Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 11, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-9513 | |
Entity Registrant Name | CMS ENERGY CORPORATION | |
Entity Tax Identification Number | 38-2726431 | |
Entity Incorporation, State or Country Code | MI | |
Entity Address, Address Line One | One Energy Plaza | |
Entity Address, City or Town | Jackson | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 49201 | |
City Area Code | 517 | |
Local Phone Number | 788‑0550 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 290,129,103 | |
Entity Central Index Key | 0000811156 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Consumers Energy Company | ||
Document Information [Line Items] | ||
Entity File Number | 1-5611 | |
Entity Registrant Name | CONSUMERS ENERGY COMPANY | |
Entity Tax Identification Number | 38-0442310 | |
Entity Incorporation, State or Country Code | MI | |
Entity Address, Address Line One | One Energy Plaza | |
Entity Address, City or Town | Jackson | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 49201 | |
City Area Code | 517 | |
Local Phone Number | 788‑0550 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 84,108,789 | |
Entity Central Index Key | 0000201533 | |
CMS Energy Corporation Common Stock, $0.01 par value | ||
Document Information [Line Items] | ||
Title of 12(b) Security | CMS Energy Corporation Common Stock | |
Trading Symbol | CMS | |
Security Exchange Name | NYSE | |
CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078 | |
Trading Symbol | CMSA | |
Security Exchange Name | NYSE | |
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078 | |
Trading Symbol | CMSC | |
Security Exchange Name | NYSE | |
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 | |
Trading Symbol | CMSD | |
Security Exchange Name | NYSE | |
CMS Energy Corporation Depositary Shares, each representing a 1/1,000th interest in a share of 4.200% Cumulative Redeemable Perpetual Preferred Stock, Series C | ||
Document Information [Line Items] | ||
Title of 12(b) Security | CMS Energy Corporation Depositary Shares | |
Trading Symbol | CMS PRC | |
Security Exchange Name | NYSE | |
Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series | |
Trading Symbol | CMS-PB | |
Security Exchange Name | NYSE |
CMS Energy Corporation Consolid
CMS Energy Corporation Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Revenue | $ 2,374 | $ 2,013 |
Operating Expenses | ||
Fuel for electric generation | 167 | 138 |
Purchased power – related parties | 17 | 18 |
Maintenance and other operating expenses | 334 | 311 |
Depreciation and amortization | 345 | 338 |
General taxes | 132 | 122 |
Total operating expenses | 1,918 | 1,583 |
Operating Income | 456 | 430 |
Other Income (Expense) | ||
Interest income | 1 | 1 |
Allowance for equity funds used during construction | 2 | 1 |
Income from equity method investees | 0 | 2 |
Non-operating retirement benefits, net | 48 | 41 |
Other income | 1 | 1 |
Other expense | (4) | (2) |
Total other income | 48 | 44 |
Interest Charges | ||
Interest on long-term debt | 121 | 119 |
Interest expense – related parties | 3 | 3 |
Other interest expense | 1 | 3 |
Allowance for borrowed funds used during construction | (1) | (1) |
Total interest charges | 124 | 124 |
Income Before Income Taxes | 380 | 350 |
Income Tax Expense | 39 | 42 |
Income From Continuing Operations | 341 | 308 |
Income From Discontinued Operations, Net of Tax of $1 and $9 | 4 | 34 |
Net Income | 345 | 342 |
Loss Attributable to Noncontrolling Interests | (8) | (7) |
Net Income Attributable to CMS Energy | 353 | 349 |
Preferred Stock Dividends | 2 | 0 |
Net Income Available to Common Stockholders | $ 351 | $ 349 |
Basic Earnings Per Average Common Share | ||
Basic earnings per average common share, income from continuing operations per average common share available to common stockholders (in dollars per share) | $ 1.20 | $ 1.09 |
Basic earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) | 0.01 | 0.12 |
Basic earnings per average common share (in dollars per share) | 1.21 | 1.21 |
Diluted Earnings Per Average Common Share | ||
Diluted earnings per average common share, income from continuing operations per average common share available to common stockholders (in dollars per share) | 1.20 | 1.09 |
Diluted earnings per average common share, income from discontinued operations per average common share available to common stockholders (in dollars per share) | 0.01 | 0.12 |
Diluted earnings per average common share (in dollars per share) | $ 1.21 | $ 1.21 |
Purchased and interchange power | ||
Operating Expenses | ||
Cost of goods and services sold | $ 455 | $ 377 |
Cost of gas sold | ||
Operating Expenses | ||
Cost of goods and services sold | $ 468 | $ 279 |
CMS Energy Corporation Consol_2
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 345 | $ 342 |
Retirement Benefits Liability | ||
Net gain arising during the period | 2 | 0 |
Amortization of net actuarial loss, net of tax | 1 | 1 |
Derivatives | ||
Unrealized gain on derivative instruments, net of tax of $1 and $— | 2 | 1 |
Other Comprehensive Income | 5 | 2 |
Comprehensive Income | 350 | 344 |
Comprehensive Loss Attributable to Noncontrolling Interests | (8) | (7) |
Comprehensive Income Attributable to CMS Energy | $ 358 | $ 351 |
CMS Energy Corporation Consol_3
CMS Energy Corporation Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net gain (loss) arising during the period, tax | $ 1 | $ 0 |
Amortization of net actuarial loss, tax | 0 | 0 |
Unrealized gain (loss) on derivative instruments, tax | $ 1 | $ 0 |
CMS Energy Corporation Consol_4
CMS Energy Corporation Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Operating Activities | ||
Net Income | $ 345 | $ 342 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 345 | 338 |
Deferred income taxes and investment tax credits | 33 | 48 |
Gain from sale of EnerBank | (5) | 0 |
Other non‑cash operating activities and reconciling adjustments | (22) | (13) |
Changes in assets and liabilities | ||
Accounts receivable and accrued revenue | (121) | 29 |
Inventories | 213 | 168 |
Accounts payable and accrued rate refunds | (129) | (109) |
Other current assets and liabilities | 7 | (12) |
Other non‑current assets and liabilities | 41 | 41 |
Net cash provided by operating activities | 707 | 832 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under finance lease) | (520) | (436) |
Net proceeds from sale of EnerBank | 5 | 0 |
Net cash provided by discontinued operations | 0 | 178 |
Cost to retire property and other investing activities | (24) | (25) |
Net cash used in investing activities | (539) | (283) |
Cash Flows from Financing Activities | ||
Retirement of debt | (3) | (2) |
Issuance of common stock | 4 | 9 |
Payment of dividends on common and preferred stock | (136) | (126) |
Net cash used in discontinued operations | 0 | (73) |
Other financing costs | (35) | (18) |
Net cash used in financing activities | (170) | (210) |
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts | (2) | 339 |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 476 | 185 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 474 | 524 |
Non‑cash transactions | ||
Capital expenditures not paid | $ 128 | $ 87 |
CMS Energy Corporation Consol_5
CMS Energy Corporation Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 446 | $ 452 |
Restricted cash and cash equivalents | 28 | 24 |
Accounts receivable and accrued revenue | 1,042 | 931 |
Accounts receivable – related parties | 10 | 12 |
Inventories at average cost | ||
Gas in underground storage | 233 | 462 |
Materials and supplies | 174 | 168 |
Generating plant fuel stock | 47 | 37 |
Deferred property taxes | 287 | 356 |
Regulatory assets | 34 | 46 |
Prepayments and other current assets | 158 | 139 |
Total current assets | 2,459 | 2,627 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 30,199 | 29,893 |
Less accumulated depreciation and amortization | 8,543 | 8,502 |
Plant, property, and equipment, net | 21,656 | 21,391 |
Construction work in progress | 884 | 961 |
Total plant, property, and equipment | 22,540 | 22,352 |
Other Non‑current Assets | ||
Regulatory assets | 2,138 | 2,259 |
Accounts receivable | 30 | 30 |
Investments | 71 | 71 |
Other | 1,502 | 1,414 |
Total other non‑current assets | 3,741 | 3,774 |
Total Assets | 28,740 | 28,753 |
Current Liabilities | ||
Current portion of long-term debt, finance leases, and other financing | 382 | 382 |
Accounts payable | 687 | 875 |
Accounts payable – related parties | 8 | 11 |
Accrued rate refunds | 0 | 12 |
Accrued interest | 112 | 107 |
Accrued taxes | 389 | 515 |
Regulatory liabilities | 92 | 146 |
Other current liabilities | 144 | 156 |
Total current liabilities | 1,814 | 2,204 |
Non‑current Liabilities | ||
Long-term debt | 12,045 | 12,046 |
Non-current portion of finance leases and other financing | 46 | 46 |
Regulatory liabilities | 3,874 | 3,802 |
Postretirement benefits | 140 | 142 |
Asset retirement obligations | 619 | 628 |
Deferred investment tax credit | 111 | 112 |
Deferred income taxes | 2,315 | 2,210 |
Other non‑current liabilities | 371 | 375 |
Total non‑current liabilities | 19,521 | 19,361 |
Commitments and Contingencies | ||
Common stockholders’ equity | ||
Common stock | 3 | 3 |
Other paid-in capital | 5,406 | 5,406 |
Accumulated other comprehensive loss | (54) | (59) |
Retained earnings | 1,275 | 1,057 |
Total common stockholders’ equity | 6,630 | 6,407 |
Cumulative preferred stock | 224 | 224 |
Total stockholders’ equity | 6,854 | 6,631 |
Noncontrolling interests | 551 | 557 |
Total equity | 7,405 | 7,188 |
Total Liabilities and Equity | $ 28,740 | $ 28,753 |
CMS Energy Corporation Consol_6
CMS Energy Corporation Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts receivable and accrued revenue, allowance | $ 20 | $ 20 |
Common stock authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock outstanding (in shares) | 290,100,000 | 289,800,000 |
Series C Preferred Stock Depositary Shares | ||
Preferred stock authorized (in shares) | 9,200,000 | 9,200,000 |
Preferred stock outstanding (in shares) | 9,200,000 | 9,200,000 |
CMS Energy Corporation Consol_7
CMS Energy Corporation Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Other Paid-in Capital | Accumulated Other Comprehensive Loss | Retirement benefits liability | Derivative instruments | Retained Earnings | Cumulative Preferred Stock | Noncontrolling Interests |
Total Equity at Beginning of Period at Dec. 31, 2020 | $ 6,077 | $ 3 | $ 5,365 | $ (86) | $ (80) | $ (6) | $ 214 | $ 581 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock issued | 15 | ||||||||
Common stock repurchased | (9) | ||||||||
Net gain arising during the period | 0 | 0 | |||||||
Amortization of net actuarial loss | 1 | 1 | |||||||
Unrealized gain on derivative instruments | 1 | 1 | |||||||
Contribution from noncontrolling interest | 1 | ||||||||
Net Income | 342 | 349 | (7) | ||||||
Dividends declared on common stock | (126) | ||||||||
Dividends declared on preferred stock | 0 | ||||||||
Total Equity at End of Period at Mar. 31, 2021 | $ 6,302 | 3 | 5,371 | (84) | (79) | (5) | 437 | $ 0 | 575 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Dividends declared per common share (in dollars per share) | $ 0.4350 | ||||||||
Dividends declared per preferred stock Series C depositary share (in dollars per share) | $ 0 | ||||||||
Total Equity at Beginning of Period at Dec. 31, 2021 | $ 7,188 | 3 | 5,406 | (59) | (56) | (3) | 1,057 | 557 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock issued | 10 | ||||||||
Common stock repurchased | (10) | ||||||||
Net gain arising during the period | 2 | 2 | |||||||
Amortization of net actuarial loss | 1 | 1 | |||||||
Unrealized gain on derivative instruments | 2 | 2 | |||||||
Contribution from noncontrolling interest | 2 | ||||||||
Net Income | 345 | 353 | (8) | ||||||
Dividends declared on common stock | (133) | ||||||||
Dividends declared on preferred stock | (2) | ||||||||
Total Equity at End of Period at Mar. 31, 2022 | $ 7,405 | $ 3 | $ 5,406 | $ (54) | $ (53) | $ (1) | $ 1,275 | $ 224 | $ 551 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Dividends declared per common share (in dollars per share) | $ 0.4600 | ||||||||
Dividends declared per preferred stock Series C depositary share (in dollars per share) | $ 0.2625 |
Consumers Energy Company Consol
Consumers Energy Company Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Revenue | $ 2,374 | $ 2,013 |
Operating Expenses | ||
Operating Income | 456 | 430 |
Other Income (Expense) | ||
Interest income | 1 | 1 |
Allowance for equity funds used during construction | 2 | 1 |
Non-operating retirement benefits, net | 48 | 41 |
Other income | 1 | 1 |
Other expense | (4) | (2) |
Total other income | 48 | 44 |
Interest Charges | ||
Interest on long-term debt | 121 | 119 |
Interest expense – related parties | 3 | 3 |
Other interest expense | 1 | 3 |
Allowance for borrowed funds used during construction | (1) | (1) |
Total interest charges | 124 | 124 |
Income Before Income Taxes | 380 | 350 |
Income Tax Expense | 39 | 42 |
Net Income Available to Common Stockholders | 351 | 349 |
Consumers Energy Company | ||
Operating Revenue | 2,283 | 1,937 |
Operating Expenses | ||
Fuel for electric generation | 124 | 106 |
Purchased and interchange power | 437 | 367 |
Purchased power – related parties | 17 | 18 |
Cost of gas sold | 465 | 278 |
Maintenance and other operating expenses | 313 | 292 |
Depreciation and amortization | 336 | 329 |
General taxes | 129 | 118 |
Total operating expenses | 1,821 | 1,508 |
Operating Income | 462 | 429 |
Other Income (Expense) | ||
Interest income | 1 | 1 |
Interest and dividend income – related parties | 1 | 1 |
Allowance for equity funds used during construction | 2 | 1 |
Non-operating retirement benefits, net | 45 | 38 |
Other income | 0 | 1 |
Other expense | (3) | (2) |
Total other income | 46 | 40 |
Interest Charges | ||
Interest on long-term debt | 75 | 73 |
Interest expense – related parties | 3 | 3 |
Other interest expense | 1 | 2 |
Allowance for borrowed funds used during construction | (1) | (1) |
Total interest charges | 78 | 77 |
Income Before Income Taxes | 430 | 392 |
Income Tax Expense | 47 | 56 |
Net Income Available to Common Stockholders | $ 383 | $ 336 |
Consumers Energy Company Cons_2
Consumers Energy Company Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Income | $ 345 | $ 342 |
Retirement Benefits Liability | ||
Amortization of net actuarial loss, net of tax | 1 | 1 |
Other Comprehensive Income | 5 | 2 |
Comprehensive Income | 350 | 344 |
Consumers Energy Company | ||
Net Income | 383 | 336 |
Retirement Benefits Liability | ||
Amortization of net actuarial loss, net of tax | 1 | 0 |
Other Comprehensive Income | 1 | 0 |
Comprehensive Income | $ 384 | $ 336 |
Consumers Energy Company Cons_3
Consumers Energy Company Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Amortization of net actuarial loss, tax | $ 0 | $ 0 |
Consumers Energy Company | ||
Amortization of net actuarial loss, tax | $ 0 | $ 0 |
Consumers Energy Company Cons_4
Consumers Energy Company Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Operating Activities | ||
Net Income | $ 345 | $ 342 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Deferred income taxes and investment tax credits | 33 | 48 |
Other non‑cash operating activities and reconciling adjustments | (22) | (13) |
Changes in assets and liabilities | ||
Accounts receivable and accrued revenue | (121) | 29 |
Inventories | 213 | 168 |
Accounts payable and accrued rate refunds | (129) | (109) |
Other current assets and liabilities | 7 | (12) |
Other non‑current assets and liabilities | 41 | 41 |
Net cash provided by operating activities | 707 | 832 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under finance lease) | (520) | (436) |
Cost to retire property and other investing activities | (24) | (25) |
Net cash used in investing activities | (539) | (283) |
Cash Flows from Financing Activities | ||
Payment of dividends on common and preferred stock | (136) | (126) |
Other financing costs | (35) | (18) |
Net cash used in financing activities | (170) | (210) |
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts | (2) | 339 |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 476 | 185 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 474 | 524 |
Non‑cash transactions | ||
Capital expenditures not paid | 128 | 87 |
Consumers Energy Company | ||
Cash Flows from Operating Activities | ||
Net Income | 383 | 336 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 336 | 329 |
Deferred income taxes and investment tax credits | 47 | 51 |
Other non‑cash operating activities and reconciling adjustments | (21) | (10) |
Changes in assets and liabilities | ||
Accounts receivable and accrued revenue | (118) | 39 |
Inventories | 210 | 168 |
Accounts payable and accrued rate refunds | (128) | (99) |
Other current assets and liabilities | 0 | (12) |
Other non‑current assets and liabilities | 36 | 39 |
Net cash provided by operating activities | 745 | 841 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under finance lease) | (506) | (433) |
Cost to retire property and other investing activities | (23) | (25) |
Net cash used in investing activities | (529) | (458) |
Cash Flows from Financing Activities | ||
Decrease in notes payable – related parties | (392) | (250) |
Stockholder contribution | 450 | 150 |
Payment of dividends on common and preferred stock | (275) | (276) |
Other financing costs | (5) | (8) |
Net cash used in financing activities | (222) | (384) |
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts | (6) | (1) |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 44 | 35 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 38 | 34 |
Non‑cash transactions | ||
Capital expenditures not paid | $ 122 | $ 84 |
Consumers Energy Company Cons_5
Consumers Energy Company Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 446 | $ 452 |
Restricted cash and cash equivalents | 28 | 24 |
Accounts receivable and accrued revenue | 1,042 | 931 |
Accounts receivable – related parties | 10 | 12 |
Inventories at average cost | ||
Gas in underground storage | 233 | 462 |
Materials and supplies | 174 | 168 |
Generating plant fuel stock | 47 | 37 |
Deferred property taxes | 287 | 356 |
Regulatory assets | 34 | 46 |
Prepayments and other current assets | 158 | 139 |
Total current assets | 2,459 | 2,627 |
Other Non‑current Assets | ||
Regulatory assets | 2,138 | 2,259 |
Accounts receivable | 30 | 30 |
Other | 1,502 | 1,414 |
Total other non‑current assets | 3,741 | 3,774 |
Total Assets | 28,740 | 28,753 |
Current Liabilities | ||
Current portion of long-term debt, finance leases, and other financing | 382 | 382 |
Accounts payable | 687 | 875 |
Accounts payable – related parties | 8 | 11 |
Accrued rate refunds | 0 | 12 |
Accrued interest | 112 | 107 |
Accrued taxes | 389 | 515 |
Regulatory liabilities | 92 | 146 |
Other current liabilities | 144 | 156 |
Total current liabilities | 1,814 | 2,204 |
Non‑current Liabilities | ||
Long-term debt | 12,045 | 12,046 |
Non-current portion of finance leases and other financing | 46 | 46 |
Regulatory liabilities | 3,874 | 3,802 |
Postretirement benefits | 140 | 142 |
Asset retirement obligations | 619 | 628 |
Deferred investment tax credit | 111 | 112 |
Deferred income taxes | 2,315 | 2,210 |
Other non‑current liabilities | 371 | 375 |
Total non‑current liabilities | 19,521 | 19,361 |
Commitments and Contingencies | ||
Common stockholders’ equity | ||
Common stock | 3 | 3 |
Other paid-in capital | 5,406 | 5,406 |
Accumulated other comprehensive loss | (54) | (59) |
Retained earnings | 1,275 | 1,057 |
Total common stockholders’ equity | 6,630 | 6,407 |
Cumulative preferred stock | 224 | 224 |
Total stockholders’ equity | 6,854 | 6,631 |
Total Liabilities and Equity | 28,740 | 28,753 |
Consumers Energy Company | ||
Current Assets | ||
Cash and cash equivalents | 12 | 22 |
Restricted cash and cash equivalents | 26 | 22 |
Accounts receivable and accrued revenue | 1,011 | 905 |
Accounts receivable – related parties | 8 | 9 |
Inventories at average cost | ||
Gas in underground storage | 233 | 462 |
Materials and supplies | 169 | 163 |
Generating plant fuel stock | 46 | 33 |
Deferred property taxes | 287 | 356 |
Regulatory assets | 34 | 46 |
Prepayments and other current assets | 121 | 103 |
Total current assets | 1,947 | 2,121 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 29,076 | 28,771 |
Less accumulated depreciation and amortization | 8,403 | 8,371 |
Plant, property, and equipment, net | 20,673 | 20,400 |
Construction work in progress | 829 | 915 |
Total plant, property, and equipment | 21,502 | 21,315 |
Other Non‑current Assets | ||
Regulatory assets | 2,138 | 2,259 |
Accounts receivable | 36 | 36 |
Accounts and notes receivable – related parties | 101 | 102 |
Other | 1,390 | 1,307 |
Total other non‑current assets | 3,665 | 3,704 |
Total Assets | 27,114 | 27,140 |
Current Liabilities | ||
Current portion of long-term debt, finance leases, and other financing | 374 | 374 |
Notes payable – related parties | 0 | 392 |
Accounts payable | 647 | 835 |
Accounts payable – related parties | 13 | 16 |
Accrued rate refunds | 0 | 12 |
Accrued interest | 80 | 75 |
Accrued taxes | 396 | 529 |
Regulatory liabilities | 92 | 146 |
Other current liabilities | 122 | 109 |
Total current liabilities | 1,724 | 2,488 |
Non‑current Liabilities | ||
Long-term debt | 8,051 | 8,050 |
Non-current portion of finance leases and other financing | 46 | 46 |
Regulatory liabilities | 3,874 | 3,802 |
Postretirement benefits | 103 | 104 |
Asset retirement obligations | 595 | 605 |
Deferred investment tax credit | 111 | 112 |
Deferred income taxes | 2,458 | 2,340 |
Other non‑current liabilities | 314 | 314 |
Total non‑current liabilities | 15,552 | 15,373 |
Commitments and Contingencies | ||
Common stockholders’ equity | ||
Common stock | 841 | 841 |
Other paid-in capital | 7,049 | 6,599 |
Accumulated other comprehensive loss | (31) | (32) |
Retained earnings | 1,942 | 1,834 |
Total common stockholders’ equity | 9,801 | 9,242 |
Cumulative preferred stock | 37 | 37 |
Total stockholders’ equity | 9,838 | 9,279 |
Total Liabilities and Equity | $ 27,114 | $ 27,140 |
Consumers Energy Company Cons_6
Consumers Energy Company Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts receivable and accrued revenue, allowance | $ 20 | $ 20 |
Common stock authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock outstanding (in shares) | 290,100,000 | 289,800,000 |
Consumers Energy Company | ||
Accounts receivable and accrued revenue, allowance | $ 20 | $ 20 |
Common stock authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock outstanding (in shares) | 84,100,000 | 84,100,000 |
Preferred stock authorized (in shares) | 7,500,000 | 7,500,000 |
Preferred stock outstanding (in shares) | 400,000 | 400,000 |
Consumers Energy Company Cons_7
Consumers Energy Company Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Other Paid-in Capital | Accumulated Other Comprehensive Loss | Retirement benefits liability | Retained Earnings | Cumulative Preferred Stock | Consumers Energy Company | Consumers Energy CompanyCommon Stock | Consumers Energy CompanyOther Paid-in Capital | Consumers Energy CompanyAccumulated Other Comprehensive Loss | Consumers Energy CompanyRetirement benefits liability | Consumers Energy CompanyRetained Earnings | Consumers Energy CompanyCumulative Preferred Stock |
Total Equity at Beginning of Period at Dec. 31, 2020 | $ 6,077 | $ 3 | $ 5,365 | $ (86) | $ (80) | $ 214 | $ 8,556 | $ 841 | $ 6,024 | $ (36) | $ 1,690 | $ 37 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Stockholder contribution | 150 | |||||||||||||
Amortization of net actuarial loss | 1 | 1 | 0 | 0 | ||||||||||
Net Income | 342 | 349 | 336 | 336 | ||||||||||
Dividends declared on common stock | (126) | (276) | ||||||||||||
Total Equity at End of Period at Mar. 31, 2021 | 6,302 | 3 | 5,371 | (84) | (79) | 437 | $ 0 | 8,766 | 841 | 6,174 | $ (36) | 1,750 | 37 | |
Total Equity at Beginning of Period at Dec. 31, 2021 | 7,188 | 3 | 5,406 | (59) | (56) | 1,057 | 9,279 | 841 | 6,599 | (32) | 1,834 | 37 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Stockholder contribution | 450 | |||||||||||||
Amortization of net actuarial loss | 1 | 1 | 1 | $ 1 | ||||||||||
Net Income | 345 | 353 | 383 | 383 | ||||||||||
Dividends declared on common stock | (133) | (275) | ||||||||||||
Total Equity at End of Period at Mar. 31, 2022 | $ 7,405 | $ 3 | $ 5,406 | $ (54) | $ (53) | $ 1,275 | $ 224 | $ 9,838 | $ 841 | $ 7,049 | $ (31) | $ 1,942 | $ 37 |
CMS Energy Corporation Consol_8
CMS Energy Corporation Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Tax effect of discontinued operations | $ 1 | $ 9 |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2022 | |
Public Utilities, General Disclosures [Line Items] | |
Regulatory Matters | Regulatory Matters Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, the Residential Customer Group, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. There are multiple appeals pending that involve various issues concerning cost recovery from customers, the MPSC’s authority to approve voluntary revenue refunds, and other matters. Consumers is unable to predict the outcome of these appeals. General Rate Case Proceedings: In Consumers’ recent electric and gas rate proceedings, the MPSC and the MPSC Staff have recommended that Consumers be disallowed recovery of certain categories of capital expenditures. In December 2021, the MPSC issued a final order in Consumers’ 2021 general electric rate case, disallowing cost recovery for fleet assets and certain other categories of recently completed capital expenditures incurred by Consumers. As a result, Consumers impaired a portion of these capital expenditures in 2021. For other categories of capital expenditures, the MPSC ordered Consumers to, and Consumers believes it can, provide additional cost/benefit analysis and other information to support cost recovery. Additionally, in Consumers’ pending gas rate case, the MPSC Staff has recommended disallowance of cost recovery for similar capital expenditures. Consumers has incurred approximately $20 million related to these electric and gas programs as of March 31, 2022 and, for certain ongoing projects, expects to incur additional capital expenditures during 2022 and beyond. While Consumers has provided the additional analysis and information requested by the MPSC to provide evidence of the prudency of such capital expenditures in its pending electric and gas rate case proceedings, it is reasonably possible that the MPSC will disallow some or all of these capital expenditures. A material disallowance of incurred capital costs could negatively affect CMS Energy’s and Consumers’ future results of operations. Consumers expects a final order in its pending gas rate case by October 2022 and in its pending electric rate case by March 2023. Consumers cannot predict the outcome of these proceedings. In January 2022, Consumers filed a petition for rehearing that, among other things, requested that the MPSC reconsider its disallowance in the 2021 electric rate case of $11 million in capital expenditures for which the MPSC had already approved recovery in a previous rate order. In March 2022, the MPSC approved Consumers’ rehearing petition in full and authorized that the $11 million of capital expenditures be included in rate base, which resulted an additional annual rate increase of $5 million prospectively. |
Consumers Energy Company | |
Public Utilities, General Disclosures [Line Items] | |
Regulatory Matters | Regulatory Matters Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, the Residential Customer Group, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. There are multiple appeals pending that involve various issues concerning cost recovery from customers, the MPSC’s authority to approve voluntary revenue refunds, and other matters. Consumers is unable to predict the outcome of these appeals. General Rate Case Proceedings: In Consumers’ recent electric and gas rate proceedings, the MPSC and the MPSC Staff have recommended that Consumers be disallowed recovery of certain categories of capital expenditures. In December 2021, the MPSC issued a final order in Consumers’ 2021 general electric rate case, disallowing cost recovery for fleet assets and certain other categories of recently completed capital expenditures incurred by Consumers. As a result, Consumers impaired a portion of these capital expenditures in 2021. For other categories of capital expenditures, the MPSC ordered Consumers to, and Consumers believes it can, provide additional cost/benefit analysis and other information to support cost recovery. Additionally, in Consumers’ pending gas rate case, the MPSC Staff has recommended disallowance of cost recovery for similar capital expenditures. Consumers has incurred approximately $20 million related to these electric and gas programs as of March 31, 2022 and, for certain ongoing projects, expects to incur additional capital expenditures during 2022 and beyond. While Consumers has provided the additional analysis and information requested by the MPSC to provide evidence of the prudency of such capital expenditures in its pending electric and gas rate case proceedings, it is reasonably possible that the MPSC will disallow some or all of these capital expenditures. A material disallowance of incurred capital costs could negatively affect CMS Energy’s and Consumers’ future results of operations. Consumers expects a final order in its pending gas rate case by October 2022 and in its pending electric rate case by March 2023. Consumers cannot predict the outcome of these proceedings. In January 2022, Consumers filed a petition for rehearing that, among other things, requested that the MPSC reconsider its disallowance in the 2021 electric rate case of $11 million in capital expenditures for which the MPSC had already approved recovery in a previous rate order. In March 2022, the MPSC approved Consumers’ rehearing petition in full and authorized that the $11 million of capital expenditures be included in rate base, which resulted an additional annual rate increase of $5 million prospectively. |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2022 | |
Other Commitments [Line Items] | |
Contingencies and Commitments | Contingencies and Commitments CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures 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 Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which was renewed in January 2022 and is valid through 2025. At March 31, 2022, CMS Energy had a recorded liability of $45 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $56 million. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2022 and in each of the next five years: In Millions 2022 2023 2024 2025 2026 2027 CMS Energy Long-term leachate disposal and operating and maintenance costs $ 3 $ 4 $ 4 $ 4 $ 4 $ 4 CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. Consumers Electric Utility Contingencies Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $2 million and $4 million. At March 31, 2022, Consumers had a recorded liability of $2 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount. Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA 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 $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At March 31, 2022, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount. The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability. Ludington 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, but cannot predict the financial impact or outcome. Electric Lineworker Arbitration: In February 2021, the Utility Workers Union of America, AFL-CIO requested that Consumers conduct wage reevaluation of various electric lineworker positions. When the union and Consumers did not reach agreement on the appropriate wage levels, the union initiated arbitration proceedings. Arbitration hearings began in October 2021, but were postponed and resumed in January 2022. These hearings are expected to continue through 2022. This arbitration involves numerous and complex disputed factors. Presently, an estimate of the possible loss or range of loss cannot be made; any estimate of liability would be highly speculative. An unfavorable outcome could affect CMS Energy’s and Consumers’ financial condition, results of operation, or liquidity. Consumers Gas Utility Contingencies Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. At March 31, 2022, Consumers had a recorded liability of $57 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 $61 million. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2022 and in each of the next five years: In Millions 2022 2023 2024 2025 2026 2027 Consumers Remediation and other response activity costs $ 3 $ 9 $ 24 $ 11 $ 1 $ 1 Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability. Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten-year period. At March 31, 2022, Consumers had a regulatory asset of $109 million related to the MGP sites. Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million. At March 31, 2022, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount. Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity. In September 2020, the MPSC disallowed the recovery of $7 million in incremental gas purchases related to the fire. In January 2021, the MPSC denied Consumers’ petition for a rehearing challenging this disallowance. In February 2021, Consumers filed an appeal of the MPSC’s denial with the Michigan Court of Appeals. Consumers could also be subject to disallowances of costs associated with the repair and modification of the Ray Compressor Station. In December 2021, Consumers filed a gas rate case with the MPSC that includes a request for recovery of the capital expenditures incurred to restore and modify the compressor station. In testimony filed in April 2022, the MPSC Staff recommended disallowance of cost recovery of such capital expenditures. Consumers incurred capital expenditures of $17 million during 2020 and 2021 to restore and modify the compressor station. During the three months ended March 31, 2022, Consumers received an insurance recovery of $13 million related to the compressor station. Consumers had recognized the insurance recovery during 2021, recording $6 million as a reduction to plant, property, and equipment, $3 million as a reduction of maintenance and other operating expenses, and $4 million as operating revenue, which represented recovery of incremental gas purchases related to the fire. At this time, Consumers cannot predict the outcome of these matters or other gas-related incidents and a reasonable estimate of a total loss cannot be made, but they could have a material adverse effect on CMS Energy’s and Consumers’ results of operations, financial condition, or liquidity, and could subject Consumers’ gas utility to increased regulatory scrutiny. Guarantees Presented in the following table are CMS Energy’s and Consumers’ guarantees at March 31, 2022: In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from purchase of VIE 1 September 2020 indefinite $ 305 $ — Indemnity obligations from stock and asset sale agreements 2 various indefinite 225 4 Guarantee 3 July 2011 indefinite 30 — Consumers Guarantee 3 July 2011 indefinite $ 30 $ — 1 In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities. 2 These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 13, Exit Activities and Discontinued Operations . CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. 3 This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. At March 31, 2022, the carrying value of these indemnity obligations was $1 million. 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 In addition to the matters disclosed in this Note; Note 1, Regulatory Matters; and Note 13, Exit Activities and Discontinued Operations, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity. |
Consumers Energy Company | |
Other Commitments [Line Items] | |
Contingencies and Commitments | Contingencies and Commitments CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures 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 Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit, which was renewed in January 2022 and is valid through 2025. At March 31, 2022, CMS Energy had a recorded liability of $45 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $56 million. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2022 and in each of the next five years: In Millions 2022 2023 2024 2025 2026 2027 CMS Energy Long-term leachate disposal and operating and maintenance costs $ 3 $ 4 $ 4 $ 4 $ 4 $ 4 CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. Consumers Electric Utility Contingencies Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $2 million and $4 million. At March 31, 2022, Consumers had a recorded liability of $2 million, the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount. Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA 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 $3 million and $8 million. Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At March 31, 2022, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount. The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability. Ludington 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, but cannot predict the financial impact or outcome. Electric Lineworker Arbitration: In February 2021, the Utility Workers Union of America, AFL-CIO requested that Consumers conduct wage reevaluation of various electric lineworker positions. When the union and Consumers did not reach agreement on the appropriate wage levels, the union initiated arbitration proceedings. Arbitration hearings began in October 2021, but were postponed and resumed in January 2022. These hearings are expected to continue through 2022. This arbitration involves numerous and complex disputed factors. Presently, an estimate of the possible loss or range of loss cannot be made; any estimate of liability would be highly speculative. An unfavorable outcome could affect CMS Energy’s and Consumers’ financial condition, results of operation, or liquidity. Consumers Gas Utility Contingencies Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. At March 31, 2022, Consumers had a recorded liability of $57 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 $61 million. Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2022 and in each of the next five years: In Millions 2022 2023 2024 2025 2026 2027 Consumers Remediation and other response activity costs $ 3 $ 9 $ 24 $ 11 $ 1 $ 1 Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability. Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten-year period. At March 31, 2022, Consumers had a regulatory asset of $109 million related to the MGP sites. Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million. At March 31, 2022, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount. Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity. In September 2020, the MPSC disallowed the recovery of $7 million in incremental gas purchases related to the fire. In January 2021, the MPSC denied Consumers’ petition for a rehearing challenging this disallowance. In February 2021, Consumers filed an appeal of the MPSC’s denial with the Michigan Court of Appeals. Consumers could also be subject to disallowances of costs associated with the repair and modification of the Ray Compressor Station. In December 2021, Consumers filed a gas rate case with the MPSC that includes a request for recovery of the capital expenditures incurred to restore and modify the compressor station. In testimony filed in April 2022, the MPSC Staff recommended disallowance of cost recovery of such capital expenditures. Consumers incurred capital expenditures of $17 million during 2020 and 2021 to restore and modify the compressor station. During the three months ended March 31, 2022, Consumers received an insurance recovery of $13 million related to the compressor station. Consumers had recognized the insurance recovery during 2021, recording $6 million as a reduction to plant, property, and equipment, $3 million as a reduction of maintenance and other operating expenses, and $4 million as operating revenue, which represented recovery of incremental gas purchases related to the fire. At this time, Consumers cannot predict the outcome of these matters or other gas-related incidents and a reasonable estimate of a total loss cannot be made, but they could have a material adverse effect on CMS Energy’s and Consumers’ results of operations, financial condition, or liquidity, and could subject Consumers’ gas utility to increased regulatory scrutiny. Guarantees Presented in the following table are CMS Energy’s and Consumers’ guarantees at March 31, 2022: In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from purchase of VIE 1 September 2020 indefinite $ 305 $ — Indemnity obligations from stock and asset sale agreements 2 various indefinite 225 4 Guarantee 3 July 2011 indefinite 30 — Consumers Guarantee 3 July 2011 indefinite $ 30 $ — 1 In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities. 2 These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 13, Exit Activities and Discontinued Operations . CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. 3 This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. At March 31, 2022, the carrying value of these indemnity obligations was $1 million. 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 In addition to the matters disclosed in this Note; Note 1, Regulatory Matters; and Note 13, Exit Activities and Discontinued Operations, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity. |
Financings and Capitalization
Financings and Capitalization | 3 Months Ended |
Mar. 31, 2022 | |
Debt Instrument [Line Items] | |
Financings and Capitalization | Financings and Capitalization Credit Facilities: The following credit facilities with banks were available at March 31, 2022: In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2024 $ 550 $ — $ 24 $ 526 September 23, 2022 1 42 — 42 — CMS Enterprises, including subsidiaries September 25, 2025 2 $ 37 $ — $ 37 $ — September 30, 2025 3 18 — 8 10 Consumers 4 June 5, 2024 $ 850 $ — $ 12 $ 838 November 19, 2023 250 — 8 242 April 18, 2022 30 — 30 — 1 The maximum aggregate of letters of credit that may be issued under this facility is $50 million. The amount remaining under the facility is uncommitted. 2 This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities. 3 Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. 4 Obligations under these facilities are secured by first mortgage bonds of Consumers. Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. In March 2022, the FERC issued an authorization for financings that was set to expire on March 31, 2023. In April 2022, FERC issued a revision of its March authorization for financings that extends the expiration to March 31, 2024. Short-term Borrowings: Under Consumers’ commercial paper program, Consumers may issue, in one or more placements, investment-grade commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers’ revolving credit facilities and may have an aggregate principal amount outstanding of up to $500 million. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At March 31, 2022, there were no commercial paper notes outstanding under this program. In December 2021, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million at an interest rate of one-month LIBOR minus 0.100 percent. There were no outstanding borrowings under the agreement at March 31, 2022. Dividend Restrictions: At March 31, 2022, payment of dividends by CMS Energy on its common stock was limited to $6.6 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at March 31, 2022, Consumers had $1.9 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. During the three months ended March 31, 2022, Consumers paid $275 million in dividends on its common stock to CMS Energy. Issuance of Common Stock: Under an existing equity issuance program, CMS Energy may sell shares of its common stock having an aggregate sales price of up to $500 million in privately negotiated transactions, in “at the market” offerings, through forward sales transactions, or otherwise. Presented in the following table are details of CMS Energy’s forward sales contracts under this program at March 31, 2022: Forward Price Per Share Contract Date Maturity Date Number of Shares Initial March 31, 2022 September 15, 2020 June 30, 2022 846,759 $ 61.04 $ 57.99 December 22, 2020 June 22, 2022 115,595 61.81 59.17 These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock. The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net cash settle the contracts as of March 31, 2022, it would have been required to pay $11 million. If CMS Energy had elected to net share settle the contracts as of March 31, 2022, CMS Energy would have been required to deliver 162,487 shares. |
Consumers Energy Company | |
Debt Instrument [Line Items] | |
Financings and Capitalization | Financings and Capitalization Credit Facilities: The following credit facilities with banks were available at March 31, 2022: In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2024 $ 550 $ — $ 24 $ 526 September 23, 2022 1 42 — 42 — CMS Enterprises, including subsidiaries September 25, 2025 2 $ 37 $ — $ 37 $ — September 30, 2025 3 18 — 8 10 Consumers 4 June 5, 2024 $ 850 $ — $ 12 $ 838 November 19, 2023 250 — 8 242 April 18, 2022 30 — 30 — 1 The maximum aggregate of letters of credit that may be issued under this facility is $50 million. The amount remaining under the facility is uncommitted. 2 This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities. 3 Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. 4 Obligations under these facilities are secured by first mortgage bonds of Consumers. Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. In March 2022, the FERC issued an authorization for financings that was set to expire on March 31, 2023. In April 2022, FERC issued a revision of its March authorization for financings that extends the expiration to March 31, 2024. Short-term Borrowings: Under Consumers’ commercial paper program, Consumers may issue, in one or more placements, investment-grade commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers’ revolving credit facilities and may have an aggregate principal amount outstanding of up to $500 million. While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At March 31, 2022, there were no commercial paper notes outstanding under this program. In December 2021, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $500 million at an interest rate of one-month LIBOR minus 0.100 percent. There were no outstanding borrowings under the agreement at March 31, 2022. Dividend Restrictions: At March 31, 2022, payment of dividends by CMS Energy on its common stock was limited to $6.6 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at March 31, 2022, Consumers had $1.9 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. During the three months ended March 31, 2022, Consumers paid $275 million in dividends on its common stock to CMS Energy. Issuance of Common Stock: Under an existing equity issuance program, CMS Energy may sell shares of its common stock having an aggregate sales price of up to $500 million in privately negotiated transactions, in “at the market” offerings, through forward sales transactions, or otherwise. Presented in the following table are details of CMS Energy’s forward sales contracts under this program at March 31, 2022: Forward Price Per Share Contract Date Maturity Date Number of Shares Initial March 31, 2022 September 15, 2020 June 30, 2022 846,759 $ 61.04 $ 57.99 December 22, 2020 June 22, 2022 115,595 61.81 59.17 These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock. The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts are recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net cash settle the contracts as of March 31, 2022, it would have been required to pay $11 million. If CMS Energy had elected to net share settle the contracts as of March 31, 2022, CMS Energy would have been required to deliver 162,487 shares. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements | Fair Value Measurements Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are observable, market-based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data. • Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities. CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety. Assets and Liabilities Measured at Fair Value on a Recurring Basis Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers March 31 December 31 March 31 December 31 Assets 1 Cash equivalents $ 40 $ — $ — $ — Restricted cash equivalents 28 24 26 22 Nonqualified deferred compensation plan assets 26 27 20 21 Derivative instruments 1 2 1 2 Total assets $ 95 $ 53 $ 47 $ 45 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 26 $ 27 $ 20 $ 21 Derivative instruments 3 7 — — Total liabilities $ 29 $ 34 $ 20 $ 21 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3. Cash Equivalents: Cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted Cash Equivalents: Restricted cash equivalents consist of money market funds with daily liquidity. For further details, see Note 10, Cash and Cash Equivalents. Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets. Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3. The derivatives classified as Level 2 are interest rate swaps at CMS Energy, which are valued using market-based inputs. CMS Energy uses interest rate swaps to manage its interest rate risk on certain long‑term debt obligations. A subsidiary of CMS Enterprises uses floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with future interest payments on certain long‑term variable-rate debt. The interest rate swaps are accounted for as cash flow hedges of the future variability of interest payments on debt with a notional amount of $76 million at March 31, 2022 and $78 million at December 31, 2021. Gains or losses on these swaps are initially reported in other comprehensive income (loss) and then, as interest payments are made on the hedged debt, are recognized in earnings within interest on long-term debt on CMS Energy’s consolidated statements of income. CMS Energy recorded gains of $3 million for the three months ended March 31, 2022 and $1 million for the three months ended March 31, 2021. There were no material impacts on interest on long-term debt associated with these swaps during the periods presented. The fair value of these swaps recorded in other liabilities on CMS Energy’s consolidated balance sheets totaled $1 million at March 31, 2022 and $4 million at December 31, 2021. CMS Energy also has other interest rate swaps that economically hedge interest rate risk on debt, but that do not qualify for cash flow hedge accounting; the amounts associated with these swaps were not material for the periods presented. The majority of derivatives classified as Level 3 are FTRs held by Consumers. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. There was no material activity within the Level 3 categories of assets and liabilities during the periods presented. |
Consumers Energy Company | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements | Fair Value Measurements Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are observable, market-based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data. • Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities. CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety. Assets and Liabilities Measured at Fair Value on a Recurring Basis Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers March 31 December 31 March 31 December 31 Assets 1 Cash equivalents $ 40 $ — $ — $ — Restricted cash equivalents 28 24 26 22 Nonqualified deferred compensation plan assets 26 27 20 21 Derivative instruments 1 2 1 2 Total assets $ 95 $ 53 $ 47 $ 45 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 26 $ 27 $ 20 $ 21 Derivative instruments 3 7 — — Total liabilities $ 29 $ 34 $ 20 $ 21 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3. Cash Equivalents: Cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted Cash Equivalents: Restricted cash equivalents consist of money market funds with daily liquidity. For further details, see Note 10, Cash and Cash Equivalents. Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets. Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3. The derivatives classified as Level 2 are interest rate swaps at CMS Energy, which are valued using market-based inputs. CMS Energy uses interest rate swaps to manage its interest rate risk on certain long‑term debt obligations. A subsidiary of CMS Enterprises uses floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with future interest payments on certain long‑term variable-rate debt. The interest rate swaps are accounted for as cash flow hedges of the future variability of interest payments on debt with a notional amount of $76 million at March 31, 2022 and $78 million at December 31, 2021. Gains or losses on these swaps are initially reported in other comprehensive income (loss) and then, as interest payments are made on the hedged debt, are recognized in earnings within interest on long-term debt on CMS Energy’s consolidated statements of income. CMS Energy recorded gains of $3 million for the three months ended March 31, 2022 and $1 million for the three months ended March 31, 2021. There were no material impacts on interest on long-term debt associated with these swaps during the periods presented. The fair value of these swaps recorded in other liabilities on CMS Energy’s consolidated balance sheets totaled $1 million at March 31, 2022 and $4 million at December 31, 2021. CMS Energy also has other interest rate swaps that economically hedge interest rate risk on debt, but that do not qualify for cash flow hedge accounting; the amounts associated with these swaps were not material for the periods presented. The majority of derivatives classified as Level 3 are FTRs held by Consumers. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. There was no material activity within the Level 3 categories of assets and liabilities during the periods presented. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Financial Instruments [Line Items] | |
Financial Instruments | Financial Instruments Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements. In Millions March 31, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Total Level Total Level 1 2 3 1 2 3 CMS Energy, including Consumers Assets Long-term receivables 1 $ 13 $ 13 $ — $ — $ 13 $ 14 $ 14 $ — $ — $ 14 Liabilities Long-term debt 2 12,418 12,510 1,140 9,578 1,792 12,419 13,800 1,189 10,656 1,955 Long-term payables 3 9 9 — — 9 31 32 — — 32 Consumers Assets Long-term receivables 1 $ 13 $ 13 $ — $ — $ 13 $ 14 $ 14 $ — $ — $ 14 Notes receivable – related party 4 103 103 — — 103 104 104 — — 104 Liabilities Long-term debt 5 8,416 8,444 — 6,652 1,792 8,415 9,410 — 7,455 1,955 1 Includes current portion of long-term accounts receivable of $8 million at March 31, 2022 and $9 million at December 31, 2021. 2 Includes current portion of long-term debt of $373 million at March 31, 2022 and December 31, 2021. 3 Includes current portion of long-term payables of $1 million at March 31, 2022 and $23 million at December 31, 2021. 4 Includes current portion of notes receivable – related party of $7 million at March 31, 2022 and December 31, 2021. 5 Includes current portion of long-term debt of $365 million at March 31, 2022 and December 31, 2021. The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. |
Consumers Energy Company | |
Financial Instruments [Line Items] | |
Financial Instruments | Financial Instruments Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements. In Millions March 31, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Total Level Total Level 1 2 3 1 2 3 CMS Energy, including Consumers Assets Long-term receivables 1 $ 13 $ 13 $ — $ — $ 13 $ 14 $ 14 $ — $ — $ 14 Liabilities Long-term debt 2 12,418 12,510 1,140 9,578 1,792 12,419 13,800 1,189 10,656 1,955 Long-term payables 3 9 9 — — 9 31 32 — — 32 Consumers Assets Long-term receivables 1 $ 13 $ 13 $ — $ — $ 13 $ 14 $ 14 $ — $ — $ 14 Notes receivable – related party 4 103 103 — — 103 104 104 — — 104 Liabilities Long-term debt 5 8,416 8,444 — 6,652 1,792 8,415 9,410 — 7,455 1,955 1 Includes current portion of long-term accounts receivable of $8 million at March 31, 2022 and $9 million at December 31, 2021. 2 Includes current portion of long-term debt of $373 million at March 31, 2022 and December 31, 2021. 3 Includes current portion of long-term payables of $1 million at March 31, 2022 and $23 million at December 31, 2021. 4 Includes current portion of notes receivable – related party of $7 million at March 31, 2022 and December 31, 2021. 5 Includes current portion of long-term debt of $365 million at March 31, 2022 and December 31, 2021. The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement Benefits | Retirement Benefits CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. In March 2022, CMS Energy and Consumers determined it was probable that 2022 lump-sum payments to participants under DB Pension Plan A would exceed the plan’s service cost and interest cost components of net periodic cost for the year. These lump-sum payments constitute pension plan liability settlements; once it is probable such settlements will meet the service and interest cost threshold, recognition in earnings is required. As a result, in accordance with GAAP, CMS Energy, including Consumers, performed a remeasurement of DB Pension Plan A as of March 31, 2022 and recognized a settlement loss of $4 million; of this amount, $4 million was deferred as a regulatory asset. Consumers recognized a settlement loss of $4 million, all of which was deferred as a regulatory asset. CMS Energy and Consumers will amortize the regulatory asset over eight years. As a result of the remeasurement, the non-current asset for DB Pension Plan A increased by $91 million at CMS Energy, with an offsetting decrease in the associated regulatory asset of $89 million and a $2 million gain to AOCI. At Consumers, the non-current asset increased by $89 million and the associated regulatory asset decreased by $89 million. Costs: Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans: In Millions DB Pension Plans OPEB Plan Three Months Ended March 31 2022 2021 2022 2021 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 12 $ 14 $ 4 $ 4 Interest cost 18 15 7 6 Expected return on plan assets (52) (52) (29) (27) Amortization of: Net loss 17 25 — 2 Prior service cost (credit) 1 1 (12) (13) Settlement loss 2 1 — — Net periodic cost (credit) $ (2) $ 4 $ (30) $ (28) Consumers Net periodic cost (credit) Service cost $ 12 $ 13 $ 4 $ 4 Interest cost 16 14 7 6 Expected return on plan assets (49) (49) (27) (25) Amortization of: Net loss 16 25 — 2 Prior service cost (credit) 1 1 (12) (13) Settlement loss 2 1 — — Net periodic cost (credit) $ (2) $ 5 $ (28) $ (26) |
Consumers Energy Company | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement Benefits | Retirement Benefits CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. In March 2022, CMS Energy and Consumers determined it was probable that 2022 lump-sum payments to participants under DB Pension Plan A would exceed the plan’s service cost and interest cost components of net periodic cost for the year. These lump-sum payments constitute pension plan liability settlements; once it is probable such settlements will meet the service and interest cost threshold, recognition in earnings is required. As a result, in accordance with GAAP, CMS Energy, including Consumers, performed a remeasurement of DB Pension Plan A as of March 31, 2022 and recognized a settlement loss of $4 million; of this amount, $4 million was deferred as a regulatory asset. Consumers recognized a settlement loss of $4 million, all of which was deferred as a regulatory asset. CMS Energy and Consumers will amortize the regulatory asset over eight years. As a result of the remeasurement, the non-current asset for DB Pension Plan A increased by $91 million at CMS Energy, with an offsetting decrease in the associated regulatory asset of $89 million and a $2 million gain to AOCI. At Consumers, the non-current asset increased by $89 million and the associated regulatory asset decreased by $89 million. Costs: Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans: In Millions DB Pension Plans OPEB Plan Three Months Ended March 31 2022 2021 2022 2021 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 12 $ 14 $ 4 $ 4 Interest cost 18 15 7 6 Expected return on plan assets (52) (52) (29) (27) Amortization of: Net loss 17 25 — 2 Prior service cost (credit) 1 1 (12) (13) Settlement loss 2 1 — — Net periodic cost (credit) $ (2) $ 4 $ (30) $ (28) Consumers Net periodic cost (credit) Service cost $ 12 $ 13 $ 4 $ 4 Interest cost 16 14 7 6 Expected return on plan assets (49) (49) (27) (25) Amortization of: Net loss 16 25 — 2 Prior service cost (credit) 1 1 (12) (13) Settlement loss 2 1 — — Net periodic cost (credit) $ (2) $ 5 $ (28) $ (26) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations: Three Months Ended March 31 2022 2021 CMS Energy, including Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.5 5.4 TCJA excess deferred taxes 1 (7.2) (5.8) Production tax credits (4.7) (5.1) Accelerated flow-through of regulatory tax benefits 2 (4.3) (3.2) Other, net — (0.3) Effective tax rate 10.3 % 12.0 % Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.0 5.1 TCJA excess deferred taxes 1 (6.7) (5.1) Production tax credits (2.7) (2.6) Accelerated flow-through of regulatory tax benefits 2 (5.1) (3.7) Other, net (0.6) (0.4) Effective tax rate 10.9 % 14.3 % 1 In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, non ‑ property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022. 2 In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022. |
Consumers Energy Company | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations: Three Months Ended March 31 2022 2021 CMS Energy, including Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.5 5.4 TCJA excess deferred taxes 1 (7.2) (5.8) Production tax credits (4.7) (5.1) Accelerated flow-through of regulatory tax benefits 2 (4.3) (3.2) Other, net — (0.3) Effective tax rate 10.3 % 12.0 % Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.0 5.1 TCJA excess deferred taxes 1 (6.7) (5.1) Production tax credits (2.7) (2.6) Accelerated flow-through of regulatory tax benefits 2 (5.1) (3.7) Other, net (0.6) (0.4) Effective tax rate 10.9 % 14.3 % 1 In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, non ‑ property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022. 2 In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022. |
Earnings Per Share - CMS Energy
Earnings Per Share - CMS Energy | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share - CMS Energy | Earnings Per Share—CMS Energy Presented in the following table are CMS Energy’s basic and diluted EPS computations based on income from continuing operations: In Millions, Except Per Share Amounts Three Months Ended March 31 2022 2021 Income available to common stockholders Income from continuing operations $ 341 $ 308 Less loss attributable to noncontrolling interests (8) (7) Less preferred stock dividends 2 — Income from continuing operations available to common stockholders – basic and diluted $ 347 $ 315 Average common shares outstanding Weighted-average shares – basic 289.3 288.6 Add dilutive nonvested stock awards 0.5 0.5 Add dilutive forward equity sale contracts 0.1 — Weighted-average shares – diluted 289.9 289.1 Income from continuing operations per average common share available to common stockholders Basic $ 1.20 $ 1.09 Diluted 1.20 1.09 Nonvested Stock Awards CMS Energy’s nonvested stock awards are composed of participating and non‑participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the nonvested stock awards are considered participating securities. As such, the participating nonvested stock awards were included in the computation of basic EPS. The non‑participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non‑participating securities are also forfeited. Accordingly, the non‑participating awards and stock dividends were included in the computation of diluted EPS, but not in the computation of basic EPS. Forward Equity Sale Contracts CMS Energy has entered into forward equity sale contracts. These forward equity sale contracts are non‑participating securities. While the forward sale price in the forward equity sale contract is decreased on certain dates by certain predetermined amounts to reflect expected dividend payments, these price adjustments were set upon inception of the agreement and the forward contract does not give the owner the right to participate in undistributed earnings. Accordingly, the forward equity sale contracts were included in the computation of diluted EPS, but not in the computation of basic EPS. For further details on the forward equity sale contracts, see Note 3, Financings and Capitalization. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |
Revenue | RevenuePresented in the following tables are the components of operating revenue: In Millions Three Months Ended March 31, 2022 Electric Utility Gas Utility Enterprises 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,238 $ 1,047 $ — $ 2,285 Other — — 33 33 Revenue recognized from contracts with customers $ 1,238 $ 1,047 $ 33 $ 2,318 Leasing income — — 58 58 Financing income 3 2 — 5 Consumers alternative-revenue programs — (7) — (7) Total operating revenue – CMS Energy $ 1,241 $ 1,042 $ 91 $ 2,374 Consumers Consumers utility revenue Residential $ 591 $ 740 $ 1,331 Commercial 384 221 605 Industrial 168 28 196 Other 95 58 153 Revenue recognized from contracts with customers $ 1,238 $ 1,047 $ 2,285 Financing income 3 2 5 Alternative-revenue programs — (7) (7) Total operating revenue – Consumers $ 1,241 $ 1,042 $ 2,283 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $44 million for the three months ended March 31, 2022. In Millions Three Months Ended March 31, 2021 Electric Utility Gas Utility Enterprises 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,131 $ 801 $ — $ 1,932 Other — — 30 30 Revenue recognized from contracts with customers $ 1,131 $ 801 $ 30 $ 1,962 Leasing income — — 46 46 Financing income 3 2 — 5 Total operating revenue – CMS Energy $ 1,134 $ 803 $ 76 $ 2,013 Consumers Consumers utility revenue Residential $ 568 $ 554 $ 1,122 Commercial 345 163 508 Industrial 138 23 161 Other 80 61 141 Revenue recognized from contracts with customers $ 1,131 $ 801 $ 1,932 Financing income 3 2 5 Total operating revenue – Consumers $ 1,134 $ 803 $ 1,937 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $33 million for the three months ended March 31, 2021. Electric and Gas Utilities Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below. • Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver. • Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity. In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature. Alternative-Revenue Program: Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather-normalized, non-fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered. Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers. Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due. CMS Energy and Consumers recorded uncollectible accounts expense of $4 million for the three months ended March 31, 2022 and $6 million for the three months ended March 31, 2021. Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable and accrued revenue on CMS Energy’s and Consumers’ consolidated balance sheets, were $491 million at March 31, 2022 and $486 million at December 31, 2021. |
Consumers Energy Company | |
Disaggregation of Revenue [Line Items] | |
Revenue | RevenuePresented in the following tables are the components of operating revenue: In Millions Three Months Ended March 31, 2022 Electric Utility Gas Utility Enterprises 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,238 $ 1,047 $ — $ 2,285 Other — — 33 33 Revenue recognized from contracts with customers $ 1,238 $ 1,047 $ 33 $ 2,318 Leasing income — — 58 58 Financing income 3 2 — 5 Consumers alternative-revenue programs — (7) — (7) Total operating revenue – CMS Energy $ 1,241 $ 1,042 $ 91 $ 2,374 Consumers Consumers utility revenue Residential $ 591 $ 740 $ 1,331 Commercial 384 221 605 Industrial 168 28 196 Other 95 58 153 Revenue recognized from contracts with customers $ 1,238 $ 1,047 $ 2,285 Financing income 3 2 5 Alternative-revenue programs — (7) (7) Total operating revenue – Consumers $ 1,241 $ 1,042 $ 2,283 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $44 million for the three months ended March 31, 2022. In Millions Three Months Ended March 31, 2021 Electric Utility Gas Utility Enterprises 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,131 $ 801 $ — $ 1,932 Other — — 30 30 Revenue recognized from contracts with customers $ 1,131 $ 801 $ 30 $ 1,962 Leasing income — — 46 46 Financing income 3 2 — 5 Total operating revenue – CMS Energy $ 1,134 $ 803 $ 76 $ 2,013 Consumers Consumers utility revenue Residential $ 568 $ 554 $ 1,122 Commercial 345 163 508 Industrial 138 23 161 Other 80 61 141 Revenue recognized from contracts with customers $ 1,131 $ 801 $ 1,932 Financing income 3 2 5 Total operating revenue – Consumers $ 1,134 $ 803 $ 1,937 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $33 million for the three months ended March 31, 2021. Electric and Gas Utilities Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below. • Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver. • Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity. In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature. Alternative-Revenue Program: Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather-normalized, non-fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered. Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers. Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due. CMS Energy and Consumers recorded uncollectible accounts expense of $4 million for the three months ended March 31, 2022 and $6 million for the three months ended March 31, 2021. Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable and accrued revenue on CMS Energy’s and Consumers’ consolidated balance sheets, were $491 million at March 31, 2022 and $486 million at December 31, 2021. |
Cash And Cash Equivalents
Cash And Cash Equivalents | 3 Months Ended |
Mar. 31, 2022 | |
Cash and Cash Equivalents [Line Items] | |
Cash And Cash Equivalents | Cash and Cash Equivalents Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets: In Millions March 31, 2022 December 31, 2021 CMS Energy, including Consumers Cash and cash equivalents $ 446 $ 452 Restricted cash and cash equivalents 28 24 Cash and cash equivalents, including restricted amounts – CMS Energy $ 474 $ 476 Consumers Cash and cash equivalents $ 12 $ 22 Restricted cash and cash equivalents 26 22 Cash and cash equivalents, including restricted amounts – Consumers $ 38 $ 44 Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year. |
Consumers Energy Company | |
Cash and Cash Equivalents [Line Items] | |
Cash And Cash Equivalents | Cash and Cash Equivalents Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets: In Millions March 31, 2022 December 31, 2021 CMS Energy, including Consumers Cash and cash equivalents $ 446 $ 452 Restricted cash and cash equivalents 28 24 Cash and cash equivalents, including restricted amounts – CMS Energy $ 474 $ 476 Consumers Cash and cash equivalents $ 12 $ 22 Restricted cash and cash equivalents 26 22 Cash and cash equivalents, including restricted amounts – Consumers $ 38 $ 44 Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | |
Reportable Segments | Reportable SegmentsReportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders. CMS Energy The segments reported for CMS Energy are: • electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan • enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production On October 1, 2021, EnerBank was acquired by Regions Bank. As a result, EnerBank was removed from the composition of CMS Energy’s reportable segments. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income. For information regarding the sale of EnerBank, see Note 13, Exit Activities and Discontinued Operations. CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items. Consumers The segments reported for Consumers are: • electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan Consumers’ other consolidated entities are presented within other reconciling items. Presented in the following tables is financial information by segment: In Millions Three Months Ended March 31 2022 2021 CMS Energy, including Consumers Operating revenue Electric utility $ 1,241 $ 1,134 Gas utility 1,042 803 Enterprises 91 76 Total operating revenue – CMS Energy $ 2,374 $ 2,013 Consumers Operating revenue Electric utility $ 1,241 $ 1,134 Gas utility 1,042 803 Total operating revenue – Consumers $ 2,283 $ 1,937 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 167 $ 155 Gas utility 216 181 Enterprises 8 14 Other reconciling items (40) (1) Total net income available to common stockholders – CMS Energy $ 351 $ 349 Consumers Net income available to common stockholder Electric utility $ 167 $ 155 Gas utility 216 181 Total net income available to common stockholder – Consumers $ 383 $ 336 In Millions March 31, 2022 December 31, 2021 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 18,294 $ 18,147 Gas utility 1 10,759 10,601 Enterprises 1,123 1,122 Other reconciling items 23 23 Total plant, property, and equipment, gross – CMS Energy $ 30,199 $ 29,893 Consumers Plant, property, and equipment, gross Electric utility 1 $ 18,294 $ 18,147 Gas utility 1 10,759 10,601 Other reconciling items 23 23 Total plant, property, and equipment, gross – Consumers $ 29,076 $ 28,771 CMS Energy, including Consumers Total assets Electric utility 1 $ 16,650 $ 16,493 Gas utility 1 10,334 10,517 Enterprises 1,312 1,312 Other reconciling items 444 431 Total assets – CMS Energy $ 28,740 $ 28,753 Consumers Total assets Electric utility 1 $ 16,712 $ 16,555 Gas utility 1 10,380 10,564 Other reconciling items 22 21 Total assets – Consumers $ 27,114 $ 27,140 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. |
Consumers Energy Company | |
Segment Reporting Information [Line Items] | |
Reportable Segments | Reportable SegmentsReportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders. CMS Energy The segments reported for CMS Energy are: • electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan • enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production On October 1, 2021, EnerBank was acquired by Regions Bank. As a result, EnerBank was removed from the composition of CMS Energy’s reportable segments. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income. For information regarding the sale of EnerBank, see Note 13, Exit Activities and Discontinued Operations. CMS Energy presents corporate interest and other expenses, discontinued operations, and Consumers’ other consolidated entities within other reconciling items. Consumers The segments reported for Consumers are: • electric utility, consisting of regulated activities associated with the generation, purchase, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan Consumers’ other consolidated entities are presented within other reconciling items. Presented in the following tables is financial information by segment: In Millions Three Months Ended March 31 2022 2021 CMS Energy, including Consumers Operating revenue Electric utility $ 1,241 $ 1,134 Gas utility 1,042 803 Enterprises 91 76 Total operating revenue – CMS Energy $ 2,374 $ 2,013 Consumers Operating revenue Electric utility $ 1,241 $ 1,134 Gas utility 1,042 803 Total operating revenue – Consumers $ 2,283 $ 1,937 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 167 $ 155 Gas utility 216 181 Enterprises 8 14 Other reconciling items (40) (1) Total net income available to common stockholders – CMS Energy $ 351 $ 349 Consumers Net income available to common stockholder Electric utility $ 167 $ 155 Gas utility 216 181 Total net income available to common stockholder – Consumers $ 383 $ 336 In Millions March 31, 2022 December 31, 2021 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 18,294 $ 18,147 Gas utility 1 10,759 10,601 Enterprises 1,123 1,122 Other reconciling items 23 23 Total plant, property, and equipment, gross – CMS Energy $ 30,199 $ 29,893 Consumers Plant, property, and equipment, gross Electric utility 1 $ 18,294 $ 18,147 Gas utility 1 10,759 10,601 Other reconciling items 23 23 Total plant, property, and equipment, gross – Consumers $ 29,076 $ 28,771 CMS Energy, including Consumers Total assets Electric utility 1 $ 16,650 $ 16,493 Gas utility 1 10,334 10,517 Enterprises 1,312 1,312 Other reconciling items 444 431 Total assets – CMS Energy $ 28,740 $ 28,753 Consumers Total assets Electric utility 1 $ 16,712 $ 16,555 Gas utility 1 10,380 10,564 Other reconciling items 22 21 Total assets – Consumers $ 27,114 $ 27,140 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2022 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities CMS Enterprises has a 51-percent ownership interest in Aviator Wind Equity Holdings, which holds a Class B membership interest in Aviator Wind, a 525-MW wind generation project in Coke County, Texas. The Class A membership interest in Aviator Wind is held by a tax equity investor, BHE Renewables, LLC, a subsidiary of Berkshire Hathaway Energy Company. Earnings, tax attributes, and cash flows generated by Aviator Wind are allocated among and distributed to the membership classes in accordance with the ratios specified in the associated limited liability company operating agreement; these ratios change over time and are not representative of the ownership interest percentages of each membership class. Aviator Wind Equity Holdings and Aviator Wind represent VIEs. In accordance with the associated limited liability company operating agreement, the tax equity investor is guaranteed preferred returns from Aviator Wind. However, CMS Enterprises manages and controls the operating activities of Aviator Wind Equity Holdings and, ultimately, Aviator Wind. As a result, CMS Enterprises is the primary beneficiary of Aviator Wind Equity Holdings and Aviator Wind, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies. CMS Enterprises consolidates Aviator Wind Equity Holdings and Aviator Wind and presents the Class A membership interest and 49 percent of the Class B membership interest in Aviator Wind as noncontrolling interests. Presented in the following table are the carrying values of the VIEs’ assets and liabilities included on CMS Energy’s consolidated balance sheets: In Millions March 31, 2022 December 31, 2021 Current Cash and cash equivalents $ 14 $ 20 Accounts receivable 3 3 Prepayments and other current assets 2 1 Non-current Plant, property, and equipment, net 665 671 Total assets 1 $ 684 $ 695 Current Accounts payable $ 8 $ 15 Non-current Asset retirement obligations 20 20 Total liabilities $ 28 $ 35 1 Assets may be used only to meet VIEs’ obligations and commitments. CMS Enterprises is obligated under certain indemnities that protect the tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. For additional details on these indemnity obligations, see Note 2, Contingencies and Commitments—Guarantees. Other VIEs: CMS Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While CMS Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships. Presented in the following table is information about these partnerships: Name Nature of the Entity Nature of CMS Energy’s Involvement T.E.S. Filer City Coal-fueled power generator Long-term PPA between partnership and Consumers Employee assignment agreement Grayling Wood waste-fueled power generator Long-term PPA between partnership and Consumers Reduced dispatch agreement with Consumers 1 Operating and management contract Genesee Wood waste-fueled power generator Long-term PPA between partnership and Consumers Reduced dispatch agreement with Consumers 1 Operating and management contract Craven Wood waste-fueled power generator Operating and management contract 1 Reduced dispatch agreements allow the facilities to be dispatched based on the market price of power compared with the cost of production of the plants. This results in fuel cost savings that each partnership shares with Consumers’ customers. The creditors of these partnerships do not have recourse to the general credit of CMS Energy or Consumers. CMS Energy and Consumers have not provided any financial or other support during the periods presented that was not previously contractually required. CMS Energy’s investment in these partnerships is included in investments on its consolidated balance sheets in the amount of $71 million at March 31, 2022 and December 31, 2021. |
Exit Activities and Discontinue
Exit Activities and Discontinued Operations | 3 Months Ended |
Mar. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Exit Activities and Discontinued Operations | Exit Activities and Discontinued Operations Exit Activities: Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn coal-fueled electric generating units in 2023. In 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million. In its order in Consumers’ 2020 electric rate case, the MPSC approved deferred accounting treatment for these costs; Consumers began deferring these costs as a regulatory asset in 2021. Under the settlement agreement resolving the 2021 IRP, Consumers would retire the J.H. Campbell coal-fueled generating units in 2025. Similar to the D.E. Karn program, Consumers would provide a retention incentive program to ensure necessary staffing at the J.H. Campbell generating complex through retirement. No retention incentive costs related to this program will be recognized unless the MPSC approves the settlement agreement, which provides deferred accounting treatment for these costs. As of March 31, 2022, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $8 million has been deferred as a regulatory asset. Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets: In Millions Three Months Ended March 31 2022 2021 Retention benefit liability at beginning of period $ 14 $ 11 Costs deferred as a regulatory asset 1 2 Retention benefit liability at the end of the period 1 $ 15 $ 13 1 Includes current portion of other liabilities of $5 million at March 31, 2022 and $4 million at March 31, 2021. Discontinued Operations: On October 1, 2021, EnerBank was acquired by Regions Bank. CMS Energy received proceeds of over $1 billion from the transaction and recognized a pre-tax gain of $657 million in 2021. In 2022, CMS Energy received $6 million of additional proceeds as the result of a post-closing adjustment. Net of related transaction costs, CMS Energy recognized a pre-tax gain of $5 million during the three months ended March 31, 2022. In December 2021, CMS Energy submitted a notice of disagreement to Regions Bank relating to a $36 million negative post-closing purchase price adjustment that it believes is inconsistent with the merger agreement. In accordance with the merger agreement, the disputed adjustment has been submitted to a mutually agreed upon independent accounting firm for final determination. While CMS Energy does not believe material loss is probable, it cannot predict the outcome of this matter. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three months ended March 31, 2021. The table below presents the financial results of EnerBank included in income from discontinued operations: In Millions Three Months Ended March 31 2022 2021 Operating revenue $ — $ 70 Expenses Operating expenses — 15 Interest expense — 12 Income before income taxes $ — $ 43 Gain on sale 5 — Income from discontinued operations before income taxes $ 5 $ 43 Income tax expense 1 9 Income from discontinued operations, net of tax $ 4 $ 34 |
Consumers Energy Company | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Exit Activities and Discontinued Operations | Exit Activities and Discontinued Operations Exit Activities: Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn coal-fueled electric generating units in 2023. In 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million. In its order in Consumers’ 2020 electric rate case, the MPSC approved deferred accounting treatment for these costs; Consumers began deferring these costs as a regulatory asset in 2021. Under the settlement agreement resolving the 2021 IRP, Consumers would retire the J.H. Campbell coal-fueled generating units in 2025. Similar to the D.E. Karn program, Consumers would provide a retention incentive program to ensure necessary staffing at the J.H. Campbell generating complex through retirement. No retention incentive costs related to this program will be recognized unless the MPSC approves the settlement agreement, which provides deferred accounting treatment for these costs. As of March 31, 2022, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $8 million has been deferred as a regulatory asset. Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets: In Millions Three Months Ended March 31 2022 2021 Retention benefit liability at beginning of period $ 14 $ 11 Costs deferred as a regulatory asset 1 2 Retention benefit liability at the end of the period 1 $ 15 $ 13 1 Includes current portion of other liabilities of $5 million at March 31, 2022 and $4 million at March 31, 2021. Discontinued Operations: On October 1, 2021, EnerBank was acquired by Regions Bank. CMS Energy received proceeds of over $1 billion from the transaction and recognized a pre-tax gain of $657 million in 2021. In 2022, CMS Energy received $6 million of additional proceeds as the result of a post-closing adjustment. Net of related transaction costs, CMS Energy recognized a pre-tax gain of $5 million during the three months ended March 31, 2022. In December 2021, CMS Energy submitted a notice of disagreement to Regions Bank relating to a $36 million negative post-closing purchase price adjustment that it believes is inconsistent with the merger agreement. In accordance with the merger agreement, the disputed adjustment has been submitted to a mutually agreed upon independent accounting firm for final determination. While CMS Energy does not believe material loss is probable, it cannot predict the outcome of this matter. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three months ended March 31, 2021. The table below presents the financial results of EnerBank included in income from discontinued operations: In Millions Three Months Ended March 31 2022 2021 Operating revenue $ — $ 70 Expenses Operating expenses — 15 Interest expense — 12 Income before income taxes $ — $ 43 Gain on sale 5 — Income from discontinued operations before income taxes $ 5 $ 43 Income tax expense 1 9 Income from discontinued operations, net of tax $ 4 $ 34 |
Significant Accounting Policies
Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2022 | |
Significant Accounting Policies [Line Items] | |
EPS | Nonvested Stock Awards CMS Energy’s nonvested stock awards are composed of participating and non‑participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the nonvested stock awards are considered participating securities. As such, the participating nonvested stock awards were included in the computation of basic EPS. The non‑participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non‑participating securities are also forfeited. Accordingly, the non‑participating awards and stock dividends were included in the computation of diluted EPS, but not in the computation of basic EPS. Forward Equity Sale Contracts CMS Energy has entered into forward equity sale contracts. These forward equity sale contracts are non‑participating securities. While the forward sale price in the forward equity sale contract is decreased on certain dates by certain predetermined amounts to reflect expected dividend payments, these price adjustments were set upon inception of the agreement and the forward contract does not give the owner the right to participate in undistributed earnings. Accordingly, the forward equity sale contracts were included in the computation of diluted EPS, but not in the computation of basic EPS. For further details on the forward equity sale contracts, see Note 3, Financings and Capitalization. |
Accounts Receivable | Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year. |
Consolidation, Variable Interest Entity | Aviator Wind Equity Holdings and Aviator Wind represent VIEs. In accordance with the associated limited liability company operating agreement, the tax equity investor is guaranteed preferred returns from Aviator Wind. However, CMS Enterprises manages and controls the operating activities of Aviator Wind Equity Holdings and, ultimately, Aviator Wind. As a result, CMS Enterprises is the primary beneficiary of Aviator Wind Equity Holdings and Aviator Wind, as it has the power to direct the activities that most significantly impact the economic performance of the companies, as well as the obligation to absorb losses or the right to receive benefits from the companies.CMS Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While CMS Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships. |
Consumers Energy Company | |
Significant Accounting Policies [Line Items] | |
Consumers Utility Revenue | Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below. • Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver. • Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity. In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature. Alternative-Revenue Program: Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather-normalized, non-fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered. |
Accounts Receivable | Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due. |
Unbilled Revenues | Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year. |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Site Contingency [Line Items] | |
Expected Remediation Costs By Year | CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs during the remainder of 2022 and in each of the next five years: In Millions 2022 2023 2024 2025 2026 2027 CMS Energy Long-term leachate disposal and operating and maintenance costs $ 3 $ 4 $ 4 $ 4 $ 4 $ 4 |
Guarantees | Presented in the following table are CMS Energy’s and Consumers’ guarantees at March 31, 2022: In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from purchase of VIE 1 September 2020 indefinite $ 305 $ — Indemnity obligations from stock and asset sale agreements 2 various indefinite 225 4 Guarantee 3 July 2011 indefinite 30 — Consumers Guarantee 3 July 2011 indefinite $ 30 $ — 1 In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities. 2 These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 13, Exit Activities and Discontinued Operations . CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. 3 This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. |
Consumers Energy Company | |
Site Contingency [Line Items] | |
Expected Remediation Costs By Year | Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2022 and in each of the next five years: In Millions 2022 2023 2024 2025 2026 2027 Consumers Remediation and other response activity costs $ 3 $ 9 $ 24 $ 11 $ 1 $ 1 |
Guarantees | Presented in the following table are CMS Energy’s and Consumers’ guarantees at March 31, 2022: In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from purchase of VIE 1 September 2020 indefinite $ 305 $ — Indemnity obligations from stock and asset sale agreements 2 various indefinite 225 4 Guarantee 3 July 2011 indefinite 30 — Consumers Guarantee 3 July 2011 indefinite $ 30 $ — 1 In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities. 2 These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, including claims related to taxes and breaches of representations and warranties. The maximum obligation amount is mostly related to an Equatorial Guinea tax claim and an indemnity provided in connection with the sale of EnerBank to Regions Bank. For further details on the sale, see Note 13, Exit Activities and Discontinued Operations . CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. 3 This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. |
Financings and Capitalization (
Financings and Capitalization (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Instrument [Line Items] | |
Schedule of Revolving Credit Facilities | The following credit facilities with banks were available at March 31, 2022: In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2024 $ 550 $ — $ 24 $ 526 September 23, 2022 1 42 — 42 — CMS Enterprises, including subsidiaries September 25, 2025 2 $ 37 $ — $ 37 $ — September 30, 2025 3 18 — 8 10 Consumers 4 June 5, 2024 $ 850 $ — $ 12 $ 838 November 19, 2023 250 — 8 242 April 18, 2022 30 — 30 — 1 The maximum aggregate of letters of credit that may be issued under this facility is $50 million. The amount remaining under the facility is uncommitted. 2 This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities. 3 Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. 4 Obligations under these facilities are secured by first mortgage bonds of Consumers. |
Schedule of Forward Contracts | Presented in the following table are details of CMS Energy’s forward sales contracts under this program at March 31, 2022: Forward Price Per Share Contract Date Maturity Date Number of Shares Initial March 31, 2022 September 15, 2020 June 30, 2022 846,759 $ 61.04 $ 57.99 December 22, 2020 June 22, 2022 115,595 61.81 59.17 |
Consumers Energy Company | |
Debt Instrument [Line Items] | |
Schedule of Revolving Credit Facilities | The following credit facilities with banks were available at March 31, 2022: In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2024 $ 550 $ — $ 24 $ 526 September 23, 2022 1 42 — 42 — CMS Enterprises, including subsidiaries September 25, 2025 2 $ 37 $ — $ 37 $ — September 30, 2025 3 18 — 8 10 Consumers 4 June 5, 2024 $ 850 $ — $ 12 $ 838 November 19, 2023 250 — 8 242 April 18, 2022 30 — 30 — 1 The maximum aggregate of letters of credit that may be issued under this facility is $50 million. The amount remaining under the facility is uncommitted. 2 This letter of credit facility is available to Aviator Wind Equity Holdings. For more information regarding Aviator Wind Equity Holdings, see Note 12, Variable Interest Entities. 3 Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. 4 Obligations under these facilities are secured by first mortgage bonds of Consumers. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets And Liabilities Measured At Fair Value On A Recurring Basis | Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers March 31 December 31 March 31 December 31 Assets 1 Cash equivalents $ 40 $ — $ — $ — Restricted cash equivalents 28 24 26 22 Nonqualified deferred compensation plan assets 26 27 20 21 Derivative instruments 1 2 1 2 Total assets $ 95 $ 53 $ 47 $ 45 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 26 $ 27 $ 20 $ 21 Derivative instruments 3 7 — — Total liabilities $ 29 $ 34 $ 20 $ 21 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3. |
Consumers Energy Company | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets And Liabilities Measured At Fair Value On A Recurring Basis | Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers March 31 December 31 March 31 December 31 Assets 1 Cash equivalents $ 40 $ — $ — $ — Restricted cash equivalents 28 24 26 22 Nonqualified deferred compensation plan assets 26 27 20 21 Derivative instruments 1 2 1 2 Total assets $ 95 $ 53 $ 47 $ 45 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 26 $ 27 $ 20 $ 21 Derivative instruments 3 7 — — Total liabilities $ 29 $ 34 $ 20 $ 21 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Financial Instruments [Line Items] | |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements. In Millions March 31, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Total Level Total Level 1 2 3 1 2 3 CMS Energy, including Consumers Assets Long-term receivables 1 $ 13 $ 13 $ — $ — $ 13 $ 14 $ 14 $ — $ — $ 14 Liabilities Long-term debt 2 12,418 12,510 1,140 9,578 1,792 12,419 13,800 1,189 10,656 1,955 Long-term payables 3 9 9 — — 9 31 32 — — 32 Consumers Assets Long-term receivables 1 $ 13 $ 13 $ — $ — $ 13 $ 14 $ 14 $ — $ — $ 14 Notes receivable – related party 4 103 103 — — 103 104 104 — — 104 Liabilities Long-term debt 5 8,416 8,444 — 6,652 1,792 8,415 9,410 — 7,455 1,955 1 Includes current portion of long-term accounts receivable of $8 million at March 31, 2022 and $9 million at December 31, 2021. 2 Includes current portion of long-term debt of $373 million at March 31, 2022 and December 31, 2021. 3 Includes current portion of long-term payables of $1 million at March 31, 2022 and $23 million at December 31, 2021. 4 Includes current portion of notes receivable – related party of $7 million at March 31, 2022 and December 31, 2021. 5 Includes current portion of long-term debt of $365 million at March 31, 2022 and December 31, 2021. |
Consumers Energy Company | |
Financial Instruments [Line Items] | |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 4, Fair Value Measurements. In Millions March 31, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Total Level Total Level 1 2 3 1 2 3 CMS Energy, including Consumers Assets Long-term receivables 1 $ 13 $ 13 $ — $ — $ 13 $ 14 $ 14 $ — $ — $ 14 Liabilities Long-term debt 2 12,418 12,510 1,140 9,578 1,792 12,419 13,800 1,189 10,656 1,955 Long-term payables 3 9 9 — — 9 31 32 — — 32 Consumers Assets Long-term receivables 1 $ 13 $ 13 $ — $ — $ 13 $ 14 $ 14 $ — $ — $ 14 Notes receivable – related party 4 103 103 — — 103 104 104 — — 104 Liabilities Long-term debt 5 8,416 8,444 — 6,652 1,792 8,415 9,410 — 7,455 1,955 1 Includes current portion of long-term accounts receivable of $8 million at March 31, 2022 and $9 million at December 31, 2021. 2 Includes current portion of long-term debt of $373 million at March 31, 2022 and December 31, 2021. 3 Includes current portion of long-term payables of $1 million at March 31, 2022 and $23 million at December 31, 2021. 4 Includes current portion of notes receivable – related party of $7 million at March 31, 2022 and December 31, 2021. 5 Includes current portion of long-term debt of $365 million at March 31, 2022 and December 31, 2021. |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Net Benefit Costs | Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans: In Millions DB Pension Plans OPEB Plan Three Months Ended March 31 2022 2021 2022 2021 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 12 $ 14 $ 4 $ 4 Interest cost 18 15 7 6 Expected return on plan assets (52) (52) (29) (27) Amortization of: Net loss 17 25 — 2 Prior service cost (credit) 1 1 (12) (13) Settlement loss 2 1 — — Net periodic cost (credit) $ (2) $ 4 $ (30) $ (28) Consumers Net periodic cost (credit) Service cost $ 12 $ 13 $ 4 $ 4 Interest cost 16 14 7 6 Expected return on plan assets (49) (49) (27) (25) Amortization of: Net loss 16 25 — 2 Prior service cost (credit) 1 1 (12) (13) Settlement loss 2 1 — — Net periodic cost (credit) $ (2) $ 5 $ (28) $ (26) |
Consumers Energy Company | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Net Benefit Costs | Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefit plans: In Millions DB Pension Plans OPEB Plan Three Months Ended March 31 2022 2021 2022 2021 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 12 $ 14 $ 4 $ 4 Interest cost 18 15 7 6 Expected return on plan assets (52) (52) (29) (27) Amortization of: Net loss 17 25 — 2 Prior service cost (credit) 1 1 (12) (13) Settlement loss 2 1 — — Net periodic cost (credit) $ (2) $ 4 $ (30) $ (28) Consumers Net periodic cost (credit) Service cost $ 12 $ 13 $ 4 $ 4 Interest cost 16 14 7 6 Expected return on plan assets (49) (49) (27) (25) Amortization of: Net loss 16 25 — 2 Prior service cost (credit) 1 1 (12) (13) Settlement loss 2 1 — — Net periodic cost (credit) $ (2) $ 5 $ (28) $ (26) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Taxes [Line Items] | |
Schedule Of Effective Income Tax Rate Reconciliation | Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations: Three Months Ended March 31 2022 2021 CMS Energy, including Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.5 5.4 TCJA excess deferred taxes 1 (7.2) (5.8) Production tax credits (4.7) (5.1) Accelerated flow-through of regulatory tax benefits 2 (4.3) (3.2) Other, net — (0.3) Effective tax rate 10.3 % 12.0 % Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.0 5.1 TCJA excess deferred taxes 1 (6.7) (5.1) Production tax credits (2.7) (2.6) Accelerated flow-through of regulatory tax benefits 2 (5.1) (3.7) Other, net (0.6) (0.4) Effective tax rate 10.9 % 14.3 % 1 In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, non ‑ property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022. 2 In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022. |
Consumers Energy Company | |
Income Taxes [Line Items] | |
Schedule Of Effective Income Tax Rate Reconciliation | Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations: Three Months Ended March 31 2022 2021 CMS Energy, including Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.5 5.4 TCJA excess deferred taxes 1 (7.2) (5.8) Production tax credits (4.7) (5.1) Accelerated flow-through of regulatory tax benefits 2 (4.3) (3.2) Other, net — (0.3) Effective tax rate 10.3 % 12.0 % Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.0 5.1 TCJA excess deferred taxes 1 (6.7) (5.1) Production tax credits (2.7) (2.6) Accelerated flow-through of regulatory tax benefits 2 (5.1) (3.7) Other, net (0.6) (0.4) Effective tax rate 10.9 % 14.3 % 1 In September 2020, the MPSC authorized Consumers to accelerate the amortization of a gas regulatory liability associated with unprotected, non ‑ property-related excess deferred income taxes resulting from the TCJA. The regulatory liability, which was previously scheduled to be amortized through 2029, will now be fully amortized by the end of 2022. 2 In September 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits, which were previously scheduled to be amortized through 2025, will now be fully amortized by the end of 2022. |
Earnings Per Share - CMS Ener_2
Earnings Per Share - CMS Energy (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic And Diluted EPS Computations | Presented in the following table are CMS Energy’s basic and diluted EPS computations based on income from continuing operations: In Millions, Except Per Share Amounts Three Months Ended March 31 2022 2021 Income available to common stockholders Income from continuing operations $ 341 $ 308 Less loss attributable to noncontrolling interests (8) (7) Less preferred stock dividends 2 — Income from continuing operations available to common stockholders – basic and diluted $ 347 $ 315 Average common shares outstanding Weighted-average shares – basic 289.3 288.6 Add dilutive nonvested stock awards 0.5 0.5 Add dilutive forward equity sale contracts 0.1 — Weighted-average shares – diluted 289.9 289.1 Income from continuing operations per average common share available to common stockholders Basic $ 1.20 $ 1.09 Diluted 1.20 1.09 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | Presented in the following tables are the components of operating revenue: In Millions Three Months Ended March 31, 2022 Electric Utility Gas Utility Enterprises 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,238 $ 1,047 $ — $ 2,285 Other — — 33 33 Revenue recognized from contracts with customers $ 1,238 $ 1,047 $ 33 $ 2,318 Leasing income — — 58 58 Financing income 3 2 — 5 Consumers alternative-revenue programs — (7) — (7) Total operating revenue – CMS Energy $ 1,241 $ 1,042 $ 91 $ 2,374 Consumers Consumers utility revenue Residential $ 591 $ 740 $ 1,331 Commercial 384 221 605 Industrial 168 28 196 Other 95 58 153 Revenue recognized from contracts with customers $ 1,238 $ 1,047 $ 2,285 Financing income 3 2 5 Alternative-revenue programs — (7) (7) Total operating revenue – Consumers $ 1,241 $ 1,042 $ 2,283 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $44 million for the three months ended March 31, 2022. In Millions Three Months Ended March 31, 2021 Electric Utility Gas Utility Enterprises 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,131 $ 801 $ — $ 1,932 Other — — 30 30 Revenue recognized from contracts with customers $ 1,131 $ 801 $ 30 $ 1,962 Leasing income — — 46 46 Financing income 3 2 — 5 Total operating revenue – CMS Energy $ 1,134 $ 803 $ 76 $ 2,013 Consumers Consumers utility revenue Residential $ 568 $ 554 $ 1,122 Commercial 345 163 508 Industrial 138 23 161 Other 80 61 141 Revenue recognized from contracts with customers $ 1,131 $ 801 $ 1,932 Financing income 3 2 5 Total operating revenue – Consumers $ 1,134 $ 803 $ 1,937 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $33 million for the three months ended March 31, 2021. |
Consumers Energy Company | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | Presented in the following tables are the components of operating revenue: In Millions Three Months Ended March 31, 2022 Electric Utility Gas Utility Enterprises 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,238 $ 1,047 $ — $ 2,285 Other — — 33 33 Revenue recognized from contracts with customers $ 1,238 $ 1,047 $ 33 $ 2,318 Leasing income — — 58 58 Financing income 3 2 — 5 Consumers alternative-revenue programs — (7) — (7) Total operating revenue – CMS Energy $ 1,241 $ 1,042 $ 91 $ 2,374 Consumers Consumers utility revenue Residential $ 591 $ 740 $ 1,331 Commercial 384 221 605 Industrial 168 28 196 Other 95 58 153 Revenue recognized from contracts with customers $ 1,238 $ 1,047 $ 2,285 Financing income 3 2 5 Alternative-revenue programs — (7) (7) Total operating revenue – Consumers $ 1,241 $ 1,042 $ 2,283 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $44 million for the three months ended March 31, 2022. In Millions Three Months Ended March 31, 2021 Electric Utility Gas Utility Enterprises 1 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,131 $ 801 $ — $ 1,932 Other — — 30 30 Revenue recognized from contracts with customers $ 1,131 $ 801 $ 30 $ 1,962 Leasing income — — 46 46 Financing income 3 2 — 5 Total operating revenue – CMS Energy $ 1,134 $ 803 $ 76 $ 2,013 Consumers Consumers utility revenue Residential $ 568 $ 554 $ 1,122 Commercial 345 163 508 Industrial 138 23 161 Other 80 61 141 Revenue recognized from contracts with customers $ 1,131 $ 801 $ 1,932 Financing income 3 2 5 Total operating revenue – Consumers $ 1,134 $ 803 $ 1,937 1 Amounts represent the enterprises segment’s operating revenue from independent power production and its sales of energy commodities. The enterprises segment’s sales of energy commodities are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. The enterprises segment’s leasing income included variable lease payments of $33 million for the three months ended March 31, 2021. |
Cash And Cash Equivalents (Tabl
Cash And Cash Equivalents (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Cash and Cash Equivalents [Line Items] | |
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts | Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets: In Millions March 31, 2022 December 31, 2021 CMS Energy, including Consumers Cash and cash equivalents $ 446 $ 452 Restricted cash and cash equivalents 28 24 Cash and cash equivalents, including restricted amounts – CMS Energy $ 474 $ 476 Consumers Cash and cash equivalents $ 12 $ 22 Restricted cash and cash equivalents 26 22 Cash and cash equivalents, including restricted amounts – Consumers $ 38 $ 44 |
Consumers Energy Company | |
Cash and Cash Equivalents [Line Items] | |
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts | Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets: In Millions March 31, 2022 December 31, 2021 CMS Energy, including Consumers Cash and cash equivalents $ 446 $ 452 Restricted cash and cash equivalents 28 24 Cash and cash equivalents, including restricted amounts – CMS Energy $ 474 $ 476 Consumers Cash and cash equivalents $ 12 $ 22 Restricted cash and cash equivalents 26 22 Cash and cash equivalents, including restricted amounts – Consumers $ 38 $ 44 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | |
Schedule Of Financial Information By Reportable Segments | Presented in the following tables is financial information by segment: In Millions Three Months Ended March 31 2022 2021 CMS Energy, including Consumers Operating revenue Electric utility $ 1,241 $ 1,134 Gas utility 1,042 803 Enterprises 91 76 Total operating revenue – CMS Energy $ 2,374 $ 2,013 Consumers Operating revenue Electric utility $ 1,241 $ 1,134 Gas utility 1,042 803 Total operating revenue – Consumers $ 2,283 $ 1,937 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 167 $ 155 Gas utility 216 181 Enterprises 8 14 Other reconciling items (40) (1) Total net income available to common stockholders – CMS Energy $ 351 $ 349 Consumers Net income available to common stockholder Electric utility $ 167 $ 155 Gas utility 216 181 Total net income available to common stockholder – Consumers $ 383 $ 336 In Millions March 31, 2022 December 31, 2021 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 18,294 $ 18,147 Gas utility 1 10,759 10,601 Enterprises 1,123 1,122 Other reconciling items 23 23 Total plant, property, and equipment, gross – CMS Energy $ 30,199 $ 29,893 Consumers Plant, property, and equipment, gross Electric utility 1 $ 18,294 $ 18,147 Gas utility 1 10,759 10,601 Other reconciling items 23 23 Total plant, property, and equipment, gross – Consumers $ 29,076 $ 28,771 CMS Energy, including Consumers Total assets Electric utility 1 $ 16,650 $ 16,493 Gas utility 1 10,334 10,517 Enterprises 1,312 1,312 Other reconciling items 444 431 Total assets – CMS Energy $ 28,740 $ 28,753 Consumers Total assets Electric utility 1 $ 16,712 $ 16,555 Gas utility 1 10,380 10,564 Other reconciling items 22 21 Total assets – Consumers $ 27,114 $ 27,140 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. |
Consumers Energy Company | |
Segment Reporting Information [Line Items] | |
Schedule Of Financial Information By Reportable Segments | Presented in the following tables is financial information by segment: In Millions Three Months Ended March 31 2022 2021 CMS Energy, including Consumers Operating revenue Electric utility $ 1,241 $ 1,134 Gas utility 1,042 803 Enterprises 91 76 Total operating revenue – CMS Energy $ 2,374 $ 2,013 Consumers Operating revenue Electric utility $ 1,241 $ 1,134 Gas utility 1,042 803 Total operating revenue – Consumers $ 2,283 $ 1,937 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 167 $ 155 Gas utility 216 181 Enterprises 8 14 Other reconciling items (40) (1) Total net income available to common stockholders – CMS Energy $ 351 $ 349 Consumers Net income available to common stockholder Electric utility $ 167 $ 155 Gas utility 216 181 Total net income available to common stockholder – Consumers $ 383 $ 336 In Millions March 31, 2022 December 31, 2021 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 18,294 $ 18,147 Gas utility 1 10,759 10,601 Enterprises 1,123 1,122 Other reconciling items 23 23 Total plant, property, and equipment, gross – CMS Energy $ 30,199 $ 29,893 Consumers Plant, property, and equipment, gross Electric utility 1 $ 18,294 $ 18,147 Gas utility 1 10,759 10,601 Other reconciling items 23 23 Total plant, property, and equipment, gross – Consumers $ 29,076 $ 28,771 CMS Energy, including Consumers Total assets Electric utility 1 $ 16,650 $ 16,493 Gas utility 1 10,334 10,517 Enterprises 1,312 1,312 Other reconciling items 444 431 Total assets – CMS Energy $ 28,740 $ 28,753 Consumers Total assets Electric utility 1 $ 16,712 $ 16,555 Gas utility 1 10,380 10,564 Other reconciling items 22 21 Total assets – Consumers $ 27,114 $ 27,140 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities | Presented in the following table are the carrying values of the VIEs’ assets and liabilities included on CMS Energy’s consolidated balance sheets: In Millions March 31, 2022 December 31, 2021 Current Cash and cash equivalents $ 14 $ 20 Accounts receivable 3 3 Prepayments and other current assets 2 1 Non-current Plant, property, and equipment, net 665 671 Total assets 1 $ 684 $ 695 Current Accounts payable $ 8 $ 15 Non-current Asset retirement obligations 20 20 Total liabilities $ 28 $ 35 1 Assets may be used only to meet VIEs’ obligations and commitments. Presented in the following table is information about these partnerships: Name Nature of the Entity Nature of CMS Energy’s Involvement T.E.S. Filer City Coal-fueled power generator Long-term PPA between partnership and Consumers Employee assignment agreement Grayling Wood waste-fueled power generator Long-term PPA between partnership and Consumers Reduced dispatch agreement with Consumers 1 Operating and management contract Genesee Wood waste-fueled power generator Long-term PPA between partnership and Consumers Reduced dispatch agreement with Consumers 1 Operating and management contract Craven Wood waste-fueled power generator Operating and management contract 1 Reduced dispatch agreements allow the facilities to be dispatched based on the market price of power compared with the cost of production of the plants. This results in fuel cost savings that each partnership shares with Consumers’ customers. |
Exit Activities and Discontin_2
Exit Activities and Discontinued Operations - (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of Retention Benefit Liability Roll Forward | Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets: In Millions Three Months Ended March 31 2022 2021 Retention benefit liability at beginning of period $ 14 $ 11 Costs deferred as a regulatory asset 1 2 Retention benefit liability at the end of the period 1 $ 15 $ 13 1 Includes current portion of other liabilities of $5 million at March 31, 2022 and $4 million at March 31, 2021. |
Schedule of Income, Assets, and Liabilities from Discontinued Operations | The table below presents the financial results of EnerBank included in income from discontinued operations: In Millions Three Months Ended March 31 2022 2021 Operating revenue $ — $ 70 Expenses Operating expenses — 15 Interest expense — 12 Income before income taxes $ — $ 43 Gain on sale 5 — Income from discontinued operations before income taxes $ 5 $ 43 Income tax expense 1 9 Income from discontinued operations, net of tax $ 4 $ 34 |
Consumers Energy Company | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of Retention Benefit Liability Roll Forward | Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets: In Millions Three Months Ended March 31 2022 2021 Retention benefit liability at beginning of period $ 14 $ 11 Costs deferred as a regulatory asset 1 2 Retention benefit liability at the end of the period 1 $ 15 $ 13 1 Includes current portion of other liabilities of $5 million at March 31, 2022 and $4 million at March 31, 2021. |
Regulatory Matters - Quarterly
Regulatory Matters - Quarterly Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Jan. 31, 2022 | |
Public Utilities, General Disclosures [Line Items] | |||||
Operating Revenue | $ 2,374 | $ 2,013 | |||
Consumers Energy Company | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Operating Revenue | 2,283 | $ 1,937 | |||
Consumers Energy Company | Electric Rate Case | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Estimate of disallowed costs | $ 20 | 20 | |||
Recommended disallowed costs | $ 11 | ||||
Additional annual rate increase authorized | 5 | ||||
Consumers Energy Company | Energy Waste Reduction Plan Incentive | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Requested recovery/collection | $ 46 | $ 46 | |||
Operating Revenue | $ 46 |
Contingencies and Commitments_2
Contingencies and Commitments (Contingencies And Commitments) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | 24 Months Ended | |
Sep. 30, 2020USD ($) | Mar. 31, 2022USD ($)site | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Loss Contingencies [Line Items] | |||||
Regulatory assets | $ 2,138 | $ 2,259 | $ 2,259 | ||
Operating Revenue | 2,374 | $ 2,013 | |||
Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Regulatory assets | 2,138 | 2,259 | 2,259 | ||
Cost of gas sold | 465 | 278 | |||
Maintenance and other operating expenses | (313) | (292) | |||
Operating Revenue | 2,283 | $ 1,937 | |||
Consumers Energy Company | Tax And Other Indemnity Obligations | |||||
Loss Contingencies [Line Items] | |||||
Carrying value of indemnity obligations | 1 | ||||
Consumers Energy Company | Manufactured Gas Plant | |||||
Loss Contingencies [Line Items] | |||||
Regulatory assets | 109 | ||||
Bay Harbor | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | $ 45 | ||||
Discounted projected costs rate | 4.34% | ||||
Accrual for environmental loss contingencies, inflation rate | 1.00% | ||||
Remaining undiscounted obligation amount | $ 56 | ||||
CERCLA Liability | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | 3 | ||||
CERCLA Liability | Minimum | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Remediation and other response activity costs | 3 | ||||
CERCLA Liability | Maximum | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Remediation and other response activity costs | 8 | ||||
Manufactured Gas Plant | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | $ 57 | ||||
Discounted projected costs rate | 2.57% | ||||
Accrual for environmental loss contingencies, inflation rate | 2.50% | ||||
Remaining undiscounted obligation amount | $ 61 | ||||
Number of former MGPs | site | 23 | ||||
Regulatory asset collection period | 10 years | ||||
Electric Utility | NREPA | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | $ 2 | ||||
Electric Utility | NREPA | Minimum | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Remediation and other response activity costs | 2 | ||||
Electric Utility | NREPA | Maximum | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Remediation and other response activity costs | 4 | ||||
Gas Utility | NREPA | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | 1 | ||||
Gas Utility | NREPA | Maximum | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | 3 | ||||
Ray Compressor Station | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Plant additions | $ 17 | ||||
Insurance recoveries received | $ 13 | ||||
Ray Compressor Station | Consumers Energy Company | Insurance Recoveries | |||||
Loss Contingencies [Line Items] | |||||
Reduction to plant, property and equipment | 6 | ||||
Maintenance and other operating expenses | 3 | ||||
Operating Revenue | $ 4 | ||||
Ray Compressor Station | Consumers Energy Company | GCR underrecoveries | |||||
Loss Contingencies [Line Items] | |||||
Cost of gas sold | $ 7 |
Contingencies and Commitments_3
Contingencies and Commitments (Expected Remediation Cost By Year) (Details) $ in Millions | Mar. 31, 2022USD ($) |
Bay Harbor | |
Site Contingency [Line Items] | |
2022 | $ 3 |
2023 | 4 |
2024 | 4 |
2025 | 4 |
2026 | 4 |
2027 | 4 |
Manufactured Gas Plant | Consumers Energy Company | |
Site Contingency [Line Items] | |
2022 | 3 |
2023 | 9 |
2024 | 24 |
2025 | 11 |
2026 | 1 |
2027 | $ 1 |
Contingencies and Commitments_4
Contingencies and Commitments (Guarantees) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership | |
Guarantees And Other Contingencies [Line Items] | |
Ownership percentage | 49.00% |
Guarantees | |
Guarantees And Other Contingencies [Line Items] | |
Expiration Date | indefinite |
Maximum Obligation | $ 30 |
Carrying Amount | $ 0 |
Guarantees | Consumers Energy Company | |
Guarantees And Other Contingencies [Line Items] | |
Expiration Date | indefinite |
Maximum Obligation | $ 30 |
Carrying Amount | $ 0 |
Indemnification Agreement From Purchase Of Variable Interest Entity | |
Guarantees And Other Contingencies [Line Items] | |
Expiration Date | indefinite |
Maximum Obligation | $ 305 |
Carrying Amount | $ 0 |
Indemnity Obligations From Stock And Asset Sales Agreements | |
Guarantees And Other Contingencies [Line Items] | |
Expiration Date | indefinite |
Maximum Obligation | $ 225 |
Carrying Amount | $ 4 |
Financings and Capitalization_2
Financings and Capitalization (Schedule of Revolving Credit Facilities) (Details) | Mar. 31, 2022USD ($) |
Consumers Energy Company | Revolving Credit Facilities June 5, 2024 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | $ 850,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 12,000,000 |
Amount Available | 838,000,000 |
Consumers Energy Company | Revolving Credit Facilities November 19, 2023 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 250,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 8,000,000 |
Amount Available | 242,000,000 |
Consumers Energy Company | Revolving Credit Facilities April 18, 2022 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 30,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 30,000,000 |
Amount Available | 0 |
CMS Energy | Revolving Credit Facilities June 5, 2024 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 550,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 24,000,000 |
Amount Available | 526,000,000 |
CMS Energy | Revolving Credit Facilities September 23, 2022 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 42,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 42,000,000 |
Amount Available | 0 |
CMS Energy | Revolving Credit Facilities September 23, 2022 | Letter of Credit | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 50,000,000 |
CMS Enterprises Including Subsidiaries | Revolving Credit Facilities September 25, 2025 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 37,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 37,000,000 |
Amount Available | 0 |
CMS Enterprises Including Subsidiaries | Revolving Credit Facilities September 30, 2025 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 18,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 8,000,000 |
Amount Available | 10,000,000 |
Letter of Credit | CMS Enterprises Including Subsidiaries | Revolving Credit Facilities September 30, 2025 | |
Line of Credit Facility [Line Items] | |
Amount Available | $ 8,000,000 |
Financings and Capitalization_3
Financings and Capitalization (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Financing And Capitalization [Line Items] | ||
Limitation on payment of stock dividends | $ 6,600,000,000 | |
Dividends paid | 275,000,000 | |
Stock offering program maximum value | 500,000,000 | |
Net cash required to settle forward contracts | $ 11,000,000 | |
Number of shares required to settle forward contracts (in shares) | 162,487 | |
Consumers Energy Company | ||
Financing And Capitalization [Line Items] | ||
Notes payable – related parties | $ 0 | $ 392,000,000 |
Unrestricted retained earnings | 1,900,000,000 | |
Consumers Energy Company | Credit Agreement | ||
Financing And Capitalization [Line Items] | ||
Maximum borrowing capacity | 500,000,000 | |
Notes payable – related parties | $ 0 | |
Consumers Energy Company | Credit Agreement | London Interbank Offered Rate (LIBOR) | ||
Financing And Capitalization [Line Items] | ||
Basis spread on variable rate | 0.10% | |
Consumers Energy Company | Commercial Paper | ||
Financing And Capitalization [Line Items] | ||
Short-term debt authorized borrowings | $ 500,000,000 | |
Short-term borrowings outstanding | $ 0 |
Financings and Capitalization_4
Financings and Capitalization (Schedule of Forward Stock Contracts) (Details) - $ / shares | Mar. 31, 2022 | Dec. 22, 2020 | Sep. 15, 2020 |
Forward Contracts Entered Into September 15, 2020 And Maturing June 30, 2022 | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of Shares | 846,759 | ||
Initial forward price (in dollars per share) | $ 57.99 | $ 61.04 | |
Forward Contracts Entered Into December 22, 2020 And Maturing June 22, 2022 | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of Shares | 115,595 | ||
Initial forward price (in dollars per share) | $ 59.17 | $ 61.81 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Restricted cash equivalents | $ 28 | $ 24 |
Derivative instruments | 1 | 2 |
Liabilities | ||
Derivative instruments | 3 | 7 |
Consumers Energy Company | ||
Assets | ||
Restricted cash equivalents | 26 | 22 |
Derivative instruments | 1 | 2 |
Liabilities | ||
Derivative instruments | 0 | 0 |
Fair Value, Inputs, Level 1 | ||
Assets | ||
Cash equivalents | 40 | 0 |
Restricted cash equivalents | 28 | 24 |
Nonqualified deferred compensation plan assets | 26 | 27 |
Liabilities | ||
Nonqualified deferred compensation plan liabilities | 26 | 27 |
Fair Value, Inputs, Level 1 | Consumers Energy Company | ||
Assets | ||
Cash equivalents | 0 | 0 |
Restricted cash equivalents | 26 | 22 |
Nonqualified deferred compensation plan assets | 20 | 21 |
Liabilities | ||
Nonqualified deferred compensation plan liabilities | 20 | 21 |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Assets | ||
Total assets | 95 | 53 |
Liabilities | ||
Total liabilities | 29 | 34 |
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company | ||
Assets | ||
Total assets | 47 | 45 |
Liabilities | ||
Total liabilities | $ 20 | $ 21 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash flow hedge gain (loss) | $ 3 | $ 1 | |
Derivative instruments | 3 | $ 7 | |
Consumers Energy Company | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative instruments | 0 | 0 | |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional amount | 76 | 78 | |
Other Liabilities | Designated as Hedging Instrument | Cash Flow Hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative instruments | $ 1 | $ 4 |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Liabilities | ||
Current accounts receivable | $ 8 | $ 9 |
Current portion of long term debt | 373 | 373 |
Current portion of long-term payables | 1 | 23 |
Carrying Amount | ||
Assets | ||
Long-term receivables | 13 | 14 |
Liabilities | ||
Long-term debt | 12,418 | 12,419 |
Long-term payables | 9 | 31 |
Fair Value | ||
Assets | ||
Long-term receivables | 13 | 14 |
Liabilities | ||
Long-term debt | 12,510 | 13,800 |
Long-term payables | 9 | 32 |
Consumers Energy Company | ||
Liabilities | ||
Current accounts receivable | 8 | 9 |
Current portion of long term debt | 365 | 365 |
DB SERP note receivable – related party | 7 | 7 |
Consumers Energy Company | Carrying Amount | ||
Assets | ||
Long-term receivables | 13 | 14 |
Notes receivable related party | 103 | 104 |
Liabilities | ||
Long-term debt | 8,416 | 8,415 |
Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 13 | 14 |
Notes receivable related party | 103 | 104 |
Liabilities | ||
Long-term debt | 8,444 | 9,410 |
Level 1 | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Liabilities | ||
Long-term debt | 1,140 | 1,189 |
Long-term payables | 0 | 0 |
Level 1 | Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Notes receivable related party | 0 | 0 |
Liabilities | ||
Long-term debt | 0 | 0 |
Level 2 | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Liabilities | ||
Long-term debt | 9,578 | 10,656 |
Long-term payables | 0 | 0 |
Level 2 | Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Notes receivable related party | 0 | 0 |
Liabilities | ||
Long-term debt | 6,652 | 7,455 |
Level 3 | Fair Value | ||
Assets | ||
Long-term receivables | 13 | 14 |
Liabilities | ||
Long-term debt | 1,792 | 1,955 |
Long-term payables | 9 | 32 |
Level 3 | Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 13 | 14 |
Notes receivable related party | 103 | 104 |
Liabilities | ||
Long-term debt | $ 1,792 | $ 1,955 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) | Mar. 31, 2022 |
Consumers Energy Company | CMS Energy Note Payable | |
Financial Instruments [Line Items] | |
Interest rate | 4.10% |
Retirement Benefits (Quarterly
Retirement Benefits (Quarterly Narrative) (Details) - DB Pension Plans - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement loss | $ 4 | |
Increase (decrease) in non-current pension plan assets | $ 91 | |
Loss to AOCI | 2 | |
Consumers Energy Company | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Increase (decrease) in non-current pension plan assets | $ 89 | |
Pension Costs | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement loss | 4 | |
Increase (decrease) in non-current pension plan assets | (89) | |
Pension Costs | DB Pension Plan A Settlement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Regulatory asset collection period | 8 years | |
Pension Costs | Consumers Energy Company | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement loss | 4 | |
Increase (decrease) in non-current pension plan assets | $ (89) |
Retirement Benefits (Schedule O
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
DB Pension Plans | ||
Defined Benefit Plan, Roll Forwards [Abstract] | ||
Service cost | $ 12 | $ 14 |
Interest cost | 18 | 15 |
Expected return on plan assets | (52) | (52) |
Amortization of | ||
Net loss | 17 | 25 |
Prior service cost (credit) | 1 | 1 |
Settlement loss | 2 | 1 |
Net periodic cost (credit) | (2) | 4 |
DB Pension Plans | Consumers Energy Company | ||
Defined Benefit Plan, Roll Forwards [Abstract] | ||
Service cost | 12 | 13 |
Interest cost | 16 | 14 |
Expected return on plan assets | (49) | (49) |
Amortization of | ||
Net loss | 16 | 25 |
Prior service cost (credit) | 1 | 1 |
Settlement loss | 2 | 1 |
Net periodic cost (credit) | (2) | 5 |
OPEB Plan | ||
Defined Benefit Plan, Roll Forwards [Abstract] | ||
Service cost | 4 | 4 |
Interest cost | 7 | 6 |
Expected return on plan assets | (29) | (27) |
Amortization of | ||
Net loss | 0 | 2 |
Prior service cost (credit) | (12) | (13) |
Settlement loss | 0 | 0 |
Net periodic cost (credit) | (30) | (28) |
OPEB Plan | Consumers Energy Company | ||
Defined Benefit Plan, Roll Forwards [Abstract] | ||
Service cost | 4 | 4 |
Interest cost | 7 | 6 |
Expected return on plan assets | (27) | (25) |
Amortization of | ||
Net loss | 0 | 2 |
Prior service cost (credit) | (12) | (13) |
Settlement loss | 0 | 0 |
Net periodic cost (credit) | $ (28) | $ (26) |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Rate Reconciliation) (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Taxes [Line Items] | ||
U.S. federal income tax rate | 21.00% | 21.00% |
Increase (decrease) in income taxes from: | ||
State and local income taxes, net of federal effect | 5.50% | 5.40% |
TCJA excess deferred taxes | (7.20%) | (5.80%) |
Production tax credits | (4.70%) | (5.10%) |
Accelerated flow-through of regulatory tax benefits | (4.30%) | (3.20%) |
Other, net | 0.00% | (0.30%) |
Effective tax rate | 10.30% | 12.00% |
Consumers Energy Company | ||
Income Taxes [Line Items] | ||
U.S. federal income tax rate | 21.00% | 21.00% |
Increase (decrease) in income taxes from: | ||
State and local income taxes, net of federal effect | 5.00% | 5.10% |
TCJA excess deferred taxes | (6.70%) | (5.10%) |
Production tax credits | (2.70%) | (2.60%) |
Accelerated flow-through of regulatory tax benefits | (5.10%) | (3.70%) |
Other, net | (0.60%) | (0.40%) |
Effective tax rate | 10.90% | 14.30% |
Earnings Per Share - CMS Ener_3
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income available to common stockholders | ||
Income from continuing operations | $ 341 | $ 308 |
Loss attributable to noncontrolling interests | (8) | (7) |
Preferred stock dividends | 2 | 0 |
Income from continuing operations available to common stockholders – basic and diluted | $ 347 | $ 315 |
Average common shares outstanding | ||
Weighted average shares - basic (in shares) | 289.3 | 288.6 |
Dilutive nonvested stock awards (in shares) | 0.5 | 0.5 |
Dilutive forward equity sale contracts (in shares) | 0.1 | 0 |
Weighted average shares - diluted (in shares) | 289.9 | 289.1 |
Income from continuing operations per average common share available to common stockholders | ||
Basic (in dollars per share) | $ 1.20 | $ 1.09 |
Diluted (in dollars per share) | $ 1.20 | $ 1.09 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | $ 2,318 | $ 1,962 |
Leasing income | 58 | 46 |
Financing income | 5 | 5 |
Consumers alternative-revenue programs | (7) | |
Total operating revenue | 2,374 | 2,013 |
Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 1,238 | 1,131 |
Financing income | 3 | 3 |
Consumers alternative-revenue programs | 0 | |
Total operating revenue | 1,241 | 1,134 |
Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 1,047 | 801 |
Financing income | 2 | 2 |
Consumers alternative-revenue programs | (7) | |
Total operating revenue | 1,042 | 803 |
Enterprises | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 33 | 30 |
Leasing income | 58 | 46 |
Total operating revenue | 91 | 76 |
Variable lease income | 44 | 33 |
Consumers Energy Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 2,285 | 1,932 |
Financing income | 5 | 5 |
Consumers alternative-revenue programs | (7) | |
Total operating revenue | 2,283 | 1,937 |
Consumers Energy Company | Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 1,238 | 1,131 |
Financing income | 3 | 3 |
Consumers alternative-revenue programs | 0 | |
Total operating revenue | 1,241 | 1,134 |
Consumers Energy Company | Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 1,047 | 801 |
Financing income | 2 | 2 |
Consumers alternative-revenue programs | (7) | |
Total operating revenue | 1,042 | 803 |
Residential | Consumers Energy Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 1,331 | 1,122 |
Residential | Consumers Energy Company | Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 591 | 568 |
Residential | Consumers Energy Company | Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 740 | 554 |
Commercial | Consumers Energy Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 605 | 508 |
Commercial | Consumers Energy Company | Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 384 | 345 |
Commercial | Consumers Energy Company | Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 221 | 163 |
Industrial | Consumers Energy Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 196 | 161 |
Industrial | Consumers Energy Company | Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 168 | 138 |
Industrial | Consumers Energy Company | Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 28 | 23 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 33 | 30 |
Other | Enterprises | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 33 | 30 |
Other | Consumers Energy Company | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 153 | 141 |
Other | Consumers Energy Company | Electric Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | 95 | 80 |
Other | Consumers Energy Company | Gas Utility | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized from contracts with customers | $ 58 | $ 61 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Unbilled receivables | $ 491 | $ 486 | |
Consumers Energy Company | |||
Disaggregation of Revenue [Line Items] | |||
Unbilled receivables | 491 | $ 486 | |
Accounts Receivable | |||
Disaggregation of Revenue [Line Items] | |||
Bad debt expense | 4 | $ 6 | |
Accounts Receivable | Consumers Energy Company | |||
Disaggregation of Revenue [Line Items] | |||
Bad debt expense | $ 4 | $ 6 |
Cash And Cash Equivalents (Sche
Cash And Cash Equivalents (Schedule Of Cash And Cash Equivalents, Including Restricted Amounts) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 446 | $ 452 | ||
Restricted cash and cash equivalents | 28 | 24 | ||
Cash and cash equivalents, including restricted amounts | 474 | 476 | $ 524 | $ 185 |
Consumers Energy Company | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 12 | 22 | ||
Restricted cash and cash equivalents | 26 | 22 | ||
Cash and cash equivalents, including restricted amounts | $ 38 | $ 44 | $ 34 | $ 35 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Operating Revenue | $ 2,374 | $ 2,013 | |
Net income (loss) available to common stockholders | 351 | 349 | |
Plant, property, and equipment, gross | 30,199 | $ 29,893 | |
Total assets | 28,740 | 28,753 | |
Consumers Energy Company | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 2,283 | 1,937 | |
Net income (loss) available to common stockholders | 383 | 336 | |
Plant, property, and equipment, gross | 29,076 | 28,771 | |
Total assets | 27,114 | 27,140 | |
Other reconciling items | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) available to common stockholders | (40) | (1) | |
Plant, property, and equipment, gross | 23 | 23 | |
Total assets | 444 | 431 | |
Other reconciling items | Consumers Energy Company | |||
Segment Reporting Information [Line Items] | |||
Plant, property, and equipment, gross | 23 | 23 | |
Total assets | 22 | 21 | |
Electric Utility | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 1,241 | 1,134 | |
Net income (loss) available to common stockholders | 167 | 155 | |
Plant, property, and equipment, gross | 18,294 | 18,147 | |
Total assets | 16,650 | 16,493 | |
Electric Utility | Operating Segments | Consumers Energy Company | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 1,241 | 1,134 | |
Net income (loss) available to common stockholders | 167 | 155 | |
Plant, property, and equipment, gross | 18,294 | 18,147 | |
Total assets | 16,712 | 16,555 | |
Gas Utility | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 1,042 | 803 | |
Net income (loss) available to common stockholders | 216 | 181 | |
Plant, property, and equipment, gross | 10,759 | 10,601 | |
Total assets | 10,334 | 10,517 | |
Gas Utility | Operating Segments | Consumers Energy Company | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 1,042 | 803 | |
Net income (loss) available to common stockholders | 216 | 181 | |
Plant, property, and equipment, gross | 10,759 | 10,601 | |
Total assets | 10,380 | 10,564 | |
Enterprises | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 91 | 76 | |
Net income (loss) available to common stockholders | 8 | $ 14 | |
Plant, property, and equipment, gross | 1,123 | 1,122 | |
Total assets | $ 1,312 | $ 1,312 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)MW | Dec. 31, 2021USD ($) | |
Variable Interest Entity [Line Items] | ||
Investments | $ 71 | $ 71 |
Variable Interest Entity, Primary Beneficiary | Aviator Wind | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 51.00% | |
Nameplate capacity (in MW) | MW | 525 | |
Variable Interest Entity, Primary Beneficiary | Aviator Wind Class B Membership | ||
Variable Interest Entity [Line Items] | ||
Noncontrolling ownership interest | 49.00% | |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments | $ 71 | $ 71 |
Variable Interest Entity, Not Primary Beneficiary | T.E.S. Filer City | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50.00% | |
Variable Interest Entity, Not Primary Beneficiary | Grayling | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50.00% | |
Variable Interest Entity, Not Primary Beneficiary | Genesee | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50.00% | |
Variable Interest Entity, Not Primary Beneficiary | Craven | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50.00% |
Variable Interest Entities (Con
Variable Interest Entities (Consolidated Information of Variable Interest Entity) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 446 | $ 452 |
Accounts receivable | 1,042 | 931 |
Prepayments and other current assets | 158 | 139 |
Plant, property, and equipment, net | 22,540 | 22,352 |
Total Assets | 28,740 | 28,753 |
Accounts payable | 687 | 875 |
Asset retirement obligations | 619 | 628 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | 14 | 20 |
Accounts receivable | 3 | 3 |
Prepayments and other current assets | 2 | 1 |
Plant, property, and equipment, net | 665 | 671 |
Total Assets | 684 | 695 |
Accounts payable | 8 | 15 |
Asset retirement obligations | 20 | 20 |
Total liabilities | $ 28 | $ 35 |
Exit Activities and Discontin_3
Exit Activities and Discontinued Operations - Narrative (Details) - USD ($) $ in Millions | Oct. 01, 2021 | Oct. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain from divestiture of business | $ 5 | $ 0 | ||||
Discontinued Operations, Held-for-sale | EnerBank | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestiture of businesses | $ 1,000 | |||||
Gain from divestiture of business | $ 657 | 5 | 0 | |||
Gain from divestiture of business related to post-closing adjustment | 6 | |||||
Post-closing purchase price adjustment | $ 36 | |||||
Retention Benefits | D.E. Karn Generating Complex | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Expected cost | 35 | $ 35 | ||||
Retention and severance costs | 16 | |||||
Cost deferred | $ 1 | $ 2 | ||||
Retention Benefits | D.E. Karn Generating Complex | Retention Incentive Program | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cost deferred | 8 | |||||
Retention Benefits | D.E. Karn Generating Complex | Property, Plant and Equipment | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Costs incurred and capitalized | $ 4 |
Exit Activities and Discontin_4
Exit Activities and Discontinued Operations - Schedule of Retention Benefit Liability Roll Forward (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Restructuring Reserve [Roll Forward] | |||
Other current liabilities | $ 144 | $ 156 | |
Retention Benefits | D.E. Karn Generating Complex | |||
Restructuring Reserve [Roll Forward] | |||
Retention benefit liability at beginning of period | 14 | $ 11 | |
Costs deferred as a regulatory asset | 1 | 2 | |
Retention benefit liability at the end of the period | 15 | 13 | |
Other current liabilities | $ 5 | $ 4 |
Exit Activities and Discontin_5
Exit Activities and Discontinued Operations - Income from Discontinued Operations (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Oct. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale | $ 5 | $ 0 | |
Income tax expense | 1 | 9 | |
Income from discontinued operations, net of tax | 4 | 34 | |
Discontinued Operations, Held-for-sale | EnerBank | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating revenue | 0 | 70 | |
Operating expenses | 0 | 15 | |
Interest expense | 0 | 12 | |
Income before income taxes | 0 | 43 | |
Gain on sale | $ 657 | 5 | 0 |
Income from discontinued operations before income taxes | 5 | 43 | |
Income tax expense | 1 | 9 | |
Income from discontinued operations, net of tax | $ 4 | $ 34 |