Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 07, 2014 | |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
Trading Symbol | 'cms | ' |
Entity Registrant Name | 'CMS Energy Corporation | ' |
Entity Central Index Key | '0000811156 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
CMS Energy [Member] | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 276,148,945 |
Consumers Energy Company [Member] | ' | ' |
Entity Registrant Name | 'Consumers Energy Company | ' |
Entity Central Index Key | '0000201533 | ' |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Operating Revenue | $1,430 | $1,445 | $5,421 | $4,830 |
Operating Expenses | ' | ' | ' | ' |
Fuel for electric generation | 161 | 165 | 534 | 466 |
Purchased and interchange power | 387 | 383 | 1,244 | 1,063 |
Purchased power - related parties | 21 | 21 | 67 | 67 |
Cost of gas sold | 86 | 76 | 1,107 | 849 |
Maintenance and other operating expenses | 329 | 284 | 899 | 870 |
Depreciation and amortization | 153 | 145 | 503 | 463 |
General taxes | 57 | 54 | 188 | 174 |
Total operating expenses | 1,194 | 1,128 | 4,542 | 3,952 |
Operating Income | 236 | 317 | 879 | 878 |
Other Income (Expense) | ' | ' | ' | ' |
Interest income | 1 | 1 | 2 | 3 |
Allowance for equity funds used during construction | 2 | 1 | 6 | 5 |
Income from equity method investees | 4 | 3 | 11 | 11 |
Other income | 2 | 2 | 8 | 7 |
Other expense | -3 | -7 | -26 | -13 |
Total other income | 6 | ' | 1 | 13 |
Interest Charges | ' | ' | ' | ' |
Interest on long-term debt | 98 | 96 | 294 | 289 |
Other interest expense | 4 | 3 | 12 | 12 |
Allowance for borrowed funds used during construction | -1 | ' | -3 | -2 |
Total interest charges | 101 | 99 | 303 | 299 |
Income Before Income Taxes | 141 | 218 | 577 | 592 |
Income Tax Expense | 47 | 91 | 195 | 240 |
Net Income | 94 | 127 | 382 | 352 |
Income Attributable to Noncontrolling Interests | ' | 1 | 1 | 2 |
Net Income Available to Common Stockholders | 94 | 126 | 381 | 350 |
Basic Earnings Per Average Common Share | $0.34 | $0.48 | $1.41 | $1.32 |
Diluted Earnings Per Average Common Share | $0.34 | $0.46 | $1.39 | $1.29 |
Dividends Declared Per Common Share | $0.27 | $0.26 | $0.81 | $0.77 |
Consumers Energy Company [Member] | ' | ' | ' | ' |
Operating Revenue | 1,359 | 1,386 | 5,128 | 4,647 |
Operating Expenses | ' | ' | ' | ' |
Fuel for electric generation | 137 | 148 | 455 | 406 |
Purchased and interchange power | 382 | 374 | 1,214 | 1,043 |
Purchased power - related parties | 21 | 21 | 67 | 67 |
Cost of gas sold | 71 | 64 | 1,006 | 818 |
Maintenance and other operating expenses | 296 | 269 | 834 | 824 |
Depreciation and amortization | 152 | 143 | 498 | 459 |
General taxes | 55 | 53 | 183 | 170 |
Total operating expenses | 1,114 | 1,072 | 4,257 | 3,787 |
Operating Income | 245 | 314 | 871 | 860 |
Other Income (Expense) | ' | ' | ' | ' |
Interest income | 1 | ' | 2 | 2 |
Interest and dividend income - related parties | 1 | 1 | 1 | 1 |
Allowance for equity funds used during construction | 2 | 1 | 6 | 5 |
Other income | 2 | 2 | 8 | 11 |
Other expense | -3 | -3 | -13 | -9 |
Total other income | 3 | 1 | 4 | 10 |
Interest Charges | ' | ' | ' | ' |
Interest on long-term debt | 62 | 58 | 180 | 177 |
Other interest expense | 3 | 2 | 8 | 8 |
Allowance for borrowed funds used during construction | -1 | ' | -3 | -2 |
Total interest charges | 64 | 60 | 185 | 183 |
Income Before Income Taxes | 184 | 255 | 690 | 687 |
Income Tax Expense | 65 | 102 | 241 | 272 |
Net Income | 119 | 153 | 449 | 415 |
Preferred Stock Dividends and Distribution | ' | 1 | 1 | 2 |
Net Income Available to Common Stockholders | $119 | $152 | $448 | $413 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net Income | $94 | $127 | $382 | $352 |
Retirement Benefits Liability | ' | ' | ' | ' |
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 | 2 | 3 |
Amortization of prior service credit, net of tax | -1 | ' | -1 | ' |
Investments | ' | ' | ' | ' |
Unrealized gain (loss) on investments, net of tax | ' | 1 | ' | -2 |
Derivative Instruments | ' | ' | ' | ' |
Reclassification adjustments included in net income, net of tax | ' | ' | 1 | ' |
Other Comprehensive Income (Loss) | ' | 17 | 2 | 16 |
Comprehensive Income | 94 | 144 | 384 | 368 |
Comprehensive Income Attributable to Noncontrolling Interest | ' | 1 | 1 | 2 |
Comprehensive Income Attributable to CMS Energy | 94 | 143 | 383 | 366 |
Consumers Energy Company [Member] | ' | ' | ' | ' |
Net Income | 119 | 153 | 449 | 415 |
Retirement Benefits Liability | ' | ' | ' | ' |
Amortization of net actuarial loss, net of tax | 1 | ' | 2 | 2 |
Investments | ' | ' | ' | ' |
Unrealized gain (loss) on investments, net of tax | -1 | ' | 2 | ' |
Reclassification adjustments included in net income, net of tax | ' | ' | ' | -3 |
Derivative Instruments | ' | ' | ' | ' |
Other Comprehensive Income (Loss) | ' | ' | 4 | -1 |
Comprehensive Income | $119 | $153 | $453 | $414 |
Consolidated_Statements_Of_Com1
Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net gain (loss) arising during the period, tax | ' | $6 | ' | $6 |
Tax on prior service credit adjustment | ' | 3 | ' | 3 |
Amortization of net actuarial loss, tax | ' | 1 | 1 | 2 |
Amortization of prior service credit, tax | ' | -1 | ' | -1 |
Reclassification adjustments included in net income (loss), tax | ' | ' | ' | ' |
Unrealized gain (loss) on investments, tax expense (tax benefit) | ' | -1 | ' | -1 |
Consumers Energy Company [Member] | ' | ' | ' | ' |
Amortization of net actuarial loss, tax | ' | 1 | ' | 1 |
Unrealized gain (loss) on investments, tax expense (tax benefit) | -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, 2014 | Sep. 30, 2013 |
Cash Flows from Operating Activities | ' | ' |
Net income | $382 | $352 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 503 | 463 |
Deferred income taxes and investment tax credit | 178 | 213 |
Postretirement benefits expense | 17 | 120 |
Other non-cash operating activities | 64 | 59 |
Postretirement benefits contributions | -5 | -109 |
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 | 111 | 134 |
Decrease (increase) in inventories | -161 | -6 |
Increase (decrease) in accounts payable | -14 | -32 |
Other current and non-current assets and liabilities | -113 | -145 |
Net cash provided by operating activities | 962 | 1,118 |
Cash Flows from Investing Activities | ' | ' |
Capital expenditures (excludes assets placed under capital lease) | -1,125 | -900 |
Cost to retire property | -62 | -38 |
Increase in EnerBank loans receivable | -164 | -53 |
Other investing activities | 4 | -13 |
Net cash used in investing activities | -1,347 | -1,004 |
Cash Flows from Financing Activities | ' | ' |
Proceeds from issuance of long-term debt | 1,428 | 1,025 |
Proceeds from EnerBank notes, net | 147 | 48 |
Issuance of common stock | 40 | 32 |
Retirement of long-term debt | -488 | -705 |
Payment of common and preferred stock dividends | -220 | -205 |
Decrease in notes payable | -170 | -110 |
Payment of capital lease obligations and other financing costs | -31 | -32 |
Net cash provided by financing activities | 706 | 53 |
Net Increase (Decrease) in Cash and Cash Equivalents | 321 | 167 |
Cash and Cash Equivalents, Beginning of Period | 172 | 93 |
Cash and Cash Equivalents, End of Period | 493 | 260 |
Consumers Energy Company [Member] | ' | ' |
Cash Flows from Operating Activities | ' | ' |
Net income | 449 | 415 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 498 | 459 |
Deferred income taxes and investment tax credit | 64 | 141 |
Postretirement benefits expense | 18 | 117 |
Other non-cash operating activities | 54 | 52 |
Postretirement benefits contributions | -3 | -106 |
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 | 120 | 135 |
Decrease (increase) in inventories | -163 | -5 |
Increase (decrease) in accounts payable | -6 | -22 |
Other current and non-current assets and liabilities | -83 | -121 |
Net cash provided by operating activities | 948 | 1,134 |
Cash Flows from Investing Activities | ' | ' |
Capital expenditures (excludes assets placed under capital lease) | -1,123 | -895 |
Cost to retire property | -62 | -38 |
Other investing activities | 3 | -12 |
Net cash used in investing activities | -1,182 | -945 |
Cash Flows from Financing Activities | ' | ' |
Proceeds from issuance of long-term debt | 878 | 750 |
Retirement of long-term debt | -208 | -455 |
Payment of common and preferred stock dividends | -376 | -302 |
Stockholder contribution | 317 | 150 |
Decrease in notes payable | -170 | -110 |
Payment of capital lease obligations and other financing costs | -25 | -28 |
Net cash provided by financing activities | 416 | 5 |
Net Increase (Decrease) in Cash and Cash Equivalents | 182 | 194 |
Cash and Cash Equivalents, Beginning of Period | 18 | 5 |
Cash and Cash Equivalents, End of Period | $200 | $199 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $493 | $172 |
Restricted cash and cash equivalents | 37 | 32 |
Accounts receivable and accrued revenue, less allowances | 683 | 914 |
Notes receivable | 96 | 63 |
Accounts receivable - related parties | 11 | 10 |
Accrued power supply and gas revenue | 109 | ' |
Inventories at average cost | ' | ' |
Gas in underground storage | 833 | 660 |
Materials and supplies | 114 | 107 |
Generating plant fuel stock | 96 | 114 |
Deferred income taxes | 48 | 126 |
Deferred property taxes | 128 | 202 |
Regulatory assets | 7 | 40 |
Prepayments and other current assets | 79 | 86 |
Total current assets | 2,734 | 2,526 |
Plant, Property, and Equipment | ' | ' |
Plant, property, and equipment, gross | 17,155 | 16,184 |
Less accumulated depreciation and amortization | 5,321 | 5,087 |
Plant, property, and equipment, net | 11,834 | 11,097 |
Construction work in progress | 1,211 | 1,149 |
Total plant, property, and equipment | 13,045 | 12,246 |
Other Non-current Assets | ' | ' |
Regulatory assets | 1,447 | 1,530 |
Accounts and notes receivable, less allowances | 759 | 646 |
Investments | 61 | 59 |
Other | 335 | 409 |
Total other non-current assets | 2,602 | 2,644 |
Total Assets | 18,381 | 17,416 |
Current Liabilities | ' | ' |
Current portion of long-term debt, capital leases, and financing obligation | 690 | 562 |
Notes payable | ' | 170 |
Accounts payable | 604 | 585 |
Accounts payable - related parties | 9 | 10 |
Accrued rate refunds | ' | 12 |
Accrued interest | 65 | 96 |
Accrued taxes | 89 | 297 |
Regulatory liabilities | 67 | 67 |
Other current liabilities | 124 | 146 |
Total current liabilities | 1,648 | 1,945 |
Non-current Liabilities | ' | ' |
Long-term debt | 8,042 | 7,101 |
Non-current portion of capital leases and financing obligations | 129 | 138 |
Regulatory liabilities | 2,189 | 2,215 |
Postretirement benefits | 242 | 239 |
Asset retirement obligations | 330 | 325 |
Deferred investment tax credit | 38 | 40 |
Deferred income taxes | 1,749 | 1,616 |
Other non-current liabilities | 307 | 306 |
Total non-current liabilities | 13,026 | 11,980 |
Commitments and Contingencies (Notes 2 and 3) | ' | ' |
Equity | ' | ' |
Common stock | 3 | 3 |
Other paid-in capital | 4,767 | 4,715 |
Accumulated other comprehensive income (loss) | -20 | -22 |
Retained earnings (Accumulated deficit) | -1,080 | -1,242 |
Total common stockholder's equity | 3,670 | 3,454 |
Noncontrolling interests | 37 | 37 |
Total equity | 3,707 | 3,491 |
Total Liabilities and Equity | 18,381 | 17,416 |
Consumers Energy Company [Member] | ' | ' |
Current Assets | ' | ' |
Cash and cash equivalents | 200 | 18 |
Restricted cash and cash equivalents | 37 | 31 |
Accounts receivable and accrued revenue, less allowances | 669 | 902 |
Notes receivable | ' | 14 |
Accounts receivable - related parties | 1 | 4 |
Accrued power supply and gas revenue | 109 | ' |
Inventories at average cost | ' | ' |
Gas in underground storage | 833 | 653 |
Materials and supplies | 110 | 103 |
Generating plant fuel stock | 89 | 113 |
Deferred property taxes | 128 | 202 |
Regulatory assets | 7 | 40 |
Prepayments and other current assets | 73 | 77 |
Total current assets | 2,256 | 2,157 |
Plant, Property, and Equipment | ' | ' |
Plant, property, and equipment, gross | 17,013 | 16,044 |
Less accumulated depreciation and amortization | 5,252 | 5,022 |
Plant, property, and equipment, net | 11,761 | 11,022 |
Construction work in progress | 1,208 | 1,147 |
Total plant, property, and equipment | 12,969 | 12,169 |
Other Non-current Assets | ' | ' |
Regulatory assets | 1,447 | 1,530 |
Accounts and notes receivable, less allowances | 7 | 11 |
Investments | 32 | 29 |
Other | 208 | 283 |
Total other non-current assets | 1,694 | 1,853 |
Total Assets | 16,919 | 16,179 |
Current Liabilities | ' | ' |
Current portion of long-term debt, capital leases, and financing obligation | 81 | 64 |
Notes payable | ' | 170 |
Accounts payable | 591 | 571 |
Accounts payable - related parties | 11 | 13 |
Accrued rate refunds | ' | 12 |
Accrued interest | 45 | 63 |
Accrued taxes | 159 | 353 |
Deferred income taxes | 108 | 55 |
Regulatory liabilities | 67 | 67 |
Other current liabilities | 99 | 112 |
Total current liabilities | 1,161 | 1,480 |
Non-current Liabilities | ' | ' |
Long-term debt | 5,230 | 4,579 |
Non-current portion of capital leases and financing obligations | 129 | 138 |
Regulatory liabilities | 2,189 | 2,215 |
Postretirement benefits | 183 | 179 |
Asset retirement obligations | 329 | 324 |
Deferred investment tax credit | 38 | 40 |
Deferred income taxes | 2,166 | 2,115 |
Other non-current liabilities | 243 | 252 |
Total non-current liabilities | 10,507 | 9,842 |
Commitments and Contingencies (Notes 2 and 3) | ' | ' |
Equity | ' | ' |
Common stock | 841 | 841 |
Other paid-in capital | 3,574 | 3,257 |
Accumulated other comprehensive income (loss) | 2 | -2 |
Retained earnings (Accumulated deficit) | 797 | 724 |
Total common stockholder's equity | 5,214 | 4,820 |
Preferred stock | 37 | 37 |
Total equity | 5,251 | 4,857 |
Total Liabilities and Equity | $16,919 | $16,179 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Allowances for doubtful accounts receivable | $36 | $33 |
Allowances for doubtful notes receivable | 6 | 5 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares outstanding | 275,100,000 | 266,100,000 |
Consumers Energy Company [Member] | ' | ' |
Allowances for doubtful accounts receivable | $34 | $31 |
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, 2013 | ' | $3,257 | ($9) | ($23) | $14 | $665 | $37 | $4,791 | ' | $4,710 | ($56) | ($54) | ($1) | ($1) | ($1,334) | $37 | $3,360 |
Common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification adjustments included in net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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, redemptions, 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 |
Total Equity, beginning at Dec. 31, 2012 | ' | 3,107 | -8 | -25 | 17 | 598 | 44 | 4,582 | ' | 4,669 | -55 | -56 | 2 | -1 | -1,423 | 44 | 3,238 |
Common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44 | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | -10 | ' | ' | ' | ' | ' | ' | ' |
Common stock reissued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' |
Stockholder contribution | ' | 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification adjustments included in net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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, redemptions, 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 Dec. 31, 2013 | ' | 3,257 | -2 | -17 | 15 | 724 | 37 | 4,857 | ' | 4,715 | -22 | -21 | ' | -1 | -1,242 | 37 | 3,491 |
Common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52 | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7 | ' | ' | ' | ' | ' | ' | ' |
Conversion option on convertible debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' |
Stockholder contribution | ' | 495 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Return of stockholder contribution | ' | -178 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of net actuarial loss | ' | ' | ' | 2 | ' | ' | ' | 2 | ' | ' | ' | 2 | ' | ' | ' | ' | 2 |
Amortization of prior service credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | ' | ' | ' | -1 |
Unrealized gain (loss) on investments, net of tax | ' | ' | ' | ' | 2 | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification adjustments included in net income, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification adjustments included in net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | -1 |
Net income attributable to CMS Energy | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 381 | ' | ' |
Net income | ' | ' | ' | ' | ' | 449 | ' | 449 | ' | ' | ' | ' | ' | ' | ' | ' | 382 |
Common stock dividends declared | ' | ' | ' | ' | ' | -375 | ' | ' | ' | ' | ' | ' | ' | ' | -219 | ' | ' |
Preferred stock dividends and distributions declared | ' | ' | ' | ' | ' | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 |
Distributions, redemptions, and other changes in noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' |
Preferred stock redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Equity, end at Sep. 30, 2014 | 841 | 3,574 | 2 | -15 | 17 | 797 | 37 | 5,251 | 3 | 4,767 | -20 | -20 | ' | ' | -1,080 | 37 | 3,707 |
Total Equity, beginning at Jun. 30, 2014 | ' | 3,572 | 2 | -16 | 18 | 798 | 37 | 5,250 | ' | 4,761 | -20 | -20 | ' | ' | -1,099 | 37 | 3,682 |
Common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | ' | ' | ' | ' | ' | ' |
Stockholder contribution | ' | 180 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Return of stockholder contribution | ' | -178 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of net actuarial loss | ' | ' | ' | 1 | ' | ' | ' | 1 | ' | ' | ' | 1 | ' | ' | ' | ' | 1 |
Amortization of prior service credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | ' | ' | ' | -1 |
Unrealized gain (loss) on investments, net of tax | ' | ' | ' | ' | -1 | ' | ' | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification adjustments included in net income, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification adjustments included in net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to CMS Energy | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94 | ' | ' |
Net income | ' | ' | ' | ' | ' | 119 | ' | 119 | ' | ' | ' | ' | ' | ' | ' | ' | 94 |
Common stock dividends declared | ' | ' | ' | ' | ' | -120 | ' | ' | ' | ' | ' | ' | ' | ' | -75 | ' | ' |
Distributions, redemptions, and other changes in noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Equity, end at Sep. 30, 2014 | $841 | $3,574 | $2 | ($15) | $17 | $797 | $37 | $5,251 | $3 | $4,767 | ($20) | ($20) | ' | ' | ($1,080) | $37 | $3,707 |
New_Accounting_Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Standards | ' |
1:New Accounting Standards | |
New Accounting Standards Not Yet Effective | |
ASU 2014‑09, Revenue from Contracts with Customers: This standard, which will become effective January 1, 2017 for CMS Energy and Consumers, was issued by the Financial Accounting Standards Board as a result of a joint project with the International Accounting Standards Board. The Boards developed a common revenue recognition model that will be applied under GAAP and International Financial Reporting Standards. The new guidance will replace most of the existing revenue recognition requirements in GAAP, although certain guidance specific to rate-regulated utilities will be retained. CMS Energy and Consumers are evaluating the impact of the standard on their consolidated financial statements. | |
ASU 2014‑12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period: This standard, which will become effective January 1, 2016 for CMS Energy and Consumers, addresses certain types of stock awards with performance targets. The standard will apply to certain restricted stock awards granted by CMS Energy and Consumers to retirement-eligible employees. CMS Energy and Consumers do not expect the standard to have any impact on their consolidated financial statements since the guidance in the standard is consistent with the accounting presently applied to these awards. | |
Consumers Energy Company [Member] | ' |
New Accounting Standards | ' |
1:New Accounting Standards | |
New Accounting Standards Not Yet Effective | |
ASU 2014‑09, Revenue from Contracts with Customers: This standard, which will become effective January 1, 2017 for CMS Energy and Consumers, was issued by the Financial Accounting Standards Board as a result of a joint project with the International Accounting Standards Board. The Boards developed a common revenue recognition model that will be applied under GAAP and International Financial Reporting Standards. The new guidance will replace most of the existing revenue recognition requirements in GAAP, although certain guidance specific to rate-regulated utilities will be retained. CMS Energy and Consumers are evaluating the impact of the standard on their consolidated financial statements. | |
ASU 2014‑12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period: This standard, which will become effective January 1, 2016 for CMS Energy and Consumers, addresses certain types of stock awards with performance targets. The standard will apply to certain restricted stock awards granted by CMS Energy and Consumers to retirement-eligible employees. CMS Energy and Consumers do not expect the standard to have any impact on their consolidated financial statements since the guidance in the standard is consistent with the accounting presently applied to these awards. | |
Regulatory_Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2014 | |
Regulatory Matters | ' |
2: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. | |
Securitization Financing Order: In July 2014, Consumers, through its subsidiary Consumers 2014 Securitization Funding, issued $378 million of Securitization bonds to finance the recovery of the remaining book value of seven smaller coal-fueled electric generating units and three smaller gas-fueled electric generating units that it plans to retire by April 2016. The MPSC approved the issuance of these bonds in its December 2013 Securitization financing order, and authorized Consumers to collect from its retail electric customers, with some exceptions, Securitization charges to cover the principal and interest on the bonds as well as certain other qualified costs. | |
Major Maintenance Reconciliation: In its June 2012 order in Consumers’ electric rate case, the MPSC allowed Consumers to defer major maintenance costs associated with its electric generating units in excess of the costs approved in the rate order and to recover those excess costs from customers, subject to MPSC approval. In May 2014, Consumers filed an application with the MPSC to recover $11 million of such excess costs over a 12-month period. | |
Income Tax Benefits Accounting Order: In September 2013, the MPSC issued an order authorizing Consumers to accelerate the flow-through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. The order authorized Consumers to implement a regulatory treatment beginning January 2014 that will return $209 million of income tax benefits over five years to electric customers and $260 million of income tax benefits over 12 years to gas customers. For the nine months ended September 30, 2014, this new treatment reduced Consumers’ income tax expense by $30 million. The new treatment, along with other cost saving initiatives that Consumers has undertaken, has allowed Consumers to avoid increasing electric and gas base rates during 2014. | |
Gas Cost Recovery and Power Supply Cost Recovery: Due to the impact on natural gas prices of extended periods of colder-than-normal winter weather in Michigan and throughout the United States during the three months ended March 31, 2014, Consumers’ natural gas fuel costs for this period were significantly higher than those projected in its 2013-2014 GCR plan. Consumers calculated an $84 million underrecovery for the 2013-2014 GCR plan year and, in the reconciliation it filed in June 2014, requested approval to roll this underrecovery into its 2014-2015 GCR plan. | |
Consumers had also filed an amendment to its 2014-2015 GCR plan in February 2014, requesting approval to increase the 2014-2015 GCR factor to be charged to customers. In May 2014, the MPSC issued an order approving a temporary increase to the GCR factor. Consumers may charge the increased factor to customers until the MPSC issues a final order in Consumers’ 2014-2015 GCR plan. Consumers had a $62 million GCR underrecovery recorded at September 30, 2014. | |
The severe winter weather also affected Consumers’ power supply costs. Extreme cold weather and heavy snowfall inhibited the delivery and use of coal at Consumers’ coal-fueled generating units. Additionally, increases in natural gas prices raised the cost of electricity purchased from the MISO energy market as well as the cost of power generated at Consumers’ gas-fueled generating units. As a result, Consumers’ power supply costs for 2014 are expected to be significantly higher than those projected in the 2014 PSCR plan it submitted to the MPSC in September 2013. Consumers had a $47 million PSCR underrecovery at September 30, 2014. | |
In March 2014, Consumers filed an amendment to its 2014 PSCR plan, requesting approval to increase the 2014 PSCR factor to be charged to customers beginning in July 2014. Consumers self-implemented the revised factor in July 2014. | |
Energy Optimization Plan: In May 2014, Consumers filed its annual report and reconciliation for its energy optimization plan, requesting approval of its energy optimization plan costs for 2013. In October 2014, Consumers filed a settlement agreement, which, if approved, would authorize Consumers to collect $18 million from customers during 2015 as an incentive payment for exceeding statutory targets under both its electric and gas energy optimization plans during 2013. | |
Consumers Energy Company [Member] | ' |
Regulatory Matters | ' |
2: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. | |
Securitization Financing Order: In July 2014, Consumers, through its subsidiary Consumers 2014 Securitization Funding, issued $378 million of Securitization bonds to finance the recovery of the remaining book value of seven smaller coal-fueled electric generating units and three smaller gas-fueled electric generating units that it plans to retire by April 2016. The MPSC approved the issuance of these bonds in its December 2013 Securitization financing order, and authorized Consumers to collect from its retail electric customers, with some exceptions, Securitization charges to cover the principal and interest on the bonds as well as certain other qualified costs. | |
Major Maintenance Reconciliation: In its June 2012 order in Consumers’ electric rate case, the MPSC allowed Consumers to defer major maintenance costs associated with its electric generating units in excess of the costs approved in the rate order and to recover those excess costs from customers, subject to MPSC approval. In May 2014, Consumers filed an application with the MPSC to recover $11 million of such excess costs over a 12-month period. | |
Income Tax Benefits Accounting Order: In September 2013, the MPSC issued an order authorizing Consumers to accelerate the flow-through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. The order authorized Consumers to implement a regulatory treatment beginning January 2014 that will return $209 million of income tax benefits over five years to electric customers and $260 million of income tax benefits over 12 years to gas customers. For the nine months ended September 30, 2014, this new treatment reduced Consumers’ income tax expense by $30 million. The new treatment, along with other cost saving initiatives that Consumers has undertaken, has allowed Consumers to avoid increasing electric and gas base rates during 2014. | |
Gas Cost Recovery and Power Supply Cost Recovery: Due to the impact on natural gas prices of extended periods of colder-than-normal winter weather in Michigan and throughout the United States during the three months ended March 31, 2014, Consumers’ natural gas fuel costs for this period were significantly higher than those projected in its 2013-2014 GCR plan. Consumers calculated an $84 million underrecovery for the 2013-2014 GCR plan year and, in the reconciliation it filed in June 2014, requested approval to roll this underrecovery into its 2014-2015 GCR plan. | |
Consumers had also filed an amendment to its 2014-2015 GCR plan in February 2014, requesting approval to increase the 2014-2015 GCR factor to be charged to customers. In May 2014, the MPSC issued an order approving a temporary increase to the GCR factor. Consumers may charge the increased factor to customers until the MPSC issues a final order in Consumers’ 2014-2015 GCR plan. Consumers had a $62 million GCR underrecovery recorded at September 30, 2014. | |
The severe winter weather also affected Consumers’ power supply costs. Extreme cold weather and heavy snowfall inhibited the delivery and use of coal at Consumers’ coal-fueled generating units. Additionally, increases in natural gas prices raised the cost of electricity purchased from the MISO energy market as well as the cost of power generated at Consumers’ gas-fueled generating units. As a result, Consumers’ power supply costs for 2014 are expected to be significantly higher than those projected in the 2014 PSCR plan it submitted to the MPSC in September 2013. Consumers had a $47 million PSCR underrecovery at September 30, 2014. | |
In March 2014, Consumers filed an amendment to its 2014 PSCR plan, requesting approval to increase the 2014 PSCR factor to be charged to customers beginning in July 2014. Consumers self-implemented the revised factor in July 2014. | |
Energy Optimization Plan: In May 2014, Consumers filed its annual report and reconciliation for its energy optimization plan, requesting approval of its energy optimization plan costs for 2013. In October 2014, Consumers filed a settlement agreement, which, if approved, would authorize Consumers to collect $18 million from customers during 2015 as an incentive payment for exceeding statutory targets under both its electric and gas energy optimization plans during 2013. | |
Contingencies_And_Commitments
Contingencies And Commitments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Contingencies And Commitments | ' | ||||||||||||||||
3: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 Litigation: CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, have been named as defendants in five class action 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. Plaintiffs are making claims for the following: full consideration damages, treble damages, exemplary damages, costs, interest, and/or attorney fees. | |||||||||||||||||
After removal to federal court, all of the cases were transferred to a single federal district court pursuant to the multidistrict litigation process. In 2010 and 2011, all claims against CMS Energy defendants were dismissed by the district court based on FERC preemption. 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 district court decision and remanded the case to the district court judge for further proceedings. The appellate court found that FERC preemption does not apply under the facts of these cases. The appellate court affirmed the district court’s denial of leave to amend to add federal antitrust claims. | |||||||||||||||||
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. In July 2014, the U.S. Supreme Court agreed to hear this case. Arguments are expected to occur early in 2015 with an opinion expected in the first half of 2015. | |||||||||||||||||
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 water quality criteria at the site. CMS Energy has completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit 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. The EPA is seeking recovery under CERCLA of response costs allegedly incurred at Bay Harbor. These costs exceed what was agreed to in a 2005 order between CMS Land and the EPA, and CMS Land has communicated to the EPA that it does not believe that this is a valid claim. In August 2014, the EPA indicated that it intends to pursue the claim. | |||||||||||||||||
In September 2014, CMS Energy recorded a charge of $15 million to increase the remaining liability for Bay Harbor as a result of changed cost estimates based on recent experience. Factors leading to the increase included higher water treatment costs, more frequent trucking of water due to system limitations, and increased system maintenance costs. CMS Energy has recorded a cumulative charge related to Bay Harbor of $245 million, which includes accretion expense. At September 30, 2014, CMS Energy had a recorded liability of $63 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 $82 million. CMS Energy expects to pay $8 million in 2014, $6 million in 2015, $6 million in 2016, $5 million in 2017, and $5 million in 2018, 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 changes in circumstances or assumptions used in calculating the liability. | |||||||||||||||||
Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. | |||||||||||||||||
Equatorial Guinea Tax Claim: In 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 significant penalties and interest, in connection with the sale and has requested arbitration. In early 2014, the parties engaged in a conciliation process, which did not resolve the matter. CMS Energy has concluded that the government’s tax claim is without merit. CMS Energy is vigorously contesting the claim but 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 for which it can estimate a range of loss will be between $4 million and $6 million. At September 30, 2014, 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 CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 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. 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 CERCLA sites will be between $3 million and $9 million. Various factors, including the number of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At September 30, 2014, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability. | |||||||||||||||||
The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. 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 CERCLA liability. | |||||||||||||||||
Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed and replaced part of the PCB material with non‑PCB material. Consumers has had several communications with the EPA regarding this matter. Consumers 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 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 purportedly 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. | |||||||||||||||||
In September 2014, Consumers reached a settlement in this matter with the EPA and the U.S. Department of Justice. Under the settlement, Consumers shall, among other things, install pollution control equipment at some of its coal-fueled electric generating plants and achieve certain emission rates for specific pollutants, surrender emission allowances, invest in $7.7 million of Environmental Mitigation Projects, retire or repower certain coal-fueled units, and pay a civil penalty of $2.75 million. Consumers has accrued an amount sufficient to cover the costs of the civil penalty and some of the Environmental Mitigation Projects. Consumers has recovered or 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 additional cost recovery. The settlement, completed via consent decree, was lodged in federal court in September 2014 and a thirty-day public comment period ended in October. If, in the judgment of the U.S. Department of Justice, the comments received do not call into question whether the settlement should be entered, then the U.S. Department of Justice will file a motion to enter the consent decree and the court will enter it by the end of 2014. | |||||||||||||||||
Renewable Energy Matters: In April 2013, a group of landowners filed a lawsuit in Mason County (Michigan) Circuit Court alleging, among other things, personal injury, loss of property value, and impacts to the use and enjoyment of their land as a result of the operations of Lake Winds® Energy Park. In October 2014, Consumers reached a settlement with a majority of the plaintiffs, which was not material to Consumers. Consumers believes that the outcome of the remaining lawsuits will not have a material adverse effect on its consolidated results of operations, financial condition, or liquidity. | |||||||||||||||||
Consumers Gas Utility Contingencies | |||||||||||||||||
Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under 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, 2014, Consumers had a recorded liability of $117 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 $132 million. Consumers expects to incur remediation and other response activity costs in 2014 and in each of the next four years as follows: | |||||||||||||||||
In Millions | |||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||
Consumers | |||||||||||||||||
Remediation and other response activity costs | $ | 7 | $ | 14 | $ | 12 | $ | 10 | $ | 19 | |||||||
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, 2014, Consumers had a regulatory asset of $147 million related to the MGP sites. | |||||||||||||||||
Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million. At September 30, 2014, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability. | |||||||||||||||||
Guarantees | |||||||||||||||||
Presented in the following table are CMS Energy’s and Consumers’ guarantees at September 30, 2014: | |||||||||||||||||
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 | $ | 450 | 1 | $ | 7 | ||||||||||
and other agreements | |||||||||||||||||
Guarantees | Various | Various through March 2021 | 54 | - | |||||||||||||
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 2, 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 | ' | ||||||||||||||||
3: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 Litigation: CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, have been named as defendants in five class action 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. Plaintiffs are making claims for the following: full consideration damages, treble damages, exemplary damages, costs, interest, and/or attorney fees. | |||||||||||||||||
After removal to federal court, all of the cases were transferred to a single federal district court pursuant to the multidistrict litigation process. In 2010 and 2011, all claims against CMS Energy defendants were dismissed by the district court based on FERC preemption. 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 district court decision and remanded the case to the district court judge for further proceedings. The appellate court found that FERC preemption does not apply under the facts of these cases. The appellate court affirmed the district court’s denial of leave to amend to add federal antitrust claims. | |||||||||||||||||
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. In July 2014, the U.S. Supreme Court agreed to hear this case. Arguments are expected to occur early in 2015 with an opinion expected in the first half of 2015. | |||||||||||||||||
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 water quality criteria at the site. CMS Energy has completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit 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. The EPA is seeking recovery under CERCLA of response costs allegedly incurred at Bay Harbor. These costs exceed what was agreed to in a 2005 order between CMS Land and the EPA, and CMS Land has communicated to the EPA that it does not believe that this is a valid claim. In August 2014, the EPA indicated that it intends to pursue the claim. | |||||||||||||||||
In September 2014, CMS Energy recorded a charge of $15 million to increase the remaining liability for Bay Harbor as a result of changed cost estimates based on recent experience. Factors leading to the increase included higher water treatment costs, more frequent trucking of water due to system limitations, and increased system maintenance costs. CMS Energy has recorded a cumulative charge related to Bay Harbor of $245 million, which includes accretion expense. At September 30, 2014, CMS Energy had a recorded liability of $63 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 $82 million. CMS Energy expects to pay $8 million in 2014, $6 million in 2015, $6 million in 2016, $5 million in 2017, and $5 million in 2018, 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 changes in circumstances or assumptions used in calculating the liability. | |||||||||||||||||
Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. | |||||||||||||||||
Equatorial Guinea Tax Claim: In 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 significant penalties and interest, in connection with the sale and has requested arbitration. In early 2014, the parties engaged in a conciliation process, which did not resolve the matter. CMS Energy has concluded that the government’s tax claim is without merit. CMS Energy is vigorously contesting the claim but 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 for which it can estimate a range of loss will be between $4 million and $6 million. At September 30, 2014, 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 CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 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. 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 CERCLA sites will be between $3 million and $9 million. Various factors, including the number of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At September 30, 2014, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability. | |||||||||||||||||
The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. 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 CERCLA liability. | |||||||||||||||||
Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed and replaced part of the PCB material with non‑PCB material. Consumers has had several communications with the EPA regarding this matter. Consumers 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 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 purportedly 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. | |||||||||||||||||
In September 2014, Consumers reached a settlement in this matter with the EPA and the U.S. Department of Justice. Under the settlement, Consumers shall, among other things, install pollution control equipment at some of its coal-fueled electric generating plants and achieve certain emission rates for specific pollutants, surrender emission allowances, invest in $7.7 million of Environmental Mitigation Projects, retire or repower certain coal-fueled units, and pay a civil penalty of $2.75 million. Consumers has accrued an amount sufficient to cover the costs of the civil penalty and some of the Environmental Mitigation Projects. Consumers has recovered or 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 additional cost recovery. The settlement, completed via consent decree, was lodged in federal court in September 2014 and a thirty-day public comment period ended in October. If, in the judgment of the U.S. Department of Justice, the comments received do not call into question whether the settlement should be entered, then the U.S. Department of Justice will file a motion to enter the consent decree and the court will enter it by the end of 2014. | |||||||||||||||||
Renewable Energy Matters: In April 2013, a group of landowners filed a lawsuit in Mason County (Michigan) Circuit Court alleging, among other things, personal injury, loss of property value, and impacts to the use and enjoyment of their land as a result of the operations of Lake Winds® Energy Park. In October 2014, Consumers reached a settlement with a majority of the plaintiffs, which was not material to Consumers. Consumers believes that the outcome of the remaining lawsuits will not have a material adverse effect on its consolidated results of operations, financial condition, or liquidity. | |||||||||||||||||
Consumers Gas Utility Contingencies | |||||||||||||||||
Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under 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, 2014, Consumers had a recorded liability of $117 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 $132 million. Consumers expects to incur remediation and other response activity costs in 2014 and in each of the next four years as follows: | |||||||||||||||||
In Millions | |||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||
Consumers | |||||||||||||||||
Remediation and other response activity costs | $ | 7 | $ | 14 | $ | 12 | $ | 10 | $ | 19 | |||||||
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, 2014, Consumers had a regulatory asset of $147 million related to the MGP sites. | |||||||||||||||||
Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million. At September 30, 2014, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability. | |||||||||||||||||
Guarantees | |||||||||||||||||
Presented in the following table are CMS Energy’s and Consumers’ guarantees at September 30, 2014: | |||||||||||||||||
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 | $ | 450 | 1 | $ | 7 | ||||||||||
and other agreements | |||||||||||||||||
Guarantees | Various | Various through March 2021 | 54 | - | |||||||||||||
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 2, 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, 2014 | ||||||||||||||
Financings And Capitalization | ' | |||||||||||||
4:FINANCINGS AND CAPITALIZATION | ||||||||||||||
Presented in the following table is a summary of major long-term debt transactions during the nine months ended September 30, 2014: | ||||||||||||||
Principal | Issue/Retirement | |||||||||||||
(In Millions) | Interest Rate | Date | Maturity Date | |||||||||||
Debt issuances | ||||||||||||||
CMS Energy | ||||||||||||||
Senior notes1 | $ | 250 | 3.875 | % | February 2014 | March 2024 | ||||||||
Senior notes1 | 300 | 4.875 | Feb-14 | March 2044 | ||||||||||
Total CMS Energy parent | $ | 550 | ||||||||||||
Consumers | ||||||||||||||
Securitization bonds2 | $ | 124 | 1.334 | % | Jul-14 | Nov-20 | ||||||||
Securitization bonds2 | 139 | 2.962 | Jul-14 | Nov-25 | ||||||||||
Securitization bonds2 | 115 | 3.528 | Jul-14 | May-29 | ||||||||||
FMBs | 250 | 3.125 | Aug-14 | Aug-24 | ||||||||||
FMBs | 250 | 4.350 | Aug-14 | Aug-64 | ||||||||||
Total Consumers | $ | 878 | ||||||||||||
Total debt issuances | $ | 1,428 | ||||||||||||
Debt retirements | ||||||||||||||
CMS Energy | ||||||||||||||
Senior notes3 | $ | 125 | 6.875 | % | Apr-14 | Dec-15 | ||||||||
Senior notes | 155 | 5.500 | Jun-14 | Jun-29 | ||||||||||
Total CMS Energy parent | $ | 280 | ||||||||||||
Consumers | ||||||||||||||
FMBs | $ | 177 | 5.500 | % | Aug-14 | Aug-16 | ||||||||
Total Consumers | $ | 177 | ||||||||||||
Total debt retirements | $ | 457 | ||||||||||||
1 | CMS Energy used a portion of these proceeds to retire its $125 million 6.875 percent senior notes due December 2015 and its $155 million 5.5 percent convertible senior notes due June 2029. CMS Energy intends to use the remaining proceeds for general corporate purposes. | |||||||||||||
2 | These Securitization bonds are collateralized by certain regulatory assets held by Consumers 2014 Securitization Funding. The bondholders have no recourse to Consumers’ other assets. Through its rate structure, Consumers collects from its retail electric customers, with some exceptions, Securitization charges to cover the principal and interest on the bonds as well as certain other qualified costs. The surcharges collected are remitted to a trustee and are not available to creditors of Consumers or creditors of Consumers’ affiliates other than Consumers 2014 Securitization Funding. Consumers used the proceeds from the Securitization property to retire $177 million of its 5.5 percent FMBs due August 2016 and $178 million of its equity. For additional details regarding the Securitization, see Note 2, Regulatory Matters. | |||||||||||||
3 | CMS Energy retired this debt at a premium and recorded a loss on extinguishment of $13 million in other expense on its consolidated statements of income. | |||||||||||||
Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. In June 2014, Consumers received authorization from FERC to have outstanding, at any one time, up to $800 million of secured and unsecured short-term securities for general corporate purposes. FERC has also authorized Consumers to issue and sell up to $1.9 billion of secured and unsecured long-term securities for general corporate purposes. The authorization, which was effective July 1, 2014 and terminates on June 30, 2016, exceeds Consumers’ anticipated financing needs for this period. | ||||||||||||||
Revolving Credit Facilities: The following secured revolving credit facilities with banks were available at September 30, 2014: | ||||||||||||||
In Millions | ||||||||||||||
Letters of Credit | ||||||||||||||
Expiration Date | Amount of Facility | Amount Borrowed | Outstanding | Amount Available | ||||||||||
CMS Energy | ||||||||||||||
December 20, 20181 | $ | 550 | $ | - | $ | 2 | $ | 548 | ||||||
Consumers | ||||||||||||||
December 20, 20182 | $ | 650 | $ | - | $ | - | $ | 650 | ||||||
May 9, 20182 | 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, 2014, $250 million of accounts receivable were eligible for transfer. During the nine months ended September 30, 2014, Consumers’ average short-term borrowings totaled $15 million, with a weighted-average annual interest rate of 0.85 percent. | ||||||||||||||
In September 2014, Consumers entered into a commercial paper program. Under the program, Consumers may issue, in one or more placements, commercial paper notes with maturities up to 365 days and that bear interest at fixed or floating rates. These issuances are backed by Consumers’ $650 million revolving credit facility and may have an aggregate principal amount outstanding of up to $500 million. At September 30, 2014, there were no notes outstanding under this program. | ||||||||||||||
Contingently Convertible Securities: Presented in the following table are details about conversions of contingently convertible securities during the nine months ended September 30, 2014: | ||||||||||||||
Weighted-Average | Shares | |||||||||||||
Principal | Conversion | of Common | Cash Paid on | |||||||||||
Conversion | Converted | Value per $1,000 | Stock Issued | Settlement | ||||||||||
Date | (In Millions) | of Principal | on Settlement | (In Millions) | ||||||||||
5.50% senior notes due 2029 | February 2014 | $ | 17 | $ | 1,968 | 605,531 | $ | 17 | ||||||
5.50% senior notes due 2029 | Jun-14 | 155 | 2,215 | 6,372,578 | 155 | |||||||||
Dividend Restrictions: Under provisions of the Michigan Business Corporation Act of 1972, as amended, at September 30, 2014, payment of common stock dividends by CMS Energy was limited to $3.7 billion. | ||||||||||||||
Under the provisions of its articles of incorporation, at September 30, 2014, Consumers had $735 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 be subject to a formal regulatory filing process. | ||||||||||||||
For the nine months ended September 30, 2014, Consumers paid $375 million in dividends on its common stock to CMS Energy. | ||||||||||||||
Issuance of Common Stock: In April 2013, CMS Energy entered into a continuous equity offering program 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 program: | ||||||||||||||
Number of | Average | Proceeds | ||||||||||||
Shares Issued | Price per Share | (In Millions) | ||||||||||||
Mar-14 | 1,070,080 | $ | 28.04 | $ | 30 | |||||||||
Consumers Energy Company [Member] | ' | |||||||||||||
Financings And Capitalization | ' | |||||||||||||
4:FINANCINGS AND CAPITALIZATION | ||||||||||||||
Presented in the following table is a summary of major long-term debt transactions during the nine months ended September 30, 2014: | ||||||||||||||
Principal | Issue/Retirement | |||||||||||||
(In Millions) | Interest Rate | Date | Maturity Date | |||||||||||
Debt issuances | ||||||||||||||
CMS Energy | ||||||||||||||
Senior notes1 | $ | 250 | 3.875 | % | February 2014 | March 2024 | ||||||||
Senior notes1 | 300 | 4.875 | Feb-14 | March 2044 | ||||||||||
Total CMS Energy parent | $ | 550 | ||||||||||||
Consumers | ||||||||||||||
Securitization bonds2 | $ | 124 | 1.334 | % | Jul-14 | Nov-20 | ||||||||
Securitization bonds2 | 139 | 2.962 | Jul-14 | Nov-25 | ||||||||||
Securitization bonds2 | 115 | 3.528 | Jul-14 | May-29 | ||||||||||
FMBs | 250 | 3.125 | Aug-14 | Aug-24 | ||||||||||
FMBs | 250 | 4.350 | Aug-14 | Aug-64 | ||||||||||
Total Consumers | $ | 878 | ||||||||||||
Total debt issuances | $ | 1,428 | ||||||||||||
Debt retirements | ||||||||||||||
CMS Energy | ||||||||||||||
Senior notes3 | $ | 125 | 6.875 | % | Apr-14 | Dec-15 | ||||||||
Senior notes | 155 | 5.500 | Jun-14 | Jun-29 | ||||||||||
Total CMS Energy parent | $ | 280 | ||||||||||||
Consumers | ||||||||||||||
FMBs | $ | 177 | 5.500 | % | Aug-14 | Aug-16 | ||||||||
Total Consumers | $ | 177 | ||||||||||||
Total debt retirements | $ | 457 | ||||||||||||
1 | CMS Energy used a portion of these proceeds to retire its $125 million 6.875 percent senior notes due December 2015 and its $155 million 5.5 percent convertible senior notes due June 2029. CMS Energy intends to use the remaining proceeds for general corporate purposes. | |||||||||||||
2 | These Securitization bonds are collateralized by certain regulatory assets held by Consumers 2014 Securitization Funding. The bondholders have no recourse to Consumers’ other assets. Through its rate structure, Consumers collects from its retail electric customers, with some exceptions, Securitization charges to cover the principal and interest on the bonds as well as certain other qualified costs. The surcharges collected are remitted to a trustee and are not available to creditors of Consumers or creditors of Consumers’ affiliates other than Consumers 2014 Securitization Funding. Consumers used the proceeds from the Securitization property to retire $177 million of its 5.5 percent FMBs due August 2016 and $178 million of its equity. For additional details regarding the Securitization, see Note 2, Regulatory Matters. | |||||||||||||
3 | CMS Energy retired this debt at a premium and recorded a loss on extinguishment of $13 million in other expense on its consolidated statements of income. | |||||||||||||
Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. In June 2014, Consumers received authorization from FERC to have outstanding, at any one time, up to $800 million of secured and unsecured short-term securities for general corporate purposes. FERC has also authorized Consumers to issue and sell up to $1.9 billion of secured and unsecured long-term securities for general corporate purposes. The authorization, which was effective July 1, 2014 and terminates on June 30, 2016, exceeds Consumers’ anticipated financing needs for this period. | ||||||||||||||
Revolving Credit Facilities: The following secured revolving credit facilities with banks were available at September 30, 2014: | ||||||||||||||
In Millions | ||||||||||||||
Letters of Credit | ||||||||||||||
Expiration Date | Amount of Facility | Amount Borrowed | Outstanding | Amount Available | ||||||||||
CMS Energy | ||||||||||||||
December 20, 20181 | $ | 550 | $ | - | $ | 2 | $ | 548 | ||||||
Consumers | ||||||||||||||
December 20, 20182 | $ | 650 | $ | - | $ | - | $ | 650 | ||||||
May 9, 20182 | 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, 2014, $250 million of accounts receivable were eligible for transfer. During the nine months ended September 30, 2014, Consumers’ average short-term borrowings totaled $15 million, with a weighted-average annual interest rate of 0.85 percent. | ||||||||||||||
In September 2014, Consumers entered into a commercial paper program. Under the program, Consumers may issue, in one or more placements, commercial paper notes with maturities up to 365 days and that bear interest at fixed or floating rates. These issuances are backed by Consumers’ $650 million revolving credit facility and may have an aggregate principal amount outstanding of up to $500 million. At September 30, 2014, there were no notes outstanding under this program. | ||||||||||||||
Contingently Convertible Securities: Presented in the following table are details about conversions of contingently convertible securities during the nine months ended September 30, 2014: | ||||||||||||||
Weighted-Average | Shares | |||||||||||||
Principal | Conversion | of Common | Cash Paid on | |||||||||||
Conversion | Converted | Value per $1,000 | Stock Issued | Settlement | ||||||||||
Date | (In Millions) | of Principal | on Settlement | (In Millions) | ||||||||||
5.50% senior notes due 2029 | February 2014 | $ | 17 | $ | 1,968 | 605,531 | $ | 17 | ||||||
5.50% senior notes due 2029 | Jun-14 | 155 | 2,215 | 6,372,578 | 155 | |||||||||
Dividend Restrictions: Under provisions of the Michigan Business Corporation Act of 1972, as amended, at September 30, 2014, payment of common stock dividends by CMS Energy was limited to $3.7 billion. | ||||||||||||||
Under the provisions of its articles of incorporation, at September 30, 2014, Consumers had $735 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 be subject to a formal regulatory filing process. | ||||||||||||||
For the nine months ended September 30, 2014, Consumers paid $375 million in dividends on its common stock to CMS Energy. | ||||||||||||||
Issuance of Common Stock: In April 2013, CMS Energy entered into a continuous equity offering program 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 program: | ||||||||||||||
Number of | Average | Proceeds | ||||||||||||
Shares Issued | Price per Share | (In Millions) | ||||||||||||
Mar-14 | 1,070,080 | $ | 28.04 | $ | 30 | |||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
5: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 recorded at fair value on a recurring basis: | |||||||||||||||||
In Millions | |||||||||||||||||
CMS Energy, including Consumers | Consumers | ||||||||||||||||
September 30 | December 31 | September 30 | December 31 | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Assets1 | |||||||||||||||||
Cash equivalents | $ | 394 | $ | 87 | $ | 146 | $ | - | |||||||||
Restricted cash equivalents | 37 | 16 | 37 | 15 | |||||||||||||
CMS Energy common stock | - | - | 32 | 29 | |||||||||||||
Nonqualified deferred | 8 | 6 | 5 | 4 | |||||||||||||
compensation plan assets | |||||||||||||||||
DB SERP | |||||||||||||||||
Cash equivalents | 2 | - | 1 | - | |||||||||||||
Mutual funds | 131 | 136 | 93 | 95 | |||||||||||||
Derivative instruments | |||||||||||||||||
Commodity contracts | 4 | 5 | 3 | 4 | |||||||||||||
Total | $ | 576 | $ | 250 | $ | 317 | $ | 147 | |||||||||
Liabilities1 | |||||||||||||||||
Nonqualified deferred | $ | 8 | $ | 6 | $ | 5 | $ | 4 | |||||||||
compensation plan liabilities | |||||||||||||||||
Derivative instruments | |||||||||||||||||
Commodity contracts | 2 | 1 | 2 | - | |||||||||||||
Total | $ | 10 | $ | 7 | $ | 7 | $ | 4 | |||||||||
1 | All assets and liabilities were classified as Level 1 with the exception of commodity contracts, which were classified as Level 2 or Level 3, and which were insignificant at September 30, 2014. | ||||||||||||||||
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 6, 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 majority of derivatives classified as Level 3 are FTRs held by Consumers. Consumers uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. 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 | |||||||||||||||||
Presented in the following table are reconciliations of changes in the fair values of Level 3 assets and liabilities at CMS Energy and Consumers: | |||||||||||||||||
In Millions | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep | 2014 | 2013 | 2014 | 2013 | |||||||||||||
CMS Energy, including Consumers | |||||||||||||||||
Balance at beginning of period | $ | 1 | $ | 8 | $ | 4 | $ | 2 | |||||||||
Total gains (losses) offset through regulatory accounting | 2 | -2 | -16 | 5 | |||||||||||||
Purchases | - | 1 | -1 | - | |||||||||||||
Settlements | -2 | -1 | 14 | -1 | |||||||||||||
Balance at end of period | $ | 1 | $ | 6 | $ | 1 | $ | 6 | |||||||||
Unrealized gains included in earnings relating to assets and | $ | - | $ | 1 | $ | - | $ | - | |||||||||
liabilities still held at end of period1 | |||||||||||||||||
Consumers | |||||||||||||||||
Balance at beginning of period | $ | 1 | $ | 10 | $ | 4 | $ | 2 | |||||||||
Total gains (losses) offset through regulatory accounting | 2 | -2 | -16 | 5 | |||||||||||||
Purchases | - | -1 | -1 | - | |||||||||||||
Settlements | -2 | -1 | 14 | -1 | |||||||||||||
Balance at end of period | $ | 1 | $ | 6 | $ | 1 | $ | 6 | |||||||||
1 | CMS Energy records realized and unrealized gains and losses for Level 3 recurring fair value measurements in earnings as a component of operating revenue or maintenance and other operating expenses on its consolidated statements of income. | ||||||||||||||||
Consumers Energy Company [Member] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
5: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 recorded at fair value on a recurring basis: | |||||||||||||||||
In Millions | |||||||||||||||||
CMS Energy, including Consumers | Consumers | ||||||||||||||||
September 30 | December 31 | September 30 | December 31 | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Assets1 | |||||||||||||||||
Cash equivalents | $ | 394 | $ | 87 | $ | 146 | $ | - | |||||||||
Restricted cash equivalents | 37 | 16 | 37 | 15 | |||||||||||||
CMS Energy common stock | - | - | 32 | 29 | |||||||||||||
Nonqualified deferred | 8 | 6 | 5 | 4 | |||||||||||||
compensation plan assets | |||||||||||||||||
DB SERP | |||||||||||||||||
Cash equivalents | 2 | - | 1 | - | |||||||||||||
Mutual funds | 131 | 136 | 93 | 95 | |||||||||||||
Derivative instruments | |||||||||||||||||
Commodity contracts | 4 | 5 | 3 | 4 | |||||||||||||
Total | $ | 576 | $ | 250 | $ | 317 | $ | 147 | |||||||||
Liabilities1 | |||||||||||||||||
Nonqualified deferred | $ | 8 | $ | 6 | $ | 5 | $ | 4 | |||||||||
compensation plan liabilities | |||||||||||||||||
Derivative instruments | |||||||||||||||||
Commodity contracts | 2 | 1 | 2 | - | |||||||||||||
Total | $ | 10 | $ | 7 | $ | 7 | $ | 4 | |||||||||
1 | All assets and liabilities were classified as Level 1 with the exception of commodity contracts, which were classified as Level 2 or Level 3, and which were insignificant at September 30, 2014. | ||||||||||||||||
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 6, 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 majority of derivatives classified as Level 3 are FTRs held by Consumers. Consumers uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. 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 | |||||||||||||||||
Presented in the following table are reconciliations of changes in the fair values of Level 3 assets and liabilities at CMS Energy and Consumers: | |||||||||||||||||
In Millions | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep | 2014 | 2013 | 2014 | 2013 | |||||||||||||
CMS Energy, including Consumers | |||||||||||||||||
Balance at beginning of period | $ | 1 | $ | 8 | $ | 4 | $ | 2 | |||||||||
Total gains (losses) offset through regulatory accounting | 2 | -2 | -16 | 5 | |||||||||||||
Purchases | - | 1 | -1 | - | |||||||||||||
Settlements | -2 | -1 | 14 | -1 | |||||||||||||
Balance at end of period | $ | 1 | $ | 6 | $ | 1 | $ | 6 | |||||||||
Unrealized gains included in earnings relating to assets and | $ | - | $ | 1 | $ | - | $ | - | |||||||||
liabilities still held at end of period1 | |||||||||||||||||
Consumers | |||||||||||||||||
Balance at beginning of period | $ | 1 | $ | 10 | $ | 4 | $ | 2 | |||||||||
Total gains (losses) offset through regulatory accounting | 2 | -2 | -16 | 5 | |||||||||||||
Purchases | - | -1 | -1 | - | |||||||||||||
Settlements | -2 | -1 | 14 | -1 | |||||||||||||
Balance at end of period | $ | 1 | $ | 6 | $ | 1 | $ | 6 | |||||||||
1 | CMS Energy records realized and unrealized gains and losses for Level 3 recurring fair value measurements in earnings as a component of operating revenue or maintenance and other operating expenses on its consolidated statements of income. | ||||||||||||||||
Financial_Instruments
Financial Instruments | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||||||||||||||
6: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 5, Fair Value Measurements. | |||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||||||
Carrying | Level | Carrying | Level | ||||||||||||||||||||||||||||||
Amount | Total | 1 | 2 | 3 | Amount | Total | 1 | 2 | 3 | ||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||
Securities held | $ | 11 | $ | 11 | $ | - | $ | 11 | $ | - | $ | 10 | $ | 10 | $ | - | $ | 10 | $ | - | |||||||||||||
to maturity | |||||||||||||||||||||||||||||||||
Notes | 847 | 896 | - | - | 896 | 683 | 724 | - | - | 724 | |||||||||||||||||||||||
receivable1 | |||||||||||||||||||||||||||||||||
Long-term | 8,711 | 9,380 | - | 8,370 | 1,010 | 7,642 | 8,368 | - | 7,406 | 962 | |||||||||||||||||||||||
debt2 | |||||||||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||
Long-term | $ | 5,290 | $ | 5,691 | $ | - | $ | 4,681 | $ | 1,010 | $ | 4,622 | $ | 4,940 | $ | - | $ | 3,978 | $ | 962 | |||||||||||||
debt3 | |||||||||||||||||||||||||||||||||
1 | Includes current portion of notes receivable of $95 million at September 30, 2014 and $48 million at December 31, 2013. | ||||||||||||||||||||||||||||||||
2 | Includes current portion of long-term debt of $669 million at September 30, 2014 and $541 million at December 31, 2013. | ||||||||||||||||||||||||||||||||
3 | Includes current portion of long-term debt of $60 million at September 30, 2014 and $43 million at December 31, 2013. | ||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||
The effects of third-party credit enhancements are excluded from the fair value measurements of long-term debt. At September 30, 2014 and December 31, 2013, 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-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
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 | $ | 131 | $ | - | $ | - | $ | 131 | $ | 136 | $ | - | $ | - | $ | 136 | |||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||||||
Debt securities | 11 | - | - | 11 | 10 | - | - | 10 | |||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||
Mutual funds | $ | 93 | $ | - | $ | - | $ | 93 | $ | 95 | $ | - | $ | - | $ | 95 | |||||||||||||||||
CMS Energy | |||||||||||||||||||||||||||||||||
common stock | 5 | 27 | - | 32 | 5 | 24 | - | 29 | |||||||||||||||||||||||||
The mutual funds classified as available for sale hold primarily fixed-income instruments of varying maturities. Debt securities classified as held to maturity consist primarily of mortgage-backed securities and Utah Housing Corporation bonds held by EnerBank. | |||||||||||||||||||||||||||||||||
Consumers recognized a gain of $4 million in January 2013 associated with the transfer of shares of CMS Energy common stock to a related charitable foundation. The gain reflected the excess of fair value over cost of the stock donated and was included in Consumers’ income. | |||||||||||||||||||||||||||||||||
Consumers Energy Company [Member] | ' | ||||||||||||||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||||||||||||||
6: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 5, Fair Value Measurements. | |||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||||||
Carrying | Level | Carrying | Level | ||||||||||||||||||||||||||||||
Amount | Total | 1 | 2 | 3 | Amount | Total | 1 | 2 | 3 | ||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||
Securities held | $ | 11 | $ | 11 | $ | - | $ | 11 | $ | - | $ | 10 | $ | 10 | $ | - | $ | 10 | $ | - | |||||||||||||
to maturity | |||||||||||||||||||||||||||||||||
Notes | 847 | 896 | - | - | 896 | 683 | 724 | - | - | 724 | |||||||||||||||||||||||
receivable1 | |||||||||||||||||||||||||||||||||
Long-term | 8,711 | 9,380 | - | 8,370 | 1,010 | 7,642 | 8,368 | - | 7,406 | 962 | |||||||||||||||||||||||
debt2 | |||||||||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||
Long-term | $ | 5,290 | $ | 5,691 | $ | - | $ | 4,681 | $ | 1,010 | $ | 4,622 | $ | 4,940 | $ | - | $ | 3,978 | $ | 962 | |||||||||||||
debt3 | |||||||||||||||||||||||||||||||||
1 | Includes current portion of notes receivable of $95 million at September 30, 2014 and $48 million at December 31, 2013. | ||||||||||||||||||||||||||||||||
2 | Includes current portion of long-term debt of $669 million at September 30, 2014 and $541 million at December 31, 2013. | ||||||||||||||||||||||||||||||||
3 | Includes current portion of long-term debt of $60 million at September 30, 2014 and $43 million at December 31, 2013. | ||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||
The effects of third-party credit enhancements are excluded from the fair value measurements of long-term debt. At September 30, 2014 and December 31, 2013, 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-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
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 | $ | 131 | $ | - | $ | - | $ | 131 | $ | 136 | $ | - | $ | - | $ | 136 | |||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||||||
Debt securities | 11 | - | - | 11 | 10 | - | - | 10 | |||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||
Mutual funds | $ | 93 | $ | - | $ | - | $ | 93 | $ | 95 | $ | - | $ | - | $ | 95 | |||||||||||||||||
CMS Energy | |||||||||||||||||||||||||||||||||
common stock | 5 | 27 | - | 32 | 5 | 24 | - | 29 | |||||||||||||||||||||||||
The mutual funds classified as available for sale hold primarily fixed-income instruments of varying maturities. Debt securities classified as held to maturity consist primarily of mortgage-backed securities and Utah Housing Corporation bonds held by EnerBank. | |||||||||||||||||||||||||||||||||
Consumers recognized a gain of $4 million in January 2013 associated with the transfer of shares of CMS Energy common stock to a related charitable foundation. The gain reflected the excess of fair value over cost of the stock donated and was included in Consumers’ income. | |||||||||||||||||||||||||||||||||
Notes_Receivable
Notes Receivable | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Notes Receivable | ' | |||||||
7: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-14 | 31-Dec-13 | |||||||
CMS Energy, including Consumers | ||||||||
Current | ||||||||
EnerBank notes receivable, net of allowance for loan losses | $ | 95 | $ | 48 | ||||
Other | 1 | 15 | ||||||
Non-current | ||||||||
EnerBank notes receivable, net of allowance for loan losses | 752 | 635 | ||||||
Total notes receivable | $ | 848 | $ | 698 | ||||
Consumers | ||||||||
Current | ||||||||
Other | $ | - | $ | 14 | ||||
Total notes receivable | $ | - | $ | 14 | ||||
EnerBank notes receivable are unsecured consumer installment loans for financing home improvements. EnerBank records its notes receivable at cost, less an allowance for loan losses. | ||||||||
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. | ||||||||
Loans that are 30 days or more past due are considered delinquent. The balance of EnerBank’s delinquent consumer loans was $5 million at September 30, 2014 and $4 million at December 31, 2013. | ||||||||
At September 30, 2014 and December 31, 2013, $1 million of EnerBank’s loans had been modified as troubled debt restructurings. | ||||||||
Consumers Energy Company [Member] | ' | |||||||
Notes Receivable | ' | |||||||
7: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-14 | 31-Dec-13 | |||||||
CMS Energy, including Consumers | ||||||||
Current | ||||||||
EnerBank notes receivable, net of allowance for loan losses | $ | 95 | $ | 48 | ||||
Other | 1 | 15 | ||||||
Non-current | ||||||||
EnerBank notes receivable, net of allowance for loan losses | 752 | 635 | ||||||
Total notes receivable | $ | 848 | $ | 698 | ||||
Consumers | ||||||||
Current | ||||||||
Other | $ | - | $ | 14 | ||||
Total notes receivable | $ | - | $ | 14 | ||||
EnerBank notes receivable are unsecured consumer installment loans for financing home improvements. EnerBank records its notes receivable at cost, less an allowance for loan losses. | ||||||||
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. | ||||||||
Loans that are 30 days or more past due are considered delinquent. The balance of EnerBank’s delinquent consumer loans was $5 million at September 30, 2014 and $4 million at December 31, 2013. | ||||||||
At September 30, 2014 and December 31, 2013, $1 million of EnerBank’s loans had been modified as troubled debt restructurings. | ||||||||
Retirement_Benefits
Retirement Benefits | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||
Retirement Benefits | ' | ||||||||||||||||||||||||||
8:RETIREMENT BENEFITS | |||||||||||||||||||||||||||
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. | |||||||||||||||||||||||||||
Following amendments to the OPEB Plan in July 2013, Consumers’ OPEB costs decreased substantially and, as a result, the OPEB Plan was fully funded at December 31, 2013. In May 2014, Consumers filed an application with the MPSC requesting approval to suspend contributions to Consumers’ OPEB Plan during 2014 and 2015 if the OPEB Plan continues to be fully funded. Consumers’ electric and gas rates still reflect the higher OPEB costs, and previous MPSC orders required Consumers to contribute to the OPEB Plan the associated amount collected in rates annually. | |||||||||||||||||||||||||||
In September 2014, the MPSC approved a settlement agreement addressing Consumers’ OPEB Plan funding application. Under the settlement agreement, Consumers will contribute $25 million to the plan in 2014 and $29 million in February 2015. Consumers will then suspend further contributions until the MPSC determines funding requirements in future general rate cases. | |||||||||||||||||||||||||||
Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans: | |||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
Pension | OPEB | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
30-Sep | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Net periodic cost (credit) | |||||||||||||||||||||||||||
Service cost | $ | 10 | $ | 13 | $ | 30 | $ | 40 | $ | 5 | $ | 5 | $ | 15 | $ | 23 | |||||||||||
Interest expense | 24 | 23 | 74 | 70 | 14 | 14 | 42 | 52 | |||||||||||||||||||
Expected return on | -33 | -32 | -101 | -96 | -22 | -20 | -66 | -58 | |||||||||||||||||||
plan assets | |||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||
Net loss | 14 | 24 | 43 | 72 | 1 | 3 | 2 | 24 | |||||||||||||||||||
Prior service cost | - | 1 | 1 | 3 | -10 | -10 | -31 | -20 | |||||||||||||||||||
(credit) | |||||||||||||||||||||||||||
Net periodic cost (credit) | $ | 15 | $ | 29 | $ | 47 | $ | 89 | $ | -12 | $ | -8 | $ | -38 | $ | 21 | |||||||||||
Consumers | |||||||||||||||||||||||||||
Net periodic cost (credit) | |||||||||||||||||||||||||||
Service cost | $ | 10 | $ | 13 | $ | 30 | $ | 39 | $ | 5 | $ | 5 | $ | 15 | $ | 23 | |||||||||||
Interest expense | 24 | 23 | 72 | 69 | 13 | 14 | 40 | 50 | |||||||||||||||||||
Expected return on | -33 | -31 | -99 | -94 | -20 | -19 | -62 | -54 | |||||||||||||||||||
plan assets | |||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||
Net loss | 14 | 23 | 42 | 70 | - | 3 | 2 | 24 | |||||||||||||||||||
Prior service cost | - | 1 | 1 | 3 | -10 | -10 | -30 | -20 | |||||||||||||||||||
(credit) | |||||||||||||||||||||||||||
Net periodic cost (credit) | $ | 15 | $ | 29 | $ | 46 | $ | 87 | $ | -12 | $ | -7 | $ | -35 | $ | 23 | |||||||||||
Consumers Energy Company [Member] | ' | ||||||||||||||||||||||||||
Retirement Benefits | ' | ||||||||||||||||||||||||||
8:RETIREMENT BENEFITS | |||||||||||||||||||||||||||
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. | |||||||||||||||||||||||||||
Following amendments to the OPEB Plan in July 2013, Consumers’ OPEB costs decreased substantially and, as a result, the OPEB Plan was fully funded at December 31, 2013. In May 2014, Consumers filed an application with the MPSC requesting approval to suspend contributions to Consumers’ OPEB Plan during 2014 and 2015 if the OPEB Plan continues to be fully funded. Consumers’ electric and gas rates still reflect the higher OPEB costs, and previous MPSC orders required Consumers to contribute to the OPEB Plan the associated amount collected in rates annually. | |||||||||||||||||||||||||||
In September 2014, the MPSC approved a settlement agreement addressing Consumers’ OPEB Plan funding application. Under the settlement agreement, Consumers will contribute $25 million to the plan in 2014 and $29 million in February 2015. Consumers will then suspend further contributions until the MPSC determines funding requirements in future general rate cases. | |||||||||||||||||||||||||||
Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans: | |||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
Pension | OPEB | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
30-Sep | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Net periodic cost (credit) | |||||||||||||||||||||||||||
Service cost | $ | 10 | $ | 13 | $ | 30 | $ | 40 | $ | 5 | $ | 5 | $ | 15 | $ | 23 | |||||||||||
Interest expense | 24 | 23 | 74 | 70 | 14 | 14 | 42 | 52 | |||||||||||||||||||
Expected return on | -33 | -32 | -101 | -96 | -22 | -20 | -66 | -58 | |||||||||||||||||||
plan assets | |||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||
Net loss | 14 | 24 | 43 | 72 | 1 | 3 | 2 | 24 | |||||||||||||||||||
Prior service cost | - | 1 | 1 | 3 | -10 | -10 | -31 | -20 | |||||||||||||||||||
(credit) | |||||||||||||||||||||||||||
Net periodic cost (credit) | $ | 15 | $ | 29 | $ | 47 | $ | 89 | $ | -12 | $ | -8 | $ | -38 | $ | 21 | |||||||||||
Consumers | |||||||||||||||||||||||||||
Net periodic cost (credit) | |||||||||||||||||||||||||||
Service cost | $ | 10 | $ | 13 | $ | 30 | $ | 39 | $ | 5 | $ | 5 | $ | 15 | $ | 23 | |||||||||||
Interest expense | 24 | 23 | 72 | 69 | 13 | 14 | 40 | 50 | |||||||||||||||||||
Expected return on | -33 | -31 | -99 | -94 | -20 | -19 | -62 | -54 | |||||||||||||||||||
plan assets | |||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||
Net loss | 14 | 23 | 42 | 70 | - | 3 | 2 | 24 | |||||||||||||||||||
Prior service cost | - | 1 | 1 | 3 | -10 | -10 | -30 | -20 | |||||||||||||||||||
(credit) | |||||||||||||||||||||||||||
Net periodic cost (credit) | $ | 15 | $ | 29 | $ | 46 | $ | 87 | $ | -12 | $ | -7 | $ | -35 | $ | 23 | |||||||||||
Income_Taxes
Income Taxes | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Income Taxes | ' | |||||||
9:INCOME TAXES | ||||||||
Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations, excluding noncontrolling interests: | ||||||||
30-Sep | 2014 | 2013 | ||||||
CMS Energy, including Consumers | ||||||||
U.S. federal income tax rate | 35.0 | % | 35.0 | % | ||||
Increase (decrease) in income taxes from: | ||||||||
State and local income taxes, net of federal effect | 4.9 | 5.0 | ||||||
Accelerated flow-through of regulatory tax benefits | -5.3 | - | ||||||
Other, net | -0.7 | 0.7 | ||||||
Effective tax rate | 33.9 | % | 40.7 | % | ||||
Consumers | ||||||||
U.S. federal income tax rate | 35.0 | % | 35.0 | % | ||||
Increase (decrease) in income taxes from: | ||||||||
State and local income taxes, net of federal effect | 4.9 | 4.8 | ||||||
Accelerated flow-through of regulatory tax benefits | -4.3 | - | ||||||
Other, net | -0.7 | -0.2 | ||||||
Effective tax rate | 34.9 | % | 39.6 | % | ||||
Prior to 2014, Consumers recognized the income tax benefits associated with the removal costs of plant placed in service before 1993 as payments were made and the tax benefits were flowed through to customers. In September 2013, the MPSC issued an order authorizing Consumers to flow through to customers the income tax benefits on a straight-line basis over an accelerated period. This new regulatory treatment, which Consumers implemented in January 2014, will accelerate the return of $209 million of income tax benefits over five years to electric customers and $260 million of income tax benefits over 12 years to gas customers. For the nine months ended September 30, 2014, this new treatment reduced Consumers’ income tax expense by $30 million. | ||||||||
In April 2014, the Internal Revenue Service completed its audit of the federal income tax returns of CMS Energy and its subsidiaries for 2010 and 2011. The audit resulted in no significant adjustments to CMS Energy’s or Consumers’ taxable income or income tax expense. | ||||||||
Consumers Energy Company [Member] | ' | |||||||
Income Taxes | ' | |||||||
9:INCOME TAXES | ||||||||
Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations, excluding noncontrolling interests: | ||||||||
30-Sep | 2014 | 2013 | ||||||
CMS Energy, including Consumers | ||||||||
U.S. federal income tax rate | 35.0 | % | 35.0 | % | ||||
Increase (decrease) in income taxes from: | ||||||||
State and local income taxes, net of federal effect | 4.9 | 5.0 | ||||||
Accelerated flow-through of regulatory tax benefits | -5.3 | - | ||||||
Other, net | -0.7 | 0.7 | ||||||
Effective tax rate | 33.9 | % | 40.7 | % | ||||
Consumers | ||||||||
U.S. federal income tax rate | 35.0 | % | 35.0 | % | ||||
Increase (decrease) in income taxes from: | ||||||||
State and local income taxes, net of federal effect | 4.9 | 4.8 | ||||||
Accelerated flow-through of regulatory tax benefits | -4.3 | - | ||||||
Other, net | -0.7 | -0.2 | ||||||
Effective tax rate | 34.9 | % | 39.6 | % | ||||
Prior to 2014, Consumers recognized the income tax benefits associated with the removal costs of plant placed in service before 1993 as payments were made and the tax benefits were flowed through to customers. In September 2013, the MPSC issued an order authorizing Consumers to flow through to customers the income tax benefits on a straight-line basis over an accelerated period. This new regulatory treatment, which Consumers implemented in January 2014, will accelerate the return of $209 million of income tax benefits over five years to electric customers and $260 million of income tax benefits over 12 years to gas customers. For the nine months ended September 30, 2014, this new treatment reduced Consumers’ income tax expense by $30 million. | ||||||||
In April 2014, the Internal Revenue Service completed its audit of the federal income tax returns of CMS Energy and its subsidiaries for 2010 and 2011. The audit resulted in no significant adjustments to CMS Energy’s or Consumers’ taxable income or income tax expense. | ||||||||
Earnings_Per_Share_CMS_Energy
Earnings Per Share - CMS Energy | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Earnings Per Share - CMS Energy [Abstract] | ' | ||||||||||||||
Earnings Per Share - CMS Energy | ' | ||||||||||||||
10: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 | 2014 | 2013 | 2014 | 2013 | |||||||||||
Income available to common stockholders | |||||||||||||||
Income from continuing operations | $ | 94 | $ | 127 | $ | 382 | $ | 352 | |||||||
Less income attributable to noncontrolling interests | - | 1 | 1 | 2 | |||||||||||
Income from continuing operations available to | $ | 94 | $ | 126 | $ | 381 | $ | 350 | |||||||
common stockholders – basic and diluted | |||||||||||||||
Average common shares outstanding | |||||||||||||||
Weighted-average shares – basic | 274.0 | 264.8 | 269.4 | 264.3 | |||||||||||
Add dilutive contingently convertible securities | - | 6.2 | 4.1 | 6.2 | |||||||||||
Add dilutive non-vested stock awards | 0.7 | 1.0 | 0.7 | 1.1 | |||||||||||
Weighted-average shares – diluted | 274.7 | 272.0 | 274.2 | 271.6 | |||||||||||
Income from continuing operations per average | |||||||||||||||
common share available to common stockholders | |||||||||||||||
Basic | $ | 0.34 | $ | 0.48 | $ | 1.41 | $ | 1.32 | |||||||
Diluted | 0.34 | 0.46 | 1.39 | 1.29 | |||||||||||
Contingently Convertible Securities | |||||||||||||||
In June 2014, CMS Energy redeemed its remaining contingently convertible securities. For the periods those securities were outstanding, they diluted EPS to the extent that the conversion value of the securities, which was based on the average market price of CMS Energy common stock, exceeded their principal value. For additional details regarding the contingently convertible securities, see Note 4, Financings and Capitalization. | |||||||||||||||
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, 2014 | |||||||||||||||
Reportable Segments | ' | ||||||||||||||
11: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 and corporate interest and other expenses. | ||||||||||||||
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 | 2014 | 2013 | 2014 | 2013 | |||||||||||
CMS Energy, including Consumers | |||||||||||||||
Operating revenue | |||||||||||||||
Electric utility | $ | 1,153 | $ | 1,188 | $ | 3,428 | $ | 3,175 | |||||||
Gas utility | 206 | 198 | 1,699 | 1,472 | |||||||||||
Enterprises | 51 | 44 | 235 | 136 | |||||||||||
Other | 20 | 15 | 59 | 47 | |||||||||||
Total operating revenue – CMS Energy | $ | 1,430 | $ | 1,445 | $ | 5,421 | $ | 4,830 | |||||||
Consumers | |||||||||||||||
Operating revenue | |||||||||||||||
Electric utility | $ | 1,153 | $ | 1,188 | $ | 3,428 | $ | 3,175 | |||||||
Gas utility | 206 | 198 | 1,699 | 1,472 | |||||||||||
Other | - | - | 1 | - | |||||||||||
Total operating revenue – Consumers | $ | 1,359 | $ | 1,386 | $ | 5,128 | $ | 4,647 | |||||||
CMS Energy, including Consumers | |||||||||||||||
Net income (loss) available to common stockholders | |||||||||||||||
Electric utility | $ | 128 | $ | 156 | $ | 326 | $ | 315 | |||||||
Gas utility | -9 | -4 | 121 | 97 | |||||||||||
Enterprises | -7 | -4 | -3 | 1 | |||||||||||
Other | -18 | -22 | -63 | -63 | |||||||||||
Total net income available to common stockholders | $ | 94 | $ | 126 | $ | 381 | $ | 350 | |||||||
– CMS Energy | |||||||||||||||
Consumers | |||||||||||||||
Net income (loss) available to common stockholder | |||||||||||||||
Electric utility | $ | 128 | $ | 156 | $ | 326 | $ | 315 | |||||||
Gas utility | -9 | -4 | 121 | 97 | |||||||||||
Other | - | - | 1 | 1 | |||||||||||
Total net income available to common stockholder | $ | 119 | $ | 152 | $ | 448 | $ | 413 | |||||||
– Consumers | |||||||||||||||
In Millions | |||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||
CMS Energy, including Consumers | |||||||||||||||
Plant, property, and equipment, gross | |||||||||||||||
Electric utility1 | $ | 11,790 | $ | 11,186 | |||||||||||
Gas utility1 | 5,208 | 4,843 | |||||||||||||
Enterprises | 116 | 115 | |||||||||||||
Other | 41 | 40 | |||||||||||||
Total plant, property, and equipment, gross – CMS Energy | $ | 17,155 | $ | 16,184 | |||||||||||
Consumers | |||||||||||||||
Plant, property, and equipment, gross | |||||||||||||||
Electric utility1 | $ | 11,790 | $ | 11,186 | |||||||||||
Gas utility1 | 5,208 | 4,843 | |||||||||||||
Other | 15 | 15 | |||||||||||||
Total plant, property, and equipment, gross – Consumers | $ | 17,013 | $ | 16,044 | |||||||||||
CMS Energy, including Consumers | |||||||||||||||
Total assets | |||||||||||||||
Electric utility1 | $ | 11,029 | $ | 10,487 | |||||||||||
Gas utility1 | 5,242 | 4,784 | |||||||||||||
Enterprises | 318 | 332 | |||||||||||||
Other | 1,792 | 1,813 | |||||||||||||
Total assets – CMS Energy | $ | 18,381 | $ | 17,416 | |||||||||||
Consumers | |||||||||||||||
Total assets | |||||||||||||||
Electric utility1 | $ | 11,029 | $ | 10,487 | |||||||||||
Gas utility1 | 5,242 | 4,784 | |||||||||||||
Other | 648 | 908 | |||||||||||||
Total assets – Consumers | $ | 16,919 | $ | 16,179 | |||||||||||
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 | ' | ||||||||||||||
11: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 and corporate interest and other expenses. | ||||||||||||||
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 | 2014 | 2013 | 2014 | 2013 | |||||||||||
CMS Energy, including Consumers | |||||||||||||||
Operating revenue | |||||||||||||||
Electric utility | $ | 1,153 | $ | 1,188 | $ | 3,428 | $ | 3,175 | |||||||
Gas utility | 206 | 198 | 1,699 | 1,472 | |||||||||||
Enterprises | 51 | 44 | 235 | 136 | |||||||||||
Other | 20 | 15 | 59 | 47 | |||||||||||
Total operating revenue – CMS Energy | $ | 1,430 | $ | 1,445 | $ | 5,421 | $ | 4,830 | |||||||
Consumers | |||||||||||||||
Operating revenue | |||||||||||||||
Electric utility | $ | 1,153 | $ | 1,188 | $ | 3,428 | $ | 3,175 | |||||||
Gas utility | 206 | 198 | 1,699 | 1,472 | |||||||||||
Other | - | - | 1 | - | |||||||||||
Total operating revenue – Consumers | $ | 1,359 | $ | 1,386 | $ | 5,128 | $ | 4,647 | |||||||
CMS Energy, including Consumers | |||||||||||||||
Net income (loss) available to common stockholders | |||||||||||||||
Electric utility | $ | 128 | $ | 156 | $ | 326 | $ | 315 | |||||||
Gas utility | -9 | -4 | 121 | 97 | |||||||||||
Enterprises | -7 | -4 | -3 | 1 | |||||||||||
Other | -18 | -22 | -63 | -63 | |||||||||||
Total net income available to common stockholders | $ | 94 | $ | 126 | $ | 381 | $ | 350 | |||||||
– CMS Energy | |||||||||||||||
Consumers | |||||||||||||||
Net income (loss) available to common stockholder | |||||||||||||||
Electric utility | $ | 128 | $ | 156 | $ | 326 | $ | 315 | |||||||
Gas utility | -9 | -4 | 121 | 97 | |||||||||||
Other | - | - | 1 | 1 | |||||||||||
Total net income available to common stockholder | $ | 119 | $ | 152 | $ | 448 | $ | 413 | |||||||
– Consumers | |||||||||||||||
In Millions | |||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||
CMS Energy, including Consumers | |||||||||||||||
Plant, property, and equipment, gross | |||||||||||||||
Electric utility1 | $ | 11,790 | $ | 11,186 | |||||||||||
Gas utility1 | 5,208 | 4,843 | |||||||||||||
Enterprises | 116 | 115 | |||||||||||||
Other | 41 | 40 | |||||||||||||
Total plant, property, and equipment, gross – CMS Energy | $ | 17,155 | $ | 16,184 | |||||||||||
Consumers | |||||||||||||||
Plant, property, and equipment, gross | |||||||||||||||
Electric utility1 | $ | 11,790 | $ | 11,186 | |||||||||||
Gas utility1 | 5,208 | 4,843 | |||||||||||||
Other | 15 | 15 | |||||||||||||
Total plant, property, and equipment, gross – Consumers | $ | 17,013 | $ | 16,044 | |||||||||||
CMS Energy, including Consumers | |||||||||||||||
Total assets | |||||||||||||||
Electric utility1 | $ | 11,029 | $ | 10,487 | |||||||||||
Gas utility1 | 5,242 | 4,784 | |||||||||||||
Enterprises | 318 | 332 | |||||||||||||
Other | 1,792 | 1,813 | |||||||||||||
Total assets – CMS Energy | $ | 18,381 | $ | 17,416 | |||||||||||
Consumers | |||||||||||||||
Total assets | |||||||||||||||
Electric utility1 | $ | 11,029 | $ | 10,487 | |||||||||||
Gas utility1 | 5,242 | 4,784 | |||||||||||||
Other | 648 | 908 | |||||||||||||
Total assets – Consumers | $ | 16,919 | $ | 16,179 | |||||||||||
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, 2014 | |
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, 2014 | |||||||||||||||||
Expected Remediation Cost By Year | ' | ||||||||||||||||
In Millions | |||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||
Consumers | |||||||||||||||||
Remediation and other response activity costs | $ | 7 | $ | 14 | $ | 12 | $ | 10 | $ | 19 | |||||||
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 | $ | 450 | 1 | $ | 7 | ||||||||||
and other agreements | |||||||||||||||||
Guarantees | Various | Various through March 2021 | 54 | - | |||||||||||||
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 | |||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||
Consumers | |||||||||||||||||
Remediation and other response activity costs | $ | 7 | $ | 14 | $ | 12 | $ | 10 | $ | 19 | |||||||
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 | $ | 450 | 1 | $ | 7 | ||||||||||
and other agreements | |||||||||||||||||
Guarantees | Various | Various through March 2021 | 54 | - | |||||||||||||
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, 2014 | ||||||||||||||
Summary Of Major Long-Term Debt Transactions | ' | |||||||||||||
Principal | Issue/Retirement | |||||||||||||
(In Millions) | Interest Rate | Date | Maturity Date | |||||||||||
Debt issuances | ||||||||||||||
CMS Energy | ||||||||||||||
Senior notes1 | $ | 250 | 3.875 | % | February 2014 | March 2024 | ||||||||
Senior notes1 | 300 | 4.875 | Feb-14 | March 2044 | ||||||||||
Total CMS Energy parent | $ | 550 | ||||||||||||
Consumers | ||||||||||||||
Securitization bonds2 | $ | 124 | 1.334 | % | Jul-14 | Nov-20 | ||||||||
Securitization bonds2 | 139 | 2.962 | Jul-14 | Nov-25 | ||||||||||
Securitization bonds2 | 115 | 3.528 | Jul-14 | May-29 | ||||||||||
FMBs | 250 | 3.125 | Aug-14 | Aug-24 | ||||||||||
FMBs | 250 | 4.350 | Aug-14 | Aug-64 | ||||||||||
Total Consumers | $ | 878 | ||||||||||||
Total debt issuances | $ | 1,428 | ||||||||||||
Debt retirements | ||||||||||||||
CMS Energy | ||||||||||||||
Senior notes3 | $ | 125 | 6.875 | % | Apr-14 | Dec-15 | ||||||||
Senior notes | 155 | 5.500 | Jun-14 | Jun-29 | ||||||||||
Total CMS Energy parent | $ | 280 | ||||||||||||
Consumers | ||||||||||||||
FMBs | $ | 177 | 5.500 | % | Aug-14 | Aug-16 | ||||||||
Total Consumers | $ | 177 | ||||||||||||
Total debt retirements | $ | 457 | ||||||||||||
1 | CMS Energy used a portion of these proceeds to retire its $125 million 6.875 percent senior notes due December 2015 and its $155 million 5.5 percent convertible senior notes due June 2029. CMS Energy intends to use the remaining proceeds for general corporate purposes. | |||||||||||||
2 | These Securitization bonds are collateralized by certain regulatory assets held by Consumers 2014 Securitization Funding. The bondholders have no recourse to Consumers’ other assets. Through its rate structure, Consumers collects from its retail electric customers, with some exceptions, Securitization charges to cover the principal and interest on the bonds as well as certain other qualified costs. The surcharges collected are remitted to a trustee and are not available to creditors of Consumers or creditors of Consumers’ affiliates other than Consumers 2014 Securitization Funding. Consumers used the proceeds from the Securitization property to retire $177 million of its 5.5 percent FMBs due August 2016 and $178 million of its equity. For additional details regarding the Securitization, see Note 2, Regulatory Matters. | |||||||||||||
3 | CMS Energy retired this debt at a premium and recorded a loss on extinguishment of $13 million in other expense on its consolidated statements of income. | |||||||||||||
Revolving Credit Facilities | ' | |||||||||||||
In Millions | ||||||||||||||
Letters of Credit | ||||||||||||||
Expiration Date | Amount of Facility | Amount Borrowed | Outstanding | Amount Available | ||||||||||
CMS Energy | ||||||||||||||
December 20, 20181 | $ | 550 | $ | - | $ | 2 | $ | 548 | ||||||
Consumers | ||||||||||||||
December 20, 20182 | $ | 650 | $ | - | $ | - | $ | 650 | ||||||
May 9, 20182 | 30 | - | 30 | - | ||||||||||
1 | Obligations under this facility are secured by Consumers common stock. | |||||||||||||
2 | Obligations under this facility are secured by FMBs of Consumers. | |||||||||||||
Conversions Of Contingently Convertible Securities | ' | |||||||||||||
Weighted-Average | Shares | |||||||||||||
Principal | Conversion | of Common | Cash Paid on | |||||||||||
Conversion | Converted | Value per $1,000 | Stock Issued | Settlement | ||||||||||
Date | (In Millions) | of Principal | on Settlement | (In Millions) | ||||||||||
5.50% senior notes due 2029 | February 2014 | $ | 17 | $ | 1,968 | 605,531 | $ | 17 | ||||||
5.50% senior notes due 2029 | Jun-14 | 155 | 2,215 | 6,372,578 | 155 | |||||||||
Issuance Of Stock | ' | |||||||||||||
Number of | Average | Proceeds | ||||||||||||
Shares Issued | Price per Share | (In Millions) | ||||||||||||
Mar-14 | 1,070,080 | $ | 28.04 | $ | 30 | |||||||||
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 notes1 | $ | 250 | 3.875 | % | February 2014 | March 2024 | ||||||||
Senior notes1 | 300 | 4.875 | Feb-14 | March 2044 | ||||||||||
Total CMS Energy parent | $ | 550 | ||||||||||||
Consumers | ||||||||||||||
Securitization bonds2 | $ | 124 | 1.334 | % | Jul-14 | Nov-20 | ||||||||
Securitization bonds2 | 139 | 2.962 | Jul-14 | Nov-25 | ||||||||||
Securitization bonds2 | 115 | 3.528 | Jul-14 | May-29 | ||||||||||
FMBs | 250 | 3.125 | Aug-14 | Aug-24 | ||||||||||
FMBs | 250 | 4.350 | Aug-14 | Aug-64 | ||||||||||
Total Consumers | $ | 878 | ||||||||||||
Total debt issuances | $ | 1,428 | ||||||||||||
Debt retirements | ||||||||||||||
CMS Energy | ||||||||||||||
Senior notes3 | $ | 125 | 6.875 | % | Apr-14 | Dec-15 | ||||||||
Senior notes | 155 | 5.500 | Jun-14 | Jun-29 | ||||||||||
Total CMS Energy parent | $ | 280 | ||||||||||||
Consumers | ||||||||||||||
FMBs | $ | 177 | 5.500 | % | Aug-14 | Aug-16 | ||||||||
Total Consumers | $ | 177 | ||||||||||||
Total debt retirements | $ | 457 | ||||||||||||
1 | CMS Energy used a portion of these proceeds to retire its $125 million 6.875 percent senior notes due December 2015 and its $155 million 5.5 percent convertible senior notes due June 2029. CMS Energy intends to use the remaining proceeds for general corporate purposes. | |||||||||||||
2 | These Securitization bonds are collateralized by certain regulatory assets held by Consumers 2014 Securitization Funding. The bondholders have no recourse to Consumers’ other assets. Through its rate structure, Consumers collects from its retail electric customers, with some exceptions, Securitization charges to cover the principal and interest on the bonds as well as certain other qualified costs. The surcharges collected are remitted to a trustee and are not available to creditors of Consumers or creditors of Consumers’ affiliates other than Consumers 2014 Securitization Funding. Consumers used the proceeds from the Securitization property to retire $177 million of its 5.5 percent FMBs due August 2016 and $178 million of its equity. For additional details regarding the Securitization, see Note 2, Regulatory Matters. | |||||||||||||
3 | CMS Energy retired this debt at a premium and recorded a loss on extinguishment of $13 million in other expense on its consolidated statements of income. | |||||||||||||
Revolving Credit Facilities | ' | |||||||||||||
In Millions | ||||||||||||||
Letters of Credit | ||||||||||||||
Expiration Date | Amount of Facility | Amount Borrowed | Outstanding | Amount Available | ||||||||||
CMS Energy | ||||||||||||||
December 20, 20181 | $ | 550 | $ | - | $ | 2 | $ | 548 | ||||||
Consumers | ||||||||||||||
December 20, 20182 | $ | 650 | $ | - | $ | - | $ | 650 | ||||||
May 9, 20182 | 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, 2014 | |||||||||||||||||
Assets And Liabilities Measured At Fair Value On A Recurring Basis | ' | ||||||||||||||||
In Millions | |||||||||||||||||
CMS Energy, including Consumers | Consumers | ||||||||||||||||
September 30 | December 31 | September 30 | December 31 | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Assets1 | |||||||||||||||||
Cash equivalents | $ | 394 | $ | 87 | $ | 146 | $ | - | |||||||||
Restricted cash equivalents | 37 | 16 | 37 | 15 | |||||||||||||
CMS Energy common stock | - | - | 32 | 29 | |||||||||||||
Nonqualified deferred | 8 | 6 | 5 | 4 | |||||||||||||
compensation plan assets | |||||||||||||||||
DB SERP | |||||||||||||||||
Cash equivalents | 2 | - | 1 | - | |||||||||||||
Mutual funds | 131 | 136 | 93 | 95 | |||||||||||||
Derivative instruments | |||||||||||||||||
Commodity contracts | 4 | 5 | 3 | 4 | |||||||||||||
Total | $ | 576 | $ | 250 | $ | 317 | $ | 147 | |||||||||
Liabilities1 | |||||||||||||||||
Nonqualified deferred | $ | 8 | $ | 6 | $ | 5 | $ | 4 | |||||||||
compensation plan liabilities | |||||||||||||||||
Derivative instruments | |||||||||||||||||
Commodity contracts | 2 | 1 | 2 | - | |||||||||||||
Total | $ | 10 | $ | 7 | $ | 7 | $ | 4 | |||||||||
1 | All assets and liabilities were classified as Level 1 with the exception of commodity contracts, which were classified as Level 2 or Level 3, and which were insignificant at September 30, 2014. | ||||||||||||||||
Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Significant Level 3 Inputs | ' | ||||||||||||||||
In Millions | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep | 2014 | 2013 | 2014 | 2013 | |||||||||||||
CMS Energy, including Consumers | |||||||||||||||||
Balance at beginning of period | $ | 1 | $ | 8 | $ | 4 | $ | 2 | |||||||||
Total gains (losses) offset through regulatory accounting | 2 | -2 | -16 | 5 | |||||||||||||
Purchases | - | 1 | -1 | - | |||||||||||||
Settlements | -2 | -1 | 14 | -1 | |||||||||||||
Balance at end of period | $ | 1 | $ | 6 | $ | 1 | $ | 6 | |||||||||
Unrealized gains included in earnings relating to assets and | $ | - | $ | 1 | $ | - | $ | - | |||||||||
liabilities still held at end of period1 | |||||||||||||||||
Consumers | |||||||||||||||||
Balance at beginning of period | $ | 1 | $ | 10 | $ | 4 | $ | 2 | |||||||||
Total gains (losses) offset through regulatory accounting | 2 | -2 | -16 | 5 | |||||||||||||
Purchases | - | -1 | -1 | - | |||||||||||||
Settlements | -2 | -1 | 14 | -1 | |||||||||||||
Balance at end of period | $ | 1 | $ | 6 | $ | 1 | $ | 6 | |||||||||
1 | CMS Energy records realized and unrealized gains and losses for Level 3 recurring fair value measurements in earnings as a component of operating revenue or maintenance and other operating expenses on its consolidated statements of income. | ||||||||||||||||
Consumers Energy Company [Member] | ' | ||||||||||||||||
Assets And Liabilities Measured At Fair Value On A Recurring Basis | ' | ||||||||||||||||
In Millions | |||||||||||||||||
CMS Energy, including Consumers | Consumers | ||||||||||||||||
September 30 | December 31 | September 30 | December 31 | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Assets1 | |||||||||||||||||
Cash equivalents | $ | 394 | $ | 87 | $ | 146 | $ | - | |||||||||
Restricted cash equivalents | 37 | 16 | 37 | 15 | |||||||||||||
CMS Energy common stock | - | - | 32 | 29 | |||||||||||||
Nonqualified deferred | 8 | 6 | 5 | 4 | |||||||||||||
compensation plan assets | |||||||||||||||||
DB SERP | |||||||||||||||||
Cash equivalents | 2 | - | 1 | - | |||||||||||||
Mutual funds | 131 | 136 | 93 | 95 | |||||||||||||
Derivative instruments | |||||||||||||||||
Commodity contracts | 4 | 5 | 3 | 4 | |||||||||||||
Total | $ | 576 | $ | 250 | $ | 317 | $ | 147 | |||||||||
Liabilities1 | |||||||||||||||||
Nonqualified deferred | $ | 8 | $ | 6 | $ | 5 | $ | 4 | |||||||||
compensation plan liabilities | |||||||||||||||||
Derivative instruments | |||||||||||||||||
Commodity contracts | 2 | 1 | 2 | - | |||||||||||||
Total | $ | 10 | $ | 7 | $ | 7 | $ | 4 | |||||||||
1 | All assets and liabilities were classified as Level 1 with the exception of commodity contracts, which were classified as Level 2 or Level 3, and which were insignificant at September 30, 2014. | ||||||||||||||||
Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Significant Level 3 Inputs | ' | ||||||||||||||||
In Millions | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep | 2014 | 2013 | 2014 | 2013 | |||||||||||||
CMS Energy, including Consumers | |||||||||||||||||
Balance at beginning of period | $ | 1 | $ | 8 | $ | 4 | $ | 2 | |||||||||
Total gains (losses) offset through regulatory accounting | 2 | -2 | -16 | 5 | |||||||||||||
Purchases | - | 1 | -1 | - | |||||||||||||
Settlements | -2 | -1 | 14 | -1 | |||||||||||||
Balance at end of period | $ | 1 | $ | 6 | $ | 1 | $ | 6 | |||||||||
Unrealized gains included in earnings relating to assets and | $ | - | $ | 1 | $ | - | $ | - | |||||||||
liabilities still held at end of period1 | |||||||||||||||||
Consumers | |||||||||||||||||
Balance at beginning of period | $ | 1 | $ | 10 | $ | 4 | $ | 2 | |||||||||
Total gains (losses) offset through regulatory accounting | 2 | -2 | -16 | 5 | |||||||||||||
Purchases | - | -1 | -1 | - | |||||||||||||
Settlements | -2 | -1 | 14 | -1 | |||||||||||||
Balance at end of period | $ | 1 | $ | 6 | $ | 1 | $ | 6 | |||||||||
1 | CMS Energy records realized and unrealized gains and losses for Level 3 recurring fair value measurements in earnings as a component of operating revenue or maintenance and other operating expenses on its consolidated statements of income. | ||||||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | ' | ||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||||||
Carrying | Level | Carrying | Level | ||||||||||||||||||||||||||||||
Amount | Total | 1 | 2 | 3 | Amount | Total | 1 | 2 | 3 | ||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||
Securities held | $ | 11 | $ | 11 | $ | - | $ | 11 | $ | - | $ | 10 | $ | 10 | $ | - | $ | 10 | $ | - | |||||||||||||
to maturity | |||||||||||||||||||||||||||||||||
Notes | 847 | 896 | - | - | 896 | 683 | 724 | - | - | 724 | |||||||||||||||||||||||
receivable1 | |||||||||||||||||||||||||||||||||
Long-term | 8,711 | 9,380 | - | 8,370 | 1,010 | 7,642 | 8,368 | - | 7,406 | 962 | |||||||||||||||||||||||
debt2 | |||||||||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||
Long-term | $ | 5,290 | $ | 5,691 | $ | - | $ | 4,681 | $ | 1,010 | $ | 4,622 | $ | 4,940 | $ | - | $ | 3,978 | $ | 962 | |||||||||||||
debt3 | |||||||||||||||||||||||||||||||||
1 | Includes current portion of notes receivable of $95 million at September 30, 2014 and $48 million at December 31, 2013. | ||||||||||||||||||||||||||||||||
2 | Includes current portion of long-term debt of $669 million at September 30, 2014 and $541 million at December 31, 2013. | ||||||||||||||||||||||||||||||||
3 | Includes current portion of long-term debt of $60 million at September 30, 2014 and $43 million at December 31, 2013. | ||||||||||||||||||||||||||||||||
Schedule Of Investment Securities | ' | ||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
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 | $ | 131 | $ | - | $ | - | $ | 131 | $ | 136 | $ | - | $ | - | $ | 136 | |||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||||||
Debt securities | 11 | - | - | 11 | 10 | - | - | 10 | |||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||
Mutual funds | $ | 93 | $ | - | $ | - | $ | 93 | $ | 95 | $ | - | $ | - | $ | 95 | |||||||||||||||||
CMS Energy | |||||||||||||||||||||||||||||||||
common stock | 5 | 27 | - | 32 | 5 | 24 | - | 29 | |||||||||||||||||||||||||
Consumers Energy Company [Member] | ' | ||||||||||||||||||||||||||||||||
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | ' | ||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||||||
Carrying | Level | Carrying | Level | ||||||||||||||||||||||||||||||
Amount | Total | 1 | 2 | 3 | Amount | Total | 1 | 2 | 3 | ||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||
Securities held | $ | 11 | $ | 11 | $ | - | $ | 11 | $ | - | $ | 10 | $ | 10 | $ | - | $ | 10 | $ | - | |||||||||||||
to maturity | |||||||||||||||||||||||||||||||||
Notes | 847 | 896 | - | - | 896 | 683 | 724 | - | - | 724 | |||||||||||||||||||||||
receivable1 | |||||||||||||||||||||||||||||||||
Long-term | 8,711 | 9,380 | - | 8,370 | 1,010 | 7,642 | 8,368 | - | 7,406 | 962 | |||||||||||||||||||||||
debt2 | |||||||||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||
Long-term | $ | 5,290 | $ | 5,691 | $ | - | $ | 4,681 | $ | 1,010 | $ | 4,622 | $ | 4,940 | $ | - | $ | 3,978 | $ | 962 | |||||||||||||
debt3 | |||||||||||||||||||||||||||||||||
1 | Includes current portion of notes receivable of $95 million at September 30, 2014 and $48 million at December 31, 2013. | ||||||||||||||||||||||||||||||||
2 | Includes current portion of long-term debt of $669 million at September 30, 2014 and $541 million at December 31, 2013. | ||||||||||||||||||||||||||||||||
3 | Includes current portion of long-term debt of $60 million at September 30, 2014 and $43 million at December 31, 2013. | ||||||||||||||||||||||||||||||||
Schedule Of Investment Securities | ' | ||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
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 | $ | 131 | $ | - | $ | - | $ | 131 | $ | 136 | $ | - | $ | - | $ | 136 | |||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||||||
Debt securities | 11 | - | - | 11 | 10 | - | - | 10 | |||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||
Mutual funds | $ | 93 | $ | - | $ | - | $ | 93 | $ | 95 | $ | - | $ | - | $ | 95 | |||||||||||||||||
CMS Energy | |||||||||||||||||||||||||||||||||
common stock | 5 | 27 | - | 32 | 5 | 24 | - | 29 | |||||||||||||||||||||||||
Notes_Receivable_Tables
Notes Receivable (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Schedule Of Current And Non-Current Notes Receivable | ' | |||||||
In Millions | ||||||||
30-Sep-14 | 31-Dec-13 | |||||||
CMS Energy, including Consumers | ||||||||
Current | ||||||||
EnerBank notes receivable, net of allowance for loan losses | $ | 95 | $ | 48 | ||||
Other | 1 | 15 | ||||||
Non-current | ||||||||
EnerBank notes receivable, net of allowance for loan losses | 752 | 635 | ||||||
Total notes receivable | $ | 848 | $ | 698 | ||||
Consumers | ||||||||
Current | ||||||||
Other | $ | - | $ | 14 | ||||
Total notes receivable | $ | - | $ | 14 | ||||
Consumers Energy Company [Member] | ' | |||||||
Schedule Of Current And Non-Current Notes Receivable | ' | |||||||
In Millions | ||||||||
30-Sep-14 | 31-Dec-13 | |||||||
CMS Energy, including Consumers | ||||||||
Current | ||||||||
EnerBank notes receivable, net of allowance for loan losses | $ | 95 | $ | 48 | ||||
Other | 1 | 15 | ||||||
Non-current | ||||||||
EnerBank notes receivable, net of allowance for loan losses | 752 | 635 | ||||||
Total notes receivable | $ | 848 | $ | 698 | ||||
Consumers | ||||||||
Current | ||||||||
Other | $ | - | $ | 14 | ||||
Total notes receivable | $ | - | $ | 14 | ||||
Retirement_Benefits_Tables
Retirement Benefits (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
30-Sep | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Net periodic cost (credit) | |||||||||||||||||||||||||||
Service cost | $ | 10 | $ | 13 | $ | 30 | $ | 40 | $ | 5 | $ | 5 | $ | 15 | $ | 23 | |||||||||||
Interest expense | 24 | 23 | 74 | 70 | 14 | 14 | 42 | 52 | |||||||||||||||||||
Expected return on | -33 | -32 | -101 | -96 | -22 | -20 | -66 | -58 | |||||||||||||||||||
plan assets | |||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||
Net loss | 14 | 24 | 43 | 72 | 1 | 3 | 2 | 24 | |||||||||||||||||||
Prior service cost | - | 1 | 1 | 3 | -10 | -10 | -31 | -20 | |||||||||||||||||||
(credit) | |||||||||||||||||||||||||||
Net periodic cost (credit) | $ | 15 | $ | 29 | $ | 47 | $ | 89 | $ | -12 | $ | -8 | $ | -38 | $ | 21 | |||||||||||
Consumers | |||||||||||||||||||||||||||
Net periodic cost (credit) | |||||||||||||||||||||||||||
Service cost | $ | 10 | $ | 13 | $ | 30 | $ | 39 | $ | 5 | $ | 5 | $ | 15 | $ | 23 | |||||||||||
Interest expense | 24 | 23 | 72 | 69 | 13 | 14 | 40 | 50 | |||||||||||||||||||
Expected return on | -33 | -31 | -99 | -94 | -20 | -19 | -62 | -54 | |||||||||||||||||||
plan assets | |||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||
Net loss | 14 | 23 | 42 | 70 | - | 3 | 2 | 24 | |||||||||||||||||||
Prior service cost | - | 1 | 1 | 3 | -10 | -10 | -30 | -20 | |||||||||||||||||||
(credit) | |||||||||||||||||||||||||||
Net periodic cost (credit) | $ | 15 | $ | 29 | $ | 46 | $ | 87 | $ | -12 | $ | -7 | $ | -35 | $ | 23 | |||||||||||
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 | ||||||||||||||||||||||||
30-Sep | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Net periodic cost (credit) | |||||||||||||||||||||||||||
Service cost | $ | 10 | $ | 13 | $ | 30 | $ | 40 | $ | 5 | $ | 5 | $ | 15 | $ | 23 | |||||||||||
Interest expense | 24 | 23 | 74 | 70 | 14 | 14 | 42 | 52 | |||||||||||||||||||
Expected return on | -33 | -32 | -101 | -96 | -22 | -20 | -66 | -58 | |||||||||||||||||||
plan assets | |||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||
Net loss | 14 | 24 | 43 | 72 | 1 | 3 | 2 | 24 | |||||||||||||||||||
Prior service cost | - | 1 | 1 | 3 | -10 | -10 | -31 | -20 | |||||||||||||||||||
(credit) | |||||||||||||||||||||||||||
Net periodic cost (credit) | $ | 15 | $ | 29 | $ | 47 | $ | 89 | $ | -12 | $ | -8 | $ | -38 | $ | 21 | |||||||||||
Consumers | |||||||||||||||||||||||||||
Net periodic cost (credit) | |||||||||||||||||||||||||||
Service cost | $ | 10 | $ | 13 | $ | 30 | $ | 39 | $ | 5 | $ | 5 | $ | 15 | $ | 23 | |||||||||||
Interest expense | 24 | 23 | 72 | 69 | 13 | 14 | 40 | 50 | |||||||||||||||||||
Expected return on | -33 | -31 | -99 | -94 | -20 | -19 | -62 | -54 | |||||||||||||||||||
plan assets | |||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||
Net loss | 14 | 23 | 42 | 70 | - | 3 | 2 | 24 | |||||||||||||||||||
Prior service cost | - | 1 | 1 | 3 | -10 | -10 | -30 | -20 | |||||||||||||||||||
(credit) | |||||||||||||||||||||||||||
Net periodic cost (credit) | $ | 15 | $ | 29 | $ | 46 | $ | 87 | $ | -12 | $ | -7 | $ | -35 | $ | 23 | |||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Schedule Of Effective Income Tax Rate Reconciliation | ' | |||||||
30-Sep | 2014 | 2013 | ||||||
CMS Energy, including Consumers | ||||||||
U.S. federal income tax rate | 35.0 | % | 35.0 | % | ||||
Increase (decrease) in income taxes from: | ||||||||
State and local income taxes, net of federal effect | 4.9 | 5.0 | ||||||
Accelerated flow-through of regulatory tax benefits | -5.3 | - | ||||||
Other, net | -0.7 | 0.7 | ||||||
Effective tax rate | 33.9 | % | 40.7 | % | ||||
Consumers | ||||||||
U.S. federal income tax rate | 35.0 | % | 35.0 | % | ||||
Increase (decrease) in income taxes from: | ||||||||
State and local income taxes, net of federal effect | 4.9 | 4.8 | ||||||
Accelerated flow-through of regulatory tax benefits | -4.3 | - | ||||||
Other, net | -0.7 | -0.2 | ||||||
Effective tax rate | 34.9 | % | 39.6 | % | ||||
Consumers Energy Company [Member] | ' | |||||||
Schedule Of Effective Income Tax Rate Reconciliation | ' | |||||||
30-Sep | 2014 | 2013 | ||||||
CMS Energy, including Consumers | ||||||||
U.S. federal income tax rate | 35.0 | % | 35.0 | % | ||||
Increase (decrease) in income taxes from: | ||||||||
State and local income taxes, net of federal effect | 4.9 | 5.0 | ||||||
Accelerated flow-through of regulatory tax benefits | -5.3 | - | ||||||
Other, net | -0.7 | 0.7 | ||||||
Effective tax rate | 33.9 | % | 40.7 | % | ||||
Consumers | ||||||||
U.S. federal income tax rate | 35.0 | % | 35.0 | % | ||||
Increase (decrease) in income taxes from: | ||||||||
State and local income taxes, net of federal effect | 4.9 | 4.8 | ||||||
Accelerated flow-through of regulatory tax benefits | -4.3 | - | ||||||
Other, net | -0.7 | -0.2 | ||||||
Effective tax rate | 34.9 | % | 39.6 | % | ||||
Earnings_Per_Share_CMS_Energy_
Earnings Per Share - CMS Energy (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
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 | 2014 | 2013 | 2014 | 2013 | |||||||||||
Income available to common stockholders | |||||||||||||||
Income from continuing operations | $ | 94 | $ | 127 | $ | 382 | $ | 352 | |||||||
Less income attributable to noncontrolling interests | - | 1 | 1 | 2 | |||||||||||
Income from continuing operations available to | $ | 94 | $ | 126 | $ | 381 | $ | 350 | |||||||
common stockholders – basic and diluted | |||||||||||||||
Average common shares outstanding | |||||||||||||||
Weighted-average shares – basic | 274.0 | 264.8 | 269.4 | 264.3 | |||||||||||
Add dilutive contingently convertible securities | - | 6.2 | 4.1 | 6.2 | |||||||||||
Add dilutive non-vested stock awards | 0.7 | 1.0 | 0.7 | 1.1 | |||||||||||
Weighted-average shares – diluted | 274.7 | 272.0 | 274.2 | 271.6 | |||||||||||
Income from continuing operations per average | |||||||||||||||
common share available to common stockholders | |||||||||||||||
Basic | $ | 0.34 | $ | 0.48 | $ | 1.41 | $ | 1.32 | |||||||
Diluted | 0.34 | 0.46 | 1.39 | 1.29 | |||||||||||
Reportable_Segments_Tables
Reportable Segments (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Schedule Of Financial Information By Reportable Segments | ' | ||||||||||||||
In Millions | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
30-Sep | 2014 | 2013 | 2014 | 2013 | |||||||||||
CMS Energy, including Consumers | |||||||||||||||
Operating revenue | |||||||||||||||
Electric utility | $ | 1,153 | $ | 1,188 | $ | 3,428 | $ | 3,175 | |||||||
Gas utility | 206 | 198 | 1,699 | 1,472 | |||||||||||
Enterprises | 51 | 44 | 235 | 136 | |||||||||||
Other | 20 | 15 | 59 | 47 | |||||||||||
Total operating revenue – CMS Energy | $ | 1,430 | $ | 1,445 | $ | 5,421 | $ | 4,830 | |||||||
Consumers | |||||||||||||||
Operating revenue | |||||||||||||||
Electric utility | $ | 1,153 | $ | 1,188 | $ | 3,428 | $ | 3,175 | |||||||
Gas utility | 206 | 198 | 1,699 | 1,472 | |||||||||||
Other | - | - | 1 | - | |||||||||||
Total operating revenue – Consumers | $ | 1,359 | $ | 1,386 | $ | 5,128 | $ | 4,647 | |||||||
CMS Energy, including Consumers | |||||||||||||||
Net income (loss) available to common stockholders | |||||||||||||||
Electric utility | $ | 128 | $ | 156 | $ | 326 | $ | 315 | |||||||
Gas utility | -9 | -4 | 121 | 97 | |||||||||||
Enterprises | -7 | -4 | -3 | 1 | |||||||||||
Other | -18 | -22 | -63 | -63 | |||||||||||
Total net income available to common stockholders | $ | 94 | $ | 126 | $ | 381 | $ | 350 | |||||||
– CMS Energy | |||||||||||||||
Consumers | |||||||||||||||
Net income (loss) available to common stockholder | |||||||||||||||
Electric utility | $ | 128 | $ | 156 | $ | 326 | $ | 315 | |||||||
Gas utility | -9 | -4 | 121 | 97 | |||||||||||
Other | - | - | 1 | 1 | |||||||||||
Total net income available to common stockholder | $ | 119 | $ | 152 | $ | 448 | $ | 413 | |||||||
– Consumers | |||||||||||||||
In Millions | |||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||
CMS Energy, including Consumers | |||||||||||||||
Plant, property, and equipment, gross | |||||||||||||||
Electric utility1 | $ | 11,790 | $ | 11,186 | |||||||||||
Gas utility1 | 5,208 | 4,843 | |||||||||||||
Enterprises | 116 | 115 | |||||||||||||
Other | 41 | 40 | |||||||||||||
Total plant, property, and equipment, gross – CMS Energy | $ | 17,155 | $ | 16,184 | |||||||||||
Consumers | |||||||||||||||
Plant, property, and equipment, gross | |||||||||||||||
Electric utility1 | $ | 11,790 | $ | 11,186 | |||||||||||
Gas utility1 | 5,208 | 4,843 | |||||||||||||
Other | 15 | 15 | |||||||||||||
Total plant, property, and equipment, gross – Consumers | $ | 17,013 | $ | 16,044 | |||||||||||
CMS Energy, including Consumers | |||||||||||||||
Total assets | |||||||||||||||
Electric utility1 | $ | 11,029 | $ | 10,487 | |||||||||||
Gas utility1 | 5,242 | 4,784 | |||||||||||||
Enterprises | 318 | 332 | |||||||||||||
Other | 1,792 | 1,813 | |||||||||||||
Total assets – CMS Energy | $ | 18,381 | $ | 17,416 | |||||||||||
Consumers | |||||||||||||||
Total assets | |||||||||||||||
Electric utility1 | $ | 11,029 | $ | 10,487 | |||||||||||
Gas utility1 | 5,242 | 4,784 | |||||||||||||
Other | 648 | 908 | |||||||||||||
Total assets – Consumers | $ | 16,919 | $ | 16,179 | |||||||||||
1 | Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. | ||||||||||||||
Consumers Energy Company [Member] | ' | ||||||||||||||
Schedule Of Financial Information By Reportable Segments | ' | ||||||||||||||
In Millions | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
30-Sep | 2014 | 2013 | 2014 | 2013 | |||||||||||
CMS Energy, including Consumers | |||||||||||||||
Operating revenue | |||||||||||||||
Electric utility | $ | 1,153 | $ | 1,188 | $ | 3,428 | $ | 3,175 | |||||||
Gas utility | 206 | 198 | 1,699 | 1,472 | |||||||||||
Enterprises | 51 | 44 | 235 | 136 | |||||||||||
Other | 20 | 15 | 59 | 47 | |||||||||||
Total operating revenue – CMS Energy | $ | 1,430 | $ | 1,445 | $ | 5,421 | $ | 4,830 | |||||||
Consumers | |||||||||||||||
Operating revenue | |||||||||||||||
Electric utility | $ | 1,153 | $ | 1,188 | $ | 3,428 | $ | 3,175 | |||||||
Gas utility | 206 | 198 | 1,699 | 1,472 | |||||||||||
Other | - | - | 1 | - | |||||||||||
Total operating revenue – Consumers | $ | 1,359 | $ | 1,386 | $ | 5,128 | $ | 4,647 | |||||||
CMS Energy, including Consumers | |||||||||||||||
Net income (loss) available to common stockholders | |||||||||||||||
Electric utility | $ | 128 | $ | 156 | $ | 326 | $ | 315 | |||||||
Gas utility | -9 | -4 | 121 | 97 | |||||||||||
Enterprises | -7 | -4 | -3 | 1 | |||||||||||
Other | -18 | -22 | -63 | -63 | |||||||||||
Total net income available to common stockholders | $ | 94 | $ | 126 | $ | 381 | $ | 350 | |||||||
– CMS Energy | |||||||||||||||
Consumers | |||||||||||||||
Net income (loss) available to common stockholder | |||||||||||||||
Electric utility | $ | 128 | $ | 156 | $ | 326 | $ | 315 | |||||||
Gas utility | -9 | -4 | 121 | 97 | |||||||||||
Other | - | - | 1 | 1 | |||||||||||
Total net income available to common stockholder | $ | 119 | $ | 152 | $ | 448 | $ | 413 | |||||||
– Consumers | |||||||||||||||
In Millions | |||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||
CMS Energy, including Consumers | |||||||||||||||
Plant, property, and equipment, gross | |||||||||||||||
Electric utility1 | $ | 11,790 | $ | 11,186 | |||||||||||
Gas utility1 | 5,208 | 4,843 | |||||||||||||
Enterprises | 116 | 115 | |||||||||||||
Other | 41 | 40 | |||||||||||||
Total plant, property, and equipment, gross – CMS Energy | $ | 17,155 | $ | 16,184 | |||||||||||
Consumers | |||||||||||||||
Plant, property, and equipment, gross | |||||||||||||||
Electric utility1 | $ | 11,790 | $ | 11,186 | |||||||||||
Gas utility1 | 5,208 | 4,843 | |||||||||||||
Other | 15 | 15 | |||||||||||||
Total plant, property, and equipment, gross – Consumers | $ | 17,013 | $ | 16,044 | |||||||||||
CMS Energy, including Consumers | |||||||||||||||
Total assets | |||||||||||||||
Electric utility1 | $ | 11,029 | $ | 10,487 | |||||||||||
Gas utility1 | 5,242 | 4,784 | |||||||||||||
Enterprises | 318 | 332 | |||||||||||||
Other | 1,792 | 1,813 | |||||||||||||
Total assets – CMS Energy | $ | 18,381 | $ | 17,416 | |||||||||||
Consumers | |||||||||||||||
Total assets | |||||||||||||||
Electric utility1 | $ | 11,029 | $ | 10,487 | |||||||||||
Gas utility1 | 5,242 | 4,784 | |||||||||||||
Other | 648 | 908 | |||||||||||||
Total assets – Consumers | $ | 16,919 | $ | 16,179 | |||||||||||
1 | 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 $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | 31-May-14 | Dec. 31, 2013 | Jul. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Coal-Fueled Electric Generation [Member] | Gas-Fueled Electric Generation [Member] | Electric Utility [Member] | Gas Utility [Member] | Gas Cost Recover (GCR) [Member] | Gas Cost Recover (GCR) [Member] | Power Supply Cost Recover (PSCR) [Member] | ||
Securitization Bonds [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] | ||||||
site | site | ||||||||||||
Public Utilities, General Disclosures [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax benefits, to be returned to customers | ' | ' | ' | ' | ' | ' | ' | ' | $209 | $260 | ' | ' | ' |
Tax benefit, distribution to customers, term | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '12 years | ' | ' | ' |
Reduction of income tax expense | ' | ' | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued Power Supply | 109 | ' | 109 | ' | ' | ' | ' | ' | ' | ' | ' | 62 | 47 |
Over (under) recovery requested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -84 | ' | ' |
Energy optimization incentive requested for exceeding savings targets | ' | ' | ' | ' | 18 | ' | ' | ' | ' | ' | ' | ' | ' |
Requested recovery | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | $8,042 | $7,101 | $5,230 | ' | $4,579 | $378 | ' | ' | ' | ' | ' | ' | ' |
Number of units planned to be retired | ' | ' | ' | ' | ' | ' | 7 | 3 | ' | ' | ' | ' | ' |
Contingencies_And_Commitments_1
Contingencies And Commitments (Contingencies And Commitments) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Oct. 31, 2010 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Bay Harbor [Member] | Bay Harbor [Member] | CERCLA Liability [Member] | Manufactured Gas Plant [Member] | Electric Utility [Member] | Electric Utility [Member] | Electric Utility [Member] | Gas Utility [Member] | ||
Consumers Energy Company [Member] | Consumers Energy Company [Member] | NREPA [Member] | EPA NOV [Member] | EPA NOV [Member] | NREPA [Member] | |||||||
item | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | ||||||||
item | ||||||||||||
Regulatory Matters [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental remediation permit renewal term | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' |
Demand for payment by USEPA | ' | ' | ' | ' | ' | $7 | ' | ' | ' | ' | ' | ' |
Increase in liability due to change in estimates | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' |
Cumulative environmental charge | ' | ' | ' | ' | 245 | ' | ' | ' | ' | ' | ' | ' |
Accrual for environmental loss contingencies | ' | ' | ' | ' | 63 | ' | 3 | 117 | 4 | ' | ' | 1 |
Discounted projected costs rate | ' | ' | ' | ' | 4.34% | ' | ' | 2.57% | ' | ' | ' | ' |
Remaining undiscounted obligation amount | ' | ' | ' | ' | 82 | ' | ' | 132 | ' | ' | ' | ' |
Foreign government tax claim on sale | 142 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remediation and other response activity costs, minimum | ' | ' | ' | ' | ' | ' | 3 | ' | 4 | ' | ' | ' |
Remediation and other response activity costs. maximum | ' | ' | ' | ' | ' | ' | 9 | ' | 6 | ' | ' | 3 |
Number of boilers alleged to exceed emission limits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14 | ' |
Alleged number of facilities in violation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' |
Number of projects affected by alleged violations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' |
Environmental mitigation projects, required investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.7 | ' | ' |
Litigation settlement, gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75 | ' | ' |
Number of former MGPs | ' | ' | ' | ' | ' | ' | ' | 23 | ' | ' | ' | ' |
Regulatory assets | $1,447 | $1,530 | $1,447 | $1,530 | ' | ' | ' | $147 | ' | ' | ' | ' |
Authorized recovery, collection period | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
Accrual for environmental loss contingencies, inflation rate | ' | ' | ' | ' | 1.00% | ' | ' | 2.50% | ' | ' | ' | ' |
Contingencies_And_Commitments_2
Contingencies And Commitments (Expected Remediation Cost By Year) (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Manufactured Gas Plant [Member] | Consumers Energy Company [Member] | ' |
Site Contingency [Line Items] | ' |
Undiscounted amount due within one year | $7 |
Undiscounted amount due within two year | 14 |
Undiscounted amount due within third year | 12 |
Undiscounted amount due within fourth year | 10 |
Undiscounted amount due within five year | 19 |
Bay Harbor [Member] | ' |
Site Contingency [Line Items] | ' |
Undiscounted amount due within one year | 8 |
Undiscounted amount due within two year | 6 |
Undiscounted amount due within third year | 6 |
Undiscounted amount due within fourth year | 5 |
Undiscounted amount due within five year | $5 |
Contingencies_And_Commitments_3
Contingencies And Commitments (Guarantees) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | |
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 | 54 | |
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 | 450 | [1] |
Carrying Amount | $7 | |
[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. |
Financings_And_Capitalization_1
Financings And Capitalization (Narrative) (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | ||
CMS Energy [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Short Term Secured Borrowing Accounts Receivable Sales Program [Member] | Continuous Equity Program [Member] | Revolving Credit Facilities December 20, 2018 [Member] | Revolving Credit Facilities December 20, 2018 [Member] | ||||
Commercial Paper [Member] | Consumers Energy Company [Member] | CMS Energy [Member] | Consumers Energy Company [Member] | ||||||||
Financing And Capitalization [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Maximum allowed short term securities outstanding under FERC Authorization | ' | ' | $800,000,000 | ' | ' | ' | ' | ' | ' | ||
Amount of accounts receivable eligible for transfer | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ||
Average short-term borrowings | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ||
Weighted average annual interest rate | ' | ' | ' | ' | ' | 0.85% | ' | ' | ' | ||
Amount of Facility | ' | ' | ' | ' | ' | ' | ' | 550,000,000 | [1] | 650,000,000 | [2] |
Short-term debt, authorized borrowings | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ||
Short-term borrowings outstanding | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ||
Limitation on payment of stock dividends | 3,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Unrestricted retained earnings | ' | ' | ' | 735,000,000 | ' | ' | ' | ' | ' | ||
Common stock dividends from Consumers | ' | 375,000,000 | ' | ' | ' | ' | ' | ' | ' | ||
Aggregate sales price of an equity offering program | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ||
Accounts receivable sales facility, remaining borrowing capacity | ' | ' | ' | ' | ' | 250,000,000 | ' | 548,000,000 | [1] | 650,000,000 | [2] |
Maximum limitation on outstanding securities | ' | ' | $1,900,000,000 | ' | ' | ' | ' | ' | ' | ||
Expiration date of authorizations | ' | ' | ' | 'June 30, 2016 | ' | ' | ' | ' | ' | ||
[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_2
Financings And Capitalization (Major Long-Term Debt Transactions) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | ||||||
CMS Energy [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Senior Notes 3.875% Due March 2024 [Member] | Senior Notes 4.875% Due March 2044 [Member] | Securitization Bonds 1.334% Due November 2020 [Member] | Securitization Bonds 2.962% Due November 2025 [Member] | Securitization Bonds 3.528% Due May 2029 [Member] | FMB's 3.125% Due August 2024 [Member] | FMB's 4.350% Due August 2064 [Member] | Senior Notes 6.875% Due December 2015 [Member] | Senior Notes 5.500% Due June 2029 [Member] | FMB's 5.500% Due August 2016 [Member] | |||||||||
Other Paid-in Capital [Member] | Other Paid-in Capital [Member] | CMS Energy [Member] | CMS Energy [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | CMS Energy [Member] | CMS Energy [Member] | Consumers Energy Company [Member] | ||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Proceeds from issuance of long-term debt | $1,428 | $1,025 | $550 | $878 | $750 | ' | ' | $250 | [1] | $300 | [1] | $124 | [2] | $139 | [2] | $115 | [2] | $250 | $250 | ' | ' | ' | |
Debt retirement, principal | 457 | ' | 280 | 177 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125 | [3] | 155 | 177 | |||||
Interest rate | ' | ' | ' | ' | ' | ' | ' | 3.88% | [1] | 4.88% | [1] | 1.33% | [2] | 2.96% | [2] | 3.53% | [2] | 3.13% | 4.35% | 6.88% | [3] | 5.50% | 5.50% |
Debt issuance date | ' | ' | ' | ' | ' | ' | ' | 'FebruaryB 2014 | [1] | 'February 2014 | [1] | 'July 2014 | [2] | 'July 2014 | [2] | 'July 2014 | [2] | 'August 2014 | 'August 2014 | ' | ' | ' | |
Debt retirement date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'April 2014 | [3] | 'June 2014 | 'August 2014 | |||||
Maturity date | ' | ' | ' | ' | ' | ' | ' | 'March 2024 | [1] | 'March 2044 | [1] | 'November 2020 | [2] | 'November 2025 | [2] | 'May 2029 | [2] | 'August 2024 | 'August 2064 | 'December 2015 | [3] | 'June 2029 | 'August 2016 |
Adjustments to Additional Paid in Capital, Return of stockholder contribution | ' | ' | ' | ' | ' | 178 | 178 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Loss on extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13 | ' | ' | ||||||
[1] | CMSB Energy used a portion of these proceeds to retire its $125B million 6.875B percent senior notes due DecemberB 2015 and its $155B million 5.5B percent convertible senior notes due JuneB 2029. CMSB Energy intends to use the remaining proceeds for general corporate purposes. | ||||||||||||||||||||||
[2] | These Securitization bonds are collateralized by certain regulatory assets held by Consumers 2014 Securitization Funding. The bondholders have no recourse to Consumersb other assets. Through its rate structure, Consumers collects from its retail electric customers, with some exceptions, Securitization charges to cover the principal and interest on the bonds as well as certain other qualified costs. The surcharges collected are remitted to a trustee and are not available to creditors of Consumers or creditors of Consumersb affiliates other than Consumers 2014 Securitization Funding. Consumers used the proceeds from the Securitization property to retire $177B million of its 5.5B percent FMBs due AugustB 2016 and $178B million of its equity. For additional details regarding the Securitization, see NoteB 2, Regulatory Matters. | ||||||||||||||||||||||
[3] | CMSB Energy retired this debt at a premium and recorded a loss on extinguishment of $13B million in other expense on its consolidated statements of income. |
Financings_And_Capitalization_3
Financings And Capitalization (Revolving Credit Facilities) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | |
Revolving Credit Facilities December 20, 2018 [Member] | CMS Energy [Member] | ' | |
Line of Credit Facility [Line Items] | ' | |
Expiration Date | 20-Dec-18 | [1] |
Amount of Facility | $550 | [1] |
Amount Borrowed | ' | [1] |
Letters of Credit Outstanding | 2 | [1] |
Amount Available | 548 | [1] |
Revolving Credit Facilities December 20, 2018 [Member] | Consumers Energy Company [Member] | ' | |
Line of Credit Facility [Line Items] | ' | |
Expiration Date | 20-Dec-18 | [2] |
Amount of Facility | 650 | [2] |
Amount Borrowed | ' | [2] |
Letters of Credit Outstanding | ' | [2] |
Amount Available | 650 | [2] |
Revolving Credit Facilities May 9, 2018 [Member] | Consumers Energy Company [Member] | ' | |
Line of Credit Facility [Line Items] | ' | |
Expiration Date | 9-May-18 | [2] |
Amount of Facility | 30 | [2] |
Amount Borrowed | ' | [2] |
Letters of Credit Outstanding | 30 | [2] |
Amount Available | ' | [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_4
Financings And Capitalization (Conversions Of Contingently Convertible Securities) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
February Debt Conversion [Member] | ' |
Debt Conversion [Line Items] | ' |
Conversion Date | '2014-02 |
Principal Converted | $17,000,000 |
Conversion Value per $1,000 of Principal | 1,968 |
Shares of Common Stock Issued on Settlement | 605,531 |
Cash Paid on Settlement | 17,000,000 |
Convertible debt, interest rate | 5.50% |
Convertible debt, maturity date | '2029 |
June Debt Conversion [Member] | ' |
Debt Conversion [Line Items] | ' |
Conversion Date | '2014-06 |
Principal Converted | 155,000,000 |
Conversion Value per $1,000 of Principal | 2,215 |
Shares of Common Stock Issued on Settlement | 6,372,578 |
Cash Paid on Settlement | $155,000,000 |
Convertible debt, interest rate | 5.50% |
Convertible debt, maturity date | '2029 |
Financings_And_Capitalization_5
Financings And Capitalization (Issuance Of Common Stock) (Details) (CMS Energy [Member], USD $) | 1 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 |
CMS Energy [Member] | ' |
Number of Shares Issued | 1,070,080 |
Average Price Per Share | $28.04 |
Proceeds | $30 |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets And Liabilties Measured At Fair Value On A Recurring Basis) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | $394 | [1] | $87 | [1] |
Restricted cash equivalents | 37 | [1] | 16 | [1] |
Nonqualified deferred compensation plan assets | 8 | [1] | 6 | [1] |
Commodity contracts | 4 | [1] | 5 | [1] |
Total | 576 | [1] | 250 | [1] |
Nonqualified deferred compensation plan liabilities | 8 | [1] | 6 | [1] |
Commodity contracts | 2 | [1] | 1 | [1] |
Total | 10 | [1] | 7 | [1] |
Consumers Energy Company [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 146 | [1] | ' | |
Restricted cash equivalents | 37 | [1] | 15 | [1] |
Nonqualified deferred compensation plan assets | 5 | [1] | 4 | [1] |
Commodity contracts | 3 | [1] | 4 | [1] |
Total | 317 | [1] | 147 | [1] |
Nonqualified deferred compensation plan liabilities | 5 | [1] | 4 | [1] |
Commodity contracts | 2 | [1] | ' | |
Total | 7 | [1] | 4 | [1] |
DB SERP [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 2 | [1] | ' | |
DB SERP [Member] | Consumers Energy Company [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cash equivalents | 1 | [1] | ' | |
DB SERP [Member] | Mutual Fund [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale - Fair Value | 131 | [1] | 136 | [1] |
DB SERP [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 | 93 | [1] | 95 | [1] |
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 | $32 | [1] | $29 | [1] |
[1] | All assets and liabilities were classified as LevelB 1 with the exception of commodity contracts, which were classified as LevelB 2 or LevelB 3, and which were insignificant at SeptemberB 30,B 2014. |
Fair_Value_Measurements_Assets1
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Significant Level 3 Inputs) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | |
Balance at beginning of period | $1 | $8 | $4 | $2 | |
Total gains (losses) offset through regulatory accounting | 2 | -2 | -16 | 5 | |
Purchases | ' | 1 | -1 | ' | |
Settlements | -2 | -1 | 14 | -1 | |
Balance at end of period | 1 | 6 | 1 | 6 | |
Unrealized gains (losses) included in earnings relating to assets and liabilities still held at end of period | ' | 1 | [1] | ' | ' |
Consumers Energy Company [Member] | ' | ' | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | |
Balance at beginning of period | 1 | 10 | 4 | 2 | |
Total gains (losses) offset through regulatory accounting | 2 | -2 | -16 | 5 | |
Purchases | ' | -1 | -1 | ' | |
Settlements | -2 | -1 | 14 | -1 | |
Balance at end of period | $1 | $6 | $1 | $6 | |
[1] | CMSB Energy records realized and unrealized gains and losses for LevelB 3 recurring fair value measurements in earnings as a component of operating revenue or maintenance and other operating expenses on its consolidated statements of income. |
Financial_Instruments_Narrativ
Financial Instruments (Narrative) (Details) (USD $) | 1 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
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 | ' | ' |
Financial_Instruments_Schedule
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Securities held to maturity - Fair Value | $11 | $10 | ||
Long-term debt, Fair Value | 9,380 | [1] | 8,368 | [1] |
Current notes receivable | 96 | 63 | ||
Current portion of long-term debt | 669 | 541 | ||
Consumers Energy Company [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term debt, Fair Value | 5,691 | [2] | 4,940 | [2] |
Current notes receivable | ' | 14 | ||
Current portion of long-term debt | 60 | 43 | ||
EnerBank [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Notes receivable, Fair Value | 896 | [3] | 724 | [3] |
Current notes receivable | 95 | 48 | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [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, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term debt, Fair Value | ' | [2] | ' | [2] |
Fair Value, Inputs, Level 1 [Member] | EnerBank [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Notes receivable, Fair Value | ' | [3] | ' | [3] |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Securities held to maturity - Fair Value | 11 | 10 | ||
Long-term debt, Fair Value | 8,370 | [1] | 7,406 | [1] |
Fair Value, Inputs, Level 2 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term debt, Fair Value | 4,681 | [2] | 3,978 | [2] |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term debt, Fair Value | 1,010 | [1] | 962 | [1] |
Fair Value, Inputs, Level 3 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term debt, Fair Value | 1,010 | [2] | 962 | [2] |
Fair Value, Inputs, Level 3 [Member] | EnerBank [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Notes receivable, Fair Value | 896 | [3] | 724 | [3] |
Carrying Amount [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Securities held to maturity - Fair Value | 11 | 10 | ||
Long-term debt, Fair Value | 8,711 | [1] | 7,642 | [1] |
Carrying Amount [Member] | Consumers Energy Company [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Long-term debt, Fair Value | 5,290 | [2] | 4,622 | [2] |
Carrying Amount [Member] | EnerBank [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Notes receivable, Fair Value | $847 | [3] | $683 | [3] |
[1] | Includes current portion of long-term debt of $669B million at SeptemberB 30,B 2014 and $541B million at DecemberB 31,B 2013. | |||
[2] | Includes current portion of long-term debt of $60B million at SeptemberB 30,B 2014 and $43B million at DecemberB 31,B 2013. | |||
[3] | Includes current portion of notes receivable of $95B million at SeptemberB 30,B 2014 and $48B million at DecemberB 31,B 2013. |
Financial_Instruments_Schedule1
Financial Instruments (Schedule Of Investment Securities) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investment Securities [Line Items] | ' | ' |
Held to maturity securities - Fair Value | $11 | $10 |
Debt Securities [Member] | ' | ' |
Investment Securities [Line Items] | ' | ' |
Held to maturity securities - Cost | 11 | 10 |
Held to maturity securities - Unrealized Losses | ' | ' |
Held to maturity securities - Fair Value | 11 | 10 |
CMS Energy Common Stock [Member] | Consumers Energy Company [Member] | ' | ' |
Investment Securities [Line Items] | ' | ' |
Available for sale - Cost | 5 | 5 |
Available for sale - Unrealized Gains | 27 | 24 |
Available for sale - Unrealized Losses | ' | ' |
Available for sale - Fair Value | 32 | 29 |
DB SERP [Member] | Mutual Fund [Member] | ' | ' |
Investment Securities [Line Items] | ' | ' |
Available for sale - Cost | 131 | 136 |
Available for sale - Unrealized Losses | ' | ' |
Available for sale - Fair Value | 131 | 136 |
DB SERP [Member] | Mutual Fund [Member] | Consumers Energy Company [Member] | ' | ' |
Investment Securities [Line Items] | ' | ' |
Available for sale - Cost | 93 | 95 |
Available for sale - Unrealized Losses | ' | ' |
Available for sale - Fair Value | $93 | $95 |
Notes_Receivable_Schedule_Of_C
Notes Receivable (Schedule Of Current And Non-Current Notes Receivable) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Current notes receivable | $96 | $63 |
Total notes receivable | 848 | 698 |
Consumers Energy Company [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Current notes receivable | ' | 14 |
Total notes receivable | ' | 14 |
EnerBank [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Current notes receivable | 95 | 48 |
Noncurrent notes receivable | 752 | 635 |
Other [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Current notes receivable | 1 | 15 |
Other [Member] | Consumers Energy Company [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Current notes receivable | ' | $14 |
Notes_Receivable_Schedule_Of_A
Notes Receivable (Schedule Of Allowance For Loan Losses) (Details) (EnerBank [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
EnerBank [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Delinquent loans | $5 | $4 |
Loans modified as troubled debt restructurings | $1 | $1 |
Retirement_Benefits_Narrative_
Retirement Benefits (Narrative) (Details) (OPEB [Member], USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ' |
Plan contributions, remainder of fiscal year | $25 |
Estimated future employer contributions | 29 |
Consumers Energy Company [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Plan contributions, remainder of fiscal year | 25 |
Estimated future employer contributions | $29 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $10 | $13 | $30 | $40 |
Interest expense | 24 | 23 | 74 | 70 |
Expected return on plan assets | -33 | -32 | -101 | -96 |
Amortization of Net loss | 14 | 24 | 43 | 72 |
Amortization of Prior service cost (credit) | ' | 1 | 1 | 3 |
Net periodic cost (credit) | 15 | 29 | 47 | 89 |
Pension [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 10 | 13 | 30 | 39 |
Interest expense | 24 | 23 | 72 | 69 |
Expected return on plan assets | -33 | -31 | -99 | -94 |
Amortization of Net loss | 14 | 23 | 42 | 70 |
Amortization of Prior service cost (credit) | ' | 1 | 1 | 3 |
Net periodic cost (credit) | 15 | 29 | 46 | 87 |
OPEB [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 5 | 5 | 15 | 23 |
Interest expense | 14 | 14 | 42 | 52 |
Expected return on plan assets | -22 | -20 | -66 | -58 |
Amortization of Net loss | 1 | 3 | 2 | 24 |
Amortization of Prior service cost (credit) | -10 | -10 | -31 | -20 |
Net periodic cost (credit) | -12 | -8 | -38 | 21 |
OPEB [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 5 | 5 | 15 | 23 |
Interest expense | 13 | 14 | 40 | 50 |
Expected return on plan assets | -20 | -19 | -62 | -54 |
Amortization of Net loss | ' | 3 | 2 | 24 |
Amortization of Prior service cost (credit) | -10 | -10 | -30 | -20 |
Net periodic cost (credit) | ($12) | ($7) | ($35) | $23 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Income Tax Benefits [Line Items] | ' |
IRS audit, adjustments to income tax expense | $0 |
Consumers Energy Company [Member] | ' |
Income Tax Benefits [Line Items] | ' |
Reduction of income tax expense | 30 |
IRS audit, adjustments to income tax expense | 0 |
Consumers Energy Company [Member] | Electric Utility [Member] | ' |
Income Tax Benefits [Line Items] | ' |
Income tax benefits, to be returned to customers | 209 |
Tax benefit, distribution to customers, term | '5 years |
Consumers Energy Company [Member] | Gas Utility [Member] | ' |
Income Tax Benefits [Line Items] | ' |
Income tax benefits, to be returned to customers | $260 |
Tax benefit, distribution to customers, term | '12 years |
Income_Taxes_Details
Income Taxes (Details) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
U.S. federal income tax rate | 35.00% | 35.00% |
State and local income taxes, net of federal effect | 4.90% | 5.00% |
Accelerated flow-through of regulatory tax benefits | -5.30% | ' |
Other, net | -0.70% | 0.70% |
Effective tax rate | 33.90% | 40.70% |
Consumers Energy Company [Member] | ' | ' |
U.S. federal income tax rate | 35.00% | 35.00% |
State and local income taxes, net of federal effect | 4.90% | 4.80% |
Accelerated flow-through of regulatory tax benefits | -4.30% | ' |
Other, net | -0.70% | -0.20% |
Effective tax rate | 34.90% | 39.60% |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share - CMS Energy [Abstract] | ' | ' | ' | ' |
Income from continuing operations | $94 | $127 | $382 | $352 |
Less income attributable to noncontrolling interest | ' | 1 | 1 | 2 |
Income from continuing operations available to common stockholders - basic and diluted | $94 | $126 | $381 | $350 |
Weighted average shares - basic | 274 | 264.8 | 269.4 | 264.3 |
Add dilutive contingently convertible securities | ' | 6.2 | 4.1 | 6.2 |
Add dilutive non-vested stock awards | 0.7 | 1 | 0.7 | 1.1 |
Weighted average shares - diluted | 274.7 | 272 | 274.2 | 271.6 |
Basic | $0.34 | $0.48 | $1.41 | $1.32 |
Diluted | $0.34 | $0.46 | $1.39 | $1.29 |
Reportable_Segments_Details
Reportable Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Operating Revenue | $1,430 | $1,445 | $5,421 | $4,830 | ' |
Total Net Income Available to Common Stockholders | 94 | 126 | 381 | 350 | ' |
Plant, property, and equipment, gross | 17,155 | ' | 17,155 | ' | 16,184 |
Total Assets | 18,381 | ' | 18,381 | ' | 17,416 |
Consumers Energy Company [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Operating Revenue | 1,359 | 1,386 | 5,128 | 4,647 | ' |
Total Net Income Available to Common Stockholders | 119 | 152 | 448 | 413 | ' |
Plant, property, and equipment, gross | 17,013 | ' | 17,013 | ' | 16,044 |
Total Assets | 16,919 | ' | 16,919 | ' | 16,179 |
Electric Utility [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Operating Revenue | 1,153 | 1,188 | 3,428 | 3,175 | ' |
Total Net Income Available to Common Stockholders | 128 | 156 | 326 | 315 | ' |
Plant, property, and equipment, gross | 11,790 | ' | 11,790 | ' | 11,186 |
Total Assets | 11,029 | ' | 11,029 | ' | 10,487 |
Electric Utility [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Operating Revenue | 1,153 | 1,188 | 3,428 | 3,175 | ' |
Total Net Income Available to Common Stockholders | 128 | 156 | 326 | 315 | ' |
Plant, property, and equipment, gross | 11,790 | ' | 11,790 | ' | 11,186 |
Total Assets | 11,029 | ' | 11,029 | ' | 10,487 |
Gas Utility [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Operating Revenue | 206 | 198 | 1,699 | 1,472 | ' |
Total Net Income Available to Common Stockholders | -9 | -4 | 121 | 97 | ' |
Plant, property, and equipment, gross | 5,208 | ' | 5,208 | ' | 4,843 |
Total Assets | 5,242 | ' | 5,242 | ' | 4,784 |
Gas Utility [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Operating Revenue | 206 | 198 | 1,699 | 1,472 | ' |
Total Net Income Available to Common Stockholders | -9 | -4 | 121 | 97 | ' |
Plant, property, and equipment, gross | 5,208 | ' | 5,208 | ' | 4,843 |
Total Assets | 5,242 | ' | 5,242 | ' | 4,784 |
Enterprises [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Operating Revenue | 51 | 44 | 235 | 136 | ' |
Total Net Income Available to Common Stockholders | -7 | -4 | -3 | 1 | ' |
Plant, property, and equipment, gross | 116 | ' | 116 | ' | 115 |
Total Assets | 318 | ' | 318 | ' | 332 |
Other [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Operating Revenue | 20 | 15 | 59 | 47 | ' |
Total Net Income Available to Common Stockholders | -18 | -22 | -63 | -63 | ' |
Plant, property, and equipment, gross | 41 | ' | 41 | ' | 40 |
Total Assets | 1,792 | ' | 1,792 | ' | 1,813 |
Other [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Operating Revenue | ' | ' | 1 | ' | ' |
Total Net Income Available to Common Stockholders | ' | ' | 1 | 1 | ' |
Plant, property, and equipment, gross | 15 | ' | 15 | ' | 15 |
Total Assets | $648 | ' | $648 | ' | $908 |