Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 04, 2013 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2013 | |
Trading Symbol | cms | |
Entity Registrant Name | CMS Energy Corporation | |
Entity Central Index Key | 811156 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
CMS Energy [Member] | ||
Entity Common Stock, Shares Outstanding | 267,090,832 | |
Consumers Energy Company [Member] | ||
Entity Registrant Name | Consumers Energy Company | |
Entity Central Index Key | 201533 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 84,108,789 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Revenue | $1,445 | $1,507 | $4,830 | $4,583 |
Operating Expenses | ||||
Fuel for electric generation | 165 | 190 | 466 | 446 |
Purchased and interchange power | 383 | 386 | 1,063 | 1,037 |
Purchased power - related parties | 21 | 23 | 67 | 65 |
Cost of gas sold | 76 | 80 | 849 | 763 |
Maintenance and other operating expenses | 285 | 295 | 871 | 872 |
Depreciation and amortization | 145 | 138 | 463 | 440 |
General taxes | 54 | 53 | 174 | 170 |
Gain on asset sales, net | -1 | -1 | -1 | -1 |
Total operating expenses | 1,128 | 1,164 | 3,952 | 3,792 |
Operating Income | 317 | 343 | 878 | 791 |
Other Income (Expense) | ||||
Interest income | 1 | 1 | 3 | 3 |
Allowance for equity funds used during construction | 1 | 2 | 5 | 6 |
Income from equity method investees | 3 | 5 | 11 | 13 |
Other income | 2 | 3 | 7 | 9 |
Other expense | -7 | -11 | -13 | -16 |
Total other income (expense) | 13 | 15 | ||
Interest Charges | ||||
Interest on long-term debt | 96 | 92 | 289 | 280 |
Other interest expense | 3 | 5 | 12 | 16 |
Allowance for borrowed funds used during construction | -1 | -2 | -3 | |
Total interest charges | 99 | 96 | 299 | 293 |
Income Before Income Taxes | 218 | 247 | 592 | 513 |
Income Tax Expense | 91 | 98 | 240 | 203 |
Income From Continuing Operations | 127 | 149 | 352 | 310 |
Income From Discontinued Operations, Net | 7 | |||
Net Income | 127 | 149 | 352 | 317 |
Income Attributable to Noncontrolling Interests | 1 | 1 | 2 | 2 |
Net Income Attributable to Common Stockholders | ||||
Amounts attributable to continuing operations | 126 | 148 | 350 | 308 |
Amounts attributable to discontinued operations | 7 | |||
Net Income Available to Common Stockholders | 126 | 148 | 350 | 315 |
Income Attributable to Noncontrolling Interests | ||||
Amounts attributable to continuing operations | 1 | 1 | 2 | 2 |
Amounts attributable to discontinued operations | ||||
Income attributable to noncontrolling interests | 1 | 1 | 2 | 2 |
Basic Earnings Per Average Common Share | ||||
Basic earnings from continuing operations | $0.48 | $0.56 | $1.32 | $1.18 |
Basic earnings from discontinued operations | $0.03 | |||
Basic earnings attributable to common stock | $0.48 | $0.56 | $1.32 | $1.21 |
Diluted Earnings Per Average Common Share | ||||
Diluted earnings from continuing operations | $0.46 | $0.55 | $1.29 | $1.14 |
Diluted earnings from discontinued operations | $0.03 | |||
Diluted earnings attributable to common stock | $0.46 | $0.55 | $1.29 | $1.17 |
Dividends Declared Per Common Share | $0.26 | $0.24 | $0.77 | $0.72 |
Consumers Energy Company [Member] | ||||
Operating Revenue | 1,386 | 1,448 | 4,647 | 4,405 |
Operating Expenses | ||||
Fuel for electric generation | 148 | 166 | 406 | 382 |
Purchased and interchange power | 374 | 379 | 1,043 | 1,019 |
Purchased power - related parties | 21 | 23 | 67 | 65 |
Cost of gas sold | 64 | 74 | 818 | 734 |
Maintenance and other operating expenses | 270 | 284 | 825 | 827 |
Depreciation and amortization | 143 | 137 | 459 | 436 |
General taxes | 53 | 51 | 170 | 165 |
Gain on asset sales, net | -1 | -1 | ||
Total operating expenses | 1,072 | 1,114 | 3,787 | 3,628 |
Operating Income | 314 | 334 | 860 | 777 |
Other Income (Expense) | ||||
Interest income | 2 | 2 | ||
Interest and dividend income - related parties | 1 | 1 | 1 | 1 |
Allowance for equity funds used during construction | 1 | 2 | 5 | 6 |
Other income | 2 | 3 | 11 | 14 |
Other expense | -3 | -11 | -9 | -16 |
Total other income (expense) | 1 | -5 | 10 | 7 |
Interest Charges | ||||
Interest on long-term debt | 58 | 56 | 177 | 175 |
Other interest expense | 2 | 4 | 8 | 12 |
Allowance for borrowed funds used during construction | -1 | -2 | -3 | |
Total interest charges | 60 | 59 | 183 | 184 |
Income Before Income Taxes | 255 | 270 | 687 | 600 |
Income Tax Expense | 102 | 107 | 272 | 239 |
Net Income | 153 | 163 | 415 | 361 |
Preferred Stock Dividends and Distribution | 1 | 1 | 2 | 2 |
Net Income Attributable to Common Stockholders | ||||
Net Income Available to Common Stockholders | $152 | $162 | $413 | $359 |
Consolidated_Statements_Of_Inc1
Consolidated Statements Of Income (Parenthetical) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2012 |
Consolidated Statements Of Income | |
Tax expense included in income from discontinued operations | $4 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Income | $127 | $149 | $352 | $317 |
Net gain arising during the period, net of tax | 10 | 10 | ||
Prior service credit adjustment, net of tax | 5 | 5 | ||
Amortization of net actuarial loss, net of tax | 1 | 1 | 3 | 3 |
Unrealized gain (loss) on investments, net of tax | 1 | 1 | -2 | 3 |
Other Comprehensive Income (Loss) | 17 | 2 | 16 | 6 |
Comprehensive Income | 144 | 151 | 368 | 323 |
Comprehensive Income Attributable to Noncontrolling Interest | 1 | 1 | 2 | 2 |
Comprehensive Income Attributable to CMS Energy | 143 | 150 | 366 | 321 |
Consumers Energy Company [Member] | ||||
Net Income | 153 | 163 | 415 | 361 |
Amortization of net actuarial loss, net of tax | 1 | 2 | 2 | |
Reclassification adjustments included in net income, net of tax | -3 | |||
Other Comprehensive Income (Loss) | 1 | -1 | 2 | |
Comprehensive Income | $153 | $164 | $414 | $363 |
Consolidated_Statements_Of_Com1
Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net gain (loss) arising during the period, tax | $6 | $6 | ||
Tax on prior service credit adjustment | 3 | 3 | ||
Amortization of net actuarial loss, tax | 2 | |||
Unrealized gain (loss) on investments, tax expense (tax benefit) | -1 | 1 | -1 | 1 |
Consumers Energy Company [Member] | ||||
Amortization of net actuarial loss, tax | 1 | 1 | ||
Reclassification adjustments included in net income, tax | ($1) |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows from Operating Activities | ||
Net income | $352 | $317 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 463 | 440 |
Deferred income taxes and investment tax credit | 213 | 193 |
Postretirement benefits expense | 120 | 141 |
Other non-cash operating activities | 59 | 51 |
Postretirement benefits contributions | -109 | -54 |
Proceeds from government grant | 69 | |
Cash provided by (used in) changes in assets and liabilities | ||
Decrease (increase) in accounts receivable, notes receivable, and accrued revenue | 134 | 99 |
Decrease (increase) in inventories | -6 | -83 |
Decrease in deferred property taxes | 140 | 140 |
Increase (decrease) in accounts payable | -3 | -16 |
Increase (decrease) in accrued expenses | -230 | -251 |
Other current and non-current assets and liabilities | -84 | -43 |
Net cash provided by operating activities | 1,118 | 934 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under capital lease) | -900 | -861 |
Cost to retire property | -38 | -32 |
Other investing activities | -66 | -45 |
Net cash used in investing activities | -1,004 | -938 |
Cash Flows from Financing Activities | ||
Proceeds from issuance of long-term debt | 1,025 | 1,300 |
Proceeds from (retirements of) EnerBank notes, net | 48 | 25 |
Issuance of common stock | 32 | 27 |
Retirement of long-term debt | -705 | -1,166 |
Payment of common stock dividends | -203 | -188 |
Redemption of preferred stock | -7 | |
Increase (decrease) in notes payable | -110 | |
Payment of capital lease obligations and other financing costs | -27 | -27 |
Net cash provided by (used in) financing activities | 53 | -29 |
Net Increase (Decrease) in Cash and Cash Equivalents | 167 | -33 |
Cash and Cash Equivalents, Beginning of Period | 93 | 161 |
Cash and Cash Equivalents, End of Period | 260 | 128 |
Consumers Energy Company [Member] | ||
Cash Flows from Operating Activities | ||
Net income | 415 | 361 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 459 | 436 |
Deferred income taxes and investment tax credit | 141 | 92 |
Postretirement benefits expense | 117 | 138 |
Other non-cash operating activities | 52 | 46 |
Postretirement benefits contributions | -106 | -51 |
Proceeds from government grant | 69 | |
Cash provided by (used in) changes in assets and liabilities | ||
Decrease (increase) in accounts receivable, notes receivable, and accrued revenue | 135 | 98 |
Decrease (increase) in inventories | -5 | -81 |
Decrease in deferred property taxes | 140 | 140 |
Increase (decrease) in accounts payable | 7 | -4 |
Increase (decrease) in accrued expenses | -205 | -143 |
Other current and non-current assets and liabilities | -85 | -7 |
Net cash provided by operating activities | 1,134 | 1,025 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under capital lease) | -895 | -857 |
Cost to retire property | -38 | -32 |
Other investing activities | -12 | -11 |
Net cash used in investing activities | -945 | -900 |
Cash Flows from Financing Activities | ||
Proceeds from issuance of long-term debt | 750 | 725 |
Retirement of long-term debt | -455 | -703 |
Payment of common stock dividends | -302 | -304 |
Stockholder contribution | 150 | 150 |
Redemption of preferred stock | -7 | |
Increase (decrease) in notes payable | -110 | |
Payment of capital lease obligations and other financing costs | -21 | -21 |
Net cash provided by (used in) financing activities | 5 | -153 |
Net Increase (Decrease) in Cash and Cash Equivalents | 194 | -28 |
Cash and Cash Equivalents, Beginning of Period | 5 | 85 |
Cash and Cash Equivalents, End of Period | $199 | $57 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $260 | $93 |
Restricted cash and cash equivalents | 32 | 29 |
Accounts receivable and accrued revenue, less allowances | 678 | 855 |
Notes receivable | 84 | 41 |
Accounts receivable - related parties | 10 | 10 |
Accrued power supply and gas revenue | 27 | 32 |
Inventories at average cost | ||
Gas in underground storage | 830 | 820 |
Materials and supplies | 107 | 96 |
Generating plant fuel stock | 152 | 168 |
Deferred property taxes | 122 | 190 |
Regulatory assets | 31 | 35 |
Prepayments and other current assets | 68 | 53 |
Total current assets | 2,401 | 2,422 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 16,566 | 15,592 |
Less accumulated depreciation and amortization | 5,355 | 5,121 |
Plant, property, and equipment, net | 11,211 | 10,471 |
Construction work in progress | 943 | 1,080 |
Total plant, property, and equipment | 12,154 | 11,551 |
Other Non-current Assets | ||
Regulatory assets, noncurrent | 1,579 | 2,287 |
Accounts and notes receivable, less allowances | 556 | 521 |
Investments | 63 | 57 |
Other | 233 | 293 |
Total other non-current assets | 2,431 | 3,158 |
Total Assets | 16,986 | 17,131 |
Current Liabilities | ||
Current portion of long-term debt, capital and finance lease obligations | 532 | 541 |
Notes payable | 110 | |
Accounts payable | 519 | 512 |
Accounts payable - related parties | 7 | 9 |
Accrued rate refunds | 6 | |
Accrued interest | 65 | 95 |
Accrued taxes | 88 | 279 |
Deferred income taxes | 66 | 68 |
Regulatory liabilities, current | 51 | 25 |
Other current liabilities | 136 | 152 |
Total current liabilities | 1,464 | 1,797 |
Non-current Liabilities | ||
Long-term debt | 7,089 | 6,710 |
Non-current portion of capital and finance lease obligations | 140 | 153 |
Regulatory liabilities | 2,086 | 2,101 |
Postretirement benefits | 740 | 1,451 |
Asset retirement obligations | 322 | 312 |
Deferred investment tax credit | 41 | 43 |
Deferred income taxes | 1,355 | 1,015 |
Other non-current liabilities | 316 | 311 |
Total non-current liabilities | 12,089 | 12,096 |
Commitments and Contingencies (Notes 1 and 2) | ||
Equity | ||
Common stock | 3 | 3 |
Other paid-in capital | 4,708 | 4,669 |
Accumulated other comprehensive loss | -39 | -55 |
Retained earnings (Accumulated deficit) | -1,276 | -1,423 |
Total common stockholders equity | 3,396 | 3,194 |
Noncontrolling interests | 37 | 44 |
Total equity | 3,433 | 3,238 |
Total Liabilities and Equity | 16,986 | 17,131 |
Consumers Energy Company [Member] | ||
Current Assets | ||
Cash and cash equivalents | 199 | 5 |
Restricted cash and cash equivalents | 31 | 28 |
Accounts receivable and accrued revenue, less allowances | 669 | 844 |
Notes receivable | 25 | |
Accounts receivable - related parties | 1 | 1 |
Accrued power supply and gas revenue | 27 | 32 |
Inventories at average cost | ||
Gas in underground storage | 824 | 816 |
Materials and supplies | 103 | 92 |
Generating plant fuel stock | 152 | 167 |
Deferred property taxes | 122 | 190 |
Regulatory assets | 31 | 35 |
Prepayments and other current assets | 60 | 45 |
Total current assets | 2,244 | 2,255 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 16,426 | 15,456 |
Less accumulated depreciation and amortization | 5,292 | 5,061 |
Plant, property, and equipment, net | 11,134 | 10,395 |
Construction work in progress | 942 | 1,080 |
Total plant, property, and equipment | 12,076 | 11,475 |
Other Non-current Assets | ||
Regulatory assets, noncurrent | 1,579 | 2,287 |
Accounts and notes receivable, less allowances | 17 | 17 |
Investments | 29 | 32 |
Other | 149 | 209 |
Total other non-current assets | 1,774 | 2,545 |
Total Assets | 16,094 | 16,275 |
Current Liabilities | ||
Current portion of long-term debt, capital and finance lease obligations | 63 | 63 |
Notes payable | 110 | |
Accounts payable | 508 | 501 |
Accounts payable - related parties | 10 | 11 |
Accrued rate refunds | 6 | |
Accrued interest | 43 | 65 |
Accrued taxes | 201 | 376 |
Deferred income taxes | 142 | 144 |
Regulatory liabilities, current | 51 | 25 |
Other current liabilities | 99 | 109 |
Total current liabilities | 1,117 | 1,410 |
Non-current Liabilities | ||
Long-term debt | 4,591 | 4,297 |
Non-current portion of capital and finance lease obligations | 140 | 153 |
Regulatory liabilities | 2,086 | 2,101 |
Postretirement benefits | 702 | 1,385 |
Asset retirement obligations | 321 | 311 |
Deferred investment tax credit | 41 | 43 |
Deferred income taxes | 1,999 | 1,741 |
Other non-current liabilities | 260 | 252 |
Total non-current liabilities | 10,140 | 10,283 |
Commitments and Contingencies (Notes 1 and 2) | ||
Equity | ||
Common stock | 841 | 841 |
Other paid-in capital | 3,257 | 3,107 |
Accumulated other comprehensive loss | -9 | -8 |
Retained earnings (Accumulated deficit) | 711 | 598 |
Total common stockholders equity | 4,800 | 4,538 |
Preferred stock | 37 | 44 |
Total equity | 4,837 | 4,582 |
Total Liabilities and Equity | $16,094 | $16,275 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Allowances for doubtful accounts receivable | $31 | $32 |
Allowances for doubtful notes receivable | 5 | 5 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares outstanding | 266,000,000 | 264,100,000 |
Consumers Energy Company [Member] | ||
Allowances for doubtful accounts receivable | $29 | $30 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares outstanding | 84,100,000 | 84,100,000 |
Consolidated_Statements_Of_Cha
Consolidated Statements Of Changes In Equity (USD $) | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | CMS Energy Common Stock [Member] | Other Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retirement Benefits Liability [Member] | Investments [Member] | Derivative Instruments [Member] | Retained Earnings (Accumulated Deficit) [Member] | Noncontrolling Interest [Member] | Total |
In Millions | CMS Energy Common Stock [Member] | Other Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retirement Benefits Liability [Member] | Investments [Member] | Retained Earnings (Accumulated Deficit) [Member] | Preferred Stock [Member] | ||||||||||
Total Equity, beginning at Jun. 30, 2012 | $841 | $3,107 | ($1) | ($18) | $17 | $593 | $44 | $4,584 | $3 | $4,664 | ($45) | ($46) | $2 | ($1) | ($1,511) | $44 | $3,155 |
Common stock issued | 7 | ||||||||||||||||
Common stock reissued | |||||||||||||||||
Common stock repurchased | -9 | ||||||||||||||||
Stockholder contribution | |||||||||||||||||
Amortization of net actuarial loss | 1 | 1 | 1 | 1 | |||||||||||||
Unrealized gain (loss) on investments, net of tax | 1 | 1 | |||||||||||||||
Reclassification adjustments included in net income, net of tax | |||||||||||||||||
Net income attributable to CMS Energy | 148 | ||||||||||||||||
Net income | 163 | 163 | 149 | ||||||||||||||
Common stock dividends declared | -144 | -63 | |||||||||||||||
Preferred stock dividends and distributions declared | -1 | ||||||||||||||||
Income attributable to noncontrolling interests | 1 | 1 | |||||||||||||||
Distributions and other changes in noncontrolling interests | -1 | ||||||||||||||||
Preferred stock redeemed | |||||||||||||||||
Total Equity, end at Sep. 30, 2012 | 841 | 3,107 | -17 | 17 | 611 | 44 | 4,603 | 3 | 4,662 | -43 | -45 | 3 | -1 | -1,426 | 44 | 3,240 | |
Total Equity, beginning at Dec. 31, 2011 | 841 | 2,957 | -2 | -19 | 17 | 554 | 44 | 4,394 | 3 | 4,627 | -49 | -48 | -1 | -1,553 | 44 | 3,072 | |
Common stock issued | 38 | ||||||||||||||||
Common stock reissued | 6 | ||||||||||||||||
Common stock repurchased | -9 | ||||||||||||||||
Stockholder contribution | 150 | 150 | |||||||||||||||
Amortization of net actuarial loss | 2 | 2 | 3 | 3 | |||||||||||||
Unrealized gain (loss) on investments, net of tax | 3 | 3 | |||||||||||||||
Reclassification adjustments included in net income, net of tax | |||||||||||||||||
Net income attributable to CMS Energy | 315 | ||||||||||||||||
Net income | 361 | 361 | 317 | ||||||||||||||
Common stock dividends declared | -302 | -188 | |||||||||||||||
Preferred stock dividends and distributions declared | -2 | ||||||||||||||||
Income attributable to noncontrolling interests | 2 | 2 | |||||||||||||||
Distributions and other changes in noncontrolling interests | -2 | ||||||||||||||||
Preferred stock redeemed | |||||||||||||||||
Total Equity, end at Sep. 30, 2012 | 841 | 3,107 | -17 | 17 | 611 | 44 | 4,603 | 3 | 4,662 | -43 | -45 | 3 | -1 | -1,426 | 44 | 3,240 | |
Total Equity, beginning at Dec. 31, 2012 | 841 | 3,107 | -8 | -25 | 17 | 598 | 44 | 4,582 | 3 | 4,669 | -55 | -56 | 2 | -1 | -1,423 | 44 | 3,238 |
Common stock issued | 44 | ||||||||||||||||
Common stock reissued | 5 | ||||||||||||||||
Common stock repurchased | -10 | ||||||||||||||||
Stockholder contribution | 150 | 150 | |||||||||||||||
Net gain arising during the period | 10 | 10 | |||||||||||||||
Prior service credit adjustment | 5 | -5 | |||||||||||||||
Amortization of net actuarial loss | 2 | 2 | 3 | 3 | |||||||||||||
Unrealized gain (loss) on investments, net of tax | -2 | -2 | |||||||||||||||
Reclassification adjustments included in net income, net of tax | -3 | 3 | |||||||||||||||
Net income attributable to CMS Energy | 350 | ||||||||||||||||
Net income | 415 | 415 | 352 | ||||||||||||||
Common stock dividends declared | -300 | -203 | |||||||||||||||
Preferred stock dividends and distributions declared | -2 | ||||||||||||||||
Income attributable to noncontrolling interests | 2 | 2 | |||||||||||||||
Distributions and other changes in noncontrolling interests | -9 | ||||||||||||||||
Preferred stock redeemed | -7 | ||||||||||||||||
Total Equity, end at Sep. 30, 2013 | 841 | 3,257 | -9 | -23 | 14 | 711 | 37 | 4,837 | 3 | 4,708 | -39 | -38 | -1 | -1,276 | 37 | 3,433 | |
Total Equity, beginning at Jun. 30, 2013 | 841 | 3,257 | -9 | -23 | 14 | 665 | 37 | 4,791 | 3 | 4,710 | -56 | -54 | -1 | -1 | -1,334 | 37 | 3,360 |
Common stock issued | 7 | ||||||||||||||||
Common stock reissued | |||||||||||||||||
Common stock repurchased | -9 | ||||||||||||||||
Stockholder contribution | |||||||||||||||||
Net gain arising during the period | 10 | 10 | |||||||||||||||
Prior service credit adjustment | 5 | -5 | |||||||||||||||
Amortization of net actuarial loss | 1 | 1 | |||||||||||||||
Unrealized gain (loss) on investments, net of tax | 1 | 1 | |||||||||||||||
Reclassification adjustments included in net income, net of tax | |||||||||||||||||
Net income attributable to CMS Energy | 126 | ||||||||||||||||
Net income | 153 | 153 | 127 | ||||||||||||||
Common stock dividends declared | -106 | -68 | |||||||||||||||
Preferred stock dividends and distributions declared | -1 | ||||||||||||||||
Income attributable to noncontrolling interests | 1 | 1 | |||||||||||||||
Distributions and other changes in noncontrolling interests | -1 | ||||||||||||||||
Preferred stock redeemed | |||||||||||||||||
Total Equity, end at Sep. 30, 2013 | $841 | $3,257 | ($9) | ($23) | $14 | $711 | $37 | $4,837 | $3 | $4,708 | ($39) | ($38) | ($1) | ($1,276) | $37 | $3,433 |
Regulatory_Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2013 | |
Regulatory Matters | 1:REGULATORY MATTERS |
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could have a material adverse effect on CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. | |
There are multiple appeals pending that involve various issues concerning cost allocation among customers, the allocation of refunds among customer groups, the adequacy of the record evidence supporting the recovery of Smart Energy investments, and other matters. Consumers is unable to predict the outcome of these appeals. | |
Consumers Electric Utility | |
Electric Rate Cases: In June 2012, the MPSC authorized an annual rate increase of $118 million, based on a 10.3 percent authorized return on equity. Consumers filed an application in September 2012 requesting that the MPSC find that the total revenues collected during self-implementation did not exceed those that would have been collected under final rates. In March 2013, the MPSC approved a settlement agreement finding that no refund was required. | |
In September 2012, Consumers filed an application with the MPSC seeking an annual rate increase of $148 million, based on a 10.5 percent authorized return on equity, in order to recover new investment in system reliability, environmental compliance, and technology enhancements. In January 2013, Consumers supplemented its electric rate case application to reflect changes to its environmental compliance and generation outage plans, which reduced its requested annual rate increase to $145 million. In this filing, Consumers also sought approval of several rate adjustment mechanisms. | |
In March 2013, Consumers self-implemented an annual rate increase of $110 million out of its requested $145 million, subject to refund with interest. Consumers’ self-implementation required no order by the MSPC, and no intervenors in Consumers’ electric rate case opposed Consumers’ self-implementation amount. The MPSC approved a partial settlement agreement in May 2013, authorizing an annual rate increase of $89 million, based on a 10.3 percent authorized rate of return on equity. The rate adjustment mechanisms requested by Consumers were not approved. In June 2013, in connection with this electric rate case, the MPSC approved Consumers’ application for authority to continue the advance metering infrastructure program and implement a non‑transmitting meter provision. | |
In July 2013, Consumers filed a reconciliation of total revenues collected during self-implementation to those that would have been collected under final rates. Consumers’ reconciliation indicated that no refund would be required. | |
Electric Revenue Decoupling Mechanism: The MPSC’s 2009 order in Consumers’ electric rate case authorized Consumers to implement an electric revenue decoupling mechanism. This decoupling mechanism allowed Consumers to adjust future electric rates to the degree that actual average sales per customer differed from the rate order. The MPSC extended the electric revenue decoupling mechanism for a second year in its 2010 order in Consumers’ electric rate case. | |
In April 2012, the Michigan Court of Appeals ruled that the MPSC lacks statutory authority to approve or direct the use of a revenue decoupling mechanism for electric providers. Subsequently, in November 2012, the Michigan Court of Appeals ruled in an appeal of the MPSC’s 2010 order in Consumers’ electric rate case. The Court reversed the portion of the 2010 order related to Consumers’ electric revenue decoupling mechanism and remanded the case to the MPSC for further proceedings related to the revenue decoupling mechanism. In March 2013, the MSPC issued an order in the remand proceedings, stating that, with the exception of the authorization of the revenue decoupling mechanism, its 2010 order in Consumers’ electric rate case stands as issued. | |
Big Rock Nuclear Decommissioning: Consumers had recorded an $85 million regulatory asset for $30 million it paid to Entergy to assume ownership responsibility for the Big Rock ISFSI and for $55 million of nuclear fuel storage costs it incurred as a result of the DOE’s failure to accept nuclear fuel. Consumers filed a complaint against the DOE in 2002 for this failure. | |
In 2011, Consumers entered into an agreement with the DOE to settle its claims for $120 million. Consumers subsequently filed an application with the MPSC requesting authority to utilize $85 million of the settlement amount as recovery of its regulatory asset, and to refund to customers $23 million previously collected through rates for spent nuclear fuel costs. In December 2012, the MPSC approved this treatment, and Consumers refunded $23 million to customers over the six-month period from January 2013 through June 2013. Consumers recognized the remaining $12 million of the settlement as a reduction of maintenance and other operating expenses. In March 2013, a party filed an appeal with the Michigan Court of Appeals to dispute the MPSC’s December 2012 order. | |
Renewable Energy Plan: In January 2013, Consumers received a $69 million renewable energy grant for Lake Winds® Energy Park, which began operations in November 2012. The grant was received from the U.S. Department of Treasury under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. | |
As reflected in Consumers’ 2011 biennial renewable energy plan, which the MPSC approved in 2012, this grant reduces Consumers’ cost of complying with the renewable standards prescribed by the 2008 Energy Law and, accordingly, reduces the overall renewable energy surcharge to be collected from customers. At September 30, 2013, Consumers had a $68 million regulatory liability recorded for the grant. The regulatory liability will be amortized over the life of Lake Winds® Energy Park. | |
In May 2013, Consumers filed a revised renewable energy plan that reduced the size and cost of the Cross Winds® Energy Park. In June 2013, the MPSC issued an order approving Consumers’ 2011 renewable cost reconciliation filing. In July 2013, Consumers filed its 2012 renewable cost reconciliation and annual report. | |
Energy Optimization Plan: In May 2013, Consumers filed its fourth annual report and reconciliation for its energy optimization plan, requesting approval of its energy optimization plan costs for 2012. In October 2013, Consumers filed a settlement agreement, which, if approved, would authorize Consumers to collect $17 million from customers during 2014 as an incentive payment for exceeding statutory targets under both its gas and electric energy optimization plans during 2012. In August 2013, Consumers filed its energy optimization plan for the period 2014 through 2017 with the MPSC. | |
Consumers Gas Utility | |
Gas Revenue Decoupling Mechanism: The MPSC’s 2009 order in Consumers’ gas rate case authorized Consumers to implement a gas revenue decoupling mechanism. This mechanism, which the MPSC extended through April 2012 in its 2010 order in Consumers’ gas rate case, allowed Consumers to adjust future gas rates to the degree that actual average weather-adjusted sales per customer differed from the rate order. This mechanism was not affected by a separate Michigan Court of Appeals decision on electric revenue decoupling. | |
In December 2012, the MPSC approved Consumers’ reconciliation of the gas revenue decoupling mechanism for the period June 2010 through May 2011 and authorized recovery of $16 million over a three-month period that began in February 2013. Due to high customer deliveries during this three-month period, Consumers collected more than the amount authorized and refunded the over-collection in August 2013. In January 2013, ABATE filed an appeal with the Michigan Court of Appeals to dispute the MPSC’s conclusion that Consumers is eligible to recover the portion of the authorized recovery amount allocated to transport customers. | |
Consumers filed its final reconciliation of the gas revenue decoupling mechanism in August 2012, requesting recovery of $17 million from customers for the period June 2011 through April 2012. At September 30, 2013, Consumers had a $17 million regulatory asset recorded for gas revenue decoupling for that period. | |
Consumers Energy Company [Member] | |
Regulatory Matters | 1:REGULATORY MATTERS |
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could have a material adverse effect on CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. | |
There are multiple appeals pending that involve various issues concerning cost allocation among customers, the allocation of refunds among customer groups, the adequacy of the record evidence supporting the recovery of Smart Energy investments, and other matters. Consumers is unable to predict the outcome of these appeals. | |
Consumers Electric Utility | |
Electric Rate Cases: In June 2012, the MPSC authorized an annual rate increase of $118 million, based on a 10.3 percent authorized return on equity. Consumers filed an application in September 2012 requesting that the MPSC find that the total revenues collected during self-implementation did not exceed those that would have been collected under final rates. In March 2013, the MPSC approved a settlement agreement finding that no refund was required. | |
In September 2012, Consumers filed an application with the MPSC seeking an annual rate increase of $148 million, based on a 10.5 percent authorized return on equity, in order to recover new investment in system reliability, environmental compliance, and technology enhancements. In January 2013, Consumers supplemented its electric rate case application to reflect changes to its environmental compliance and generation outage plans, which reduced its requested annual rate increase to $145 million. In this filing, Consumers also sought approval of several rate adjustment mechanisms. | |
In March 2013, Consumers self-implemented an annual rate increase of $110 million out of its requested $145 million, subject to refund with interest. Consumers’ self-implementation required no order by the MSPC, and no intervenors in Consumers’ electric rate case opposed Consumers’ self-implementation amount. The MPSC approved a partial settlement agreement in May 2013, authorizing an annual rate increase of $89 million, based on a 10.3 percent authorized rate of return on equity. The rate adjustment mechanisms requested by Consumers were not approved. In June 2013, in connection with this electric rate case, the MPSC approved Consumers’ application for authority to continue the advance metering infrastructure program and implement a non‑transmitting meter provision. | |
In July 2013, Consumers filed a reconciliation of total revenues collected during self-implementation to those that would have been collected under final rates. Consumers’ reconciliation indicated that no refund would be required. | |
Electric Revenue Decoupling Mechanism: The MPSC’s 2009 order in Consumers’ electric rate case authorized Consumers to implement an electric revenue decoupling mechanism. This decoupling mechanism allowed Consumers to adjust future electric rates to the degree that actual average sales per customer differed from the rate order. The MPSC extended the electric revenue decoupling mechanism for a second year in its 2010 order in Consumers’ electric rate case. | |
In April 2012, the Michigan Court of Appeals ruled that the MPSC lacks statutory authority to approve or direct the use of a revenue decoupling mechanism for electric providers. Subsequently, in November 2012, the Michigan Court of Appeals ruled in an appeal of the MPSC’s 2010 order in Consumers’ electric rate case. The Court reversed the portion of the 2010 order related to Consumers’ electric revenue decoupling mechanism and remanded the case to the MPSC for further proceedings related to the revenue decoupling mechanism. In March 2013, the MSPC issued an order in the remand proceedings, stating that, with the exception of the authorization of the revenue decoupling mechanism, its 2010 order in Consumers’ electric rate case stands as issued. | |
Big Rock Nuclear Decommissioning: Consumers had recorded an $85 million regulatory asset for $30 million it paid to Entergy to assume ownership responsibility for the Big Rock ISFSI and for $55 million of nuclear fuel storage costs it incurred as a result of the DOE’s failure to accept nuclear fuel. Consumers filed a complaint against the DOE in 2002 for this failure. | |
In 2011, Consumers entered into an agreement with the DOE to settle its claims for $120 million. Consumers subsequently filed an application with the MPSC requesting authority to utilize $85 million of the settlement amount as recovery of its regulatory asset, and to refund to customers $23 million previously collected through rates for spent nuclear fuel costs. In December 2012, the MPSC approved this treatment, and Consumers refunded $23 million to customers over the six-month period from January 2013 through June 2013. Consumers recognized the remaining $12 million of the settlement as a reduction of maintenance and other operating expenses. In March 2013, a party filed an appeal with the Michigan Court of Appeals to dispute the MPSC’s December 2012 order. | |
Renewable Energy Plan: In January 2013, Consumers received a $69 million renewable energy grant for Lake Winds® Energy Park, which began operations in November 2012. The grant was received from the U.S. Department of Treasury under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. | |
As reflected in Consumers’ 2011 biennial renewable energy plan, which the MPSC approved in 2012, this grant reduces Consumers’ cost of complying with the renewable standards prescribed by the 2008 Energy Law and, accordingly, reduces the overall renewable energy surcharge to be collected from customers. At September 30, 2013, Consumers had a $68 million regulatory liability recorded for the grant. The regulatory liability will be amortized over the life of Lake Winds® Energy Park. | |
In May 2013, Consumers filed a revised renewable energy plan that reduced the size and cost of the Cross Winds® Energy Park. In June 2013, the MPSC issued an order approving Consumers’ 2011 renewable cost reconciliation filing. In July 2013, Consumers filed its 2012 renewable cost reconciliation and annual report. | |
Energy Optimization Plan: In May 2013, Consumers filed its fourth annual report and reconciliation for its energy optimization plan, requesting approval of its energy optimization plan costs for 2012. In October 2013, Consumers filed a settlement agreement, which, if approved, would authorize Consumers to collect $17 million from customers during 2014 as an incentive payment for exceeding statutory targets under both its gas and electric energy optimization plans during 2012. In August 2013, Consumers filed its energy optimization plan for the period 2014 through 2017 with the MPSC. | |
Consumers Gas Utility | |
Gas Revenue Decoupling Mechanism: The MPSC’s 2009 order in Consumers’ gas rate case authorized Consumers to implement a gas revenue decoupling mechanism. This mechanism, which the MPSC extended through April 2012 in its 2010 order in Consumers’ gas rate case, allowed Consumers to adjust future gas rates to the degree that actual average weather-adjusted sales per customer differed from the rate order. This mechanism was not affected by a separate Michigan Court of Appeals decision on electric revenue decoupling. | |
In December 2012, the MPSC approved Consumers’ reconciliation of the gas revenue decoupling mechanism for the period June 2010 through May 2011 and authorized recovery of $16 million over a three-month period that began in February 2013. Due to high customer deliveries during this three-month period, Consumers collected more than the amount authorized and refunded the over-collection in August 2013. In January 2013, ABATE filed an appeal with the Michigan Court of Appeals to dispute the MPSC’s conclusion that Consumers is eligible to recover the portion of the authorized recovery amount allocated to transport customers. | |
Consumers filed its final reconciliation of the gas revenue decoupling mechanism in August 2012, requesting recovery of $17 million from customers for the period June 2011 through April 2012. At September 30, 2013, Consumers had a $17 million regulatory asset recorded for gas revenue decoupling for that period. | |
Contingencies_And_Commitments
Contingencies And Commitments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Contingencies And Commitments | 2: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 have a material effect on CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. | |||||||||||||||||
CMS Energy Contingencies | |||||||||||||||||
Gas Index Price Reporting Investigation: In 2002, CMS Energy notified appropriate regulatory and governmental agencies that some employees at CMS MST and CMS Field Services appeared to have provided inaccurate information regarding natural gas trades to various energy industry publications which compile and report index prices. Although CMS Energy has not received any formal notification that the DOJ has completed its investigation, the DOJ’s last request for information occurred in 2003, and CMS Energy completed its response to this request in 2004. CMS Energy is unable to predict the outcome of the DOJ investigation and what effect, if any, the investigation will have on CMS Energy. | |||||||||||||||||
Gas Index Price Reporting Litigation: CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, have been named as defendants in various lawsuits arising as a result of alleged inaccurate natural gas price reporting to publications that report trade information. Allegations include manipulation of NYMEX natural gas futures and options prices, price-fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices in Kansas, Missouri, and Wisconsin. The following provides more detail on the cases in which CMS Energy affiliates remain as parties: | |||||||||||||||||
· | In 2005, CMS Energy, CMS MST, and CMS Field Services were named as defendants in a putative class action filed in Kansas state court, Learjet, Inc., et al. v. Oneok, Inc., et al. The complaint alleges that during the putative class period, January 1, 2000 through October 31, 2002, the defendants engaged in a scheme to violate the Kansas Restraint of Trade Act. The plaintiffs are seeking statutory full consideration damages consisting of the full consideration paid by plaintiffs for natural gas allegedly purchased from defendants. | ||||||||||||||||
· | In 2007, a class action complaint, Heartland Regional Medical Center, et al. v. Oneok, Inc. et al., was filed as a putative class action in Missouri state court alleging violations of Missouri antitrust laws. Defendants, including CMS Energy, CMS Field Services, and CMS MST, are alleged to have violated the Missouri antitrust law in connection with their natural gas reporting activities. Plaintiffs are seeking full consideration damages and treble damages. | ||||||||||||||||
· | A class action complaint, Arandell Corp., et al. v. XCEL Energy Inc., et al., was filed in 2006 in Wisconsin state court on behalf of Wisconsin commercial entities that purchased natural gas between January 1, 2000 and October 31, 2002. The defendants, including CMS Energy, CMS ERM, and Cantera Gas Company, are alleged to have violated Wisconsin’s antitrust statute. The plaintiffs are seeking full consideration damages, plus exemplary damages and attorneys’ fees. | ||||||||||||||||
· | Another class action complaint, Newpage Wisconsin System v. CMS ERM, et al., was filed in 2009 in circuit court in Wood County, Wisconsin, against CMS Energy, CMS ERM, Cantera Gas Company, and others. The plaintiff is seeking full consideration damages, treble damages, costs, interest, and attorneys’ fees. | ||||||||||||||||
· | In 2005, J.P. Morgan Trust Company, in its capacity as Trustee of the FLI Liquidating Trust, filed an action in Kansas state court against CMS Energy, CMS MST, CMS Field Services, and others. The complaint alleges various claims under the Kansas Restraint of Trade Act. The plaintiff is seeking statutory full consideration damages for its purchases of natural gas in 2000 and 2001. | ||||||||||||||||
After removal to federal court, all of the cases described above were transferred to the MDL. In 2010, CMS Energy and Cantera Gas Company were dismissed from the Newpage case. In 2011, all claims against remaining CMS Energy defendants in the MDL cases were dismissed based on FERC preemption. Plaintiffs filed appeals in all of the cases. The issues on appeal were whether the district court erred in dismissing the cases based on FERC preemption and denying the plaintiffs’ motions for leave to amend their complaints to add a federal Sherman Act antitrust claim. The plaintiffs did not appeal the dismissal of CMS Energy as a defendant in these cases, but other CMS Energy entities remain as defendants. | |||||||||||||||||
In April 2013, the U.S. Court of Appeals for the Ninth Circuit reversed the MDL decision and remanded the case to the MDL judge for further proceedings. The appellate court found that FERC preemption does not apply under the facts of these cases. The Court affirmed the MDL court’s denial of leave to amend to add federal antitrust claims. | |||||||||||||||||
In August 2013, the joint defense group in these cases, of which CMS Energy defendants are members, filed a petition with the U.S. Supreme Court in an attempt to overturn the decision of the U.S. Court of Appeals for the Ninth Circuit. Plaintiffs’ responses to the petition are due in late October 2013. | |||||||||||||||||
These cases involve complex facts, a large number of similarly situated defendants with different factual positions, and multiple jurisdictions. Presently, any estimate of liability would be highly speculative; the amount of CMS Energy’s possible loss would be based on widely varying models previously untested in this context. If the outcome after appeals is unfavorable, these cases could have a material adverse impact on CMS Energy’s liquidity, financial condition, and results of operations. | |||||||||||||||||
Bay Harbor: CMS Energy retained environmental remediation obligations for the collection and treatment of leachate, a liquid consisting of water and other substances, 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 Energy and the MDEQ finalized an agreement that established the final remedies and the future release criteria at the site. CMS Energy is in the process of completing 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 issued in 2010. This permit requires renewal every five years. | |||||||||||||||||
Various claims have been brought against CMS Land or its affiliates, including CMS Energy, alleging environmental damage to property, loss of property value, insufficient disclosure of environmental matters, breach of agreement relating to access, or other matters. In 2010, CMS Land and other parties received a demand for payment from the EPA in the amount of $7 million, plus interest, whereby the EPA is seeking recovery under Superfund of the EPA’s response costs incurred at the Bay Harbor site. CMS Land has communicated to the EPA that it does not believe that this is a valid claim. | |||||||||||||||||
CMS Energy has recorded a cumulative charge related to Bay Harbor of $228 million, which includes accretion expense. At September 30, 2013, CMS Energy had a recorded liability of $55 million for its remaining obligations. 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 $73 million. CMS Energy expects to pay $12 million in 2013, $4 million in each of 2014, 2015, 2016, and 2017, and the remaining amount thereafter on long-term liquid disposal and operating and maintenance costs. | |||||||||||||||||
CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are additional major changes in circumstances or assumptions, including but not limited to: | |||||||||||||||||
· | a significant increase in the cost of the present long-term water disposal strategy; | ||||||||||||||||
· | requirements to alter the present long-term water disposal strategy upon expiration of the NPDES permit if the MDEQ or EPA identify a more suitable alternative; | ||||||||||||||||
· | an increase in the number of contamination areas; | ||||||||||||||||
· | the nature and extent of contamination; | ||||||||||||||||
· | delays in the receipt of requested permits; | ||||||||||||||||
· | delays following the receipt of any requested permits due to legal appeals of third parties; | ||||||||||||||||
· | unanticipated difficulties in meeting the technical commitments in the agreement with the MDEQ; | ||||||||||||||||
· | additional or new legal or regulatory requirements; or | ||||||||||||||||
· | new or different landowner claims. | ||||||||||||||||
Depending on the size of any indemnity obligation or liability under environmental laws, an adverse outcome of this matter could have a material adverse effect on CMS Energy’s liquidity and financial condition and could negatively affect CMS Energy’s financial results. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. | |||||||||||||||||
Equatorial Guinea Tax Claim: In January 2002, CMS Energy sold its oil, gas, and methanol investments in Equatorial Guinea. The government of Equatorial Guinea claims that CMS Energy owes $142 million in taxes, plus penalties and interest, in connection with the sale. CMS Energy has concluded that the government’s tax claim is without merit. The government of Equatorial Guinea indicated through a request for arbitration in October 2011 that it still intends to pursue its claim. CMS Energy is vigorously contesting the claim, and cannot predict the financial impact or outcome of this matter. | |||||||||||||||||
Consumers Electric Utility Contingencies | |||||||||||||||||
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. | |||||||||||||||||
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites will be between $4 million and $6 million. At September 30, 2013, Consumers had a recorded liability of $4 million, the minimum amount in the range of its estimated probable NREPA liability. | |||||||||||||||||
Consumers is a potentially responsible party at a number of contaminated sites administered under Superfund. Superfund 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 Superfund site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In April 2011, Consumers received a follow‑up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. In August 2011, the EPA announced that it would proceed with the removal action plan and would continue to pursue potentially responsible parties to perform or pay for some or all of the work. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river. | |||||||||||||||||
Based on its experience, Consumers estimates that its share of the total liability for other known Superfund sites will be between $2 million and $8 million. Various factors, including the number of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At September 30, 2013, Consumers had a recorded liability of $2 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable Superfund liability. | |||||||||||||||||
The timing of payments related to Consumers’ remediation and other response activities at its Superfund and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. Any significant 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 Superfund liability. | |||||||||||||||||
Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed and replaced part of the PCB material with non‑PCB material. Consumers has had several communications with the EPA regarding this matter. Consumers is not able to predict when the EPA will issue a final ruling and cannot predict the financial impact or outcome of this matter. | |||||||||||||||||
Electric Utility Plant Air Permit Issues and Notices of Violation: In 2007, Consumers received an NOV/FOV from the EPA alleging that fourteen utility boilers exceeded the visible emission limits in their associated air permits. Consumers has responded formally to the NOV/FOV denying the allegations. In addition, in 2008, Consumers received an NOV for three of its coal-fueled facilities alleging, among other things, violations of NSR PSD regulations relating to ten projects from 1986 to 1998 allegedly subject to review under the NSR. The EPA has alleged that some utilities have classified incorrectly major plant modifications as RMRR rather than seeking permits from the EPA or state regulatory agencies to modify their plants. Consumers responded to the information requests from the EPA on this subject in the past. Consumers believes that it has properly interpreted the requirements of RMRR. | |||||||||||||||||
Consumers is engaged in discussions with the EPA on all of these matters. Depending upon the outcome of these discussions, the EPA could bring legal action against Consumers and/or Consumers could be required to install additional pollution control equipment at some or all of its coal-fueled electric generating plants, surrender emission allowances, engage in Environmental Mitigation Projects, and/or pay fines. Additionally, Consumers would need to assess the viability of continuing operations at certain plants. The potential costs relating to these matters could be material. Consumers expects that it would be able to recover some or all of the costs in rates, consistent with the recovery of other reasonable costs of complying with environmental laws and regulations, but cannot reasonably estimate the extent of cost recovery. Although Consumers cannot predict the financial impact or outcome of the entirety of these discussions, it does not expect any future loss from civil penalties and/or Environmental Mitigation Projects to be material. | |||||||||||||||||
Nuclear Matters: The matters discussed in this section relate to Consumers’ previously owned nuclear generating plants. Consumers no longer owns or operates any nuclear generating facilities. | |||||||||||||||||
Consumers filed a complaint in 2002 for damages resulting from the DOE’s failure to accept spent nuclear fuel from Palisades and Big Rock. In 2011, Consumers entered into an agreement with the DOE to settle its claims for $120 million. As part of this agreement, Consumers also settled its liability to the DOE to fund the disposal of spent nuclear fuel used at Palisades and Big Rock before 1983. In December 2012, the MPSC issued an order establishing the regulatory treatment of the settlement amount. In this order, the MPSC also relieved Consumers of its obligation to establish an independent trust fund for the amount that was payable to the DOE prior to the settlement. In March 2013, a party in this case filed an appeal with the Michigan Court of Appeals to dispute the December 2012 MPSC order. For further information, see Note 1, Regulatory Matters. | |||||||||||||||||
Renewable Energy Matters: In April 2013, a group of landowners filed a lawsuit alleging, among other things, personal injury and loss of property value and land use as a result of the operations of Lake Winds® Energy Park. Consumers cannot predict the ultimate financial impact or outcome of this matter. | |||||||||||||||||
Consumers Gas Utility Contingencies | |||||||||||||||||
Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. | |||||||||||||||||
At September 30, 2013, Consumers had a recorded liability of $121 million for its remaining obligations for these sites. This amount represents the present value of long-term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $131 million. Consumers expects to incur remediation and other response activity costs in 2013 and in each of the next four years as follows: | |||||||||||||||||
In Millions | |||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||
Consumers | |||||||||||||||||
Remediation and other response activity costs | $ | 8 | $ | 8 | $ | 12 | $ | 12 | $ | 9 | |||||||
Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability. | |||||||||||||||||
Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten-year period. At September 30, 2013, Consumers had a regulatory asset of $150 million related to the MGP sites. | |||||||||||||||||
Consumers Other Contingencies | |||||||||||||||||
Other Environmental Matters: Consumers initiated preliminary investigations during 2012 at a number of potentially contaminated sites it presently owns with the intention of determining whether any contamination exists and the extent of any identified contamination. The sites being investigated include combustion turbine sites, generating sites, compressor stations, and above-ground fuel storage tanks. Consumers will continue its preliminary investigations at potentially contaminated sites through 2013. Consumers cannot predict an outcome at this stage of the investigations. | |||||||||||||||||
Guarantees | |||||||||||||||||
Presented in the following table are CMS Energy’s and Consumers’ guarantees at September 30, 2013: | |||||||||||||||||
In Millions | |||||||||||||||||
Maximum | Carrying | ||||||||||||||||
Guarantee Description | Issue Date | Expiration Date | Obligation | Amount | |||||||||||||
CMS Energy, including Consumers | |||||||||||||||||
Indemnity obligations from asset sales | Various | Various through September 2029 | $ | 476 | 1 | $ | 16 | ||||||||||
and other agreements | |||||||||||||||||
Guarantees | Various | Various through March 2021 | 57 | - | |||||||||||||
Consumers | |||||||||||||||||
Indemnity obligations and other guarantees | Various | Various through September 2029 | $ | 30 | $ | 1 | |||||||||||
1 The majority of this amount arises from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy, other than Consumers, indemnified the purchaser for losses resulting from various matters, including claims related to tax disputes, claims related to power purchase agreements, and defects in title to the assets or stock sold to the purchaser by CMS Energy subsidiaries. Except for items described elsewhere in this Note, CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. | |||||||||||||||||
Presented in the following table is additional information regarding CMS Energy’s and Consumers’ guarantees: | |||||||||||||||||
Guarantee Description | How Guarantee Arose | Events That Would Require Performance | |||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||
Indemnity obligations from asset | Stock and asset sale | Findings of misrepresentation, | |||||||||||||||
sales and other agreements | agreements | breach of warranties, tax claims, and | |||||||||||||||
other specific events or | |||||||||||||||||
circumstances | |||||||||||||||||
Guarantees | Normal operating | Nonperformance or non-payment by a | |||||||||||||||
activity | subsidiary under a related contract | ||||||||||||||||
Consumers | |||||||||||||||||
Indemnity obligations and | Normal operating | Nonperformance or claims made by a third | |||||||||||||||
other guarantees | activity | party under a related contract | |||||||||||||||
CMS Energy, Consumers, and certain other subsidiaries of CMS Energy also enter into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. These factors include unspecified exposure under certain agreements. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote. | |||||||||||||||||
Other Contingencies | |||||||||||||||||
Other: 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 arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits and proceedings 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 will not have a material adverse effect on their consolidated results of operations, financial condition, or liquidity. | |||||||||||||||||
Consumers Energy Company [Member] | |||||||||||||||||
Contingencies And Commitments | 2: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 have a material effect on CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. | |||||||||||||||||
CMS Energy Contingencies | |||||||||||||||||
Gas Index Price Reporting Investigation: In 2002, CMS Energy notified appropriate regulatory and governmental agencies that some employees at CMS MST and CMS Field Services appeared to have provided inaccurate information regarding natural gas trades to various energy industry publications which compile and report index prices. Although CMS Energy has not received any formal notification that the DOJ has completed its investigation, the DOJ’s last request for information occurred in 2003, and CMS Energy completed its response to this request in 2004. CMS Energy is unable to predict the outcome of the DOJ investigation and what effect, if any, the investigation will have on CMS Energy. | |||||||||||||||||
Gas Index Price Reporting Litigation: CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, have been named as defendants in various lawsuits arising as a result of alleged inaccurate natural gas price reporting to publications that report trade information. Allegations include manipulation of NYMEX natural gas futures and options prices, price-fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices in Kansas, Missouri, and Wisconsin. The following provides more detail on the cases in which CMS Energy affiliates remain as parties: | |||||||||||||||||
· | In 2005, CMS Energy, CMS MST, and CMS Field Services were named as defendants in a putative class action filed in Kansas state court, Learjet, Inc., et al. v. Oneok, Inc., et al. The complaint alleges that during the putative class period, January 1, 2000 through October 31, 2002, the defendants engaged in a scheme to violate the Kansas Restraint of Trade Act. The plaintiffs are seeking statutory full consideration damages consisting of the full consideration paid by plaintiffs for natural gas allegedly purchased from defendants. | ||||||||||||||||
· | In 2007, a class action complaint, Heartland Regional Medical Center, et al. v. Oneok, Inc. et al., was filed as a putative class action in Missouri state court alleging violations of Missouri antitrust laws. Defendants, including CMS Energy, CMS Field Services, and CMS MST, are alleged to have violated the Missouri antitrust law in connection with their natural gas reporting activities. Plaintiffs are seeking full consideration damages and treble damages. | ||||||||||||||||
· | A class action complaint, Arandell Corp., et al. v. XCEL Energy Inc., et al., was filed in 2006 in Wisconsin state court on behalf of Wisconsin commercial entities that purchased natural gas between January 1, 2000 and October 31, 2002. The defendants, including CMS Energy, CMS ERM, and Cantera Gas Company, are alleged to have violated Wisconsin’s antitrust statute. The plaintiffs are seeking full consideration damages, plus exemplary damages and attorneys’ fees. | ||||||||||||||||
· | Another class action complaint, Newpage Wisconsin System v. CMS ERM, et al., was filed in 2009 in circuit court in Wood County, Wisconsin, against CMS Energy, CMS ERM, Cantera Gas Company, and others. The plaintiff is seeking full consideration damages, treble damages, costs, interest, and attorneys’ fees. | ||||||||||||||||
· | In 2005, J.P. Morgan Trust Company, in its capacity as Trustee of the FLI Liquidating Trust, filed an action in Kansas state court against CMS Energy, CMS MST, CMS Field Services, and others. The complaint alleges various claims under the Kansas Restraint of Trade Act. The plaintiff is seeking statutory full consideration damages for its purchases of natural gas in 2000 and 2001. | ||||||||||||||||
After removal to federal court, all of the cases described above were transferred to the MDL. In 2010, CMS Energy and Cantera Gas Company were dismissed from the Newpage case. In 2011, all claims against remaining CMS Energy defendants in the MDL cases were dismissed based on FERC preemption. Plaintiffs filed appeals in all of the cases. The issues on appeal were whether the district court erred in dismissing the cases based on FERC preemption and denying the plaintiffs’ motions for leave to amend their complaints to add a federal Sherman Act antitrust claim. The plaintiffs did not appeal the dismissal of CMS Energy as a defendant in these cases, but other CMS Energy entities remain as defendants. | |||||||||||||||||
In April 2013, the U.S. Court of Appeals for the Ninth Circuit reversed the MDL decision and remanded the case to the MDL judge for further proceedings. The appellate court found that FERC preemption does not apply under the facts of these cases. The Court affirmed the MDL court’s denial of leave to amend to add federal antitrust claims. | |||||||||||||||||
In August 2013, the joint defense group in these cases, of which CMS Energy defendants are members, filed a petition with the U.S. Supreme Court in an attempt to overturn the decision of the U.S. Court of Appeals for the Ninth Circuit. Plaintiffs’ responses to the petition are due in late October 2013. | |||||||||||||||||
These cases involve complex facts, a large number of similarly situated defendants with different factual positions, and multiple jurisdictions. Presently, any estimate of liability would be highly speculative; the amount of CMS Energy’s possible loss would be based on widely varying models previously untested in this context. If the outcome after appeals is unfavorable, these cases could have a material adverse impact on CMS Energy’s liquidity, financial condition, and results of operations. | |||||||||||||||||
Bay Harbor: CMS Energy retained environmental remediation obligations for the collection and treatment of leachate, a liquid consisting of water and other substances, 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 Energy and the MDEQ finalized an agreement that established the final remedies and the future release criteria at the site. CMS Energy is in the process of completing 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 issued in 2010. This permit requires renewal every five years. | |||||||||||||||||
Various claims have been brought against CMS Land or its affiliates, including CMS Energy, alleging environmental damage to property, loss of property value, insufficient disclosure of environmental matters, breach of agreement relating to access, or other matters. In 2010, CMS Land and other parties received a demand for payment from the EPA in the amount of $7 million, plus interest, whereby the EPA is seeking recovery under Superfund of the EPA’s response costs incurred at the Bay Harbor site. CMS Land has communicated to the EPA that it does not believe that this is a valid claim. | |||||||||||||||||
CMS Energy has recorded a cumulative charge related to Bay Harbor of $228 million, which includes accretion expense. At September 30, 2013, CMS Energy had a recorded liability of $55 million for its remaining obligations. 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 $73 million. CMS Energy expects to pay $12 million in 2013, $4 million in each of 2014, 2015, 2016, and 2017, and the remaining amount thereafter on long-term liquid disposal and operating and maintenance costs. | |||||||||||||||||
CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are additional major changes in circumstances or assumptions, including but not limited to: | |||||||||||||||||
· | a significant increase in the cost of the present long-term water disposal strategy; | ||||||||||||||||
· | requirements to alter the present long-term water disposal strategy upon expiration of the NPDES permit if the MDEQ or EPA identify a more suitable alternative; | ||||||||||||||||
· | an increase in the number of contamination areas; | ||||||||||||||||
· | the nature and extent of contamination; | ||||||||||||||||
· | delays in the receipt of requested permits; | ||||||||||||||||
· | delays following the receipt of any requested permits due to legal appeals of third parties; | ||||||||||||||||
· | unanticipated difficulties in meeting the technical commitments in the agreement with the MDEQ; | ||||||||||||||||
· | additional or new legal or regulatory requirements; or | ||||||||||||||||
· | new or different landowner claims. | ||||||||||||||||
Depending on the size of any indemnity obligation or liability under environmental laws, an adverse outcome of this matter could have a material adverse effect on CMS Energy’s liquidity and financial condition and could negatively affect CMS Energy’s financial results. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. | |||||||||||||||||
Equatorial Guinea Tax Claim: In January 2002, CMS Energy sold its oil, gas, and methanol investments in Equatorial Guinea. The government of Equatorial Guinea claims that CMS Energy owes $142 million in taxes, plus penalties and interest, in connection with the sale. CMS Energy has concluded that the government’s tax claim is without merit. The government of Equatorial Guinea indicated through a request for arbitration in October 2011 that it still intends to pursue its claim. CMS Energy is vigorously contesting the claim, and cannot predict the financial impact or outcome of this matter. | |||||||||||||||||
Consumers Electric Utility Contingencies | |||||||||||||||||
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. | |||||||||||||||||
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites will be between $4 million and $6 million. At September 30, 2013, Consumers had a recorded liability of $4 million, the minimum amount in the range of its estimated probable NREPA liability. | |||||||||||||||||
Consumers is a potentially responsible party at a number of contaminated sites administered under Superfund. Superfund 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 Superfund site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In April 2011, Consumers received a follow‑up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. In August 2011, the EPA announced that it would proceed with the removal action plan and would continue to pursue potentially responsible parties to perform or pay for some or all of the work. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river. | |||||||||||||||||
Based on its experience, Consumers estimates that its share of the total liability for other known Superfund sites will be between $2 million and $8 million. Various factors, including the number of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At September 30, 2013, Consumers had a recorded liability of $2 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable Superfund liability. | |||||||||||||||||
The timing of payments related to Consumers’ remediation and other response activities at its Superfund and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. Any significant 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 Superfund liability. | |||||||||||||||||
Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed and replaced part of the PCB material with non‑PCB material. Consumers has had several communications with the EPA regarding this matter. Consumers is not able to predict when the EPA will issue a final ruling and cannot predict the financial impact or outcome of this matter. | |||||||||||||||||
Electric Utility Plant Air Permit Issues and Notices of Violation: In 2007, Consumers received an NOV/FOV from the EPA alleging that fourteen utility boilers exceeded the visible emission limits in their associated air permits. Consumers has responded formally to the NOV/FOV denying the allegations. In addition, in 2008, Consumers received an NOV for three of its coal-fueled facilities alleging, among other things, violations of NSR PSD regulations relating to ten projects from 1986 to 1998 allegedly subject to review under the NSR. The EPA has alleged that some utilities have classified incorrectly major plant modifications as RMRR rather than seeking permits from the EPA or state regulatory agencies to modify their plants. Consumers responded to the information requests from the EPA on this subject in the past. Consumers believes that it has properly interpreted the requirements of RMRR. | |||||||||||||||||
Consumers is engaged in discussions with the EPA on all of these matters. Depending upon the outcome of these discussions, the EPA could bring legal action against Consumers and/or Consumers could be required to install additional pollution control equipment at some or all of its coal-fueled electric generating plants, surrender emission allowances, engage in Environmental Mitigation Projects, and/or pay fines. Additionally, Consumers would need to assess the viability of continuing operations at certain plants. The potential costs relating to these matters could be material. Consumers expects that it would be able to recover some or all of the costs in rates, consistent with the recovery of other reasonable costs of complying with environmental laws and regulations, but cannot reasonably estimate the extent of cost recovery. Although Consumers cannot predict the financial impact or outcome of the entirety of these discussions, it does not expect any future loss from civil penalties and/or Environmental Mitigation Projects to be material. | |||||||||||||||||
Nuclear Matters: The matters discussed in this section relate to Consumers’ previously owned nuclear generating plants. Consumers no longer owns or operates any nuclear generating facilities. | |||||||||||||||||
Consumers filed a complaint in 2002 for damages resulting from the DOE’s failure to accept spent nuclear fuel from Palisades and Big Rock. In 2011, Consumers entered into an agreement with the DOE to settle its claims for $120 million. As part of this agreement, Consumers also settled its liability to the DOE to fund the disposal of spent nuclear fuel used at Palisades and Big Rock before 1983. In December 2012, the MPSC issued an order establishing the regulatory treatment of the settlement amount. In this order, the MPSC also relieved Consumers of its obligation to establish an independent trust fund for the amount that was payable to the DOE prior to the settlement. In March 2013, a party in this case filed an appeal with the Michigan Court of Appeals to dispute the December 2012 MPSC order. For further information, see Note 1, Regulatory Matters. | |||||||||||||||||
Renewable Energy Matters: In April 2013, a group of landowners filed a lawsuit alleging, among other things, personal injury and loss of property value and land use as a result of the operations of Lake Winds® Energy Park. Consumers cannot predict the ultimate financial impact or outcome of this matter. | |||||||||||||||||
Consumers Gas Utility Contingencies | |||||||||||||||||
Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. | |||||||||||||||||
At September 30, 2013, Consumers had a recorded liability of $121 million for its remaining obligations for these sites. This amount represents the present value of long-term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $131 million. Consumers expects to incur remediation and other response activity costs in 2013 and in each of the next four years as follows: | |||||||||||||||||
In Millions | |||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||
Consumers | |||||||||||||||||
Remediation and other response activity costs | $ | 8 | $ | 8 | $ | 12 | $ | 12 | $ | 9 | |||||||
Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability. | |||||||||||||||||
Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten-year period. At September 30, 2013, Consumers had a regulatory asset of $150 million related to the MGP sites. | |||||||||||||||||
Consumers Other Contingencies | |||||||||||||||||
Other Environmental Matters: Consumers initiated preliminary investigations during 2012 at a number of potentially contaminated sites it presently owns with the intention of determining whether any contamination exists and the extent of any identified contamination. The sites being investigated include combustion turbine sites, generating sites, compressor stations, and above-ground fuel storage tanks. Consumers will continue its preliminary investigations at potentially contaminated sites through 2013. Consumers cannot predict an outcome at this stage of the investigations. | |||||||||||||||||
Guarantees | |||||||||||||||||
Presented in the following table are CMS Energy’s and Consumers’ guarantees at September 30, 2013: | |||||||||||||||||
In Millions | |||||||||||||||||
Maximum | Carrying | ||||||||||||||||
Guarantee Description | Issue Date | Expiration Date | Obligation | Amount | |||||||||||||
CMS Energy, including Consumers | |||||||||||||||||
Indemnity obligations from asset sales | Various | Various through September 2029 | $ | 476 | 1 | $ | 16 | ||||||||||
and other agreements | |||||||||||||||||
Guarantees | Various | Various through March 2021 | 57 | - | |||||||||||||
Consumers | |||||||||||||||||
Indemnity obligations and other guarantees | Various | Various through September 2029 | $ | 30 | $ | 1 | |||||||||||
1 The majority of this amount arises from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy, other than Consumers, indemnified the purchaser for losses resulting from various matters, including claims related to tax disputes, claims related to power purchase agreements, and defects in title to the assets or stock sold to the purchaser by CMS Energy subsidiaries. Except for items described elsewhere in this Note, CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. | |||||||||||||||||
Presented in the following table is additional information regarding CMS Energy’s and Consumers’ guarantees: | |||||||||||||||||
Guarantee Description | How Guarantee Arose | Events That Would Require Performance | |||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||
Indemnity obligations from asset | Stock and asset sale | Findings of misrepresentation, | |||||||||||||||
sales and other agreements | agreements | breach of warranties, tax claims, and | |||||||||||||||
other specific events or | |||||||||||||||||
circumstances | |||||||||||||||||
Guarantees | Normal operating | Nonperformance or non-payment by a | |||||||||||||||
activity | subsidiary under a related contract | ||||||||||||||||
Consumers | |||||||||||||||||
Indemnity obligations and | Normal operating | Nonperformance or claims made by a third | |||||||||||||||
other guarantees | activity | party under a related contract | |||||||||||||||
CMS Energy, Consumers, and certain other subsidiaries of CMS Energy also enter into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. These factors include unspecified exposure under certain agreements. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote. | |||||||||||||||||
Other Contingencies | |||||||||||||||||
Other: 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 arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits and proceedings 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 will not have a material adverse effect on their consolidated results of operations, financial condition, or liquidity. | |||||||||||||||||
Financings_And_Capitalization
Financings And Capitalization | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Financings And Capitalization | 3:FINANCINGS AND CAPITALIZATION | |||||||||||||
Presented in the following table is a summary of major long-term debt transactions during the nine months ended September 30, 2013: | ||||||||||||||
Principal | Issue/Retirement | |||||||||||||
(In Millions) | Interest Rate | Date | Maturity Date | |||||||||||
Debt issuances | ||||||||||||||
CMS Energy | ||||||||||||||
Senior notes | $ | 250 | 4.700 | % | March 2013 | March 2043 | ||||||||
Total CMS Energy parent | $ | 250 | ||||||||||||
Consumers | ||||||||||||||
FMBs | $ | 425 | 3.950 | % | May-13 | May-43 | ||||||||
FMBs | 325 | 3.375 | Aug-13 | Aug-23 | ||||||||||
Total Consumers | $ | 750 | ||||||||||||
Total debt issuances | $ | 1,000 | ||||||||||||
Debt retirements | ||||||||||||||
CMS Energy | ||||||||||||||
Senior notes | $ | 250 | 2.750 | % | Sep-13 | May-14 | ||||||||
Total CMS Energy parent | $ | 250 | ||||||||||||
Consumers | ||||||||||||||
FMBs | $ | 200 | 6.000 | % | Jun-13 | Feb-14 | ||||||||
FMBs | 225 | 5.000 | Jun-13 | Mar-15 | ||||||||||
Total Consumers | $ | 425 | ||||||||||||
Total debt retirements | $ | 675 | ||||||||||||
Revolving Credit Facilities: The following secured revolving credit facilities with banks were available at September 30, 2013: | ||||||||||||||
In Millions | ||||||||||||||
Letters of Credit | ||||||||||||||
Expiration Date | Amount of Facility | Amount Borrowed | Outstanding | Amount Available | ||||||||||
CMS Energy | ||||||||||||||
December 21, 20171 | $ | 550 | $ | 25 | $ | 2 | $ | 523 | ||||||
Consumers | ||||||||||||||
December 21, 20172 | $ | 500 | $ | - | $ | - | $ | 500 | ||||||
April 18, 20172 | 150 | - | - | 150 | ||||||||||
September 9, 20142 | 30 | - | 30 | - | ||||||||||
1 Obligations under this facility are secured by Consumers common stock. | ||||||||||||||
2 Obligations under this facility are secured by FMBs of Consumers. | ||||||||||||||
Short-term Borrowings: Under Consumers’ revolving accounts receivable sales program, Consumers may transfer up to $250 million of accounts receivable, subject to certain eligibility requirements. These transactions are accounted for as short-term secured borrowings. At September 30, 2013, $250 million of accounts receivable were eligible for transfer. During the nine months ended September 30, 2013, Consumers’ average short-term borrowings totaled $7 million, with a weighted-average annual interest rate of 0.94 percent. | ||||||||||||||
Contingently Convertible Securities: Presented in the following table are the significant terms of CMS Energy’s contingently convertible securities at September 30, 2013: | ||||||||||||||
Outstanding | Adjusted | Adjusted | ||||||||||||
Security | Maturity | (In Millions) | Conversion Price | Trigger Price | ||||||||||
5.50% senior notes | 2029 | $ | 172 | $ | 13.74 | $ | 17.86 | |||||||
During 20 of the last 30 trading days ended September 30, 2013, the adjusted trigger-price contingencies were met for the contingently convertible senior notes, and as a result, the senior notes are convertible at the option of the note holders for the three months ending December 31, 2013. The senior notes, if converted, require CMS Energy to pay cash up to the principal amount of the securities. Any conversion value in excess of the principal amount can be paid in cash or in shares of CMS Energy’s common stock, at the election of CMS Energy. | ||||||||||||||
Dividend Restrictions: Under provisions of the Michigan Business Corporation Act, at September 30, 2013, payment of common stock dividends by CMS Energy was limited to $3.4 billion. | ||||||||||||||
Under the provisions of its articles of incorporation, at September 30, 2013, Consumers had $650 million of unrestricted retained earnings available to pay common stock dividends 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 common stock dividends from Consumers would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay common stock dividends in excess of retained earnings would be based on specific facts and circumstances and would result only after a formal regulatory filing process. | ||||||||||||||
For the nine months ended September 30, 2013, CMS Energy received $300 million of common stock dividends from Consumers. | ||||||||||||||
Issuance of Common Stock: CMS Energy has entered into two continuous equity offering programs permitting it to sell, from time to time in “at the market” offerings, common stock having an aggregate sales price of up to $50 million per program. | ||||||||||||||
Presented in the following table are the transactions that CMS Energy entered into under the first program: | ||||||||||||||
Number of | Average | Proceeds | ||||||||||||
Shares Issued | Price per Share | (In Millions) | ||||||||||||
Jun-11 | 762,925 | $ | 19.66 | $ | 15 | |||||||||
Jun-12 | 650,235 | 23.07 | 15 | |||||||||||
Mar-13 | 735,873 | 27.18 | 20 | |||||||||||
Total | 2,149,033 | $ | 23.27 | $ | 50 | |||||||||
In April 2013, CMS Energy entered into the second continuous equity offering program, but has not yet issued any equity under this program. | ||||||||||||||
Preferred Stock: In May 2013, Consumers gave notice of the mandatory redemption of all of its $4.16 preferred stock. Holders of record as of June 3, 2013 received a redemption price of $103.25 per share, payable July 1, 2013, which represented an aggregate redemption price of $7 million paid to redeem the 68,451 outstanding shares. | ||||||||||||||
Consumers Energy Company [Member] | ||||||||||||||
Financings And Capitalization | 3:FINANCINGS AND CAPITALIZATION | |||||||||||||
Presented in the following table is a summary of major long-term debt transactions during the nine months ended September 30, 2013: | ||||||||||||||
Principal | Issue/Retirement | |||||||||||||
(In Millions) | Interest Rate | Date | Maturity Date | |||||||||||
Debt issuances | ||||||||||||||
CMS Energy | ||||||||||||||
Senior notes | $ | 250 | 4.700 | % | March 2013 | March 2043 | ||||||||
Total CMS Energy parent | $ | 250 | ||||||||||||
Consumers | ||||||||||||||
FMBs | $ | 425 | 3.950 | % | May-13 | May-43 | ||||||||
FMBs | 325 | 3.375 | Aug-13 | Aug-23 | ||||||||||
Total Consumers | $ | 750 | ||||||||||||
Total debt issuances | $ | 1,000 | ||||||||||||
Debt retirements | ||||||||||||||
CMS Energy | ||||||||||||||
Senior notes | $ | 250 | 2.750 | % | Sep-13 | May-14 | ||||||||
Total CMS Energy parent | $ | 250 | ||||||||||||
Consumers | ||||||||||||||
FMBs | $ | 200 | 6.000 | % | Jun-13 | Feb-14 | ||||||||
FMBs | 225 | 5.000 | Jun-13 | Mar-15 | ||||||||||
Total Consumers | $ | 425 | ||||||||||||
Total debt retirements | $ | 675 | ||||||||||||
Revolving Credit Facilities: The following secured revolving credit facilities with banks were available at September 30, 2013: | ||||||||||||||
In Millions | ||||||||||||||
Letters of Credit | ||||||||||||||
Expiration Date | Amount of Facility | Amount Borrowed | Outstanding | Amount Available | ||||||||||
CMS Energy | ||||||||||||||
December 21, 20171 | $ | 550 | $ | 25 | $ | 2 | $ | 523 | ||||||
Consumers | ||||||||||||||
December 21, 20172 | $ | 500 | $ | - | $ | - | $ | 500 | ||||||
April 18, 20172 | 150 | - | - | 150 | ||||||||||
September 9, 20142 | 30 | - | 30 | - | ||||||||||
1 Obligations under this facility are secured by Consumers common stock. | ||||||||||||||
2 Obligations under this facility are secured by FMBs of Consumers. | ||||||||||||||
Short-term Borrowings: Under Consumers’ revolving accounts receivable sales program, Consumers may transfer up to $250 million of accounts receivable, subject to certain eligibility requirements. These transactions are accounted for as short-term secured borrowings. At September 30, 2013, $250 million of accounts receivable were eligible for transfer. During the nine months ended September 30, 2013, Consumers’ average short-term borrowings totaled $7 million, with a weighted-average annual interest rate of 0.94 percent. | ||||||||||||||
Contingently Convertible Securities: Presented in the following table are the significant terms of CMS Energy’s contingently convertible securities at September 30, 2013: | ||||||||||||||
Outstanding | Adjusted | Adjusted | ||||||||||||
Security | Maturity | (In Millions) | Conversion Price | Trigger Price | ||||||||||
5.50% senior notes | 2029 | $ | 172 | $ | 13.74 | $ | 17.86 | |||||||
During 20 of the last 30 trading days ended September 30, 2013, the adjusted trigger-price contingencies were met for the contingently convertible senior notes, and as a result, the senior notes are convertible at the option of the note holders for the three months ending December 31, 2013. The senior notes, if converted, require CMS Energy to pay cash up to the principal amount of the securities. Any conversion value in excess of the principal amount can be paid in cash or in shares of CMS Energy’s common stock, at the election of CMS Energy. | ||||||||||||||
Dividend Restrictions: Under provisions of the Michigan Business Corporation Act, at September 30, 2013, payment of common stock dividends by CMS Energy was limited to $3.4 billion. | ||||||||||||||
Under the provisions of its articles of incorporation, at September 30, 2013, Consumers had $650 million of unrestricted retained earnings available to pay common stock dividends 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 common stock dividends from Consumers would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay common stock dividends in excess of retained earnings would be based on specific facts and circumstances and would result only after a formal regulatory filing process. | ||||||||||||||
For the nine months ended September 30, 2013, CMS Energy received $300 million of common stock dividends from Consumers. | ||||||||||||||
Issuance of Common Stock: CMS Energy has entered into two continuous equity offering programs permitting it to sell, from time to time in “at the market” offerings, common stock having an aggregate sales price of up to $50 million per program. | ||||||||||||||
Presented in the following table are the transactions that CMS Energy entered into under the first program: | ||||||||||||||
Number of | Average | Proceeds | ||||||||||||
Shares Issued | Price per Share | (In Millions) | ||||||||||||
Jun-11 | 762,925 | $ | 19.66 | $ | 15 | |||||||||
Jun-12 | 650,235 | 23.07 | 15 | |||||||||||
Mar-13 | 735,873 | 27.18 | 20 | |||||||||||
Total | 2,149,033 | $ | 23.27 | $ | 50 | |||||||||
In April 2013, CMS Energy entered into the second continuous equity offering program, but has not yet issued any equity under this program. | ||||||||||||||
Preferred Stock: In May 2013, Consumers gave notice of the mandatory redemption of all of its $4.16 preferred stock. Holders of record as of June 3, 2013 received a redemption price of $103.25 per share, payable July 1, 2013, which represented an aggregate redemption price of $7 million paid to redeem the 68,451 outstanding shares. | ||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Fair Value Measurements | 4: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. | ||||||||||||||||||||||||||
To the extent possible, CMS Energy and Consumers use quoted market prices or other observable market pricing data in valuing assets and liabilities measured at fair value. If this information is unavailable, they use market-corroborated data or reasonable estimates about market participant assumptions. 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, by level within the fair value hierarchy, recorded at fair value on a recurring basis: | |||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||
Level | Level | ||||||||||||||||||||||||||
Total | 1 | 2 | 3 | Total | 1 | 2 | 3 | ||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Cash equivalents | $ | 100 | $ | 100 | $ | - | $ | - | $ | 53 | $ | 53 | $ | - | $ | - | |||||||||||
Restricted cash equivalents | 14 | 14 | - | - | 14 | 14 | - | - | |||||||||||||||||||
Nonqualified deferred | 6 | 6 | - | - | 5 | 5 | - | - | |||||||||||||||||||
compensation plan assets | |||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||
Cash equivalents | - | - | - | - | 2 | 2 | - | - | |||||||||||||||||||
Mutual funds | 137 | 137 | - | - | 126 | 126 | - | - | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 9 | - | 2 | 7 | 3 | - | - | 3 | |||||||||||||||||||
Total | $ | 266 | $ | 257 | $ | 2 | $ | 7 | $ | 203 | $ | 200 | $ | - | $ | 3 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Nonqualified deferred | $ | 6 | $ | 6 | $ | - | $ | - | $ | 5 | $ | 5 | $ | - | $ | - | |||||||||||
compensation plan liabilities | |||||||||||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 2 | - | 1 | 1 | 4 | - | 3 | 1 | |||||||||||||||||||
Total | $ | 8 | $ | 6 | $ | 1 | $ | 1 | $ | 9 | $ | 5 | $ | 3 | $ | 1 | |||||||||||
Consumers | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Cash equivalents | $ | 84 | $ | 84 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Restricted cash equivalents | 13 | 13 | - | - | 13 | 13 | - | - | |||||||||||||||||||
CMS Energy common stock | 29 | 29 | - | - | 32 | 32 | - | - | |||||||||||||||||||
Nonqualified deferred | 4 | 4 | - | - | 4 | 4 | - | - | |||||||||||||||||||
compensation plan assets | |||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||
Cash equivalents | - | - | - | - | 1 | 1 | - | - | |||||||||||||||||||
Mutual funds | 96 | 96 | - | - | 85 | 85 | - | - | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 6 | - | - | 6 | 2 | - | - | 2 | |||||||||||||||||||
Total | $ | 232 | $ | 226 | $ | - | $ | 6 | $ | 137 | $ | 135 | $ | - | $ | 2 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Nonqualified deferred | $ | 4 | $ | 4 | $ | - | $ | - | $ | 4 | $ | 4 | $ | - | $ | - | |||||||||||
compensation plan liabilities | |||||||||||||||||||||||||||
Total | $ | 4 | $ | 4 | $ | - | $ | - | $ | 4 | $ | 4 | $ | - | $ | - | |||||||||||
Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity. Short-term debt instruments classified as cash equivalents or restricted cash equivalents on the consolidated balance sheets are not included since they are recorded at amortized cost. | |||||||||||||||||||||||||||
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted NAVs that are publicly available and are the basis for transactions to buy or sell shares in each fund. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect what is 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. | |||||||||||||||||||||||||||
DB SERP Assets: CMS Energy and Consumers value their DB SERP assets using a market approach that incorporates quoted market prices. The DB SERP cash equivalents consist of a money market fund with daily liquidity. The DB SERP invests in mutual funds that hold primarily fixed-income instruments of varying maturities. In order to meet their investment objectives, the funds hold investment-grade debt securities, and may invest a portion of their assets in high-yield securities, foreign debt, and derivative instruments. CMS Energy and Consumers value these funds using the daily quoted NAVs that are publicly available and are the basis for transactions to buy or sell shares in each fund. CMS Energy and Consumers report their DB SERP assets in other non‑current assets on their consolidated balance sheets. For additional details about DB SERP securities, see Note 5, Financial Instruments. | |||||||||||||||||||||||||||
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 values its exchange-traded derivative contracts based on Level 1 quoted prices and values other derivatives using Level 2 inputs, including commodity forward prices and credit risk factors. CMS Energy and Consumers have classified certain derivatives as Level 3 since the fair value measurements incorporate assumptions that cannot be observed or confirmed through market transactions. | |||||||||||||||||||||||||||
The most significant derivatives classified as Level 3 are FTRs held by Consumers. Consumers uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. FTRs are accounted for as derivatives. Under regulatory accounting, all changes in fair value associated with FTRs are deferred as regulatory assets or liabilities until the instruments are settled. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. | |||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Level 3 Inputs | |||||||||||||||||||||||||||
The largest change in the fair values of Level 3 assets and liabilities at CMS Energy and Consumers during the three and nine months ended September 30, 2013 and 2012 was attributable to the FTRs. | |||||||||||||||||||||||||||
Consumers Energy Company [Member] | |||||||||||||||||||||||||||
Fair Value Measurements | 4: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. | ||||||||||||||||||||||||||
To the extent possible, CMS Energy and Consumers use quoted market prices or other observable market pricing data in valuing assets and liabilities measured at fair value. If this information is unavailable, they use market-corroborated data or reasonable estimates about market participant assumptions. 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, by level within the fair value hierarchy, recorded at fair value on a recurring basis: | |||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||
Level | Level | ||||||||||||||||||||||||||
Total | 1 | 2 | 3 | Total | 1 | 2 | 3 | ||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Cash equivalents | $ | 100 | $ | 100 | $ | - | $ | - | $ | 53 | $ | 53 | $ | - | $ | - | |||||||||||
Restricted cash equivalents | 14 | 14 | - | - | 14 | 14 | - | - | |||||||||||||||||||
Nonqualified deferred | 6 | 6 | - | - | 5 | 5 | - | - | |||||||||||||||||||
compensation plan assets | |||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||
Cash equivalents | - | - | - | - | 2 | 2 | - | - | |||||||||||||||||||
Mutual funds | 137 | 137 | - | - | 126 | 126 | - | - | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 9 | - | 2 | 7 | 3 | - | - | 3 | |||||||||||||||||||
Total | $ | 266 | $ | 257 | $ | 2 | $ | 7 | $ | 203 | $ | 200 | $ | - | $ | 3 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Nonqualified deferred | $ | 6 | $ | 6 | $ | - | $ | - | $ | 5 | $ | 5 | $ | - | $ | - | |||||||||||
compensation plan liabilities | |||||||||||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 2 | - | 1 | 1 | 4 | - | 3 | 1 | |||||||||||||||||||
Total | $ | 8 | $ | 6 | $ | 1 | $ | 1 | $ | 9 | $ | 5 | $ | 3 | $ | 1 | |||||||||||
Consumers | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Cash equivalents | $ | 84 | $ | 84 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Restricted cash equivalents | 13 | 13 | - | - | 13 | 13 | - | - | |||||||||||||||||||
CMS Energy common stock | 29 | 29 | - | - | 32 | 32 | - | - | |||||||||||||||||||
Nonqualified deferred | 4 | 4 | - | - | 4 | 4 | - | - | |||||||||||||||||||
compensation plan assets | |||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||
Cash equivalents | - | - | - | - | 1 | 1 | - | - | |||||||||||||||||||
Mutual funds | 96 | 96 | - | - | 85 | 85 | - | - | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 6 | - | - | 6 | 2 | - | - | 2 | |||||||||||||||||||
Total | $ | 232 | $ | 226 | $ | - | $ | 6 | $ | 137 | $ | 135 | $ | - | $ | 2 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Nonqualified deferred | $ | 4 | $ | 4 | $ | - | $ | - | $ | 4 | $ | 4 | $ | - | $ | - | |||||||||||
compensation plan liabilities | |||||||||||||||||||||||||||
Total | $ | 4 | $ | 4 | $ | - | $ | - | $ | 4 | $ | 4 | $ | - | $ | - | |||||||||||
Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity. Short-term debt instruments classified as cash equivalents or restricted cash equivalents on the consolidated balance sheets are not included since they are recorded at amortized cost. | |||||||||||||||||||||||||||
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted NAVs that are publicly available and are the basis for transactions to buy or sell shares in each fund. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect what is 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. | |||||||||||||||||||||||||||
DB SERP Assets: CMS Energy and Consumers value their DB SERP assets using a market approach that incorporates quoted market prices. The DB SERP cash equivalents consist of a money market fund with daily liquidity. The DB SERP invests in mutual funds that hold primarily fixed-income instruments of varying maturities. In order to meet their investment objectives, the funds hold investment-grade debt securities, and may invest a portion of their assets in high-yield securities, foreign debt, and derivative instruments. CMS Energy and Consumers value these funds using the daily quoted NAVs that are publicly available and are the basis for transactions to buy or sell shares in each fund. CMS Energy and Consumers report their DB SERP assets in other non‑current assets on their consolidated balance sheets. For additional details about DB SERP securities, see Note 5, Financial Instruments. | |||||||||||||||||||||||||||
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 values its exchange-traded derivative contracts based on Level 1 quoted prices and values other derivatives using Level 2 inputs, including commodity forward prices and credit risk factors. CMS Energy and Consumers have classified certain derivatives as Level 3 since the fair value measurements incorporate assumptions that cannot be observed or confirmed through market transactions. | |||||||||||||||||||||||||||
The most significant derivatives classified as Level 3 are FTRs held by Consumers. Consumers uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. FTRs are accounted for as derivatives. Under regulatory accounting, all changes in fair value associated with FTRs are deferred as regulatory assets or liabilities until the instruments are settled. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. | |||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Level 3 Inputs | |||||||||||||||||||||||||||
The largest change in the fair values of Level 3 assets and liabilities at CMS Energy and Consumers during the three and nine months ended September 30, 2013 and 2012 was attributable to the FTRs. | |||||||||||||||||||||||||||
Financial_Instruments
Financial Instruments | 9 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||
Financial Instruments | 5: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 does not include information on cash, cash equivalents, short-term accounts and notes receivable, short-term investments, and current liabilities since the carrying amounts of these items approximate their fair values because of their short-term nature. 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 | |||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||
Carrying | Level | Carrying | Level | ||||||||||||||||||||||||||||||||
Amount | Total | 1 | 2 | 3 | Amount | Total | 1 | 2 | 3 | ||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Securities held | $ | 10 | $ | 10 | $ | - | $ | 10 | $ | - | $ | 9 | $ | 10 | $ | - | $ | 10 | $ | - | |||||||||||||||
to maturity | |||||||||||||||||||||||||||||||||||
Notes | 597 | 629 | - | - | 629 | 544 | 581 | - | - | 581 | |||||||||||||||||||||||||
receivable1 | |||||||||||||||||||||||||||||||||||
Long-term | 7,600 | 8,354 | - | 7,369 | 985 | 7,229 | 8,347 | - | 7,321 | 1,026 | |||||||||||||||||||||||||
debt2 | |||||||||||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Long-term | $ | 4,633 | $ | 5,046 | $ | - | $ | 4,061 | $ | 985 | $ | 4,338 | $ | 5,015 | $ | - | $ | 3,989 | $ | 1,026 | |||||||||||||||
debt3 | |||||||||||||||||||||||||||||||||||
1 Includes current portion of notes receivable of $58 million at September 30, 2013 and $40 million at December 31, 2012. | |||||||||||||||||||||||||||||||||||
2 Includes current portion of long-term debt of $511 million at September 30, 2013 and $519 million at December 31, 2012. | |||||||||||||||||||||||||||||||||||
3 Includes current portion of long-term debt of $42 million at September 30, 2013 and $41 million at December 31, 2012. | |||||||||||||||||||||||||||||||||||
Notes receivable consist of EnerBank’s fixed-rate installment loans. EnerBank estimates the fair value of these loans using a discounted cash flows technique that incorporates market interest rates as well as assumptions about the remaining life of the loans and credit risk. | |||||||||||||||||||||||||||||||||||
CMS Energy and Consumers estimate the fair value of their long-term debt using quoted prices from market trades of the debt, if available. In the absence of quoted prices, CMS Energy and Consumers calculate market yields and prices for the debt using a matrix method that incorporates market data for similarly rated debt. Depending on the information available, other valuation techniques and models may be used that rely on assumptions that cannot be observed or confirmed through market transactions. CMS Energy includes the value of the conversion features in estimating the fair value of its convertible debt, and incorporates, as appropriate, information on the market prices of CMS Energy common stock. | |||||||||||||||||||||||||||||||||||
The effects of third-party credit enhancements are excluded from the fair value measurements of long-term debt. At September 30, 2013 and December 31, 2012, CMS Energy’s long-term debt included $103 million principal amount that was supported by third-party credit enhancements. This entire principal amount was at Consumers. | |||||||||||||||||||||||||||||||||||
Presented in the following table are CMS Energy’s and Consumers’ investment securities classified as available for sale or held to maturity: | |||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||
Unrealized | Unrealized | Fair | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||||
Mutual funds | $ | 137 | $ | - | $ | - | $ | 137 | $ | 123 | $ | 3 | $ | - | $ | 126 | |||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||||||||
Debt securities | 10 | - | - | 10 | 9 | 1 | - | 10 | |||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||||
Mutual funds | $ | 96 | $ | - | $ | - | $ | 96 | $ | 83 | $ | 2 | $ | - | $ | 85 | |||||||||||||||||||
CMS Energy | |||||||||||||||||||||||||||||||||||
common stock | 5 | 24 | - | 29 | 6 | 26 | - | 32 | |||||||||||||||||||||||||||
The mutual funds classified as available for sale hold primarily fixed-income instruments of varying maturities. During the nine months ended September 30, 2013, CMS Energy contributed $16 million to the DB SERP, which included a contribution of $13 million by Consumers. The contributions were used to acquire additional shares in the mutual funds. Debt securities classified as held to maturity consist primarily of mortgage-backed securities held by EnerBank. | |||||||||||||||||||||||||||||||||||
Consumers recognized gains of $4 million in January 2013 and $5 million in January 2012 from transferring shares of CMS Energy common stock to a related charitable foundation. The gains reflected the excess of fair value over cost of the stock donated and were included in income. | |||||||||||||||||||||||||||||||||||
Consumers Energy Company [Member] | |||||||||||||||||||||||||||||||||||
Financial Instruments | 5: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 does not include information on cash, cash equivalents, short-term accounts and notes receivable, short-term investments, and current liabilities since the carrying amounts of these items approximate their fair values because of their short-term nature. 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 | |||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||
Carrying | Level | Carrying | Level | ||||||||||||||||||||||||||||||||
Amount | Total | 1 | 2 | 3 | Amount | Total | 1 | 2 | 3 | ||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Securities held | $ | 10 | $ | 10 | $ | - | $ | 10 | $ | - | $ | 9 | $ | 10 | $ | - | $ | 10 | $ | - | |||||||||||||||
to maturity | |||||||||||||||||||||||||||||||||||
Notes | 597 | 629 | - | - | 629 | 544 | 581 | - | - | 581 | |||||||||||||||||||||||||
receivable1 | |||||||||||||||||||||||||||||||||||
Long-term | 7,600 | 8,354 | - | 7,369 | 985 | 7,229 | 8,347 | - | 7,321 | 1,026 | |||||||||||||||||||||||||
debt2 | |||||||||||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Long-term | $ | 4,633 | $ | 5,046 | $ | - | $ | 4,061 | $ | 985 | $ | 4,338 | $ | 5,015 | $ | - | $ | 3,989 | $ | 1,026 | |||||||||||||||
debt3 | |||||||||||||||||||||||||||||||||||
1 Includes current portion of notes receivable of $58 million at September 30, 2013 and $40 million at December 31, 2012. | |||||||||||||||||||||||||||||||||||
2 Includes current portion of long-term debt of $511 million at September 30, 2013 and $519 million at December 31, 2012. | |||||||||||||||||||||||||||||||||||
3 Includes current portion of long-term debt of $42 million at September 30, 2013 and $41 million at December 31, 2012. | |||||||||||||||||||||||||||||||||||
Notes receivable consist of EnerBank’s fixed-rate installment loans. EnerBank estimates the fair value of these loans using a discounted cash flows technique that incorporates market interest rates as well as assumptions about the remaining life of the loans and credit risk. | |||||||||||||||||||||||||||||||||||
CMS Energy and Consumers estimate the fair value of their long-term debt using quoted prices from market trades of the debt, if available. In the absence of quoted prices, CMS Energy and Consumers calculate market yields and prices for the debt using a matrix method that incorporates market data for similarly rated debt. Depending on the information available, other valuation techniques and models may be used that rely on assumptions that cannot be observed or confirmed through market transactions. CMS Energy includes the value of the conversion features in estimating the fair value of its convertible debt, and incorporates, as appropriate, information on the market prices of CMS Energy common stock. | |||||||||||||||||||||||||||||||||||
The effects of third-party credit enhancements are excluded from the fair value measurements of long-term debt. At September 30, 2013 and December 31, 2012, CMS Energy’s long-term debt included $103 million principal amount that was supported by third-party credit enhancements. This entire principal amount was at Consumers. | |||||||||||||||||||||||||||||||||||
Presented in the following table are CMS Energy’s and Consumers’ investment securities classified as available for sale or held to maturity: | |||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||
Unrealized | Unrealized | Fair | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||||
Mutual funds | $ | 137 | $ | - | $ | - | $ | 137 | $ | 123 | $ | 3 | $ | - | $ | 126 | |||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||||||||
Debt securities | 10 | - | - | 10 | 9 | 1 | - | 10 | |||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||||
Mutual funds | $ | 96 | $ | - | $ | - | $ | 96 | $ | 83 | $ | 2 | $ | - | $ | 85 | |||||||||||||||||||
CMS Energy | |||||||||||||||||||||||||||||||||||
common stock | 5 | 24 | - | 29 | 6 | 26 | - | 32 | |||||||||||||||||||||||||||
The mutual funds classified as available for sale hold primarily fixed-income instruments of varying maturities. During the nine months ended September 30, 2013, CMS Energy contributed $16 million to the DB SERP, which included a contribution of $13 million by Consumers. The contributions were used to acquire additional shares in the mutual funds. Debt securities classified as held to maturity consist primarily of mortgage-backed securities held by EnerBank. | |||||||||||||||||||||||||||||||||||
Consumers recognized gains of $4 million in January 2013 and $5 million in January 2012 from transferring shares of CMS Energy common stock to a related charitable foundation. The gains reflected the excess of fair value over cost of the stock donated and were included in income. | |||||||||||||||||||||||||||||||||||
Notes_Receivable
Notes Receivable | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Notes Receivable | 6:NOTES RECEIVABLE | ||||||||||||||
Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable: | |||||||||||||||
In Millions | |||||||||||||||
30-Sep-13 | December 31, 2012 | ||||||||||||||
CMS Energy, including Consumers | |||||||||||||||
Current | |||||||||||||||
EnerBank notes receivable, net of allowance for loan losses | $ | 58 | $ | 40 | |||||||||||
Other | 26 | 1 | |||||||||||||
Non-current | |||||||||||||||
EnerBank notes receivable, net of allowance for loan losses | 539 | 504 | |||||||||||||
Other | - | 16 | |||||||||||||
Total notes receivable | $ | 623 | $ | 561 | |||||||||||
Consumers | |||||||||||||||
Current | |||||||||||||||
Other | $ | 25 | $ | - | |||||||||||
Non-current | |||||||||||||||
Other | - | 16 | |||||||||||||
Total notes receivable | $ | 25 | $ | 16 | |||||||||||
EnerBank notes receivable are unsecured consumer installment loans for financing home improvements. | |||||||||||||||
The allowance for loan losses is a valuation allowance to reflect estimated credit losses. The allowance is increased by the provision for loan losses and decreased by loan charge-offs net of recoveries. Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due. | |||||||||||||||
Presented in the following table are the changes in the allowance for loan losses: | |||||||||||||||
In Millions | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
30-Sep | 2013 | 2012 | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 5 | $ | 5 | $ | 5 | $ | 5 | |||||||
Charge-offs | -1 | -2 | -4 | -4 | |||||||||||
Recoveries | - | 1 | 1 | 1 | |||||||||||
Provision for loan losses | 1 | 1 | 3 | 3 | |||||||||||
Balance at end of period | $ | 5 | $ | 5 | $ | 5 | $ | 5 | |||||||
Loans that are 30 days or more past due are considered delinquent. The balance of EnerBank’s delinquent consumer loans was $3 million at September 30, 2013 and at December 31, 2012. | |||||||||||||||
At September 30, 2013 and December 31, 2012, $1 million of EnerBank’s loans had been modified as troubled debt restructurings. | |||||||||||||||
Consumers Energy Company [Member] | |||||||||||||||
Notes Receivable | 6:NOTES RECEIVABLE | ||||||||||||||
Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable: | |||||||||||||||
In Millions | |||||||||||||||
30-Sep-13 | December 31, 2012 | ||||||||||||||
CMS Energy, including Consumers | |||||||||||||||
Current | |||||||||||||||
EnerBank notes receivable, net of allowance for loan losses | $ | 58 | $ | 40 | |||||||||||
Other | 26 | 1 | |||||||||||||
Non-current | |||||||||||||||
EnerBank notes receivable, net of allowance for loan losses | 539 | 504 | |||||||||||||
Other | - | 16 | |||||||||||||
Total notes receivable | $ | 623 | $ | 561 | |||||||||||
Consumers | |||||||||||||||
Current | |||||||||||||||
Other | $ | 25 | $ | - | |||||||||||
Non-current | |||||||||||||||
Other | - | 16 | |||||||||||||
Total notes receivable | $ | 25 | $ | 16 | |||||||||||
EnerBank notes receivable are unsecured consumer installment loans for financing home improvements. | |||||||||||||||
The allowance for loan losses is a valuation allowance to reflect estimated credit losses. The allowance is increased by the provision for loan losses and decreased by loan charge-offs net of recoveries. Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due. | |||||||||||||||
Presented in the following table are the changes in the allowance for loan losses: | |||||||||||||||
In Millions | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
30-Sep | 2013 | 2012 | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 5 | $ | 5 | $ | 5 | $ | 5 | |||||||
Charge-offs | -1 | -2 | -4 | -4 | |||||||||||
Recoveries | - | 1 | 1 | 1 | |||||||||||
Provision for loan losses | 1 | 1 | 3 | 3 | |||||||||||
Balance at end of period | $ | 5 | $ | 5 | $ | 5 | $ | 5 | |||||||
Loans that are 30 days or more past due are considered delinquent. The balance of EnerBank’s delinquent consumer loans was $3 million at September 30, 2013 and at December 31, 2012. | |||||||||||||||
At September 30, 2013 and December 31, 2012, $1 million of EnerBank’s loans had been modified as troubled debt restructurings. | |||||||||||||||
Retirement_Benefits
Retirement Benefits | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Retirement Benefits | 7:RETIREMENT BENEFITS | ||||||||||||||||||||||||||
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. | |||||||||||||||||||||||||||
Presented in the following table are the costs incurred in CMS Energy’s and Consumers’ retirement benefits plans: | |||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
Pension | OPEB | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Net periodic cost (credit) | |||||||||||||||||||||||||||
Service cost | $ | 13 | $ | 12 | $ | 40 | $ | 36 | $ | 5 | $ | 8 | $ | 23 | $ | 24 | |||||||||||
Interest expense | 23 | 24 | 70 | 74 | 14 | 21 | 52 | 62 | |||||||||||||||||||
Expected return on plan | -32 | -31 | -96 | -94 | -20 | -17 | -58 | -50 | |||||||||||||||||||
assets | |||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||
Net loss | 24 | 19 | 72 | 57 | 3 | 12 | 24 | 35 | |||||||||||||||||||
Prior service | 1 | 1 | 3 | 4 | -10 | -5 | -20 | -15 | |||||||||||||||||||
cost (credit) | |||||||||||||||||||||||||||
Net periodic cost (credit) | $ | 29 | $ | 25 | $ | 89 | $ | 77 | $ | -8 | $ | 19 | $ | 21 | $ | 56 | |||||||||||
Consumers | |||||||||||||||||||||||||||
Net periodic cost (credit) | |||||||||||||||||||||||||||
Service cost | $ | 13 | $ | 12 | $ | 39 | $ | 35 | $ | 5 | $ | 7 | $ | 23 | $ | 23 | |||||||||||
Interest expense | 23 | 24 | 69 | 72 | 14 | 20 | 50 | 60 | |||||||||||||||||||
Expected return on plan | -31 | -30 | -94 | -91 | -19 | -15 | -54 | -46 | |||||||||||||||||||
assets | |||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||
Net loss | 23 | 18 | 70 | 55 | 3 | 12 | 24 | 35 | |||||||||||||||||||
Prior service | 1 | 1 | 3 | 4 | -10 | -5 | -20 | -15 | |||||||||||||||||||
cost (credit) | |||||||||||||||||||||||||||
Net periodic cost (credit) | $ | 29 | $ | 25 | $ | 87 | $ | 75 | $ | -7 | $ | 19 | $ | 23 | $ | 57 | |||||||||||
Effective July 1, 2013, CMS Energy and Consumers approved a change to the Medicare drug program provided through their OPEB Plan from an employer-sponsored prescription drug plan with a retiree drug subsidy to an EGWP to begin on January 1, 2015. Also effective July 1, 2013, CMS Energy and Consumers approved certain benefit changes to the OPEB Plan, to begin on January 1, 2016. Accordingly, CMS Energy and Consumers performed a remeasurement of the OPEB Plan as of July 1, 2013. In addition, with the plan remeasurement, the discount rate used to measure the OPEB liability was increased from 4.4 percent at December 31, 2012 to 5.1 percent at July 1, 2013. Assumptions regarding the expected long-term rate of return on plan assets and the health-care cost trend rate did not change from December 31, 2012 levels. | |||||||||||||||||||||||||||
As a result of these changes, CMS Energy’s (including Consumers’) OPEB liability decreased by $638 million, its OPEB regulatory asset of $580 million was eliminated, and an OPEB regulatory liability of $34 million was established as of July 1, 2013. CMS Energy’s accumulated other comprehensive loss decreased by $24 million. CMS Energy’s (including Consumers’) OPEB cost is expected to decrease by $48 million in 2013. Consumers’ OPEB liability decreased by $614 million, its OPEB regulatory asset of $580 million was eliminated, and an OPEB regulatory liability of $34 million was established as of July 1, 2013. Consumers’ OPEB cost is expected to decrease by $46 million in 2013. | |||||||||||||||||||||||||||
CMS Energy and Consumers also remeasured certain deferred tax assets as a result of the approved change to the Medicare drug program. Effective January 2015, CMS Energy and Consumers will no longer receive Medicare Part D drug subsidies. Accordingly, CMS Energy (including Consumers) decreased its deferred tax assets by $148 million, reduced its regulatory income tax liabilities by $144 million, and increased its income tax expense by $4 million. Consumers decreased its deferred tax assets by $144 million, and reduced its regulatory income tax liabilities by an equal amount. | |||||||||||||||||||||||||||
Consumers Energy Company [Member] | |||||||||||||||||||||||||||
Retirement Benefits | 7:RETIREMENT BENEFITS | ||||||||||||||||||||||||||
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. | |||||||||||||||||||||||||||
Presented in the following table are the costs incurred in CMS Energy’s and Consumers’ retirement benefits plans: | |||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
Pension | OPEB | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Net periodic cost (credit) | |||||||||||||||||||||||||||
Service cost | $ | 13 | $ | 12 | $ | 40 | $ | 36 | $ | 5 | $ | 8 | $ | 23 | $ | 24 | |||||||||||
Interest expense | 23 | 24 | 70 | 74 | 14 | 21 | 52 | 62 | |||||||||||||||||||
Expected return on plan | -32 | -31 | -96 | -94 | -20 | -17 | -58 | -50 | |||||||||||||||||||
assets | |||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||
Net loss | 24 | 19 | 72 | 57 | 3 | 12 | 24 | 35 | |||||||||||||||||||
Prior service | 1 | 1 | 3 | 4 | -10 | -5 | -20 | -15 | |||||||||||||||||||
cost (credit) | |||||||||||||||||||||||||||
Net periodic cost (credit) | $ | 29 | $ | 25 | $ | 89 | $ | 77 | $ | -8 | $ | 19 | $ | 21 | $ | 56 | |||||||||||
Consumers | |||||||||||||||||||||||||||
Net periodic cost (credit) | |||||||||||||||||||||||||||
Service cost | $ | 13 | $ | 12 | $ | 39 | $ | 35 | $ | 5 | $ | 7 | $ | 23 | $ | 23 | |||||||||||
Interest expense | 23 | 24 | 69 | 72 | 14 | 20 | 50 | 60 | |||||||||||||||||||
Expected return on plan | -31 | -30 | -94 | -91 | -19 | -15 | -54 | -46 | |||||||||||||||||||
assets | |||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||
Net loss | 23 | 18 | 70 | 55 | 3 | 12 | 24 | 35 | |||||||||||||||||||
Prior service | 1 | 1 | 3 | 4 | -10 | -5 | -20 | -15 | |||||||||||||||||||
cost (credit) | |||||||||||||||||||||||||||
Net periodic cost (credit) | $ | 29 | $ | 25 | $ | 87 | $ | 75 | $ | -7 | $ | 19 | $ | 23 | $ | 57 | |||||||||||
Effective July 1, 2013, CMS Energy and Consumers approved a change to the Medicare drug program provided through their OPEB Plan from an employer-sponsored prescription drug plan with a retiree drug subsidy to an EGWP to begin on January 1, 2015. Also effective July 1, 2013, CMS Energy and Consumers approved certain benefit changes to the OPEB Plan, to begin on January 1, 2016. Accordingly, CMS Energy and Consumers performed a remeasurement of the OPEB Plan as of July 1, 2013. In addition, with the plan remeasurement, the discount rate used to measure the OPEB liability was increased from 4.4 percent at December 31, 2012 to 5.1 percent at July 1, 2013. Assumptions regarding the expected long-term rate of return on plan assets and the health-care cost trend rate did not change from December 31, 2012 levels. | |||||||||||||||||||||||||||
As a result of these changes, CMS Energy’s (including Consumers’) OPEB liability decreased by $638 million, its OPEB regulatory asset of $580 million was eliminated, and an OPEB regulatory liability of $34 million was established as of July 1, 2013. CMS Energy’s accumulated other comprehensive loss decreased by $24 million. CMS Energy’s (including Consumers’) OPEB cost is expected to decrease by $48 million in 2013. Consumers’ OPEB liability decreased by $614 million, its OPEB regulatory asset of $580 million was eliminated, and an OPEB regulatory liability of $34 million was established as of July 1, 2013. Consumers’ OPEB cost is expected to decrease by $46 million in 2013. | |||||||||||||||||||||||||||
CMS Energy and Consumers also remeasured certain deferred tax assets as a result of the approved change to the Medicare drug program. Effective January 2015, CMS Energy and Consumers will no longer receive Medicare Part D drug subsidies. Accordingly, CMS Energy (including Consumers) decreased its deferred tax assets by $148 million, reduced its regulatory income tax liabilities by $144 million, and increased its income tax expense by $4 million. Consumers decreased its deferred tax assets by $144 million, and reduced its regulatory income tax liabilities by an equal amount. | |||||||||||||||||||||||||||
Earnings_Per_Share_CMS_Energy
Earnings Per Share - CMS Energy | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Earnings Per Share - CMS Energy [Abstract] | |||||||||||||||
Earnings Per Share - CMS Energy | 8: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 | Nine Months Ended | ||||||||||||||
30-Sep | 2013 | 2012 | 2013 | 2012 | |||||||||||
Income available to common stockholders | |||||||||||||||
Income from continuing operations | $ | 127 | $ | 149 | $ | 352 | $ | 310 | |||||||
Less income attributable to noncontrolling interests | 1 | 1 | 2 | 2 | |||||||||||
Income from continuing operations available to | $ | 126 | $ | 148 | $ | 350 | $ | 308 | |||||||
common stockholders – basic and diluted | |||||||||||||||
Average common shares outstanding | |||||||||||||||
Weighted-average shares – basic | 264.8 | 262.9 | 264.3 | 259.9 | |||||||||||
Add dilutive contingently convertible securities | 6.2 | 5.1 | 6.2 | 7.2 | |||||||||||
Add dilutive non-vested stock awards | 1.0 | 1.0 | 1.1 | 1.0 | |||||||||||
Weighted-average shares – diluted | 272.0 | 269.0 | 271.6 | 268.1 | |||||||||||
Income from continuing operations per average | |||||||||||||||
common share available to common stockholders | |||||||||||||||
Basic | $ | 0.48 | $ | 0.56 | $ | 1.32 | $ | 1.18 | |||||||
Diluted | 0.46 | 0.55 | 1.29 | 1.14 | |||||||||||
Contingently Convertible Securities | |||||||||||||||
When CMS Energy has earnings from continuing operations, its contingently convertible securities dilute EPS to the extent that the conversion value of a security, which is based on the average market price of CMS Energy common stock, exceeds the principal value of that security. | |||||||||||||||
Non‑vested Stock Awards | |||||||||||||||
CMS Energy’s non‑vested 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 non‑vested stock awards are considered participating securities. As such, the participating non‑vested 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 basic EPS. | |||||||||||||||
Reportable_Segments
Reportable Segments | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Reportable Segments | 9: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. The reportable segments for CMS Energy and Consumers are: | |||||||||||||||
CMS Energy: | |||||||||||||||
· | electric utility, consisting of regulated activities associated with the generation and distribution of electricity in Michigan; | ||||||||||||||
· | gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan; | ||||||||||||||
· | enterprises, consisting of various subsidiaries engaging primarily in domestic independent power production; and | ||||||||||||||
· | other, including EnerBank, corporate interest and other expenses, and discontinued operations. | ||||||||||||||
Consumers: | |||||||||||||||
· | electric utility, consisting of regulated activities associated with the generation and distribution of electricity in Michigan; | ||||||||||||||
· | gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan; and | ||||||||||||||
· | other, including a consolidated special-purpose entity for the sale of accounts receivable. | ||||||||||||||
Presented in the following tables is financial information by reportable segment: | |||||||||||||||
In Millions | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
30-Sep | 2013 | 2012 | 2013 | 2012 | |||||||||||
CMS Energy, including Consumers | |||||||||||||||
Operating revenue | |||||||||||||||
Electric utility | $ | 1,188 | $ | 1,239 | $ | 3,175 | $ | 3,073 | |||||||
Gas utility | 198 | 209 | 1,472 | 1,332 | |||||||||||
Enterprises | 44 | 44 | 136 | 136 | |||||||||||
Other | 15 | 15 | 47 | 42 | |||||||||||
Total operating revenue – CMS Energy | $ | 1,445 | $ | 1,507 | $ | 4,830 | $ | 4,583 | |||||||
Consumers | |||||||||||||||
Operating revenue | |||||||||||||||
Electric utility | $ | 1,188 | $ | 1,239 | $ | 3,175 | $ | 3,073 | |||||||
Gas utility | 198 | 209 | 1,472 | 1,332 | |||||||||||
Total operating revenue – Consumers | $ | 1,386 | $ | 1,448 | $ | 4,647 | $ | 4,405 | |||||||
CMS Energy, including Consumers | |||||||||||||||
Net income (loss) available to common stockholders | |||||||||||||||
Electric utility | $ | 156 | $ | 165 | $ | 315 | $ | 297 | |||||||
Gas utility | -4 | -3 | 97 | 61 | |||||||||||
Enterprises | -4 | 5 | 1 | 9 | |||||||||||
Other | -22 | -19 | -63 | -52 | |||||||||||
Total net income available to common | |||||||||||||||
stockholders – CMS Energy | $ | 126 | $ | 148 | $ | 350 | $ | 315 | |||||||
Consumers | |||||||||||||||
Net income (loss) available to common stockholder | |||||||||||||||
Electric utility | $ | 156 | $ | 165 | $ | 315 | $ | 297 | |||||||
Gas utility | -4 | -3 | 97 | 61 | |||||||||||
Other | - | - | 1 | 1 | |||||||||||
Total net income available to common | |||||||||||||||
stockholder – Consumers | $ | 152 | $ | 162 | $ | 413 | $ | 359 | |||||||
In Millions | |||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||
CMS Energy, including Consumers | |||||||||||||||
Plant, property, and equipment, gross | |||||||||||||||
Electric utility | $ | 11,652 | $ | 11,041 | |||||||||||
Gas utility | 4,759 | 4,400 | |||||||||||||
Enterprises | 116 | 113 | |||||||||||||
Other | 39 | 38 | |||||||||||||
Total plant, property, and equipment, gross – CMS Energy | $ | 16,566 | $ | 15,592 | |||||||||||
Consumers | |||||||||||||||
Plant, property, and equipment, gross | |||||||||||||||
Electric utility | $ | 11,652 | $ | 11,041 | |||||||||||
Gas utility | 4,759 | 4,400 | |||||||||||||
Other | 15 | 15 | |||||||||||||
Total plant, property, and equipment, gross – Consumers | $ | 16,426 | $ | 15,456 | |||||||||||
CMS Energy, including Consumers | |||||||||||||||
Total assets | |||||||||||||||
Electric utility1 | $ | 10,412 | $ | 10,423 | |||||||||||
Gas utility1 | 5,039 | 5,016 | |||||||||||||
Enterprises | 188 | 181 | |||||||||||||
Other | 1,347 | 1,511 | |||||||||||||
Total assets – CMS Energy | $ | 16,986 | $ | 17,131 | |||||||||||
Consumers | |||||||||||||||
Total assets | |||||||||||||||
Electric utility1 | $ | 10,412 | $ | 10,423 | |||||||||||
Gas utility1 | 5,039 | 5,016 | |||||||||||||
Other | 643 | 836 | |||||||||||||
Total assets – Consumers | $ | 16,094 | $ | 16,275 | |||||||||||
1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. | |||||||||||||||
Consumers Energy Company [Member] | |||||||||||||||
Reportable Segments | 9: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. The reportable segments for CMS Energy and Consumers are: | |||||||||||||||
CMS Energy: | |||||||||||||||
· | electric utility, consisting of regulated activities associated with the generation and distribution of electricity in Michigan; | ||||||||||||||
· | gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan; | ||||||||||||||
· | enterprises, consisting of various subsidiaries engaging primarily in domestic independent power production; and | ||||||||||||||
· | other, including EnerBank, corporate interest and other expenses, and discontinued operations. | ||||||||||||||
Consumers: | |||||||||||||||
· | electric utility, consisting of regulated activities associated with the generation and distribution of electricity in Michigan; | ||||||||||||||
· | gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan; and | ||||||||||||||
· | other, including a consolidated special-purpose entity for the sale of accounts receivable. | ||||||||||||||
Presented in the following tables is financial information by reportable segment: | |||||||||||||||
In Millions | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
30-Sep | 2013 | 2012 | 2013 | 2012 | |||||||||||
CMS Energy, including Consumers | |||||||||||||||
Operating revenue | |||||||||||||||
Electric utility | $ | 1,188 | $ | 1,239 | $ | 3,175 | $ | 3,073 | |||||||
Gas utility | 198 | 209 | 1,472 | 1,332 | |||||||||||
Enterprises | 44 | 44 | 136 | 136 | |||||||||||
Other | 15 | 15 | 47 | 42 | |||||||||||
Total operating revenue – CMS Energy | $ | 1,445 | $ | 1,507 | $ | 4,830 | $ | 4,583 | |||||||
Consumers | |||||||||||||||
Operating revenue | |||||||||||||||
Electric utility | $ | 1,188 | $ | 1,239 | $ | 3,175 | $ | 3,073 | |||||||
Gas utility | 198 | 209 | 1,472 | 1,332 | |||||||||||
Total operating revenue – Consumers | $ | 1,386 | $ | 1,448 | $ | 4,647 | $ | 4,405 | |||||||
CMS Energy, including Consumers | |||||||||||||||
Net income (loss) available to common stockholders | |||||||||||||||
Electric utility | $ | 156 | $ | 165 | $ | 315 | $ | 297 | |||||||
Gas utility | -4 | -3 | 97 | 61 | |||||||||||
Enterprises | -4 | 5 | 1 | 9 | |||||||||||
Other | -22 | -19 | -63 | -52 | |||||||||||
Total net income available to common | |||||||||||||||
stockholders – CMS Energy | $ | 126 | $ | 148 | $ | 350 | $ | 315 | |||||||
Consumers | |||||||||||||||
Net income (loss) available to common stockholder | |||||||||||||||
Electric utility | $ | 156 | $ | 165 | $ | 315 | $ | 297 | |||||||
Gas utility | -4 | -3 | 97 | 61 | |||||||||||
Other | - | - | 1 | 1 | |||||||||||
Total net income available to common | |||||||||||||||
stockholder – Consumers | $ | 152 | $ | 162 | $ | 413 | $ | 359 | |||||||
In Millions | |||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||
CMS Energy, including Consumers | |||||||||||||||
Plant, property, and equipment, gross | |||||||||||||||
Electric utility | $ | 11,652 | $ | 11,041 | |||||||||||
Gas utility | 4,759 | 4,400 | |||||||||||||
Enterprises | 116 | 113 | |||||||||||||
Other | 39 | 38 | |||||||||||||
Total plant, property, and equipment, gross – CMS Energy | $ | 16,566 | $ | 15,592 | |||||||||||
Consumers | |||||||||||||||
Plant, property, and equipment, gross | |||||||||||||||
Electric utility | $ | 11,652 | $ | 11,041 | |||||||||||
Gas utility | 4,759 | 4,400 | |||||||||||||
Other | 15 | 15 | |||||||||||||
Total plant, property, and equipment, gross – Consumers | $ | 16,426 | $ | 15,456 | |||||||||||
CMS Energy, including Consumers | |||||||||||||||
Total assets | |||||||||||||||
Electric utility1 | $ | 10,412 | $ | 10,423 | |||||||||||
Gas utility1 | 5,039 | 5,016 | |||||||||||||
Enterprises | 188 | 181 | |||||||||||||
Other | 1,347 | 1,511 | |||||||||||||
Total assets – CMS Energy | $ | 16,986 | $ | 17,131 | |||||||||||
Consumers | |||||||||||||||
Total assets | |||||||||||||||
Electric utility1 | $ | 10,412 | $ | 10,423 | |||||||||||
Gas utility1 | 5,039 | 5,016 | |||||||||||||
Other | 643 | 836 | |||||||||||||
Total assets – Consumers | $ | 16,094 | $ | 16,275 | |||||||||||
1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. | |||||||||||||||
Notes_Receivable_Policy
Notes Receivable (Policy) | 9 Months Ended |
Sep. 30, 2013 | |
Notes Receivable [Abstract] | |
Allowance For Loan Losses Policy | The allowance for loan losses is a valuation allowance to reflect estimated credit losses. The allowance is increased by the provision for loan losses and decreased by loan charge-offs net of recoveries. Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due. |
Contingencies_And_Commitments_
Contingencies And Commitments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Expected Remediation Cost By Year | |||||||||||||||||
In Millions | |||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||
Consumers | |||||||||||||||||
Remediation and other response activity costs | $ | 8 | $ | 8 | $ | 12 | $ | 12 | $ | 9 | |||||||
Guarantees | |||||||||||||||||
In Millions | |||||||||||||||||
Maximum | Carrying | ||||||||||||||||
Guarantee Description | Issue Date | Expiration Date | Obligation | Amount | |||||||||||||
CMS Energy, including Consumers | |||||||||||||||||
Indemnity obligations from asset sales | Various | Various through September 2029 | $ | 476 | 1 | $ | 16 | ||||||||||
and other agreements | |||||||||||||||||
Guarantees | Various | Various through March 2021 | 57 | - | |||||||||||||
Consumers | |||||||||||||||||
Indemnity obligations and other guarantees | Various | Various through September 2029 | $ | 30 | $ | 1 | |||||||||||
1 The majority of this amount arises from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy, other than Consumers, indemnified the purchaser for losses resulting from various matters, including claims related to tax disputes, claims related to power purchase agreements, and defects in title to the assets or stock sold to the purchaser by CMS Energy subsidiaries. Except for items described elsewhere in this Note, CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. | |||||||||||||||||
Consumers Energy Company [Member] | |||||||||||||||||
Expected Remediation Cost By Year | |||||||||||||||||
In Millions | |||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||
Consumers | |||||||||||||||||
Remediation and other response activity costs | $ | 8 | $ | 8 | $ | 12 | $ | 12 | $ | 9 | |||||||
Guarantees | |||||||||||||||||
In Millions | |||||||||||||||||
Maximum | Carrying | ||||||||||||||||
Guarantee Description | Issue Date | Expiration Date | Obligation | Amount | |||||||||||||
CMS Energy, including Consumers | |||||||||||||||||
Indemnity obligations from asset sales | Various | Various through September 2029 | $ | 476 | 1 | $ | 16 | ||||||||||
and other agreements | |||||||||||||||||
Guarantees | Various | Various through March 2021 | 57 | - | |||||||||||||
Consumers | |||||||||||||||||
Indemnity obligations and other guarantees | Various | Various through September 2029 | $ | 30 | $ | 1 | |||||||||||
1 The majority of this amount arises from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy, other than Consumers, indemnified the purchaser for losses resulting from various matters, including claims related to tax disputes, claims related to power purchase agreements, and defects in title to the assets or stock sold to the purchaser by CMS Energy subsidiaries. Except for items described elsewhere in this Note, CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. | |||||||||||||||||
Financings_And_Capitalization_
Financings And Capitalization (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Summary Of Major Long-Term Debt Transactions | ||||||||||||||
Principal | Issue/Retirement | |||||||||||||
(In Millions) | Interest Rate | Date | Maturity Date | |||||||||||
Debt issuances | ||||||||||||||
CMS Energy | ||||||||||||||
Senior notes | $ | 250 | 4.700 | % | March 2013 | March 2043 | ||||||||
Total CMS Energy parent | $ | 250 | ||||||||||||
Consumers | ||||||||||||||
FMBs | $ | 425 | 3.950 | % | May-13 | May-43 | ||||||||
FMBs | 325 | 3.375 | Aug-13 | Aug-23 | ||||||||||
Total Consumers | $ | 750 | ||||||||||||
Total debt issuances | $ | 1,000 | ||||||||||||
Debt retirements | ||||||||||||||
CMS Energy | ||||||||||||||
Senior notes | $ | 250 | 2.750 | % | Sep-13 | May-14 | ||||||||
Total CMS Energy parent | $ | 250 | ||||||||||||
Consumers | ||||||||||||||
FMBs | $ | 200 | 6.000 | % | Jun-13 | Feb-14 | ||||||||
FMBs | 225 | 5.000 | Jun-13 | Mar-15 | ||||||||||
Total Consumers | $ | 425 | ||||||||||||
Total debt retirements | $ | 675 | ||||||||||||
Revolving Credit Facilities | ||||||||||||||
In Millions | ||||||||||||||
Letters of Credit | ||||||||||||||
Expiration Date | Amount of Facility | Amount Borrowed | Outstanding | Amount Available | ||||||||||
CMS Energy | ||||||||||||||
December 21, 20171 | $ | 550 | $ | 25 | $ | 2 | $ | 523 | ||||||
Consumers | ||||||||||||||
December 21, 20172 | $ | 500 | $ | - | $ | - | $ | 500 | ||||||
April 18, 20172 | 150 | - | - | 150 | ||||||||||
September 9, 20142 | 30 | - | 30 | - | ||||||||||
1 Obligations under this facility are secured by Consumers common stock. | ||||||||||||||
2 Obligations under this facility are secured by FMBs of Consumers. | ||||||||||||||
Contingently Convertible Securities | ||||||||||||||
Outstanding | Adjusted | Adjusted | ||||||||||||
Security | Maturity | (In Millions) | Conversion Price | Trigger Price | ||||||||||
5.50% senior notes | 2029 | $ | 172 | $ | 13.74 | $ | 17.86 | |||||||
Issuance Of Common Stock | ||||||||||||||
Number of | Average | Proceeds | ||||||||||||
Shares Issued | Price per Share | (In Millions) | ||||||||||||
Jun-11 | 762,925 | $ | 19.66 | $ | 15 | |||||||||
Jun-12 | 650,235 | 23.07 | 15 | |||||||||||
Mar-13 | 735,873 | 27.18 | 20 | |||||||||||
Total | 2,149,033 | $ | 23.27 | $ | 50 | |||||||||
Consumers Energy Company [Member] | ||||||||||||||
Summary Of Major Long-Term Debt Transactions | ||||||||||||||
Principal | Issue/Retirement | |||||||||||||
(In Millions) | Interest Rate | Date | Maturity Date | |||||||||||
Debt issuances | ||||||||||||||
CMS Energy | ||||||||||||||
Senior notes | $ | 250 | 4.700 | % | March 2013 | March 2043 | ||||||||
Total CMS Energy parent | $ | 250 | ||||||||||||
Consumers | ||||||||||||||
FMBs | $ | 425 | 3.950 | % | May-13 | May-43 | ||||||||
FMBs | 325 | 3.375 | Aug-13 | Aug-23 | ||||||||||
Total Consumers | $ | 750 | ||||||||||||
Total debt issuances | $ | 1,000 | ||||||||||||
Debt retirements | ||||||||||||||
CMS Energy | ||||||||||||||
Senior notes | $ | 250 | 2.750 | % | Sep-13 | May-14 | ||||||||
Total CMS Energy parent | $ | 250 | ||||||||||||
Consumers | ||||||||||||||
FMBs | $ | 200 | 6.000 | % | Jun-13 | Feb-14 | ||||||||
FMBs | 225 | 5.000 | Jun-13 | Mar-15 | ||||||||||
Total Consumers | $ | 425 | ||||||||||||
Total debt retirements | $ | 675 | ||||||||||||
Revolving Credit Facilities | ||||||||||||||
In Millions | ||||||||||||||
Letters of Credit | ||||||||||||||
Expiration Date | Amount of Facility | Amount Borrowed | Outstanding | Amount Available | ||||||||||
CMS Energy | ||||||||||||||
December 21, 20171 | $ | 550 | $ | 25 | $ | 2 | $ | 523 | ||||||
Consumers | ||||||||||||||
December 21, 20172 | $ | 500 | $ | - | $ | - | $ | 500 | ||||||
April 18, 20172 | 150 | - | - | 150 | ||||||||||
September 9, 20142 | 30 | - | 30 | - | ||||||||||
1 Obligations under this facility are secured by Consumers common stock. | ||||||||||||||
2 Obligations under this facility are secured by FMBs of Consumers. | ||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Assets And Liabilities Measured At Fair Value On A Recurring Basis | |||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||
Level | Level | ||||||||||||||||||||||||||
Total | 1 | 2 | 3 | Total | 1 | 2 | 3 | ||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Cash equivalents | $ | 100 | $ | 100 | $ | - | $ | - | $ | 53 | $ | 53 | $ | - | $ | - | |||||||||||
Restricted cash equivalents | 14 | 14 | - | - | 14 | 14 | - | - | |||||||||||||||||||
Nonqualified deferred | 6 | 6 | - | - | 5 | 5 | - | - | |||||||||||||||||||
compensation plan assets | |||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||
Cash equivalents | - | - | - | - | 2 | 2 | - | - | |||||||||||||||||||
Mutual funds | 137 | 137 | - | - | 126 | 126 | - | - | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 9 | - | 2 | 7 | 3 | - | - | 3 | |||||||||||||||||||
Total | $ | 266 | $ | 257 | $ | 2 | $ | 7 | $ | 203 | $ | 200 | $ | - | $ | 3 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Nonqualified deferred | $ | 6 | $ | 6 | $ | - | $ | - | $ | 5 | $ | 5 | $ | - | $ | - | |||||||||||
compensation plan liabilities | |||||||||||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 2 | - | 1 | 1 | 4 | - | 3 | 1 | |||||||||||||||||||
Total | $ | 8 | $ | 6 | $ | 1 | $ | 1 | $ | 9 | $ | 5 | $ | 3 | $ | 1 | |||||||||||
Consumers | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Cash equivalents | $ | 84 | $ | 84 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Restricted cash equivalents | 13 | 13 | - | - | 13 | 13 | - | - | |||||||||||||||||||
CMS Energy common stock | 29 | 29 | - | - | 32 | 32 | - | - | |||||||||||||||||||
Nonqualified deferred | 4 | 4 | - | - | 4 | 4 | - | - | |||||||||||||||||||
compensation plan assets | |||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||
Cash equivalents | - | - | - | - | 1 | 1 | - | - | |||||||||||||||||||
Mutual funds | 96 | 96 | - | - | 85 | 85 | - | - | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 6 | - | - | 6 | 2 | - | - | 2 | |||||||||||||||||||
Total | $ | 232 | $ | 226 | $ | - | $ | 6 | $ | 137 | $ | 135 | $ | - | $ | 2 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Nonqualified deferred | $ | 4 | $ | 4 | $ | - | $ | - | $ | 4 | $ | 4 | $ | - | $ | - | |||||||||||
compensation plan liabilities | |||||||||||||||||||||||||||
Total | $ | 4 | $ | 4 | $ | - | $ | - | $ | 4 | $ | 4 | $ | - | $ | - | |||||||||||
Consumers Energy Company [Member] | |||||||||||||||||||||||||||
Assets And Liabilities Measured At Fair Value On A Recurring Basis | |||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||
Level | Level | ||||||||||||||||||||||||||
Total | 1 | 2 | 3 | Total | 1 | 2 | 3 | ||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Cash equivalents | $ | 100 | $ | 100 | $ | - | $ | - | $ | 53 | $ | 53 | $ | - | $ | - | |||||||||||
Restricted cash equivalents | 14 | 14 | - | - | 14 | 14 | - | - | |||||||||||||||||||
Nonqualified deferred | 6 | 6 | - | - | 5 | 5 | - | - | |||||||||||||||||||
compensation plan assets | |||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||
Cash equivalents | - | - | - | - | 2 | 2 | - | - | |||||||||||||||||||
Mutual funds | 137 | 137 | - | - | 126 | 126 | - | - | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 9 | - | 2 | 7 | 3 | - | - | 3 | |||||||||||||||||||
Total | $ | 266 | $ | 257 | $ | 2 | $ | 7 | $ | 203 | $ | 200 | $ | - | $ | 3 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Nonqualified deferred | $ | 6 | $ | 6 | $ | - | $ | - | $ | 5 | $ | 5 | $ | - | $ | - | |||||||||||
compensation plan liabilities | |||||||||||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 2 | - | 1 | 1 | 4 | - | 3 | 1 | |||||||||||||||||||
Total | $ | 8 | $ | 6 | $ | 1 | $ | 1 | $ | 9 | $ | 5 | $ | 3 | $ | 1 | |||||||||||
Consumers | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Cash equivalents | $ | 84 | $ | 84 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Restricted cash equivalents | 13 | 13 | - | - | 13 | 13 | - | - | |||||||||||||||||||
CMS Energy common stock | 29 | 29 | - | - | 32 | 32 | - | - | |||||||||||||||||||
Nonqualified deferred | 4 | 4 | - | - | 4 | 4 | - | - | |||||||||||||||||||
compensation plan assets | |||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||
Cash equivalents | - | - | - | - | 1 | 1 | - | - | |||||||||||||||||||
Mutual funds | 96 | 96 | - | - | 85 | 85 | - | - | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 6 | - | - | 6 | 2 | - | - | 2 | |||||||||||||||||||
Total | $ | 232 | $ | 226 | $ | - | $ | 6 | $ | 137 | $ | 135 | $ | - | $ | 2 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Nonqualified deferred | $ | 4 | $ | 4 | $ | - | $ | - | $ | 4 | $ | 4 | $ | - | $ | - | |||||||||||
compensation plan liabilities | |||||||||||||||||||||||||||
Total | $ | 4 | $ | 4 | $ | - | $ | - | $ | 4 | $ | 4 | $ | - | $ | - | |||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | |||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||
Carrying | Level | Carrying | Level | ||||||||||||||||||||||||||||||||
Amount | Total | 1 | 2 | 3 | Amount | Total | 1 | 2 | 3 | ||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Securities held | $ | 10 | $ | 10 | $ | - | $ | 10 | $ | - | $ | 9 | $ | 10 | $ | - | $ | 10 | $ | - | |||||||||||||||
to maturity | |||||||||||||||||||||||||||||||||||
Notes | 597 | 629 | - | - | 629 | 544 | 581 | - | - | 581 | |||||||||||||||||||||||||
receivable1 | |||||||||||||||||||||||||||||||||||
Long-term | 7,600 | 8,354 | - | 7,369 | 985 | 7,229 | 8,347 | - | 7,321 | 1,026 | |||||||||||||||||||||||||
debt2 | |||||||||||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Long-term | $ | 4,633 | $ | 5,046 | $ | - | $ | 4,061 | $ | 985 | $ | 4,338 | $ | 5,015 | $ | - | $ | 3,989 | $ | 1,026 | |||||||||||||||
debt3 | |||||||||||||||||||||||||||||||||||
1 Includes current portion of notes receivable of $58 million at September 30, 2013 and $40 million at December 31, 2012. | |||||||||||||||||||||||||||||||||||
2 Includes current portion of long-term debt of $511 million at September 30, 2013 and $519 million at December 31, 2012. | |||||||||||||||||||||||||||||||||||
3 Includes current portion of long-term debt of $42 million at September 30, 2013 and $41 million at December 31, 2012. | |||||||||||||||||||||||||||||||||||
Schedule Of Investment Securities | |||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||
Unrealized | Unrealized | Fair | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||||
Mutual funds | $ | 137 | $ | - | $ | - | $ | 137 | $ | 123 | $ | 3 | $ | - | $ | 126 | |||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||||||||
Debt securities | 10 | - | - | 10 | 9 | 1 | - | 10 | |||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||||
Mutual funds | $ | 96 | $ | - | $ | - | $ | 96 | $ | 83 | $ | 2 | $ | - | $ | 85 | |||||||||||||||||||
CMS Energy | |||||||||||||||||||||||||||||||||||
common stock | 5 | 24 | - | 29 | 6 | 26 | - | 32 | |||||||||||||||||||||||||||
Consumers Energy Company [Member] | |||||||||||||||||||||||||||||||||||
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | |||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||
Carrying | Level | Carrying | Level | ||||||||||||||||||||||||||||||||
Amount | Total | 1 | 2 | 3 | Amount | Total | 1 | 2 | 3 | ||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Securities held | $ | 10 | $ | 10 | $ | - | $ | 10 | $ | - | $ | 9 | $ | 10 | $ | - | $ | 10 | $ | - | |||||||||||||||
to maturity | |||||||||||||||||||||||||||||||||||
Notes | 597 | 629 | - | - | 629 | 544 | 581 | - | - | 581 | |||||||||||||||||||||||||
receivable1 | |||||||||||||||||||||||||||||||||||
Long-term | 7,600 | 8,354 | - | 7,369 | 985 | 7,229 | 8,347 | - | 7,321 | 1,026 | |||||||||||||||||||||||||
debt2 | |||||||||||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Long-term | $ | 4,633 | $ | 5,046 | $ | - | $ | 4,061 | $ | 985 | $ | 4,338 | $ | 5,015 | $ | - | $ | 3,989 | $ | 1,026 | |||||||||||||||
debt3 | |||||||||||||||||||||||||||||||||||
1 Includes current portion of notes receivable of $58 million at September 30, 2013 and $40 million at December 31, 2012. | |||||||||||||||||||||||||||||||||||
2 Includes current portion of long-term debt of $511 million at September 30, 2013 and $519 million at December 31, 2012. | |||||||||||||||||||||||||||||||||||
3 Includes current portion of long-term debt of $42 million at September 30, 2013 and $41 million at December 31, 2012. | |||||||||||||||||||||||||||||||||||
Schedule Of Investment Securities | |||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||
Unrealized | Unrealized | Fair | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||||
Mutual funds | $ | 137 | $ | - | $ | - | $ | 137 | $ | 123 | $ | 3 | $ | - | $ | 126 | |||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||||||||
Debt securities | 10 | - | - | 10 | 9 | 1 | - | 10 | |||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||||
Mutual funds | $ | 96 | $ | - | $ | - | $ | 96 | $ | 83 | $ | 2 | $ | - | $ | 85 | |||||||||||||||||||
CMS Energy | |||||||||||||||||||||||||||||||||||
common stock | 5 | 24 | - | 29 | 6 | 26 | - | 32 | |||||||||||||||||||||||||||
Notes_Receivable_Tables
Notes Receivable (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Schedule Of Current And Non-Current Notes Receivable | |||||||||||||||
In Millions | |||||||||||||||
30-Sep-13 | December 31, 2012 | ||||||||||||||
CMS Energy, including Consumers | |||||||||||||||
Current | |||||||||||||||
EnerBank notes receivable, net of allowance for loan losses | $ | 58 | $ | 40 | |||||||||||
Other | 26 | 1 | |||||||||||||
Non-current | |||||||||||||||
EnerBank notes receivable, net of allowance for loan losses | 539 | 504 | |||||||||||||
Other | - | 16 | |||||||||||||
Total notes receivable | $ | 623 | $ | 561 | |||||||||||
Consumers | |||||||||||||||
Current | |||||||||||||||
Other | $ | 25 | $ | - | |||||||||||
Non-current | |||||||||||||||
Other | - | 16 | |||||||||||||
Total notes receivable | $ | 25 | $ | 16 | |||||||||||
Schedule Of Allowance For Loan Losses | |||||||||||||||
In Millions | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
30-Sep | 2013 | 2012 | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 5 | $ | 5 | $ | 5 | $ | 5 | |||||||
Charge-offs | -1 | -2 | -4 | -4 | |||||||||||
Recoveries | - | 1 | 1 | 1 | |||||||||||
Provision for loan losses | 1 | 1 | 3 | 3 | |||||||||||
Balance at end of period | $ | 5 | $ | 5 | $ | 5 | $ | 5 | |||||||
Consumers Energy Company [Member] | |||||||||||||||
Schedule Of Current And Non-Current Notes Receivable | |||||||||||||||
In Millions | |||||||||||||||
30-Sep-13 | December 31, 2012 | ||||||||||||||
CMS Energy, including Consumers | |||||||||||||||
Current | |||||||||||||||
EnerBank notes receivable, net of allowance for loan losses | $ | 58 | $ | 40 | |||||||||||
Other | 26 | 1 | |||||||||||||
Non-current | |||||||||||||||
EnerBank notes receivable, net of allowance for loan losses | 539 | 504 | |||||||||||||
Other | - | 16 | |||||||||||||
Total notes receivable | $ | 623 | $ | 561 | |||||||||||
Consumers | |||||||||||||||
Current | |||||||||||||||
Other | $ | 25 | $ | - | |||||||||||
Non-current | |||||||||||||||
Other | - | 16 | |||||||||||||
Total notes receivable | $ | 25 | $ | 16 | |||||||||||
Retirement_Benefits_Tables
Retirement Benefits (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||
Schedule Of Net Benefit Costs | |||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
Pension | OPEB | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Net periodic cost (credit) | |||||||||||||||||||||||||||
Service cost | $ | 13 | $ | 12 | $ | 40 | $ | 36 | $ | 5 | $ | 8 | $ | 23 | $ | 24 | |||||||||||
Interest expense | 23 | 24 | 70 | 74 | 14 | 21 | 52 | 62 | |||||||||||||||||||
Expected return on plan | -32 | -31 | -96 | -94 | -20 | -17 | -58 | -50 | |||||||||||||||||||
assets | |||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||
Net loss | 24 | 19 | 72 | 57 | 3 | 12 | 24 | 35 | |||||||||||||||||||
Prior service | 1 | 1 | 3 | 4 | -10 | -5 | -20 | -15 | |||||||||||||||||||
cost (credit) | |||||||||||||||||||||||||||
Net periodic cost (credit) | $ | 29 | $ | 25 | $ | 89 | $ | 77 | $ | -8 | $ | 19 | $ | 21 | $ | 56 | |||||||||||
Consumers | |||||||||||||||||||||||||||
Net periodic cost (credit) | |||||||||||||||||||||||||||
Service cost | $ | 13 | $ | 12 | $ | 39 | $ | 35 | $ | 5 | $ | 7 | $ | 23 | $ | 23 | |||||||||||
Interest expense | 23 | 24 | 69 | 72 | 14 | 20 | 50 | 60 | |||||||||||||||||||
Expected return on plan | -31 | -30 | -94 | -91 | -19 | -15 | -54 | -46 | |||||||||||||||||||
assets | |||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||
Net loss | 23 | 18 | 70 | 55 | 3 | 12 | 24 | 35 | |||||||||||||||||||
Prior service | 1 | 1 | 3 | 4 | -10 | -5 | -20 | -15 | |||||||||||||||||||
cost (credit) | |||||||||||||||||||||||||||
Net periodic cost (credit) | $ | 29 | $ | 25 | $ | 87 | $ | 75 | $ | -7 | $ | 19 | $ | 23 | $ | 57 | |||||||||||
Consumers Energy Company [Member] | |||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||
Schedule Of Net Benefit Costs | |||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
Pension | OPEB | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Net periodic cost (credit) | |||||||||||||||||||||||||||
Service cost | $ | 13 | $ | 12 | $ | 40 | $ | 36 | $ | 5 | $ | 8 | $ | 23 | $ | 24 | |||||||||||
Interest expense | 23 | 24 | 70 | 74 | 14 | 21 | 52 | 62 | |||||||||||||||||||
Expected return on plan | -32 | -31 | -96 | -94 | -20 | -17 | -58 | -50 | |||||||||||||||||||
assets | |||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||
Net loss | 24 | 19 | 72 | 57 | 3 | 12 | 24 | 35 | |||||||||||||||||||
Prior service | 1 | 1 | 3 | 4 | -10 | -5 | -20 | -15 | |||||||||||||||||||
cost (credit) | |||||||||||||||||||||||||||
Net periodic cost (credit) | $ | 29 | $ | 25 | $ | 89 | $ | 77 | $ | -8 | $ | 19 | $ | 21 | $ | 56 | |||||||||||
Consumers | |||||||||||||||||||||||||||
Net periodic cost (credit) | |||||||||||||||||||||||||||
Service cost | $ | 13 | $ | 12 | $ | 39 | $ | 35 | $ | 5 | $ | 7 | $ | 23 | $ | 23 | |||||||||||
Interest expense | 23 | 24 | 69 | 72 | 14 | 20 | 50 | 60 | |||||||||||||||||||
Expected return on plan | -31 | -30 | -94 | -91 | -19 | -15 | -54 | -46 | |||||||||||||||||||
assets | |||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||
Net loss | 23 | 18 | 70 | 55 | 3 | 12 | 24 | 35 | |||||||||||||||||||
Prior service | 1 | 1 | 3 | 4 | -10 | -5 | -20 | -15 | |||||||||||||||||||
cost (credit) | |||||||||||||||||||||||||||
Net periodic cost (credit) | $ | 29 | $ | 25 | $ | 87 | $ | 75 | $ | -7 | $ | 19 | $ | 23 | $ | 57 | |||||||||||
Earnings_Per_Share_CMS_Energy_
Earnings Per Share - CMS Energy (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Earnings Per Share - CMS Energy [Abstract] | |||||||||||||||
Basic And Diluted EPS Computations | |||||||||||||||
In Millions, Except Per Share Amounts | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
30-Sep | 2013 | 2012 | 2013 | 2012 | |||||||||||
Income available to common stockholders | |||||||||||||||
Income from continuing operations | $ | 127 | $ | 149 | $ | 352 | $ | 310 | |||||||
Less income attributable to noncontrolling interests | 1 | 1 | 2 | 2 | |||||||||||
Income from continuing operations available to | $ | 126 | $ | 148 | $ | 350 | $ | 308 | |||||||
common stockholders – basic and diluted | |||||||||||||||
Average common shares outstanding | |||||||||||||||
Weighted-average shares – basic | 264.8 | 262.9 | 264.3 | 259.9 | |||||||||||
Add dilutive contingently convertible securities | 6.2 | 5.1 | 6.2 | 7.2 | |||||||||||
Add dilutive non-vested stock awards | 1.0 | 1.0 | 1.1 | 1.0 | |||||||||||
Weighted-average shares – diluted | 272.0 | 269.0 | 271.6 | 268.1 | |||||||||||
Income from continuing operations per average | |||||||||||||||
common share available to common stockholders | |||||||||||||||
Basic | $ | 0.48 | $ | 0.56 | $ | 1.32 | $ | 1.18 | |||||||
Diluted | 0.46 | 0.55 | 1.29 | 1.14 | |||||||||||
Reportable_Segments_Tables
Reportable Segments (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Reconciliation Of Segments To Consolidated | |||||||||||||||
In Millions | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
30-Sep | 2013 | 2012 | 2013 | 2012 | |||||||||||
CMS Energy, including Consumers | |||||||||||||||
Operating revenue | |||||||||||||||
Electric utility | $ | 1,188 | $ | 1,239 | $ | 3,175 | $ | 3,073 | |||||||
Gas utility | 198 | 209 | 1,472 | 1,332 | |||||||||||
Enterprises | 44 | 44 | 136 | 136 | |||||||||||
Other | 15 | 15 | 47 | 42 | |||||||||||
Total operating revenue – CMS Energy | $ | 1,445 | $ | 1,507 | $ | 4,830 | $ | 4,583 | |||||||
Consumers | |||||||||||||||
Operating revenue | |||||||||||||||
Electric utility | $ | 1,188 | $ | 1,239 | $ | 3,175 | $ | 3,073 | |||||||
Gas utility | 198 | 209 | 1,472 | 1,332 | |||||||||||
Total operating revenue – Consumers | $ | 1,386 | $ | 1,448 | $ | 4,647 | $ | 4,405 | |||||||
CMS Energy, including Consumers | |||||||||||||||
Net income (loss) available to common stockholders | |||||||||||||||
Electric utility | $ | 156 | $ | 165 | $ | 315 | $ | 297 | |||||||
Gas utility | -4 | -3 | 97 | 61 | |||||||||||
Enterprises | -4 | 5 | 1 | 9 | |||||||||||
Other | -22 | -19 | -63 | -52 | |||||||||||
Total net income available to common | |||||||||||||||
stockholders – CMS Energy | $ | 126 | $ | 148 | $ | 350 | $ | 315 | |||||||
Consumers | |||||||||||||||
Net income (loss) available to common stockholder | |||||||||||||||
Electric utility | $ | 156 | $ | 165 | $ | 315 | $ | 297 | |||||||
Gas utility | -4 | -3 | 97 | 61 | |||||||||||
Other | - | - | 1 | 1 | |||||||||||
Total net income available to common | |||||||||||||||
stockholder – Consumers | $ | 152 | $ | 162 | $ | 413 | $ | 359 | |||||||
In Millions | |||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||
CMS Energy, including Consumers | |||||||||||||||
Plant, property, and equipment, gross | |||||||||||||||
Electric utility | $ | 11,652 | $ | 11,041 | |||||||||||
Gas utility | 4,759 | 4,400 | |||||||||||||
Enterprises | 116 | 113 | |||||||||||||
Other | 39 | 38 | |||||||||||||
Total plant, property, and equipment, gross – CMS Energy | $ | 16,566 | $ | 15,592 | |||||||||||
Consumers | |||||||||||||||
Plant, property, and equipment, gross | |||||||||||||||
Electric utility | $ | 11,652 | $ | 11,041 | |||||||||||
Gas utility | 4,759 | 4,400 | |||||||||||||
Other | 15 | 15 | |||||||||||||
Total plant, property, and equipment, gross – Consumers | $ | 16,426 | $ | 15,456 | |||||||||||
CMS Energy, including Consumers | |||||||||||||||
Total assets | |||||||||||||||
Electric utility1 | $ | 10,412 | $ | 10,423 | |||||||||||
Gas utility1 | 5,039 | 5,016 | |||||||||||||
Enterprises | 188 | 181 | |||||||||||||
Other | 1,347 | 1,511 | |||||||||||||
Total assets – CMS Energy | $ | 16,986 | $ | 17,131 | |||||||||||
Consumers | |||||||||||||||
Total assets | |||||||||||||||
Electric utility1 | $ | 10,412 | $ | 10,423 | |||||||||||
Gas utility1 | 5,039 | 5,016 | |||||||||||||
Other | 643 | 836 | |||||||||||||
Total assets – Consumers | $ | 16,094 | $ | 16,275 | |||||||||||
Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. | |||||||||||||||
Consumers Energy Company [Member] | |||||||||||||||
Reconciliation Of Segments To Consolidated | |||||||||||||||
In Millions | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
30-Sep | 2013 | 2012 | 2013 | 2012 | |||||||||||
CMS Energy, including Consumers | |||||||||||||||
Operating revenue | |||||||||||||||
Electric utility | $ | 1,188 | $ | 1,239 | $ | 3,175 | $ | 3,073 | |||||||
Gas utility | 198 | 209 | 1,472 | 1,332 | |||||||||||
Enterprises | 44 | 44 | 136 | 136 | |||||||||||
Other | 15 | 15 | 47 | 42 | |||||||||||
Total operating revenue – CMS Energy | $ | 1,445 | $ | 1,507 | $ | 4,830 | $ | 4,583 | |||||||
Consumers | |||||||||||||||
Operating revenue | |||||||||||||||
Electric utility | $ | 1,188 | $ | 1,239 | $ | 3,175 | $ | 3,073 | |||||||
Gas utility | 198 | 209 | 1,472 | 1,332 | |||||||||||
Total operating revenue – Consumers | $ | 1,386 | $ | 1,448 | $ | 4,647 | $ | 4,405 | |||||||
CMS Energy, including Consumers | |||||||||||||||
Net income (loss) available to common stockholders | |||||||||||||||
Electric utility | $ | 156 | $ | 165 | $ | 315 | $ | 297 | |||||||
Gas utility | -4 | -3 | 97 | 61 | |||||||||||
Enterprises | -4 | 5 | 1 | 9 | |||||||||||
Other | -22 | -19 | -63 | -52 | |||||||||||
Total net income available to common | |||||||||||||||
stockholders – CMS Energy | $ | 126 | $ | 148 | $ | 350 | $ | 315 | |||||||
Consumers | |||||||||||||||
Net income (loss) available to common stockholder | |||||||||||||||
Electric utility | $ | 156 | $ | 165 | $ | 315 | $ | 297 | |||||||
Gas utility | -4 | -3 | 97 | 61 | |||||||||||
Other | - | - | 1 | 1 | |||||||||||
Total net income available to common | |||||||||||||||
stockholder – Consumers | $ | 152 | $ | 162 | $ | 413 | $ | 359 | |||||||
In Millions | |||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||
CMS Energy, including Consumers | |||||||||||||||
Plant, property, and equipment, gross | |||||||||||||||
Electric utility | $ | 11,652 | $ | 11,041 | |||||||||||
Gas utility | 4,759 | 4,400 | |||||||||||||
Enterprises | 116 | 113 | |||||||||||||
Other | 39 | 38 | |||||||||||||
Total plant, property, and equipment, gross – CMS Energy | $ | 16,566 | $ | 15,592 | |||||||||||
Consumers | |||||||||||||||
Plant, property, and equipment, gross | |||||||||||||||
Electric utility | $ | 11,652 | $ | 11,041 | |||||||||||
Gas utility | 4,759 | 4,400 | |||||||||||||
Other | 15 | 15 | |||||||||||||
Total plant, property, and equipment, gross – Consumers | $ | 16,426 | $ | 15,456 | |||||||||||
CMS Energy, including Consumers | |||||||||||||||
Total assets | |||||||||||||||
Electric utility1 | $ | 10,412 | $ | 10,423 | |||||||||||
Gas utility1 | 5,039 | 5,016 | |||||||||||||
Enterprises | 188 | 181 | |||||||||||||
Other | 1,347 | 1,511 | |||||||||||||
Total assets – CMS Energy | $ | 16,986 | $ | 17,131 | |||||||||||
Consumers | |||||||||||||||
Total assets | |||||||||||||||
Electric utility1 | $ | 10,412 | $ | 10,423 | |||||||||||
Gas utility1 | 5,039 | 5,016 | |||||||||||||
Other | 643 | 836 | |||||||||||||
Total assets – Consumers | $ | 16,094 | $ | 16,275 | |||||||||||
Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. | |||||||||||||||
Regulatory_Matters_Narrative_D
Regulatory Matters (Narrative) (Details) (USD $) | 9 Months Ended | 9 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | 31-May-13 | Mar. 31, 2013 | Jan. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | Aug. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2011 | Jul. 31, 2011 | Dec. 31, 2012 | Jan. 31, 2013 | Sep. 30, 2013 |
Consumers Energy Company [Member] | Consumers Energy Company [Member] | Electric Rate Case [Member] | Electric Rate Case [Member] | Electric Rate Case [Member] | Electric Rate Case [Member] | Electric Rate Case [Member] | 2010-2011 Gas Revenue Decoupling Mechanism [Member] | 2011-2012 Gas Revenue Decoupling Mechanism [Member] | Gas Revenue Decoupling Mechanism [Member] | Big Rock Decommissioning [Member] | DOE Settlement [Member] | DOE Settlement [Member] | Renewable Energy Grant [Member] | Renewable Energy Grant [Member] | |||
Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||||||||||
Annual rate increase requested | $145 | $148 | |||||||||||||||
Annual rate increase self-implemented | 110 | ||||||||||||||||
Annual rate increase authorized | 89 | 118 | |||||||||||||||
Rate of return on equity authorized | 10.30% | 10.30% | |||||||||||||||
Rate of return on equity requested | 10.50% | ||||||||||||||||
Regulatory assets, noncurrent | 1,579 | 2,287 | 1,579 | 2,287 | 85 | ||||||||||||
Amount paid to transfer ownership and responsibility | 30 | ||||||||||||||||
Nuclear fuel storage costs incurred as a result of the DOE's failure to accept spent nuclear fuel | 55 | ||||||||||||||||
Litigation settlement, gross | 120 | ||||||||||||||||
Proposed recovery of regulatory asset | 85 | ||||||||||||||||
Proposed refund of spent nuclear fuel disposal costs collected | 23 | ||||||||||||||||
Authorized Refund Of Spent Nuclear Fuel Disposal Costs Collected | 23 | ||||||||||||||||
Remaining Portion Of Litigation Settlement | 12 | ||||||||||||||||
Renewable energy grant received | 69 | 69 | 69 | ||||||||||||||
Recorded liability | 68 | ||||||||||||||||
Energy Optimization Incentive Requested for Exceeding 2012 Savings Targets | 17 | ||||||||||||||||
Authorized Recovery | 16 | ||||||||||||||||
Regulatory asset | 17 | ||||||||||||||||
Requested recovery | $17 |
Contingencies_And_Commitments_1
Contingencies And Commitments (Contingencies And Commitments) (Details) (USD $) | 9 Months Ended | 1 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 31, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2011 | Jul. 31, 2011 |
Consumers Energy Company [Member] | Consumers Energy Company [Member] | NREPA [Member] | Superfund Liability [Member] | Manufactured Gas Plant [Member] | Big Rock Decommissioning [Member] | DOE Settlement [Member] | ||||
Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | ||||||
item | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Demand for payment by USEPA | $7 | |||||||||
Cumulative environmental charge | 228 | |||||||||
Accrual for environmental loss contingencies | 55 | 4 | 2 | 121 | ||||||
Discounted projected costs rate | 4.34% | 2.57% | ||||||||
Accrual for environmental loss contingencies, inflation rate | 1.00% | 2.50% | ||||||||
Remaining undiscounted obligation amount | 73 | 131 | ||||||||
Foreign government tax claim on sale | 142 | |||||||||
Remediation and other response activity costs, minimum | 4 | 2 | ||||||||
Remediation and other response activity costs. maximum | 6 | 8 | ||||||||
Litigation settlement, gross | 120 | |||||||||
Number of former MGPs | 23 | |||||||||
Regulatory assets, noncurrent | $1,579 | $2,287 | $1,579 | $2,287 | $150 | $85 |
Contingencies_And_Commitments_2
Contingencies And Commitments (Expected Remediation Cost By Year) (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Site Contingency [Line Items] | |
Undiscounted amount due in next fiscal year | $12 |
Undiscounted amount due within two year | 4 |
Undiscounted amount due within third year | 4 |
Undiscounted amount due within fourth year | 4 |
Undiscounted amount due within five year | 4 |
Manufactured Gas Plant [Member] | Consumers Energy Company [Member] | |
Site Contingency [Line Items] | |
Undiscounted amount due within one year | 8 |
Undiscounted amount due within two year | 8 |
Undiscounted amount due within third year | 12 |
Undiscounted amount due within fourth year | 12 |
Undiscounted amount due within five year | $9 |
Contingencies_And_Commitments_3
Contingencies And Commitments (Guarantees) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | |
Consumers Energy Company [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantee Description | Indemnity obligations and other guarantees | |
Expiration Date | Various through SeptemberB 2029 | |
Maximum obligation | $30 | |
Carrying Amount | 1 | |
Guarantees [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantee Description | Guarantees | |
Expiration Date | Various through MarchB 2021 | |
Maximum obligation | 57 | |
Indemnity Obligations From Asset Sales And Other Agreements [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantee Description | Indemnity obligations from asset salesB B B and other agreements | |
Expiration Date | Various through SeptemberB 2029 | |
Maximum obligation | 476 | [1] |
Carrying Amount | $16 | |
[1] | The majority of this amount arises from stock and asset sale agreements under which CMSB Energy or a subsidiary of CMSB Energy, other than Consumers, indemnified the purchaser for losses resulting from various matters, including claims related to tax disputes, claims related to power purchase agreements, and defects in title to the assets or stock sold to the purchaser by CMSB Energy subsidiaries. Except for items described elsewhere in this Note, CMSB Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. |
Recovered_Sheet1
Financings and Capitalization (Narrative) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | 31-May-13 | Sep. 30, 2013 | Apr. 25, 2013 | Sep. 30, 2013 |
CMS Energy [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Short-Term Borrowings [Member] | Continuous Equity Program [Member] | Senior Notes 5.5% Due June 2029 [Member] | ||
$4.16 Series [Member] | Consumers Energy Company [Member] | ||||||
Financing And Capitalization [Line Items] | |||||||
Amount of Facility | $250,000,000 | ||||||
Accounts receivable sales facility, current borrowing capacity | 250,000,000 | ||||||
Average short-term borrowings | 7,000,000 | ||||||
Weighted average annual interest rate | 0.94% | ||||||
Number of trading days, adjusted trigger price contingencies were met | 20 days | ||||||
Number of trading days | 30 days | ||||||
Limitation on payment of stock dividends | 3,400,000,000 | ||||||
Unrestricted retained earnings | 650,000,000 | ||||||
Common stock dividends from Consumers | 300,000,000 | ||||||
Aggregate sales price of an equity offering program | 50,000,000 | ||||||
Preferred stock, par value | $4.16 | ||||||
Redemption price per share | $103.25 | ||||||
Redemption price | $7,000,000 | ||||||
Preferred shares outstanding | 68,451 |
Financings_And_Capitalization_1
Financings And Capitalization (Major Long-Term Debt Transactions) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Debt Issuance [Member] | |
Debt Instrument [Line Items] | |
Debt issuance, principal | $1,000,000,000 |
Debt Issuance [Member] | CMS Energy [Member] | |
Debt Instrument [Line Items] | |
Debt issuance, principal | 250,000,000 |
Debt Issuance [Member] | Consumers Energy Company [Member] | |
Debt Instrument [Line Items] | |
Debt issuance, principal | 750,000,000 |
Debt Issuance [Member] | Senior Notes 4.70% Due March 2043 [Member] | CMS Energy [Member] | |
Debt Instrument [Line Items] | |
Debt issuance, principal | 250,000,000 |
Interest rate | 4.70% |
Debt issuance date | MarchB 2013 |
Maturity date | Mar-43 |
Debt Issuance [Member] | First Mortgage Bonds 3.95% Due May 2043 [Member] | Consumers Energy Company [Member] | |
Debt Instrument [Line Items] | |
Debt issuance, principal | 425,000,000 |
Interest rate | 3.95% |
Debt issuance date | May-13 |
Maturity date | May-43 |
Debt Issuance [Member] | First Mortgage Bonds 3.375% Due August 2023 [Member] | Consumers Energy Company [Member] | |
Debt Instrument [Line Items] | |
Debt issuance, principal | 325,000,000 |
Interest rate | 3.38% |
Debt issuance date | Aug-13 |
Maturity date | Aug-23 |
Debt Retirements [Member] | |
Debt Instrument [Line Items] | |
Debt issuance, principal | 675,000,000 |
Debt Retirements [Member] | CMS Energy [Member] | |
Debt Instrument [Line Items] | |
Debt issuance, principal | 250,000,000 |
Debt Retirements [Member] | Consumers Energy Company [Member] | |
Debt Instrument [Line Items] | |
Debt issuance, principal | 425,000,000 |
Debt Retirements [Member] | Senior Notes 2.750% Due May 2014 [Member] | CMS Energy [Member] | |
Debt Instrument [Line Items] | |
Debt issuance, principal | 250,000,000 |
Interest rate | 2.75% |
Debt issuance date | Sep-13 |
Maturity date | May-14 |
Debt Retirements [Member] | First Mortgage Bonds 6% Due February 2014 [Member] | Consumers Energy Company [Member] | |
Debt Instrument [Line Items] | |
Debt issuance, principal | 200,000,000 |
Interest rate | 6.00% |
Debt issuance date | Jun-13 |
Maturity date | Feb-14 |
Debt Retirements [Member] | First Mortgage Bonds 5% Due March 2015 [Member] | Consumers Energy Company [Member] | |
Debt Instrument [Line Items] | |
Debt issuance, principal | $225,000,000 |
Interest rate | 5.00% |
Debt issuance date | Jun-13 |
Maturity date | Mar-15 |
Financings_And_Capitalization_2
Financings And Capitalization (Revolving Credit Facilities) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | |
Revolving Credit Facilities December 21, 2017 [Member] | CMS Energy [Member] | ||
Line of Credit Facility [Line Items] | ||
Expiration Date | 21-Dec-17 | [1] |
Amount of Facility | $550 | [1] |
Amount Borrowed | 25 | [1] |
Letters of Credit Outstanding | 2 | [1] |
Amount Available | 523 | [1] |
Revolving Credit Facilities December 21, 2017 [Member] | Consumers Energy Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Expiration Date | 21-Dec-17 | [2] |
Amount of Facility | 500 | [2] |
Amount Borrowed | [2] | |
Amount Available | 500 | [2] |
Revolving Credit Facilities April 18, 2017 [Member] | Consumers Energy Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Expiration Date | 18-Apr-17 | [2] |
Amount of Facility | 150 | [2] |
Amount Borrowed | [2] | |
Amount Available | 150 | [2] |
Revolving Credit Facilities September 9, 2014 [Member] | Consumers Energy Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Expiration Date | 9-Sep-14 | [2] |
Amount of Facility | 30 | [2] |
Amount Borrowed | [2] | |
Letters of Credit Outstanding | $30 | [2] |
[1] | Obligations under this facility are secured by Consumers common stock. | |
[2] | Obligations under this facility are secured by FMBs of Consumers. |
Financings_And_Capitalization_3
Financings And Capitalization (Contingently Convertible Securities) (Details) (Senior Notes 5.5% Due June 2029 [Member], USD $) | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Senior Notes 5.5% Due June 2029 [Member] | |
Debt Instrument [Line Items] | |
Maturity Date | 2029 |
Outstanding | $172 |
Adjusted Conversion Price | $13.74 |
Adjusted Trigger Price | $17.86 |
Interest rate | 5.50% |
Financings_And_Capitalization_4
Financings And Capitalization (Issuance Of Common Stock) (Details) (CMS Energy [Member], USD $) | 3 Months Ended | 30 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Sep. 30, 2013 |
CMS Energy [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Number of Shares Issued | 735,873 | 650,235 | 762,925 | 2,149,033 |
Average Price Per Share | $27.18 | $23.07 | $19.66 | $23.27 |
Proceeds | $20 | $15 | $15 | $50 |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets And Liabilties Measured At Fair Value On A Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $100 | $53 |
Restricted cash equivalents | 14 | 14 |
Nonqualified deferred compensation plan assets | 6 | 5 |
Commodity contracts | 9 | 3 |
Total | 266 | 203 |
Nonqualified deferred compensation plan liabilities | 6 | 5 |
Commodity contracts | 2 | 4 |
Total | 8 | 9 |
Consumers Energy Company [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 84 | |
Restricted cash equivalents | 13 | 13 |
Nonqualified deferred compensation plan assets | 4 | 4 |
Commodity contracts | 6 | 2 |
Total | 232 | 137 |
Nonqualified deferred compensation plan liabilities | 4 | 4 |
Total | 4 | 4 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 100 | 53 |
Restricted cash equivalents | 14 | 14 |
Nonqualified deferred compensation plan assets | 6 | 5 |
Total | 257 | 200 |
Nonqualified deferred compensation plan liabilities | 6 | 5 |
Total | 6 | 5 |
Fair Value, Inputs, Level 1 [Member] | Consumers Energy Company [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 84 | |
Restricted cash equivalents | 13 | 13 |
Nonqualified deferred compensation plan assets | 4 | 4 |
Total | 226 | 135 |
Nonqualified deferred compensation plan liabilities | 4 | 4 |
Total | 4 | 4 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity contracts | 2 | |
Total | 2 | |
Commodity contracts | 1 | 3 |
Total | 1 | 3 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity contracts | 7 | 3 |
Total | 7 | 3 |
Commodity contracts | 1 | 1 |
Total | 1 | 1 |
Fair Value, Inputs, Level 3 [Member] | Consumers Energy Company [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity contracts | 6 | 2 |
Total | 6 | 2 |
Supplemental Executive Retirement Plan [Member] | Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale - Fair Value | 2 | |
Supplemental Executive Retirement Plan [Member] | Cash Equivalents [Member] | Consumers Energy Company [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale - Fair Value | 1 | |
Supplemental Executive Retirement Plan [Member] | Mutual Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale - Fair Value | 137 | 126 |
Supplemental Executive Retirement Plan [Member] | Mutual Fund [Member] | Consumers Energy Company [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale - Fair Value | 96 | 85 |
Supplemental Executive Retirement Plan [Member] | Fair Value, Inputs, Level 1 [Member] | Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale - Fair Value | 2 | |
Supplemental Executive Retirement Plan [Member] | Fair Value, Inputs, Level 1 [Member] | Cash Equivalents [Member] | Consumers Energy Company [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale - Fair Value | 1 | |
Supplemental Executive Retirement Plan [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale - Fair Value | 137 | 126 |
Supplemental Executive Retirement Plan [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member] | Consumers Energy Company [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale - Fair Value | 96 | 85 |
CMS Energy Common Stock [Member] | Consumers Energy Company [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale - Fair Value | 29 | 32 |
CMS Energy Common Stock [Member] | Fair Value, Inputs, Level 1 [Member] | Consumers Energy Company [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale - Fair Value | $29 | $32 |
Financial_Instruments_Narrativ
Financial Instruments (Narrative) (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Financial Instruments [Line Items] | |||
Portion of long-term debt supported by third-party credit enhancements | $103 | $103 | |
Consumers Energy Company [Member] | |||
Financial Instruments [Line Items] | |||
Portion of long-term debt supported by third-party credit enhancements | 103 | 103 | |
Gain on donation of CMS Energy common stock | 4 | 5 | |
Supplemental Executive Retirement Plan [Member] | |||
Financial Instruments [Line Items] | |||
Contributions made to the plan | 16 | ||
Supplemental Executive Retirement Plan [Member] | Consumers Energy Company [Member] | |||
Financial Instruments [Line Items] | |||
Contributions made to the plan | $13 |
Financial_Instruments_Schedule
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities held to maturity, Carrying Amount | $10 | $9 | ||
Securities held to maturity - Fair Value | 10 | 10 | ||
Long-term debt, Carrying Amount | 7,600 | [1] | 7,229 | [1] |
Long-term debt, Fair Value | 8,354 | [1] | 8,347 | [1] |
Notes receivable | 84 | 41 | ||
Current portion of long-term debt | 511 | 519 | ||
Consumers Energy Company [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, Carrying Amount | 4,633 | [2] | 4,338 | [2] |
Long-term debt, Fair Value | 5,046 | [2] | 5,015 | [2] |
Notes receivable | 25 | |||
Current portion of long-term debt | 42 | 41 | ||
EnerBank [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes receivable, Carrying Amount | 597 | [3] | 544 | [3] |
Notes receivable, Fair Value | 629 | [3] | 581 | [3] |
Notes receivable | 58 | 40 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities held to maturity - Fair Value | ||||
Long-term debt, Fair Value | [1] | [1] | ||
Fair Value, Inputs, Level 1 [Member] | Consumers Energy Company [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, Fair Value | [2] | [2] | ||
Fair Value, Inputs, Level 1 [Member] | EnerBank [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes receivable, Fair Value | [3] | [3] | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities held to maturity - Fair Value | 10 | 10 | ||
Long-term debt, Fair Value | 7,369 | [1] | 7,321 | [1] |
Fair Value, Inputs, Level 2 [Member] | Consumers Energy Company [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, Fair Value | 4,061 | [2] | 3,989 | [2] |
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, Fair Value | 985 | [1] | 1,026 | [1] |
Fair Value, Inputs, Level 3 [Member] | Consumers Energy Company [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, Fair Value | 985 | [2] | 1,026 | [2] |
Fair Value, Inputs, Level 3 [Member] | EnerBank [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes receivable, Fair Value | $629 | [3] | $581 | [3] |
[1] | Includes current portion of long-term debt of $511B million at SeptemberB 30,B 2013 and $519B million at DecemberB 31,B 2012. | |||
[2] | Includes current portion of long-term debt of $42B million at SeptemberB 30,B 2013 and $41B million at DecemberB 31,B 2012. | |||
[3] | Includes current portion of notes receivable of $58B million at SeptemberB 30,B 2013 and $40B million at DecemberB 31,B 2012. |
Financial_Instruments_Schedule1
Financial Instruments (Schedule Of Investment Securities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Held to maturity Debt securities - Cost | $10 | $9 |
Held to maturity Debt securities - Unrealized Gains | 1 | |
Held to maturity Debt securities - Unrealized Losses | ||
Held to maturity Debt securities - Fair Value | 10 | 10 |
CMS Energy Common Stock [Member] | Consumers Energy Company [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available for sale - Cost | 5 | 6 |
Available for sale - Unrealized Gains | 24 | 26 |
Available for sale - Unrealized Losses | ||
Available for sale - Fair Value | 29 | 32 |
Supplemental Executive Retirement Plan [Member] | Mutual Fund [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available for sale - Cost | 137 | 123 |
Available for sale - Unrealized Gains | 3 | |
Available for sale - Unrealized Losses | ||
Available for sale - Fair Value | 137 | 126 |
Supplemental Executive Retirement Plan [Member] | Mutual Fund [Member] | Consumers Energy Company [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available for sale - Cost | 96 | 83 |
Available for sale - Unrealized Gains | 2 | |
Available for sale - Unrealized Losses | ||
Available for sale - Fair Value | $96 | $85 |
Notes_Receivable_Schedule_Of_C
Notes Receivable (Schedule Of Current And Non-Current Notes Receivable) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current notes receivable | $84 | $41 |
Total notes receivable | 623 | 561 |
Consumers Energy Company [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current notes receivable | 25 | |
Total notes receivable | 25 | 16 |
EnerBank [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current notes receivable | 58 | 40 |
Noncurrent notes receivable | 539 | 504 |
Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current notes receivable | 26 | 1 |
Noncurrent notes receivable | 16 | |
Other [Member] | Consumers Energy Company [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current notes receivable | 25 | |
Noncurrent notes receivable | $16 |
Notes_Receivable_Schedule_Of_A
Notes Receivable (Schedule Of Allowance For Loan Losses) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
EnerBank [Member] | EnerBank [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses, at beginning of period | $5 | $5 | $5 | $5 | ||
Charge-offs | -1 | -2 | -4 | -4 | ||
Recoveries | 1 | 1 | 1 | |||
Provision for loan losses | 1 | 1 | 3 | 3 | ||
Allowance for loan losses, at end of period | 5 | 5 | 5 | 5 | ||
Delinquent loans | 3 | 3 | ||||
Loans modified as troubled debt restructurings | $1 | $1 |
Retirement_Benefits_Narrative_
Retirement Benefits (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | |||||
Remeasurement As Of July 1, 2013 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | |||||||||||
Remeasurement As Of July 1, 2013 [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Discount rate | 5.10% | 4.40% | 5.10% | 4.40% | ||||||||||
Deacrease in liability | $638 | $614 | ||||||||||||
Regulatory asset decrease | 580 | 580 | ||||||||||||
Increase in regulatory liabilities | 34 | 34 | ||||||||||||
Decrease in AOCL | 24 | |||||||||||||
Decrease in expected cost | 48 | 46 | ||||||||||||
Decrease deferred tax assets | 148 | 144 | ||||||||||||
Reduced regulatory income tax liabilities | 144 | 144 | ||||||||||||
Increased income tax expense | $91 | $98 | $240 | $203 | $4 | $102 | $107 | $272 | $239 |
Retirement_Benefits_Schedule_O
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $13 | $12 | $40 | $36 |
Interest expense | 23 | 24 | 70 | 74 |
Expected return on plan assets | -32 | -31 | -96 | -94 |
Amortization of Net loss | 24 | 19 | 72 | 57 |
Amortization of Prior service cost (credit) | 1 | 1 | 3 | 4 |
Net periodic cost (credit) | 29 | 25 | 89 | 77 |
Pension Plans, Defined Benefit [Member] | Consumers Energy Company [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 13 | 12 | 39 | 35 |
Interest expense | 23 | 24 | 69 | 72 |
Expected return on plan assets | -31 | -30 | -94 | -91 |
Amortization of Net loss | 23 | 18 | 70 | 55 |
Amortization of Prior service cost (credit) | 1 | 1 | 3 | 4 |
Net periodic cost (credit) | 29 | 25 | 87 | 75 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 5 | 8 | 23 | 24 |
Interest expense | 14 | 21 | 52 | 62 |
Expected return on plan assets | -20 | -17 | -58 | -50 |
Amortization of Net loss | 3 | 12 | 24 | 35 |
Amortization of Prior service cost (credit) | -10 | -5 | -20 | -15 |
Net periodic cost (credit) | -8 | 19 | 21 | 56 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Consumers Energy Company [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 5 | 7 | 23 | 23 |
Interest expense | 14 | 20 | 50 | 60 |
Expected return on plan assets | -19 | -15 | -54 | -46 |
Amortization of Net loss | 3 | 12 | 24 | 35 |
Amortization of Prior service cost (credit) | -10 | -5 | -20 | -15 |
Net periodic cost (credit) | ($7) | $19 | $23 | $57 |
Earnings_Per_Share_CMS_Energy_1
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share - CMS Energy [Abstract] | ||||
Income From continuing operations | $127 | $149 | $352 | $310 |
Income attributable to noncontrolling interests | 1 | 1 | 2 | 2 |
Income from Continuing operations available to common stockholders basic and diluted | $126 | $148 | $350 | $308 |
Weighted average shares - basic | 264.8 | 262.9 | 264.3 | 259.9 |
Add dilutive contingently convertible securities | 6.2 | 5.1 | 6.2 | 7.2 |
Add dilutive non-vested awards | 1 | 1 | 1.1 | 1 |
Weighted average shares - diluted | 272 | 269 | 271.6 | 268.1 |
Basic | $0.48 | $0.56 | $1.32 | $1.18 |
Diluted | $0.46 | $0.55 | $1.29 | $1.14 |
Reportable_Segments_Details
Reportable Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||||
Operating Revenue | $1,445 | $1,507 | $4,830 | $4,583 | ||||
Total Net Income Available to Common Stockholders | 126 | 148 | 350 | 315 | ||||
Total Plant, Property, and Equipment, Gross | 16,566 | 16,566 | 15,592 | |||||
Total Assets | 16,986 | 16,986 | 17,131 | |||||
Consumers Energy Company [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating Revenue | 1,386 | 1,448 | 4,647 | 4,405 | ||||
Total Net Income Available to Common Stockholders | 152 | 162 | 413 | 359 | ||||
Total Plant, Property, and Equipment, Gross | 16,426 | 16,426 | 15,456 | |||||
Total Assets | 16,094 | 16,094 | 16,275 | |||||
Electric Utility [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating Revenue | 1,188 | 1,239 | 3,175 | 3,073 | ||||
Total Net Income Available to Common Stockholders | 156 | 165 | 315 | 297 | ||||
Total Plant, Property, and Equipment, Gross | 11,652 | 11,652 | 11,041 | |||||
Total Assets | 10,412 | [1] | 10,412 | [1] | 10,423 | [1] | ||
Electric Utility [Member] | Consumers Energy Company [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating Revenue | 1,188 | 1,239 | 3,175 | 3,073 | ||||
Total Net Income Available to Common Stockholders | 156 | 165 | 315 | 297 | ||||
Total Plant, Property, and Equipment, Gross | 11,652 | 11,652 | 11,041 | |||||
Total Assets | 10,412 | [1] | 10,412 | [1] | 10,423 | [1] | ||
Gas Utility [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating Revenue | 198 | 209 | 1,472 | 1,332 | ||||
Total Net Income Available to Common Stockholders | -4 | -3 | 97 | 61 | ||||
Total Plant, Property, and Equipment, Gross | 4,759 | 4,759 | 4,400 | |||||
Total Assets | 5,039 | [1] | 5,039 | [1] | 5,016 | [1] | ||
Gas Utility [Member] | Consumers Energy Company [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating Revenue | 198 | 209 | 1,472 | 1,332 | ||||
Total Net Income Available to Common Stockholders | -4 | -3 | 97 | 61 | ||||
Total Plant, Property, and Equipment, Gross | 4,759 | 4,759 | 4,400 | |||||
Total Assets | 5,039 | [1] | 5,039 | [1] | 5,016 | [1] | ||
Enterprises [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating Revenue | 44 | 44 | 136 | 136 | ||||
Total Net Income Available to Common Stockholders | -4 | 5 | 1 | 9 | ||||
Total Plant, Property, and Equipment, Gross | 116 | 116 | 113 | |||||
Total Assets | 188 | 188 | 181 | |||||
Other [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating Revenue | 15 | 15 | 47 | 42 | ||||
Total Net Income Available to Common Stockholders | -22 | -19 | -63 | -52 | ||||
Total Plant, Property, and Equipment, Gross | 39 | 39 | 38 | |||||
Total Assets | 1,347 | 1,347 | 1,511 | |||||
Other [Member] | Consumers Energy Company [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Total Net Income Available to Common Stockholders | 1 | 1 | ||||||
Total Plant, Property, and Equipment, Gross | 15 | 15 | 15 | |||||
Total Assets | $643 | $643 | $836 | |||||
[1] | Amounts include a portion of Consumersb other common assets attributable to both the electric and gas utility businesses. |