Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 13, 2015 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 | |
Trading Symbol | cms | |
Entity Registrant Name | CMS Energy Corporation | |
Entity Central Index Key | 811,156 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
CMS Energy [Member] | ||
Entity Common Stock, Shares Outstanding | 277,879,646 | |
Consumers Energy Company [Member] | ||
Entity Registrant Name | Consumers Energy Company | |
Entity Central Index Key | 201,533 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 84,108,789 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Revenue | $ 1,486 | $ 1,430 | $ 4,947 | $ 5,421 |
Operating Expenses | ||||
Fuel for electric generation | 161 | 161 | 462 | 534 |
Purchased and interchange power | 392 | 387 | 1,082 | 1,244 |
Purchased power - related parties | 21 | 21 | 61 | 67 |
Cost of gas sold | 52 | 86 | 754 | 1,107 |
Maintenance and other operating expenses | 311 | 329 | 906 | 899 |
Depreciation and amortization | 173 | 153 | 564 | 503 |
General taxes | 59 | 57 | 200 | 188 |
Total operating expenses | 1,169 | 1,194 | 4,029 | 4,542 |
Operating Income | 317 | 236 | 918 | 879 |
Other Income (Expense) | ||||
Interest income | 1 | 1 | 3 | 2 |
Allowance for equity funds used during construction | 3 | 2 | 7 | 6 |
Income from equity method investees | 4 | 4 | 9 | 11 |
Other income | 2 | 2 | 8 | 8 |
Other expense | (3) | (3) | (11) | (26) |
Total other income (expense) | 7 | 6 | 16 | 1 |
Interest Charges | ||||
Interest on long-term debt | 95 | 98 | 288 | 294 |
Other interest expense | 7 | 4 | 20 | 12 |
Allowance for borrowed funds used during construction | (1) | (1) | (3) | (3) |
Total interest charges | 101 | 101 | 305 | 303 |
Income Before Income Taxes | 223 | 141 | 629 | 577 |
Income Tax Expense | 75 | 47 | 211 | 195 |
Net Income | 148 | 94 | 418 | 382 |
Income Attributable to Noncontrolling Interests | 1 | 1 | ||
Net Income Available to Common Stockholders | $ 148 | $ 94 | $ 417 | $ 381 |
Basic Earnings Per Average Common Share | $ 0.53 | $ 0.34 | $ 1.51 | $ 1.41 |
Diluted Earnings Per Average Common Share | 0.53 | 0.34 | 1.51 | 1.39 |
Dividends declared per common share | $ 0.29 | $ 0.27 | $ 0.87 | $ 0.81 |
Consumers Energy Company [Member] | ||||
Operating Revenue | $ 1,417 | $ 1,359 | $ 4,726 | $ 5,128 |
Operating Expenses | ||||
Fuel for electric generation | 138 | 137 | 381 | 455 |
Purchased and interchange power | 389 | 382 | 1,072 | 1,214 |
Purchased power - related parties | 21 | 21 | 61 | 67 |
Cost of gas sold | 46 | 71 | 737 | 1,006 |
Maintenance and other operating expenses | 289 | 296 | 845 | 834 |
Depreciation and amortization | 172 | 152 | 560 | 498 |
General taxes | 57 | 55 | 194 | 183 |
Total operating expenses | 1,112 | 1,114 | 3,850 | 4,257 |
Operating Income | 305 | 245 | 876 | 871 |
Other Income (Expense) | ||||
Interest income | 1 | 1 | 3 | 2 |
Interest and dividend income - related parties | 1 | 1 | ||
Allowance for equity funds used during construction | 3 | 2 | 7 | 6 |
Other income | 2 | 2 | 17 | 8 |
Other expense | (3) | (3) | (11) | (13) |
Total other income (expense) | 3 | 3 | 16 | 4 |
Interest Charges | ||||
Interest on long-term debt | 62 | 62 | 188 | 180 |
Other interest expense | 4 | 3 | 11 | 8 |
Allowance for borrowed funds used during construction | (1) | (1) | (3) | (3) |
Total interest charges | 65 | 64 | 196 | 185 |
Income Before Income Taxes | 243 | 184 | 696 | 690 |
Income Tax Expense | 83 | 65 | 237 | 241 |
Net Income | 160 | 119 | 459 | 449 |
Preferred Stock Dividends | 1 | 1 | ||
Net Income Available to Common Stockholders | $ 160 | $ 119 | $ 458 | $ 448 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net Income (Loss) | $ 148 | $ 94 | $ 418 | $ 382 |
Retirement Benefits Liability | ||||
Amortization of net actuarial loss (gain), net of tax | 2 | 1 | 4 | 2 |
Amortization of prior service credit, net of tax | (1) | (1) | (1) | (1) |
Investments | ||||
Unrealized gain (loss) on investments, net of tax | (2) | (3) | ||
Derivative Instruments | ||||
Reclassification adjustments included in net income, net of tax | 1 | |||
Other Comprehensive Income (Loss) | (1) | 2 | ||
Comprehensive Income (Loss) | 147 | 94 | 418 | 384 |
Comprehensive Income Attributable to Noncontrolling Interest | 1 | 1 | ||
Comprehensive Income Attributable to CMS Energy | 147 | 94 | 417 | 383 |
Consumers Energy Company [Member] | ||||
Net Income (Loss) | 160 | 119 | 459 | 449 |
Retirement Benefits Liability | ||||
Amortization of net actuarial loss (gain), net of tax | 1 | 1 | 3 | 2 |
Investments | ||||
Unrealized gain (loss) on investments, net of tax | (1) | (2) | 2 | |
Reclassification adjustments included in net income, net of tax | (5) | |||
Derivative Instruments | ||||
Other Comprehensive Income (Loss) | 1 | (4) | 4 | |
Comprehensive Income Attributable to CMS Energy | $ 161 | $ 119 | $ 455 | $ 453 |
Consolidated Statements Of Com4
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Amortization of net actuarial loss, tax | $ 1 | $ 3 | $ 1 | |
Amortization of prior service credit, tax | ||||
Unrealized gain (loss) on investments, tax expense (tax benefit) | $ 1 | $ 1 | ||
Reclassification adjustments included in net income (loss), tax | ||||
Consumers Energy Company [Member] | ||||
Amortization of net actuarial loss, tax | $ 1 | |||
Unrealized gain (loss) on investments, tax expense (tax benefit) | $ (1) | (1) | $ 1 | |
Reclassification adjustments included in net income, tax | $ (3) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net income | $ 418 | $ 382 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 564 | 503 |
Deferred income taxes and investment tax credit | 210 | 178 |
Postretirement benefits expense | 68 | 17 |
Other non-cash operating activities | 56 | 64 |
Postretirement benefits contributions | (35) | (5) |
Cash provided by (used in) changes in assets and liabilities | ||
Decrease (increase) in accounts receivable, notes receivable, and accrued revenue | 219 | 111 |
Decrease (increase) in inventories | 54 | (161) |
Increase (decrease) in accounts payable and accrued refunds | (34) | (14) |
Other current and non-current assets and liabilities | (100) | (113) |
Net cash provided by operating activities | 1,420 | 962 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under capital lease) | (1,102) | (1,125) |
Cost to retire property | (60) | (62) |
Increase in EnerBank notes receivable | (186) | (164) |
Sale of notes receivable | 48 | |
Other investing activities | (40) | 4 |
Net cash used in investing activities | (1,340) | (1,347) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of debt | 100 | 1,428 |
Net increase in EnerBank certificates of deposit | 135 | 147 |
Issuance of common stock | 40 | 40 |
Retirement of long-term debt | (148) | (488) |
Payment of dividends on common and preferred stock | (241) | (220) |
Increase (decrease) in notes payable | 8 | (170) |
Payment of capital lease obligations and other financing costs | (31) | (31) |
Net cash provided by (used in) financing activities | (137) | 706 |
Net Increase (Decrease) in Cash and Cash Equivalents | (57) | 321 |
Cash and Cash Equivalents, Beginning of Period | 207 | 172 |
Cash and Cash Equivalents, End of Period | 150 | 493 |
Non-Cash Transactions | ||
Capital expenditures not paid | 147 | 168 |
Consumers Energy Company [Member] | ||
Cash Flows from Operating Activities | ||
Net income | 459 | 449 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 560 | 498 |
Deferred income taxes and investment tax credit | 33 | 64 |
Postretirement benefits expense | 68 | 18 |
Other non-cash operating activities | 48 | 54 |
Postretirement benefits contributions | (33) | (3) |
Cash provided by (used in) changes in assets and liabilities | ||
Decrease (increase) in accounts receivable, notes receivable, and accrued revenue | 221 | 120 |
Decrease (increase) in inventories | 53 | (163) |
Increase (decrease) in accounts payable and accrued refunds | (30) | (6) |
Other current and non-current assets and liabilities | 48 | (83) |
Net cash provided by operating activities | 1,427 | 948 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under capital lease) | (1,093) | (1,123) |
Cost to retire property | (60) | (62) |
Other investing activities | (33) | 3 |
Net cash used in investing activities | (1,186) | (1,182) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of debt | 878 | |
Retirement of long-term debt | (48) | (208) |
Payment of dividends on common and preferred stock | (360) | (376) |
Stockholder contribution | 150 | 495 |
Return of stockholder contribution | (178) | |
Increase (decrease) in notes payable | 8 | (170) |
Payment of capital lease obligations and other financing costs | (19) | (25) |
Net cash provided by (used in) financing activities | (269) | 416 |
Net Increase (Decrease) in Cash and Cash Equivalents | (28) | 182 |
Cash and Cash Equivalents, Beginning of Period | 71 | 18 |
Cash and Cash Equivalents, End of Period | 43 | 200 |
Non-Cash Transactions | ||
Capital expenditures not paid | $ 147 | $ 168 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 150 | $ 207 |
Restricted cash and cash equivalents | 52 | 37 |
Accounts receivable and accrued revenue, less allowances | 640 | 881 |
Notes receivable, less allowances | 119 | 98 |
Notes receivable held for sale | 17 | 41 |
Accounts receivable - related parties | 12 | 11 |
Accrued power supply and gas revenue | 10 | 27 |
Inventories at average cost | ||
Gas in underground storage | 652 | 681 |
Materials and supplies | 119 | 117 |
Generating plant fuel stock | 92 | 120 |
Deferred income taxes | 12 | |
Deferred property taxes | 141 | 216 |
Regulatory assets | 20 | 89 |
Prepayments and other current assets | 87 | 72 |
Total current assets | 2,123 | 2,597 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 18,547 | 17,721 |
Less accumulated depreciation and amortization | 5,697 | 5,415 |
Plant, property, and equipment, net | 12,850 | 12,306 |
Construction work in progress | 1,310 | 1,106 |
Total plant, property, and equipment | 14,160 | 13,412 |
Other Non-current Assets | ||
Regulatory assets | 1,870 | 1,956 |
Accounts and notes receivable | 950 | 807 |
Investments | 61 | 61 |
Other | 288 | 352 |
Total other non-current assets | 3,169 | 3,176 |
Total Assets | 19,452 | 19,185 |
Current Liabilities | ||
Current portion of long-term debt, capital leases, and financing obligation | 741 | 540 |
Notes payable | 68 | 60 |
Accounts payable | 586 | 678 |
Accounts payable - related parties | 8 | 10 |
Accrued rate refunds | 20 | 6 |
Accrued interest | 64 | 108 |
Accrued taxes | 90 | 316 |
Deferred income taxes | 66 | |
Regulatory liabilities | 81 | 67 |
Other current liabilities | 130 | 163 |
Total current liabilities | 1,788 | 2,014 |
Non-current Liabilities | ||
Long-term debt | 7,903 | 8,016 |
Non-current portion of capital leases and financing obligation | 111 | 123 |
Regulatory liabilities | 2,110 | 2,095 |
Postretirement benefits | 847 | 872 |
Asset retirement obligations | 419 | 340 |
Deferred investment tax credit | 56 | 37 |
Deferred income taxes | 1,980 | 1,682 |
Other non-current liabilities | 299 | 299 |
Total non-current liabilities | $ 13,725 | $ 13,464 |
Commitments and Contingencies (Notes 2 and 3) | ||
Common stockholder's equity | ||
Common stock | $ 3 | $ 3 |
Other paid-in capital | 4,829 | 4,774 |
Accumulated other comprehensive loss | (49) | (49) |
Retained earnings (Accumulated deficit) | (881) | (1,058) |
Total common stockholders' equity | 3,902 | 3,670 |
Noncontrolling interests | 37 | 37 |
Total equity | 3,939 | 3,707 |
Total Liabilities and Equity | 19,452 | 19,185 |
Consumers Energy Company [Member] | ||
Current Assets | ||
Cash and cash equivalents | 43 | 71 |
Restricted cash and cash equivalents | 52 | 37 |
Accounts receivable and accrued revenue, less allowances | 627 | 863 |
Accounts receivable - related parties | 1 | 1 |
Accrued power supply and gas revenue | 10 | 27 |
Inventories at average cost | ||
Gas in underground storage | 652 | 681 |
Materials and supplies | 114 | 113 |
Generating plant fuel stock | 87 | 112 |
Deferred property taxes | 141 | 216 |
Regulatory assets | 20 | 89 |
Prepayments and other current assets | 79 | 63 |
Total current assets | 1,826 | 2,273 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 18,400 | 17,580 |
Less accumulated depreciation and amortization | 5,626 | 5,346 |
Plant, property, and equipment, net | 12,774 | 12,234 |
Construction work in progress | 1,305 | 1,103 |
Total plant, property, and equipment | 14,079 | 13,337 |
Other Non-current Assets | ||
Regulatory assets | 1,870 | 1,956 |
Accounts and notes receivable | 9 | 7 |
Investments | 28 | 38 |
Other | 165 | 236 |
Total other non-current assets | 2,072 | 2,237 |
Total Assets | 17,977 | 17,847 |
Current Liabilities | ||
Current portion of long-term debt, capital leases, and financing obligation | 283 | 145 |
Notes payable | 68 | 60 |
Accounts payable | 571 | 662 |
Accounts payable - related parties | 11 | 12 |
Accrued rate refunds | 20 | 6 |
Accrued interest | 44 | 70 |
Accrued taxes | 78 | 149 |
Deferred income taxes | 59 | 80 |
Regulatory liabilities | 81 | 67 |
Other current liabilities | 100 | 135 |
Total current liabilities | 1,315 | 1,386 |
Non-current Liabilities | ||
Long-term debt | 4,969 | 5,154 |
Non-current portion of capital leases and financing obligation | 111 | 123 |
Regulatory liabilities | 2,110 | 2,095 |
Postretirement benefits | 770 | 793 |
Asset retirement obligations | 418 | 339 |
Deferred investment tax credit | 56 | 37 |
Deferred income taxes | 2,467 | 2,406 |
Other non-current liabilities | 239 | 237 |
Total non-current liabilities | $ 11,140 | $ 11,184 |
Commitments and Contingencies (Notes 2 and 3) | ||
Common stockholder's equity | ||
Common stock | $ 841 | $ 841 |
Other paid-in capital | 3,724 | 3,574 |
Accumulated other comprehensive loss | (11) | (7) |
Retained earnings (Accumulated deficit) | 931 | 832 |
Total common stockholders' equity | 5,485 | 5,240 |
Preferred stock | 37 | 37 |
Total equity | 5,522 | 5,277 |
Total Liabilities and Equity | $ 17,977 | $ 17,847 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Allowances for doubtful accounts receivable | $ 33 | $ 40 |
Allowances for doubtful notes receivable | $ 9 | $ 8 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares outstanding | 277,100,000 | 275,200,000 |
Consumers Energy Company [Member] | ||
Allowances for doubtful accounts receivable | $ 33 | $ 39 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares outstanding | 84,100,000 | 84,100,000 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Equity - USD ($) shares in Millions, $ in Millions | Consumers Energy Company [Member]CMS Energy Common Stock [Member] | Consumers Energy Company [Member]Other Paid-in Capital [Member] | Consumers Energy Company [Member]Accumulated Other Comprehensive Income (Loss) [Member] | Consumers Energy Company [Member]Retirement Benefits Liability [Member] | Consumers Energy Company [Member]Investments [Member] | Consumers Energy Company [Member]Retained Earnings (Accumulated Deficit) [Member] | Consumers Energy Company [Member]Preferred Stock [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 |
Total Equity, beginning at Dec. 31, 2013 | $ 3,257 | $ (2) | $ (17) | $ 15 | $ 724 | $ 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 (gain) | 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 (loss) attributable to CMS Energy | 381 | ||||||||||||||||
Net income | 449 | 449 | 381 | 382 | |||||||||||||
Dividends declared on common stock | (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) | ||||||||||||||||
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 | 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 (gain) | 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 (loss) attributable to CMS Energy | 94 | ||||||||||||||||
Net income | 119 | 119 | 94 | 94 | |||||||||||||
Dividends declared on common stock | (120) | (75) | |||||||||||||||
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 Dec. 31, 2014 | 3,574 | (7) | (26) | 19 | 832 | $ 5,277 | 4,774 | (49) | (48) | $ (1) | (1,058) | 37 | $ 3,707 | ||||
Beginning of period, shares at Dec. 31, 2014 | 84.1 | 275.2 | |||||||||||||||
Common stock issued | 56 | ||||||||||||||||
Common stock repurchased | (11) | ||||||||||||||||
Common stock reissued | 10 | ||||||||||||||||
Stockholder contribution | 150 | ||||||||||||||||
Amortization of net actuarial loss (gain) | 3 | $ 3 | 4 | $ 4 | |||||||||||||
Amortization of prior service credit | (1) | (1) | |||||||||||||||
Unrealized gain (loss) on investments, net of tax | (2) | (2) | (3) | (3) | |||||||||||||
Reclassification adjustments included in net income, net of tax | (5) | 5 | |||||||||||||||
Reclassification adjustments included in net income | |||||||||||||||||
Net income (loss) attributable to CMS Energy | 417 | ||||||||||||||||
Net income | 459 | $ 459 | 417 | 418 | |||||||||||||
Dividends declared on common stock | (359) | (240) | |||||||||||||||
Preferred stock dividends and distributions declared | (1) | ||||||||||||||||
Income Attributable to Noncontrolling Interests | 1 | $ 1 | |||||||||||||||
Distributions, redemptions, and other changes in noncontrolling interests | (1) | ||||||||||||||||
End of period, shares at Sep. 30, 2015 | 84.1 | 277.1 | |||||||||||||||
Total Equity, end at Sep. 30, 2015 | 841 | 3,724 | (11) | (23) | 12 | 931 | 37 | $ 5,522 | 3 | 4,829 | (49) | (45) | (4) | (881) | 37 | $ 3,939 | |
Total Equity, beginning at Jun. 30, 2015 | $ 3,724 | (12) | (24) | $ 12 | 876 | 5,466 | 4,812 | (48) | (46) | (2) | (949) | 37 | 3,855 | ||||
Common stock issued | $ 17 | ||||||||||||||||
Common stock repurchased | |||||||||||||||||
Stockholder contribution | |||||||||||||||||
Amortization of net actuarial loss (gain) | 1 | 1 | 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 | |||||||||||||||||
Net income (loss) attributable to CMS Energy | 148 | ||||||||||||||||
Net income | 160 | $ 160 | 148 | $ 148 | |||||||||||||
Dividends declared on common stock | (105) | (80) | |||||||||||||||
End of period, shares at Sep. 30, 2015 | 84.1 | 277.1 | |||||||||||||||
Total Equity, end at Sep. 30, 2015 | $ 841 | $ 3,724 | $ (11) | $ (23) | $ 12 | $ 931 | $ 37 | $ 5,522 | $ 3 | $ 4,829 | $ (49) | $ (45) | $ (4) | $ (881) | $ 37 | $ 3,939 |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Standards | 1: New Accounting Standards Implementation of New Accounting Standards ASU 2015 ‑13, Application of the Normal Purchases and Normal Sales Scope Exception to Certain Electricity Contracts within Nodal Energy Markets : This standard, which became effective in August 2015 for CMS Energy and Consu mers, was intended to resolve diversity in practice regarding whether certain electricity contracts are eligible for the normal purchases and sales scope exception from derivative accounting. The standard clarifies that contracts that require transmission of electricity through a market with established price points at each node or hub location are eligible for the scope exception. Consumers applies the normal purchases and sales scope exception to many power purchase agreements that require transmission of electricity through the MISO market, which has price points at various node or hub locations. Since this standard clarifies that these contracts are eligible for the scope exception, which is consistent with Consumers’ treatment, the standard had no impact on CMS Energy’s or Consumers’ consolidated financial statements. New Accounting Standards Not Yet Effective ASU 2014 ‑09, Revenue from Contracts with Customers: This standard , which will become effective January 1, 2018 for CMS Energy and Consumers, provides new guidance for recognizing revenue from contracts with customers. A primary objective of the standard is to provide a single, comprehensive revenue recognition model that will be applied across entities, industries, and capital markets. The new guidance will r eplace most of the existing revenue recognition requirements in GAAP, although certain guidance specific to rate-regulated utilities will be retained. Entities will have the option to apply the standard retrospectively to all prior periods presented, or to apply it retrospectively only to contracts existing at the effective date, with the cumulative effect of the standard recorded as an adjustment to beginning retained earnings. 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 Consu mers, addresses stock awards with performance targets that can be met after an employee has completed the required service period . The standard was intended to resolve diversity in practice regarding the accounting treatment for this type of award. Under the new guidance, the probability of the performance target being met should be factored into compensation expense each period. This guidance is consistent with the accounting that CMS Energy and Consumers already apply to awards of this type. Therefore, CMS Energy and Consumers do not expect the standard to impact their consolidated financial statements. ASU 2015 ‑02, Amendments to the Consolidation Analysis: This standard, which will become effective January 1, 2016 for CMS Energy and Consumers, provides amended guidance on whether reporting entities should consolidate certain legal entities, i ncluding limited partnerships. CMS Energy a nd Consumers have assessed this standard and do not expect that it will result in any changes to their consolidation conclusions or have any impact on their consolidated income, cash flows, or financial position. ASU 2015 ‑03, Simplifying the Presentation of Debt Issuance Costs: This standard, which will be come effective January 1, 2016 for CMS Energy and Consumers, requires that debt issuance costs be presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Presently, debt issuance costs are reported as an asset. The new guidance aligns the presentation of debt issuance costs with debt discounts and premiums. The standard is to be applied retrospectively to all prior periods presented. At September 30, 2015 , CMS Energy had $42 million of unamortized debt issuance costs, which included $22 million at Consumers. These amounts are recorded in other non ‑current assets on the consolidated balance sheets. |
Consumers Energy Company [Member] | |
New Accounting Standards | 1: New Accounting Standards Implementation of New Accounting Standards ASU 2015 ‑13, Application of the Normal Purchases and Normal Sales Scope Exception to Certain Electricity Contracts within Nodal Energy Markets : This standard, which became effective in August 2015 for CMS Energy and Consu mers, was intended to resolve diversity in practice regarding whether certain electricity contracts are eligible for the normal purchases and sales scope exception from derivative accounting. The standard clarifies that contracts that require transmission of electricity through a market with established price points at each node or hub location are eligible for the scope exception. Consumers applies the normal purchases and sales scope exception to many power purchase agreements that require transmission of electricity through the MISO market, which has price points at various node or hub locations. Since this standard clarifies that these contracts are eligible for the scope exception, which is consistent with Consumers’ treatment, the standard had no impact on CMS Energy’s or Consumers’ consolidated financial statements. New Accounting Standards Not Yet Effective ASU 2014 ‑09, Revenue from Contracts with Customers: This standard , which will become effective January 1, 2018 for CMS Energy and Consumers, provides new guidance for recognizing revenue from contracts with customers. A primary objective of the standard is to provide a single, comprehensive revenue recognition model that will be applied across entities, industries, and capital markets. The new guidance will r eplace most of the existing revenue recognition requirements in GAAP, although certain guidance specific to rate-regulated utilities will be retained. Entities will have the option to apply the standard retrospectively to all prior periods presented, or to apply it retrospectively only to contracts existing at the effective date, with the cumulative effect of the standard recorded as an adjustment to beginning retained earnings. 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 Consu mers, addresses stock awards with performance targets that can be met after an employee has completed the required service period . The standard was intended to resolve diversity in practice regarding the accounting treatment for this type of award. Under the new guidance, the probability of the performance target being met should be factored into compensation expense each period. This guidance is consistent with the accounting that CMS Energy and Consumers already apply to awards of this type. Therefore, CMS Energy and Consumers do not expect the standard to impact their consolidated financial statements. ASU 2015 ‑02, Amendments to the Consolidation Analysis: This standard, which will become effective January 1, 2016 for CMS Energy and Consumers, provides amended guidance on whether reporting entities should consolidate certain legal entities, i ncluding limited partnerships. CMS Energy a nd Consumers have assessed this standard and do not expect that it will result in any changes to their consolidation conclusions or have any impact on their consolidated income, cash flows, or financial position. ASU 2015 ‑03, Simplifying the Presentation of Debt Issuance Costs: This standard, which will be come effective January 1, 2016 for CMS Energy and Consumers, requires that debt issuance costs be presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Presently, debt issuance costs are reported as an asset. The new guidance aligns the presentation of debt issuance costs with debt discounts and premiums. The standard is to be applied retrospectively to all prior periods presented. At September 30, 2015 , CMS Energy had $42 million of unamortized debt issuance costs, which included $22 million at Consumers. These amounts are recorded in other non ‑current assets on the consolidated balance sheets. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2015 | |
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 negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. There are multiple appeals pending that involve various issues concerning cost 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. Electric Rate Case: In December 2014, Consumers filed an application with the MPSC seeking an annual rate increase of $163 million, based on a 10.7 percent authorized return on equity. The filing requested authority to recover new investment in system reliability, environmental compliance, and technology enhancements. Presented in the following table are the components of the requested increase in revenue: In Millions Components of the rate increase Investment in rate base $ Addition of natural gas-fueled electric generating plant Operating and maintenance costs Cost of capital Working capital Cost-reduction initiatives Gross margin Total $ The filing also seeks approval of an investment recovery mechanism that would allow recovery of an additional $163 million in total for incremental investments that Consumers plans to make in 2016 and 2017 and $78 million for incremental investments planned in 2018, subject to reconciliation . These incremental investments would help to ensure continued system reliability, environmental compliance, and technology enhancements . In June 2015, Consumers self-implemented an annual rate increase of $110 million, subject to refund with interest. Consumers expects a final order on or before December 1, 2015. Gas Rate Case: In July 2014, Consumers filed an application with the MPSC seeking an annual rate increase of $88 million. The filing requested authority to recover new investments that will allow Consumers to improve system reliability, comply with regulations, and enhance technology. In January 2015, the MPSC approved a settlement agreement authorizing a $45 million annual rate increase, based on a 10.3 percent authorized return on equity. This was Consumers’ first gas base rate increase since 2012. Energy Optimization Plan Incentive: In September 2015, the MPSC approved a settlement agreement authorizing Consumers to collect $17 million during 2016 as an incentive for exceeding statutory targets under both its electric and gas optimization plans during 2014 . Consumers recognized revenue under this program of $17 million in 2014. |
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 negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. There are multiple appeals pending that involve various issues concerning cost 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. Electric Rate Case: In December 2014, Consumers filed an application with the MPSC seeking an annual rate increase of $163 million, based on a 10.7 percent authorized return on equity. The filing requested authority to recover new investment in system reliability, environmental compliance, and technology enhancements. Presented in the following table are the components of the requested increase in revenue: In Millions Components of the rate increase Investment in rate base $ Addition of natural gas-fueled electric generating plant Operating and maintenance costs Cost of capital Working capital Cost-reduction initiatives Gross margin Total $ The filing also seeks approval of an investment recovery mechanism that would allow recovery of an additional $163 million in total for incremental investments that Consumers plans to make in 2016 and 2017 and $78 million for incremental investments planned in 2018, subject to reconciliation . These incremental investments would help to ensure continued system reliability, environmental compliance, and technology enhancements . In June 2015, Consumers self-implemented an annual rate increase of $110 million, subject to refund with interest. Consumers expects a final order on or before December 1, 2015. Gas Rate Case: In July 2014, Consumers filed an application with the MPSC seeking an annual rate increase of $88 million. The filing requested authority to recover new investments that will allow Consumers to improve system reliability, comply with regulations, and enhance technology. In January 2015, the MPSC approved a settlement agreement authorizing a $45 million annual rate increase, based on a 10.3 percent authorized return on equity. This was Consumers’ first gas base rate increase since 2012. Energy Optimization Plan Incentive: In September 2015, the MPSC approved a settlement agreement authorizing Consumers to collect $17 million during 2016 as an incentive for exceeding statutory targets under both its electric and gas optimization plans during 2014 . Consumers recognized revenue under this program of $17 million in 2014. |
Contingencies And Commitments
Contingencies And Commitments | 9 Months Ended |
Sep. 30, 2015 | |
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 negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. CMS Energy Contingencies 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 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. The matter was appealed to the U.S. Supreme Court , which in April 2015 upheld the Ninth Circuit’s decision. The cases have been remanded back to the federal district court. 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 negatively affect CMS Energy’s liquidity, financial condition, and results of operations. Bay Harbor: CMS Land 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 Land and the MDEQ finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land 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. CMS Land is presently working with the MDEQ to renew this permit, which 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. CMS Land and other parties have received a demand for payment from the EPA in the amount of $ 8 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. CMS Energy has recorded a cumulative charge related to Bay Harbor of $247 million, which includes accretion expense. At September 30, 2015 , CMS Energy had a recorded liability of $59 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 $75 million. CMS Energy expects to pay the following amounts for long-term liquid disposal and operating and maintenance costs in 2015 and in each of the next four years: In Millions CMS Energy 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 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 . The matter is proceed ing to formal arbitration. CMS Energy has concluded that the government’s tax claim is without merit and is contesting the claim , but cannot predict the financial impact or outcome of th e matter. It is possible that the outcome could negatively affect CMS Energy’s liquidity, financial condition, and results of operations. Consumers Electric Utility Contingencies Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under the 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 $ 5 million and $ 6 million. At September 30, 2015 , Consumers had a recorded liability of $ 5 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 2011, Consumers received a follow ‑up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river. Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $ 2 million and $ 8 million. Various factors, including the number of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At September 30, 2015 , Consumers had a recorded liability of $ 2 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable 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 part of the PCB material and replaced it 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. CCRs: In April 2015, the EPA published a final rule regulating CCRs, such as coal ash, under the Resource Conservation and Recovery Act. Consumers determined that this rule would require it to accelerate a minor amount of its planned capital and cost of removal expenditures at its coal-fueled units to meet compliance deadlines. These changes in timing did not impact Consumers’ previously recorded ARO liability for coal ash disposal areas. Following the publication of the EPA rule, the MDEQ convened a workgroup of utilities and public stakeholders to evaluate the state’s approach to CCR regulation. The workgroup determined that more prescriptive state requirements should be established for certain categories of waste management facilities, such as coal ash surface impoundments. In September 2015, the MDEQ submitted a draft plan to the EPA in which it declared its intent to explicitly regulate these facilities under state laws, and the EPA responded, confirming that it agreed with the MDEQ’s regulatory approach. The proposed changes to state regulations in the MDEQ’s draft plan clarified the EPA CCR rule closure plan requirements and provided Consumers with sufficient information to reasonably estimate an additional ARO liability. Accordingly, in September 2015, Consumers recorded a $68 million increase to its coal ash disposal ARO liability and a corresponding increase to plant, property, and equipment that will be amortized over the remaining lives of the facilities. For additional details on the ARO liability , see Note 8, Asset Retirement Obligations. 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, 2015, Consumers had a recorded liability of $ 112 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 $ 126 million. Consumers expects to pay the following amounts for remediation and other response activity costs in 2015 and in each of the next four years: In Millions Consumers Remediation and other response activity costs $ $ $ $ $ Consumers periodically reviews these cost estimates and is presently considering changes to its remediation technique at certain sites that could lead to an increase in its 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, 2015, Consumers had a regulatory asset of $ 143 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, 2015, 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, 2015: In Millions Maximum Carrying Guarantee Description Issue Date Expiration Date Obligation Amount CMS Energy, including Consumers Indemnity obligations from asset sales and other agreements Various Various through August 2029 $ 1 $ Guarantees Various Various through March 2021 2 - Consumers Indemnity obligations and other guarantees Various Various through August 2029 $ 2 $ 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. 2 In the normal course of business, CMS Energy and its subsidiaries have provided guarantees and other indemnities to counterparties to facilitate commercial transactions. If a counterparty incurs losses due to nonperformance or nonpayment under the contract terms, CMS Energy or one of its subsidiaries could be required to pay the counterparty. 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 Michigan Sales and Use Tax Litigation: In 2010, the Michigan Department of Treasury finalized a sales and use tax audit of Consumers for the period from October 1, 1997 to December 31, 2004. It determined that Consumers’ electric and natural gas distribution equipment was not eligible for an industrial-processing exemption and therefore was subject to the use tax. Consumers paid the tax for the period from 1997 through 2004 and filed a claim in the Michigan Court of Claims disputing the tax determination. Consumers has continued to apply the industrial-processing exemption for the years subsequent to 2004. Detroit Edison Company was also denied the tax exemption and filed a similar claim in the Michigan Court of Claims, which was subsequently appealed to the Michigan Supreme Court. In July 2015, the Michigan Supreme Court issued an opinion finding that Detroit Edison Company was eligible for a partial industrial-processing exemption on its electric distribution equipment. It remanded the case back to the Michigan Court of Claims. The results of this case could affect Consumers’ claim, which could result in a partial refund of taxes paid previously or an assessment of additional taxes and interest owed for the years subsequent to 2004. Consumers cannot estimate the amount or timing of any potential tax refunds or assessments, but considers the likelihood of a material unfavorable outcome to be remote. 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 negative 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 negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. CMS Energy Contingencies 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 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. The matter was appealed to the U.S. Supreme Court , which in April 2015 upheld the Ninth Circuit’s decision. The cases have been remanded back to the federal district court. 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 negatively affect CMS Energy’s liquidity, financial condition, and results of operations. Bay Harbor: CMS Land 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 Land and the MDEQ finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land 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. CMS Land is presently working with the MDEQ to renew this permit, which 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. CMS Land and other parties have received a demand for payment from the EPA in the amount of $ 8 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. CMS Energy has recorded a cumulative charge related to Bay Harbor of $247 million, which includes accretion expense. At September 30, 2015 , CMS Energy had a recorded liability of $59 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 $75 million. CMS Energy expects to pay the following amounts for long-term liquid disposal and operating and maintenance costs in 2015 and in each of the next four years: In Millions CMS Energy 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 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 . The matter is proceed ing to formal arbitration. CMS Energy has concluded that the government’s tax claim is without merit and is contesting the claim , but cannot predict the financial impact or outcome of th e matter. It is possible that the outcome could negatively affect CMS Energy’s liquidity, financial condition, and results of operations. Consumers Electric Utility Contingencies Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under the 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 $ 5 million and $ 6 million. At September 30, 2015 , Consumers had a recorded liability of $ 5 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 2011, Consumers received a follow ‑up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river. Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $ 2 million and $ 8 million. Various factors, including the number of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At September 30, 2015 , Consumers had a recorded liability of $ 2 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable 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 part of the PCB material and replaced it 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. CCRs: In April 2015, the EPA published a final rule regulating CCRs, such as coal ash, under the Resource Conservation and Recovery Act. Consumers determined that this rule would require it to accelerate a minor amount of its planned capital and cost of removal expenditures at its coal-fueled units to meet compliance deadlines. These changes in timing did not impact Consumers’ previously recorded ARO liability for coal ash disposal areas. Following the publication of the EPA rule, the MDEQ convened a workgroup of utilities and public stakeholders to evaluate the state’s approach to CCR regulation. The workgroup determined that more prescriptive state requirements should be established for certain categories of waste management facilities, such as coal ash surface impoundments. In September 2015, the MDEQ submitted a draft plan to the EPA in which it declared its intent to explicitly regulate these facilities under state laws, and the EPA responded, confirming that it agreed with the MDEQ’s regulatory approach. The proposed changes to state regulations in the MDEQ’s draft plan clarified the EPA CCR rule closure plan requirements and provided Consumers with sufficient information to reasonably estimate an additional ARO liability. Accordingly, in September 2015, Consumers recorded a $68 million increase to its coal ash disposal ARO liability and a corresponding increase to plant, property, and equipment that will be amortized over the remaining lives of the facilities. For additional details on the ARO liability , see Note 8, Asset Retirement Obligations. 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, 2015, Consumers had a recorded liability of $ 112 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 $ 126 million. Consumers expects to pay the following amounts for remediation and other response activity costs in 2015 and in each of the next four years: In Millions Consumers Remediation and other response activity costs $ $ $ $ $ Consumers periodically reviews these cost estimates and is presently considering changes to its remediation technique at certain sites that could lead to an increase in its 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, 2015, Consumers had a regulatory asset of $ 143 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, 2015, 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, 2015: In Millions Maximum Carrying Guarantee Description Issue Date Expiration Date Obligation Amount CMS Energy, including Consumers Indemnity obligations from asset sales and other agreements Various Various through August 2029 $ 1 $ Guarantees Various Various through March 2021 2 - Consumers Indemnity obligations and other guarantees Various Various through August 2029 $ 2 $ 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. 2 In the normal course of business, CMS Energy and its subsidiaries have provided guarantees and other indemnities to counterparties to facilitate commercial transactions. If a counterparty incurs losses due to nonperformance or nonpayment under the contract terms, CMS Energy or one of its subsidiaries could be required to pay the counterparty. 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 Michigan Sales and Use Tax Litigation: In 2010, the Michigan Department of Treasury finalized a sales and use tax audit of Consumers for the period from October 1, 1997 to December 31, 2004. It determined that Consumers’ electric and natural gas distribution equipment was not eligible for an industrial-processing exemption and therefore was subject to the use tax. Consumers paid the tax for the period from 1997 through 2004 and filed a claim in the Michigan Court of Claims disputing the tax determination. Consumers has continued to apply the industrial-processing exemption for the years subsequent to 2004. Detroit Edison Company was also denied the tax exemption and filed a similar claim in the Michigan Court of Claims, which was subsequently appealed to the Michigan Supreme Court. In July 2015, the Michigan Supreme Court issued an opinion finding that Detroit Edison Company was eligible for a partial industrial-processing exemption on its electric distribution equipment. It remanded the case back to the Michigan Court of Claims. The results of this case could affect Consumers’ claim, which could result in a partial refund of taxes paid previously or an assessment of additional taxes and interest owed for the years subsequent to 2004. Consumers cannot estimate the amount or timing of any potential tax refunds or assessments, but considers the likelihood of a material unfavorable outcome to be remote. 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 negative effect on their consolidated results of operations, financial condition, or liquidity. |
Financings And Capitalization
Financings And Capitalization | 9 Months Ended |
Sep. 30, 2015 | |
Financings And Capitalization | 4: FINANCINGS AND CAPITALIZATION Debt Retirements: In October 2015, Consumers retired $50 million of 2.60 percent FMBs at maturity . Revolving Credit Facilities: The following secured revolving credit facilities with banks were available at September 30, 2015 : In Millions Letters of Credit Expiration Date Amount of Facility Amount Borrowed Outstanding Amount Available CMS Energy parent May 27, 2020 1 $ $ - $ $ Consumers May 27, 2020 2 $ $ - $ $ May 9, 2018 2 - - 1 During the nine months ended September 30, 2015 , CMS Energy’s average borrowings totaled $ 40 million with a weighted-average interest rate of 1.43 percent. 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, which will expire in November 2016, 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, 2015, no accounts receivable had been transferred under the program. 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 of up to 365 days and that bear interest at fixed or floating rates. These issuances are supported by Consumers’ $650 million revolving credit facility and may have an aggregate principal amount outstanding of up to $500 million. While the amount of outstanding commercial paper does not reduce the revolver’s available capacity, Consumers would not issue commercial paper in an amount exceeding the available revolver capacity. At September 30, 2015, $68 million of commercial paper notes with a weighted - average annual interest rate of 0.52 percent were outstanding under this program. Dividend Restrictions: At September 30, 2015, payment of dividends by CMS Energy on its common stock was limited to $ 3.9 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at September 30, 2015 , Consumers had $867 million of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that under a variety of circumstances dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. For the nine months ended September 30, 2015 , Consumers paid $ 359 million in dividends on its common stock to CMS Energy. Issuance of Common Stock: In April 2015, CMS Energy renewed its continuous equity offering program. Under this program, CMS Energy may sell, from time to time in “at the market” offerings, common stock having an aggregate sales price of up to $100 million. 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) April – May 2015 $ $ July 2015 Total $ $ With these transactions, CMS Energy has completed its planned stock issuances under the program for 2015. |
Consumers Energy Company [Member] | |
Financings And Capitalization | 4: FINANCINGS AND CAPITALIZATION Debt Retirements: In October 2015, Consumers retired $50 million of 2.60 percent FMBs at maturity . Revolving Credit Facilities: The following secured revolving credit facilities with banks were available at September 30, 2015 : In Millions Letters of Credit Expiration Date Amount of Facility Amount Borrowed Outstanding Amount Available CMS Energy parent May 27, 2020 1 $ $ - $ $ Consumers May 27, 2020 2 $ $ - $ $ May 9, 2018 2 - - 1 During the nine months ended September 30, 2015 , CMS Energy’s average borrowings totaled $ 40 million with a weighted-average interest rate of 1.43 percent. 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, which will expire in November 2016, 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, 2015, no accounts receivable had been transferred under the program. 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 of up to 365 days and that bear interest at fixed or floating rates. These issuances are supported by Consumers’ $650 million revolving credit facility and may have an aggregate principal amount outstanding of up to $500 million. While the amount of outstanding commercial paper does not reduce the revolver’s available capacity, Consumers would not issue commercial paper in an amount exceeding the available revolver capacity. At September 30, 2015, $68 million of commercial paper notes with a weighted - average annual interest rate of 0.52 percent were outstanding under this program. Dividend Restrictions: At September 30, 2015, payment of dividends by CMS Energy on its common stock was limited to $ 3.9 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at September 30, 2015 , Consumers had $867 million of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that under a variety of circumstances dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. For the nine months ended September 30, 2015 , Consumers paid $ 359 million in dividends on its common stock to CMS Energy. Issuance of Common Stock: In April 2015, CMS Energy renewed its continuous equity offering program. Under this program, CMS Energy may sell, from time to time in “at the market” offerings, common stock having an aggregate sales price of up to $100 million. 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) April – May 2015 $ $ July 2015 Total $ $ With these transactions, CMS Energy has completed its planned stock issuances under the program for 2015. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
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 Assets 1 Cash equivalents $ $ $ - $ Restricted cash equivalents CMS Energy common stock - - Nonqualified deferred compensation plan assets DB SERP Cash equivalents Mutual funds Derivative instruments Commodity contracts Total $ $ $ $ Liabilities 1 Nonqualified deferred compensation plan liabilities $ $ $ $ Derivative instruments Commodity contracts Total $ $ $ $ 1 All assets and liabilities were classified as Level 1 with the exception of some commodity contracts, which were classified as Level 2 or Level 3 and which were insignificant at September 30, 2015 and December 31, 2014. Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity. Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted 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, which include 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. Under regulatory accounting, all changes in fair value associated with FTRs are deferred as regulatory assets and 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 September 30 CMS Energy, including Consumers Balance at beginning of period $ $ $ $ Total gains (losses) offset through regulatory accounting - Purchases - - - Settlements Balance at end of period $ $ $ $ Unrealized losses included in earnings relating to assets and liabilities still held at end of period 1 $ $ - $ - $ - Consumers Balance at beginning of period $ $ $ $ Total gains (losses) offset through regulatory accounting - Purchases - - - Settlements Balance at end of period $ $ $ $ 1 CMS Energy records unrealized losses for Level 3 recurring fair value measurements in earnings as a component of 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 Assets 1 Cash equivalents $ $ $ - $ Restricted cash equivalents CMS Energy common stock - - Nonqualified deferred compensation plan assets DB SERP Cash equivalents Mutual funds Derivative instruments Commodity contracts Total $ $ $ $ Liabilities 1 Nonqualified deferred compensation plan liabilities $ $ $ $ Derivative instruments Commodity contracts Total $ $ $ $ 1 All assets and liabilities were classified as Level 1 with the exception of some commodity contracts, which were classified as Level 2 or Level 3 and which were insignificant at September 30, 2015 and December 31, 2014. Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity. Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted 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, which include 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. Under regulatory accounting, all changes in fair value associated with FTRs are deferred as regulatory assets and 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 September 30 CMS Energy, including Consumers Balance at beginning of period $ $ $ $ Total gains (losses) offset through regulatory accounting - Purchases - - - Settlements Balance at end of period $ $ $ $ Unrealized losses included in earnings relating to assets and liabilities still held at end of period 1 $ $ - $ - $ - Consumers Balance at beginning of period $ $ $ $ Total gains (losses) offset through regulatory accounting - Purchases - - - Settlements Balance at end of period $ $ $ $ 1 CMS Energy records unrealized losses for Level 3 recurring fair value measurements in earnings as a component of maintenance and other operating expenses on its consolidated statements of income. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 December 31, 2014 Fair Value Fair Value Carrying Level Carrying Level Amount Total Amount Total CMS Energy, including Consumers Securities held to maturity $ $ $ - $ $ - $ $ $ - $ $ - Notes receivable 1 - - - - Long-term debt 2 - - Consumers Long-term debt 3 $ $ $ - $ $ $ $ $ - $ $ 1 Includes current portion of notes receivable of $136 million at September 30, 2015 and $ 138 million at December 31, 2014. 2 Includes current portion of long-term debt of $720 million at September 30, 2015 and $ 519 million at December 31, 2014. 3 Includes current portion of long- term debt of $261 million at September 30, 2015 and $ 124 million at December 31, 2014. 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, 2015 and December 31, 2014, 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 September 30, 2015 December 31, 2014 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 $ $ - $ $ $ $ - $ $ Held to maturity Debt securities - - - - Consumers Available for sale DB SERP Mutual funds $ $ - $ $ $ $ - $ $ CMS Energy common stock - - The mutual funds classified as available for sale hold primarily fixed-income instruments of varying maturities. During the nine months ended September 30, 2015 , CMS Energy contributed $25 million to the DB SERP, which included a contribution of $17 million by Consumers. 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 $ 9 million in January 2015 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 recorded in other income on Consumers’ consolidated statements of income. The gain was eliminated on CMS Energy’s consolidated statements of 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 September 30, 2015 December 31, 2014 Fair Value Fair Value Carrying Level Carrying Level Amount Total Amount Total CMS Energy, including Consumers Securities held to maturity $ $ $ - $ $ - $ $ $ - $ $ - Notes receivable 1 - - - - Long-term debt 2 - - Consumers Long-term debt 3 $ $ $ - $ $ $ $ $ - $ $ 1 Includes current portion of notes receivable of $136 million at September 30, 2015 and $ 138 million at December 31, 2014. 2 Includes current portion of long-term debt of $720 million at September 30, 2015 and $ 519 million at December 31, 2014. 3 Includes current portion of long- term debt of $261 million at September 30, 2015 and $ 124 million at December 31, 2014. 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, 2015 and December 31, 2014, 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 September 30, 2015 December 31, 2014 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 $ $ - $ $ $ $ - $ $ Held to maturity Debt securities - - - - Consumers Available for sale DB SERP Mutual funds $ $ - $ $ $ $ - $ $ CMS Energy common stock - - The mutual funds classified as available for sale hold primarily fixed-income instruments of varying maturities. During the nine months ended September 30, 2015 , CMS Energy contributed $25 million to the DB SERP, which included a contribution of $17 million by Consumers. 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 $ 9 million in January 2015 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 recorded in other income on Consumers’ consolidated statements of income. The gain was eliminated on CMS Energy’s consolidated statements of income. |
Notes Receivable
Notes Receivable | 9 Months Ended |
Sep. 30, 2015 | |
Notes Receivable [Abstract] | |
Notes Receivable | 7: NOTES RECEIVABLE Presented in the following table are details of CMS Energy’s current and non ‑current notes receivable: In Millions September 30, 2015 December 31, 2014 CMS Energy Current EnerBank notes receivable, net of allowance for loan losses $ $ EnerBank notes receivable held for sale Other - Non-current EnerBank notes receivable, net of allowance for loan losses Total notes receivable $ $ EnerBank notes receivable are unsecured consumer installment loans for financing home improvements. EnerBank records its notes receivable at cost, less allowance for loan losses. In May 2015, EnerBank completed a sale of notes receivable, receiving proceeds of $48 million and recording an insignificant gain. At September 30, 2015, $17 million of notes receivable were classified as held for sale; the fair value of notes receivable held for sale exceed ed their carrying value. 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 $6 million at September 30, 2015 and $5 million at December 31, 2014. At September 30, 2015 and December 31, 2014, $ 1 million of EnerBank’s loans had been modified as troubled debt restructurings. |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligations | 8: Asset Retirement Obligations In September 2015, Consumers increased its ARO liability for coal ash disposal areas. The increase was attributable to proposed changes in state regulations that provided Consumers with sufficient information to reasonably estimate an additional ARO liability associated with closure work at certain waste management facilities. For additional details, see Note 3, Contingencies and Commitments – Consumers Electric Utility Contingencies, “Electric Environmental Matters.” Presented in the following table are the changes in CMS Energy’s and Consumers’ ARO liabilities: In Millions ARO ARO Liability Cash flow Liability Company and ARO Description 12/31/2014 Incurred Settled Accretion Revisions 9/30/2015 CMS Energy, including Consumers Gas treating plant and gas wells $ $ - $ - $ - $ - $ Consumers - Total CMS Energy $ $ - $ $ $ $ Consumers Coal ash disposal areas $ $ - $ - $ $ $ Asbestos abatement - - - Gas distribution cut, purge, and cap - - Wind parks - - - - Total Consumers $ $ - $ $ $ $ |
Consumers Energy Company [Member] | |
Asset Retirement Obligations | 8: Asset Retirement Obligations In September 2015, Consumers increased its ARO liability for coal ash disposal areas. The increase was attributable to proposed changes in state regulations that provided Consumers with sufficient information to reasonably estimate an additional ARO liability associated with closure work at certain waste management facilities. For additional details, see Note 3, Contingencies and Commitments – Consumers Electric Utility Contingencies, “Electric Environmental Matters.” Presented in the following table are the changes in CMS Energy’s and Consumers’ ARO liabilities: In Millions ARO ARO Liability Cash flow Liability Company and ARO Description 12/31/2014 Incurred Settled Accretion Revisions 9/30/2015 CMS Energy, including Consumers Gas treating plant and gas wells $ $ - $ - $ - $ - $ Consumers - Total CMS Energy $ $ - $ $ $ $ Consumers Coal ash disposal areas $ $ - $ - $ $ $ Asbestos abatement - - - Gas distribution cut, purge, and cap - - Wind parks - - - - Total Consumers $ $ - $ $ $ $ |
Retirement Benefits
Retirement Benefits | 9 Months Ended |
Sep. 30, 2015 | |
Retirement Benefits | 9 : 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 2013, Consumers’ OPEB costs decreased substantially and, as a result, the OPEB Plan was fully funded at December 31, 20 13. In September 2014, the MPSC approved a settlement agreement addressing Consumers’ OPEB Plan funding. In accordance with the settlement agreement, Consumers contributed $25 million to the plan in October 2014 and $29 million in February 2015. Consumers has suspended 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 DB Pension Plan OPEB Plan Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ $ $ $ $ $ $ $ Interest expense Expected return on plan assets Amortization of: Net loss Prior service cost (credit) - - Net periodic cost (credit) $ $ $ $ $ $ $ $ Consumers Net periodic cost (credit) Service cost $ $ $ $ $ $ $ $ Interest expense Expected return on plan assets Amortization of: Net loss - Prior service cost (credit) - - Net periodic cost (credit) $ $ $ $ $ $ $ $ |
Consumers Energy Company [Member] | |
Retirement Benefits | 9 : 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 2013, Consumers’ OPEB costs decreased substantially and, as a result, the OPEB Plan was fully funded at December 31, 20 13. In September 2014, the MPSC approved a settlement agreement addressing Consumers’ OPEB Plan funding. In accordance with the settlement agreement, Consumers contributed $25 million to the plan in October 2014 and $29 million in February 2015. Consumers has suspended 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 DB Pension Plan OPEB Plan Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ $ $ $ $ $ $ $ Interest expense Expected return on plan assets Amortization of: Net loss Prior service cost (credit) - - Net periodic cost (credit) $ $ $ $ $ $ $ $ Consumers Net periodic cost (credit) Service cost $ $ $ $ $ $ $ $ Interest expense Expected return on plan assets Amortization of: Net loss - Prior service cost (credit) - - Net periodic cost (credit) $ $ $ $ $ $ $ $ |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes | 10 : 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: Nine Months Ended September 30 CMS Energy, including Consumers U.S. federal income tax rate % % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect Accelerated flow-through of regulatory tax benefits Other, net Effective tax rate % % Consumers U.S. federal income tax rate % % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect Accelerated flow-through of regulatory tax benefits Other, net Effective tax rate % % 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 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 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. T his treatment reduced Consumers’ income tax expense by $ 29 million for the nine months ended September 30, 2015 and by $ 30 million f or the nine months ended September 30, 2014 . |
Consumers Energy Company [Member] | |
Income Taxes | 10 : 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: Nine Months Ended September 30 CMS Energy, including Consumers U.S. federal income tax rate % % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect Accelerated flow-through of regulatory tax benefits Other, net Effective tax rate % % Consumers U.S. federal income tax rate % % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect Accelerated flow-through of regulatory tax benefits Other, net Effective tax rate % % 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 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 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. T his treatment reduced Consumers’ income tax expense by $ 29 million for the nine months ended September 30, 2015 and by $ 30 million f or the nine months ended September 30, 2014 . |
Earnings Per Share - CMS Energy
Earnings Per Share - CMS Energy | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share - CMS Energy [Abstract] | |
Earnings Per Share - CMS Energy | 1 1 : 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 September 30 Income available to common stockholders Income from continuing operations $ $ $ $ Less income attributable to noncontrolling interests - - Income from continuing operations available to common stockholders – basic and diluted $ $ $ $ Average common shares outstanding Weighted-average shares – basic Add dilutive contingently convertible securities - - - Add dilutive non-vested stock awards Weighted-average shares – diluted Income from continuing operations per average common share available to common stockholders Basic $ $ $ $ Diluted 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. 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, 2015 | |
Reportable Segments | 12 : REPORTABLE SEGMENTS Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders. CMS Energy The reportable segments for CMS Energy are: · electric utility, consisting of regulated activities associated with the generation , transmission, 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 · enterprises, consisting of various subsidiaries engaging primarily in domestic independent power production. CMS Energy presents EnerBank and corporate interest and other expenses within other reconciling items. Consumers The reportable segments for Consumers are: · electric utility, consisting of regulated activities associated with the generation , transmission, and distribution of electricity in Michigan; and · gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan. Consumers’ other consolidated entities are presented within other reconciling items. Presented in the following tables is financial information by reportable segment: In Millions Three Months Ended Nine Months Ended September 30 CMS Energy, including Consumers Operating revenue Electric utility $ $ $ $ Gas utility Enterprises Other reconciling items Total operating revenue – CMS Energy $ $ $ $ Consumers Operating revenue Electric utility $ $ $ $ Gas utility Other reconciling items - - - Total operating revenue – Consumers $ $ $ $ CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ $ $ $ Gas utility Enterprises Other reconciling items Total net income available to common stockholders – CMS Energy $ $ $ $ Consumers Net income available to common stockholder Electric utility $ $ $ $ Gas utility Other reconciling items - Total net income available to common stockholder – Consumers $ $ $ $ In Millions September 30, 2015 December 31, 2014 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ $ Gas utility 1 Enterprises Other reconciling items Total plant, property, and equipment, gross – CMS Energy $ $ Consumers Plant, property, and equipment, gross Electric utility 1 $ $ Gas utility 1 Other reconciling items Total plant, property, and equipment, gross – Consumers $ $ CMS Energy, including Consumers Total assets Electric utility 1 $ $ Gas utility 1 Enterprises Other reconciling items Total assets – CMS Energy $ $ Consumers Total assets Electric utility 1 $ $ Gas utility 1 Other reconciling items Total assets – Consumers $ $ 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 | 12 : REPORTABLE SEGMENTS Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders. CMS Energy The reportable segments for CMS Energy are: · electric utility, consisting of regulated activities associated with the generation , transmission, 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 · enterprises, consisting of various subsidiaries engaging primarily in domestic independent power production. CMS Energy presents EnerBank and corporate interest and other expenses within other reconciling items. Consumers The reportable segments for Consumers are: · electric utility, consisting of regulated activities associated with the generation , transmission, and distribution of electricity in Michigan; and · gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan. Consumers’ other consolidated entities are presented within other reconciling items. Presented in the following tables is financial information by reportable segment: In Millions Three Months Ended Nine Months Ended September 30 CMS Energy, including Consumers Operating revenue Electric utility $ $ $ $ Gas utility Enterprises Other reconciling items Total operating revenue – CMS Energy $ $ $ $ Consumers Operating revenue Electric utility $ $ $ $ Gas utility Other reconciling items - - - Total operating revenue – Consumers $ $ $ $ CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ $ $ $ Gas utility Enterprises Other reconciling items Total net income available to common stockholders – CMS Energy $ $ $ $ Consumers Net income available to common stockholder Electric utility $ $ $ $ Gas utility Other reconciling items - Total net income available to common stockholder – Consumers $ $ $ $ In Millions September 30, 2015 December 31, 2014 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ $ Gas utility 1 Enterprises Other reconciling items Total plant, property, and equipment, gross – CMS Energy $ $ Consumers Plant, property, and equipment, gross Electric utility 1 $ $ Gas utility 1 Other reconciling items Total plant, property, and equipment, gross – Consumers $ $ CMS Energy, including Consumers Total assets Electric utility 1 $ $ Gas utility 1 Enterprises Other reconciling items Total assets – CMS Energy $ $ Consumers Total assets Electric utility 1 $ $ Gas utility 1 Other reconciling items Total assets – Consumers $ $ 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, 2015 | |
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. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Electric Rate Case [Member] | Consumers Energy Company [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Schedule of Requested Annual Rate Increase | In Millions Components of the rate increase Investment in rate base $ Addition of natural gas-fueled electric generating plant Operating and maintenance costs Cost of capital Working capital Cost-reduction initiatives Gross margin Total $ |
Contingencies And Commitments (
Contingencies And Commitments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Site Contingency [Line Items] | |
Guarantees | In Millions Maximum Carrying Guarantee Description Issue Date Expiration Date Obligation Amount CMS Energy, including Consumers Indemnity obligations from asset sales and other agreements Various Various through August 2029 $ 1 $ Guarantees Various Various through March 2021 2 - Consumers Indemnity obligations and other guarantees Various Various through August 2029 $ 2 $ 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. 2 In the normal course of business, CMS Energy and its subsidiaries have provided guarantees and other indemnities to counterparties to facilitate commercial transactions. If a counterparty incurs losses due to nonperformance or nonpayment under the contract terms, CMS Energy or one of its subsidiaries could be required to pay the counterparty. |
Consumers Energy Company [Member] | |
Site Contingency [Line Items] | |
Expected Remediation Cost By Year | In Millions Consumers Remediation and other response activity costs $ $ $ $ $ |
Guarantees | In Millions Maximum Carrying Guarantee Description Issue Date Expiration Date Obligation Amount CMS Energy, including Consumers Indemnity obligations from asset sales and other agreements Various Various through August 2029 $ 1 $ Guarantees Various Various through March 2021 2 - Consumers Indemnity obligations and other guarantees Various Various through August 2029 $ 2 $ 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. 2 In the normal course of business, CMS Energy and its subsidiaries have provided guarantees and other indemnities to counterparties to facilitate commercial transactions. If a counterparty incurs losses due to nonperformance or nonpayment under the contract terms, CMS Energy or one of its subsidiaries could be required to pay the counterparty. |
Bay Harbor [Member] | |
Site Contingency [Line Items] | |
Expected Remediation Cost By Year | In Millions CMS Energy Long-term liquid disposal and operating and maintenance costs $ $ $ $ $ |
Financings And Capitalization (
Financings And Capitalization (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Revolving Credit Facilities | In Millions Letters of Credit Expiration Date Amount of Facility Amount Borrowed Outstanding Amount Available CMS Energy parent May 27, 2020 1 $ $ - $ $ Consumers May 27, 2020 2 $ $ - $ $ May 9, 2018 2 - - 1 During the nine months ended September 30, 2015 , CMS Energy’s average borrowings totaled $ 40 million with a weighted-average interest rate of 1.43 percent. Obligations under this facility are secured by Consumers common stock. 2 Obligations under this facility are secured by FMBs of Consumers. |
Issuance Of Stock | Number of Average Proceeds Shares Issued Price per Share (In Millions) April – May 2015 $ $ July 2015 Total $ $ |
Consumers Energy Company [Member] | |
Revolving Credit Facilities | In Millions Letters of Credit Expiration Date Amount of Facility Amount Borrowed Outstanding Amount Available CMS Energy parent May 27, 2020 1 $ $ - $ $ Consumers May 27, 2020 2 $ $ - $ $ May 9, 2018 2 - - 1 During the nine months ended September 30, 2015 , CMS Energy’s average borrowings totaled $ 40 million with a weighted-average interest rate of 1.43 percent. 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, 2015 | |
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 Assets 1 Cash equivalents $ $ $ - $ Restricted cash equivalents CMS Energy common stock - - Nonqualified deferred compensation plan assets DB SERP Cash equivalents Mutual funds Derivative instruments Commodity contracts Total $ $ $ $ Liabilities 1 Nonqualified deferred compensation plan liabilities $ $ $ $ Derivative instruments Commodity contracts Total $ $ $ $ 1 All assets and liabilities were classified as Level 1 with the exception of some commodity contracts, which were classified as Level 2 or Level 3 and which were insignificant at September 30, 2015 and December 31, 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 September 30 CMS Energy, including Consumers Balance at beginning of period $ $ $ $ Total gains (losses) offset through regulatory accounting - Purchases - - - Settlements Balance at end of period $ $ $ $ Unrealized losses included in earnings relating to assets and liabilities still held at end of period 1 $ $ - $ - $ - Consumers Balance at beginning of period $ $ $ $ Total gains (losses) offset through regulatory accounting - Purchases - - - Settlements Balance at end of period $ $ $ $ |
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 Assets 1 Cash equivalents $ $ $ - $ Restricted cash equivalents CMS Energy common stock - - Nonqualified deferred compensation plan assets DB SERP Cash equivalents Mutual funds Derivative instruments Commodity contracts Total $ $ $ $ Liabilities 1 Nonqualified deferred compensation plan liabilities $ $ $ $ Derivative instruments Commodity contracts Total $ $ $ $ 1 All assets and liabilities were classified as Level 1 with the exception of some commodity contracts, which were classified as Level 2 or Level 3 and which were insignificant at September 30, 2015 and December 31, 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 September 30 CMS Energy, including Consumers Balance at beginning of period $ $ $ $ Total gains (losses) offset through regulatory accounting - Purchases - - - Settlements Balance at end of period $ $ $ $ Unrealized losses included in earnings relating to assets and liabilities still held at end of period 1 $ $ - $ - $ - Consumers Balance at beginning of period $ $ $ $ Total gains (losses) offset through regulatory accounting - Purchases - - - Settlements Balance at end of period $ $ $ $ |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | In Millions September 30, 2015 December 31, 2014 Fair Value Fair Value Carrying Level Carrying Level Amount Total Amount Total CMS Energy, including Consumers Securities held to maturity $ $ $ - $ $ - $ $ $ - $ $ - Notes receivable 1 - - - - Long-term debt 2 - - Consumers Long-term debt 3 $ $ $ - $ $ $ $ $ - $ $ 1 Includes current portion of notes receivable of $136 million at September 30, 2015 and $ 138 million at December 31, 2014. 2 Includes current portion of long-term debt of $720 million at September 30, 2015 and $ 519 million at December 31, 2014. 3 Includes current portion of long- term debt of $261 million at September 30, 2015 and $ 124 million at December 31, 2014. |
Schedule Of Investment Securities | In Millions September 30, 2015 December 31, 2014 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 $ $ - $ $ $ $ - $ $ Held to maturity Debt securities - - - - Consumers Available for sale DB SERP Mutual funds $ $ - $ $ $ $ - $ $ CMS Energy common stock - - |
Consumers Energy Company [Member] | |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | In Millions September 30, 2015 December 31, 2014 Fair Value Fair Value Carrying Level Carrying Level Amount Total Amount Total CMS Energy, including Consumers Securities held to maturity $ $ $ - $ $ - $ $ $ - $ $ - Notes receivable 1 - - - - Long-term debt 2 - - Consumers Long-term debt 3 $ $ $ - $ $ $ $ $ - $ $ 1 Includes current portion of notes receivable of $136 million at September 30, 2015 and $ 138 million at December 31, 2014. 2 Includes current portion of long-term debt of $720 million at September 30, 2015 and $ 519 million at December 31, 2014. 3 Includes current portion of long- term debt of $261 million at September 30, 2015 and $ 124 million at December 31, 2014. |
Schedule Of Investment Securities | In Millions September 30, 2015 December 31, 2014 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 $ $ - $ $ $ $ - $ $ Held to maturity Debt securities - - - - Consumers Available for sale DB SERP Mutual funds $ $ - $ $ $ $ - $ $ CMS Energy common stock - - |
Notes Receivable (Tables)
Notes Receivable (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Receivable [Abstract] | |
Schedule Of Current And Non-Current Notes Receivable | In Millions September 30, 2015 December 31, 2014 CMS Energy Current EnerBank notes receivable, net of allowance for loan losses $ $ EnerBank notes receivable held for sale Other - Non-current EnerBank notes receivable, net of allowance for loan losses Total notes receivable $ $ |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule of Change in Asset Retirement Obligation Table | In Millions ARO ARO Liability Cash flow Liability Company and ARO Description 12/31/2014 Incurred Settled Accretion Revisions 9/30/2015 CMS Energy, including Consumers Gas treating plant and gas wells $ $ - $ - $ - $ - $ Consumers - Total CMS Energy $ $ - $ $ $ $ Consumers Coal ash disposal areas $ $ - $ - $ $ $ Asbestos abatement - - - Gas distribution cut, purge, and cap - - Wind parks - - - - Total Consumers $ $ - $ $ $ $ |
Consumers Energy Company [Member] | |
Schedule of Change in Asset Retirement Obligation Table | In Millions ARO ARO Liability Cash flow Liability Company and ARO Description 12/31/2014 Incurred Settled Accretion Revisions 9/30/2015 CMS Energy, including Consumers Gas treating plant and gas wells $ $ - $ - $ - $ - $ Consumers - Total CMS Energy $ $ - $ $ $ $ Consumers Coal ash disposal areas $ $ - $ - $ $ $ Asbestos abatement - - - Gas distribution cut, purge, and cap - - Wind parks - - - - Total Consumers $ $ - $ $ $ $ |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Net Benefit Costs | In Millions DB Pension Plan OPEB Plan Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ $ $ $ $ $ $ $ Interest expense Expected return on plan assets Amortization of: Net loss Prior service cost (credit) - - Net periodic cost (credit) $ $ $ $ $ $ $ $ Consumers Net periodic cost (credit) Service cost $ $ $ $ $ $ $ $ Interest expense Expected return on plan assets Amortization of: Net loss - Prior service cost (credit) - - Net periodic cost (credit) $ $ $ $ $ $ $ $ |
Consumers Energy Company [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Net Benefit Costs | In Millions DB Pension Plan OPEB Plan Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ $ $ $ $ $ $ $ Interest expense Expected return on plan assets Amortization of: Net loss Prior service cost (credit) - - Net periodic cost (credit) $ $ $ $ $ $ $ $ Consumers Net periodic cost (credit) Service cost $ $ $ $ $ $ $ $ Interest expense Expected return on plan assets Amortization of: Net loss - Prior service cost (credit) - - Net periodic cost (credit) $ $ $ $ $ $ $ $ |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule Of Effective Income Tax Rate Reconciliation | Nine Months Ended September 30 CMS Energy, including Consumers U.S. federal income tax rate % % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect Accelerated flow-through of regulatory tax benefits Other, net Effective tax rate % % Consumers U.S. federal income tax rate % % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect Accelerated flow-through of regulatory tax benefits Other, net Effective tax rate % % |
Consumers Energy Company [Member] | |
Schedule Of Effective Income Tax Rate Reconciliation | Nine Months Ended September 30 CMS Energy, including Consumers U.S. federal income tax rate % % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect Accelerated flow-through of regulatory tax benefits Other, net Effective tax rate % % Consumers U.S. federal income tax rate % % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect Accelerated flow-through of regulatory tax benefits Other, net Effective tax rate % % |
Earnings Per Share - CMS Ener31
Earnings Per Share - CMS Energy (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share - CMS Energy [Abstract] | |
Basic And Diluted EPS Computations | In Millions, Except Per Share Amounts Three Months Ended Nine Months Ended September 30 Income available to common stockholders Income from continuing operations $ $ $ $ Less income attributable to noncontrolling interests - - Income from continuing operations available to common stockholders – basic and diluted $ $ $ $ Average common shares outstanding Weighted-average shares – basic Add dilutive contingently convertible securities - - - Add dilutive non-vested stock awards Weighted-average shares – diluted Income from continuing operations per average common share available to common stockholders Basic $ $ $ $ Diluted |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule Of Financial Information By Reportable Segments | In Millions Three Months Ended Nine Months Ended September 30 CMS Energy, including Consumers Operating revenue Electric utility $ $ $ $ Gas utility Enterprises Other reconciling items Total operating revenue – CMS Energy $ $ $ $ Consumers Operating revenue Electric utility $ $ $ $ Gas utility Other reconciling items - - - Total operating revenue – Consumers $ $ $ $ CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ $ $ $ Gas utility Enterprises Other reconciling items Total net income available to common stockholders – CMS Energy $ $ $ $ Consumers Net income available to common stockholder Electric utility $ $ $ $ Gas utility Other reconciling items - Total net income available to common stockholder – Consumers $ $ $ $ In Millions September 30, 2015 December 31, 2014 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ $ Gas utility 1 Enterprises Other reconciling items Total plant, property, and equipment, gross – CMS Energy $ $ Consumers Plant, property, and equipment, gross Electric utility 1 $ $ Gas utility 1 Other reconciling items Total plant, property, and equipment, gross – Consumers $ $ CMS Energy, including Consumers Total assets Electric utility 1 $ $ Gas utility 1 Enterprises Other reconciling items Total assets – CMS Energy $ $ Consumers Total assets Electric utility 1 $ $ Gas utility 1 Other reconciling items Total assets – Consumers $ $ 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 September 30 CMS Energy, including Consumers Operating revenue Electric utility $ $ $ $ Gas utility Enterprises Other reconciling items Total operating revenue – CMS Energy $ $ $ $ Consumers Operating revenue Electric utility $ $ $ $ Gas utility Other reconciling items - - - Total operating revenue – Consumers $ $ $ $ CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ $ $ $ Gas utility Enterprises Other reconciling items Total net income available to common stockholders – CMS Energy $ $ $ $ Consumers Net income available to common stockholder Electric utility $ $ $ $ Gas utility Other reconciling items - Total net income available to common stockholder – Consumers $ $ $ $ In Millions September 30, 2015 December 31, 2014 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ $ Gas utility 1 Enterprises Other reconciling items Total plant, property, and equipment, gross – CMS Energy $ $ Consumers Plant, property, and equipment, gross Electric utility 1 $ $ Gas utility 1 Other reconciling items Total plant, property, and equipment, gross – Consumers $ $ CMS Energy, including Consumers Total assets Electric utility 1 $ $ Gas utility 1 Enterprises Other reconciling items Total assets – CMS Energy $ $ Consumers Total assets Electric utility 1 $ $ Gas utility 1 Other reconciling items Total assets – Consumers $ $ 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. |
New Accounting Standards (Detai
New Accounting Standards (Details) $ in Millions | Sep. 30, 2015USD ($) |
Unamortized debt issuance costs | $ 42 |
Consumers Energy Company [Member] | |
Unamortized debt issuance costs | $ 22 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2015 | Jun. 30, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | Jul. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Public Utilities, General Disclosures [Line Items] | ||||||||||
Operating Revenue | $ 1,486 | $ 1,430 | $ 4,947 | $ 5,421 | ||||||
Consumers Energy Company [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Operating Revenue | $ 1,417 | $ 1,359 | $ 4,726 | $ 5,128 | ||||||
Electric Rate Case [Member] | Consumers Energy Company [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Annual rate increase requested | $ 163 | |||||||||
Rate of return on equity requested | 10.70% | |||||||||
Annual rate increase self-implemented | $ 110 | |||||||||
Electric Rate Case [Member] | Consumers Energy Company [Member] | 2016 and 2017 Planned Investments [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Investment recovery mechanism requested | $ 163 | |||||||||
Electric Rate Case [Member] | Consumers Energy Company [Member] | 2018 Planned Investments [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Investment recovery mechanism requested | $ 78 | |||||||||
Gas Rate Case [Member] | Consumers Energy Company [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Annual rate increase requested | $ 88 | |||||||||
Annual rate increase authorized | $ 45 | |||||||||
Rate of return on equity authorized | 10.30% | |||||||||
Energy Optimization Plan Incentive [Member] | Consumers Energy Company [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Annual rate increase authorized | $ 17 | |||||||||
Operating Revenue | $ 17 |
Regulatory Matters (Components
Regulatory Matters (Components of the Increase in Revenue for Electric Rate Increase) (Details) - Electric Rate Case [Member] - Consumers Energy Company [Member] $ in Millions | 1 Months Ended |
Dec. 31, 2014USD ($) | |
Public Utilities, General Disclosures [Line Items] | |
Investment in rate base | $ 185 |
Addition of natural gas-fueled electric generation plant | 35 |
Operating and maintenance costs | 26 |
Cost of capital | 21 |
Working capital | 6 |
Cost-reduction initiatives | (80) |
Gross margin | (30) |
Annual rate increase requested | $ 163 |
Contingencies And Commitments36
Contingencies And Commitments (Contingencies And Commitments) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015USD ($)item | Sep. 30, 2015USD ($)itemlawsuit | Dec. 31, 2014USD ($) | |
Loss Contingencies [Line Items] | |||
Increase due to change in estimate | $ 68 | ||
Increase in ARO liability | |||
Regulatory assets | $ 1,870 | $ 1,870 | $ 1,956 |
Consumers Energy Company [Member] | |||
Loss Contingencies [Line Items] | |||
Increase due to change in estimate | $ 68 | ||
Increase in ARO liability | |||
Regulatory assets | 1,870 | $ 1,870 | $ 1,956 |
Bay Harbor [Member] | |||
Loss Contingencies [Line Items] | |||
Environmental remediation permit renewal term | 5 years | ||
Demand for payment by USEPA | 8 | $ 8 | |
Cumulative environmental charge | 247 | ||
Accrual for environmental loss contingencies | $ 59 | $ 59 | |
Discounted projected costs rate | 4.34% | 4.34% | |
Remaining undiscounted obligation amount | $ 75 | $ 75 | |
Accrual for environmental loss contingencies, inflation rate | 1.00% | 1.00% | |
CERCLA Liability [Member] | Consumers Energy Company [Member] | |||
Loss Contingencies [Line Items] | |||
Accrual for environmental loss contingencies | $ 2 | $ 2 | |
Remediation and other response activity costs, minimum | 2 | 2 | |
Remediation and other response activity costs. maximum | 8 | 8 | |
Manufactured Gas Plant [Member] | Consumers Energy Company [Member] | |||
Loss Contingencies [Line Items] | |||
Accrual for environmental loss contingencies | $ 112 | $ 112 | |
Discounted projected costs rate | 2.57% | 2.57% | |
Remaining undiscounted obligation amount | $ 126 | $ 126 | |
Number of former MGPs | item | 23 | 23 | |
Regulatory assets | $ 143 | $ 143 | |
Authorized recovery, collection period | 10 years | ||
Accrual for environmental loss contingencies, inflation rate | 2.50% | 2.50% | |
Coal Ash Disposal [Member] | Consumers Energy Company [Member] | |||
Loss Contingencies [Line Items] | |||
Increase due to change in estimate | $ 68 | ||
Electric Utility [Member] | NREPA [Member] | Consumers Energy Company [Member] | |||
Loss Contingencies [Line Items] | |||
Accrual for environmental loss contingencies | 5 | $ 5 | |
Remediation and other response activity costs, minimum | 5 | 5 | |
Remediation and other response activity costs. maximum | 6 | 6 | |
Gas Utility [Member] | NREPA [Member] | Consumers Energy Company [Member] | |||
Loss Contingencies [Line Items] | |||
Accrual for environmental loss contingencies | 1 | 1 | |
Remediation and other response activity costs. maximum | 3 | 3 | |
Equatorial Guinea Tax Claim [Member] | |||
Loss Contingencies [Line Items] | |||
Foreign government tax claim on sale | $ 142 | $ 142 | |
Gas Index Price Reporting [Member] | |||
Loss Contingencies [Line Items] | |||
Number of lawsuits | lawsuit | 5 |
Contingencies And Commitments37
Contingencies And Commitments (Expected Remediation Cost By Year) (Details) $ in Millions | Sep. 30, 2015USD ($) |
Manufactured Gas Plant [Member] | Consumers Energy Company [Member] | |
Site Contingency [Line Items] | |
Undiscounted amount due within one year | $ 6 |
Undiscounted amount due within two year | 12 |
Undiscounted amount due within third year | 13 |
Undiscounted amount due within fourth year | 11 |
Undiscounted amount due within five year | 14 |
Bay Harbor [Member] | |
Site Contingency [Line Items] | |
Undiscounted amount due within one year | 7 |
Undiscounted amount due within two year | 6 |
Undiscounted amount due within third year | 5 |
Undiscounted amount due within fourth year | 5 |
Undiscounted amount due within five year | $ 5 |
Contingencies And Commitments38
Contingencies And Commitments (Guarantees) (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2015USD ($) | ||
Consumers Energy Company [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantee Description | Indemnity obligations and other guarantees | |
Expiration Date | Various through August 2029 | |
Maximum obligation | $ 30 | [1] |
Carrying Amount | $ 1 | |
Guarantees [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantee Description | Guarantees | |
Expiration Date | Various through March 2021 | |
Maximum obligation | $ 51 | [1] |
Indemnity Obligations From Asset Sales And Other Agreements [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantee Description | Indemnity obligations from asset sales and other agreements | |
Expiration Date | Various through August 2029 | |
Maximum obligation | $ 143 | [2] |
Carrying Amount | $ 8 | |
[1] | In the normal course of business, CMS Energy and its subsidiaries have provided guarantees and other indemnities to counterparties to facilitate commercial transactions. If a counterparty incurs losses due to nonperformance or nonpayment under the contract terms, CMS Energy or one of its subsidiaries could be required to pay the counterparty. | |
[2] | 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 Capitalization39
Financings And Capitalization (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |||
Oct. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Financing And Capitalization [Line Items] | |||||
Retirement of long-term debt | $ 148 | $ 488 | |||
Limitation on payment of stock dividends | 3,900 | ||||
Common stock dividends from Consumers | 359 | ||||
Aggregate sales price of an equity offering program | 100 | ||||
Consumers Energy Company [Member] | |||||
Financing And Capitalization [Line Items] | |||||
Retirement of long-term debt | 48 | $ 208 | |||
Unrestricted retained earnings | $ 867 | ||||
Consumers Energy Company [Member] | Subsequent Event [Member] | |||||
Financing And Capitalization [Line Items] | |||||
Retirement of long-term debt | $ 50 | ||||
Interest rate | 2.60% | ||||
Consumers Energy Company [Member] | Commercial Paper [Member] | |||||
Financing And Capitalization [Line Items] | |||||
Weighted average annual interest rate | 0.52% | ||||
Short-term debt, authorized borrowings | $ 500 | ||||
Short-term borrowings outstanding | $ 68 | ||||
Short Term Secured Borrowing Accounts Receivable Sales Program [Member] | Consumers Energy Company [Member] | |||||
Financing And Capitalization [Line Items] | |||||
Amount of accounts receivable eligible for transfer | 250 | ||||
Short-term borrowings outstanding | 0 | ||||
Revolving Credit Facilities May 27, 2020 [Member] | CMS Energy [Member] | |||||
Financing And Capitalization [Line Items] | |||||
Amount of Facility | [1] | 550 | |||
Revolving Credit Facilities May 27, 2020 [Member] | Consumers Energy Company [Member] | |||||
Financing And Capitalization [Line Items] | |||||
Amount of Facility | [2] | $ 650 | |||
[1] | During the nine months ended September 30, 2015, CMS Energy's average borrowings totaled $40 million with a weighted-average interest rate of 1.43 percent. Obligations under this facility are secured by Consumers common stock. | ||||
[2] | Obligations under this facility are secured by FMBs of Consumers. |
Financings And Capitalization40
Financings And Capitalization (Revolving Credit Facilities) (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2015USD ($) | ||
Revolving Credit Facilities May 27, 2020 [Member] | CMS Energy [Member] | ||
Line of Credit Facility [Line Items] | ||
Expiration Date | May 27, 2020 | [1] |
Amount of Facility | $ 550 | [1] |
Amount Borrowed | [1] | |
Letters of Credit Outstanding | $ 3 | [1] |
Amount Available | 547 | [1] |
Average borrowings | $ 40 | |
Weighted average interest rate | 1.43% | |
Revolving Credit Facilities May 27, 2020 [Member] | Consumers Energy Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Expiration Date | May 27, 2020 | [2] |
Amount of Facility | $ 650 | [2] |
Amount Borrowed | [2] | |
Letters of Credit Outstanding | $ 9 | [2] |
Amount Available | $ 641 | [2] |
Revolving Credit Facilities May 9, 2018 [Member] | Consumers Energy Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Expiration Date | May 9, 2018 | [2] |
Amount of Facility | $ 30 | [2] |
Amount Borrowed | [2] | |
Letters of Credit Outstanding | $ 30 | [2] |
Amount Available | [2] | |
[1] | During the nine months ended September 30, 2015, CMS Energy's average borrowings totaled $40 million with a weighted-average interest rate of 1.43 percent. Obligations under this facility are secured by Consumers common stock. | |
[2] | Obligations under this facility are secured by FMBs of Consumers. |
Financings And Capitalization41
Financings And Capitalization (Issuance Of Common Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 2 Months Ended | 6 Months Ended |
Jul. 31, 2015 | May. 31, 2015 | Sep. 30, 2015 | |
Financings And Capitalization [Abstract] | |||
Number of Shares Issued | 301,429 | 587,181 | 888,610 |
Average Price Per Share | $ 33.10 | $ 34.10 | $ 33.76 |
Proceeds | $ 10 | $ 20 | $ 30 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilties Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | $ 52 | $ 110 |
Restricted cash equivalents | [1] | 52 | 38 |
Nonqualified deferred compensation plan assets | [1] | 9 | 8 |
Commodity contracts | [1] | 3 | 2 |
Total | [1] | 264 | 289 |
Nonqualified deferred compensation plan liabilities | [1] | 9 | 8 |
Commodity contracts | [1] | 1 | 1 |
Total | [1] | 10 | 9 |
Consumers Energy Company [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | 19 | |
Restricted cash equivalents | [1] | 52 | 38 |
Nonqualified deferred compensation plan assets | [1] | 6 | 6 |
Commodity contracts | [1] | 2 | 2 |
Total | [1] | 194 | 196 |
Nonqualified deferred compensation plan liabilities | [1] | 6 | 6 |
Commodity contracts | [1] | 1 | 1 |
Total | [1] | 7 | 7 |
DB SERP [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | 1 | 4 |
DB SERP [Member] | Consumers Energy Company [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | 1 | 3 |
DB SERP [Member] | Mutual Fund [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale - Fair Value | [1] | 147 | 127 |
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 | [1] | 105 | 90 |
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 | [1] | $ 28 | $ 38 |
[1] | All assets and liabilities were classified as Level 1 with the exception of some commodity contracts, which were classified as Level 2 or Level 3 and which were insignificant at September 30, 2015 and December 31, 2014. |
Fair Value Measurements (Asse43
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Significant Level 3 Inputs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Balance at beginning of period | $ 3 | $ 1 | $ 1 | $ 4 |
Total gains (losses) offset through regulatory accounting | 2 | 3 | (16) | |
Purchases | (1) | |||
Settlements | (1) | (2) | (2) | 14 |
Balance at end of period | 2 | 1 | 2 | 1 |
Unrealized gains (losses) included in earnings relating to assets and liabilities still held at end of period | (1) | |||
Consumers Energy Company [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Balance at beginning of period | 3 | 1 | 1 | 4 |
Total gains (losses) offset through regulatory accounting | 2 | 3 | (16) | |
Purchases | (1) | |||
Settlements | (1) | (2) | (2) | 14 |
Balance at end of period | $ 2 | $ 1 | $ 2 | $ 1 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Jan. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
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 CMS Energy common stock | $ 9 | ||
DB SERP [Member] | |||
Financial Instruments [Line Items] | |||
Company contributions | 25 | ||
DB SERP [Member] | Consumers Energy Company [Member] | |||
Financial Instruments [Line Items] | |||
Company contributions | $ 17 |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Current notes receivable | $ 119 | $ 98 | |
Current portion of long-term debt | 720 | 519 | |
Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities held to maturity - Fair Value | 12 | 11 | |
Long-term debt, Fair Value | [1] | 8,623 | 8,535 |
Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities held to maturity - Fair Value | 12 | 11 | |
Long-term debt, Fair Value | [1] | 9,229 | 9,285 |
Consumers Energy Company [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Current portion of long-term debt | 261 | 124 | |
Consumers Energy Company [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, Fair Value | [2] | 5,230 | 5,278 |
Consumers Energy Company [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, Fair Value | [2] | 5,613 | 5,749 |
EnerBank [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Current notes receivable | 136 | 138 | |
EnerBank [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes receivable, Fair Value | [3] | 1,077 | 938 |
EnerBank [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes receivable, Fair Value | [3] | $ 1,150 | $ 995 |
Fair Value, Inputs, Level 1 [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities held to maturity - Fair Value | |||
Long-term debt, Fair Value | [1] | ||
Fair Value, Inputs, Level 1 [Member] | Consumers Energy Company [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, Fair Value | [2] | ||
Fair Value, Inputs, Level 1 [Member] | EnerBank [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes receivable, Fair Value | [3] | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities held to maturity - Fair Value | $ 12 | $ 11 | |
Long-term debt, Fair Value | [1] | 8,211 | 8,252 |
Fair Value, Inputs, Level 2 [Member] | Consumers Energy Company [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, Fair Value | [2] | 4,595 | 4,716 |
Fair Value, Inputs, Level 3 [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, Fair Value | [1] | 1,018 | 1,033 |
Fair Value, Inputs, Level 3 [Member] | Consumers Energy Company [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, Fair Value | [2] | 1,018 | 1,033 |
Fair Value, Inputs, Level 3 [Member] | EnerBank [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes receivable, Fair Value | [3] | $ 1,150 | $ 995 |
[1] | Includes current portion of long-term debt of $720 million at September 30, 2015 and $519 million at December 31, 2014. | ||
[2] | Includes current portion of long-term debt of $261 million at September 30, 2015 and $124 million at December 31, 2014. | ||
[3] | Includes current portion of notes receivable of $136 million at September 30, 2015 and $138 million at December 31, 2014. |
Financial Instruments (Schedu46
Financial Instruments (Schedule Of Investment Securities) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Securities [Member] | ||
Investment Securities [Line Items] | ||
Held to maturity securities - Cost | $ 12 | $ 11 |
Held to maturity securities - Unrealized Losses | ||
Held to maturity securities - Fair Value | $ 12 | $ 11 |
CMS Energy Common Stock [Member] | Consumers Energy Company [Member] | ||
Investment Securities [Line Items] | ||
Available for sale - Cost | 4 | 5 |
Available for sale - Unrealized Gains | $ 24 | $ 33 |
Available for sale - Unrealized Losses | ||
Available for sale - Fair Value | $ 28 | $ 38 |
DB SERP [Member] | Mutual Fund [Member] | ||
Investment Securities [Line Items] | ||
Available for sale - Cost | 154 | 129 |
Available for sale - Unrealized Losses | 7 | 2 |
Available for sale - Fair Value | 147 | 127 |
DB SERP [Member] | Mutual Fund [Member] | Consumers Energy Company [Member] | ||
Investment Securities [Line Items] | ||
Available for sale - Cost | 109 | 92 |
Available for sale - Unrealized Losses | 4 | 2 |
Available for sale - Fair Value | $ 105 | $ 90 |
Notes Receivable (Narrative) (D
Notes Receivable (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Sale of notes receivable | $ 48 | |
Current notes receivable | 119 | $ 98 |
EnerBank notes receivable held for sale | 17 | 41 |
EnerBank [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Sale of notes receivable | 48 | |
Current notes receivable | 136 | 138 |
EnerBank notes receivable held for sale | 17 | 41 |
Delinquent loans | 6 | 5 |
Loans modified as troubled debt restructurings | $ 1 | $ 1 |
Notes Receivable (Schedule Of C
Notes Receivable (Schedule Of Current And Non-Current Notes Receivable) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current notes receivable | $ 119 | $ 98 |
EnerBank notes receivable held for sale | 17 | 41 |
Total notes receivable | 1,077 | 939 |
EnerBank [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current notes receivable | 136 | 138 |
EnerBank notes receivable held for sale | 17 | 41 |
Noncurrent notes receivable | 941 | 800 |
Receivables, Excluding Held For Sale [Member] | EnerBank [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current notes receivable | $ 119 | 97 |
Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current notes receivable | $ 1 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Asset Retirement Obligations [Line Items] | |
ARO Liability, at beginning of period | $ 340 |
Incurred | |
Settled | $ (3) |
Accretion | 14 |
Cash flow Revisions | 68 |
ARO Liability, end of period | 419 |
Consumers Energy Company [Member] | |
Asset Retirement Obligations [Line Items] | |
ARO Liability, at beginning of period | $ 339 |
Incurred | |
Settled | $ (3) |
Accretion | 14 |
Cash flow Revisions | 68 |
ARO Liability, end of period | 418 |
Close Gas Treating Plant and Gas Wells [Member] | |
Asset Retirement Obligations [Line Items] | |
ARO Liability, at beginning of period | $ 1 |
Incurred | |
ARO Liability, end of period | $ 1 |
Coal Ash Disposal Areas [Member] | Consumers Energy Company [Member] | |
Asset Retirement Obligations [Line Items] | |
ARO Liability, at beginning of period | $ 120 |
Incurred | |
Accretion | $ 4 |
Cash flow Revisions | 68 |
ARO Liability, end of period | 192 |
Asbestos Abatement [Member] | Consumers Energy Company [Member] | |
Asset Retirement Obligations [Line Items] | |
ARO Liability, at beginning of period | $ 51 |
Incurred | |
Accretion | $ 2 |
ARO Liability, end of period | 53 |
Gas Distribution Cut, Purge, Cap [Member] | Consumers Energy Company [Member] | |
Asset Retirement Obligations [Line Items] | |
ARO Liability, at beginning of period | $ 162 |
Incurred | |
Settled | $ (3) |
Accretion | 8 |
ARO Liability, end of period | 167 |
Wind Park [Member] | Consumers Energy Company [Member] | |
Asset Retirement Obligations [Line Items] | |
ARO Liability, at beginning of period | $ 6 |
Incurred | |
ARO Liability, end of period | $ 6 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | ||
Feb. 28, 2015 | Oct. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Postretirement benefits contributions | $ 35 | $ 5 | ||
Consumers Energy Company [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Postretirement benefits contributions | $ 33 | $ 3 | ||
Consumers Energy Company [Member] | OPEB [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Postretirement benefits contributions | $ 29 | $ 25 |
Retirement Benefits (Schedule O
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 13 | $ 10 | $ 37 | $ 30 |
Interest expense | 26 | 24 | 77 | 74 |
Expected return on plan assets | (35) | (33) | (104) | (101) |
Amortization of Net loss | 22 | 14 | 67 | 43 |
Amortization of Prior service cost (credit) | 1 | 1 | ||
Net periodic cost (credit) | 26 | 15 | 78 | 47 |
Pension Plan [Member] | Consumers Energy Company [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 12 | 10 | 36 | 30 |
Interest expense | 25 | 24 | 74 | 72 |
Expected return on plan assets | (34) | (33) | (101) | (99) |
Amortization of Net loss | 22 | 14 | 66 | 42 |
Amortization of Prior service cost (credit) | 1 | 1 | ||
Net periodic cost (credit) | 25 | 15 | 76 | 46 |
OPEB [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 7 | 5 | 19 | 15 |
Interest expense | 14 | 14 | 43 | 42 |
Expected return on plan assets | (23) | (22) | (68) | (66) |
Amortization of Net loss | 5 | 1 | 16 | 2 |
Amortization of Prior service cost (credit) | (10) | (10) | (31) | (31) |
Net periodic cost (credit) | (7) | (12) | (21) | (38) |
OPEB [Member] | Consumers Energy Company [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 7 | 5 | 19 | 15 |
Interest expense | 14 | 13 | 42 | 40 |
Expected return on plan assets | (22) | (20) | (65) | (62) |
Amortization of Net loss | 6 | 17 | 2 | |
Amortization of Prior service cost (credit) | (10) | (10) | (30) | (30) |
Net periodic cost (credit) | $ (5) | $ (12) | $ (17) | $ (35) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - Consumers Energy Company [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Benefits [Line Items] | ||
Reduction of income tax expense | $ 29 | $ 30 |
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 | |
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, 2015 | Sep. 30, 2014 | |
U.S. federal income tax rate | 35.00% | 35.00% |
State and local income taxes, net of federal effect | 4.80% | 4.90% |
Accelerated flow-through of regulatory tax benefits | (4.90%) | (5.30%) |
Other, net | (1.30%) | (0.70%) |
Effective tax rate | 33.60% | 33.90% |
Consumers Energy Company [Member] | ||
U.S. federal income tax rate | 35.00% | 35.00% |
State and local income taxes, net of federal effect | 4.80% | 4.90% |
Accelerated flow-through of regulatory tax benefits | (4.20%) | (4.30%) |
Other, net | (1.50%) | (0.70%) |
Effective tax rate | 34.10% | 34.90% |
Earnings Per Share - CMS Ener54
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share - CMS Energy [Abstract] | ||||
Income from continuing operations | $ 148 | $ 94 | $ 418 | $ 382 |
Less income attributable to noncontrolling interest | 1 | 1 | ||
Income from continuing operations available to common stockholders - basic and diluted | $ 148 | $ 94 | $ 417 | $ 381 |
Weighted average shares - basic | 276 | 274 | 275.4 | 269.4 |
Add dilutive contingently convertible securities | 4.1 | |||
Add dilutive non-vested stock awards | 0.9 | 0.7 | 0.9 | 0.7 |
Weighted average shares - diluted | 276.9 | 274.7 | 276.3 | 274.2 |
Basic | $ 0.53 | $ 0.34 | $ 1.51 | $ 1.41 |
Diluted | $ 0.53 | $ 0.34 | $ 1.51 | $ 1.39 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||
Operating Revenue | $ 1,486 | $ 1,430 | $ 4,947 | $ 5,421 | ||
Net Income Attributable to CMS Energy | 148 | 94 | 417 | 381 | ||
Plant, property, and equipment, gross | 18,547 | 18,547 | $ 17,721 | |||
Total Assets | 19,452 | 19,452 | 19,185 | |||
Consumers Energy Company [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenue | 1,417 | 1,359 | 4,726 | 5,128 | ||
Net Income Available to Common Stockholders | 160 | 119 | 458 | 448 | ||
Plant, property, and equipment, gross | 18,400 | 18,400 | 17,580 | |||
Total Assets | 17,977 | 17,977 | 17,847 | |||
Electric Utility [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenue | 1,233 | 1,153 | 3,273 | 3,428 | ||
Net Income Attributable to CMS Energy | 166 | 128 | 342 | 326 | ||
Plant, property, and equipment, gross | [1] | 12,803 | 12,803 | 12,230 | ||
Total Assets | [1] | 11,828 | 11,828 | 11,582 | ||
Electric Utility [Member] | Consumers Energy Company [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenue | 1,233 | 1,153 | 3,273 | 3,428 | ||
Net Income Available to Common Stockholders | 166 | 128 | 342 | 326 | ||
Plant, property, and equipment, gross | [1] | 12,803 | 12,803 | 12,230 | ||
Total Assets | [1] | 11,828 | 11,828 | 11,582 | ||
Gas Utility [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenue | 184 | 206 | 1,453 | 1,699 | ||
Net Income Attributable to CMS Energy | (7) | (9) | 115 | 121 | ||
Plant, property, and equipment, gross | [1] | 5,582 | 5,582 | 5,335 | ||
Total Assets | [1] | 5,546 | 5,546 | 5,391 | ||
Gas Utility [Member] | Consumers Energy Company [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenue | 184 | 206 | 1,453 | 1,699 | ||
Net Income Available to Common Stockholders | (7) | (9) | 115 | 121 | ||
Plant, property, and equipment, gross | [1] | 5,582 | 5,582 | 5,335 | ||
Total Assets | [1] | 5,546 | 5,546 | 5,391 | ||
Enterprises [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenue | 43 | 51 | 148 | 235 | ||
Net Income Attributable to CMS Energy | 3 | (7) | 10 | (3) | ||
Plant, property, and equipment, gross | 121 | 121 | 115 | |||
Total Assets | 267 | 267 | 231 | |||
Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenue | 26 | 20 | 73 | 59 | ||
Net Income Attributable to CMS Energy | (14) | $ (18) | (50) | (63) | ||
Plant, property, and equipment, gross | 41 | 41 | 41 | |||
Total Assets | 1,811 | 1,811 | 1,981 | |||
Other [Member] | Consumers Energy Company [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenue | 1 | |||||
Net Income Available to Common Stockholders | 1 | 1 | $ 1 | |||
Plant, property, and equipment, gross | 15 | 15 | 15 | |||
Total Assets | $ 603 | $ 603 | $ 874 | |||
[1] | Amounts include a portion of Consumers' other common assets attributable to both the electric and gas utility businesses. |