $ 521 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, 2025 250 — 53 197 1 There were no borrowings under this facility during the three months ended March 31, 2024. 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, 2024. Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Its current authorization ends on March 31, 2025. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. In March 2024, Consumers filed an application for authority to issue securities between May 1, 2024 and April 30, 2026. 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, 2024, there were no commercial paper notes outstanding under this program. In December 2023, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million at an interest rate of the prior month’s average one-month Term SOFR minus 0.100 percent. At March 31, 2024, there were no outstanding borrowings under the agreement. Dividend Restrictions: At March 31, 2024, payment of dividends by CMS Energy on its common stock was limited to $7.7 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at March 31, 2024, Consumers had $2.1 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, 2024, Consumers paid $265 million in dividends on its common stock to CMS Energy. Issuance of Common Stock: In 2023, CMS Energy entered into an equity offering program under which it may sell shares of its common stock having an aggregate sales price of up to $1 billion in privately negotiated transactions, in “at the market” offerings, or through forward sales transactions. There have been no sales of securities under this program. In January 2024, CMS Energy settled the remaining forward sale contracts issued under its previous equity offering program by issuing shares at a weighted average price of $70.31 p er share, resulting in net proceeds o f $266 million. |
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, 2024: Principal Interest Rate (%) Issuance Date Maturity Date Consumers First Mortgage Bonds $ 600 4.600 January 2024 May 2029 Total Consumers $ 600 Retirements: Presented in the following table is a summary of major long-term debt retirements during the three months ended March 31, 2024: Principal Interest Rate (%) Retirement Date Maturity Date CMS Energy, parent only Senior Notes $ 250 3.875 January 2024 March 2024 CMS Energy, parent only $ 250 CMS Energy’s Purchase of Consumers’ First Mortgage Bonds: During the three months ended March 31, 2024, CMS Energy purchased Consumers’ first mortgage bonds with a principal balance of $91 million in exchange for cash of $69 million. On a consolidated basis, CMS Energy’s repurchase of Consumers’ first mortgage bonds was accounted for as a debt extinguishment and resulted in a pre-tax gain of $22 million. Credit Facilities: The following credit facilities with banks were available at March 31, 2024: In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only December 14, 2027 1 $ 550 $ — $ 29 $ 521 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, 2025 250 — 53 197 1 There were no borrowings under this facility during the three months ended March 31, 2024. 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, 2024. Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Its current authorization ends on March 31, 2025. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. In March 2024, Consumers filed an application for authority to issue securities between May 1, 2024 and April 30, 2026. 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, 2024, there were no commercial paper notes outstanding under this program. In December 2023, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million at an interest rate of the prior month’s average one-month Term SOFR minus 0.100 percent. At March 31, 2024, there were no outstanding borrowings under the agreement. Dividend Restrictions: At March 31, 2024, payment of dividends by CMS Energy on its common stock was limited to $7.7 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at March 31, 2024, Consumers had $2.1 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, 2024, Consumers paid $265 million in dividends on its common stock to CMS Energy. Issuance of Common Stock: In 2023, CMS Energy entered into an equity offering program under which it may sell shares of its common stock having an aggregate sales price of up to $1 billion in privately negotiated transactions, in “at the market” offerings, or through forward sales transactions. There have been no sales of securities under this program. In January 2024, CMS Energy settled the remaining forward sale contracts issued under its previous equity offering program by issuing shares at a weighted average price of $70.31 p er share, resulting in net proceeds o f $266 million. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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 $ 264 $ 18 $ 198 $ — Restricted cash equivalents 59 21 59 21 Nonqualified deferred compensation plan assets 31 30 23 22 Derivative instruments 1 2 1 2 Total assets $ 355 $ 71 $ 281 $ 45 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 31 $ 30 $ 23 $ 22 Total liabilities $ 31 $ 30 $ 23 $ 22 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 bought and sold only at the discretion of plan participants.The assets 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 $ 264 $ 18 $ 198 $ — Restricted cash equivalents 59 21 59 21 Nonqualified deferred compensation plan assets 31 30 23 22 Derivative instruments 1 2 1 2 Total assets $ 355 $ 71 $ 281 $ 45 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 31 $ 30 $ 23 $ 22 Total liabilities $ 31 $ 30 $ 23 $ 22 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 bought and sold only at the discretion of plan participants.The assets 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, 2024 | |
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, 2024 December 31, 2023 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 $ 10 $ 10 $ — $ — $ 10 $ 11 $ 11 $ — $ — $ 11 Liabilities Long-term debt 2 15,740 14,337 1,092 11,261 1,984 15,483 14,305 1,103 11,186 2,016 Long-term payables 3 11 11 — — 11 11 11 — — 11 Consumers Assets Long-term receivables 1 $ 10 $ 10 $ — $ — $ 10 $ 11 $ 11 $ — $ — $ 11 Notes receivable – related party 4 97 97 — — 97 97 97 — — 97 Liabilities Long-term debt 5 11,268 10,045 — 8,061 1,984 10,762 9,757 — 7,741 2,016 Long-term debt – related party 515 355 — 355 — 424 303 — 303 — Long-term payables 5 5 — — 5 5 5 — — 5 1 Includes current portion of long-term accounts receivable and notes receivable of $5 million at March 31, 2024 and $6 million at December 31, 2023. 2 Includes current portion of long-term debt of $767 million at March 31, 2024 and $975 million at December 31, 2023. 3 Includes current portion of long-term payables of $1 million at March 31, 2024. 4 Includes current portion of notes receivable – related party of $7 million at March 31, 2024 and December 31, 2023. 5 Includes current portion of long-term debt of $767 million at March 31, 2024 and $725 million at December 31, 2023. Notes receivable – related party represents Consumers’ portion of the DB SERP 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, 2024 December 31, 2023 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 $ 10 $ 10 $ — $ — $ 10 $ 11 $ 11 $ — $ — $ 11 Liabilities Long-term debt 2 15,740 14,337 1,092 11,261 1,984 15,483 14,305 1,103 11,186 2,016 Long-term payables 3 11 11 — — 11 11 11 — — 11 Consumers Assets Long-term receivables 1 $ 10 $ 10 $ — $ — $ 10 $ 11 $ 11 $ — $ — $ 11 Notes receivable – related party 4 97 97 — — 97 97 97 — — 97 Liabilities Long-term debt 5 11,268 10,045 — 8,061 1,984 10,762 9,757 — 7,741 2,016 Long-term debt – related party 515 355 — 355 — 424 303 — 303 — Long-term payables 5 5 — — 5 5 5 — — 5 1 Includes current portion of long-term accounts receivable and notes receivable of $5 million at March 31, 2024 and $6 million at December 31, 2023. 2 Includes current portion of long-term debt of $767 million at March 31, 2024 and $975 million at December 31, 2023. 3 Includes current portion of long-term payables of $1 million at March 31, 2024. 4 Includes current portion of notes receivable – related party of $7 million at March 31, 2024 and December 31, 2023. 5 Includes current portion of long-term debt of $767 million at March 31, 2024 and $725 million at December 31, 2023. Notes receivable – related party represents Consumers’ portion of the DB SERP 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, 2024 | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement Benefits | Retirement Benefits CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. 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 2024 2023 2024 2023 CMS Energy, including Consumers Net periodic credit Service cost $ 7 $ 7 $ 3 $ 3 Interest cost 26 27 11 11 Expected return on plan assets (59) (55) (29) (26) Amortization of: Net loss 3 3 1 3 Prior service cost (credit) 1 1 (8) (10) Settlement loss 3 2 — — Net periodic credit $ (19) $ (15) $ (22) $ (19) Consumers Net periodic credit Service cost $ 7 $ 7 $ 3 $ 3 Interest cost 24 25 10 11 Expected return on plan assets (55) (52) (27) (24) Amortization of: Net loss 3 3 1 3 Prior service cost (credit) 1 1 (7) (10) Settlement loss 3 2 — — Net periodic credit $ (17) $ (14) $ (20) $ (17) In Consumers’ electric and gas rate cases, 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. The regulatory deferral will be collected from or refunded to customers over ten years. At March 31, 2024, CMS Energy, including Consumers, had deferred $5 million of pension credits and less than $1 million of OPEB costs under this mechanism related to 2024 expense. |
Consumers Energy Company | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement Benefits | Retirement Benefits CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. 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 2024 2023 2024 2023 CMS Energy, including Consumers Net periodic credit Service cost $ 7 $ 7 $ 3 $ 3 Interest cost 26 27 11 11 Expected return on plan assets (59) (55) (29) (26) Amortization of: Net loss 3 3 1 3 Prior service cost (credit) 1 1 (8) (10) Settlement loss 3 2 — — Net periodic credit $ (19) $ (15) $ (22) $ (19) Consumers Net periodic credit Service cost $ 7 $ 7 $ 3 $ 3 Interest cost 24 25 10 11 Expected return on plan assets (55) (52) (27) (24) Amortization of: Net loss 3 3 1 3 Prior service cost (credit) 1 1 (7) (10) Settlement loss 3 2 — — Net periodic credit $ (17) $ (14) $ (20) $ (17) In Consumers’ electric and gas rate cases, 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. The regulatory deferral will be collected from or refunded to customers over ten years. At March 31, 2024, CMS Energy, including Consumers, had deferred $5 million of pension credits and less than $1 million of OPEB costs under this mechanism related to 2024 expense. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 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 5.5 (0.5) Renewable energy tax credits (6.0) (4.9) TCJA excess deferred taxes (3.7) (3.7) Taxes attributable to noncontrolling interests 1.1 0.7 Other, net 0.2 0.4 Effective tax rate 18.1 % 13.0 % 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 4.9 — Renewable energy tax credits (4.0) (4.2) TCJA excess deferred taxes (3.2) (3.2) Other, net 0.2 0.5 Effective tax rate 18.9 % 14.1 % 1 CMS Energy initiated a plan to divest immaterial business activities in a non ‑ Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction. As a result of these actions, in the first quarter of 2023, CMS Energy reversed a $13 million non ‑ Michigan reserve, all of which was recognized at Consumers. |
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 2024 2023 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 5.5 (0.5) Renewable energy tax credits (6.0) (4.9) TCJA excess deferred taxes (3.7) (3.7) Taxes attributable to noncontrolling interests 1.1 0.7 Other, net 0.2 0.4 Effective tax rate 18.1 % 13.0 % 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 4.9 — Renewable energy tax credits (4.0) (4.2) TCJA excess deferred taxes (3.2) (3.2) Other, net 0.2 0.5 Effective tax rate 18.9 % 14.1 % 1 CMS Energy initiated a plan to divest immaterial business activities in a non ‑ Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction. As a result of these actions, in the first quarter of 2023, CMS Energy reversed a $13 million non ‑ Michigan reserve, all of which was recognized at Consumers. |
Earnings Per Share - CMS Energy
Earnings Per Share - CMS Energy | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 Income available to common stockholders Income from continuing operations $ 263 $ 194 Less loss attributable to noncontrolling interests (24) (10) Less preferred stock dividends 2 2 Income from continuing operations available to common stockholders – basic and diluted $ 285 $ 202 Average common shares outstanding Weighted-average shares – basic 296.5 290.7 Add dilutive nonvested stock awards 0.7 0.5 Weighted-average shares – diluted 297.2 291.2 Income from continuing operations per average common share available to common stockholders Basic $ 0.96 $ 0.69 Diluted 0.96 0.69 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 In January 2024, CMS Energy settled the remaining forward sale contracts issued under its previous equity offering program. These forward equity sale contracts were non‑participating securities. While the forward sale price in the forward equity sale contract was 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 did 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. The forward equity sale contracts were anti-dilutive for the three months ended March 31, 2024. For further details on the forward equity sale contracts, see Note 3, Financings and Capitalization. Convertible Securities |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Disaggregation of Revenue [Line Items] | |
Revenue | Revenue Presented in the following tables are the components of operating revenue: In Millions Three Months Ended March 31, 2024 Electric Utility Gas Utility NorthStar Clean Energy 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,129 $ 963 $ — $ 2,092 Other — — 52 52 Revenue recognized from contracts with customers $ 1,129 $ 963 $ 52 $ 2,144 Leasing income — — 27 27 Financing income 2 2 — 4 Consumers alternative-revenue programs 1 — — 1 Total operating revenue – CMS Energy $ 1,132 $ 965 $ 79 $ 2,176 Consumers Consumers utility revenue Residential $ 525 $ 665 $ 1,190 Commercial 360 207 567 Industrial 156 24 180 Other 88 67 155 Revenue recognized from contracts with customers $ 1,129 $ 963 $ 2,092 Financing income 2 2 4 Alternative-revenue programs 1 — 1 Total operating revenue – Consumers $ 1,132 $ 965 $ 2,097 1 Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. Certain of NorthStar Clean Energy’s power sales agreements 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 $16 million for the three months ended March 31, 2024. 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. Certain of NorthStar Clean Energy’s power sales agreements 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. 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 $10 million for the three months ended March 31, 2024 and $9 million for the three months ended March 31, 2023 . 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 $472 million at March 31, 2024 and $494 million at December 31, 2023. Alternative ‑ revenue Program: Consumers accounts for its financial compensation mechanism as an alternative-revenue program. Consumers recognizes revenue related to the financial compensation mechanism as payments are made on MPSC-approved PPAs. Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers. |
Consumers Energy Company | |
Disaggregation of Revenue [Line Items] | |
Revenue | Revenue Presented in the following tables are the components of operating revenue: In Millions Three Months Ended March 31, 2024 Electric Utility Gas Utility NorthStar Clean Energy 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,129 $ 963 $ — $ 2,092 Other — — 52 52 Revenue recognized from contracts with customers $ 1,129 $ 963 $ 52 $ 2,144 Leasing income — — 27 27 Financing income 2 2 — 4 Consumers alternative-revenue programs 1 — — 1 Total operating revenue – CMS Energy $ 1,132 $ 965 $ 79 $ 2,176 Consumers Consumers utility revenue Residential $ 525 $ 665 $ 1,190 Commercial 360 207 567 Industrial 156 24 180 Other 88 67 155 Revenue recognized from contracts with customers $ 1,129 $ 963 $ 2,092 Financing income 2 2 4 Alternative-revenue programs 1 — 1 Total operating revenue – Consumers $ 1,132 $ 965 $ 2,097 1 Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. Certain of NorthStar Clean Energy’s power sales agreements 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 $16 million for the three months ended March 31, 2024. 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. Certain of NorthStar Clean Energy’s power sales agreements 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. 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 $10 million for the three months ended March 31, 2024 and $9 million for the three months ended March 31, 2023 . 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 $472 million at March 31, 2024 and $494 million at December 31, 2023. Alternative ‑ revenue Program: Consumers accounts for its financial compensation mechanism as an alternative-revenue program. Consumers recognizes revenue related to the financial compensation mechanism as payments are made on MPSC-approved PPAs. Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting Information [Line Items] | |
Reportable Segments | Reportable Segments Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders. CMS Energy The segments reported for CMS Energy are: • electric utility, consisting of regulated activities associated with the generation, purchase, 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 2024 2023 CMS Energy, including Consumers Operating revenue Electric utility $ 1,132 $ 1,091 Gas utility 965 1,119 NorthStar Clean Energy 79 74 Total operating revenue – CMS Energy $ 2,176 $ 2,284 Consumers Operating revenue Electric utility $ 1,132 $ 1,091 Gas utility 965 1,119 Other reconciling items — — Total operating revenue – Consumers $ 2,097 $ 2,210 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 97 $ 70 Gas utility 169 154 NorthStar Clean Energy 31 7 Other reconciling items (12) (29) Total net income available to common stockholders – CMS Energy $ 285 $ 202 Consumers Net income available to common stockholder Electric utility $ 97 $ 70 Gas utility 169 154 Other reconciling items 9 8 Total net income available to common stockholder – Consumers $ 275 $ 232 In Millions March 31, 2024 December 31, 2023 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 19,317 $ 19,302 Gas utility 1 12,475 12,383 NorthStar Clean Energy 1,424 1,420 Other reconciling items 20 30 Total plant, property, and equipment, gross – CMS Energy $ 33,236 $ 33,135 Consumers Plant, property, and equipment, gross Electric utility 1 $ 19,317 $ 19,302 Gas utility 1 12,475 12,383 Other reconciling items 28 38 Total plant, property, and equipment, gross – Consumers $ 31,820 $ 31,723 CMS Energy, including Consumers Total assets Electric utility 1 $ 19,759 $ 19,358 Gas utility 1 12,305 12,353 NorthStar Clean Energy 1,615 1,604 Other reconciling items 222 202 Total assets – CMS Energy $ 33,901 $ 33,517 Consumers Total assets Electric utility 1 $ 19,818 $ 19,417 Gas utility 1 12,348 12,397 Other reconciling items 43 38 Total assets – Consumers $ 32,209 $ 31,852 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. |
Consumers Energy Company | |
Segment Reporting Information [Line Items] | |
Reportable Segments | Reportable Segments Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders. CMS Energy The segments reported for CMS Energy are: • electric utility, consisting of regulated activities associated with the generation, purchase, 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 2024 2023 CMS Energy, including Consumers Operating revenue Electric utility $ 1,132 $ 1,091 Gas utility 965 1,119 NorthStar Clean Energy 79 74 Total operating revenue – CMS Energy $ 2,176 $ 2,284 Consumers Operating revenue Electric utility $ 1,132 $ 1,091 Gas utility 965 1,119 Other reconciling items — — Total operating revenue – Consumers $ 2,097 $ 2,210 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 97 $ 70 Gas utility 169 154 NorthStar Clean Energy 31 7 Other reconciling items (12) (29) Total net income available to common stockholders – CMS Energy $ 285 $ 202 Consumers Net income available to common stockholder Electric utility $ 97 $ 70 Gas utility 169 154 Other reconciling items 9 8 Total net income available to common stockholder – Consumers $ 275 $ 232 In Millions March 31, 2024 December 31, 2023 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 19,317 $ 19,302 Gas utility 1 12,475 12,383 NorthStar Clean Energy 1,424 1,420 Other reconciling items 20 30 Total plant, property, and equipment, gross – CMS Energy $ 33,236 $ 33,135 Consumers Plant, property, and equipment, gross Electric utility 1 $ 19,317 $ 19,302 Gas utility 1 12,475 12,383 Other reconciling items 28 38 Total plant, property, and equipment, gross – Consumers $ 31,820 $ 31,723 CMS Energy, including Consumers Total assets Electric utility 1 $ 19,759 $ 19,358 Gas utility 1 12,305 12,353 NorthStar Clean Energy 1,615 1,604 Other reconciling items 222 202 Total assets – CMS Energy $ 33,901 $ 33,517 Consumers Total assets Electric utility 1 $ 19,818 $ 19,417 Gas utility 1 12,348 12,397 Other reconciling items 43 38 Total assets – Consumers $ 32,209 $ 31,852 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, 2024 | |
Variable Interest Entity [Line Items] | |
Variable Interest Entities | Variable Interest Entities Consolidated VIEs: NorthStar Clean Energy consolidates certain entities that it does not wholly own, but for which it manages and controls the entities’ operating activities. NorthStar Clean Energy is the primary beneficiary of these entities because 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. Presented in the following table is information about the VIEs NorthStar Clean Energy consolidates: Consolidated VIE NorthStar Clean Energy’s ownership interest Description of VIE Aviator Wind Equity Holdings 51-percent ownership interest 1 Holds a Class B membership interest in Aviator Wind Aviator Wind Class B membership interest 2 Holding company of a 525-MW wind generation project in Coke County, Texas Newport Solar Holdings Class B membership interest 2 Holding company of a 180-MW solar generation project in Jackson County, Arkansas NWO Holdco Class B membership interest 2 Holding company of a 100-MW wind generation project in Paulding County, Ohio 1 The remaining 49-percent interest is presented as noncontrolling interest on CMS Energy’s consolidated balance sheets. 2 The Class A membership interest in the entity is held by a tax equity investor and is presented as noncontrolling interest on CMS Energy’s consolidated balance sheets. Under the associated limited liability company agreement, the tax equity investor is guaranteed preferred returns from the entity . Earnings, tax attributes, and cash flows generated by the entities in which NorthStar Clean Energy holds a Class B membership 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 these entities’ 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. 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, 2024 December 31, 2023 Current Cash and cash equivalents $ 24 $ 28 Accounts receivable 5 3 Prepayments and other current assets 5 4 Non-current Plant, property, and equipment, net 1,055 1,064 Other non-current assets 3 3 Total assets 1 $ 1,092 $ 1,102 Current Accounts payable $ 5 $ 12 Non-current Non-current portion of finance leases 23 23 Asset retirement obligations 32 32 Total liabilities $ 60 $ 67 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. Consumers’ wholly-owned subsidiaries, Consumers 2014 Securitization Funding and Consumers 2023 Securitization Funding, are VIEs designed to collateralize Consumers’ securitization bonds. These entities are considered VIEs primarily because their equity capitalization is insufficient to support their operations. Consumers is the primary beneficiary of and consolidates these VIEs, 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. The VIEs’ primary assets and liabilities comprise regulatory assets and long-term debt. The carrying value of the regulatory assets were $750 million at March 31, 2024 and $778 million at December 31, 2023. The securitization bonds outstanding under the VIEs were $787 million at March 31, 2024 and December 31, 2023. Non-consolidated 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 $71 million at March 31, 2024 and $74 million at December 31, 2023. |
Consumers Energy Company | |
Variable Interest Entity [Line Items] | |
Variable Interest Entities | Variable Interest Entities Consolidated VIEs: NorthStar Clean Energy consolidates certain entities that it does not wholly own, but for which it manages and controls the entities’ operating activities. NorthStar Clean Energy is the primary beneficiary of these entities because 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. Presented in the following table is information about the VIEs NorthStar Clean Energy consolidates: Consolidated VIE NorthStar Clean Energy’s ownership interest Description of VIE Aviator Wind Equity Holdings 51-percent ownership interest 1 Holds a Class B membership interest in Aviator Wind Aviator Wind Class B membership interest 2 Holding company of a 525-MW wind generation project in Coke County, Texas Newport Solar Holdings Class B membership interest 2 Holding company of a 180-MW solar generation project in Jackson County, Arkansas NWO Holdco Class B membership interest 2 Holding company of a 100-MW wind generation project in Paulding County, Ohio 1 The remaining 49-percent interest is presented as noncontrolling interest on CMS Energy’s consolidated balance sheets. 2 The Class A membership interest in the entity is held by a tax equity investor and is presented as noncontrolling interest on CMS Energy’s consolidated balance sheets. Under the associated limited liability company agreement, the tax equity investor is guaranteed preferred returns from the entity . Earnings, tax attributes, and cash flows generated by the entities in which NorthStar Clean Energy holds a Class B membership 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 these entities’ 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. 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, 2024 December 31, 2023 Current Cash and cash equivalents $ 24 $ 28 Accounts receivable 5 3 Prepayments and other current assets 5 4 Non-current Plant, property, and equipment, net 1,055 1,064 Other non-current assets 3 3 Total assets 1 $ 1,092 $ 1,102 Current Accounts payable $ 5 $ 12 Non-current Non-current portion of finance leases 23 23 Asset retirement obligations 32 32 Total liabilities $ 60 $ 67 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. Consumers’ wholly-owned subsidiaries, Consumers 2014 Securitization Funding and Consumers 2023 Securitization Funding, are VIEs designed to collateralize Consumers’ securitization bonds. These entities are considered VIEs primarily because their equity capitalization is insufficient to support their operations. Consumers is the primary beneficiary of and consolidates these VIEs, 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. The VIEs’ primary assets and liabilities comprise regulatory assets and long-term debt. The carrying value of the regulatory assets were $750 million at March 31, 2024 and $778 million at December 31, 2023. The securitization bonds outstanding under the VIEs were $787 million at March 31, 2024 and December 31, 2023. Non-consolidated 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 $71 million at March 31, 2024 and $74 million at December 31, 2023. |
Exit Activities
Exit Activities | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring Cost and Reserve [Line Items] | |
Exit Activities | Exit Activities In accordance with its Clean Energy Plan, Consumers plans to retire the J.H. Campbell coal-fueled generating units in 2025. In order to ensure necessary staffing at J.H. Campbell through retirement, Consumers has implemented a retention incentive program. 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; these expenses are deferred as a regulatory asset. As of March 31, 2024, the cumulative cost incurred and deferred as a regulatory asset related to the J.H. Campbell retention incentive program was $38 million. The regulatory asset will be collected from customers over three years. 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 2024 2023 1 Retention benefit liability at beginning of period $ 16 $ 21 Costs deferred as a regulatory asset 3 5 Retention benefit liability at the end of the period 2 $ 19 $ 26 1 Includes amounts associated with a retention incentive program at the D.E. Karn coal-fueled generating units; this program concluded following the units’ retirement in June 2023. 2 Includes current portion of other liabilities of $8 million at March 31, 2024 and $16 million at March 31, 2023. |
Consumers Energy Company | |
Restructuring Cost and Reserve [Line Items] | |
Exit Activities | Exit Activities In accordance with its Clean Energy Plan, Consumers plans to retire the J.H. Campbell coal-fueled generating units in 2025. In order to ensure necessary staffing at J.H. Campbell through retirement, Consumers has implemented a retention incentive program. 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; these expenses are deferred as a regulatory asset. As of March 31, 2024, the cumulative cost incurred and deferred as a regulatory asset related to the J.H. Campbell retention incentive program was $38 million. The regulatory asset will be collected from customers over three years. 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 2024 2023 1 Retention benefit liability at beginning of period $ 16 $ 21 Costs deferred as a regulatory asset 3 5 Retention benefit liability at the end of the period 2 $ 19 $ 26 1 Includes amounts associated with a retention incentive program at the D.E. Karn coal-fueled generating units; this program concluded following the units’ retirement in June 2023. 2 Includes current portion of other liabilities of $8 million at March 31, 2024 and $16 million at March 31, 2023. |
Regulated Operations (Policies)
Regulated Operations (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Public Utility, Property, Plant and Equipment [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 In January 2024, CMS Energy settled the remaining forward sale contracts issued under its previous equity offering program. These forward equity sale contracts were non‑participating securities. While the forward sale price in the forward equity sale contract was 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 did 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. The forward equity sale contracts were anti-dilutive for the three months ended March 31, 2024. For further details on the forward equity sale contracts, see Note 3, Financings and Capitalization. Convertible Securities |
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 | 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 | |
Public Utility, Property, Plant and Equipment [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, 2024 | |
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 2024 and in each of the next five years: In Millions 2024 2025 2026 2027 2028 2029 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, 2024: 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 $ 294 $ — Indemnity obligations from stock and asset sale agreements 2 various indefinite 153 1 Guarantee 3 2011 indefinite 30 — Consumers Guarantee 3 2011 indefinite $ 30 $ — 1 These obligations arose from the sale of membership interests in Aviator Wind, Newport Solar Holdings, and NWO Holdco 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 Aviator Wind, Newport Solar Holdings, and NWO Holdco, 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. 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 2024 and in each of the next five years: In Millions 2024 2025 2026 2027 2028 2029 Consumers Remediation and other response activity costs $ 2 $ 1 $ 7 $ 10 $ 25 $ 7 |
Summary of Guarantees | Presented in the following table are CMS Energy’s and Consumers’ guarantees at March 31, 2024: 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 $ 294 $ — Indemnity obligations from stock and asset sale agreements 2 various indefinite 153 1 Guarantee 3 2011 indefinite 30 — Consumers Guarantee 3 2011 indefinite $ 30 $ — 1 These obligations arose from the sale of membership interests in Aviator Wind, Newport Solar Holdings, and NWO Holdco 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 Aviator Wind, Newport Solar Holdings, and NWO Holdco, 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. 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, 2024 | |
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, 2024: Principal Interest Rate (%) Issuance Date Maturity Date Consumers First Mortgage Bonds $ 600 4.600 January 2024 May 2029 Total Consumers $ 600 Presented in the following table is a summary of major long-term debt retirements during the three months ended March 31, 2024: Principal Interest Rate (%) Retirement Date Maturity Date CMS Energy, parent only Senior Notes $ 250 3.875 January 2024 March 2024 CMS Energy, parent only $ 250 |
Schedule of Revolving Credit Facilities | The following credit facilities with banks were available at March 31, 2024: In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only December 14, 2027 1 $ 550 $ — $ 29 $ 521 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, 2025 250 — 53 197 1 There were no borrowings under this facility during the three months ended March 31, 2024. 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, 2024. |
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, 2024: Principal Interest Rate (%) Issuance Date Maturity Date Consumers First Mortgage Bonds $ 600 4.600 January 2024 May 2029 Total Consumers $ 600 |
Schedule of Revolving Credit Facilities | The following credit facilities with banks were available at March 31, 2024: In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only December 14, 2027 1 $ 550 $ — $ 29 $ 521 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, 2025 250 — 53 197 1 There were no borrowings under this facility during the three months ended March 31, 2024. 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, 2024. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Summary of 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 $ 264 $ 18 $ 198 $ — Restricted cash equivalents 59 21 59 21 Nonqualified deferred compensation plan assets 31 30 23 22 Derivative instruments 1 2 1 2 Total assets $ 355 $ 71 $ 281 $ 45 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 31 $ 30 $ 23 $ 22 Total liabilities $ 31 $ 30 $ 23 $ 22 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] | |
Summary of 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 $ 264 $ 18 $ 198 $ — Restricted cash equivalents 59 21 59 21 Nonqualified deferred compensation plan assets 31 30 23 22 Derivative instruments 1 2 1 2 Total assets $ 355 $ 71 $ 281 $ 45 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 31 $ 30 $ 23 $ 22 Total liabilities $ 31 $ 30 $ 23 $ 22 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, 2024 | |
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, 2024 December 31, 2023 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 $ 10 $ 10 $ — $ — $ 10 $ 11 $ 11 $ — $ — $ 11 Liabilities Long-term debt 2 15,740 14,337 1,092 11,261 1,984 15,483 14,305 1,103 11,186 2,016 Long-term payables 3 11 11 — — 11 11 11 — — 11 Consumers Assets Long-term receivables 1 $ 10 $ 10 $ — $ — $ 10 $ 11 $ 11 $ — $ — $ 11 Notes receivable – related party 4 97 97 — — 97 97 97 — — 97 Liabilities Long-term debt 5 11,268 10,045 — 8,061 1,984 10,762 9,757 — 7,741 2,016 Long-term debt – related party 515 355 — 355 — 424 303 — 303 — Long-term payables 5 5 — — 5 5 5 — — 5 1 Includes current portion of long-term accounts receivable and notes receivable of $5 million at March 31, 2024 and $6 million at December 31, 2023. 2 Includes current portion of long-term debt of $767 million at March 31, 2024 and $975 million at December 31, 2023. 3 Includes current portion of long-term payables of $1 million at March 31, 2024. 4 Includes current portion of notes receivable – related party of $7 million at March 31, 2024 and December 31, 2023. 5 Includes current portion of long-term debt of $767 million at March 31, 2024 and $725 million at December 31, 2023. |
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, 2024 December 31, 2023 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 $ 10 $ 10 $ — $ — $ 10 $ 11 $ 11 $ — $ — $ 11 Liabilities Long-term debt 2 15,740 14,337 1,092 11,261 1,984 15,483 14,305 1,103 11,186 2,016 Long-term payables 3 11 11 — — 11 11 11 — — 11 Consumers Assets Long-term receivables 1 $ 10 $ 10 $ — $ — $ 10 $ 11 $ 11 $ — $ — $ 11 Notes receivable – related party 4 97 97 — — 97 97 97 — — 97 Liabilities Long-term debt 5 11,268 10,045 — 8,061 1,984 10,762 9,757 — 7,741 2,016 Long-term debt – related party 515 355 — 355 — 424 303 — 303 — Long-term payables 5 5 — — 5 5 5 — — 5 1 Includes current portion of long-term accounts receivable and notes receivable of $5 million at March 31, 2024 and $6 million at December 31, 2023. 2 Includes current portion of long-term debt of $767 million at March 31, 2024 and $975 million at December 31, 2023. 3 Includes current portion of long-term payables of $1 million at March 31, 2024. 4 Includes current portion of notes receivable – related party of $7 million at March 31, 2024 and December 31, 2023. 5 Includes current portion of long-term debt of $767 million at March 31, 2024 and $725 million at December 31, 2023. |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 2024 2023 CMS Energy, including Consumers Net periodic credit Service cost $ 7 $ 7 $ 3 $ 3 Interest cost 26 27 11 11 Expected return on plan assets (59) (55) (29) (26) Amortization of: Net loss 3 3 1 3 Prior service cost (credit) 1 1 (8) (10) Settlement loss 3 2 — — Net periodic credit $ (19) $ (15) $ (22) $ (19) Consumers Net periodic credit Service cost $ 7 $ 7 $ 3 $ 3 Interest cost 24 25 10 11 Expected return on plan assets (55) (52) (27) (24) Amortization of: Net loss 3 3 1 3 Prior service cost (credit) 1 1 (7) (10) Settlement loss 3 2 — — Net periodic credit $ (17) $ (14) $ (20) $ (17) |
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 2024 2023 2024 2023 CMS Energy, including Consumers Net periodic credit Service cost $ 7 $ 7 $ 3 $ 3 Interest cost 26 27 11 11 Expected return on plan assets (59) (55) (29) (26) Amortization of: Net loss 3 3 1 3 Prior service cost (credit) 1 1 (8) (10) Settlement loss 3 2 — — Net periodic credit $ (19) $ (15) $ (22) $ (19) Consumers Net periodic credit Service cost $ 7 $ 7 $ 3 $ 3 Interest cost 24 25 10 11 Expected return on plan assets (55) (52) (27) (24) Amortization of: Net loss 3 3 1 3 Prior service cost (credit) 1 1 (7) (10) Settlement loss 3 2 — — Net periodic credit $ (17) $ (14) $ (20) $ (17) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 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 5.5 (0.5) Renewable energy tax credits (6.0) (4.9) TCJA excess deferred taxes (3.7) (3.7) Taxes attributable to noncontrolling interests 1.1 0.7 Other, net 0.2 0.4 Effective tax rate 18.1 % 13.0 % 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 4.9 — Renewable energy tax credits (4.0) (4.2) TCJA excess deferred taxes (3.2) (3.2) Other, net 0.2 0.5 Effective tax rate 18.9 % 14.1 % 1 CMS Energy initiated a plan to divest immaterial business activities in a non ‑ Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction. As a result of these actions, in the first quarter of 2023, CMS Energy reversed a $13 million non ‑ Michigan reserve, all of which was recognized at Consumers. |
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 2024 2023 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 5.5 (0.5) Renewable energy tax credits (6.0) (4.9) TCJA excess deferred taxes (3.7) (3.7) Taxes attributable to noncontrolling interests 1.1 0.7 Other, net 0.2 0.4 Effective tax rate 18.1 % 13.0 % 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 4.9 — Renewable energy tax credits (4.0) (4.2) TCJA excess deferred taxes (3.2) (3.2) Other, net 0.2 0.5 Effective tax rate 18.9 % 14.1 % 1 CMS Energy initiated a plan to divest immaterial business activities in a non ‑ Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction. As a result of these actions, in the first quarter of 2023, CMS Energy reversed a $13 million non ‑ Michigan reserve, all of which was recognized at Consumers. |
Earnings Per Share - CMS Ener_2
Earnings Per Share - CMS Energy (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Summary of 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 2024 2023 Income available to common stockholders Income from continuing operations $ 263 $ 194 Less loss attributable to noncontrolling interests (24) (10) Less preferred stock dividends 2 2 Income from continuing operations available to common stockholders – basic and diluted $ 285 $ 202 Average common shares outstanding Weighted-average shares – basic 296.5 290.7 Add dilutive nonvested stock awards 0.7 0.5 Weighted-average shares – diluted 297.2 291.2 Income from continuing operations per average common share available to common stockholders Basic $ 0.96 $ 0.69 Diluted 0.96 0.69 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 Electric Utility Gas Utility NorthStar Clean Energy 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,129 $ 963 $ — $ 2,092 Other — — 52 52 Revenue recognized from contracts with customers $ 1,129 $ 963 $ 52 $ 2,144 Leasing income — — 27 27 Financing income 2 2 — 4 Consumers alternative-revenue programs 1 — — 1 Total operating revenue – CMS Energy $ 1,132 $ 965 $ 79 $ 2,176 Consumers Consumers utility revenue Residential $ 525 $ 665 $ 1,190 Commercial 360 207 567 Industrial 156 24 180 Other 88 67 155 Revenue recognized from contracts with customers $ 1,129 $ 963 $ 2,092 Financing income 2 2 4 Alternative-revenue programs 1 — 1 Total operating revenue – Consumers $ 1,132 $ 965 $ 2,097 1 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. Certain of NorthStar Clean Energy’s power sales agreements 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. |
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, 2024 Electric Utility Gas Utility NorthStar Clean Energy 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,129 $ 963 $ — $ 2,092 Other — — 52 52 Revenue recognized from contracts with customers $ 1,129 $ 963 $ 52 $ 2,144 Leasing income — — 27 27 Financing income 2 2 — 4 Consumers alternative-revenue programs 1 — — 1 Total operating revenue – CMS Energy $ 1,132 $ 965 $ 79 $ 2,176 Consumers Consumers utility revenue Residential $ 525 $ 665 $ 1,190 Commercial 360 207 567 Industrial 156 24 180 Other 88 67 155 Revenue recognized from contracts with customers $ 1,129 $ 963 $ 2,092 Financing income 2 2 4 Alternative-revenue programs 1 — 1 Total operating revenue – Consumers $ 1,132 $ 965 $ 2,097 1 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. Certain of NorthStar Clean Energy’s power sales agreements 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. |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 CMS Energy, including Consumers Operating revenue Electric utility $ 1,132 $ 1,091 Gas utility 965 1,119 NorthStar Clean Energy 79 74 Total operating revenue – CMS Energy $ 2,176 $ 2,284 Consumers Operating revenue Electric utility $ 1,132 $ 1,091 Gas utility 965 1,119 Other reconciling items — — Total operating revenue – Consumers $ 2,097 $ 2,210 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 97 $ 70 Gas utility 169 154 NorthStar Clean Energy 31 7 Other reconciling items (12) (29) Total net income available to common stockholders – CMS Energy $ 285 $ 202 Consumers Net income available to common stockholder Electric utility $ 97 $ 70 Gas utility 169 154 Other reconciling items 9 8 Total net income available to common stockholder – Consumers $ 275 $ 232 In Millions March 31, 2024 December 31, 2023 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 19,317 $ 19,302 Gas utility 1 12,475 12,383 NorthStar Clean Energy 1,424 1,420 Other reconciling items 20 30 Total plant, property, and equipment, gross – CMS Energy $ 33,236 $ 33,135 Consumers Plant, property, and equipment, gross Electric utility 1 $ 19,317 $ 19,302 Gas utility 1 12,475 12,383 Other reconciling items 28 38 Total plant, property, and equipment, gross – Consumers $ 31,820 $ 31,723 CMS Energy, including Consumers Total assets Electric utility 1 $ 19,759 $ 19,358 Gas utility 1 12,305 12,353 NorthStar Clean Energy 1,615 1,604 Other reconciling items 222 202 Total assets – CMS Energy $ 33,901 $ 33,517 Consumers Total assets Electric utility 1 $ 19,818 $ 19,417 Gas utility 1 12,348 12,397 Other reconciling items 43 38 Total assets – Consumers $ 32,209 $ 31,852 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 2024 2023 CMS Energy, including Consumers Operating revenue Electric utility $ 1,132 $ 1,091 Gas utility 965 1,119 NorthStar Clean Energy 79 74 Total operating revenue – CMS Energy $ 2,176 $ 2,284 Consumers Operating revenue Electric utility $ 1,132 $ 1,091 Gas utility 965 1,119 Other reconciling items — — Total operating revenue – Consumers $ 2,097 $ 2,210 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 97 $ 70 Gas utility 169 154 NorthStar Clean Energy 31 7 Other reconciling items (12) (29) Total net income available to common stockholders – CMS Energy $ 285 $ 202 Consumers Net income available to common stockholder Electric utility $ 97 $ 70 Gas utility 169 154 Other reconciling items 9 8 Total net income available to common stockholder – Consumers $ 275 $ 232 In Millions March 31, 2024 December 31, 2023 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 19,317 $ 19,302 Gas utility 1 12,475 12,383 NorthStar Clean Energy 1,424 1,420 Other reconciling items 20 30 Total plant, property, and equipment, gross – CMS Energy $ 33,236 $ 33,135 Consumers Plant, property, and equipment, gross Electric utility 1 $ 19,317 $ 19,302 Gas utility 1 12,475 12,383 Other reconciling items 28 38 Total plant, property, and equipment, gross – Consumers $ 31,820 $ 31,723 CMS Energy, including Consumers Total assets Electric utility 1 $ 19,759 $ 19,358 Gas utility 1 12,305 12,353 NorthStar Clean Energy 1,615 1,604 Other reconciling items 222 202 Total assets – CMS Energy $ 33,901 $ 33,517 Consumers Total assets Electric utility 1 $ 19,818 $ 19,417 Gas utility 1 12,348 12,397 Other reconciling items 43 38 Total assets – Consumers $ 32,209 $ 31,852 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, 2024 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities | Presented in the following table is information about the VIEs NorthStar Clean Energy consolidates: Consolidated VIE NorthStar Clean Energy’s ownership interest Description of VIE Aviator Wind Equity Holdings 51-percent ownership interest 1 Holds a Class B membership interest in Aviator Wind Aviator Wind Class B membership interest 2 Holding company of a 525-MW wind generation project in Coke County, Texas Newport Solar Holdings Class B membership interest 2 Holding company of a 180-MW solar generation project in Jackson County, Arkansas NWO Holdco Class B membership interest 2 Holding company of a 100-MW wind generation project in Paulding County, Ohio 1 The remaining 49-percent interest is presented as noncontrolling interest on CMS Energy’s consolidated balance sheets. 2 The Class A membership interest in the entity is held by a tax equity investor and is presented as noncontrolling interest on CMS Energy’s consolidated balance sheets. Under the associated limited liability company agreement, the tax equity investor is guaranteed preferred returns from the entity . 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, 2024 December 31, 2023 Current Cash and cash equivalents $ 24 $ 28 Accounts receivable 5 3 Prepayments and other current assets 5 4 Non-current Plant, property, and equipment, net 1,055 1,064 Other non-current assets 3 3 Total assets 1 $ 1,092 $ 1,102 Current Accounts payable $ 5 $ 12 Non-current Non-current portion of finance leases 23 23 Asset retirement obligations 32 32 Total liabilities $ 60 $ 67 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, 2024 | |
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 2024 2023 1 Retention benefit liability at beginning of period $ 16 $ 21 Costs deferred as a regulatory asset 3 5 Retention benefit liability at the end of the period 2 $ 19 $ 26 1 Includes amounts associated with a retention incentive program at the D.E. Karn coal-fueled generating units; this program concluded following the units’ retirement in June 2023. 2 Includes current portion of other liabilities of $8 million at March 31, 2024 and $16 million at March 31, 2023. |
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 2024 2023 1 Retention benefit liability at beginning of period $ 16 $ 21 Costs deferred as a regulatory asset 3 5 Retention benefit liability at the end of the period 2 $ 19 $ 26 1 Includes amounts associated with a retention incentive program at the D.E. Karn coal-fueled generating units; this program concluded following the units’ retirement in June 2023. 2 Includes current portion of other liabilities of $8 million at March 31, 2024 and $16 million at March 31, 2023. |
Regulatory Matters - (Narrative
Regulatory Matters - (Narrative) (Details) - Consumers Energy Company - USD ($) $ in Millions | 1 Months Ended | |||
Apr. 24, 2024 | Mar. 31, 2024 | Sep. 30, 2023 | May 31, 2023 | |
Electric Rate Case | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Requested annual rate increase | $ 169 | $ 216 | ||
Requested annual rate increase, as a percent | 10.25% | |||
Surcharge for the recovery of excess distribution investments | $ 9 | |||
Additional annual rate increase authorized | $ 92 | |||
Rate of return on equity authorized | 9.90% | |||
Meter Investigation | Subsequent Event | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Settlement agreement penalty payment | $ 1 | |||
Minimum settlement returns to customers | $ 3 |
Contingencies and Commitments_2
Contingencies and Commitments (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) facility | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | |
Loss Contingencies [Line Items] | |||
Environmental Loss Contingency, Statement Of Financial Position, Extensible Enumeration, Not Disclosed Flag | recorded liability | ||
Regulatory assets | $ 3,608 | $ 3,683 | |
Consumers Energy Company | |||
Loss Contingencies [Line Items] | |||
Regulatory assets | 3,608 | $ 3,683 | |
Consumers Energy Company | MGP sites | |||
Loss Contingencies [Line Items] | |||
Regulatory assets | $ 97 | ||
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 | $ 44 | ||
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 | 4 | ||
NREPA | Minimum | Electric Utility | Consumers Energy Company | |||
Loss Contingencies [Line Items] | |||
Remediation and other response activity costs | 4 | ||
NREPA | Maximum | Electric Utility | Consumers Energy Company | |||
Loss Contingencies [Line Items] | |||
Remediation and other response activity costs | 5 | ||
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 | $ 62 | ||
Number of former MGPs | facility | 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, 2024 USD ($) |
Bay Harbor | |
Site Contingency [Line Items] | |
2024 | $ 3 |
2025 | 4 |
2026 | 4 |
2027 | 4 |
2028 | 4 |
2029 | 4 |
Consumers Energy Company | MGP sites | |
Site Contingency [Line Items] | |
2024 | 2 |
2025 | 1 |
2026 | 7 |
2027 | 10 |
2028 | 25 |
2029 | $ 7 |
Contingencies and Commitments_4
Contingencies and Commitments (Summary of Guarantees) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 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 | $ 294 |
Carrying Amount | $ 0 |
Indemnity obligations from stock and asset sale agreements | |
Guarantees And Other Contingencies [Line Items] | |
Expiration Date | indefinite |
Maximum Obligation | $ 153 |
Carrying Amount | $ 1 |
Financings and Capitalization_2
Financings and Capitalization (Major Long-Term Debt Issuances and Retirements) (Details) - Consumers Energy Company $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Debt Instrument [Line Items] | |
Principal (In Millions) | $ 600 |
Repayments of debt | 250 |
First mortgage bonds | 4.650% First Mortgage Bonds Due March 2028 | |
Debt Instrument [Line Items] | |
Principal (In Millions) | $ 600 |
Interest rate | 4.60% |
Senior Notes | Senior Notes Due March 2024 | |
Debt Instrument [Line Items] | |
Interest rate | 3.875% |
Repayments of debt | $ 250 |
Financings and Capitalization_3
Financings and Capitalization (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Financing And Capitalization [Line Items] | ||||
Gain on extinguishment of debt | $ 22 | |||
Interest on long-term debt | 172 | $ 144 | ||
Notes payable | $ 93 | 0 | ||
Limitation on payment of stock dividends | 7,700 | |||
Dividends paid | 265 | |||
Stock offering program maximum value | 1,000 | |||
Issuance of common stock | 272 | 4 | ||
CMS Energy | First mortgage bonds | ||||
Financing And Capitalization [Line Items] | ||||
Principal (In Millions) | 91 | |||
Payment for purchase of first mortgage bonds | 69 | |||
Settlement Of Forward Contracts | ||||
Financing And Capitalization [Line Items] | ||||
Settlement of forward contracts through issuance of stock (in dollars per share) | $ 70.31 | |||
Issuance of common stock | $ 266 | |||
Consumers Energy Company | ||||
Financing And Capitalization [Line Items] | ||||
Principal (In Millions) | 600 | |||
Interest on long-term debt | 121 | $ 99 | ||
Unrestricted retained earnings | 2,100 | |||
Consumers Energy Company | Credit Agreement | Related Party | ||||
Financing And Capitalization [Line Items] | ||||
Maximum borrowing capacity | 500 | |||
Notes payable | 0 | |||
Consumers Energy Company | Credit Agreement | Related Party | SOFR | ||||
Financing And Capitalization [Line Items] | ||||
Basis spread on variable rate | (0.10%) | |||
Consumers Energy Company | Commercial Paper | ||||
Financing And Capitalization [Line Items] | ||||
Short-term debt authorized borrowings | 500 | |||
Short-term borrowings outstanding | $ 0 |
Financings and Capitalization_4
Financings and Capitalization (Schedule of Revolving Credit Facilities) (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Consumers Energy Company | Revolving Credit Facilities December 14, 2027 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | $ 1,100 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 27 |
Amount Available | 1,073 |
Consumers Energy Company | Revolving Credit Facilities November 18, 2024 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 250 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 53 |
Amount Available | 197 |
CMS Energy | Revolving Credit Facilities December 14, 2027 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 550 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 29 |
Amount Available | 521 |
CMS Energy | Revolving Credit Facilities September 22, 2024 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 50 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 50 |
Amount Available | 0 |
NorthStar Clean Energy, Including Subsidiaries | Revolving Credit Facilities September 25, 2025 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 37 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 37 |
Amount Available | $ 0 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Restricted cash equivalents | $ 59 | $ 21 |
Derivative instruments | 1 | 2 |
Consumers Energy Company | ||
Assets | ||
Restricted cash equivalents | 59 | 21 |
Derivative instruments | 1 | 2 |
Fair Value, Inputs, Level 1 | ||
Assets | ||
Cash equivalents | 264 | 18 |
Restricted cash equivalents | 59 | 21 |
Nonqualified deferred compensation plan assets | 31 | 30 |
Liabilities | ||
Nonqualified deferred compensation plan liabilities | 31 | 30 |
Fair Value, Inputs, Level 1 | Consumers Energy Company | ||
Assets | ||
Cash equivalents | 198 | 0 |
Restricted cash equivalents | 59 | 21 |
Nonqualified deferred compensation plan assets | 23 | 22 |
Liabilities | ||
Nonqualified deferred compensation plan liabilities | 23 | 22 |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Assets | ||
Total assets | 355 | 71 |
Liabilities | ||
Total liabilities | 31 | 30 |
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company | ||
Assets | ||
Total assets | 281 | 45 |
Liabilities | ||
Total liabilities | $ 23 | $ 22 |
Financial Instruments (Schedule
Financial Instruments (Schedule of Carrying Amounts and Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Liabilities | ||
Current accounts receivable and notes receivable | $ 5 | $ 6 |
Current portion of long-term debt | 767 | 975 |
Current portion of long-term payables | 1 | |
Carrying Amount | ||
Assets | ||
Long-term receivables | 10 | 11 |
Liabilities | ||
Long-term debt | 15,740 | 15,483 |
Long-term payables | 11 | 11 |
Fair Value | ||
Assets | ||
Long-term receivables | 10 | 11 |
Liabilities | ||
Long-term debt | 14,337 | 14,305 |
Long-term payables | 11 | 11 |
Consumers Energy Company | ||
Liabilities | ||
Current accounts receivable and notes receivable | 5 | 6 |
Current portion of long-term debt | 767 | 725 |
Consumers Energy Company | Related Party | ||
Liabilities | ||
Current portion of notes receivable, related party | 7 | 7 |
Consumers Energy Company | Carrying Amount | ||
Assets | ||
Long-term receivables | 10 | 11 |
Notes receivable related party | 97 | 97 |
Liabilities | ||
Long-term payables | 5 | 5 |
Consumers Energy Company | Carrying Amount | Nonrelated Party | ||
Liabilities | ||
Long-term debt | 11,268 | 10,762 |
Consumers Energy Company | Carrying Amount | Related Party | ||
Liabilities | ||
Long-term debt | 515 | 424 |
Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 10 | 11 |
Notes receivable related party | 97 | 97 |
Liabilities | ||
Long-term payables | 5 | 5 |
Consumers Energy Company | Fair Value | Nonrelated Party | ||
Liabilities | ||
Long-term debt | 10,045 | 9,757 |
Consumers Energy Company | Fair Value | Related Party | ||
Liabilities | ||
Long-term debt | 355 | 303 |
Level 1 | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Liabilities | ||
Long-term debt | 1,092 | 1,103 |
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 payables | 0 | 0 |
Level 1 | Consumers Energy Company | Fair Value | Nonrelated Party | ||
Liabilities | ||
Long-term debt | 0 | 0 |
Level 1 | Consumers Energy Company | Fair Value | Related Party | ||
Liabilities | ||
Long-term debt | 0 | 0 |
Level 2 | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Liabilities | ||
Long-term debt | 11,261 | 11,186 |
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 payables | 0 | 0 |
Level 2 | Consumers Energy Company | Fair Value | Nonrelated Party | ||
Liabilities | ||
Long-term debt | 8,061 | 7,741 |
Level 2 | Consumers Energy Company | Fair Value | Related Party | ||
Liabilities | ||
Long-term debt | 355 | 303 |
Level 3 | Fair Value | ||
Assets | ||
Long-term receivables | 10 | 11 |
Liabilities | ||
Long-term debt | 1,984 | 2,016 |
Long-term payables | 11 | 11 |
Level 3 | Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 10 | 11 |
Notes receivable related party | 97 | 97 |
Liabilities | ||
Long-term payables | 5 | 5 |
Level 3 | Consumers Energy Company | Fair Value | Nonrelated Party | ||
Liabilities | ||
Long-term debt | 1,984 | 2,016 |
Level 3 | Consumers Energy Company | Fair Value | Related Party | ||
Liabilities | ||
Long-term debt | $ 0 | $ 0 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) | Mar. 31, 2024 |
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, 2024 | Mar. 31, 2023 | |
DB Pension Plans | ||
Defined Benefit Plan, Roll Forwards [Abstract] | ||
Service cost | $ 7 | $ 7 |
Interest cost | 26 | 27 |
Expected return on plan assets | (59) | (55) |
Amortization of: | ||
Net loss | 3 | 3 |
Prior service cost (credit) | 1 | 1 |
Settlement loss | 3 | 2 |
Net periodic credit | (19) | (15) |
DB Pension Plans | Volatility Mechanism | ||
Amortization of: | ||
Deferred costs (credits) | (5) | |
DB Pension Plans | Consumers Energy Company | ||
Defined Benefit Plan, Roll Forwards [Abstract] | ||
Service cost | 7 | 7 |
Interest cost | 24 | 25 |
Expected return on plan assets | (55) | (52) |
Amortization of: | ||
Net loss | 3 | 3 |
Prior service cost (credit) | 1 | 1 |
Settlement loss | 3 | 2 |
Net periodic credit | (17) | (14) |
OPEB Plan | ||
Defined Benefit Plan, Roll Forwards [Abstract] | ||
Service cost | 3 | 3 |
Interest cost | 11 | 11 |
Expected return on plan assets | (29) | (26) |
Amortization of: | ||
Net loss | 1 | 3 |
Prior service cost (credit) | (8) | (10) |
Settlement loss | 0 | 0 |
Net periodic credit | (22) | (19) |
OPEB Plan | Volatility Mechanism | ||
Amortization of: | ||
Deferred costs (credits) | 1 | |
OPEB Plan | Consumers Energy Company | ||
Defined Benefit Plan, Roll Forwards [Abstract] | ||
Service cost | 3 | 3 |
Interest cost | 10 | 11 |
Expected return on plan assets | (27) | (24) |
Amortization of: | ||
Net loss | 1 | 3 |
Prior service cost (credit) | (7) | (10) |
Settlement loss | 0 | 0 |
Net periodic credit | $ (20) | $ (17) |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Rate Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Taxes [Line Items] | ||
U.S. federal income tax rate | 21% | 21% |
Increase (decrease) in income taxes from: | ||
State and local income taxes, net of federal effect | 5.50% | (0.50%) |
Renewable energy tax credits | (6.00%) | (4.90%) |
TCJA excess deferred taxes | (3.70%) | (3.70%) |
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss), Percent | 1.10% | 0.70% |
Other, net | 0.20% | 0.40% |
Effective tax rate | 18.10% | 13% |
Consumers Energy Company | ||
Income Taxes [Line Items] | ||
U.S. federal income tax rate | 21% | 21% |
Increase (decrease) in income taxes from: | ||
State and local income taxes, net of federal effect | 4.90% | 0% |
Renewable energy tax credits | (4.00%) | (4.20%) |
TCJA excess deferred taxes | (3.20%) | (3.20%) |
Other, net | 0.20% | 0.50% |
Effective tax rate | 18.90% | 14.10% |
Consumers Energy Company | Non-Michigan Jurisdiction | ||
Increase (decrease) in income taxes from: | ||
State and local income taxes, net of federal effect | $ (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, 2024 | Mar. 31, 2023 | |
Income available to common stockholders | ||
Income from continuing operations | $ 263 | $ 194 |
Loss attributable to noncontrolling interests | (24) | (10) |
Preferred stock dividends | 2 | 2 |
Income from continuing operations available to common stockholders – basic and diluted | $ 285 | $ 202 |
Average common shares outstanding | ||
Weighted average shares - basic (in shares) | 296.5 | 290.7 |
Dilutive nonvested stock awards (in shares) | 0.7 | 0.5 |
Weighted average shares - diluted (in shares) | 297.2 | 291.2 |
Income from continuing operations per average common share available to common stockholders | ||
Basic (in dollars per share) | $ 0.96 | $ 0.69 |
Diluted (in dollars per share) | $ 0.96 | $ 0.69 |
Earnings Per Share - CMS Ener_4
Earnings Per Share - CMS Energy (Narrative) (Details) | Mar. 31, 2024 USD ($) |
CMS Energy | 3.375% Convertible Senior Notes Due 2028 | Convertible debt | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Principal (In Millions) |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | $ 2,144 | $ 2,248 |
Leasing income | 27 | 31 |
Financing income | 4 | 5 |
Alternative-revenue programs | 1 | |
Total operating revenue | 2,176 | 2,284 |
Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 1,129 | 1,089 |
Financing income | 2 | 2 |
Alternative-revenue programs | 1 | |
Total operating revenue | 1,132 | 1,091 |
Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 963 | 1,116 |
Financing income | 2 | 3 |
Alternative-revenue programs | 0 | |
Total operating revenue | 965 | 1,119 |
NorthStar Clean Energy | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 52 | 43 |
Leasing income | 27 | 31 |
Total operating revenue | 79 | 74 |
Variable lease income | 16 | 22 |
Consumers Energy Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 2,092 | 2,205 |
Financing income | 4 | 5 |
Alternative-revenue programs | 1 | |
Total operating revenue | 2,097 | 2,210 |
Consumers Energy Company | Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 1,129 | 1,089 |
Financing income | 2 | 2 |
Alternative-revenue programs | 1 | |
Total operating revenue | 1,132 | 1,091 |
Consumers Energy Company | Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 963 | 1,116 |
Financing income | 2 | 3 |
Alternative-revenue programs | 0 | |
Total operating revenue | 965 | 1,119 |
Residential | Consumers Energy Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 1,190 | 1,304 |
Residential | Consumers Energy Company | Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 525 | 528 |
Residential | Consumers Energy Company | Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 665 | 776 |
Commercial | Consumers Energy Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 567 | 594 |
Commercial | Consumers Energy Company | Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 360 | 347 |
Commercial | Consumers Energy Company | Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 207 | 247 |
Industrial | Consumers Energy Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 180 | 192 |
Industrial | Consumers Energy Company | Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 156 | 161 |
Industrial | Consumers Energy Company | Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 24 | 31 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 52 | 43 |
Other | NorthStar Clean Energy | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 52 | 43 |
Other | Consumers Energy Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 155 | 115 |
Other | Consumers Energy Company | Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 88 | 53 |
Other | Consumers Energy Company | Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | $ 67 | $ 62 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Disaggregation of Revenue [Line Items] | |||
Unbilled receivables | $ 472 | $ 494 | |
Consumers Energy Company | |||
Disaggregation of Revenue [Line Items] | |||
Unbilled receivables | 472 | $ 494 | |
Accounts Receivable | |||
Disaggregation of Revenue [Line Items] | |||
Bad debt expense | 10 | $ 9 | |
Accounts Receivable | Consumers Energy Company | |||
Disaggregation of Revenue [Line Items] | |||
Bad debt expense | $ 10 | $ 9 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Operating Revenue | $ 2,176 | $ 2,284 | |
Net income (loss) available to common stockholders | 285 | 202 | |
Plant, property, and equipment, gross | 33,236 | $ 33,135 | |
Total assets | 33,901 | 33,517 | |
Consumers Energy Company | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 2,097 | 2,210 | |
Net income (loss) available to common stockholders | 275 | 232 | |
Plant, property, and equipment, gross | 31,820 | 31,723 | |
Total assets | 32,209 | 31,852 | |
Other reconciling items | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) available to common stockholders | (12) | (29) | |
Plant, property, and equipment, gross | 20 | 30 | |
Total assets | 222 | 202 | |
Other reconciling items | Consumers Energy Company | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 0 | 0 | |
Net income (loss) available to common stockholders | 9 | 8 | |
Plant, property, and equipment, gross | 28 | 38 | |
Total assets | 43 | 38 | |
Electric Utility | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 1,132 | 1,091 | |
Net income (loss) available to common stockholders | 97 | 70 | |
Plant, property, and equipment, gross | 19,317 | 19,302 | |
Total assets | 19,759 | 19,358 | |
Electric Utility | Operating Segments | Consumers Energy Company | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 1,132 | 1,091 | |
Net income (loss) available to common stockholders | 97 | 70 | |
Plant, property, and equipment, gross | 19,317 | 19,302 | |
Total assets | 19,818 | 19,417 | |
Gas Utility | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 965 | 1,119 | |
Net income (loss) available to common stockholders | 169 | 154 | |
Plant, property, and equipment, gross | 12,475 | 12,383 | |
Total assets | 12,305 | 12,353 | |
Gas Utility | Operating Segments | Consumers Energy Company | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 965 | 1,119 | |
Net income (loss) available to common stockholders | 169 | 154 | |
Plant, property, and equipment, gross | 12,475 | 12,383 | |
Total assets | 12,348 | 12,397 | |
NorthStar Clean Energy | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 79 | 74 | |
Net income (loss) available to common stockholders | 31 | $ 7 | |
Plant, property, and equipment, gross | 1,424 | 1,420 | |
Total assets | $ 1,615 | $ 1,604 |
Variable Interest Entities (Sum
Variable Interest Entities (Summary of VIE Information) (Details) | 3 Months Ended |
Mar. 31, 2024 MW | |
Newport Solar Holdings | |
Variable Interest Entity [Line Items] | |
Nameplate capacity (in MW) | 180 |
NWO Holdco, L.L.C | |
Variable Interest Entity [Line Items] | |
Nameplate capacity (in MW) | 100 |
Variable Interest Entity, Primary Beneficiary | Aviator Wind | |
Variable Interest Entity [Line Items] | |
Ownership interest | 51% |
Nameplate capacity (in MW) | 525 |
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 49% |
Variable Interest Entities (Sch
Variable Interest Entities (Schedule of Variable Interest Entities) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 802 | $ 227 |
Prepayments and other current assets | 110 | 80 |
Plant, property, and equipment, net | 25,280 | 25,072 |
Other non-current assets | 318 | 357 |
Total Assets | 33,901 | 33,517 |
Non-current portion of finance leases | 61 | 62 |
Asset retirement obligations | 777 | 771 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | 24 | 28 |
Accounts receivable | 5 | 3 |
Prepayments and other current assets | 5 | 4 |
Plant, property, and equipment, net | 1,055 | 1,064 |
Other non-current assets | 3 | 3 |
Total Assets | 1,092 | 1,102 |
Accounts payable | 5 | 12 |
Non-current portion of finance leases | 23 | 23 |
Asset retirement obligations | 32 | 32 |
Total liabilities | $ 60 | $ 67 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Variable Interest Entity [Line Items] | ||
Investments | $ 73 | $ 76 |
Securitization bonds | ||
Variable Interest Entity [Line Items] | ||
Total principal amount outstanding | 787 | 787 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Regulatory asset | 750 | 778 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments | $ 71 | $ 74 |
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 | Craven | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50% | |
Variable Interest Entity, Not Primary Beneficiary | Genesee | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50% |
Exit Activities (Narrative) (De
Exit Activities (Narrative) (Details) - Retention Benefits - USD ($) $ in Millions | 3 Months Ended | 21 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | |
Restructuring Cost and Reserve [Line Items] | |||
Cost deferred | $ 3 | $ 5 | |
D.E. Karn Generating Complex and J.H. Campbell Generating Units | Retention incentive program | |||
Restructuring Cost and Reserve [Line Items] | |||
Regulatory asset collection period | 3 years | 3 years | |
J.H. Campbell Generating Units | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected cost | $ 50 | $ 50 | |
J.H. Campbell Generating Units | Retention incentive program | |||
Restructuring Cost and Reserve [Line Items] | |||
Cost deferred | $ 38 |
Exit Activities and Discontinue
Exit Activities and Discontinued Operations (Schedule of Retention Benefit Liability Roll Forward) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Restructuring Reserve [Roll Forward] | |||
Other current liabilities | $ 148 | $ 149 | |
Retention Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Retention benefit liability at beginning of period | 16 | $ 21 | |
Costs deferred as a regulatory asset | 3 | 5 | |
Retention benefit liability at the end of the period | 19 | 26 | |
Other current liabilities | $ 8 | $ 16 |